Core Viewpoint - The company has implemented a special action plan for 2025 aimed at enhancing quality, efficiency, and shareholder returns, with a focus on core business areas and technological innovation [1][19]. Group 1: Business Performance - The company reported a net profit of 775,400 yuan, a year-on-year decrease of 98.71% [1]. - Revenue from CNC tool products was 306.11 million yuan, down 4.69% year-on-year, while revenue from hard alloy products was 283.07 million yuan, up 11.25% year-on-year [1]. - The company is focusing on high-end CNC tool localization and import substitution to provide quality products and services for global manufacturing [1]. Group 2: Technological Innovation - The company launched over 2,700 new types of hard alloy tools and CNC tool bodies, and applied for 82 new patents during the reporting period [7]. - Significant advancements were made in coating technology, including the development of high-performance coating processes for steel and cast iron [7]. - The company has established nearly 30 domestic and international operational centers to focus on processing solutions [2][3]. Group 3: Production Efficiency - The company is optimizing production lines and enhancing production efficiency through layout adjustments and advanced equipment [4]. - A digital transformation initiative has been implemented to improve coordination across production, procurement, and sales [3]. Group 4: Financial Management - The company has refined its financial accounting system to better understand product cost contributions and improve operational flexibility [10]. - Inventory management practices have been enhanced, including setting inventory alerts and conducting regular stock checks [11]. Group 5: Corporate Governance - The company has revised its governance structure and internal control systems to comply with legal requirements and improve operational standards [13][14]. - Independent directors are actively involved in governance, providing insights on market changes and risk management [13]. Group 6: Investor Relations - The company has established multiple channels for investor communication, including performance briefings and online interactions [15][16]. - A robust feedback mechanism has been implemented to understand and respond to investor concerns [16]. Group 7: Shareholder Returns - The company has distributed cash dividends amounting to 23.63 million yuan, representing 41.24% of the net profit attributable to the parent company for 2024 [17]. - Plans for share buybacks and shareholder engagement are in place to enhance investor confidence and market stability [18].

Core Viewpoint - The report highlights the financial performance and operational challenges faced by Zhuzhou Oke Precision Cutting Tools Co., Ltd. in the first half of 2025, indicating a significant decline in net profit and the need for strategic adjustments in production and marketing to enhance competitiveness in the cutting tool industry [1][3][12]. Company Overview and Financial Indicators - The company reported a revenue of approximately 603.48 million yuan, representing a 4.17% increase compared to the same period last year [3][14]. - The total profit for the period was a loss of approximately 8.55 million yuan, contrasting sharply with a profit of 67.03 million yuan in the previous year [3][14]. - The net profit attributable to shareholders was approximately 775,354 yuan, a drastic decline of 98.71% from the previous year [3][14]. - The company's total assets decreased by 0.43% to approximately 3.94 billion yuan, while net assets increased slightly by 0.11% [3][14]. Business Operations and Industry Context - The company specializes in the research, production, and sales of CNC cutting tools and hard alloy products, which are essential for various manufacturing sectors including automotive, aerospace, and energy [12][14]. - The CNC cutting tools produced are critical for digital manufacturing, with a focus on high precision and performance, catering to a wide range of materials [12][14]. - The hard alloy products, particularly saw blades, are recognized as a leading product in the industry, with significant market share and technological advancements [12][14]. Market Trends and Competitive Landscape - The hard alloy tool market is experiencing rapid growth, driven by domestic enterprises' technological advancements and increased production capacity [9][10]. - The report indicates a shift towards domestic production, with a notable decrease in reliance on imported tools, reflecting a trend of import substitution in the industry [10][12]. - The CNC tool market is expected to expand as the demand for high-efficiency manufacturing processes increases, particularly in the context of China's manufacturing upgrades [9][12]. Research and Development - The company has made significant investments in R&D, with a focus on enhancing product performance through innovative coating technologies and material improvements [15][16]. - A total of 82 new patents were applied for during the reporting period, indicating a strong commitment to innovation and product development [15][16]. - The company aims to strengthen its competitive edge by developing high-performance tools tailored for specific industrial applications, such as aerospace and automotive components [14][15].

Group 1 - The company reported total assets of approximately 3.94 billion RMB at the end of the reporting period, a decrease of 0.43% compared to the previous year [1] - The company's operating income for the reporting period was approximately 603.48 million RMB, representing an increase of 4.17% year-on-year [1] - The company experienced a net loss attributable to shareholders of approximately 19.15 million RMB, contrasting with a net profit of approximately 37.78 million RMB in the same period last year [1] Group 2 - The net cash flow from operating activities was approximately -129.93 million RMB, compared to -106.55 million RMB in the previous year [1] - The company had a total of 6,756 shareholders at the end of the reporting period [2] - The major shareholders include Yuan Meihe with 17.11% and Greenmei Co., Ltd. with 10.41% [2][3]

Core Points - The company, Zhuzhou Oke Carbide Precision Tool Co., Ltd., will hold a half-year performance briefing on September 11, 2025, to discuss its operating results and financial status for the first half of 2025 [3][6][5] - The company has reported a provision for asset impairment amounting to RMB 9,674,346.37, which includes credit impairment losses of RMB 7,579,991.46, reflecting a cautious approach to its financial reporting [9][11][10] Company Overview - The company is identified by the stock code 688308 and is involved in the manufacturing of precision tools [1] - The board of directors guarantees the accuracy and completeness of the half-year report, which has not been audited [1][8] Financial Data - The company has conducted a comprehensive review and impairment testing of its assets as of June 30, 2025, in accordance with accounting standards [9][12] - The total impact of the impairment provisions on the company's profit for the first half of 2025 is reported to be RMB 17,254,337.83 [11]

株洲欧科亿数控精密刀具股份有限公司 2025 年上半年，公司继续聚焦高端刀具的进口替代，通过持续优化产品矩阵， 升级材质牌号、产品工艺和刀具设计，在多个关键领域取得了重要成效。（1）公司 精准布局行业需求，推出多款高性能铣刀片，如 R6 高性能叶片加工铣刀片，在能源 装备与航空航天领域表现出色。（2）整体硬质合金刀具方面，公司通过磨削、后处 理、基材涂层及结构三重工艺优化，形成自主涂层全覆盖；公司开发了皇冠钻 RHD-G 和 RHD-Mn 系列，在通用及低合金高强度钢加工中实现高效、高精度、高寿命；开发 了钛合金铣刀 OMT 和高温合金铣刀 OMS 系列，解决航空领域难加工材料难题。（3） 超硬刀具方面，开发 H25/H15 系列 PCBN 刀片丰富了中等断续工况产品线，优化连续 至轻断续性能表现；开发高精度 PCD 异形刃口激光加工技术，适用于复杂轮廓成型 铣削，提升新能源电池铝壳加工刀具性能。 2025 年度"提质增效重回报"专项行动方案半年度评估报告 为落实以投资者为本的理念，推动持续优化经营、规范治理和积极回报投资者， 株洲欧科亿数控精密刀具股份有限公司（以下简称"欧科亿"或"公司"）于 2025 年 ...

证券代码：688308 证券简称：欧科亿 公告编号：2025-038 株洲欧科亿数控精密刀具股份有限公司 关于召开 2025 半年度业绩说明会的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 会议召开时间：2025 年 09 月 11 日 （星期四） 14:00-15:00 会议召开地点：上海证券交易所上证路演中心 （网址：https://roadshow. sseinfo.com/） 会议召开方式：上证路演中心网络互动 投资者可于 2025 年 09 月 04 日（星期四）至 09 月 10 日（星期三）16:00 前登录上证路演中心网站首页点击"提问预征集"栏目或通过公司邮箱 oke_inf o@oke-carbide.com 进行提问。公司将在说明会上对投资者普遍关注的问题进行 回答。 株洲欧科亿数控精密刀具股份有限公司（以下简称"公司"）已于 2025 年 8 月 29 日发布公司《2025 年半年度报告》，为便于广大投资者更全面深入地了解 公司 2025 年半年度经营成果、财务状况，公司计划于 ...

证券代码：688308 证券简称：欧科亿 公告编号：2025-037 株洲欧科亿数控精密刀具股份有限公司 关于 2025 年半年度计提资产减值准备的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 株洲欧科亿数控精密刀具股份有限公司（以下简称"公司"）于 2025 年 8 月 28 日召开第三届董事会第十七次会议，审议通过了《关于 2025 年半年度计提资产减值 准备的议案》。本次计提资产减值准备事项在公司董事会权限范围内，无需提交公 司股东会审议，现将有关情况公告如下： 一、本次计提资产减值准备情况概述 根据《企业会计准则》等相关规定的要求，为真实、准确地反映公司的资产状 况和财务状况，基于谨慎性原则，公司对截至 2025 年 6 月 30 日合并报表范围内的 各项资产进行全面清查和减值测试，对可能发生资产减值损失的有关资产计提相应 减值准备。 本次计提信用减值损失和资产减值损失的资产项目主要为应收票据、应收账款、 其他应收款、存货等，经测试及评估分析公司 2025 年半年度计提信用减值损失人民 币 7,579,99 ...

Core Viewpoint - 欧科亿 (688308.SH) reported a revenue of 603 million yuan for the first half of 2025, reflecting a year-on-year growth of 4.17%. However, the net profit attributable to shareholders significantly declined by 98.71% to 775,400 yuan [1]. Financial Performance - The company achieved an operating income of 603 million yuan, which is a 4.17% increase compared to the previous year [1]. - The net profit attributable to shareholders was 775,400 yuan, showing a drastic decrease of 98.71% year-on-year [1]. - The net profit after deducting non-recurring gains and losses was -19 million yuan, indicating a loss [1]. - The basic earnings per share stood at 0.00 yuan [1].

Section I Definitions [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This chapter defines common terms, including company entities and specialized industry terminology, to facilitate accurate understanding of the report content - The company's full Chinese name is **Zhuzhou OKE CNC Precision Tool Co., Ltd.**, abbreviated as OKE[10](index=10&type=chunk) - Controlled subsidiaries include **Zhuzhou OKE Cutting Tool Co., Ltd.** (wholly-owned) and **Zhuzhou OKE New Energy Co., Ltd.** (controlled)[10](index=10&type=chunk) - The report provides detailed definitions of cemented carbide tool industry terms, such as **CNC tools**, **cemented carbide products**, and **PVD/CVD coating technologies**[10](index=10&type=chunk) Section II Company Profile and Key Financial Indicators [I. Company's Basic Information](index=6&type=section&id=I.%20Company's%20Basic%20Information) This section introduces the company's basic information, including its Chinese name, abbreviation, English name, legal representative, registered address, and website - The company's full Chinese name is **Zhuzhou OKE CNC Precision Tool Co., Ltd.**, abbreviated as OKE[13](index=13&type=chunk) - The legal representative is **Yuan Meihe**, and the company's registered address is in the Small and Medium-sized Enterprise Incubation Park, Yanling County, Zhuzhou City, Hunan Province[13](index=13&type=chunk) [II. Contact Persons and Information](index=6&type=section&id=II.%20Contact%20Persons%20and%20Information) This section provides contact details for the company's Board Secretary (domestic information disclosure representative) and Securities Affairs Representative - The Board Secretary is **Han Hongtao**, and the Securities Affairs Representative is **Xu Ying**, both with contact number **0731-22673899**[14](index=14&type=chunk) [III. Information Disclosure and Document Custody Location Changes](index=6&type=section&id=III.%20Information%20Disclosure%20and%20Document%20Custody%20Location%20Changes) This section outlines the company's designated information disclosure newspapers, website for semi-annual reports, and document custody location, confirming no changes during the reporting period - The company's designated information disclosure newspapers are **Shanghai Securities News**, **Securities Times**, **China Securities Journal**, and **Securities Daily**[15](index=15&type=chunk) - The semi-annual report is published on the company's official website **http://www.oke-carbide.com** and kept at the company's Securities Legal Department[15](index=15&type=chunk) [IV. Overview of Company Shares/Depositary Receipts](index=6&type=section&id=IV.%20Overview%20of%20Company%20Shares%2FDepositary%20Receipts) This section briefly introduces the company's stock information, including its type, listing exchange, and code, confirming the absence of depositary receipts [(I) Overview of Company Shares](index=6&type=section&id=(I)%20Overview%20of%20Company%20Shares) [(II) Overview of Company Depositary Receipts](index=7&type=section&id=(II)%20Overview%20of%20Company%20Depositary%20Receipts) - The company's shares are **A-shares**, listed on the **STAR Market of the Shanghai Stock Exchange**, with stock abbreviation **OKE** and stock code **688308**[16](index=16&type=chunk) - The company has **no depositary receipts**[17](index=17&type=chunk) [VI. Key Accounting Data and Financial Indicators](index=7&type=section&id=VI.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This section discloses the company's key accounting data and financial indicators for the current reporting period, explaining the significant decline in net profit [(I) Key Accounting Data](index=7&type=section&id=(I)%20Key%20Accounting%20Data) [(II) Key Financial Indicators](index=7&type=section&id=(II)%20Key%20Financial%20Indicators) Key Accounting Data (January-June 2025 vs. January-June 2024) (CNY) | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | Change (%) from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 603,478,961.65 | 579,309,409.45 | 4.17 | | Total Profit | -8,549,206.38 | 67,027,477.23 | N/A | | Net Profit Attributable to Shareholders of Listed Company | 775,353.97 | 60,094,162.67 | -98.71 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | -19,147,209.52 | 37,776,350.58 | N/A | | Net Cash Flow from Operating Activities | -129,929,205.91 | -106,549,390.38 | N/A | | **As of Current Period End vs. Prior Year End** | | | | | Net Assets Attributable to Shareholders of Listed Company | 2,550,848,275.72 | 2,548,169,494.65 | 0.11 | | Total Assets | 3,942,583,021.62 | 3,959,655,725.47 | -0.43 | Key Financial Indicators (January-June 2025 vs. January-June 2024) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change (%) from Prior Year Period | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.00 | 0.38 | -98.70 | | Diluted Earnings Per Share (CNY/share) | 0.00 | 0.38 | -98.70 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (CNY/share) | -0.12 | 0.24 | N/A | | Weighted Average Return on Net Assets (%) | 0.03 | 2.32 | decreased by 2.29 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | -0.75 | 1.46 | decreased by 2.21 percentage points | | R&D Investment as Percentage of Operating Revenue (%) | 6.37 | 6.86 | decreased by 0.49 percentage points | - Net profit attributable to shareholders of the listed company decreased by **98.71%** year-on-year, primarily due to low capacity utilization of the CNC tool industrial park project, increased fixed asset depreciation, significantly higher material costs leading to a decline in gross profit margin, and an increase in period expense ratio[18](index=18&type=chunk) [VIII. Non-Recurring Gains and Losses Items and Amounts](index=7&type=section&id=VIII.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section details the company's non-recurring gains and losses items and their amounts for the reporting period, totaling **CNY 19,922,563.49**, with government subsidies as the main contributor Non-Recurring Gains and Losses Items and Amounts (CNY) | Non-Recurring Gains and Losses Item | Amount | | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | -391,854.65 | | Government Subsidies Included in Current Period Profit and Loss | 20,542,268.31 | | Gains and Losses from Fair Value Changes and Disposal of Financial Assets | 3,345,575.64 | | Other Non-Operating Income and Expenses | -43,083.36 | | Less: Income Tax Impact | 3,530,058.43 | | Impact on Minority Shareholders' Equity (After Tax) | 284.02 | | Total | 19,922,563.49 | Section III Management Discussion and Analysis [I. Industry and Main Business Overview During the Reporting Period](index=9&type=section&id=I.%20Industry%20and%20Main%20Business%20Overview%20During%20the%20Reporting%20Period) This section details the company's main business, products, operating model, and industry characteristics, highlighting its focus on CNC tools and cemented carbide products [(I) Main Business, Products, or Services](index=9&type=section&id=(I)%20Main%20Business,%20Products,%20or%20Services) [(II) Main Operating Model](index=10&type=section&id=(II)%20Main%20Operating%20Model) [(III) Industry Situation](index=11&type=section&id=(III)%20Industry%20Situation) - The company's main business involves the R&D, production, and sales of **CNC tool products** and **cemented carbide products**, operating as a high-tech enterprise[24](index=24&type=chunk) - CNC tool products, including **CNC inserts** and **solid carbide tools**, are widely used in general machinery, automotive, mold, and aerospace industries[25](index=25&type=chunk) - Cemented carbide products primarily consist of **saw blades**, **rods**, and **round blanks**, with saw blades recognized as a national manufacturing single champion product[25](index=25&type=chunk) - The company adopts a **'production-based procurement'** model and a **'sales-driven production with moderate inventory'** model, with sales primarily through direct channels supplemented by distribution[29](index=29&type=chunk)[30](index=30&type=chunk)[32](index=32&type=chunk) - Cemented carbide tools dominate the global tool market, accounting for **over 60%**, with domestic output value gradually increasing to approximately **53%**[33](index=33&type=chunk)[34](index=34&type=chunk) - Significant potential exists for increasing the **CNC penetration rate** in domestic machine tools, driving continuous growth in demand for CNC tools[34](index=34&type=chunk) - The import substitution of domestic CNC tools is accelerating, with tool customs import value decreasing by **2.66%** year-on-year in 2024[34](index=34&type=chunk) - The company holds the **largest production scale for saw blade products** in China, with its CNC insert products achieving advanced industry performance and multiple **'Golden Edge Award'** and **'Ringier Technology Innovation Award'** recognitions[35](index=35&type=chunk) - Future industry trends include adjustments in tool consumption structure, enhanced CNC tool processing efficiency, accelerated import substitution, increased market concentration, and continuous improvement in domestic tool enterprises' comprehensive service capabilities[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) [II. Discussion and Analysis of Operations](index=12&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) During the reporting period, the company pursued a "market-driven, technology-first" strategy, achieving stable operating revenue growth but a significant decline in net profit attributable to the parent company 2025 Semi-Annual Operating Performance (CNY 10,000s) | Indicator | Amount (CNY 10,000s) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Operating Revenue | 60,347.90 | 4.17 | | Net Profit Attributable to Shareholders of Listed Company | 77.54 | -98.71 | | Operating Revenue from CNC Tool Products | 30,611.39 | -4.69 | | Operating Revenue from Cemented Carbide Products | 28,307.01 | 11.25 | - The company focuses on high-end tool import substitution, launching high-performance milling inserts (e.g., **R6 blade processing milling inserts**) and developing **RHD-G/RHD-Mn series crown drills** and **OMT/OMS series milling cutters for titanium/superalloys**[39](index=39&type=chunk) - In superhard tools, the company developed **H25/H15 series PCBN inserts**, optimized **PCD irregular edge laser processing technology**, and enhanced tool performance for **new energy battery aluminum shell processing**[39](index=39&type=chunk) - Strengthened direct sales team, opened nearly **30 domestic and international operation centers**, and promoted comprehensive tool solutions for fuel vehicles, new energy vehicles, aerospace, rail transit, energy, and military industries[41](index=41&type=chunk) - Added **over 2,700 new types of solid carbide tools and CNC tool bodies** and **over 1,500 new types of CNC inserts**[41](index=41&type=chunk) - Filed **82 new patent applications**, obtained **15 new authorized patents** (including **3 invention patents**), accumulating **202 authorized domestic patents**[41](index=41&type=chunk) - Overcame challenges in coating grain growth and size control, launched high-performance coating processes specifically for **steel and cast iron turning**, and developed multiple customized coatings[41](index=41&type=chunk) - Improved corporate governance, advanced lean production and digital transformation, optimized **ERP-MES system integration**, and enhanced operational efficiency[42](index=42&type=chunk) [III. Analysis of Core Competencies During the Reporting Period](index=13&type=section&id=III.%20Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) This section analyzes the company's core competencies, including technological R&D advantages, product performance stability, extensive product series, integrated tool technology, and brand influence [(I) Core Competency Analysis](index=13&type=section&id=(I)%20Core%20Competency%20Analysis) [(III) Core Technologies and R&D Progress](index=15&type=section&id=(III)%20Core%20Technologies%20and%20R%26D%20Progress) - The company possesses comprehensive core technologies and a well-structured talent pool, having established a multidisciplinary technical team and independently developed a process technology system spanning **cemented carbide manufacturing**, **tool manufacturing**, and **integrated applications**[43](index=43&type=chunk) - The company's enterprise technology center was recognized as a **'Hunan Provincial Enterprise Technology Center'**, approved to establish a **National Postdoctoral Research Workstation**, and actively engages in industry-university-research cooperation with universities[45](index=45&type=chunk) - The company boasts comprehensive R&D facilities and advanced testing instruments, ensuring continuous and efficient R&D activities[45](index=45&type=chunk) - The company has established a quality control system covering the entire product lifecycle, from design to after-sales service, ensuring **stable product performance** and **consistent precision**[46](index=46&type=chunk) - The company offers a comprehensive range of **turning, milling, and drilling CNC inserts**, along with **dozens of grades and thousands of specifications of saw blade products**, meeting diverse customer needs[47](index=47&type=chunk) - The company has mastered the entire process technology system for **cemented carbide manufacturing**, **tool manufacturing**, and **integrated applications**, enabling it to provide customized cutting processing solutions to clients[48](index=48&type=chunk) - The company's **'OKE' brand** has twice received the **'User Satisfied Brand'** award and established strategic partnerships with renowned domestic and international customers, continuously enhancing its brand influence[48](index=48&type=chunk)[49](index=49&type=chunk) - The company core technologies are categorized into four segments: **substrate material design and preparation**, **insert structure design**, **insert precision and consistency control**, and **coating design and preparation**[50](index=50&type=chunk) - During the reporting period, the company obtained **15 new authorized domestic patents** and filed **82 new patent applications**, accumulating **202 authorized domestic patents** (including **32 invention patents**)[53](index=53&type=chunk)[54](index=54&type=chunk) R&D Investment (CNY) | Indicator | Current Period Amount | Prior Year Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 38,453,454.13 | 39,733,439.38 | -3.22 | | Total R&D Investment | 38,453,454.13 | 39,733,439.38 | -3.22 | | Total R&D Investment as Percentage of Operating Revenue (%) | 6.37 | 6.86 | decreased by 0.49 percentage points | - The company's ongoing R&D projects include **CVD steel turning groove development**, **second-generation stainless steel turning groove research**, **independent series grooving tool development**, and **high-hard steel milling product development**, encompassing **37 projects** with an estimated total investment of **CNY 65.7 million**[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk)[63](index=63&type=chunk) R&D Personnel (persons) | Indicator | Current Period Amount | Prior Year Period Amount | | :--- | :--- | :--- | | Number of Company R&D Personnel | 254 | 244 | | R&D Personnel as Percentage of Total Company Staff (%) | 18.1 | 19.15 | | Total R&D Personnel Compensation (CNY 10,000s) | 1,507.17 | 1,458.57 | | Average R&D Personnel Compensation (CNY 10,000s) | 5.93 | 5.98 | [IV. Risk Factors](index=22&type=section&id=IV.%20Risk%20Factors) This section details the company's main risks, including intensified market competition, management risks from rapid expansion, R&D personnel turnover, and raw material price fluctuations - The company faces intense competition from domestic and international enterprises in the **CNC tool manufacturing sector**, with high-end markets still dominated by imported brands[66](index=66&type=chunk) - Company expansion may lead to **reduced management efficiency** and **increased management expenses**, posing risks of insufficient management capabilities[67](index=67&type=chunk) - The loss of core technical personnel and R&D talent could result in **technology leakage**, adversely affecting the company's production and operations[68](index=68&type=chunk) - The company's products are primarily used in general machinery, automotive, and mold industries, making them highly susceptible to **changes in industry policies and demand**[69](index=69&type=chunk) - Prices of key raw materials, **tungsten carbide** and **cobalt powder**, are highly volatile, potentially impacting the company's operating performance[70](index=70&type=chunk) - Factors such as market competition, production and sales scale, new product releases, product structure, and raw material price fluctuations may cause **volatility in the company's gross profit margin** from its main business[70](index=70&type=chunk) - The rapid growth in accounts receivable may **increase the company's working capital pressure** and pose risks of non-payment at maturity[70](index=70&type=chunk) - Low capacity utilization of the CNC tool industrial park project, rising costs, increased expenses, and higher credit impairment provisions have led to a decline in profit levels, posing risks of **further performance decline or losses**[71](index=71&type=chunk) [V. Key Operating Performance During the Reporting Period](index=23&type=section&id=V.%20Key%20Operating%20Performance%20During%20the%20Reporting%20Period) This section analyzes the company's key operating performance, including financial statement item changes, asset and liability status, investment, and subsidiary operations [(I) Main Business Analysis](index=23&type=section&id=(I)%20Main%20Business%20Analysis) [(III) Analysis of Assets and Liabilities](index=25&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) [(IV) Analysis of Investment Status](index=27&type=section&id=(IV)%20Analysis%20of%20Investment%20Status) [(VI) Analysis of Major Controlled and Invested Companies](index=28&type=section&id=(VI)%20Analysis%20of%20Major%20Controlled%20and%20Invested%20Companies) Analysis of Changes in Financial Statement Items (CNY) | Item | Current Period Amount | Prior Year Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 603,478,961.65 | 579,309,409.45 | 4.17 | | Operating Cost | 510,639,555.35 | 427,854,118.21 | 19.35 | | Selling Expenses | 24,884,213.73 | 19,731,393.52 | 26.11 | | Administrative Expenses | 29,888,703.52 | 20,480,348.19 | 45.94 | | Financial Expenses | 7,163,113.57 | 7,655,259.00 | -6.43 | | R&D Expenses | 38,453,454.13 | 39,733,439.38 | -3.22 | | Net Cash Flow from Operating Activities | -129,929,205.91 | -106,549,390.38 | N/A | | Net Cash Flow from Investing Activities | 57,123,162.83 | -83,250,987.82 | N/A | | Net Cash Flow from Financing Activities | 241,087,030.40 | -97,170,681.05 | N/A | - Operating revenue growth was primarily driven by an increase in **cemented carbide product revenue**; operating cost growth was mainly due to **higher raw material costs** and **increased fixed asset depreciation**[74](index=74&type=chunk)[76](index=76&type=chunk) - Selling expenses increased primarily due to **higher employee compensation for sales personnel**; administrative expenses increased mainly due to **higher consulting service fees**[76](index=76&type=chunk) - Net cash flow from operating activities decreased primarily due to **reduced input tax refunds**; net cash flow from investing activities increased mainly due to **lower cash payments for investments**[76](index=76&type=chunk) - Net cash flow from financing activities increased primarily due to **new working capital loans**[76](index=76&type=chunk) Changes in Assets and Liabilities (CNY) | Item Name | Current Period End Balance | Percentage of Total Assets at Current Period End (%) | Prior Year End Balance | Percentage of Total Assets at Prior Year End (%) | Change (%) from Prior Year End Balance | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 415,410,795.94 | 10.54 | 300,014,865.67 | 7.58 | 38.46 | Matured wealth management products recovered | | Financial Assets Held for Trading | 180,891,122.12 | 4.59 | 371,776,120.34 | 9.39 | -51.34 | Decrease in purchased wealth management products | | Notes Receivable | 146,430,824.32 | 3.71 | 228,229,114.50 | 5.76 | -35.84 | Some notes receivable matured and derecognized | | Other Receivables | 1,703,130.52 | 0.04 | 3,564,091.99 | 0.09 | -52.21 | Deposits recovered | | Construction in Progress | 50,379,995.10 | 1.28 | 151,414,141.80 | 3.82 | -66.73 | Some machinery and equipment transferred to fixed assets | | Deferred Income Tax Assets | 34,949,273.14 | 0.89 | 23,531,412.86 | 0.59 | 48.52 | Increase in impairment provisions and deductible losses | | Short-Term Borrowings | 752,460,011.49 | 19.09 | 466,282,094.45 | 11.78 | 61.37 | Increase in working capital loans | | Notes Payable | 61,440,639.10 | 1.56 | 324,762,418.05 | 8.20 | -81.08 | Some notes payable matured and settled | | Contract Liabilities | 7,659,401.06 | 0.19 | 14,458,671.88 | 0.37 | -47.03 | Decrease in advance receipts for goods | | Employee Benefits Payable | 10,876,334.69 | 0.28 | 35,866,432.87 | 0.91 | -69.68 | Year-end bonuses accrued at prior year-end disbursed | | Taxes Payable | 669,206.63 | 0.02 | 5,968,909.93 | 0.15 | -88.79 | Decrease in corporate income tax payable | | Other Payables | 4,985,747.30 | 0.13 | 7,713,290.95 | 0.19 | -35.36 | Expenses accrued at prior year-end reimbursed | | Non-Current Liabilities Due Within One Year | 32,912,380.75 | 0.83 | 62,432,823.71 | 1.58 | -47.28 | Partial repayment of long-term borrowings | - Restricted cash and bank balances totaled **CNY 58,978,129.11** at period-end, mainly comprising bank acceptance bill deposits, domestic letter of credit deposits, and structured deposit guarantees[79](index=79&type=chunk) - During the reporting period, the company established a new controlled subsidiary, **OKE (Shandong) New Energy Technology Co., Ltd.**, with a registered capital of **CNY 30 million** and a **60%** equity stake, which has completed establishment and industrial and commercial registration[82](index=82&type=chunk) Financial Information of Major Controlled and Invested Companies (CNY 10,000s) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhuzhou OKE Cutting Tool Co., Ltd. | Subsidiary | R&D, processing, and sales of cemented carbide inserts, CNC inserts, etc. | 70,000 | 167,589.05 | 66,725.65 | 17,261.20 | -3,294.11 | -2,546.44 | | Zhuzhou OKE Intelligent Technology Co., Ltd. | Subsidiary | Engineering and technical research and experimental development; technical services, etc. | 5,000 | 4,165.74 | -149.24 | 1,245.81 | 166.62 | 124.90 | | Zhuzhou OKE New Energy Co., Ltd. | Subsidiary | Manufacturing and sales of metal wire ropes and their products; new material technology R&D, etc. | 5,000 | 18,760.43 | 208.43 | 1,302.73 | -974.04 | -578.40 | Section IV Corporate Governance, Environment, and Society [I. Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel](index=30&type=section&id=I.%20Changes%20in%20Directors,%20Supervisors,%20Senior%20Management,%20and%20Core%20Technical%20Personnel) During the reporting period, there were no changes in the company's directors, supervisors, senior management, or core technical personnel - During the reporting period, there were **no changes** in the company's directors, supervisors, senior management, or core technical personnel[88](index=88&type=chunk) [II. Profit Distribution or Capital Reserve Conversion Plan](index=30&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company's board of directors resolved that there is no profit distribution or capital reserve conversion plan for the current reporting period - The company has **no profit distribution plan or capital reserve conversion plan** for the current reporting period[88](index=88&type=chunk) [III. Status and Impact of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=30&type=section&id=III.%20Status%20and%20Impact%20of%20Equity%20Incentive%20Plans,%20Employee%20Stock%20Ownership%20Plans,%20or%20Other%20Employee%20Incentive%20Measures) This section discloses that the third vesting period of the company's 2022 restricted stock incentive plan was canceled due to unmet performance targets [(I) Equity Incentive Matters Disclosed in Interim Announcements with No Subsequent Progress or Changes](index=30&type=section&id=(I)%20Equity%20Incentive%20Matters%20Disclosed%20in%20Interim%20Announcements%20with%20No%20Subsequent%20Progress%20or%20Changes) - The third vesting period of the company's **2022 restricted stock incentive plan** did not meet the company-level performance assessment requirements, resulting in the **cancellation and invalidation of all granted but unvested restricted shares**[89](index=89&type=chunk) [V. Specifics of Consolidating Poverty Alleviation Achievements and Rural Revitalization Efforts](index=31&type=section&id=V.%20Specifics%20of%20Consolidating%20Poverty%20Alleviation%20Achievements%20and%20Rural%20Revitalization%20Efforts) The company actively supports national poverty alleviation and rural revitalization by locating its headquarters in a former poverty-stricken county, contributing significantly through tax payments and job creation - The company's headquarters is located in Yanling County, a former national poverty-stricken county, contributing nearly **CNY 100 million** in annual taxes[91](index=91&type=chunk) - The company provides **over 400 employment opportunities** in Yanling County, including **over 10 positions for people with disabilities**, actively supporting local poverty alleviation and rural revitalization[91](index=91&type=chunk) Section V Significant Matters [I. Fulfillment of Commitments](index=32&type=section&id=I.%20Fulfillment%20of%20Commitments) This section details the fulfillment of various commitments made by the company, its controlling shareholders, and other related parties during the reporting period, all of which were strictly adhered to [(I) Commitments by the Company's Actual Controllers, Shareholders, Related Parties, Acquirers, and the Company During or Continuing into the Reporting Period](index=32&type=section&id=(I)%20Commitments%20by%20the%20Company's%20Actual%20Controllers,%20Shareholders,%20Related%20Parties,%20Acquirers,%20and%20the%20Company%20During%20or%20Continuing%20into%20the%20Reporting%20Period) - Controlling shareholders and actual controllers, **Yuan Meihe** and **Tan Wenqing**, committed to resolving horizontal competition and related party transactions, and have strictly fulfilled these commitments[93](index=93&type=chunk)[94](index=94&type=chunk) - The company committed to adhering to its **profit distribution policy** and has strictly fulfilled this commitment[94](index=94&type=chunk) - The company, its controlling shareholders and actual controllers, directors, supervisors, senior management, and other shareholders have all strictly fulfilled commitments regarding **share repurchase for fraudulent issuance**, **diluted immediate return compensation**, **share repurchase**, and **legal liability for compensation** during the reporting period[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) [II. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties During the Reporting Period](index=38&type=section&id=II.%20Non-Operating%20Fund%20Occupation%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties%20During%20the%20Reporting%20Period) During the reporting period, there was no non-operating occupation of funds by controlling shareholders or other related parties - During the reporting period, the company had **no non-operating fund occupation** by controlling shareholders or other related parties[100](index=100&type=chunk) [III. Irregular Guarantees](index=38&type=section&id=III.%20Irregular%20Guarantees) During the reporting period, the company did not provide any external guarantees in violation of prescribed decision-making procedures - During the reporting period, the company had **no external guarantees provided in violation of prescribed decision-making procedures**[100](index=100&type=chunk) [IV. Semi-Annual Report Audit Status](index=39&type=section&id=IV.%20Semi-Annual%20Report%20Audit%20Status) This semi-annual report has not been audited - This semi-annual report is **unaudited**[4](index=4&type=chunk) [VII. Major Litigation and Arbitration Matters](index=39&type=section&id=VII.%20Major%20Litigation%20and%20Arbitration%20Matters) The company had no major litigation or arbitration matters during the current reporting period - The company had **no major litigation or arbitration matters** during the current reporting period[101](index=101&type=chunk) [IX. Explanation of the Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers During the Reporting Period](index=39&type=section&id=IX.%20Explanation%20of%20the%20Integrity%20Status%20of%20the%20Company,%20its%20Controlling%20Shareholders,%20and%20Actual%20Controllers%20During%20the%20Reporting%20Period) During the reporting period, the company, its controlling shareholders, and actual controllers maintained good integrity, with no unfulfilled court judgments or significant overdue debts - During the reporting period, the company, its controlling shareholders, and actual controllers maintained **good integrity**, with **no unfulfilled court judgments** or **significant overdue debts**[101](index=101&type=chunk) [X. Significant Related Party Transactions](index=39&type=section&id=X.%20Significant%20Related%20Party%20Transactions) This section discloses significant related party transactions, including the purchase of tungsten carbide and cobalt powder from a Greenmei subsidiary and a joint investment in a new energy technology company [(I) Related Party Transactions Related to Daily Operations](index=39&type=section&id=(I)%20Related%20Party%20Transactions%20Related%20to%20Daily%20Operations) [(III) Significant Related Party Transactions for Joint External Investments](index=40&type=section&id=(III)%20Significant%20Related%20Party%20Transactions%20for%20Joint%20External%20Investments) - During the reporting period, the company purchased **tungsten carbide** and **cobalt powder** from Greenmei subsidiaries Hubei Green Tungsten Resource Recycling Co., Ltd. and Jingmen Greenmei New Materials Co., Ltd., totaling **CNY 29.3244 million** (excluding tax), accounting for **8.91%** of similar transactions[102](index=102&type=chunk) - The company's controlled subsidiary, OKE New Energy, jointly invested with a related party to establish **OKE (Shandong) New Energy Technology Co., Ltd.**, with a registered capital of **CNY 50 million**, and OKE New Energy holding **60%** equity[104](index=104&type=chunk) [XI. Major Contracts and Their Fulfillment](index=41&type=section&id=XI.%20Major%20Contracts%20and%20Their%20Fulfillment) This section discloses the company's significant guarantees for its subsidiaries, totaling **CNY 75.3933 million**, representing **2.96%** of the company's net assets [(II) Major Guarantees Performed and Not Yet Fulfilled During the Reporting Period](index=41&type=section&id=(II)%20Major%20Guarantees%20Performed%20and%20Not%20Yet%20Fulfilled%20During%20the%20Reporting%20Period) Company and Subsidiary Guarantees for Subsidiaries (CNY 10,000s) | Guarantor | Guaranteed Party | Guaranteed Amount | Guarantee Start Date | Guarantee End Date | Guarantee Type | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhuzhou OKE CNC Precision Tool Co., Ltd. | Zhuzhou OKE Cutting Tool Co., Ltd. | 2,800 | 2024/11/27 | 2027/11/27 | Joint and Several Liability Guarantee | No | | Zhuzhou OKE CNC Precision Tool Co., Ltd. | Zhuzhou OKE New Energy Co., Ltd. | 1,360 | 2024/12/23 | 2025/12/22 | Joint and Several Liability Guarantee | No | | Zhuzhou OKE CNC Precision Tool Co., Ltd. | Zhuzhou OKE New Energy Co., Ltd. | 272 | 2024/12/31 | 2025/12/29 | Joint and Several Liability Guarantee | No | | Zhuzhou OKE CNC Precision Tool Co., Ltd. | Zhuzhou OKE New Energy Co., Ltd. | 5,000 | 2025/6/30 | 2028/6/30 | Joint and Several Liability Guarantee | No | Total Company Guarantees (Including Guarantees for Subsidiaries) (CNY 10,000s) | Indicator | Amount | | :--- | :--- | | Total Guarantees (A+B) | 7,539.33 | | Total Guarantees as Percentage of Company Net Assets (%) | 2.96 | | Debt Guarantees Provided Directly or Indirectly for Guaranteed Parties with Asset-Liability Ratio Exceeding 70% (D) | 6,069.47 | Section VI Share Changes and Shareholder Information [I. Share Capital Changes](index=43&type=section&id=I.%20Share%20Capital%20Changes) During the reporting period, there were no changes in the company's total ordinary share capital or share capital structure [1. Table of Share Changes](index=43&type=section&id=1.%20Table%20of%20Share%20Changes) [2. Explanation of Share Changes](index=43&type=section&id=2.%20Explanation%20of%20Share%20Changes) - During the reporting period, there were **no changes** in the company's total ordinary share capital or share capital structure[111](index=111&type=chunk) [II. Shareholder Information](index=43&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had **6,756 ordinary shareholders**, with Yuan Meihe, Greenmei Co., Ltd., and Tan Wenqing among the top three [(I) Total Number of Shareholders](index=43&type=section&id=(I)%20Total%20Number%20of%20Shareholders) [(II) Top Ten Shareholders and Top Ten Shareholders with Unlimited Conditions as of the End of the Reporting Period](index=43&type=section&id=(II)%20Top%20Ten%20Shareholders%20and%20Top%20Ten%20Shareholders%20with%20Unlimited%20Conditions%20as%20of%20the%20End%20of%20the%20Reporting%20Period) - As of the end of the reporting period, the company had a total of **6,756 ordinary shareholders**[112](index=112&type=chunk) Top Ten Shareholders as of the End of the Reporting Period (Excluding Shares Lent via Securities Refinancing) | Shareholder Name (Full Name) | Change During Reporting Period | Number of Shares Held at Period End | Percentage (%) | Number of Restricted Shares Held | Number of Restricted Shares Including Those Lent via Securities Refinancing | Pledge, Mark, or Freeze Status | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yuan Meihe | 1,886,076 | 27,170,076 | 17.11 | 0 | 0 | None | Domestic Natural Person | | Greenmei Co., Ltd. | 0 | 16,523,500 | 10.41 | 0 | 0 | None | Domestic Non-State-Owned Legal Person | | Tan Wenqing | 0 | 14,346,360 | 9.04 | 0 | 0 | None | Domestic Natural Person | | Yueqing Dehui Equity Investment Partnership (Limited Partnership) | 0 | 9,374,121 | 5.90 | 0 | 0 | None | Domestic Non-State-Owned Legal Person | | Genertec Venture Capital Co., Ltd. - Genertec High-End Equipment Industry Equity Investment (Tongxiang) Partnership (Limited Partnership) | 0 | 4,415,706 | 2.78 | 0 | 0 | None | Other | | Guangdong Yueke Zongheng Rongtong Venture Capital Partnership (Limited Partnership) | 0 | 3,059,224 | 1.93 | 0 | 0 | None | Other | | Ma Huaiyi | 0 | 2,463,632 | 1.55 | 0 | 0 | None | Domestic Natural Person | | Zhuzhou State-owned Assets Investment Holding Group Co., Ltd. | 0 | 1,301,000 | 0.82 | 0 | 0 | None | Other | | Jinjiang Heming Asset Management Co., Ltd. - Heming Value Discovery No. 2 Private Securities Investment Fund | -716,312 | 1,250,441 | 0.79 | 0 | 0 | None | Other | | Zhuzhou OKE CNC Precision Tool Co., Ltd. Repurchase Special Securities Account | 0 | 1,250,000 | 0.79 | 0 | 0 | None | RMB Ordinary Shares | - Yuan Meihe and Tan Wenqing are the company's actual controllers and **parties acting in concert**[115](index=115&type=chunk) [III. Directors, Supervisors, Senior Management, and Core Technical Personnel](index=45&type=section&id=III.%20Directors,%20Supervisors,%20Senior%20Management,%20and%20Core%20Technical%20Personnel) This section discloses changes in shareholdings of directors, supervisors, senior management, and core technical personnel, noting non-trade transfers and the cancellation of restricted stock vesting due to unmet performance conditions [(I) Shareholding Changes of Current and Resigned Directors, Supervisors, Senior Management, and Core Technical Personnel During the Reporting Period](index=45&type=section&id=(I)%20Shareholding%20Changes%20of%20Current%20and%20Resigned%20Directors,%20Supervisors,%20Senior%20Management,%20and%20Core%20Technical%20Personnel%20During%20the%20Reporting%20Period) [(II) Equity Incentives Granted to Directors, Supervisors, Senior Management, and Core Technical Personnel During the Reporting Period](index=46&type=section&id=(II)%20Equity%20Incentives%20Granted%20to%20Directors,%20Supervisors,%20Senior%20Management,%20and%20Core%20Technical%20Personnel%20During%20the%20Reporting%20Period) Shareholding Changes of Current and Resigned Directors, Supervisors, Senior Management, and Core Technical Personnel During the Reporting Period (shares) | Name | Position | Number of Shares Held at Beginning of Period | Number of Shares Held at End of Period | Change in Shares During Reporting Period | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Yuan Meihe | Director | 25,284,000 | 27,170,076 | 1,886,076 | Non-trade transfer | | Zhang Yi | Supervisor | 0 | 121,196 | 121,196 | Non-trade transfer | | Han Hongtao | Senior Management | 11,200 | 617,163 | 605,963 | Non-trade transfer | | Liang Baoyu | Senior Management | 11,200 | 283,883 | 272,683 | Non-trade transfer | | Li Shuqiang | Core Technical Personnel | 0 | 212,088 | 212,088 | Non-trade transfer | | Su Zhenhua | Core Technical Personnel | 6,200 | 289,636 | 283,436 | Share reduction, non-trade transfer | | Luo Lijun | Core Technical Personnel | 3,400 | 151,493 | 148,093 | Share reduction, non-trade transfer | | Liu Gang | Core Technical Personnel | 0 | 45,446 | 45,446 | Non-trade transfer | | Chen Xinzh | Core Technical Personnel | 1,300 | 23,746 | 22,446 | Share reduction, non-trade transfer | - On August 6, 2025, company director **Mu Menggang resigned**, all company supervisors resigned, **Gu Jianguo was elected as a director**, and **Su Zhenhua was elected as an employee director**; the board of supervisors has been abolished[118](index=118&type=chunk) - The third vesting period of the company's **2022 restricted stock incentive plan** did not meet the company-level vesting conditions, resulting in the **cancellation and invalidation of 34,440 restricted shares** granted but unvested to directors, senior management, and core technical personnel for that period[119](index=119&type=chunk) Section VII Bond-Related Information [I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=47&type=section&id=I.%20Corporate%20Bonds%20(Including%20Enterprise%20Bonds)%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - During the reporting period, the company had **no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments**[122](index=122&type=chunk) [II. Convertible Corporate Bonds](index=47&type=section&id=II.%20Convertible%20Corporate%20Bonds) During the reporting period, the company had no convertible corporate bonds - During the reporting period, the company had **no convertible corporate bonds**[122](index=122&type=chunk) Section VIII Financial Report [I. Audit Report](index=48&type=section&id=I.%20Audit%20Report) This semi-annual report has not been audited - This semi-annual report is **unaudited**[4](index=4&type=chunk) [II. Financial Statements](index=48&type=section&id=II.%20Financial%20Statements) This section provides the company's 2025 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity [Consolidated Balance Sheet](index=48&type=section&id=Consolidated%20Balance%20Sheet) [Parent Company Balance Sheet](index=50&type=section&id=Parent%20Company%20Balance%20Sheet) [Consolidated Income Statement](index=52&type=section&id=Consolidated%20Income%20Statement) [Parent Company Income Statement](index=54&type=section&id=Parent%20Company%20Income%20Statement) [Consolidated Cash Flow Statement](index=56&type=section&id=Consolidated%20Cash%20Flow%20Statement) [Parent Company Cash Flow Statement](index=57&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) [Consolidated Statement of Changes in Owners' Equity](index=59&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Owners'%20Equity) [Parent Company Statement of Changes in Owners' Equity](index=64&type=section&id=Parent%20Company%20Statement%20of%20Changes%20in%20Owners'%20Equity) - The consolidated balance sheet shows that as of June 30, 2025, the company's total assets were **CNY 3,942,583,021.62**, and total equity attributable to parent company owners was **CNY 2,550,848,275.72**[125](index=125&type=chunk)[126](index=126&type=chunk) - The consolidated income statement shows that for the first half of 2025, operating revenue was **CNY 603,478,961.65**, and net profit attributable to parent company shareholders was **CNY 775,353.97**[131](index=131&type=chunk)[133](index=133&type=chunk) - The consolidated cash flow statement shows that for the first half of 2025, net cash flow from operating activities was **-CNY 129,929,205.91**, net cash flow from investing activities was **CNY 57,123,162.83**, and net cash flow from financing activities was **CNY 241,087,030.40**[138](index=138&type=chunk)[139](index=139&type=chunk) [III. Company's Basic Information](index=68&type=section&id=III.%20Company's%20Basic%20Information) This section outlines the company's history, registered capital, address, legal representative, and main business, emphasizing its specialization in the cemented carbide tool industry - The company, formerly **Zhuzhou Jingcheng Industrial Co., Ltd.**, was established on January 23, 1996, and restructured into a joint-stock company in July 2017[154](index=154&type=chunk) - The company was listed on the **STAR Market of the Shanghai Stock Exchange** on December 10, 2020, with a registered capital of **CNY 158,781,708**[154](index=154&type=chunk) - The company's main business is the R&D, production, and sales of **cemented carbide products** and **CNC tool products**, operating within the cemented carbide tool industry[154](index=154&type=chunk) [IV. Basis of Financial Statement Preparation](index=68&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) This section states that the financial statements are prepared on a going concern basis, adhering to enterprise accounting standards and historical cost measurement, with no identified issues affecting going concern - The company's financial statements are prepared on a **going concern basis**, adhering to **Enterprise Accounting Standards** and relevant regulations of the China Securities Regulatory Commission[155](index=155&type=chunk) - Accounting is based on the **accrual method**, and except for certain financial instruments, all items are measured at **historical cost**[155](index=155&type=chunk) - The company assessed its ability to continue as a going concern for **12 months** from the end of the reporting period and found **no matters affecting its going concern ability**[156](index=156&type=chunk) [V. Significant Accounting Policies and Estimates](index=68&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's significant accounting policies and estimates for financial instruments, inventory, fixed assets, intangible assets, revenue recognition, government grants, deferred taxes, and leases [11. Financial Instruments](index=70&type=section&id=11.%20Financial%20Instruments) [16. Inventories](index=76&type=section&id=16.%20Inventories) [21. Fixed Assets](index=78&type=section&id=21.%20Fixed%20Assets) [22. Construction in Progress](index=79&type=section&id=22.%20Construction%20in%20Progress) [26. Intangible Assets](index=80&type=section&id=26.%20Intangible%20Assets) [34. Revenue](index=83&type=section&id=34.%20Revenue) [36. Government Grants](index=84&type=section&id=36.%20Government%20Grants) [37. Deferred Income Tax Assets/Liabilities](index=85&type=section&id=37.%20Deferred%20Income%20Tax%20Assets%2FLiabilities) [38. Leases](index=85&type=section&id=38.%20Leases) - The company classifies financial assets into three categories based on its business model for managing financial assets and contractual cash flow characteristics: **measured at amortized cost**, **measured at fair value through other comprehensive income**, and **measured at fair value through profit or loss**[171](index=171&type=chunk) - For notes receivable, accounts receivable, and contract assets, the company measures loss provisions at an amount equal to the **expected credit losses over the entire lifetime**, regardless of the presence of a significant financing component[186](index=186&type=chunk) - Inventories are categorized into raw materials, revolving materials, consigned processing materials, work-in-progress, finished goods, and goods in transit, valued using the **weighted average method** upon issuance, and managed under a **perpetual inventory system**[195](index=195&type=chunk)[193](index=193&type=chunk) - Fixed assets are depreciated using the **straight-line method** over their useful lives: buildings **20-30 years**, machinery and equipment **3-10 years**, transportation equipment **8 years**, and office equipment **3-5 years**[202](index=202&type=chunk) - Intangible assets, including land use rights, software, and patent rights, are amortized using the **straight-line method** over their finite useful lives: land use rights **50 years**, software **5 years**, and patent rights **10 years**[207](index=207&type=chunk) - The company recognizes revenue when the customer obtains control of the related goods or services; for domestic sales, this is upon **customer confirmation of the reconciliation statement**, and for export sales, upon **customs declaration, departure from port, and receipt of bill of lading**[223](index=223&type=chunk)[225](index=225&type=chunk) - Government grants are classified as **asset-related** or **income-related**; asset-related grants are recognized as deferred income and amortized into profit or loss over the asset's useful life, while income-related grants compensating for incurred costs are recognized in current profit or loss[232](index=232&type=chunk) - The company recognizes **right-of-use assets** and **lease liabilities** for all leases, except for short-term and low-value asset leases, and amortizes them using the **straight-line method** into the cost of related assets or current profit or loss[236](index=236&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk) [VI. Taxation](index=87&type=section&id=VI.%20Taxation) This section lists the company's main tax categories and rates, and explains the high-tech enterprise income tax preferential policies enjoyed by the company and its subsidiaries Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Calculated based on sales of goods and taxable services as stipulated by tax law, with output tax minus deductible input tax as VAT payable | 13%, 9%, 6% | | Urban Maintenance and Construction Tax | Based on actual turnover tax paid | 5%, 7% | | Corporate Income Tax | Based on taxable income | 15%, 25% | | Education Surcharge | Based on actual turnover tax paid | 3% | | Local Education Surcharge | Based on actual turnover tax paid | 2% | - The company and its subsidiary, **Zhuzhou OKE Cutting Tool Co., Ltd.**, are both recognized as high-tech enterprises, enjoying a **15% corporate income tax preferential rate**[248](index=248&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=88&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes for various consolidated financial statement items, explaining their period-end balances, changes, and relevant circumstances [1. Cash and Bank Balances](index=88&type=section&id=1.%20Cash%20and%20Bank%20Balances) Cash and Bank Balances (CNY) | Item | Period-End Balance | Period-Beginning Balance | | :--- | :--- | :--- | | Bank Deposits | 356,432,666.83 | 187,057,974.06 | | Other Cash and Bank Balances | 58,978,129.11 | 112,956,891.61 | | Total | 415,410,795.94 | 300,014,865.67 | - Restricted other cash and bank balances totaled **CNY 58,978,129.11** at period-end, mainly comprising bill deposits, domestic letter of credit deposits, and structured deposit guarantees[250](index=250&type=chunk) [2. Financial Assets Held for Trading](index=88&type=section&id=2.%20Financial%20Assets%20Held%20for%20Trading) Financial Assets Held for Trading (CNY) | Item | Period-End Balance | Period-Beginning Balance | | :--- | :--- | :--- | | Large-Denomination Certificates of Deposit | 160,718,984.61 | 289,467,539.31 | | Other Wealth Management Products | 20,172,137.51 | 82,308,581.03 | | Total | 180,891,122.12 | 371,776,120.34 | [4. Notes Receivable](index=89&type=section&id=4.%20Notes%20Receivable) Notes Receivable (CNY) | Item | Period-End Balance | Period-Beginning Balance | | :--- | :--- | :--- | | Bank Acceptance Bills | 131,585,285.44 | 217,399,364.65 | | Commercial Acceptance Bills | 14,845,538.88 | 10,829,749.85 | | Total | 146,430,824.32 | 228,229,114.50 | - Notes receivable endorsed or discounted and not yet due totaled **CNY 112,194,206.35** at period-end[256](index=256&type=chunk) [5. Accounts Receivable](index=92&type=section&id=5.%20Accounts%20Receivable) Accounts Receivable (CNY) | Aging | Period-End Book Balance | | :--- | :--- | | Within 1 year (inclusive) | 470,291,530.04 | | 1 to 2 years | 45,147,248.09 | | 2 to 3 years | 6,010,581.25 | | 3 to 4 years | 1,344,792.40 | | Total | 522,794,151.78 | - The period-end balance of accounts receivable impairment provision was **CNY 33,616,600.17**, including **CNY 2,754,990.97** for individually assessed provisions and **CNY 30,861,609.20** for collectively assessed provisions[263](index=263&type=chunk) [7. Financing for Receivables](index=96&type=section&id=7.%20Financing%20for%20Receivables) [8. Prepayments](index=98&type=section&id=8.%20Prepayments) [9. Other Receivables](index=98&type=section&id=9.%20Other%20Receivables) [10. Inventories](index=103&type=section&id=10.%20Inventories) Inventory Classification (CNY) | Item | Period-End Book Value | | :--- | :--- | | Raw Materials | 122,784,800.42 | | Work-in-Progress | 190,033,940.60 | | Finished Goods | 264,182,320.42 | | Revolving Materials | 9,641,144.64 | | Goods in Transit | 62,408,505.32 | | Consigned Processing Materials | 6,647,638.13 | | Total | 655,698,349.53 | - The period-end balance of inventory impairment provision was **CNY 23,820,093.49**, with **CNY 9,674,346.37** recognized in the current period[292](index=292&type=chunk) [13. Other Current Assets](index=105&type=section&id=13.%20Other%20Current

Investment Rating - The industry investment rating is "Overweight" [3] Core Viewpoints - The report emphasizes the significant growth potential in the humanoid robotics sector, with a projected cumulative global demand of approximately 2 million units by 2030, indicating a critical breakthrough phase from 0 to 1 [6][20] - The report highlights the acceleration of N-type penetration in photovoltaic equipment, strengthening the competitive edge of leading companies under the Matthew effect [21] - The energy storage sector is identified as essential for building a new type of power grid, with favorable policies enhancing industry prosperity [21] - The semiconductor equipment market is expected to reach $140 billion by 2030, with an increasing share from mainland China, although the domestic production rate remains low [21] - The automation market, particularly industrial consumables, is projected to grow from approximately 40 billion to 55.7 billion by 2026, benefiting from increased concentration and import substitution [22] - Hydrogen energy, particularly green hydrogen, aligns with carbon neutrality goals, supported by the rapid development of photovoltaic and wind energy [21] Summary by Sections Humanoid Robotics - Key companies recommended for investment include Huasheng Tiancai, Sanhui Electric, and Zhejiang Rongtai, among others [4] - The report discusses the recent humanoid robot sports event in Beijing, showcasing over 500 robots from 16 countries competing in various categories [15][20] - The introduction of the Genie Envisioner platform by Zhiyuan Robotics is noted as a significant advancement in the field, integrating video generation with robotic control [11][20] Photovoltaic Equipment - The report suggests focusing on leading companies like Maiwei and Jiejiacreating, which possess technological innovation and customer base advantages [21] - The overall price center of the photovoltaic industry chain is declining, with a focus on cost and efficiency improvements [21] Energy Storage - The report highlights the favorable policies for both generation-side and user-side energy storage, driving comprehensive development in the sector [21] - Companies like Xingyun and Kexin are identified as key players in the energy storage market [21] Semiconductor Equipment - The semiconductor equipment market is projected to double in the next decade, with a significant increase in demand for domestic production [22] - Companies such as Zhongwei and Beifang Huachuang are recommended for investment [22] Automation - The automation market is expected to grow significantly, with a focus on industrial consumables and the potential for leading companies to benefit from increased market concentration [22] Hydrogen Energy - The report emphasizes the importance of green hydrogen in achieving carbon neutrality, recommending companies like Longi Green Energy and Yihua Tong for investment [21]