Core Points - The Shanghai Composite Index closed at 3822.59 points, above the six-month moving average, with a slight increase of 0.07% [1] - The total trading volume of A-shares reached 13556.41 billion yuan, indicating active market participation [1] - A total of 49 A-shares have surpassed the six-month moving average, with notable stocks showing significant deviation rates [1] Summary by Category Market Performance - The Shanghai Composite Index is currently at 3822.59 points, reflecting a 0.07% increase [1] - The total trading volume for A-shares today is 13556.41 billion yuan [1] Stocks Surpassing Six-Month Moving Average - 49 A-shares have broken through the six-month moving average [1] - Stocks with the highest deviation rates include: - Shengyuan Environmental Protection: 6.76% - Zhixin Electronics: 6.18% - Weixing Intelligent: 6.16% [1] Additional Stock Information - Other stocks that have recently crossed the six-month line with lower deviation rates include: - Shuanglu Pharmaceutical - China Merchants Jiyu - Libote [1]

Group 1 - The Shanghai Stock Exchange criticized *ST Ai Ai for failing to disclose its annual performance forecast within the required timeframe, as the company reported a negative net profit for the fiscal year 2024 and its operating revenue fell below 300 million yuan [1] - The company’s revenue composition for the year 2024 indicates that 99.02% of its revenue came from industrial operations, while other businesses contributed only 0.98% [2] - As of the report date, *ST Ai Ai has a market capitalization of 1.9 billion yuan [2] Group 2 - The disciplinary actions taken against *ST Ai Ai include a public reprimand for the company and its key executives, including the chairman, CFO, and board secretary, due to violations of the Shanghai Stock Exchange's listing rules [1] - Similar cases of public reprimands for financial disclosure inaccuracies have been noted in other companies, indicating a trend of regulatory scrutiny in the industry [3]

Core Viewpoint - *ST Ai Ai failed to timely disclose its performance forecast, which is directly related to the risk of delisting [4][6] Group 1: Violation Details - *ST Ai Ai did not disclose its performance forecast within the required timeframe, violating the Shanghai Stock Exchange listing rules [6] - The company reported a loss of 8.8461 million yuan for 2024, with a net profit of -3.9883 million yuan after deducting non-recurring items [4] - The main reasons for the loss included a fixed asset impairment loss of 10.095 million yuan due to delayed delivery of a subsidiary's factory and an expected fair value loss of 8.5 million yuan from another company's underperformance [4] Group 2: Accountability of Executives - The Shanghai Stock Exchange criticized the then Chairman and General Manager Tu Guosheng, CFO Lin Lidan, and Secretary of the Board Su Yangzhong for not fulfilling their responsibilities [6][7] - The executives argued that the financial indicators did not meet the disclosure standards at the end of January 2025 and that the changes in April were due to objective factors [6][7] Group 3: Regulatory Response - The Shanghai Stock Exchange decided to issue a public reprimand to *ST Ai Ai and the responsible executives, which will be recorded in the integrity archives of the securities and futures market [7] - The company is required to conduct a compliance risk assessment and submit a rectification report signed by all directors and supervisors within one month of receiving the decision [7]

Group 1 - The Shanghai Stock Exchange criticized *ST Ai Ai for failing to disclose its 2024 annual performance forecast within the required timeframe, as the company is expected to report a negative net profit and revenue below 300 million yuan [1] - The company’s revenue composition for 2024 indicates that 99.02% of its revenue comes from industrial operations, while other businesses contribute only 0.98% [2] - As of the latest report, *ST Ai Ai has a market capitalization of 1.9 billion yuan [3]

Core Viewpoint - *ST Ai Ai (603580) reported a significant increase in revenue and net profit for the first half of 2025, indicating positive financial performance despite some declines in certain metrics [1]. Financial Performance Summary - Total revenue for the first half of 2025 reached 102 million yuan, a year-on-year increase of 17.52% compared to 86.9 million yuan in the same period of 2024 [1]. - Net profit attributable to shareholders was 9.165 million yuan, up 174.57% from 3.338 million yuan in the previous year [1]. - The second quarter alone saw total revenue of 54.4837 million yuan, an 8.31% increase year-on-year, with net profit of 3.7547 million yuan, up 78.33% [1]. Key Financial Metrics - Gross margin was 35.07%, a slight decrease of 1.65% year-on-year, while net margin improved significantly to 7.81%, an increase of 178.27% [1]. - Total expenses (selling, administrative, and financial) amounted to 19.9937 million yuan, accounting for 19.58% of revenue, down 27.89% from the previous year [1]. - Earnings per share rose to 0.07 yuan, a 174.9% increase from 0.03 yuan [1]. Balance Sheet Changes - Inventory increased significantly by 34.7% year-on-year [1]. - Cash and cash equivalents rose by 46.86% to 48.9392 million yuan [1]. - Accounts receivable surged by 82.97% to 104 million yuan, attributed to the consolidation of Tai Zhou Zhong Shi Xin starting June 2025 [3][4][5][10][12]. Cash Flow Analysis - Operating cash flow per share decreased by 62.51% to 0.03 yuan, indicating a decline in cash received from sales compared to the previous year [1]. - Net cash flow from investing activities dropped by 343.81%, primarily due to increased cash outflows related to the acquisition of Tai Zhou Zhong Shi Xin [13]. - Net cash flow from financing activities increased dramatically by 2152.54%, reflecting higher bank borrowings [13]. Operational Insights - The company’s net profit margin improved significantly from -6.17% in the previous year, indicating better operational efficiency [13]. - Historical data shows a median Return on Invested Capital (ROIC) of 8.82%, with the worst year being 2024 at -2.07%, suggesting a volatile business model [13].

Group 1 - The company *ST Ai Ai (603580.SH) reported a revenue of 102 million yuan for the first half of 2025, representing a year-on-year growth of 17.52% [1] - The net profit attributable to shareholders reached 9.165 million yuan, showing a significant year-on-year increase of 174.57% [1] - The net profit excluding non-recurring gains and losses was 8.698 million yuan, which reflects a remarkable year-on-year growth of 243.41% [1]

Core Viewpoint - The report highlights the financial performance and operational developments of AA Industrial Belting (Shanghai) Co., Ltd. for the first half of 2025, showcasing significant growth in revenue and profit, alongside strategic acquisitions and market positioning in the lightweight conveyor belt industry [2][3][4]. Financial Performance - The company's operating revenue for the first half of 2025 reached approximately 102.12 million RMB, representing a 17.52% increase compared to the same period last year [2][3]. - Total profit amounted to approximately 9.33 million RMB, a substantial increase of 238.79% year-on-year [2][3]. - The net profit attributable to shareholders was approximately 9.16 million RMB, reflecting a 174.57% increase compared to the previous year [2][3]. - The company reported a significant decrease in net cash flow from operating activities, which was approximately 4.46 million RMB, down 62.51% from the previous year [2][3]. Business Overview - The company operates primarily in the lightweight conveyor belt sector, which is characterized by a competitive landscape dominated by major players such as Ammega, Habasit, and Forbo-Siegling, holding about 30% of the global market share [4][5]. - The domestic market features strong competition from established multinational companies, while local firms like AA Industrial Belting and Yongli Co. have made significant advancements in technology and production capabilities [4][5]. - The lightweight conveyor belts are widely used across various industries, including aluminum processing, textiles, food processing, logistics, and electronics manufacturing [5][6]. Strategic Acquisitions - The company acquired a 50.20% stake in Taizhou Zhongshixin Electronics Co., Ltd., enhancing its capabilities in precision metal structure components and electronic parts manufacturing [6][7]. - This acquisition is expected to broaden the company's customer base and service capabilities in the consumer electronics and automotive sectors [6][7]. Market Positioning - The company employs a dual sales strategy, utilizing both direct sales and intermediaries to reach customers, which allows for flexibility in meeting diverse client needs [8][9]. - The company has focused on product innovation and quality management, achieving certifications such as ISO9001 and ISO14001, which bolster its competitive edge in the market [12][13]. Research and Development - The company emphasizes R&D and has developed proprietary technologies and materials, which are crucial for maintaining product quality and performance [11][12]. - The R&D team is actively engaged in creating customized solutions to meet the evolving demands of clients, thereby enhancing customer loyalty and market share [11][12].

Core Viewpoint - The semi-annual report of AIA Precision Industrial Conveying Systems (Shanghai) Co., Ltd. indicates significant growth in revenue and net profit for the reporting period compared to the previous year, reflecting a strong operational performance and financial recovery [1]. Financial Performance - The company's operating income for the reporting period reached approximately 9.16 billion yuan, representing a year-on-year increase of 174.57% [1]. - The net profit attributable to shareholders was approximately 8.70 billion yuan, showing a substantial increase of 243.41% compared to the same period last year [1]. - The total assets of the company at the end of the reporting period were approximately 754.51 million yuan, which is an increase of 48.48% from the previous year [1]. - The total profit for the period was approximately 9.33 billion yuan, reflecting a year-on-year increase of 238.79% [1]. Shareholder Information - The major shareholders include Tu Mulian and Cai Ruimei, who collectively hold a significant portion of the company's shares, indicating a concentrated ownership structure [2]. - The top ten shareholders include both domestic and foreign individuals and entities, with the largest shareholder holding 33.75% of the shares [2]. - The company has a total of 9,158 shareholders as of the reporting period [1].

[Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) This section defines common terms used in the report, including company names, regulatory bodies, related parties, and core products [Definitions of Common Terms](index=4&type=section&id=%E5%B8%B8%E7%94%A8%E8%AF%8D%E8%AF%AD%E9%87%8A%E4%B9%89) This chapter defines common terms used in the report, including company names, regulatory bodies, related parties, and core products - Defined common terms such as the Company, CSRC, SSE, and related party companies like AiAi Precision and Jucheng Consulting[12](index=12&type=chunk) - Detailed professional terms for core products and materials such as "skeleton material", "light conveyor belt", "environmentally friendly material", "eco-friendly precision belt", and "general light belt"[12](index=12&type=chunk)[13](index=13&type=chunk) [Company Profile and Key Financial Indicators](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides an overview of the company's basic information, contact details, and a summary of key financial data and indicators for the reporting period [Company Information](index=5&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) Introduces the company's basic registration information, including its Chinese name, abbreviation, foreign name, and legal representative - The company's full name is AiAi Precision Industrial Conveyor Systems (Shanghai) Co., Ltd., abbreviated as AiAi Precision, with Tu Guosheng as the legal representative[14](index=14&type=chunk) [Contact Person and Information](index=5&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) Provides contact details for the company's Board Secretary, including name, address, phone, fax, and email - The Board Secretary is Su Yangzhong, with the contact address at No 580 Xiangyin Road, Yangpu District, Shanghai, and phone number 021-65305237[15](index=15&type=chunk) [Brief Introduction to Changes in Basic Information](index=5&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E5%8F%98%E6%9B%B4%E7%AE%80%E4%BB%8B) Briefly describes changes in the company's basic information, such as registered address, office address, website, and email - The company's registered address is Room A240, Building 7, No 700 Wanrong Road, Jing'an District, Shanghai, and its office address is No 580 Xiangyin Road, Yangpu District, Shanghai[16](index=16&type=chunk) [Brief Introduction to Changes in Information Disclosure and Document Storage Locations](index=5&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) Discloses the company's designated information disclosure newspaper, website address, and report storage location - The company's designated information disclosure newspaper is Securities Times, and the website for semi-annual reports is http://www.sse.com.cn/[17](index=17&type=chunk) [Brief Introduction to Company Stock](index=5&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) Introduces the company's stock type, listing exchange, stock abbreviation, and code - The company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation **\*ST AiAi** and stock code **603580**[18](index=18&type=chunk) [Company's Key Accounting Data and Financial Indicators](index=5&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) Summarizes key accounting data and financial indicators for the current and prior periods, showing significant growth in revenue and profit, but a decrease in operating cash flow Key Accounting Data (Jan-Jun 2025 vs Jan-Jun 2024) | Major Accounting Data | Current Period (Jan-Jun) (RMB) | Prior Period (RMB) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 102,124,390.18 | 86,900,541.06 | 17.52 | | Total Profit | 9,329,410.52 | 2,753,762.86 | 238.79 | | Net Profit Attributable to Shareholders of Listed Company | 9,164,989.78 | 3,337,962.87 | 174.57 | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-recurring Gains and Losses | 8,698,189.54 | 2,532,917.87 | 243.41 | | Net Cash Flow from Operating Activities | 4,458,318.06 | 11,893,053.07 | -62.51 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 416,843,352.26 | 419,723,129.40 | -0.69 | | Total Assets (Period-end) | 754,511,623.11 | 508,148,789.98 | 48.48 | Key Financial Indicators (Jan-Jun 2025 vs Jan-Jun 2024) | Major Financial Indicators | Current Period (Jan-Jun) | Prior Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.0701 | 0.0255 | 174.90 | | Diluted Earnings Per Share (RMB/share) | 0.0701 | 0.0255 | 174.90 | | Basic Earnings Per Share Excluding Non-recurring Gains and Losses (RMB/share) | 0.0666 | 0.0194 | 243.30 | | Weighted Average Return on Net Assets (%) | 2.16 | 0.76 | 1.40 | | Weighted Average Return on Net Assets Excluding Non-recurring Gains and Losses (%) | 2.05 | 0.58 | 1.47 | [Non-recurring Gains and Losses Items and Amounts](index=6&type=section&id=%E4%B9%9D%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) Lists specific non-recurring gains and losses for the period, totaling **RMB 466,800.24**, and clarifies the classification of certain recurring government subsidies Non-recurring Gains and Losses Items and Amounts (Jan-Jun 2025) | Non-recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Disposal gains and losses of non-current assets | -98,030.82 | | Government grants included in current profit or loss (excluding those closely related to the company's normal business operations, in line with national policies, and continuously enjoyed according to certain standards) | 670,639.31 | | Other non-operating income and expenses | -25,116.38 | | Less: Income tax impact | 80,695.95 | | Minority interest impact (after tax) | -4.08 | | **Total** | **466,800.24** | - Amortization of deferred income, handling fee refunds for withholding taxes, and VAT additional deductions are recognized as recurring gains and losses due to compliance with national policies and continuous occurrence, involving amounts of **RMB 154,423.85**, **RMB 18,812.79**, and **RMB 223,607.09** respectively[23](index=23&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides a detailed discussion and analysis of the company's industry, main business operations, core competencies, and key financial performance during the reporting period [Explanation of the Company's Industry and Main Business Operations during the Reporting Period](index=7&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) Details the company's industry, main business operations (light conveyor belts, precision metal structural parts & electronic components), market positioning, and the impact of the Taizhou Zhongshixin acquisition - The company operates in the rubber and plastic products industry (C29), specifically the conveyor belt industry, primarily engaged in the R&D, production, and sales of light conveyor belts[28](index=28&type=chunk) - The global light conveyor belt market is concentrated in Europe, North America, and Asia, with major manufacturers including Ammega, Habasit, and Forbo-Siegling, holding approximately **30% market share**; domestic leading enterprises, represented by Yongli Co., Ltd. and the Company, offer products with high cost-performance advantages[26](index=26&type=chunk)[27](index=27&type=chunk) - During the reporting period, the company acquired Taizhou Zhongshixin Electronics Co., Ltd. (holding **50.2008% equity**), adding precision metal structural parts and electronic components business, primarily providing R&D and manufacturing services for precision metal structural parts for consumer electronics and other terminal products, with main products being stamped parts and fasteners[29](index=29&type=chunk) - Taizhou Zhongshixin's controlled subsidiary, Jiangsu Quanzhishun Electronic Technology Co., Ltd., primarily engages in electronic component manufacturing, focusing on communication, automotive metal parts, and consumer electronics sectors, offering one-stop services including stamping, electroplating, injection molding, and design[29](index=29&type=chunk)[30](index=30&type=chunk) [Discussion and Analysis of Operations](index=8&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) Discusses the sales and production models for light conveyor belts and the product/market positioning of precision metal structural parts and electronic components - The light conveyor belt business adopts a sales model combining direct sales and intermediaries, with domestic sales primarily direct and overseas sales primarily through intermediaries, to expand market share and reduce service costs[31](index=31&type=chunk)[33](index=33&type=chunk) - The precision metal structural parts and electronic components business primarily provides R&D and manufacturing services for precision metal structural parts required by "Apple supply chain" customers such as Lens Technology, AAC Technologies, and Everwin Precision for consumer electronics and other terminal products[34](index=34&type=chunk) - Jiangsu Quanzhishun Electronic Technology Co., Ltd. enhances Taizhou Zhongshixin's service capabilities in the smartphone and automotive industry chains through one-stop services including stamping, electroplating, injection molding, and design[34](index=34&type=chunk) [Analysis of Core Competencies during the Reporting Period](index=9&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) Analyzes the company's core competencies in R&D, integrated supply chains, experienced management, and continuous quality improvement across its two main business segments - The light conveyor belt business possesses strong R&D capabilities, mastering core technologies and processes, capable of providing comprehensive products and services, and actively expanding into new application areas (e.g., automotive, solar energy)[36](index=36&type=chunk) - The light conveyor belt business focuses on integrating internal business chains (R&D, production, sales synergy) and external industry chains (TPU modification, expansion to felt, synchronous toothed belts, etc.) to enhance product quality and control costs[36](index=36&type=chunk)[37](index=37&type=chunk) - The light conveyor belt business has a stable and experienced management team with years of industry experience, capable of promptly grasping market dynamics and introducing new products[37](index=37&type=chunk) - The precision metal structural parts and electronic components business also possesses strong R&D capabilities, holding multiple independent intellectual property rights and patented technologies, and focuses on industry innovation to meet differentiated customer needs[39](index=39&type=chunk) - The precision metal structural parts and electronic components business management team is experienced and familiar with the stamping, fastening, and electroplating industries, and emphasizes continuous product quality improvement, certified by ISO9001, ISO14001, IATF16949, and other quality management systems[39](index=39&type=chunk) [Key Operating Performance during the Reporting Period](index=10&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) Analyzes changes in key financial statement items, including revenue, profit, cash flow, and asset-liability structure, primarily due to the Taizhou Zhongshixin acquisition Financial Statement Item Variation Analysis (Jan-Jun 2025 vs Jan-Jun 2024) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 102,124,390.18 | 86,900,541.06 | 17.52 | Light conveyor belt business increased by approximately RMB 6 million, precision metal structural parts and electronic components business (consolidated) by approximately RMB 9 million | | Total Profit | 9,329,410.52 | 2,753,762.86 | 238.79 | Operating revenue growth, financial expenses shifted from exchange losses to exchange gains | | Net Profit Attributable to Shareholders of Listed Company | 9,164,989.78 | 3,337,962.87 | 174.57 | Same as above | | Net Cash Flow from Operating Activities | 4,458,318.06 | 11,893,053.07 | -62.51 | Cash received from sales of goods and provision of services was less than the prior period | | Net Cash Flow from Investing Activities | -45,504,282.92 | -10,253,072.25 | Not Applicable | Acquisition of Taizhou Zhongshixin led to increased cash outflow | | Net Cash Flow from Financing Activities | 48,975,211.51 | -2,386,076.57 | Not Applicable | Cash inflow from bank borrowings was more than the prior period | Asset and Liability Status Changes (June 30, 2025 vs December 31, 2024) | Item | Current Period Amount (RMB) | Prior Year-end Amount (RMB) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable | 103,762,271.21 | 46,145,694.11 | 124.86 | Due to consolidation of Taizhou Zhongshixin | | Prepayments | 4,982,388.83 | 1,299,510.05 | 283.41 | Due to consolidation of Taizhou Zhongshixin | | Other Receivables | 5,476,027.54 | 2,973,818.72 | 84.14 | Due to consolidation of Taizhou Zhongshixin | | Construction in Progress | 22,389,202.04 | 14,557,931.11 | 53.79 | Increase in "equipment under installation and minor projects" balance | | Right-of-use Assets | 16,654,580.68 | 7,201,507.86 | 131.27 | Due to consolidation of Taizhou Zhongshixin | | Short-term Borrowings | 109,095,482.68 | 17,041,120.00 | 540.19 | Increase in bank borrowings | | Accounts Payable | 64,448,607.67 | 32,003,502.03 | 101.38 | Due to consolidation of Taizhou Zhongshixin | | Other Payables | 33,318,422.40 | 1,048,607.13 | 3,077.40 | Increase in equity transfer payables and dividends payable | - As of the end of the reporting period, overseas assets amounted to **RMB 96.08 million**, accounting for **12.73%** of total assets[47](index=47&type=chunk) [Analysis of Major Holding and Participating Companies](index=12&type=section&id=%E5%85%AD%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Lists major subsidiaries and their financial data, highlighting the impact of consolidating Taizhou Zhongshixin Electronics Co., Ltd Major Subsidiary Financial Data (Unit: RMB million) | Company Name | Company Type | Main Business | Registered Capital (RMB) | Total Assets (RMB million) | Net Assets (RMB million) | Operating Revenue (RMB million) | Operating Profit (RMB million) | Net Profit (RMB million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Suzhou Ino | Subsidiary | Production, sales of industrial belts | 107.25752401 | 183.75 | 164.25 | 30.61 | 2.46 | 2.42 | | Shanghai Ino | Subsidiary | Sales of industrial belts | 4.489259 | 84.52 | 12.25 | 33.11 | 6.83 | 5.13 | | Xi'an AiAi | Subsidiary | Production, sales of industrial belts | 50.00 | 104.87 | 36.63 | 6.16 | -2.10 | -1.62 | | Anhui AiAi | Subsidiary | Production, sales of industrial belts | 105.22831755 | 119.95 | 85.57 | 9.55 | -3.09 | -2.28 | | Hong Kong Ino | Subsidiary | Investment | USD 1 | 113.97 | -3.26 | 30.14 | 2.72 | 2.28 | | Taizhou Zhongshixin | Subsidiary | Production, sales of precision metal structural parts and electronic components | 24.90 | 186.53 | 91.51 | 8.85 | -0.72 | -0.81 | - During the reporting period, the company acquired Taizhou Zhongshixin Electronics Co., Ltd., consolidating it from June 2025, which impacted overall production, operations, and performance[50](index=50&type=chunk) [Other Disclosure Matters](index=13&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) Discloses eight potential risks, including control, market competition, technology leakage, exchange rate, tax, raw material, funding, and human resource risks - **Control Risk**: Actual controllers Tu Mulin and Cai Ruimei jointly hold **66.94%** of shares, potentially controlling the company's production, operations, and major decisions through voting rights[50](index=50&type=chunk) - **Market Competition Risk**: The domestic conveyor belt market is highly competitive, and the company still lags behind international renowned manufacturers in brand, technology, and scale, facing intensified competition risk[50](index=50&type=chunk) - **Technology Leakage Risk**: The quality of light conveyor belt products relies on material modification formulas and process design, posing risks of core technical personnel loss or key technology leakage[51](index=51&type=chunk) - **Exchange Rate Risk**: Overseas sales revenue accounts for over **50%**, and fluctuations in RMB against major international currencies may affect the company's pricing and profitability[51](index=51&type=chunk) - **Tax Incentive Change Risk**: Changes in export tax rebate policies or the inability to renew high-tech enterprise qualifications may lead to a decline in profitability[51](index=51&type=chunk)[52](index=52&type=chunk) - **Major Raw Material Fluctuation Risk**: Costs of major raw materials like TPU and PVC account for over **60%** of operating costs, and price fluctuations may impact the company's performance[52](index=52&type=chunk) - **Funding Risk**: A buyer's market leads to an increase in credit sales, resulting in higher capital tie-ups and financial costs[52](index=52&type=chunk) - **Human Resource Risk**: Company expansion increases demand for high-quality R&D, technology industrialization, and market support human resources[53](index=53&type=chunk) [Corporate Governance, Environment and Society](index=15&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) This section covers changes in the company's directors and senior management, as well as its profit distribution plan for the reporting period [Changes in Company Directors and Senior Management](index=15&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) No changes occurred in the company's directors or senior management during the reporting period - No changes in the company's directors or senior management during the reporting period[56](index=56&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=15&type=section&id=%E4%BA%8C%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company will not undertake profit distribution or capital reserve conversion for the semi-annual period - The company's proposed profit distribution or capital reserve conversion plan for the semi-annual period is "none", meaning no distribution or conversion[6](index=6&type=chunk) [Significant Matters](index=16&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section addresses the fulfillment of commitments, non-operating fund occupation by related parties, illegal guarantees, audit status, major litigation, integrity, and significant related party transactions [Fulfillment of Commitments](index=16&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) No commitment matters requiring disclosure from the company's actual controllers, shareholders, or related parties during the reporting period - No commitment matters requiring disclosure from the company's actual controllers, shareholders, related parties, acquirers, or the company during the reporting period[59](index=59&type=chunk) [Non-operating Fund Occupation by Controlling Shareholder and Other Related Parties during the Reporting Period](index=16&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) No non-operating fund occupation by controlling shareholders or other related parties during the reporting period - No non-operating fund occupation by controlling shareholders or other related parties during the reporting period[7](index=7&type=chunk) [Illegal Guarantees](index=16&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) No instances of providing external guarantees in violation of prescribed decision-making procedures during the reporting period - No instances of providing external guarantees in violation of prescribed decision-making procedures during the reporting period[8](index=8&type=chunk) [Semi-Annual Report Audit Status](index=16&type=section&id=%E5%9B%9B%E3%80%81%E5%8D%8A%E5%B9%B4%E6%8A%A5%E5%AE%A1%E8%AE%A1%E6%83%85%E5%86%B5) This semi-annual report is unaudited - This semi-annual report is unaudited[5](index=5&type=chunk) [Major Litigation and Arbitration Matters](index=16&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A1%B9) No major litigation or arbitration matters for the company during the reporting period - No major litigation or arbitration matters for the company during the reporting period[59](index=59&type=chunk) [Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controllers during the Reporting Period](index=16&type=section&id=%E4%B9%9D%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The company, its controlling shareholder, and actual controllers maintained good integrity during the reporting period, with no records of dishonesty - During the reporting period, the company, its controlling shareholder, and actual controllers strictly complied with all laws and regulations, maintained good integrity, and had no records of dishonesty[59](index=59&type=chunk) [Significant Related Party Transactions](index=16&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) Details significant related party transactions, including purchases, sales, leases, and fund transfers, along with outstanding balances at period-end - Related party transactions related to daily operations occurred during the reporting period, detailed in Section VIII "Financial Report", XIV "Related Parties and Related Party Transactions"[60](index=60&type=chunk) - Related party creditor-debtor relationships occurred during the reporting period, detailed in Section VIII "Financial Report", XIV "Related Parties and Related Party Transactions"[63](index=63&type=chunk) [Share Changes and Shareholder Information](index=18&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details changes in the company's share capital and provides an overview of its shareholder structure, including major shareholders and actual controllers [Share Capital Changes](index=18&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) No changes occurred in the company's total share capital or share structure during the reporting period - No changes occurred in the company's total share capital or share structure during the reporting period[66](index=66&type=chunk) [Shareholder Information](index=18&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) Details the company's shareholder structure, including the total number of common shareholders and the shareholdings of the top ten, with actual controllers holding **66.94%** Total Number of Common Shareholders as of the End of the Reporting Period | Indicator | Number (Households) | | :--- | :--- | | Total Number of Common Shareholders | 9,158 | Shareholding of Top Ten Shareholders (as of the End of the Reporting Period) | Shareholder Name | Shares Held at Period-end | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Tu Mulin | 44,100,000 | 33.75 | Overseas Natural Person | | Cai Ruimei | 43,365,000 | 33.19 | Overseas Natural Person | | Xiamen Huarui Investment Management Co., Ltd. | 1,964,400 | 1.50 | Domestic Non-State-Owned Legal Person | | Xie Zhengli | 599,800 | 0.46 | Domestic Natural Person | | Tu Guosheng | 576,000 | 0.44 | Overseas Natural Person | | Qin Jie | 521,300 | 0.40 | Domestic Natural Person | | Jin Ye | 505,100 | 0.39 | Domestic Natural Person | | UBS AG | 455,045 | 0.35 | Overseas Legal Person | | BARCLAYS BANK PLC | 450,054 | 0.34 | Overseas Legal Person | | Hu Xuemin | 422,400 | 0.32 | Domestic Natural Person | - The company's controlling shareholders and actual controllers are Tu Mulin and Cai Ruimei, who are acting in concert with Tu Guosheng[69](index=69&type=chunk) [Bond-Related Information](index=21&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms the absence of company bonds, enterprise bonds, non-financial enterprise debt financing instruments, and convertible corporate bonds during the reporting period [Company Bonds (including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=21&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%EF%BC%88%E5%90%AB%E4%BC%81%E4%B8%9A%E5%80%BA%E5%88%B8%EF%BC%89%E5%92%8C%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E4%B8%9A%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7) The company had no company bonds or non-financial enterprise debt financing instruments during the reporting period - The company had no company bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during the reporting period[73](index=73&type=chunk) [Convertible Corporate Bonds](index=21&type=section&id=%E4%BA%8C%E3%80%81%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA%E6%83%85%E5%86%B5) The company had no convertible corporate bonds during the reporting period - The company had no convertible corporate bonds during the reporting period[73](index=73&type=chunk) [Financial Report](index=22&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, taxes, and specific financial items [Audit Report](index=22&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This semi-annual report is unaudited - This semi-annual report is unaudited[5](index=5&type=chunk) [Financial Statements](index=22&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) Presents the company's consolidated and parent company financial statements for the first half of 2025, reflecting financial position and operating results Consolidated Balance Sheet Summary (as of June 30, 2025) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Assets | 754,511,623.11 | 508,148,789.98 | | Total Liabilities | 269,152,937.74 | 73,124,512.85 | | Total Owners' Equity | 485,358,685.37 | 435,024,277.13 | Consolidated Income Statement Summary (Jan-Jun 2025) | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 102,124,390.18 | 86,900,541.06 | | Total Operating Costs | 92,347,589.29 | 85,968,463.85 | | Total Profit | 9,329,410.52 | 2,753,762.86 | | Net Profit | 7,971,242.33 | 2,437,557.85 | | Net Profit Attributable to Parent Company Shareholders | 9,164,989.78 | 3,337,962.87 | Consolidated Cash Flow Statement Summary (Jan-Jun 2025) | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 4,458,318.06 | 11,893,053.07 | | Net Cash Flow from Investing Activities | -45,504,282.92 | -10,253,072.25 | | Net Cash Flow from Financing Activities | 48,975,211.51 | -2,386,076.57 | | Net Increase in Cash and Cash Equivalents | 9,133,801.26 | -485,583.34 | [Company Basic Information](index=40&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Introduces the company's history, capital, legal representative, registration, actual controllers, and current business scope - The company, formerly AiAi Industrial Belt (Shanghai) Co., Ltd., was first listed on May 15, 2017[105](index=105&type=chunk) - As of June 30, 2025, the company's total share capital and registered capital were both **RMB 130,673,200.00**[106](index=106&type=chunk) - The company's actual controllers are Taiwanese natural persons Tu Mulin and Cai Ruimei[106](index=106&type=chunk) - The company's main business activities include the R&D, production, and sales of light conveyor belts and precision metal structural parts & electronic components[106](index=106&type=chunk) [Basis of Financial Statement Preparation](index=40&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) States that the financial statements are prepared on a going concern basis, adhering to enterprise accounting standards and CSRC regulations - The company's financial statements are prepared on a going concern basis, with recognition and measurement performed in accordance with enterprise accounting standards, their application guidelines, and interpretations[107](index=107&type=chunk) - The company assessed its going concern ability for 12 months from the end of the reporting period and found no matters affecting its ability to continue as a going concern[108](index=108&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=40&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) Discloses specific accounting policies and estimates for key areas like business combinations, financial instruments, inventories, and revenue recognition, providing context for financial statements - Detailed accounting treatment methods for business combinations under common control and non-common control, including measurement of assets and liabilities, and recognition of goodwill[115](index=115&type=chunk)[116](index=116&type=chunk) - Classification and measurement of financial instruments are based on the business model for managing financial assets and contractual cash flow characteristics, categorized as financial assets measured at amortized cost, fair value through profit or loss, or fair value through other comprehensive income[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - Inventories are valued using the moving weighted average method upon issuance and measured at the lower of cost or net realizable value, with provision for inventory impairment[160](index=160&type=chunk)[161](index=161&type=chunk) - Long-term equity investments in subsidiaries are accounted for using the cost method, while investments in associates and joint ventures are accounted for using the equity method[172](index=172&type=chunk) - Fixed assets are depreciated using the straight-line method, with depreciation periods of **20-25 years** for buildings and **5-10 years** for machinery and equipment[179](index=179&type=chunk) - Revenue is recognized when the customer obtains control of the related goods, with domestic sales recognized upon customer receipt and overseas sales upon delivery to the carrier and completion of customs declaration[201](index=201&type=chunk)[204](index=204&type=chunk) - Government grants are classified as asset-related or income-related, recognized as deferred income or directly into profit or loss, respectively[207](index=207&type=chunk)[208](index=208&type=chunk) - Deferred income tax assets and liabilities are recognized and measured based on temporary differences between the carrying amounts of assets and liabilities and their tax bases[209](index=209&type=chunk)[210](index=210&type=chunk) - As a lessee, simplified treatment is applied to short-term leases and leases of low-value assets; other leases recognize right-of-use assets and lease liabilities[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk) [Taxes](index=69&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) Details the company's main tax categories and rates, including VAT and corporate income tax, noting the **15%** preferential rate for high-tech enterprises Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales of goods, taxable sales services income, intangible assets or real estate | 23%, 19%, 13% | | 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% | - The company's headquarters and Suzhou Ino Industrial Belt Co., Ltd. are recognized as high-tech enterprises, and for the first half of 2025, corporate income tax is calculated at a rate of **15.00%**[229](index=229&type=chunk) [Notes to Consolidated Financial Statement Items](index=70&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) Provides detailed notes and analysis for various assets, liabilities, owners' equity, income, costs, and expenses in the consolidated financial statements, including period-end balances, beginning-of-period balances, current period changes, and reasons for changes, with particular emphasis on the impact of the acquisition of Taizhou Zhongshixin Electronics Co., Ltd - Cash and cash equivalents at period-end amounted to **RMB 48,939,173.88**, of which **RMB 7,949,885.81** was deposited overseas[231](index=231&type=chunk) - Accounts receivable at period-end had a carrying value of **RMB 103,762,271.21**, a significant increase from the beginning of the period, primarily due to the consolidation of Taizhou Zhongshixin[243](index=243&type=chunk) - Inventories at period-end had a carrying value of **RMB 131,554,403.02**, an increase from the beginning of the period, primarily due to the consolidation of Taizhou Zhongshixin[269](index=269&type=chunk) - Short-term borrowings at period-end amounted to **RMB 109,095,482.68**, a substantial increase from the beginning of the period, primarily due to increased bank borrowings[307](index=307&type=chunk) - Other payables at period-end amounted to **RMB 33,318,422.40**, a substantial increase from the beginning of the period, primarily due to increased payables for equity transfer and dividends[320](index=320&type=chunk) - Operating revenue for the current period was **RMB 102,124,390.18**, with light conveyor belt business revenue of **RMB 92,517,028.33** and precision metal structural parts & electronic components business revenue of **RMB 8,655,901.97**[341](index=341&type=chunk) - Financial expenses for the current period were **RMB -5,034,831.71**, primarily due to exchange gains replacing losses from the previous period[344](index=344&type=chunk) - Net cash flow from investing activities was **RMB -45,504,282.92**, primarily due to increased cash outflow from investing activities in the current period for the acquisition of Taizhou Zhongshixin[360](index=360&type=chunk) [R&D Expenses](index=110&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) Lists the composition of the company's R&D expenses by nature of cost for the reporting period, with a total R&D expenditure of **RMB 4,354,625.13**, all expensed R&D Expenses by Nature of Cost (Jan-Jun 2025) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Material Consumption | 1,433,713.22 | 1,046,925.97 | | Personnel Costs | 1,462,392.49 | 1,819,859.83 | | Fixed Asset Depreciation | 1,162,253.90 | 1,691,119.65 | | Fuel and Power | 144,862.68 | 163,741.36 | | Other | 151,402.84 | 114,938.21 | | **Total** | **4,354,625.13** | **4,836,585.02** | - All R&D expenses for the current period were expensed, with no capitalized R&D expenses[373](index=373&type=chunk) [Changes in Consolidation Scope](index=111&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) Details the acquisition of **50.2008%** equity in Taizhou Zhongshixin Electronics Co., Ltd., its consolidation from May 31, 2025, and the resulting **RMB 87.089 million** goodwill - Acquired **50.2008%** equity of Taizhou Zhongshixin Electronics Co., Ltd. through a non-common control business combination in the current period, with the acquisition date being May 31, 2025[375](index=375&type=chunk) Taizhou Zhongshixin Electronics Co., Ltd. Consolidation Cost and Goodwill | Item | Amount (RMB million) | | :--- | :--- | | Consolidation Cost (Cash) | 125.00 | | Less: Fair Value Share of Identifiable Net Assets Acquired | 37.911 | | **Goodwill** | **87.089** | - From the acquisition date to the end of the period (June 30, 2025), Taizhou Zhongshixin generated revenue of **RMB 8.8453 million**, net profit of **RMB -0.8106 million**, and cash flow of **RMB -2.7672 million**[375](index=375&type=chunk) [Interests in Other Entities](index=113&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) Details the company's enterprise group structure, including domestic and overseas subsidiaries, their business nature, and acquisition methods - The company owns multiple domestic and overseas subsidiaries, including Suzhou Ino, Shanghai Ino, Bode Belting GmbH, Hong Kong Ino, ARCK Beteiligungen GmbH, INO Prozesstechnik GmbH, INO USA INC, INO POLSKA SP Z O O, Suzhou Bode, Xi'an AiAi, Anhui AiAi, Taizhou Zhongshixin Electronics Co., Ltd., and Jiangsu Quanzhishun Electronic Technology Co., Ltd[379](index=379&type=chunk)[380](index=380&type=chunk) - Taizhou Zhongshixin Electronics Co., Ltd. was included in the consolidation scope through acquisition, with a shareholding of **50.2008%**; its subsidiary, Jiangsu Quanzhishun Electronic Technology Co., Ltd., is indirectly held at **51.00%**[380](index=380&type=chunk) [Government Grants](index=115&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) Discloses government grant-related liabilities and total grants recognized in profit or loss for the period, with deferred income of **RMB 3,533,338.57** and total grants of **RMB 825,063.16** Government Grant Liability Items (as of June 30, 2025) | Financial Statement Item | Beginning Balance (RMB) | New Grants in Current Period (RMB) | Amount Included in Non-operating Income in Current Period (RMB) | Amount Transferred to Other Income in Current Period (RMB) | Ending Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 3,687,762.42 | 0.00 | 0.00 | 154,423.85 | 3,533,338.57 | Asset-related | Government Grants Recognized in Profit or Loss (Jan-Jun 2025) | Type | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Asset-related | 154,423.85 | 154,423.85 | | Income-related | 670,639.31 | 1,060,040.00 | | **Total** | **825,063.16** | **1,214,463.85** | [Risks Related to Financial Instruments](index=116&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) Explains the company's credit, liquidity, and market risks (foreign exchange, interest rate) and the strategies employed for their management - **Credit risk** primarily arises from cash and cash equivalents, notes receivable, accounts receivable, accounts receivable financing, other receivables, etc; the company manages this risk by assessing customer creditworthiness and regularly monitoring credit records[386](index=386&type=chunk) - As of June 30, 2025, accounts receivable from the top five customers accounted for **36.50%** of the total, and other receivables from the top five companies accounted for **68.74%** of the total[389](index=389&type=chunk) - **Liquidity risk** is managed by regularly monitoring short-term and long-term liquidity needs, ensuring sufficient cash reserves and readily marketable securities[390](index=390&type=chunk) - **Foreign exchange risk** primarily stems from foreign currency-denominated assets and liabilities of overseas operating entities in Euro, USD, and Zloty; if the RMB appreciates or depreciates by **10%** against major foreign currencies, the annual net profit would increase or decrease by **RMB 1.637 million**[391](index=391&type=chunk)[392](index=392&type=chunk) - **Interest rate risk** primarily arises from bank borrowings; the company's headquarters finance department continuously monitors interest rate levels and makes timely adjustments based on market conditions[392](index=392&type=chunk)[393](index=393&type=chunk) [Disclosure of Fair Value](index=119&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) Discloses the fair value of the company's assets and liabilities measured at fair value at the end of the reporting period, primarily including accounts receivable financing and other non-current financial assets, and explains their valuation techniques Fair Value of Assets and Liabilities Measured at Fair Value at Period-End (as of June 30, 2025) | Item | Level 3 Fair Value Measurement (RMB) | Total (RMB) | | :--- | :--- | :--- | | Accounts Receivable Financing | 2,153,141.48 | 2,153,141.48 | | Other Non-current Financial Assets | 34,327,768.98 | 34,327,768.98 | | **Total Assets Measured at Fair Value on a Recurring Basis** | **36,480,910.46** | **36,480,910.46** | - Accounts receivable financing (bank acceptance bills) are valued at their face amount as fair value; valuation techniques for other non-current financial assets are not detailed[397](index=397&type=chunk) - Financial assets and liabilities not measured at fair value primarily include cash and cash equivalents, notes receivable, accounts receivable, other receivables, accounts payable, other payables, and short-term borrowings[399](index=399&type=chunk) [Related Parties and Related Party Transactions](index=120&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) Details the company's related parties and significant related party transactions, including purchases, sales, leases, and fund transfers, along with outstanding balances at period-end - The company's ultimate controlling parties are Tu Mulin, Cai Ruimei, and 4 parties acting in concert, with a combined shareholding of **67.79%**[401](index=401&type=chunk) - During the reporting period, the company engaged in related party transactions for purchases and sales of goods with Jinfengfu (Chuzhou) Technology Co., Ltd., Chuzhou Hechuan Logistics Machinery Co., Ltd., Xi'an Degao Printing and Dyeing Automation Engineering Co., Ltd., and its subsidiaries[403](index=403&type=chunk) - The company, as lessor, leased buildings to Xi'an Degao Printing and Dyeing Automation Engineering Co., Ltd., recognizing lease income of **RMB 762,044.04** in the current period[404](index=404&type=chunk) - The company, as lessee, leased buildings from ANKE Gewerbeimmobilien GmbH & Co KG, paying **RMB 250,784.34** in rent in the current period[407](index=407&type=chunk) - Controlling shareholder Cai Ruimei provided loans to subsidiaries; as of June 30, 2025, loan balances were **EUR 1.53 million** (Ino Industrial Belt Co., Ltd.) and **EUR 0.2944 million** (ARCK Beteiligungen GmbH)[409](index=409&type=chunk)[411](index=411&type=chunk) - As of period-end, accounts receivable from Xi'an Degao Printing and Dyeing Automation Engineering Co., Ltd. amounted to **RMB 2,665,089.34**; other receivables from Tu Xiaozhu amounted to **RMB 420,120.00**[414](index=414&type=chunk) - As of period-end, short-term borrowings payable to Cai Ruimei amounted to **RMB 13,443,840.00**, and long-term borrowings amounted to **RMB 2,436,696.00**[417](index=417&type=chunk) [Notes to Parent Company Financial Statement Major Items](index=126&type=section&id=%E5%8D%81%E4%B9%9D%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) Provides detailed notes for key parent company financial statement items, including accounts receivable, other receivables, and long-term equity investments, with aging analysis and bad debt provisions [Disclosure of Parent Company Accounts Receivable by Aging](index=126&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%BA%94%E6%94%B6%E8%B4%A6%E6%AC%BE%E6%8C%89%E8%B4%A6%E9%BE%84%E6%8A%AB%E9%9C%B2) Details the aging analysis of the parent company's accounts receivable at the end of the reporting period Parent Company Accounts Receivable by Aging (as of June 30, 2025) | Aging | Ending Book Balance (RMB) | Beginning Book Balance (RMB) | | :--- | :--- | :--- | | Within 1 Year (inclusive) | 37,319,414.79 | 41,365,404.18 | | 1 to 2 Years | 2,782,477.46 | 1,423,507.42 | | 2 to 3 Years | 180,320.25 | 65,807.55 | | Over 3 Years | 536,258.30 | 286,044.05 | | **Total** | **40,818,470.80** | **43,140,763.20** | - Parent company accounts receivable impairment provision at period-end was **RMB 2,452,893.02**, with a provision rate of **6.01%**[425](index=425&type=chunk) - Parent company long-term equity investments at period-end had a carrying value of **RMB 383,898,019.39**, increasing by **RMB 125,000,000.00** in the current period, primarily due to additional investment in Taizhou Zhongshixin Electronics Co., Ltd[441](index=441&type=chunk)[445](index=445&type=chunk) [Supplementary Information](index=134&type=section&id=%E4%BA%8C%E5%8D%81%E3%80%81%E8%A1%A5%E5%85%85%E8%B5%84%E6%96%99) Provides supplementary financial information, including a detailed statement of non-recurring gains and losses, return on net assets, and earnings per share, further elaborating on the financial report content [Detailed Statement of Non-recurring Gains and Losses](index=134&type=section&id=%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E6%98%8E%E7%BB%86%E8%A1%A8) Presents a detailed breakdown of non-recurring gains and losses for the reporting period Detailed Statement of Non-recurring Gains and Losses (Jan-Jun 2025) | Item | Amount (RMB) | | :--- | :--- | | Disposal gains and losses of non-current assets | -98,030.82 | | Government grants included in current profit or loss (excluding those closely related to the company's normal business operations, in line with national policies, and continuously enjoyed according to certain standards) | 670,639.31 | | Other non-operating income and expenses | -25,116.38 | | Less: Income tax impact | 80,695.95 | | Minority interest impact (after tax) | -4.08 | | **Total** | **466,800.24** | [Return on Net Assets and Earnings Per Share](index=134&type=section&id=%E5%87%80%E8%B5%84%E4%BA%A7%E6%94%B6%E7%9B%8A%E7%8E%87%E5%8F%8A%E6%AF%8F%E8%82%A1%E6%94%B6%E7%8E%87) Provides key profitability metrics including weighted average return on net assets and basic and diluted earnings per share Return on Net Assets and Earnings Per Share (Jan-Jun 2025) | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (RMB/share) | Diluted Earnings Per Share (RMB/share) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders of the Company | 2.16 | 0.0701 | 0.0701 | | Net Profit Attributable to Common Shareholders of the Company Excluding Non-recurring Gains and Losses | 2.05 | 0.0666 | 0.0666 |

Core Viewpoint - *ST Aiai (603580) has shown a decline in stock price and significant net outflow of funds, despite reporting strong revenue and profit growth in its latest quarterly results [1][3]. Financial Performance - As of the first quarter of 2025, the company reported total revenue of 47.64 million yuan, representing a year-on-year increase of 30.18% [1]. - The net profit attributable to shareholders was 5.41 million yuan, showing a substantial year-on-year growth of 338.97% [1]. - The non-recurring net profit was 5.41 million yuan, with a remarkable year-on-year increase of 693.73% [1]. - The company's liquidity ratios are strong, with a current ratio of 3.451 and a quick ratio of 1.798, while the debt-to-asset ratio stands at 13.59% [1]. Stock Market Activity - On August 25, 2025, *ST Aiai's stock closed at 14.93 yuan, down 2.67%, with a turnover rate of 2.29% [1]. - The trading volume was 29,900 hands, with a total transaction amount of 45.07 million yuan [1]. - There was a net outflow of main funds amounting to 10.33 million yuan, accounting for 22.92% of the transaction amount [1]. Investment and Intellectual Property - The company has made investments in 7 enterprises and participated in 73 bidding projects [2]. - It holds 21 trademark registrations and 76 patents, along with 11 administrative licenses [2].