Core Viewpoint - The company has demonstrated significant growth in revenue and net profit in the first half of 2025, driven by its non-degree training business, which is expanding rapidly and contributing to overall performance improvement [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 1.724 billion yuan, a year-on-year increase of 14.50% [1]. - The net profit attributable to shareholders reached 213 million yuan, reflecting a substantial year-on-year growth of 75.09% [1]. - Earnings per share (EPS) stood at 1.08 yuan, up 24.18% compared to the previous year [1]. Group 2: Business Growth and Structure - The non-degree training business accounted for 99.19% of total revenue in the first half of 2025, indicating a strong focus on this segment [2]. - The company operates over 1,000 stores and employs 3,250 full-time teachers, with more than 700 subsidiaries engaged in training, serving over 270,000 students [1]. Group 3: Profitability and Cost Management - The company's gross margin improved to 59.11%, an increase of 2.57 percentage points year-on-year, with the non-degree training business gross margin at 59.79% [2]. - Operating expenses as a percentage of revenue decreased to 44.38%, down 3.98 percentage points year-on-year [2]. - The net profit margin rose to 12.35%, reflecting an increase of 4.28 percentage points year-on-year [2]. Group 4: Financial Health - As of June 2025, the company's total assets and total liabilities were 2.464 billion yuan and 2.045 billion yuan, respectively, with a debt-to-asset ratio of 83.00%, down 1.58 percentage points from the beginning of the year [2]. - The cash flow remains strong, although the cash collection ratio decreased to 111.63%, down 23.54 percentage points year-on-year [3]. Group 5: Investment and Future Outlook - The company has significantly increased its R&D investment, with expenses reaching 91 million yuan, a 302% increase year-on-year, focusing on AI applications in education [3]. - Contract liabilities grew to 903 million yuan, up 18.97% year-on-year, enhancing revenue certainty and supporting growth [3]. - Revenue projections for 2025-2027 are 3.328 billion yuan, 4.160 billion yuan, and 4.784 billion yuan, with corresponding EPS estimates of 1.64 yuan, 2.05 yuan, and 2.81 yuan [3].

Core Viewpoint - The financial performance of Huatu Shanding (300492) shows significant growth in revenue and net profit for the first half of 2025, indicating improved profitability and operational efficiency [1] Financial Performance - The total revenue for the first half of 2025 reached 1.724 billion yuan, a year-on-year increase of 14.5% [1] - The net profit attributable to shareholders was 213 million yuan, reflecting a substantial year-on-year increase of 75.09% [1] - In Q2 2025, the revenue was 897 million yuan, up 10.71% year-on-year, while the net profit for the quarter was 91.46 million yuan, an increase of 86.5% year-on-year [1] - The gross margin improved by 4.54% to 59.11%, and the net margin increased by 52.92% to 12.35% [1] - Total selling, administrative, and financial expenses amounted to 674 million yuan, accounting for 39.09% of revenue, a decrease of 16.57% year-on-year [1] - Earnings per share rose to 1.08 yuan, a year-on-year increase of 24.14% [1] Business Evaluation - The company's return on invested capital (ROIC) for the previous year was 10.25%, indicating average capital returns [2] - The net profit margin for the previous year was 1.87%, suggesting low added value for products or services [2] - Historical data shows a median ROIC of 7.08% since the company went public, with a notably poor ROIC of -19.75% in 2023 [2] - The business model relies heavily on research and marketing, necessitating further investigation into these driving factors [2] Fund Holdings - The largest fund holding Huatu Shanding is the Huaxia Industry Prosperity Mixed Fund, with 2.8785 million shares and a recent increase in holdings [3] - Other funds that have increased or initiated positions include Changxin Quantitative Small and Medium Cap Stock A and Huaxia CSI Selected 1000 Growth Innovation Strategy ETF [3] - The Huaxia Industry Prosperity Mixed Fund has a total scale of 7.261 billion yuan and has seen a 89.39% increase in value over the past year [3]

Group 1 - The company Huatu Shanding (SZ 300492) reported a revenue of approximately 1.724 billion yuan for the first half of 2025, representing a year-on-year increase of 14.5% [1] - The net profit attributable to shareholders of the listed company was approximately 213 million yuan, showing a significant year-on-year increase of 75.09% [1] - The basic earnings per share reached 1.08 yuan, which is a year-on-year increase of 24.14% [1]

Core Viewpoint - Huatu Shanding (300492.SZ) reported a significant increase in both revenue and net profit for the first half of 2025, indicating strong financial performance and growth potential [1] Financial Performance - The company's operating revenue reached 1.724 billion yuan, representing a year-on-year growth of 14.50% [1] - The net profit attributable to shareholders was 213 million yuan, showing a substantial year-on-year increase of 75.09% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 202 million yuan, reflecting a remarkable year-on-year growth of 105.10% [1] - Basic earnings per share stood at 1.08 yuan [1]

Core Viewpoint - Huatu Shanding (300492.SZ) reported a significant increase in both revenue and net profit for the first half of 2025, indicating strong financial performance and growth potential [1] Financial Performance - The company's operating revenue reached 1.724 billion yuan, representing a year-on-year growth of 14.50% [1] - The net profit attributable to shareholders was 213 million yuan, showing a substantial year-on-year increase of 75.09% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 202 million yuan, reflecting a remarkable year-on-year growth of 105.10% [1] - Basic earnings per share stood at 1.08 yuan [1]

特此公告。 华图山鼎设计股份有限公司 华图山鼎设计股份有限公司 2025 年半年度报告披露提示性公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚 假记载、误导性陈述或重大遗漏。 华图山鼎设计股份有限公司（以下简称"公司"）于 2025 年 8 月 28 日召 开第五届董事会第五次会议、第五届监事会第五次会议，审议通过了《关于<2025 年半年度报告及其摘要>的议案》。为使投资者全面了解公司的经营情况、财务状 况及未来发展规划，公司《2025 年半年度报告》、《2025 年半年度报告摘要》于 2025 年 8 月 29 日在巨潮资讯网（www.cninfo.com.cn）披露。敬请投资者注意 查阅。 证券代码：300492 证券简称：华图山鼎 公告编号：2025-057 董事会 2025 年 8 月 29 日 ...

1、股东大会届次：2025 年第二次临时股东大会 证券代码：300492 证券简称：华图山鼎 公告编号：2025-061 华图山鼎设计股份有限公司 关于召开 2025 年第二次临时股东大会通知的公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假 记载、误导性陈述或重大遗漏。 华图山鼎设计股份有限公司第五届董事会第五次会议决定于 2025 年 9 月 19 日（星期五）召开公司 2025 年第二次临时股东大会，现将会议有关安排通知如 下： 一、召开会议的基本情况 2、股东大会的召集人：公司董事会。公司第五届董事会第五次会议审议并 通过了《关于召开 2025 年第二次临时股东大会的议案》，同意召开本次股东大会。 3、会议召开的合法、合规性：公司 2025 年第二次临时股东大会会议的召开 符合有关法律、行政法规、部门规章、规范性文件和公司章程的规定。 4、会议召开的日期、时间： （1）现场会议时间：2025 年 9 月 19 日（星期五）14:00 （2）网络投票时间：2025 年 9 月 19 日 其中，通过深圳证券交易所交易系统进行网络投票的具体时间为：2025 年 9 月 19 日交易时 ...

证券代码：300492 证券简称：华图山鼎 公告编号：2025-056 华图山鼎设计股份有限公司 第五届监事会第五次会议决议公告 本公司及监事会全体成员保证信息披露的内容真实、准确、完整，没有虚 假记载、误导性陈述或重大遗漏。 一、监事会会议召开情况 具体内容详见公司同日刊登于巨潮资讯网(www.cninfo.com.cn)上的《2025 年半年度报告》及《2025 年半年度报告摘要》。 表决结果：7 票同意，0 票反对，0 票弃权，本议案获得表决通过。 2、审议《关于补充确认关联交易的议案》 1、华图山鼎设计股份有限公司（以下简称"公司"）第五届监事会第五次 会议于 2025 年 8 月 18 日以邮件的方式通知全体监事，于 2025 年 8 月 25 日以邮 件方式发出增加临时议案通知。 2、会议于 2025 年 8 月 28 日 11：00 以现场表决与通讯表决相结合的方式在 公司会议室召开。 3、本次监事会议应出席监事 7 名，实际出席监事 7 名，会议由张金国主持， 公司高级管理人员列席了会议。 4、本次会议的召开符合有关法律、行政法规、部门规章、规范性文件和公 司章程的规定。 二、监事会会议审议情 ...

证券代码：300492 证券简称：华图山鼎 公告编号：2025-055 华图山鼎设计股份有限公司 第五届董事会第五次会议决议公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚 假记载、误导性陈述或重大遗漏。 表决结果：11 票同意，0 票反对，0 票弃权，本议案获得表决通过。 2、审议通过《关于补充确认关联交易的议案》 一、董事会会议召开情况 1、华图山鼎设计股份有限公司（以下简称"公司"）第五届董事会第五次 会议通知于 2025 年 8 月 18 日以邮件的方式通知全体董事，于 2025 年 8 月 25 日以邮件方式发出增加临时议案通知，会议通知中包括会议的相关材料，同时列 明了会议的召开时间、地点、内容和方式。 2、会议于 2025 年 8 月 28 日 10:00 以现场表决与通讯表决相结合的方式在 公司会议室召开。 3、本次会议应出席董事 11 名，实际出席董事 11 名。会议由董事长吴正杲 先生主持，公司监事、高级管理人员列席了会议。 4、本次会议的召开符合有关法律、行政法规、部门规章、规范性文件和公 司章程的规定。 二、董事会会议审议情况 1、审议通过《关于<2025 年半年 ...

Section 1: Important Notice, Table of Contents, and Definitions [Important Notice](index=2&type=section&id=Important%20Notice) The Board of Directors guarantees the authenticity, accuracy, and completeness of the report and assumes legal responsibility, with no planned interim dividend distribution - The company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the report and assume legal responsibility[3](index=3&type=chunk) - The company's legal representative Yi Xiaoying, chief accountant Yi Xiaoying, and head of the accounting department Zheng Tianxiang declare the financial reports to be true, accurate, and complete[3](index=3&type=chunk) - The company does not plan to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) The report's table of contents lists eight main sections covering key corporate, operational, and financial information - The report includes eight main sections, ranging from company profile to financial reports[7](index=7&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section defines key terms used in the report, including company names, industry-specific terminology, and the reporting period - Defines company-related names such as "the Company" and "Huatu Shanding"[13](index=13&type=chunk) - Explains industry terms such as BIM (Building Information Modeling), public buildings, and urban complexes[13](index=13&type=chunk) - Clarifies the reporting period as January 1, 2025, to June 30, 2025[13](index=13&type=chunk) Section 2: Company Profile and Key Financial Indicators [Company Profile](index=6&type=section&id=Company%20Profile) Huatu Shanding Design Co, Ltd (stock code: 300492) is listed on the Shenzhen Stock Exchange with no changes to its contact or registration information - The company's stock short name is "Huatu Shanding," stock code "300492," listed on the Shenzhen Stock Exchange[16](index=16&type=chunk) - The legal representative is Yi Xiaoying[16](index=16&type=chunk) - The company's contact information, registered address, and information disclosure locations remained unchanged during the reporting period[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) The company's revenue and net profit grew significantly in H1 2025, though operating cash flow declined 2025 Interim Key Financial Data | Indicator | Current Period (RMB) | Prior Year Period (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,724,337,161.38 | 1,506,029,916.73 | 14.50% | | Net Profit Attributable to Shareholders | 212,909,471.77 | 121,598,854.53 | 75.09% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 202,018,636.61 | 98,497,122.86 | 105.10% | | Net Cash Flow from Operating Activities | 488,921,256.67 | 733,569,424.17 | -33.35% | | Basic Earnings Per Share (RMB/share) | 1.08 | 0.87 | 24.14% | | Diluted Earnings Per Share (RMB/share) | 1.08 | 0.87 | 24.14% | | Weighted Average Return on Equity | 57.59% | 44.97% | 12.62% | | **Period-End Data:** | | | | | Total Assets (RMB) | 2,464,228,258.67 | 1,866,997,188.81 | 31.99% | | Net Assets Attributable to Shareholders (RMB) | 418,847,145.21 | 287,974,452.85 | 45.45% | - There are no discrepancies in net profit or net assets between financial reports prepared under IFRS and Chinese Accounting Standards[22](index=22&type=chunk)[23](index=23&type=chunk) [Non-recurring Profit and Loss Items and Amounts](index=7&type=section&id=Non-recurring%20Profit%20and%20Loss%20Items%20and%20Amounts) Non-recurring profit and loss totaled RMB 10.89 million, primarily from asset disposals, government grants, and fair value changes Non-recurring Profit and Loss Items and Amounts | Item | Amount (RMB) | Description | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 7,114,125.20 | Mainly gains from disposal of right-of-use assets | | Government Grants Recognized in Current Profit or Loss | 942,552.75 | | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets/Liabilities | 4,547,873.31 | Interest income from structured deposits | | Reversal of Impairment Provision for Individually Tested Receivables | 1,278,361.88 | | | Other Non-operating Income and Expenses | -1,866,895.57 | | | Non-recurring Related-Party Transactions | 1,586,207.66 | From entrusted delivery of existing orders by related party Huatu Hongyang | | Less: Income Tax Impact | 2,711,390.07 | | | **Total** | **10,890,835.16** | | - The company has not classified any non-recurring profit and loss items as recurring[27](index=27&type=chunk) Section 3: Management Discussion and Analysis [Principal Business Activities During the Reporting Period](index=9&type=section&id=Principal%20Business%20Activities%20During%20the%20Reporting%20Period) The company's main businesses are architectural design and non-academic vocational training, with the latter contributing 99.19% of total revenue - The company's businesses include architectural engineering design, related consulting services, and non-academic vocational training[29](index=29&type=chunk) - **Non-academic training business revenue reached RMB 1.71 billion**, accounting for **99.19% of total revenue**[29](index=29&type=chunk) - The company's core strategy is high-quality development, structured around a "one body, two wings, one driver" framework emphasizing quality products, scientific management, technological innovation, and a collective ownership mechanism[32](index=32&type=chunk) [Principal Business Activities](index=9&type=section&id=Principal%20Business%20Activities) The company provides comprehensive architectural design services and non-academic training for civil service and other professional qualification exams - Architectural engineering design business provides full-process services for residential, urban complex, and public building projects, holding a Grade-A design qualification[30](index=30&type=chunk) - Non-academic training, operated by Huatu Education Technology, covers recruitment exam preparation for civil service, public institutions, healthcare, and education sectors[31](index=31&type=chunk) - Key non-academic training products include "Kaobian Zhītōngchē" (cost leadership) and "Shūyuàn Péiyōu" (value innovation) using big data and AI for personalized tutoring[31](index=31&type=chunk) [Industry Development](index=10&type=section&id=Industry%20Development) The architectural design sector faces a downturn, while the non-academic training industry is poised for growth driven by favorable policies and rising demand Architectural Engineering Design Industry Data (Y-o-Y Decline for Jan-Jun) | Indicator | Y-o-Y Decline | | :--- | :--- | | National Real Estate Development Investment | 11.2% | | Residential Investment | 10.4% | | Building Construction Area | 9.1% | | New Building Starts Area | 20.0% | | Building Completion Area | 14.8% | - National policies promoting employment and expanding grassroots-level positions are driving demand for vocational training[37](index=37&type=chunk) - The revised Vocational Education Law positions vocational education as equally important as general education, with the market expected to exceed **RMB 900 billion in 2024** and grow at a **15% CAGR from 2025-2030**[38](index=38&type=chunk)[39](index=39&type=chunk) - Demand for recruitment exam training is expanding, with **3.23 million applicants** for the 2025 national civil service exam and relaxed age limits boosting the market[40](index=40&type=chunk) [Core Competitiveness Analysis](index=11&type=section&id=Core%20Competitiveness%20Analysis) The company's core strengths lie in its comprehensive architectural design capabilities and a highly competitive non-academic training business driven by technology and standardized services - The company possesses comprehensive design capabilities, leading BIM integration, and strong project management in the architectural sector, actively adopting new technologies[41](index=41&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) - The non-academic training business leverages standardized store services, a dedicated teacher team, AI applications, and a dual-product strategy to enhance quality, efficiency, and market position[48](index=48&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) [Architectural Engineering Design and Related Consulting Services](index=11&type=section&id=Architectural%20Engineering%20Design%20and%20Related%20Consulting%20Services) The company offers full-lifecycle architectural design services with strengths in creative solutions, advanced BIM technology, and integrated project management - Provides comprehensive architectural design services for residential, urban complex, and public buildings, with a specialty in creative schematic design[41](index=41&type=chunk) - **Industry-leading BIM capabilities** enable precise, visualized project management through multi-dimensional modeling and intelligent simulation, enhancing design quality and collaboration[45](index=45&type=chunk) - Possesses comprehensive design management capabilities to coordinate resources and undertake design-build projects, offering integrated services[46](index=46&type=chunk) - Actively tracks and applies new technologies such as prefabricated construction, green buildings, smart buildings, and VR scene rendering[47](index=47&type=chunk) [Non-academic Training Business](index=12&type=section&id=Non-academic%20Training%20Business) The non-academic training business builds its competitive edge through standardized services, a large professional faculty, AI-powered teaching, and a synergistic product portfolio - **Over 1,000 directly-operated standardized stores** enhance service quality through unified standards, pre-audits, and closed-loop quality control to improve student satisfaction[48](index=48&type=chunk)[49](index=49&type=chunk) - A team of **3,250 professional full-time teachers** operates within a three-tiered network (headquarters-region-branch) ensuring localized, coordinated, and nationally supported instruction[50](index=50&type=chunk) - **AI technology is applied in R&D and teaching**, developing personalized tutoring, AI-powered grading, and AI interview feedback products that have served tens of thousands of students across China[51](index=51&type=chunk) - Core products are standardized into a high-low end synergistic layout: "Kaobian Zhītōngchē" for the mass market and "Shūyuàn Péiyōu" for high-end clients[52](index=52&type=chunk)[53](index=53&type=chunk) [Analysis of Principal Business Operations](index=14&type=section&id=Analysis%20of%20Principal%20Business%20Operations) In H1 2025, revenue grew 14.5% to RMB 1.72 billion, and net profit surged 75.09% to RMB 213 million, driven by the non-academic training segment Financial Performance of Principal Business in H1 2025 | Indicator | Amount (RMB ten thousand) | Y-o-Y Change | | :--- | :--- | :--- | | Operating Revenue | 172,433.72 | +14.5% | | Net Profit Attributable to Shareholders | 21,290.95 | +75.09% | | Net Profit from Non-academic Training Business | 22,168.17 | | | Net Loss from Architectural Engineering Design Business | -877.22 | | | Total Assets (Period-End) | 246,422.83 | +31.99% | | Equity Attributable to Shareholders (Period-End) | 41,884.71 | +45.45% | [Architectural Engineering Design and Related Consulting Services](index=14&type=section&id=Architectural%20Engineering%20Design%20and%20Related%20Consulting%20Services_Analysis%20of%20Principal%20Business%20Operations) The company navigates the challenging real estate market by diversifying projects, enhancing management, and actively managing receivables - The real estate market's continued adjustment and low industry sentiment pose challenges such as reduced business, project delays, and intensified competition[55](index=55&type=chunk) - The company actively develops the market through high-quality design services and diversified strategies, including exploring new clients, projects, and non-traditional areas like urban renewal[56](index=56&type=chunk) - It strengthens risk control through refined management, cultivates design talent, and actively pursues receivables, accepting property as payment to liquefy assets[57](index=57&type=chunk)[58](index=58&type=chunk) [Non-academic Training Business](index=15&type=section&id=Non-academic%20Training%20Business_Analysis%20of%20Principal%20Business%20Operations) The non-academic training business achieved strong performance through scientific management, service optimization, and digital transformation - Implemented scientific management to enhance governance, optimizing operations through market insight, product planning, customer service, and traffic management[59](index=59&type=chunk) - Deepened regional reforms by establishing a commercial committee, implementing an "all-hands-on-deck" service model, and using IT tools to create a data-driven operational platform[60](index=60&typechunk) Performance of Non-academic Training Business | Indicator | Amount (RMB ten thousand) | Ratio/Gross Margin | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 171,034.23 | | +14.96% | | Cost of Sales | 68,771.25 | | +8.26% | | Gross Profit | 102,262.98 | 59.79% | +2.48% (Gross Margin) | | Selling Expenses | 39,286.96 | 22.97% (Selling Expense Ratio) | -11.36% | | Administrative Expenses | 25,492.54 | 14.90% (Admin Expense Ratio) | +5.92% | | R&D Investment | 9,122.92 | 5.33% (R&D Expense Ratio) | +302.14% | | Contract Liabilities (Period-End) | 90,028.25 | | +15.68% | | Cash and Cash Equivalents (Period-End) | 44,879.91 | | +27.71% | | Trading Financial Assets (Period-End) | 51,582.22 | | +66.17% | - The company introduced "pay-in-installments" courses, with a potential maximum of RMB 712.69 million in training fees to be collected after exam results are released[64](index=64&type=chunk) [Analysis of Non-Principal Business Operations](index=17&type=section&id=Analysis%20of%20Non-Principal%20Business%20Operations) The company's non-principal business activities primarily consist of sustainable investment income and fair value gains Composition of Non-Principal Business | Item | Amount (RMB) | % of Total Profit | Sustainability | | :--- | :--- | :--- | :--- | | Investment Income | 4,166,152.38 | 1.59% | Yes | | Fair Value Gains/Losses | 381,720.93 | 0.15% | Yes | | Non-operating Income | 234,703.45 | 0.09% | No | | Non-operating Expenses | 2,097,096.02 | 0.80% | No | [Analysis of Assets and Liabilities](index=17&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) Total assets and net assets grew significantly, driven by a new share repurchase loan that increased cash and long-term borrowings Changes in Asset and Liability Composition | Item | Period-End Balance (RMB) | % of Total Assets | Year-End Balance (RMB) | % of Total Assets | Change in % | Reason for Major Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 761,727,597.55 | 30.91% | 387,576,706.96 | 20.76% | 10.15% | Primarily due to new share repurchase loan | | Accounts Receivable | 188,068,012.74 | 7.63% | 193,754,043.38 | 10.38% | -2.75% | | | Inventories | 15,348,098.68 | 0.62% | 23,608,442.90 | 1.26% | -0.64% | Decrease in consigned processing materials (paper) | | Right-of-use Assets | 568,761,510.92 | 23.08% | 523,828,124.32 | 28.06% | -4.98% | | | Contract Liabilities | 902,541,405.18 | 36.63% | 779,349,814.11 | 41.74% | -5.11% | | | Long-term Borrowings | 240,000,000.00 | 9.74% | 0.00 | 0.00% | 9.74% | Primarily due to new share repurchase loan | | Lease Liabilities | 375,947,671.19 | 15.26% | 315,741,788.78 | 16.91% | -1.65% | | - At period-end, restricted assets include **RMB 7.19 million** in pledged cash for performance bonds and **RMB 4.07 million** in frozen cash due to bank account freezes[76](index=76&type=chunk) - No significant changes occurred in the measurement attributes of major assets during the reporting period[75](index=75&type=chunk) [Analysis of Investment](index=19&type=section&id=Analysis%20of%20Investment) Total investment increased to RMB 1.58 billion, primarily related to the purchase and sale of structured deposits as trading financial assets - Total investment for the reporting period was **RMB 1,583.80 million**, a year-on-year increase of **9.15%**[78](index=78&type=chunk) - Trading financial assets had a period-end balance of **RMB 585.92 million**, with purchases of **RMB 1,583.80 million**, sales of **RMB 1,371.80 million**, and cumulative investment income of **RMB 4.17 million**[80](index=80&type=chunk) - The company had no material equity investments, non-equity investments, use of raised funds, entrusted wealth management, derivative investments, or entrusted loans during the period[79](index=79&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) [Major Asset and Equity Sales](index=20&type=section&id=Major%20Asset%20and%20Equity%20Sales) No major sales of assets or equity occurred during the reporting period - The company did not sell any major assets during the reporting period[85](index=85&type=chunk) - The company did not sell any major equity stakes during the reporting period[86](index=86&type=chunk) [Analysis of Major Holding and Associated Companies](index=20&type=section&id=Analysis%20of%20Major%20Holding%20and%20Associated%20Companies) Huatu Education Technology, the main subsidiary, significantly contributed to the company's net profit with RMB 222 million Financial Data of Main Subsidiary Huatu Education Technology | Indicator | Amount (RMB) | | :--- | :--- | | Registered Capital | 50,000,000.00 | | Total Assets | 1,992,744,581.72 | | Net Assets | 275,169,987.44 | | Operating Revenue | 1,710,079,590.83 | | Operating Profit | 273,449,457.79 | | Net Profit | 221,681,682.46 | - The company did not acquire or dispose of any subsidiaries during the reporting period[87](index=87&type=chunk) [Risks and Countermeasures](index=20&type=section&id=Risks%20and%20Countermeasures) The company faces distinct risks in its architectural design and non-academic training businesses and has implemented corresponding mitigation strategies - The architectural design business faces risks from policy changes, bad debts, declining gross margins, and economic transformation[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk)[92](index=92&type=chunk) - The non-academic training business faces risks from market competition, regulatory changes, economic fluctuations, technological disruption (especially generative AI), and shifting industry trends[93](index=93&type=chunk)[94](index=94&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) - Countermeasures include monitoring policies, strengthening client assessment and receivables collection, enhancing project management, investing in technology, and maintaining market agility[88](index=88&type=chunk)[89](index=89&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) [Architectural Engineering Design and Related Consulting Services](index=20&type=section&id=Architectural%20Engineering%20Design%20and%20Related%20Consulting%20Services_Risks) The architectural design business is exposed to risks from macroeconomic policies, credit defaults, margin pressure, and industry transformation - **Policy Risk**: The business is highly susceptible to national macroeconomic and financial policies affecting its real estate developer clients[88](index=88&type=chunk) - **Bad Debt Risk**: Increasing accounts receivable could lead to higher bad debt provisions, impacting profits if not collected in a timely manner[89](index=89&type=chunk) - **Gross Margin Risk**: Inefficient project management amid industry adjustments could lead to a decline in product gross margins[90](index=90&type=chunk) - **Growth Risk**: Economic and industrial transformation demands higher standards, potentially affecting the company's short-term growth and profitability[92](index=92&type=chunk) [Non-academic Training Business](index=21&type=section&id=Non-academic%20Training%20Business_Risks) The non-academic training business faces risks from intense competition, regulatory shifts, economic uncertainty, and technological disruption - **Market Competition Risk**: Intense competition from an increasing number of institutions, especially smaller ones, could erode market share[93](index=93&type=chunk) - **Regulatory Risk**: Uncertainties in regulatory policies could impact student enrollment and curriculum design[94](index=94&type=chunk) - **Economic Environment Risk**: A global economic slowdown may affect students' ability to pay as consumers become more price-sensitive[96](index=96&type=chunk) - **Technological Disruption Risk**: Failure to adopt new technologies like generative AI could render traditional teaching models obsolete and uncompetitive in cost and efficiency[97](index=97&type=chunk) - **Industry Trend Risk**: Unpredictable shifts in industry trends pose a potential and significant risk[98](index=98&type=chunk) [Development and Implementation of Market Value Management System and Valuation Enhancement Plan](index=22&type=section&id=Development%20and%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) The company has established a market value management system focused on enhancing corporate quality to align market value with intrinsic value - The company approved the "Market Value Management System" on December 23, 2024[101](index=101&type=chunk) - The system aims to **enhance corporate quality** through strategic planning and compliant operations to align market value with intrinsic value and maximize shareholder interests[101](index=101&type=chunk) - Measures include M&A, equity incentives, cash dividends, investor relations, information disclosure, and share buybacks, with an emergency response mechanism for abnormal stock price fluctuations[101](index=101&type=chunk) - The company has not disclosed a valuation enhancement plan or a "dual improvement in quality and returns" action plan[101](index=101&type=chunk)[103](index=103&type=chunk) Section 4: Corporate Governance, Environment, and Society [Changes in Directors, Supervisors, and Senior Management](index=23&type=section&id=Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) No changes occurred among the company's directors, supervisors, or senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period[104](index=104&type=chunk) [Profit Distribution and Capitalization of Capital Reserve for the Reporting Period](index=23&type=section&id=Profit%20Distribution%20and%20Capitalization%20of%20Capital%20Reserve%20for%20the%20Reporting%20Period) The company does not plan to distribute dividends or issue new shares from reserves for the first half of the year - The company plans no cash dividend, bonus share issuance, or capitalization of capital reserve for the interim period[105](index=105&type=chunk) [Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentives](index=23&type=section&id=Implementation%20of%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentives) The company approved its 2025 restricted stock incentive plan, adjusting the grant price and increasing the total number of shares - The company approved the 2025 restricted stock incentive plan, adjusting the grant price from RMB 45.91 to **RMB 32.76 per share**[106](index=106&type=chunk)[107](index=107&type=chunk) - The total number of restricted shares to be granted was increased from 2.72 million to **3.81 million shares**[107](index=107&type=chunk) - The employee stock ownership plan holds **3,815,600 shares**, representing **1.94% of the total share capital**[108](index=108&type=chunk) - The plan is funded by employees' legal compensation and self-raised funds, with no leveraged funds involved[108](index=108&type=chunk) - The non-transactional transfer of target stocks for the 2025 employee stock ownership plan has not yet been completed[109](index=109&type=chunk) [Environmental Information Disclosure](index=26&type=section&id=Environmental%20Information%20Disclosure) The company and its main subsidiaries are not designated as enterprises required to disclose environmental information - The listed company and its main subsidiaries are not included in the list of enterprises required by law to disclose environmental information[110](index=110&type=chunk) [Social Responsibility](index=26&type=section&id=Social%20Responsibility) The company actively fulfills its social responsibilities by promoting green architecture and protecting the rights of stakeholders - The company promotes green, low-carbon, and prefabricated building research and application, with several projects receiving green building certifications[111](index=111&type=chunk) - It ensures fair information access for all investors through strict compliance with disclosure regulations[112](index=112&type=chunk) - The company has established systems to protect employee rights regarding employment, compensation, and well-being[113](index=113&type=chunk) - It maintains strong, ethical relationships with suppliers and customers to protect the legitimate rights of all parties[114](index=114&type=chunk) Section 5: Important Matters [Commitments by Controlling Shareholders, Related Parties, and the Company](index=27&type=section&id=Commitments%20by%20Controlling%20Shareholders%2C%20Related%20Parties%2C%20and%20the%20Company) All commitments made by controlling shareholders and other major stakeholders were duly fulfilled during the reporting period - Commitments regarding the regulation and reduction of related-party transactions were fulfilled by all relevant parties[116](index=116&type=chunk)[120](index=120&type=chunk) - Commitments to avoid competition with the company were fulfilled[116](index=116&type=chunk)[120](index=120&type=chunk) - Commitments to maintain the company's independence in personnel, assets, finance, business, and organization were fulfilled[118](index=118&type=chunk)[120](index=120&type=chunk) - Share reduction commitments by major shareholders were fulfilled[122](index=122&type=chunk) - The company fulfilled its dividend and other commitments made during its IPO and subsequent financing activities[122](index=122&type=chunk)[125](index=125&type=chunk) [Non-operational Fund Occupation by Controlling Shareholders and Other Related Parties](index=33&type=section&id=Non-operational%20Fund%20Occupation%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties) No non-operational use of company funds by controlling shareholders or related parties occurred during the reporting period - There were no instances of non-operational fund occupation by controlling shareholders or other related parties during the reporting period[126](index=126&type=chunk) [Irregular External Guarantees](index=33&type=section&id=Irregular%20External%20Guarantees) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[127](index=127&type=chunk) [Appointment and Dismissal of Accounting Firm](index=33&type=section&id=Appointment%20and%20Dismissal%20of%20Accounting%20Firm) The company's semi-annual financial report has not been audited - The company's semi-annual report has not been audited[128](index=128&type=chunk) - The Board of Directors, Supervisory Committee, and Audit Committee have no comments on any "non-standard audit report" for this period[129](index=129&type=chunk) [Litigation Matters](index=33&type=section&id=Litigation%20Matters) The company was not involved in any material litigation or arbitration, with other minor cases having no significant financial impact - The company had no material litigation or arbitration matters during the reporting period[130](index=130&type=chunk) Other Litigation Matters | Litigation (Arbitration) Details | Amount Involved (RMB ten thousand) | Provision for Liabilities | Outcome and Impact | | :--- | :--- | :--- | :--- | | Cases as plaintiff/applicant not meeting material disclosure standards | 1,590 | N/A | Individual case amounts are small and will not have a material impact on the company | | Cases as defendant/respondent not meeting material disclosure standards | 758.35 | N/A | Individual case amounts are small and will not have a material impact on the company | [Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers](index=34&type=section&id=Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholders%2C%20and%20Actual%20Controllers) The company's actual controllers are subject to consumption restriction orders from two courts due to ongoing disputes - The company's actual controllers, Mr Yi Dinghong and Ms Wu Jingyu, were issued a "Consumption Restriction Order" by the Shenzhen Futian District People's Court on January 10, 2025, due to a dispute[133](index=133&type=chunk) - The actual controllers were issued another "Consumption Restriction Order" by the Beijing First Intermediate People's Court on April 7, 2025, related to a separate dispute[133](index=133&type=chunk) [Material Related-Party Transactions](index=34&type=section&id=Material%20Related-Party%20Transactions) The company engaged in significant related-party transactions involving course delivery services and business cooperation agreements - The company had no related-party transactions related to daily operations, asset/equity acquisitions or sales, joint investments, or related-party debts during the period[134](index=134&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - The subsidiary Huatu Education Technology signed an agreement with Beijing Huatu Hongyang for course delivery, recognizing **RMB 12.16 million in revenue** this period[140](index=140&type=chunk) - Huatu Education Technology agreed to take over business from Beijing Huatu Shangxue, resulting in a related-party transaction of **RMB 29.59 million** for cooperation fees[140](index=140&type=chunk) [Material Contracts and Their Performance](index=35&type=section&id=Material%20Contracts%20and%20Their%20Performance) The company has ongoing property lease agreements and secured a RMB 300 million loan for its share repurchase program - The company has property lease agreements with a remaining lease liability of **RMB 106.87 million**[145](index=145&type=chunk) - The company signed a **RMB 300 million** special loan contract with CITIC Bank Chengdu Branch for its share repurchase program and has received the funds[147](index=147&type=chunk) - No single lease project contributed more than 10% of the company's total profit[145](index=145&type=chunk) - The company had no material guarantees during the reporting period[146](index=146&type=chunk) - The company had no material contracts related to daily operations during the reporting period[147](index=147&type=chunk) Section 6: Changes in Share Capital and Shareholders [Changes in Share Capital](index=38&type=section&id=Changes%20in%20Share%20Capital) The company's total share capital increased due to a rights issue, and a share repurchase plan was completed Changes in Share Capital | Item | Before Change (Shares) | Increase/Decrease (Shares) | After Change (Shares) | | :--- | :--- | :--- | :--- | | Unrestricted Shares | 140,486,470 | 56,194,588 | 196,681,058 | | Total Shares | 140,486,470 | 56,194,588 | 196,681,058 | - The change in share capital was due to the implementation of the 2024 annual rights issue, which involved converting capital reserves (1.8 shares for every 10) and distributing retained earnings (2.2 bonus shares for every 10)[151](index=151&type=chunk)[153](index=153&type=chunk) - The company completed its share repurchase, buying back **3,815,563 shares**, representing **1.94% of total share capital**, for a total of **RMB 260.23 million**[153](index=153&type=chunk) [Number of Shareholders and Shareholdings](index=40&type=section&id=Number%20of%20Shareholders%20and%20Shareholdings) At the end of the period, the company had 4,620 shareholders, with the top shareholder holding a 51.00% stake - The total number of common shareholders at the end of the reporting period was **4,620**[156](index=156&type=chunk) Top Ten Shareholders | Shareholder Name | Shareholder Type | Shareholding Ratio | Shares Held (Shares) | Pledged, Marked, or Frozen (Shares) | | :--- | :--- | :--- | :--- | :--- | | Tianjin Huatu Hongyang Enterprise Management Co, Ltd | Domestic Non-state-owned Corp | 51.00% | 100,307,340 | Pledged 69,916,555 | | Che Lu | Domestic Individual | 16.53% | 32,514,297 | N/A 0 | | Qi Peiwang | Domestic Individual | 1.84% | 3,617,280 | N/A 0 | | Hong Kong Securities Clearing Company Ltd | Foreign Corp | 1.80% | 3,549,478 | N/A 0 | | Ping An Fund - Ping An Life Insurance Equity No.4 MOM Single Asset Management Plan | Other | 1.55% | 3,046,814 | N/A 0 | | Bank of China - Huaxia Industry Prosperity Mixed Securities Investment Fund | Other | 1.46% | 2,878,450 | N/A 0 | | Zhou Xueqin | Domestic Individual | 0.99% | 1,946,000 | N/A 0 | | Wang Zhiling | Domestic Individual | 0.76% | 1,502,900 | N/A 0 | | Fu Leipeng | Domestic Individual | 0.74% | 1,461,880 | N/A 0 | | Wen Xuejun | Domestic Individual | 0.66% | 1,301,367 | N/A 0 | - The company is unaware of any related-party relationships or concerted actions among the top 10 shareholders, except for Tianjin Huatu Enterprise Management, Che Lu, and Wen Xuejun[156](index=156&type=chunk) - Some shareholders hold shares through margin trading accounts[156](index=156&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=42&type=section&id=Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) No changes occurred in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[158](index=158&type=chunk) - The company's actual controller did not change during the reporting period[158](index=158&type=chunk) Section 7: Bond-related Matters [Bond-related Matters](index=44&type=section&id=Bond-related%20Matters) The company has no outstanding bonds or related matters to report for this period - The company has no bond-related matters to report for the period[161](index=161&type=chunk) Section 8: Financial Report [Auditor's Report](index=45&type=section&id=Auditor's%20Report) The company's semi-annual financial report has not been audited - The company's semi-annual financial report is unaudited[163](index=163&type=chunk) [Financial Statements](index=45&type=section&id=Financial%20Statements) This section presents the company's consolidated and parent company financial statements for the first half of 2025 - Provides the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity[164](index=164&type=chunk)[168](index=168&type=chunk)[172](index=172&type=chunk)[176](index=176&type=chunk)[180](index=180&type=chunk)[184](index=184&type=chunk)[188](index=188&type=chunk)[192](index=192&type=chunk) [Consolidated Balance Sheet](index=45&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, total assets grew 31.99% to RMB 2.46 billion, and equity attributable to the parent company increased by 45.45% to RMB 419 million Consolidated Balance Sheet Highlights (Jun 30, 2025 vs Dec 31, 2024) | Item | Period-End Balance (RMB) | Opening Balance (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,464,228,258.67 | 1,866,997,188.81 | +31.99% | | Total Liabilities | 2,045,381,113.46 | 1,579,022,735.96 | +29.53% | | Equity Attributable to Parent | 418,847,145.21 | 287,974,452.85 | +45.45% | | Cash and Cash Equivalents | 761,727,597.55 | 387,576,706.96 | +96.55% | | Trading Financial Assets | 585,918,202.15 | 373,536,481.22 | +56.89% | | Contract Liabilities | 902,541,405.18 | 779,349,814.11 | +15.81% | | Long-term Borrowings | 240,000,000.00 | 0.00 | New | [Consolidated Income Statement](index=49&type=section&id=Consolidated%20Income%20Statement) For H1 2025, total operating revenue increased by 14.50% to RMB 1.72 billion, while net profit attributable to the parent company surged by 75.09% to RMB 213 million Consolidated Income Statement Highlights (H1 2025 vs H1 2024) | Item | Current Period (RMB) | Prior Period (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,724,337,161.38 | 1,506,029,916.73 | +14.50% | | Total Operating Costs | 1,475,121,701.69 | 1,384,472,996.97 | +6.55% | | Operating Profit | 263,303,415.20 | 152,593,160.20 | +72.56% | | Total Profit | 261,441,022.63 | 152,320,216.17 | +71.64% | | Income Tax Expense | 48,531,550.86 | 30,721,361.64 | +57.97% | | Net Profit | 212,909,471.77 | 121,598,854.53 | +75.09% | | Net Profit Attributable to Parent | 212,909,471.77 | 121,598,854.53 | +75.09% | [Consolidated Cash Flow Statement](index=53&type=section&id=Consolidated%20Cash%20Flow%20Statement) Net cash from operating activities decreased by 33.35% to RMB 489 million, while net cash from financing activities increased significantly due to a new loan Consolidated Cash Flow Statement Highlights (H1 2025 vs H1 2024) | Item | Current Period (RMB) | Prior Period (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 488,921,256.67 | 733,569,424.17 | -33.35% | | Net Cash Flow from Investing Activities | -226,385,738.32 | -515,887,380.11 | +56.12% | | Net Cash Flow from Financing Activities | 107,542,169.35 | -118,061,827.04 | +191.09% | | Net Increase in Cash and Cash Equivalents | 370,077,687.70 | 99,620,217.02 | +271.49% | - **The decrease in operating cash flow** was mainly due to reduced collections from related-party transactions and increased payments for employee expenses compared to the prior period[67](index=67&type=chunk) - **The change in investing cash flow** was primarily due to an increase in the collection of matured structured deposits[67](index=67&type=chunk) - **The change in financing cash flow** was mainly attributable to the new special loan for share repurchase[67](index=67&type=chunk) [Company's Basic Information](index=62&type=section&id=Company's%20Basic%20Information) Founded in 2003 and listed in 2015, the company's primary business activities are non-academic training and architectural design services - The company, formerly Sichuan Shanding Architectural Engineering Design Consulting Co, Ltd, was founded on February 13, 2003, and listed on the Shenzhen Stock Exchange on December 23, 2015[198](index=198&type=chunk)[199](index=199&type=chunk) - The company has a registered capital and total share capital of **RMB 196,681,058**[199](index=199&type=chunk) - Since November 2023, the company has engaged in non-academic vocational training through its subsidiary Huatu Education Technology, alongside its architectural design and consulting services[199](index=199&type=chunk) [Basis of Preparation of Financial Statements](index=63&type=section&id=Basis%20of%20Preparation%20of%20Financial%20Statements) The financial statements are prepared on a going concern basis, with no material uncertainties affecting this assumption - The company's financial statements are prepared on a going concern basis[201](index=201&type=chunk) - There are no events or conditions that cast significant doubt on the company's ability to continue as a going concern for the next 12 months[202](index=202&type=chunk) [Significant Accounting Policies and Estimates](index=63&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) This section details the key accounting policies and estimates applied in the preparation of the financial statements - The financial statements are prepared in compliance with Chinese Accounting Standards, providing a true and fair view of the company's financial position and performance[204](index=204&type=chunk) - The accounting year is the calendar year, and the functional currency is the Renminbi (RMB)[205](index=205&type=chunk)[207](index=207&type=chunk) - The company has established specific accounting policies and estimates for key items such as financial instrument impairment, depreciation, and revenue recognition[203](index=203&type=chunk) - Detailed policies are disclosed for the classification, recognition, measurement, and derecognition of financial instruments, as well as methods for impairment and fair value determination[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk) - Revenue is recognized based on the transfer of control over time or at a point in time, with specific methods detailed for architectural design and non-academic training services[254](index=254&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk) [Taxation](index=78&type=section&id=Taxation) The company is subject to various taxes, including VAT and corporate income tax, and benefits from preferential tax policies Major Taxes and Rates | Tax Type | Rate | | :--- | :--- | | Value-Added Tax (VAT) | 3%, 6%, 9% | | Urban Maintenance and Construction Tax | 7.00% | | Corporate Income Tax | 15%, 20%, 25% | | Property Tax | 1.2%, 12% | | Education Surcharge | 3.00% | | Local Education Surcharge | 2.00% | - The company and its education technology subsidiary benefit from the Western Development Program, enjoying a **reduced corporate income tax rate of 15%**[270](index=270&type=chunk) - Several subsidiaries qualify for preferential tax policies for small and micro-enterprises in 2025[270](index=270&type=chunk) [Notes to Consolidated Financial Statement Items](index=79&type=section&id=Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed breakdowns and explanations for key items in the consolidated financial statements - Discloses detailed composition and changes for major assets, liabilities, equity, revenue, cost, and cash flow items[165](index=165&type=chunk)[173](index=173&type=chunk)[180](index=180&type=chunk)[185](index=185&type=chunk)[193](index=193&type=chunk)[493](index=493&type=chunk)[496](index=496&type=chunk)[499](index=499&type=chunk)[502](index=502&type=chunk)[505](index=505&type=chunk)[512](index=512&type=chunk)[514](index=514&type=chunk)[517](index=517&type=chunk)[520](index=520&type=chunk)[523](index=523&type=chunk)[525](index=525&type=chunk)[528](index=528&type=chunk)[531](index=531&type=chunk)[533](index=533&type=chunk)[537](index=537&type=chunk) - **Cash and cash equivalents** at period-end were **RMB 762 million**, with a portion being restricted[273](index=273&type=chunk) - **Trading financial assets** at period-end were **RMB 586 million**, primarily consisting of structured deposits[276](index=276&type=chunk) - **Accounts receivable** at period-end were **RMB 188 million**, with a bad debt provision of **RMB 85.87 million**[289](index=289&type=chunk)[290](index=290&type=chunk) - **Contract liabilities** at period-end were **RMB 903 million**, mainly from prepaid training fees[467](index=467&type=chunk) - **Long-term borrowings** at period-end were **RMB 240 million**, from a new loan for share repurchase[478](index=478&type=chunk) - **Share capital** at period-end was **197 million shares**, increased due to a rights issue[493](index=493&type=chunk) - **Treasury stock** at period-end was **RMB 46.21 million**, resulting from share repurchases during the period[499](index=499&type=chunk) [Cash and Cash Equivalents](index=79&type=section&id=Cash%20and%20Cash%20Equivalents) Cash and cash equivalents increased by 96.55% to RMB 762 million, with a portion restricted due to legal freezes and collateral requirements Cash and Cash Equivalents at Period-End | Item | Period-End Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Cash on Hand | 1,531,018.20 | 647,516.60 | | Bank Deposits | 366,590,276.47 | 352,680,158.54 | | Other Cash Equivalents | 393,606,302.88 | 34,249,031.82 | | **Total** | **761,727,597.55** | **387,576,706.96** | - At period-end, **RMB 4.07 million** in bank deposits were frozen due to litigation[273](index=273&type=chunk) - Other cash equivalents include **RMB 7.19 million** as performance bond collateral and **RMB 287.13 million** in a securities account for share repurchases[273](index=273&type=chunk)[274](index=274&type=chunk) [Trading Financial Assets](index=79&type=section&id=Trading%20Financial%20Assets) Trading financial assets grew by 56.89% to RMB 586 million, consisting entirely of structured deposits measured at fair value Trading Financial Assets at Period-End | Item | Period-End Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | 585,918,202.15 | 373,536,481.22 | | Of which: Structured Deposits | 585,918,202.15 | 373,536,481.22 | [Accounts Receivable](index=81&type=section&id=Accounts%20Receivable) The gross balance of accounts receivable was RMB 274 million, with a bad debt provision of RMB 85.87 million, representing a 31.35% provision rate Accounts Receivable by Aging | Aging | Period-End Gross Balance (RMB) | Opening Gross Balance (RMB) | | :--- | :--- | :--- | | Within 1 year | 148,385,752.42 | 146,504,308.64 | | 1 to 2 years | 15,440,991.07 | 23,846,933.78 | | 2 to 3 years | 41,877,151.39 | 40,358,148.84 | | Over 3 years | 68,229,171.18 | 69,426,079.09 | | **Total** | **273,933,066.06** | **280,135,470.35** | Accounts Receivable Bad Debt Provision | Category | Gross Balance (RMB) | Bad Debt Provision (RMB) | Provision Rate | | :--- | :--- | :--- | :--- | | Individually Assessed | 8,825,047.83 | 8,825,047.83 | 100.00% | | Collectively Assessed | 265,108,018.23 | 77,040,005.49 | 29.06% | | **Total** | **273,933,066.06** | **85,865,053.32** | **31.35%** | - The top five debtors accounted for **46.89%** of the total balance of accounts receivable and contract assets, amounting to **RMB 128.43 million**[300](index=300&type=chunk) [Contract Liabilities](index=112&type=section&id=Contract%20Liabilities) Contract liabilities increased by 15.81% to RMB 903 million, primarily comprising prepaid training fees Contract Liabilities at Period-End | Item | Period-End Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Prepaid Training Fees | 900,282,487.55 | 778,221,560.50 | | Prepaid Design Fees | 2,258,917.63 | 1,128,253.61 | | **Total** | **902,541,405.18** | **779,349,814.11** | [Employee Benefits Payable](index=113&type=section&id=Employee%20Benefits%20Payable) Employee benefits payable decreased by 18.30% to RMB 157 million at the end of the period Employee Benefits Payable at Period-End | Item | Period-End Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Short-term Compensation | 154,778,113.26 | 190,264,163.05 | | Post-employment Benefits - Defined Contribution Plans | 1,981,766.00 | 1,607,571.01 | | **Total** | **156,759,879.26** | **191,871,734.06** | - During the period, employee benefits payable increased by **RMB 806.47 million** and decreased by **RMB 841.58 million**[469](index=469&type=chunk) [Long-term Borrowings](index=115&type=section&id=Long-term%20Borrowings) The company secured a new long-term loan of RMB 240 million for its share repurchase program, guaranteed by a subsidiary Long-term Borrowings at Period-End | Item | Period-End Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Guaranteed Borrowings | 240,000,000.00 | 0.00 | - A new **RMB 300 million** special loan for share repurchase was obtained, with a term from June 18, 2025, to June 17, 2028, at an interest rate of **1.8% per annum**[478](index=478&type=chunk) - The loan is secured by a maximum guarantee from the wholly-owned subsidiary, Huatu Education Technology Co, Ltd[478](index=478&type=chunk) [Lease Liabilities](index=116&type=section&id=Lease%20Liabilities) Lease liabilities increased by 19.07% to RMB 376 million, mainly related to leases for office and teaching facilities Lease Liabilities at Period-End | Item | Period-End Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Office and Teaching Facility Leases | 375,947,671.19 | 315,741,788.78 | [Share Capital](index=118&type=section&id=Share%20Capital) Share capital increased to 197 million shares following the implementation of the 2024 rights issue plan Share Capital at Period-End | Item | Period-End Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Total Shares | 196,681,058.00 | 140,486,470.00 | - Share capital increased by **56,194,588 shares**, comprising **30,907,023.40 bonus shares** and **25,287,564.60 shares from capital reserve conversion**[493](index=493&type=chunk) - The change resulted from the 2024 profit distribution plan, which issued 2.2 bonus shares and converted 1.8 shares from capital reserve for every 10 shares held[493](index=493&type=chunk) [Capital Reserve](index=118&type=section&id=Capital%20Reserve) Capital reserve decreased by 47.89% to RMB 27.65 million due to the capitalization of share premium to increase share capital Capital Reserve at Period-End | Item | Period-End Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Capital Premium (Share Premium) | 1,293,623.79 | 26,581,188.39 | | Other Capital Reserve | 26,359,787.99 | 26,359,787.99 | | **Total** | **27,653,411.78** | **52,940,976.38** | - The capital premium decreased by **RMB 25.29 million** this period, primarily due to its conversion into share capital[496](index=496&type=chunk)[497](index=497&type=chunk) [Treasury Stock](index=119&type=section&id=Treasury%20Stock) The company held RMB 46.21 million in treasury stock at period-end, acquired through a share repurchase program for future incentive plans Treasury Stock at Period-End | Item | Period-End Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Treasury Stock | 46,212,729.56 | 0.00 | - The company repurchased **686,516 shares** for a total of **RMB 46.21 million** via centralized bidding by June 30, 2025, following the approval of a share repurchase plan on April 27, 2025[499](index=499&type=chunk) [Retained Earnings](index=120&type=section&id=Retained%20Earnings) Retained earnings grew by 216.06% to RMB 214 million, reflecting strong net profit generation partially offset by dividend payments Retained Earnings at Period-End | Item | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | | Retained Earnings at Beginning of Period (Adjusted) | 67,659,161.73 | 15,413,072.53 | | Add: Net Profit Attributable to Parent | 212,909,471.77 | 121,598,854.53 | | Less: Dividends Payable on Common Stock | 35,824,049.85 | 0.00 | | Less: Common Stock Dividends Converted to Share Capital | 30,907,023.40 | 0.00 | | **Retained Earnings at End of Period** | **213,837,560.25** | **137,011,927.06** | [Revenue and Cost of Sales](index=120&type=section&id=Revenue%20and%20Cost%20of%20Sales) In H1 2025, revenue grew 14.50% to RMB 1.72 billion, driven by the non-academic training segment which achieved a gross margin of 59.79% Revenue and Cost of Sales | Item | Current Period (RMB) | Prior Period (RMB) | Y-o-Y Change (Revenue) | Y-o-Y Change (Cost) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,724,337,161.38 | 1,506,029,916.73 | +14.50% | | | Cost of Sales | 705,065,797.78 | 654,448,296.85 | | +7.73% | Breakdown by Business Type | Business Type | Operating Revenue (RMB) | Cost of Sales (RMB) | Gross Margin | | :--- | :--- | :--- | :--- | | Non-academic Training Services | 1,710,342,311.33 | 687,712,499.97 | 59.79% | | Architectural Engineering Design Services | 13,871,568.98 | 16,540,820.21 | -19.24% | [Research and Development Expenses](index=122&type=section&id=Research%20and%20Development%20Expenses) R&D expenses surged by 302.14% to RMB 91.23 million, primarily due to increased employee costs from an expanded R&D team Research and Development Expenses | Item | Current Period (RMB) | Prior Period (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Employee Compensation | 79,416,221.39 | 14,131,272.85 | +462.00% | | Other | 11,812,989.92 | 8,554,766.58 | +38.09% | | **Total** | **91,229,211.31** | **22,686,039.43** | **+302.14%** | - The increase in R&D investment was mainly due to a larger R&D team, leading to higher employee-related expenses[67](index=67&type=chunk) - All R&D expenditure was expensed as incurred[553](index=553&type=chunk) [Cash Flow Statement Items](index=126&type=section&id=Cash%20Flow%20Statement%20Items) The company generated a net operating cash flow of RMB 489 million, while investing and financing activities resulted in net outflows and inflows, respectively - Total cash inflows from operating activities: **RMB 1,964.27 million**[180](index=180&type=chunk) - Total cash outflows from operating activities: **RMB 1,475.35 million**[180](index=180&type=chunk) - Total cash inflows from investing activities: **RMB 1,376.08 million**[181](index=181&type=chunk) - Total cash outflows from investing activities: **RMB 1,602.47 million**[181](index=181&type=chunk) - Total cash inflows from financing activities: **RMB 300.00 million**[181](index=181&type=chunk) - Total cash outflows from financing activities: **RMB 192.46 million**[181](index=181&type=chunk) - **The decrease in operating cash flow** was mainly due to reduced collections from related-party transactions and increased payments for employee expenses[67](index=67&type=chunk) - **The change in investing cash flow** was primarily due to an increase in the collection of matured structured deposits[67](index=67&type=chunk) - **The change in financing cash flow** was mainly attributable to the new special loan for share repurchase[67](index=67&type=chunk) [Research and Development Expenditure](index=132&type=section&id=Research%20and%20Development%20Expenditure) Total R&D expenditure for H1 2025 was RMB 91.23 million, a 302.14% increase year-on-year, all of which was expensed Research and Development Expenditure | Item | Current Period (RMB) | Prior Period (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Employee Compensation | 79,416,221.39 | 14,131,272.85 | +462.00% | | Other | 11,812,989.92 | 8,554,766.58 | +38.09% | | **Total** | **91,229,211.31** | **22,686,039.43** | **+302.14%** | - All R&D expenditure was expensed as incurred[553](index=553&type=chunk) - The company had no capitalized R&D projects or significant externally acquired ongoing R&D projects[554](index=554&type=chunk)[556](index=556&type=chunk) [Risks Related to Financial Instruments](index=142&type=section&id=Risks%20Related%20to%20Financial%20Instruments) The company manages financial risks, including credit, liquidity, and market risks, through a structured risk management framework - The company's primary financial risks are **credit risk, liquidity risk, and market risk** (interest rate and foreign exchange risk)[582](index=582&type=chunk)[584](index=584&type=chunk) - **Credit risk is managed** by placing funds with high-rated institutions, continuously assessing customer credit, and monitoring receivable balances[581](index=581&type=chunk)[582](index=582&type=chunk) - **Liquidity risk is managed** by classifying financial liabilities by their remaining maturity dates[584](index=584&type=chunk) - **Market risk** is managed by adjusting the mix of fixed and floating-rate instruments for interest rate risk; foreign exchange risk is not significant as most transactions are in RMB[585](index=585&type=chunk) - The company has a degree of credit concentration risk, with **46.89% of accounts receivable** due from the top five customers[583](index=583&type=chunk) [Related Parties and Related-Party Transactions](index=145&type=section&id=Related%20Parties%20and%20Related-Party%20Transactions) The company engaged in several transactions with related parties, including service provisions and cooperation agreements, with significant receivable balances outstanding - The company's parent is Tianjin Huatu Hongyang Enterprise Management Co, Ltd, and the ultimate controllers are Yi Dinghong and Wu Jingyu[591](index=591&type=chunk)[592](index=592&type=chunk) Major Related-Party Transactions | Transaction Type | Related Party | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | :--- | | Purchase of Goods/Services (Renovation & Property) | Beijing Huatu Hongyang Education Culture Development Co, Ltd | 5,076,988.53 | 14,594,270.45 | | Sale of Goods/Services (Course Delivery) | Beijing Huatu Hongyang Education Culture Development Co, Ltd | 12,160,925.47 | 171,277,739.25 | | Payment of Cooperation Fees | Beijing Huatu Shangxue Education Technology Co, Ltd | 29,585,600.00 | | | Related-Party Leases (as Lessee) | Beijing Huatu Hongyang Education Culture Development Co, Ltd | 8,928,323.36 | 10,157,021.34 | | Related-Party Leases (as Lessee) | Tianjin Huatu Hongyang Enterprise Management Co, Ltd | 1,031,570.65 | 240,000.00 | | Asset Transfer from Related Party (Vehicles) | Beijing Huatu Hongyang Education Culture Development Co, Ltd | 323,767.93 | 5,000.00 | | Key Management Personnel Compensation | | 6,162,916.30 | 4,881,870.80 | - At period-end, accounts receivable included **RMB 102.96 million** due from Beijing Huatu Hongyang Education Culture Development Co, Ltd[612](index=612&type=chunk) - At period-end, accounts payable included **RMB 5.74 million** due to Beijing Huatu Hongyang Education Culture Development Co, Ltd[614](index=614&type=chunk) - At period-end, lease liabilities included **RMB 8.06 million** related to leases with Beijing Huatu Hongyang Education Culture Development Co, Ltd[614](index=614&type=chunk) [Supplementary Information](index=163&type=section&id=Supplementary%20Information) This section provides supplementary data, including details on non-recurring items and calculations for ROE and EPS - Total non-recurring profit and loss: **RMB 10,890,835.16**[164](index=164&type=chunk) Return on Equity (ROE) and Earnings Per Share (EPS) | Profit Metric | Weighted Average ROE | Basic EPS (RMB/share) | Diluted EPS (RMB/share) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders | 57.59% | 1.08 | 1.08 | | Net profit attributable to common shareholders (excl non-recurring items) | 54.64% | 1.03 | 1.03 | - There are no differences in accounting data under domestic and foreign accounting standards[164](index=164&type=chunk)[685](index=685&type=chunk)