Company Summary - Zhongjian Technology (SZ 300777) announced on August 26 that its 26th meeting of the third board of directors was held on August 25, 2025, to review the proposal regarding the company's 2025 semi-annual report and its summary [1] - For the year 2024, Zhongjian Technology's revenue composition is as follows: new materials manufacturing accounts for 99.93%, while other businesses account for 0.07% [1] - As of the report date, Zhongjian Technology has a market capitalization of 17.5 billion yuan [1] Industry Overview - The pet industry is experiencing significant growth, with a market size of 300 billion yuan, leading to a surge in stock prices for industry-listed companies [1]

Core Viewpoint - KPMG Huazhen LLP issued an audit report for Honghe Electronic Materials Technology Co., Ltd., confirming that the financial statements for the year ending December 31, 2024, fairly reflect the company's financial position and performance in accordance with Chinese accounting standards [1][2]. Financial Performance - The consolidated revenue for Honghe Technology in 2024 was RMB 35,834,632,875.20, a significant increase from RMB 661,154,817.93 in 2023 [8]. - The net profit for 2024 was RMB 22,800,933.92, compared to a net loss of RMB 63,094,466.24 in 2023, indicating a turnaround in profitability [8]. - The total assets as of December 31, 2024, amounted to RMB 2,508,717,827.39, slightly down from RMB 2,532,171,730.10 in 2023 [6][7]. Key Audit Matters - Revenue recognition was identified as a key audit matter, with the company primarily using a direct sales model for its electronic-grade glass fiber cloth, recognizing revenue upon transfer of control to the buyer [1][2]. - Inventory impairment provisions were also highlighted as a key audit matter, with the company assessing the net realizable value of inventory based on future selling prices and sales expense ratios [2]. Financial Position - Current assets totaled RMB 942,347,651.95 in 2024, up from RMB 870,209,234.14 in 2023, while non-current assets decreased to RMB 1,566,370,175.44 from RMB 1,661,962,495.96 [6][7]. - Current liabilities increased to RMB 620,784,788.31 in 2024 from RMB 563,098,588.12 in 2023, while non-current liabilities decreased to RMB 437,893,617.07 from RMB 542,116,273.85 [6][7]. Cash Flow Analysis - The net cash flow from operating activities for 2024 was RMB 179,479,646.23, compared to a cash outflow of RMB 97,749,484.06 in 2023, indicating improved cash generation [9]. - Cash and cash equivalents at the end of 2024 were RMB 285,433,648.94, up from RMB 175,193,236.33 in 2023, reflecting a positive cash position [9].