Important Notes, Table of Contents, and Definitions [Important Notes](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) This section includes guarantees from the board, supervisors, and senior management regarding report accuracy, along with statements on financial reports and risk warnings for future plans - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming individual and joint legal responsibility for any false statements, misleading representations, or major omissions[3](index=3&type=chunk) - Company head Zhang Hongliang, chief accountant Shang Ye, and head of accounting department Chen Daping declare that the financial report in this semi-annual report is true, accurate, and complete[3](index=3&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) This section outlines the report's structure, covering company profile, financial indicators, management discussion, governance, and financial statements - The report's table of contents includes Section II Company Profile and Key Financial Indicators, Section III Management Discussion and Analysis, Section IV Corporate Governance, Environment and Society, Section V Significant Matters, Section VI Share Changes and Shareholder Information, Section VII Bond Related Matters, and Section VIII Financial Report[6](index=6&type=chunk) [List of Reference Documents](index=4&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) This section lists documents available for investor review, including the signed report, financial statements, and public announcements, located at the company's securities affairs department - Reference documents include the original text of the 2025 semi-annual report signed by the legal representative, financial statements with seals and company chop, and originals of all announcements publicly disclosed on the CSRC-designated website during the reporting period[8](index=8&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) - The aforementioned reference documents are available at the company's Securities Affairs Department[12](index=12&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines common terms used in the report, such as company names, subsidiaries, industry-specific terms, and regulatory abbreviations, for clear understanding - Zhongchuang Environmental Protection, the Company, or This Company refers to Xiamen Zhongchuang Environmental Protection Technology Co., Ltd[13](index=13&type=chunk) - Definitions cover the names of major subsidiaries, such as Shanghai Zhongchuang, Zhoukou Chengtou, and Xiamen Kunna[13](index=13&type=chunk) - Industry terms like filter materials, high-temperature filter materials, high-performance high-temperature filter materials, as well as "Company Law," "Securities Law," and "CSRC" are clearly defined[14](index=14&type=chunk) Company Profile and Key Financial Indicators [Company Profile](index=7&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) This section provides basic information about Xiamen Zhongchuang Environmental Protection Technology Co., Ltd., including its stock ticker, code, listing exchange, and legal representative - Stock Abbreviation: Zhongchuang Environmental Protection, Stock Code: **300056**, Stock Exchange: Shenzhen Stock Exchange[16](index=16&type=chunk) - The company's Chinese name is Xiamen Zhongchuang Environmental Protection Technology Co., Ltd., and its legal representative is Zhang Hongliang[16](index=16&type=chunk) [Contact Persons and Information](index=7&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section discloses contact details for the company's board secretary and securities affairs representative, facilitating investor communication - Both the Board Secretary and Securities Affairs Representative are Sun Chengyu, with the contact address at No 1178-1188 Chunguang Road, Torch High-tech Zone (Xiang'an) Industrial Park, Xiamen[17](index=17&type=chunk) - The contact phone number is **0592-7769767**, fax is **0592-7769502**, and email is sunchengyu@savings.com.cn[17](index=17&type=chunk) [Other Information](index=7&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) This section confirms that the company's contact information, disclosure channels, and registration details remained unchanged during the reporting period - The company's registered address, office address and postal code, website, and email address remained unchanged during the reporting period[18](index=18&type=chunk) - Information disclosure and document placement locations remained unchanged during the reporting period[19](index=19&type=chunk) - The company's registration status remained unchanged during the reporting period[20](index=20&type=chunk) [Key Accounting Data and Financial Indicators](index=8&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section presents a comparative analysis of the company's key accounting data and financial indicators for the current and prior reporting periods Key Accounting Data and Financial Indicators Comparison | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 157,275,444.24 | 186,022,425.24 | -15.45% | | Net Profit Attributable to Shareholders of Listed Company | -29,413,039.51 | 3,029,257.75 | -1,070.97% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | -31,822,079.40 | -26,918,479.07 | -18.22% | | Net Cash Flow from Operating Activities | -44,381,569.29 | -106,851,841.81 | 58.46% | | Basic Earnings Per Share (RMB/share) | -0.0763 | 0.0079 | -1,065.82% | | Diluted Earnings Per Share (RMB/share) | -0.0763 | 0.0079 | -1,065.82% | | Weighted Average Return on Net Assets | -16.46% | 1.05% | -17.51% | | **End of Current Reporting Period** | **End of Prior Year** | **Change from Prior Year-End** | | Total Assets (RMB) | 773,150,468.32 | 792,423,333.68 | -2.43% | | Net Assets Attributable to Shareholders of Listed Company (RMB) | 164,864,445.27 | 192,603,992.87 | -14.40% | [Differences in Accounting Data under Domestic and International Accounting Standards](index=8&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) This section states that there are no differences in net profit and net assets between financial reports prepared under Chinese and international accounting standards - The company's financial reports for the reporting period show no differences in net profit and net assets between those prepared under International Accounting Standards and Chinese Accounting Standards[22](index=22&type=chunk) - The company's financial reports for the reporting period show no differences in net profit and net assets between those prepared under overseas accounting standards and Chinese Accounting Standards[23](index=23&type=chunk) [Non-Recurring Gains and Losses and Their Amounts](index=8&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) This section details the company's non-recurring gains and losses for the reporting period, including government subsidies and asset disposal gains/losses Non-Recurring Gains and Losses and Their Amounts | Item | Amount (RMB) | Explanation | | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets (including the write-off portion of asset impairment provisions) | -8,143.39 | | | Government grants recognized in current profit or loss (excluding government grants closely related to the company's normal business operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on the company's profit or loss) | 2,197,297.82 | Government grants | | Gains or losses from changes in fair value of financial assets and liabilities, and gains or losses from disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations of non-financial enterprises | -968.96 | | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 209,757.44 | | | Other non-operating income and expenses apart from the above | -12,780.08 | | | Other profit and loss items that meet the definition of non-recurring gains and losses | 510,440.62 | | | Less: Income tax impact | 17,799.55 | | | Impact on minority interests (after tax) | 468,764.01 | | | Total | 2,409,039.89 | | - The company has no other specific situations where profit and loss items meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring gains and losses[26](index=26&type=chunk) Management Discussion and Analysis [Principal Businesses Engaged by the Company During the Reporting Period](index=10&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company primarily operates in non-ferrous metal materials, filtration materials, and environmental governance, all benefiting from national environmental policies and industrial upgrades [Industry Overview During the Reporting Period](index=10&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%A4%84%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) The company's industries, including filtration materials, non-ferrous metals, and environmental governance, are driven by strong national policy support and increasing environmental awareness - The filtration materials industry is driven by policies such as the "14th Five-Year Plan for Circular Economy Development," leading to increased demand for high-performance filtration materials, which the company prioritizes as a strategic focus[28](index=28&type=chunk) - The non-ferrous metal industry (hazardous and solid waste resource products) benefits from increased applications in emerging fields like new energy and electric vehicles, as well as policies such as the "14th Five-Year Plan for Industrial Green Development" and the "Solid Waste Pollution Prevention and Control Law" promoting resource recycling[29](index=29&type=chunk) - The environmental governance industry, specifically flue gas treatment, is driven by the "Environmental Protection Law of the People's Republic of China" and "dual carbon" goals, promoting upgrades in flue gas treatment facilities for high-energy-consuming industries[30](index=30&type=chunk) - Integrated urban and rural sanitation services are driven by policies such as the "14th Five-Year Plan for Promoting Agricultural and Rural Modernization," aiming to improve rural living environments and continuously increase service demand[31](index=31&type=chunk) - The company adheres to its strategic plan, relying on independent core technologies, and has successfully established three major business segments: non-ferrous metal materials (hazardous and solid waste resource products), filtration materials, and environmental governance (flue gas treatment engineering, integrated urban and rural sanitation)[32](index=32&type=chunk) - The non-ferrous metal materials business vigorously develops comprehensive recycling and utilization of hazardous waste and non-ferrous metal reproduction industries, with subsidiaries Jiangxi Naihua and Suzhou Detongyuan holding hazardous waste operating licenses[32](index=32&type=chunk) - The filtration materials segment, as a core product of the company, continuously accelerates industrial and technological upgrades, expands product application scope, and enhances core competitiveness[33](index=33&type=chunk) - Environmental governance business includes flue gas treatment engineering (providing system integration and EPC services) and integrated urban and rural sanitation services (focusing on Ningxia, Shaanxi, Hebei, etc., renewing the Zhongwei project, and winning the Xunyang waste classification project)[33](index=33&type=chunk)[34](index=34&type=chunk) - Performance drivers primarily include the continuous expansion of filtration material product application scope (e.g., breakthroughs in the steel and cement industries) and vigorous development of environmental governance services (enhancing core competitiveness in flue gas treatment engineering and expanding integrated urban and rural sanitation services)[35](index=35&type=chunk) [Analysis of Core Competencies](index=12&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core strengths include robust R&D, an experienced management team, high entry barriers in hazardous waste treatment, and integrated environmental governance capabilities - The company's technology center was recognized as a 2021 (28th batch) National Enterprise Technology Center, possessing one postdoctoral workstation, one provincial enterprise technology center, and has established industry-university-research cooperation with multiple universities and research institutes[36](index=36&type=chunk) - As of June 30, 2025, the company cumulatively holds **232 valid patents**, **8 software copyrights**, and **65 registered trademarks**, laying a technological foundation for market competitiveness[36](index=36&type=chunk) - The company's core management personnel, core technical personnel, and core business backbone all possess rich industry experience, demonstrating strong stability and cohesion, enabling accurate grasp of strategic direction[37](index=37&type=chunk) - Comprehensive utilization of hazardous waste resources requires special operating licenses issued by relevant departments, and the company's subsidiaries possess hazardous waste treatment qualifications, creating a first-mover competitive advantage due to high entry barriers[38](index=38&type=chunk) - The company's business covers filtration material production and sales, flue gas treatment engineering, integrated urban and rural sanitation, and hazardous waste disposal, forming a comprehensive environmental governance model that helps improve bidding capabilities, overall profitability, and risk resistance[39](index=39&type=chunk) [Analysis of Principal Business](index=13&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) This section analyzes the financial performance of the company's principal businesses, highlighting revenue and cost changes, and segment-specific performance Key Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 157,275,444.24 | 186,022,425.24 | -15.45% | | | Operating Cost | 139,265,072.93 | 157,330,738.36 | -11.48% | | | Selling Expenses | 12,585,098.32 | 10,609,687.00 | 18.62% | | | Administrative Expenses | 28,618,455.60 | 36,796,618.36 | -22.23% | Primarily due to the divestiture of Zhongchuang Huifeng last year and cost control in the current period | | Financial Expenses | 10,147,398.61 | 6,995,627.13 | 45.05% | Primarily due to increased interest in the current period compared to the prior year | | Net Cash Flow from Operating Activities | -44,381,569.29 | -106,851,841.81 | -58.46% | Primarily due to a significant reduction in intercompany payments in the current period | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Filtration Materials | 77,713,951.08 | 59,194,355.31 | 23.83% | -33.51% | -33.60% | 0.10% | | Environmental Engineering | 21,270,177.09 | 17,099,745.06 | 19.61% | 31.72% | 29.31% | 1.50% | | Non-ferrous Metal Materials (Hazardous and Solid Waste Resource Products) | 29,443,165.80 | 40,496,560.11 | -37.54% | 94.17% | 68.12% | 21.31% | | Sanitation Services | 26,970,387.56 | 21,866,900.97 | 18.92% | -17.69% | -17.57% | -0.12% | - The company's profit composition or sources of profit did not undergo significant changes during the reporting period[41](index=41&type=chunk) [Analysis of Non-Principal Business](index=14&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) This section examines the company's non-principal business gains and losses, which are generally small in amount and not sustainable Non-Principal Business Gains and Losses | Item | Amount (RMB) | Percentage of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Gains or losses from changes in fair value | -968.96 | 0.00% | Primarily due to changes in fair value of other non-current financial assets held | No | | Non-operating income | 185,466.24 | -0.45% | Primarily due to disposal of scrap and other items | No | | Non-operating expenses | 221,840.79 | -0.54% | Primarily due to litigation compensation and other items | No | [Analysis of Assets and Liabilities](index=14&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%A2%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) This section analyzes the company's asset and liability structure at the end of the reporting period, noting significant changes and fair value measurements Significant Changes in Asset Composition | Item | End of Current Reporting Period (RMB) | Percentage of Total Assets | End of Prior Year (RMB) | Percentage of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 20,603,406.71 | 2.66% | 44,178,512.13 | 5.58% | -2.92% | | Accounts Receivable | 211,311,075.75 | 27.33% | 231,059,421.40 | 29.16% | -1.83% | | Inventories | 112,329,755.36 | 14.53% | 69,789,648.46 | 8.81% | 5.72% | | Short-term Borrowings | 228,400,755.60 | 29.54% | 207,974,684.94 | 26.25% | 3.29% | | Long-term Borrowings | 9,990,000.00 | 1.29% | 0.00 | 0.00% | 1.29% | - The company had no major overseas assets during the reporting period[49](index=49&type=chunk) Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (RMB) | Fair Value Change in Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | | Other equity instrument investments | 4,620,984.39 | 1,117.63 | 4,622,102.02 | | Other non-current financial assets | 17,389.55 | -968.96 | 16,420.59 | | Subtotal of financial assets | 4,638,373.94 | | 4,638,522.61 | - As of the end of the reporting period, details of restricted asset rights are provided in Note VII (31) of the Financial Report[50](index=50&type=chunk) [Analysis of Investment Status](index=15&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) This section summarizes the company's investment activities during the reporting period, noting no significant equity or non-equity investments, or use of raised funds - The company had no use of raised funds during the reporting period[52](index=52&type=chunk) - The company had no entrusted wealth management, derivative investments, or entrusted loans during the reporting period[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) [Significant Asset and Equity Sales](index=16&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) This section confirms that the company did not undertake any significant asset or equity sales during the reporting period - The company did not sell significant assets during the reporting period[56](index=56&type=chunk) - The company did not sell significant equity during the reporting period[57](index=57&type=chunk) [Analysis of Major Holding and Participating Companies](index=16&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This section analyzes the financial performance of the company's major subsidiaries, noting net losses for key entities and the impact of subsidiary deregistrations Major Subsidiaries and Associates with Over 10% Impact on Company Net Profit | Company Name | Company Type | Principal Business | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xiamen Baifu Environmental Protection Technology Co., Ltd. | Subsidiary | Flue gas treatment engineering and supporting equipment such as filtration materials | 249,330,686.19 | 54,239,000.38 | 36,324,852.35 | -5,570,815.65 | -5,422,216.64 | | Suzhou Detongyuan Environmental Protection Technology Co., Ltd. | Subsidiary | Sorting, processing, and disposal of renewable non-ferrous metals | 164,776,539.91 | 118,107,470.41 | 9,937,925.89 | -14,438,743.82 | -14,242,650.54 | | Jiangxi Naihua Environmental Protection Technology Co., Ltd. | Subsidiary | Production, processing, and sales of precious metal products | 75,186,100.40 | -13,664,218.02 | 19,839,660.68 | -5,571,490.09 | -5,574,109.12 | - During the reporting period, Shanghai Zhongchuang Jisu Technology Co., Ltd., Beijing Zhongchuang Zhisu Technology Co., Ltd., and Zhongchuang (Beijing) New Energy Co., Ltd. were deregistered, which had no significant impact on the company's overall production, operations, and performance[59](index=59&type=chunk) [Information on Structured Entities Controlled by the Company](index=17&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) This section states that 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[59](index=59&type=chunk) [Risks Faced by the Company and Countermeasures](index=17&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces risks from rapid growth, subsidiary integration, talent loss, and raw material price volatility, addressed by internal management, integration strategies, and supply chain optimization - The company's rapid development brings management risks, with countermeasures including improving and optimizing internal organizational structure, management framework, and institutional process systems, as well as strengthening internal control and risk management[60](index=60&type=chunk) - Operational risks after subsidiary integration are addressed by adhering to the guiding principle of "complementary advantages and industrial upgrading," achieving comprehensive integration through "front-end openness, unified back-end," and "technical cooperation, channel sharing" strategies[61](index=61&type=chunk) - Risks of core technical personnel and core technology loss are mitigated by establishing strict technical management systems, signing "Confidentiality Agreements" and "Non-Compete Agreements," and implementing incentive measures to ensure the stability of the R&D team[62](index=62&type=chunk) - Raw material supply and price fluctuation risks are managed by establishing long-term cooperative relationships with major suppliers, continuously optimizing the supply chain, closely monitoring market price trends, and scientifically and reasonably arranging production, supply, and sales cycles[62](index=62&type=chunk) [Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period](index=17&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E7%99%BB%E8%AE%B0%E8%A1%A8) This section records the company's investor relations activities, including on-site research and online communication regarding operational performance and annual report explanations - On **April 22, 2025**, the company hosted institutions for on-site research at its headquarters' Huaiyuan Hall to discuss the company's operations and future plans[64](index=64&type=chunk) - On **May 15, 2025**, the company conducted online communication on a network platform to explain its annual report performance to investors[64](index=64&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=18&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) This section states that the company has not formulated a market value management system or disclosed a valuation enhancement plan - The company has not formulated a market value management system[65](index=65&type=chunk) - The company has not disclosed a valuation enhancement plan[65](index=65&type=chunk) [Implementation of "Quality and Return Dual Improvement" Action Plan](index=18&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%22%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%22%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) This section states that the company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan - The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan[65](index=65&type=chunk) Corporate Governance, Environment, and Society [Changes in Directors, Supervisors, and Senior Management](index=18&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) This section reports changes in the company's board, supervisory board, and senior management, including resignations and new appointments - Xu Xiuli resigned as director on **May 13, 2025**, due to personal reasons[66](index=66&type=chunk) - Sun Chengyu was elected as director, vice president, and board secretary on **May 13, 2025**, due to work reassignment[66](index=66&type=chunk) [Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period](index=18&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) This section states that the company plans no cash dividends, bonus shares, or capital reserve conversions for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[67](index=67&type=chunk) [Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=18&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) This section confirms that the company did not implement any equity incentive plans, employee stock ownership plans, or other employee incentive measures 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[68](index=68&type=chunk) [Environmental Information Disclosure](index=19&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) This section states that 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[69](index=69&type=chunk) [Social Responsibility](index=19&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company actively fulfills its social responsibilities by upholding modern corporate governance, protecting stakeholder rights, ensuring transparency, and safeguarding employee welfare - The company adheres to excellent corporate culture traditions, aiming to "establish a modern enterprise system and build a public, transparent, and standardized listed company," actively exploring and continuously improving corporate governance[69](index=69&type=chunk) - The company safeguards the legitimate rights and interests of shareholders and creditors, improves its governance structure, and operates strictly in accordance with laws, regulations, and its articles of association, ensuring shareholders fully enjoy their legitimate rights and interests[69](index=69&type=chunk) - The company focuses on protecting the legitimate rights and interests of investors, especially small and medium-sized investors, maintaining effective communication through its website, phone, email, and the Interactive Easy platform[69](index=69&type=chunk) - The company strictly complies with labor laws and regulations, legally protects the legitimate rights and interests of employees, provides welfare benefits, and pays social insurance and housing provident funds[70](index=70&type=chunk) - The company regards honesty and trustworthiness as the foundation of its development, establishing symbiotic and win-win strategic partnerships with suppliers and customers, fully respecting and protecting their legitimate rights and interests[70](index=70&type=chunk) Significant Matters [Commitments](index=20&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) This section details commitments from the actual controller, shareholders, and related parties, including those fulfilled and overdue, covering non-competition, related transactions, and asset restructuring - Shanghai Zhongchuang and Zhoukou Chengtou both committed to avoiding horizontal competition, regulating related party transactions, not occupying listed company funds, and ensuring the independence of the listed company, with these commitments currently being fulfilled normally[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) - Multiple shareholders made commitments during major asset restructuring, including the truthfulness of provided material information, avoidance of insider trading, and share reduction plans, most of which have been fulfilled or are being fulfilled normally[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) - Chen Rong, Zhang Bingguo, and Liao Yuhua's performance compensation commitment for XiangSheng Environmental Protection was not fulfilled normally, and the listed company has repeatedly urged payment and plans to take measures including, but not limited to, litigation to recover the compensation[72](index=72&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) - Chen Rong, Wu Xiuling, Yongfeng Zhili, Kunna Shangmao, and Shangyue Consulting's share lock-up commitments were not fulfilled normally due to the judicial auction of Kunna and Shangyue shares[72](index=72&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) [Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties](index=36&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) This section states that there was no non-operating occupation of listed company funds by controlling shareholders or other related parties during the reporting period - The company had no non-operating occupation of funds by controlling shareholders or other related parties during the reporting period[104](index=104&type=chunk) [Illegal External Guarantees](index=36&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) This section states that the company had no illegal external guarantees during the reporting period - The company had no illegal external guarantees during the reporting period[105](index=105&type=chunk) [Appointment and Dismissal of Accounting Firms](index=37&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) This section states that the company's semi-annual financial report was not audited - The company's semi-annual report was not audited[106](index=106&type=chunk) [Explanation by the Board of Directors, Supervisory Board, and Audit Committee on the Accounting Firm's "Non-Standard Audit Report" for the Current Period](index=37&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E3%80%81%E5%AE%A1%E8%AE%A1%E5%A7%94%E5%91%98%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9A%84%E8%AF%B4%E6%98%8E) This section states that there is no explanation from the board, supervisory board, or audit committee regarding a "non-standard audit report" for the current period - The company had no explanation from the board of directors, supervisory board, or audit committee regarding the accounting firm's "non-standard audit report" for the current reporting period[107](index=107&type=chunk) [Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year](index=37&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) This section states that there is no explanation from the board regarding the "non-standard audit report" for the previous year - The company had no explanation from the board of directors regarding the "non-standard audit report" for the previous year during the reporting period[107](index=107&type=chunk) [Bankruptcy Reorganization Related Matters](index=37&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) This section states that the company did not have any bankruptcy reorganization related matters during the reporting period - The company had no bankruptcy reorganization related matters during the reporting period[107](index=107&type=chunk) [Litigation Matters](index=37&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) This section discloses the company's significant litigation and arbitration matters, including cases where it is a plaintiff or defendant, with some resolved and others ongoing Summary of Significant Litigation and Arbitration Matters | Basic Information of Litigation (Arbitration) | Amount Involved (RMB 10,000) | Provision for Liabilities Formed | Progress of Litigation (Arbitration) | Outcome and Impact of Litigation (Arbitration) | Enforcement Status of Litigation (Arbitration) Judgment | | :--- | :--- | :--- | :--- | :--- | :--- | | Summary of non-significant litigation matters (as plaintiff) | 470.79 | No | Some lawsuits are in the filing stage, some are in the trial stage, and some were concluded within the reporting period | This summary of litigation matters has no significant impact on the company | Some concluded, some concluded matters are in the enforcement stage | | Summary of non-significant litigation matters (as defendant or third party) | 2,269.81 | No | Some lawsuits are in the trial stage, and some were concluded within the reporting period | Some cases have been judged, some are still in trial, and this summary of litigation matters has a controllable impact on the company | Some have been enforced, some appeals are not yet enforced | [Penalties and Rectification](index=37&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) This section states that the company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[109](index=109&type=chunk) [Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers](index=38&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) This section states that the company, its controlling shareholders, and actual controllers had no integrity issues during the reporting period - The company, its controlling shareholders, and actual controllers had no integrity issues during the reporting period[110](index=110&type=chunk) [Significant Related Party Transactions](index=38&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) This section discloses significant related party transactions, including a 5 million RMB interest-free loan from a shareholder to support liquidity - The company had no related party transactions related to daily operations, asset or equity acquisitions/disposals, or joint external investments during the reporting period[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - The company had no related party creditor-debtor relationships during the reporting period[113](index=113&type=chunk) - Xingtai Huifeng Zhifeng Enterprise Management Consulting Co., Ltd provided the company and its subsidiaries with an interest-free cash financial assistance loan of **RMB 5 million (￥5,000,000.00)** for a term of one year[116](index=116&type=chunk) - This related party transaction was announced on Juchao Information Network on **May 19, 2025**[118](index=118&type=chunk) [Significant Contracts and Their Performance](index=39&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) This section details the performance of significant contracts, noting no托管,承包,租赁 matters, but significant external guarantees for subsidiaries, exceeding 100% of net assets - The company had no entrustment, contracting, or leasing situations during the reporting period[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) Company Guarantees for Subsidiaries | Name of Guaranteed Party | Guarantee Limit (RMB 10,000) | Actual Occurrence Date | Actual Guarantee Amount (RMB 10,000) | Type of Guarantee | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Ningxia Zhongchuang Urban Environmental Services Co., Ltd. | 3,000 | January 13, 2025 | 520 | Joint and several liability guarantee | 1 year | No | | Jiangxi Naihua Environmental Protection Technology Co., Ltd. | 7,000 | January 24, 2025 | 500 | Joint and several liability guarantee | 1 year | No | | Xiamen Baifu Environmental Protection Technology Co., Ltd. | 10,000 | March 26, 2025 | 1,000 | Joint and several liability guarantee | 3 years | No | | Xiamen Baifu Environmental Protection Technology Co., Ltd. | 10,000 | March 05, 2025 | 396.17 | Joint and several liability guarantee | 3 years | No | | Suzhou Detongyuan Environmental Protection Technology Co., Ltd. | 30,000 | May 29, 2025 | 990 | Joint and several liability guarantee | 3 years | No | | **Total actual guarantee balance for subsidiaries at period-end** | | | **17,790** | | | | | **Ratio of total actual guarantee to company's net assets** | | | | | | **107.91%** | | **Of which: Debt guarantees provided directly or indirectly for guaranteed parties with asset-liability ratio exceeding 70%** | | | **10,390** | | | | - The company had no other significant contracts during the reporting period[127](index=127&type=chunk) [Explanation of Other Significant Matters](index=41&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) This section explains the ongoing private placement of shares, which is subject to exchange review and regulatory approval, with an uncertain final outcome - The company received the "Notice on Accepting Application Documents for Issuance of Shares to Specific Objects by Xiamen Zhongchuang Environmental Protection Technology Co., Ltd." from the Shenzhen Stock Exchange on **March 15, 2025**[128](index=128&type=chunk) - The company has received the first and second rounds of audit inquiry letters from the Shenzhen Stock Exchange and has carefully studied and responded to each item with intermediary agencies[128](index=128&type=chunk) - This share issuance is still subject to review by the Shenzhen Stock Exchange and approval for registration by the China Securities Regulatory Commission, and the final outcome remains uncertain[128](index=128&type=chunk) [Significant Matters of Company Subsidiaries](index=41&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) This section states that there were no other significant matters concerning the company's subsidiaries during the reporting period - The company had no other significant matters concerning its subsidiaries during the reporting period[129](index=129&type=chunk) Share Changes and Shareholder Information [Share Change Status](index=42&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) This section discloses changes in the company's share capital, noting an increase in restricted shares and a corresponding decrease in unrestricted shares due to executive lock-up Share Change Status | | 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 | 295,050 | 0.08% | 45,150 | 340,200 | 0.09% | | 3. Other Domestic Holdings | 295,050 | 0.08% | 45,150 | 340,200 | 0.09% | | Domestic Natural Person Holdings | 295,050 | 0.08% | 45,150 | 340,200 | 0.09% | | II. Unrestricted Shares | 385,195,393 | 99.92% | -45,150 | 385,150,243 | 99.91% | | 1. RMB Ordinary Shares | 385,195,393 | 99.92% | -45,150 | 385,150,243 | 99.91% | | III. Total Shares | 385,490,443 | 100.00% | 0 | 385,490,443 | 100.00% | - The reason for the share change is a net increase of **45,150 executive lock-up shares** during the reporting period, comprising an increase of 47,850 shares and a decrease of 2,700 shares[133](index=133&type=chunk) Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Shares Released from Restriction in Current Period (shares) | Shares Added to Restriction in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | Planned Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhang Hongliang | 144,150 | 0 | 0 | 144,150 | Executive lock-up shares | No more than 25% of total holdings released annually | | Xu Xiuli | 143,550 | 0 | 47,850 | 191,400 | Executive lock-up shares | If resigned before term expiration, no more than 25% of total holdings released annually | | Wang Zhihui | 4,650 | 0 | 0 | 4,650 | Executive lock-up shares | If resigned before term expiration, no more than 25% of total holdings released annually | | Li Jingfen | 2,700 | 2,700 | 0 | 0 | Executive lock-up shares | Released in January 2025 | | Total | 295,050 | 2,700 | 47,850 | 340,200 | -- | -- | [Securities Issuance and Listing](index=43&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) This section states that the company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[135](index=135&type=chunk) [Number of Shareholders and Shareholding Status](index=43&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) This section provides information on the company's shareholder count and major shareholdings, including the top ten shareholders and any pledged or frozen shares - The total number of ordinary shareholders at the end of the reporting period was **21,642**[136](index=136&type=chunk) Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-End (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Number (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhoukou Zhongkong Investment Co., Ltd. | State-owned legal person | 8.98% | 34,598,405 | 34,598,405 | Not applicable | 0 | | Xingtai Huifeng Zhifeng Enterprise Management Consulting Co., Ltd. | Domestic non-state-owned legal person | 4.22% | 16,285,848 | 16,285,848 | Not applicable | 0 | | Shanghai Zhongchuang Lingxing Energy Technology Group Co., Ltd. | Domestic non-state-owned legal person | 2.27% | 8,750,000 | 8,750,000 | Pledged | 8,750,000 | | Xiamen Kunna Commercial Co., Ltd. | Domestic non-state-owned legal person | 1.21% | 4,662,873 | 4,662,873 | Frozen | 4,662,873 | | Xiamen Shangyue Investment Consulting Co., Ltd. | Domestic non-state-owned legal person | 1.17% | 4,498,202 | 4,498,202 | Frozen | 4,498,202 | - Shanghai Zhongchuang Lingxing and Xingtai Huifeng Zhifeng are under the same controlling entity and constitute concerted parties[138](index=138&type=chunk) - Among the top 10 ordinary shareholders, Jin Xinfeng, Lin Yan, Shenzhen Shenboxintou Investment Management Co., Ltd. - Shenbo Hongtu Growth No 1 Private Securities Investment Fund, Hong Lu, and Ye Tingting all hold shares through margin trading and securities lending accounts[139](index=139&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=46&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) This section discloses changes in the shareholdings of the company's directors, supervisors, and senior management, including increases and decreases Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Shares Held at Beginning of Period (shares) | Shares Increased in Current Period (shares) | Shares Decreased in Current Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xu Xiuli | Director | Resigned | 143,550 | 47,850 | 0 | 191,400 | | Li Jingfen | Supervisor | Resigned | 2,700 | 0 | 2,700 | 0 | | Total | -- | -- | 146,250 | 47,850 | 2,700 | 191,400 | [Changes in Controlling Shareholder or Actual Controller](index=46&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) This section states that there were no changes in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[141](index=141&type=chunk) - The company's actual controller did not change during the reporting period[141](index=141&type=chunk) Bond Related Matters [Bond Related Matters](index=47&type=section&id=%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section states that the company had no preferred shares or bond-related matters during the reporting period - The company had no preferred shares during the reporting period[142](index=142&type=chunk) - The company had no bond-related matters during the reporting period[144](index=144&type=chunk) Financial Report [Audit Report](index=49&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This section states that the company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[146](index=146&type=chunk) [Financial Statements](index=49&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the company's consolidated and parent company financial statements for the 2025 half-year, including balance sheets, income statements, and cash flow statements Key Data from Consolidated Balance Sheet | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 773,150,468.32 | 792,423,333.68 | | Total Liabilities | 675,697,517.81 | 655,009,098.20 | | Total Equity Attributable to Parent Company Owners | 164,864,445.27 | 192,603,992.87 | | Minority Interests | -67,411,494.76 | -55,189,757.39 | | Total Owners' Equity | 97,452,950.51 | 137,414,235.48 | Key Data from Consolidated Income Statement | Item | 2025 Half-Year (RMB) | 2024 Half-Year (RMB) | | :--- | :--- | :--- | | I. Total Operating Revenue | 157,275,444.24 | 186,022,425.24 | | III. Operating Profit (Loss indicated by "-") | -40,055,877.32 | -9,454,563.31 | | V. Net Profit (Net Loss indicated by "-") | -39,986,403.30 | -9,227,349.33 | | Net Profit Attributable to Parent Company Shareholders | -29,413,039.51 | 3,029,257.75 | | Minority Interest Income/Loss | -10,573,363.79 | -12,256,607.08 | | VIII. Earnings Per Share: Basic Earnings Per Share | -0.0763 | 0.0079 | Key Data from Consolidated Cash Flow Statement | Item | 2025 Half-Year (RMB) | 2024 Half-Year (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -44,381,569.29 | -106,851,841.81 | | Net Cash Flow from Investing Activities | -1,011,870.73 | 179,195,103.34 | | Net Cash Flow from Financing Activities | 23,187,027.09 | -70,585,529.82 | | Net Increase in Cash and Cash Equivalents | -22,135,443.08 | 1,887,605.89 | | Cash and Cash Equivalents at End of Period | 14,933,031.10 | 24,164,333.02 | [Company Basic Information](index=67&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) This section outlines Xiamen Zhongchuang Environmental Protection Technology Co., Ltd.'s registration, capital, business scope, and changes in its consolidated subsidiaries - The company's registered address and headquarters address are both at No 1178-1188 Chunguang Road, Torch High-tech Zone (Xiang'an) Industrial Park, Xiamen[185](index=185&type=chunk) - As of June 30, 2025, the company's total issued share capital is **385,490,443 shares**, and its registered capital is **RMB 385,490,443**[185](index=185&type=chunk) - The company belongs to the environmental protection special equipment manufacturing industry, with its main products and services including R&D, production, and sales of high-performance high-temperature filter materials for bag dust collectors; environmental protection industry flue gas and water engineering; hazardous waste resource products and disposal services, sanitation services, and equipment manufacturing[185](index=185&type=chunk) - A total of **31 subsidiaries** were included in the scope of consolidation for this period, a decrease of 3 compared to the previous period, with specific information on changes in consolidated entities detailed in Note IX, Changes in Consolidation Scope[185](index=185&type=chunk) [Basis of Financial Statement Preparation](index=68&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) This section explains that the financial statements are prepared in accordance with Chinese accounting standards and regulatory requirements, based on a going concern assumption - The company's financial statements are prepared in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and the "Information Disclosure Rules for Companies Issuing Securities No 15 - General Provisions for Financial Reports" (Revised 2023) issued by the China Securities Regulatory Commission[186](index=186&type=chunk) - The company has evaluated its ability to continue as a going concern for 12 months from the end of the reporting period and found no significant doubts or circumstances, thus the financial statements are prepared on a going concern basis[187](index=187&type=chunk) [Significant Accounting Policies and Estimates](index=68&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the company's significant accounting policies and estimates, ensuring the financial statements accurately reflect its financial position and operating results - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, truly and completely reflecting the company's financial position, operating results, cash flows, and other relevant information for the reporting period[188](index=188&type=chunk) - The company classifies financial assets into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss, based on the business model for managing financial assets and the characteristics of contractual cash flows[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk) - The company recognizes revenue when it has satisfied a performance obligation in the contract, meaning when the customer obtains control of the related goods or services, at the transaction price allocated to that performance obligation[340](index=340&type=chunk) - The company offsets government grants related to assets against the book value of relevant assets or recognizes them as deferred income, and recognizes government grants related to income in current profit or loss or offsets them against relevant costs[356](index=356&type=chunk) [Taxation](index=104&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) This section discloses the company's main tax categories and rates, including VAT and corporate income tax, along with applicable tax incentives for high-tech and small-profit enterprises Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Domestic sales; provision of processing, repair, and maintenance services; import of materials and other goods; provision of tangible movable property leasing services | 13%, 9%, 6% | | Urban Maintenance and Construction Tax | Amount of actually paid turnover tax | 7%, 5%, 1% | | Corporate Income Tax | Taxable income | 25%, 20%, 15% | | Education Surcharge | Amount of actually paid turnover tax | 3% | | Local Education Surcharge | Amount of actually paid turnover tax | 2% | - The company and its subsidiaries Xiamen Baifu Environmental Protection Technology Co., Ltd. and Xinjiang Zhongbai Environmental Protection Technology Co., Ltd. are recognized as high-tech enterprises, enjoying a **10% reduction** in corporate income tax rate[389](index=389&type=chunk) - Subsidiary Jiangxi Naihua Environmental Protection Technology Co., Ltd. qualifies for the VAT preferential catalog for resource comprehensive utilization products and services, enjoying a **30% immediate refund** policy for VAT[388](index=388&type=chunk) - Several subsidiaries are eligible for the small and micro-profit enterprise income tax preferential policy, paying corporate income tax at a **20% rate** on 25% of their taxable income, a policy extended until **December 31, 2027**[390](index=390&type=chunk) [Notes to Consolidated Financial Statement Items](index=106&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes for consolidated financial statement items, including cash, receivables, inventory, fixed assets, goodwill, and various liabilities Composition of Cash and Bank Balances | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Cash on hand | 26,350.00 | 8,060.39 | | Bank deposits | 14,906,681.10 | 37,060,413.79 | | Other cash and bank balances | 5,670,375.61 | 7,110,037.95 | | Total | 20,603,406.71 | 44,178,512.13 | Details of Restricted Cash and Bank Balances | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Letter of credit margin | 6.00 | 6.00 | | Performance bond | 3,971,456.42 | 6,011,969.24 | | Frozen funds | 1,698,322.24 | 1,097,471.76 | | Share repurchase special fund | 90.88 | 90.88 | | Inactive account balance | 500.07 | 500.07 | | Total | 5,670,375.61 | 7,110,037.95 | - The ending book balance of accounts receivable is **RMB 280,999,535.56**, with an impairment provision of **RMB 69,688,459.81**, resulting in a book value of **RMB 211,311,075.75**[409](index=409&type=chunk) - The ending book value of inventories is **RMB 112,329,755.36**, a significant increase from the beginning balance of **RMB 69,789,648.46**[471](index=471&type=chunk) - The original book value of goodwill is **RMB 124,022,613.19**, primarily from Suzhou Detongyuan Environmental Protection Technology Co., Ltd., with an impairment provision of **RMB 68,163,934.28** already made[538](index=538&type=chunk)[540](index=540&type=chunk) - The ending balance of short-term borrowings is **RMB 228,400,755.60**, and the ending balance of long-term borrowings is **RMB 9,990,000.00**[558](index=558&type=chunk)[596](index=596&type=chunk) - The ending balance of notes payable is **RMB 2,809,160.00**, a significant decrease from the beginning balance of **RMB 15,000,000.00**[563](index=563&type=chunk) - The ending balance of employee compensation payable is **RMB 22,713,015.23**[584](index=584&type=chunk) - The ending balance of provisions is **RMB 65,551,935.32**, primarily for pending litigation[612](index=612&type=chunk) [Research and Development Expenses](index=156&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) This section details the company's R&D expenditures for the reporting period, noting an increase in expensed R&D with no capitalized projects R&D Expenditure Details | Item | Amount in Current Period (RMB) | Amount in Prior Period (RMB) | | :--- | :--- | :--- | | Employee compensation | 5,415,898.69 | 4,683,853.60 | | Material costs | 1,404,185.73 | 1,430,784.04 | | Depreciation and amortization | 860,713.29 | 808,651.39 | | Consulting fees | 118,882.59 | 458,526.48 | | Office expenses | 25,119.93 | 21,927.39 | | Fuel and power costs | 83,074.33 | 41,678.41 | | Other | 442,375.17 | 484,628.92 | | Total | 8,350,249.73 | 7,930,050.23 | | Of which: Expensed R&D expenditures | 8,350,249.73 | 7,930,050.23 | - There were no R&D projects meeting capitalization criteria in the current period[681](index=681&type=chunk) [Changes in Consolidation Scope](index=157&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) This section explains changes in the company's consolidation scope, with three subsidiaries removed due to deregistrations during the reporting period Changes in Subsidiary Consolidation Scope | Subsidiary Name | Reason for Change | Date of Change | | :--- | :--- | :--- | | Shanghai Zhongchuang Jisu Technology Co., Ltd. | Deregistration | 2025-5-22 | | Beijing Zhongchuang Zhisu Technology Co., Ltd. | Deregistration | 2025-5-20 | | Zhongchuang (Beijing) New Energy Co., Ltd. | Deregistration | 2025-1-2 | [Interests in Other Entities](index=160&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) This section details the company's interests in subsidiaries, joint ventures, and associates, including financial performance of key non-wholly owned subsidiaries and changes in equity - The company has a total of **31 subsidiaries** included in the scope of consolidation for this period, including Beijing Zhongchuang Environmental Services Co., Ltd., Xiamen Baifu Environmental Protection Technology Co., Ltd., etc[695](index=695&type=chunk)[696](index=696&type=chunk)[697](index=697&type=chunk) Financial Information of Important Non-Wholly Owned Subsidiaries | Subsidiary Name | Minority Shareholding Percentage | Net Profit/Loss Attributable to Minority Shareholders in Current Period (RMB) | Minority Interests Balance at Period-End (RMB) | | :--- | :--- | :--- | :--- | | Suzhou Detongyuan Environmental Protection Technology Co., Ltd. | 51.20% | -7,292,237.08 | -60,471,024.86 | | Jiangxi Naihua Environmental Protection Technology Co., Ltd. | 49.00% | -2,731,313.47 | -6,695,466.83 | - In **May 2025**, subsidiary Xiamen Sanweisi Supply Chain Management Co., Ltd. transferred its **40% equity** in the joint venture Zhongchuang Environmental Protection (Xinjiang) Technology Co., Ltd. for **RMB 0**, and no longer holds equity after the transfer[709](index=709&type=chunk) - The accumulated unrecognized prior losses of the associate Xiamen Sanweisi Investment Management Co., Ltd. were **-RMB 153,963.38**, with unrecognized losses of **-RMB 1,239.85** in the current period, resulting in accumulated unrecognized losses of **-RMB 155,203.23** at period-end[714](index=714&type=chunk) [Government Grants](index=166&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) This section discloses government grants received, including deferred income related to assets and income, and amounts recognized in current period profit or loss Liability Items Involving Government Grants | Accounting Account | Beginning Balance (RMB) | New Grants in Current Period (RMB) | Amount Transferred to Other Income in Current Period (RMB) | Ending Balance (RMB) | Related to Assets/Income | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred income | 4,026,584.95 | 0 | 913,011.92 | 2,158,037.86 | Related to assets | | Deferred income | 0 | 163,000.00 | 90,025.00 | 72,975.00 | Related to income | Government Grants Recognized in Current Profit or Loss | Accounting Account | Amount in Current Period (RMB) | Amount in Prior Period (RMB) | | :--- | :--- | :--- | | Other income | 2,197,297.82 | 1,628,236.05 | - Government grant projects include the cement kiln dust collector "electric-to-bag" special high-performance high-temperature filter material production line project, PTFE membrane filter material industrialization, the Ministry of Industry and Information Technology General Office's notice on the first batch of acceptance evaluation results for the 2020 Industrial Foundation Reinforcement Project implementation plan, high-performance microporous filter material production construction project, Jiangxi Naihua Phase I infrastructure construction support funds, and other asset-related grants[718](index=718&type=chunk) - Income-related grants include the perchlorate pollution low-cost treatment project, standardization strategy funding, R&D expense subsidies, patent pledge financing promotion project subsidies, rewards for enterprises entering the upper limit of scale (second batch), a

[Section I Important Notice, Table of Contents, and Definitions](index=2&type=section&id=第一节%20重要提示、目录和释义) This section covers important notices, the report's table of contents, and definitions of key terms, ensuring clarity and compliance [Important Notice](index=2&type=section&id=重要提示) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report; forward-looking statements regarding future development strategies in the report involve uncertain risks; the company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for this half-year period - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[3](index=3&type=chunk) - Forward-looking statements regarding future development strategies in the report are planning matters and involve uncertain risks[3](index=3&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=目录) This report's table of contents clearly lists eight main chapters, covering important notices, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, and financial reports, facilitating investor review - The report's table of contents includes eight main chapters with a clear structure[6](index=6&type=chunk) [Definitions](index=5&type=section&id=释义) This section provides definitions for common terms used in the report, including company name, subsidiary names, regulatory bodies, major customer groups, reporting period, and specialized technical terms such as machine vision, 3D, SMT, AOI, SPI, Mini LED, semiconductor, X-ray, AXI, 3D-CT, image processing software algorithms, solder paste, and electronic assembly technology, ensuring accurate understanding of the report content - Definitions for basic information such as the company, subsidiaries, regulatory bodies, and major customer groups are provided[10](index=10&type=chunk) - Key technologies and industry terms such as machine vision, AOI, SPI, AXI, Mini LED, and semiconductor are explained in detail[10](index=10&type=chunk)[12](index=12&type=chunk) [Section II Company Profile and Key Financial Indicators](index=7&type=section&id=第二节%20公司简介和主要财务指标) This section provides an overview of the company's profile, contact information, and key financial performance indicators for the reporting period [1. Company Profile](index=7&type=section&id=一、公司简介) Shanghai Jutze Technology Co., Ltd. (stock abbreviation: Jutze Technology, stock code: 300802) is listed on the Shenzhen Stock Exchange, with Yang Yong as its legal representative - Company stock abbreviation: **Jutze Technology**, stock code: **300802**[14](index=14&type=chunk) - The company is listed on the Shenzhen Stock Exchange, with Yang Yong as its legal representative[14](index=14&type=chunk) [2. Contact Person and Information](index=7&type=section&id=二、联系人和联系方式) The company's Board Secretary is Liu Yang, and the Securities Affairs Representative is Ge Yanwen; both share the same contact address at Unit 3301, 33rd Floor, No. 701 Yunjin Road, Xuhui District, Shanghai, with identical phone and fax numbers, and email address investors@jutze.com.cn - Board Secretary: Liu Yang; Securities Affairs Representative: Ge Yanwen[15](index=15&type=chunk) - Contact address: Unit 3301, 33rd Floor, No. 701 Yunjin Road, Xuhui District, Shanghai; Email: investors@jutze.com.cn[15](index=15&type=chunk) [3. Other Information](index=7&type=section&id=三、其他情况) During the reporting period, there were no changes in the company's registered address, office address, website, email, information disclosure and placement locations, or registration status; specific details can be found in the 2024 annual report - The company's contact information, information disclosure and placement locations, and registration status remained unchanged during the reporting period[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) [4. Key Accounting Data and Financial Indicators](index=8&type=section&id=四、主要会计数据和财务指标) In the first half of 2025, the company's operating revenue increased by **22.99%** to **389 million yuan**, and net profit attributable to the parent company increased by **10.14%** to **50.10 million yuan**; however, net cash flow from operating activities significantly decreased by **77.15%**, primarily due to increased payments for goods, while total assets and net assets attributable to the parent company slightly declined Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (yuan) | Prior Period (yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 388865955.66 | 316179029.37 | 22.99% | | Net Profit Attributable to Listed Company Shareholders | 50102663.70 | 45490508.26 | 10.14% | | Net Profit Attributable to Listed Company Shareholders After Deducting Non-Recurring Gains and Losses | 46480298.73 | 40350015.72 | 15.19% | | Net Cash Flow from Operating Activities | 10993740.22 | 48122294.33 | -77.15% | | Basic Earnings Per Share (yuan/share) | 0.17 | 0.16 | 6.25% | | Diluted Earnings Per Share (yuan/share) | 0.17 | 0.16 | 6.25% | | Weighted Average Return on Net Assets | 3.13% | 2.73% | 0.40% | | Indicator | End of Current Period (yuan) | End of Prior Year (yuan) | Change from Prior Year-End (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1842310117.90 | 1845025084.69 | -0.15% | | Net Assets Attributable to Listed Company Shareholders | 1454321093.66 | 1618278399.41 | -10.13% | - Net cash flow from operating activities significantly decreased by **77.15%** year-on-year, primarily due to increased payments for goods[19](index=19&type=chunk)[48](index=48&type=chunk) [5. Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=8&type=section&id=五、境内外会计准则下会计数据差异) During the reporting period, there were no differences in net profit and net assets in the financial reports disclosed under International Accounting Standards or overseas accounting standards compared to Chinese Accounting Standards - The company had no differences in accounting data under domestic and overseas accounting standards during the reporting period[20](index=20&type=chunk)[21](index=21&type=chunk) [6. Non-Recurring Gains and Losses Items and Amounts](index=8&type=section&id=六、非经常性损益项目及金额) During the reporting period, the company's total non-recurring gains and losses amounted to **3.62 million yuan**, primarily from fair value changes and disposal gains/losses of financial assets and liabilities, with government subsidies also contributing a certain amount Non-Recurring Gains and Losses Items and Amounts for H1 2025 | Item | Amount (yuan) | | :--- | :--- | | Gains/losses on disposal of non-current assets | -20056.72 | | Government subsidies recognized in current profit/loss | 221622.81 | | Gains/losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains/losses from disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations | 3921572.10 | | Other non-operating income and expenses apart from the above | 136944.85 | | Less: Income tax impact | 637718.07 | | **Total** | **3622364.97** | - The company has no other profit/loss items that meet the definition of non-recurring gains and losses, nor has it classified any non-recurring gains and losses as recurring gains and losses[24](index=24&type=chunk) [Section III Management Discussion and Analysis](index=10&type=section&id=第三节%20管理层讨论与分析) This section details the company's principal business activities, core competencies, financial performance analysis, investment status, and risk management strategies [1. Principal Business Activities During the Reporting Period](index=10&type=section&id=一、报告期内公司从事的主要业务) The company primarily engages in the R&D, production, and sales of machine vision equipment, control cable assemblies, and control units and equipment, with products widely used in electronic information manufacturing, industrial control, financial electronics, new energy, and automotive sectors; during the reporting period, the company continuously increased investment in AI algorithms to enhance the competitiveness of its machine vision products, with semiconductor AOI equipment becoming a new growth driver, and AXI equipment expected to achieve sales in the second half of the year; the company holds a first-mover advantage in 3D machine vision inspection equipment and actively expands into downstream applications such as semiconductors and displays - The company's main business involves the R&D, production, and sales of machine vision equipment, control cable assemblies, and control units and equipment[26](index=26&type=chunk) - During the reporting period, the company continuously intensified the iteration and integration of AI algorithms, launching multiple industry-competitive AI inspection models for critical PCBA and semiconductor packaging and testing processes, achieving breakthrough improvements[27](index=27&type=chunk) - The company's semiconductor packaging and testing third optical inspection AOI products have been supplied to several well-known packaging and testing manufacturers and power device manufacturers in the industry, continuously securing repeat orders, making semiconductor AOI equipment a new business growth point for the company[28](index=28&type=chunk) - The independently developed 3D online X-ray inspection equipment (AXI) based on X-ray imaging technology has passed certification tests by some customers and is expected to achieve sales in the second half of the year[28](index=28&type=chunk) [1.1 Principal Business](index=10&type=section&id=(一)%20主要业务) The company's main business is the R&D, production, and sales of machine vision equipment, control cable assemblies, and control units and equipment, with products widely used in electronic information manufacturing, industrial control, financial electronics, new energy, and automotive sectors; during the reporting period, the company's operating revenue increased by **22.99%**, net profit attributable to the parent company increased by **10.14%**, and non-recurring net profit increased by **15.19%**, primarily benefiting from the introduction of AI algorithms and improved performance of machine vision products - The company's main business is the R&D, production, and sales of machine vision equipment, control cable assemblies, and control units and equipment, with products possessing independent intellectual property rights[26](index=26&type=chunk) - In the first half of 2025, the company achieved operating revenue of **388.87 million yuan**, a year-on-year increase of **22.99%**; net profit attributable to shareholders of listed companies was **50.10 million yuan**, a year-on-year increase of **10.14%**; and net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was **46.48 million yuan**, a year-on-year increase of **15.19%**[27](index=27&type=chunk) - The company continuously intensified the iteration and integration of AI algorithms, enhancing the performance and market competitiveness of its machine vision products, receiving positive market feedback, and seeing continuous growth in sales of related products[27](index=27&type=chunk) [1.2 Main Products](index=10&type=section&id=(二)%20主要产品) The company's main products include machine vision equipment (such as 2D/3D AOI, SPI, Mini LED AOI, semiconductor AOI, 3D AXI), control cable assemblies, and control units and equipment; the core of machine vision equipment lies in independently developed software algorithms and optical systems, widely applied in consumer electronics, automotive electronics, and semiconductor fields, achieving import substitution; control cable assemblies and control units and equipment are customized products serving industries such as semiconductor equipment,

Part I Definitions This section provides definitions for key terms used throughout the report, ensuring clarity and consistent understanding of the content [Definitions of Common Terms](index=4&type=section&id=%E5%B8%B8%E7%94%A8%E8%AF%8D%E8%AF%AD%E9%87%8A%E4%B9%89) This chapter defines common terms used in the report, including the company itself (CFLD), its controlling shareholder (CFLD Holdings), major shareholders (Ping An Asset Management, Ping An Life), and key subsidiaries (Jingyu Real Estate, Jiutong Investment), providing a foundation for understanding the report's content - CFLD, the Company: Refers to China Fortune Land Development Co., Ltd[13](index=13&type=chunk) - CFLD Holdings: Refers to China Fortune Land Development Holdings Co., Ltd., the Company's controlling shareholder[13](index=13&type=chunk) - Ping An Life: China Ping An Life Insurance Co., Ltd., together with its concerted party Ping An Asset Management, is CFLD's largest shareholder[13](index=13&type=chunk) Part II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, historical changes, information disclosure, stock summary, and key financial performance indicators [I. Company Information](index=5&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section outlines the basic information of China Fortune Land Development Co., Ltd., including its Chinese name, abbreviation, English name and abbreviation, and legal representative Wang Wenxue Company Basic Information | Indicator | Content | | :--- | :--- | | Company's Chinese Name | 华夏幸福基业股份有限公司 | | Company's Chinese Abbreviation | 华夏幸福 | | Company's English Name | CHINAFORTUNELANDDEVELOPMENTCO.,LTD. | | Company's English Abbreviation | CFLD | | Company's Legal Representative | 王文学 | [II. Contact Person and Information](index=5&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section provides the contact information for the Company's Board Secretary, Li Yushan, including address, phone, fax, and email, facilitating communication for investors and relevant parties Board Secretary Contact Information | Name | Li Yushan | | :--- | :--- | | Contact Address | 23rd Floor, Tower A, Gateway Plaza, No. 18 Xiaguangli, East Third Ring North Road, Chaoyang District, Beijing | | Phone | 010-59115198 | | Fax | 010-59115196 | | Email | IR@cfldcn.com | [III. Overview of Changes in Basic Information](index=5&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E5%8F%98%E6%9B%B4%E7%AE%80%E4%BB%8B) This section introduces the historical changes in the company's registered address, which changed from Shangyu City, Zhejiang Province to Gu'an County, Hebei Province in August 2012, and lists the current registered address, office address, postal code, and company website - The company's registered address changed from "Zhongtang, Baiguan Town, Shangyu City, Zhejiang Province" to "No. 1, North of Third Road, West of Jingkai Road, Gu'an County, Hebei Province" in August 2012[17](index=17&type=chunk) - The company's office address is 23rd Floor, Tower A, Gateway Plaza, No. 18 Xiaguangli, East Third Ring North Road, Chaoyang District, Beijing, with postal code 100027[17](index=17&type=chunk) [IV. Overview of Changes in Information Disclosure and Document Custody Locations](index=5&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) This section specifies the company's designated newspapers for information disclosure, the website address for publishing semi-annual reports, and the location for document custody, noting no changes during the reporting period - The company's selected newspapers for information disclosure include China Securities Journal, Shanghai Securities News, Securities Daily, and Securities Times[18](index=18&type=chunk) - The website address for publishing semi-annual reports is www.sse.com.cn, and the company's semi-annual report is available at the company's Board of Directors Office[18](index=18&type=chunk) [V. Company Stock Overview](index=5&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) This section provides an overview of the company's A-share stock, including the listing exchange, stock abbreviation, stock code, and previous stock abbreviation Company Stock Summary | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | Previous Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | 华夏幸福 | 600340 | ST国祥 | [VII. Key Accounting Data and Financial Indicators](index=5&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section presents the company's key accounting data and financial indicators for the first half of 2025, showing a significant **50.90% year-on-year decrease in operating revenue**, a negative and expanding net loss attributable to shareholders, and negative net assets, reflecting severe financial challenges for the company Key Accounting Data (January-June 2025) | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,902,848,687.45 CNY | 5,911,893,136.71 CNY | -50.90 | | Total Profit | -8,179,459,971.72 CNY | -6,386,046,765.18 CNY | Not applicable | | Net Profit Attributable to Shareholders of Listed Company | -6,827,384,567.50 CNY | -4,849,241,467.27 CNY | Not applicable | | Net Profit Attributable to Shareholders of Listed Company After Non-recurring Gains and Losses | -7,705,307,740.49 CNY | -6,312,671,285.82 CNY | Not applicable | | Net Cash Flow from Operating Activities | -3,216,733,059.71 CNY | -148,014,639.92 CNY | Not applicable | | Net Assets Attributable to Shareholders of Listed Company | -1,819,911,576.06 CNY | 4,094,970,997.05 CNY | -144.44 | | Total Assets | 278,117,681,862.06 CNY | 304,389,031,558.94 CNY | -8.63 | Key Financial Indicators (January-June 2025) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | -1.75 | -1.25 | Not applicable | | Diluted Earnings Per Share (CNY/share) | -1.75 | -1.25 | Not applicable | | Basic EPS After Non-recurring Gains and Losses (CNY/share) | -1.98 | -1.62 | Not applicable | | Weighted Average Return on Net Assets (%) | -527.93 | -81.97 | Decrease by 445.96 percentage points | | Weighted Average Return on Net Assets After Non-recurring Gains and Losses (%) | -595.82 | -106.71 | Decrease by 489.11 percentage points | [IX. Non-recurring Gains and Losses Items and Amounts](index=6&type=section&id=%E4%B9%9D%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) This section details the company's non-recurring gains and losses items and their amounts for the first half of 2025, totaling **CNY 878 million**, with debt restructuring gains and losses contributing the most at **CNY 1.481 billion** Non-recurring Gains and Losses Items (January-June 2025) | Non-recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 131,340,939.52 | | Government grants recognized in current profit or loss | 907,773.85 | | Gains and losses from entrusted investments or asset management | 27,222,503.00 | | Debt restructuring gains and losses | 1,480,917,383.88 | | Gains and losses from changes in fair value of investment properties measured using fair value model | -46,422,093.32 | | Other non-operating income and expenses apart from the above items | -349,940,129.21 | | Other items meeting the definition of non-recurring gains and losses (Gains and losses from disposal of long-term equity investments) | 5,026,944.48 | | Less: Income tax impact | 331,194,888.67 | | Minority interests impact (after tax) | 39,935,260.54 | | Total | 877,923,172.99 | Part III Management Discussion and Analysis This section provides management's discussion and analysis of the company's operations, strategic transformation, industry overview, core competencies, and other significant disclosures [I. Company Operations and Comprehensive Transformation](index=8&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%A8%E9%9D%A2%E8%BD%AC%E5%9E%8B) In the first half of 2025, while advancing "guaranteed delivery" and debt restructuring, the company actively implemented its "comprehensive transformation into an industrial new city service provider" strategy, optimizing business models and strengthening core capabilities, achieving significant progress in residential project delivery, steadily advancing debt restructuring, and vigorously developing operations, services, and park-derived businesses, exploring asset-light output and new models - The company's strategic positioning is an "industrial new city service provider," continuously strengthening its full-process industrial development service capabilities with investment promotion as the core[27](index=27&type=chunk) [(I) Continued Advancement of 'Guaranteed Delivery'](index=8&type=section&id=(%E4%B8%80)%20%E6%8C%81%E7%BB%AD%E6%8E%A8%E8%BF%9B%22%E4%BF%9D%E4%BA%A4%E6%A5%BC%22) The company prioritizes "guaranteed delivery," and with government support and multi-channel fundraising, has completed the delivery of all residential projects, with **4 apartment projects / 12,000 units / 840,000 square meters** remaining for delivery - From the end of 2020 to the report disclosure date, all residential projects have been delivered[28](index=28&type=chunk) - There are **4 apartment projects** remaining for delivery, totaling **12,000 units** and **840,000 square meters**[28](index=28&type=chunk) [(II) Continued Advancement of Debt Restructuring](index=8&type=section&id=(%E4%BA%8C)%20%E6%8C%81%E7%BB%AD%E6%8E%A8%E8%BF%9B%E5%80%BA%E5%8A%A1%E9%87%8D%E7%BB%84) Adhering to the principle of "no evasion of debt, equal rights for equal debt," the company actively promotes financial debt restructuring, having achieved **CNY 192.669 billion** in financial debt restructuring through agreements as of the report disclosure date, and established "CFLD Select Platform" and "CFLD Premium Platform" for debt-for-equity swaps, cumulatively offsetting approximately **CNY 23.628 billion** in financial and operating debts - The "CFLD Debt Restructuring Plan" was announced on September 30, 2021, and approved by the Creditors Committee on December 9 of the same year[29](index=29&type=chunk) - As of the report disclosure date, the cumulative amount of **CNY 192.669 billion** in financial debt restructuring under the "Debt Restructuring Plan" (totaling **CNY 219.2 billion**) has been achieved through agreements and other means[29](index=29&type=chunk) - The company's "CFLD Select Platform" equity, established with shares of its subsidiaries, has offset approximately **CNY 17.454 billion** in financial debt, with relevant creditors obtaining an equity stake of approximately **43.00%** in the "CFLD Select Platform"[30](index=30&type=chunk)[31](index=31&type=chunk) - The company's "CFLD Select Platform" and "CFLD Premium Platform" equity, established with shares of its subsidiaries, have offset approximately **CNY 6.174 billion** in operating debt[31](index=31&type=chunk) - Trust plan beneficiary units have offset a total of no more than **CNY 24.001 billion** in "cash-for-equity-for-debt" financial claims, with **CNY 22.348 billion** in trust debt-for-equity transactions already completed[32](index=32&type=chunk) [(III) Orderly Advancement of Business Operations](index=9&type=section&id=(%E4%B8%89)%20%E6%9C%89%E5%BA%8F%E6%8E%A8%E8%BF%9B%E4%B8%9A%E5%8A%A1%E7%BB%8F%E8%90%A5) While undergoing debt restructuring, the company actively developed development, operation, service, and park-derived businesses, fully transforming into an "industrial new city service provider," with **CNY 13.66 billion** in new signed investment for industrial new city development, **187,000 square meters** in new investment promotion area for Beijing-Tianjin-Hebei industrial parks, over **120 million square meters** in property management area, and a **25% year-on-year increase** in real estate agency construction output value - Within the entrusted areas of industrial new city comprehensive development agreements, **18 new enterprises** have entered the parks, with new signed investment totaling **CNY 13.66 billion**[33](index=33&type=chunk) - In the first half of 2025, Beijing-Tianjin-Hebei industrial parks added **65 new investment promotion projects**, with a contracted area of approximately **187,000 square meters**[34](index=34&type=chunk) - In the first half of 2025, CFLD Property's managed area for city services and industrial park services was approximately **65.69 million square meters**, and for residential services, it was approximately **59.24 million square meters**[34](index=34&type=chunk) - Beijing Xingfu Anji Construction Management Co., Ltd. achieved approximately **CNY 22 million** in new output value in the first half of the year, a **25% year-on-year increase**[35](index=35&type=chunk) - Suzhou Torch Innovation and Entrepreneurship Incubation Management Co., Ltd., invested by the company, achieved operating revenue of **CNY 142 million** and operational cash collection of **CNY 153 million**[35](index=35&type=chunk) [(IV) Deepening Comprehensive Transformation](index=10&type=section&id=(%E5%9B%9B)%20%E6%B7%B1%E5%85%A5%E6%8E%A8%E8%BF%9B%E5%85%A8%E9%9D%A2%E8%BD%AC%E5%9E%8B) The company firmly adheres to the "industrial new city service provider" strategic direction, solidifying its transformation path and achieving business development through asset-light output, leveraging park resources, and exploring new real estate development models - The company is comprehensively transforming into an "industrial new city service provider," relying on its full-process industrial development capabilities centered on investment promotion and extensive industrial park resources[36](index=36&type=chunk) - Key transformation paths include asset-light output, continuous exploration and realization of park resources (such as new energy and digitalization), and exploring new real estate development models like agency construction and sales services[36](index=36&type=chunk) [II. Industry and Main Business Overview During the Reporting Period](index=10&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) This chapter elaborates on the macroeconomic situation in the first half of 2025, the development of the industries in which the company operates (industrial new cities, park and enterprise services, property management, residential development), and details the operating models of the company's main businesses, including the characteristics, operating mechanisms, and profit models of development, operation, service, and park-derived businesses [(I) Macroeconomic Review](index=10&type=section&id=(%E4%B8%80)%20%E5%AE%8F%E8%A7%82%E7%BB%8F%E6%B5%8E%E6%83%85%E5%86%B5%E5%9B%9E%E9%A1%B顾) In the first half of 2025, China's national economy showed steady improvement with **GDP growing by 5.3% year-on-year**, while the real estate sector underwent deep adjustments with narrowing sales declines and improved funding sources, and new quality productive forces accelerated cultivation, high-tech manufacturing and digital economy rapidly developed, and green development improved quality and efficiency - In the first half of 2025, China's Gross Domestic Product (GDP) was **CNY 66.0536 trillion**, a **5.3% year-on-year increase**[37](index=37&type=chunk) - In the first half of the year, national new commercial housing sales area decreased by **3.5% year-on-year**, and sales value decreased by **5.5% year-on-year**, with both declines narrowing[38](index=38&type=chunk) - The added value of high-tech manufacturing above designated size grew by **9.5%**, and new energy vehicle production increased by over **30% year-on-year**[39](index=39&type=chunk) [(II) Industry Review](index=11&type=section&id=(%E4%BA%8C)%20%E5%85%AC%E5%8F%B8%E6%89%80%E5%A4%84%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5%E5%9B%9E%E9%A1%B顾) Industrial new city construction aligns with high-quality development requirements, with investment promotion being key to a modern industrial system, while REITs emerge as a crucial tool for revitalizing existing assets, and demand for park operations and enterprise services grows, necessitating high-quality development, with promising potential in urban property services and innovation in community property service models, and the real estate industry undergoes deep adjustments, highlighting the importance of agency construction as an asset-light model - Industrial new cities, as important carriers of new urbanization, drive local economic development through industrial agglomeration, technological innovation, and urban environmental optimization[40](index=40&type=chunk) - As of June 30, 2025, China's public REITs numbered **69**, with a total market capitalization of **CNY 205.475 billion**[41](index=41&type=chunk) - It is estimated that by 2025, the total building area of national industrial parks will exceed **6.2 billion square meters**, leading to increased demand for park operations and enterprise services[42](index=42&type=chunk) - In 2025, China's property service industry market size is expected to exceed **CNY 2.2 trillion**, with an annual compound growth rate maintained above **10%**[44](index=44&type=chunk) - In the first half of 2025, national real estate development investment decreased by **11.2% year-on-year**, and new housing starts decreased by **20.0%**[47](index=47&type=chunk) - In the first half of 2025, the planned new construction area of real estate agency construction enterprises increased by **17.6% year-on-year**, with agency construction placed in an important strategic position as an asset-light business[48](index=48&type=chunk) [(III) Overview of Main Businesses and Operating Models](index=14&type=section&id=(%E4%B8%89)%20%E5%85%AC%E5%8F%B8%E6%89%80%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E3%80%81%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F%E8%AF%B4%E6%98%8E) The company's main businesses include industrial new city development, residential development, industrial park operations, innovation center operations, industrial development services (investment promotion, leasing, industry-city services), property management, real estate services (agency construction, sales), and park-derived businesses (sci-tech park operations, other derived businesses), with each business segment having distinct model characteristics, operating mechanisms, and profit models, aiming to achieve high-quality regional development and asset appreciation through specialized services and resource integration - Industrial new city development adopts a market-oriented operating mechanism of "government-led, enterprise-operated, win-win cooperation," providing planning and design, land consolidation, infrastructure construction, public supporting facilities construction, industrial development services, and urban operation services[55](index=55&type=chunk) - The profit model for industrial new city business includes planning and design and consulting service fees, land consolidation service fees, infrastructure and public facilities construction service fees, industrial development service fees (calculated at **45% of new landed investment**), and urban operation and maintenance service fees[56](index=56&type=chunk)[57](index=57&type=chunk) - Residential development, centered on the "Peacock City" brand, is committed to creating livable communities with a "beautiful life system"[60](index=60&type=chunk) - Industrial park operations focus on revitalizing existing assets, enhancing asset operating income through refined operations, and achieving full lifecycle management of "fundraising, investment, management, and exit"[62](index=62&type=chunk) - CFLD Investment Promotion provides full-process precise investment attraction services covering "research, planning, sourcing, negotiation, signing, and implementation," with service revenue collected as a certain percentage of the actual landed fixed asset investment total for each project[70](index=70&type=chunk)[72](index=72&type=chunk) - CFLD Property is committed to becoming "China's leading urban service provider," with service content including urban services, community services, and park services, and a fee model adopting either a lump-sum or commission basis[86](index=86&type=chunk)[88](index=88&type=chunk) - Real estate agency construction services, relying on Xingfu Anji, focus on first and second-tier cities, providing EPC+ general contracting, regional comprehensive development, commercial agency construction, industrial agency construction, and distressed project guaranteed delivery[92](index=92&type=chunk) - Sci-tech park operation business, represented by Suzhou Torch, adopts "lease-operation" and "entrusted-operation" models, providing space and specialized services for cultural and creative, and sci-tech enterprises[95](index=95&type=chunk)[96](index=96&type=chunk) [III. Discussion and Analysis of Operating Performance](index=24&type=section&id=%E4%B8%89%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In the first half of 2025, the company achieved phased results in debt restructuring and strategic transformation, activating existing resources through refined operations and fostering new growth drivers, with the second half focusing on completing "guaranteed delivery," steadily advancing debt restructuring, building a park service ecosystem, and strengthening capability development to ensure stable and sustainable company growth - In the first half of the year, the company fully advanced restructuring agreements, asset transactions, debt-for-equity swaps, and trust plans under the "Debt Restructuring Plan" and "Debt-for-Equity Swap Plan," achieving phased results[99](index=99&type=chunk) - The second half operating plan includes: fully tackling the completion of "guaranteed delivery," steadily advancing debt restructuring, focusing on transformation implementation to build a park service ecosystem, and strengthening capability development with optimized mechanisms to ensure stable growth[100](index=100&type=chunk)[101](index=101&type=chunk) [IV. Analysis of Core Competencies During the Reporting Period](index=25&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies lie in focusing on industries, building full-process industrial development capabilities, leveraging parks to fully explore application scenarios, meticulously planning and rooting in metropolitan areas and core regions, and comprehensively coordinating strategic transformation and strengthening organizational assurance mechanisms - The company builds full-process, all-region industrial development capabilities with investment promotion as the core, focusing on national strategic emerging industries and developing new quality productive forces[103](index=103&type=chunk) - The company has cultivated industrial park construction, operation, and services for over two decades, forming a development pattern of "urban image, industrial scale, and population agglomeration," and deeply exploring diverse application scenarios for industrial parks[104](index=104&type=chunk) - The company adheres to a core metropolitan area focus strategy, continuously cultivating key regions such as Beijing-Tianjin-Hebei, Yangtze River Delta, and Greater Bay Area, committed to "serving real enterprises and developing county economies"[105](index=105&type=chunk) - The company continuously optimizes its organizational structure, strengthens its cadre team, strictly implements performance appraisals, innovates distribution mechanisms, stimulates team enthusiasm, and ensures strategic implementation[106](index=106&type=chunk) [V. Key Operating Performance During the Reporting Period](index=25&type=section&id=%E4%BA%94%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) During the reporting period, the company steadily advanced its operations amidst debt restructuring and strategic transformation, achieving **CNY 2.903 billion** in operating revenue, a **50.90% year-on-year decrease**, and a net loss attributable to parent company shareholders of **CNY 6.827 billion**, with specific progress across all business segments, including **CNY 13.66 billion** in new signed investment for industrial new cities, **CNY 260 million** in market-oriented expansion contracts for CFLD Property, and a **25% year-on-year increase** in Xingfu Anji's output value, while the company's real estate land reserves totaled **4.1752 million square meters**, and period-end unbooked area was **4.3262 million square meters** Key Operating Data for H1 2025 | Indicator | Amount | | :--- | :--- | | Operating Revenue | 2.903 CNY billion | | YoY Change | Decrease by 50.90% | | Net Profit Attributable to Shareholders of Listed Company | -6.827 CNY billion | | Sales Amount | 2.849 CNY billion | | YoY Change | Decrease by 36.41% | [(II) Review of Specific Progress in Company Business Segments](index=25&type=section&id=(%E4%BA%8C)%20%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%9D%BF%E5%9D%97%E5%85%B7%E4%BD%93%E8%BF%9B%E5%B1%95%E5%9B%9E%E9%A1%B顾) All company business segments achieved specific progress during the reporting period, with industrial new city development focusing on core metropolitan areas, adding **CNY 13.66 billion** in new signed investment, and the Karawang Industrial New City in Indonesia forming a power battery industrial cluster, while operations business saw **187,000 square meters** in new signed area for Beijing-Tianjin-Hebei industrial parks and stable innovation center occupancy rates, and service businesses included CFLD Investment Promotion introducing **10 market-oriented industrial projects**, CFLD Blue Line Investment Promotion landing **143 projects**, CFLD Property achieving **CNY 260 million** in market-oriented contracts, and Xingfu Anji's output value increasing by **25% year-on-year**, and park-derived businesses saw Suzhou Torch achieve **CNY 142 million** in operating revenue, with "CFLD Select" and "CFLD Premium" platforms collectively implementing approximately **CNY 23.628 billion** in debt-for-equity swaps - Industrial new city development added **CNY 13.66 billion** in new signed investment, with Shanghai Biaoji Information Technology Co., Ltd. signing an investment of **CNY 8.2 billion**[110](index=110&type=chunk) - The Karawang Industrial New City in Indonesia has signed park entry investment agreements with **25 enterprises**, initially forming a power battery industrial cluster, with CATL already settled in[110](index=110&type=chunk) - In the first half of 2025, Beijing-Tianjin-Hebei industrial parks added **65 new signed projects**, with a contracted investment promotion area of **187,000 square meters**[113](index=113&type=chunk) - CFLD Investment Promotion introduced **10 industrial projects** for **5 market-oriented cooperation and entrusted regions**, with fixed asset investment totaling **CNY 3.733 billion**[115](index=115&type=chunk)[116](index=116&type=chunk) - CFLD Blue Line Investment Promotion landed **143 projects**, a **21% year-on-year increase**, with a total contracted area of **321,000 square meters**, a **143% year-on-year increase**[118](index=118&type=chunk) - In the first half of 2025, CFLD Property's operating revenue was approximately **CNY 701 million**, third-party business operating revenue was **CNY 87 million**, and it signed **44 market-oriented projects** with a contract value of **CNY 260 million**[122](index=122&type=chunk)[124](index=124&type=chunk) - Xingfu Anji achieved approximately **CNY 22 million** in new output value in the first half of the year, a **25% year-on-year increase**[126](index=126&type=chunk) - Suzhou Torch has **26 projects** in operation, with operating revenue of approximately **CNY 142 million** and operational cash collection of approximately **CNY 153 million**[129](index=129&type=chunk) - As of the report disclosure date, the company's financial and operating debts collectively implemented debt-for-equity swaps totaling approximately **CNY 23.628 billion**[133](index=133&type=chunk) [6. Analysis of Real Estate Industry Operating Information](index=32&type=section&id=6%E3%80%81%E6%88%BF%E5%9C%B0%E4%BA%A7%E8%A1%8C%E4%B8%9A%E7%BB%8F%E8%90%A5%E6%80%A7%E4%BF%A1%E6%81%AF%E5%88%86%E6%9E%90) During the reporting period, the company's real estate business held **4.1752 million square meters** of land awaiting development, **6.0881 million square meters** of primary land consolidation area, and **7.2148 million square meters** of planned gross floor area, achieving **CNY 784 million** in sales, **123,900 square meters** in sales area, **CNY 1.004 billion** in recognized revenue, with **4.3262 million square meters** remaining to be recognized at period-end Real Estate Reserve Status (Period-end) | Indicator | Area (square meters) | | :--- | :--- | | Area of land held for development | 4,175,163.65 | | Primary land consolidation area | 6,088,147.78 | | Planned gross floor area | 7,214,832.74 | | Land area involved in cooperative development projects | 1,434,156.33 | - During the reporting period, the company achieved total sales of **CNY 783.7922 million** and a sales area of **123,905.62 square meters**[157](index=157&type=chunk) - Recognized revenue amounted to **CNY 1.004171 billion**, with a recognized area of **129,177.64 square meters**[157](index=157&type=chunk) - At the end of the reporting period, the area awaiting revenue recognition was **4,326,244.08 square meters**[157](index=157&type=chunk) [(III) Analysis of Main Business](index=53&type=section&id=(%E4%B8%89)%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Analysis of the company's main business shows a significant year-on-year decrease in both operating revenue and operating costs, primarily due to fewer real estate projects recognized, while sales and administrative expenses decreased, and financial expenses increased due to higher interest, with net cash flow from operating activities decreasing, net cash flow from investing activities decreasing, and changes in net cash flow from financing activities being not applicable Analysis of Changes in Financial Statement Items (January-June 2025) | Item | Current Period Amount | Prior Year Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,902,848,687.45 CNY | 5,911,893,136.71 CNY | -50.90 | | Operating Cost | 2,610,025,546.38 CNY | 4,111,928,229.45 CNY | -36.53 | | Selling Expenses | 103,783,100.78 CNY | 179,166,125.88 CNY | -42.07 | | Administrative Expenses | 1,092,122,331.70 CNY | 1,264,115,508.27 CNY | -13.61 | | Financial Expenses | 4,990,057,059.78 CNY | 4,248,185,887.11 CNY | 17.46 | | R&D Expenses | 5,170,725.32 CNY | 5,635,480.58 CNY | -8.25 | | Net Cash Flow from Operating Activities | -3,216,733,059.71 CNY | -148,014,639.92 CNY | Not applicable | | Net Cash Flow from Investing Activities | 1,151,966,186.96 CNY | 1,209,589,620.79 CNY | -4.76 | | Net Cash Flow from Financing Activities | -733,301,059.64 CNY | -1,086,412,116.37 CNY | Not applicable | - The change in operating revenue was primarily due to a decrease in real estate projects recognized in the current period[158](index=158&type=chunk) - The change in financial expenses was primarily due to an increase in interest in the current period[158](index=158&type=chunk) [(V) Analysis of Assets and Liabilities](index=53&type=section&id=(%E4%BA%94)%20%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) The company's asset and liability structure underwent significant changes at the end of the reporting period, with a substantial decrease in monetary funds and accounts receivable, and a significant increase in prepayments, right-of-use assets, and lease liabilities, while overseas assets accounted for **1.66%** of total assets Analysis of Changes in Assets and Liabilities | Item Name | Current Period-end Amount | Proportion of Total Assets at Current Period-end (%) | Prior Year-end Amount | Proportion of Total Assets at Prior Year-end (%) | Change in Amount from Prior Year-end (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 3,002,256,164.72 CNY | 1.08 | 5,806,769,845.56 CNY | 1.91 | -48.30 | Primarily due to a decrease in net cash flow from operating activities in the current period | | Accounts Receivable | 27,639,794,765.85 CNY | 9.94 | 49,377,787,768.35 CNY | 16.22 | -44.02 | Primarily due to the "replacement loan" transaction | | Prepayments | 1,236,654,763.49 CNY | 0.44 | 892,742,905.65 CNY | 0.29 | 38.52 | Primarily due to an increase in construction payments in the current period | | Right-of-Use Assets | 67,978,962.63 CNY | 0.02 | 11,806,874.71 CNY | - | 475.76 | Primarily due to new lease agreements in the current period | | Lease Liabilities | 59,512,458.65 CNY | 0.02 | 4,225,055.63 CNY | - | 1,308.56 | Primarily due to new lease agreements in the current period | | Long-term Payables | 370,557,657.85 CNY | 0.13 | 1,065,384,773.04 CNY | 0.35 | -65.22 | Primarily due to reclassification to non-current liabilities due within one year | - Overseas assets amounted to **CNY 4.619 billion**, accounting for **1.66%** of total assets[160](index=160&type=chunk) [(VI) Analysis of Investment Status](index=54&type=section&id=(%E5%85%AD)%20%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) During the reporting period, the company's total external equity investment amounted to **CNY 3.69 billion**, a **56.62% increase** compared to the same period last year - During the reporting period, the company's equity investments, including establishing new companies, increasing capital in consolidated subsidiaries, and external mergers and acquisitions, totaled **CNY 3.69 billion**, a **56.62% increase** compared to the same period last year[161](index=161&type=chunk) [(VII) Significant Asset and Equity Disposals](index=55&type=section&id=(%E4%B8%83)%20%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company transferred **100% equity** of the target company to Langfang Asset Management via the "replacement loan" scheme, with Langfang Asset Management assuming **CNY 22.575 billion** in debt and acquiring equivalent assets to mitigate debt risks - The company plans to transfer **100% equity** of the target company to Langfang Asset Management, which will acquire **100% equity** of the target company for **CNY 2** and assume **CNY 22.575 billion** in debt[163](index=163&type=chunk) [(IX) Information on Structured Entities Controlled by the Company](index=55&type=section&id=(%E4%B9%9D)%20%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) Information on structured entities controlled by the company is detailed in Note X, 1. Interests in Subsidiaries, of the financial report - Information on structured entities controlled by the company can be found in Section VIII Financial Report, Note X, 1. Interests in Subsidiaries[164](index=164&type=chunk) [VI. Other Disclosure Matters](index=55&type=section&id=%E5%85%AD%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) The company faces risks such as overdue debt, financing difficulties, frozen bank accounts, and lawsuits due to macroeconomic, industry, and credit environment impacts, with limited development in some industrial new city businesses and real estate market price fluctuations, and is actively responding through debt restructuring, advancing "guaranteed delivery," strengthening operational self-sufficiency, optimizing management, strategic transformation, and enhancing organizational development - The company faces risks such as some debts not being repaid on schedule, some financing channels being blocked, some bank accounts being frozen, and pending lawsuits[164](index=164&type=chunk) - The company will continue to advance debt restructuring, ensuring its implementation, protecting creditors' interests, and optimizing the company's debt structure[166](index=166&type=chunk) - The company firmly adheres to the strategic direction of "comprehensive transformation into an industrial new city service provider," strengthening its core capabilities in investment promotion and exploring new growth points[166](index=166&type=chunk) Part IV Corporate Governance, Environment, and Society This section details the company's corporate governance practices, including profit distribution plans, equity incentive schemes, and environmental information disclosure [II. Profit Distribution or Capital Reserve Conversion Plan](index=57&type=section&id=%E4%BA%8C%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) During the current reporting period, the company's board of directors resolved "no" to a semi-annual profit distribution plan or capital reserve conversion to share capital plan, meaning there is no such plan - There is no semi-annual profit distribution plan or capital reserve conversion to share capital plan during the current reporting period[170](index=170&type=chunk) [III. Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures and Their Impact](index=57&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D) The company previously approved resolutions in 2020, 2021, and 2022 to cancel some stock options and repurchase and cancel some restricted shares, but as of now, the relevant cancellation and repurchase procedures have not yet been completed - In December 2020, the company agreed to cancel **1.1232 million stock options** held by **5 departed incentive recipients** and repurchase and cancel **483,600 restricted shares** held by them[171](index=171&type=chunk) - In April 2021, the company agreed to repurchase and cancel **19,881,680 restricted shares** that did not meet unlocking conditions and cancel **20,511,530 stock options** that did not meet exercise conditions[171](index=171&type=chunk) - In April 2022, the company agreed to cancel **16,312,530 stock options** unexercised during the second exercise period of the initial grant and cancel **4,199,000 stock options** unexercised during the first exercise period of the reserved grant[171](index=171&type=chunk)[172](index=172&type=chunk) - As of now, the company has not yet completed the cancellation of a total of **42,146,260 stock options** and the repurchase and cancellation of **20,365,280 restricted shares** mentioned above[172](index=172&type=chunk) [IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=58&type=section&id=%E5%9B%9B%E3%80%81%E7%BA%B3%E5%85%A5%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E4%BE%9D%E6%B3%95%E6%8A%AB%E9%9C%B2%E4%BC%81%E4%B8%9A%E5%90%8D%E5%8D%95%E7%9A%84%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E4%B8%BB%E8%A6%81%E5%AD%90%E5%85%AC%E5%8F%B8%E7%9A%84%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%83%85%E5%86%B5) The company has **5 subsidiaries** included in the list of enterprises required to disclose environmental information by law, and provides corresponding inquiry indexes for their environmental information disclosure reports - The number of enterprises included in the company's list of enterprises required to disclose environmental information by law is **5**[173](index=173&type=chunk) - These include Huailai Dingxing Investment Development Co., Ltd. Huailai Emerging Industrial Demonstration Zone Industrial Park Wastewater Treatment, Dachang Hui Autonomous County Dinghong Investment Development Co., Ltd. (South Heating Plant/North Heating Plant), Gu'an Jiutong Jiyuan Public Utilities Co., Ltd., and Gu'an Lvyuan Urban Wastewater Treatment Co., Ltd[173](index=173&type=chunk) Part V Significant Matters This section addresses significant matters including the fulfillment of commitments, changes in non-standard audit opinions, major litigation, integrity status, related party transactions, and the performance of significant contracts [I. Fulfillment of Commitments](index=59&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company's controlling shareholder, CFLD Holdings, failed to timely fulfill its profit forecast and compensation commitments, primarily due to industry and credit environment impacts, with no compensation consensus yet reached between the parties, while other commitments such as resolving horizontal competition, related party transactions, and share lock-ups have been timely fulfilled - The controlling shareholder, CFLD Holdings, failed to timely fulfill its profit forecast and compensation commitments, primarily due to multiple factors including industry and credit environment impacts, and after the company experienced liquidity strain, both parties have not yet reached a consensus on the compensation amount[176](index=176&type=chunk) - The controlling shareholder, CFLD Holdings, and the actual controller, Wang Wenxue, committed to resolving horizontal competition, which is long-term effective and has been timely fulfilled[176](index=176&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) - The controlling shareholder, CFLD Holdings, and the actual controller, Wang Wenxue, committed to resolving related party transactions, which is long-term effective and has been timely fulfilled[176](index=176&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk) - The controlling shareholder, CFLD Holdings, and its concerted parties, the actual controller Wang Wenxue, company directors, supervisors, and senior management committed to share lock-ups, which have been timely fulfilled[177](index=177&type=chunk)[186](index=186&type=chunk) [V. Changes and Handling of Matters Related to Non-Standard Audit Opinions in Prior Year's Annual Report](index=63&type=section&id=%E4%BA%94%E3%80%81%E4%B8%8A%E5%B9%B4%E5%B9%B4%E5%BA%A6%E6%8A%A5%E5%91%8A%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%84%8F%E8%A7%81%E6%B6%89%E5%8F%8A%E4%BA%8B%E9%A1%B9%E7%9A%84%E5%8F%98%E5%8C%96%E5%8F%8A%E5%A4%84%E7%90%86%E6%83%85%E5%86%B5) The company's 2024 annual financial report received an unqualified audit opinion with an emphasis of matter paragraph, highlighting the company's continuous losses, debt risks, and frozen accounts, while in the first half of 2025, the company continued to advance "guaranteed delivery" and debt restructuring, comprehensively transforming into an "industrial new city service provider," completing the delivery of all residential projects, orderly advancing business operations, and enhancing its self-sufficiency - Zhongxingcai Guanghua Certified Public Accountants issued an unqualified audit report with an emphasis of matter paragraph on the company's 2024 annual financial report[189](index=189&type=chunk) - The emphasis of matter included the company's continuous losses for **four consecutive years** after deducting non-recurring gains and losses, and the existence of some debts not repaid on schedule, some frozen bank accounts, and pending lawsuits[189](index=189&type=chunk) - In the first half of 2025, all of the company's residential projects have been delivered, with **4 apartment projects / 12,000 units / 840,000 square meters** remaining for delivery[190](index=190&type=chunk) - The company is comprehensively transforming into an "industrial new city service provider," developing operations, services, and park-derived businesses to enhance its operational self-sufficiency[190](index=190&type=chunk) [VII. Major Litigation and Arbitration Matters](index=63&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A1%B9) Since the fourth quarter of 2020, the company has faced liquidity risks, leading to overdue financial debts and operating agreement payments, triggering multiple lawsuits and arbitration cases, with the company regularly disclosing relevant progress and actively advancing debt restructuring to mitigate risks - Affected by the macroeconomic environment, industry environment, credit environment, and other factors, the company has faced phased liquidity risks since the fourth quarter of 2020, leading to financial debts not being repaid on schedule and overdue payments for operating-related agreements, triggering relevant lawsuits and arbitration cases[191](index=191&type=chunk) - The company regularly discloses information regarding lawsuits and arbitration cases, with specific details available in the company's interim announcements[192](index=192&type=chunk) [IX. Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period](index=64&type=section&id=%E4%B9%9D%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The company and its controlling shareholder experienced liquidity strain due to multiple factors, but firmly adhered to the principle of integrity in operations, actively advanced the "Debt Restructuring Plan" and "Debt-for-Equity Swap Plan," achieving **CNY 192.669 billion** in financial debt restructuring, and completing some asset disposals and trust debt-for-equity swaps to prudently mitigate debt risks and protect creditors' legitimate rights and interests - The company and its controlling shareholder experienced phased liquidity strain due to multiple factors including the macroeconomic environment, industry environment, and credit environment[193](index=193&type=chunk) - The "Debt Restructuring Plan" was announced on September 30, 2021, and approved by the Creditors Committee on December 9 of the same year, with "Debt-for-Equity Swap Plans" subsequently introduced[193](index=193&type=chunk) - As of the report disclosure date, the cumulative amount of **CNY 192.669 billion** in financial debt restructuring under the "Debt Restructuring Plan" (totaling **CNY 219.2 billion**) has been achieved through agreements and other means[194](index=194&type=chunk) - The company has completed asset transactions for Fengtai, some international real estate projects, etc., and the trust plan scheme has been approved by the general meeting of shareholders, with **CNY 22.348 billion** in trust debt-for-equity transactions already completed[194](index=194&type=chunk) - The company and its controlling shareholder will firmly adhere to the principle of integrity in operations, actively resolve current issues, prudently mitigate debt risks, and legally protect creditors' legitimate rights and interests[195](index=195&type=chunk) [X. Significant Related Party Transactions](index=65&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company's 18th meeting of the Eighth Board of Directors and the second extraordinary general meeting of shareholders in 2024 approved the report on significant asset disposal and related party transactions, and according to the debt restructuring agreement, **CNY 22.348 billion** in trust debt-for-equity transactions have been completed - The company's 18th meeting of the Eighth Board of Directors and the second extraordinary general meeting of shareholders in 2024 approved the "China Fortune Land Development Co., Ltd. Report on Significant Asset Disposal and Related Party Transactions (Draft) and its Summary" and other related proposals[197](index=197&type=chunk) - According to the latest progress announcement disclosed on August 9, 2025, the company has completed trust debt-for-equity transactions totaling **CNY 22.348 billion** in accordance with the "Debt Restructuring Agreement"[197](index=197&type=chunk) [XI. Significant Contracts and Their Performance](index=66&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company's total external guarantees amounted to **CNY 121.825 billion**, accounting for **852%** of its net assets, with guarantees to subsidiaries totaling **CNY 121.042 billion**, and the company and its subsidiaries provided mortgage loan guarantees of **CNY 39.784 billion** for commercial housing purchasers, while at the end of the reporting period, the company had multiple overdue external guarantees Company External Guarantees (Excluding Guarantees to Subsidiaries) | Guarantor | Guaranteed Party | Guaranteed Amount (CNY 100 million) | Guarantee Start Date | Guarantee End Date | Guarantee Type | Guarantee Fulfilled | Guarantee Overdue | Overdue Guarantee Amount (CNY 100 million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 华夏幸福 | Huailai Dingxing Investment Development Co., Ltd. | 4.45 | 2019-10-26 | 2030-3-31 | Joint and Several Liability Guarantee | No | Yes | 0.05 | | 华夏幸福 | Hexian Dingxing Park Construction Development Co., Ltd. | 0.10 | 2020-9-30 | 2033-5-29 | Joint and Several Liability Guarantee | No | No | - | | 华夏幸福 | Wuzhi Dingxing Park Construction Development Co., Ltd. | 0.73 | 2020-10-26 | 2024-6-30 | Joint and Several Liability Guarantee | No | Yes | 0.73 | | 华夏幸福及廊坊市京御幸福等 | Huailai Dingxing Investment Development Co., Ltd. | 1.23 | 2019-6-18 | 2029-3-15 | Joint and Several Liability Guarantee, Mortgage, Equity Pledge | No | No | - | | 华夏幸福 | Wuhan Yucan Real Estate Development Co., Ltd. | 1

中盐安徽红四方肥业股份有限公司2025 年半年度报告 公司代码：603395 公司简称：红四方 中盐安徽红四方肥业股份有限公司 2025 年半年度报告 1 / 208 中盐安徽红四方肥业股份有限公司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、 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、 公司负责人陈勇、主管会计工作负责人董志峰及会计机构负责人（会计主管人员）姚志刚 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 本报告期，公司不进行利润分配及资本公积转增股本。 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 公司已在本报告中详细描述可能存在的相关风险，敬请查阅本报告"第三节管理层讨论与分 析五、其他披露事项（一）可能面对的风险"相关内容。 六、 前瞻性陈述的风险声明 √ ...

Part I Important Notice, Table of Contents, and Definitions This section provides crucial disclaimers, outlines the report's structure, lists reference documents, and defines key terms for clarity [Important Notice](index=2&type=section&id=Important%20Notice) The company's board and senior management assure the report's accuracy, while forward-looking statements carry uncertainties; the company faces risks including product concentration and policy changes, and plans no interim dividend distribution - The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions[5](index=5&type=chunk) - Forward-looking statements regarding development strategies and future plans involve uncertainties and do not constitute substantive commitments to investors[6](index=6&type=chunk) - Key risks include product concentration, distributor management, industry policy changes, new product/business/model/project uncertainties, and risks associated with fundraising investment projects[6](index=6&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[7](index=7&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This section lists the eight main chapters of the semi-annual report and their corresponding page numbers, providing investors with an overview of the report's overall structure - The report contains eight main chapters, covering important notices, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, and financial reports[10](index=10&type=chunk) [Reference Documents Catalog](index=4&type=section&id=Reference%20Documents%20Catalog) This section specifies the types and location of the company's reference documents, including signed and sealed financial statements, original drafts of publicly disclosed documents, and other relevant materials, all available for inspection at the company's securities department - Reference documents include financial statements signed and sealed by the company's负责人, chief accountant, and head of accounting department, original copies of all company documents publicly disclosed during the reporting period, and other relevant materials[12](index=12&type=chunk) - These reference documents are available at the company's securities department[12](index=12&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section provides definitions for common terms used in the report, covering company and related party names, financial units, reporting period, and specialized terms related to pharmaceuticals and health products, ensuring clear understanding of the report's content - In the report, "Company", "the Company", and "Minsheng Health" all refer to Hangzhou Minsheng Health Pharmaceutical Co, Ltd[14](index=14&type=chunk) - "Reporting Period" refers to January 1, 2025, to June 30, 2025[14](index=14&type=chunk) - Professional terms such as "OTC drugs", "vitamins", "minerals", and "probiotics" are clearly defined[14](index=14&type=chunk) Part II Company Profile and Key Financial Indicators This section presents the company's fundamental information, contact details, and a comprehensive overview of key financial performance metrics and non-recurring items for the reporting period [I. Company Profile](index=6&type=section&id=I.%20Company%20Profile) This section provides the company's basic information, including stock abbreviation, code, listing exchange, Chinese name, and legal representative, clarifying the company's identity and market positioning - The company's stock abbreviation is "Minsheng Health", stock code "301507", listed on the Shenzhen Stock Exchange[16](index=16&type=chunk) - The company's Chinese name is Hangzhou Minsheng Health Pharmaceutical Co, Ltd, and its legal representative is Zhang Haijun[16](index=16&type=chunk) [II. Contact Person and Contact Information](index=6&type=section&id=II.%20Contact%20Person%20and%20Contact%20Information) This section lists the names, contact addresses, telephone numbers, fax numbers, and email addresses of the company's Board Secretary and Securities Affairs Representative, facilitating communication and information inquiries for investors - The Board Secretary is Chen Wenzhu, and the Securities Affairs Representative is Bao Weixia[17](index=17&type=chunk) - The contact address for both is No 658 Bin'an Road, Binjiang District, Hangzhou, telephone 0571-88211731, email msjk@mspharm.com[17](index=17&type=chunk) [III. Other Information](index=6&type=section&id=III.%20Other%20Information) This section confirms that the company's registered address, office address, website, email, information disclosure and reference location, and registration status remained unchanged during the reporting period, with specific details available in the 2024 annual report - The company's registered address, office address and postal code, company website, and email address remained unchanged during the reporting period[18](index=18&type=chunk) - The information disclosure and reference location remained unchanged during the reporting period[19](index=19&type=chunk) - The company's registration status remained unchanged during the reporting period[20](index=20&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=7&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This section presents the company's key accounting data and financial indicators for the current reporting period compared to the same period last year, showing a 16.37% increase in operating revenue, a 6.65% increase in net profit attributable to shareholders, a significant 37.89% increase in net cash flow from operating activities, and growth in total assets and net assets attributable to shareholders Key Accounting Data and Financial Indicators (Current Period vs. Prior Period) | Indicator | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 462,484,278.99 | 397,435,556.05 | 16.37% | | Net Profit Attributable to Shareholders of Listed Company | 82,405,120.58 | 77,269,374.16 | 6.65% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-recurring Gains and Losses | 79,328,679.20 | 74,557,323.13 | 6.40% | | Net Cash Flow from Operating Activities | 141,727,050.00 | 102,781,099.64 | 37.89% | | Basic Earnings Per Share (RMB/share) | 0.23 | 0.22 | 4.55% | | Diluted Earnings Per Share (RMB/share) | 0.23 | 0.22 | 4.55% | | Weighted Average Return on Net Assets | 5.25% | 5.11% | 0.14% | Key Accounting Data and Financial Indicators (End of Current Period vs. End of Prior Year) | Indicator | End of Current Period (RMB) | End of Prior Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,972,487,059.57 | 1,744,608,477.33 | 13.06% | | Net Assets Attributable to Shareholders of Listed Company | 1,578,013,390.97 | 1,530,846,241.06 | 3.08% | [V. Differences in Accounting Data under Domestic and Foreign Accounting Standards](index=7&type=section&id=V.%20Differences%20in%20Accounting%20Data%20under%20Domestic%20and%20Foreign%20Accounting%20Standards) This section states that during the reporting period, there were no differences in net profit and net assets between financial reports prepared under International Accounting Standards or foreign accounting standards and those prepared under Chinese Accounting Standards - During the reporting period, there were no differences in net profit and net assets between financial reports disclosed according to International Accounting Standards and those disclosed according to Chinese Accounting Standards[22](index=22&type=chunk) - During the reporting period, there were no differences in net profit and net assets between financial reports disclosed according to foreign accounting standards and those disclosed according to Chinese Accounting Standards[23](index=23&type=chunk) [VI. Non-recurring Gains and Losses Items and Amounts](index=8&type=section&id=VI.%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section details the non-recurring gains and losses items and amounts for the reporting period, totaling RMB 3.08 million, primarily from government subsidies, wealth management product income, and personal income tax handling fee refunds, confirming that the company has not classified non-recurring items as recurring Non-recurring Gains and Losses Items and Amounts (Unit: RMB) | Item | Amount | Explanation | | :--- | :--- | :--- | | Gains/losses from disposal of non-current assets | 9,071.78 | | | Government subsidies included in current profit/loss | 1,716,124.84 | Government subsidies obtained according to relevant government policies are included in current income | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises, excluding effective hedge accounting related to normal business operations | 1,699,339.44 | Primarily income from wealth management products | | Other non-operating income and expenses apart from the above | 140,063.97 | | | Other profit/loss items that meet the definition of non-recurring gains/losses | 126,574.15 | Primarily personal income tax handling fee refunds during the reporting period | | Less: Income tax impact | 393,462.09 | | | Minority interest impact (after tax) | 221,270.71 | | | **Total** | **3,076,441.38** | | - The company has not classified non-recurring gains and losses items listed in "Interpretive Announcement No 1 on Information Disclosure by Companies Issuing Securities to the Public—Non-recurring Gains and Losses" as recurring gains and losses[26](index=26&type=chunk) Part III Management Discussion and Analysis This section provides an in-depth analysis of the company's business operations, core strengths, financial performance, asset and liability status, investment activities, and outlines key risks and mitigation strategies [I. Main Business Activities of the Company During the Reporting Period](index=9&type=section&id=I.%20Main%20Business%20Activities%20of%20the%20Company%20During%20the%20Reporting%20Period) This section details the company's position in the pharmaceutical manufacturing and dietary supplement industries, highlighting market opportunities driven by favorable policies, rising national health awareness, and changing consumer demographics. The company focuses on the big health sector, with vitamin and mineral supplements as its core, while actively expanding into OTC drugs, probiotics, and medical aesthetics, continuously enhancing market competitiveness through R&D innovation, brand building, and multi-channel sales models - The company's industry is C27 pharmaceutical manufacturing, with its flagship product, 21 Jinweita® Multivitamin Tablets (21), classified as a Class B OTC drug[28](index=28&type=chunk) - The company's main products are primarily used for supplementing vitamins, minerals, and probiotics, belonging to the dietary supplement industry[29](index=29&type=chunk) - China's probiotic market has exceeded RMB 100 billion and is growing rapidly at an annual rate of 11%-12%, with an estimated market size approaching RMB 200 billion by 2028[29](index=29&type=chunk) - The company focuses on the big health sector, integrating R&D, production, and sales of OTC drugs, health foods, and functional foods, positioning itself as a high-tech enterprise[35](index=35&type=chunk) - The company primarily employs a distribution model for sales, while also expanding its online sales channels[38](index=38&type=chunk)[40](index=40&type=chunk) - During the reporting period, Varenicline Tartrate Tablets, Minoxidil Topical Solution (2%), and Minoxidil Topical Solution (5%) were approved and entered the commercialization phase[43](index=43&type=chunk) [Company's Industry Situation](index=9&type=section&id=Company%27s%20Industry%20Situation) The pharmaceutical manufacturing and dietary supplement markets benefit from national policy support, increased public health awareness, and segmented demands from aging and younger consumer groups. Particularly, the probiotic industry is experiencing rapid growth due to favorable policies and essential consumer demand, with its market size continuously expanding - Policies such as the "Healthy China 2030" Planning Outline provide long-term drivers for the pharmaceutical and health food industries, guiding the public to strengthen health awareness and shifting health consumption from treatment to prevention and healthcare[30](index=30&type=chunk) - The state highly values the probiotic sector, listing it as a national strategic emerging industry resource and a future industry, with the probiotic industry steadily moving towards high-quality development[32](index=32&type=chunk) - China's per capita consumption of dietary supplements is about 1/5 of that in developed countries, indicating significant room for market penetration improvement, while rising national health awareness and economic levels further expand market demand[33](index=33&type=chunk) - By the end of 2024, China's population aged 65 and above reached 220 million, accounting for 15.64% of the total population, entering a moderately aging society, which significantly increases demand for elderly care products[34](index=34&type=chunk) - Consumption trends in nutritional health foods show characteristics such as younger demographics, daily maintenance, segmented demand, and diversification, driving products towards more professional and specialized development[34](index=34&type=chunk) [Company's Main Business Activities](index=10&type=section&id=Company%27s%20Main%20Business%20Activities) The company focuses on the big health sector, with vitamin and mineral supplements as its core, continuously driving R&D innovation and product iteration to build a multi-dimensional product matrix, and steadily advancing therapeutic OTC drugs and probiotic businesses. Sales primarily rely on distribution, while actively expanding online channels and large supermarkets. Subsidiary Minsheng Zhongke's probiotic business flexibly uses a combination of direct sales and distribution models, providing full-chain services - The company focuses on vitamin and mineral supplement series products as the core of its business development, continuously deepening R&D innovation to build a multi-dimensional, tiered product matrix[35](index=35&type=chunk) - Steadily advancing therapeutic OTC drugs, probiotics, and other business segments, comprehensively covering traditional health, trendy health, and technological health fields, and increasing brand building efforts[35](index=35&type=chunk) - The company primarily adopts a production model combining sales-driven production and safety stock, strictly adhering to GMP procedures to ensure product quality[37](index=37&type=chunk) - The company employs a distribution model and other models for sales, with the distribution model being primary, serving mainly large national pharmaceutical distributors and strong regional pharmaceutical distributors[38](index=38&type=chunk)[39](index=39&type=chunk) - To enrich its sales channel system, the company collaborates with large supermarkets and operates self-managed stores on well-known e-commerce platforms such as Tmall, JD.com, Pinduoduo, Douyin, Kuaishou, and Xiaohongshu, conducting online distribution business[40](index=40&type=chunk) - Subsidiary Minsheng Zhongke, in line with the characteristics of its probiotic business, flexibly uses a combination of direct sales and distribution models, providing probiotic raw bacterial powder, OEM/ODM, and private label formulations[41](index=41&type=chunk)[42](index=42&type=chunk) - During the reporting period, Varenicline Tartrate Tablets, Minoxidil Topical Solution (2%), and Minoxidil Topical Solution (5%) were approved and entered the commercialization phase[43](index=43&type=chunk) [II. Core Competitiveness Analysis](index=12&type=section&id=II.%20Core%20Competitiveness%20Analysis) The company's core competitiveness lies in its rich and diverse product matrix, centered on "21 Jinweita" and expanding into OTC, probiotics, and medical aesthetics; a multi-dimensional synergistic brand system enhancing market influence; a stable and diverse marketing network achieving full online and offline channel coverage; a professional and efficient management team providing solid support for company development; and an independent and controllable core technology system, achieving significant R&D results and patent approvals in both vitamin-mineral and probiotic fields - The company's flagship product, "21 Jinweita® Multivitamin Tablets (21)", launched in 1985, pioneered the domestic vitamin and mineral industry and continues to enrich its product categories, comprehensively laying out the big health sector[44](index=44&type=chunk)[45](index=45&type=chunk) - The core brand "21 Jinweita" has developed into a leading brand in the domestic vitamin and mineral sector, repeatedly ranking on the CPhI Golden Award Drug List and "CPhI Brand Gold List"[46](index=46&type=chunk) - The company has built a big health brand matrix including "21 Jinweita" (vitamins and minerals), "Minsheng" (professional therapeutic OTC), "Pruibao" (probiotics), and "Jisuoran" (medical aesthetics)[46](index=46&type=chunk) - The company has established a marketing network covering all major domestic markets, achieving full-channel product coverage through offline professional business teams and online multi-platform self-operated stores and distribution businesses[47](index=47&type=chunk) - The core management team possesses rich practical experience in the pharmaceutical and health industry, forming differentiated competitive advantages in key areas such as R&D innovation, supply chain management, and brand channel building[48](index=48&type=chunk) - The company has formed an independent and controllable core technology system in both vitamin-mineral and probiotic business areas, including multi-nutrient synergistic formulation technology and the Yanhuang strain library[50](index=50&type=chunk) - During the reporting period, the company and its subsidiaries obtained 3 new drug approvals (Varenicline Tartrate Tablets, Minoxidil Topical Solution 2% and 5%), 2 authorized invention patents, 1 utility model patent, and 1 health food registration certificate/filing certificate[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - As of June 30, 2025, the company and its subsidiaries hold 162 authorized patents, 13 drug approvals, and 60 health food registration certificates/filing certificates[50](index=50&type=chunk) [III. Main Business Analysis](index=14&type=section&id=III.%20Main%20Business%20Analysis) During the reporting period, the company's main business performed strongly, with both operating revenue and net profit growing, thanks to the deep implementation of the "Four New" strategy. The company continued to increase R&D investment, optimize production management, advance fundraising projects, and actively recruit talent and expand online and offline channels, with its probiotic business successfully expanding into overseas markets. Vitamin and mineral supplement series products remain the main source of income, but gross margin has decreased - During the reporting period, the company achieved operating revenue of RMB 462.48 million, a year-on-year increase of 16.37%; net profit attributable to shareholders of the listed company was RMB 82.41 million, a year-on-year increase of 6.65%[55](index=55&type=chunk) - In the first half of 2025, R&D expenses totaled RMB 16.27 million, accounting for 3.52% of the company's operating revenue, achieving positive progress in OTC drugs, health foods, new food ingredients, and other sectors[56](index=56&type=chunk) - Fundraising projects (intelligent production line technical transformation project for health foods, intelligent production line technical transformation project for vitamin and mineral OTC products) are progressing smoothly as planned[57](index=57&type=chunk) - The company continuously optimized human resource allocation, recruiting 3 masters and 22 undergraduates, primarily to support the medical aesthetics business unit, international business department, and R&D and marketing departments[57](index=57&type=chunk) - In terms of channel layout, driven by deep offline penetration and full-domain online expansion, probiotic products have gradually been exported to countries and regions such as the United States, Canada, Singapore, France, Sweden, and South Africa[58](index=58&type=chunk)[59](index=59&type=chunk) Major Financial Data Year-on-Year Changes (Unit: RMB) | Indicator | Current Period | Prior Period | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 462,484,278.99 | 397,435,556.05 | 16.37% | | | Operating Cost | 211,115,711.95 | 157,255,187.25 | 34.25% | Due to changes in revenue structure during the reporting period | | Financial Expenses | -4,787,975.69 | -11,814,178.45 | 59.47% | Due to changes in fund volume and decrease in wealth management interest rates during the reporting period | | Net Cash Flow from Operating Activities | 141,727,050.00 | 102,781,099.64 | 37.89% | Due to factors such as optimized inventory management during the reporting period | | Net Cash Flow from Investing Activities | 131,631,949.10 | -149,132,870.11 | 188.26% | Due to the impact of cash recovery from matured wealth management products during the reporting period | | Net Cash Flow from Financing Activities | -101,919,355.03 | -34,756,071.22 | -193.24% | Due to an increase in acceptance bill deposits during the reporting period | Product or Service Accounting for Over 10% of Revenue (Unit: RMB) | Product Name | Operating Revenue | Operating Cost | Gross Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Operating Cost (%) | YoY Change in Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Vitamin and Mineral Supplement Series | 426,157,434.84 | 192,712,792.79 | 54.78% | 9.84% | 29.66% | -6.91% | [IV. Non-Main Business Analysis](index=17&type=section&id=IV.%20Non-Main%20Business%20Analysis) This section analyzes the financial performance of the company's non-main businesses, primarily including investment income, fair value change gains/losses, asset impairment, non-operating income, and expenses. Wealth management product income is sustainable, while asset impairment and non-operating income/expenses are influenced by operational conditions and uncertain factors Non-Main Business Analysis (Unit: RMB) | Item | Amount | % of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 7,457,673.00 | 7.77% | Due to wealth management income obtained during the reporting period | Sustainable | | Fair Value Change Gains/Losses | -252,364.90 | -0.26% | Due to fair value changes of wealth management products and structured deposits during the reporting period | Sustainable | | Asset Impairment | -2,159,067.56 | -2.25% | Due to inventory impairment provisions made during the reporting period | Regular item, amount varies with operating conditions | | Non-operating Income | 171,765.04 | 0.18% | Due to disposal of shelves and scrapped equipment during the reporting period | Uncertain, not sustainable | | Non-operating Expenses | 31,893.55 | 0.03% | Due to donations during the reporting period | Uncertain, not sustainable | [V. Asset and Liability Status Analysis](index=17&type=section&id=V.%20Asset%20and%20Liability%20Status%20Analysis) This section analyzes significant changes in the company's asset and liability structure. Monetary funds and construction in progress significantly increased due to operating profits and the advancement of fundraising projects, while inventory decreased due to optimized management. Concurrently, right-of-use assets and lease liabilities increased due to subsidiary business expansion. The fair value of financial assets at period-end slightly decreased, and some monetary funds were restricted Significant Changes in Asset Composition (Unit: RMB) | Item | Amount at End of Current Period | % of Total Assets | Amount at End of Prior Year | % of Total Assets | % Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 439,200,826.25 | 22.27% | 338,733,013.65 | 19.42% | 2.85% | Increase in cash inflow from profitable operating activities during the reporting period | | Inventory | 67,789,768.82 | 3.44% | 105,553,492.88 | 6.05% | -2.61% | Due to optimized inventory management during the reporting period | | Construction in Progress | 187,800,734.02 | 9.52% | 91,319,350.17 | 5.23% | 4.29% | Increase in construction in progress for fundraising projects during the reporting period | | Right-of-Use Assets | 1,838,801.05 | 0.09% | 766,016.88 | 0.04% | 0.05% | Increase in right-of-use assets by subsidiaries during the reporting period | | Contract Liabilities | 19,744,871.71 | 1.00% | 31,481,639.41 | 1.80% | -0.80% | Normal recognition of contract liabilities with sales revenue during the reporting period | | Lease Liabilities | 780,319.65 | 0.04% | 0.00 | 0.00% | 0.04% | Increase in right-of-use assets by subsidiaries, simultaneously increasing lease liabilities during the reporting period | Assets and Liabilities Measured at Fair Value (Unit: RMB) | Item | Beginning Balance | Fair Value Change Gains/Losses for Current Period | Amount Purchased for Current Period | Amount Sold for Current Period | Ending Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 496,195,455.42 | -252,364.90 | 1,795,100,000.00 | 1,798,800,000.00 | 492,243,090.52 | - As of the end of the reporting period, the company's restricted assets primarily consisted of monetary funds, totaling RMB 50.82 million, which were bank acceptance bill deposits[73](index=73&type=chunk) [VI. Investment Status Analysis](index=19&type=section&id=VI.%20Investment%20Status%20Analysis) This section provides a detailed analysis of the company's investment activities, including changes in financial assets measured at fair value (primarily wealth management products), and the overall use and progress of fundraising projects. The company actively utilizes idle raised funds for cash management to ensure capital efficiency, and fundraising project construction is proceeding smoothly as planned Financial Assets Measured at Fair Value (Unit: RMB) | Asset Category | Initial Investment Cost | Fair Value Change Gains/Losses for Current Period | Amount Purchased During Reporting Period | Amount Sold During Reporting Period | Cumulative Investment Income | Ending Balance | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Other (Own Funds) | 115,686,196.47 | 4,809.10 | 1,037,300,000.00 | 1,007,000,000.00 | 1,951,704.34 | 145,991,005.57 | Own Funds | | Other (Raised Funds) | 380,509,258.95 | -257,174.00 | 757,800,000.00 | 791,800,000.00 | 5,505,968.66 | 346,252,084.95 | Raised Funds | | **Total** | **496,195,455.42** | **-252,364.90** | **1,795,100,000.00** | **1,798,800,000.00** | **7,457,673.00** | **492,243,090.52** | -- | Overall Use of Raised Funds (Unit: RMB 10,000) | Indicator | Amount | | :--- | :--- | | Total Raised Funds | 89,138.6 | | Net Raised Funds | 79,329.73 | | Total Raised Funds Used in Current Period | 7,606.53 | | Total Raised Funds Used Cumulatively | 16,257.56 | | Total Unused Raised Funds | 65,847.64 | | Of which: Unused Raised Funds Deposited in Company's Special Account | 23,247.64 | | Of which: Balance of Idle Raised Funds (including over-raised funds) for Cash Management | 42,600.00 | Status of Raised Fund Commitment Projects (Unit: RMB 10,000) | Project Name | Committed Investment Amount (1) | Amount Invested in Current Period | Cumulative Investment Amount as of Period-End (2) | Investment Progress as of Period-End (2)/(1) | Estimated Date of Usability | | :--- | :--- | :--- | :--- | :--- | :--- | | Health Food Intelligent Production Line Technical Transformation Project | 32,926.4 | 5,966.75 | 11,620.02 | 35.29% | September 30, 2026 | | Vitamin and Mineral OTC Product Intelligent Production Line Technical Transformation Project | 9,369.9 | 948.87 | 3,003.59 | 32.06% | September 30, 2026 | | Minsheng Health R&D Center Technical Transformation Project | 4,161.43 | 690.91 | 1,633.95 | 39.26% | September 30, 2026 | | **Subtotal of Committed Investment Projects** | **46,457.73** | **7,606.53** | **16,257.56** | -- | -- | - The company has been approved to use temporarily idle raised funds (including over-raised funds) of up to RMB 710 million for cash management, valid for 12 months from the date of approval by the shareholders' meeting[82](index=82&type=chunk) [VII. Major Asset and Equity Sales](index=24&type=section&id=VII.%20Major%20Asset%20and%20Equity%20Sales) This section confirms that the company did not undertake any major asset or equity sales during the reporting period - The company did not sell major assets during the reporting period[89](index=89&type=chunk) - The company did not sell major equity during the reporting period[90](index=90&type=chunk) [VIII. Analysis of Major Holding and Participating Companies](index=24&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) This section states that the company has no important holding or participating company information requiring disclosure during the reporting period - The company had no important holding or participating company information that should be disclosed during the reporting period[90](index=90&type=chunk) [IX. Structured Entities Controlled by the Company](index=24&type=section&id=IX.%20Structured%20Entities%20Controlled%20by%20the%20Company) This section confirms that 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[91](index=91&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=24&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces risks including product concentration, distributor management, industry policy changes, uncertainties in new products/businesses/models/projects, and the possibility that fundraising investment projects may not achieve expected benefits. To address these risks, the company has adopted measures such as diversifying its product portfolio, strengthening distributor management, closely monitoring policies, prudently expanding new businesses, and actively advancing fundraising projects - The company's core product, multivitamin tablets (21), accounts for a high proportion of sales revenue (68.89% in 2024), posing a risk of product concentration; the company is addressing this through enriching its product matrix, deepening channel systems, and optimizing R&D innovation[91](index=91&type=chunk)[92](index=92&type=chunk) - The company's sales model is primarily distribution (distribution revenue accounted for 87.81% in 2024), posing a distributor management risk; the company mitigates this by strictly controlling entry thresholds and conducting regular visits and supervision[93](index=93&type=chunk) - The pharmaceutical and health food industries are highly regulated, with continuous policy adjustments and stricter supervision; the company will closely monitor policy changes and operate in compliance with laws and regulations[94](index=94&type=chunk) - The company's "Four New" strategy (new products, new businesses, new models, new projects) involves uncertainties in business and profit models; the company will adhere to a prudent expansion strategy, strengthening market research and risk management[95](index=95&type=chunk)[96](index=96&type=chunk) - Fundraising investment projects may experience extended investment cycles, delayed production, or lower-than-expected benefits due to macroeconomic, technological, market, and other factors; the company will promptly grasp industry dynamics and actively promote project implementation[98](index=98&type=chunk) [XI. Registration Form for Research, Communication, Interview Activities During the Reporting Period](index=26&type=section&id=XI.%20Registration%20Form%20for%20Research%2C%20Communication%2C%20Interview%20Activities%20During%20the%20Reporting%20Period) This section details the company's investor relations activities during the reporting period, including the time, location, method, type of participants, discussion content, and materials provided, demonstrating the company's efforts to actively maintain investor relations - During the reporting period, the company received institutional investors and unspecified investors through various methods, including telephone communication, online/telephone conferences, Panorama Network's "Investor Relations Interactive Platform", and on-site visits at the company's meeting rooms[99](index=99&type=chunk)[101](index=101&type=chunk) - The main discussion topics included the company's fundamentals, development strategy, and 2024 performance, with no substantive materials provided[99](index=99&type=chunk)[101](index=101&type=chunk) [XII. Implementation of Market Value Management System and Valuation Enhancement Plan](index=27&type=section&id=XII.%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) This section clarifies that the company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company has not formulated a market value management system[102](index=102&type=chunk) - The company has not disclosed a valuation enhancement plan[103](index=103&type=chunk) [XIII. Implementation of "Quality and Return Double Improvement" Action Plan](index=27&type=section&id=XIII.%20Implementation%20of%20%22Quality%20and%20Return%20Double%20Improvement%22%20Action%20Plan) This section states that the company did not disclose an announcement regarding the "Quality and Return Double Improvement" action plan during the reporting period - The company did not disclose an announcement regarding the "Quality and Return Double Improvement" action plan[104](index=104&type=chunk)[105](index=105&type=chunk) Part IV Corporate Governance, Environment, and Society This section details changes in governance, profit distribution plans, incentive schemes, environmental disclosures, and the company's commitment to social responsibility [I. Changes in Directors, Supervisors, and Senior Management](index=28&type=section&id=I.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) This section discloses changes in the company's supervisory board members during the reporting period, with Liu Yang, Zhang Zhouxiong, and Bao Zisheng resigning due to supervisory board reform - During the reporting period, Liu Yang (Chairman of the Supervisory Board), Zhang Zhouxiong (Supervisor), and Bao Zisheng (Employee Representative Supervisor) resigned due to supervisory board reform[107](index=107&type=chunk) [II. Profit Distribution and Capital Reserve to Share Capital Conversion for the Current Reporting Period](index=28&type=section&id=II.%20Profit%20Distribution%20and%20Capital%20Reserve%20to%20Share%20Capital%20Conversion%20for%20the%20Current%20Reporting%20Period) This section clarifies that the company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[108](index=108&type=chunk) [III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=28&type=section&id=III.%20Implementation%20of%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) This section states that the company's 2024 restricted stock incentive plan had no progress or changes during the reporting period, and no employee stock ownership plans or other employee incentive measures were implemented - The company's 2024 restricted stock incentive plan had no progress or changes during the reporting period[109](index=109&type=chunk) - The company had no implementation of employee stock ownership plans during the reporting period[110](index=110&type=chunk) - The company had no other employee incentive measures during the reporting period[110](index=110&type=chunk) [IV. Environmental Information Disclosure](index=29&type=section&id=IV.%20Environmental%20Information%20Disclosure) This section confirms that the company and its major subsidiaries are included in the list of enterprises required to disclose environmental information by law, and provides an index for querying reports, demonstrating the company's compliance in environmental information transparency - The company and its major subsidiaries are included in the list of enterprises required to disclose environmental information by law, with 1 enterprise (Minsheng Health)[111](index=111&type=chunk) - The environmental information disclosure report can be queried on the Zhejiang Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System[111](index=111&type=chunk) [V. Social Responsibility](index=29&type=section&id=V.%20Social%20Responsibility) This section emphasizes the company's commitment to its business philosophy of "developing the enterprise, achieving win-win cooperation, contributing to society, and benefiting employees," actively fulfilling social responsibilities through charitable donations, employee care activities, and industry-academia collaborations to create greater value for society - The company consistently adheres to the business philosophy of "developing the enterprise, achieving win-win cooperation, contributing to society, and benefiting employees," operating with dedication and practicing philanthropy[112](index=112&type=chunk) - During the reporting period, the company donated "health care packages" to disadvantaged children aged 8-14 and disadvantaged elderly aged 65 and above through the Zhejiang Health Products and Cosmetics Industry Association[112](index=112&type=chunk) - The company organized the fifth "Healthy Family" Children's Day event and "Minsheng 21 Health Day" event to enhance employee belonging[112](index=112&type=chunk) - The company strengthened industry-academia cooperation, conducting mutual visits and exchanges with Hangzhou Business School of Zhejiang Gongshang University to explore future in-depth collaboration points[112](index=112&type=chunk) Part V Significant Matters This section covers critical corporate events, including commitments, related party transactions, litigation, and significant developments concerning subsidiaries, while confirming the absence of non-operating fund occupation or irregular guarantees [I. Commitments Fulfilled During the Reporting Period and Overdue Unfulfilled Commitments as of the End of the Reporting Period by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and Other Committed Parties](index=30&type=section&id=I.%20Commitments%20Fulfilled%20During%20the%20Reporting%20Period%20and%20Overdue%20Unfulfilled%20Commitments%20as%20of%20the%20End%20of%20the%20Reporting%20Period%20by%20the%20Company%27s%20Actual%20Controller%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20Other%20Committed%20Parties) This section states that during the reporting period, there were no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself that were either fulfilled or overdue and unfulfilled as of the end of the reporting period - During the reporting period, there were no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself that were either fulfilled or overdue and unfulfilled as of the end of the reporting period[114](index=114&type=chunk) [II. Non-operating Fund Occupation by Controlling Shareholder and Other Related Parties of the Listed Company](index=30&type=section&id=II.%20Non-operating%20Fund%20Occupation%20by%20Controlling%20Shareholder%20and%20Other%20Related%20Parties%20of%20the%20Listed%20Company) This section confirms that there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company during the reporting period - During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company[115](index=115&type=chunk) [III. Irregular External Guarantees](index=30&type=section&id=III.%20Irregular%20External%20Guarantees) This section states that the company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[116](index=116&type=chunk) [IV. Appointment and Dismissal of Accounting Firm](index=30&type=section&id=IV.%20Appointment%20and%20Dismissal%20of%20Accounting%20Firm) This section clarifies that the company's semi-annual financial report was not audited - The company's semi-annual report was not audited[117](index=117&type=chunk) [V. Explanations by the Board of Directors, Supervisory Board, and Audit Committee on the Accounting Firm's "Non-Standard Audit Report" for the Current Reporting Period](index=30&type=section&id=V.%20Explanations%20by%20the%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20and%20Audit%20Committee%20on%20the%20Accounting%20Firm%27s%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Current%20Reporting%20Period) This section states that there was no non-standard audit report for the company in the current reporting period, thus no explanation from the Board of Directors, Supervisory Board, or Audit Committee is required - Not applicable[118](index=118&type=chunk) [VI. Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year](index=30&type=section&id=VI.%20Explanation%20by%20the%20Board%20of%20Directors%20on%20the%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Previous%20Year) This section states that there was no non-standard audit report for the company in the previous year, thus no explanation from the Board of Directors is required - Not applicable[118](index=118&type=chunk) [VII. Bankruptcy Reorganization Related Matters](index=30&type=section&id=VII.%20Bankruptcy%20Reorganization%20Related%20Matters) This section confirms that the company did not experience any bankruptcy reorganization related matters during the reporting period - The company did not experience any bankruptcy reorganization related matters during the reporting period[119](index=119&type=chunk) [VIII. Litigation Matters](index=31&type=section&id=VIII.%20Litigation%20Matters) This section states that the company had no significant litigation or arbitration matters, or other litigation matters, during the reporting period - The company had no significant litigation or arbitration matters during the reporting period[120](index=120&type=chunk) - The company had no other litigation matters during the reporting period[121](index=121&type=chunk) [IX. Penalties and Rectification Status](index=31&type=section&id=IX.%20Penalties%20and%20Rectification%20Status) This section confirms that the company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[121](index=121&type=chunk) [X. Integrity Status of the Company and its Controlling Shareholder, Actual Controller](index=31&type=section&id=X.%20Integrity%20Status%20of%20the%20Company%20and%20its%20Controlling%20Shareholder%2C%20Actual%20Controller) This section states that the integrity status of the company, its controlling shareholder, and actual controller was good during the reporting period - During the reporting period, the integrity status of the company, its controlling shareholder, and actual controller was good[122](index=122&type=chunk) [XI. Major Related Party Transactions](index=31&type=section&id=XI.%20Major%20Related%20Party%20Transactions) This section confirms that the company had no significant related party transactions related to daily operations, asset or equity acquisitions/disposals, or joint external investments during the reporting period. Furthermore, there were no non-operating related party creditor-debtor relationships or financial business dealings with affiliated financial companies - The company had no significant related party transactions related to daily operations during the reporting period[123](index=123&type=chunk) - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[124](index=124&type=chunk) - The company had no related party transactions involving joint external investments during the reporting period[126](index=126&type=chunk) - The company had no non-operating related party creditor-debtor relationships during the reporting period[127](index=127&type=chunk) - The company had no deposits, loans, credit lines, or other financial business dealings with affiliated financial companies or financial companies controlled by the company and their related parties[128](index=128&type=chunk)[129](index=129&type=chunk) - The company had no other major related party transactions during the reporting period[130](index=130&type=chunk) [XII. Major Contracts and Their Performance](index=32&type=section&id=XII.%20Major%20Contracts%20and%20Their%20Performance) This section discloses the company's leasing activities during the reporting period, including leasing office and production facilities as a lessee, and leasing out some properties as a lessor. The company had no trusteeship, contracting, major guarantees, major daily operating contracts, or other major contracts - The company had no trusteeship situations during the reporting period[131](index=131&type=chunk) - The company had no contracting situations during the reporting period[133](index=133&type=chunk) - The company and its subsidiaries leased properties for office and production use, and leased out some properties during the reporting period[134](index=134&type=chunk)[135](index=135&type=chunk) - The company had no leasing projects that generated profits or losses exceeding 10% of the company's total profit during the reporting period[136](index=136&type=chunk) - The company had no major guarantee situations during the reporting period[137](index=137&type=chunk) - The company had no other major contracts during the reporting period[139](index=139&type=chunk) [XIII. Explanation of Other Significant Matters](index=34&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) This section confirms that the company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[140](index=140&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=34&type=section&id=XIV.%20Significant%20Matters%20of%20Company%20Subsidiaries) This section discloses the company's strategic cooperation agreement with Zhongke Jiayi and other entities, expanding its probiotic business through the acquisition of 100% equity in Minsheng Zhongke (Shandong) to enhance R&D capabilities and market competitiveness. This transaction has completed industrial and commercial changes and is included in the consolidated financial statements - The company signed a "Strategic Cooperation Intent Agreement" with Pan Yulin and Zhongke Jiayi (Shandong) Investment Holding Co, Ltd, for strategic cooperation in the probiotic field[141](index=141&type=chunk) - The company's subsidiary Minsheng Zhongke (Zhejiang) acquired 100% equity in Minsheng Zhongke (Shandong), which has completed industrial and commercial registration changes and was included in the company's consolidated financial statements as of February 2025[142](index=142&type=chunk) - This strategic cooperation is beneficial for expanding the company's business development space in the probiotic field, enhancing R&D capabilities and market competitiveness, and strengthening the company's overall influence[143](index=143&type=chunk) Part VI Share Changes and Shareholder Information This section details changes in the company's share capital, shareholder structure, and the holdings of key personnel, including information on share buybacks and major shareholders [I. Share Changes](index=35&type=section&id=I.%20Share%20Changes) This section details the company's share changes during the reporting period, showing no changes in total share capital, restricted shares, or unrestricted shares. The company has initiated a share repurchase plan for equity incentives, having cumulatively repurchased 1,328,000 shares as of the end of the reporting period Share Changes (Unit: Shares) | Category | Quantity Before Change | Proportion Before Change | Increase/Decrease in This Change | Quantity After Change | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 246,022,472 | 69.00% | 0 | 246,022,472 | 69.00% | | II. Unrestricted Shares | 110,531,858 | 31.00% | 0 | 110,531,858 | 31.00% | | **III. Total Shares** | **356,554,330** | **100.00%** | **0** | **356,554,330** | **100.00%** | - On March 19, 2025, the company approved a resolution to repurchase company shares through centralized bidding for equity incentives, with a repurchase price not exceeding RMB 19.80 per share (adjusted to RMB 19.70 per share after ex-rights/ex-dividend)[148](index=148&type=chunk) - As of June 30, 2025, the company had cumulatively repurchased 1,328,000 shares, accounting for 0.37% of the company's current total share capital, with a total payment of RMB 17.26 million[148](index=148&type=chunk) [II. Securities Issuance and Listing](index=37&type=section&id=II.%20Securities%20Issuance%20and%20Listing) This section states that the company had no securities issuance or listing during the reporting period - Not applicable[151](index=151&type=chunk) [III. Company Shareholder Numbers and Shareholding](index=37&type=section&id=III.%20Company%20Shareholder%20Numbers%20and%20Shareholding) This section discloses that as of the end of the reporting period, the company had 21,514 common shareholders, and details the shareholding of shareholders holding 5% or more or the top 10 shareholders, including their nature, shareholding percentage, number of shares held, and restricted/unrestricted shares. It also explains the related party relationships among major shareholders - As of the end of the reporting period, the total number of common shareholders was 21,514[152](index=152&type=chunk) Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders (Unit: Shares) | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at End of Reporting Period | Number of Restricted Shares Held | Number of Unrestricted Shares Held | | :--- | :--- | :--- | :--- | :--- | :--- | | Hangzhou Minsheng Pharmaceutical Co, Ltd | Domestic Non-State-Owned Legal Person | 66.75% | 238,000,000 | 238,000,000 | 0 | | Hangzhou Jingniu Enterprise Management Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 0.90% | 3,208,989 | 3,208,989 | 0 | | Hangzhou Chaodao Equity Investment Fund Management Co, Ltd - Hangzhou Hemeng Yizhi Equity Investment Partnership (Limited Partnership) | Other | 0.75% | 2,674,157 | 0 | 2,674,157 | | Hangzhou Jingyi Enterprise Management Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 0.75% | 2,674,157 | 2,674,157 | 0 | | Zhejiang Puhua Tianqin Equity Investment Management Co, Ltd - Lanxi Puhua Lingju Venture Capital Partnership (Limited Partnership) | Other | 0.66% | 2,359,703 | 0 | 2,359,703 | | Ruimin Enterprise Management (Ningbo Meishan Bonded Port Area) Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 0.60% | 2,139,326 | 2,139,326 | 0 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.48% | 1,711,461 | 0 | 1,711,461 | | Wang Weihao | Domestic Natural Person | 0.31% | 1,115,600 | 0 | 1,115,600 | | Lou Biao | Domestic Natural Person | 0.31% | 1,114,600 | 0 | 1,114,600 | | Gao Canxuan | Domestic Natural Person | 0.25% | 904,783 | 0 | 904,783 | - Hangzhou Minsheng Pharmaceutical Co, Ltd, Hangzhou Jingniu Enterprise Management Partnership (Limited Partnership), Hangzhou Jingyi Enterprise Management Partnership (Limited Partnership), and Ruimin Enterprise Management (Ningbo Meishan Bonded Port Area) Partnership (Limited Partnership) are all enterprises controlled by the company's actual controllers, Zhu Fujiang and Zhu Yuqi[154](index=154&type=chunk) - Among the top 10 shareholders, there is the company's dedicated securities account for share repurchases (1,328,000 shares, accounting for 0.37% of the company's total share capital), which is not listed among the top 10 shareholders[154](index=154&type=chunk) [IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=39&type=section&id=IV.%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) This section confirms that there were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period, with specific details available in the 2024 annual report - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[156](index=156&type=chunk) [V. Changes in Controlling Shareholder or Actual Controller](index=39&type=section&id=V.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) This section states that there were no changes in the company's controlling shareholder or actual controller during the reporting period - There were no changes in the company's controlling shareholder during the reporting period[157](index=157&type=chunk) - There were no changes in the company's actual controller during the reporting period[158](index=158&type=chunk) Part VII Bond-Related Information This section confirms the absence of any bond-related information for the reporting period [Bond-Related Information](index=41&type=section&id=Bond-Related%20Information) This section states that the company had no bond-related information during the reporting period - Not applicable[161](index=161&type=chunk) Part VIII Financial Report This section presents the unaudited financial statements, including detailed notes on assets, liabilities, equity, income, and expenses, along with disclosures on accounting policies, taxation, and financial risks [I. Audit Report](index=42&type=section&id=I.%20Audit%20Report) This section clarifies that the company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[163](index=163&type=chunk) [II. Financial Statements](index=42&type=section&id=II.%20Financial%20Statements) This section provides the company's consolidated and parent company financial statements for the first half of 2025, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, comprehensively reflecting the company's financial position and operating results at the end of the reporting period - This section includes 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[164](index=164&type=chunk)[168](index=168&type=chunk)[172](index=172&type=chunk)[176](index=176&type=chunk)[178](index=178&type=chunk)[180](index=180&type=chunk)[182](index=182&type=chunk)[192](index=192&type=chunk) [III. Company Basic Information](index=62&type=section&id=III.%20Company%20Basic%20Information) This section introduces the company's establishment background, registration information, share capital structure, listing status, organizational structure, and main business activities, clarifying its positioning as a high-tech enterprise in the pharmaceutical manufacturing industry - Hangzhou Minsheng Health Pharmaceutical Co, Ltd was established on May 20, 2021, and its shares were listed and traded on the Shenzhen Stock Exchange on September 5, 2023[204](index=204&type=chunk) - The company's registered capital and total share capital are both RMB 356,554,330.00[204](index=204&type=chunk) - The company's main business activities include pharmaceutical production, health food production, food production, cosmetics production, pharmaceutical retail and wholesale, and import and export of goods, belonging to the pharmaceutical manufacturing industry[205](index=205&type=chunk) [IV. Basis for Financial Statement Preparation](index=62&type=section&id=IV.%20Basis%20for%20Financial%20Statement%20Preparation) This section states that the company's financial statements are prepared on a going concern basis, strictly adhering to the Enterprise Accounting Standards issued by the Ministry of Finance and the information disclosure regulations of the China Securities Regulatory Commission, and there are no matters that raise significant doubts about its going concern ability - The company prepares its financial statements on a going concern basis, based on actual transactions and events, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and the "Reporting Rules for Information Disclosure by Companies Issuing Securities to the Public No 15 - General Provisions for Financial Reports (Revised in 2023)" issued by the China Securities Regulatory Commission[207](index=207&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[208](index=208&type=chunk) [V. Significant Accounting Policies and Estimates](index=62&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section elaborates on the significant accounting policies and estimates followed by the company in preparing its financial statements, covering key areas such as financial instruments, business combinations, revenue recognition, inventory, fixed assets, intangible assets, deferred income tax, and leases, ensuring the standardization and reliability of financial reporting - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, truly and completely reflecting the company's financial position, operating results, and cash flows, among other relevant information[211](index=211&type=chunk) - The accounting year runs from January 1 to December 31 of the Gregorian calendar, and the actual preparation period for these financial statements is from January 1, 2025, to June 30, 2025[212](index=212&type=chunk)[213](index=213&type=chunk) - The company and its domestic subsidiaries use RMB as their functional currency[215](index=215&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[241](index=241&type=chunk) - The company uses the transfer of control as the criterion for revenue recognition, with main product sales models being distribution, direct sales, and e-commerce online retail[371](index=371&type=chunk)[374](index=374&type=chunk) - Inventory is measured at the lower of cost and net realizable value, with inventory impairment provisions made at the end of the period for individual inventory items or categories[291](index=291&type=chunk) - Fixed assets are depreciated using the straight-line method, with depreciation periods of 20 years for buildings, 4-10 years for machinery and equipment, 5 years for transportation vehicles, and 3-10 years for electronic equipment and others, all with a residual value rate of 5.00%[330](index=330&type=chunk) - Intangible assets with finite useful lives are amortized using the straight-line method; intangible assets with indefinite useful lives are not amortized but are tested for impairment annually[341](index=341&type=chunk) - The company recognizes right-of-use assets and lease liabilities for leases other than short-term leases and leases of low-value assets[394](index=394&type=chunk)[395](index=395&type=chunk) [VI. Taxation](index=101&type=section&id=VI.%20Taxation) This section details the main tax types, tax bases, and applicable tax rates for the company and its subsidiaries, and discloses that the company, as a high-tech enterprise, enjoys a 15% corporate income tax preferential rate and a 100% super deduction for R&D expenses Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Value-added amount generated during sales of goods or provision of taxable services | Calculated at 13% and other tax rates | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7% | | Corporate Income Tax | Taxable income | 15%, 25% | | Property Tax | For value-based assessment, 1.2% of the remaining value after a one-time deduction of 30% from the original value of the property; for rent-based assessment, 12% of rental income | 1.2%, 12% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | - Hangzhou Minsheng Health Pharmaceutical Co, Ltd and Minsheng Zhongke Jiayi (Zhejiang) Bioengineering Co, Ltd, as high-tech enterprises, are subject to a corporate income tax rate of 15% for January-June 2025[417](index=417&type=chunk)[418](index=418&type=chunk) - The company is eligible for a 100% super deduction for actual R&D expenses incurred from January-June 2025 before tax[419](index=419&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=102&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes on various asset, liability, owner's equity, income, cost, and expense items in the consolidated financial statements. Monetary funds increased at period-end, while financial assets held for trading slightly decreased, and notes receivable and inventory decreased. Construction in progress and intangible assets significantly grew due to fundraising projects and business combinations, and goodwill also increased due to subsidiary acquisitions. Both operating revenue and net profit achieved growth, and cash flow structure showed some changes Monetary Funds (Unit: RMB) | Item | Ending Balance | Beginning Balance | | :--- | :--- | :--- | | Bank Deposits | 374,956,415.87 | 320,085,264.02 | | Other Monetary Funds | 64,244,410.38 | 18,647,749.63 | | **Total** | **439,200,826.25** | **338,733,013.65** | - Restricted monetary funds at period-end amounted to RMB 50.82 million, primarily bank acceptance bill deposits[512](index=512&type=chunk) Financial Assets Held for Trading (Unit: RMB) | Item | Ending Balance | Beginning Balance | | :--- | :--- | :--- | | Financial assets measured at fair value through profit or loss | 492,243,090.52 | 496,195,455.42 | | Of which: Bank wealth management products and structured deposits | 492,243,090.52 | 496,195,455.42 | | **Total** | **492,243,090.52** | **496,195,455.42** | Accounts Receivable (Unit: RMB) | Category | Ending Book Value | Beginning Book Value | | :--- | :--- | :--- | | Accounts receivable for which bad debt provisions are accrued by portfolio | 57,850,930.39 | 46,985,494.89 | | **Total** | **57,850,930.39** | **46,985,494.89** | Inventory (Unit: RMB) | Item | Ending Book Value | Beginning Book Value | | :--- | :--- | :--- | | Raw Materials | 30,413,214.33 | 24,584,638.12 | | Work in Progress | 2,892,912.61 | 3,218,655.45 | | Finished Goods | 22,473,546.40 | 60,590,713.68 | | Goods Issued | 3,

[Section I Important Notice, Table of Contents, and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) This section provides assurance on report accuracy, warns of forward-looking statement risks, and confirms no semi-annual profit distribution plans - Company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming individual and joint legal responsibility[5](index=5&type=chunk) - The company plans no cash dividends, bonus shares, or capital increase from capital reserves for the semi-annual period[6](index=6&type=chunk) [Catalog of Reference Documents](index=4&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) This section lists the semi-annual report, financial statements, and all publicly disclosed company documents as reference materials - Reference documents include the 2025 semi-annual report signed by the legal representative, financial statements signed and sealed by the company head, chief accountant, and head of accounting, and original announcements disclosed on the CSRC-designated website during the reporting period[10](index=10&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines key terms used in the report, covering company entities, customers, regulators, and reporting periods - "Company", "this company", "Rexin Technology" refer to Tianjin Rexin Chang Technology Co., Ltd[11](index=11&type=chunk) - "Reporting period" refers to January 1, 2025, to June 30, 2025[11](index=11&type=chunk) [Section II Company Profile and Key Financial Indicators](index=6&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section presents company fundamentals and key financial indicators, noting declines in revenue, net profit, and cash flow - The company's stock abbreviation is "Rexin Technology", stock code "300828", listed on the Shenzhen Stock Exchange[13](index=13&type=chunk) 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (CNY) | Prior Year Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 289,301,689.56 | 292,326,127.14 | -1.03% | | Net Profit Attributable to Shareholders of Listed Company | 20,331,964.85 | 26,589,419.97 | -23.53% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 19,331,085.30 | 25,181,211.64 | -23.23% | | Net Cash Flow from Operating Activities | 30,245,758.14 | 70,131,725.73 | -56.87% | | Basic Earnings Per Share (CNY/share) | 0.12 | 0.16 | -25.00% | | Diluted Earnings Per Share (CNY/share) | 0.12 | 0.16 | -25.00% | | Weighted Average Return on Net Assets | 2.64% | 3.36% | -0.72% | | **End of Current Reporting Period** | **End of Prior Year** | **Change from Prior Year-End** | | | Total Assets | 851,028,163.59 | 853,975,040.05 | -0.35% | | Net Assets Attributable to Shareholders of Listed Company | 771,004,036.87 | 800,084,252.25 | -3.63% | 2025 Semi-Annual Non-Recurring Gains and Losses Items and Amounts | Item | Amount (CNY) | Description | | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets | 35,636.21 | | | Government grants recognized in current profit or loss (excluding those continuously related to the company's business) | 831,498.85 | | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises | 232,175.28 | | | Other non-operating income and expenses apart from the above | 104,394.13 | | | Less: Income tax impact | 202,824.92 | | | Total | 1,000,879.55 | | [Section III Management Discussion and Analysis](index=9&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section details the company's business, industry, strategy, and performance, noting revenue and profit declines due to market factors - The company belongs to the "C33 Metal Products Industry" within "C Manufacturing"[25](index=25&type=chunk) - Main products include electrical automation equipment components and automotive lightweighting and thermal management system components[25](index=25&type=chunk) - In H1 2025, the company achieved operating revenue of **CNY 289.3017 million**, a year-on-year decrease of **1.03%**; net profit attributable to shareholders was **CNY 20.3320 million**, a year-on-year decrease of **23.53%**[70](index=70&type=chunk) - Net profit decline was primarily due to intense market competition leading to lower gross margins, increased upfront costs for new projects, and reduced investment income[71](index=71&type=chunk) [I. Main Businesses Engaged by the Company During the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company focuses on R&D, production, and sales of precision aluminum alloy components for industrial automation, automotive, and clean energy sectors [(I) Industry Classification](index=9&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E8%A1%8C%E4%B8%9A%E6%89%80%E5%B1%9E%E5%88%86%E7%B1%BB) The company is classified under 'C33 Metal Products Industry', producing electrical automation and automotive components - The company belongs to the "C33 Metal Products Industry" within "C Manufacturing"[25](index=25&type=chunk) - Main products are electrical automation equipment components and automotive lightweighting and thermal management system components, applied in industrial automation, automotive lightweighting and new energy vehicles, and clean energy fields[25](index=25&type=chunk) [(II) Industry Overview](index=9&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E8%A1%8C%E4%B8%9A%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Industrial automation, new energy vehicles, and clean energy sectors show strong growth driven by policy and market demand - China's industrial automation industry market size is projected to exceed **CNY 322.5 billion** by 2025, with a compound annual growth rate of **12%**[26](index=26&type=chunk) - From January to June 2025, China's new energy vehicle production and sales increased by **41.4%** and **40.3%** year-on-year, respectively, with new vehicle sales accounting for **44.3%**[29](index=29&type=chunk) - As of the end of June 2025, national solar power installed capacity increased by **54.2%** year-on-year, and wind power installed capacity increased by **22.7%** year-on-year[33](index=33&type=chunk) [(III) Company's Main Businesses During the Reporting Period](index=11&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company, a high-tech enterprise, provides precision aluminum alloy component solutions for automation, automotive, and clean energy - The company is a leading domestic high-tech enterprise specializing in the R&D, production, and sales of industrial precision aluminum alloy components[35](index=35&type=chunk) - It provides heat exchange system solutions and precision aluminum alloy components in industrial automation, metal components like body structural parts, crash beams, and battery enclosures in automotive lightweighting and new energy vehicles, and heat dissipation and high-quality precision metal component solutions in clean energy[35](index=35&type=chunk) [(IV) Company's Main Products](index=11&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BA%A7%E5%93%81) Main products include electrical automation components and automotive lightweighting/thermal management parts for high-end industrial use - Power electronic heat sink products cover various types such as integral extrusion, press-fit, insert-press, skived fin, folded fin, copper-aluminum composite, heat pipe, and liquid cooling, meeting heat dissipation demands in low-to-high voltage switchgear, industrial energy-saving inverters, rail transit, communication, automation equipment, medical equipment, photovoltaic energy storage, wind power generation, and automotive power management[38](index=38&type=chunk) - Automotive lightweighting and thermal management system components include automotive body and sunroof structural parts, crash beams, new energy module protection end plates, battery enclosures and accessories, motor housings, and automotive power manager heat sinks, applied in traditional fuel vehicles and new energy vehicles[44](index=44&type=chunk) [(V) Company's Main Business Model](index=14&type=section&id=%EF%BC%88%E4%BA%94%EF%BC%89%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company uses a customized 'build-to-order' model with direct sales, 'aluminum price + processing fee' pricing, and full-process production capabilities - The company's products are customized, adopting a "build-to-order"配套 operating model guided by customer rolling demand forecasts[47](index=47&type=chunk) - The sales model is direct sales, with pricing based on "base aluminum price + processing fee", where processing fees are the company's main source of operating profit[49](index=49&type=chunk) - The production model is "production-driven by sales", possessing full-process production capabilities from mold R&D to precision deep processing[52](index=52&type=chunk) [(VI) Market Positioning](index=15&type=section&id=%EF%BC%88%E5%85%AD%EF%BC%89%E5%B8%82%E5%9C%BA%E5%AE%9A%E4%BD%8D) The company targets global high-end industrial clients, providing precision aluminum solutions for automation, automotive, and clean energy - The company consistently focuses on serving leading global high-end industrial clients, providing functional and structural precision aluminum alloy components and business solutions[53](index=53&type=chunk) - In the electrical automation sector, major clients include ABB, Schneider, Siemens, and Vestas, with increased market development efforts in wind power, photovoltaic, energy storage, and new energy vehicle applications[54](index=54&type=chunk) - In the automotive lightweighting and thermal management system sector, products are applied in traditional fuel vehicles and new energy vehicles from brands such as Toyota, Honda, Geely, Volvo, Audi, BMW, and BYD[55](index=55&type=chunk) [(VII) Key Performance Drivers](index=16&type=section&id=%EF%BC%88%E4%B8%83%EF%BC%89%E4%B8%BB%E8%A6%81%E4%B8%9A%E7%BB%A9%E9%A9%B1%E5%8A%A8%E5%9B%A0%E7%B4%A0) Performance is driven by strong customer relationships, continuous R&D innovation, and efficient refined management practices - High-quality customer resources provide strong assurance for the company's stable performance, as it maintains long-term deep cooperation with well-known enterprises in the industry[57](index=57&type=chunk) - R&D innovation is the core driver of the company's performance growth, enhancing R&D capabilities through the introduction of high-level talent and industry-academia-research cooperation[58](index=58&type=chunk) - Refined management contributes to quality improvement and efficiency, enhancing efficiency through process improvements, cost control, and modern management tools[58](index=58&type=chunk) [II. Analysis of Core Competitiveness](index=17&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) Core competitiveness stems from one-stop service, full-process manufacturing, premium client base, R&D, experienced team, quality systems, and production capacity - The company provides customized, specialized, and comprehensive one-stop services, integrating customer needs throughout the entire process from material R&D and mold design to precision deep processing[61](index=61&type=chunk) - The company possesses full-process manufacturing capabilities from profile extrusion to precision deep processing of finished products, and has independently built multiple flexible production lines[62](index=62&type=chunk) - The company has accumulated a wealth of high-quality, high-end customer resources, including ABB, Schneider, Siemens, Vestas, Toyota, Honda, and BYD[54](index=54&type=chunk)[55](index=55&type=chunk)[63](index=63&type=chunk) - The company is a national high-tech enterprise, having obtained **90 patents** as of the end of the reporting period, including **19 invention patents**[64](index=64&type=chunk)[66](index=66&type=chunk) - The company has **1 technical expert** enjoying special government allowances from the State Council, and its R&D team has many years of experience in aluminum processing technology development and product design[67](index=67&type=chunk) - The company has obtained ISO9001, TS16949, ISO14001, ISO45001, and other quality management system certifications, and has introduced advanced testing equipment to ensure product quality[68](index=68&type=chunk) - The company has an annual production capacity of **45,000 tons** of various industrial aluminum profiles, equipped with numerous extrusion production lines and over **400 CNC machining centers**[69](index=69&type=chunk) [III. Analysis of Main Business](index=18&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Main business revenue and net profit declined due to market competition, lower margins, and increased costs, despite ongoing R&D efforts - In H1 2025, the company achieved operating revenue of **CNY 289.3017 million**, a year-on-year decrease of **1.03%**; net profit attributable to shareholders was **CNY 20.3320 million**, a year-on-year decrease of **23.53%**[70](index=70&type=chunk) - Net profit decline was primarily due to intense market competition leading to lower gross margins, increased upfront costs for new projects, and reduced investment income[71](index=71&type=chunk) - The company actively researches and upgrades new aluminum alloy heat sink profiles and product preparation processes, deepening research into medical device structural parts and automation structural parts[72](index=72&type=chunk) - The company strengthens technology R&D and customer development for new energy vehicle motor housings, crash beams, battery enclosures, and power management system heat sinks, with multiple projects progressing steadily[73](index=73&type=chunk) Major Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (CNY) | Prior Year Period (CNY) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 289,301,689.56 | 292,326,127.14 | -1.03% | | | Operating Cost | 239,088,725.14 | 236,332,608.21 | 1.17% | | | Selling Expenses | 2,745,620.23 | 2,456,160.96 | 11.79% | | | Administrative Expenses | 13,928,437.34 | 13,618,141.22 | 2.28% | | | Financial Expenses | -198,825.75 | -786,310.22 | 74.71% | Higher USD exchange gains in prior year period | | Income Tax Expense | 2,186,337.17 | 2,818,144.22 | -22.42% | | | R&D Investment | 12,203,872.91 | 13,790,820.88 | -11.51% | | | Net Cash Flow from Operating Activities | 30,245,758.14 | 70,131,725.73 | -56.87% | Increase in acceptance bills received this period | | Net Cash Flow from Investing Activities | 38,469,396.10 | 13,008,858.97 | 195.72% | Decrease in payments for engineering and equipment | | Net Cash Flow from Financing Activities | -20,770,569.13 | -34,162,393.68 | 39.20% | Increase in bank loans obtained, share repurchase in prior year period | | Investment Income | 232,175.28 | 991,279.91 | -76.58% | Decrease in bank wealth management income | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Power Electronic Heat Sinks | 118,932,449.50 | 92,404,123.99 | 22.31% | 0.76% | 4.12% | -2.50% | | Automotive Lightweighting and Thermal Management System Components | 85,940,271.31 | 78,479,088.48 | 8.68% | 19.83% | 29.47% | -6.80% | | Precision Components for Automation Equipment and Medical Devices | 38,143,636.10 | 28,511,357.00 | 25.25% | -2.53% | -4.30% | 1.38% | [IV. Analysis of Non-Core Business](index=20&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) The company had no non-core businesses during the reporting period - The company had no non-core businesses during the reporting period[79](index=79&type=chunk) [V. Analysis of Assets and Liabilities](index=20&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Total assets and net assets slightly decreased; monetary funds rose, trading financial assets fell, and borrowings increased due to new loans and leases Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (CNY) | % of Total Assets | Amount at End of Prior Year (CNY) | % of Total Assets | % Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 90,364,873.81 | 10.62% | 42,214,947.91 | 4.94% | 5.68% | Increase in USD time deposits this period | | Trading Financial Assets | 18,820,000.00 | 2.21% | 65,820,000.00 | 7.71% | -5.50% | Redemption of bank wealth management products for dividend distribution this period | | Right-of-Use Assets | 1,914,553.08 | 0.22% | | | 0.22% | Rexin Thailand leased production plant this period | | Short-Term Borrowings | 30,200,771.01 | 3.55% | | | 3.55% | New bank loans obtained this period | | Net Assets Attributable to Shareholders of Listed Company | 771,004,036.87 | | 800,084,252.25 | | -3.63% | Completed Q3 2024 dividend distribution | | Total Assets | 851,028,163.59 | | 853,975,040.05 | | -0.35% | | Major Overseas Asset Information | Specific Asset Content | Asset Size (CNY) | Location | Operating Model | Earnings Status (CNY) | Proportion of Overseas Assets to Company's Net Assets | | :--- | :--- | :--- | :--- | :--- | :--- | | Rexin Thailand | 6,478,490.52 | Thailand | Independent Operation | -882,793.60 | 0.84% | | Rexin Hong Kong | 45,561.97 | Hong Kong | Independent Operation | -11,247.15 | 0.01% | - The company pledged real estate and land use rights as collateral for a maximum debt amount of **CNY 80 million**[85](index=85&type=chunk) [VI. Analysis of Investment Status](index=22&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Total investment decreased by 71.80%; a new energy vehicle project is 66.24% complete, and aluminum futures hedging resulted in a CNY 102,500 loss Investment Amount During the Reporting Period | Indicator | Amount (CNY) | | :--- | :--- | | Investment Amount in Current Reporting Period | 12,864,682.31 | | Investment Amount in Prior Year Period | 45,611,851.15 | | Change Percentage | -71.80% | - The new energy vehicle lightweight components R&D and production base project had a cumulative actual investment of **CNY 157,081,635.53**, with project progress at **66.24%**[90](index=90&type=chunk) - The outstanding balance of entrusted wealth management was **CNY 18.82 million**, and reduced bank wealth management income led to a **76.58%** year-on-year decrease in investment income this period[76](index=76&type=chunk)[96](index=96&type=chunk) - The company engaged in aluminum futures hedging, with an actual gain of **CNY 102,500** from derivatives during the reporting period, achieving its expected risk management objectives[98](index=98&type=chunk) [VII. Major Asset and Equity Disposals](index=24&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company did not undertake any major asset or equity disposals during the reporting period - The company did not dispose of any major assets during the reporting period[101](index=101&type=chunk) - The company had no major equity disposals during the reporting period[103](index=103&type=chunk) [VIII. Analysis of Major Holding and Participating Companies](index=25&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Rexin Chang Technology (Changshu) Co., Ltd. saw revenue growth but declining profit due to automotive industry competition Financial Performance of Major Subsidiary Rexin Chang Technology (Changshu) Co., Ltd. | Company Name | Registered Capital (CNY) | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Rexin Chang Technology (Changshu) Co., Ltd. | 158,000,000.00 | 291,723,256.38 | 197,264,063.42 | 99,132,904.07 | -4,872,763.87 | -3,478,240.93 | - Rexin Chang Technology (Changshu) Co., Ltd.'s operating revenue increased by **1.90%** year-on-year, but operating profit and net profit decreased by **18.80%** and **14.34%** respectively, mainly due to intense competition in the automotive industry leading to lower product gross margins[105](index=105&type=chunk) [IX. Structured Entities Controlled by the Company](index=25&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company had no controlled structured entities during the reporting period - The company had no controlled structured entities[106](index=106&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=25&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company addresses customer concentration, aluminum price, processing fee, and tariff risks through R&D, market expansion, and operational adjustments - **Customer concentration risk**: Sales to the top five customers account for a high proportion; the company addresses this by enhancing R&D capabilities and expanding into new customers and areas[107](index=107&type=chunk) - **Aluminum price volatility risk**: Aluminum rod costs constitute a high proportion; the company mitigates this by signing aluminum price adjustment mechanisms with suppliers and customers[108](index=108&type=chunk) - **Processing fee fluctuation risk**: Processing fees are the main source of profit; the company enhances profitability by strengthening deep processing technology and developing high-value-added products[109](index=109&type=chunk) - **Tariff risk**: Export business accounts for a high proportion; the company addresses this by establishing a production base in Thailand to directly undertake foreign orders and strengthening technological innovation[109](index=109&type=chunk) [XI. Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period](index=26&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E7%99%BB%E8%AE%B0%E8%A1%A8) On May 8, 2025, the company held an online investor exchange to discuss 2024 performance and future outlook - On May 8, 2025, the company conducted an online exchange via the Panorama Network "Investor Relations Interactive Platform", discussing its 2024 operating performance and future development outlook[110](index=110&type=chunk) [XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=26&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company did not formulate a market value management system or disclose a valuation enhancement plan - The company did not formulate a market value management system during the reporting period[111](index=111&type=chunk) - The company did not disclose a valuation enhancement plan during the reporting period[111](index=111&type=chunk) [XIII. Implementation of the 'Quality and Return Dual Enhancement' Action Plan](index=27&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E2%80%9C%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%E2%80%9D%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company did not disclose the 'Quality and Return Dual Enhancement' action plan during the reporting period - The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan during the reporting period[112](index=112&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=28&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) This section covers corporate governance, environmental, and social responsibility, noting stable management, no profit distribution, and ongoing equity incentives - The company's directors, supervisors, and senior management had no changes during the reporting period[114](index=114&type=chunk) - The company plans no cash dividends, bonus shares, or capital increase from capital reserves for the semi-annual period[115](index=115&type=chunk) [I. Changes in Directors, Supervisors, and Senior Management](index=28&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) No changes occurred in the company's directors, supervisors, or senior management during the reporting period - The company's directors, supervisors, and senior management had no changes during the reporting period[114](index=114&type=chunk) [II. Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period](index=28&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company plans no cash dividends, bonus shares, or capital increase from capital reserves for the semi-annual period - The company plans no cash dividends, bonus shares, or capital increase from capital reserves for the semi-annual period[115](index=115&type=chunk) [III. Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=28&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company completed its 2022 Restricted Stock Incentive Plan by repurchasing and canceling 144,000 shares, with no other employee incentive plans - On May 30, 2025, the company completed the repurchase and cancellation of **144,000 restricted shares**, involving **5 incentive recipients**, marking the completion of the 2022 Restricted Stock Incentive Plan[129](index=129&type=chunk) - The company had no employee stock ownership plans during the reporting period[130](index=130&type=chunk) - The company had no other employee incentive measures during the reporting period[131](index=131&type=chunk) [IV. Environmental Information Disclosure](index=32&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The company and its major subsidiaries are not legally required to disclose environmental information - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[131](index=131&type=chunk) [V. Social Responsibility](index=32&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company actively fulfills social responsibilities, safeguarding stakeholders, protecting the environment, and ensuring sustainable development - The company strictly complies with laws and regulations, safeguarding shareholders' rights to information, participation, and dividends, implementing a cash dividend policy, and strictly fulfilling information disclosure obligations[131](index=131&type=chunk) - The company values talent, employs legally, signs labor contracts with employees, pays social insurance and housing provident fund, and has established a comprehensive employee management system and career development pathways[132](index=132&type=chunk) - The company provides customized products and services to customers and establishes long-term, trusting cooperative relationships with suppliers to achieve mutual benefit and win-win outcomes[133](index=133&type=chunk)[134](index=134&type=chunk) - The company considers environmental protection a sustainable development strategy, complying with environmental regulations, promoting energy conservation and emission reduction, actively using green electricity, and highly prioritizing safety production[135](index=135&type=chunk) - The company has established a sound corporate governance structure to safeguard investors' legitimate rights and interests[136](index=136&type=chunk) [Section V Significant Matters](index=34&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section covers commitment fulfillment, absence of related-party fund occupation, unaudited financials, minor litigation, completed equity distribution and share repurchase, and a change in control - The company's semi-annual report was unaudited[141](index=141&type=chunk) - The company completed its Q3 2024 equity distribution on January 20, 2025, distributing a cash dividend of **CNY 3** (tax inclusive) per **10 shares** to all shareholders, totaling **CNY 49,535,700.00**[159](index=159&type=chunk) - The company completed its share repurchase plan on February 19, 2025, repurchasing a total of **1,896,550 shares** with a total expenditure of **CNY 20,720,755.00**[160](index=160&type=chunk) - The company's controlling shareholder changed to Huangshan Kaitou Lingdun Venture Capital Co., Ltd., and the actual controller changed to Huangshan Municipal People's Government State-owned Assets Supervision and Administration Commission[164](index=164&type=chunk) [I. Commitments Fulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company, and Commitments Overdue and Unfulfilled as of the End of the Reporting Period](index=34&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) All equity incentive commitments were fulfilled on time by the company and incentive recipients, with no overdue commitments - The company and the incentive recipients of the equity incentive plan fulfilled all equity incentive commitments on time[138](index=138&type=chunk) [II. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties of the Listed Company](index=34&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) No non-operating fund occupation by controlling shareholders or related parties occurred during the reporting period - The company had no non-operating fund occupation by controlling shareholders or other related parties during the reporting period[139](index=139&type=chunk) [III. Irregular External Guarantees](index=34&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[140](index=140&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=34&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%83%85%E5%86%B5) The company's semi-annual financial report was unaudited - The company's semi-annual report was unaudited[141](index=141&type=chunk) [V. Explanation by the Board of Directors, Supervisory Board, and Audit Committee on the Accounting Firm's 'Non-Standard Audit Report' for the Current Reporting Period](index=34&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E3%80%81%E5%AE%A1%E8%AE%A1%E5%A7%94%E5%91%98%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9A%84%E8%AF%B4%E6%98%8E) Not applicable, as the company's semi-annual report was unaudited [VI. Explanation by the Board of Directors on Matters Related to the 'Non-Standard Audit Report' for the Previous Year](index=34&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) Not applicable [VII. Matters Related to Bankruptcy Reorganization](index=35&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company had no bankruptcy reorganization matters during the reporting period - The company had no bankruptcy reorganization matters during the reporting period[143](index=143&type=chunk) [VIII. Litigation Matters](index=35&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) No major lawsuits or arbitrations occurred; minor litigation totaling CNY 3.8576 million is not expected to have a material impact - The company had no major lawsuits or arbitrations during the current reporting period[144](index=144&type=chunk) - Other litigation matters totaled **CNY 3.8576 million** and are not expected to have a significant adverse impact on the company's financial condition and going concern ability[144](index=144&type=chunk) [IX. Penalties and Rectification](index=35&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[145](index=145&type=chunk) [X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=35&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) Not applicable [XI. Significant Related Party Transactions](index=35&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company had no significant related party transactions during the reporting period, including operational, asset, investment, or debt-related - The company had no related party transactions related to daily operations during the reporting period[146](index=146&type=chunk) - The company had no related party transactions involving asset or equity acquisitions/disposals during the reporting period[147](index=147&type=chunk) - The company had no related party transactions involving joint external investments during the reporting period[148](index=148&type=chunk) - The company had no related party receivables or payables during the reporting period[150](index=150&type=chunk) - The company had no other significant related party transactions during the reporting period[153](index=153&type=chunk) [XII. Significant Contracts and Their Performance](index=36&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company had no entrustment, contracting, or major guarantees, but did have staff dormitory and Thailand plant leasing matters - The company had no entrustment situations during the reporting period[154](index=154&type=chunk) - The company had no contracting situations during the reporting period[155](index=155&type=chunk) - The company had leasing matters for staff dormitories and a production plant in Thailand, with the Thailand plant leasing an area of **2,576 square meters**[156](index=156&type=chunk) - The company had no major guarantee situations during the reporting period[157](index=157&type=chunk) - The company had no other significant contracts during the reporting period[158](index=158&type=chunk) [XIII. Explanation of Other Significant Matters](index=37&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company completed Q3 2024 equity distribution and share repurchase, with a significant change in controlling shareholder and actual controller - On January 20, 2025, the company completed its Q3 2024 equity distribution, distributing a cash dividend of **CNY 3** (tax inclusive) per **10 shares** to all shareholders, totaling **CNY 49,535,700.00**[159](index=159&type=chunk) - On February 19, 2025, the company completed its share repurchase plan, repurchasing a total of **1,896,550 shares** with a total expenditure of **CNY 20,720,755.00**[160](index=160&type=chunk) - The company's controlling shareholder changed to Huangshan Kaitou Lingdun Venture Capital Co., Ltd., and the actual controller changed to Huangshan Municipal People's Government State-owned Assets Supervision and Administration Commission[164](index=164&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=38&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) The company's subsidiaries had no significant matters during the reporting period - The company's subsidiaries had no significant matters[165](index=165&type=chunk) [Section VI Share Changes and Shareholder Information](index=39&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details share capital changes, shareholder structure, and executive holdings, noting a decrease in total shares and a change in company control - The company's total share capital decreased by **144,000 shares** from **166,566,000 shares** to **166,422,000 shares**, primarily due to the repurchase and cancellation of restricted shares[167](index=167&type=chunk)[169](index=169&type=chunk) - As of the end of the reporting period, the total number of common shareholders was **13,362**[178](index=178&type=chunk) - Guo Zhanchang holds **33.01%** of shares, remaining the largest shareholder, but has signed a "Voting Rights Waiver Agreement", resulting in a change of company control[178](index=178&type=chunk)[162](index=162&type=chunk) - The company's controlling shareholder changed to Huangshan Kaitou Lingdun Venture Capital Co., Ltd., and the actual controller changed to Huangshan Municipal People's Government State-owned Assets Supervision and Administration Commission[164](index=164&type=chunk) [I. Share Change Status](index=39&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Total share capital decreased by 144,000 shares due to restricted share repurchase and cancellation, affecting both restricted and unrestricted shares Share Change Status | Category | Number of Shares Before Change (shares) | Proportion Before Change | Increase/Decrease in Current Change (shares) | Number of Shares After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 41,821,960 | 25.11% | -138,150 | 41,683,810 | 25.05% | | III. Total Shares | 166,566,000 | 100.00% | -144,000 | 166,422,000 | 100.00% | - Share changes were primarily due to adjustments in executive lock-up share quotas and the repurchase and cancellation of **144,000 restricted shares**[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk) - The repurchase and cancellation were completed on May 30, 2025, changing the total share capital from **166,566,000 shares** to **166,422,000 shares**[169](index=169&type=chunk)[170](index=170&type=chunk) [II. Securities Issuance and Listing](index=42&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) The company had no securities issuance or listing activities during the reporting period [III. Company Shareholder Numbers and Shareholding](index=42&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) The company had 13,362 shareholders; control changed despite Guo Zhanchang remaining largest shareholder due to a voting rights waiver - As of the end of the reporting period, the total number of common shareholders was **13,362**[178](index=178&type=chunk) Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Guo Zhanchang | Domestic Natural Person | 33.01% | 54,939,000 | 41,204,250 | 13,734,750 | | Guo Jia | Domestic Natural Person | 14.99% | 24,945,000 | 0 | 24,945,000 | | Shanghai Guoshi Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 6.30% | 10,486,500 | 0 | 10,486,500 | - Guo Zhanchang, Guo Jia, and Wang Jing signed a "Voting Rights Waiver Agreement", waiving voting rights for all remaining legally held company shares, resulting in a change of company control[179](index=179&type=chunk) - The company's dedicated share repurchase account held **1,447,000 shares**, accounting for **0.87%** of the total share capital[179](index=179&type=chunk) [IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=44&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) Executive shareholdings changed due to lock-up quota adjustments and restricted share repurchases during the reporting period Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Shares Held at Beginning of Period (shares) | Shares Reduced in Current Period (shares) | Number of Restricted Shares Granted and Canceled in Current Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Zhe | Board Secretary, CFO | 192,600 | 47,400 | 27,000 | 118,200 | | Liu Jian | Deputy General Manager | 338,700 | 21,600 | 31,500 | 285,600 | | Wang Fa | Director, Deputy General Manager | 155,513 | 38,878 | 31,500 | 85,135 | | Liu Guocai | Deputy General Manager | 84,600 | 21,100 | 27,000 | 36,500 | | Total | -- | 771,413 | 128,978 | 117,000 | 525,435 | [V. Changes in Controlling Shareholder or Actual Controller](index=44&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) Controlling shareholder and actual controller changed post-reporting period to Huangshan Kaitou Lingdun Venture Capital and Huangshan SASAC - The company's controlling shareholder did not change during the reporting period[182](index=182&type=chunk) - The company's actual controller did not change during the reporting period[182](index=182&type=chunk) - The company disclosed a proposed change in control, which was completed after the reporting period, with the controlling shareholder changing to Huangshan Kaitou Lingdun Venture Capital Co., Ltd., and the actual controller changing to Huangshan Municipal People's Government State-owned Assets Supervision and Administration Commission[164](index=164&type=chunk)[162](index=162&type=chunk) [VI. Preferred Share Information](index=44&type=section&id=%E5%85%AD%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[183](index=183&type=chunk) [Section VII Bond-Related Information](index=45&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no bond-related information during the reporting period [Section VIII Financial Report](index=46&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the unaudited H1 2025 financial statements and notes, showing declines in assets, revenue, and profit, with detailed accounting disclosures - The company's semi-annual financial report was unaudited[187](index=187&type=chunk) - As of the end of the reporting period, consolidated total assets were **CNY 851,028,163.59**, and total equity attributable to parent company owners was **CNY 771,004,036.87**[191](index=191&type=chunk) - During the reporting period, consolidated operating revenue was **CNY 289,301,689.56**, and net profit attributable to parent company shareholders was **CNY 20,331,964.85**[198](index=198&type=chunk)[199](index=199&type=chunk) - During the reporting period, consolidated net cash flow from operating activities was **CNY 30,245,758.14**, a year-on-year decrease of **56.87%**[205](index=205&type=chunk) [I. Audit Report](index=46&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[187](index=187&type=chunk) [II. Financial Statements](index=46&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the H1 2025 consolidated and parent company financial statements, including balance sheets, income, cash flow, and equity changes - The consolidated balance sheet shows total assets of **CNY 851,028,163.59** and total current assets of **CNY 443,544,046.05** at period-end[191](index=191&type=chunk) - The consolidated income statement shows total operating revenue of **CNY 289,301,689.56** and net profit of **CNY 20,331,964.85** for the current period[198](index=198&type=chunk)[199](index=199&type=chunk) - The consolidated cash flow statement shows net cash flow from operating activities of **CNY 30,245,758.14**[205](index=205&type=chunk) - The consolidated statement of changes in owners' equity shows total equity attributable to parent company owners of **CNY 771,004,036.87** at period-end[211](index=211&type=chunk) [III. Company Overview](index=65&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) The company, a metal products manufacturer in Tianjin, includes its parent and four subsidiaries in its consolidated financial statements - The company's registered address and headquarters are at No. 5 Haitai North Road, Huayuan Industrial Zone (Outer Ring), Tianjin New Technology Industrial Park[224](index=224&type=chunk) - The company belongs to the metal products manufacturing industry, with a business scope including electronic heat transfer technology development, electronic heat sink manufacturing, industrial aluminum/copper production, and precision processing[225](index=225&type=chunk) - The Group's consolidated financial statements include the parent company, Rexin Chang Technology (Changshu) Co., Ltd., Tianjin Rexin Chang New Energy Technology Co., Ltd., Rexin Chang (Hong Kong) Co., Ltd., and Rexin Technology (Thailand) Co., Ltd[225](index=225&type=chunk) [IV. Basis of Financial Statement Preparation](index=65&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The Group's financial statements are prepared on a going concern basis, adhering to Enterprise Accounting Standards and CSRC regulations - The Group's financial statements are prepared in accordance with the "Enterprise Accounting Standards" and relevant regulations, as well as the "Information Disclosure and Reporting Rules for Companies Issuing Securities to the Public No. 15 – General Provisions for Financial Reports" (Revised 2023) by the China Securities Regulatory Commission[227](index=227&type=chunk) - The Group prepares its financial statements on a going concern basis[228](index=228&type=chunk) [V. Significant Accounting Policies and Estimates](index=65&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the company's significant accounting policies and estimates, ensuring accurate financial reporting in compliance with standards - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, accurately and completely reflecting the financial position, operating results, and cash flows of the company and the Group[230](index=230&type=chunk) - The Group's accounting period is from January 1 to December 31 of the Gregorian calendar, with CNY as the functional currency[231](index=231&type=chunk)[233](index=233&type=chunk) - The Group's financial assets are classified as measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss[248](index=248&type=chunk) - The Group performs impairment testing on financial assets measured at amortized cost and contract assets based on expected credit losses[258](index=258&type=chunk) - The Group recognizes revenue when customers obtain control of the related goods or services, primarily from sales of goods[320](index=320&type=chunk) [VI. Taxation](index=87&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) This section details the company's tax categories and rates, including preferential rates for high-tech and advanced manufacturing enterprises Major Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable Income | 13%, 6% | | Urban Maintenance and Construction Tax | Amount of Turnover Tax Payable | 7% | | Corporate Income Tax | Taxable Income | 15%, 25%, 8.25%, 20% | | Education Surcharge | Amount of Turnover Tax Payable | 3% | | Local Education Surcharge | Amount of Turnover Tax Payable | 2% | | Land Use Tax | Land Area | CNY 1.5/square meter/year, CNY 1.2/square meter/year | | Property Tax | 70% of Original Value of Property | 1.2% | | Environmental Protection Tax | Pollution Equivalent Value | CNY 10/equivalent value, CNY 6/equivalent value | - The company and its subsidiary Rexin Chang Technology (Changshu) Co., Ltd. are recognized as high-tech enterprises, applying a preferential corporate income tax rate of **15%** for 2023-2025[340](index=340&type=chunk) - Rexin Chang (Hong Kong) Co., Ltd. is taxed under a two-tiered profits tax system, and Rexin Technology (Thailand) Co., Ltd. applies a **20%** corporate income tax rate[339](index=339&type=chunk)[340](index=340&type=chunk) - The company and its subsidiary Rexin Chang Technology (Changshu) Co., Ltd. enjoy VAT super deduction policies for advanced manufacturing enterprises[341](index=341&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=88&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes on all major consolidated financial statement items, including balances, changes, and specific components - The period-end balance of monetary funds was **CNY 90,364,873.81**, an increase from the beginning of the period, mainly due to an increase in USD time deposits[343](index=343&type=chunk)[344](index=344&type=chunk) - The period-end balance of trading financial assets was **CNY 18,820,000.00**, a significant decrease from the beginning of the period, mainly due to the redemption of bank wealth management products purchased in the prior period for dividend distribution[81](index=81&type=chunk)[346](index=346&type=chunk) - The period-end balance of accounts receivable was **CNY 99,316,022.13**, with an allowance for doubtful accounts of **10.80%**[357](index=357&type=chunk) - The period-end balance of inventory was **CNY 177,497,298.21**, with an inventory impairment provision of **CNY 1,693,753.66**[391](index=391&type=chunk) - The period-end balance of short-term borrowings was **CNY 30,200,771.01**, primarily consisting of secured borrowings and discounted notes[426](index=426&type=chunk) - Share capital decreased due to the repurchase and cancellation of **144,000 restricted shares**, with a period-end balance of **CNY 166,422,000.00**[446](index=446&type=chunk) - The period-end balance of retained earnings was **CNY 252,884,326.85**, with the decrease in the current period mainly affected by profit distribution and the appropriation of statutory surplus reserves[455](index=455&type=chunk) [VIII. Research and Development Expenses](index=121&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) Total R&D expenses were CNY 12.20 million, a 11.51% decrease, fully expensed, with no capitalized projects R&D Expense Composition | Item | Amount Incurred in Current Period (CNY) | Amount Incurred in Prior Period (CNY) | | :--- | :--- | :--- | | Employee Compensation | 6,669,649.79 | 6,378,998.32 | | Material Costs | 2,630,554.16 | 4,142,185.54 | | Depreciation | 1,484,936.79 | 1,201,156.27 | | Utilities | 1,333,930.61 | 1,014,372.23 | | Intangible Asset Amortization | 84,301.56 | 84,301.56 | | Share-Based Payment | 0.00 | 901,693.75 | | Experiment and Inspection Fees | 0.00 | 68,113.21 | | Other | 500.00 | 0.00 | | Total | 12,203,872.91 | 13,790,820.88 | | Of which: Expensed R&D Expenditure | 12,203,872.91 | 13,790,820.88 | - The company had no R&D projects eligible for capitalization or significant externally acquired in-progress projects[503](index=503&type=chunk) [IX. Changes in Consolidation Scope](index=121&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) The company had no changes in its consolidation scope due to other reasons during the reporting period - The company had no changes in its consolidation scope due to other reasons[503](index=503&type=chunk) [X. Interests in Other Entities](index=121&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) This section details the company's interests in its wholly-owned or controlled subsidiaries, with no significant non-wholly-owned entities or restrictions Composition of the Enterprise Group | Subsidiary Name | Registered Capital | Main Operating Location | Business Nature | Shareholding Proportion (Direct) | Method of Acquisition | | :--- | :--- | :--- | :--- | :--- | :--- | | Rexin Chang Technology (Changshu) Co., Ltd. | CNY 158,000,000.00 | Changshu City | Manufacturing | 100.00% | Established in 2016 | | Tianjin Rexin Chang New Energy Technology Co., Ltd. | CNY 50,000,000.00 | Tianjin City | Manufacturing | 100.00% | Established in 2022 | | Rexin Chang (Hong Kong) Co., Ltd. | HKD 50,000.00 | Hong Kong | Wholesale Trade | 100.00% | Established in 2024 | | Rexin Technology (Thailand) Co., Ltd. | THB 30,000,000.00 | Thailand | Manufacturing | 99.90% | Established in 2024 | - The company had no significant non-wholly-owned subsidiaries[504](index=504&type=chunk) - The company had no major restrictions on using enterprise group assets or settling enterprise group debts[505](index=505&type=chunk) [XI. Government Grants](index=123&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) This section details government grants, with CNY 10.03 million in asset-related deferred income and CNY 930,730.72 recognized in current profit or loss Liability Items Related to Government Grants | Accounting Account | Beginning Balance (CNY) | New Grants in Current Period (CNY) | Amount Transferred to Other Income in Current Period (CNY) | Ending Balance (CNY) | Related to Asset/Income | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 10,863,068.34 | 0.00 | 829,230.72 | 10,033,837.62 | Asset-related | | Deferred Income | 0.00 | 1,500.00 | 1,500.00 | 0.00 | Income-related | | Total | 10,863,068.34 | 1,500.00 | 830,730.72 | 10,033,837.62 | | Government Grants Recognized in Current Profit or Loss | Accounting Account | Amount Incurred in Current Period (CNY) | Amount Incurred in Prior Period (CNY) | | :--- | :--- | :--- | | Other Income | 830,730.72 | 644,608.77 | | Non-Operating Income | 100,000.00 | 14,200.00 | | Total | 930,730.72 | 658,808.77 | [XII. Risks Related to Financial Instruments](index=124&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) This section analyzes market, credit, and liquidity risks related to financial instruments, detailing hedging strategies and financial asset transfers - The Group faces market risks (exchange rate risk, interest rate risk, and commodity price risk), credit risk, and liquidity risk[510](index=510&type=chunk) - The Group's exchange rate risk is primarily related to USD, EUR, THB, and JPY, managed by adjusting sales policies to reduce risk[512](index=512&type=chunk)[514](index=514&type=chunk) - The Group's interest rate risk arises from bank borrowings, mainly fixed-rate borrowings denominated in CNY[515](index=515&type=chunk)[516](index=516&type=chunk) - The Group mitigates copper and aluminum price volatility through hedging activities, with a realized fair value change of **CNY 102,475.00** for effective aluminum futures in spot transactions during the reporting period[529](index=529&type=chunk)[536](index=536&type=chunk) - The book value of endorsed but not derecognized notes receivable was **CNY 2,223,326.32**, and the amount of derecognized receivables financing was **CNY 8,926,821.03**[538](index=538&type=chunk)[540](index=540&type=chunk)[541](index=541&type=chunk) [XIII. Disclosure of Fair Value](index=129&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) This section discloses fair values of assets and liabilities, with trading financial assets at Level 1 and receivables financing at Level 2 Fair Value of Assets and Liabilities Measured at Fair Value at Period-End | Item | Level 1 Fair Value Measurement (CNY) | Level 2 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | :--- | | (I) Trading Financial Assets | 18,820,000.00 | 0.00 | 18,820,000.00 | | (II) Receivables Financing | 0.00 | 9,922,400.16 | 9,922,400.16 | | Total Liabilities Measured at Fair Value on a Recurring Basis | 18,820,000.00 | 9,922,400.16 | 28,742,400.16 | - Level 1 fair value measurement is determined by quoted prices in active markets, while Level 2 fair value measurement uses book balance as a reasonable estimate[544](index=544&type=chunk)[545](index=545&type=chunk) [XIV. Related Parties and Related Party Transactions](index=130&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) This section details related parties and transactions, noting a post-period change in ultimate control and key management compensation - The ultimate controlling parties of the company are Guo Zhanchang and Guo Jia (father and daughter)[546](index=546&type=chunk) - The company's control has changed to Huangshan Municipal People's Government State-owned Assets Supervision and Administration Commission[547](index=547&type=chunk) Key Management Personnel Compensation | Item | Amount Incurred in Current Period (CNY) | Amount Incurred in Prior Period (CNY) | | :--- | :--- | :--- | | Total Compensation | 1,392,412.91 | 1,349,804.58 | [XV. Share-Based Payment](index=131&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98) The company repurchased and canceled 144,000 restricted shares due to unmet performance targets, invalidating CNY 835,200.00 in related expenses Share-Based Payment Invalidation in Current Period | Category of Grantee | Number of Invalidated Shares in Current Period (shares) | Amount of Invalidation in Current Period (CNY) | | :--- | :--- | :--- | | Selling Expenses | 27,000 | 156,600.00 | | Administrative Expenses | 90,000 | 522,000.00 | | R&D Expenses | 27,000 | 156,600.00 | | Total | 144,000 | 835,200.00 | - Due to the 2022 Restricted Stock Incentive Plan not meeting performance targets, the company repurchased and canceled **144,000 restricted shares** at a repurchase price of **CNY 5.80/share**[555](index=555&type=chunk)[556](index=556&type=chunk) [XVI. Commitments and Contingencies](index=132&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) As of June 30, 2025, the company had no significant commitments or contingencies requiring disclosure - As of June 30, 2025, the Group had no significant commitments requiring disclosure[558](index=558&type=chunk) - The company had no significant contingencies requiring disclosure[559](index=559&type=chunk) [XVII. Events After the Balance Sheet Date](index=133&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E6%97%A5%E5%90%8E%E4%BA%8B%E9%A1%B9) As of June 30, 2025, the company had no profit distribution or other reportable events after the balance sheet date - As of June 30, 2025, the Group had no profit distribution[560](index=560&type=chunk) - As of June 30, 2025, the Group had no other events after the balance sheet date requiring disclosure[560](index=560&type=chunk) [XVIII. Other Significant Matters](index=133&type=section&id=%E5%8D%81%E5%85%AB%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) As of June 30, 2025, the company had no other significant matters requiring disclosure - As of June 30, 2025, the Group had no other significant matters requiring disclosure[561](index=561&type=chunk) [XIX. Notes to Parent Company Financial Statement Major Items](index=133&type=section&id=%E5%8D%81%E4%B9%9D%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section details parent company financial statement notes, including receivables, long-term equity investments, and declining revenue and profit - The parent company's accounts receivable balance was **CNY 80,351,276.09**, with an allowance for doubtful accounts of **9.48%**[566](index=566&type=chunk) - The parent company's other receivables balance was **CNY 204,474,981.94**, with a significant portion being intercompany balances[571](index=571&type=chunk)[573](index=573&type=chunk)[578](index=578&type=chunk) - The parent company's long-term equity investments balance was **CNY 217,614,616.60**, primarily investments in subsidiaries[585](index=585&type=chunk)[586](index=586&type=chunk) - The parent company's operating revenue for the current period was **CNY 203,479,927.84**, and operating cost was **CNY 164,559,380.08**[588](index=588&type=chunk) - The parent company's investment income from the disposal of trading financial assets was **CNY 222,569.99**[592](index=592&type=chunk) [XX. Supplementary Information](index=140&type=section&id=%E4%BA%8C%E5%8D%81%E3%80%81%E8%A1%A5%E5%85%85%E8%B5%84%E6%96%99) This section provides supplementary data on non-recurring gains/losses, return on net assets, and earnings per share Current Period Non-Recurring Gains and Losses Details | Item | Amount (CNY) | | :--- | :--- | | Gains or losses from disposal of non-current a

北京双鹭药业股份有限公司 2025 年半年度报告全文 北京双鹭药业股份有限公司 2025 年半年度报告 二〇二五年八月二十六日 1 北京双鹭药业股份有限公司 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。 风险因素详见正文第三节管理层讨论与分析第十部分"公司面临的风险 和应对措施"，敬请投资者仔细阅读。 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 | 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 | | 6 | | 第三节 | 管理层讨论与分析 | | 9 | | 第四节 | 公司治理、环境和社会 | | 23 | | 第五节 | 重要事项 | | 25 | | 第六节 | 股份变动及股东情况 | | 31 | | 第七节 | 债券相关情况 | | 35 | | 第八节 | 财务报告 | | 36 | | 第九节 | 其他报送数据 | ...

First Section Important Notes, Table of Contents, and Definitions [Important Notes](index=2&type=section&id=Important%20Notes) The company's board and senior management affirm the semi-annual report's integrity, with a proposed cash dividend plan pending shareholder approval, and acknowledge risks from economic and market fluctuations. - The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[5](index=5&type=chunk) - Mr. Shen Hefu, the legal representative, Mr. Si Kaiming, the chief accountant, and Mr. Zhu Jinyi, the general manager of the financial accounting department, declare the financial report in this semi-annual report is true, accurate, and complete[5](index=5&type=chunk) 2025 Semi-Annual Profit Distribution Plan | Indicator | Content | | :--- | :--- | | Distribution Basis | 4,363,777,891 shares | | Dividend per 10 shares | RMB 0.80 (tax inclusive) | | Total Cash Dividend | RMB 349.10 million (tax inclusive) | | Bonus Shares | None | | Capital Reserve to Share Capital | None | | Status | Subject to approval by the company's 2025 First Extraordinary General Meeting of Shareholders | - The company faces risks including legal and compliance risks, operational and management risks, market risks, liquidity risks, credit risks, operational risks, reputational risks, and exchange rate risks[6](index=6&type=chunk) [Directory of Reference Documents](index=4&type=section&id=Directory%20of%20Reference%20Documents) The directory of reference documents includes the legal representative's signed semi-annual report, financial statements, original copies of all publicly disclosed company documents and announcements, and other relevant materials. - The directory of reference documents includes the semi-annual report text signed by the company's legal representative[11](index=11&type=chunk) - The directory of reference documents includes financial statements signed and sealed by the company's legal representative, chief accountant, and head of the accounting department[11](index=11&type=chunk) - The directory of reference documents includes original copies of all company documents and announcements publicly disclosed during the reporting period[11](index=11&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section provides definitions for common terms used in the report, including the company itself, major related parties, regulatory bodies, and currency units, to ensure clear understanding of the report content. Key Definitions | Term | Definition | | :--- | :--- | | Company, The Company | Guoyuan Securities Co., Ltd. | | Guoyuan Financial Holdings Group | Anhui Guoyuan Financial Holdings Group Co., Ltd. | | Guoyuan Trust | Anhui Guoyuan Trust Co., Ltd. | | CSRC | China Securities Regulatory Commission | | Yuan, Ten Thousand Yuan, Hundred Million Yuan | RMB Yuan, RMB Ten Thousand Yuan, RMB Hundred Million Yuan | Second Section Company Profile and Key Financial Indicators [Company Profile](index=6&type=section&id=I.%20Company%20Profile) This section outlines Guoyuan Securities' basic information, including stock ticker, code, listing exchange, company's full Chinese and English names and abbreviations, and legal representative. Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Guoyuan Securities | | Stock Code | 000728 | | Stock Exchange Listed On | Shenzhen Stock Exchange | | Company's Chinese Name | 国元证券股份有限公司 | | Company's Legal Representative | Shen Hefu | [Contact Person and Information](index=6&type=section&id=II.%20Contact%20Person%20and%20Information) This section provides detailed contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, faxes, and email addresses, to facilitate communication with investors and relevant parties. Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Li Zhoufeng | Guoyuan Securities, Block A, Anhui International Financial Center, No. 18 Meishan Road, Hefei, Anhui Province | 0551-62207968 | 0551-62207322 | dshbgs@gyzq.com.cn | | Securities Affairs Representative | Yang Lu | Guoyuan Securities, Block A, Anhui International Financial Center, No. 18 Meishan Road, Hefei, Anhui Province | 0551-62207323 | 0551-62207322 | yanglu@gyzq.com.cn | [Other Information](index=6&type=section&id=III.%20Other%20Information) During the reporting period, the company's contact information, information disclosure, and document storage locations remained unchanged, with specific details available in the 2024 annual report. - The company's registered address, office address and postal code, website, and email address remained unchanged during the reporting period, with details available in the 2024 annual report[18](index=18&type=chunk) - The securities exchange website and media names and URLs for the company's semi-annual report disclosure, as well as the report's storage location, remained unchanged during the reporting period, with details available in the 2024 annual report[19](index=19&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2025, consolidated operating revenue and net profit attributable to shareholders grew by **41.60%** and **40.44%** respectively, driven by wealth management, securities investment, and investment banking, while net cash flow from operating activities significantly increased due to financial asset disposals and securities trading, with accounting policy changes having no impact on total profit or net profit. Consolidated Key Accounting Data and Financial Indicators (H1 2025 vs H1 2024) | Indicator | Current Period (RMB) | Prior Period Adjusted (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 3.40 billion | 2.40 billion | 41.60% | | Net Profit Attributable to Shareholders | 1.40 billion | 1.00 billion | 40.44% | | Net Profit Attributable to Shareholders Excluding Non-Recurring Items | 1.41 billion | 997.36 million | 41.33% | | Other Comprehensive Income | -58.69 million | 721.13 million | -108.14% | | Net Cash Flow from Operating Activities | 8.82 billion | -529.47 million | - | | Basic Earnings Per Share (RMB/share) | 0.32 | 0.23 | 39.13% | | Diluted Earnings Per Share (RMB/share) | 0.32 | 0.23 | 39.13% | | Weighted Average Return on Net Assets | 3.73% | 2.84% | Increased by 0.89 percentage points | Consolidated Balance Sheet Key Indicators (H1 2025 End vs Prior Year End) | Indicator | Current Period End (RMB) | Prior Year End Adjusted (RMB) | Change from Prior Year End | | :--- | :--- | :--- | :--- | | Total Assets | 177.20 billion | 172.10 billion | 2.96% | | Total Liabilities | 139.23 billion | 135.04 billion | 3.10% | | Net Assets Attributable to Shareholders | 37.95 billion | 37.04 billion | 2.46% | - The company's operating revenue and net profit attributable to shareholders increased by **41.60%** and **40.44%** respectively year-on-year, primarily due to performance growth in wealth management, securities investment trading, and investment banking businesses[21](index=21&type=chunk) - Net cash flow from operating activities significantly increased year-on-year, mainly due to substantial cash inflows from the disposal of trading financial assets and securities brokerage business[22](index=22&type=chunk) - Accounting policy changes resulting from the latest regulations issued by the China Futures Association had no impact on the company's total profit or net profit for H1 2024[23](index=23&type=chunk) [Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=8&type=section&id=V.%20Differences%20in%20Accounting%20Data%20Under%20Domestic%20and%20Overseas%20Accounting%20Standards) During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under International Accounting Standards or overseas accounting standards and those under Chinese Accounting Standards. - During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and those under Chinese Accounting Standards[25](index=25&type=chunk) - During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and those under Chinese Accounting Standards[26](index=26&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=9&type=section&id=VI.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) The company's total non-recurring gains and losses for the current period amounted to **-RMB 4.90 million**, primarily comprising non-current asset disposal gains/losses, government grants, non-operating income/expenses, and tax withholding fee refunds, with the latter classified as non-recurring. Non-Recurring Gains and Losses Items and Amounts | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 0.20 million | | Government Grants Recognized in Current Profit/Loss (excluding those with continuous impact) | 10.34 million | | Other Non-Operating Income and Expenses (excluding the above) | -20.82 million | | Other Profit/Loss Items Meeting the Definition of Non-Recurring Gains/Losses (Tax withholding fee refunds) | 4.05 million | | Total | -6.23 million | | Less: Income Tax Impact | -1.36 million | | Impact on Minority Shareholders' Equity (after tax) | 0.03 million | | Final Total | -4.90 million | - Other profit/loss items meeting the definition of non-recurring gains and losses primarily refer to tax withholding fee refunds received by the company from tax authorities[28](index=28

2025 年半年度报告 2025 年 8 月 26 日 1 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。 公司负责人徐惠祥、主管会计工作负责人柏丽及会计机构负责人(会计主 管人员)张蓓声明：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。 报告中涉及的未来发展战略、经营计划等前瞻性内容属于计划性事项，能 否实现取决于市场状况变化等多种因素，存在不确定性，并不代表公司对未来 年度的盈利预测，也不构成公司对投资者及相关人士的实质性承诺。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，敬请投资者注意投资风险。 公司在本报告中详细阐述了未来可能存在的风险因素及对策，具体内容详 见本报告"第三节管理层讨论与分析 十、公司面临的风险和应对措施"，敬 请投资者予以关注。 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 | | | 备查文件目录 一、载有公司法定代表人、主管会计工作负责人、会计 ...

珠海市智迪科技股份有限公司 2025 年半年度报告全文 珠海市智迪科技股份有限公司 2025 年半年度报告 2025-026 2025 年 8 月 26 日 1 珠海市智迪科技股份有限公司 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。 公司负责人谢伟明、主管会计工作负责人余自然及会计机构负责人(会计 主管人员)周结欢声明：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。 本报告中所涉及未来的经营计划和经营目标，并不代表公司的盈利预测， 也不构成公司对投资者的实质承诺，能否实现取决于市场状况变化等多种因 素，存在不确定性，请投资者注意投资风险。 公司在本报告第三节"管理层讨论与分析"的"十一 公司未来发展的展 望"部分，描述了公司未来经营中可能面临的风险，敬请广大投资者注意查 阅。 公司经本次董事会审议通过的利润分配预案为：以 80,000,000 股为基数， 向全体股东每 10 股派发现金红利 3 ...