Definitions [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This chapter defines key terms and abbreviations used in the report, covering the company, reporting period, industry concepts, and major customers and related parties - The reporting period refers to the first half of **2025**, from **January 1, 2025, to June 30, 2025**[12](index=12&type=chunk) - The company's major customers include well-known consumer electronics and new energy industry manufacturers such as **ATL, LG Chem, Samsung Display, Lenovo, Chunqiu Electronics, CATL, REPT BATTERO, CALB, Lishen Battery, Lens Technology, OmniVision, SmartSens, and SeeYa Technology**[13](index=13&type=chunk) Company Profile and Key Financial Indicators [Company Information](index=5&type=section&id=I.%20Company%20Information) This section discloses the company's Chinese name, abbreviation, foreign name, acronym, and legal representative information - The company's Chinese name is **Suzhou Kechuan Electronic Technology Co., Ltd.**, abbreviated as **Kechuan Technology**[15](index=15&type=chunk) - The legal representative is **Zhu Chunhua**[15](index=15&type=chunk) [Contacts and Contact Information](index=5&type=section&id=II.%20Contacts%20and%20Contact%20Information) This section provides the names, contact addresses, phone numbers, fax numbers, and email addresses of the company's Board Secretary and Securities Affairs Representative - The Board Secretary is **Zhou Bo**, and the Securities Affairs Representative is **Fan Mengying**[16](index=16&type=chunk) - The company's contact address is **Room 5, No. 1 Zhipu Road, Qiandeng Town, Kunshan City**[16](index=16&type=chunk) [Brief Introduction to Changes in Basic Information](index=6&type=section&id=III.%20Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) This section introduces the company's registered and office addresses, along with historical changes - The company's registered and office addresses are both **Room 5, No. 1 Zhipu Road, Qiandeng Town, Kunshan City**[18](index=18&type=chunk) - The registered address was changed on **September 28, 2014**[18](index=18&type=chunk) [Brief Introduction to Changes in Information Disclosure and Document Custody Locations](index=6&type=section&id=IV.%20Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Custody%20Locations) This section lists the company's selected newspapers for information disclosure, the website address for the semi-annual report, and the report custody location - The company's information disclosure newspapers include **Shanghai Securities News, China Securities Journal, Securities Times, Securities Daily, and Economic Information Daily**[19](index=19&type=chunk) - The semi-annual report is published on **www.sse.com.cn**[19](index=19&type=chunk) [Brief Introduction to Company Stock](index=6&type=section&id=V.%20Brief%20Introduction%20to%20Company%20Stock) This section provides the company's stock type, listing exchange, abbreviation, and code - The company's stock is **A-shares**, listed on the **Shanghai Stock Exchange**, with stock abbreviation **Kechuan Technology** and code **603052**[20](index=20&type=chunk) [Key Accounting Data and Financial Indicators](index=6&type=section&id=VII.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This section details the company's key accounting data and financial indicators for H1 2025, explaining the reasons for revenue growth, profit decline, and decreased net operating cash flow Key Accounting Data for H1 2025 (Consolidated Statements) | Indicator | Current Period (Jan-Jun) | Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 419,537,150.19 CNY | 336,946,809.29 CNY | 24.51 | | Total Profit | 24,648,002.02 CNY | 36,530,914.08 CNY | -32.53 | | Net Profit Attributable to Shareholders of Listed Company | 25,210,639.95 CNY | 35,936,081.65 CNY | -29.85 | | Net Cash Flow from Operating Activities | 86,713,724.27 CNY | 137,125,734.05 CNY | -36.76 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 1,088,336,698.28 CNY | 1,116,055,789.80 CNY | -2.48 | | Total Assets (Period-end) | 1,617,773,981.40 CNY | 1,648,518,835.67 CNY | -1.86 | Key Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.14 | 0.19 | -26.32 | | Diluted Earnings Per Share (CNY/share) | 0.14 | 0.19 | -26.32 | | Basic EPS after Non-recurring Gains/Losses (CNY/share) | 0.12 | 0.14 | -14.29 | | Weighted Average Return on Net Assets (%) | 2.26 | 3.10 | -0.84 | | Weighted Average RONAN after Non-recurring Gains/Losses (%) | 1.97 | 2.33 | -0.36 | - Operating revenue increased by **24.51%**, primarily due to the recovery of the consumer electronics industry and increased shipments in the new energy sector[23](index=23&type=chunk) - Total profit and net profit decreased by **32.53%** and **29.85%** respectively, mainly due to a significant increase in depreciation expenses from the capitalization of fundraising projects, and higher upfront personnel and R&D costs for new projects (lithium battery new composite materials, laser gas sensors, and optical modules)[23](index=23&type=chunk) - Net cash flow from operating activities decreased by **36.76%**, primarily due to increased payments for supplier purchases and employee salaries[24](index=24&type=chunk) [Non-recurring Gains and Losses Items and Amounts](index=7&type=section&id=IX.%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section lists the specific non-recurring gains and losses items and their amounts for H1 2025, totaling **CNY 3,254,504.81** Non-recurring Gains and Losses Items for H1 2025 | Non-recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 1,446.33 | | Government Subsidies Recognized in Current Profit/Loss | 1,878,996.82 | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets/Liabilities Held by Non-financial Enterprises | 1,940,084.10 | | Other Non-operating Income and Expenses | -151,266.56 | | Other Gains/Losses Meeting the Definition of Non-recurring | 166,198.36 | | Less: Income Tax Impact | 580,954.24 | | **Total** | **3,254,504.81** | Management Discussion and Analysis [Description of the Company's Industry and Main Business Operations During the Reporting Period](index=9&type=section&id=I.%20Description%20of%20the%20Company%27s%20Industry%20and%20Main%20Business%20Operations%20During%20the%20Reporting%20Period) This section describes the company's industry (computer, communication, and other electronic equipment manufacturing), the functional components sector's overview, market size, competitive landscape, and the company's competitive position and main business model [Company's Industry Overview](index=9&type=section&id=%EF%BC%88I%EF%BC%89Company%27s%20Industry%20Overview) The company primarily designs, develops, produces, and sells functional components within the computer, communication, and other electronic equipment manufacturing industry, facing intense competition and high customer concentration - The company operates in the **Computer, Communication, and Other Electronic Equipment Manufacturing industry (C39)**[30](index=30&type=chunk) - Functional components are primarily used in **consumer electronics and new energy sectors**, serving as crucial auxiliary components for thinner, multi-functional end products[30](index=30&type=chunk) - The industry competitive landscape is becoming more concentrated, with leading enterprises gaining advantages through **technology, response speed, and customer resources**[31](index=31&type=chunk) - The company has become a **core supplier** to leading enterprises in functional components for **consumer electronics batteries, new energy batteries, and laptop computers**[32](index=32&type=chunk) [Description of Main Business Operations](index=9&type=section&id=%EF%BC%88II%EF%BC%89Description%20of%20Main%20Business%20Operations) The company's main business involves designing, developing, producing, and selling three categories of functional components (battery, structural, optical), utilizing a "production-to-order + procurement-to-production" model and direct sales - The company's main business products are categorized into **battery, structural, and optical functional components**[33](index=33&type=chunk) - The company possesses high-quality customer resources including **ATL, LG Chem, and CATL**, and is recognized as a **National High-tech Enterprise and a Specialized, Refined, Unique, and Innovative "Little Giant" Enterprise**[33](index=33&type=chunk) - The procurement model is **"production-to-order + procurement-to-production"**, the production model is **"production-to-order"**, with some products utilizing outsourced processing and procurement[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - The sales model is **direct sales**, providing comprehensive services and entering into framework agreements and orders with customers[35](index=35&type=chunk) [Discussion and Analysis of Operations](index=10&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) During the reporting period, operating revenue increased by **24.51%**, while net profit attributable to the parent company decreased by **29.85%**, as the company actively expanded into new semiconductor products, optimized capacity, advanced fundraising projects, and invested in new materials, technologies, high-speed optical modules, and laser sensors Operating Performance for H1 2025 | Indicator | Amount (CNY 10,000) | YoY Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 41,953.72 | 24.51 | | Net Profit Attributable to Shareholders of Listed Company | 2,521.06 | -29.85 | - Leveraging **CMOS chip protective films**, the company successfully expanded its customer base in the semiconductor sector, gradually achieving mass production and forming a product matrix of semiconductor functional components[36](index=36&type=chunk) - The fundraising project **"Functional Components Production Base Construction Project"** has gradually been put into use, with its implementation location changed to a new plot in **Qiandeng Town, Kunshan City**[36](index=36&type=chunk)[37](index=37&type=chunk) - Investment in the **lithium battery new composite materials project (Huai'an)** has completed the construction of its first phase main plant, with equipment currently undergoing debugging[37](index=37&type=chunk) - The wholly-owned subsidiary **Kechuan Photonics Technology (Suzhou) Co., Ltd.** was established to develop **400G/800G high-speed optical modules and laser sensor products**, having completed the construction of its first production line and the first batch of self-developed silicon photonics chip tape-out tests[37](index=37&type=chunk)[38](index=38&type=chunk) [Analysis of Core Competitiveness During the Reporting Period](index=11&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) The company's core competitiveness lies in six areas: high-quality and stable customer resources, core supplier status, excellent R&D and design capabilities, production and processing capabilities, stable product quality, and professional customer service - The company possesses **high-quality and stable customer resources**, mostly comprising industry leaders or well-known enterprises[39](index=39&type=chunk) - The company holds an **important position** among similar suppliers to major customers, earning their recognition[39](index=39&type=chunk) - Possesses **excellent R&D and design capabilities**, forming a collaborative R&D model with customers and deeply participating in front-end product design[40](index=40&type=chunk) - Has long-term accumulation and competitiveness in core areas such as **material compounding, mold development, and high-precision processing**[40](index=40&type=chunk) - Established a **comprehensive and effective quality control system and processes**, ensuring high product quality reliability[40](index=40&type=chunk) - Possesses a **sound and professional service system**, continuously improving customer satisfaction[40](index=40&type=chunk) [Key Operating Performance](index=12&type=section&id=IV.%20Key%20Operating%20Performance) This section analyzes the year-on-year changes and reasons for key financial statement items, including operating revenue, costs, various expenses, and net cash flow [Analysis of Main Business](index=12&type=section&id=%28I%29%20Analysis%20of%20Main%20Business) Operating revenue increased by **24.51%** due to consumer electronics recovery and increased new energy shipments, with operating costs rising **24.77%**, while sales expenses decreased by **12.70%**, management and R&D expenses increased by **58.79%** and **9.19%** respectively, and financial expenses decreased by **59.43%** Changes in Key Accounting Items for H1 2025 | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 419,537,150.19 | 336,946,809.29 | 24.51 | | Operating Cost | 345,418,752.85 | 276,842,049.20 | 24.77 | | Selling Expenses | 5,516,936.87 | 6,319,179.24 | -12.70 | | Administrative Expenses | 22,755,112.57 | 14,330,749.19 | 58.79 | | Financial Expenses | -1,496,433.28 | -3,688,248.32 | 59.43 | | R&D Expenses | 23,336,677.34 | 21,372,485.79 | 9.19 | | Net Cash Flow from Operating Activities | 86,713,724.27 | 137,125,734.05 | -36.76 | | Net Cash Flow from Investing Activities | -20,589,360.01 | 281,203,911.86 | -107.32 | | Net Cash Flow from Financing Activities | -71,522,937.50 | -95,689,232.11 | 25.25 | - The increase in operating revenue was primarily due to the **recovery of the consumer electronics industry and increased shipments in the new energy sector**[43](index=43&type=chunk) - The increase in administrative expenses was mainly due to **increased depreciation from the capitalization of fundraising projects, higher personnel costs and expenses in subsidiaries, and increased intermediary consulting fees**[44](index=44&type=chunk) - The increase in R&D expenses was mainly due to the company's new **composite aluminum foil project and optical module laser sensor project**, new R&D personnel recruitment, and increased R&D investment[44](index=44&type=chunk) - Net cash flow from investing activities significantly decreased by **107.32%**, primarily due to a substantial reduction in cash management amounts using idle raised funds[44](index=44&type=chunk) [Analysis of Assets and Liabilities](index=13&type=section&id=%28III%29%20Analysis%20of%20Assets%20and%20Liabilities) This section analyzes major changes in the company's period-end assets and liabilities, including the reasons for variations in financial assets held for trading, notes receivable financing, fixed assets, construction in progress, and other non-current assets Major Changes in Assets and Liabilities for H1 2025 | Item Name | Current Period-end Amount (CNY) | Current Period-end % of Total Assets | Prior Year-end Amount (CNY) | Prior Year-end % of Total Assets | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 60,239,636.82 | 3.72 | 112,827,684.32 | 6.84 | -46.61 | | Notes Receivable Financing | 62,685,056.63 | 3.87 | 95,309,461.83 | 5.78 | -34.23 | | Fixed Assets | 366,773,953.81 | 22.67 | 284,068,419.69 | 17.23 | 29.11 | | Construction in Progress | 158,286,225.67 | 9.78 | 82,010,947.23 | 4.97 | 93.01 | | Other Non-current Assets | 21,664,789.70 | 1.34 | 84,645,362.97 | 5.13 | -74.41 | - Financial assets held for trading decreased by **46.61%**, mainly due to increased investment in fundraising projects and new subsidiary projects, and a reduction in cash management amounts from idle funds[47](index=47&type=chunk) - Notes receivable financing decreased by **34.23%**, primarily due to lower discount rates for bank acceptance bills, leading the company to increase discounting[47](index=47&type=chunk) - Fixed assets increased by **29.11%**, mainly due to the capitalization of the main construction of fundraising projects upon acceptance[47](index=47&type=chunk) - Construction in progress increased by **93.01%**, primarily due to increased procurement for the lithium battery new composite materials project and optical module equipment[47](index=47&type=chunk) - Other non-current assets decreased by **74.41%**, mainly due to prepaid engineering and equipment costs being reclassified to construction in progress or fixed assets[47](index=47&type=chunk) Major Asset Restrictions as of the End of the Reporting Period | Item | Book Balance (CNY) | Book Value (CNY) | Restriction Status | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 280,000.00 | 280,000.00 | Letter of Guarantee Deposit | | Notes Receivable | 6,029,097.77 | 5,727,642.88 | Notes Receivable Endorsed or Discounted and Not Yet Due at Balance Sheet Date | | **Total** | **6,309,097.77** | **6,007,642.88** | | [Analysis of Investment Status](index=14&type=section&id=%28IV%29%20Analysis%20of%20Investment%20Status) This section discloses changes in financial assets measured at fair value, including bank structured deposits and single asset management plans Changes in Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (CNY) | Fair Value Change Gains/Losses for Current Period (CNY) | Amount Sold/Redeemed for Current Period (CNY) | Period-end Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading - Purchase of Bank Structured Deposits | 60,175,084.93 | -116,610.90 | 10,000,000.00 | 50,047,287.33 | | Financial Assets Held for Trading - Single Asset Management Plan | 52,652,599.39 | -2,213,816.78 | 40,000,000.00 | 10,192,349.49 | | Notes Receivable Financing | 95,309,461.83 | | | 62,685,056.63 | | **Total** | **208,137,146.15** | **-2,330,427.68** | **50,000,000.00** | **122,924,693.45** | - The single asset management plan has a **risk level of R4**, with underlying assets entirely invested in **money market funds**[51](index=51&type=chunk) [Other Disclosure Matters](index=16&type=section&id=V.%20Other%20Disclosure%20Matters) This section details potential risks such as market competition, international trade changes, customer concentration, outsourcing management, raw material price fluctuations, labor shortages, high accounts receivable, gross margin volatility, exchange rate fluctuations, tax policies, improper control by actual controllers, management and project implementation, technological innovation, and fundraising project implementation, along with significant events during the reporting period, including director changes, share repurchase adjustments and implementation, convertible bond issuance, and the "Quality Improvement, Efficiency Enhancement, and Returns" action plan [Potential Risks](index=16&type=section&id=%28I%29%20Potential%20Risks) The company faces various operational risks, including intensified market competition, changes in international trade and global industrial shifts, customer concentration, outsourcing supplier management, rising raw material prices, labor shortages, high accounts receivable, unstable gross margins, exchange rate fluctuations, tax policies, improper control by actual controllers, management and project implementation risks from rapid development, technological innovation risks, and fundraising project implementation risks - Intensified market competition, with industry players potentially **penetrating the company's business areas and seizing customer share**[53](index=53&type=chunk) - Changes in the international trade environment and global industrial chain shifts (e.g., **Sino-US trade friction, rising labor costs leading to industrial shifts to Vietnam and India**) may adversely affect the company's business and customer retention[53](index=53&type=chunk)[54](index=54&type=chunk) - Customer concentration, where a decline in major customers' purchasing demand or unfavorable operating conditions could **impact the company's production and sales**[54](index=54&type=chunk) - Outsourcing supplier management risk, where failure of outsourced manufacturers to meet demand or poor company management could **affect product quality or production schedules**[54](index=54&type=chunk) - Raw material price increase risk, potentially impacting **production costs and gross margins**, with the company's ability to pass on costs being limited[54](index=54&type=chunk)[55](index=55&type=chunk) - Labor shortage risk, as the company's scale expands and fundraising projects are implemented, increasing the demand for **highly skilled technical workers**[55](index=55&type=chunk) - High accounts receivable balance, where deterioration in customer operating or financial conditions could **increase bad debt risk**[55](index=55&type=chunk) - Gross margin decline risk, influenced by various factors such as **industry development, market supply and demand, customer structure, raw material prices, and competitive strategies**[56](index=56&type=chunk)[57](index=57&type=chunk) - Exchange rate fluctuation risk, as export sales are settled in **USD**, and fluctuations in the **RMB to USD exchange rate** may lead to exchange gains or losses volatility[57](index=57&type=chunk) - Tax policy risk, as the high-tech enterprise qualification review is valid until **2026**, and failure to continuously meet the conditions will **impact profitability**[57](index=57&type=chunk)[58](index=58&type=chunk) - Risk of improper control by actual controllers, as their high shareholding percentage may **unduly influence company decisions**[58](index=58&type=chunk) - Management and project implementation risks arising from the company's rapid development, with an increasing number of subsidiaries and expanding asset and business scale demanding higher management capabilities, and fundraising projects potentially **underperforming expectations**[58](index=58&type=chunk)[59](index=59&type=chunk) - Technological innovation risk, as downstream industries experience rapid technological advancements, requiring the company to **continuously invest in R&D and innovation** to quickly respond to customer needs[59](index=59&type=chunk) - Fundraising project implementation risk, with the **Functional Components Production Base Construction Project and R&D Center Project** delayed until **December 2025**, posing the possibility of **unabsorbed new capacity or failure to achieve expected returns**[60](index=60&type=chunk) [Other Disclosure Matters](index=19&type=section&id=%28II%29%20Other%20Disclosure%20Matters) During the reporting period, Director Jin Changwei resigned, and Chen Hua was elected as a new director; the company adjusted and completed its share repurchase plan, repurchasing **2,224,796 shares** for a total of **CNY 70,889,029.40**; the company approved a convertible bond issuance plan and formulated an action plan for "Quality Improvement, Efficiency Enhancement, and Returns" - Director **Jin Changwei resigned** due to personal reasons, and **Chen Hua was elected as a non-independent director** of the third board of directors on **January 16, 2025**[61](index=61&type=chunk)[74](index=74&type=chunk) - The company adjusted its share repurchase plan, setting the maximum repurchase price at **no more than CNY 55/share**[61](index=61&type=chunk) - As of **April 24, 2025**, the company's share repurchase plan was completed, with a cumulative repurchase of **2,224,796 shares**, accounting for approximately **1.18%** of the total share capital, and a total payment of **CNY 70,889,029.40**[62](index=62&type=chunk) - The company approved the plan to issue convertible corporate bonds to unspecified investors on **March 6, 2025**[63](index=63&type=chunk) - The company formulated and announced the **"Quality Improvement, Efficiency Enhancement, and Returns" action plan**, aiming to enhance operational quality, increase R&D investment, prioritize shareholder returns, improve investor communication, and maintain continuous standardized operations[66](index=66&type=chunk) - In H1 2025, the company's R&D investment was **CNY 23.3367 million**, accounting for **5.56%** of operating revenue, a year-on-year increase of **9.19%**[67](index=67&type=chunk) - On **June 23, 2025**, the company completed its 2024 equity distribution, distributing a cash dividend of **CNY 2.5 (tax inclusive) per 10 shares** and converting **4 shares per 10 shares from capital reserve**[69](index=69&type=chunk) Corporate Governance, Environment, and Society [Changes in Company Directors, Supervisors, and Senior Management](index=22&type=section&id=I.%20Changes%20in%20Company%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, Mr. Jin Changwei resigned as director and audit committee member, and Ms. Chen Hua was elected as a non-independent director of the third board and appointed to the audit committee - **Jin Changwei resigned** as director, and **Chen Hua was elected** as director[74](index=74&type=chunk) [Profit Distribution or Capital Reserve to Share Capital Plan](index=22&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20to%20Share%20Capital%20Plan) The company has no semi-annual profit distribution or capital reserve to share capital plan - There is **no profit distribution plan or capital reserve to share capital plan** for the current reporting period[75](index=75&type=chunk) Significant Matters [Fulfillment of Commitments](index=23&type=section&id=I.%20Fulfillment%20of%20Commitments) The company's actual controllers, directors, senior management, and related intermediaries have strictly fulfilled all commitments made during the IPO and refinancing processes, including share lock-up, stock price stabilization, prospectus accuracy, avoidance of horizontal competition, reduction of related-party transactions, and social insurance and housing provident fund supplementary payments - Actual controllers **Zhu Chunhua and Shi Huiqing** committed not to transfer shares within **36 months** from the company's listing date, and to sell shares at a price **no lower than the offering price** within **2 years** after the lock-up period expires[78](index=78&type=chunk) - Directors, supervisors, and senior management committed not to transfer more than **25%** of their total shares annually during their tenure, and not to transfer any shares within **six months** after resignation[79](index=79&type=chunk) - The company and relevant parties committed to taking **stock price stabilization measures** if the company's stock price closes below the latest audited net asset value per share for **20 consecutive trading days**[79](index=79&type=chunk) - The company and relevant responsible entities committed that the prospectus contains **no false records, misleading statements, or major omissions**[79](index=79&type=chunk) - The company and its actual controllers committed to **avoiding horizontal competition and reducing and regulating related-party transactions**[80](index=80&type=chunk) - The actual controllers committed to bearing the company's **social insurance, housing provident fund supplementary payments, and related fines**[80](index=80&type=chunk)[81](index=81&type=chunk) - The company and relevant parties committed to ensuring that measures to **mitigate the dilution of immediate returns** from the convertible corporate bond issuance are effectively implemented[81](index=81&type=chunk) - The company committed to investing the remaining previous raised funds according to **market conditions and actual project needs**, in line with the investment plans for fundraising projects[81](index=81&type=chunk)[82](index=82&type=chunk) [Semi-Annual Report Audit Status](index=28&type=section&id=IV.%20Semi-Annual%20Report%20Audit%20Status) The company re-appointed **ZhongShen ZhongHuan Certified Public Accountants (Special General Partnership)** as its audit firm for the 2025 financial report and internal control, a decision approved by the general meeting of shareholders - The company re-appointed **ZhongShen ZhongHuan Certified Public Accountants (Special General Partnership)** as the audit firm for its **2025 financial report and internal control**[84](index=84&type=chunk) [Major Litigation and Arbitration Matters](index=28&type=section&id=VII.%20Major%20Litigation%20and%20Arbitration%20Matters) The company had no major litigation or arbitration matters during the reporting period - There were **no major litigation or arbitration matters** for the company during the current reporting period[84](index=84&type=chunk) [Explanation of Progress in Use of Raised Funds](index=31&type=section&id=XII.%20Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) As of the end of the reporting period, the company's total cumulative investment of raised funds was **CNY 395.3847 million**, with an investment progress of **74.89%**; the functional components production base and R&D center projects were delayed to **December 2025** due to location changes and overall planning, and **CNY 50 million** of idle raised funds were used for cash management [Overall Use of Raised Funds](index=31&type=section&id=%28I%29Overall%20Use%20of%20Raised%20Funds) As of the end of the reporting period, the company's total cumulative investment of raised funds was **CNY 395.3847 million**, with an investment progress of **74.89%** Overall Use of Raised Funds | Indicator | Amount (CNY 10,000) | | :--- | :--- | | Total Raised Funds | 59,649.60 | | Net Raised Funds | 52,796.00 | | Total Cumulative Investment of Raised Funds as of Period-end | 39,538.47 | | Cumulative Investment Progress as of Period-end (%) | 74.89 | [Details of Fundraising Projects](index=31&type=section&id=%28II%29Details%20of%20Fundraising%20Projects) The functional components production base and R&D center projects were delayed to **December 2025** due to location changes and overall planning, while the working capital replenishment project has been fully invested Details of Fundraising Project Utilization (as of Period-end) | Project Name | Total Committed Investment of Raised Funds (CNY 10,000) | Total Cumulative Investment of Raised Funds as of Period-end (CNY 10,000) | Investment Progress (%) | Date Project Reaches Intended Usable State | | :--- | :--- | :--- | :--- | :--- | | Functional Components Production Base Construction Project | 35,050.15 | 23,991.84 | 68.45 | 2025年12月31日 | | R&D Center Project | 3,745.85 | 1,546.63 | 41.29 | 2025年12月31日 | | Replenishment of Working Capital | 14,000.00 | 14,000.00 | 100.00 | N/A | | **Total** | **52,796.00** | **39,538.47** | **74.89** | | - The implementation progress of the **Functional Components Production Base Construction Project and R&D Center Project** is low, mainly due to changes in implementation location and overall planning, and has been **delayed until December 2025**[91](index=91&type=chunk)[92](index=92&type=chunk) [Other Uses of Raised Funds During the Reporting Period](index=34&type=section&id=%28IV%29Other%20Uses%20of%20Raised%20Funds%20During%20the%20Reporting%20Period) The company managed idle raised funds with a period-end balance of **CNY 50 million**, which did not exceed the authorized limit Cash Management of Idle Raised Funds | Board Approval Date | Approved Limit for Cash Management of Raised Funds (CNY 10,000) | Cash Management Balance at Period-end (CNY 10,000) | Did Highest Balance During Period Exceed Authorized Limit | | :--- | :--- | :--- | :--- | | 2024年8月27日 | 40,000.00 | 5,000.00 | No | Share Changes and Shareholder Information [Changes in Share Capital](index=34&type=section&id=I.%20Changes%20in%20Share%20Capital) During the reporting period, the company's total share capital increased from **134.848 million shares to 187.897282 million shares** due to the capitalization of capital reserves from the 2024 profit distribution plan [Table of Share Changes](index=34&type=section&id=1.%20Table%20of%20Share%20Changes) The company's total share capital increased due to the capitalization of capital reserves, with both restricted and unrestricted tradable shares increasing accordingly Table of Share Changes (as of Period-end) | Category | Quantity Before Change (shares) | Percentage Before Change (%) | Capital Reserve to Shares (shares) | Subtotal Increase/Decrease in Current Change (shares) | Quantity After Change (shares) | Percentage After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 93,884,000 | 69.62 | 37,553,600 | 37,553,600 | 131,437,600 | 69.95 | | II. Unrestricted Tradable Shares | 40,964,000 | 30.38 | 15,495,682 | 15,495,682 | 56,459,682 | 30.05 | | **III. Total Shares** | **134,848,000** | **100.00** | **53,049,282** | **53,049,282** | **187,897,282** | **100.00** | [Explanation of Share Changes](index=35&type=section&id=2.%20Explanation%20of%20Share%20Changes) The company's 2024 profit distribution plan was implemented, capitalizing **0.4 shares per share** from capital reserves to all shareholders, increasing total share capital from **134.848 million shares to 187.897282 million shares** - On **May 20, 2025**, the company's 2024 Annual General Meeting of Shareholders approved the profit distribution plan, capitalizing **4 shares per 10 shares** from capital reserves to all shareholders[101](index=101&type=chunk)[102](index=102&type=chunk) - After the equity distribution, the company's total share capital changed from **134.848 million shares to 187.897282 million shares**[102](index=102&type=chunk) [Changes in Restricted Shares](index=36&type=section&id=%28II%29%20Changes%20in%20Restricted%20Shares) During the reporting period, the number of restricted shares held by **Zhu Chunhua and Shi Huiqing** increased due to the capitalization of capital reserves, with the restriction reason being IPO lock-up, and the release date set for **October 10, 2025** Changes in Restricted Shares | Shareholder Name | Beginning Restricted Shares (shares) | Restricted Shares Increased During Period (shares) | Period-end Restricted Shares (shares) | Reason for Restriction | Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhu Chunhua | 49,000,000 | 19,600,000 | 68,600,000 | IPO Lock-up | 2025年10月10日 | | Shi Huiqing | 44,884,000 | 17,953,600 | 62,837,600 | IPO Lock-up | 2025年10月10日 | | **Total** | **93,884,000** | **37,553,600** | **131,437,600** | | | [Shareholder Information](index=36&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had **10,753 common shareholders**; among the top ten shareholders, **Zhu Chunhua and Shi Huiqing** are the actual controllers, holding a combined **69.95%** and acting in concert [Total Number of Shareholders](index=36&type=section&id=%28I%29%20Total%20Number%20of%20Shareholders%EF%BC%9A) As of the end of the reporting period, the company had a total of **10,753 common shareholders** - As of the end of the reporting period, the total number of common shareholders was **10,753**[105](index=105&type=chunk) [Shareholding of Top Ten Shareholders](index=36&type=section&id=%28II%29%20Shareholding%20of%20Top%20Ten%20Shareholders%E3%80%81Top%20Ten%20Tradable%20Shareholders%EF%BC%88or%20Unrestricted%20Shareholders%EF%BC%89as%20of%20Period-end) Among the top ten shareholders, **Zhu Chunhua and Shi Huiqing** are the actual controllers, holding a combined **69.95%** and acting in concert; the company's dedicated share repurchase account holds **2,224,796 shares** Shareholding of Top Ten Shareholders as of Period-end | Shareholder Name | Period-end Shareholding (shares) | Percentage (%) | Restricted Shares Held (shares) | Share Status | | :--- | :--- | :--- | :--- | :--- | | Zhu Chunhua | 68,600,000 | 36.51 | 68,600,000 | No Pledge | | Shi Huiqing | 62,837,600 | 33.44 | 62,837,600 | No Pledge | | Jiangsu Zhaoxin Private Equity Fund Management Co., Ltd. - Zhaoxin Outlook No. 13 Private Securities Investment Fund | 4,449,894 | 2.37 | | No Pledge | | Gongqingcheng Yiyi Investment Management Partnership (Limited Partnership) | 2,742,040 | 1.46 | | No Pledge | | Soochow Life Insurance Co., Ltd. - Own Funds | 1,816,074 | 0.97 | | No Pledge | | Jiangsu Zhaoxin Private Equity Fund Management Co., Ltd. - Zhaoxin Collective No. 1 Private Securities Investment Fund | 1,625,968 | 0.87 | | No Pledge | | Gongqingcheng Yixiang Investment Management Partnership (Limited Partnership) | 1,242,640 | 0.66 | | No Pledge | | China Guangfa Bank Co., Ltd. - Guotai Juxin Value Advantage Flexible Allocation Mixed Securities Investment Fund | 1,000,000 | 0.53 | | No Pledge | | Zhu Hongyuan | 767,620 | 0.41 | | No Pledge | | Jiao Yu | 746,239 | 0.40 | | No Pledge | - **Zhu Chunhua and Shi Huiqing** are parties acting in concert, with a combined shareholding of **69.95%**[107](index=107&type=chunk)[108](index=108&type=chunk) - The company's dedicated share repurchase account holds **2,224,796 shares**, accounting for **1.18%** of the company's current total share capital[109](index=109&type=chunk) [Shareholding and Restriction Conditions of Top Ten Restricted Shareholders](index=38&type=section&id=Shareholding%20and%20Restriction%20Conditions%20of%20Top%20Ten%20Restricted%20Shareholders) **Zhu Chunhua and Shi Huiqing**, as the company's main restricted shareholders, hold shares subject to IPO lock-up, with restrictions expected to be lifted on **October 11, 2025** Shareholding and Restriction Conditions of Top Ten Restricted Shareholders | No. | Name of Restricted Shareholder | Number of Restricted Shares Held (shares) | Tradable Date | Restriction Condition | | :--- | :--- | :--- | :--- | :--- | | 1 | Zhu Chunhua | 68,600,000 | 2025年10月11日 | IPO Lock-up | | 2 | Shi Huiqing | 62,837,600 | 2025年10月11日 | IPO Lock-up | [Information on Directors, Supervisors, and Senior Management](index=39&type=section&id=III.%20Information%20on%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) This section discloses the shareholding changes of current and resigned directors, supervisors, and senior management during the reporting period, primarily due to share capitalization from the 2024 profit distribution Shareholding Changes of Directors, Supervisors, and Senior Management | Name | Position | Beginning Shareholding (shares) | Period-end Shareholding (shares) | Change in Shareholding During Period (shares) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhu Chunhua | Chairman, CEO | 49,000,000 | 68,600,000 | 19,600,000 | Capitalization from 2024 Profit Distribution | | Shi Huiqing | Director, President | 44,884,000 | 62,837,600 | 17,953,600 | Capitalization from 2024 Profit Distribution | Bond-Related Information [Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=40&type=section&id=I.%20Corporate%20Bonds%20%28Including%20Enterprise%20Bonds%29%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) The company has 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**[115](index=115&type=chunk) [Convertible Corporate Bonds](index=40&type=section&id=II.%20Convertible%20Corporate%20Bonds) The company has no convertible corporate bonds - The company has **no convertible corporate bonds**[115](index=115&type=chunk) Financial Report [Audit Report](index=41&type=section&id=I.%20Audit%20Report) **ZhongShen ZhongHuan Certified Public Accountants (Special General Partnership)** issued a standard unqualified audit opinion on the company's H1 2025 financial statements, identifying revenue recognition and accounts receivable recoverability as key audit matters - The audit firm is **ZhongShen ZhongHuan Certified Public Accountants (Special General Partnership)**[117](index=117&type=chunk) - The audit opinion is **standard unqualified**[117](index=117&type=chunk) - Key audit matters include **operating revenue recognition and the recoverability of accounts receivable**[119](index=119&type=chunk)[125](index=125&type=chunk) - For revenue recognition, audit procedures included **testing internal controls, examining contract terms, reconciling transaction samples, performing analytical reviews, confirmations, and cut-off tests**[121](index=121&type=chunk)[122](index=122&type=chunk) - For accounts receivable recoverability, audit procedures included **understanding credit policies, evaluating bad debt provision policies, analyzing aging and customer creditworthiness, confirmations, and reviewing post-period collections**[125](index=125&type=chunk) [Financial Statements](index=45&type=section&id=II.%20Financial%20Statements) This section presents the company's consolidated and parent company balance sheets as of **June 30, 2025**, consolidated and parent company income statements, cash flow statements, and statements of changes in owners' equity for **January-June 2025** [Consolidated Balance Sheet](index=45&type=section&id=Consolidated%20Balance%20Sheet) As of **June 30, 2025**, the company's consolidated total assets were **CNY 1,617,773,981.40**, total liabilities were **CNY 535,122,967.18**, and owners' equity attributable to the parent company was **CNY 1,088,336,698.28** Key Data from Consolidated Balance Sheet (June 30, 2025) | Item | Amount (CNY) | | :--- | :--- | | Total Assets | 1,617,773,981.40 | | Total Liabilities | 535,122,967.18 | | Total Owners' Equity Attributable to Parent Company | 1,088,336,698.28 | [Parent Company Balance Sheet](index=48&type=section&id=Parent%20Company%20Balance%20Sheet) As of **June 30, 2025**, the parent company's total assets were **CNY 1,589,724,217.00**, total liabilities were **CNY 478,287,215.17**, and total owners' equity was **CNY 1,111,437,001.83** Key Data from Parent Company Balance Sheet (June 30, 2025) | Item | Amount (CNY) | | :--- | :--- | | Total Assets | 1,589,724,217.00 | | Total Liabilities | 478,287,215.17 | | Total Owners' Equity | 1,111,437,001.83 | [Consolidated Income Statement](index=50&type=section&id=Consolidated%20Income%20Statement) For **January-June 2025**, the company's consolidated total operating revenue was **CNY 419,537,150.19**, total profit was **CNY 24,648,002.02**, and net profit attributable to parent company shareholders was **CNY 25,210,639.95** Key Data from Consolidated Income Statement (Jan-Jun 2025) | Item | Amount (CNY) | | :--- | :--- | | Total Operating Revenue | 419,537,150.19 | | Total Profit | 24,648,002.02 | | Net Profit Attributable to Parent Company Shareholders | 25,210,639.95 | | Basic Earnings Per Share (CNY/share) | 0.14 | [Parent Company Income Statement](index=52&type=section&id=Parent%20Company%20Income%20Statement) For **January-June 2025**, the parent company's operating revenue was **CNY 420,642,095.63**, total profit was **CNY 38,847,457.07**, and net profit was **CNY 34,992,750.19** Key Data from Parent Company Income Statement (Jan-Jun 2025) | Item | Amount (CNY) | | :--- | :--- | | Operating Revenue | 420,642,095.63 | | Total Profit | 38,847,457.07 | | Net Profit | 34,992,750.19 | [Consolidated Cash Flow Statement](index=53&type=section&id=Consolidated%20Cash%20Flow%20Statement) For **January-June 2025**, the company's consolidated net cash flow from operating activities was **CNY 86,713,724.27**, from investing activities was **CNY -20,589,360.01**, and from financing activities was **CNY -71,522,937.50** Key Data from Consolidated Cash Flow Statement (Jan-Jun 2025) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | 86,713,724.27 | | Net Cash Flow from Investing Activities | -20,589,360.01 | | Net Cash Flow from Financing Activities | -71,522,937.50 | | Net Increase in Cash and Cash Equivalents | -5,478,595.65 | [Parent Company Cash Flow Statement](index=54&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) For **January-June 2025**, the parent company's net cash flow from operating activities was **CNY 27,573,208.58**, from investing activities was **CNY 22,053,384.73**, and from financing activities was **CNY -52,412,925.87** Key Data from Parent Company Cash Flow Statement (Jan-Jun 2025) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | 27,573,208.58 | | Net Cash Flow from Investing Activities | 22,053,384.73 | | Net Cash Flow from Financing Activities | -52,412,925.87 | | Net Increase in Cash and Cash Equivalents | -3,071,529.71 | [Consolidated Statement of Changes in Owners' Equity](index=56&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Owners%27%20Equity) For **January-June 2025**, the company's consolidated total owners' equity decreased by **CNY 28,615,049.04**, primarily due to capitalization of capital reserves, increase in treasury stock, and profit distribution Consolidated Statement of Changes in Owners' Equity (Jan-Jun 2025) | Item | Beginning Balance (CNY) | Change During Current Period (CNY) | Period-end Balance (CNY) | | :--- | :--- | :--- | :--- | | Paid-in Capital (or Share Capital) | 134,848,000.00 | 53,049,282.00 | 187,897,282.00 | | Capital Reserve | 551,316,333.03 | -53,049,282.00 | 498,267,051.03 | | Less: Treasury Stock | 50,892,099.20 | 19,996,930.20 | 70,889,029.40 | | Retained Earnings | 428,360,219.07 | -7,945,161.05 | 420,415,058.02 | | Total Owners' Equity Attributable to Parent Company | 1,116,055,789.80 | -27,719,091.52 | 1,088,336,698.28 | | Total Owners' Equity | 1,111,266,063.26 | -28,615,049.04 | 1,082,651,014.22 | [Parent Company Statement of Changes in Owners' Equity](index=60&type=section&id=Parent%20Company%20Statement%20of%20Changes%20in%20Owners%27%20Equity) For **January-June 2025**, the parent company's total owners' equity decreased by **CNY 18,159,981.01**, primarily due to capitalization of capital reserves, increase in treasury stock, and profit distribution Parent Company Statement of Changes in Owners' Equity (Jan-Jun 2025) | Item | Beginning Balance (CNY) | Change During Current Period (CNY) | Period-end Balance (CNY) | | :--- | :--- | :--- | :--- | | Paid-in Capital (or Share Capital) | 134,848,000.00 | 53,049,282.00 | 187,897,282.00 | | Capital Reserve | 551,316,333.03 | -53,049,282.00 | 498,267,051.03 | | Less: Treasury Stock | 50,892,099.20 | 19,996,930.20 | 70,889,029.40 | | Retained Earnings | 442,395,813.70 | 1,836,949.19 | 444,232,762.89 | | Total Owners' Equity | 1,129,596,982.84 | -18,159,981.01 | 1,111,437,001.83 | [Company Basic Information](index=64&type=section&id=III.%20Company%20Basic%20Information) This section introduces the company's establishment history, listing information, registered capital, legal representative, registered address, main business scope, and the number of subsidiaries within the consolidated scope - The company's predecessor was **Suzhou Kechuan Electronic Technology Co., Ltd.**, which was wholly converted into a joint-stock company on **April 8, 2018**[161](index=161&type=chunk) - The company's shares were listed and traded on the **Shanghai Stock Exchange** on **October 11, 2022**, with stock code **603052**[161](index=161&type=chunk) - The company's registered capital is **CNY 187.897282 million**, and the legal representative is **Zhu Chunhua**[161](index=161&type=chunk) - The main business is the **design, R&D, production, and sales of functional components for consumer electronics and new energy vehicle power batteries**[162](index=162&type=chunk) - As of **June 30, 2025**, the Group had a total of **7 subsidiaries** included in the consolidated scope[162](index=162&type=chunk) [Basis of Financial Statement Preparation](index=64&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) The financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and CSRC regulations, using the accrual basis of accounting and historical cost measurement - The financial statements are prepared on a **going concern basis**, in accordance with the **"Enterprise Accounting Standards"** issued by the Ministry of Finance and the **"Information Disclosure Rules for Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports (Revised 2023)"** issued by the China Securities Regulatory Commission[163](index=163&type=chunk) - Accounting is based on the **accrual basis**, and except for certain financial instruments, all are measured at **historical cost**[163](index=163&type=chunk) - There are **no matters or circumstances** that cause significant doubt about the company's ability to continue as a going concern within **12 months** from the end of the reporting period[164](index=164&type=chunk) [Significant Accounting Policies and Estimates](index=64&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's specific accounting policies and estimates across various areas, including accounting period, operating cycle, functional currency, materiality, business combinations, consolidated financial statements, joint arrangements, cash and cash equivalents, foreign currency transactions, financial instruments, notes receivable, accounts receivable, notes receivable financing, other receivables, inventories, contract assets, assets held for sale, long-term equity investments, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term prepaid expenses, contract liabilities, employee compensation, provisions, share-based payments, preferred shares/perpetual bonds, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases - The company's accounting year adopts the **calendar year**, and the operating cycle is **12 months**[167](index=167&type=chunk)[168](index=168&type=chunk) - Financial assets are classified into three categories: **measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss**[186](index=186&type=chunk) - Revenue is recognized when the customer obtains control of the related goods, considering factors such as **variable consideration and significant financing components**[253](index=253&type=chunk) - For the **VMI sales model**, revenue is recognized after the customer's actual consumption[256](index=256&type=chunk) - Government grants are classified as **asset-related or income-related**; asset-related grants are recognized as deferred income, while income-related grants are recognized in current profit or loss or deferred income[259](index=259&type=chunk)[261](index=261&type=chunk) - Deferred income tax assets and liabilities are recognized using the **balance sheet liability method**[263](index=263&type=chunk) - Significant accounting judgments and estimates include **leases, impairment of financial assets, inventory write-downs, depreciation and amortization, deferred income tax assets, and income tax**[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) [Taxation](index=87&type=section&id=VI.%20Taxation) This section lists the company's main tax categories and rates, and describes the tax preferential policies enjoyed by the company and its subsidiaries, including high-tech enterprise income tax incentives and small-profit enterprise income tax incentives Major Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Income | 13%、6% | | Urban Maintenance and Construction Tax | Amount of Turnover Tax Payable | 7%、5% | | Education Surcharge | Amount of Turnover Tax Payable | 3% | | Local Education Surcharge | Amount of Turnover Tax Payable | 2% | | Enterprise Income Tax | Taxable Income | 15%、20%、25% | | Property Tax | Original Value of Property/Rental Income | 1.2%、12% | - The company enjoys **high-tech enterprise preferential policies**, paying enterprise income tax at a rate of **15%**, valid until **2026**[277](index=277&type=chunk) - **Hefei Kechuan Electronic Technology Co., Ltd., Kechuan New Material Technology (Qingdao) Co., Ltd., and Intelight Semiconductor Technology (Shanghai) Co., Ltd.** enjoy **small-profit enterprise income tax preferential policies**, with **25%** included in taxable income and enterprise income tax paid at a rate of **20%**[277](index=277&type=chunk) [Notes to Consolidated Financial Statement Items](index=88&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section details the period-end balances, beginning balances, current period changes, and related explanations for various assets, liabilities, owners' equity, revenue, costs, expenses, and cash flow items in the consolidated financial statements - Cash and bank balances at period-end were **CNY 453,462,886.84**, including a **CNY 280,000.00** letter of guarantee deposit and a **CNY 102,671.99** Huatai Securities account balance[278](index=278&type=chunk) - Financial assets held for trading at period-end were **CNY 60,239,636.82**, a **46.61% decrease** from the beginning of the period, mainly comprising wealth management products[279](index=279&type=chunk)[280](index=280&type=chunk) - Notes receivable at period-end were **CNY 10,810,142.88**, all of which were **commercial acceptance bills**[281](index=281&type=chunk) - Accounts receivable book value at period-end was **CNY 316,462,734.29**, with a bad debt provision balance of **CNY 16,855,871.10**[295](index=295&type=chunk) - Inventory book value at period-end was **CNY 54,550,295.98**, with an inventory impairment provision balance of **CNY 6,871,468.36**[334](index=334&type=chunk) - Fixed assets book value at period-end was **CNY 366,773,953.81**, with an increase of **CNY 96,074,029.18** during the current period, mainly due to transfers from construction in progress[354](index=354&type=chunk)[355](index=355&type=chunk) - Construction in progress book value at period-end was **CNY 158,286,225.67**, with an increase of **CNY 169,157,595.26** during the current period, mainly due to the lithium battery new composite materials project and machinery and equipment awaiting installation[359](index=359&type=chunk)[360](index=360&type=chunk) - Share capital at period-end was **CNY 187,897,282.00**, increasing by **CNY 53,049,282.00** during the current period due to capitalization of capital reserves[403](index=403&type=chunk)[404](index=404&type=chunk) - Treasury stock at period-end was **CNY 70,889,029.40**, increasing by **CNY 19,996,930.20** during the current period due to the repurchase of company shares[408](index=408&type=chunk) - Operating revenue for the current period was **CNY 419,537,150.19**, and operating cost was **CNY 345,418,752.85**[416](index=416&type=chunk) - Administrative expenses for the current period were **CNY 22,755,112.57**, a year-on-year increase of **58.79%**, mainly due to increased depreciation and amortization and intermediary fees[420](index=420&type=chunk) - R&D expenses for the current period were **CNY 23,336,677.34**, a year-on-year increase of **9.19%**, mainly due to employee compensation and material costs[421](index=421&type=chunk)[422](index=422&type=chunk) - Net cash flow from operating activities was **CNY 86,713,724.27**, a **36.76% decrease** compared to the prior period[453](index=453&type=chunk) [R&D Expenses](index=134&type=section&id=VIII.%20R%26D%20Expenses) During the reporting period, the company's total R&D expenses were **CNY 23,336,677.34**, all expensed, primarily consisting of employee compensation and material costs R&D Expenses by Nature of Expense | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Employee Compensation | 12,699,197.58 | 10,915,843.09 | | Material Costs | 6,716,525.20 | 8,363,001.64 | | Depreciation Expense | 3,085,863.74 | 1,248,643.67 | | Other | 835,090.82 | 844,997.39 | | **Total** | **23,336,677.34** | **21,372,485.79** | | Of which: Expensed R&D Expenditure | 23,336,677.34 | 21,372,485.79 | [Changes in Consolidation Scope](index=135&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company had no business combinations not under common control, business combinations under common control, reverse acquisitions, or disposals of subsidiaries leading to loss of control - During the reporting period, the company had **no business combinations not under common control, business combinations under common control, reverse acquisitions, or disposals of subsidiaries leading to loss of control**[464](index=464&type=chunk)[465](index=465&type=chunk) [Interests in Other Entities](index=136&type=section&id=X.%20Interests%20in%20Other%20Entities) This section discloses the composition of the company's enterprise group, including **7 wholly-owned or controlled subsidiaries**, and the financial information of its associate, **Suzhou Deju Chuntian Material Technology Co., Ltd.** Composition of the Enterprise Group (Partial Subsidiaries) | Subsidiary Name | Main Operating Location | Registered Capital | Business Nature | Shareholding Ratio (Direct %) | | :--- | :--- | :--- | :--- | :--- | | Guangde Yuzheng Electronic Technology Co., Ltd. | Guangde City | 1,000 CNY 10,000 | Electronic Components Production | 100.00 | | Hefei Kechuan Electronic Technology Co., Ltd. | Hefei City | 500 CNY 10,000 | Electronic Components Production | 100.00 | | Kechuan New Material Technology (Qingdao) Co., Ltd. | Qingdao City | 20,000 CNY 10,000 | New Material Technology R&D | 100.00 | | Intelight Semiconductor Technology (Shanghai) Co., Ltd. | Shanghai City | 5,000 CNY 10,000 | Optical Communication Equipment and Electronic Components Manufacturing | 51.00 | | Kechuan New Material Technology (Huai'an) Co., Ltd. | Huai'an City | 10,000 CNY 10,000 | New Material R&D and Production | 100.00 | | Kechuan Technology International Co., Ltd. | Hong Kong, China | 500 USD 10,000 | Technology Product Sales and R&D | 100.00 | | Kechuan Photonics Technology (Suzhou) Co., Ltd. | Kunshan City | 10,000 CNY 10,000 | Technology Product Sales and R&D | 100.00 | Summary Financial Information of Insignificant Associates (Jan-Jun 2025) | Item | Amount (CNY) | | :--- | :--- | | Total Book Value of Investment | 13,431,908.79 | | Net Profit | 1,248,782.01 | | Total Comprehensive Income | 1,248,782.01 | - In **April 2025**, the company's shareholding in **Suzhou Deju Chuntian Material Technology Co., Ltd.** decreased from **20.00% to 19.90%**[471](index=471&type=chunk) [Government Grants](index=140&type=section&id=XI.%20Government%20Grants) This section discloses government grants within deferred income, with **CNY 1,000,000.00** in new grants and **CNY 496,020.04** transferred to other income during the period, resulting in a period-end balance of **CNY 10,108,443.20**, primarily asset-related; total government grants recognized in current profit or loss were **CNY 1,878,996.82** Government Grants in Deferred Income | Item | Beginning Balance (CNY) | New Grants Added During Current Period (CNY) | Amount Transferred to Other Income During Current Period (CNY) | Period-end Balance (CNY) | Reason for Formation | | :--- | :--- | :--- | :--- | :--- | :--- | | Government Grants | 9,604,463.24 | 1,000,000.00 | 496,020.04 | 10,108,443.20 | Asset-related | Government Grants Recognized in Current Profit or Loss | Type | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Asset-related | 496,020.04 | 121,062.44 | | Income-related | 1,382,976.78 | 1,512,756.30 | | **Total** | **1,878,996.82** | **1,633,818.74** | [Risks Related to Financial Instruments](index=141&type=section&id=XII.%20Risks%20Related%20to%20Financial%20Instruments) This section describes the company's market risks (exchange rate risk, interest rate risk), credit risk, and liquidity risk, along with management strategies; during the reporting period, the company had no floating-rate financial liabilities, deeming interest rate risk insignificant, and transferred some financial assets through non-recourse factoring and notes receivable discounting - The company faces **exchange rate risk (primarily related to USD), interest rate risk (mainly from interest-bearing debt), credit risk (from financial assets), and liquidity risk**[477](index=477&type=chunk) - During the reporting period, the company had **no floating-rate financial liabilities**, and management considers interest rate risk to be **not significant**[480](index=480&type=chunk) - The company derecognized **CNY 195,217,735.56** in accounts receivable through non-recourse domestic factoring and **CNY 82,068,042.07** in notes receivable financing through bank acceptance bill discounting, thereby transferring related credit risks[485](index=485&type=chunk)[486](index=486&type=chunk) [Disclosure of Fair Value](index=144&type=section&id=XIII.%20Disclosure%20of%20Fair%20Value) This section discloses the period-end fair value of the company's assets measured at fair value, including financial assets held for trading and notes receivable financing, totaling **CNY 122,924,693.45** Period-end Fair Value of Assets Measured at Fair Value | Item | Level 2 Fair Value Measurement (CNY) | Level 3 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 60,239,636.82 | | 60,239,636.82 | | Notes Receivable Financing | | 62,685,056.63 | 62,685,056.63 | | **Total Assets Continuously Measured at Fair Value** | **60,239,636.82** | **62,685,056.63** | **122,924,693.45** | - The fair value of financial assets held for trading is determined based on **market information and wealth management product agreements**[489](index=489&type=chunk) - Due to their short remaining maturity, the fair value of notes receivable financing has **no significant difference from their book value**[489](index=489&type=chunk) [Related Parties and Related Party Transactions](index=144&type=section&id=XIV.%20Related%20Parties%20and%20Related%20Party%20Transactions) This section discloses the company's subsidiaries, associates, and other related parties, as well as related party transactions during the reporting period, including purchases and sales of goods, provision of services, and key management personnel compensation - Details of subsidiaries are provided in **Note X, 1**[491](index=491&type=chunk) - Details of associates are provided in **Note X, 3**, primarily **Suzhou Deju Chuntian Material Technology Co., Ltd.**[492](index=492&type=chunk) - Other related parties include **directors, supervisors, senior management, and other related natural persons**[492](index=492&type=chunk) Related Party Transactions for Purchase/Sale of Goods and Acceptance of Services | Related Party | Related Party Transaction Content | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | :--- | | Suzhou Deju Chuntian Material Technology Co., Ltd. | Purchase of Materials | 19,717,616.66 | 9,585,041.41 | | Suzhou Deju Chuntian Material Technology Co., Ltd. | Processing Fees | 333,958.11 | 917,932.70 | Key Management Personnel Compensation | Item | Current Period Amount (CNY 10,000) | Prior Period Amount (CNY 10,000) | | :--- | :--- | :--- | | Key Management Personnel Compensation | 400.60 | 366.21 | | Other Related Natural Persons | 30.01 | 22.60 | Amounts Payable to Related Parties | Item Name | Related Party | Period-end Book Balance (CNY) | Beginning Book Balance (CNY) | | :--- | :--- | :--- | :--- | | Accounts Payable | Suzhou Deju Chuntian Material Technology Co., Ltd. | 12,395,443.13 | 7,670,714.99 | | Notes Payable | Suzhou Deju Chuntian Material Technology Co., Ltd. | 9,977,607.95 | 10,840,148.76 | [Commitments and Contingencies](index=149&type=section&id=XVI.%20Commitments%20and%20Contingencies) This section discloses the company's capital commitments as of the balance sheet date, primarily for the acquisition of long-term assets, totaling **CNY 76,737,386.53**; the company has no significant contingencies requiring disclosure Capital Commitments | Item | Period-end Balance (CNY) | Year-beginning Balance (CNY) | | :--- | :--- | :--- | | Contracted but Unrecognized in Financial Statements - Commitments for Acquisition of Long-term Assets | 76,737,386.53 | 74,293,021.04 | - The company has **no signifi

Group 1 - The company reported a revenue of 420 million yuan for the first half of 2025, representing a year-on-year growth of 24.51% [1] - The net profit for the same period was 25.21 million yuan, showing a year-on-year decline of 29.85% [1]

Group 1 - The consumer electronics sector experienced a significant upward trend on August 26, with companies like Jingyan Technology and Dongni Electronics both rising by 8% [1] - Other companies such as Lingyi iTech and Jiebang Technology saw increases of over 5% [1] - Stocks like *ST Bowang and Kechuan Technology also followed the upward trend [1]

Company Overview - Suzhou Kecuan Technology Co., Ltd. was established in 2012 and is located in Suzhou, primarily engaged in the manufacturing of computers, communications, and other electronic devices [1][2] - The company has a registered capital of 134.848 million RMB and the same amount in paid-in capital [1] Financial Performance - As of the first quarter of 2025, the company reported total operating revenue of 202 million RMB, representing a year-on-year increase of 27.66% [1] - The net profit attributable to shareholders was 10.7694 million RMB, showing a year-on-year decrease of 48.82% [1] - The non-recurring net profit was 9.2718 million RMB, down 46.66% year-on-year [1] - The company's liquidity ratios are as follows: current ratio at 2.151, quick ratio at 2.059, and debt-to-asset ratio at 31.78% [1] Market Activity - As of August 19, 2025, the stock price closed at 32.31 RMB, with an increase of 1.6% [1] - The trading volume was 70,100 lots, with a total transaction amount of 222 million RMB [1] - The main funds experienced a net outflow of 14.9222 million RMB, accounting for 6.71% of the transaction amount [1] - Large orders saw a net outflow of 10.5925 million RMB, representing 4.76% of the transaction amount [1] Investment and Intellectual Property - The company has made investments in 8 enterprises and participated in 23 bidding projects [2] - It holds 8 trademark registrations and 151 patents, along with 26 administrative licenses [2]

通过天眼查大数据分析，苏州可川电子科技股份有限公司共对外投资了8家企业，参与招投标项目23 次，知识产权方面有商标信息8条，专利信息151条，此外企业还拥有行政许可26个。 来源：金融界 天眼查商业履历信息显示，苏州可川电子科技股份有限公司，成立于2012年，位于苏州市，是一家以从 事计算机、通信和其他电子设备制造业为主的企业。企业注册资本13484.8万人民币，实缴资本13484.8 万人民币。公司法定代表人为朱春华。 金融界消息 截至2025年8月12日收盘，可川科技（603052）报收于31.63元，下跌2.2%，换手率 14.22%，成交量8.03万手，成交金额2.53亿元。 资金流向方面，今日主力资金净流出2389.21万元，占比成交额9.43%。其中，超大单净流出1580.67万 元、占成交额6.24%，大单净流出808.54万元、占成交额3.19%，中单净流出流入403.48万元、占成交额 1.59%，小单净流入1985.73万元、占成交额7.84%。 可川科技最新一期业绩显示，截至2025一季报，公司营业总收入2.02亿元、同比增长27.66%，归属净利 润1076.94万元，同比减少48.8 ...

来源：金融界 天眼查商业履历信息显示，苏州可川电子科技股份有限公司，成立于2012年，位于苏州市，是一家以从 事计算机、通信和其他电子设备制造业为主的企业。企业注册资本13484.8万人民币，实缴资本13484.8 万人民币。公司法定代表人为朱春华。 通过天眼查大数据分析，苏州可川电子科技股份有限公司共对外投资了8家企业，参与招投标项目23 次，知识产权方面有商标信息8条，专利信息151条，此外企业还拥有行政许可26个。 金融界消息 截至2025年8月11日收盘，可川科技（603052）报收于32.34元，下跌1.16%，换手率 18.92%，成交量10.68万手，成交金额3.49亿元。 资金流向方面，今日主力资金净流出1436.99万元，占比成交额4.11%。其中，超大单净流出1822.07万 元、占成交额5.22%，大单净流入385.07万元、占成交额1.1%，中单净流出流出539.88万元、占成交额 1.55%，小单净流入1976.87万元、占成交额5.66%。 可川科技最新一期业绩显示，截至2025一季报，公司营业总收入2.02亿元、同比增长27.66%，归属净利 润1076.94万元，同比减少48. ...

Group 1 - The stock of Kecuan Technology (603052) increased by 5.63% with a turnover rate of 33.07% and a trading volume of 582 million yuan, showing a fluctuation of 7.68% [1][2] - The stock was listed on the Shanghai Stock Exchange due to its high turnover rate, with a net selling amount of 27.56 million yuan from brokerage seats [2] - The top five brokerage seats accounted for a total transaction amount of 113 million yuan, with a buying amount of 42.94 million yuan and a selling amount of 70.51 million yuan, resulting in a net selling of 27.56 million yuan [2] Group 2 - The main buying brokerage was Huazheng Securities with a purchase amount of 11.84 million yuan, while the largest selling brokerage was Guotai Junan Securities with a selling amount of 22.08 million yuan [2] - The stock experienced a net inflow of 11.51 million yuan from main funds today, with a significant inflow of 1.13 million yuan from large orders [2] - In the first quarter, Kecuan Technology reported a revenue of 202 million yuan, a year-on-year increase of 27.66%, but a net profit of 10.77 million yuan, a year-on-year decrease of 48.82% [2]

Summary of Key Points Core Viewpoint - Kewan Technology (603052) experienced a decline of 0.96% in its stock price, with a trading volume turnover rate of 30.96% and a total transaction amount of 517 million yuan, indicating significant trading activity and potential volatility in the stock market [2]. Trading Activity - The stock was listed on the Shanghai Stock Exchange due to its high turnover rate, with institutional investors net selling 33.52 million yuan [2]. - The top five trading departments accounted for a total transaction amount of 148 million yuan, with a net selling amount of 26.22 million yuan [2]. - The main trading department involved in selling was an institutional specialized seat, which net sold 33.52 million yuan [2]. Fund Flow - The stock saw a net outflow of 48.44 million yuan in principal funds, with large orders contributing to a net outflow of 38.16 million yuan [2]. - Over the past five days, the stock experienced a net inflow of 8.15 million yuan in principal funds [2]. Financial Performance - Kewan Technology reported a revenue of 202 million yuan for the first quarter, reflecting a year-on-year growth of 27.66% [2]. - The net profit for the same period was 10.77 million yuan, showing a significant year-on-year decline of 48.82% [2].

Market Overview - As of August 1, the Shanghai Composite Index closed at 3559.95 points, with a decline of 0.37%. The Shenzhen Component Index closed at 10991.32 points, down 0.17%, and the ChiNext Index closed at 2322.63 points, decreasing by 0.24% [1]. Trading Volume Analysis - A total of 1503 stocks saw an increase in average transaction volume, with 31 stocks experiencing a rise of over 50%. Conversely, 3051 stocks reported a decrease in average transaction volume [1]. - Notable stocks with significant increases in average transaction volume include Kecuan Technology, Shenghui Integration, and Zhengzhong Design [1]. Active Stocks by Transaction Volume - The stocks with the highest increase in average transaction volume on August 1 include: - Kecuan Technology: 9.99% increase, average transaction volume of 1014 shares, up 193.10% [3]. - Shenghui Integration: 10.00% increase, average transaction volume of 672 shares, up 191.70% [3]. - Zhengzhong Design: 10.00% increase, average transaction volume of 2134 shares, up 168.74% [3]. Active Stocks by Transaction Count - The stocks with the highest increase in transaction count on August 1 include: - Anzheng Fashion: -1.69% change, with 68,433 transactions, up 1618.56% [2]. - Yingweike: 2.04% change, with 218,079 transactions, up 1082.38% [2]. - Zhongjiabo Chuang: -3.90% change, with 48,487 transactions, up 656.19% [2]. Stocks with Significant Increases in Both Volume and Count - Kecuan Technology stands out with a 9.99% increase, an average transaction volume of 1014 shares (up 193.10%), and a transaction count of 16,921 (up 126.52%) [4]. - Other notable stocks include: - Jiejia Weichuang: 20.00% increase, average transaction volume of 838 shares (up 130.45%), and 57,709 transactions (up 121.19%) [4]. - Riyi Electronics: 10.01% increase, average transaction volume of 846 shares (up 113.00%), and 25,112 transactions (up 161.72%) [4].

Core Viewpoint - On August 1, the Shanghai Composite Index fell by 0.37%, with institutional investors appearing on the trading lists of 35 stocks, net buying 16 and net selling 19 [1] Group 1: Institutional Trading Activity - Institutional specialized seats were present in 35 stocks, with a total net purchase amount of 209 million yuan [1] - The stock with the highest net purchase was Tianfu Culture, which closed at the daily limit with a turnover rate of 25.38% and a transaction amount of 2.301 billion yuan, net buying 151.96 million yuan [2] - Other notable stocks included Deep Sanda A and Asia-Pacific Pharmaceutical, both closing at the daily limit with net purchases of 103.57 million yuan and 102.15 million yuan respectively [2] Group 2: Market Performance - Stocks with institutional net purchases averaged an increase of 4.27%, outperforming the Shanghai Composite Index [3] - The probability of stocks with institutional net purchases rising the next day is 46.54%, with a 39.94% chance of rising in the following three days [3] - Asia-Pacific Pharmaceutical is expected to have a net profit median of 105 million yuan, representing a year-on-year increase of 1817.74% [3] Group 3: Net Selling Activity - The stock with the highest net selling was Beifang Longchang, with a net outflow of 108.07 million yuan due to a turnover rate of 60.47% [3] - Other stocks with significant net selling included Kecuan Technology and Jinling Sports, with net outflows of 72.88 million yuan and 35.16 million yuan respectively [4][6] Group 4: Deep and Shanghai Stock Connect - On August 1, 13 stocks on the trading list had appearances from the Deep and Shanghai Stock Connect, with net purchases including Jiejia Weichuang and Bei Yinmei, totaling 172.24 million yuan and 76.40 million yuan respectively [7] - Stocks with net selling included Yidian Tianxia and Changcheng Military Industry, with net outflows of 73.59 million yuan and 47.28 million yuan respectively [7]