Financial Performance - Net profit attributable to shareholders was CNY 137,069,564.93, an increase of 312.93% year-on-year[8]. - Operating revenue for the reporting period was CNY 264,114,640.34, down 7.13% compared to the same period last year[8]. - Basic earnings per share were CNY 0.15, an increase of 275.00% year-on-year[8]. - The company reported a net profit of CNY -35,504,711.63 after deducting non-recurring gains and losses, a decrease of 222.31% year-on-year[8]. - The company forecasts a cumulative net profit of 200 million yuan for the year, a significant increase of 126.44% compared to a loss of 756.54 million yuan in the same period last year[40]. - Basic earnings per share are expected to be 0.22 yuan, reflecting a growth of 125.29% from a loss of 0.87 yuan per share in the previous year[40]. - The company reported a net loss of ¥44,563,804.94, an improvement from a loss of ¥222,622,210.08 in the previous period[63]. - Net profit for the current period reached CNY 130,977,223.65, compared to CNY 32,998,311.60 in the previous period, marking an increase of 296.5%[77]. - The company reported a net loss from credit impairment of CNY -11,796,023.74, compared to CNY -863,631.10 in the previous period, indicating a deterioration in credit quality[76]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,885,644,845.14, a decrease of 13.74% compared to the end of the previous year[8]. - The company's current assets totaled CNY 2,428,607,608.88 as of September 30, 2020, down from CNY 2,646,341,302.70 at the end of 2019, indicating a decrease of about 8.25%[54]. - Total liabilities as of September 30, 2020, were CNY 1,823,186,608.00, compared to CNY 2,080,000,000.00 at the end of 2019, reflecting a decrease of approximately 12.35%[56]. - The total assets decreased to ¥3,685,843,059.09 from ¥3,870,401,728.68[67]. - The total liabilities were approximately $1.70 billion, indicating a stable leverage position[127]. - The company has a total current liabilities of approximately $1.35 billion, with short-term borrowings of $156.17 million[123]. Cash Flow - The net cash flow from operating activities was CNY 33,604,135.02, a decrease of 0.80% compared to the previous period[8]. - Net cash flow from operating activities decreased by 123.90% for the period from January to September 2020 compared to the same period in 2019, primarily due to a decline in sales revenue[25]. - Cash inflow from operating activities was ¥957,552,079.21, down from ¥1,259,407,139.53, a decrease of approximately 24%[106]. - The net cash flow from operating activities turned negative at -¥36,384,393.59, compared to a positive ¥152,225,164.98 in the previous period[106]. - Cash inflow from financing activities was ¥213,137,087.93, compared to ¥382,250,000.00, a decrease of approximately 44.3%[109]. Shareholder Information - The total number of shareholders at the end of the reporting period was 72,219, with the top ten shareholders holding significant stakes[13]. - Major shareholder Yang Hua held 10.28% of the shares, with a total of 92,484,571 shares[13]. Research and Development - R&D expenses for the period from January to September 2020 increased by 36.10% compared to the same period in 2019, reflecting increased investment in research and development[21]. - Research and development expenses rose to ¥113,496,993.89 from ¥83,394,525.45, an increase of 36.1%[89]. Corporate Governance - The company has established a stock option and restricted stock incentive plan, approved by the board and shareholders, to enhance governance and management responsibility[27]. - The initial grant date for the incentive plan is set for September 25, 2020, with 8.93 million stock options and 9.4 million restricted shares granted to 165 eligible participants[28]. Investment Activities - Non-operating income totaled CNY 205,401,905.78, primarily due to the disposal of a subsidiary[8]. - Investment income for the period from January to September 2020 increased by 2919.23% compared to the same period in 2019, primarily due to the disposal of subsidiary Hezheng Electronics[24]. - The company reported investment income of CNY 180,019,434.61, a substantial increase from CNY 4,949,367.61 in the previous period[76]. Operational Strategy - The company is focusing on business layout and development strategies, as discussed in various investor communications throughout August and September 2020[49]. - The company plans to continue expanding its market presence and invest in new technologies to drive future growth[94].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥562,521,925.52, a decrease of 22.93% compared to ¥729,860,260.26 in the same period last year[23]. - The net profit attributable to shareholders was ¥40,988,840.21, down 57.78% from ¥97,092,121.02 year-on-year[23]. - The net profit after deducting non-recurring gains and losses was ¥8,161,210.99, a significant decline of 90.45% compared to ¥85,419,537.11 in the previous year[23]. - The net cash flow from operating activities was negative at ¥69,988,528.61, a decrease of 159.14% from ¥118,348,914.02 in the same period last year[23]. - Basic earnings per share were ¥0.05, down 54.55% from ¥0.11 in the previous year[23]. - Total assets at the end of the reporting period were ¥4,377,544,919.06, a decrease of 2.82% from ¥4,504,753,061.09 at the end of the previous year[23]. - The net assets attributable to shareholders increased by 2.05% to ¥2,858,010,263.48 from ¥2,800,649,806.02 at the end of the previous year[23]. Dividend and Shareholder Actions - The company plans not to distribute cash dividends or issue bonus shares[7]. - The company reported a shareholder participation rate of 18.11% during the 2019 Annual General Meeting held on May 28, 2020[97]. - The company will not distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the half-year period[97]. Operational Challenges and Strategic Focus - The company faced significant operational challenges, as indicated by the substantial decline in both revenue and profit metrics[23]. - The company focuses on the military electronics sector, emphasizing the development of small microwave/mmWave modules and systems, with products widely used in high-tech fields such as aerospace and communications[34]. - In the telecommunications sector, the company plans to increase R&D investment in 5G technology, aiming to enhance collaboration with major equipment manufacturers and operators[36]. - The automotive electronics business faced significant revenue decline due to external factors, leading the company to divest its 100% stake in Shenzhen Hezheng Automotive Electronics Co., Ltd.[37]. Research and Development - Research and development investment increased by 14.52% to ¥77,839,314.65, compared to ¥67,970,791.90 in the previous year[51]. - The company has established a national-level laboratory exceeding 6,000 square meters, certified by ISO/17025, to support rapid market entry for new technologies and products[41]. - The company has a total of 549 patents, showcasing its commitment to innovation and technology advancement[41]. Financial Management and Investments - The company has increased its investment in construction projects during the reporting period, indicating growth in its operational capabilities[40]. - The total amount of raised funds was ¥98,505,000, with ¥1,182.61 invested during the reporting period and a cumulative investment of ¥34,408.14[67]. - The cumulative proportion of changed use of raised funds reached 53.80%, with ¥53,000,000 in total changed use[67]. - The company plans to continue investing in the smart communication antenna R&D and production center, with a total commitment of ¥39,000,000[68]. Asset Management - The revenue from the communication equipment segment was ¥215,406,435.47, representing a 40.62% decrease year-on-year[54]. - The military electronics segment saw a revenue increase of 10.39% to ¥165,771,825.25, compared to ¥150,164,881.38 in the previous year[54]. - Domestic sales accounted for 96.50% of total revenue, with a decrease of 24.52% compared to the previous year[54]. - Inventory increased to ¥545,173,063.83, up 12.45% from ¥535,953,187.83, which was a 10.06% increase year-over-year[61]. - Investment properties reached ¥216,308,697.58, representing a 4.94% increase, while long-term equity investments rose to ¥53,098,391.42, a 1.21% increase[61]. - Fixed assets grew to ¥337,867,854.42, reflecting a 7.72% increase compared to the previous period[61]. Risk Management - The company is facing risks related to industry policy changes and technology advancements, which may impact business development[90]. - The company plans to adopt a more prudent investment strategy during mergers and acquisitions to mitigate goodwill impairment risks, focusing on targets closely related to its core business and ensuring effective integration[91]. Corporate Governance - The company has not encountered any significant changes in the feasibility of the projects after fundraising adjustments[78]. - The company has not experienced any major litigation or arbitration matters during the reporting period[103]. - The company has not engaged in any related party transactions during the reporting period[109]. - The company has not implemented any employee incentive plans or stock ownership plans during the reporting period[108]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[118]. - The company has not experienced any penalties or rectification situations during the reporting period[105]. - The company has not engaged in any major contracts or leasing situations during the reporting period[119]. Shareholder Structure and Changes - The total number of shares before the change was 897,096,020, with a proportion of 100.00%[145]. - The number of limited sale condition shares decreased by 44,300,449, resulting in a new total of 232,299,634 shares, which is 25.82% of the total[145]. - The number of unrestricted shares increased by 46,927,146, leading to a new total of 667,423,083 shares, which is 74.18% of the total[145]. - The total number of shares after the change is 899,722,717[145]. - The company’s major shareholders include Yang Hua with 10.28% (92,484,571 shares) and He Yongxing with 6.38% (57,362,190 shares)[149]. - The top ten unrestricted shareholders hold a total of 15,416,358 shares, with the largest being China Bank's fund[153]. - The company did not experience any changes in its controlling shareholder or actual controller during the reporting period[157]. Debt and Credit Management - The company's long-term credit rating is AA- with a stable outlook, and the convertible bond rating is also AA[170]. - The company maintained a 100% loan repayment rate and interest payment rate during the reporting period[195]. - The total bank credit limit for the company was 690,000,000 CNY, with actual usage at 356,478,600 CNY, and all loans were repaid on time[197]. - The company did not have any overdue debts during the reporting period[196]. - The company’s credit rating remains stable with a long-term credit rating of AA- and a bond credit rating of AA[188]. Changes in Management - The company experienced changes in its board members, with several resignations and new appointments effective August 19, 2020[178]. - The total number of shares held by departing director He Yongxing was 57,362,190 after a reduction of 5,000,000 shares[175]. - The company has a total of 266,306,033 shares held by directors and senior management, with 37,665,400 shares reduced during the reporting period[178].

Financial Performance - The company's operating revenue for 2019 was CNY 1,333,581,260.18, a decrease of 5.91% compared to CNY 1,417,384,346.38 in 2018[24] - The net profit attributable to shareholders for 2019 was a loss of CNY 756,535,445.28, representing a decline of 724.56% from a profit of CNY 121,131,496.67 in 2018[24] - The basic earnings per share for 2019 was -CNY 0.87, a decrease of 643.75% from CNY 0.16 in 2018[27] - The company reported a net profit excluding non-recurring gains and losses of -CNY 785,560,530.04 for 2019, a decline of 858.06% from CNY 103,627,987.61 in 2018[24] - The weighted average return on net assets for 2019 was -24.82%, down 29.38% from 4.56% in 2018[27] - The company reported a significant increase in non-recurring gains, totaling CNY 29.03 million in 2019, primarily from government subsidies and asset disposals[34] - The company reported a net profit of 36,933,668.72 CNY from its subsidiary Nanjing Hengdian Electronics Co., Ltd., contributing over 10% to the company's net profit[117] - The subsidiary Shenzhen Qianhai Shengyuan Investment Co., Ltd. achieved a net profit of 2,707,065.78 CNY, indicating a positive performance in equity and asset management[121] Cash Flow and Assets - The net cash flow from operating activities was CNY 216,190,498.42, a significant increase of 1,994.85% compared to a negative cash flow of CNY 11,409,370.80 in 2018[27] - The total assets at the end of 2019 were CNY 4,504,753,061.09, down 16.54% from CNY 5,397,280,499.11 at the end of 2018[27] - The net assets attributable to shareholders at the end of 2019 were CNY 2,800,649,806.02, a slight decrease of 0.89% from CNY 2,825,677,938.42 at the end of 2018[27] - The company's cash and cash equivalents decreased by 124.02% to -¥139,463,063.67, indicating a significant cash outflow[79] - The company's total assets included cash of ¥1,097,102,899.94, representing 24.35% of total assets at year-end[84] Research and Development - The company increased its R&D investment in 5G technology, leading to the development and mass delivery of over 30,000 base station antennas and the completion of the third-generation Smart DAS system[40] - The company has developed and delivered over 50,000 units of E-Band/V-Band millimeter-wave antennas, with a focus on high-frequency products and multi-functional chips for 5G applications[41] - Research and development expenses increased by 72.56% to approximately ¥134.15 million, indicating a significant investment in product technology[72] - The company's R&D investment increased by 38.79% to ¥157,358,476.05 in 2019, compared to ¥113,379,978.83 in 2018[74] - The number of R&D personnel rose by 9.27% to 507, accounting for 22.50% of the total workforce[74] Market and Business Strategy - The company is actively expanding its market presence in the defense and military sectors, focusing on the development of microwave and millimeter-wave technologies[42] - The company is collaborating with China Mobile to develop integrated antenna solutions for indoor communication, enhancing its service offerings in the 5G era[40] - The company has established a strategic focus on system integration and operational management services, moving beyond traditional product sales[40] - The company plans to accelerate the construction of 5G networks, with major telecom operators in China planning to invest approximately 1,000 billion CNY in 5G-related projects in 2020[124] - The automotive electronics sector is prioritized for development, with government policies aimed at boosting consumption and supporting the automotive industry[124] - The company is exploring market expansion opportunities in the 5G and automotive sectors, driven by technological advancements and government support[124] Dividends and Shareholder Commitments - The company plans not to distribute cash dividends or issue bonus shares[7] - In 2019, the company did not distribute any cash dividends, reflecting a net loss of approximately 756.54 million RMB[138] - The company has established a performance compensation obligation for shareholders if the cumulative net profit from 2017 to 2023 does not meet the promised level[156] - The actual operating cash flow must be positive in any accounting year during the profit commitment period[145] - The performance commitments made by shareholders and related parties have been fulfilled as of the reporting period end[142] Risks and Challenges - The company faces risks related to changes in industry policies that could impact demand in mobile communication and defense sectors[129] - The rapid technological advancements in the industry pose a risk of potential delays in product updates, affecting market share and profitability[130] - The company is committed to prudent investment strategies during mergers and acquisitions to mitigate goodwill impairment risks[130] Accounting and Compliance - Changes in accounting policies included the separation of "receivables" into "notes receivable" and "accounts receivable," with the previous year's balances being 228.80 million CNY and 776.70 million CNY respectively[168] - The company adjusted its financial reporting to comply with new accounting standards, impacting the classification of financial assets, including a reduction of 28 million CNY in available-for-sale financial assets[168] - The company has no significant accounting errors that require retrospective restatement during the reporting period[175] - There were no changes in the scope of consolidation compared to the previous year's financial report[179] - The company did not engage in any major litigation or arbitration matters during the reporting period[182]

Financial Performance - The company's operating revenue for Q1 2020 was ¥246,616,036.43, a decrease of 39.04% compared to ¥404,543,670.67 in the same period last year[8] - The net profit attributable to shareholders for Q1 2020 was ¥5,351,673.03, down 92.05% from ¥67,347,118.24 year-on-year[8] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥3,615,662.24, a decline of 93.85% compared to ¥58,827,122.53 in the previous year[8] - Basic earnings per share for Q1 2020 were ¥0.01, down 87.50% from ¥0.08 in the previous year[8] - The net profit for the first half of 2020 is expected to decline by over 50% year-on-year, with a projected range of 25 million to 35 million yuan[25] - The total profit for the period was 9,920,377.15, a decrease of 67.3% compared to 30,334,546.78 in the previous period[70] - The net profit for the period was 8,580,969.69, down 66.9% from 25,889,637.63 in the previous period[70] Cash Flow - The net cash flow from operating activities was -¥30,646,806.42, a significant decrease of 517.71% from ¥7,336,785.46 in the same period last year[8] - Cash received from sales decreased by 37.51% in Q1 2020 compared to Q1 2019, primarily due to delays in customer operations caused by the pandemic[21] - Cash inflow from operating activities was 305,943,425.68, a decline of 36.5% from 481,738,462.21 in the previous period[74] - Cash outflow from operating activities totaled 336,590,232.10, down 29.1% compared to 474,401,676.75 in the previous period[77] - The net cash flow from investment activities was 37,596,150.54, a significant improvement from -156,311,527.77 in the previous period[77] - The company reported a net cash flow from financing activities of -¥14.07 million, compared to a positive inflow of ¥222.76 million in the previous period[83] Assets and Liabilities - Total assets at the end of the reporting period were ¥4,374,917,920.07, a decrease of 2.88% from ¥4,504,753,061.09 at the end of the previous year[8] - Total liabilities decreased from ¥1,695,498,899.52 to ¥1,547,729,718.58, a decline of about 8.7%[44] - Current liabilities decreased from ¥1,350,507,327.54 to ¥1,224,207,116.99, a reduction of approximately 9.3%[44] - Total current assets increased to approximately ¥2.70 billion from ¥2.65 billion, indicating a growth in liquidity[87] - The company's total assets were reported at approximately ¥4.50 billion, unchanged from the previous reporting period[90] - The total liabilities remained stable at approximately ¥1.70 billion, with current liabilities accounting for about ¥1.35 billion[90] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 82,900[11] - The top shareholder, Yang Hua, held 11.59% of the shares, amounting to 104,284,571 shares[11] Research and Development - R&D expenses increased by 41.44% in Q1 2020 compared to Q1 2019, due to increased investment in research and development[20] - Research and development expenses for the current period are CNY 29,792,154.50, up from CNY 21,063,779.88 in the previous period, indicating an increase of about 42%[59] Other Financial Metrics - Financial expenses increased by 430.69% in Q1 2020 compared to Q1 2019, primarily due to a rise in interest expenses[20] - The company reported a financial expense of CNY 3,371,050.12, compared to a financial income of CNY -1,019,387.68 in the previous period, marking a significant shift[59] - The company has a significant amount of goodwill recorded at approximately ¥877.13 million, reflecting its acquisitions strategy[87] - The company’s retained earnings showed a negative balance of approximately -¥222.62 million, highlighting potential challenges in profitability[90]

Financial Position - Total assets at the end of the reporting period were CNY 5,355,178,481.94, a decrease of 0.78% compared to the end of the previous year[8]. - Total current assets decreased from ¥3,104,712,209.52 to ¥2,955,310,484.61, a decline of approximately 4.03%[37]. - Total non-current assets increased from ¥2,292,568,289.59 to ¥2,399,867,997.33, an increase of about 4.67%[37]. - Total liabilities decreased from ¥2,569,848,866.55 to ¥1,676,284,107.72, a decrease of about 34.7%[40]. - Total equity attributable to shareholders increased from ¥2,825,677,938.42 to ¥3,678,530,887.49, an increase of about 30.2%[43]. - The company's equity totaled CNY 2,827,431,632.56, with total equity attributable to shareholders at CNY 2,825,677,938.42[110]. - Total liabilities reached approximately $1.98 billion, with current liabilities totaling around $819.32 million[120]. Revenue and Profitability - Operating revenue for the reporting period was CNY 284,390,423.51, down 0.61% year-on-year, while total operating revenue from the beginning of the year to the end of the reporting period was CNY 1,014,250,683.77, an increase of 1.38%[8]. - Net profit attributable to shareholders of the listed company for the reporting period was CNY 33,194,779.28, an increase of 27.32% year-on-year[8]. - Net profit for the current period was ¥32,998,311.60, an increase of 39.93% compared to ¥23,612,963.25 in the previous period[57]. - The company achieved a net profit of ¥128,896,692.89 for the current period, compared to ¥118,622,498.16 in the previous period, showing a growth of 10.8%[74]. - Net profit for the current period was ¥73,828,483.73, significantly up from ¥31,491,860.12 in the previous period, indicating an increase of approximately 134%[81]. Cash Flow - Net cash flow from operating activities was CNY 33,876,250.96, a significant increase of 241.93%[8]. - Cash flow from operating activities generated ¥152,225,164.98, a turnaround from a negative cash flow of -¥99,601,761.73 in the previous period[87]. - Net cash flow from operating activities was CNY 59,981,332.79, significantly higher than CNY 3,998,768.65 in the prior period, indicating a substantial improvement[96]. - Cash inflow from sales of goods and services reached ¥1,151,430,570.32, compared to ¥896,254,215.02 in the previous period, indicating a growth of approximately 28.5%[87]. Assets and Liabilities Management - Accounts receivable decreased by 46.95% from December 31, 2018, primarily due to the maturity of commercial acceptance bills[21]. - Inventory decreased from ¥141,038,388.05 to ¥97,667,842.02, a decline of about 30.7%[44]. - The company reported a decrease in accounts payable to ¥171,492,982.61 from ¥285,832,400.48, showing improved cash flow management[60]. - Total current liabilities decreased from ¥1,378,334,903.01 to ¥1,190,482,553.23, a decline of about 13.6%[40]. - Total non-current liabilities decreased significantly from ¥1,191,513,963.54 to ¥485,801,554.49, a reduction of approximately 59.3%[40]. Investment and R&D - Research and development expenditures increased by 106.71% from December 31, 2018, reflecting higher investment in R&D projects[21]. - Research and development expenses rose to ¥29,190,276.73, an increase of 59.84% from ¥18,286,129.90 in the previous period[54]. - Research and development expenses increased to ¥23,660,875.00 from ¥15,317,260.43, reflecting an increase of about 54%[81]. Shareholder Information - The total number of shareholders at the end of the reporting period was 67,674, with the top ten shareholders holding a combined 42.71% of the shares[12]. - Share capital increased from ¥762,110,260.00 to ¥895,881,246.00, an increase of approximately 17.5%[43]. Other Financial Metrics - Basic earnings per share for the reporting period were CNY 0.04, an increase of 33.33%[8]. - The weighted average return on net assets was 1.17%, a decrease of 0.14% compared to the previous year[8]. - The company reported non-operating income of CNY 15,838,366.99, primarily from government subsidies and other income[8]. - The company reported a total profit of ¥17,765,504.65, compared to ¥1,701,728.34 in the previous period, reflecting a substantial increase[65].

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 729,860,260.26, representing a 2.17% increase compared to CNY 714,350,448.28 in the same period last year[23]. - The net profit attributable to shareholders of the listed company was CNY 97,092,121.02, up 2.05% from CNY 95,146,253.77 year-on-year[23]. - The net profit after deducting non-recurring gains and losses was CNY 85,419,537.11, reflecting a 5.76% increase from CNY 80,767,554.96 in the previous year[23]. - The net cash flow from operating activities was CNY 118,348,914.02, a significant increase of 256.27% compared to a negative cash flow of CNY -75,733,277.52 in the same period last year[23]. - The basic earnings per share decreased by 8.33% to CNY 0.11 from CNY 0.12 in the same period last year[23]. - The diluted earnings per share also decreased by 8.33% to CNY 0.11 from CNY 0.12 year-on-year[23]. - The company reported a total of ¥39,000 million committed to the Shenglu Communication Intelligent Communication project, with only 2.37% of the investment completed[70]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 5,328,629,087.70, a decrease of 1.27% from CNY 5,397,280,499.11 at the end of the previous year[23]. - The net assets attributable to shareholders of the listed company increased by 28.79% to CNY 3,639,197,344.01 from CNY 2,825,677,938.42 at the end of the previous year[23]. - Cash and cash equivalents increased by 100.64% to ¥1,185,204.31, indicating improved liquidity during the reporting period[48]. - The company's current ratio is 235.69%, an increase of 10.44% compared to the previous year, while the debt-to-asset ratio decreased to 42.43%[183]. - The company's short-term borrowings rose significantly to RMB 372,000,000.00 from RMB 170,000,000.00, indicating a substantial increase of approximately 118.8%[199]. Research and Development - The company has established a professional high-tech talent team and invested heavily in 5G technology research, focusing on indoor coverage solutions for 4G/5G networks[33]. - The company has increased investment in R&D and talent acquisition in the automotive electronics sector, focusing on smart electronic equipment and intelligent in-car infotainment systems[34]. - Research and development investment increased by 22.03% to ¥67,970,791.90, reflecting the company's focus on technology advancement[48]. - The company has a total of 383 patents as of the reporting period, showcasing its strong research and development capabilities[40]. Strategic Partnerships and Market Position - The company has established strategic partnerships with major clients including China Mobile, China Unicom, and Huawei, enhancing its market position[43]. - The communication equipment segment generated ¥362,774,891.41 in revenue, accounting for 49.70% of total revenue, with a growth of 3.30%[53]. - The military electronics segment experienced a significant revenue increase of 26.48%, reaching ¥150,164,881.38, representing 20.57% of total revenue[53]. Investments and Projects - The company made a significant equity investment of ¥10,000,000 in Nanjing Shenghengda Intelligent Technology Co., acquiring a 100% stake, focusing on intelligent technology research and development[60]. - The project for high-performance microwave communication antennas has a cumulative investment progress of 104.73% as of the reporting period[70]. - The company has committed to a total investment of RMB 192,701.28 million across various projects, with a cumulative actual investment of RMB 88,047.58 million[76]. Governance and Compliance - The company is committed to optimizing its governance structure and decision-making processes to mitigate operational risks[95]. - The company did not engage in any significant related party transactions during the reporting period, reflecting a focus on independent operations[109]. - The company has not faced any penalties or rectification requirements during the reporting period, suggesting compliance with regulations[105]. Shareholder Information - The company held two shareholder meetings with participation rates of 13.19% and 28.90% respectively[98]. - The total number of shares before the recent changes was 762,110,260, with a decrease of 42,315,906 limited shares, resulting in 276,600,083 limited shares post-change, representing 30.91% of total shares[136]. - The company’s total share capital after the recent changes is 894,805,133 shares[136]. Risks and Challenges - The company faces risks related to industry policy changes, technology updates, goodwill impairment, and management challenges[90][93][95]. - The company will continue to strengthen its R&D capabilities and focus on key technologies in 5G, IoT, and defense industries[93].

Financial Performance - The company's operating revenue for 2018 was CNY 1,417,384,346.38, representing a 47.93% increase compared to CNY 958,150,739.56 in 2017[23] - The net profit attributable to shareholders of the listed company was CNY 121,131,496.67, an increase of 20.20% from CNY 100,777,429.68 in the previous year[23] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 103,627,987.61, up 32.39% from CNY 78,273,879.80 in 2017[23] - Basic and diluted earnings per share increased by 23.08% to 0.16 CNY from 0.13 CNY[26] - The weighted average return on equity rose to 4.56%, up from 4.06% year-over-year[26] - Total assets increased by 58.77% to 5,397,280,499.11 CNY compared to the end of 2017[26] - Net assets attributable to shareholders increased by 12.00% to 2,825,677,938.42 CNY from 2,522,885,937.29 CNY at the end of 2017[26] - The total profit amounted to ¥136,190,176.19, reflecting a year-on-year growth of 30.89%[48] - The company achieved a net profit of 4,467.62 million CNY for the year 2018, exceeding the forecast of 4,000 million CNY[170] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.30 per 10 shares (including tax) to all shareholders[6] - The company distributed cash dividends amounting to RMB 26,769,415.44, representing 22.10% of the net profit attributable to ordinary shareholders[132] - The cash dividend distribution is based on the total share capital as of April 25, 2019, which may change due to potential conversions of convertible bonds[135] - The total number of shares for the cash dividend distribution is based on 892,313,848 shares[135] Business Expansion and Strategy - The company has expanded its business scope to include research and development, production, and sales of automotive electronic products and IoT technology[21] - The company focuses on three main business areas: communication equipment, automotive electronics, and military industry, enhancing its strategic deployment for sustainable development[38] - The company is committed to continuous innovation in communication technology and expanding its market presence[21] - The company aims to leverage the opportunities presented by 5G commercialization, focusing on the development of multi-band, wide-band, multi-beam, intelligent, miniaturized, and customized 5G antennas[120] - The company plans to enhance its product offerings and innovate new technologies to improve the intelligence, networking, and integration of its automotive products[120] - The military industry is experiencing a recovery in orders, driven by government policies promoting deep integration of military and civilian sectors, which is expected to benefit the company significantly[120] Research and Development - The company has made significant investments in R&D, particularly in 5G and IoT technologies, enhancing its competitive edge in the market[41] - The company has invested significantly in R&D for 5G technology, leading to successful bids for projects like the narrowband IoT antenna procurement from China Mobile[48] - R&D investment amounted to ¥113,379,978.83, a slight decrease of 1.11% compared to the previous year[71] - The company has developed a proprietary intelligent electric door technology and has filed multiple invention patents, showcasing its commitment to innovation in automotive electronics[38] Acquisitions and Partnerships - The company successfully acquired Chengdu Innovation Microwave Electronics Co., enhancing its strategic position in the military sector[48] - The company acquired 100% of Chengdu Innovation Microwave Electronics Co., Ltd., which began contributing to consolidated financials from November 2018[63] - The company has established strong strategic partnerships with major clients, including three major telecom operators and automotive manufacturers[48] - The integration of Chengdu Innovation is expected to complement the company’s communication antenna business and enhance its capabilities in 5G core technologies[38] Financial Management and Risks - The net cash flow from operating activities was -11,409,370.80 CNY, a decrease of 109.23% compared to the previous year[26] - The company faces management risks due to increased complexity from acquisitions, necessitating improved integration and control measures[124] - Market competition risks are heightened by rapid advancements in IoT, AI, and 5G technologies, prompting the company to refine its marketing strategies[124] - High accounts receivable pose a risk of bad debts, which the company plans to mitigate through improved credit management and collection processes[124] - The company is monitoring goodwill from acquisitions to prevent impairment risks that could affect financial performance[127] Compliance and Governance - The company has engaged Lixin Certified Public Accountants for auditing services during the reporting period[22] - The company reported no significant discrepancies between financial reports under international and Chinese accounting standards[27][28] - The company has made commitments regarding related party transactions, ensuring compliance with market fair prices and regulations[166] - The company reported that there were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[170] Operational Efficiency - The company has implemented a comprehensive quality management system, achieving multiple certifications including ISO9001 and IATF16949, ensuring high product quality[48] - The company is committed to maintaining high standards in production and quality to enhance its brand image and improve profitability and risk resistance[123] - The company aims to strengthen internal collaboration and management systems to improve decision-making and operational efficiency[124] Market Performance - The company reported an increase in accounts receivable and inventory due to performance growth and the consolidation of Chengdu Innovation, indicating a robust business expansion[40] - The company sold 45,027,505 units in 2018, a 15.22% increase from 39,080,499.6 units in 2017[57] - Domestic sales accounted for ¥1,395,774,606.48, representing 98.48% of total revenue, with a slight increase from 97.87% in 2017[53]

Financial Performance - The company's operating revenue for Q1 2019 was CNY 404,543,670.67, representing an increase of 8.65% compared to CNY 372,341,713.11 in the same period last year[8]. - Net profit attributable to shareholders for Q1 2019 was CNY 67,347,118.24, up 11.93% from CNY 60,168,758.60 year-on-year[8]. - The net profit after deducting non-recurring gains and losses was CNY 58,827,122.53, reflecting a significant increase of 23.69% compared to CNY 47,559,078.78 in the previous year[8]. - Total operating revenue for the current period reached ¥404,543,670.67, an increase of 8.3% compared to ¥372,341,713.11 in the previous period[59]. - Net profit for the current period was ¥67,042,552.58, representing a 12.8% increase from ¥59,357,810.02 in the previous period[62]. - The total comprehensive income for the current period was 25,889,637.63, compared to 16,520,162.73 in the previous period, showing an increase of about 56.5%[72]. Cash Flow - The net cash flow from operating activities was CNY 7,336,785.46, a turnaround from a negative cash flow of CNY -94,233,276.94 in the same period last year, marking a 107.79% improvement[8]. - Cash inflows from operating activities totaled 481,738,462.21, compared to 302,641,213.43 in the previous period, marking a growth of approximately 59.2%[76]. - Cash outflows from operating activities were 474,401,676.75, compared to 396,874,490.37 in the previous period, resulting in a net cash flow from operating activities of 7,336,785.46[76]. - The cash flow from investing activities showed a net outflow of -156,311,527.77, compared to -33,790,723.19 in the previous period, indicating increased investment activity[79]. - The cash flow from financing activities resulted in a net inflow of 110,653,644.26, compared to a net outflow of -2,079,833.93 in the previous period, reflecting improved financing conditions[79]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 5,296,495,056.99, a decrease of 1.87% from CNY 5,397,280,499.11 at the end of the previous year[8]. - Total current assets decreased from $3.10 billion to $2.95 billion, a decline of approximately 3.7%[42]. - Total non-current assets increased from $2.29 billion to $2.34 billion, an increase of approximately 2.9%[42]. - Total liabilities decreased from $2.57 billion to $1.73 billion, a reduction of approximately 32.7%[45]. - Total equity increased from $2.83 billion to $3.57 billion, an increase of approximately 26.0%[48]. Shareholder Equity - The net assets attributable to shareholders increased by 26.17% to CNY 3,565,049,643.56 from CNY 2,825,677,938.42 at the end of the previous year[8]. - The total equity increased to ¥3,249,744,936.57, up from ¥2,551,830,710.04, marking a growth of 27.4%[58]. - The company reported a total equity of $2,827,431,632.56, reflecting its financial stability[89]. Expenses and Costs - Total operating costs amounted to ¥336,991,716.89, up from ¥323,719,299.14, reflecting a growth of 4.0%[59]. - Research and development expenses for the current period were ¥21,063,779.88, down 16.1% from ¥25,091,076.76 in the previous period[59]. - Interest expenses for Q1 2019 increased by 85.55% compared to Q1 2018, primarily due to increased bank loan interest expenses[24]. Investments and Acquisitions - The company successfully acquired land use rights for RMB 119.75 million, which will be used for the construction of a new production and R&D base for military communication equipment[28]. - Cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets in Q1 2019 increased by 147.01% compared to Q1 2018, mainly due to land purchases during the reporting period[24]. Financial Standards and Reporting - The company has implemented new financial instrument standards, affecting the financial statements[95]. - The company has not undergone an audit for the first quarter report[96].

广东盛路通信科技股份有限公司 2018 年第三季度报告正文 证券代码：002446 证券简称：盛路通信 公告编号：2018-067 广东盛路通信科技股份有限公司 2018 年第三季度报告正文 1 广东盛路通信科技股份有限公司 2018 年第三季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人杨华、主管会计工作负责人杨俊及会计机构负责人(会计主管人 员)向慧凤声明：保证季度报告中财务报表的真实、准确、完整。 2 广东盛路通信科技股份有限公司 2018 年第三季度报告正文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 4,625,664,709.14 | 3,399,382,366.97 | | 36.07% ...

[Important Notice, Table of Contents and Definitions](index=2&type=section&id=Item%20I.%20Important%20Notice%2C%20Table%20of%20Contents%20and%20Definitions) The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of this semi-annual report, free from false records, misleading statements, or major omissions - The company's responsible person Yang Hua, chief accountant Yang Jun, and head of accounting department Wang Qiying declare that the financial report in this semi-annual report is true, accurate, and complete[5](index=5&type=chunk) - The company's 2018 semi-annual plan does not include cash dividends, bonus shares, or capital increase from capital reserves[7](index=7&type=chunk) - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of this semi-annual report, free from false records, misleading statements, or major omissions[5](index=5&type=chunk) [Company Profile and Key Financial Indicators](index=5&type=section&id=Item%20II.%20Company%20Profile%20and%20Key%20Financial%20Indicators) [Company Profile](index=5&type=section&id=I.%20Company%20Profile) This chapter provides the company's basic information, including its stock ticker "Shenglu Communication" (code 002446), listing exchange, full Chinese and English names, and legal representative Company Profile | Item | Content | | :--- | :--- | | **Stock Abbreviation** | Shenglu Communication | | **Stock Code** | 002446 | | **Listing Exchange** | Shenzhen Stock Exchange | | **Company's Full Chinese Name** | Guangdong Shenglu Telecommunication Technology Co., Ltd | | **Legal Representative** | Yang Hua | [Key Accounting Data and Financial Indicators](index=6&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue increased by 40.29% year-on-year, but net profit attributable to shareholders grew slower at 5.48%, while net cash flow from operating activities significantly decreased by 393.77% from positive to negative, mainly due to increased material procurement for higher order volumes, and non-recurring gains and losses totaled 14.38 million RMB, primarily from government subsidies and wealth management income 2018 Semi-Annual Key Financial Indicators | Indicator | Current Reporting Period | Prior Year Period | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Operating Revenue (RMB)** | 714,350,448.28 | 509,184,511.38 | 40.29% | | **Net Profit Attributable to Shareholders of Listed Company (RMB)** | 95,146,253.77 | 90,206,720.13 | 5.48% | | **Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items) (RMB)** | 80,767,554.96 | 77,330,901.91 | 4.44% | | **Net Cash Flow from Operating Activities (RMB)** | -75,733,277.52 | 25,779,988.98 | -393.77% | | **Basic Earnings Per Share (RMB/share)** | 0.12 | 0.12 | 0.00% | | **Weighted Average Return on Net Assets** | 3.70% | 3.64% | 0.06% | | **Total Assets (RMB)** | 3,569,772,182.91 | 3,399,382,366.97 | 5.01% (Period-end vs. Prior Year-end) | | **Net Assets Attributable to Shareholders of Listed Company (RMB)** | 2,606,602,750.60 | 2,522,885,937.29 | 3.32% (Period-end vs. Prior Year-end) | - Net cash flow from operating activities significantly decreased by **393.77%** year-on-year, primarily due to increased material procurement expenditures resulting from higher order volumes during the reporting period[39](index=39&type=chunk) 2018 Semi-Annual Non-recurring Gains and Losses | Item | Amount (RMB) | | :--- | :--- | | Non-current asset disposal gains and losses | -39,971.39 | | Government grants | 13,198,742.72 | | Gains and losses from entrusted investments or asset management | 2,994,010.12 | | Other non-operating income and expenses | 890,583.90 | | **Total Non-recurring Gains and Losses** | **14,378,698.81** | [Business Overview](index=8&type=section&id=Item%20III.%20Business%20Overview) [Main Businesses During the Reporting Period](index=8&type=section&id=I.%20Main%20Businesses%20During%20the%20Reporting%20Period) The company's main businesses span three key areas: telecommunications, automotive electronics, and military-civilian integration, with a focus on 5G and IoT in telecommunications, smart electronic equipment and in-car infotainment systems in automotive electronics, and microwave hybrid integrated circuits in military-civilian integration, actively promoting the conversion of military technology to civilian applications like 5G - **Telecommunications Sector**: The company actively deploys **5G and IoT**, improving product lines such as microwave antennas and IoT base station antennas, and has established stable cooperative relationships with clients including China Unicom, China Mobile, and Huawei[26](index=26&type=chunk)[30](index=30&type=chunk) - **Automotive Electronics Sector**: Centered on its subsidiary Hezheng Electronics, products cover in-car entertainment navigation and intelligent driving assistance systems (e.g., night vision, soft-close doors, streaming media rearview mirrors), providing intelligent solutions for both vehicle manufacturers and the aftermarket[26](index=26&type=chunk)[31](index=31&type=chunk) - **Military-Civilian Integration Sector**: Subsidiary Nanjing Hengdian specializes in microwave hybrid integrated circuit products for radar and electronic countermeasures, leveraging military technology advantages to successfully develop **5G millimeter-wave active phased array antennas**, promoting dual-use technology development[27](index=27&type=chunk)[32](index=32&type=chunk) [Analysis of Core Competencies](index=9&type=section&id=III.%20Analysis%20of%20Core%20Competencies) The company's core competencies lie in its leading position and technological innovation capabilities across three major business segments: telecommunications, automotive electronics, and military-civilian integration, with significant achievements in 5G and IoT, securing Tier-1 supplier status with Dongfeng Nissan, and pioneering microwave hybrid integrated circuit technology applied to 5G millimeter-wave active phased array antennas - The company holds a leading position in the civilian telecommunications antenna and RF device business, maintaining stable relationships with clients like Huawei and China Mobile, and achieving significant innovation in **5G and IoT** fields[30](index=30&type=chunk) - Automotive electronics subsidiary Hezheng Electronics obtained **Tier-1 supplier qualification from Dongfeng Nissan** and established an advanced SMT intelligent manufacturing line, enhancing its high-end product service capabilities[31](index=31&type=chunk) - Military subsidiary Nanjing Hengdian, leveraging its microwave hybrid integrated circuit technology, successfully developed a **5G millimeter-wave active phased array antenna** which won a second prize in the MIIT 5G Application Competition, indicating broad market prospects[32](index=32&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Item%20IV.%20Management%20Discussion%20and%20Analysis) [Overview](index=10&type=section&id=I.%20Overview) In the first half of 2018, the company achieved operating revenue of 714.35 million RMB, a year-on-year increase of 40.29%, and net profit attributable to shareholders of 95.15 million RMB, up 5.48%, by focusing on three major business segments: telecommunications (IoT and 5G), automotive electronics (customer and product structure adjustment), and military (microwave integrated circuit technology), while also strengthening operational management and R&D innovation 2018 First Half Key Operating Results | Indicator | Amount (RMB) | Year-on-Year Growth | | :--- | :--- | :--- | | **Operating Revenue** | 714,350,448.28 | 40.29% | | **Operating Profit** | 109,865,956.34 | 25.25% | | **Net Profit Attributable to Parent Company** | 95,146,253.77 | 5.48% | - During the reporting period, the company focused on strategic deployment across its three major business segments, improved operational management systems, and strengthened R&D collaboration with key clients and industry-academia-research integration[35](index=35&type=chunk)[36](index=36&type=chunk) [Analysis of Main Business](index=10&type=section&id=II.%20Analysis%20of%20Main%20Business) During the reporting period, the company's main business experienced strong growth, with double-digit revenue increases across telecommunications equipment, automotive electronics, and military electronics segments, notably a **68.85% year-on-year surge in telecommunications equipment revenue**, while base station antenna revenue grew by 94.95% but DA intelligent connection system revenue significantly declined by 60.27%, and gross profit margins improved for automotive electronics but decreased for telecommunications equipment and military electronics Key Financial Data Year-on-Year Changes | Item | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | | **Operating Revenue** | 40.29% | Increase in sales orders | | **Operating Cost** | 48.23% | Increase in turnover, rise in raw material and labor costs | | **Financial Expenses** | -405.06% | Increase in loan interest expenses | | **Net Cash Flow from Operating Activities** | -393.77% | Increase in orders, leading to higher material procurement expenditures | | **Net Cash Flow from Investing Activities** | -155.51% | Increase in fixed asset investments and new investments in associates | | **Net Cash Flow from Financing Activities** | -208.62% | Repayment of bank loans and distribution of cash dividends | 2018 First Half Operating Revenue Composition (by Industry) | Industry Segment | Operating Revenue (RMB) | Proportion of Operating Revenue | Year-on-Year Change | Gross Profit Margin | Gross Profit Margin Change from Prior Year | | :--- | :--- | :--- | :--- | :--- | :--- | | **Telecommunications Equipment** | 351,177,356.13 | 49.16% | 68.85% | 25.08% | -3.68% | | **Automotive Electronics** | 235,777,096.33 | 33.01% | 22.64% | 34.91% | 7.78% | | **Military Electronics** | 118,723,521.65 | 16.62% | 28.59% | 50.71% | -14.26% | 2018 First Half Operating Revenue Composition (by Product) | Product Segment | Operating Revenue (RMB) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | | **Base Station Antennas** | 182,829,806.49 | 25.59% | 94.95% | | **Microwave Communication Antennas** | 87,163,919.85 | 12.20% | 45.76% | | **DA Intelligent Connection Systems** | 69,384,262.70 | 9.71% | -60.27% | | **Intelligent Driving Assistance Systems, etc.** | 166,392,833.63 | 23.29% | 100.00% | | **Military Electronics** | 118,723,521.65 | 16.62% | 28.59% | [Analysis of Investment Status](index=13&type=section&id=V.%20Analysis%20of%20Investment%20Status) During the reporting period, the company's investment amounted to 43.52 million RMB, a significant decrease of 68.59% year-on-year, with notable equity investments including capital increases in Nanjing Weixiang Technology and Foshan Xinlitu Information Technology, and the establishment of Hezheng Woqi Technology and Dongguan Hongcai Wire and Cable, while accumulated raised funds totaled 789 million RMB, primarily for technical transformation projects and working capital, with 21.68 million RMB invested during the reporting period - During the reporting period, the company's investment amounted to **43.52 million RMB**, a year-on-year decrease of **68.59%**[47](index=47&type=chunk) Significant Equity Investments During the Reporting Period | Investee Company | Investment Method | Investment Amount (RMB) | Shareholding Ratio | | :--- | :--- | :--- | :--- | | **Nanjing Weixiang Technology Co., Ltd.** | Capital Increase | 32,500,000.00 | 13.00% | | **Foshan Xinlitu Information Technology Co., Ltd.** | Capital Increase | 5,000,000.00 | 20.00% | | **Shenzhen Hezheng Woqi Technology Co., Ltd.** | New Establishment | 1,020,000.00 | 51.00% | | **Dongguan Hongcai Wire and Cable Co., Ltd.** | New Establishment | 5,000,000.00 | 100.00% | - As of the end of the reporting period, the company's total raised funds were **835 million RMB**, with **789 million RMB** cumulatively invested, and **21.68 million RMB** invested during the reporting period, primarily for technical transformation projects such as high-performance microwave communication antennas and mobile communication base station antennas, and to supplement working capital[56](index=56&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) [Analysis of Major Holding and Participating Companies](index=21&type=section&id=VII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) During the reporting period, key subsidiaries significantly contributed to the company's performance, with Shenzhen Hezheng Automotive Electronics Co., Ltd. and Nanjing Hengdian Electronics Co., Ltd. being the primary profit drivers, achieving net profits of 29.98 million RMB and 30.10 million RMB respectively, while Foshan Shengfu Telecommunication Equipment Co., Ltd. also reported profits, and Shenzhen Qianhai Shengyuan Investment Co., Ltd. and Guangdong Xingci Testing Technology Research Co., Ltd. incurred losses Major Subsidiary Operating Performance in 2018 First Half | Company Name | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | | **Shenzhen Hezheng Automotive Electronics Co., Ltd.** | 241,514,362.23 | 34,413,550.31 | 29,984,058.47 | | **Nanjing Hengdian Electronics Co., Ltd.** | 116,048,999.01 | 35,417,659.81 | 30,100,647.80 | | **Foshan Shengfu Telecommunication Equipment Co., Ltd.** | 34,209,010.23 | 2,071,486.91 | 1,758,501.93 | | **Shenzhen Qianhai Shengyuan Investment Co., Ltd.** | 7,041,105.91 | -3,251,018.31 | -2,293,047.03 | | **Guangdong Xingci Testing Technology Research Co., Ltd.** | 1,173,687.27 | -666,469.11 | -666,469.11 | [Forecast of Operating Performance for January-September 2018](index=22&type=section&id=IX.%20Forecast%20of%20Operating%20Performance%20for%20January-September%202018) The company expects net profit attributable to shareholders for January-September 2018 to remain stable, ranging from 108 million RMB to 128 million RMB, representing a change of -3.44% to 14.44% compared to 111.85 million RMB in the same period last year 2018 January-September Performance Forecast | Item | Forecast Data | | :--- | :--- | | **Net Profit Attributable to Parent Company Change Range** | -3.44% to 14.44% | | **Net Profit Attributable to Parent Company Change Interval (10,000 RMB)** | 10,800 to 12,800 | | **2017 Same Period Net Profit Attributable to Parent Company (10,000 RMB)** | 11,185.04 | [Risks Faced by the Company and Countermeasures](index=23&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces key risks including macroeconomic and market competition, technological obsolescence, goodwill impairment from M&A, management risks from scale expansion, and talent shortages, which it plans to address by closely monitoring the market, increasing R&D, optimizing integration, strengthening internal controls, and improving talent mechanisms - The company has identified five major risks: macroeconomic and market competition risk, technology risk, goodwill impairment risk, management risk, and talent shortage risk[69](index=69&type=chunk)[70](index=70&type=chunk) - To address technology risk, the company will increase R&D investment, ensure team stability, and continuously introduce high-end industry talent to build reserves for **5G core technologies** and IoT fields[69](index=69&type=chunk) - To mitigate goodwill impairment risk, the company will integrate acquired businesses and promote business synergy to achieve sustainable development and reduce the adverse impact of goodwill impairment on performance[70](index=70&type=chunk) [Significant Matters](index=24&type=section&id=Item%20V.%20Significant%20Matters) [Significant Related Party Transactions](index=26&type=section&id=XIII.%20Significant%20Related%20Party%20Transactions) During the reporting period, the company engaged in a significant related party transaction where its wholly-owned subsidiary, Shenzhen Qianhai Shengyuan Investment Co., Ltd., sold its 10% equity stake in Shenzhen DiDi Internet Technology Co., Ltd. to company director Guo Yiqin for 17.6 million RMB, a transaction approved by the Board of Directors and Shareholders' Meeting and completed with industrial and commercial registration changes - The company's wholly-owned subsidiary Shengyuan Investment sold its **10% equity stake in DiDi Internet** for **17.6 million RMB** (10% premium over cost) to related party director Guo Yiqin, with the transaction now completed[88](index=88&type=chunk) [Significant Contracts and Their Performance](index=27&type=section&id=XIV.%20Significant%20Contracts%20and%20Their%20Performance) During the reporting period, the company had no significant entrustment, contracting, or leasing contracts, but provided a total guarantee limit of 150 million RMB for its subsidiary Shenzhen Hezheng Automotive Electronics Co., Ltd., with an actual guarantee balance of 118 million RMB at the end of the reporting period, representing 4.53% of the company's net assets Significant Guarantees for Subsidiaries | Guaranteed Party | Approved Guarantee Limit at Period-end (10,000 RMB) | Actual Guarantee Balance at Period-end (10,000 RMB) | | :--- | :--- | :--- | | **Shenzhen Hezheng Automotive Electronics Co., Ltd.** | 15,000 | 11,800 | - The company's actual total guarantee amount accounts for **4.53%** of its net assets, and there are no guarantees provided for guaranteed parties with an asset-liability ratio exceeding 70%[93](index=93&type=chunk) [Explanation of Other Significant Matters](index=29&type=section&id=XVI.%20Explanation%20of%20Other%20Significant%20Matters) Subsequent to the reporting period, the company publicly issued 1 billion RMB in convertible corporate bonds ("Shenglu Convertible Bonds") on July 17, 2018, which began trading on August 14, and is also planning a significant cash acquisition of 100% equity in Chengdu Chuangxinda Microwave Electronics Co., Ltd. to strengthen its military sector presence, a matter still in the planning stage - The company publicly issued **1 billion RMB** in convertible corporate bonds on **July 17, 2018**, with the bond abbreviation "Shenglu Convertible Bonds" and code "128041"[97](index=97&type=chunk) - The company is planning a cash acquisition of **100% equity in Chengdu Chuangxinda Microwave Electronics Co., Ltd.** to strengthen its military business layout, with this matter currently in the planning stage[99](index=99&type=chunk) [Changes in Shareholding and Shareholder Information](index=31&type=section&id=Item%20VI.%20Changes%20in%20Shareholding%20and%20Shareholder%20Information) [Changes in Shareholding](index=31&type=section&id=I.%20Changes%20in%20Shareholding) During the reporting period, the company's total share capital remained unchanged at 762,110,260 shares, with restricted shares decreasing by 4.585 million shares and unrestricted shares increasing proportionally due to the unlocking of 25% of shares held by directors, supervisors, and senior management, and the expiration of share lock-up commitments from major asset restructuring, resulting in restricted shares accounting for 44.58% and unrestricted shares for 55.42% at period-end Changes in Shareholding | Share Type | Quantity Before Change | Increase/Decrease in This Change | Quantity After Change | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | | **Restricted Shares** | 344,363,243 | -4,585,084 | 339,778,159 | 44.58% | | **Unrestricted Shares** | 417,747,017 | +4,585,084 | 422,332,101 | 55.42% | | **Total Share Capital** | **762,110,260** | **0** | **762,110,260** | **100.00%** | - **16,358,416 shares** held by 34 natural person shareholders of Nanjing Hengdian were released from lock-up during this period due to share lock-up commitments from the 2015 major asset restructuring[106](index=106&type=chunk) [Number of Shareholders and Shareholding Information](index=32&type=section&id=II.%20Number%20of%20Shareholders%20and%20Shareholding%20Information) As of the end of the reporting period, the company had 39,883 common shareholders, with Yang Hua, Li Zairong, and He Yongxing as the top three shareholders holding 18.00%, 11.29%, and 10.91% respectively, and no related party relationships or concerted actions among the top ten shareholders, while most major shareholders' holdings were highly pledged - As of the end of the reporting period, the company had **39,883** common shareholders[109](index=109&type=chunk) Top Five Shareholders' Shareholding and Pledge Status | Shareholder Name | Shareholding Ratio | Number of Common Shares Held | Number of Pledged Shares | | :--- | :--- | :--- | :--- | | **Yang Hua** | 18.00% | 137,199,406 | 79,630,000 | | **Li Zairong** | 11.29% | 86,059,731 | 80,400,000 | | **He Yongxing** | 10.91% | 83,149,530 | 60,300,000 | | **Yang Zhenfeng** | 5.03% | 38,319,162 | 13,530,000 | | **Guo Yiqin** | 5.00% | 38,105,513 | 29,469,800 | [Information on Corporate Bonds](index=38&type=section&id=Item%20IX.%20Information%20on%20Corporate%20Bonds) [Basic Information on Corporate Bonds](index=38&type=section&id=I.%20Basic%20Information%20on%20Corporate%20Bonds) The company publicly issued 1 billion RMB in convertible corporate bonds on July 17, 2018, named "Shenglu Convertible Bonds" with code "128041" and a 6-year term, featuring a tiered coupon rate from 0.5% in the first year to 2.0% in the sixth year, and was rated AA- for long-term corporate credit and AA for bond credit by United Credit Ratings Co., Ltd., with a "stable" outlook Shenglu Convertible Bonds Basic Information | Item | Content | | :--- | :--- | | **Bond Name** | Guangdong Shenglu Telecommunication Technology Co., Ltd. Convertible Corporate Bonds | | **Bond Abbreviation** | Shenglu Convertible Bonds | | **Bond Code** | 128041 | | **Issue Date** | July 17, 2018 | | **Maturity Date** | July 16, 2024 | | **Bond Balance** | 1,000,000,000 RMB | | **Coupon Rate** | 0.5% in the first year, increasing annually to 2.0% in the sixth year | - United Credit Ratings Co., Ltd. assigned the company's long-term corporate credit rating as **AA-** with a "stable" outlook, and the convertible bond credit rating as **AA**[126](index=126&type=chunk) - At the end of the reporting period, the company's EBITDA interest coverage ratio decreased by **43.60%** compared to the same period last year, primarily due to increased loan interest expenses in the current reporting period[129](index=129&type=chunk) [Financial Report](index=42&type=section&id=Item%20X.%20Financial%20Report) [Financial Statements](index=42&type=section&id=II.%20Financial%20Statements) This chapter presents the company's unaudited 2018 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, showing total assets steadily growing to 3.57 billion RMB, total liabilities of 960 million RMB, total operating revenue of 714 million RMB, net profit of 95.01 million RMB, and net cash outflow from operating activities of 75.73 million RMB Consolidated Balance Sheet Key Items (2018-06-30) | Item | Period-end Balance (RMB) | | :--- | :--- | | **Total Assets** | 3,569,772,182.91 | | **Total Liabilities** | 959,635,527.96 | | **Total Owners' Equity Attributable to Parent Company** | 2,606,602,750.60 | | **Total Owners' Equity** | 2,610,136,654.95 | Consolidated Income Statement Key Items (2018 First Half) | Item | Current Period Amount (RMB) | | :--- | :--- | | **I. Total Operating Revenue** | 714,350,448.28 | | **III. Operating Profit** | 109,865,956.34 | | **V. Net Profit** | 95,009,534.91 | | **Net Profit Attributable to Parent Company Owners** | 95,146,253.77 | Consolidated Cash Flow Statement Key Items (2018 First Half) | Item | Current Period Amount (RMB) | | :--- | :--- | | **Net Cash Flow from Operating Activities** | -75,733,277.52 | | **Net Cash Flow from Investing Activities** | -61,092,252.28 | | **Net Cash Flow from Financing Activities** | -47,415,295.14 | | **Net Increase in Cash and Cash Equivalents** | -184,155,171.90 | [Notes to Consolidated Financial Statements](index=80&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statements) The financial statement notes detail the composition and changes of each accounting item, with accounts receivable balance of 776 million RMB at period-end (80.7% within six months) and a bad debt provision of 32.86 million RMB, inventory book value of 434 million RMB with a 18.56 million RMB impairment provision, goodwill original book value of 1.228 billion RMB (including 9.4278 million RMB impairment for Hezheng Electronics), and operating revenue primarily from telecommunications equipment, automotive electronics, and military electronics - At period-end, the book balance of accounts receivable was **776 million RMB**, with **80.7%** of it being within six months of age, and the top five accounts receivable by debtor accounted for **31.02%** of the total[275](index=275&type=chunk)[278](index=278&type=chunk)[284](index=284&type=chunk) - At period-end, the book value of inventory was **434 million RMB**, primarily composed of finished goods, goods in transit, and work-in-progress, with the company having provided a total of **18.56 million RMB** in impairment provisions for raw materials and finished goods[307](index=307&type=chunk)[308](index=308&type=chunk) - The original book value of goodwill was **1.228 billion RMB**, mainly from the acquisitions of Hezheng Electronics (**437 million RMB**) and Nanjing Hengdian (**788 million RMB**), with a **9.4278 million RMB** impairment provision recognized for Hezheng Electronics' goodwill during the reporting period, while Nanjing Hengdian's goodwill showed no impairment[344](index=344&type=chunk)[346](index=346&type=chunk)[347](index=347&type=chunk)[348](index=348&type=chunk) - Subsequent to the reporting period, in July 2018, the company sold **10%** of its available-for-sale financial asset "DiDi Internet" for **17.6 million RMB**[320](index=320&type=chunk) [Segment Information](index=123&type=section&id=1.%20Segment%20Information) The company's business is segmented by industry into telecommunications equipment, automotive electronics, and military electronics, with telecommunications equipment being the largest revenue source at 49.8% of main business revenue, followed by automotive electronics (33.4%) and military electronics (16.8%), while base station antennas and intelligent driving assistance systems are key product revenue contributors, and domestic sales overwhelmingly dominate at 98.9% 2018 First Half Main Business Revenue by Industry Segment | Industry Segment | Operating Revenue (RMB) | Operating Cost (RMB) | | :--- | :--- | :--- | | **Telecommunications Equipment** | 351,177,356.13 | 263,091,178.19 | | **Automotive Electronics** | 235,777,096.33 | 153,470,723.90 | | **Military Electronics** | 118,723,521.65 | 58,516,558.29 | | **Total** | **705,677,974.11** | **475,078,460.38** | 2018 First Half Main Business Revenue by Region Segment | Region Segment | Operating Revenue (RMB) | Operating Cost (RMB) | | :--- | :--- | :--- | | **Overseas Sales** | 7,889,646.41 | 4,154,865.08 | | **Domestic Sales** | 697,788,327.70 | 470,923,595.30 | | **Total** | **705,677,974.11** | **475,078,460.38** | [Reference Documents Catalog](index=130&type=section&id=Item%20XI.%20Reference%20Documents%20Catalog) This report's reference documents include the original semi-annual report signed by the legal representative, accounting statements signed and sealed by relevant responsible persons, and original drafts of all publicly disclosed documents and announcements during the reporting period - This report's reference documents include the original semi-annual report signed by the legal representative, accounting statements signed and sealed by relevant responsible persons, and original drafts of all publicly disclosed documents and announcements during the reporting period[487](index=487&type=chunk)