[Important Notes, Table of Contents, and Definitions](index=2&type=section&id=Item%201%20Important%20Notes%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides crucial disclaimers, lists the report's structure, and defines key terms for clarity [Important Notes](index=2&type=section&id=Important%20Notes) The Board of Directors, Supervisory Board, and senior management guarantee the report's accuracy and completeness, while the company plans no cash dividends or capital increases - The Board of Directors, Supervisory Board, and senior management guarantee the report's truthfulness, accuracy, and completeness, assuming legal responsibility[3](index=3&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This section outlines the report's eight main chapters, covering company profile, management discussion, governance, significant events, share changes, bonds, and financial statements - The report comprises eight main chapters, covering company operations, finance, and governance[6](index=6&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section defines key terms used throughout the report, including company names, related parties, institutions, laws, and the reporting period, ensuring clear understanding - Defines key entities and terms such as "the Company," "SenseTime Electronics," and "Jinan Energy Group"[10](index=10&type=chunk) - The reporting period refers to January to June 2025[10](index=10&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=Item%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides the company's basic information and presents a summary of its key financial performance and position for the reporting period [Company Profile](index=6&type=section&id=1.%20Company%20Profile) This section introduces SenseTime Electronics Technology Co., Ltd.'s fundamental details, including stock ticker, code, listing exchange, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | SenseTime Electronics | | Stock Code | 300479 | | Stock Exchange | Shenzhen Stock Exchange | | Company Chinese Name | SenseTime Electronics Technology Co., Ltd | | Legal Representative | Yan Long | [Contact Person and Information](index=6&type=section&id=2.%20Contact%20Person%20and%20Information) This section provides contact details for the company's Board Secretary, Li Hongyu, and Securities Affairs Representative, Chen Lu Contact Persons and Information | Position | Board Secretary | Securities Affairs Representative | | :--- | :--- | :--- | | Name | Li Hongyu | Chen Lu | | Contact Address | No. 699 Shunhua West Road, High-tech Zone, Jinan City, Shandong Province | No. 699 Shunhua West Road, High-tech Zone, Jinan City, Shandong Province | | Phone | 0531-88878969 | 0531-88878969 | | Fax | 0531-88878968 | 0531-88878968 | | Email | security@sdses.com | security@sdses.com | [Other Information](index=6&type=section&id=3.%20Other%20Information) The company confirms no changes in its contact information, information disclosure, or registration status during the reporting period, referring to the 2024 annual report for details - The company's registered address, office address, website, and email address remained unchanged during the reporting period[14](index=14&type=chunk) - Information disclosure and document storage locations remained unchanged during the reporting period[15](index=15&type=chunk) - The company's registration status remained unchanged during the reporting period[16](index=16&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=4.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This section presents the company's key accounting data and financial indicators for the current and prior reporting periods, showing significant revenue growth, reduced net loss, but a substantial decrease in net cash flow from operating activities Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (RMB) | Prior Year Same Period (RMB) | Change from Prior Year Same Period | | :--- | :--- | :--- | :--- | | Operating Revenue | **192.28 million** | **69.59 million** | **176.30%** | | Net Profit Attributable to Shareholders of Listed Company | **-58.82 million** | **-77.29 million** | **23.90%** | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses | **-62.23 million** | **-80.05 million** | **22.26%** | | Net Cash Flow from Operating Activities | **-356.01 million** | **-171.10 million** | **-108.07%** | | Basic Earnings Per Share (RMB/share) | **-0.2985** | **-0.3923** | **23.91%** | | Diluted Earnings Per Share (RMB/share) | **-0.2985** | **-0.3923** | **23.91%** | | Weighted Average Return on Net Assets | **-11.41%** | **-15.57%** | **4.16%** | | **End of Current Reporting Period** | **End of Prior Year** | **Change from End of Prior Year** | | | Total Assets | **1.04 billion** | **1.26 billion** | **-17.43%** | | Net Assets Attributable to Shareholders of Listed Company | **486.38 million** | **544.70 million** | **-10.71%** | [Differences in Accounting Data Under Domestic and International Accounting Standards](index=7&type=section&id=5.%20Differences%20in%20Accounting%20Data%20Under%20Domestic%20and%20International%20Accounting%20Standards) The company reports no differences in net profit and net assets between financial statements prepared under international or overseas accounting standards and Chinese accounting standards for the reporting period - The company's financial reports for the reporting period show no differences in net profit and net assets between International Accounting Standards and Chinese Accounting Standards[18](index=18&type=chunk) - The company's financial reports for the reporting period show no differences in net profit and net assets between overseas accounting standards and Chinese Accounting Standards[19](index=19&type=chunk) [Non-recurring Gains and Losses and Amounts](index=7&type=section&id=6.%20Non-recurring%20Gains%20and%20Losses%20and%20Amounts) This section details the company's non-recurring gains and losses for the reporting period, totaling **RMB 3,410,525.17**, primarily from government subsidies and minority interest impacts Non-recurring Gains and Losses and Amounts | Item | Amount (RMB) | | :--- | :--- | | Gains or losses from disposal of non-current assets (including the write-off of asset impairment provisions) | **-74,260.43** | | Government subsidies recognized in current profit or loss (excluding those closely related to the company's normal operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on the company's profit or loss) | **3,587,444.89** | | Other non-operating income and expenses apart from the above | **115,886.13** | | Impact of minority interests (after tax) | **218,545.42** | | **Total** | **3,410,525.17** | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring gains and losses[22](index=22&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Item%203%20Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the company's operations, financial performance, and strategic initiatives during the reporting period [Main Business Activities During the Reporting Period](index=9&type=section&id=1.%20Main%20Business%20Activities%20During%20the%20Reporting%20Period) The company focuses on smart city, smart energy, smart healthcare, and identity authentication, leveraging AI to drive digital transformation and achieve significant progress in these sectors - The company's business primarily focuses on smart city, smart energy, smart healthcare, and identity authentication sectors[24](index=24&type=chunk) - The company is committed to integrating AI into various industries, promoting digital transformation and the development of the digital economy[24](index=24&type=chunk) [Industry in which the Company Operates](index=9&type=section&id=(I)%20Industry%20in%20which%20the%20Company%20Operates) The company leverages industry resources and AI technology to integrate AI into smart city, smart energy, smart healthcare, and identity authentication, serving various sectors and fostering new productive forces - The company's business primarily focuses on smart city, smart energy, smart healthcare, and identity authentication sectors[24](index=24&type=chunk) - Primarily provides services to customers in smart city, energy, government, healthcare, emergency management, public security, and finance sectors[24](index=24&type=chunk) [Industry Development and Company Position](index=9&type=section&id=(II)%20Industry%20Development%20and%20Company%20Position) As a strategic industry, software and information technology services are thriving under national policies, with the company establishing a competitive edge in AI+ smart city, smart energy, smart healthcare, and identity authentication - The software and information technology service industry is a foundational, strategic, and leading industry vital to the overall national economy and social development[25](index=25&type=chunk) - In the first half of 2025, national software business revenue reached **RMB 7,058.5 billion**, a **11.9% year-on-year increase**, with total profit reaching **RMB 858.1 billion**, a **12.0% year-on-year increase**[29](index=29&type=chunk) - The company's AI products and solutions have established a comparative advantage and strong market competitiveness in smart city, smart energy, smart healthcare, and identity authentication sectors[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) [Company's Main Products and Solutions During the Reporting Period](index=12&type=section&id=(III)%20Company's%20Main%20Products%20and%20Solutions%20During%20the%20Reporting%20Period) The company's main products and solutions during the reporting period focused on AI+ smart city, smart healthcare, and identity authentication, offering platform products, intelligent terminals, information services, and comprehensive solutions - In the AI+ Smart City sector, the company launched platform products such as SenseCloud Brain, Digital Algorithm Full-Element Integrated Scheduling Platform, Holographic Data Hyper-converged Computing Platform, One-stop Full-link Sustainable Iterative AI Development Platform, and Multi-source Multi-modal Connection Platform[36](index=36&type=chunk)[37](index=37&type=chunk)[40](index=40&type=chunk)[43](index=43&type=chunk)[45](index=45&type=chunk) - In the AI+ Smart City sector, the company developed intelligent terminal applications such as Low-Altitude Autonomous Intelligent Agents and SenseTime Digital Humans[46](index=46&type=chunk)[47](index=47&type=chunk) - In the Smart Healthcare sector, the company provides full-process smart medical solutions and full-process medical insurance solutions, achieving localization of software and hardware adaptation[61](index=61&type=chunk)[62](index=62&type=chunk) - In the Identity Authentication sector, the company continues to upgrade traditional products like ID card readers and participates in the national Internet+Trusted Identity Authentication System construction[63](index=63&type=chunk) [Business Model](index=17&type=section&id=(IV)%20Business%20Model) The company operates an integrated model encompassing R&D, manufacturing, and sales, with a focus on in-house software development, combined direct and distribution sales, and 24/7 after-sales support - The company adopts an integrated business model encompassing research and development, manufacturing, and sales services[64](index=64&type=chunk) - The R&D system includes a Technology Research Institute (for key technology research) and a Product Development Center (for product design and development)[64](index=64&type=chunk) - The product system covers application software, algorithm software, cloud-to-edge platform systems, and intelligent terminals, with software products primarily developed in-house[65](index=65&type=chunk) - The sales model combines direct sales and distribution, offering 24/7 after-sales service[65](index=65&type=chunk)[66](index=66&type=chunk) [Company's Key Initiatives During the Reporting Period](index=18&type=section&id=(V)%20Company's%20Key%20Initiatives%20During%20the%20Reporting%20Period) During the reporting period, the company achieved **RMB 192.28 million** in operating revenue, a **176.30% year-on-year increase**, and narrowed its net loss, driven by significant growth in AI+ smart city and smart healthcare businesses, alongside new patents and a joint venture H1 2025 Operating Revenue and Year-on-Year Change by Business Segment | Business Segment | Operating Revenue (RMB 10,000) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | AI+ Smart City | **142.43 million** | **414.01%** | | Smart Healthcare | **32.95 million** | **84.07%** | | Identity Authentication | **12.36 million** | **-41.98%** | - The company achieved operating revenue of **RMB 192.28 million**, a **176.30% year-on-year increase**; net profit attributable to shareholders of the listed company was **-RMB 58.82 million**, reducing losses by **RMB 18.47 million** compared to the same period last year[67](index=67&type=chunk) - Added **10 new patents** and **15 computer software copyrights**; cumulatively holds **286 patents** (**136 invention patents**) and **570 software copyrights**[72](index=72&type=chunk) - Jointly established SenseTime Digital Intelligence (Shandong) Technology Co., Ltd. with a registered capital of **RMB 20 million**, with SenseTime Electronics contributing **51%**[74](index=74&type=chunk) [Analysis of Key Performance Drivers](index=19&type=section&id=(VI)%20Analysis%20of%20Key%20Performance%20Drivers) Company performance is driven by national policies (digital economy, AI), technological advancements, increasing customer demand for digital transformation in smart cities and healthcare, and new application scenarios in vertical sectors - National policy drivers: Policies such as digital economy, AI, data elements, and low-altitude economy provide strong support for the company's development[75](index=75&type=chunk) - Technology advancement drivers: Rapid development of information technologies like AI, big data, and the internet, with the company increasing AI R&D investment to upgrade products and solutions[76](index=76&type=chunk) - Customer digital transformation demand drivers: Growing demand for digital upgrades in smart city, smart energy, and smart healthcare sectors[77](index=77&type=chunk) - New scenarios and business model drivers in segmented vertical fields: Continuously exploring new business models and application scenarios in smart energy, low-altitude economy, and financial industries[78](index=78&type=chunk)[79](index=79&type=chunk) [Information Technology Construction for Industry Clients During the Reporting Period](index=20&type=section&id=(VII)%20Information%20Technology%20Construction%20for%20Industry%20Clients%20During%20the%20Reporting%20Period) The company focuses on IT construction in strategic sectors like smart city, smart energy, smart healthcare, and identity authentication, benefiting from policy support, technological advancements, and expanding AI application scenarios - The company consistently focuses on information technology construction in national strategic industries such as smart city, smart energy, emergency management, intelligent transportation, smart healthcare, public security, and financial technology[79](index=79&type=chunk) - The smart city market size is expected to further expand, showing continuous growth, especially in scenarios like traffic signal optimization and environmental monitoring[79](index=79&type=chunk) - AI technology has deeply penetrated gas leak early warning, heating pipeline dispatch, and smart lighting systems[79](index=79&type=chunk) - The successive introduction of "Internet+Healthcare" construction standards has accelerated the commercialization of applications such as intelligent AI guidance, remote consultation, and AI-assisted diagnosis[79](index=79&type=chunk) - AI application scenarios have further expanded, with AIGC technology fostering more native scenarios and innovative applications, accelerating AI penetration[80](index=80&type=chunk) [Analysis of Core Competencies](index=20&type=section&id=2.%20Analysis%20of%20Core%20Competencies) Guided by its "One Body, Two Wings" strategy, the company builds a differentiated competitive advantage through continuous R&D, early adoption of AI solutions in niche markets, leading position in identity authentication, and strong talent management - Advantage of independent R&D and continuous technological innovation: Possesses a core talent team with solid professional qualifications, rich R&D experience, and outstanding innovation capabilities, continuously increasing R&D investment to deeply integrate cutting-edge technologies into products and industry solutions[81](index=81&type=chunk)[82](index=82&type=chunk) - First-mover advantage in the application of AI products and solutions in segmented industries: Starting with identity authentication, the company pioneered AI deployment, establishing a leading edge in smart energy and smart city sectors[83](index=83&type=chunk) - Leading industry position advantage in identity authentication: Identity authentication products cover all provinces, cities, and districts in mainland China, establishing a strong customer base in finance, public security, telecommunications, human resources, and healthcare, and participating in the national Internet+Trusted Identity Authentication System construction[84](index=84&type=chunk) - Core talent and management advantage: Attracts industry talent, improves incentive mechanisms, invites AI experts to participate in technology development planning, and has a core team with rich enterprise management and IT industry experience[85](index=85&type=chunk) [Analysis of Main Business](index=21&type=section&id=3.%20Analysis%20of%20Main%20Business) Operating revenue increased by **176.30%** due to project acceptance, with AI+ smart city and smart healthcare showing strong growth, while identity authentication declined, and significant regional and industry-specific revenue shifts occurred Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (RMB) | Prior Year Same Period (RMB) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | **192.28 million** | **69.59 million** | **176.30%** | During the reporting period, some construction projects were completed and accepted, leading to increased revenue recognition | | Operating Cost | **147.97 million** | **55.35 million** | **167.31%** | During the reporting period, operating costs increased with operating revenue | | Selling Expenses | **35.74 million** | **30.22 million** | **18.30%** | During the reporting period, labor costs increased | | Administrative Expenses | **29.34 million** | **27.31 million** | **7.46%** | During the reporting period, labor costs increased | | Financial Expenses | **1.03 million** | **0.67 million** | **53.80%** | During the reporting period, interest expenses increased | | Income Tax Expense | **1.80 million** | **-0.96 million** | **286.93%** | During the reporting period, deferred income tax expenses increased | | R&D Investment | **34.36 million** | **36.47 million** | **-5.79%** | No significant change occurred | | Net Cash Flow from Operating Activities | **-356.01 million** | **-171.10 million** | **-108.07%** | During the reporting period, inventory reserves increased, and payments on behalf of the Digital Jinan project consortium increased | | Net Cash Flow from Investing Activities | **-9.67 million** | **-3.29 million** | **-194.35%** | During the reporting period, expenditures for purchasing computing servers and other fixed assets increased | | Net Cash Flow from Financing Activities | **-2.02 million** | **3.11 million** | **-165.01%** | During the reporting period, bank loans were repaid | | Net Increase in Cash and Cash Equivalents | **-367.71 million** | **-171.28 million** | **-114.68%** | During the reporting period, cash flow from operating activities decreased | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin (%) | Year-on-Year Change in Operating Revenue (%) | Year-on-Year Change in Operating Cost (%) | Year-on-Year Change in Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | AI+ Smart City Products | **142.43 million** | **111.68 million** | **21.59%** | **414.01%** | **406.41%** | **1.17%** | | Smart Healthcare Products | **32.95 million** | **21.47 million** | **34.85%** | **84.07%** | **77.65%** | **2.36%** | | Identity Authentication Products | **12.36 million** | **10.77 million** | **12.90%** | **-41.98%** | **-38.86%** | **-4.45%** | Industry Segments Accounting for Over 10% of Company's Operating Revenue or Profit | Customer Industry | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin (%) | Year-on-Year Change in Operating Revenue (%) | Year-on-Year Change in Operating Cost (%) | Year-on-Year Change in Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Energy Industry | **54.76 million** | **42.32 million** | **22.72%** | **221.64%** | **188.63%** | **8.84%** | | Financial Industry | **21.74 million** | **17.56 million** | **19.24%** | **11.01%** | **16.89%** | **-4.06%** | | Healthcare Industry | **21.83 million** | **14.41 million** | **34.01%** | **50.54%** | **44.02%** | **2.99%** | | Public Security Industry | **58.15 million** | **47.48 million** | **18.35%** | **1,111.40%** | **1,089.10%** | **1.53%** | | **By Region** | | | | | | | | East China | **119.07 million** | **101.98 million** | **14.35%** | **191.70%** | **210.29%** | **-5.13%** | | South China | **47.36 million** | **27.55 million** | **41.83%** | **1,429.20%** | **935.50%** | **27.73%** | Composition of Main Business Costs | Cost Component | Amount in Current Reporting Period (RMB) | Proportion of Operating Cost (%) | Amount in Prior Year Same Period (RMB) | Proportion of Operating Cost (%) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Raw Materials | **129.11 million** | **87.28%** | **50.30 million** | **94.15%** | **-6.87%** | | Labor and Other | **18.82 million** | **12.72%** | **3.12 million** | **5.85%** | **6.87%** | [Analysis of Non-Main Business](index=23&type=section&id=4.%20Analysis%20of%20Non-Main%20Business) Non-main business activities primarily include asset impairment, non-operating income and expenses, and credit impairment losses, with government subsidies (excluding tax refunds) being non-recurring Analysis of Non-Main Business | Item | Amount (RMB) | Proportion of Total Profit (%) | Explanation of Cause | Is it Sustainable | | :--- | :--- | :--- | :--- | :--- | | Asset Impairment | **-3.61 million** | **6.06%** | Provision for inventory depreciation and contract asset impairment based on accounting policies | Based on changes in inventory and contract assets | | Non-operating Income | **0.16 million** | **-0.27%** | Intercompany receivables income | No | | Non-operating Expenses | **0.04 million** | **-0.07%** | External donations | No | | Credit Impairment Losses | **-3.65 million** | **6.13%** | Provision for bad debt losses on receivables based on accounting policies | Based on changes in receivables | | Other Income | **5.77 million** | **-9.68%** | Government subsidies | Government subsidies other than tax refunds are not sustainable | [Analysis of Assets and Liabilities](index=23&type=section&id=5.%20Analysis%20of%20Assets%20and%20Liabilities) Total assets decreased by **17.43%** and net assets attributable to shareholders by **10.71%** year-on-year, primarily due to a significant reduction in monetary funds, while accounts receivable and inventory increased Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (RMB) | Proportion of Total Assets (%) | Amount at End of Prior Year (RMB) | Proportion of Total Assets (%) | Change in Proportion (%) | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | **103.82 million** | **9.98%** | **469.20 million** | **37.24%** | **-27.26%** | Increased cash outflow for operating activities such as goods payments during the reporting period | | Accounts Receivable | **241.02 million** | **23.17%** | **193.56 million** | **15.36%** | **7.81%** | During the reporting period, revenue increased, and accounts receivable increased as payment periods had not yet arrived | | Inventory | **287.21 million** | **27.61%** | **235.54 million** | **18.70%** | **8.91%** | During the reporting period, inventory reserves increased | | Total Assets | **1.04 billion** | **100.00%** | **1.26 billion** | **100.00%** | **-17.43%** | | | Net Assets Attributable to Shareholders of Listed Company | **486.38 million** | | **544.70 million** | | **-10.71%** | | - As of the end of the reporting period, restricted bank deposits totaled **RMB 4,618,210.20**, primarily for acceptance guarantees, letter of guarantee deposits, and judicially frozen funds[99](index=99&type=chunk) - No significant changes occurred in the measurement attributes of the company's main assets during the reporting period[98](index=98&type=chunk) [Analysis of Investment Status](index=24&type=section&id=6.%20Analysis%20of%20Investment%20Status) The company's investment amounted to **RMB 9,696,046.81**, a **194.10%** increase year-on-year, primarily for purchasing computing servers and other fixed assets, with no significant equity or non-equity investments reported Investment Amount During the Reporting Period | Indicator | Amount (RMB) | | :--- | :--- | | Investment Amount in Current Reporting Period | **9.70 million** | | Investment Amount in Prior Year Same Period | **3.30 million** | | Change Rate | **194.10%** | - Net cash flow from investing activities decreased by **194.35%**, mainly due to increased expenditures for purchasing computing servers and other fixed assets[87](index=87&type=chunk) - The company had no significant equity investments, non-equity investments, financial assets measured at fair value, use of raised funds, entrusted wealth management, derivative investments, or entrusted loans during the reporting period[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) [Significant Asset and Equity Sales](index=25&type=section&id=7.%20Significant%20Asset%20and%20Equity%20Sales) The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell any significant assets during the reporting period[105](index=105&type=chunk) - The company did not sell any significant equity during the reporting period[106](index=106&type=chunk) [Analysis of Major Holding and Participating Companies](index=25&type=section&id=8.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) This section presents financial data for key subsidiaries like SenseTime Medical, InnoMicro, SenseTime Langfang, and SenseTime Digital Intelligence, noting SenseTime Medical's **43.35%** revenue growth and the establishment of a new subsidiary with no significant impact Major Subsidiary Financial Data | Company Name | Company Type | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | SenseTime (Shandong) Medical Information Technology Co., Ltd. | Subsidiary | **50 million** | **120.48 million** | **20.42 million** | **25.91 million** | **8.10 million** | | InnoMicro Technology (Tianjin) Co., Ltd. | Subsidiary | **10 million** | **62.04 million** | **26.01 million** | **3.57 million** | **7.01 million** | | SenseTime Langfang (Fujian) Information Technology Co., Ltd. | Subsidiary | **13.01 million** | **15.61 million** | **2.26 million** | **9.03 million** | **0.28 million** | | SenseTime Digital Intelligence (Shandong) Technology Co., Ltd. | Subsidiary | **20 million** | **1.43 million** | **1.43 million** | **0.0018 million** | **-0.57 million** | - SenseTime Medical achieved operating revenue of **RMB 25.91 million**, a **43.35% increase** year-on-year, primarily due to increased project acceptance during the reporting period[108](index=108&type=chunk) - The newly established subsidiary, SenseTime Digital Intelligence (Shandong) Technology Co., Ltd., during the reporting period had no significant impact on overall production, operations, or performance[108](index=108&type=chunk) [Structured Entities Controlled by the Company](index=26&type=section&id=9.%20Structured%20Entities%20Controlled%20by%20the%20Company) The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[109](index=109&type=chunk) [Risks Faced by the Company and Countermeasures](index=26&type=section&id=10.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company addresses risks such as technological upgrades, intensified competition, talent shortages, product quality, data security, and customer payment capabilities through continuous R&D, talent strategy, focused execution, and robust risk management - Risk of technological upgrades and intensified competition: The company will continue to increase R&D investment, deepen key technology research, and systematically reserve future-oriented products, technologies, management, and talent resources[109](index=109&type=chunk) - Risk of talent support due to scale expansion: The company will further strengthen the implementation of its talent strategy, increase efforts to attract core technical talent, optimize incentive mechanisms, and prioritize the construction of a talent training system[110](index=110&type=chunk) - Risk of product quality and service deficiencies due to rapid business growth: All aspects and levels of the company must clarify their main directions, focus on key areas, form a strong core, and prioritize completing key strategic tasks on time with quality and quantity[111](index=111&type=chunk) - Product security risk: The company has established a dedicated information security working group and a professional security team, formulated a company-level product security plan, and its important business systems have passed Level 3 information security classification protection assessments[112](index=112&type=chunk) - Financial risk due to declining customer payment ability: The company will continue to improve internal controls, systematically assess project risks, prudently evaluate the funding capacity of project investors, and reasonably manage risks[113](index=113&type=chunk)[114](index=114&type=chunk) [Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period](index=27&type=section&id=11.%20Registration%20Form%20for%20Research%2C%20Communication%2C%20Interview%2C%20and%20Other%20Activities%20During%20the%20Reporting%20Period) During the reporting period, the company engaged with investors online, discussing industry development, operating performance, and product orders - On April 18 and May 15, 2025, the company hosted investors through online communication platforms[115](index=115&type=chunk) - Discussion topics included the company's industry development, operating performance, and product order status[115](index=115&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=27&type=section&id=12.%20Formulation%20and%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company has not formulated a market value management system[116](index=116&type=chunk) - The company has not disclosed a valuation enhancement plan[116](index=116&type=chunk) [Implementation of "Quality and Return Dual Enhancement" Action Plan](index=27&type=section&id=13.%20Implementation%20of%20%22Quality%20and%20Return%20Dual%20Enhancement%22%20Action%20Plan) The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan during the reporting period - The company has not disclosed an announcement regarding the "Quality and Return Dual Enhancement" action plan[116](index=116&type=chunk) [Corporate Governance, Environment, and Society](index=28&type=section&id=Item%204%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section details the company's governance structure, environmental practices, and social responsibility initiatives, including board composition, profit distribution, and stakeholder engagement [Changes in Directors, Supervisors, and Senior Management](index=28&type=section&id=1.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) There were no changes in the company's directors, supervisors, or senior management during the reporting period, with details available in the 2024 annual report - No changes occurred in the company's directors, supervisors, or senior management during the reporting period[118](index=118&type=chunk) [Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Reporting Period](index=28&type=section&id=2.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20for%20the%20Current%20Reporting%20Period) The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[119](index=119&type=chunk) [Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=28&type=section&id=3.%20Implementation%20of%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures in place or implemented during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[120](index=120&type=chunk) [Environmental Information Disclosure](index=28&type=section&id=4.%20Environmental%20Information%20Disclosure) The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[121](index=121&type=chunk) [Social Responsibility](index=28&type=section&id=5.%20Social%20Responsibility) The company operates legally, balancing economic and social benefits, upholding corporate governance, ensuring transparent investor relations, prioritizing employee well-being, protecting customer and supplier interests, and committing to environmental sustainability - The company consistently adheres to legal operations as a fundamental principle, focusing on achieving simultaneous economic and social benefits[121](index=121&type=chunk) - The company strictly adheres to laws, regulations, and CSRC requirements, continuously improving its corporate governance structure to promote standardized operations[121](index=121&type=chunk) - The company strictly adheres to relevant laws, regulations, and information disclosure management rules, ensuring truthful, accurate, timely, fair, and complete disclosure of information[122](index=122&type=chunk) - The company adheres to a "people-oriented" management philosophy, respecting and safeguarding employees' individual rights, genuinely focusing on employee health, safety, and job satisfaction, and prioritizing talent development[122](index=122&type=chunk) - The company earns customer recognition through a sustainable and independently innovative R&D team, stable and reliable product quality, rapid response to customer needs, strong delivery capabilities, and high-quality sales services[123](index=123&type=chunk) - While pursuing economic benefits, the company highly values environmental protection, consistently engaging in environmental protection, energy saving, and emission reduction, adhering to green, low-carbon, and sustainable environmental principles[123](index=123&type=chunk) [Significant Events](index=30&type=section&id=Item%205%20Significant%20Events) This section covers key corporate events, including commitment fulfillment, related party transactions, litigation, and other material matters during the reporting period [Fulfillment of Commitments](index=30&type=section&id=1.%20Fulfillment%20of%20Commitments%20by%20Actual%20Controller%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company) The company reports no commitments from its actual controller, shareholders, related parties, acquirers, or the company itself that were fulfilled or overdue during the reporting period - During the reporting period, there were no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself that were fulfilled or overdue as of the end of the reporting period[125](index=125&type=chunk) [Non-operating Fund Occupation by Controlling Shareholder and Other Related Parties](index=30&type=section&id=2.%20Non-operating%20Fund%20Occupation%20by%20Controlling%20Shareholder%20and%20Other%20Related%20Parties) The company reports no non-operating fund occupation by its controlling shareholder or other related parties during the reporting period - During the reporting period, there was no non-operating fund occupation by the listed company's controlling shareholder or other related parties[126](index=126&type=chunk) [Illegal External Guarantees](index=30&type=section&id=3.%20Illegal%20External%20Guarantees) The company reports no illegal external guarantees during the reporting period - The company had no illegal external guarantees during the reporting period[127](index=127&type=chunk) [Appointment and Dismissal of Accounting Firms](index=30&type=section&id=4.%20Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual report remains unaudited - The company's semi-annual report is unaudited[128](index=128&type=chunk)[169](index=169&type=chunk) [Explanations by the Board of Directors, Supervisory Board, and Audit Committee on the Accounting Firm's "Non-Standard Audit Report" for the Current Period](index=30&type=section&id=5.%20Explanations%20by%20the%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20and%20Audit%20Committee%20on%20the%20Accounting%20Firm's%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Current%20Period) The company reports no explanations from its Board of Directors, Supervisory Board, or Audit Committee regarding a "non-standard audit report" from the accounting firm for the current period - During the reporting period, there were no explanations from the Board of Directors, Supervisory Board, or Audit Committee regarding a "non-standard audit report" from the accounting firm for the current period[129](index=129&type=chunk) [Explanations by the Board of Directors on the "Non-Standard Audit Report" for the Prior Year](index=30&type=section&id=6.%20Explanations%20by%20the%20Board%20of%20Directors%20on%20the%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Prior%20Year) The company reports no explanations from its Board of Directors regarding a "non-standard audit report" for the prior year - During the reporting period, there were no explanations from the Board of Directors regarding a "non-standard audit report" for the prior year[129](index=129&type=chunk) [Bankruptcy and Reorganization Matters](index=30&type=section&id=7.%20Bankruptcy%20and%20Reorganization%20Matters) The company reports no bankruptcy or reorganization matters during the reporting period - The company had no bankruptcy or reorganization matters during the reporting period[129](index=129&type=chunk) [Litigation Matters](index=30&type=section&id=8.%20Litigation%20Matters) The company had no major litigation or arbitration during the reporting period, with minor contract disputes involving SenseTime Langfang resolved through judgment execution and settlement - The company had no major litigation or arbitration matters during the current reporting period[130](index=130&type=chunk) - A contract payment dispute involving SenseTime Langfang as plaintiff, with an amount of **RMB 2.67 million**, has been fully executed following judgment[131](index=131&type=chunk) - A lawsuit involving SenseTime Langfang as defendant, with an amount of **RMB 0.11 million**, has been settled, and the plaintiff has withdrawn the case[131](index=131&type=chunk) [Penalties and Rectification](index=31&type=section&id=9.%20Penalties%20and%20Rectification) The company reports no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[132](index=132&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=31&type=section&id=10.%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) The company reports no integrity issues concerning itself, its controlling shareholder, or its actual controller during the reporting period - During the reporting period, there were no integrity issues concerning the company, its controlling shareholder, or its actual controller[133](index=133&type=chunk) [Significant Related Party Transactions](index=31&type=section&id=11.%20Significant%20Related%20Party%20Transactions) The company engaged in routine operational transactions with related parties, including sales of **RMB 48.33 million** for the Digital Jinan project and a **RMB 33.77 million** smart power plant project, with no asset/equity sales or joint investments Related Party Transactions Related to Daily Operations | Related Party | Type of Related Party Transaction | Content of Related Party Transaction | Amount of Related Party Transaction (RMB 10,000) | Proportion of Similar Transactions (%) | Approved Transaction Limit (RMB 10,000) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jinan Energy Group Co., Ltd. and its controlled subsidiaries | Sales to related parties | Smart software and hardware products, etc. | **4.50 million** | **2.12%** | **240 million** | No | | Jinan Smart City Operation Service Co., Ltd. | Sales to related parties | Digital Jinan Project | **48.33 million** | **22.74%** | **815.65 million** | No | | Jinan Energy Group Co., Ltd. and its controlled subsidiaries | Purchases from related parties | Software and hardware products and engineering construction, etc. | **2.93 million** | **2.18%** | **60 million** | No | - The company won the bid for the "Smart Power Plant Construction for 2x660MW Advanced Coal-fired Unit Heating Project" from related party Jinan Thermal Power Group Co., Ltd., with a winning bid amount of **RMB 33.77 million**[140](index=140&type=chunk) - During the reporting period, the company had no related party transactions involving asset or equity acquisitions/disposals, joint external investments, or related party creditor-debtor relationships[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) [Significant Contracts and Their Performance](index=33&type=section&id=12.%20Significant%20Contracts%20and%20Their%20Performance) The company had no entrustment or contracting situations, generated **RMB 0.27 million** in rental income, provided **RMB 59 million** in joint liability guarantees to SenseTime Medical (12.13% of net assets), and continued normal performance of a **RMB 828.22 million** contract with Jinan Smart City Operation Service Co., Ltd - The company had no entrustment or contracting situations during the reporting period[142](index=142&type=chunk)[143](index=143&type=chunk) - The company's housing rental income totaled **RMB 0.27 million** in the first half of the year[144](index=144&type=chunk) Company's Guarantees for Subsidiaries | Name of Guaranteed Party | Guarantee Limit (RMB 10,000) | Actual Guarantee Amount (RMB 10,000) | Guarantee Type | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | SenseTime (Shandong) Medical Information Technology Co., Ltd. | **60 million** | **9 million** | Joint and several liability guarantee | Three years from the expiration of the debt performance period under the main contract | No | | SenseTime (Shandong) Medical Information Technology Co., Ltd. | **90 million** | **10 million** | Joint and several liability guarantee | Three years from the expiration of the debt performance period under the main contract | No | | SenseTime (Shandong) Medical Information Technology Co., Ltd. | **90 million** | **30 million** | Joint and several liability guarantee | Three years from the expiration of the debt performance period under the main contract | No | | SenseTime (Shandong) Medical Information Technology Co., Ltd. | **90 million** | **10 million** | Joint and several liability guarantee | Three years from the expiration of the debt performance period under the main contract | No | - As of the end of the reporting period, the total actual guarantee balance for subsidiaries was **RMB 59 million**, accounting for **12.13%** of the company's net assets[148](index=148&type=chunk) - A significant daily operating contract with Jinan Smart City Operation Service Co., Ltd., valued at **RMB 828.22 million**, is being performed normally, with sales revenue of **RMB 43.72 million** recognized in the current period[151](index=151&type=chunk) [Explanation of Other Significant Matters](index=35&type=section&id=13.%20Explanation%20of%20Other%20Significant%20Matters) The company reports no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[153](index=153&type=chunk) [Significant Matters of Company Subsidiaries](index=35&type=section&id=14.%20Significant%20Matters%20of%20Company%20Subsidiaries) The company reports no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[154](index=154&type=chunk) [Share Changes and Shareholder Information](index=36&type=section&id=Item%206%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital, shareholder structure, and holdings of directors, supervisors, and senior management [Share Change Situation](index=36&type=section&id=1.%20Share%20Change%20Situation) The company's total share capital remained unchanged at **197,040,865.00 shares** during the reporting period, with no changes in restricted or unrestricted shares, or in the restricted shares held by directors, supervisors, and senior management Share Change Situation | Share Type | Number Before This Change | Proportion Before This Change (%) | Increase/Decrease in This Change (Number) | Number After This Change | Proportion After This Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | **112,500** | **0.06%** | **0** | **112,500** | **0.06%** | | II. Unrestricted Shares | **196,928,365.00** | **99.94%** | **0** | **196,928,365.00** | **99.94%** | | III. Total Shares | **197,040,865.00** | **100.00%** | **0** | **197,040,865.00** | **100.00%** | Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Released in Current Period (shares) | Restricted Shares Increased in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Yan Long | **22,500** | **0** | **0** | **22,500** | Implementation of regulations on share management for directors, supervisors, and senior management | | Min Wanli | **22,500** | **0** | **0** | **22,500** | Implementation of regulations on share management for directors, supervisors, and senior management | | Ding Xin | **22,500** | **0** | **0** | **22,500** | Implementation of regulations on share management for directors, supervisors, and senior management | | Zang Xueli | **22,500** | **0** | **0** | **22,500** | Implementation of regulations on share management for directors, supervisors, and senior management | | Li Hongyu | **22,500** | **0** | **0** | **22,500** | Implementation of regulations on share management for directors, supervisors, and senior management | - The company had no share repurchase progress during the reporting period[157](index=157&type=chunk) [Securities Issuance and Listing](index=37&type=section&id=2.%20Securities%20Issuance%20and%20Listing) The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[159](index=159&type=chunk) [Number of Shareholders and Shareholding Status](index=37&type=section&id=3.%20Number%20of%20Shareholders%20and%20Shareholding%20Status) As of the reporting period end, the company had **31,517** common shareholders, with Jinan Energy Environmental Protection Technology Co., Ltd. (**11.40%**), Shandong SenseTime Technology Investment Co., Ltd. (**10.22%**), and Jinan Big Data Co., Ltd. (**5.20%**) as top shareholders, noting related party and concerted action relationships - Total number of common shareholders at the end of the reporting period: **31,517** households[160](index=160&type=chunk) Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion (%) | Number of Shares Held at End of Reporting Period (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | | Jinan Energy Environmental Protection Technology Co., Ltd. | State-owned Legal Person | **11.40%** | **22,455,912.00** | **22,455,912.00** | | Shandong SenseTime Technology Investment Co., Ltd. | Domestic Non-state-owned Legal Person | **10.22%** | **20,129,643.00** | **20,129,643.00** | | Jinan Big Data Co., Ltd. | State-owned Legal Person | **5.20%** | **10,252,872.00** | **10,252,872.00** | | Jinan Shengyue Investment Management Co., Ltd. - Jinan Jiuyue Equity Investment Fund Partnership (Limited Partnership) | Other | **4.65%** | **9,160,098.00** | **9,160,098.00** | | Wang Weiguang | Domestic Natural Person | **0.75%** | **1,476,700.00** | **1,476,700.00** | | Li Guoyong | Domestic Natural Person | **0.50%** | **983,000.00** | **983,000.00** | | Zhang Gangping | Domestic Natural Person | **0.42%** | **819,900.00** | **819,900.00** | | Liu Zhong | Domestic Natural Person | **0.30%** | **600,000.00** | **600,000.00** | | Song Jiaguo | Domestic Natural Person | **0.27%** | **527,600.00** | **527,600.00** | | Liu Li | Domestic Natural Person | **0.25%** | **502,201.00** | **502,201.00** | - Jinan Energy Environmental Protection Technology Co., Ltd. and Jinan Big Data Co., Ltd. have related party and concerted action relationships due to common control by Jinan Energy Group Co., Ltd[161](index=161&type=chunk)[162](index=162&type=chunk) - Company shareholders Li Guoyong, Zhang Gangping, Liu Zhong, Song Jiaguo, and Liu Li hold shares through ordinary securities accounts and margin trading and securities lending accounts[162](index=162&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=39&type=section&id=4.%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period, with details available in the 2024 annual report - No changes occurred in the shareholdings of the company's directors, supervisors, or senior management during the reporting period[163](index=163&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=39&type=section&id=5.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[164](index=164&type=chunk) - The company's actual controller remained unchanged during the reporting period[164](index=164&type=chunk) [Preferred Share Information](index=40&type=section&id=6.%20Preferred%20Share%20Information) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[165](index=165&type=chunk) [Bond-Related Information](index=41&type=section&id=Item%207%20Bond-Related%20Information) This section confirms that the company had no bond-related matters during the reporting period [Bond-Related Information](index=41&type=section&id=Bond-Related%20Information) The company reports no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[167](index=167&type=chunk) [Financial Report](index=42&type=section&id=Item%208%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 notes on accounting policies and financial items [Audit Report](index=42&type=section&id=1.%20Audit%20Report) The company's semi-annual financial report remains unaudited - The company's semi-annual financial report is unaudited[169](index=169&type=chunk) [Financial Statements](index=42&type=section&id=2.%20Financial%20Statements) This section includes the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, providing a comprehensive view of financial position, operating results, and cash flows - Provides consolidated balance sheets, parent company balance sheets, consolidated income statements, parent company income statements, consolidated cash flow statements, parent company cash flow statements, consolidated statements of changes in owners' equity, and parent company statements of changes in owners' equity[170](index=170&type=chunk)[174](index=174&type=chunk)[179](index=179&type=chunk)[183](index=183&type=chunk)[186](index=186&type=chunk)[188](index=188&type=chunk)[190](index=190&type=chunk)[197](index=197&type=chunk) [Company Basic Information](index=59&type=section&id=3.%20Company%20Basic%20Information) SenseTime Electronics Technology Co., Ltd., headquartered in Jinan, Shandong, with a registered capital of **RMB 197,040,865.00**, listed on the Shenzhen Stock Exchange in 2015, specializes in software and information technology services, focusing on smart city, smart energy, smart healthcare, and identity authentication solutions - The company's registered capital is **RMB 197,040,865.00**, with a total of **197,040,865.00 shares**[203](index=203&type=chunk) - The company's shares were listed and traded on the Shenzhen Stock Exchange on June 12, 2015[204](index=204&type=chunk) - The company operates in the software and information technology service industry, with its main business focusing on product sales and AI solutions in smart city, smart energy, smart healthcare, and identity authentication sectors[204](index=204&type=chunk) [Basis of Financial Statement Preparation](index=60&type=section&id=4.%20Basis%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 from the reporting period end - The company's financial statements are prepared on a going concern basis[205](index=205&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 next 12 months from the end of the reporting period[206](index=206&type=chunk) [Significant Accounting Policies and Estimates](index=60&type=section&id=5.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's significant accounting policies and estimates for financial statement preparation, covering areas like financial instrument impairment, inventory, fixed assets, revenue recognition, and government subsidies, all in compliance with enterprise accounting standards - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, truthfully and completely reflecting the company's financial position, operating results, and cash flows[208](index=208&type=chunk) - The accounting year runs from January 1 to December 31 of the Gregorian calendar; the company's operating cycle is short, using 12 months as the liquidity classification standard for assets and liabilities[209](index=209&type=chunk)[210](index=210&type=chunk) - RMB is adopted as the functional currency[211](index=211&type=chunk) - Detailed explanations are provided for accounting methods and estimates for financial instruments, notes receivable, accounts receivable, other receivables, contract assets, inventory, long-term equity investments, fixed assets, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee compensation, provisions, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases[219](index=219&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)[230](index=230&type=chunk)[233](index=233&type=chunk)[236](index=236&type=chunk)[237](index=237&type=chunk)[242](index=242&type=chunk)[244](index=244&type=chunk)[245](index=245&type=chunk)[249](index=249&type=chunk)[250](index=250&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk)[260](index=260&type=chunk)[262](index=262&type=chunk)[264](index=264&type=chunk)[267](index=267&type=chunk) - No significant changes occurred in the company's accounting policies and estimates[272](index=272&type=chunk) [Taxation](index=75&type=section&id=6.%20Taxation) This section outlines the company's main tax categories and rates, including VAT, urban maintenance and construction tax, and corporate income tax, highlighting various tax incentives and **RMB 2,181,144.52** in software VAT refunds received during the reporting period Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Output tax calculated based on sales of goods and taxable services as per tax law, with the difference after deducting current deductible input tax being the VAT payable | **13%**, **9%**, **6%** | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | **7%** | | Corporate Income Tax | Taxable income | **15%**, **20%** | | Education Surcharge | Actual amount of turnover tax paid | **3%** | | Local Education Surcharge | Actual amount of turnover tax paid | **2%** | - SenseTime Electronics Technology Co., Ltd., SenseTime (Shandong) Medical Information Technology Co., Ltd., and InnoMicro Technology (Tianjin) Co., Ltd. enjoy a **15%** preferential corporate income tax rate as high-tech enterprises[276](index=276&type=chunk) - SenseTime Langfang (Fujian) Information Technology Co., Ltd., SenseTime Computer Vision Technology (Jinan) Co., Ltd., SenseTime Computer Vision Technology (Guiyang) Co., Ltd., and SenseTime Intelligent Technology Co., Ltd. meet the criteria for small and micro-profit enterprises and enjoy preferential income tax policies[277](index=277&type=chunk) - During the reporting period, the company received **RMB 2,181,144.52** in software VAT refunds[278](index=278&type=chunk) [Notes to Consolidated Financial Statement Items](index=77&type=section&id=7.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes on consolidated financial statement items, including assets, liabilities, equity, and income statement accounts, offering insights into the company's financial position and performance - Monetary funds at period-end totaled **RMB 103,818,737.81**, including **RMB 4,618,210.20** in restricted funds[280](index=280&type=chunk) - Accounts receivable book value at period-end was **RMB 241,018,433.08**, with a bad debt provision ratio of **21.74%**[294](index=294&type=chunk) - Inventory book value at period-end was **RMB 287,206,259.73**, with an inventory impairment provision of **RMB 32,957,475.29**[336](index=336&type=chunk)[338](index=338&type=chunk) - Total assets at period-end were **RMB 1,040,256,465.22**, with total liabilities of **RMB 543,957,388.56**[173](index=173&type=chunk) - Current period operating revenue was **RMB 192,284,428.78**, and operating cost was **RMB 147,968,977.39**[409](index=409&type=chunk) - Current period net profit was **-RMB 61,370,103.98**, with net profit attributable to parent company shareholders of **-RMB 58,818,187.88**[181](index=181&type=chunk) - Net cash flow from operating activities was **-RMB 356,009,932.10**[186](index=186&type=chunk) [R&D Expenses](index=110&type=section&id=8.%20R%26D%20Expenses) Total R&D expenses for the reporting period amounted to **RMB 35,544,635.96**, all expensed, primarily comprising employee compensation, depreciation, amortization, and development design fees Composition of R&D Expenses | Item | Amount in Current Period (RMB) | Amount in Prior Period (RMB) | | :--- | :--- | :--- | | Employee Compensation | **24.73 million** | **29.57 million** | | Material Costs | **0.35 million** | **0.23 million** | | Depreciation and Amortization | **6.51 million** | **4.32 million** | | Development and Design Fees | **2.13 million** | **2.65 million** | | Technical Service Fees | **0.42 million** | **0.09 million** | | Other | **1.40 million** | **1.50 million** | | **Total** | **35.54 million** | **38.36 million** | - All R&D expenses were expensed[450](index=450&type=chunk) [Changes in Consolidation Scope](index=110&type=section&id=9.%20Changes%20in%20Consolidation%20Scope) The consolidation scope changed due to the new investment and control of subsidiary SenseTime Digital Intelligence (Shandong) Technology Co., Ltd. during the current period - Newly invested in and gained control of subsidiary SenseTime Digital Intelligence (Shandong) Technology Co., Ltd. in the current period[451](index=451&type=chunk) [Interests in Other Entities](index=111&type=section&id=10.%20Interests%20in%20Other%20Entities) This section discloses the company's equity interests in subsidiaries, including SenseTime Medical, InnoMicro, and SenseTime Langfang, highlighting key non-wholly owned subsidiaries and their financial information, along with aggregated financial data for immaterial joint ventures and associates - The company holds **100%** equity in SenseTime (Shandong) Medical Information Technology Co., Ltd., **66.20%** in InnoMicro Technology (Tianjin) Co., Ltd., **66.00%** in SenseTime Langfang (Fujian) Information Technology Co., Ltd., and **51.00%** in SenseTime Digital Intelligence (Shandong) Technology Co., Ltd., among others[453](index=453&type=chunk) - InnoMicro Technology (Tianjin) Co., Ltd. and SenseTime Langfang (Fujian) Information Technology Co., Ltd. are significant non-wholly owned subsidiaries[455](index=455&type=chunk) - InnoMicro Technology (Tianjin) Co., Ltd. has a minority shareholder stake of

Core Insights - The company is actively researching and exploring advanced technologies in artificial intelligence and big data, leveraging its strong customer base and industry knowledge to address pain points in various sectors [1] - The company is focusing on the low-altitude economy, launching autonomous intelligent systems with high computing power and long-distance self-organizing network capabilities, emphasizing core functions such as intelligent measurement, computation, flight, and management [1] - The company's solutions have been applied in fields such as forest fire prevention and smart inspection, with plans to continue product development and expand into more application scenarios [1] Summary by Categories - **Technology Development** - The company is committed to continuous research in AI and big data, establishing a comprehensive industry solution system to adapt to market and customer needs [1] - **Market Positioning** - The company has a solid foundation in understanding industry demands, which allows it to maintain a technological edge in vertical scenarios [1] - **Product Innovation** - The company has introduced autonomous intelligent systems designed for low-altitude applications, integrating multi-dimensional perception and AI algorithms for reliable decision-making [1] - **Application Areas** - Current applications include forest fire prevention and smart inspection, with ongoing efforts to broaden the range of use cases for its products [1]

Group 1 - The core viewpoint of the article highlights that ShenSi Electronics is focusing on developing a cloud service platform named ShenSi Cloud Brain, primarily targeting industry clients [1] - The company's neural network technology has been applied in various scenarios including smart cities, smart energy, and low-altitude economy [1] - ShenSi Electronics is committed to continuously upgrading its core AI technologies such as intelligent video analysis, natural language processing with large models, and operational optimization to provide intelligent products and industry solutions for its clients [1]

Core Viewpoint - The company is actively exploring new business models under the digital RMB ecosystem, although its current revenue from digital RMB operations is relatively small and does not significantly impact overall performance [1] Group 1: Business Operations - The company's products have provided services in various sectors including energy, healthcare, public transportation, and catering [1] - The company aims to follow industry developments and continuously explore new business opportunities [1] Group 2: Financial Impact - As of now, the revenue share from the digital RMB business is minor and will not have a major effect on the company's operating performance [1]

Core Viewpoint - The company is exploring new business models under the digital RMB ecosystem, although its current revenue from digital RMB operations is relatively small and does not significantly impact overall performance [1]. Group 1: Business Development - The company has provided services in various sectors including energy, healthcare, public transportation, and catering [1]. - The company is committed to following industry developments and continuously exploring opportunities in the digital economy and digital currency space [1]. Group 2: Financial Impact - As of now, the revenue contribution from the digital RMB business is minor and will not have a major effect on the company's overall financial performance [1].

市大数据局党组书记、局长张熙在致辞中指出，作为全国唯一一个国家人工智能创新应用先导区、国家 新一代人工智能创新发展试验区和国家数据要素综合试验区核心区"三区叠加"的数智化转型标杆城市， 济南聚焦打造全国AI领先城市。他强调，济南市人工智能产业联盟的成立绝非简单的组织整合，更是 发展模式的深度升级。它将推动"创新链、产业链、资金链、人才链"深度融合，实现从"单兵突 进"到"联盟作战"，从"单点突破"到"生态协同"的跨越，为济南高质量发展注入强劲动能。 活动现场，济南大数据集团发布城市可信数据空间场景共建招募计划，神思电子推介AI虚拟组织产 品，中国电子云作人工智能探索实践主题演讲。活动中，济南大数据集团、神思电子与山东大学就AI 赋能未来农业领域达成合作。作为联盟成立后首个落地的跨领域协同项目，三方将充分发挥各自在技 术、资源、科研领域的优势，共同推进人工智能技术与实体经济创新融合发展。 齐鲁晚报·齐鲁壹点记者 于民星 8月14日，"风起AI 泉涌未来"——济南AI创新生态大会暨人工智能产业联盟成立仪式在数字济南体验馆· 数创泉城发布厅成功举办。 0:00 / 0:31 济南市人工智能产业联盟在市大数据局指导下 ...

Group 1 - The company, ShenSi Electronics, showcased multiple AI innovations at the 2025 World Artificial Intelligence Conference held in Shanghai [1] - The company aims to continue deepening its involvement in the AI sector and collaborate with upstream and downstream partners to explore the limitless possibilities of the intelligent era [1] - The company is driven by technological innovation and oriented towards application scenarios, contributing new momentum to the development of the digital economy [1]

Core Viewpoint - The company, ShenSi Electronics, is focusing on its "one body, two wings" development strategy, emphasizing its commitment to smart city, smart energy, smart healthcare, and identity authentication sectors [1] Group 1: Business Focus - The company is leveraging AI capabilities such as deep learning, natural language processing, computer vision, knowledge graphs, large models, and operational optimization to enhance product intelligence [1] - The company is actively promoting innovation and application of artificial intelligence technologies [1] Group 2: Strategic Direction - The company will closely monitor the development of relevant technologies and applications in the industry [1]

公司回答表示：感谢您的关注！公司围绕"一体两翼"发展战略，业务聚焦智慧城市、智慧能源、智慧医 疗和身份认证等领域，公司将利用深度学习、自然语言处理、计算机视觉、知识图谱、大模型、运筹优 化等AI能力融合优势行业的数据资源，赋能产品的智能化升级。公司积极推进人工智能技术创新及应 用，将密切关注相关技术及应用的发展。责任编辑：栎树 金融界8月7日消息，有投资者在互动平台向神思电子提问：公司在物理ai方面有些什么技术。 ...

Core Viewpoint - The company emphasizes its focus on smart city, smart energy, smart healthcare, and identity verification sectors, aligning its business strategy with national policies and industry opportunities to enhance profitability and product competitiveness [1] Group 1 - The company received an inquiry regarding the impact of the Central City Work Conference held on July 14-15 on its business and future development [1] - The company expresses gratitude for the interest shown by investors and highlights its commitment to responding to national policies [1] - The company aims to continuously improve its operational management foundation to create better value for customers and shareholders [1]