Core Insights - ST Mingjiahui reported a significant decline in revenue and net profit for the first half of 2025, with total revenue of 39.76 million yuan, down 50.43% year-on-year, and a net loss of 80.88 million yuan, a staggering decrease of 467.46% compared to the previous year [1] Financial Performance - Total revenue for Q2 2025 was 13.70 million yuan, reflecting a 75.28% year-on-year decline [1] - The gross margin decreased to 37.6%, down 32.37% year-on-year, while the net margin plummeted to -203.52%, a decrease of 1039.88% [1] - The total of selling, administrative, and financial expenses reached 46.88 million yuan, accounting for 117.91% of total revenue, an increase of 92.96% year-on-year [1] - Earnings per share fell to -0.12 yuan, a 500% decrease year-on-year, and the net asset per share dropped to 0.02 yuan, down 88.02% [1] Cash Flow and Debt - The company reported a significant increase in cash reserves, with monetary funds rising to 106 million yuan, a 458.65% increase year-on-year [1] - Accounts receivable decreased to 271 million yuan, down 30.82% year-on-year, while interest-bearing debt slightly decreased to 74.91 million yuan, a 2.20% decline [1] - The cash flow situation is concerning, with a cash flow to current liabilities ratio of only 30.96% and a negative average operating cash flow to current liabilities ratio of -0.71% over the past three years [3] Historical Performance - The company's historical return on invested capital (ROIC) has been poor, with a median ROIC of 16.73% since its listing, and a particularly bad year in 2023 with a ROIC of -78.39% [2] - The company has reported losses in five out of eight annual reports since its listing, indicating a trend of financial instability [2]

Meeting Overview - The fifth meeting of the fifth supervisory board of Shenzhen Mingjiahui Technology Co., Ltd. was held on August 25, 2025, in a combined onsite and remote format [1] - The meeting was attended by all three supervisory board members, and it was chaired by Hu Yanjun [1] Resolutions Passed - The supervisory board approved the proposal regarding the full text and summary of the 2025 semi-annual report, confirming that the report accurately reflects the company's operational and financial status for the first half of 2025 [1][2] - The board also approved the proposal concerning the special report on the storage and use of raised funds for the first half of 2025, stating that the management of these funds complies with relevant regulations [2]

Core Viewpoint - Shenzhen Minkave Technology Co., Ltd. reported a significant decline in financial performance for the first half of 2025, with a 50.43% decrease in revenue compared to the same period last year, primarily due to market demand shrinkage and industry downturn [2][10]. Company Overview and Financial Indicators - The company operates in the landscape lighting industry, focusing on design, construction, and sales of lighting products [6][10]. - The stock code is 300506, and it is listed on the Shenzhen Stock Exchange [2]. - The company does not plan to distribute cash dividends or issue bonus shares [1]. Financial Performance - Revenue for the reporting period was approximately 39.76 million yuan, down from 80.21 million yuan in the previous year [2]. - The net loss attributable to shareholders was approximately 80.88 million yuan, a 467.46% increase in loss compared to the previous year [2]. - The basic earnings per share were -0.12 yuan, reflecting a 500% increase in loss per share [2]. - Total assets decreased by 13.80% to approximately 683.34 million yuan compared to the end of the previous year [2]. Industry Development - The landscape lighting industry in China saw a market size of approximately 28 billion yuan in the first half of 2025, with an 8.2% year-on-year growth, benefiting from urban renewal and night tourism [4][5]. - The industry is transitioning towards smart and green solutions, with a focus on integrating cultural and personalized elements into lighting designs [5][6]. - The government is promoting a green low-carbon lighting system as part of the "14th Five-Year Plan," which is expected to drive innovation and value enhancement in the industry [3][4]. Business Model and Market Position - The company primarily engages in professional contracting for lighting projects, including EPC (Engineering, Procurement, and Construction) and PPP (Public-Private Partnership) models [6][7]. - Despite recent challenges, the company maintains a significant position in the landscape lighting sector due to its technical expertise and project experience [8][9]. - The company has a competitive edge in providing comprehensive lighting solutions, which enhances customer loyalty and project bidding success [9][10].

Core Viewpoint - Shenzhen Mingjiahui Technology Co., Ltd. reported significant declines in revenue and net profit for the first half of 2025, indicating financial distress and operational challenges [1][2]. Financial Performance - The company's operating revenue for the reporting period was 39,757,546.53 yuan, a decrease of 50.43% compared to 80,206,916.58 yuan in the same period last year [1]. - The net profit attributable to shareholders was -80,880,046.34 yuan, representing a decline of 467.46% from -14,252,890.52 yuan year-on-year [1]. - The net profit after deducting non-recurring gains and losses was -85,314,899.66 yuan, down 275.27% from -22,734,132.81 yuan in the previous year [1]. - The net cash flow from operating activities was -60,266,851.38 yuan, a drastic decline of 1,237.07% from 5,300,202.59 yuan [1]. - Basic and diluted earnings per share were both -0.12 yuan, a decrease of 500% from -0.02 yuan [1]. Asset and Equity Position - Total assets at the end of the reporting period were 683,344,963.21 yuan, down from 792,729,388.46 yuan [2]. - The net assets attributable to shareholders decreased by 83.87% to 15,560,055.53 yuan [2]. Shareholder Information - The largest shareholder, Cheng Zongyu, holds 10.88% of the shares, with a total of 75,648,531 shares, which are subject to pledges [2][4]. - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period [4][5]. Important Events - Cheng Zongyu received a court ruling regarding a contract dispute related to frozen shares, which may lead to forced execution by China New Industry Group if obligations are not met [4][5]. - The company’s stock was suspended for one day on May 19, 2025, due to regulatory actions [5].

Group 1 - The board meeting of Shenzhen MingJiaHui Technology Co., Ltd. was held on August 25, 2025, with all 9 directors present, and the meeting complied with relevant laws and regulations [1][2] - The board approved the 2025 semi-annual report, confirming that it accurately reflects the company's operational and financial status for the first half of 2025 [2][3] - The board also approved the special report on the storage and use of raised funds for the first half of 2025, stating it reflects the actual situation accurately [2][3] Group 2 - The board reviewed and approved amendments to major governance systems in accordance with the latest legal requirements and the company's actual situation [2][3] - The board agreed to abolish certain governance systems to establish a clearer governance framework, integrating key contents into revised management systems [3][4] - The board approved the election of a new non-independent director, Wang Yishen, to replace Li Taiquan, who resigned due to a job change [4] Group 3 - The board scheduled the second extraordinary general meeting of shareholders for September 11, 2025, to review the relevant proposals [4]

Meeting Information - The company will hold its second extraordinary general meeting of shareholders for 2025 on September 11, 2025, at 14:30 [1] - The meeting will combine on-site voting and online voting [1][2] - Online voting will be available through the Shenzhen Stock Exchange trading system and internet voting system during specified time slots on the same day [1][2] Voting Procedures - Shareholders can choose either on-site voting or online voting, but not both; if duplicate votes occur, the first valid vote will be counted [2] - Eligible shareholders include those holding voting shares as of the registration date and their authorized agents [2][3] - Specific identification and documentation are required for both individual and corporate shareholders to attend the meeting [3][4] Agenda Items - The meeting will review several proposals, including amendments to major governance systems and the election of non-independent directors [2][7] - The proposals have been approved by the company's board and are legally compliant [2] Registration and Voting Process - Shareholders must register for the meeting by providing necessary identification and proof of shareholding [3][4] - Detailed voting procedures for online participation are provided, including the voting code and instructions for expressing opinions on proposals [5]

Core Viewpoint - Shenzhen MingJiaHui Technology Co., Ltd. announced the resignation of its non-independent director Li Taiquan due to personal job changes, and the appointment of Wang Yishen as his successor [1][2]. Group 1: Director Changes - Li Taiquan submitted his resignation report after the fifth meeting of the fifth board of directors, effective upon delivery to the board [1]. - Wang Yishen has been recommended by the second largest shareholder, China Emerging Group, to replace Li Taiquan as a non-independent director and vice chairman [2]. - The board approved Wang Yishen's appointment, which will last until the end of the current board's term on January 6, 2028 [2]. Group 2: Wang Yishen's Background - Wang Yishen, born in May 1980, holds a bachelor's degree in accounting from Nankai University and a master's degree in logistics and supply chain management from the University of Gothenburg, Sweden [2]. - His previous roles include project manager at China Electronics Import and Export International Electronic Services Co., and various financial positions within China Emerging Group [2]. - Wang Yishen does not hold any shares in the company and has no related party relationships with major shareholders or other board members [3].

Summary of Key Points Core Viewpoint - The financial data indicates significant non-operating fund occupation and inter-company transactions within Shenzhen Mingjiahui Technology Co., Ltd, highlighting potential liquidity issues and reliance on related parties for funding [1][2]. Group 1: Non-Operating Fund Occupation - The report shows that there is a total of non-operating fund occupation from controlling shareholders and their subsidiaries, but specific amounts are not disclosed [1]. - The non-operating fund occupation is categorized under various related parties, indicating a lack of transparency in financial dealings [1]. Group 2: Inter-Company Transactions - The company has substantial inter-company transactions with its subsidiaries, including: - Mingjiang Zhihui (Zhongshan) Technology Co., Ltd with a balance of 733.34 million in other receivables [1]. - Beijing Dahua Shenyuan Technology Development Co., Ltd with a balance of 1,689.95 million in other receivables [1]. - Anhui Mingjiahui Industrial Park Development Management Co., Ltd with a balance of 13,847.74 million in other receivables [1]. - The total amount of inter-company transactions reported is 20,169.34 million, with a significant portion classified as non-operating [2].

Fundraising Overview - The company raised a total of 246,649,287.68 yuan through a private placement of 40,550,793 shares, with the funds received on December 21, 2021 [1][2] - As of June 30, 2025, the net amount of funds raised was 215,724,010.20 yuan directly invested in projects, with an additional 31,227,227.00 yuan used for permanent working capital [1][2] Fund Usage and Management - The company has established special accounts at multiple banks for the management of raised funds, ensuring strict approval procedures for fund usage [3][4] - As of June 30, 2025, the balance in the fundraising special account was 1,084,782.41 yuan, with a total interest income of 159,760.66 yuan after deducting fees [1][2][4] Issues and Adjustments - The company faced challenges in fund recovery due to slow progress in receivables and project acceptance delays, leading to significant pressure on working capital [4][5] - A total of 3,000,000 yuan of idle funds was temporarily used to supplement working capital, with the repayment deadline extended due to financial constraints [4][8] - The company terminated the "Headquarters Base Construction Project" and plans to use the returned land price of 3,122.72 million yuan for permanent working capital [8][9] Project Performance - The company reported that the "Night Tourism Environment Enhancement Project" faced multiple design changes from the owner, resulting in reduced project volume and lower actual settlement amounts compared to the contract [8][9] - The "China Phoenix Ancient City • Fengxianjing • Forest Hot Spring Art Town" project has not commenced due to the construction carrier not being completed, delaying the use of raised funds for project construction [4][9]

Core Viewpoint - The company has conducted an asset impairment test as of June 30, 2025, and has recognized a total impairment loss of 46.91 million RMB, reflecting a cautious approach to asset valuation and financial reporting [1][2][3] Summary by Category Asset Impairment - The company performed impairment tests on various assets including accounts receivable, long-term receivables, inventory, and fixed assets, determining that the recoverable amounts were below their book values [1][2] - The total impairment loss recognized for the first half of 2025 amounts to 46,906,245.72 RMB, with significant contributions from accounts receivable and contract assets [1][2] Breakdown of Impairment Losses - The impairment losses include: - Contract asset impairment loss: 16,430,484.87 RMB - Accounts receivable bad debt provision: 25,004,666.04 RMB - Other receivables bad debt provision: 5,631,896.45 RMB - Long-term receivables bad debt provision: -17,923.52 RMB - Non-current assets due within one year bad debt provision: -142,878.12 RMB [1][2] Compliance and Reporting - The impairment losses are in accordance with the "Enterprise Accounting Standards" and the company's accounting policies, ensuring that the financial statements accurately reflect the company's financial condition and asset values as of June 30, 2025 [2][3]