Core Viewpoint - Qin'an Co., Ltd. reported a decline in total revenue for the first half of 2025, while net profit increased significantly, indicating mixed financial performance amid industry challenges [1]. Financial Performance Summary - Total revenue for the first half of 2025 was 675 million yuan, a decrease of 13.18% compared to 778 million yuan in the same period of 2024 [1]. - Net profit attributable to shareholders reached 80.39 million yuan, up 29.97% from 61.85 million yuan year-on-year [1]. - The gross profit margin was 21.85%, down 9.73% from 24.21% in the previous year [1]. - The net profit margin improved to 11.90%, an increase of 49.70% from 7.95% [1]. - The total of selling, administrative, and financial expenses was 38.68 million yuan, accounting for 5.73% of revenue, a decrease of 6.89% year-on-year [1]. - Earnings per share rose to 0.19 yuan, a 35.71% increase from 0.14 yuan [1]. Accounts Receivable and Cash Flow - Accounts receivable amounted to 290 million yuan, representing a 9.60% increase from 265 million yuan [1]. - The ratio of accounts receivable to net profit reached 167.97%, indicating a significant amount of receivables relative to profit [10]. - Operating cash flow per share decreased to 0.26 yuan, down 49.68% from 0.52 yuan [1][6]. Changes in Financial Items - Significant changes in financial items included a 653.11% increase in accounts receivable financing due to higher credit bank acceptance bills [2]. - Contract liabilities increased by 225.49% due to a rise in advance payments [3]. - Other current liabilities surged by 741.39%, attributed to increased tax prepayments [4]. Investment and Return Metrics - The company's return on invested capital (ROIC) was 6.23%, indicating average capital returns [8]. - The historical median ROIC since the company went public is 9.1%, with one year showing a negative ROIC of -3.49% [8]. Fund Holdings - Notable funds holding Qin'an shares include Nu'an Flexible Allocation Mixed Fund and Nu'an Hengxin Mixed Fund, indicating growing institutional interest [11].

Core Viewpoint - Qin'an Co., Ltd. reported a slight decline in revenue for the first half of 2025, but achieved a significant increase in net profit, indicating a strong performance despite revenue challenges [1] Financial Performance - The company achieved an operating income of 675 million yuan, a year-on-year decrease [1] - The net profit attributable to shareholders reached 80.39 million yuan, with a growth rate of 29.97% [1] - Earnings per share were reported at 0.19 yuan [1] - As of the end of June, total assets amounted to 2.809 billion yuan, with net assets of 2.488 billion yuan and total liabilities of 321 million yuan, resulting in a low asset-liability ratio of 11.41% [1] Business Development - The company focused on solidifying its core business, maintaining stable business volume with quality clients, and actively expanding market opportunities [1] - Key clients include major automotive manufacturers such as Changan Ford, Li Auto, and Dongfeng Motor, reflecting a broad customer base in both passenger and commercial vehicle sectors [1] - The company is pursuing growth through mergers and acquisitions, targeting entities with strong profitability and growth potential, exemplified by its plan to acquire Anhui Yigao Optoelectronics Technology Co., Ltd. [1]

Core Viewpoint - Qin'an Co., Ltd. reported a decline in revenue but an increase in net profit for the first half of 2025, indicating a mixed financial performance amidst ongoing developments in the automotive sector [1] Financial Performance - For the first half of 2025, the company achieved an operating income of 675 million yuan, a year-on-year decrease of 13.18% [1] - The net profit attributable to shareholders was 80.39 million yuan, reflecting a year-on-year increase of 29.97% [1] - The company's asset-liability ratio stood at 11.41%, indicating a strong financial position [1] Market Activity - As of August 22, 2025, the stock price of Qin'an Co., Ltd. was 15.67 yuan, down 0.63 yuan or 3.87% from the previous trading day [1] - The trading volume for the day was 311,831 hands, with a total transaction amount of 496 million yuan [1] - On the same day, the net outflow of main funds was 76.26 million yuan, accounting for 1.11% of the circulating market value [1] - Over the past five days, the net inflow of main funds was 46.47 million yuan, representing 0.68% of the circulating market value [1] Business Development - Qin'an Co., Ltd. is engaged in the research, production, and sales of core components for automotive engines, including cylinder blocks, cylinder heads, and crankshafts [1] - The company operates in both traditional fuel vehicles and new energy vehicles sectors, with clients including well-known automakers such as Changan Ford, Li Auto, and FAW Group [1] - Progress has been made in the development of hybrid drive systems, with related sample development completed as planned [1] - The acquisition of 99% equity in Anhui Yigao Optoelectronics Technology marks the company's entry into the high-end vacuum coating field, expanding into the sensor sector and actively seeking new business growth points [1]

Meeting Details - The 11th meeting of the 5th Supervisory Board of Chongqing Qin'an Electromechanical Co., Ltd. was held on August 22, 2025, combining on-site and remote participation [1] - The meeting was convened by the chairman of the Supervisory Board, Liu Jiaki, and complied with relevant laws and regulations [1] Resolutions Passed - The Supervisory Board approved the proposal regarding the 2025 semi-annual report (full text and summary) with a unanimous vote of 3 in favor, 0 against, and 0 abstentions [1] - The Supervisory Board confirmed that the semi-annual report and summary were prepared in accordance with legal and regulatory requirements, accurately reflecting the company's operational and financial status for the first half of 2025 [1] Additional Proposals - The Supervisory Board also approved the proposal to cancel the Supervisory Board and abolish the "Rules for Supervisory Board Meetings," which will require further approval from the shareholders' meeting [2] - Details regarding the cancellation and amendments to the company's governance documents will be disclosed on the Shanghai Stock Exchange website [2]

Meeting Information - The first extraordinary general meeting of 2025 will be held on September 8, 2025, at 1:00 PM [1] - The meeting will take place at the conference room of Qin'an Co., located at 58 Sendi Avenue, Xipeng Town, Jiulongpo District, Chongqing [1] - Voting will be conducted through a combination of on-site and online methods using the Shanghai Stock Exchange's voting system [1] Voting Procedures - Shareholders can vote via the Shanghai Stock Exchange's online voting system from 9:15 AM to 3:00 PM on the day of the meeting [1][2] - Shareholders holding multiple accounts can aggregate their voting rights across all accounts for the same category of shares [3][4] - Duplicate votes from the same shareholder will be counted based on the first voting result [4] Attendance and Registration - Shareholders registered with the China Securities Depository and Clearing Corporation Limited as of the close of trading on September 3, 2025, are eligible to attend [5] - Registration for the meeting will occur on September 5, 2025, from 9:00 AM to 12:00 PM and 2:00 PM to 5:00 PM at the company's office [5] - Proxy representation is allowed, and the proxy does not need to be a shareholder [5] Additional Information - The meeting is expected to last half a day, and attendees are responsible for their own travel and accommodation expenses [6] - Contact information for inquiries includes phone numbers and email addresses for company representatives [6]

Core Points - The company is holding its first extraordinary general meeting of shareholders in 2025 on September 8, 2025, at 1:00 PM in Chongqing [3] - The meeting will discuss several key proposals, including the reappointment of the auditing firm Tianjian and the cancellation of the supervisory board [4][8] - The company aims to enhance its corporate governance structure by revising its articles of association and related governance systems [9][10] Meeting Procedures - The meeting will be organized by the company's board office, and only authorized personnel will be allowed entry [2] - Shareholders wishing to speak must keep their comments concise, limited to three minutes, and relevant to the agenda [2] - Voting will be conducted through a combination of on-site and online methods, with each share carrying one vote [2][3] Proposals - Proposal 1: Reappointment of Tianjian Accounting Firm for the 2025 annual audit, with a total fee of 600,000 RMB for audit services [4][7] - Proposal 2: Cancellation of the supervisory board, transferring its responsibilities to the audit committee of the board [8][9] - Proposal 3: Revision and abolition of certain corporate governance systems to improve operational standards [9][10] Auditing Firm Details - Tianjian Accounting Firm has provided satisfactory services since its appointment, with a total revenue of 2.969 billion RMB and a securities business revenue of 1.465 billion RMB in the previous year [4][7] - The firm has faced some civil litigation in the past three years but has complied with all legal requirements and maintained its professional liability insurance [7][8] Governance Structure Changes - The company plans to amend its articles of association to reflect the cancellation of the supervisory board and to enhance its governance framework [9][10] - The proposed changes aim to streamline decision-making processes and improve compliance with regulatory standards [9][10]

Core Viewpoint - The report highlights the financial performance and operational status of Chongqing Qin'an Machinery & Electronics Co., Ltd. for the first half of 2025, indicating a decline in revenue but an increase in net profit, alongside a stable financial position and strategic initiatives for growth in the automotive and new energy sectors [1][2][3]. Financial Performance - The company's operating revenue for the first half of 2025 was approximately CNY 675.37 million, a decrease of 13.18% compared to the same period last year [2]. - Total profit reached CNY 90.93 million, reflecting a 24.03% increase year-on-year [2]. - Net profit attributable to shareholders was CNY 80.39 million, up 29.97% from the previous year [2]. - The net cash flow from operating activities was CNY 114.59 million, down 49.68% year-on-year [2]. - As of June 30, 2025, total assets were CNY 2.81 billion, with net assets of CNY 2.49 billion, indicating a 4.36% increase in net assets compared to the end of the previous year [2][9]. Industry Overview - The company operates in the automotive manufacturing sector, specifically in the production of lightweight structural components for vehicles, including engine parts and transmission components [3][4]. - The automotive market in China showed positive growth in the first half of 2025, with production and sales of vehicles increasing by 12.5% and 11.4%, respectively [4]. - The new energy vehicle segment experienced significant growth, with production and sales increasing by 41.4% and 40.3%, respectively, capturing 44.3% of total new vehicle sales [4]. Business Operations - The company is a key supplier of core engine components, including cylinder blocks, cylinder heads, and crankshafts, primarily serving OEMs in the passenger and commercial vehicle markets [4][5]. - The company has established a subsidiary, Meifeng Qin'an, to enter the new energy sector, focusing on hybrid drive systems [10][11]. - The company has successfully expanded its customer base, including major domestic and international clients such as Changan Ford and North American Ford, enhancing its market presence [10][12]. Strategic Initiatives - The company is implementing cost reduction and efficiency improvement measures, including the establishment of a distributed photovoltaic project expected to save 7% to 10% in electricity costs [10][11]. - The company is also advancing its research and development in new energy drive systems, with ongoing projects for hybrid and electric vehicle components [11][12]. - A strategic acquisition is underway to enter the high-end vacuum coating sector, which is expected to provide significant growth potential and profitability [13].

Core Points - The company reported a decrease in total assets by 2.63% compared to the previous year, amounting to approximately 2.81 billion yuan [1] - Operating revenue decreased by 13.18% year-on-year, totaling approximately 675.37 million yuan [1] - The total profit increased by 24.03% year-on-year, reaching approximately 90.93 million yuan [1] - The net profit attributable to shareholders decreased by 14.83% year-on-year, amounting to approximately 83.82 million yuan [1] - The company is in the process of acquiring 99% equity of Anhui Yigao Optoelectronic Technology Co., Ltd. through a combination of issuing shares and cash payment, pending necessary approvals [4] Financial Summary - Total assets at the end of the reporting period were approximately 2.81 billion yuan, down from approximately 2.88 billion yuan at the end of the previous year [1] - Operating revenue for the reporting period was approximately 675.37 million yuan, compared to approximately 777.88 million yuan in the same period last year [1] - Total profit for the period was approximately 90.93 million yuan, an increase from approximately 73.32 million yuan in the previous year [1] - The net profit attributable to shareholders was approximately 83.82 million yuan, down from approximately 98.42 million yuan in the same period last year [1] Shareholder Information - The largest shareholder, Yuanming Tang, holds 64.76% of the shares, amounting to approximately 284.15 million shares [2] - The company has a total of 13,210 shareholders as of the end of the reporting period [1]

Core Viewpoint - The company plans to reappoint Tianjian Accounting Firm as its auditor for the fiscal year 2025, pending approval from the shareholders' meeting [1][6]. Group 1: Auditor Information - The proposed accounting firm is Tianjian Accounting Firm (Special General Partnership), established on July 18, 2011, with a registered address in Hangzhou, Zhejiang Province [1]. - The firm has 241 partners and 2,356 registered accountants, with 904 of them having signed audit reports for securities services [1]. - The total business revenue of Tianjian in the previous year was 2.969 billion yuan, with securities business revenue amounting to 1.465 billion yuan [1]. Group 2: Audit Fees - The company plans to pay a total audit fee of 600,000 yuan for the year 2025, which includes 400,000 yuan for the annual report audit and 200,000 yuan for internal control audit, remaining the same as the previous year's fees [6]. Group 3: Approval Process - The audit committee of the board reviewed Tianjian's qualifications and found them capable of adhering to independent audit standards, leading to a unanimous approval of the reappointment [5]. - The board of directors also approved the reappointment with a vote of 9 in favor, 0 against, and 0 abstentions [6].

Core Viewpoint - The company has decided to abolish its supervisory board and amend its articles of association, transferring the supervisory functions to the audit committee of the board of directors, in line with relevant laws and regulations [1][2]. Summary by Sections Abolishment of Supervisory Board - The supervisory board will be canceled, and its functions will be assumed by the audit committee of the board of directors, with the corresponding rules being abolished [1][2]. - This decision is subject to approval by the shareholders' meeting, and until then, the current supervisory board will continue to perform its duties diligently [2]. Amendments to Articles of Association - The company will revise certain provisions in its articles of association to enhance its corporate governance structure and ensure compliance with legal requirements [2]. - The revised articles will also require shareholder approval and authorization for necessary registration procedures [2]. Revision and Establishment of Governance Systems - The company plans to revise and establish several governance systems to improve operational standards and governance structure [2]. - Specific governance systems that require shareholder approval include those related to preventing fund occupation by controlling shareholders and major error accountability in periodic report disclosures [2].