Summary of Key Points Core Viewpoint - As of August 25, 1687 companies have released their semi-annual reports for 2025, with 977 reporting a year-on-year increase in net profit, while 710 reported a decline. Additionally, 1039 companies saw an increase in operating revenue, while 648 experienced a decrease. A total of 771 companies reported simultaneous growth in both net profit and operating revenue, while 442 companies saw declines in both metrics. Notably, 228 companies achieved a doubling of their performance, with Xinte Electric showing the highest increase at 49775.01% [1]. Company Performance - Xinte Electric (301120) reported earnings per share of 0.0100, with a net profit of 532.87 million and a year-on-year increase of 49775.01%. Its operating revenue reached 19265.03 million, reflecting a 16.10% increase [1]. - Fujilay (301258) achieved a net profit of 4307.66 million, with a year-on-year increase of 12430.96% and operating revenue of 22390.97 million, up by 3.36% [1]. - Taiji Holdings (300046) reported a net profit of 3972.84 million, with a year-on-year increase of 3789.41% and operating revenue of 17878.78 million, up by 4.18% [1]. - Other notable companies include: - Lian Di Xin (839790) with a net profit of 1012.23 million, a year-on-year increase of 3149.79%, but a decline in operating revenue by 8.10% [1]. - Shanda Holdings (603086) reported a net profit of 13603.97 million, with a year-on-year increase of 2561.58% and operating revenue of 142261.73 million, up by 11.82% [1]. Revenue and Profit Trends - A total of 771 companies reported simultaneous growth in both net profit and operating revenue, indicating a positive trend in the market [1]. - Conversely, 442 companies experienced declines in both metrics, highlighting potential challenges within certain sectors [1]. - The overall performance of companies shows a mixed landscape, with significant outliers achieving extraordinary growth while others face difficulties [1].

Core Insights - As of August 22, 1258 companies have released their semi-annual reports for 2025, with 751 reporting a year-on-year increase in net profit, while 507 reported a decline [1] - Among the companies, 790 reported a year-on-year increase in operating revenue, while 468 reported a decrease [1] - Notably, 600 companies experienced simultaneous growth in both net profit and operating revenue, while 317 companies saw declines in both metrics [1] - A total of 174 companies reported a doubling of their performance, with Xinte Electric showing the highest increase at 49775.01% [1] Company Performance Summary - Xinte Electric (301120) reported earnings per share of 0.0100, with a net profit of 532.87 million and a year-on-year increase of 49775.01%, alongside operating revenue of 19265.03 million, up 16.10% [1] - Fujilai (301258) achieved a net profit of 4307.66 million, marking a year-on-year increase of 12430.96%, with operating revenue of 22390.97 million, up 3.36% [1] - Taiji Stock (300046) reported a net profit of 3972.84 million, with a year-on-year increase of 3789.41%, and operating revenue of 17878.78 million, up 4.18% [1] - Other notable performers include Shijia Optoelectronics (688313) with a net profit increase of 1712.00% and operating revenue growth of 121.12% [1] Additional Company Insights - Companies like Digital Vision (300079) and Wisdom Technology (688636) also reported significant increases in net profit and operating revenue, with year-on-year increases of 2747.64% and 2147.93%, respectively [1] - The report highlights a diverse range of industries, with companies such as Hanyu Pharmaceutical (300199) and Muyuan Foods (002714) also showing strong performance metrics [1][2]

Group 1 - The stock price of Aorui De is 4.05 yuan, down 0.01 yuan from the previous trading day, with a decline of 0.25% [1] - The opening price was 4.05 yuan, with a highest price of 4.05 yuan and a lowest price of 3.96 yuan, and the trading volume was 1.399 million hands, with a transaction amount of 560 million yuan [1] - Aorui De's main business is the research, production, and sales of optical optoelectronic products, and the company is registered in Heilongjiang Province [1] Group 2 - In the first half of 2025, the company achieved a net profit of 61.3938 million yuan, a year-on-year increase of 1263.22%, and operating revenue of 219 million yuan, a year-on-year increase of 10.12% [1] - On August 20, 2025, the net outflow of main funds was 61.7371 million yuan, accounting for 0.63% of the circulating market value [1] - Over the past five days, the cumulative net outflow of main funds reached 293 million yuan, accounting for 2.99% of the circulating market value [1]

Summary of Key Points Core Viewpoint - As of August 19, 2025, 663 companies have released their semi-annual reports, with 432 reporting a year-on-year increase in net profit, while 231 reported a decline. Additionally, 440 companies saw an increase in operating revenue, and 223 experienced a decrease. A total of 355 companies reported simultaneous growth in both net profit and operating revenue, while 146 companies saw declines in both metrics. Notably, 111 companies achieved a net profit growth rate exceeding 100%, with Zhimingda leading at an impressive 2147.93% increase [1]. Company Performance - Zhimingda (688636) reported earnings per share of 0.2284, with a net profit of 38.30 million and a year-on-year increase of 2147.93%. Its operating revenue reached 294.76 million, reflecting an 84.83% increase [1]. - Rongzhirixin (688768) achieved a net profit of 14.24 million, marking a 2063.42% increase, with operating revenue of 25.63 million, up 16.55% [1]. - Shijia Guangzi (688313) reported a net profit of 216.65 million, a 1712.00% increase, and operating revenue of 992.63 million, up 121.12% [1]. - Aorui De (600666) had a net profit of 6.14 million, a 1263.22% increase, with operating revenue of 21.94 million, up 10.12% [1]. - Huile B (900939) reported a net profit of 4.21 million, a 1222.72% increase, with operating revenue of 0.76 million, slightly down by 0.11% [1]. Revenue and Profit Trends - The overall trend indicates a significant number of companies are experiencing substantial growth in both net profit and operating revenue, with a notable concentration of high growth rates among specific firms [1][2]. - Companies like Nanjiguang (300940) and Hongjing Technology (301396) also reported impressive growth rates in net profit of 982.43% and 725.73%, respectively, indicating a robust performance across various sectors [1][2].

Summary of Key Points Core Viewpoint - As of August 18, 526 companies have released their semi-annual reports for 2025, with 349 reporting a year-on-year increase in net profit, while 177 reported a decline. Additionally, 356 companies saw an increase in operating revenue, and 170 experienced a decrease. Notably, 289 companies had both net profit and operating revenue growth, while 110 companies reported declines in both metrics. The company with the highest profit growth was Zhimingda, with a staggering increase of 2147.93% [1]. Group 1: Company Performance - Zhimingda (688636) reported a net profit of 38.30 million with a year-on-year increase of 2147.93% and operating revenue of 294.76 million, up 84.83% [1]. - Rongzhirixin (688768) achieved a net profit of 14.24 million, marking a 2063.42% increase, with operating revenue of 256.33 million, up 16.55% [1]. - Shijia Guangzi (688313) reported a net profit of 216.65 million, a 1712.00% increase, and operating revenue of 992.63 million, up 121.12% [1]. - Aorui De (600666) had a net profit of 6.14 million, a 1263.22% increase, with operating revenue of 219.36 million, up 10.12% [1]. - Huily B (900939) reported a net profit of 4.21 million, a 1222.72% increase, with operating revenue of 0.76 million, down 0.11% [1]. Group 2: Additional Company Highlights - Zhenleikeji (688270) reported a net profit of 6.23 million, a 1006.99% increase, with operating revenue of 204.87 million, up 73.64% [1]. - Nanjiguang (300940) achieved a net profit of 7.29 million, a 982.43% increase, with operating revenue of 397.51 million, up 244.67% [1]. - Bofei Electric (001255) reported a net profit of 0.86 million, an 882.67% increase, with operating revenue of 196.37 million, up 39.67% [1]. - Shengnong Development (002299) had a net profit of 910.25 million, a 791.93% increase, with operating revenue of 8856.41 million, up 0.22% [1]. - Liming Co. (002734) reported a net profit of 268.85 million, a 747.13% increase, with operating revenue of 2452.04 million, up 6.69% [1].

Core Viewpoint - The recent financial report of Aorui De (600666) shows significant improvement in net profit and revenue, indicating a potential turnaround despite challenges in gross margin and cash flow [1]. Financial Performance - The total revenue for the first half of 2025 reached 219 million yuan, a year-on-year increase of 10.12% [1]. - The net profit attributable to shareholders was 61.39 million yuan, reflecting a substantial year-on-year increase of 1263.22% [1]. - In Q2 2025, the revenue was 121 million yuan, up 8.08% year-on-year, with a net profit of 69.73 million yuan, an increase of 547.1% [1]. Key Financial Metrics - The gross margin decreased to 9.61%, down 42.1% year-on-year, while the net margin improved to 26.92%, a significant increase of 884.27% [1]. - Total expenses (selling, administrative, and financial) amounted to 40.82 million yuan, accounting for 18.61% of revenue, a decrease of 27.08% year-on-year [1]. - Earnings per share rose to 0.02 yuan, a remarkable increase of 1284.21% year-on-year [1]. Balance Sheet Insights - Accounts receivable increased to 228 million yuan, representing 62.18% of total revenue, indicating a large volume of receivables [1]. - Cash and cash equivalents decreased to 143 million yuan, down 46.40% year-on-year [1]. - Interest-bearing debt reduced to 23.39 million yuan, a decrease of 34.14% [1]. Historical Context - The company has shown poor historical performance with a median ROIC of -7.94% over the past decade, and a particularly low ROIC of -48.58% in 2018 [3]. - The company has reported losses in 6 out of 32 annual reports since its listing, suggesting a challenging investment profile [3].

Group 1 - The company reported total operating revenue of 219 million yuan, an increase of 20.16 million yuan compared to the same period last year, achieving a year-on-year growth of 10.12% [1] - The net profit attributable to shareholders reached 61.39 million yuan, an increase of 66.67 million yuan compared to the same period last year, marking three consecutive years of growth [1] - The net cash inflow from operating activities was 35.99 million yuan, an increase of 109 million yuan compared to the same period last year, also achieving two consecutive years of growth [1] Group 2 - The company's latest debt-to-asset ratio is 45.32%, a decrease of 6.97 percentage points from the previous quarter and a decrease of 6.15 percentage points from the same period last year [3] - The latest gross profit margin is 9.61%, an increase of 2.39 percentage points from the previous quarter [3] - The latest return on equity (ROE) is 6.82%, an increase of 7.32 percentage points compared to the same period last year [3] Group 3 - The diluted earnings per share are 0.02 yuan, an increase of 0.02 yuan compared to the same period last year, achieving five consecutive years of growth [4] - The latest total asset turnover ratio is 0.13 times, an increase of 0.03 times compared to the same period last year, representing a year-on-year increase of 38.20% [4] - The latest inventory turnover ratio is 2.94 times, an increase of 0.69 times compared to the same period last year, achieving a year-on-year increase of 30.69% [4] Group 4 - The number of shareholders is 133,800, with the top ten shareholders holding a total of 889 million shares, accounting for 32.19% of the total share capital [4] - The largest shareholder is Qingdao Zhican Information Industry Development Partnership (Limited Partnership) with a holding ratio of 13.02% [4]

Core Viewpoint - The company, Aorede (600666), reported a revenue increase of 10.12% year-on-year for the first half of 2025, achieving 219 million yuan, and a significant turnaround in net profit to 61.39 million yuan from a loss in the previous year [1] Group 1: Financial Performance - The company achieved a net profit attributable to shareholders of 61.39 million yuan, compared to a loss of 5.28 million yuan in the same period last year [1] - The basic earnings per share were reported at 0.02 yuan [1] - The revenue composition included 104 million yuan from sapphire products and 115 million yuan from comprehensive computing services [1] Group 2: Business Operations - The company’s self-built computing cluster operated stably, efficiently meeting customer needs for large model training [1] - Aorede expanded its service scope to include fine-tuning and real-time inference for large models, targeting a broader customer base in the AI technology sector [1] - The company increased R&D investment in computing services, developing an AI dialogue app and collaborating on optimization technologies for large model inference [2] Group 3: Strategic Initiatives - The company is actively exploring financing channels, including credit from banks and new financing models like Real World Assets (RWA) to support its computing business [2] - Aorede implemented cost-reduction measures to enhance product competitiveness in the sapphire market, including equipment upgrades and management optimization [2] - The company completed the divestiture of ineffective assets and entered bankruptcy proceedings for a subsidiary, significantly improving its asset-liability structure [3]

智通财经APP讯，奥瑞德(600666.SH)披露2025年半年度报告，报告期公司实现营收2.19亿元，同比增长 10.12%;归属于上市公司股东的净利润6139万元，同比扭亏为盈;扣非净利润亏损2138万元;基本每股收益 0.0225元。 ...

Section I Definitions [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This section defines common terms used in the report, covering regulatory bodies, company entities, reorganization parties, subsidiaries, associates, core products (sapphire, LED, substrate, single crystal furnace), and AI fields (training, fine-tuning, inference), ensuring accurate report interpretation - The report defines common institutions and entities such as the China Securities Regulatory Commission, Shanghai Stock Exchange, and the Company (Aurora Optoelectronics)[12](index=12&type=chunk) - Detailed explanations are provided for concepts related to reorganization investors, reorganization plans, Aurora Limited, Harbin Zhigui, Qitaihe Aurora, Liuxia Optoelectronics, Beijing Zhisuanneng, Shenzhen Zhisuanneng, Kerong Yunsan Partnership, and Kerong Yunsan[12](index=12&type=chunk) - Core products and technologies such as sapphire, LED, substrates, and single crystal furnaces/sapphire crystal growth special equipment are described[12](index=12&type=chunk) - Key concepts in machine learning and artificial intelligence, such as training, fine-tuning, and inference, are introduced and explained[12](index=12&type=chunk)[13](index=13&type=chunk) Section II Company Profile and Key Financial Indicators [I. Company Information](index=5&type=section&id=I.%20Company%20Information) This section provides the basic registration information of Aurora Optoelectronics Co., Ltd., including its Chinese name, abbreviation, English name, abbreviation, and legal representative | Indicator | Information | | :--- | :--- | | Company Chinese Name | 奥瑞德光电股份有限公司 | | Company Chinese Abbreviation | 奥瑞德 | | Company English Name | AURORA OPTOELECTRONICS CO.,LTD. | | Company English Abbreviation | AURORA | | Legal Representative | Zhu Sangao | [II. Contact Person and Information](index=5&type=section&id=II.%20Contact%20Person%20and%20Information) This section lists the contact information of the company's Board Secretary, including name, address, phone, fax, and email | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Liang Ying | 5th Floor, Building 2, Block A, Innovation Headquarters, Shenzhen (Harbin) Industrial Park, No. 288 Zhigu Street, Songbei District, Harbin | 0451-51076628 | 0451-51076628 | zhengquan@aurora-sapphire.cn | [III. Overview of Basic Information Changes](index=5&type=section&id=III.%20Overview%20of%20Basic%20Information%20Changes) The company's registered address remained unchanged during the reporting period, but historically had two changes, most recently in April 2023 to Building 2, Block A, 5th Floor, Innovation Headquarters, Shenzhen (Harbin) Industrial Park, No. 288 Zhigu Street, Songbei District, Harbin - The company's registered address changed in April 2023 to 5th Floor, Building 2, Block A, Innovation Headquarters, Shenzhen (Harbin) Industrial Park, No. 288 Zhigu Street, Songbei District, Harbin[17](index=17&type=chunk) - The company's office address is the same as its registered address, with postal code 150000, and its website is www.aurora-sapphire.cn[17](index=17&type=chunk) [IV. Overview of Information Disclosure and Document Custody Location Changes](index=6&type=section&id=IV.%20Overview%20of%20Information%20Disclosure%20and%20Document%20Custody%20Location%20Changes) The company's designated information disclosure newspaper is "Securities Times," with semi-annual reports published on the Shanghai Stock Exchange and Securities Times websites, and documents kept at the company's Board Secretary Office, with no changes during the reporting period | Indicator | Information | | :--- | :--- | | Company's Selected Information Disclosure Newspaper Name | "Securities Times" | | Website Address for Semi-Annual Report Publication | www.sse.com.cn; www.stcn.com | | Company's Semi-Annual Report Custody Location | Company Board Secretary Office | | Index for Changes During the Reporting Period | Not applicable | [V. Company Stock Profile](index=6&type=section&id=V.%20Company%20Stock%20Profile) The company's stock is A-shares, listed and traded on the Shanghai Stock Exchange, with stock abbreviation "Aurora" and stock code 600666 | Stock Type | Stock Exchange | Stock Abbreviation | Stock Code | Former Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | Aurora | 600666 | - | [VII. Key Accounting Data and Financial Indicators](index=6&type=section&id=VII.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2025, operating revenue increased by 10.12% to 219.36 million yuan, driven by computing power services. Net profit attributable to shareholders turned profitable at 61.39 million yuan, a significant increase of 66.67 million yuan, mainly due to gains from subsidiary equity transfer. Net profit after non-recurring items remained a loss, but net cash flow from operating activities significantly increased by 108.98 million yuan 2025 Semi-Annual Key Accounting Data | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (yuan) | 219,355,779.72 | 199,191,036.16 | 10.12 | | Total Profit (yuan) | 59,271,295.02 | -7,276,840.73 | Not applicable | | Net Profit Attributable to Shareholders of Listed Company (yuan) | 61,393,812.44 | -5,277,902.98 | Not applicable | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses (yuan) | -21,377,205.05 | -20,155,093.39 | Not applicable | | Net Cash Flow from Operating Activities (yuan) | 35,999,102.55 | -72,977,936.38 | Not applicable | | Net Assets Attributable to Shareholders of Listed Company (yuan) | 900,338,986.08 | 838,945,173.64 | 7.32 | | Total Assets (yuan) | 1,662,630,115.34 | 1,821,394,514.16 | -8.72 | 2025 Semi-Annual Key Financial Indicators | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.0225 | -0.0019 | Not applicable | | Diluted Earnings Per Share (yuan/share) | 0.0225 | -0.0019 | Not applicable | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (yuan/share) | -0.0078 | -0.0073 | Not applicable | | Weighted Average Return on Net Assets (%) | 7.0597 | -0.4990 | Not applicable | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | -2.4582 | -1.9055 | Not applicable | - Operating revenue increased by **10.12%** year-on-year, primarily driven by a significant increase in sales revenue from computing power comprehensive services[22](index=22&type=chunk) - Net profit attributable to shareholders of the listed company increased by **66.67 million yuan** year-on-year, mainly due to the company's transfer of subsidiary equity in the current period, recognizing equity transfer gains[22](index=22&type=chunk) - Net cash flow from operating activities increased by **108.98 million yuan** year-on-year, primarily due to a decrease in other cash payments related to operating activities in the current period[22](index=22&type=chunk) - Total assets decreased by **158.76 million yuan** year-on-year, mainly because the assets and liabilities of related subsidiaries are no longer included in the consolidated scope due to the company's transfer of subsidiary equity in the current period[23](index=23&type=chunk) [IX. Non-Recurring Gains and Losses Items and Amounts](index=7&type=section&id=IX.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Total non-recurring gains and losses for the period amounted to 82.77 million yuan, primarily from disposal of non-current assets (76.75 million yuan) and government grants (4.59 million yuan), significantly impacting net profit positively 2025 Semi-Annual Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets, including the reversal of impairment provisions already made | 76,745,109.67 | | Government grants recognized in current profit or loss | 4,585,690.10 | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 1,251,743.63 | | Other non-operating income and expenses apart from the above items | 434,289.17 | | Less: Impact on minority interests (after tax) | 245,815.08 | | Total | 82,771,017.49 | Section III Management Discussion and Analysis [I. Description of the Company's Industry and Main Business During the Reporting Period](index=8&type=section&id=I.%20Description%20of%20the%20Company's%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) The company's main businesses include computing power comprehensive services and sapphire product manufacturing and sales. Computing power services offer a "supply-management-service" system for AI model training, fine-tuning, and inference. Sapphire business focuses on crystal rods and wafers for LED substrates and consumer electronics. The computing power industry is rapidly growing, while the sapphire industry faces competition but finds new growth in Mini/Micro-LED and consumer electronics [(I) Main Business](index=8&type=section&id=(I)%20Main%20Business) The company's main businesses are computing power comprehensive services and sapphire product manufacturing and sales. Computing power services provide one-stop solutions for large model training, fine-tuning, and inference. Sapphire products include crystal rods and wafers, primarily for LED substrates and consumer electronics window panels - The company's main businesses include computing power comprehensive services and the production and sales of sapphire products[28](index=28&type=chunk) - Computing power comprehensive services establish a "flexible computing power supply - intelligent operation and maintenance management - full lifecycle service" system, supporting local deployment or cloud resource invocation, precisely adapting to AI model training, real-time inference, and other demands[28](index=28&type=chunk) - Sapphire products primarily include crystal rods and wafers, used for LED substrate wafers or consumer electronic product window panels[30](index=30&type=chunk) [(II) Business Model](index=9&type=section&id=(II)%20Business%20Model) The company's business model remains unchanged. Computing power services deploy GPU server clusters in high-standard data centers, offering "on-premise deployment + cloud access" modes. The sapphire business uses a mature "order-driven + dynamic adjustment" model, ensuring independent control over R&D, procurement, production, and sales - Computing power comprehensive services deploy GPU server clusters in high-standard data centers, offering "on-premise deployment + cloud access" dual modes to achieve efficient supply and service-oriented delivery of intelligent computing power[30](index=30&type=chunk) - The sapphire business continues to use a mature operating model, maintaining independent control over the entire chain of R&D, procurement, production, and sales, ensuring supply through an "order-driven + dynamic adjustment" mechanism[31](index=31&type=chunk) [(III) Key Performance Drivers](index=9&type=section&id=(III)%20Key%20Performance%20Drivers) In H1 2025, the company's revenue growth was primarily driven by computing power comprehensive services, with sapphire and computing power businesses contributing 104.61 million yuan and 114.74 million yuan, respectively. Net profit attributable to shareholders significantly increased due to investment gains from the transfer of subsidiary equity 2025 H1 Business Revenue | Business Type | Revenue (10,000 yuan) | | :--- | :--- | | Sapphire Business | 10,461.16 | | Computing Power Comprehensive Services Business | 11,474.42 | - Net profit attributable to shareholders of the listed company was **61.39 million yuan**, a year-on-year increase of **66.67 million yuan**, mainly due to the company's transfer of subsidiary equity in the current period, recognizing equity transfer gains[31](index=31&type=chunk) [(IV) Industry Overview](index=9&type=section&id=(IV)%20Industry%20Overview) The computing power industry is rapidly developing, driven by national policies and AI technological innovation, leading to explosive market demand. The sapphire industry faces increased competition and price pressure, but emerging display technologies like Mini-LED, Micro-LED, and the consumer electronics sector provide new growth momentum, supported by national policies - Computing power, as a digital economy infrastructure, is strongly supported by the development of artificial intelligence technology and national policies (such as the "Overall Layout Plan for Building a Digital China" and the "Action Plan for High-Quality Development of Computing Power Infrastructure"), leading to explosive market demand[31](index=31&type=chunk)[32](index=32&type=chunk) - The sapphire industry faces price pressure due to slowing downstream demand and intensified competition, but the continuous preference for sapphire materials in emerging display technologies like Mini-LED, Micro-LED, and the consumer electronics sector constitutes a core driving force[32](index=32&type=chunk) - National and local governments have introduced policies to support the LED industry (especially Mini-LED and Micro-LED) and stimulate the consumer electronics market, providing important support for the sapphire industry[32](index=32&type=chunk) [II. Discussion and Analysis of Operations](index=10&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) During the reporting period, the company's operating revenue increased by 10.12% to 219.36 million yuan, with computing power business accounting for 52.31%. The company focused on expanding computing power services and increasing R&D investment, while optimizing the sapphire business structure by divesting non-performing assets, and improving management efficiency, resulting in a 19.47% decrease in administrative expenses 2025 H1 Operating Overview | Indicator | Amount (10,000 yuan) | Year-on-Year Increase/Change | | :--- | :--- | :--- | | Operating Revenue | 21,935.58 | 10.12% | | Main Business Revenue | 21,260.07 | 18.22% | | Total Assets (period-end) | 166,263.01 | -8.72% | | Owners' Equity Attributable to Shareholders of Listed Company (period-end) | 90,033.90 | 7.32% | - The computing power business segment achieved operating revenue of **114.74 million yuan**, accounting for **52.31%** of total revenue in the first half of the year, forming a full-stack service capability for "training-fine-tuning-inference"[34](index=34&type=chunk)[36](index=36&type=chunk) - The company increased R&D investment in its computing power business, independently developing an AI intelligent dialogue APP and jointly researching ultra-large parameter large model parallel inference optimization technology with external teams[34](index=34&type=chunk) - The sapphire business implemented cost reduction and efficiency improvement measures through equipment modification, product structure optimization, and refined operations, while divesting non-performing assets such as Aurora Optoelectronics (Zhengzhou) and Harbin Autumn Crown Optoelectronics, with subsidiary Qitaihe Aurora entering bankruptcy liquidation proceedings[34](index=34&type=chunk) - Administrative expenses decreased by **19.47%** year-on-year, improving management efficiency through institutional standardization, organizational structure optimization, salary mechanism reform, and refined expense control[35](index=35&type=chunk) [III. Analysis of Core Competencies During the Reporting Period](index=11&type=section&id=III.%20Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company's core competencies lie in product quality, talent development, and market customer advantages. It has established a comprehensive quality management system, focuses on internal training and external recruitment of composite talents, and has accumulated stable customer resources through the sapphire business's industry reputation and the computing power business's "deep binding with key accounts and broad coverage of small and medium-sized clients" strategy - The company has established a comprehensive quality management system certified with international management systems such as ISO9001, ISO14001, and ISO45001, ensuring product and service quality[38](index=38&type=chunk) - The company builds a composite talent reserve system through internal training and external recruitment, regularly training and attracting key talent, and implementing a performance appraisal system to stimulate team vitality[38](index=38&type=chunk) - The sapphire business has accumulated stable high-quality customer resources through over ten years of technological precipitation and excellent quality; the computing power comprehensive services business has established good cooperative relationships with multiple operators and leading generative AI enterprises through a tiered customer screening system[38](index=38&type=chunk)[39](index=39&type=chunk) [IV. Key Operating Performance During the Reporting Period](index=12&type=section&id=IV.%20Key%20Operating%20Performance%20During%20the%20Reporting%20Period) During the reporting period, the company's operating revenue increased by 10.12%, primarily driven by computing power comprehensive services. Operating costs increased with revenue, while sales and administrative expenses decreased. R&D expenses significantly rose due to increased investment in computing power. The company recognized substantial investment gains from subsidiary equity transfers, leading to a decrease in total assets. In terms of investments, the company established Wujie Zhisuan Co., Ltd. and made equity investments in several technology companies [(I) Main Business Analysis](index=12&type=section&id=(I)%20Main%20Business%20Analysis) The company's operating revenue increased by 10.12%, primarily due to the growth of computing power comprehensive services. Operating costs increased by 19.35% with revenue. Sales and administrative expenses decreased by 33.14% and 19.47% respectively, while R&D expenses increased by 60.27% due to increased investment in computing power. Investment income significantly increased by 1,086.01%, mainly from gains on subsidiary equity transfers 2025 Semi-Annual Financial Statement Related Item Fluctuation Analysis | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 219,355,779.72 | 199,191,036.16 | 10.12 | | Operating Cost | 198,269,515.39 | 166,122,582.95 | 19.35 | | Selling Expenses | 1,428,130.55 | 2,136,146.26 | -33.14 | | Administrative Expenses | 40,035,535.47 | 49,715,232.28 | -19.47 | | R&D Expenses | 12,056,280.30 | 7,522,449.83 | 60.27 | | Investment Income | 88,023,976.47 | 7,421,827.28 | 1,086.01 | | Net Cash Flow from Operating Activities | 35,999,102.55 | -72,977,936.38 | Not applicable | | Net Cash Flow from Investing Activities | -17,930,962.87 | -143,620,540.13 | Not applicable | | Net Cash Flow from Financing Activities | 3,716,939.68 | 191,948,627.12 | -98.06 | - Operating revenue increased by **10.12%** year-on-year, primarily driven by a significant increase in sales revenue from computing power comprehensive services[41](index=41&type=chunk) - R&D expenses increased by **4.53 million yuan** year-on-year, mainly due to increased expensed R&D investment in computing power comprehensive services in the current period[41](index=41&type=chunk) - Investment income increased by **80.60 million yuan** year-on-year, mainly due to the company's transfer of subsidiary equity in the current period, recognizing equity transfer gains[41](index=41&type=chunk) - During the reporting period, the company's computing power comprehensive services business generated stable revenue, accounting for approximately **52.31%** of total revenue[42](index=42&type=chunk) [(II) Explanation of Significant Profit Changes Due to Non-Core Business](index=13&type=section&id=(II)%20Explanation%20of%20Significant%20Profit%20Changes%20Due%20to%20Non-Core%20Business) The significant profit change this period primarily stemmed from non-core business, as the company recognized 76.76 million yuan in equity transfer gains from divesting Autumn Crown Optoelectronics (including its subsidiaries) and Aurora Optoelectronics (Zhengzhou) - The company transferred its equity in Autumn Crown Optoelectronics (including its subsidiaries) and Aurora Optoelectronics (Zhengzhou), recognizing equity transfer gains of **76.76 million yuan**, leading to significant changes in non-core business profit for the current period[43](index=43&type=chunk) [(III) Analysis of Assets and Liabilities](index=14&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's total assets decreased by 8.72%, mainly because assets related to transferred subsidiaries were no longer consolidated. Bills receivable, financing receivables, prepayments, other receivables, short-term borrowings, bills payable, contract liabilities, other payables, other current liabilities, and deferred income all significantly decreased due to subsidiary equity transfers or reduced operating activities. Other non-current financial assets and accounts receivable increased 2025 Semi-Annual Asset and Liability Fluctuation | Item Name | Current Period End Amount (yuan) | Prior Year End Amount (yuan) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Bills Receivable | 23,514,374.88 | 44,239,457.50 | -46.85 | Decrease in balance of non-large bank acceptance bills | | Accounts Receivable | 227,565,758.23 | 164,876,543.53 | 38.02 | Increase in operating revenue | | Financing Receivables | 3,646,093.56 | 16,795,503.70 | -78.29 | Decrease in balance of large bank acceptance bills | | Prepayments | 3,807,659.45 | 10,218,889.52 | -62.74 | Decrease in prepayments to suppliers | | Other Receivables | 17,821,390.06 | 37,445,713.82 | -52.41 | Decrease in intercompany balances | | Other Non-Current Financial Assets | 23,000,000.00 | 15,000,000.00 | 53.33 | Increase in external equity investments | | Short-Term Borrowings | 19,277,173.66 | 35,424,077.90 | -45.58 | Disposal of subsidiary equity, related liabilities no longer consolidated | | Bills Payable | - | 7,131,409.24 | -100.00 | No outstanding bank acceptance bills at period-end | | Contract Liabilities | 13,869,380.83 | 26,904,021.38 | -48.45 | Disposal of subsidiary equity, related liabilities no longer consolidated | | Other Payables | 23,879,533.71 | 42,094,161.96 | -43.27 | Disposal of subsidiary equity, related liabilities no longer consolidated | | Other Current Liabilities | 14,079,118.56 | 31,119,600.19 | -54.76 | Decrease in endorsed but unexpired bills | | Deferred Income | 86,556,630.76 | 133,950,532.12 | -35.38 | Disposal of subsidiary equity, related liabilities no longer consolidated | - As of the end of the reporting period, the company's major restricted assets included monetary funds, fixed assets, intangible assets, and some other non-current assets, totaling **500 million yuan** in book value, primarily restricted for guarantees, freezing, loan collateral, and time deposit pledges[45](index=45&type=chunk) [(IV) Investment Status Analysis](index=15&type=section&id=(IV)%20Investment%20Status%20Analysis) During the reporting period, the company established Wujie Zhisuan Co., Ltd. in Hong Kong with a subscribed capital of 10 million USD, focusing on computing power comprehensive services. Additionally, the company increased capital in Chongqing Dongshengan Technology Development Co., Ltd. and Beijing Suanchang Technology Co., Ltd. to expand into information transmission, software and information technology services, and scientific research and technical services - The company invested and established Wujie Zhisuan Co., Ltd. in Hong Kong, with a subscribed capital of **10 million USD**, primarily engaged in computing power comprehensive services, and not yet formally operational as of the end of the reporting period[46](index=46&type=chunk)[48](index=48&type=chunk) - The company has paid an investment of **3 million yuan** to Chongqing Dongshengan Technology Development Co., Ltd., with a planned total investment of **30 million yuan**, after which it will hold **16.67%** equity[47](index=47&type=chunk) - The company increased its capital in Beijing Suanchang Technology Co., Ltd. by **20 million yuan**, holding **23.81%** equity, primarily engaged in scientific research and technical services[48](index=48&type=chunk) [(V) Significant Asset and Equity Sales](index=17&type=section&id=(V)%20Significant%20Asset%20and%20Equity%20Sales) The company completed the transfer of 100% equity in Aurora Optoelectronics (Zhengzhou) and Harbin Autumn Crown Optoelectronics for 2,000 yuan and 1 yuan, respectively. Following these transfers, Aurora Optoelectronics (Zhengzhou), Autumn Crown Optoelectronics, and their subsidiaries will no longer be included in the company's consolidated financial statements - The company transferred its **100%** equity in Aurora Optoelectronics (Zhengzhou) for a consideration of **2,000 yuan** to Shangqiu Yaoqian Construction Engineering Co., Ltd[49](index=49&type=chunk) - The company's wholly-owned subsidiary, Aurora Limited, transferred its **100%** equity in Harbin Autumn Crown Optoelectronics for a consideration of **1 yuan** to Shangqiu Yaoqian Construction Engineering Co., Ltd[49](index=49&type=chunk) - Upon completion of the equity transfers, Aurora Optoelectronics (Zhengzhou), Autumn Crown Optoelectronics, and their subsidiaries will no longer be included in the company's consolidated financial statements[49](index=49&type=chunk) [(VI) Analysis of Major Holding and Associate Companies](index=17&type=section&id=(VI)%20Analysis%20of%20Major%20Holding%20and%20Associate%20Companies) The company's major subsidiaries include Aurora Limited, Beijing Zhisuanneng, Shenzhen Zhisuanneng, and Harbin Zhigui, with businesses spanning sapphire crystal materials, semiconductor substrates, optoelectronic materials, and computing power comprehensive services. During the reporting period, the company generated 76.76 million yuan in investment income by selling equity in Aurora Optoelectronics (Zhengzhou) and Harbin Autumn Crown Optoelectronics, optimizing its consolidation scope Major Subsidiary Financial Information (2025 Semi-Annual) | Company Name | Company Type | Main Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Aurora Limited | Subsidiary | Production and sales of sapphire crystal materials, semiconductor substrate wafers, etc. | 1,175,999,984.00 | 529,462,453.93 | -367,260,630.95 | 85,914,306.81 | 6,503,332.66 | | Beijing Zhisuanneng | Subsidiary | Technical services, software development, cloud computing equipment technical services, etc. | 120,000,000.00 | 374,946,761.79 | 99,608,371.10 | 34,398,844.07 | 1,397,202.28 | | Shenzhen Zhisuanneng | Subsidiary | Technical services, software development, cloud computing equipment technical services, etc. | 120,000,000.00 | 237,560,510.64 | 129,268,122.45 | 23,626,415.04 | 4,502,307.88 | | Harbin Zhigui | Subsidiary | Optoelectronic device manufacturing, electronic component manufacturing, semiconductor lighting device manufacturing, etc. | 30,000,000.00 | 161,407,942.05 | 4,711,119.81 | 60,889,914.93 | -7,889,089.90 | - During the reporting period, the company sold equity in Aurora Optoelectronics (Zhengzhou) Investment Management Co., Ltd. and Harbin Autumn Crown Optoelectronics Technology Co., Ltd., which had no significant impact on overall production and operations but generated **76.76 million yuan** in investment income[55](index=55&type=chunk) [V. Other Disclosure Matters](index=20&type=section&id=V.%20Other%20Disclosure%20Matters) The company faces risks from intensified market competition and squeezed profit margins in its sapphire business, as well as operational, industry competition, and talent management risks in its computing power comprehensive services. Additionally, financial risks include increased accounts receivable and bad debt risk, and new business investment risks. The company has formulated corresponding countermeasures, such as consolidating technological barriers, cost reduction and efficiency improvement, strengthening cooperation, optimizing talent allocation, and enhancing risk assessment [(I) Potential Risks](index=20&type=section&id=(I)%20Potential%20Risks) The company faces risks from intensified market competition and squeezed profit margins in its sapphire business, operational, industry competition, and talent management risks in its computing power comprehensive services, and financial risks from accounts receivable and new business investments. The company has implemented various countermeasures, including technological upgrades, cost control, strategic partnerships, talent acquisition, and risk assessment - The sapphire business faces risks of intensified market competition and squeezed profit margins; the company will respond by consolidating technological barriers, reducing costs and increasing efficiency, and seeking cooperation in regions with energy advantages[56](index=56&type=chunk)[57](index=57&type=chunk) - The computing power comprehensive services business faces operational risks from heavy asset investment, intensified industry competition, and insufficient professional talent development and management experience; the company will respond by strengthening operator cooperation, increasing R&D investment, optimizing decision-making processes, and attracting excellent talent[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - Financial risks include increased accounts receivable and the risk of bad debts (book value of **228 million yuan** at period-end) and new business investment risks; the company will strengthen accounts receivable management, optimize its credit management system, and strictly adhere to risk control principles for investment evaluation[59](index=59&type=chunk)[60](index=60&type=chunk) Section IV Corporate Governance, Environment, and Society [I. Changes in Directors, Supervisors, and Senior Management](index=23&type=section&id=I.%20Changes%20in%20Directors,%20Supervisors,%20and%20Senior%20Management) On January 20, 2025, the company's extraordinary general meeting elected Mr. Wang Xiaohui as a director of the Tenth Board of Directors, which was the only change in directors, supervisors, and senior management during the reporting period - On January 20, 2025, Mr. Wang Xiaohui was elected as a director of the company's Tenth Board of Directors[63](index=63&type=chunk) [II. Profit Distribution or Capital Reserve Conversion Plan](index=23&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company's Board of Directors resolved that there will be no profit distribution or capital reserve conversion plan for this semi-annual period - The proposed profit distribution plan or capital reserve conversion plan for this semi-annual period is "none"[64](index=64&type=chunk) [III. Status and Impact of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=23&type=section&id=III.%20Status%20and%20Impact%20of%20Equity%20Incentive%20Plans,%20Employee%20Stock%20Ownership%20Plans,%20or%20Other%20Employee%20Incentive%20Measures) During the reporting period, the company had no disclosed equity incentive matters with no subsequent progress or changes, nor any other disclosed or progressing equity incentive, employee stock ownership plans, or other incentive measures - During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures[65](index=65&type=chunk) Section V Significant Matters [I. Fulfillment of Commitments](index=25&type=section&id=I.%20Fulfillment%20of%20Commitments) The company's actual controllers, former controlling shareholders Zuo Hongbo and Chu Shuxia, and their concerted parties, failed to strictly fulfill profit forecast compensation and share lock-up commitments, primarily due to their shares being frozen and judicially auctioned. Other related parties and the listed company strictly fulfilled commitments regarding related party transactions and dividend distribution - Former controlling shareholders Zuo Hongbo, Chu Shuxia, and their concerted parties failed to timely fulfill their profit forecast compensation obligations, mainly because their shares in the company were frozen and judicially auctioned; the company has applied to the court for compulsory enforcement to recover the losses[68](index=68&type=chunk) - The share lock-up commitments of Zuo Hongbo, Chu Shuxia, and their concerted parties were not strictly fulfilled due to their shares being judicially auctioned[68](index=68&type=chunk)[69](index=69&type=chunk) - Qingdao Zhisuanneng committed not to transfer or entrust others to manage its directly and indirectly held company shares for **36 months** from the date of acquiring the shares, and this commitment is being strictly fulfilled[71](index=71&type=chunk) - The company and its related parties strictly fulfilled commitments regarding resolving related party transactions and dividend distribution, including reducing and standardizing related party transactions, adhering to market principles, and distributing cash dividends of no less than **10%** of the distributable profit for the year[70](index=70&type=chunk)[71](index=71&type=chunk) [VII. Significant Litigation and Arbitration Matters](index=29&type=section&id=VII.%20Significant%20Litigation%20and%20Arbitration%20Matters) The company is involved in multiple significant litigation and arbitration matters, including power supply contract disputes and loan contract disputes related to Qitaihe Aurora, which has entered bankruptcy liquidation. Beijing Zhisuanneng's lawsuit with Inspur Communication Information System (Tianjin) Co., Ltd. was settled and fulfilled, and its technical service contract dispute with Beijing UCloud Technology Co., Ltd. resulted in a first-instance judgment in the company's favor, though the opponent has appealed. Aurora Limited's sales contract dispute with Anhui Jinlonghao Optoelectronics Technology Co., Ltd. was upheld in the second instance, with the company prevailing - Qitaihe Aurora is involved in multiple power supply contract disputes and loan contract disputes, and entered bankruptcy liquidation proceedings on June 20, 2025; related debt disputes will be resolved within the bankruptcy liquidation process[73](index=73&type=chunk) - Beijing Zhisuanneng's civil lawsuit with Inspur Communication Information System (Tianjin) Co., Ltd. was resolved through settlement, with Inspur Tianjin returning a prepayment of **18.75 million yuan** and corresponding capital occupation fees[75](index=75&type=chunk) - Beijing Zhisuanneng's technical service contract dispute with Beijing UCloud Technology Co., Ltd. resulted in a first-instance judgment in the company's favor, ordering Beijing UCloud to pay service fees of **6.12 million yuan** and liquidated damages, totaling **10.52 million yuan**, with the opponent having appealed[75](index=75&type=chunk) - Aurora Limited's sales contract dispute with Anhui Jinlonghao Optoelectronics Technology Co., Ltd. was upheld in the second instance, ordering Jinlonghao Optoelectronics to pay goods outstanding of **16.99 million yuan** plus interest[75](index=75&type=chunk) [X. Significant Related Party Transactions](index=31&type=section&id=X.%20Significant%20Related%20Party%20Transactions) The company has ongoing related party transactions with Xinjiang Kerong Yunsan Digital Technology Co., Ltd. for exclusive computing cluster services, with actual transactions amounting to 58.31 million yuan this period, not exceeding the approved limit. There were no other significant related party transactions during the reporting period - The company's wholly-owned subsidiary, Beijing Zhisuanneng, provides computing power technical services to Beijing Zhongke Ronghe Computing Power Technology Co., Ltd., which has been approved by the Board of Directors[77](index=77&type=chunk) - The company procures exclusive computing cluster services from related party Xinjiang Kerong Yunsan, with actual transactions (including tax) amounting to **58.31 million yuan** in the current period, not exceeding the approved transaction limit of **150 million yuan**[78](index=78&type=chunk) [XI. Significant Contracts and Their Performance](index=32&type=section&id=XI.%20Significant%20Contracts%20and%20Their%20Performance) The company provided a joint liability guarantee of 120.90 million yuan for its joint venture, Xinjiang Kerong Yunsan Digital Technology Co., Ltd., secured by real estate, land, machinery, and time deposits. Additionally, the company's total guarantee balance for subsidiaries is 413.28 million yuan, representing 59.33% of its net assets, with 413.28 million yuan provided for guaranteed entities with a debt-to-asset ratio exceeding 70% Company External Guarantees (Excluding Guarantees for Subsidiaries) | Guaranteed Party | Guarantee Amount (10,000 yuan) | Guarantee Start Date | Guarantee End Date | Guarantee Type | Main Debt Status | Collateral (if any) | Is Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Kerong Yunsan | 12,090.00 | December 16, 2024 | August 7, 2030 | Joint and several liability guarantee | China Development Bank Xinjiang Branch loan of 300 million yuan | Servers, real estate, land mortgage; margin pledge guarantee | No | Company Total Guarantee Status (Including Guarantees for Subsidiaries) | Indicator | Amount (10,000 yuan) | | :--- | :--- | | Total Guarantee Balance for Subsidiaries at Period-End (B) | 41,328.44 | | Total Guarantee Amount (A+B) | 53,418.44 | | Ratio of Total Guarantee Amount to Company Net Assets (%) | 59.33 | | Debt Guarantee Amount Provided Directly or Indirectly for Guaranteed Parties with Debt-to-Asset Ratio Exceeding 70% (D) | 41,328.44 | | Amount of Total Guarantee Exceeding 50% of Net Assets (E) | 8,401.49 | | Total of the Above Three Guarantee Amounts (C+D+E) | 49,729.93 | Section VI Share Changes and Shareholder Information [I. Changes in Share Capital](index=34&type=section&id=I.%20Changes%20in%20Share%20Capital) During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[85](index=85&type=chunk) [II. Shareholder Information](index=34&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had 133,764 common shareholders. Among the top ten shareholders, Qingdao Zhisuanneng Information Industry Development Partnership (Limited Partnership) is the largest shareholder, holding 13.02%. The shares held by former controlling shareholders Chu Shuxia and Zuo Hongbo remain pledged and frozen, with unfulfilled lock-up conditions - As of the end of the reporting period, the company had **133,764** common shareholders[86](index=86&type=chunk) Top Ten Shareholders' Shareholding as of the End of the Reporting Period | Shareholder Name | Number of Shares Held at Period-End (shares) | Percentage (%) | Number of Restricted Shares Held (shares) | Pledged, Marked, or Frozen Status (number) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | | Qingdao Zhisuanneng Information Industry Development Partnership (Limited Partnership) | 359,781,840 | 13.02 | 0 | Unknown 0 | Other | | Chu Shuxia | 151,152,000 | 5.47 | 151,152,000 | Pledged, Frozen 151,152,000 | Domestic Natural Person | | Gongqingcheng Kunshun Venture Capital Partnership (Limited Partnership) | 147,480,900 | 5.34 | 0 | Unknown 0 | Other | | Zuo Hongbo | 84,271,715 | 3.05 | 74,271,715 | Pledged, Frozen 84,271,715 | Domestic Natural Person | | Zhoushan Fuyixing Enterprise Management Partnership (Limited Partnership) | 39,682,539 | 1.44 | 0 | Unknown 0 | Other | | Jiangsu Gaotou Growth Value Equity Investment Partnership (Limited Partnership) | 33,883,683 | 1.23 | 33,883,683 | Unknown 0 | Other | | Harbin Venture Capital Group Co., Ltd. | 22,400,000 | 0.81 | 0 | Unknown 0 | State-owned Legal Person | | Xie Kaihua | 19,200,000 | 0.69 | 19,200,000 | Frozen 19,200,000 | Domestic Natural Person | | Wang Zhisheng | 16,907,500 | 0.61 | 0 | Unknown 0 | Domestic Natural Person | | Shenzhen Ruiying Value Venture Capital Partnership (Limited Partnership) | 14,718,896 | 0.53 | 14,718,896 | Unknown 0 | Other | - Zuo Hongbo, Chu Shuxia, and their concerted parties have issued a letter of commitment to waive voting rights, effective from the date their combined equity interest in the listed company falls below that of Qingdao Zhisuanneng[90](index=90&type=chunk) - The lock-up period for shares held by several restricted shareholders extends until the fulfillment of performance compensation obligations under the "Profit Forecast Compensation Agreement," which has not yet been fully fulfilled as of the report disclosure date[92](index=92&type=chunk)[94](index=94&type=chunk) Section VII Bond-Related Information [I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=38&type=section&id=I.%20Corporate%20Bonds%20(Including%20Enterprise%20Bonds)%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[97](index=97&type=chunk) [II. Convertible Corporate Bonds](index=38&type=section&id=II.%20Convertible%20Corporate%20Bonds) During the reporting period, the company had no convertible corporate bonds - The company has no convertible corporate bonds[97](index=97&type=chunk) Section VIII Financial Report [I. Audit Report](index=39&type=section&id=I.%20Audit%20Report) This semi-annual report has not been audited - This semi-annual report has not been audited[5](index=5&type=chunk)[99](index=99&type=chunk) [II. Financial Statements](index=39&type=section&id=II.%20Financial%20Statements) This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2025, comprehensively presenting the company's financial position, operating results, and cash flow. The consolidated statements show total assets of 1.66 billion yuan, net assets attributable to parent company of 900.34 million yuan, and net profit of 61.39 million yuan Consolidated Balance Sheet (June 30, 2025) | Item | June 30, 2025 (yuan) | December 31, 2024 (yuan) | | :--- | :--- | :--- | | Total Current Assets | 547,896,112.94 | 542,599,042.82 | | Total Non-Current Assets | 1,114,734,002.40 | 1,278,795,471.34 | | Total Assets | 1,662,630,115.34 | 1,821,394,514.16 | | Total Current Liabilities | 350,243,070.86 | 433,879,684.51 | | Total Non-Current Liabilities | 403,333,752.03 | 537,503,552.24 | | Total Liabilities | 753,576,822.89 | 971,383,236.75 | | Total Owners' Equity Attributable to Parent Company | 900,338,986.08 | 838,945,173.64 | | Minority Interests | 8,714,306.37 | 11,066,103.77 | | Total Owners' Equity | 909,053,292.45 | 850,011,277.41 | | Total Liabilities and Owners' Equity | 1,662,630,115.34 | 1,821,394,514.16 | Consolidated Income Statement (Jan-Jun 2025) | Item | 2025 Semi-Annual (yuan) | 2024 Semi-Annual (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 219,355,779.72 | 199,191,036.16 | | Total Operating Costs | 254,086,867.71 | 227,699,591.78 | | Operating Profit | 58,837,005.85 | -6,687,055.75 | | Total Profit | 59,271,295.02 | -7,276,840.73 | | Net Profit | 59,042,015.04 | -6,836,138.04 | | Net Profit Attributable to Parent Company Shareholders | 61,393,812.44 | -5,277,902.98 | | Minority Interest Income/Loss | -2,351,797.40 | -1,558,235.06 | | Basic Earnings Per Share (yuan/share) | 0.0225 | -0.0019 | | Diluted Earnings Per Share (yuan/share) | 0.0225 | -0.0019 | Consolidated Cash Flow Statement (Jan-Jun 2025) | Item | 2025 Semi-Annual (yuan) | 2024 Semi-Annual (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 35,999,102.55 | -72,977,936.38 | | Net Cash Flow from Investing Activities | -17,930,962.87 | -143,620,540.13 | | Net Cash Flow from Financing Activities | 3,716,939.68 | 191,948,627.12 | | Net Increase in Cash and Cash Equivalents | 21,787,487.91 | -24,649,849.39 | [III. Company Basic Information](index=64&type=section&id=III.%20Company%20Basic%20Information) Aurora Optoelectronics Co., Ltd., formerly Southwest Pharmaceutical Co., Ltd., underwent multiple capital changes and asset restructurings. As of June 30, 2025, the company's total share capital was 2,763,512,843.00 shares. Its registered and head office addresses are in Songbei District, Harbin, with main businesses covering sapphire and intelligent computing - The company, formerly Southwest Pharmaceutical Co., Ltd., changed its name to Aurora Optoelectronics Co., Ltd. in 2015[134](index=134&type=chunk) - The company's share capital has undergone multiple issuances and transfers, with a total issued share capital of **2,763,512,843.00 shares** as of June 30, 2025[134](index=134&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk) - The company's registered and head office addresses are both located at 5th Floor, Building 2, Block A, Innovation Headquarters, Shenzhen (Harbin) Industrial Park, No. 288 Zhigu Street, Songbei District, Harbin[136](index=136&type=chunk) - The company's main businesses include the R&D, production, and sales of sapphire crystal materials, sapphire crystal growth special equipment, and sapphire products, as well as computing power services (computing power cluster construction, operation, and maintenance)[136](index=136&type=chunk) [IV. Basis of Financial Statement Preparation](index=65&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and CSRC information disclosure regulations. Accounting is based on the accrual method, measured at historical cost except for financial instruments, with provisions for asset impairment. Management believes there are no significant uncertainties regarding the company's ability to continue as a going concern for the next 12 months - The company's financial statements are prepared on a going concern basis, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and "Compilation Rules for Information Disclosure by Companies Issuing Securities No. 15 - General Provisions for Financial Reports" by the China Securities Regulatory Commission[137](index=137&type=chunk) - Accounting is based on the accrual method, and except for certain financial instruments, all items are measured at historical cost, with corresponding impairment provisions made[137](index=137&type=chunk) - Management believes there are no significant uncertainties regarding the company's ability to continue as a going concern for the **12 months** from the end of this reporting period[138](index=138&type=chunk) [V. Significant Accounting Policies and Estimates](index=65&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the significant accounting policies and estimates followed in preparing the company's financial statements, including business combinations, consolidated financial statements, cash and cash equivalents, foreign currency transactions, financial instruments, bills receivable, accounts receivable, inventories, contract assets, assets held for sale, long-term equity investments, fixed assets, construction in progress, borrowing costs, intangible assets, long-term deferred expenses, contract liabilities, employee compensation, provisions, revenue, contract costs, government grants, deferred income tax assets/liabilities, leases, fair value measurement, repurchased shares, and segment reporting - The company adheres to enterprise accounting standards to truthfully and completely reflect its financial position, operating results, and other information[139](index=139&type=chunk) - Detailed explanations are provided for the accounting treatment of business combinations under common control and non-common control, as well as the principles and methods for preparing consolidated financial statements[144](index=144&type=chunk)[145](index=145&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - The classification and measurement of financial assets (at amortized cost, fair value through other comprehensive income), impairment of financial instruments (expected credit loss model), and criteria for derecognition of financial assets transfers are elaborated[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) - The methods for accruing bad debt provisions for bills receivable, accounts receivable, and other receivables are clarified, including criteria for individual and portfolio accrual (aging portfolio) and expected credit loss rates[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk) - Inventory classification, valuation methods (weighted average method), inventory system (perpetual inventory system), and impairment provision standards (lower of cost or net realizable value) are specified[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk) - The accounting policies for revenue recognition and measurement are detailed, including conditions for recognizing revenue when customers obtain control of goods, and specific recognition methods for sales of goods and provision of computing power leasing services[236](index=236&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk) - The classification (asset-related/income-related), measurement, and accounting treatment methods for government grants, as well as the recognition principles and measurement methods for deferred income tax assets/liabilities, are explained[244](index=244&type=chunk)[245](index=245&type=chunk)[246](index=246&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[250](index=250&type=chunk) [VI. Taxation](index=92&type=section&id=VI.%20Taxation) The company's main taxes include VAT, education surcharges, local education surcharges, urban maintenance and construction tax, and corporate income tax. Harbin Aurora Optoelectronics Technology Co., Ltd. and Harbin Liuxia Optoelectronics Technology Co., Ltd., as high-tech enterprises, enjoy a preferential corporate income tax rate of 15% Major Tax Types and Rates | Tax Type | Tax Basis | Tax Rate (%) | | :--- | :--- | :--- | | Value-Added Tax | Taxable Value-Added Amount | 13.00, 9.00, 6.00 | | Education Surcharge | Amount of VAT and Consumption Tax Paid | 3.00 | | Local Education Surcharge | Amount of VAT and Consumption Tax Paid | 2.00 | | Urban Maintenance and Construction Tax | Amount of VAT and Consumption Tax Paid | 7.00, 5.00 | | Corporate Income Tax | Taxable Income | 25.00, 15.00 | - Harbin Aurora Optoelectronics Technology Co., Ltd. and Harbin Liuxia Optoelectronics Technology Co., Ltd., as high-tech enterprises, enjoy a preferential corporate income tax rate of **15%**[261](index=261&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=93&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes on various assets, liabilities, owners' equity, and profit/loss items in the consolidated financial statements. Key changes include decreases in bills receivable and financing receivables, an increase in accounts receivable, reversal of inventory impairment provisions, and reductions due to changes in consolidation scope. Fixed and intangible assets decreased due to subsidiary disposals. Short-term borrowings, bills payable, contract liabilities, other payables, and deferred income also significantly decreased due to changes in consolidation scope. Income statement item changes are primarily influenced by investment income (equity transfer gains) and increased R&D expenses Monetary Funds Composition (June 30, 2025) | Item | Period-End Balance (yuan) | | :--- | :--- | | Cash on Hand | 34,154.66 | | Bank Deposits | 142,524,061.29 | | Other Monetary Funds | 249.96 | | Total | 142,558,465.91 | - Bills receivable period-end balance was **23.51 million yuan**, a year-on-year decrease of **46.85%**, mainly due to a decrease in the balance of non-large bank acceptance bills[264](index=264&type=chunk)[270](index=270&type=chunk) - Accounts receivable period-end balance was **228 million yuan**, a year-on-year increase of **38.02%**, mainly due to increased operating revenue. Impairment provisions for the current period decreased by **94.90 million yuan** due to the disposal of subsidiaries[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk)[276](index=276&type=chunk)[277](index=277&type=chunk)[281](index=281&type=chunk)[282](index=282&type=chunk) - Inventory period-end book value was **67.34 million yuan**, with inventory impairment provisions decreasing by **71.49 million yuan** in the current period, mainly due to the disposal of subsidiary equity[306](index=306&type=chunk)[307](index=307&type=chunk)[308](index=308&type=chunk) - Fixed assets period-end book value was **626 million yuan**, with a decrease in book original value and accumulated depreciation due to the disposal of subsidiaries[319](index=319&type=chunk)[320](index=320&type=chunk)[321](index=321&type=chunk) - Intangible assets period-end book value was **67.78 million yuan**, with a decrease in book original value and accumulated amortization due to the disposal of subsidiaries[342](index=342&type=chunk)[343](index=343&type=chunk)[344](index=344&type=chunk) - Short-term borrowings period-end balance was **19.28 million yuan**, a year-on-year decrease of **45.58%**, mainly due to the disposal of subsidiary equity[360](index=360&type=chunk) - Bills payable period-end balance was **0**, compared to **7.13 million yuan** in the prior year, mainly because there were no outstanding bank acceptance bills at period-end[358](index=358&type=chunk) - Contract liabilities period-end balance was **13.87 million yuan**, a year-on-year decrease of **48.45%**, mainly due to the disposal of subsidiary equity[364](index=364&type=chunk) - Estimated liabilities period-end balance was **263 million yuan**, primarily for external guarantees, recognized due to Qitaihe Aurora's bankruptcy liquidation[383](index=383&type=chunk) - Operating revenue was **219 million yuan**, a year-on-year increase of **10.12%**; operating cost was **198 million yuan**, a year-on-year increase of **19.35%**[393](index=393&type=chunk) - Investment income was **88.02 million yuan**, a significant year-on-year increase of **1,086.01%**, mainly due to the recognition of gains from the disposal of subsidiary equity[405](index=405&type=chunk) - R&D expenses were **12.06 million yuan**, a year-on-year increase of **60.27%**, mainly due to increased expensed R&D investment in computing power comprehensive services[401](index=401&type=chunk) [VIII. Research and Development Expenses](index=149&type=section&id=VIII.%20Research%20and%20Development%20Expenses) During the reporting period, the company's total R&D expenditure was 13.53 million yuan, comprising 12.06 million yuan in expensed R&D and 1.48 million yuan in capitalized R&D. R&D investments primarily covered material costs, employee compensation, and depreciation of fixed assets. A significant capitalized R&D project, "Large-scale Expert Parallel Practice," is expected to be completed in September 2025, aiming to achieve commercial objectives and generate added value through technology R&D Expenses by Nature | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Material Costs | 2,097,821.58 | 2,069,850.80 | | Employee Compensation | 4,587,348.12 | 3,645,550.72 | | Depreciation of Fixed Assets | 5,499,193.92 | 823,549.51 | | Amortization of Intangible Assets | 100,827.59 | 118,731.42 | | Other | 1,246,844.71 | 864,767.38 | | Total | 13,532,035.92 | 7,522,449.83 | | Of which: Expensed R&D | 12,056,280.30 | 7,522,449.83 | | Capitalized R&D | 1,475,755.62 | - | - The significant capitalized R&D project is "Large-scale Expert Parallel Practice," which is in the development phase and expected to be completed in September 2025, aiming to achieve commercial objectives and generate added value through its utilization[434](index=434&type=chunk) [IX. Changes in Consolidation Scope](index=151&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company lost control over Harbin Autumn Crown Optoelectronics Technology Co., Ltd. and Aurora Optoelectronics (Zhengzhou) Investment Management Co., Ltd. by selling 100% of their equity, thus excluding them and their subsidiaries from the consolidated financial statements. Concurrently, the company established Wujie Zhisuan Co., Ltd. and included it in the consolidation scope - The company sold **100%** equity in Harbin Autumn Crown Optoelectronics Technology Co., Ltd. for a disposal price of **1.00 yuan**, losing control and no longer including it in the consolidated scope[438](index=438&type=chunk) - The company sold **100%** equity in Aurora Optoelectronics (Zhengzhou) Investment Management Co., Ltd. for a disposal price of **2,000.00 yuan**, losing control and no longer including it in the consolidated scope[438](index=438&type=chunk) - The company established Wujie Zhisuan Co., Ltd. and included it in the consolidated scope on May 2, 2025[439](index=439&type=chunk) [X. Interests in Other Entities](index=154&type=section&id=X.%20Interests%20in%20Other%20Entities) The company holds interests in several wholly-owned subsidiaries, including Harbin Aurora Optoelectronics Technology Co., Ltd., and non-wholly-owned subsidiaries like Harbin Liuxia Optoelectronics Technology Co., Ltd., where minority shareholders hold 49% and the current period's loss attributable to minority shareholders is -2.35 million yuan. The company also holds 40% equity in Xinjiang Kerong Yunsan Information Industry Development Partnership (Limited Partnership) and 0.5% direct and 39.80% indirect equity in Xinjiang Kerong Yunsan Digital Technology Co., Ltd., both accounted for using the equity method. The company provided a 120.90 million yuan financial guarantee for its joint venture Major Subsidiary Shareholding | Subsidiary Name | Shareholding Ratio (%) | | :--- | :--- | | Harbin Aurora Optoelectronics Technology Co., Ltd. | 100.00 (Direct) | | Shenzhen Zhisuanneng Digital Technology Co., Ltd. | 100.00 (Direct) | | Beijing Zhisuanneng Digital Technology Co., Ltd. | 100.00 (Direct) | | Harbin Zhigui Optoelectronics Technology Co., Ltd. | 100.00 (Direct) | | Computing Power Fusion (Shanghai) Digital Technology Co., Ltd. | 100.00 (Direct) | | Wujie Zhisuan Co., Ltd. | 100.00 (Direct) | | Harbin Liuxia Optoelectronics Technology Co., Ltd. | 51.00 (Indirect) | | Qitaihe Aurora Optoelectronics Technology Co., Ltd. | 100.00 (Indirect) | | Anhui Tanwei Suanyun Digital Technology Co., Ltd. | 100.00 (Indirect) | | Xinjiang Wujie Yunsan Digital Technology Co., Ltd. | 100.00 (Indirect) | Important Non-Wholly-Owned Subsidiary Financial Information (2025 Semi-Annual) | Subsidiary Name | Minority Shareholding Ratio (%) | Current Period Profit/Loss Attributable to Minority Shareholders (yuan) | Period-End Minority Interest Balance (yuan) | | :--- | :--- | :--- | :--- | | Harbin Liuxia Optoelectronics Technology Co., Ltd. | 49 | -2,351,797.40 | 8,714,306.37 | - The company holds **40%** equity in Xinjiang Kerong Yunsan Information Industry Development Partnership (Limited Partnership), and **0.5%** direct and **39.80%** indirect equity in Xinjiang Kerong Yunsan Digital Technology Co., Ltd., both accounted for using the equity method[447](index=447&type=chunk) - The company holds **23.81%** equity in Beijing Suanchang Technology Co., Ltd., but does not participate in its investment decisions and management, thus having no significant influence[447](index=447&type=chunk) - As of June 30, 2025, the company provided financial guarantees totaling **120.90 million yuan** for its joint venture[450](index=450&type=chunk) [XI. Government Grants](index=159&type=section&id=XI.%20Government%20Grants) During the reporting period, the company received total government grants of 4.64 million yuan, including 3.89 million yuan related to assets and 0.75 million yuan related to income. Major grant projects include infrastructure subsidies, large-size high-quality sapphire substrate industrialization base projects, and municipal funds for R&D investment Liability Items Involving Government Grants (Deferred Income) | Financial Statement Item | Beginning Balance (yuan) | New Grants in Current Period (yuan) | Transferred to Other Income in Current Period (yuan) | Other Changes in Current Period (yuan) | Ending Balance (yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Infrastructure Subsidies | 60,004,863.51 | - | 3,274,492.96 | 40,854,217.22 | 15,876,153.33 | Asset-related | | Sapphire LED New Material Industrial Park | 59,125,124.08 | - | - | 59,125,124.08 | - | Asset-related | | Large-Size High-Quality Sapphire Substrate Industrialization Base Project | 14,820,544.53 | - | 609,406.18 | 2,858,163.35 | 11,352,975.00 | Asset-related | | MES Manufacturing Execution System Project | - | 204,169.31 | 1,790.96 | - | 202,378.35 | Asset-related | | Total | 133,950,532.12 | 204,169.31 | 3,885,690.10 | 43,712,380.57 | 86,556,630.76 | / | Government Grants Recognized in Current Profit or Loss | Type | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Asset-related | 3,885,690.10 | 3,883,899.14 | | Income-related | 754,547.73 | 1,836,963.48 | | Total | 4,640,237.83 | 5,720,862.62 | - The "Current Period Decrease (Change in Consolidation Scope)" item in deferred income, amounting to **43.71 million yuan**, is due to the company's disposal of equity in Aurora Optoelectronics (Zhengzhou), Autumn Crown Optoelectronics, and their subsidiaries in the current year, which are no longer included in the consolidated balance sheet scope[384](index=384&type=chunk) [XII. Risks Related to Financial Instruments](index=160&type=section&id=XII.%20Risks%20Related%20to%20Financial%20Instruments) The company faces credit risk, liquidity risk, and market risk. Credit risk is managed through transactions with creditworthy counterparties, continuous monitoring of accounts receivable, and using aging analysis for impairment loss assessment. Liquidity risk is controlled by continuously monitoring funding needs and securing bank credit lines. Market risk, primarily interest rate risk, is managed by monitoring interest rate levels and adjusting the proportion of fixed/floating rate contracts - The company manages credit risk by formulating credit policies, evaluating customer creditworthiness, and continuously monitoring accounts receivable collection[455](index=455&type=chunk)[456](index=456&type=chunk) - The company uses aging analysis to assess impairment losses for accounts receivable and other receivables, and adjusts expected loss rates by considering forward-looking information[458](index=458&type=chunk) - As of June 30, 2025, accounts receivable fro