Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [4][6]. Core Insights - The company reported a significant increase in revenue and profit for the first half of 2025, with revenue reaching 1.113 billion yuan, up 14.71% year-on-year, and net profit attributable to shareholders at 55 million yuan, up 45.14% year-on-year [1][2]. - The growth in revenue is attributed to steady increases across various business segments, particularly in the air conditioning compressor sector [2]. - The company's gross margin for Q2 2025 was 20.03%, reflecting a year-on-year increase of 0.66 percentage points, while the net profit margin reached 5.59%, up 1.13 percentage points year-on-year [2]. Revenue and Profitability - In Q2 2025, the company achieved revenue of 571 million yuan, representing an 18.77% year-on-year increase and a 5.33% quarter-on-quarter increase [2]. - The sales of steering components reached 15.84 million units in H1 2025, up 15.26% year-on-year, while shock absorber components sold 21.60 million units, up 2.15% year-on-year [3]. - The company is expanding its production capacity for planetary roller screws, which are essential for automotive and emerging markets, indicating a strategic focus on future growth [3]. Financial Forecast - The company is projected to achieve revenues of 2.324 billion yuan in 2025, 3.090 billion yuan in 2026, and 4.452 billion yuan in 2027, with corresponding net profits of 117 million yuan, 191 million yuan, and 339 million yuan respectively [5][10]. - The earnings per share (EPS) are expected to grow from 0.35 yuan in 2025 to 1.00 yuan by 2027, with a price-to-earnings (PE) ratio decreasing from 125 in 2025 to 43 in 2027 [5][10].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance in the first half of 2025 met market expectations, with revenue of 1.113 billion yuan, a year-on-year increase of 14.71%, and a net profit of 55 million yuan, up 45.14% year-on-year [7] - The main business is experiencing steady growth, with a gross margin of 19.12% in the first half of 2025, slightly down from the previous year, but the second quarter showed an improvement with a gross margin of 20.03% [7] - The company is expanding its product offerings in the screw rod sector, which is expected to contribute to a second growth curve, particularly with the upcoming Tesla Gen3 model [7] - Effective control of period expenses has been noted, although cash flow is under short-term pressure [7] - The company forecasts a significant increase in net profit for 2025-2027, with expected growth rates of 70%, 66%, and 180% respectively [7] Financial Summary - Total revenue is projected to grow from 2.024 billion yuan in 2024 to 6.224 billion yuan in 2027, with a compound annual growth rate of 108.72% [1][8] - Net profit is expected to rise from 71 million yuan in 2024 to 565 million yuan in 2027, reflecting a strong growth trajectory [1][8] - The company's earnings per share (EPS) is projected to increase from 0.21 yuan in 2024 to 1.67 yuan in 2027 [1][8] - The price-to-earnings (P/E) ratio is expected to decrease from 204.67 in 2024 to 25.86 in 2027, indicating improved valuation over time [1][8]

Core Viewpoint - Beite Technology (603009) reported strong financial performance for the first half of 2025, with significant increases in revenue and net profit compared to the previous year, indicating robust business growth and operational efficiency [1]. Financial Performance - Total revenue for the first half of 2025 reached 1.113 billion yuan, a year-on-year increase of 14.71% [1]. - Net profit attributable to shareholders was 55 million yuan, up 45.14% year-on-year [1]. - In Q2 2025, total revenue was 571 million yuan, reflecting an 18.77% increase year-on-year, while net profit for the quarter was 31.94 million yuan, up 48.83% [1]. - Gross margin improved to 19.12%, a 5.37% increase from the previous year, while net margin rose to 5.13%, up 31.38% [1]. - The total of selling, administrative, and financial expenses was 88.07 million yuan, accounting for 7.91% of revenue, a decrease of 9.41% year-on-year [1]. Balance Sheet Highlights - Accounts receivable increased to 624 million yuan, a 13.58% rise, with accounts receivable to net profit ratio at 873.62% [1][18]. - Cash and cash equivalents decreased by 6.23% to 182 million yuan, attributed to increased financing [1][18]. - Interest-bearing liabilities rose to 958 million yuan, a 21.42% increase [1]. Cash Flow Analysis - Operating cash flow per share was 0.07 yuan, down 70.28% year-on-year, indicating a significant decline in cash generation from operations [1]. - Net cash flow from investing activities increased by 18.37%, while net cash flow from financing activities surged by 838.96%, reflecting a strong capital influx [13]. Business Operations - The increase in revenue was driven by steady growth across various business segments, particularly in the air conditioning compressor sector [7]. - Sales expenses rose by 15.3% due to increased promotional and service costs associated with business expansion [8]. - Management expenses increased by 15.42% in line with business growth [9]. Investment Insights - The company has a relatively low return on invested capital (ROIC) of 3.95%, indicating weak capital efficiency [17]. - The company is heavily reliant on research and development for its performance, necessitating close monitoring of cash flow and debt levels [18]. - Notable institutional interest includes increased holdings from prominent fund managers, indicating confidence in the company's growth potential [19].

Group 1 - The company reported a revenue of 1,113,211,428.03 yuan for the first half of 2025, representing a year-on-year growth of 14.71% [2] - The net profit attributable to shareholders of the listed company was 55,000,488.70 yuan, showing a year-on-year increase of 45.14% [2]

Group 1 - The core viewpoint of the report is that Beite Technology (603009.SH) is rated as a "Buy" due to its solid chassis business and rapid revenue growth in air conditioning compressors and aluminum alloy segments [2] - The company has shown significant cost reduction and efficiency improvement, with a year-on-year increase of 1.0 percentage points in net profit margin attributable to the parent company in the first half of the year [2] - Beite Technology is actively advancing the construction of its screw rod production line, indicating a focus on expanding its manufacturing capabilities [2]

Investment Rating - The report assigns a "Buy" rating to the company, indicating a potential upside of 15% to 35% [7][10]. Core Views - The company achieved a revenue of 1.11 billion RMB in H1 2025, representing a year-over-year increase of 14.7%, with a net profit of 60 million RMB, up 45.1% year-over-year [8][10]. - The growth in revenue is primarily driven by the air conditioning compressor business, which saw a significant increase in orders [10]. - The company is actively investing in the screw rod production line, with ongoing construction of a factory in Kunshan and plans for an international base in Thailand [10]. Summary by Sections Company Overview - The company operates in the automotive industry, with a current A-share price of 41.35 RMB and a market capitalization of approximately 13.99 billion RMB [2]. - Major shareholder is Jing Kun, holding 31.57% of shares [2]. Financial Performance - In Q2 2025, the company reported a revenue of 570 million RMB, a year-over-year increase of 18.8%, and a net profit of 30 million RMB, up 48.8% year-over-year [8][10]. - The gross profit margin improved to 19.1% in H1 2025, with a net profit margin of 4.94%, reflecting a year-over-year increase of 1.03 percentage points [10]. Business Segments - The revenue breakdown shows that the chassis components business contributed 710 million RMB (up 4.1% YoY), the air conditioning compressor business contributed 310 million RMB (up 42.1% YoY), and the aluminum lightweight business contributed 90 million RMB (up 35.0% YoY) [10]. Future Projections - The company forecasts net profits of 110 million RMB, 140 million RMB, and 180 million RMB for 2025, 2026, and 2027, respectively, with year-over-year growth rates of 48%, 33%, and 30% [10][12]. - The expected earnings per share (EPS) for the same years are projected to be 0.31 RMB, 0.42 RMB, and 0.54 RMB [10][12].

公司代码：603009 公司简称：北特科技 上海北特科技股份有限公司 第一节 重要提示 1.1本半年度报告摘要来自半年度报告全文，为全面了解本公司的经营成果、财务状况及未来发展规 划，投资者应当到上海证券交易所网站http://www.sse.com.cn/网站仔细阅读半年度报告全文。 1.2本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实性、准确性、完整 性，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 1.3公司全体董事出席董事会会议。 1.4本半年度报告未经审计。 1.5董事会决议通过的本报告期利润分配预案或公积金转增股本预案 无 第二节 公司基本情况 2.1公司简介 ■ 2.2主要财务数据 单位：元 币种：人民币 ■ 2.5控股股东或实际控制人变更情况 □适用 √不适用 2.6在半年度报告批准报出日存续的债券情况 □适用 √不适用 2.3前10名股东持股情况表 单位: 股 ■ 2.4截至报告期末的优先股股东总数、前10名优先股股东情况表 □适用 √不适用 第三节 重要事项 公司应当根据重要性原则，说明报告期内公司经营情况的重大变化，以及报告期内发生的对公司经 ...

Section 1: Important Notes - The semi-annual report summary is derived from the full semi-annual report, and investors are advised to read the complete report on the Shanghai Stock Exchange website for a comprehensive understanding of the company's operational results, financial status, and future development plans [1][1][1] - The company's board of directors, supervisory board, and senior management guarantee the authenticity, accuracy, and completeness of the semi-annual report, and there are no false records, misleading statements, or significant omissions [1][1][1] - All directors attended the board meeting [1] - The semi-annual report has not been audited [1] - There are no profit distribution plans or capital reserve conversion plans approved by the board during the reporting period [1] Section 2: Company Overview - Company profile and basic information are provided [2][2] - Key financial data is presented in RMB [2][2] - The top 10 shareholders' shareholding situation is detailed [2][2] - There are no applicable details regarding preferred shareholders or changes in controlling shareholders [2][2] - There are no applicable details regarding the existence of bonds as of the report approval date [2][2] Section 3: Important Matters - The company is required to disclose significant changes in operational conditions during the reporting period and any matters that have had or are expected to have a significant impact on the company's operations [3][3]

Group 1 - China Telecom reported a net profit of RMB 23.017 billion for the first half of 2025, an increase of 5.5% year-on-year [1] - The company's total operating revenue for the same period was RMB 269.42 billion, reflecting a year-on-year growth of 1.3% [1][2] - The net profit attributable to shareholders after excluding non-recurring gains and losses was RMB 21.721 billion, a slight increase of 0.2% year-on-year [1][2] Group 2 - Mobile communication service revenue reached RMB 106.6 billion, up 1.3% year-on-year, while fixed-line and smart home service revenue was RMB 64.1 billion, growing by 0.2% [3] - The number of mobile users increased to 433 million, and broadband users reached 199 million, with mobile ARPU at RMB 46 and broadband ARPU at RMB 48.3 [3] - Revenue from industrial digitalization was RMB 74.9 billion, with AIDC revenue growing by 7.4% [3] Group 3 - Xi'an Yicai's IPO on the Sci-Tech Innovation Board was approved, with projected revenue growth from RMB 1.055 billion in 2022 to RMB 2.121 billion in 2024, a compound annual growth rate of 41.83% [4] - Chipsea Technology plans to issue H-shares and list on the Hong Kong Stock Exchange to enhance its international strategy and diversify financing [5] - Shunhao Co. also announced plans to issue H-shares and list on the Hong Kong Stock Exchange to support business transformation and global strategy [6] Group 4 - Heertai reported a net profit of RMB 354 million for the first half of 2025, a year-on-year increase of 78.65% [7] - Yiyuan Communication's net profit surged by 125.03% to RMB 471 million, driven by core business improvements and diversification [8] - Jifeng Co. achieved a net profit of RMB 154 million, a significant increase of 189.51%, despite a revenue decline of 4.39% [9]

[Definitions](index=4&type=section&id=Section%201%20Definitions) This section defines professional terms and company-specific vocabulary used throughout the report - This section provides definitions for key professional terms and company-specific vocabulary, including company abbreviations, reporting period definitions, and core business products such as steering gears, shock absorbers, high-precision components, lightweight aluminum alloy components, air conditioning compressors, and integrated vehicle thermal management systems[10](index=10&type=chunk) [Company Profile and Key Financial Indicators](index=4&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section presents the company's basic information, key financial data, and details on non-recurring gains and losses [Company Information](index=4&type=section&id=Company%20Information) This section provides basic corporate information for Shanghai Beite Technology Co, Ltd, including its name, stock code, and contact details Corporate Profile | Item | Information | | :--- | :--- | | **Company Name** | Shanghai Beite Technology Co, Ltd (Beite Technology) | | **Stock Code** | 603009 (A-Share) | | **Listing Exchange** | Shanghai Stock Exchange | | **Legal Representative** | Jin Kun | | **Secretary of the Board** | Liu Gongyou | [Key Accounting Data and Financial Indicators](index=5&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved significant performance growth during the reporting period, though operating cash flow declined sharply Key Accounting Data | Key Accounting Data (RMB Yuan) | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 1,113,211,428.03 | 970,428,928.78 | 14.71% | | **Net Profit Attributable to Shareholders** | 55,000,488.70 | 37,895,895.35 | 45.14% | | **Net Profit Attributable to Shareholders (Non-recurring items deducted)** | 51,743,717.41 | 32,083,609.94 | 61.28% | | **Net Cash Flow from Operating Activities** | 25,081,167.18 | 89,417,226.72 | -71.95% | | **Total Assets** | 3,626,591,963.49 | 3,403,854,095.36 (Beginning of Period) | 6.54% (vs Beginning of Period) | Key Financial Ratios | Key Financial Ratios | Current Period (Jan-Jun) | Prior Year Period | Change | | :--- | :--- | :--- | :--- | | **Basic Earnings Per Share (Yuan/Share)** | 0.1625 | 0.1056 | Increased by 53.88% | | **Weighted Average Return on Equity (%)** | 3.3025 | 2.3335 | Increased by 0.97 percentage points | - Explanation for performance growth: - **Revenue Growth**: Primarily driven by steady growth across business segments, especially a significant increase in revenue from the air conditioning compressor business - **Net Profit Growth**: Profitability was enhanced by economies of scale from increased revenue, combined with internal cost reduction measures[19](index=19&type=chunk) [Non-recurring Profit and Loss Items and Amounts](index=6&type=section&id=Non-recurring%20Profit%20and%20Loss%20Items%20and%20Amounts) Non-recurring profit and loss for the period totaled RMB 3.26 million, primarily from government subsidies Breakdown of Non-recurring Items | Non-recurring Profit and Loss Item | Amount (RMB Yuan) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | -243,537.80 | | Government Subsidies Included in Current Profit/Loss | 4,715,540.65 | | Gain/Loss from Financial Assets and Liabilities | -278,104.90 | | Other Non-operating Income and Expenses | 180,479.39 | | **Total** | **3,256,771.29** | [Management Discussion and Analysis](index=7&type=section&id=Section%203%20Management%20Discussion%20and%20Analysis) This section reviews the company's business, operating performance, core competencies, and potential risks [Industry and Core Business Overview](index=7&type=section&id=Industry%20and%20Core%20Business%20Overview) The company operates in the auto parts industry, with business performance closely tied to the automotive market's strong growth in H1 2025 - In the first six months of 2025, China's auto production and sales reached 15.62 million and 15.65 million units, up **12.5% and 11.4% YoY**, respectively; new energy vehicle (NEV) sales grew by 40.3%, with a market penetration rate of **44.3%**[25](index=25&type=chunk) - The company's core business is divided into three main segments: - **Chassis Components**: Leading market position in sub-segments like steering gear racks and shock absorber piston rods - **Lightweight Aluminum Alloy**: Includes control arms and integrated valve blocks - **Air Conditioning Compressors**: Maintains a leading position in the commercial vehicle sector[26](index=26&type=chunk) - The company operates on a direct sales model, serving Tier 1 suppliers and OEMs, and follows a **produce-to-order** manufacturing model based on customer orders[27](index=27&type=chunk)[28](index=28&type=chunk) [Discussion and Analysis of Operations](index=10&type=section&id=Discussion%20and%20Analysis%20of%20Operations) The company advanced key initiatives in sales, R&D, capacity investment, and cost control, driving significant profit growth - Achieved operating revenue of **RMB 1.113 billion**, a YoY increase of **14.71%**, primarily driven by order fulfillment in the air conditioning compressor business[30](index=30&type=chunk) - Key R&D projects include the 40CC electric compressor and integrated thermal management systems, along with developing various screw products (planetary roller screws, ball screws) for applications like rear-wheel steering, smart braking, and humanoid robots; the company notes that the screw products industry is still in its early stages with market demand and mass production timelines remaining uncertain[31](index=31&type=chunk) - In terms of capacity investment, the company is steadily advancing the construction of its Kunshan factory and Thailand production base to meet the development needs of its screw and other businesses[32](index=32&type=chunk) - Through cost reduction and efficiency improvement measures such as supply chain optimization and enhanced internal management, the company achieved a net profit attributable to shareholders of **RMB 55.00 million**, a YoY increase of **45.14%**[33](index=33&type=chunk) [Core Competency Analysis](index=11&type=section&id=Core%20Competency%20Analysis) The company's core strengths lie in its strategic regional layout, leading market position, strong customer base, and advanced R&D capabilities - **Regional Layout Advantage**: Production facilities in key automotive industry hubs like Shanghai, Tianjin, Changchun, and Chongqing enable close proximity to customers, reducing logistics costs and facilitating JIT delivery[35](index=35&type=chunk) - **Industry Position Advantage**: Maintains a **dominant position** in the domestic sub-sectors of steering gear racks and shock absorber piston rods, and a long-standing leading position in commercial vehicle air conditioning compressors[35](index=35&type=chunk)[36](index=36&type=chunk) - **Customer Resource Advantage**: Serves a high-quality customer base including **BYD, ZF, Nexteer, Bosch, Foton Motor, and Sinotruk**, among other renowned domestic and international OEMs and Tier 1 suppliers[36](index=36&type=chunk)[37](index=37&type=chunk) - **R&D and Technology Advantage**: Possesses core processes like heat treatment and precision machining in chassis components; industry-leading aluminum forging technology in lightweighting; and an early-mover advantage with a comprehensive product line in electric compressors, with its fourth-generation products already in mass production[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) [Analysis of Key Operations](index=12&type=section&id=Analysis%20of%20Key%20Operations) This section analyzes operating results, asset and liability structure, and investment activities during the reporting period Core Business Analysis Revenue and costs grew in tandem, with cost growth below revenue growth, while financing costs decreased due to exchange gains Key Financial Statement Items | Item | Current Period (Yuan) | Prior Year Period (Yuan) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 1,113,211,428.03 | 970,428,928.78 | 14.71 | Growth in air conditioning compressor business | | **Operating Cost** | 900,320,435.53 | 794,300,982.25 | 13.35 | Cost increase was less than revenue increase due to scale effects and cost reduction | | **Finance Costs** | 6,989,674.63 | 14,473,781.29 | -51.71 | Exchange gains from the appreciation of the Euro | | **Net Cash Flow from Operating Activities** | 25,081,167.18 | 89,417,226.72 | -71.95 | Decrease in bill discounting compared to the prior year | | **Net Cash Flow from Financing Activities** | 106,802,829.92 | -14,453,176.88 | 838.96 | Increased financing to supplement working capital and for capital expenditures | Analysis of Assets and Liabilities Total assets grew, driven by increases in notes receivable financing and cash, while liabilities saw a rise in provisions and taxes payable Key Asset and Liability Changes | Item | Period-end Balance (Yuan) | Change vs Prior Year-end (%) | Primary Reason | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 182,355,194.24 | 21.66 | Increase in financing during the period | | Notes Receivable Financing | 217,368,643.99 | 194.02 | Increase in bills received due to business growth | | Construction in Progress | 300,375,135.52 | 15.88 | Investment in new business capacity and ongoing improvements | | Taxes Payable | 15,151,972.25 | 89.06 | Increase in income tax and VAT payable at period-end | | Provisions | 16,137,914.82 | 210.33 | Normal increase based on actual business and provisioning policies | - As of the end of the reporting period, the company's major restricted assets included **RMB 38.17 million** in cash for pledges, as well as fixed assets (book value **RMB 215 million**) and intangible assets (book value **RMB 61.54 million**) for mortgages[47](index=47&type=chunk) Investment Analysis The company advanced its Thailand production base and Kunshan screw project while establishing new subsidiaries and equity investments - To construct its Thailand production base, the company has established a wholly-owned subsidiary, Beite Singapore Investment, and a wholly-owned sub-subsidiary, Beite Singapore Technology, in Singapore, and has obtained the relevant overseas investment filings and certificates[49](index=49&type=chunk) - A new holding subsidiary, Shanghai Guangyu Zhiyuan Technology Trading Co, Ltd (55% stake), was established, and an equity investment was made in Suzhou Tianji Technology Co, Ltd (18% stake)[50](index=50&type=chunk) - The main construction of the Jiangsu Kunshan planetary roller screw R&D and production base project, with a total investment of **RMB 1.85 billion**, is currently underway[51](index=51&type=chunk) Analysis of Major Subsidiaries and Investees All major subsidiaries were profitable, with Chongqing Beite and Changchun Beite being the top contributors to the company's net profit Performance of Key Subsidiaries | Company Name | Operating Revenue (RMB 10,000) | Operating Profit (RMB 10,000) | Net Profit (RMB 10,000) | | :--- | :--- | :--- | :--- | | Tianjin Beite | 6,682.92 | 750.32 | 625.22 | | **Chongqing Beite** | **11,265.46** | **2,492.61** | **2,118.75** | | **Changchun Beite** | **5,691.31** | **1,404.51** | **1,220.69** | | **Jiangsu Beite** | **11,371.33** | **1,331.50** | **1,128.23** | [Other Disclosures](index=17&type=section&id=Other%20Disclosures) This section outlines key operational risks and reports on the execution of the "Quality and Efficiency Enhancement" action plan Potential Risks The company faces five primary risks related to the macro environment, market competition, supply chain, goodwill impairment, and new business uncertainties - The company faces the following key risks: - **Macroeconomic Risk**: The auto parts industry is susceptible to cyclical economic fluctuations - **Market Competition and Cost Pressure**: Faces dual pressures from OEM price reductions and rising raw material costs like steel and aluminum - **Global Economic Uncertainty**: International geopolitical issues and trade barriers could impact supply chains and transportation costs - **Goodwill Impairment Risk**: The book value of goodwill was **RMB 61.25 million** at period-end; if the performance of Shanghai Beite Guangyu falls short of expectations, there is a risk of impairment - **New Business Uncertainty Risk**: Screw products are targeted at emerging markets, with significant uncertainties in downstream customers, technical solutions, market demand, and mass production timelines; this business currently has no impact on the company's performance[56](index=56&type=chunk)[57](index=57&type=chunk) Execution of "Quality and Efficiency Enhancement with a Focus on Returns" Action Plan The company executed its action plan by focusing on core operations, increasing shareholder returns, and enhancing investor communication - On May 9, 2025, the company implemented its FY2024 profit distribution plan, paying a cash dividend of **RMB 28.77 million** (including tax), which accounted for **40.27%** of the FY2024 net profit attributable to shareholders[59](index=59&type=chunk) - The cumulative cash dividend for the 2022-2024 period was **RMB 63.92 million**, representing **113.98%** of the three-year average distributable net profit[59](index=59&type=chunk) - The company strengthened communication with investors through various online and offline channels, including earnings calls, institutional research meetings, brokerage strategy conferences, and responding to inquiries on the SSE E-interaction platform[60](index=60&type=chunk) [Corporate Governance, Environment, and Society](index=18&type=section&id=Section%204%20Corporate%20Governance,%20Environment,%20and%20Society) This section covers profit distribution plans, equity incentives, and environmental information disclosures [Profit Distribution Proposal](index=19&type=section&id=Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Proposal) The company does not plan to distribute profits or capitalize reserves for the first half of 2025 - The profit distribution proposal for the first half of 2025 is no distribution and no capitalization of reserves[64](index=64&type=chunk) [Equity Incentive Plan](index=19&type=section&id=Company%20Equity%20Incentive%20Plan) The company completed the cancellation of certain stock options under its 2022 incentive plan during the reporting period - On March 28, 2025, the Board of Directors and Supervisory Committee approved the cancellation of certain stock options under the 2022 Stock Option Incentive Plan, with the cancellation completed and announced on April 3[65](index=65&type=chunk) [Environmental Information](index=20&type=section&id=Environmental%20Information) Three of the company's subsidiaries are listed as enterprises required to disclose environmental information by law - Three of the company's entities have been included in the list of enterprises required to disclose environmental information by law, and a query index has been provided[67](index=67&type=chunk) [Significant Matters](index=21&type=section&id=Section%205%20Significant%20Matters) This section details the fulfillment of commitments, major contracts, and guarantee activities [Fulfillment of Commitments](index=21&type=section&id=Fulfillment%20of%20Commitments) Most commitments were fulfilled, with the company actively pursuing the remaining performance compensation related to the Shanghai Guangyu acquisition - The performance compensation commitment related to the acquisition of Shanghai Guangyu was not fully met, and the company has pursued recovery through litigation and negotiation; 15 obligors have fulfilled their obligations via court judgment, 17 have reached an agreement and repurchased most shares, and the company has won a first-instance judgment against the remaining obligor[69](index=69&type=chunk)[70](index=70&type=chunk) - Commitments made by the controlling shareholder, actual controller, directors, and senior management regarding the avoidance of horizontal competition, regulation of related-party transactions, share sale restrictions, and measures to mitigate the dilution of immediate returns from refinancing are all being strictly fulfilled[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) [Major Contracts and Guarantees](index=27&type=section&id=Major%20Contracts%20and%20Their%20Performance) The company provided no external guarantees, while its total guarantees for subsidiaries amounted to RMB 121.6 million Guarantee Summary | Guarantee Information (RMB Yuan) | Amount | | :--- | :--- | | Total Guarantees Provided to Subsidiaries During the Period | 9,800,000.00 | | Period-end Guarantee Balance for Subsidiaries (B) | 121,600,000.00 | | Total Guarantee Amount (A+B) | 121,600,000.00 | | Total Guarantee Amount as a Percentage of Net Assets (%) | 7.24 | | Guarantees for Parties with Asset-Liability Ratio >70% (D) | 61,600,000.00 | [Share Capital Changes and Shareholder Information](index=29&type=section&id=Section%206%20Share%20Capital%20Changes%20and%20Shareholder%20Information) This section provides details on the company's shareholder structure as of the end of the reporting period [Shareholder Information](index=29&type=section&id=Shareholder%20Information) The company had 38,079 shareholders, with the top two related parties collectively holding a 39.77% stake - As of the end of the reporting period, the total number of common shareholders was **38,079**[84](index=84&type=chunk) Top Shareholders | Shareholder Name | Period-end Shareholding (Shares) | Percentage (%) | | :--- | :--- | :--- | | Jin Kun | 106,884,100 | 31.57 | | Jin Xiaotang | 27,748,755 | 8.20 | | E Fund Advanced Manufacturing Select Mixed-Initiated Securities Investment Fund | 16,755,991 | 4.95 | | Penghua Carbon Neutral Themed Mixed Securities Investment Fund | 9,866,072 | 2.91 | | Wang Yi | 6,328,500 | 1.87 | - Jin Kun and Jin Xiaotang are father and son, constituting parties acting in concert[88](index=88&type=chunk) [Bond-related Matters](index=32&type=section&id=Section%207%20Bond-related%20Matters) This section confirms the absence of any outstanding corporate or convertible bonds [Corporate Bonds and Convertible Bonds](index=32&type=section&id=Corporate%20Bonds%20and%20Convertible%20Bonds) The company had no outstanding corporate bonds, enterprise bonds, debt financing instruments, or convertible bonds during the period - The company has no matters related to corporate bonds or convertible bonds to report[92](index=92&type=chunk) [Financial Report](index=33&type=section&id=Section%208%20Financial%20Report) This section presents the unaudited financial statements and provides detailed notes on accounting policies and key statement items [Financial Statements](index=33&type=section&id=Financial%20Statements) This section contains the unaudited consolidated and parent company financial statements for the first half of 2025 - This semi-annual report is **unaudited**[4](index=4&type=chunk) - The report provides consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity[94](index=94&type=chunk)[98](index=98&type=chunk)[102](index=102&type=chunk)[107](index=107&type=chunk)[113](index=113&type=chunk)[117](index=117&type=chunk) [Company Profile](index=49&type=section&id=Company%20Profile) This section details the company's history, from its founding in 2002 to its 2014 IPO and current corporate structure - The company was established in 2002 and was listed on the Shanghai Stock Exchange on July 18, 2014[122](index=122&type=chunk)[126](index=126&type=chunk) - The company operates in the automotive parts and accessories manufacturing industry, with the actual controller being Mr. Jin Kun and his concerted party, Mr. Jin Xiaotang[143](index=143&type=chunk)[144](index=144&type=chunk) - As of the first half of 2025, the company had a total of **16 subsidiaries** within its consolidation scope[146](index=146&type=chunk) [Significant Accounting Policies and Estimates](index=59&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) This section outlines the key accounting policies and estimates used in preparing the financial statements, including revenue recognition and R&D expenses - The financial statements are prepared on a going concern basis and in accordance with the requirements of Business Accounting Standards[147](index=147&type=chunk)[150](index=150&type=chunk) - **Revenue Recognition Principle**: Revenue is recognized when the customer obtains control of the related goods, distinguishing between performance obligations satisfied over time versus at a point in time; domestic sales are recognized upon receipt of customer settlement statements, while export sales are recognized upon shipment or arrival at the designated location based on terms like FOB, CIF, or DDP[258](index=258&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) - **R&D Expenditure**: Expenditures are classified into research and development phases; research-phase expenses are expensed as incurred, while development-phase expenses are capitalized when specific criteria are met[240](index=240&type=chunk)[242](index=242&type=chunk) [Notes to Consolidated Financial Statements](index=94&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed supplementary information on key items within the consolidated financial statements, such as receivables, inventory, and goodwill - The top five accounts receivable balances at period-end accounted for **38.20%** of the total balance, with bad debt provisions made based on an aging analysis[314](index=314&type=chunk) - The period-end book value of inventory was **RMB 490 million**, with an inventory write-down provision of **RMB 28.81 million** made, primarily for raw materials and finished goods[348](index=348&type=chunk)[350](index=350&type=chunk) - The period-end book value of construction in progress was **RMB 300 million**, mainly comprising equipment, molds, software installation, and the screw engineering project[368](index=368&type=chunk) - The original book value of goodwill was **RMB 258 million**, with accumulated impairment provisions of **RMB 197 million**, resulting in a period-end book value of **RMB 61.25 million**, all arising from the acquisition of Shanghai Guangyu[377](index=377&type=chunk)[379](index=379&type=chunk)