法律意见书 湖南启元律师事务所 二〇二四年九月 关于 东莞市鼎通精密科技股份有限公司 2024年第四次临时股东大会的 致:东莞市鼎通精密科技股份有限公司 湖南启元律师事务所(以下简称"本所")接受东莞市鼎通精密科技股份有 限公司（以下简称"公司"）的委托,指派本所律师出席了公司 2024 年第四次临 时股东大会(以下简称"本次股东大会"),对本次股东大会的召集和召开程序、 出席会议人员及召集人的资格、表决程序和表决结果的合法有效性进行律师见证, 并发表本法律意见。 本所律师根据《中华人民共和国公司法》(以下简称"《公司法》")、《中 华人民共和国证券法》(以下简称"《证券法》")、《上市公司股东大会规则》 (以下简称"《股东大会规则》")等我国现行法律、法规、规范性文件以及《东 莞市鼎通精密科技股份有限公司章程》（以下简称"《公司章程》"）的有关规 定出具本法律意见书。 湖南省长沙市芙蓉区建湘路 393 号世茂环球金融中心 63 层 410005 电话: （0731）82953778 传真: （0731）82953779 网站：www.qiyuan.com 为出具本法律意见书，本所律师声明如下: (一)本所律 ...

证券代码：688668 证券简称：鼎通科技 公告编号：2024-055 东莞市鼎通精密科技股份有限公司 2024 年第四次临时股东大会决议公告 本公司董事会及全体董事保证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。 （三） 出席会议的普通股股东、特别表决权股东、恢复表决权的优先股股东及 其持有表决权数量的情况： | 1、出席会议的股东和代理人人数 | 61 | | --- | --- | | 普通股股东人数 | 61 | | 2、出席会议的股东所持有的表决权数量 | 74,980,533 | | 普通股股东所持有表决权数量 | 74,980,533 | | 3、出席会议的股东所持有表决权数量占公司表决权数量的比 | 54.0479 | | 例（%） | | | 普通股股东所持有表决权数量占公司表决权数量的比例（%） | 54.0479 | （四） 表决方式是否符合《公司法》及公司章程的规定，大会主持情况等。 本次会议是否有被否决议案：无 一、 会议召开和出席情况 （一） 股东大会召开的时间：2024 年 9 月 5 日 （二） 股东大会召开的地点： ...

Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company's revenue in H1 2024 reached 452 million yuan, a year-on-year increase of 36.12%, with Q2 revenue at 258 million yuan, up 51.72% year-on-year [1] - Net profit attributable to the parent company in H1 2024 was 49 million yuan, a year-on-year increase of 9.5%, with Q2 net profit at 31 million yuan, up 163.18% year-on-year [1] - The company's gross margin in H1 2024 was 27.56%, showing a marginal improvement compared to Q1 despite a year-on-year decline of 2.53% [1] - The company's communication business has rebounded, driven by strong demand for high-speed communication connectors and components, with new products like QSFP-DD/OSFP 112G series entering mass production [1] - The automotive business is undergoing adjustments, with the company focusing on electric control series connectors and high-voltage connectors, while phasing out some loss-making copper bar products [1] Business Performance - The company's communication business has seen increased demand due to the rapid development of AI, leading to higher orders for high-speed communication connectors and components [1] - The company's automotive business is deepening cooperation with key clients such as BYD, Changan Automobile, and FAW, focusing on integrated control system connectors and high-voltage connectors [1] - The company's R&D expenses in H1 2024 accounted for 8.84% of revenue, with a year-on-year increase of 14.84%, reflecting ongoing investment in new product development [3] Industry Insights - The global connector market size in 2022 was 84.1 billion USD, with the communication sector being the largest segment [4] - The AI-driven demand for data centers and servers is expected to drive growth in the communication connector market, particularly for high-speed copper cables and I/O connector cages [4] - The company is well-positioned to benefit from the increasing demand for high-speed connectors in data centers, particularly with the introduction of NVL72 cabinets by NVIDIA, which require high-speed copper interconnects [4] Financial Projections - The company's revenue is projected to grow to 911.55 million yuan in 2024, 1.11 billion yuan in 2025, and 1.35 billion yuan in 2026 [6] - Net profit attributable to the parent company is expected to reach 99.25 million yuan in 2024, 121.85 million yuan in 2025, and 152.34 million yuan in 2026 [6] - The company's EPS is forecasted to be 0.72 yuan in 2024, 0.88 yuan in 2025, and 1.10 yuan in 2026 [6] Strategic Focus - The company is focusing on the development of high-speed communication connectors, including 224G I/O connector cages with liquid cooling designs, to meet the increasing demands of AI and data center applications [3] - In the automotive sector, the company is developing integrated controller connectors and new projects such as AC/DC integrated charging sockets [3] - The company is expanding its production capacity, with new facilities in Malaysia and ongoing construction in Changsha, to meet growing customer demand [2]

Investment Rating - The report maintains a "Buy" rating for the company, expecting the stock price to outperform the industry index by over 15% in the next six months [12]. Core Insights - The company has experienced revenue and profit growth in the first half of 2024, with revenue reaching 452 million yuan, a year-on-year increase of 36.12%, and a net profit attributable to shareholders of 49.3 million yuan, up 9.50% year-on-year [1][2]. - The recovery in the communications market is driven by increased demand for AI computing power, leading to a rise in direct orders and steady performance growth for the company [2]. - The company has increased its R&D investment, with R&D expenses amounting to 39.98 million yuan in the first half of 2024, a year-on-year increase of 14.84%, representing a R&D expense ratio of 8.84% [3]. Financial Performance Summary - In 2024, the company is projected to achieve a revenue of 901 million yuan, with a year-on-year growth rate of 32.0%, and a net profit of 95 million yuan, reflecting a growth rate of 42.8% [1][8]. - The gross profit margin for the first half of 2024 is reported at 27.56%, a decrease of 2.53% year-on-year, attributed to increased competition in the electric vehicle market [2]. - The company’s earnings per share (EPS) for 2024 is expected to be 0.69 yuan, with projections of 0.92 yuan and 1.23 yuan for 2025 and 2026, respectively [5][8]. Market and Product Development - The company is actively diversifying its product offerings, including the development of new products such as the QSFP-DD/QSFP 112G series, which has begun mass production [3]. - The automotive connector business is expected to grow steadily as the company adjusts its product structure to phase out loss-making products [2]. - The company’s production capacity for 112G and 56G cage products is gradually increasing, with a focus on high-precision and compact designs [3].

东莞市鼎通精密科技股份有限公司 控股子公司、分公司管理制度 东莞市鼎通精密科技股份有限公司 控股子公司、分公司管理制度 第一章 总则 第一条 为加强对控股子公司的管理，维护东莞市鼎通精密科技股份有限公司 （以下简称"公司"）和全体投资者利益，根据《中华人民共和国公司法》（以下 简称"《公司法》"）、《东莞市鼎通精密科技股份有限公司章程》（以下简称 "《公司章程》"）等法律、法规和规章，特制定本制度。 第二条 控股子公司是指公司直接或间接持有其50%以上股份，或者虽然未超过 50%，但能够决定其董事会半数以上成员当选，或者通过协议或其他安排能够实际控 制的公司。 分公司是指由公司或其子公司依法设立的，不具有独立法人资格的分支机构。 第三条 本制度旨在加强对控股子公司、分公司的管理，建立有效的控制机制， 对公司的组织、资源、资产、投资等和公司的运作进行风险控制，提高公司整体运 作效率和抗风险能力。 第四条 控股子公司、分公司应遵循本制度规定，结合公司其他内部控制制度， 根据自身经营特点和环境条件，制定具体实施细则，以保证本制度的贯彻和执行。 控股子公司同时控股其他公司的，应参照本制度的要求逐层建立对其控股子公司的 ...

证券代码：688668 证券简称：鼎通科技 公告编号：2024-050 东莞市鼎通精密科技股份有限公司 第三届监事会第三次会议决议公告 本公司监事会及全体监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。 一、 监事会会议召开情况 东莞市鼎通精密科技股份有限公司（以下简称"公司"）第三届监事会第三次 会议于 2024 年 8 月 20 日在公司会议室召开。会议通知已于 2024 年 8 月 9 日通 过纸质或邮件的方式送达各位监事。会议应出席监事 3 人，实际出席监事 3 人。 会议由监事会主席徐浩主持。会议召开符合相关法律、法规、规章和《公司 章程》的规定。出席会议的监事对各项议案进行了认真审议并做出了如下决议： 二、监事会会议审议情况 （一） 审议通过《关于公司 2024 年半年度报告及其摘要的议案》 根据《中华人民共和国公司法》（以下简称"《公司法》"）《中华人民共 和国证券法》（以下简称"《证券法》"）《上海证券交易所科创板股票上市规 则》和《公司章程》等相关法规和要求，监事会对公司 2024 半年度报告进行了 审核，审核意见如下： 1 ...

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。 一、 董事会会议召开情况 东莞市鼎通精密科技股份有限公司（以下简称"公司"）第三届董事会第三 次会议于 2024 年 8 月 20 日在东莞市东城街道周屋社区银珠路七号公司会议室 以现场结合通讯的方式召开。会议通知已于 2024 年 8 月 9 日以书面或邮件的方 式送达各位董事。本次会议应出席董事 5 人，实际出席董事 5 人。 会议由董事长王成海主持，监事、高管列席。会议召开符合有关法律、法规、 规章和《公司章程》的规定。 二、董事会会议审议情况 （一） 审议通过《关于公司 2024 年半年度报告及其摘要的议案》 证券代码：688668 证券简称：鼎通科技 公告编号：2024-051 东莞市鼎通精密科技股份有限公司 第三届董事会第三次会议决议公告 表决结果：5 票同意，0 票反对，0 票弃权。 （四） 审议通过《关于变更公司注册资本、修订公司章程并办理工商变更 登记及修订部分治理制度的议案》 公司于 2024 年 5 月 27 日完成了 2023 年年度权益分派的转增股本 ...

东莞市鼎通精密科技股份有限公司 股东大会议事规则 （2024 年 8 月修订） 东莞市鼎通精密科技股份有限公司 股东大会议事规则 目 录 | 第一章 | 总 | 则 | 2 | | --- | --- | --- | --- | | 第二章 | | 股东大会的召集 | 3 | | 第三章 | | 股东大会的提案与通知 | 4 | | 第四章 | | 股东大会的召开 | 6 | | 第五章 | | 股东大会的表决和决议 | 9 | | 第六章 | | 股东大会对董事会的授权 | 14 | | 第七章 | 附 | 则 | 15 | 1 东莞市鼎通精密科技股份有限公司 股东大会议事规则 东莞市鼎通精密科技股份有限公司 股东大会议事规则 （2023 年 12 月修订） 第一章 总 则 第一条 为规范东莞市鼎通精密科技股份有限公司（以下简称"公司"或"本 公司"）的行为，保证股东大会依法行使职权，根据《中华人民共和国公司法》 （以下简称"《公司法》"）《中华人民共和国证券法》（以下简称"《证券法》"） 《上市公司治理准则》《上市公司股东大会规则》及其他法律、行政法规、部门 规章、规范性文件和《东莞市鼎通精密科技股份有限 ...

东莞市鼎通精密科技股份有限公司 董事会议事规则 （2024 年 8 月修订） 第二章 董事会的组成 第三条 公司依法设立董事会，董事会对股东大会负责。 第四条 公司董事会由 5 名董事组成，其中董事长 1 名，职工代表董事 1 名，独立董事 2 名。公司可根据需要设副董事长，董事长和副董事长由董事会以 全体董事的过半数选举产生。 公司副董事长协助董事长工作，董事长不能履行职务或者不履行职务的，由 副董事长履行职务（公司有两位或两位以上副董事长的，由半数以上董事共同推 举的副董事长履行职务）；副董事长不能履行职务或者不履行职务的，由半数以 上董事共同推举一名董事履行职务。 2 | 第一章 总 则 | | --- | | 第二章 董事会的组成 . | | 第三章 董事会组织机构 . | | 第四章 董事会提案 | | 第五章 董事会会议的召集 . | | 第六章 董事会会议的通知 . | | 第七章 董事会会议的召开和表决 . | | 第八章 董事会会议记录、决议公告 . | | 第九章 决议执行 . | | 第十章 议事规则的修改 | | 第十一章 附 则 | 东莞市鼎通鼎通精密股份有限公司 董事会议事规则 东 ...

[Glossary](index=5&type=section&id=Item%201.%20Glossary) Key terms and definitions relevant to the report are provided [Company Profile and Key Financial Indicators](index=6&type=section&id=Item%202.%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section outlines the company's fundamental information and presents its key financial performance metrics [Company Basic Information](index=6&type=section&id=Company%20Basic%20Information) Dongguan DingTong Precision Metal Technology Co., Ltd. (DingTong Technology, stock code 688668) is a precision manufacturing enterprise listed on the STAR Market of the Shanghai Stock Exchange, with Wang Chenghai as its legal representative - The company's fundamental information includes its name, abbreviation, legal representative, and listing board[11](index=11&type=chunk)[15](index=15&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2024, the company achieved operating revenue of RMB 452 million, a 36.12% increase, driven by the recovery in the communication connector market due to AI development, while net profit attributable to shareholders grew only 9.50% to RMB 49.30 million, and net cash flow from operating activities significantly decreased by 95.61%, with basic earnings per share declining by 21.74% Key Accounting Data for H1 2024 | Key Accounting Data | Current Period (Jan-Jun) | Prior Period | Change from Prior Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | RMB 452.17 million | RMB 332.18 million | 36.12% | | Net Profit Attributable to Shareholders of Listed Company | RMB 49.30 million | RMB 45.02 million | 9.50% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | RMB 45.26 million | RMB 39.62 million | 14.24% | | Net Cash Flow from Operating Activities | RMB 2.39 million | RMB 54.50 million | -95.61% | Key Financial Indicators for H1 2024 | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | Change from Prior Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.36 | 0.46 | -21.74% | | Weighted Average Return on Net Assets (%) | 2.84% | 2.58% | Increase 0.26 percentage points | | R&D Investment as % of Operating Revenue | 8.84% | 10.48% | -15.65% | - The company attributes the growth in revenue and net profit to increased demand in the communication connector market driven by AI development[18](index=18&type=chunk) - During the reporting period, non-recurring gains and losses totaled **RMB 4.04 million**, primarily from government subsidies[19](index=19&type=chunk)[20](index=20&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Item%203.%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's operational performance, industry trends, and future outlook [Industry and Main Business Overview](index=9&type=section&id=Industry%20and%20Main%20Business%20Overview) The company's main businesses are communication and automotive connector components, with communication benefiting from AI-driven data center demand and automotive undergoing adjustments due to rising raw material costs and increased competition, focusing on strategic client collaborations - The company operates in the "C39 Computer, Communication, and Other Electronic Equipment Manufacturing" industry[20](index=20&type=chunk) - In the communication connector market, AI computing power construction drives data centers as the fastest-growing segment, particularly increasing demand for high-speed copper cable interconnect products[21](index=21&type=chunk) - The automotive connector industry benefits from vehicle electrification and intelligence trends, but the company adjusted some new energy vehicle businesses due to rising raw material prices[21](index=21&type=chunk)[24](index=24&type=chunk) - The company's major clients include industry-renowned enterprises such as Amphenol, Molex, TE Connectivity, AVIC Jonhon Optronic, and BYD[23](index=23&type=chunk) [Core Technologies and R&D Progress](index=10&type=section&id=Core%20Technologies%20and%20R%26D%20Progress) The company maintained core technologies while increasing R&D investment by 14.84%, adding 5 invention patents, and focusing on advanced projects like new energy vehicle battery management, high-speed signal transmission, and liquid cooling technologies R&D Investment Overview | Indicator | Current Period | Prior Period | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | RMB 39.98 million | RMB 34.81 million | 14.84% | | Total R&D Investment | RMB 39.98 million | RMB 34.81 million | 14.84% | | Total R&D Investment as % of Operating Revenue | 8.84% | 10.48% | Decrease 1.64 percentage points | - During the reporting period, the company obtained **5 new invention patents**, accumulating a total of **47 invention patents** and **80 utility model patents**[25](index=25&type=chunk) - The number of the company's R&D personnel increased from 246 to **320**, a **30.08%** year-on-year growth[35](index=35&type=chunk) - Key R&D projects include water-cooled plates for battery management modules, high-speed signal transmission connectors (board-to-board, I/O interfaces), new energy vehicle high-voltage connectors, liquid-cooled charging guns, and QSFP-DD heat sinks, all at industry-advanced or leading technical levels[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) [Analysis of Core Competencies](index=17&type=section&id=Analysis%20of%20Core%20Competencies) The company's core competencies include strong R&D and design capabilities, a comprehensive precision manufacturing system, continuous innovation, robust client relationships with industry leaders, and a stringent quality management system - The company possesses independent high-precision mold development and design technology, with stamping mold part precision reaching **±0.001mm** and overall mold manufacturing precision reaching **±0.003mm**[37](index=37&type=chunk) - The company has established a comprehensive precision manufacturing technology system covering precision mold design, precision stamping and injection molding, automated processing, and inspection[39](index=39&type=chunk) - Leveraging its technological innovation capabilities, the company provides DFM development services for new products to downstream clients, effectively shortening development cycles and enhancing customer loyalty[40](index=40&type=chunk) - The company has established long-term stable cooperative relationships with industry-renowned manufacturers such as Amphenol, Molex, TE Connectivity, and AVIC Jonhon Optronic, becoming a strategic or excellent supplier for some clients[41](index=41&type=chunk) [Discussion and Analysis of Operations](index=18&type=section&id=Discussion%20and%20Analysis%20of%20Operations) In H1 2024, the company's revenue grew 36.12% driven by AI-related communication business and high-speed connector mass production, while automotive business adjusted due to cost pressures, and overall capacity utilization increased with new projects in Malaysia - In communication business, rapid AI development fueled strong demand for high-speed communication connectors, with increased demand for existing QSFP 56G products and mass production commencing for new QSFP-DD/OSFP 112G series[44](index=44&type=chunk) - In automotive business, adjustments were made to some copper bar products due to significant increases in bulk raw material prices; the BMS Gen6 battery project is gradually entering small-batch trial production[45](index=45&type=chunk) - Regarding capacity, the utilization rates at Dongguan headquarters and Henan subsidiary increased with rising orders; the Malaysia subsidiary's equipment is in place, and it is collaborating with clients on development projects[45](index=45&type=chunk) - In R&D, investments continued to increase, with communication modules developing I/O connector cages for 224G with added liquid cooling design, and automotive modules adding an integrated AC/DC charging socket assembly project[46](index=46&type=chunk) [Risk Factors](index=19&type=section&id=Risk%20Factors) The company faces risks including macroeconomic fluctuations, intense market competition, technological obsolescence, and key personnel loss, with high customer concentration (86.94% from top five) and accounts receivable impairment risk (RMB 435 million) being particularly prominent, alongside potential gross margin decline and new capacity digestion challenges - Customer concentration is relatively high, with the top five clients accounting for **86.94%** of total operating revenue during the reporting period[52](index=52&type=chunk) - Accounts receivable impairment risk exists, with an accounts receivable balance of **RMB 435 million** at the end of the reporting period, of which the top five clients account for **74.51%**[55](index=55&type=chunk) - Gross margin faces a decline risk; the comprehensive gross margin was **27.56%** during the reporting period, and future gross margins for new energy vehicle connector products may be lower than those for high-speed communication connector products[53](index=53&type=chunk) - Other major risks include macroeconomic fluctuations, intensified market competition, technological iteration, loss of key personnel, product quality issues, rising costs, and the risk of new capacity not being fully utilized[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk)[54](index=54&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) [Analysis of Main Business](index=21&type=section&id=Analysis%20of%20Main%20Business) During the reporting period, the company's revenue grew 36.12%, but higher operating costs pressured gross margin, while operating cash flow sharply declined by 95.61% due to domestic business growth and longer payment terms, and investment cash flow significantly decreased due to changes in cash management, with notable increases in accounts receivable and construction in progress Analysis of Major Financial Statement Items | Item | Current Period | Prior Period | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | RMB 452.17 million | RMB 332.18 million | 36.12% | Increased demand in communication connector market, higher orders | | Operating Cost | RMB 327.56 million | RMB 232.24 million | 41.04% | Increased with operating revenue | | Net Cash Flow from Operating Activities | RMB 2.39 million | RMB 54.50 million | -95.61% | Due to domestic business growth and longer payment terms | | Net Cash Flow from Investing Activities | -RMB 49.12 million | RMB 12.25 million | -500.83% | Due to changes in cash management scale | Analysis of Major Balance Sheet Items | Item Name | Current Period End Balance | Prior Period End Balance | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable | RMB 340.20 million | RMB 273.25 million | 24.50% | Increased domestic business and longer payment terms | | Construction in Progress | RMB 173.02 million | RMB 116.49 million | 48.54% | Increased investment in projects funded by additional share issuance | | Intangible Assets | RMB 134.47 million | RMB 74.22 million | 81.17% | Increased due to land acquisition in Changsha | - The company's overseas assets amounted to **RMB 38.98 million**, representing **1.99%** of total assets[62](index=62&type=chunk) [Corporate Governance](index=28&type=section&id=Item%204.%20Corporate%20Governance) This section details the company's governance structure, shareholder meetings, and equity incentive plans [Shareholder Meetings and Profit Distribution](index=28&type=section&id=Shareholder%20Meetings%20and%20Profit%20Distribution) During the reporting period, the company held two shareholder meetings, approving the 2024 Restricted Stock Incentive Plan and 2023 profit distribution, with no profit distribution or capital reserve capitalization proposals for the current half-year - A total of **2 shareholder meetings** were held during the reporting period, with all proposals approved and no rejections[67](index=67&type=chunk) - The Board of Directors' resolution for profit distribution or capital reserve capitalization plan for the current reporting period is 'none'[69](index=69&type=chunk) [Equity Incentive Plan](index=29&type=section&id=Equity%20Incentive%20Plan) The company continued its equity incentive plans, completing the second vesting period for the 2021 restricted stock plan (0.25 million shares) and launching a new 2024 plan, granting 0.93 million restricted shares to 52 grantees at RMB 24.00/share - The second vesting period of the 2021 Restricted Stock Incentive Plan was completed, with **0.25 million shares** vested and listed for trading on February 2, 2024[70](index=70&type=chunk) - The '2024 Restricted Stock Incentive Plan (Draft)' was launched, proposing to grant **1.08 million shares**, with the initial grant of **0.93 million shares** to **52 grantees** completed on April 8, 2024, at a grant price of **RMB 24.00/share**[70](index=70&type=chunk) [Environmental and Social Responsibility](index=30&type=section&id=Item%205.%20Environmental%20and%20Social%20Responsibility) This section outlines the company's environmental protection initiatives and contributions to social welfare [Environmental Protection and Social Contributions](index=30&type=section&id=Environmental%20Protection%20and%20Social%20Contributions) The company invested RMB 0.40 million in environmental protection, implementing waste management and energy-saving measures, while its subsidiary Henan Dingrun contributed to education and rural revitalization through donations and infrastructure support - During the reporting period, **RMB 0.40 million** was invested in environmental protection, and environmental protection systems such as the 'Waste Management Control Procedure' were established[72](index=72&type=chunk) - Subsidiary Henan Dingrun actively participated in social welfare, donating **RMB 0.02 million** to the Pingqiao District Charity Federation of Xinyang City for student aid, and providing streetlights and electricity bill support for two villages in Wangqiao Town, Shangcheng County[74](index=74&type=chunk) [Significant Matters](index=32&type=section&id=Item%206.%20Significant%20Matters) This section covers the fulfillment of commitments and the progress of raised capital utilization [Fulfillment of Commitments](index=32&type=section&id=Fulfillment%20of%20Commitments) During and continuing into the reporting period, the company, its controlling shareholder, shareholders, and related parties strictly fulfilled all commitments made during IPO, refinancing, and equity incentive activities, including share lock-up, price stabilization, immediate return dilution compensation, and avoiding horizontal competition, with no breaches identified - The company's controlling shareholder, actual controller, directors, supervisors, and senior management strictly adhered to share lock-up commitments since the stock's listing date[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) - All relevant parties promptly and strictly fulfilled long-term commitments regarding share price stabilization, immediate return dilution compensation, avoidance of horizontal competition, and regulation of related party transactions[78](index=78&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) [Explanation of Proceeds Utilization Progress](index=48&type=section&id=Explanation%20of%20Proceeds%20Utilization%20Progress) The company raised RMB 785.24 million in December 2022, with RMB 326.06 million invested by the end of the reporting period (41.52% progress), primarily for high-speed communication and new energy vehicle connector projects, on track for completion by June 2025, while also utilizing idle funds for cash management Overall Utilization of Raised Funds | Source of Raised Funds | Net Raised Funds (1) | Total Cumulative Investment as of Reporting Period End (4) | Cumulative Investment Progress (%) (4)/(1) | | :--- | :--- | :--- | :--- | | Issuance of Shares to Specific Objects | RMB 785.24 million | RMB 326.06 million | 41.52% | Details of Raised Fund Investment Projects | Project Name | Planned Total Investment of Raised Funds | Cumulative Investment as of Reporting Period End | Cumulative Investment Progress (%) | Estimated Date of Ready for Use | | :--- | :--- | :--- | :--- | :--- | | High-Speed Communication Connector Component Production Project | RMB 373.24 million | RMB 105.63 million | 28.30% | June 2025 | | New Energy Vehicle Connector Production Project | RMB 252.00 million | RMB 70.42 million | 27.95% | June 2025 | | Replenishment of Working Capital | RMB 160.00 million | RMB 150.00 million | 93.75% | Not applicable | - The company utilized up to **RMB 570 million** of idle raised funds for cash management, with a cash management balance of **RMB 441 million** at the end of the reporting period[96](index=96&type=chunk) [Share Changes and Shareholder Information](index=53&type=section&id=Item%207.%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital and the composition of its shareholder base [Share Capital Changes and Shareholder Information](index=53&type=section&id=Share%20Capital%20Changes%20and%20Shareholder%20Information) During the reporting period, the company's total share capital increased from 98.84 million to 138.73 million shares due to equity incentive vesting and a 10-for-4 share transfer, with 8,300 shareholders at period-end and Dongguan Dinghong Junsheng Investment Co., Ltd. holding 39.48% - During the reporting period, the company's total share capital increased from **98.84 million shares** to **138.73 million shares** due to equity incentive vesting and capital reserve capitalization[102](index=102&type=chunk)[103](index=103&type=chunk) - As of the end of the reporting period, the total number of the company's common shareholders was **8,300**[106](index=106&type=chunk) Top Five Shareholders' Shareholding | Shareholder Name | Shares Held at Period End | Proportion (%) | | :--- | :--- | :--- | | Dongguan Dinghong Junsheng Investment Co., Ltd. | 54,771,683 | 39.48% | | Luo Hongxia | 8,114,400 | 5.85% | | Wang Chenghai | 5,151,686 | 3.71% | | Xinyu Dinghongxin Investment Partnership (Limited Partnership) | 3,159,131 | 2.28% | | Foshan Shunde Kaizhi Enterprise Management Consulting Partnership (Limited Partnership) | 2,068,773 | 1.49% | [Financial Report](index=61&type=section&id=Item%2010.%20Financial%20Report) This section presents the company's consolidated financial statements and detailed notes on key financial items [Consolidated Financial Statements](index=61&type=section&id=Consolidated%20Financial%20Statements) As of June 30, 2024, the company's total assets were RMB 1.96 billion, with net assets attributable to shareholders at RMB 1.73 billion, largely stable from year-end, while H1 operating revenue reached RMB 452 million (36.12% increase), net profit RMB 49.30 million (9.50% increase), and operating cash flow significantly declined by 95.61% to RMB 2.39 million Key Items from Consolidated Balance Sheet | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | RMB 1.96 billion | RMB 1.95 billion | | Total Liabilities | RMB 221.60 million | RMB 223.23 million | | Equity Attributable to Parent Company Owners | RMB 1.73 billion | RMB 1.73 billion | Key Items from Consolidated Income Statement | Item | Jan-Jun 2024 | Jan-Jun 2023 | | :--- | :--- | :--- | | Total Operating Revenue | RMB 452.17 million | RMB 332.18 million | | Total Operating Cost | RMB 408.50 million | RMB 291.33 million | | Net Profit | RMB 49.30 million | RMB 45.02 million | Key Items from Consolidated Cash Flow Statement | Item | Jan-Jun 2024 | Jan-Jun 2023 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | RMB 2.39 million | RMB 54.50 million | | Net Cash Flow from Investing Activities | -RMB 49.12 million | RMB 12.25 million | | Net Cash Flow from Financing Activities | -RMB 49.54 million | -RMB 140.65 million | [Notes to Consolidated Financial Statements](index=103&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes to the financial statements reveal accounts receivable of RMB 346 million (24.2% increase) with a 1.67% bad debt provision, inventory at RMB 245 million (8.5% decrease), and construction in progress significantly up by 48.6% to RMB 173 million due to project investments, with no short-term or long-term borrowings - Accounts receivable balance at period-end was **RMB 346 million**, with **84.1%** aged within 3 months, and the top five clients' accounts receivable accounting for **94.07%** of the total[223](index=223&type=chunk)[224](index=224&type=chunk)[227](index=227&type=chunk) - Inventory book value at period-end was **RMB 245 million**, a decrease from **RMB 268 million** at the beginning of the period; inventory primarily consists of raw materials, work-in-progress, finished goods, and consigned goods[235](index=235&type=chunk) - Construction in progress balance at period-end was **RMB 173 million**, a significant increase from **RMB 116 million** at the beginning of the period, primarily due to continuous investment in Dingrun Phase III Buildings 15-27 and Changsha Company Phase I projects[245](index=245&type=chunk) - Intangible assets book value at period-end was **RMB 134 million**, a significant increase of **81.2%** from **RMB 74.22 million** at the beginning of the period, primarily due to the acquisition of land use rights[249](index=249&type=chunk)