[Section I Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Section%20I%20Important%20Notice%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides crucial preliminary information, including the board's assurance of report accuracy, a detailed table of contents, and definitions of key terms used throughout the report [Important Notice](index=2&type=section&id=Important%20Notice) The company's board, supervisors, and senior management guarantee the report's accuracy, while highlighting risks and confirming no dividend distribution for the period - Director Mr. Yin Zhiyong did not attend the board meeting due to work reasons, and his vote was recorded as 'abstention'[4](index=4&type=chunk) - The company highlighted risks including macroeconomic changes, policy shifts, market competition, accounts receivable bad debts, investment and M&A integration, goodwill impairment, and chain inspection station project implementation[5](index=5&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[6](index=6&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This section outlines the report's structure, covering company profile, management discussion, corporate governance, significant events, share changes, bonds, and financial statements [Definitions](index=5&type=section&id=Definitions) This section defines key terms used in the report, including company names, currency units, and the reporting period from January 1 to June 30, 2025 - The 'Reporting Period' refers to January 1, 2025, to June 30, 2025[15](index=15&type=chunk) [Section II Company Profile and Key Financial Indicators](index=6&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section presents the company's fundamental information, contact details, and a summary of its key accounting data and financial performance for the reporting period [I. Company Profile](index=6&type=section&id=I.%20Company%20Profile) This section provides fundamental company information, including stock ticker, code, listing exchange, company names, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Anche Testing | | Stock Code | 300572 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Shenzhen Anche Testing Co., Ltd. | | Legal Representative | He Xianning | [II. Contact Persons and Information](index=6&type=section&id=II.%20Contact%20Persons%20and%20Information) This section provides contact details for the company's Board Secretary and Securities Affairs Representative, including names, addresses, and communication channels Company Contact Information | Position | Name | Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Li Yunbin | 35th Floor, United Headquarters Building, High-tech Park, No. 63 Xuefu Road, Nanshan District, Shenzhen | 0755-86182392 | 0755-86182379 | ir@anche.cn | | Securities Affairs Representative | Xue Qingwen | 35th Floor, United Headquarters Building, High-tech Park, No. 63 Xuefu Road, Nanshan District, Shenzhen | 0755-86182392 | 0755-86182379 | ir@anche.cn | [III. Other Information](index=6&type=section&id=III.%20Other%20Information) The company's registered address, office address, contact details, and registration status remained unchanged during the reporting period - The company's registered address, office address, postal code, website, and email remained unchanged during the reporting period[19](index=19&type=chunk) - Information disclosure and archiving locations remained unchanged during the reporting period[20](index=20&type=chunk) - The company's registration status remained unchanged during the reporting period[21](index=21&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=7&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the period, operating revenue slightly increased, net loss attributable to shareholders narrowed, operating cash flow significantly turned positive, and total assets and net assets remained stable Key Accounting Data and Financial Indicators (Current Reporting Period vs. Prior Year Period) | Item | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 219,875,680.24 | 219,222,653.58 | 0.30% | | Net Profit Attributable to Shareholders of Listed Company | -14,479,040.16 | -15,090,177.28 | 4.05% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) | -20,316,193.82 | -22,501,858.55 | 9.71% | | Net Cash Flow from Operating Activities | 10,392,650.09 | -17,275,316.09 | 160.16% | | Basic Earnings Per Share (Yuan/share) | -0.08 | -0.07 | -14.29% | | Diluted Earnings Per Share (Yuan/share) | -0.08 | -0.07 | -14.29% | | Weighted Average Return on Net Assets | -0.83% | -0.75% | -0.08% | | **Item** | **End of Current Reporting Period (Yuan)** | **End of Prior Year (Yuan)** | **Change (%)** | | Total Assets | 2,532,445,496.56 | 2,530,154,400.51 | 0.09% | | Net Assets Attributable to Shareholders of Listed Company | 1,777,989,358.23 | 1,792,521,501.68 | -0.81% | [V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=7&type=section&id=V.%20Differences%20in%20Accounting%20Data%20Under%20Domestic%20and%20Overseas%20Accounting%20Standards) During the reporting period, there were no differences in net profit and net assets between financial reports prepared under international or overseas accounting standards and Chinese accounting standards - The company's financial reports for the current period showed no differences in net profit and net assets when compared between International Accounting Standards and Chinese Accounting Standards[23](index=23&type=chunk) - The company's financial reports for the current period showed no differences in net profit and net assets when compared between overseas accounting standards and Chinese Accounting Standards[24](index=24&type=chunk) [VI. Non-recurring Gains and Losses Items and Amounts](index=7&type=section&id=VI.%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Total non-recurring gains and losses for the period were **5,837,153.66 Yuan**, primarily from entrusted investments, government grants, and reversal of impairment provisions, with VAT refunds classified as recurring Non-recurring Gains and Losses Items and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Non-current asset disposal gains and losses | 141,670.87 | | Government grants recognized in profit or loss for the current period (excluding those with continuous influence) | 1,576,554.44 | | Fair value change gains and losses and disposal gains and losses from financial assets and financial liabilities held by non-financial enterprises | -53,116.86 | | Gains and losses from entrusted investments or asset management | 4,229,673.03 | | Reversal of impairment provisions for accounts receivable subject to individual impairment testing | 961,849.54 | | Debt restructuring gains and losses | 59,423.70 | | Other non-operating income and expenses apart from the above | -1,038,546.16 | | Less: Income tax impact | 59,548.06 | | Impact on minority interests (after tax) | -19,193.16 | | **Total** | **5,837,153.66** | - The company classified VAT refunds received (**546,533.60 Yuan**) as recurring gains and losses, as they are closely related to normal business operations and comply with national policies[27](index=27&type=chunk) [Section III Management Discussion and Analysis](index=9&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's main business, core competencies, financial performance, investment activities, and risk management strategies during the reporting period [I. Main Business Activities During the Reporting Period](index=9&type=section&id=I.%20Main%20Business%20Activities%20During%20the%20Reporting%20Period) The company, a specialized instrument manufacturer, aims to be a comprehensive transportation testing solution provider and smart inspection station operator, navigating policy-driven market shifts with customized products and R&D [(I) Industry Overview During the Reporting Period](index=9&type=section&id=%28I%29%20Industry%20Overview%20During%20the%20Reporting%20Period) The specialized instrument manufacturing industry, particularly vehicle inspection, faces short-term declines due to relaxed policies but anticipates long-term growth from increasing vehicle ownership, aging fleets, and stricter environmental regulations - The motor vehicle inspection industry experienced a short-term decline in inspection frequency and volume, intensifying market competition, due to relaxed inspection cycle policies in 2020 and 2022, and the 'car trade-in' subsidy policy in 2024[30](index=30&type=chunk)[34](index=34&type=chunk) - As of the end of June 2025, national motor vehicle ownership reached **460 million units**, including **359 million automobiles** and **36.89 million new energy vehicles**, with **5.622 million new energy vehicles registered in the first half**, a **27.86% year-on-year increase**[30](index=30&type=chunk)[32](index=32&type=chunk) - Stricter environmental policies and the gradual improvement of new energy vehicle inspection standards, such as the 'New Energy Vehicle Operational Safety Inspection Regulations' implemented in March 2025, will drive increased demand for inspection equipment and technological upgrades[31](index=31&type=chunk)[32](index=32&type=chunk) [(II) Company's Main Business During the Reporting Period](index=10&type=section&id=%28II%29%20Company%27s%20Main%20Business%20During%20the%20Reporting%20Period) The company provides comprehensive transportation testing equipment and smart inspection station operation services, covering various vehicle inspections and regulatory solutions for government, businesses, and end-users through its "Matizhijian" SaaS platform - The company offers comprehensive pan-transportation testing equipment and system solutions, covering motor vehicle safety inspection, environmental inspection, new energy vehicle testing, smart driver's license examination and training, exhaust remote sensing monitoring, and highway overload control[36](index=36&type=chunk) - As a new-generation smart inspection station operator, the company provides full-chain smart inspection services, including site management, order review, digital marketing, data analysis, and customer service, through its 'Matizhijian' SaaS platform[37](index=37&type=chunk) [(III) Business Model](index=10&type=section&id=%28III%29%20Business%20Model) The company operates with a customized product model for system design, production, and maintenance, alongside a standardized, branded chain operation model for its inspection stations - The product business model is customized, offering system design, production, installation, debugging, technical guidance, and maintenance services[38](index=38&type=chunk) - The operation service business model is a group-based chain operation, achieving branded, standardized, regulated, and unified management[40](index=40&type=chunk) [(IV) Company's Industry Position](index=11&type=section&id=%28IV%29%20Company%27s%20Industry%20Position) As a national high-tech enterprise, the company holds a leading position in motor vehicle inspection systems, demonstrated by its participation in standard-setting, industry awards, and innovative AI-driven smart supervision technologies - The company is a national high-tech enterprise, actively participating in the leading formulation or revision of multiple national, regional, or industry standards[41](index=41&type=chunk) - The company received the '2024 Mechanical Industry Science and Technology Award' and the 'AloT New Dimension Award · Smart Leadership List', and was recognized as one of the 'Top 30 Chinese Automotive Maintenance Equipment Manufacturers in 2024'[41](index=41&type=chunk) - Leveraging **12 core technologies** including AI visual recognition, multi-source data fusion, and blockchain notarization, the company has built a smart supervision model of 'machine preliminary review - expert re-examination - cloud archiving'[41](index=41&type=chunk) [(V) Key Performance Drivers](index=11&type=section&id=%28V%29%20Key%20Performance%20Drivers) Operating revenue grew by **0.30%** and net loss attributable to parent company narrowed by **4.05%**, despite reduced inspection demand from policy changes, with stricter environmental regulations and increasing vehicle ownership expected to drive future growth Company Performance Overview During the Reporting Period | Indicator | Amount (10,000 Yuan) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 21,987.57 | 0.30% | | Net Profit Attributable to Shareholders of Listed Company | -1,447.90 | 4.05% | | Net Assets Attributable to Shareholders of Listed Company | 177,798.94 | -0.81% | | Weighted Average Return on Net Assets | -0.83% | -0.08% | - Performance continued to be impacted by the combined effects of relaxed motor vehicle inspection policies and 'car trade-in' subsidy policies, leading to a significant reduction in inspection demand[44](index=44&type=chunk) - Policies issued by the Ministry of Ecology and Environment and other departments in 2025, such as the 'Opinions on Criteria for Determining Serious Circumstances of Motor Vehicle Emission Inspection Agencies Forging Emission Inspection Results or Issuing False Emission Inspection Reports' and the 'Opinions on Further Optimizing Motor Vehicle Environmental Supervision', increased market demand for motor vehicle inspection systems[44](index=44&type=chunk) [II. Analysis of Core Competencies](index=11&type=section&id=II.%20Analysis%20of%20Core%20Competencies) The company has built significant core competencies through its comprehensive product system, full-chain manufacturing, leading technology, extensive service network, strong R&D team, rich customer resources, and brand value, offering full-lifecycle vehicle inspection solutions [(I) Advantages of a Comprehensive Product System](index=11&type=section&id=%28I%29%20Advantages%20of%20a%20Comprehensive%20Product%20System) With years of expertise in motor vehicle inspection, the company offers comprehensive, full-lifecycle vehicle inspection solutions and industry-level networked regulatory platforms for government, businesses, and individual car owners - The company's product line comprehensively covers the three core customer segments: G-end (government), B-end (business), and C-end (consumer), providing integrated vehicle inspection solutions across the entire lifecycle and all application scenarios[45](index=45&type=chunk)[46](index=46&type=chunk) [(II) Advantages of Full-Chain Independent Manufacturing](index=12&type=section&id=%28II%29%20Advantages%20of%20Full-Chain%20Independent%20Manufacturing) The company's **210-mu** smart manufacturing base enables full-chain independent R&D and production of testing platforms, ensuring end-to-end quality control and enhancing brand influence, especially in new energy vehicle testing - The company owns a **210-mu** smart manufacturing base, possessing full-chain independent R&D, design, and specialized production capabilities for testing platforms[47](index=47&type=chunk) - Through full-process quality control and manufacturing process optimization, the company ensures product control throughout its lifecycle and holds advantages in applying core technologies for new energy vehicle inspection[47](index=47&type=chunk) [(III) Leading Technological Advantages](index=12&type=section&id=%28III%29%20Leading%20Technological%20Advantages) Since 2006, the company has prioritized technological innovation, accumulating **91 patents** and **215 software copyrights** by June 30, 2025, and actively integrating AI into motor vehicle inspection to develop new AI-driven products and services - As of June 30, 2025, the company holds **91 patents**, **215 computer software copyrights**, and numerous non-patented technologies[48](index=48&type=chunk) - The company independently developed a digital and intelligent business management system and is actively exploring the deep integration of artificial intelligence technology into its existing product system to create AI inspection and service products[48](index=48&type=chunk) [(IV) Advantages of a Comprehensive Service Network and Professional Service Capabilities](index=12&type=section&id=%28IV%29%20Advantages%20of%20a%20Comprehensive%20Service%20Network%20and%20Professional%20Service%20Capabilities) The company boasts **32 service outlets** across **31 provincial-level administrative regions**, with thousands of project implementation experiences, offering professional technical services, 24-hour customer support, and modular product design for enhanced maintainability - The company has established **32 service outlets**, covering **31 provincial-level administrative regions** nationwide, with experience in implementing thousands of projects[49](index=49&type=chunk) - A standardized after-sales service information management system and a **24-hour customer service hotline** have been established, and products adopt a standard modular design to enhance maintainability[49](index=49&type=chunk) [(V) Advantages of Core R&D Team and Talent](index=12&type=section&id=%28V%29%20Advantages%20of%20Core%20R%26D%20Team%20and%20Talent) Led by Chairman He Xianning with **over 20 years of experience**, the company's R&D team of over a hundred professionals drives innovation, supported by continuous high investment in talent development and product research to maintain industry leadership - Chairman Mr. He Xianning possesses **over 20 years of R&D management experience** in the inspection industry, leading a team of **over a hundred technical R&D talents**[50](index=50&type=chunk) - The company places high importance on cultivating R&D talent and continuously invests heavily in product R&D to maintain its leading position in the industry[50](index=50&type=chunk) [(VI) Advantages of Customer Resources and Business Scenarios](index=12&type=section&id=%28VI%29%20Advantages%20of%20Customer%20Resources%20and%20Business%20Scenarios) The company holds a leading customer base, strengthens market position through M&A of inspection stations, and leverages strong technical and innovation capabilities to develop proprietary testing equipment and software, creating unique business scenarios for aftermarket expansion - The company serves a leading number of customers in the industry and strengthens its market position by acquiring and merging motor vehicle inspection stations, thereby improving its operational service ecosystem[51](index=51&type=chunk) - Leveraging its technical strength and innovation capabilities, the company develops proprietary inspection equipment and software systems, enhancing inspection efficiency and accuracy, and building a moat for automotive aftermarket development[51](index=51&type=chunk) [(VII) Advantages of Brand Value](index=12&type=section&id=%28VII%29%20Advantages%20of%20Brand%20Value) Aligned with its strategic goals, the company has built a strong industry reputation and high market trust through leading technology and excellent services, evidenced by its re-certification as a national high-tech enterprise and recognition as a "Top 30 Chinese Automotive Maintenance Equipment Manufacturers in 2024" - The company successfully passed the re-evaluation for national high-tech enterprise certification and was once again recognized as a 'Specialized, Refined, Unique, and New' SME in Shenzhen[52](index=52&type=chunk) - The company was honored with the title of 'Top 30 Chinese Automotive Maintenance Equipment Manufacturers in 2024', demonstrating its industry position and brand value advantages[52](index=52&type=chunk) [III. Analysis of Main Business](index=13&type=section&id=III.%20Analysis%20of%20Main%20Business) Operating revenue and cost slightly increased, while financial expenses rose due to reduced interest income, and R&D investment decreased; operating cash flow significantly improved, driven by increased customer bill collections, with varied performance in inspection system and operation services Year-on-Year Changes in Key Financial Data | Item | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 219,875,680.24 | 219,222,653.58 | 0.30% | - | | Operating Cost | 150,812,210.55 | 147,626,314.33 | 2.16% | - | | Selling Expenses | 19,004,231.67 | 19,428,010.88 | -2.18% | - | | Administrative Expenses | 61,141,403.11 | 55,571,668.52 | 10.02% | - | | Financial Expenses | -3,147.31 | -1,611,704.61 | 99.80% | Decrease in bank deposit interest income | | Income Tax Expense | -4,025,791.47 | -3,004,595.63 | -33.99% | Decrease in corporate income tax payable | | R&D Investment | 14,699,601.77 | 21,332,186.89 | -31.09% | Decrease in R&D personnel | | Net Cash Flow from Operating Activities | 10,392,650.09 | -17,275,316.09 | 160.16% | Increase in customer bill collections at maturity | | Net Cash Flow from Investing Activities | 6,029,637.84 | 13,314,762.47 | -54.71% | Reduced use of bank deposits for short-term cash management investments | | Net Cash Flow from Financing Activities | -39,370,481.08 | -54,693,871.67 | 28.02% | - | | Net Increase in Cash and Cash Equivalents | -22,948,193.15 | -58,654,425.29 | 60.88% | Increase in customer bill collections at maturity and increased net cash inflow from share repurchase payments in the prior year | Products or Services Accounting for Over 10% of Revenue | Item | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Profit Margin (%) | Operating Revenue Year-on-Year Change (%) | Operating Cost Year-on-Year Change (%) | Gross Profit Margin Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Motor Vehicle Inspection System | 124,017,082.52 | 76,071,689.54 | 38.66% | 11.06% | 11.83% | -0.42% | | Inspection Operation Services | 81,705,396.87 | 65,725,799.05 | 19.56% | -5.65% | -7.70% | 1.79% | [IV. Analysis of Non-Core Business](index=13&type=section&id=IV.%20Analysis%20of%20Non-Core%20Business) Non-core business income primarily comprised investment income, non-operating income, other income, and asset disposal gains, with investment income negatively impacting total profit by **-32.56%**, while credit impairment losses totaled **-1,806,743.62 Yuan** from various receivables Non-Core Business Items and Amounts | Item | Amount (Yuan) | Proportion of Total Profit (%) | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 6,953,875.65 | -32.56% | Interest income from bank deposit wealth management products, investment income from disposal of long-term equity investments, and investment income from joint ventures and associates | No | | Non-operating Income | 433,245.21 | -2.03% | Penalty income | No | | Non-operating Expenses | 1,471,791.37 | -6.89% | Fines and penalties | No | | Other Income | 2,123,088.04 | -9.94% | VAT software refunds and government subsidies | Yes | | Credit Impairment Loss | -1,806,743.62 | 8.46% | Provision for bad debts on notes receivable, accounts receivable, and other receivables | Yes | | Asset Disposal Income | 141,670.87 | -0.66% | Disposal income from right-of-use assets | No | [V. Analysis of Assets and Liabilities](index=14&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities) At period-end, total assets and net assets attributable to shareholders remained stable, with increases in cash, inventories, construction in progress, and contract liabilities, and decreases in accounts receivable, fixed assets, financial assets held for trading, and lease liabilities; restricted assets totaled **49,488,203.58 Yuan** Significant Changes in Asset Composition (End of Current Reporting Period vs. End of Prior Year) | Item | Amount at End of Current Reporting Period (Yuan) | Proportion of Total Assets (%) | Amount at End of Prior Year (Yuan) | Proportion of Total Assets (%) | Change in Proportion (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 933,472,240.28 | 36.86% | 923,552,003.32 | 36.50% | 0.36% | | Accounts Receivable | 82,195,735.38 | 3.25% | 94,009,745.38 | 3.72% | -0.47% | | Inventories | 250,702,836.84 | 9.90% | 236,914,156.19 | 9.36% | 0.54% | | Construction in Progress | 13,698,900.54 | 0.54% | 9,511,101.62 | 0.38% | 0.16% | | Short-term Borrowings | 10,971,500.00 | 0.43% | 620,000.00 | 0.02% | 0.41% | | Contract Liabilities | 165,384,786.82 | 6.53% | 147,885,339.13 | 5.84% | 0.69% | | Financial Assets Held for Trading | 315,445,878.58 | 12.46% | 323,098,995.44 | 12.77% | -0.31% | Asset Restrictions as of the End of the Reporting Period | Item | Balance at Period-End (Yuan) | | :--- | :--- | | Bank acceptance bill margin | 21,561,147.58 | | Performance bond | 1,177,056.00 | | Time deposit pledge guarantee | 26,750,000.00 | | **Total** | **49,488,203.58** | [VI. Analysis of Investment Status](index=15&type=section&id=VI.%20Analysis%20of%20Investment%20Status) Total investments significantly decreased by **96.17%** year-on-year; financial assets measured at fair value primarily include short-term cash management products and performance compensation receivables; **25.36%** of raised funds were utilized, with some projects suspended or terminated due to policy changes or uncertainty, and wealth management products totaled **886.75 million Yuan** in transactions Overall Investment Amount During the Reporting Period | Investment Amount in Current Reporting Period (Yuan) | Investment Amount in Prior Year Period (Yuan) | Change (%) | | :--- | :--- | :--- | | 1,500,000.00 | 39,145,296.39 | -96.17% | Financial Assets Measured at Fair Value | Asset Category | Initial Investment Cost (Yuan) | Fair Value Change in Current Period (Yuan) | Amount Purchased in Current Period (Yuan) | Amount Sold in Current Period (Yuan) | Cumulative Investment Income (Yuan) | Amount at Period-End (Yuan) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Other (Cash Management Products) | 278,000,000.00 | -53,116.86 | 886,750,000.00 | 894,350,000.00 | 4,229,673.03 | 270,400,000.00 | Proceeds from Public Offering/Own Funds | - As of June 30, 2025, the overall utilization rate of raised funds was **25.36%**, with a remaining balance of **946,512,419.71 Yuan**[66](index=66&type=chunk)[68](index=68&type=chunk) - The 'Chain Motor Vehicle Inspection Station Construction Project' has been suspended due to policy impacts and investment return uncertainties[72](index=72&type=chunk) - The acquisition of 70% equity in Mengyin Jincheng project was terminated due to significant business impact on the target company from macroeconomic conditions[73](index=73&type=chunk) Overview of Wealth Management Products During the Reporting Period | Specific Type | Source of Funds for Wealth Management | Amount of Wealth Management Transactions (10,000 Yuan) | Unmatured Balance (10,000 Yuan) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Proceeds from Public Offering | 88,000 | 27,000 | | Bank Wealth Management Products | Own Funds | 675 | 40 | | **Total** | | **88,675** | **27,040** | [VII. Significant Asset and Equity Sales](index=23&type=section&id=VII.%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[84](index=84&type=chunk) - The company did not sell any significant equity during the reporting period[85](index=85&type=chunk) [VIII. Analysis of Major Holding and Participating Companies](index=23&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) The company had no significant holding or participating company information requiring disclosure during the reporting period - The company had no significant holding or participating company information requiring disclosure during the reporting period[85](index=85&type=chunk) [IX. Structured Entities Controlled by the Company](index=23&type=section&id=IX.%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[86](index=86&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=23&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces multiple risks, including macroeconomic shifts, policy changes in vehicle inspection, market competition, bad debts, M&A integration, and project implementation, which it addresses through strategic adjustments, technological upgrades, and enhanced financial management - The company faces risks from macroeconomic changes and shifts in national mandatory inspection policies and related standards for in-use motor vehicles[86](index=86&type=chunk)[87](index=87&type=chunk)[89](index=89&type=chunk) - The company faces risks of intensified market competition, accounts receivable bad debts, integration risks after investment and M&A, unachievable performance compensation, and goodwill impairment[90](index=90&type=chunk)[91](index=91&type=chunk)[93](index=93&type=chunk) - The company faces implementation risks for the chain motor vehicle inspection station construction project, which has been suspended[94](index=94&type=chunk)[95](index=95&type=chunk) [XI. Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period](index=25&type=section&id=XI.%20Registration%20Form%20for%20Research%2C%20Communication%2C%20Interview%2C%20and%20Other%20Activities%20During%20the%20Reporting%20Period) On May 9, 2025, the company hosted an online performance briefing for individual investors via the Panorama Roadshow platform, discussing its 2024 annual results - On May 9, 2025, the company hosted its 2024 annual performance briefing for individual investors via an online platform[96](index=96&type=chunk) [XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=25&type=section&id=XII.%20Formulation%20and%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) The company has not disclosed whether it has formulated a market value management system or a valuation enhancement plan - The company has not disclosed whether it has formulated a market value management system[97](index=97&type=chunk) - The company has not disclosed a valuation enhancement plan[97](index=97&type=chunk) [XIII. Implementation of 'Quality and Return Dual Enhancement' Action Plan](index=25&type=section&id=XIII.%20Implementation%20of%20%27Quality%20and%20Return%20Dual%20Enhancement%27%20Action%20Plan) The company has not disclosed an announcement regarding its 'Quality and Return Dual Enhancement' action plan - The company has not disclosed an announcement regarding its 'Quality and Return Dual Enhancement' action plan[97](index=97&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=26&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section details the company's governance structure, including changes in key personnel, profit distribution plans, and its commitment to environmental and social responsibilities [I. Changes in Directors, Supervisors, and Senior Management](index=26&type=section&id=I.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period[99](index=99&type=chunk) [II. Profit Distribution and Capital Reserve Conversion to Share Capital in Current Period](index=26&type=section&id=II.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20in%20Current%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[100](index=100&type=chunk) [III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=26&type=section&id=III.%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 implemented during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures implemented during the reporting period[101](index=101&type=chunk) [IV. Environmental Information Disclosure](index=26&type=section&id=IV.%20Environmental%20Information%20Disclosure) The company and its main subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The company and its main subsidiaries are not included in the list of enterprises legally required to disclose environmental information[102](index=102&type=chunk) [V. Social Responsibility](index=26&type=section&id=V.%20Social%20Responsibility) The company actively fulfills its social responsibilities by prioritizing information disclosure, investor relations, employee rights, and continuously improving corporate governance for regulated operations and balanced stakeholder interests - The company strictly adheres to laws, regulations, and rules to disclose information truthfully, accurately, timely, fairly, and completely, with the Board Secretary designated to manage investor relations[103](index=103&type=chunk) - The company adheres to a people-oriented approach, strictly complies with labor laws and regulations, respects and protects employee rights, and legally pays all social insurance and housing provident funds[104](index=104&type=chunk) - The company continuously improves its corporate governance structure in strict accordance with requirements such as the 'Company Law' and 'Securities Law', establishing and perfecting internal management and control systems to enhance standardized operation levels[105](index=105&type=chunk) [Section V Significant Matters](index=27&type=section&id=Section%20V%20Significant%20Matters) This section covers all significant events and transactions during the reporting period, including commitments, related party dealings, litigation, and other material developments [I. Commitments Fulfilled and Overdue Unfulfilled by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period](index=27&type=section&id=I.%20Commitments%20Fulfilled%20and%20Overdue%20Unfulfilled%20by%20Actual%20Controller%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20During%20and%20as%20of%20the%20End%20of%20the%20Reporting%20Period) During the reporting period, there were no commitments fulfilled or overdue unfulfilled by the company's actual controller, shareholders, related parties, acquirers, or the company itself - During the reporting period, there were no commitments fulfilled or overdue unfulfilled by the company's actual controller, shareholders, related parties, acquirers, or the company itself[107](index=107&type=chunk) [II. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties from the Listed Company](index=27&type=section&id=II.%20Non-Operating%20Funds%20Occupied%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties%20from%20the%20Listed%20Company) During the reporting period, there were no instances of non-operating funds being occupied by controlling shareholders or other related parties from the listed company - During the reporting period, there were no instances of non-operating funds being occupied by controlling shareholders or other related parties from the listed company[108](index=108&type=chunk) [III. Irregular External Guarantees](index=27&type=section&id=III.%20Irregular%20External%20Guarantees) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[109](index=109&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=27&type=section&id=IV.%20Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual report was not audited - The company's semi-annual report was not audited[110](index=110&type=chunk) [V. Board of Directors, Supervisory Board, and Audit Committee's Explanation of 'Non-Standard Audit Report' for the Current Period](index=27&type=section&id=V.%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20and%20Audit%20Committee%27s%20Explanation%20of%20%27Non-Standard%20Audit%20Report%27%20for%20the%20Current%20Period) The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[111](index=111&type=chunk) [VI. Board of Directors' Explanation of 'Non-Standard Audit Report' for the Prior Year](index=27&type=section&id=VI.%20Board%20of%20Directors%27%20Explanation%20of%20%27Non-Standard%20Audit%20Report%27%20for%20the%20Prior%20Year) The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[111](index=111&type=chunk) [VII. Bankruptcy and Reorganization Matters](index=27&type=section&id=VII.%20Bankruptcy%20and%20Reorganization%20Matters) The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[111](index=111&type=chunk) [VIII. Litigation Matters](index=27&type=section&id=VIII.%20Litigation%20Matters) The company had no significant litigation, arbitration, or other legal matters during the current reporting period - The company had no significant litigation or arbitration matters during the current reporting period[112](index=112&type=chunk) [IX. Penalties and Rectification](index=28&type=section&id=IX.%20Penalties%20and%20Rectification) The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[113](index=113&type=chunk) [X. Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers](index=28&type=section&id=X.%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholders%2C%20and%20Actual%20Controllers) The company, its controlling shareholders, and actual controllers had no integrity issues during the reporting period - The company, its controlling shareholders, and actual controllers had no integrity issues during the reporting period[114](index=114&type=chunk) [XI. Significant Related Party Transactions](index=28&type=section&id=XI.%20Significant%20Related%20Party%20Transactions) The company had no significant related party transactions during the reporting period, including those related to daily operations, asset/equity acquisitions/disposals, joint external investments, related party debts, or dealings with affiliated financial companies - The company had no related party transactions related to daily operations during the reporting period[114](index=114&type=chunk) - The company had no related party transactions involving asset or equity acquisitions or sales during the reporting period[115](index=115&type=chunk) - The company had no related party transactions involving joint external investments during the reporting period[116](index=116&type=chunk) - There were no related party creditor-debtor relationships during the reporting period[117](index=117&type=chunk) - There were no deposits, loans, credit lines, or other financial transactions between the company and affiliated financial companies, or between the company's controlled financial companies and related parties[118](index=118&type=chunk)[119](index=119&type=chunk) - The company had no other significant related party transactions during the reporting period[120](index=120&type=chunk) [XII. Significant Contracts and Their Performance](index=29&type=section&id=XII.%20Significant%20Contracts%20and%20Their%20Performance) The company had no significant entrustment, contracting, or leasing matters, nor any major guarantees, significant daily operation contracts, or other major contracts during the reporting period - The company had no entrustment situations during the reporting period[121](index=121&type=chunk) - The company had no contracting situations during the reporting period[122](index=122&type=chunk) - The company had no leasing situations during the reporting period[123](index=123&type=chunk) - The company had no significant guarantee situations during the reporting period[124](index=124&type=chunk) - The company had no significant daily operation contracts during the reporting period[125](index=125&type=chunk) - The company had no other significant contracts during the reporting period[126](index=126&type=chunk) [XIII. Explanation of Other Significant Matters](index=29&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) The board approved suspending the "Chain Motor Vehicle Inspection Station Project" and closing the "Acquisition of 70% Equity in Linyi Zhengzhi" project, reallocating surplus funds to working capital; additionally, a supplementary asset purchase agreement was signed, and a potential change in control to no actual controller was disclosed - The company suspended the 'Chain Motor Vehicle Inspection Station Construction Project' to avoid wasting raised funds and ensure their rational use[127](index=127&type=chunk) - The 'Acquisition of 70% Equity in Linyi Zhengzhi' project has been closed, and the remaining raised funds of **40.3318 million Yuan** will permanently supplement working capital[128](index=128&type=chunk)[129](index=129&type=chunk) - The company signed a 'Supplementary Agreement to the Asset Purchase Agreement', clarifying the use of funds in the co-managed account[130](index=130&type=chunk) - Mr. He Xianning, the company's controlling shareholder and actual controller, signed a 'Share Transfer Agreement' with Shanghai Si Rui Technology Co., Ltd., indicating a proposed change in company control, which, if completed, would result in no actual controller instead of Mr. He Xianning[131](index=131&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=30&type=section&id=XIV.%20Significant%20Matters%20of%20Company%20Subsidiaries) The company had no significant subsidiary matters during the reporting period - The company had no significant subsidiary matters during the reporting period[133](index=133&type=chunk) [Section VI Share Changes and Shareholder Information](index=31&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital, securities issuance, shareholder structure, and any shifts in controlling shareholder or actual controller during the reporting period [I. Share Change Status](index=31&type=section&id=I.%20Share%20Change%20Status) The company's total shares remained at **228,988,812**, with restricted shares decreasing by **540** due to executive lock-up release, and Ms. Zhou Nani's restricted shares released at **25% annually** Share Change Status | Item | Quantity Before Change (shares) | Proportion Before Change (%) | Increase/Decrease in This Change (shares) | Quantity After Change (shares) | Proportion After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 45,392,251 | 19.82% | -540 | 45,391,711 | 19.82% | | Of which: Shares held by domestic natural persons | 45,392,251 | 19.82% | -540 | 45,391,711 | 19.82% | | II. Unrestricted Shares | 183,596,561 | 80.18% | 540 | 183,597,101 | 80.18% | | Of which: RMB ordinary shares | 183,596,561 | 80.18% | 540 | 183,597,101 | 80.18% | | III. Total Shares | 228,988,812 | 100.00% | 0 | 228,988,812 | 100.00% | - Ms. Zhou Nani's restricted shares were released at a rate of **25% annually** based on her original tenure[136](index=136&type=chunk)[139](index=139&type=chunk) [II. Securities Issuance and Listing](index=32&type=section&id=II.%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[140](index=140&type=chunk) [III. Number of Shareholders and Shareholding Status](index=32&type=section&id=III.%20Number%20of%20Shareholders%20and%20Shareholding%20Status) As of period-end, the company had **12,281** common shareholders; controlling shareholder Mr. He Xianning held **25.72%** of shares, with **44,167,264** restricted shares; J.P.Morgan Securities PLC was the second-largest shareholder at **2.89%**, and the company's buyback account held **3,217,100 shares** - The total number of common shareholders at the end of the reporting period was **12,281**[141](index=141&type=chunk) Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion (%) | Number of Shares Held at Period-End (shares) | Increase/Decrease During Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | He Xianning | Domestic Natural Person | 25.72% | 58,889,686 | 0 | 44,167,264 | 14,722,422 | | J.P.Morgan Securities PLC － Own Funds | Overseas Legal Person | 2.89% | 6,614,747 | 6,603,966 | 0 | 6,614,747 | | Shenzhen Hengbang Zhaofeng Private Securities Fund Management Co., Ltd. － Hengbang Hongyuan No. 15 Private Securities Investment Fund | Other | 1.78% | 4,066,476 | -513,300 | 0 | 4,066,476 | | Zhuang Li | Domestic Natural Person | 1.50% | 3,437,700 | -40,000 | 0 | 3,437,700 | | Dai Weifei | Domestic Natural Person | 1.14% | 2,601,600 | 2,601,600 | 0 | 2,601,600 | | Ye Yanqiao | Domestic Natural Person | 1.05% | 2,406,800 | -127,200 | 0 | 2,406,800 | | Cinda Kunpeng (Shenzhen) Equity Investment Management Co., Ltd. － Shenzhen Xinshi Xinxing Industrial M&A Equity Investment Fund Partnership (Limited Partnership) | Other | 0.87% | 2,000,000 | 0 | 0 | 2,000,000 | | Zhao Hui | Domestic Natural Person | 0.71% | 1,630,800 | 56,800 | 0 | 1,630,800 | | Li Huamin | Domestic Natural Person | 0.67% | 1,540,600 | -424,700 | 0 | 1,540,600 | | Fan Junwei | Domestic Natural Person | 0.66% | 1,505,800 | 434,800 | 0 | 1,505,800 | - As of the end of the reporting period, the company's dedicated share repurchase account held **3,217,100 shares**, accounting for **1.4049%** of the company's total share capital[143](index=143&type=chunk) [IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=34&type=section&id=IV.%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[144](index=144&type=chunk) [V. Changes in Controlling Shareholder or Actual Controller](index=34&type=section&id=V.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) The company's controlling shareholder and actual controller remained unchanged during the reporting period, though a post-period change in control was disclosed under "Significant Matters" - The company's controlling shareholder did not change during the reporting period[145](index=145&type=chunk) - The company's actual controller did not change during the reporting period[145](index=145&type=chunk) [VI. Preferred Share Information](index=34&type=section&id=VI.%20Preferred%20Share%20Information) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[146](index=146&type=chunk) [Section VII Bond-Related Information](index=35&type=section&id=Section%20VII%20Bond-Related%20Information) This section confirms that the company had no bond-related activities or outstanding bonds during the reporting period [Bond-Related Information](index=35&type=section&id=Bond-Related%20Information) The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[148](index=148&type=chunk) [Section VIII Financial Report](index=36&type=section&id=Section%20VIII%20Financial%20Report) This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed notes on accounting policies, taxation, and other significant financial items [I. Audit Report](index=36&type=section&id=I.%20Audit%20Report) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[150](index=150&type=chunk) [II. Financial Statements](index=36&type=section&id=II.%20Financial%20Statements) This section presents the company's 2025 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity, reflecting financial position, operating results, and cash flows - Financial statements include consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity[151](index=151&type=chunk) [1. Consolidated Balance Sheet](index=36&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of June 30, 2025, consolidated total assets were **2.53 billion Yuan**, total liabilities **695.71 million Yuan**, and total owner's equity **1.84 billion Yuan**, with cash, financial assets held for trading, long-term equity investments, fixed assets, goodwill, contract liabilities, and accounts payable being key components Key Data from Consolidated Balance Sheet (Period-End Balance) | Item | Amount (Yuan) | | :--- | :--- | | **Total Assets** | **2,532,445,496.56** | | Total Current Assets | 1,687,991,883.97 | | Total Non-current Assets | 844,453,612.59 | | **Total Liabilities** | **695,714,220.82** | | Total Current Liabilities | 517,426,291.52 | | Total Non-current Liabilities | 178,287,929.30 | | **Total Owner's Equity** | **1,836,731,275.74** | | Total Owner's Equity Attributable to Parent Company | 1,777,989,358.23 | | Minority Interests | 58,741,917.51 | [2. Parent Company Balance Sheet](index=39&type=section&id=2.%20Parent%20Company%20Balance%20Sheet) As of June 30, 2025, parent company total assets were **2.20 billion Yuan**, total liabilities **381.95 million Yuan**, and total owner's equity **1.82 billion Yuan**, with cash, financial assets held for trading, long-term equity investments, notes payable, accounts payable, and contract liabilities being key components Key Data from Parent Company Balance Sheet (Period-End Balance) | Item | Amount (Yuan) | | :--- | :--- | | **Total Assets** | **2,202,205,102.78** | | Total Current Assets | 1,667,307,877.50 | | Total Non-current Assets | 534,897,225.28 | | **Total Liabilities** | **381,953,018.78** | | Total Current Liabilities | 375,046,982.61 | | Total Non-current Liabilities | 6,906,036.17 | | **Total Owner's Equity** | **1,820,252,084.00** | [3. Consolidated Income Statement](index=41&type=section&id=3.%20Consolidated%20Income%20Statement) For H1 2025, consolidated operating revenue was **219.88 million Yuan**, total operating cost **247.55 million Yuan**, net profit **-17.33 million Yuan**, and net profit attributable to parent company shareholders **-14.48 million Yuan**, with investment income and credit impairment losses significantly impacting total profit Key Data from Consolidated Income Statement (H1 2025) | Item | Amount (Yuan) | | :--- | :--- | | Total Operating Revenue | 219,875,680.24 | | Total Operating Cost | 247,554,340.99 | | Operating Profit | -20,319,886.67 | | Total Profit | -21,358,432.83 | | Net Profit | -17,332,641.36 | | Net Profit Attributable to Parent Company Shareholders | -14,479,040.16 | | Minority Interests | -2,853,601.20 | | Basic Earnings Per Share | -0.08 | | Diluted Earnings Per Share | -0.08 | [4. Parent Company Income Statement](index=43&type=section&id=4.%20Parent%20Company%20Income%20Statement) For H1 2025, parent company operating revenue was **123.30 million Yuan**, with a net profit of **-10.76 million Yuan**, where investment income significantly contributed to profit, and credit impairment losses decreased Key Data from Parent Company Income Statement (H1 2025) | Item | Amount (Yuan) | | :--- | :--- | | Operating Revenue | 123,297,891.75 | | Operating Profit | -13,523,987.61 | | Total Profit | -14,352,931.51 | | Net Profit | -10,760,002.06 | [5. Consolidated Cash Flow Statement](index=45&type=section&id=5.%20Consolidated%20Cash%20Flow%20Statement) For H1 2025, net cash flow from operating activities significantly improved to **10.39 million Yuan**, net cash flow from investing activities was **6.03 million Yuan**, net cash flow from financing activities was **-39.37 million Yuan**, and the net increase in cash and cash equivalents was **-22.95 million Yuan** Key Data from Consolidated Cash Flow Statement (H1 2025) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 10,392,650.09 | | Net Cash Flow from Investing Activities | 6,029,637.84 | | Net Cash Flow from Financing Activities | -39,370,481.08 | | Net Increase in Cash and Cash Equivalents | -22,948,193.15 | | Cash and Cash Equivalents at Period-End | 883,984,036.70 | [6. Parent Company Cash Flow Statement](index=46&type=section&id=6.%20Parent%20Company%20Cash%20Flow%20Statement) For H1 2025, parent company net cash flow from operating activities was **-14.41 million Yuan**, from investing activities **3.23 million Yuan**, from financing activities **-2.36 million Yuan**, and the net increase in cash and cash equivalents was **-13.53 million Yuan** Key Data from Parent Company Cash Flow Statement (H1 2025) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -14,405,698.41 | | Net Cash Flow from Investing Activities | 3,229,363.53 | | Net Cash Flow from Financing Activities | -2,357,696.53 | | Net Increase in Cash and Cash Equivalents | -13,534,031.41 | | Cash and Cash Equivalents at Period-End | 720,935,110.72 | [7. Consolidated Statement of Changes in Equity](index=47&type=section&id=7.%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement details the consolidated changes in equity for H1 2025 and H1 2024, covering opening balances, period-end balances, and changes in share capital, capital reserves, treasury stock, special reserves, surplus reserves, retained earnings, and minority interests - The consolidated statement of changes in equity reflects changes in share capital, capital reserves, treasury stock, special reserves, surplus reserves, retained earnings, and minority interests during the reporting period[172](index=172&type=chunk)[176](index=176&type=chunk) [8. Parent Company Statement of Changes in Equity](index=52&type=section&id=8.%20Parent%20Company%20Statement%20of%20Changes%20in%20Equity) This statement details the parent company's changes in equity for H1 2025 and H1 2024, covering opening balances, period-end balances, and changes in share capital, capital reserves, treasury stock, surplus reserves, and retained earnings - The parent company statement of changes in equity reflects changes in share capital, capital reserves, treasury stock, surplus reserves, and retained earnings during the reporting period[180](index=180&type=chunk)[183](index=183&type=chunk) [III. Company Basic Information](index=55&type=section&id=III.%20Company%20Basic%20Information) Formerly Shenzhen Anche Testing Technology Co., Ltd., the company listed on the Shenzhen Stock Exchange on December 5, 2016, with **228,988,812 shares** and **228,988,812.00 Yuan** in registered capital, controlled by He Xianning, specializing in motor vehicle inspection systems and services, and consolidating **111 subsidiaries** - The company was listed on the Shenzhen Stock Exchange on December 5, 2016, with a total share capital of **228,988,812 shares** as of June 30, 2025, and Mr. He Xianning as the actual controller[187](index=187&type=chunk) - The company's main business is in the motor vehicle inspection system industry, with primary products including motor vehicle inspection systems, networked inspection industry regulatory systems, and motor vehicle inspection services[188](index=188&type=chunk) - A total of **111 subsidiaries** were included in the scope of consolidation for this period, an increase of **6** and a decrease of **5** compared to the previous period[189](index=189&type=chunk) [IV. Basis of Financial Statement Preparation](index=56&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) The financial statements are prepared in accordance with MOF enterprise accounting standards and CSRC regulations, based on the going concern assumption, with no significant doubts about the company's ability to continue as a going concern - The financial statements are prepared in accordance with Enterprise Accounting Standards and relevant regulations of the China Securities Regulatory Commission[191](index=191&type=chunk) - The financial statements are prepared on a going concern basis, and no significant doubts about the ability to continue as a going concern have been identified[192](index=192&type=chunk) [V. Significant Accounting Policies and Estimates](index=56&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's significant accounting policies and estimates, including business combinations, consolidated financial statements, financial instruments, bad debt provisions, inventories, fixed asset depreciation, intangible asset amortization, and revenue recognition, affirming compliance with enterprise accounting standards - The company's financial statements comply with the requirements of Enterprise Accounting Standards, truthfully and completely reflecting the company's financial position, operating results, cash flows, and other relevant information for the reporting period[194](index=194&type=chunk) - The company has formulated specific accounting policies and estimates for transactions and events such as bad debt provisions for accounts receivable, inventory impairment provisions, fixed asset depreciation, intangible asset amortization, and revenue recognition, based on its actual production and operating characteristics[193](index=193&type=chunk) - The company classifies financial assets into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss, and accrues expected credit losses based on changes in credit risk[220](index=220&type=chunk)[237](index=237&type=chunk) [VI. Taxation](index=80&type=section&id=VI.%20Taxation) The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, education surcharges, and property tax, with varying rates; it benefits from VAT refunds for software products, a **15%** high-tech enterprise income tax rate, and some subsidiaries enjoy **20%** or local exemption rates for small low-profit enterprises Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of goods, taxable sales and services income | 13%, 6%, 5%, 1% | | Urban Maintenance and Construction Tax | Amount of turnover tax actually paid | 7% | | Corporate Income Tax | Taxable income | 15%, 25%, 20% | | Education Surcharge | Amount of turnover tax actually paid | 3%, 2% | | Property Tax | 70% of original property value (or rental income) as tax base | 1.2% | - The company enjoys a VAT immediate refund policy for software products, where the portion of actual tax burden exceeding **3%** is immediately refunded[329](index=329&type=chunk) - The company and Tangshan Zhongding, as high-tech enterprises, pay corporate income tax at a rate of **15%** for the 2024-2026 period[330](index=330&type=chunk) - Some subsidiaries enjoy preferential corporate income tax policies for small low-profit enterprises, paying at a **20%** rate, or benefiting from a local exemption policy in Guangxi[330](index=330&type=chunk)[331](index=331&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=83&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section details period-end and beginning balances and changes for all major consolidated financial statement items, including cash, receivables, inventories, investments, fixed assets, goodwill, deferred taxes, various liabilities, equity components, revenues, costs, expenses, and other income, with restricted cash totaling **49,488,203.58 Yuan** and goodwill at **445,365,641.52 Yuan** before impairment Details of Restricted Cash and Cash Equivalents | Item | Balance at Period-End (Yuan) | Balance at Period-Beginning (Yuan) | | :--- | :--- | :--- | | Bank acceptance bill margin | 21,561,147.58 | 15,442,717.47 | | Performance bond | 1,177,056.00 | 1,177,056.00 | | Time deposit pledge guarantee | 26,750,000.00 | - | | **Total** | **49,488,203.58** | **16,619,773.47** | - Accounts receivable at period-end had a book balance of **118,308,506.77 Yuan**, with a bad debt provision of **36,112,771.39 Yuan**, including **8,534,276.45 Yuan** for individually assessed bad debts[350](index=350&type=chunk)[352](index=352&type=chunk) - Goodwill had a book original value of **445,365,641.52 Yuan** at period-end, with a goodwill impairment provision of **262,576,818.64 Yuan**[430](index=430&type=chunk)[432](index=432&type=chunk) - During the reporting period, the main components of operating revenue and operating cost were motor vehicle inspection systems and inspection operation services[512](index=512&type=chunk) [VIII. Research and Development Expenses](index=123&type=section&id=VIII.%20Research%20and%20Development%20Expenses) This section does not provide detailed capitalization or expensing of R&D expenditures, only mentioning eligible capitalized R&D projects and significant externally acquired in-progress projects - This section does not provide specific details on the capitalization or expensing of R&D expenditures[563](index=563&type=chunk) [IX. Changes in Consolidation Scope](index=123&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) The company's consolidation scope changed, adding Xinxing Fuguo through a non-common control business combination, establishing four new subsidiaries (Liujing Linghang, Chemao Chefu, Bengbu Zhongyang, Liujing Anche), deregistering three subsidiaries (Xuchang Anche, Lingchuan Yian, Jingzhou Ansheng), and disposing of Liuzhou Anche and Beijing Anche Equity Service Co - During this period, Xinxing Fuguo was added as a subsidiary through a non-common control business combination, with a fair value share of net assets acquired on the purchase date of **-438,059.09 Yuan**, resulting in goodwill of **438,059.09 Yuan**[559](index=559&type=chunk)[560](index=560&type=chunk)[564](index=564&type=chunk) - Four new subsidiaries, Liujing Linghang, Chemao Chefu, Bengbu Zhongyang, and Liujing Anche, were established in this period[571](index=571&type=chunk) - Three subsidiaries, Xuchang Anche, Lingchuan Yian, and Jingzhou Ansheng, were reduced in this period[571](index=571&type=chunk) - The company disposed of its subsidiaries Liuzho

Core Viewpoint - The professional services sector experienced a slight increase of 0.27% on August 19, with Guangdong Jianke leading the gains, while the overall market indices showed minor declines [1] Group 1: Market Performance - The Shanghai Composite Index closed at 3727.29, down 0.02% [1] - The Shenzhen Component Index closed at 11821.63, down 0.12% [1] Group 2: Individual Stock Performance - Guangdong Jianke (301632) closed at 44.36, up 19.99% with a trading volume of 458,500 shares and a transaction value of 1.903 billion yuan [1] - Lingdian Youshu (301169) closed at 48.16, up 3.21% with a trading volume of 31,500 shares and a transaction value of 151 million yuan [1] - Jianyan Institute (603183) closed at 4.58, up 3.15% with a trading volume of 151,000 shares and a transaction value of 6.83084 million yuan [1] - Anbang Guard (603373) closed at 56.03, up 2.08% with a trading volume of 37,500 shares and a transaction value of 207 million yuan [1] - Zhongjin Fuzhao (300962) closed at 18.34, up 1.78% with a trading volume of 82,700 shares and a transaction value of 151 million yuan [1] - Zhonggang Tianyuan (002057) closed at 10.47, up 1.75% with a trading volume of 460,100 shares and a transaction value of 478 million yuan [1] - Kaipu Testing (300008) closed at 23.01, up 1.50% with a trading volume of 20,500 shares and a transaction value of 4.67427 million yuan [1] - Anche Testing (300572) closed at 26.25, up 1.12% with a trading volume of 159,800 shares and a transaction value of 417 million yuan [1] - Miao Conference (300795) closed at 15.49, up 0.58% with a trading volume of 31,100 shares and a transaction value of 4.80736 million yuan [1] - Yuanjian Group (603060) closed at 7.17, up 0.56% with a trading volume of 69,100 shares and a transaction value of 4.92956 million yuan [1] Group 3: Capital Flow - The professional services sector saw a net inflow of 250 million yuan from institutional investors, while retail investors experienced a net inflow of 42.7344 million yuan [1] - However, there was a net outflow of 293 million yuan from speculative funds [1]

Group 1: Core Insights - The recent surge in the stock price of A-share company, Aowei New Materials, is attributed to the acquisition of its controlling stake by Zhiyuan Robotics, marking it as the "king of gains" with over 800% increase [1] - A notable reverse acquisition case involves Xirui Technology, which is in the process of an IPO, acquiring the controlling stake of Anche Detection, showcasing a rare dual-track asset securitization approach in the current A-share market [1][4] - Xirui Technology's acquisition strategy is highlighted as a "textbook operation," achieving control of a company valued over 6 billion yuan for only 322 million yuan through a combination of equity acquisition and voting rights delegation [1][3] Group 2: Financial Performance - An investor focus on performance is evident as Anche Detection has reported continuous losses since 2022, raising concerns about whether Xirui Technology can improve its financial situation post-acquisition [1][5] - Anche Detection's revenue figures from 2022 to 2024 show stagnation, with revenues of 448 million yuan, 462 million yuan, and 448 million yuan, while net losses have increased significantly [5] - Xirui Technology, on the other hand, has shown revenue growth from 489 million yuan in 2022 to 846 million yuan in 2024, but it only turned profitable in 2024 after previous losses [6] Group 3: Strategic Implications - The acquisition allows Xirui Technology to leverage its strengths in investment management and industry planning to enhance Anche Detection's operational efficiency and profitability [7] - Potential synergies between Xirui Technology's sensor applications and Anche Detection's vehicle inspection services could provide new business opportunities to help the latter recover from losses [7] - Xirui Technology's diverse shareholder base, including state-owned enterprises and well-known investment institutions, may offer significant support to Anche Detection post-acquisition [7]

查看更多考评等级 从学历分布来看，博士、硕士、本科、大专分别为1人、15人、10人及1人，对应平均薪酬分别为60.91万元、72.96万元、72.05万元及46.91万 元。天纺标吕刚为博士学历，2024年薪酬为60.91万元。中金辐照杨先刚为大专学历，2024年薪酬为46.91万元。 从违规情况来看，行业内共有3名董秘在2024-2025年收到过警示函、公开通报或内部通报的情况。 专题：专题|2024年度A股董秘数据报告：1144位董秘年薪超百万 占比超21% 董秘作为连接投资者与上市公司的"桥梁"，在上市公司资本运作中发挥着关键作用。新浪财经《2024年度A股董秘数据报告》显示，2024年 A股上市公司董秘薪酬合计达40.86亿元，平均年薪75.43万元。 分行业来看，社会服务-专业服务行业（申万二级行业）上市公司董秘2024年薪酬平均数约为71.21万元。其中薪酬最高为外服控股朱海元， 2024年薪酬高达122.78万元；薪酬最低为实朴检测叶琰，2024年薪酬为25.5万元（统计剔除了未完整领取2024年全年薪酬的董秘）。从整体 薪酬分布来看，薪酬在从整体薪酬分布来看，薪酬在50-100万元人数最多，共 ...

Summary of Key Points Core Viewpoint - The 2024 A-share Secretary Data Report indicates that the total salary of secretaries in A-share listed companies reached 4.086 billion yuan, with an average annual salary of 754,300 yuan, highlighting the critical role of secretaries as a bridge between investors and companies [1]. Salary Overview - The average salary of secretaries in the social services-professional services sector is approximately 712,100 yuan, with the highest salary being 1,227,800 yuan and the lowest at 255,000 yuan [1]. - The overall salary distribution shows that the majority of secretaries (70%) earn between 500,000 and 1,000,000 yuan [1]. Salary Changes - The average salary in 2024 decreased by 34,600 yuan compared to 2023, representing a decline of 4% [3]. - Notably, the salary of Yao Zongxian from Miao Conference dropped from 587,200 yuan in 2023 to 362,300 yuan in 2024, marking a reduction of 224,900 yuan, the largest decrease in both amount and percentage at 38% [3]. Age Distribution - The average age of secretaries is approximately 46.33 years, with the majority (67%) aged between 40 and 49 [3]. - The oldest secretary is 60 years old, earning 302,500 yuan, while the youngest is 37 years old, earning 600,000 yuan [3]. Educational Background - The educational distribution includes 1 PhD, 15 Master's, 10 Bachelor's, and 1 Associate degree holders, with average salaries of 609,100 yuan, 729,600 yuan, 720,500 yuan, and 469,100 yuan respectively [5]. - The highest salary among PhD holders is 609,100 yuan, while the lowest among Associate degree holders is 469,100 yuan [5]. Compliance Issues - Three secretaries received warnings or public notifications for violations during 2024-2025 [7]. - For instance, Li Yunbin from Anche Detection received two warnings for insufficient impairment basis for goodwill and inaccurate performance forecast disclosures [8].

Core Insights - The report highlights the significant role of company secretaries (董秘) as a bridge between investors and listed companies, emphasizing their importance in capital operations within the A-share market [1] Salary Overview - In 2024, the total salary for A-share listed company secretaries reached 4.086 billion yuan, with an average annual salary of 754,300 yuan [1] - The average salary for company secretaries in the social services-professional services sector is approximately 712,100 yuan, with the highest salary being 1,227,800 yuan and the lowest at 255,000 yuan [1] Salary Changes - The average salary in 2024 decreased by 34,600 yuan compared to 2023, representing a decline of 4% [3] - Notably, the salary of Yao Zongxian from Miao Conference dropped from 587,200 yuan in 2023 to 362,300 yuan in 2024, marking a reduction of 224,900 yuan, the largest decrease in both amount and percentage at 38% [3] Age Distribution - The average age of company secretaries is approximately 46.33 years, with the majority (67%) aged between 40 and 49 [3] - The oldest company secretary is 60 years old, earning 302,500 yuan, while the youngest is 37 years old, earning 600,000 yuan [3] Educational Background - The educational distribution of company secretaries includes 1 PhD, 15 Master's degrees, 10 Bachelor's degrees, and 1 Associate degree, with average salaries of 609,100 yuan, 729,600 yuan, 720,500 yuan, and 469,100 yuan respectively [5] - The highest salary among PhD holders is 609,100 yuan, while the lowest among Associate degree holders is 469,100 yuan [5] Compliance Issues - Three company secretaries received warnings, public notifications, or internal communications regarding compliance issues for the 2024-2025 period [7] - For instance, Li Yunbin from Anche Detection received two warnings for insufficient impairment basis for goodwill and inaccurate performance forecast disclosures [8]

Core Insights - The report highlights the significant role of company secretaries (董秘) as a bridge between investors and listed companies, emphasizing their importance in capital operations within the A-share market [1] Salary Overview - In 2024, the total salary for A-share listed company secretaries reached 4.086 billion yuan, with an average annual salary of 754,300 yuan [1] - The average salary for company secretaries in the social services-professional services sector is approximately 712,100 yuan, with the highest salary being 1,227,800 yuan and the lowest at 255,000 yuan [1] Salary Changes - The average salary in 2024 decreased by 34,600 yuan compared to 2023, representing a decline of 4% [3] - Notably, the salary of Yao Zongxian from Miao Conference dropped from 587,200 yuan in 2023 to 362,300 yuan in 2024, marking a reduction of 224,900 yuan, the largest decrease in both amount and percentage at 38% [3] Age Distribution - The average age of company secretaries is approximately 46.33 years, with the majority (67%) aged between 40 and 49 [3] - The oldest company secretary is 60 years old, earning 302,500 yuan, while the youngest is 37 years old, earning 600,000 yuan [3] Educational Background - The educational distribution of company secretaries includes 1 PhD, 15 Master's degrees, 10 Bachelor's degrees, and 1 Associate degree, with average salaries of 609,100 yuan, 729,600 yuan, 720,500 yuan, and 469,100 yuan respectively [5] - The highest salary among PhD holders is 609,100 yuan, while the lowest among Associate degree holders is 469,100 yuan [5] Compliance Issues - Three company secretaries received warnings, public notifications, or internal communications regarding compliance issues for the 2024-2025 period [7] - Li Yunbin from Anche Detection received two warnings for insufficient impairment basis for goodwill and inaccurate performance forecast disclosures, with a salary of 750,000 yuan [8]

Group 1 - The total salary of A-share listed company secretaries in 2024 reached 4.086 billion yuan, with an average annual salary of 754,300 yuan [1] - The average salary for secretaries in the social services-professional services sector is approximately 712,100 yuan, with the highest salary being 1,227,800 yuan and the lowest at 255,000 yuan [1] - The majority of secretaries, 70%, have salaries between 500,000 and 1 million yuan, totaling 19 individuals [1] Group 2 - The average salary in 2024 decreased by 34,600 yuan compared to 2023, representing a decline of 4% [3] - The oldest secretary is 60 years old, earning 302,500 yuan, while the youngest is 37 years old, earning 600,000 yuan [3] - The average age of secretaries is approximately 46.33 years, with the age group of 40-49 years being the most represented, accounting for about 67% [3] Group 3 - The educational background of secretaries includes 1 PhD, 15 Master's degrees, 10 Bachelor's degrees, and 1 Associate degree, with corresponding average salaries of 609,100 yuan, 729,600 yuan, 720,500 yuan, and 469,100 yuan respectively [5] - The secretary with a PhD, Lü Gang, earns 609,100 yuan, while the one with an Associate degree, Yang Xiangang, earns 469,100 yuan [5] Group 4 - Three secretaries received warnings or public notifications for violations during 2024-2025 [7] - Li Yunbin from Ancar Detection received two warnings for insufficient basis for goodwill impairment and inaccurate performance forecast disclosures, earning 750,000 yuan in 2024 [8]

Core Insights - The total compensation for CFOs in A-share listed companies in 2024 reached 4.27 billion yuan, with an average annual salary of 814,800 yuan [1] - The average salary for CFOs in the social services-professional services sector is approximately 731,400 yuan, with the highest salary being 1.44 million yuan and the lowest at 216,100 yuan [1] - The age distribution of CFOs shows an average age of 48.23 years, with the majority (41%) aged between 45-49 years [3] - Educational background reveals that there is one PhD, eight master's degree holders, eleven bachelor's degree holders, and two with associate degrees, with corresponding average salaries of 946,100 yuan, 815,900 yuan, 657,100 yuan, and 695,000 yuan respectively [5] - There is a noted disconnect between CFO compensation and company performance, with instances of salary increases despite significant declines in net profit [7] Salary Distribution - The total salary for CFOs in 2024 is 4.27 billion yuan, with an average of 814,800 yuan [1] - The highest salary recorded is 1.44 million yuan for Zhuge Bin from Anbang Security, while the lowest is 216,100 yuan for Zhou Huiqing from Shibu Testing [1] - The majority of CFOs (64%) earn between 500,000 to 1 million yuan [1] Age and Education - The average age of CFOs is 48.23 years, with the oldest being 55 years and the youngest at 40 years [3] - The educational qualifications of CFOs include one PhD, eight master's degrees, eleven bachelor's degrees, and two associate degrees, with the highest average salary for PhD holders at 946,100 yuan [5] Performance and Compliance - There are cases where CFO salaries have increased despite a decline in company performance, such as Li Yunbin from Anche Detection, whose salary rose by 7% while the company's net profit fell by 263.7% [7] - Two CFOs received warnings or public notifications regarding compliance issues in 2024-2025 [7][8]

Core Insights - The total compensation for CFOs in A-share listed companies in 2024 reached 4.27 billion yuan, with an average annual salary of 814,800 yuan [1] - The average salary for CFOs in the social services-professional services sector is approximately 731,400 yuan, with the highest salary being 1.44 million yuan and the lowest at 216,100 yuan [1] - The age distribution of CFOs shows an average age of 48.23 years, with the majority (41%) aged between 45-49 years [3] Salary Distribution - The salary distribution indicates that the most common salary range is between 500,000 to 1 million yuan, with 14 individuals in this range, accounting for 64% of the total [1] - The highest-paid CFO, Zhuge Bin from Anbang Security, earned 1.44 million yuan in 2024, while the lowest-paid, Zhou Huiqing from Shibu Testing, earned 216,100 yuan [1] Educational Background - The educational background of CFOs includes 1 PhD, 8 Master's degrees, 11 Bachelor's degrees, and 2 Associate degrees, with corresponding average salaries of 946,100 yuan, 815,900 yuan, 657,100 yuan, and 695,000 yuan respectively [5] - The highest-paid CFO with a PhD is Lou Mingming from Lansheng Co., earning 946,100 yuan at the age of 48 [5] Performance and Compensation Relationship - There is a noted disconnect between CFO compensation and company performance, with instances of salary increases despite significant declines in net profit, such as Li Yunbin from Anche Detection, whose salary increased by 7% while the company's net profit dropped by 263.7% [7] - Two CFOs received warnings or public notifications regarding compliance issues in 2024-2025, indicating potential governance concerns within the industry [7][8] Compliance Issues - Li Yunbin from Anche Detection received two warnings for insufficient impairment assessment of goodwill and inaccurate performance forecast disclosures, earning 750,000 yuan in 2024 [8] - Liu Sheng from Zero Point Data received one warning for discrepancies in performance forecast disclosures, with a salary of 788,000 yuan in 2024 [8]