Group 1 - The company reported total assets of approximately 3.85 billion RMB at the end of the reporting period, an increase of 7.61% compared to the previous year [1] - The company's operating revenue reached approximately 705 million RMB, reflecting a year-on-year increase of 27.45% [1] - The total profit for the company was approximately -36.45 million RMB, a significant decline of 182.11% compared to the previous year [1] Group 2 - The net profit attributable to shareholders was approximately -17.74 million RMB, representing a decrease of 138.73% year-on-year [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately -25.01 million RMB, a decline of 171.26% compared to the same period last year [1] - The basic and diluted earnings per share were both -0.07 RMB, a decrease of 136.84% compared to the previous year [2] Group 3 - The company had a total of 8,872 shareholders at the end of the reporting period [2] - The largest shareholder, WINWIN OVERSEAS GROUP LIMITED, held 40.02% of the shares [2] - The company reported a research and development expenditure ratio of 0%, indicating no investment in R&D during the reporting period [2]

[Important Notice](index=2&type=section&id=Important%20Notice) This section provides critical information on significant risks, forward-looking statements, and the unaudited nature of the semi-annual report [Significant Risk Warning](index=2&type=section&id=Significant%20Risk%20Warning) The company has detailed its risks in "Section III Management Discussion and Analysis," urging investors to pay attention - The company has described the risks it faces in this report; investors are advised to refer to the "Risk Factors" section in "Section III Management Discussion and Analysis" [5](index=5&type=chunk) [Risk Statement for Forward-Looking Statements](index=2&type=section&id=Risk%20Statement%20for%20Forward-Looking%20Statements) Forward-looking statements in this report, such as development strategies and future plans, do not constitute substantial commitments, and investors should be aware of investment risks - Forward-looking statements in this report, including the company's development strategies, future operating plans, and investment plans, do not constitute substantial commitments to investors; please be aware of investment risks [6](index=6&type=chunk) [Unaudited Semi-Annual Report Statement](index=2&type=section&id=Unaudited%20Semi-Annual%20Report%20Statement) This semi-annual report has not been audited - This semi-annual report has not been audited [7](index=7&type=chunk) [Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) This section provides definitions of common terms used in the report, ensuring accurate understanding of the content [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This chapter defines common terms used in the report, including company and subsidiary names, key customers, and professional terms for production processes - Company, the Company, Freewon refers to Freewon Precision Mechanical (China) Co., Ltd [12](index=12&type=chunk) - Makita refers to Makita Corporation of Japan, a customer in the company's power tools sector [12](index=12&type=chunk) - MIM refers to Metal Injection Molding, a forming method where a plasticized mixture of metal powder and binder is injected into a mold [12](index=12&type=chunk) [Section II Company Profile and Key Financial Indicators](index=5&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company's basic information and key financial performance metrics for the reporting period [Company Basic Information](index=5&type=section&id=Company%20Basic%20Information) This section outlines Freewon Precision Mechanical (China) Co., Ltd.'s basic information, including its name, legal representative, and contact details Company Basic Information | Indicator | Content | | :--- | :--- | | Chinese Name | Freewon Precision Mechanical (China) Co., Ltd. | | Chinese Abbreviation | Freewon | | Legal Representative | Xu Huijun | | Registered Address | No. 168, Yuxi West Road, Qiandeng Town, Kunshan City, Jiangsu Province | | Website | www.freewon.com.cn | | Email | ir@freewon.com.cn | [Contact Person and Contact Information](index=5&type=section&id=Contact%20Person%20and%20Contact%20Information) This section provides contact details for the company's Board Secretary and Securities Affairs Representative, facilitating investor communication Contact Person and Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | You Dongcha | No. 168, Yuxi West Road, Qiandeng Town, Kunshan City, Jiangsu Province | 0512-82609999 | 0512-82608666 | ir@freewon.com.cn | | Securities Affairs Representative | Liu Jinfeng | No. 168, Yuxi West Road, Qiandeng Town, Kunshan City, Jiangsu Province | 0512-82609999 | 0512-82608666 | ir@freewon.com.cn | [Brief Introduction to Changes in Information Disclosure and Document Placement](index=5&type=section&id=Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Placement) This section details the company's designated information disclosure channels and document placement locations, ensuring transparency and accessibility Information Disclosure Channels | Indicator | Content | | :--- | :--- | | Information Disclosure Newspapers | "China Securities Journal", "Shanghai Securities News", "Securities Times" | | Report Website Address | www.sse.com.cn | | Report Placement Location | Securities Legal Department | [Company Stock/Depositary Receipt Overview](index=5&type=section&id=Company%20Stock%2FDepositary%20Receipt%20Overview) This section provides a brief overview of the company's stock, including its type, listing exchange, abbreviation, and code Company Stock Overview | Stock Type | Listing Exchange and Board | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | RMB Ordinary Shares (A-shares) | Shanghai Stock Exchange STAR Market | Freewon | 688678 | [Company's Key Accounting Data and Financial Indicators](index=5&type=section&id=Company%27s%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Revenue increased by 27.45% to 705 million yuan, but total profit and net profit attributable to shareholders significantly declined due to subsidiary losses and increased costs for new projects Key Accounting Data (Jan-Jun 2025 vs. Prior Year Period) | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | Current Period vs. Prior Year Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 705,058,631.62 | 553,215,144.93 | 27.45 | | Total Profit | -36,447,707.37 | 44,391,115.88 | -182.11 | | Net Profit Attributable to Shareholders | -17,737,628.55 | 45,803,499.11 | -138.73 | | Net Profit Attributable to Shareholders After Deducting Non-Recurring Gains and Losses | -25,008,207.61 | 35,095,826.91 | -171.26 | | Net Cash Flow from Operating Activities | 108,761,768.05 | 79,541,707.44 | 36.74 | Key Financial Indicators (Jan-Jun 2025 vs. Prior Year Period) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Current Period vs. Prior Year Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | -0.07 | 0.19 | -136.84 | | Diluted Earnings Per Share (Yuan/share) | -0.07 | 0.19 | -136.84 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (Yuan/share) | -0.09 | 0.14 | -164.29 | | Weighted Average Return on Net Assets (%) | -1.04 | 2.91 | Decreased by 3.95 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | -1.47 | 2.23 | Decreased by 3.70 percentage points | | R&D Investment as % of Operating Revenue (%) | 9.72 | 10.76 | Decreased by 1.04 percentage points | - Total profit, net profit attributable to shareholders, and net profit after deducting non-recurring gains and losses significantly decreased, primarily due to Nantong Freewon's losses and increased costs for new projects [20](index=20&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=6&type=section&id=Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section lists the company's non-recurring gains and losses for the reporting period, totaling 7.27 million yuan, mainly from government grants and fair value changes Non-Recurring Gains and Losses Items (Unit: Yuan) | Non-Recurring Gains and Losses Items | Amount | | :--- | :--- | | Gains or losses from disposal of non-current assets | 7,754.42 | | Government grants recognized in current profit or loss | 5,493,695.43 | | Gains or losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains or losses from disposal of financial assets and liabilities | 2,982,883.08 | | Other non-operating income and expenses | -89,885.89 | | Other non-recurring gains and losses as defined | 657,150.00 | | Less: Income tax impact | 1,410,727.16 | | Minority interest impact (after tax) | 370,290.82 | | Total | 7,270,579.06 | [Net Profit After Deducting Impact of Share-Based Payments](index=7&type=section&id=Net%20Profit%20After%20Deducting%20Impact%20of%20Share-Based%20Payments) This section discloses the net profit after deducting the impact of share-based payments, which was -11.18 million yuan, a 123.68% decrease year-on-year Net Profit After Deducting Impact of Share-Based Payments (Unit: Yuan) | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | Current Period vs. Prior Year Period Change (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Impact of Share-Based Payments | -11,180,317.13 | 47,216,419.13 | -123.68 | [Section III Management Discussion and Analysis](index=8&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section discusses the company's industry, business operations, core competencies, and financial performance during the reporting period [Explanation of the Company's Industry and Main Business Operations During the Reporting Period](index=8&type=section&id=Explanation%20of%20the%20Company%27s%20Industry%20and%20Main%20Business%20Operations%20During%20the%20Reporting%20Period) The company specializes in R&D, manufacturing, and sales of precision metal components for 3C, automotive, and power tool industries, focusing on high-tech, non-standardized products and stable supply chains [Main Business, Main Products or Services](index=8&type=section&id=Main%20Business%2C%20Main%20Products%20or%20Services) The company provides precision metal components for 3C, automotive, and power tool sectors, categorized by application and process - The company focuses on the R&D, manufacturing, and sales of precision metal components, primarily serving customers in 3C, automotive, and power tool industries [29](index=29&type=chunk) - Products are categorized by downstream application areas: 3C, automotive, power tools, other industrial precision metal components, and diamond wire substrates [29](index=29&type=chunk) - Products are categorized by production process: precision springs, shaped springs, coiled springs, stamping parts, MIM parts, turned parts, connectors, sunroof drive tubes, and assembled components [29](index=29&type=chunk) [Main Business Model](index=8&type=section&id=Main%20Business%20Model) The company operates on a "produce-to-order" procurement model, primarily in-house production with some outsourcing, and a direct sales model to established downstream clients - Procurement Model: Primarily "produce-to-order," with procurement plans based on customer orders and demand forecasts [33](index=33&type=chunk)[34](index=34&type=chunk) - Production Model: Customized production of precision metal components, mainly in-house, with some non-core processes outsourced [35](index=35&type=chunk) - Sales Model: Primarily direct sales to customers, many of whom are well-known enterprises in downstream industries [36](index=36&type=chunk) [Industry Overview](index=9&type=section&id=Industry%20Overview) The precision metal components industry is rapidly developing, characterized by high technical complexity, non-standardized products, stable supply chains, and a high entry barrier, with future trends towards automation and broader applications - Industry Development Stage: Precision metal component manufacturing is fundamental to various precision instruments; demand for high-end components is rapidly growing with the development of consumer electronics, communication equipment, and automotive industries [37](index=37&type=chunk)[38](index=38&type=chunk) - Industry Characteristics: High technical complexity due to application environments; provision of non-standardized products to downstream customers; stable and long-lasting supply chain relationships between industry leaders and quality downstream clients [39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - Future Development Trends: Automation replacing manual manufacturing; increasing industry concentration; broader downstream applications (e.g., drones, smart equipment, AR/VR); closer collaboration between precision metal component manufacturers and brand owners [48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) [Discussion and Analysis of Operations](index=11&type=section&id=Discussion%20and%20Analysis%20of%20Operations) Revenue increased by 27.45% to 705 million yuan, but net profit attributable to shareholders decreased by 138.73% due to subsidiary losses and increased costs for new projects, while R&D investment and personnel grew Key Operating Data (H1 2025) | Indicator | Amount (10,000 yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Operating Revenue | 70,505.86 | 27.45 | | Net Profit Attributable to Shareholders | -1,773.76 | -138.73 | | Net Profit Attributable to Shareholders After Deducting Non-Recurring Gains and Losses | -2,500.82 | -171.26 | | Net Cash Flow from Operating Activities | 10,876.18 | 36.74 | | Total Assets | 384,603.98 | 7.61 | - R&D investment grew rapidly, with **68.51 million yuan** invested this period, a **15.04% increase** year-on-year; total R&D personnel reached **537**, a **24.31% increase** year-on-year [59](index=59&type=chunk) [Operating Performance of Each Business Line During the Reporting Period](index=12&type=section&id=Operating%20Performance%20of%20Each%20Business%20Line%20During%20the%20Reporting%20Period) 3C precision metal components revenue grew 10.01%, diamond wire substrate revenue increased 58.49% with strong tungsten wire demand, and power tool components surged 145.69%, while automotive components slightly declined Revenue by Business Line (H1 2025) | Business Line | Revenue (10,000 yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | | 3C Precision Metal Components | 38,733.26 | 10.01 | | Automotive Precision Metal Components | 10,337.06 | -0.64 | | Photovoltaic Diamond Wire Substrate | 5,565.66 | 58.49 | | Power Tool Precision Metal Components | 12,067.60 | 145.69 | - 3C precision metal components business benefited from the global recovery of TWS headphones and wearable device markets, with strong ties to major customers and smooth new product introductions [54](index=54&type=chunk) - In the photovoltaic diamond wire substrate business, tungsten wire substrate sales revenue significantly increased; the company expanded into upstream raw materials (brass wire, alloy wire rod) and developed high-strength bridge cable wire rod products, expected to be a new profit growth point [56](index=56&type=chunk)[57](index=57&type=chunk) [Adhering to Core Technology Independent Innovation, Continuously Strengthening R&D Investment](index=13&type=section&id=Adhering%20to%20Core%20Technology%20Independent%20Innovation%2C%20Continuously%20Strengthening%20R%26D%20Investment) The company increased R&D investment by 15.04% and R&D personnel by 24.31%, securing numerous intellectual property rights, demonstrating its commitment to technological innovation R&D Investment and Personnel (H1 2025) | Indicator | Current Period | Year-on-Year Growth (%) | | :--- | :--- | :--- | | R&D Investment | 6,850.91 million yuan | 15.04 | | Total R&D Personnel | 537 persons | 24.31 | | Intellectual Property Applications | 291 items | - | | Intellectual Property Authorizations | 138 items | - | [Adhering to Talent Development Strategy, Promoting Craftsmanship, Injecting Momentum into Talent Development](index=13&type=section&id=Adhering%20to%20Talent%20Development%20Strategy%2C%20Promoting%20Craftsmanship%2C%20Injecting%20Momentum%20into%20Talent%20Development) The company prioritizes talent development by recruiting skilled personnel, establishing career paths, investing in training, and fostering a strong corporate culture to enhance team cohesion - The company continuously recruits excellent R&D and management personnel through internal referrals and external recruitment to strengthen its teams [60](index=60&type=chunk) - Employee career development paths are refined, with tailored development plans for different positions to meet employee needs to the greatest extent [60](index=60&type=chunk) - Increased investment in internal training and inter-departmental communication enhances overall employee quality; cultural and team-building activities strengthen team cohesion and foster a positive work environment [60](index=60&type=chunk) [Analysis of Core Competitiveness During the Reporting Period](index=13&type=section&id=Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) The company's core strengths lie in its extensive technical expertise, stable client relationships, and experienced management and R&D teams, supported by significant R&D investment and ongoing projects [Core Competitiveness Analysis](index=13&type=section&id=Core%20Competitiveness%20Analysis) The company's core strengths include mastery of various precision metal forming processes, long-term strategic partnerships with renowned clients, and an experienced management team with over 500 R&D professionals - Technical Reserves and Strong R&D Capabilities: The company masters various precision metal component forming processes, including fine wire forming, high-precision turning-milling composite forming, metal insert injection molding, metal powder injection molding, high-speed continuous stamping, tube 3D bending, micron-level metal wet drawing, and precision metal component assembly [61](index=61&type=chunk) - Customer Resources and Long-Term Stable Strategic Partnerships: The company has entered the supply chain systems of well-known industry enterprises such as Foxconn, Cheng Uei, Molex, Knowles, Webasto, Inalfa, Black & Decker, and Makita [63](index=63&type=chunk)[46](index=46&type=chunk) - Experienced Management Team and Professional Talent Pool: The company has over 500 professional technical R&D personnel, and founder Mr. Xu Huijun has over 40 years of experience in precision metal component processing [64](index=64&type=chunk) [Core Technologies and R&D Progress](index=14&type=section&id=Core%20Technologies%20and%20R%26D%20Progress) The company's core technology system comprises 13 key technologies, with no significant changes; it achieved substantial R&D results, including 291 new IP applications and 138 authorizations, with 30 ongoing projects - The company's core technology primarily includes 13 technologies, such as high-precision shaped spring forming, high-precision diamond micro-wire drawing, and metal spinning, with no changes in core technology or advancement during the reporting period [65](index=65&type=chunk)[66](index=66&type=chunk) Intellectual Property Acquired During the Reporting Period | | New Applications This Period (units) | New Authorizations This Period (units) | Cumulative Applications (units) | Cumulative Authorizations (units) | | :--- | :--- | :--- | :--- | :--- | | Invention Patents | 13 | 7 | 178 | 40 | | Utility Model Patents | 277 | 131 | 1114 | 588 | | Design Patents | 1 | 0 | 1 | 0 | | Total | 291 | 138 | 1293 | 628 | R&D Investment (Unit: Yuan) | Indicator | Current Period Amount | Prior Year Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 68,509,144.81 | 59,552,940.23 | 15.04 | | Total R&D Investment | 68,509,144.81 | 59,552,940.23 | 15.04 | | Total R&D Investment as % of Operating Revenue (%) | 9.72 | 10.76 | -1.04 | - The company has 30 ongoing R&D projects, including integrated debinding and sintering processes for metal powder injection molding, high-performance automotive component processing and assembly, R&D of high-carbon wire rods for diamond wire, and medical metal guide wire R&D, mostly in trial production or solution verification stages, aiming to enhance technology and expand application prospects [71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) [Risk Factors](index=21&type=section&id=Risk%20Factors) The company faces risks related to core competitiveness, operational challenges like capacity utilization and exchange rate fluctuations, industry downturns, and macroeconomic factors such as trade friction - Core Competitiveness Risk: Core technologies and key production processes rely on specialized talent, if core technical personnel are lost or technology is leaked, it will adversely affect production and operations [77](index=77&type=chunk) - Operational Risks: Capacity expansion may lead to underutilization and fixed asset impairment if orders or market conditions do not sustain; exchange rate fluctuations impact competitiveness and exchange gains/losses due to USD-denominated export revenue; high inventory impairment risk due to product customization, excess stocking, or negative gross margin orders [77](index=77&type=chunk)[78](index=78&type=chunk)[80](index=80&type=chunk) - Industry Risks: While applications are broad, the 3C industry is nearing saturation, automotive sales are declining, and power tools are slow; if market demand continues to decline, it will adversely affect company performance [81](index=81&type=chunk) - Macroeconomic Environment Risks: Sino-US trade friction may indirectly affect the operating conditions of the company's downstream customers, thereby impacting product sales [82](index=82&type=chunk) [Key Operating Performance During the Reporting Period](index=22&type=section&id=Key%20Operating%20Performance%20During%20the%20Reporting%20Period) Total operating revenue increased by 27.45% to 705 million yuan, but net profit attributable to shareholders and non-recurring net profit significantly decreased, with notable changes in financial statement items and new project investments - During the reporting period, the company achieved total operating revenue of **705.06 million yuan**, a **27.45% increase** year-on-year; net profit attributable to shareholders was **-17.74 million yuan**, a **138.73% decrease** year-on-year; net profit attributable to parent company shareholders after deducting non-recurring gains and losses was **-25.01 million yuan**, a **171.26% decrease** year-on-year [83](index=83&type=chunk) [Main Business Analysis](index=22&type=section&id=Main%20Business%20Analysis) Operating revenue increased by 27.45% due to new products and customers, while operating costs surged by 46.75% due to increased personnel and equipment for a new headphone project, impacting profitability Financial Statement Item Change Analysis (Unit: Yuan) | Item | Current Period Amount | Prior Year Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 705,058,631.62 | 553,215,144.93 | 27.45 | | Operating Cost | 578,831,183.81 | 394,425,409.47 | 46.75 | | Selling Expenses | 10,708,833.36 | 9,781,678.70 | 9.48 | | Administrative Expenses | 49,980,381.21 | 37,195,941.75 | 34.37 | | Financial Expenses | 12,304,713.21 | 12,247,261.95 | 0.47 | | R&D Expenses | 68,509,144.81 | 59,552,940.23 | 15.04 | | Net Cash Flow from Operating Activities | 108,761,768.05 | 79,541,707.44 | 36.74 | | Net Cash Flow from Investing Activities | -239,345,510.69 | -148,719,374.71 | Not applicable | | Net Cash Flow from Financing Activities | 158,881,177.64 | 52,144,123.69 | 204.70 | - Reason for change in operating revenue: Good development of new products and customers, continuous growth in order volume [86](index=86&type=chunk) - Reason for change in operating cost: To support a new headphone project for a major North American customer, the company hired a large number of production personnel and purchased equipment, leading to increased fixed assets, depreciation and amortization, and labor costs [86](index=86&type=chunk) [Analysis of Assets and Liabilities](index=23&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) Significant increases were observed in financial assets, receivables financing, deferred tax assets, short-term borrowings, and capital reserves, while other non-current assets, contract liabilities, and long-term borrowings decreased, reflecting changes in investment, financing, and operational activities Asset and Liability Status Changes (Unit: Yuan) | Item Name | Current Period End Amount | Current Period End % of Total Assets | Prior Year End Amount | Prior Year End % of Total Assets | Current Period End vs. Prior Year End Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 152,618,202.10 | 3.97 | 102,732,436.38 | 2.87 | 48.56 | Primarily due to increased wealth management funds | | Notes Receivable | 28,249,689.87 | 0.73 | 50,210,973.38 | 1.40 | -43.74 | Primarily due to reclassification of notes receivable with good bank credit to receivables financing | | Receivables Financing | 27,238,085.50 | 0.71 | 9,521,370.13 | 0.27 | 186.07 | Primarily due to reclassification of notes receivable with good bank credit to receivables financing | | Other Current Assets | 94,918,252.73 | 2.47 | 67,960,394.39 | 1.90 | 39.67 | Primarily due to increased deductible input VAT from long-term asset investments | | Deferred Income Tax Assets | 143,721,260.49 | 3.74 | 94,388,890.52 | 2.64 | 52.27 | Primarily due to increased deductible losses | | Other Non-Current Assets | 8,547,733.12 | 0.22 | 30,148,983.42 | 0.84 | -71.65 | Primarily due to decreased prepayments for equipment | | Short-Term Borrowings | 487,487,800.54 | 12.68 | 330,039,691.04 | 9.23 | 47.71 | Primarily due to increased borrowings for operational turnover | | Notes Payable | 134,280,805.55 | 3.49 | 78,158,984.88 | 2.19 | 71.80 | Primarily due to increased use of notes for supplier payments this period | | Contract Liabilities | 503,025.53 | 0.01 | 1,810,204.28 | 0.05 | -72.21 | Primarily due to decreased advance receipts for goods | | Employee Benefits Payable | 49,607,653.94 | 1.29 | 30,476,755.62 | 0.85 | 62.77 | Primarily due to company expansion and increased personnel | | Other Payables | 101,054,164.56 | 2.63 | 2,025,487.02 | 0.06 | 4889.13 | Primarily due to new shareholder loans | | Other Current Liabilities | 27,027,884.84 | 0.70 | 40,167,835.68 | 1.12 | -32.71 | Primarily due to decreased un-derecognized notes receivable | | Long-Term Borrowings | 44,541,321.75 | 1.16 | 111,541,321.75 | 3.12 | -60.07 | Primarily due to repayment of bank loans this period | | Bonds Payable | 411,184,647.39 | 10.69 | 684,857,200.51 | 19.16 | -39.96 | Primarily due to conversion of bonds into shares this period | | Lease Liabilities | 389,166.69 | 0.01 | 1,344,065.27 | 0.04 | -71.05 | Primarily due to lease payments made this period | | Other Equity Instruments | 27,166,198.44 | 0.71 | 44,416,222.28 | 1.24 | -38.84 | Primarily due to conversion of bonds into shares this period | | Capital Reserve | 1,075,519,660.44 | 27.96 | 814,280,473.62 | 22.78 | 32.08 | Primarily due to conversion of bonds into shares this period | | Treasury Stock | 0 | 0 | 37,478,490.92 | 1.05 | -100 | Primarily due to cancellation of treasury stock this period | [Analysis of Investment Status](index=24&type=section&id=Analysis%20of%20Investment%20Status) The company is investing 1.5 billion yuan in Nantong for precision metal components and diamond wire projects to boost capacity, and 1 billion yuan in Suzhou for a high-end precision metal components R&D and production base, focusing on humanoid robot parts - The company's ongoing projects in Nantong include "Nantong Precision Metal Component Manufacturing Project" and "Diamond Wire Substrate and Solar Photovoltaic Printing Screen Project," with a total investment of **1.5 billion yuan**, aimed at increasing production capacity [91](index=91&type=chunk) - The company established a wholly-owned subsidiary, Suzhou Freewon, investing **1 billion yuan** to build a "High-End Precision Metal Component R&D and Production Base Project" as the main entity for manufacturing humanoid robot components [92](index=92&type=chunk) [Analysis of Major Holding and Participating Companies](index=25&type=section&id=Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) This section presents financial information for key subsidiaries, Strong Core Technology and Freewon Nantong, both reporting net losses during the period, primarily engaged in diamond wire substrate and precision component manufacturing, respectively Key Subsidiary Financial Information (Unit: 10,000 yuan) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Strong Core Technology | Subsidiary | R&D and manufacturing of diamond wire substrate | 8,500 | 61,332.49 | 41,921.00 | 5,571.29 | -1,014.17 | -799.14 | | Freewon Nantong | Subsidiary | Precision components | 10,000 | 91,034.95 | 5,191.91 | 5,733.97 | -4,246.43 | -3,185.72 | [Other Disclosures](index=25&type=section&id=Other%20Disclosures) Leveraging its precision metal manufacturing expertise, the company is expanding into humanoid robot components, successfully developing micro planetary roller screws and delivering various metal parts, generating approximately one million yuan in revenue - The company leverages its precision metal manufacturing technology and R&D capabilities to expand into the humanoid robot industry, focusing on overcoming core technical bottlenecks such as high precision, long life, and low noise in micro screws [94](index=94&type=chunk) - Successfully developed micro planetary roller screws in specifications such as **9.0mm, 6.5mm, and 5.0mm** nut diameters, and has sent samples to **5 leading T1 customers** [94](index=94&type=chunk) - In addition to micro planetary roller screws, the company has begun shipping other metal components for robots, including reducer parts (limit sleeves), joint module parts (joint covers, driver brackets, finger joint assemblies, linear joint main housings), and high-precision wave springs, achieving approximately **one million yuan** in revenue to date [94](index=94&type=chunk) - The company possesses mature MIM (titanium alloy and aluminum alloy) production capacity and processes, which can be widely applied in key components of humanoid robots such as joints, sensors, and micro gears, showing promising development prospects [95](index=95&type=chunk)[96](index=96&type=chunk) [Section IV Corporate Governance, Environment and Society](index=27&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%20and%20Society) This section covers changes in the company's governance structure, including board and senior management personnel, profit distribution plans, and the impact of equity incentive plans [Changes in Company Directors, Senior Management, and Core Technical Personnel](index=27&type=section&id=Changes%20in%20Company%20Directors%2C%20Senior%20Management%2C%20and%20Core%20Technical%20Personnel) During the reporting period, the company underwent board re-election, with You Dongcha resigning as director and Chen Xiuping elected as employee representative director; Wang Zeng resigned as deputy general manager, and Luo Hongzhen was appointed Changes in Directors and Senior Management | Name | Position Held | Change | | :--- | :--- | :--- | | You Dongcha | Director | Resigned | | Chen Xiuping | Employee Representative Director | Elected | | Wang Zeng | Deputy General Manager | Resigned | | Luo Hongzhen | Deputy General Manager | Appointed | - The company convened a shareholders' meeting and an employee representative meeting on July 16, 2025, electing the fourth board of directors and appointing senior management and securities affairs representatives [99](index=99&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=27&type=section&id=Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The board of directors approved "no" profit distribution or capital reserve conversion plan for the current reporting period - Profit distribution plan or capital reserve conversion plan for this reporting period: None [100](index=100&type=chunk) [Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=27&type=section&id=Status%20and%20Impact%20of%20Company%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) On January 16, 2025, the company granted 4.5 million restricted shares to 89 incentive recipients at 8.00 yuan/share; concurrently, the third vesting period of the 2022 restricted stock incentive plan was canceled due to unmet performance targets - On January 16, 2025, the company granted **4.5 million** restricted shares to **89 incentive recipients** for the first time, at a grant price of **8.00 yuan/share** [101](index=101&type=chunk) - The vesting conditions for the third vesting period of the 2022 restricted stock incentive plan's initial and reserved grants were not met, and all granted but unvested restricted shares were canceled and invalidated [136](index=136&type=chunk) Restricted Stock Grant Status for Directors, Senior Management, and Core Technical Personnel (Unit: 10,000 shares) | Name | Position | Restricted Shares Granted at Beginning of Period | New Restricted Shares Granted This Period | Vesting Quantity | Vested Quantity | Restricted Shares Granted at End of Period | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | You Dongcha | Board Secretary | 0 | 7.50 | 0 | 0 | 7.50 | | Wang Zeng (Resigned) | Deputy General Manager | 0 | 15.00 | 0 | 0 | 15.00 | | He Yuliang | Deputy General Manager | 0 | 15.00 | 0 | 0 | 15.00 | | Chen Jun | Financial Controller | 0 | 7.50 | 0 | 0 | 7.50 | | Huang Yili | Core Technical Personnel | 0.7854 | 7.50 | 0 | 0 | 7.50 | | Xu Zhongping | Core Technical Personnel | 0.9894 | 6.00 | 0 | 0 | 6.00 | | Total | / | 1.7748 | 58.50 | 0 | 0 | 58.50 | [Section V Important Matters](index=29&type=section&id=Section%20V%20Important%20Matters) This section details the fulfillment of commitments, audit status, integrity of the company and its controlling shareholders, significant related party transactions, and the progress of raised funds utilization [Fulfillment of Commitments](index=29&type=section&id=Fulfillment%20of%20Commitments) The company's actual controllers, directors, senior management, core technical personnel, and controlling shareholders have strictly fulfilled all commitments, including share lock-ups, information disclosure, share repurchase, and avoiding competition - Actual controllers, directors, senior management, and core technical personnel Xu Huijun, Hong Shuijin, Xu Yazhu, Huang Yili, Xu Zhongping, Wang Zeng (resigned), Chen Jun, Zheng Qiuying (resigned) have all strictly fulfilled their share lock-up commitments [105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) - The company, its controlling shareholder, and actual controllers committed that the prospectus and other information disclosure materials contain no false records, misleading statements, or major omissions, and pledged to compensate investors or repurchase shares as legally required; all commitments were strictly fulfilled during the reporting period [107](index=107&type=chunk)[108](index=108&type=chunk) - Controlling shareholder WINWIN and actual controllers Xu Huijun, Hong Shuijin, Xu Yazhu committed to avoid horizontal competition and regulate related party transactions; all commitments were strictly fulfilled during the reporting period [109](index=109&type=chunk)[110](index=110&type=chunk) [Semi-Annual Report Audit Status](index=35&type=section&id=Semi-Annual%20Report%20Audit%20Status) This semi-annual report has not been audited - This semi-annual report has not been audited [112](index=112&type=chunk) [Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period](index=35&type=section&id=Explanation%20of%20the%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller%20During%20the%20Reporting%20Period) During the reporting period, the company, its controlling shareholder, and actual controllers demonstrated integrity, diligently fulfilling duties and complying with regulations, with no instances of unfulfilled judgments or overdue debts - During the reporting period, the company and its controlling shareholder and actual controllers diligently fulfilled their duties in accordance with relevant laws and regulations, including the "Company Law," "Articles of Association," and "Shanghai Stock Exchange STAR Market Stock Listing Rules," acting with integrity and without any instances of unfulfilled court judgments or significant overdue debts [112](index=112&type=chunk) [Significant Related Party Transactions](index=35&type=section&id=Significant%20Related%20Party%20Transactions) After completing a partial stock inquiry transfer, the company's controlling shareholder, WINWIN, provided approximately 203 million yuan in interest-free financial assistance to the company, with a validity period of at least one year - The company's controlling shareholder, WINWIN, after completing the inquiry transfer of some of its shares, provided all net proceeds (after tax) as interest-free financial assistance to the company, with a validity period of no less than one year [115](index=115&type=chunk) - WINWIN received **228 million yuan** from the inquiry transfer on May 30, 2025; after deducting relevant taxes, the remaining funds, approximately **203 million yuan**, have been fully lent to the company [115](index=115&type=chunk) [Explanation of Progress in Use of Raised Funds](index=37&type=section&id=Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) The company's convertible bond proceeds totaled 700 million yuan (net 690 million yuan), with 504 million yuan invested to date (73.12% progress); 122 million yuan was invested this year, and 108 million yuan of idle funds are managed as cash Overall Use of Raised Funds (Unit: 10,000 yuan) | Source of Raised Funds | Total Raised Funds | Net Raised Funds | Total Committed Investment of Raised Funds | Cumulative Investment of Raised Funds as of Reporting Period End | Cumulative Investment Progress of Raised Funds as of Reporting Period End (%) | Amount Invested This Year | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Issuance of Convertible Bonds | 70,000.00 | 69,004.80 | 69,004.80 | 50,457.46 | 73.12 | 12,203.98 | Detailed Use of Raised Investment Projects (Unit: 10,000 yuan) | Project Name | Planned Investment Amount of Raised Funds | Amount Invested This Period | Cumulative Investment Amount as of Reporting Period End | Investment Progress as of Reporting Period End (%) | Date Project Reaches Intended Usable State | | :--- | :--- | :--- | :--- | :--- | :--- | | Nantong Precision Metal Component Intelligent Manufacturing Project | 69,004.80 | 12,203.98 | 50,457.46 | 73.12 | June 2026 | - The company manages idle raised funds as cash, with a board-approved limit of **500 million yuan**; the cash management balance at the end of the reporting period was **108 million yuan**, within the authorized limit [121](index=121&type=chunk)[122](index=122&type=chunk) [Section VI Share Changes and Shareholder Information](index=40&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital, including share cancellations and convertible bond conversions, as well as the shareholder structure and holdings of key personnel [Changes in Share Capital](index=40&type=section&id=Changes%20in%20Share%20Capital) During the reporting period, the company's share capital changed due to the cancellation of 2 million repurchased shares and the conversion of 18.10 million "Freewon Convertible Bonds" into shares, increasing total shares to 259.27 million Share Change Table (Unit: shares) | | Quantity Before This Change | Proportion Before This Change (%) | Increase/Decrease in This Change (+,-) Subtotal | Quantity After This Change | Proportion After This Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 0 | 0 | 0 | 0 | 0 | | II. Unrestricted Tradable Shares | 243,164,188 | 100.00 | 16,104,849 | 259,269,037 | 100.00 | | III. Total Shares | 243,164,188 | 100.00 | 16,104,849 | 259,269,037 | 100.00 | - On January 16, 2025, the company canceled **2,000,000 shares**, accounting for **0.79%** of the total share capital before cancellation [127](index=127&type=chunk) - From January 1, 2025, to June 30, 2025, "Freewon Convertible Bonds" converted into **18,104,849 shares**, increasing unrestricted tradable shares by **18,104,849 shares** [127](index=127&type=chunk) [Shareholder Information](index=41&type=section&id=Shareholder%20Information) As of the end of the reporting period, the company had 8,872 common shareholders, with WINWIN OVERSEAS GROUP LIMITED being the largest shareholder at 40.02% Total Number of Shareholders | Indicator | Quantity | | :--- | :--- | | Total number of common shareholders at the end of the reporting period (households) | 8,872 | Top Ten Shareholders' Shareholding (Unit: shares) | Shareholder Name | Change During Reporting Period | Shares Held at Period End | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | WINWIN OVERSEAS GROUP LIMITED | -12,970,000 | 103,760,407 | 40.02 | Overseas Legal Person | | Chen Xianggang | -350,000 | 6,950,000 | 2.68 | Domestic Natural Person | | Chen Haihua | 5,508,889 | 5,508,889 | 2.12 | Domestic Natural Person | | Zhang Jianfei | 3,911,099 | 3,911,099 | 1.51 | Domestic Natural Person | | China Construction Bank Corporation - Guoshou Anbao Smart Life Stock Fund | 150,000 | 3,186,864 | 1.23 | Other | | Xu Guoxin | 2,969,358 | 2,969,358 | 1.15 | Domestic Natural Person | | Zhang Fan | 2,916,530 | 2,916,530 | 1.12 | Domestic Natural Person | | Guangfa Bank Co., Ltd. - Guotai Juxin Value Advantage Flexible Allocation Mixed Fund | 2,780,000 | 2,780,000 | 1.07 | Other | | Wang Zhiyang | -450,000 | 2,159,239 | 0.83 | Overseas Natural Person | | Gong Xiao | 2,041,962 | 2,041,962 | 0.79 | Domestic Natural Person | [Information on Directors, Senior Management, and Core Technical Personnel](index=42&type=section&id=Information%20on%20Directors%2C%20Senior%20Management%2C%20and%20Core%20Technical%20Personnel) Core technical personnel Xu Zhongping reduced holdings due to market trading; controlling shareholder WINWIN reduced holdings by 5.00% via inquiry transfer; Luo Hongzhen was granted 150,000 restricted shares and appointed deputy general manager Changes in Shareholdings of Directors, Senior Management, and Core Technical Personnel (Unit: shares) | Name | Position | Shares Held at Beginning of Period | Shares Held at End of Period | Change in Shares During Reporting Period | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Xu Zhongping | Core Technical Personnel | 15,683 | 12,322 | -3,361.00 | Secondary market trading | - The company's controlling shareholder, WINWIN, reduced its holdings by **12,970,000** ordinary RMB shares, representing **5.00%** of the company's total share capital, through an inquiry transfer on May 29, 2025 [135](index=135&type=chunk) - On January 16, 2025, the company granted **150,000** Class II restricted shares to Mr. Luo Hongzhen as part of the initial grant to incentive recipients; on July 16, 2025, Mr. Luo Hongzhen was appointed as the company's Deputy General Manager [137](index=137&type=chunk) [Section VII Bond-Related Information](index=45&type=section&id=Section%20VII%20Bond-Related%20Information) This section provides details on the company's convertible bonds, including issuance, trading, conversion status, credit ratings, and the decision not to exercise early redemption despite triggering conditions [Convertible Corporate Bonds](index=45&type=section&id=Convertible%20Corporate%20Bonds) The company issued 700 million yuan in "Freewon Convertible Bonds" on August 14, 2023, with 18.11 million shares converted to date; despite triggering a conditional redemption clause, the company decided not to exercise early redemption - On August 14, 2023, the company issued **7 million** convertible corporate bonds, raising **700 million yuan**, with a six-year term; the bond is abbreviated as "Freewon Convertible Bond" and has code "118043" [141](index=141&type=chunk) Freewon Convertible Bond Holder and Change Status | Indicator | Value | | :--- | :--- | | Number of convertible bond holders at period end | 3,567 | | Convertible bond balance before this change (Yuan) | 699,991,000 | | Convertible bond conversion in this change (Yuan) | 18,104,849 | | Convertible bond balance after this change (Yuan) | 428,134,000 | | Convertible bond conversion amount during reporting period (Yuan) | 271,857,000 | | Number of shares converted during reporting period (shares) | 18,104,849 | | Cumulative number of shares converted (shares) | 18,105,442 | | Cumulative number of shares converted as % of total shares issued before conversion (%) | 10.39 | | Unconverted bond amount (Yuan) | 428,134,000 | | Unconverted bonds as % of total bonds issued (%) | 61.16 | Historical Conversion Price Adjustments (Unit: Yuan/share) | Conversion Price Adjustment Date | Adjusted Conversion Price | | :--- | :--- | | February 5, 2024 | 21.27 | | June 6, 2024 | 15.03 | | March 7, 2025 | 15.00 | | June 3, 2025 | 14.90 | | Latest conversion price as of the end of this reporting period | 14.90 | - The company's main credit rating and "Freewon Convertible Bond" credit rating are both "**AA-**", with a "**stable**" outlook [148](index=148&type=chunk) - Although "Freewon Convertible Bond" triggered the conditional redemption clause, the company's board of directors decided not to exercise the early redemption right, and will not exercise it again if triggered within the next six months (March 5, 2025, to September 4, 2025) [149](index=149&type=chunk)[150](index=150&type=chunk) [Section VIII Financial Report](index=48&type=section&id=Section%20VIII%20Financial%20Report) This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed accounting policies and notes [Audit Report](index=48&type=section&id=Audit%20Report) This semi-annual report has not been audited - This semi-annual report has not been audited [152](index=152&type=chunk) [Financial Statements](index=48&type=section&id=Financial%20Statements) This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity for the first half of 2025 - The consolidated balance sheet shows that as of June 30, 2025, the company's total assets were **3.846 billion yuan**, and net assets attributable to shareholders were **1.803 billion yuan** [153](index=153&type=chunk)[155](index=155&type=chunk) - The consolidated income statement shows that for January-June 2025, the company's total operating revenue was **705.06 million yuan**, net profit was **-19.15 million yuan**, and net profit attributable to parent company shareholders was **-17.74 million yuan** [161](index=161&type=chunk)[163](index=163&type=chunk) - The consolidated cash flow statement shows that for January-June 2025, net cash flow from operating activities was **108.76 million yuan**, net cash flow from investing activities was **-239.35 million yuan**, and net cash flow from financing activities was **158.88 million yuan** [169](index=169&type=chunk) [Company Basic Information](index=68&type=section&id=Company%20Basic%20Information) Freewon Precision Mechanical (China) Co., Ltd. was established on June 30, 2016, listed on the Shanghai Stock Exchange on December 23, 2020, with a registered capital of 259.27 million yuan, primarily engaged in the design, manufacturing, and sales of new electronic components and precision parts - The company, formerly Freewon Precision Mechanical (China) Co., Ltd., was restructured on June 30, 2016, and listed on the Shanghai Stock Exchange on December 23, 2020 [184](index=184&type=chunk) - As of June 30, 2025, the company's registered capital was **RMB 259,269,037.00**, and its total share capital was **259,269,037 shares** [184](index=184&type=chunk) - The company's main business includes the design, manufacturing, and sales of new electronic components, springs, other precision general components, precision stamping dies, precision cavity molds, standard mold parts, precision metal structural parts, and automotive components, belonging to the general equipment manufacturing industry [185](index=185&type=chunk) [Basis of Financial Statement Preparation](index=68&type=section&id=Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared on a going concern basis, with no significant doubts about its ability to continue as a going concern for the next 12 months - The company's financial statements are prepared on a going concern basis [186](index=186&type=chunk) - There are no matters or circumstances that cause significant doubt about the company's ability to continue as a going concern for the 12 months from the end of the reporting period [187](index=187&type=chunk) [Significant Accounting Policies and Estimates](index=68&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's significant accounting policies and estimates for financial statement preparation, covering business combinations, financial instruments, receivables, inventory, fixed assets, revenue recognition, and government grants - The company's financial statements comply with enterprise accounting standards, accurately and completely reflecting its financial position, operating results, and cash flows [190](index=190&type=chunk) - Financial instruments are classified as financial assets and liabilities measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss [207](index=207&type=chunk) - Revenue recognition principles: Domestic sales are recognized upon customer acceptance and reconciliation; export sales are recognized upon product outbound, customs declaration, and customer acceptance, or upon reconciliation of actual goods received [283](index=283&type=chunk)[284](index=284&type=chunk) - Government grants are classified as asset-related or income-related and are generally recognized and measured when actually received [287](index=287&type=chunk)[288](index=288&type=chunk) [Taxation](index=93&type=section&id=Taxation) This section outlines the company's main tax types and rates, including VAT, urban maintenance and construction tax, and corporate income tax, along with various tax incentives for high-tech enterprises and advanced manufacturing Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Value-added amount generated during sales of goods or provision of taxable services | 13%, 6%, etc.; export tax refund rates 13%, 11%, 10%, 9%, and 5%, etc. | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | 5% | | Corporate Income Tax | Taxable income | 15%, 25%, 8.25%, 20% | | Property Tax | Assessed at 1.2% of the original value of the property after a 30% deduction; assessed at 12% of rental income for rental properties | 1.2%, 12% | | Education Surcharge | Amount of turnover tax payable | 3% | | Local Education Surcharge | Amount of turnover tax payable | 2% | - The company and its subsidiary Strong Core Technology passed the high-tech enterprise re-certification, and are subject to a **15%** corporate income tax rate for the current year [309](index=309&type=chunk)[310](index=310&type=chunk) - The company and its subsidiary Strong Core Technology enjoy R&D expense super deduction and VAT additional deduction policies for advanced manufacturing enterprises [310](index=310&type=chunk) - Freewon Hong Kong applies a preferential tax rate of **8.25%** for the first **HKD 2 million** of profits; subsidiaries Fuxinyuanlin and Freewon Suzhou calculate taxable income at **25%** and pay corporate income tax at a **20%** rate [311](index=311&type=chunk) [Notes to Consolidated Financial Statement Items](index=94&type=section&id=Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes for each consolidated financial statement item, explaining their composition, changes, and accounting treatment, covering assets, liabilities, equity, income, expenses, and cash flows - Cash and bank balances at period-end were **421 million yuan**, of which **1.87 million yuan** was held overseas [312](index=312&type=chunk) - Accounts receivable book balance at period-end was **500 million yuan**, with bad debt provisions of **26.63 million yuan** [325](index=325&type=chunk)[326](index=326&type=chunk) - Inventory book value at period-end was **463 million yuan**, with inventory impairment provisions and contract performance cost impairment provisions totaling **62.53 million yuan** [358](index=358&type=chunk)[360](index=360&type=chunk) - Fixed assets book value at period-end was **1.486 billion yuan**, including **521 million yuan** for buildings and structures, and **922 million yuan** for machinery and equipment [371](index=371&type=chunk) - Short-term borrowings at period-end were **487 million yuan**, a **47.71% increase** from the beginning of the period, primarily due to increased borrowings for operational turnover [399](index=399&type=chunk)[400](index=400&type=chunk) - Operating revenue for the current period was **705 million yuan**, operating cost was **578 million yuan**, with main business revenue accounting for **95.48%** of total revenue [440](index=440&type=chunk) [R&D Expenses](index=134&type=section&id=R%26D%20Expenses) This section details the company's R&D expenditures for the reporting period, totaling 68.51 million yuan, all expensed, primarily comprising employee compensation, direct materials, and depreciation R&D Expenses by Nature of Expense (Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Employee Compensation | 48,659,644.11 | 39,380,919.88 | | Direct Materials | 12,879,526.80 | 12,764,035.66 | | Depreciation and Amortization | 4,665,531.56 | 5,284,139.88 | | Other | 2,304,442.34 | 2,123,844.81 | | Total | 68,509,144.81 | 59,552,940.23 | | Of which: Expensed R&D Investment | 68,509,144.81 | 59,552,940.23 | [Changes in Consolidation Scope](index=135&type=section&id=Changes%20in%20Consolidation%20Scope) During the reporting period, the company established a wholly-owned subsidiary, Suzhou Freewon, with a registered capital of 300 million yuan, which has been included in the consolidated financial statements since its inception - In February 2025, the company established Suzhou Freewon with a registered capital of **RMB 300 million**, with the company subscribing **100%** of the capital; it has been included in the consolidated financial statements since its establishment due to the company's substantial control [481](index=481&type=chunk) - As of June 30, 2025, the company's paid-in capital was **RMB 30 million**; Suzhou Freewon's net assets were **RMB 29,902,036.47**, and its net profit from establishment to period-end was **RMB -97,963.53** [481](index=481&type=chunk) [Interests in Other Entities](index=136&type=section&id=Interests%20in%20Other%20Entities) This section outlines the company's interests in subsidiaries, including Strong Core Technology, a significant non-wholly-owned subsidiary with a 17.65% minority interest and a loss of 1.41 million yuan attributable to minority shareholders Composition of Enterprise Group (Unit: 10,000 yuan) | Subsidiary Name | Main Operating Location | Registered Capital | Business Nature | Shareholding Ratio (%) Direct | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Strong Core Technology | Nantong, Jiangsu | 8,500.00 | Manufacturing | 82.35 | Non-same control acquisition | | Freewon Nantong | Nantong, Jiangsu | 10,000.00 | Manufacturing | 100 | Establishment | | Freewon Hong Kong | Hong Kong, China | HK$10.00 | International trade and component trade | 100 | Establishment | | Fuxinyuanlin | Kunshan, Jiangsu | 1,000.00 | Agriculture | 100 | Establishment | | Freewon Suzhou | Kunshan, Jiangsu | 30,000.00 | Manufacturing | 100 | Establishment | Important Non-Wholly-Owned Subsidiaries (Unit: 10,000 yuan) | Subsidiary Name | Minority Shareholding Ratio (%) | Net Profit Attributable to Minority Shareholders This Period | Dividends Declared to Minority Shareholders This Period | Minority Interest Balance at Period End | | :--- | :--- | :--- | :--- | :--- | | Strong Core Technology | 17.65 | -141.05 | - | 5,778.41 | Key Financial Information of Important Non-Wholly-Owned Subsidiary (Strong Core Technology, Unit: 10,000 yuan) | Indicator | Period-End Balance | Period-Beginning Balance | | :--- | :--- | :--- | | Current Assets | 21,454.58 | 17,785.69 | | Non-Current Assets | 39,877.91 | 41,208.54 | | Total Assets | 61,332.49 | 58,994.23 | | Current Liabilities | 12,145.69 | 10,661.82 | | Non-Current Liabilities | 7,265.80 | 10,729.50 | | Total Liabilities | 19,411.49 | 21,391.32 | | Operating Revenue | 5,571.29 | 3,536.10 | | Net Profit | -799.14 | -707.80 | | Total Comprehensive Income | -799.14 | -707.80 | | Net Cash Flow from Operating Activities | -2,149.36 | -1,444.75 | [Government Grants](index=139&type=section&id=Government%20Grants) This section discloses the company's government grants for the reporting period, including asset-related and income-related grants, with a total of 5.49 million yuan recognized in current period profit or loss Government Grants Recognized in Current Period Profit or Loss (Unit: Yuan) | Type | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Asset-Related | 287,069.05 | 252,647.61 | | Income-Related | 5,206,626.38 | 7,667,919.07 | | Total | 5,493,695.43 | 7,920,566.68 | Liability Items Involving Government Grants (Unit: Yuan) | Financial Statement Item | Beginning Balance | New Grants This Period | Transferred to Other Income This Period | Other Changes This Period | Ending Balance | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 14,947,402.26 | - | 287,069.05 | - | 14,660,333.21 | Asset-Related | | Total | 14,947,402.26 | - | 287,069.05 | - | 14,660,333.21 | / | [Risks Related to Financial Instruments](index=140&type=section&id=Risks%20Related%20to%20Financial%20Instruments) This section details the company's financial instrument risk management, particularly regarding the transfer of financial assets, where bill endorsements are either derecognized or not, depending on the accepting bank's credit rating and recourse rights Classification of Financial Asset Transfer Methods (Unit: Yuan) | Transfer Method | Nature of Transferred Financial Assets | Amount of Transferred Financial Assets | Derecognition Status | Basis for Derecognition Judgment | | :--- | :--- | :--- | :--- | :--- | | Bill Endorsement | Undue bank acceptance bills in receivables financing | 21,089,230.68 | Derecognized | The accepting bank is a highly-rated bank, with very low credit risk and payment delay risk, and major risks and rewards of bill ownership have been transferred | | Bill Endorsement | Undue bank acceptance bills in notes receivable | 27,003,046.95 | Not Derecognized | The accepting bank is not a highly-rated bank, and endorsed or discounted bills do not affect recourse rights, so credit risk and payment delay risk have not been transferred | | Total | / | 48,092,277.63 | / | / | Financial Assets Derecognized Due to Transfer (Unit: Yuan) | Item | Method of Financial Asset Transfer | Amount of Derecognized Financial Assets | Gain or Loss Related to Derecognition | | :--- | :--- | :--- | :--- | | Undue bank acceptance bills in receivables financing | Bill Endorsement | 21,089,230.68 | - | | Total | / | 21,089,230.68 | - | [Disclosure of Fair Value](index=141&type=section&id=Disclosure%20of%20Fair%20Value) This section discloses the fair value of the company's assets and liabilities measured at fair value, totaling 179 million yuan, primarily comprising trading financial assets and receivables financing, mostly measured using Level 2 valuation techniques Fair Value of Assets and Liabilities Measured at Fair Value at Period End (Unit: Yuan) | Item | Level 1 Fair Value Measurement | Level 2 Fair Value Measurement | Level 3 Fair Value Measurement | Total | | :--- | :--- | :--- | :--- | :--- | | I. Continuous Fair Value Measurement | | | | | | (I) Trading Financial Assets | - | 152,618,202.10 | - | 152,618,202.10 | | 1. Financial assets measured at fair value through profit or loss | - | 152,618,202.10 | - | 152,618,202.10 | | (1) Debt instrument investments | - | 152,618,202.10 | - | 152,618,202.10 | | (4) Receivables financing | - | 27,238,085.50 | - | 27,238,085.50 | | Total assets continuously measured at fair value | - | 179,856,287.60 | - | 179,856,287.60 | - The fair value of shares held by the company is determined by the closing price on the balance sheet date [499](index=499&type=chunk) - The fair value of bank wealth management products and bills receivable used for discounting or endorsement is determined using valuation techniques such as discounted cash flow models or market quotes for similar instruments [500](index=500&type=chunk) - The book value of financial assets and liabilities not measured at fair value (e.g., cash and bank balances, bills receivable, accounts receivable, short-term borrowings) differs minimally from their fair value [501](index=501&type=chunk) [Related Parties and Related Party Transactions](index=142&type=section&id=Related%20Parties%20and%20Related%20Party%20Transactions) This section discloses the company's related parties and transactions, with WINWIN OVERSEAS GROUP LIMITED as the controlling shareholder and Xu Huijun, Hong Shuijin, and Xu Yazhu as actual controllers; key management personnel compensation was 3.61 million yuan, and other payables include 100 million yuan borrowed from WINWIN Information on the Company's Parent Company (Unit: Yuan) | Parent Company Name | Registered Place | Business Nature | Registered Capital | Parent Company's Shareholding Ratio in the Company (%) | Parent Company's Voting Rights Ratio in the Company (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | WINWIN OVERSEAS GROUP LIMITED | British Virgin Islands | Investment | USD 50,000 | 40.02 | 40.02 | - The company's actual controllers are Xu Huijun, Hong Shuijin, and Xu Yazhu, who collectively indirectly hold **40.02%** of the company's shares through WINWIN [503](index=503&type=chunk) Key Management Personnel Compensation (Unit: 10,000 yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Key Management Personnel Compensation | 360.59 | 290.81 | - Other payables include **100 million yuan** borrowed from controlling shareholder WINWIN [418](index=418&type=chunk) [Share-Based Payments](index=144&type=section&id=Share-Based%20Payments) This section details the company's share-based payment plans, including the grant of 4.5 million restricted shares to management and key personnel, resulting in a share-based payment expense of 7.92 million yuan Details of Equity Instruments (Unit: shares, Yuan) | Category of Grantee | Quantity Granted This Period | Amount Granted This Period | | :--- | :--- | :--- | | Management and Technical/Business Backbone | 4,500,000.00 | 7,917,501.81 | | Total | 4,500,000.00 | 7,917,501.81 | Share-Based Payment Expense This Period (Unit: Yuan) | Category of Grantee | Equity-Settled Share-Based Payment Expense | | :--- | :--- | | Management and Technical/Business Backbone | 7,917,501.81 | | Total | 7,917,501.81 | [Commitments and Contingencies](index=145&type=section&id=Commitments%20and%20Contingencies) As of the balance sheet date, the company has no significant commitments or contingencies requiring disclosure - As of the balance sheet date, the company has no significant contingencies requiring disclosure [515](index=515&type=chunk) [Events After the Balance Sheet Date](index=145&type=section&id=Events%20After%20the%20Balance%20Sheet%20Date) As of the report disclosure date, the company has no significant non-adjusting events, profit distribution, or sales returns after the balance sheet date requiring disclosure - As

| 证券代码：688678 | 证券简称：福立旺 | 公告编号：2025-061 | | --- | --- | --- | | 转债代码：118043 | 转债简称：福立转债 | | 福立旺精密机电(中国)股份有限公司 2025 年半年度募集资金存放与 使用情况的专项报告 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。 根据《上市公司募集资金监管规则》《上海证券交易所科创板股票上市规则》 《上海证券交易所科创板上市公司自律监管指引第 1 号——规范运作》《福立旺 精密机电(中国)股份有限公司募集资金管理制度》(以下简称"《募集资金管理 制度》")等规定，福立旺精密机电(中国)股份有限公司(以下简称"福立旺"或 "公司")董事会编制了截至 2025 年 6 月 30 日止的募集资金存放与实际使用情 况的专项报告，具体如下： 一、募集资金基本情况 （一）实际募集资金金额和资金到账时间 根据中国证券监督管理委员会（以下简称"中国证监会"）出具的《关于同 意福立旺精密机电(中国)股份有限公司向不特定对象发行可转换公司债券注册 的 ...

福立旺精密机电（中国）股份有限公司 关于 2025 年半年度计提资产减值准备的公告 | 证券代码：688678 | 证券简称：福立旺 | 公告编号：2025-062 | | --- | --- | --- | | 转债代码：118043 | 转债简称：福立转债 | | 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、本次计提资产减值准备情况 根据《企业会计准则》和相关会计政策等规定，为真实、准确地反映公司截 至 2025 年 6 月 30 日的财务状况及 2025 年半年度的经营成果，公司对合并范 围内的相关资产进行了全面清查，基于谨慎性原则，对可能发生减值损失的相关 资产计提了减值准备。具体情况如下表所示： 2025 年上半年，公司计提各项减值准备共计 2,485.01 万元，具体如下： （一）信用减值损失 根据《企业会计准则》及公司会计政策，公司以预期信用损失为基础，对应 收账款、其他应收款、应收票据进行减值测试。经测试，公司 2025 年半年度应 收票据坏账准备转回 0.05 万元，应收账款坏账准备转回 324. ...

福立旺精密机电（中国）股份有限公司 2025 年上半年，公司继续深耕精密金属零部件的研发、制造和销售，主要 为 3C、汽车、电动工具等下游应用行业的客户提供精密金属零部件产品；公司 产品按下游应用领域可以分为 3C 类精密金属零部件、汽车类精密金属零部件、 电动工具类精密金属零部件、其他行业精密金属零部件及金刚线母线。报告期内， 受益于消费电子行业整体复苏及市场需求的稳步提升。公司通过工艺改进，从设 计、工艺、品质、服务等方面为公司发展注入新动力，公司知名度在业内显著提 高，与大客户深度绑定，形成了长期良好合作关系，取得多款新产品料号定点， 公司新产品、新料号导入大客户较为顺利，新导入产品市场需求良好，目前客户 大订单正在有序进行中，逐步爬产上量。 2025 年上半年，公司实现营业收入 70,505.86 万元，同比增长 27.45%；实 现归属于上市公司股东的净利润-1,773.76 万元，同比减少 138.73%；归属于上 市公司股东的扣除非经常性损益的净利润-2,500.82 万元，同比减少 171.26%。 报告期内，公司利用在精密金属制造方面的技术积累和研发能力向人形机器 人行业进一步拓展，在精密传 ...

| 证券代码：688678 | 证券简称：福立旺 | 公告编号：2025-063 | | --- | --- | --- | | 转债代码：118043 | 转债简称：福立转债 | | 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 8 月 28 日（星期四）至 9 月 3 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 ir@freewon.com.cn 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。 福立旺精密机电（中国）股份有限公司（以下简称"公司"）已于 2025 年 8 月 27 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 2025 年 9 月 4 日上午 09:00-10:00 举行 2025 年半年度业绩说明会，就投资者关心的问题进行交流。 一、说明会类型 本次投资者说明会以网络互动形式召开， ...

Company Overview - 福立旺精密机电(中国)股份有限公司 is located in Kunshan, Jiangsu Province, established on May 18, 2006, and listed on December 23, 2020. The company specializes in various types of springs, connectors, and automotive components [1][2]. Stock Performance - As of August 22, 福立旺's stock price decreased by 2.02%, trading at 27.16 CNY per share, with a total market capitalization of 7.042 billion CNY. The stock has increased by 84.14% year-to-date, with a 5.60% rise over the last five trading days, 30.58% over the last 20 days, and 42.57% over the last 60 days [1]. - The company has seen a net outflow of 22.55 million CNY in principal funds, with significant selling pressure observed [1]. Financial Performance - For the period from January to March 2025, 福立旺 reported a revenue of 338 million CNY, reflecting a year-on-year growth of 37.60%. The net profit attributable to the parent company was 14 million CNY [2]. Shareholder Information - As of August 10, 福立旺 had 9,843 shareholders, an increase of 4.24% from the previous period. The average number of circulating shares per shareholder decreased by 4.06% to 26,340 shares [2]. - Since its A-share listing, 福立旺 has distributed a total of 232 million CNY in dividends, with 129 million CNY distributed over the past three years [2]. Institutional Holdings - As of March 31, 2025, 国泰聚信价值优势灵活配置混合A (000362) is the third-largest circulating shareholder, holding 4.8 million shares as a new investor [2]. Industry Classification - 福立旺 is classified under the Shenwan industry category of Electronics - Consumer Electronics - Consumer Electronic Components and Assemblies, and is associated with concepts such as diamond, small-cap, robotics, Foxconn, and consumer electronics [1].

Core Viewpoint - The company has approved the use of up to RMB 190 million of temporarily idle raised funds for cash management, ensuring that it does not affect the construction of investment projects or normal operations [2][18]. Group 1: Fundraising Overview - The company was authorized to issue 7 million convertible bonds at a face value of RMB 100 each, raising a total of RMB 700 million, with a net amount of RMB 690 million after deducting issuance costs [3]. - The raised funds are managed in a dedicated account to protect investor rights, with agreements in place for supervision [3][4]. Group 2: Reasons for Idle Funds - Some of the raised funds are temporarily idle due to the cyclical nature of investment project construction and the timing of fund allocation [4]. Group 3: Cash Management Plan - The purpose of using idle funds is to improve efficiency and generate returns for the company and its shareholders [6]. - The company will invest up to RMB 190 million in safe, liquid financial products with capital protection agreements, such as structured deposits and time deposits, within a 12-month period [7][8]. - The board has authorized the chairman to make investment decisions and sign relevant legal documents, with the finance department of the wholly-owned subsidiary responsible for implementation [9]. Group 4: Impact on Operations - The cash management will not affect the implementation of investment plans and is expected to enhance fund utilization efficiency, providing additional returns for the company and shareholders [12]. Group 5: Opinions and Approvals - The board's audit committee supports the cash management plan, stating it will improve fund utilization and does not harm the interests of the company or minority shareholders [18][19]. - The sponsor institution has confirmed that the decision-making and approval processes comply with relevant regulations [19][20].

Core Viewpoint - Fuliwang announced the approval of a plan to use up to RMB 190 million of temporarily idle raised funds for cash management, ensuring it does not affect the construction of investment projects or normal operations [2] Group 1 - The company will invest in financial products with high safety and liquidity, including but not limited to structured deposits, time deposits, and large certificates of deposit [2] - The approved amount is valid for 12 months from the date of the board's approval, allowing for the funds to be used in a rolling manner within the specified limit and timeframe [2]

格隆汇8月21日丨福立旺(688678.SH)公布，自本次董事会审议通过之日起12个月内，公司使用最高不超 过人民币1.90亿元，暂时闲置募集资金进行现金管理，上述资金额度在有效期内可循环滚动使用。 ...