[Part I Important Notes, Table of Contents, and Definitions](index=2&type=section&id=Part%20I%20Important%20Notes%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides crucial preliminary information, including declarations of report accuracy, the report's structural overview, a list of available reference documents, and definitions of key terms [Important Notes](index=2&type=section&id=Important%20Notes) The company's board, supervisors, and senior management guarantee the report's truthfulness, accuracy, and completeness, while the financial report is declared true, accurate, and complete by the responsible personnel - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content[5](index=5&type=chunk) - The company's responsible person, head of accounting work, and head of accounting department declare the financial report is true, accurate, and complete[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 lists the overall structure of the semi-annual report, encompassing eight main chapters that provide comprehensive company information - The report is divided into eight main chapters, offering comprehensive company information[8](index=8&type=chunk) [List of Reference Documents](index=4&type=section&id=List%20of%20Reference%20Documents) This section details the reference documents available for inspection, including signed financial statements and publicly disclosed company files, all located at the company's board office - Reference documents include signed and sealed financial statements, files disclosed on the CSRC-designated website, and the full and summary texts of the report signed by the legal representative[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) - All reference documents are available at the company's board of directors' office[14](index=14&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section defines key terms, institutional names, laws, regulations, and the reporting period used in the report to ensure accurate understanding of its content - Key institutions and legal regulations such as the China Securities Regulatory Commission (CSRC), Shenzhen Stock Exchange (SZSE), "Company Law," "Securities Law," and "Articles of Association" are defined[16](index=16&type=chunk) - The company and its domestic and overseas wholly-owned/controlled subsidiaries, including Changchun Meili, Shaoxing Meili, Haining Meili, Shanghai Kegang, Beijing Dayuan, Jiangsu Dayuan, Shanghai Heguo, Singapore Meili, Meili USA, Meili Germany, and Meili Mexico, are listed[16](index=16&type=chunk) - The reporting period is defined as January 1, 2025, to June 30, 2025[16](index=16&type=chunk) [Part II Company Profile and Key Financial Indicators](index=6&type=section&id=Part%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company's basic information and presents its key financial performance metrics for the reporting period [1. Company Profile](index=6&type=section&id=1.%20Company%20Profile) This section provides basic information about Zhejiang Meili Technology Co., Ltd., including its stock details, legal representative, and contact information Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Meili Technology | | Stock Code | 300611 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | 浙江美力科技股份有限公司 | | Legal Representative | Zhang Bihong | - The company's registered and office address is No. 1 Wenhua Road, Xinchang County, Shaoxing City, Zhejiang Province, with its website at http://www.meilisprings.com[20](index=20&type=chunk) [4. Key Accounting Data and Financial Indicators](index=7&type=section&id=4.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This section presents the company's key accounting data and financial indicators for the first half of 2025, highlighting significant year-on-year growth in revenue and net profit 2025 H1 Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 899,601,171.45 | 718,245,840.45 | 25.25% | | Net Profit Attributable to Shareholders of Listed Company | 80,397,931.43 | 46,749,201.91 | 71.98% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 77,594,060.96 | 45,048,053.54 | 72.25% | | Net Cash Flow from Operating Activities | 75,625,329.89 | 75,727,309.48 | -0.13% | | Basic Earnings Per Share (yuan/share) | 0.38 | 0.22 | 72.73% | | Diluted Earnings Per Share (yuan/share) | 0.38 | 0.22 | 72.73% | | Weighted Average Return on Net Assets | 6.98% | 4.61% | 2.37% | | **Period-End Indicators** | **Current Period-End (yuan)** | **Prior Year-End (yuan)** | **Period-End YoY Change** | | Total Assets | 2,327,041,272.22 | 2,170,674,166.45 | 7.20% | | Net Assets Attributable to Shareholders of Listed Company | 1,187,787,191.16 | 1,087,563,324.25 | 9.22% | [6. Non-Recurring Gains and Losses and Amounts](index=7&type=section&id=6.%20Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) This section details the non-recurring gains and losses for the first half of 2025, totaling 2.80 million yuan, primarily from asset disposals, government grants, and fair value changes 2025 H1 Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 933,620.92 | | Government grants recognized in current profit and loss | 3,660,967.04 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains and losses from disposal of financial assets and liabilities | -19,040.24 | | Other non-operating income and expenses apart from the above | -61,608.31 | | Less: Income tax impact | 1,520,851.42 | | Minority interest impact (after tax) | 189,217.52 | | **Total** | **2,803,870.47** | - The company has no other profit and loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring gains and losses[28](index=28&type=chunk) [Part III Management Discussion and Analysis](index=9&type=section&id=Part%20III%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's operations, financial performance, and strategic outlook, covering business activities, core competencies, and risk factors [1. Principal Business Activities During the Reporting Period](index=9&type=section&id=1.%20Principal%20Business%20Activities%20During%20the%20Reporting%20Period) This section outlines the company's main business, products, and operating model within its industry, highlighting key drivers of performance growth during the reporting period [(I) Industry Overview](index=9&type=section&id=(I)%20Industry%20Overview) The company operates in the spring manufacturing and automotive parts industry, with the automotive sector experiencing significant growth in H1 2025, particularly in new energy vehicles - The company's industry is "C3483 Spring Manufacturing," primarily serving the automotive industry[30](index=30&type=chunk) 2025 H1 Automotive Industry Key Data | Indicator | Production/Sales Volume (10,000 units) | YoY Growth Rate | | :--- | :--- | :--- | | Automotive Production/Sales | 1,562.1 / 1,565.3 | 12.5% / 11.4% | | New Energy Vehicle Production/Sales | 696.8 / 693.7 | 41.4% / 40.3% | | New Energy Vehicle Sales Share | 44.3% | - | | Automotive Exports | 308.3 | 10.4% | | New Energy Vehicle Exports | 106 | 75.2% | [(II) Company's Principal Business](index=9&type=section&id=(II)%20Company%27s%20Principal%20Business) The company's principal business focuses on the research, development, production, and sales of high-end spring products, primarily for the automotive sector, with applications extending to various other industries - The company primarily engages in the research, development, production, and sales of high-end spring products[31](index=31&type=chunk) - Products are mainly applied in the automotive industry, as well as in engineering machinery, aerospace, power and electrical, military, nuclear power, valves, and robotics[31](index=31&type=chunk) [(III) Company's Main Products](index=9&type=section&id=(III)%20Company%27s%20Main%20Products) The company's product portfolio includes six major categories, ranging from various types of springs for automotive systems to precision injection molded components - The company's main products include suspension system springs, body and interior springs, power system springs, general springs, elastic devices, and stampings[32](index=32&type=chunk)[33](index=33&type=chunk) - The portfolio also includes precision injection molded parts such as safety system components, steering wheel system components, sun visor assemblies, and sunroof components[33](index=33&type=chunk) [(IV) Company's Business Model](index=10&type=section&id=(IV)%20Company%27s%20Business%20Model) The company's business model integrates centralized procurement, customized multi-variety production, and direct sales channels to serve its diverse customer base - Procurement Model: The company's procurement department centrally sources from qualified suppliers, establishes a qualified supplier management system, and procures based on production plans derived from orders[34](index=34&type=chunk)[35](index=35&type=chunk) - Production Model: Primarily adopts customized production, characterized by multiple varieties and small to medium batches, with production arranged according to monthly orders and inventory levels[36](index=36&type=chunk) - Sales Model: Employs a direct sales approach, where the marketing department directly develops customers and provides after-sales service, signing framework agreements with OEMs and parts suppliers[37](index=37&type=chunk) [(V) Key Performance Drivers During the Reporting Period](index=11&type=section&id=(V)%20Key%20Performance%20Drivers%20During%20the%20Reporting%20Period) The company's significant revenue and net profit growth in the reporting period was primarily driven by effective operational execution, cost efficiency, and improved product gross margins - During the reporting period, the company's operating revenue reached **900 million yuan**, a year-on-year increase of **25.25%**[38](index=38&type=chunk) - Net profit attributable to parent company shareholders was **80.40 million yuan**, a year-on-year increase of **71.98%**[38](index=38&type=chunk) - Performance growth was mainly due to the orderly execution of business plans, cost reduction and efficiency improvement, and an increase in the overall product gross margin[38](index=38&type=chunk) [2. Analysis of Core Competencies](index=11&type=section&id=2.%20Analysis%20of%20Core%20Competencies) The company's core strengths lie in its advanced technology, sophisticated manufacturing processes, strong management and talent, established brand and customer base, and strategic global industrial layout - Technology Advantage: Possesses **111 patents** and **24 software copyrights**, leads or participates in setting multiple industry standards, operates a national postdoctoral workstation and a CNAS-accredited testing center, and masters core technologies for stabilizer bars, suspension springs, and variable-wire-diameter Miniblock springs[39](index=39&type=chunk) - Process and Equipment Advantage: Introduced Germany's largest wire diameter cold coiling equipment for suspension springs, and Italian and German wire drawing and heat treatment equipment, holding industry-leading technologies for variable-section springs and hollow stabilizer bars[40](index=40&type=chunk) - Management and Talent Advantage: Built a skilled and experienced R&D team and a refined management team by attracting national-level and provincial-level overseas talents[40](index=40&type=chunk)[41](index=41&type=chunk) - Brand and Customer Advantage: A Tier 1 supplier to renowned domestic and international automotive manufacturers, maintaining long-term collaborations with global automotive parts suppliers, and owning the "Meili" famous trademark and well-known trade name[41](index=41&type=chunk) - Industrial Layout and Service Support Advantage: Established production bases in Beijing, Changchun, Yancheng, Shanghai, Haining, Xinchang, and Germany, covering China's three major automotive industry clusters and overseas markets, enabling localized support[42](index=42&type=chunk) [3. Analysis of Principal Business](index=12&type=section&id=3.%20Analysis%20of%20Principal%20Business) This section analyzes the financial performance of the company's principal business, detailing year-on-year changes in key financial data and the performance of major product lines [Year-on-Year Changes in Key Financial Data](index=12&type=section&id=Year-on-Year%20Changes%20in%20Key%20Financial%20Data) During the reporting period, operating revenue and costs increased, while sales and administrative expenses rose significantly due to various factors, and cash flows from investing and financing activities saw substantial shifts Key Financial Data YoY Change | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 899,601,171.45 | 718,245,840.45 | 25.25% | - | | Operating Cost | 679,992,968.51 | 574,352,622.17 | 18.39% | - | | Selling Expenses | 19,293,967.97 | 12,653,136.87 | 52.48% | Primarily due to increased employee compensation and travel expenses | | Administrative Expenses | 62,879,125.86 | 43,047,897.86 | 46.07% | Primarily due to the completion of asset transfer and commencement of operations for Meili Germany's acquisition of MSSC AHLE GmbH, increasing expenses, and increased share-based payments for the third employee stock ownership plan | | Financial Expenses | 5,078,443.42 | 4,940,970.42 | 2.78% | - | | Income Tax Expense | 7,640,251.65 | 4,645,841.62 | 64.45% | Primarily due to increased total profit during the reporting period | | R&D Investment | 35,017,149.76 | 33,225,387.97 | 5.39% | - | | Net Cash Flow from Operating Activities | 75,625,329.89 | 75,727,309.48 | -0.13% | - | | Net Cash Flow from Investing Activities | -104,348,255.68 | -13,046,290.42 | 699.83% | Primarily due to payments for land purchases during the reporting period | | Net Cash Flow from Financing Activities | 82,106,605.61 | -47,406,957.75 | -273.20% | Primarily due to increased bank borrowings for company operational needs | | Net Increase in Cash and Cash Equivalents | 64,269,668.65 | 15,784,824.40 | 307.16% | Primarily due to increased bank borrowings for company operational needs | [Products or Services Accounting for Over 10%](index=13&type=section&id=Products%20or%20Services%20Accounting%20for%20Over%2010%25) Suspension system springs and elastic devices/stampings were key revenue drivers, with suspension springs showing strong revenue and gross margin growth, while elastic devices/stampings saw substantial revenue increase Products or Services Accounting for Over 10% | Product Series Name | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Suspension System Springs | 474,724,095.13 | 389,039,393.94 | 18.05% | 23.20% | 12.04% | 8.16% | | Body and Interior Springs | 101,571,293.00 | 66,123,506.31 | 34.90% | 2.99% | 1.16% | 1.18% | | Elastic Devices and Stampings, etc. | 122,753,195.41 | 82,536,235.21 | 32.76% | 96.79% | 96.93% | -0.05% | - The company implemented "Interpretation No. 18 of Accounting Standards for Business Enterprises" from January 1, 2024, retrospectively adjusting comparable period information, which resulted in a **1,858,452.53 yuan** reduction in prior year's selling expenses and a corresponding increase in prior year's operating costs[46](index=46&type=chunk) [4. Analysis of Non-Principal Business](index=13&type=section&id=4.%20Analysis%20of%20Non-Principal%20Business) This section analyzes the company's non-principal business gains and losses for the reporting period, noting their impact on total profit, with most items deemed non-sustainable 2025 H1 Non-Principal Business Analysis | Item | Amount (yuan) | % of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -1,204,984.93 | -1.35% | Primarily due to losses from the company's investment in Puchang Intelligent, with investment income accrued based on shareholding ratio | No | | Gains and Losses from Changes in Fair Value | -19,040.24 | -0.02% | Primarily due to changes in fair value of trading financial assets | No | | Asset Impairment | -9,418,993.38 | -10.53% | Primarily due to provision for inventory depreciation | No | | Non-Operating Income | 202,440.05 | 0.23% | Primarily due to compensation income | No | | Non-Operating Expenses | 320,580.72 | 0.36% | Primarily due to losses from disposal of fixed assets and late payment fees | No | | Credit Impairment | 898,956.28 | 1.01% | Primarily due to provision for doubtful accounts on receivables | No | [5. Analysis of Assets and Liabilities](index=14&type=section&id=5.%20Analysis%20of%20Assets%20and%20Liabilities) This section analyzes the composition and significant changes in the company's assets and liabilities at the end of the reporting period, including growth in total assets and net assets, and notable shifts in specific accounts [1. Significant Changes in Asset Composition](index=14&type=section&id=1.%20Significant%20Changes%20in%20Asset%20Composition) At the end of the reporting period, total assets increased by 7.20%, with notable increases in construction in progress, right-of-use assets, and short-term borrowings, while long-term borrowings decreased due to reclassification Significant Changes in Asset Composition | Item | Period-End Amount (yuan) | % of Total Assets | Prior Year-End Amount (yuan) | % of Total Assets | % Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 223,300,047.01 | 9.60% | 192,932,077.40 | 8.89% | 0.71% | - | | Accounts Receivable | 544,348,866.43 | 23.39% | 578,242,357.95 | 26.64% | -3.25% | - | | Inventories | 352,375,923.95 | 15.14% | 286,553,982.39 | 13.20% | 1.94% | - | | Construction in Progress | 35,436,529.66 | 1.52% | 9,551,654.93 | 0.44% | 1.08% | Primarily due to an increase in equipment awaiting installation and the commencement of construction for projects such as the annual production of 2 million smart suspensions and 10 million electric and hydraulic driven elastic components | | Right-of-Use Assets | 11,328,955.13 | 0.49% | 5,069,251.67 | 0.23% | 0.26% | Primarily due to the company leasing properties | | Short-Term Borrowings | 356,011,720.27 | 15.30% | 255,979,927.78 | 11.79% | 3.51% | Primarily due to an increase in bank borrowings | | Long-Term Borrowings | 111,664,644.31 | 4.80% | 230,756,351.67 | 10.63% | -5.83% | Primarily due to the reclassification of long-term borrowings due within one year to non-current liabilities due within one year | | Lease Liabilities | 7,786,179.97 | 0.33% | 2,171,455.10 | 0.10% | 0.23% | Primarily due to the company leasing properties, which increased lease liabilities | [3. Assets and Liabilities Measured at Fair Value](index=14&type=section&id=3.%20Assets%20and%20Liabilities%20Measured%20at%20Fair%20Value) At the end of the reporting period, the company's financial assets measured at fair value, primarily trading financial assets and accounts receivable financing, totaled 150.73 million yuan Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (yuan) | Fair Value Change Gains/Losses for the Period (yuan) | Amount Purchased During the Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 156,917.84 | -19,040.24 | 0 | 137,877.60 | | Accounts Receivable Financing | 100,212,569.90 | 0 | 50,383,616.55 | 150,596,186.45 | | **Total Above** | **100,369,487.74** | **-19,040.24** | **50,383,616.55** | **150,734,064.05** | [4. Asset Restrictions as of the End of the Reporting Period](index=15&type=section&id=4.%20Asset%20Restrictions%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, the company had 248.72 million yuan in restricted assets, primarily pledged as collateral for bank borrowings Asset Restrictions as of the End of the Reporting Period | Item | Period-End Book Balance (yuan) | Period-End Book Value (yuan) | Reason for Restriction | | :--- | :--- | :--- | :--- | | Monetary Funds | 1,805,845.93 | 1,805,845.93 | Bank deposits pledged for borrowings, letter of credit margin, bill margin | | Investment Properties | 14,742,468.01 | 7,560,006.79 | Used as collateral for bank borrowings | | Fixed Assets | 261,505,452.62 | 189,079,781.60 | Used as collateral for bank borrowings | | Intangible Assets | 64,892,236.39 | 50,271,525.99 | Used as collateral for bank borrowings | | **Total** | **342,946,002.95** | **248,717,160.31** | - | [6. Analysis of Investment Status](index=15&type=section&id=6.%20Analysis%20of%20Investment%20Status) This section analyzes the company's overall investment situation and significant non-equity investment projects during the reporting period, showing a substantial increase in investment [1. Overall Situation](index=15&type=section&id=1.%20Overall%20Situation) During the reporting period, the company's investment significantly increased by 307.74% compared to the same period last year Overall Investment During the Reporting Period | Indicator | Amount (yuan) | | :--- | :--- | | Investment Amount for the Reporting Period | 79,658,532.48 | | Investment Amount for the Prior Year Period | 19,536,371.78 | | Percentage Change | 307.74% | [3. Significant Non-Equity Investments Underway During the Reporting Period](index=16&type=section&id=3.%20Significant%20Non-Equity%20Investments%20Underway%20During%20the%20Reporting%20Period) The company is actively pursuing two major non-equity investment projects, including a smart suspension and elastic components industrialization project that has commenced construction Significant Non-Equity Investments Underway During the Reporting Period | Project Name | Investment Method | Fixed Asset Investment | Industry Involved | Investment Amount for Current Period (yuan) | Cumulative Actual Investment Amount as of Period-End (yuan) | Project Progress | Estimated Return (yuan) | Cumulative Realized Return as of Period-End (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Project for Annual Production of 100 Million Advanced Composite Automotive Parts and High-Performance Springs | Self-built | Yes | Automotive Parts | 19,264,958.48 | 466,075,236.90 | 76.41% | 83,339,292.85 | 63,921,876.49 | | Project for Annual Production of 2 Million Smart Suspensions and 10 Million Electric and Hydraulic Driven Elastic Components Industrialization | Self-built | Yes | Automotive Parts | 60,393,574.00 | 60,393,574.00 | 9.21% | / | / | - The realized benefits of the "Project for Annual Production of 100 Million Advanced Composite Automotive Parts and High-Performance Springs" were below expectations, primarily due to the lengthy certification cycle for automotive parts[58](index=58&type=chunk) [4. Financial Assets Measured at Fair Value](index=17&type=section&id=4.%20Financial%20Assets%20Measured%20at%20Fair%20Value) The company's financial assets measured at fair value primarily consist of stocks, with a period-end amount of 137,877.60 yuan, funded by customer accounts receivable repayments Financial Assets Measured at Fair Value | Asset Category | Initial Investment Cost (yuan) | Fair Value Change Gains/Losses for the Period (yuan) | Cumulative Fair Value Change Included in Equity (yuan) | Period-End Amount (yuan) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | | Stocks | 432,410.42 | -19,040.24 | -294,532.82 | 137,877.60 | Customer accounts receivable repayment | [8. Analysis of Major Holding and Participating Companies](index=18&type=section&id=8.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) This section analyzes the operating performance of the company's major holding subsidiaries, Shaoxing Meili and Haining Meili, both significantly contributing to the company's net profit Major Subsidiary Financial Situation | Company Name | Company Type | Principal Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shaoxing Meili | Subsidiary | Production and sales of high-end precision springs | 5,000,000.00 | 129,224,623.50 | 108,235,981.12 | 49,315,203.04 | 18,144,298.35 | 15,422,463.87 | | Haining Meili | Subsidiary | Production and sales of automotive springs | 100,000,000.00 | 491,443,625.81 | 251,980,041.48 | 349,802,163.05 | 34,696,426.90 | 34,687,118.66 | - During the reporting period, the company established a new wholly-owned sub-subsidiary, Meili Mexico, which did not have a significant impact on the company's overall production, operations, or performance[68](index=68&type=chunk) [10. Risks Faced by the Company and Countermeasures](index=18&type=section&id=10.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces various risks, including industry environment changes, raw material price fluctuations, operational management, technology development, and acquisition integration, for which it has outlined corresponding mitigation strategies - Risk of Industry Environment Changes: The automotive industry is significantly affected by macroeconomic conditions and industrial policies, which could adversely impact the company's sales volume and performance[69](index=69&type=chunk)[70](index=70&type=chunk) - Risk of Raw Material Price Fluctuations: Fluctuations in spring steel prices significantly affect the company's production costs and operating performance; the company will closely monitor market prices and strengthen communication with suppliers[70](index=70&type=chunk) - Operational Management Risk: As the company expands and undertakes acquisitions, it faces challenges in management capabilities, internal control systems, and talent reserves, necessitating continuous improvement in management levels[70](index=70&type=chunk) - Technology Development Risk: Intense competition in the automotive OEM market requires the company to continuously innovate and build technological reserves to maintain its leading technological edge and market share[71](index=71&type=chunk) - Acquisition Integration Risk: Investment and acquisitions may lead to integration risks or the acquired targets may not achieve expected operating benefits; the company will prudently select targets and strengthen management and integration efforts[71](index=71&type=chunk) [11. Registration Form for Investor Relations Activities During the Reporting Period](index=19&type=section&id=11.%20Registration%20Form%20for%20Investor%20Relations%20Activities%20During%20the%20Reporting%20Period) This section documents the company's investor relations activities during the reporting period, including on-site research and an online performance briefing - On January 13, 2025, the company hosted an on-site research visit for institutions including Haitong Securities, GF Fund, and Qianhai Open Source Fund[72](index=72&type=chunk) - On April 18, 2025, the company participated in the 2024 annual online performance briefing via the internet[72](index=72&type=chunk) [Part IV Corporate Governance, Environment, and Society](index=21&type=section&id=Part%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section details the company's corporate governance practices, including profit distribution, employee incentives, and its commitment to environmental protection and social responsibility [2. Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period](index=21&type=section&id=2.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20During%20the%20Reporting%20Period) The company plans no profit distribution for the semi-annual period, including no cash dividends, bonus shares, or conversion of capital reserves into share capital - The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the semi-annual period[77](index=77&type=chunk) [3. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=21&type=section&id=3.%20Implementation%20of%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) During the reporting period, the company did not implement an equity incentive plan but executed its third employee stock ownership plan, involving 92 core personnel and recognizing 7.50 million yuan in amortization expense - During the reporting period, the company did not implement an equity incentive plan[78](index=78&type=chunk) Third Employee Stock Ownership Plan | Scope of Employees | Number of Employees | Total Shares Held (shares) | % of Total Share Capital of Listed Company | Source of Funds for Plan Implementation | | :--- | :--- | :--- | :--- | :--- | | Core management and key personnel who play a significant role in the company's overall performance and long-term development, including company supervisors and senior management | 92 | 2,974,500 | 1.41% | Legal compensation of company employees, self-raised funds, and other methods permitted by laws and regulations | - During the reporting period, the amortization expense for the company's third employee stock ownership plan was **7.50 million yuan**[80](index=80&type=chunk) [5. Social Responsibility](index=22&type=section&id=5.%20Social%20Responsibility) The company upholds legal and ethical operations, prioritizing shared benefits for stakeholders, environmental protection, employee welfare, and active community engagement - The company operates legally, pays taxes honestly, fosters employment, and supports the local economy[81](index=81&type=chunk) - It prioritizes reasonable returns for investors and fulfills information disclosure obligations in a timely, accurate, truthful, complete, and fair manner[81](index=81&type=chunk) - The company is committed to environmental protection and sustainable development, strictly adhering to environmental regulations for wastewater, exhaust gas, and solid waste treatment[81](index=81&type=chunk) - It values employee professional development, production safety, labor protection, and physical and mental well-being, providing a positive working environment[81](index=81&type=chunk) - The company actively gives back to society, participating in the "Xiangli Xiangqin" charitable endowment fund and the "High-Level Comprehensive Well-off Paired Assistance" activities[82](index=82&type=chunk) [Part V Significant Matters](index=23&type=section&id=Part%20V%20Significant%20Matters) This section addresses key events and developments, including litigation, integrity status, other major corporate actions, and significant matters concerning subsidiaries [8. Litigation Matters](index=23&type=section&id=8.%20Litigation%20Matters) During the reporting period, the company had no significant litigation or arbitration, with minor lawsuits totaling 795,700 yuan concluded without material impact on operations - The company had no significant litigation or arbitration matters during this reporting period[89](index=89&type=chunk) Summary of Other Litigation Matters | Basic Situation of Litigation (Arbitration) | Amount Involved (10,000 yuan) | Provision for Estimated Liabilities Formed | Litigation (Arbitration) Progress | Outcome and Impact of Litigation (Arbitration) | | :--- | :--- | :--- | :--- | :--- | | Summary of other litigations not meeting the disclosure threshold for significant litigation | 79.57 | No | Cases have been judged or settled | Will not have a significant impact on the company's operations | [10. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=24&type=section&id=10.%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) During the reporting period, the company, its controlling shareholder, and actual controller maintained a good integrity status, with no unfulfilled court judgments or large overdue debts - During the reporting period, the company, its controlling shareholder, and actual controller maintained a good integrity status[92](index=92&type=chunk) - There were no unfulfilled court judgments or large overdue debts[92](index=92&type=chunk) [13. Explanation of Other Significant Matters](index=26&type=section&id=13.%20Explanation%20of%20Other%20Significant%20Matters) The company completed the share transfer for its third employee stock ownership plan, initiated a smart suspension project, acquired land, and had its convertible bond application accepted by the SZSE - The company has non-transactionally transferred **2,974,500 shares** of repurchased stock at **9.12 yuan/share** to the special account of the third employee stock ownership plan, representing **1.41%** of the total share capital[106](index=106&type=chunk) - The company is investing in the "Annual Production of 2 Million Smart Suspensions and 10 Million Electric and Hydraulic Driven Elastic Components Industrialization Project" and has successfully bid for the right to use state-owned construction land[107](index=107&type=chunk) - The company's application for issuing convertible corporate bonds to unspecified investors was accepted by the Shenzhen Stock Exchange on July 18, 2025[108](index=108&type=chunk) [14. Significant Matters of Company Subsidiaries](index=26&type=section&id=14.%20Significant%20Matters%20of%20Company%20Subsidiaries) The company's wholly-owned subsidiaries, Singapore Meili and Meili (USA) Inc., established a new sub-subsidiary in Mexico with a 30 million USD investment, while Meili Logistics underwent a name and business scope change - The company's wholly-owned subsidiaries, Singapore Meili and Meili (USA) Inc., invested in and established a wholly-owned sub-subsidiary, Meili Mexico, in Mexico, with a total investment of **30 million USD**, completing registration and tax formalities[109](index=109&type=chunk) - Meili Logistics changed its business scope, its company name was changed to "Zhejiang Meili International Logistics Co., Ltd.," and a Ningbo branch was established[109](index=109&type=chunk) [Part VI Share Changes and Shareholder Information](index=27&type=section&id=Part%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section details the company's share capital structure, including changes in shares and the status of its shareholders [1. Share Change Status](index=27&type=section&id=1.%20Share%20Change%20Status) During the reporting period, the company's total share capital remained unchanged at 211,074,680 shares, with restricted shares accounting for 29.74% and unrestricted shares for 70.26% Share Change Status | Item | Number Before This Change (shares) | Percentage | Increase/Decrease in This Change (＋,－) | Number After This Change (shares) | Percentage | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 62,771,700 | 29.74% | 0 | 62,771,700 | 29.74% | | II. Unrestricted Shares | 148,302,980 | 70.26% | 0 | 148,302,980 | 70.26% | | III. Total Shares | 211,074,680 | 100.00% | 0 | 211,074,680 | 100.00% | - During the reporting period, the company's total share capital remained unchanged[113](index=113&type=chunk) [3. Number of Shareholders and Shareholding Status](index=28&type=section&id=3.%20Number%20of%20Shareholders%20and%20Shareholding%20Status) As of the end of the reporting period, the company had 30,539 common shareholders; controlling shareholder Zhang Bihong held 36.29% of shares, including 57,450,000 restricted shares, and is an acting-in-concert party with Zhang Zhujun - As of the end of the reporting period, the total number of common shareholders was **30,539**[114](index=114&type=chunk) Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-End (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhang Bihong | Domestic Natural Person | 36.29% | 76,600,000 | 57,450,000 | 19,150,000 | | Zhang Zhujun | Domestic Natural Person | 3.36% | 7,095,600 | 5,321,700 | 1,773,900 | | Changjiang Growth Capital Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 2.26% | 4,762,015 | 0 | 4,762,015 | | Wang Guangming | Domestic Natural Person | 2.11% | 4,461,800 | 0 | 4,461,800 | | Zhejiang Meili Technology Co., Ltd. - Third Employee Stock Ownership Plan | Other | 1.41% | 2,974,500 | 0 | 2,974,500 | | Wang Tingyi | Domestic Natural Person | 0.98% | 2,059,400 | 0 | 2,059,400 | | Yu Aixiang | Domestic Natural Person | 0.91% | 1,912,275 | 0 | 1,912,275 | | He Shijin | Domestic Natural Person | 0.54% | 1,142,200 | 0 | 1,142,200 | | Zhang Wei | Domestic Natural Person | 0.52% | 1,100,000 | 0 | 1,100,000 | | Zhang Liangcan | Domestic Natural Person | 0.50% | 1,050,000 | 0 | 1,050,000 | - Zhang Bihong is the actual controller and controlling shareholder of the company, and Zhang Zhujun, Zhang Bihong's younger brother, is an acting-in-concert party with Zhang Bihong[115](index=115&type=chunk) [Part VII Bond-Related Information](index=31&type=section&id=Part%20VII%20Bond-Related%20Information) This section confirms that the company had no bond-related matters requiring disclosure during the reporting period [Bond-Related Information](index=31&type=section&id=Bond-Related%20Information) During the reporting period, the company had no bond-related matters requiring disclosure - The company had no bond-related matters during the reporting period[121](index=121&type=chunk) [Part VIII Financial Report](index=32&type=section&id=Part%20VIII%20Financial%20Report) This section presents the company's comprehensive financial statements, including the audit report status, balance sheet, income statement, cash flow statement, and detailed notes on various financial items [1. Audit Report](index=32&type=section&id=1.%20Audit%20Report) This section explicitly states that the company's 2025 semi-annual financial report is unaudited - The company's semi-annual financial report is unaudited[123](index=123&type=chunk) [2. Financial Statements](index=32&type=section&id=2.%20Financial%20Statements) This section provides the company's consolidated and parent company financial statements for the first half of 2025, offering a comprehensive view of its financial position, operating results, and cash flows [1. Consolidated Balance Sheet](index=32&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's consolidated total assets were 2.33 billion yuan, with total liabilities of 1.05 billion yuan and total owners' equity of 1.27 billion yuan Consolidated Balance Sheet Key Data (June 30, 2025) | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Monetary Funds | 223,300,047.01 | 192,932,077.40 | | Accounts Receivable | 544,348,866.43 | 578,242,357.95 | | Inventories | 352,375,923.95 | 286,553,982.39 | | Fixed Assets | 761,021,584.43 | 741,845,036.93 | | Construction in Progress | 35,436,529.66 | 9,551,654.93 | | Short-Term Borrowings | 356,011,720.27 | 255,979,927.78 | | Long-Term Borrowings | 111,664,644.31 | 230,756,351.67 | | Total Assets | 2,327,041,272.22 | 2,170,674,166.45 | | Total Liabilities | 1,053,205,621.80 | 998,459,979.94 | | Total Owners' Equity Attributable to Parent Company | 1,187,787,191.16 | 1,087,563,324.25 | | Total Owners' Equity | 1,273,835,650.42 | 1,172,214,186.51 | [3. Consolidated Income Statement](index=36&type=section&id=3.%20Consolidated%20Income%20Statement) In the first half of 2025, the company achieved total operating revenue of 900 million yuan, a 25.25% year-on-year increase, with net profit attributable to parent company shareholders growing by 71.98% to 80.40 million yuan Consolidated Income Statement Key Data (2025 H1) | Item | 2025 H1 (yuan) | 2024 H1 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 899,601,171.45 | 718,245,840.45 | | Total Operating Costs | 808,694,353.44 | 675,084,174.61 | | Operating Profit | 89,553,920.75 | 50,912,585.79 | | Total Profit | 89,435,780.08 | 50,304,738.35 | | Net Profit | 81,795,528.43 | 45,658,896.73 | | Net Profit Attributable to Parent Company Shareholders | 80,397,931.43 | 46,749,201.91 | | Basic Earnings Per Share (yuan/share) | 0.38 | 0.22 | | Diluted Earnings Per Share (yuan/share) | 0.38 | 0.22 | [5. Consolidated Cash Flow Statement](index=40&type=section&id=5.%20Consolidated%20Cash%20Flow%20Statement) In the first half of 2025, net cash flow from operating activities remained stable, while investing activities saw a significant outflow, and financing activities turned positive due to increased bank borrowings Consolidated Cash Flow Statement Key Data (2025 H1) | Item | 2025 H1 (yuan) | 2024 H1 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 75,625,329.89 | 75,727,309.48 | | Net Cash Flow from Investing Activities | -104,348,255.68 | -13,046,290.42 | | Net Cash Flow from Financing Activities | 82,106,605.61 | -47,406,957.75 | | Net Increase in Cash and Cash Equivalents | 64,269,668.65 | 15,784,824.40 | | Period-End Balance of Cash and Cash Equivalents | 221,494,201.08 | 209,273,520.85 | [3. Company Basic Information](index=50&type=section&id=3.%20Company%20Basic%20Information) Zhejiang Meili Technology Co., Ltd., formerly Zhejiang Meili Spring Co., Ltd., was restructured in 2010, listed on the Shenzhen Stock Exchange in 2017, and primarily engages in spring manufacturing - The company, formerly Zhejiang Meili Spring Co., Ltd., was restructured into a joint-stock company in 2010[159](index=159&type=chunk) - The company's registered capital is **211,074,680.00 yuan**, and its shares were listed on the Shenzhen Stock Exchange on February 20, 2017[159](index=159&type=chunk) - Its principal business is the research, development, production, and sales of springs, including suspension system springs, body and interior springs, power system springs, and general springs[159](index=159&type=chunk) [4. Basis of Financial Statement Preparation](index=50&type=section&id=4.%20Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared on a going concern basis, with no significant doubts about its ability to continue operations for the next 12 months - The company's financial statements are prepared on a going concern basis[160](index=160&type=chunk) - There are no events or conditions that would cast significant doubt on the company's ability to continue as a going concern for the next 12 months from the end of the reporting period[161](index=161&type=chunk) [5. Significant Accounting Policies and Estimates](index=50&type=section&id=5.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's accounting standards, period, operating cycle, functional currency, and key accounting policies and estimates, including the impact of adopting "Interpretation No. 18 of Accounting Standards for Business Enterprises" - The company's financial statements comply with the requirements of enterprise accounting standards, accurately and completely reflecting its financial position, operating results, and cash flows[163](index=163&type=chunk) - The accounting year runs from January 1 to December 31 of the Gregorian calendar, with a short operating cycle, using 12 months as the liquidity classification standard for assets and liabilities[164](index=164&type=chunk)[165](index=165&type=chunk) - The company has formulated specific accounting policies and estimates for transactions and events such as financial instrument impairment, inventories, depreciation of fixed assets, amortization of intangible assets, and revenue recognition, based on its actual production and operating characteristics[162](index=162&type=chunk) - The company adopted "Interpretation No. 18 of Accounting Standards for Business Enterprises" issued by the Ministry of Finance from January 1, 2024, retrospectively adjusting comparable period information, which resulted in a **1,858,452.53 yuan** reduction in prior year's selling expenses and a corresponding increase in prior year's operating costs[257](index=257&type=chunk) [6. Taxation](index=67&type=section&id=6.%20Taxation) This section details the company's and its subsidiaries' main tax categories and rates, including VAT, urban maintenance and construction tax, corporate income tax, and property tax, along with applicable preferential tax policies Main Tax Types and Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of goods and taxable services, calculated as output tax minus input tax | 13%, 9%, 6% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 5%, 7% | | Corporate Income Tax | Taxable income | 15%, 20%, 25% | | Property Tax | Calculated at 1.2% of the original value of the property after a 30% deduction for value-based assessment; 12% of rental income for rent-based assessment | 1.2%, 12% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 1%, 2% | - The company and several subsidiaries, including Shaoxing Meili, Shanghai Heguo, Zhejiang Meili Automotive Spring, and Shanghai Kegang, enjoy a **15%** corporate income tax preferential rate as high-tech enterprises[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) - The company and some subsidiaries benefit from the VAT super deduction policy for advanced manufacturing enterprises, while Changchun Meili Spring Co., Ltd. and Haining Meili Precision Plastic Automotive Parts Co., Ltd. enjoy corporate income tax preferential policies for small and micro-profit enterprises[261](index=261&type=chunk)[262](index=262&type=chunk) [7. Notes to Consolidated Financial Statement Items](index=68&type=section&id=7.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed explanations for each item in the consolidated financial statements, covering assets, liabilities, equity, and income, including period-end balances, changes, and accounting treatments - Monetary funds at period-end totaled **223,300,047.01 yuan**, including **1,805,845.93 yuan** in restricted funds[264](index=264&type=chunk)[265](index=265&type=chunk) - Accounts receivable had a period-end book value of **544,348,866.43 yuan**, with **49,388,491.34 yuan** provided for bad debts[275](index=275&type=chunk) - Inventories had a period-end book value of **352,375,923.95 yuan**, with **22,993,008.68 yuan** provided for inventory depreciation[309](index=309&type=chunk) - Fixed assets had a period-end book value of **761,021,584.43 yuan**, of which **261,505,452.62 yuan** was used for mortgage collateral[323](index=323&type=chunk)[325](index=325&type=chunk) - Short-term borrowings at period-end totaled **356,011,720.27 yuan**, primarily consisting of unsecured loans[358](index=358&type=chunk) - Capital reserve increased by **7,495,740.00 yuan** during the period due to share-based payment expenses recognized for the third employee stock ownership plan[386](index=386&type=chunk) - Treasury stock decreased by **30,010,441.00 yuan** during the period as repurchased shares were used for the employee stock ownership plan[388](index=388&type=chunk) - Operating revenue for the current period was **899,601,171.45 yuan**, and operating cost was **679,992,968.51 yuan**[396](index=396&type=chunk) [8. Changes in Consolidation Scope](index=103&type=section&id=8.%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company's consolidation scope changed due to the establishment of a wholly-owned sub-subsidiary, Mexico Meili, by its wholly-owned subsidiaries, Singapore Meili and Meili (USA) Inc - The company's wholly-owned subsidiaries, Singapore Meili and Meili (USA) Inc., invested in and established a wholly-owned sub-subsidiary, Meili Mexico[443](index=443&type=chunk) [9. Interests in Other Entities](index=103&type=section&id=9.%20Interests%20in%20Other%20Entities) This section details the company's equity interests in its subsidiaries and associates, outlining the group structure and summarized financial information for insignificant joint ventures and associates Composition of the Enterprise Group | Subsidiary Name | Registered Capital | Main Operating Location | Business Nature | Shareholding Percentage (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Changchun Meili Spring Co., Ltd. | 1,000,000.00 | Changchun City | General Equipment Manufacturing - Spring Manufacturing Industry | 100.00% | Establishment | | Shaoxing Meili Precision Spring Co., Ltd. | 5,000,000.00 | Shaoxing City | General Equipment Manufacturing - Spring Manufacturing Industry | 100.00% | Establishment | | Zhejiang Meili Automotive Spring Co., Ltd. | 100,000,000.00 | Haining City | General Equipment Manufacturing - Spring Manufacturing Industry | 100.00% | Establishment | | Zhejiang Meili International Logistics Co., Ltd. | 10,000,000.00 | Shaoxing City | Road Transportation Industry | 100.00% | Establishment | | Shanghai Kegang Co., Ltd. | 10,960,000.00 | Shanghai City | General Equipment Manufacturing - Mold Manufacturing Industry | 100.00% | Business Combination Not Under Common Control | | Beijing Meili Dayuan Spring Co., Ltd. | 127,657,078.95 | Beijing City | General Equipment Manufacturing Industry | 70.00% | Business Combination Not Under Common Control | | Jiangsu Meili Dayuan Spring Co., Ltd. | 237,878,380.32 | Yancheng City | General Equipment Manufacturing Industry | 70.00% | Business Combination Not Under Common Control | | Haining Meili Precision Plastic Automotive Parts Co., Ltd. | 10,000,000.00 | Haining City | General Equipment Manufacturing - Mold Manufacturing Industry | 100.00% (Indirect) | Establishment | | Meili Germany GmbH | 200,000.00 Euro | North Rhine-Westphalia, Germany | General Equipment Manufacturing Industry | 100.00% | Establishment | | Meili Springs Pte. Ltd. | 50,000.00 Singapore Dollar | Singapore | Trading Industry | 100.00% | Establishment | | Meili (USA) Inc | / | Houston, USA | Trading Industry | 100.00% | Establishment | | MEILI SALTILLO S.A.DE C.V | 50,000.00 Mexican Peso | Saltillo, Coahuila, Mexico | General Equipment Manufacturing - Spring Manufacturing Industry | 100.00% (Indirect) | Establishment | | Shanghai Heguo Disc Spring Manufacturing Co., Ltd. | 12,920,000.00 | Shanghai City | General Equipment Manufacturing - Spring Manufacturing Industry | 69.04% | Business Combination Not Under Common Control | Summarized Financial Information for Insignificant Joint Ventures and Associates | Item | Period-End Balance/Current Period Amount (yuan) | | :--- | :--- | | Total Book Value of Investments in Associates | 18,000,946.34 | | Net Profit of Associates | -1,085,589.44 | [10. Government Grants](index=104&type=section&id=10.%20Government%20Grants) This section discloses the company's government grants during the reporting period, with deferred income from government grants totaling 24.41 million yuan at period-end, primarily asset-related Liability Items Involving Government Grants | Accounting Account | Beginning Balance (yuan) | New Grants for Current Period (yuan) | Amount Transferred to Other Income for Current Period (yuan) | Ending Balance (yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 25,405,914.46 | 602,400.00 | 1,594,329.96 | 24,413,984.50 | Asset-related | - The amount of government grants recognized in other income for the current period was **3,660,967.04 yuan**[450](index=450&type=chunk) [11. Risks Related to Financial Instruments](index=105&type=section&id=11.%20Risks%20Related%20to%20Financial%20Instruments) This section outlines the company's financial instrument risks and management strategies, including credit, liquidity, and market risks, managed through various assessment and control measures - Credit Risk: Managed by assessing the credit risk of financial instruments, defining default standards, measuring expected credit losses, and controlling the concentration of credit risk[452](index=452&type=chunk)[453](index=453&type=chunk)[454](index=454&type=chunk)[455](index=455&type=chunk)[456](index=456&type=chunk)[457](index=457&type=chunk)[459](index=459&type=chunk)[461](index=461&type=chunk) - Liquidity Risk: Managed by comprehensively utilizing various financing methods such as bill settlement and bank borrowings, and adopting a combination of long-term and short-term financing to maintain financing continuity and flexibility[463](index=463&type=chunk) Financial Liabilities by Remaining Maturity (Period-End) | Item | Book Value (yuan) | Undiscounted Contractual Amount (yuan) | Within 1 Year (yuan) | 1-3 Years (yuan) | Over 3 Years (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Bank Borrowings | 632,043,018.18 | 647,245,983.94 | 531,417,493.74 | 96,548,290.20 | 19,280,200.00 | | Accounts Payable | 314,843,558.28 | 314,843,558.28 | 314,843,558.28 | - | - | | Other Payables | 13,733,516.42 | 13,733,516.42 | 13,733,516.42 | - | - | | Non-Current Liabilities Due Within 1 Year | 2,755,143.60 | 3,096,939.66 | 3,096,939.66 | - | - | | Lease Liabilities | 7,786,179.97 | 8,348,363.56 | - | 8,348,363.56 | - | | **Subtotal** | **971,161,416.45** | **987,268,361.86** | **863,091,508.10** | **104,896,653.76** | **19,280,200.00** | - Market Risk: Interest rate risk is managed by determining the proportion of fixed-rate and floating-rate financial instruments, while foreign exchange risk is managed through buying and selling foreign currencies[466](index=466&type=chunk)[468](index=468&type=chunk) [12. Disclosure of Fair Value](index=108&type=section&id=12.%20Disclosure%20of%20Fair%20Value) This section discloses the fair value of the company's assets and liabilities measured at fair value at period-end, explaining the valuation methods used for trading financial assets and accounts receivable financing Period-End Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 1 Fair Value Measurement (yuan) | Level 3 Fair Value Measurement (yuan) | Total (yuan) | | :--- | :--- | :--- | :--- | | Trading Financial Assets (Equity Instrument Investments) | 137,877.60 | - | 137,877.60 | | Accounts Receivable Financing | - | 150,596,186.45 | 150,596,186.45 | | **Total Assets Continuously Measured at Fair Value** | **137,877.60** | **150,596,186.45** | **150,734,064.05** | - Trading financial assets (listed company stocks) are valued at fair value based on the closing price in the public trading market on the balance sheet date[472](index=472&type=chunk) - Accounts receivable financing is valued at fair value based on its book amount[473](index=473&type=chunk) [13. Related Parties and Related Party Transactions](index=108&type=section&id=13.%20Related%20Parties%20and%20Related%20Party%20Transactions) This section discloses the company's related parties, with Zhang Bihong as the ultimate controlling party, and details related party transactions including procurement, leasing, and key management compensation - The ultimate controlling party of the company is Zhang Bihong, with a shareholding and voting rights percentage of **36.29%**[474](index=474&type=chunk) - Other related parties include the associate Wuhan Puchang Intelligent Technology Co., Ltd., and minority shareholders of subsidiaries such as Shanghai Heguo Investment Co., Ltd. and Dayuan Steel Co., Ltd[476](index=476&type=chunk) Related Party Transactions for Purchase/Acceptance of Services | Related Party | Related Transaction Content | Amount for Current Period (yuan) | Amount for Prior Period (yuan) | | :--- | :--- | :--- | :--- | | Dayuan Steel Co., Ltd. | Raw materials and samples | 119,215.62 | 205,425.00 | Related Lease Situations (Company as Lessee) | Lessor Name | Type of Leased Asset | Rent Paid for Current Period (yuan) | Rent Paid for Prior Period (yuan) | | :--- | :--- | :--- | :--- | | Shanghai Heguo Powder Metallurgy Technology Development Co., Ltd. | Buildings and structures | 741,318.10 | 1,159,634.00 | - Key management personnel compensation for the current period amounted to **1,861,955.00 yuan**[482](index=482&type=chunk) Related Party Payables | Item Name | Related Party | Period-End Book Balance (yuan) | Period-Beginning Book Balance (yuan) | | :--- | :--- | :--- | :--- | | Accounts Payable | Dayuan Steel Co., Ltd. | 768,015.57 | 2,078,955.57 | | Accounts Payable | Wuhan Puchang Intelligent Technology Co., Ltd. | 27,981.38 | 27,981.38 | [14. Share-Based Payments](index=110&type=section&id=14.%20Share-Based%20Payments) This section discloses the overall status of the company's third employee stock ownership plan's share-based payments, including the number of shares granted, fair value determination, and the total expense recognized Overall Share-Based Payment Status | Category of Grantee | Number Granted for Current Period | Amount Granted for Current Period (yuan/share) | | :--- | :--- | :--- | | Third Employee Stock Ownership Plan | 2,974,500 | 9.12 | - The fair value of equity instruments on the grant date is determined by the closing price of the company's stock on the grant date[487](index=487&type=chunk) - The total expense recognized for equity-settled share-based payments in the current period was **7,495,740.00 yuan**, and it was recorded in capital reserve[487](index=487&type=chunk)[488](index=488&type=chunk) [15. Commitments and Contingencies](index=111&type=section&id=15.%20Commitments%20and%20Contingencies) As of June 30, 2025, the company had no significant commitments or material contingencies requiring disclosure - As of June 30, 2025, the company had no significant commitments requiring disclosure[489](index=489&type=chunk) - As of June 30, 2025, the company had no significant contingencies requiring disclosure[490](index=490&type=chunk)[491](index=491&type=chunk) [16. Post-Balance Sheet Events](index=111&type=section&id=16.%20Post-Balance%20Sheet%20Events) This section states that there are no other important post-balance sheet events requiring disclosure - No other post-balance sheet events require explanation[490](index=490&type=chunk) [17. Other Significant Matters](index=111&type=section&id=17.%20Other%20Significant%20Matters) This section discloses the company's segment information, with reporting segments determined by geographical location, showing that domestic segments contribute the majority of operating revenue and assets [1. Segment Information](index=111&type=section&id=1.%20Segment%20Information) The company defines reporting segments based on geographical location, allocating revenue and costs by final sales destination and assets/liabilities by operating entity location, with domestic segments contributing the majority of financial figures - The company determines reporting segments based on geographical segments, with operating revenue and operating costs allocated by the final sales destination, and assets and liabilities allocated by the location of the operating entity[492](index=492&type=chunk) Reporting Segment Financial Information (2025 H1) | Item | Domestic (yuan) | Overseas (yuan) | Inter-Segment Eliminations (yuan) | Total (yuan) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 747,379,803.60 | 152,221,367.85 | - | 899,601,171.45 | | Operating Cost | 564,718,244.72 | 115,274,723.79 | - | 679,992,968.51 | | Total Assets | 2,232,567,535.56 | 112,741,077.03 | 18,267,340.37 | 2,327,041,272.22 | | Total Liabilities | 1,034,287,304.62 | 37,185,657.55 | 18,267,340.37 | 1,053,205,621.80 | [18. Notes to Parent Company Financial Statement Items](index=112&type=section&id=18.%20Notes%20to%20Parent%20Company%20Financial%20Statement%20Items) This section provides detailed notes for key items in the parent company's financial statements, including accounts receivable, other receivables, long-term equity investments, operating revenue and costs, and investment income - The parent company's accounts receivable had a period-end book value of **247,116,626.00 yuan**, with **30,065,951.65 yuan** provided for bad debts[498](index=498&type=chunk) - The parent company's other receivables had a period-end book value of **46,507,176.96 yuan**, with a significant portion related to intercompany transactions[507](index=507&type=chunk)[511](index=511&type=chunk) - The parent company's long-term equity investments primarily consist of investments in subsidiaries, with a period-end book value of **709,573,700.00 yuan**[520](index=520&type=chunk) - The parent company's operating revenue for the current period was **351,070,653.53 yuan**, and operating cost was **262,542,067.66 yuan**[526](index=526&type=chunk) - The parent company's investment income for the current period was **-450,592.91 yuan**, primarily affected by equity-method long-term equity investment income and accounts receivable financing discount losses[530](index=530&type=chunk) [19. Supplementary Information](index=118&type=section&id=19.%20Supplementary%20Information) This section provides supplementary financial details, including a detailed statement of non-recurring gains and losses and key metrics such as return on net assets and earnings per share [1. Detailed Statement of Non-Recurring Gains and Losses for the Current Period](index=118&type=section&id=1.%20Detailed%20Statement%20of%20Non-Recurring%20Gains%20and%20Losses%20for%20the%20Current%20Period) Total non-recurring gains and losses for the current period amounted to 2.80 million yuan, primarily from asset disposals, government grants, and fair value changes, net of tax and minority interests Detailed Statement of Non-Recurring Gains and Losses for the Current Period | Item | Amount (yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 933,620.92 | | Government grants recognized in current profit and loss | 3,660,967.04 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains and losses from disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations | -19,040.24 | | Other non-operating income and expenses apart from the above | -61,608.31 | | Less: Income tax impact | 1,520,851.42 | | Minority interest impact (after tax) | 189,217.52 | | **Total** | **2,803,870.47** | [2. Return on Net Assets and Earnings Per Share](index=119&type=section&id=2.%20Return%20on%20Net%20Assets%20and%20Earnings%20Per%20Share) During the reporting period, the weighted average return on net assets attributable to common shareholders was 6.98%, with basic and diluted earnings per share both at 0.38 yuan Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets | Basic Earnings Per Share (yuan/share) | Diluted Earnings Per Share (yuan/share) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders of the company | 6.98% | 0.38 | 0.38 | | Net profit attributable to common shareholders of the company after deducting non-recurring gains and losses | 6.74% | 0.37 | 0.37 |

Group 1 - The core viewpoint of the news is that Meili Technology (300611) has shown a decline in stock price despite significant growth in revenue and net profit in the latest quarterly report [1][3] - As of August 8, 2025, Meili Technology's stock closed at 24.92 yuan, down 1.74%, with a trading volume of 87,300 lots and a transaction amount of 218 million yuan [1] - The company experienced a net outflow of main funds amounting to 34.12 million yuan, which accounted for 15.62% of the total transaction amount [1] Group 2 - For the first quarter of 2025, Meili Technology reported total operating revenue of 416 million yuan, representing a year-on-year growth of 37.76% [1] - The net profit attributable to shareholders was 33.99 million yuan, showing a year-on-year increase of 110.90%, while the non-recurring net profit was 32.08 million yuan, up 116.73% year-on-year [1] - The company's liquidity ratios are strong, with a current ratio of 1.556 and a quick ratio of 1.170, while the debt-to-asset ratio stands at 47.49% [1] Group 3 - Meili Technology, established in 2002 and located in Shaoxing, primarily engages in the automotive manufacturing industry [2][3] - The company has made investments in 9 enterprises and has participated in 5 bidding projects [2] - Meili Technology holds 4 trademark registrations and 81 patents, along with 10 administrative licenses [2]

Group 1 - The company reported a decrease in the number of shareholders, with a total of 28,687 shareholders as of July 31, representing a reduction of 2,393 shareholders compared to the previous period, which is a decline of 7.70% [2] - The company announced its half-year performance forecast on July 15, expecting a net profit between 78 million to 90 million yuan, with a change range of 66.85% to 92.52% [2]

Group 1 - The first successful offshore material transportation using a 2-ton eVTOL named "Kai Rui Ou" marks a significant advancement in low-altitude logistics applications in China [4] - The eVTOL has a range of 200 kilometers, a maximum speed of 200 kilometers per hour, and a payload capacity of 400 kilograms [4] - The low-altitude logistics market in China is expected to exceed 100 billion yuan in the next five years, indicating strong growth potential for the industry [4] Group 2 - eVTOL concept stocks have seen an average price increase of 17.69% this year, with Meili Technology's stock rising by 127.4% [5] - Companies like Yongyue Technology, Shanhe Intelligent, and Ruikeda have also experienced significant stock price increases, all exceeding 60% [5] - Beidouxing's projected net profit for the first half of the year is estimated to be between 1 million to 1.5 million yuan, benefiting from rapid growth in emerging fields [6]

Group 1 - The core viewpoint of the news is that Meili Technology (300611) experienced a decline in stock price and significant net outflow of funds, despite reporting strong revenue and profit growth in its latest quarterly earnings [1][3] - As of July 30, 2025, Meili Technology's stock closed at 24.07 yuan, down 3.14%, with a turnover rate of 7.73% and a trading volume of 114,600 hands, amounting to 277 million yuan [1] - The company's latest quarterly report shows total operating revenue of 416 million yuan, a year-on-year increase of 37.76%, and a net profit attributable to shareholders of 33.99 million yuan, up 110.90% year-on-year [1] Group 2 - Meili Technology has a current liquidity ratio of 1.556 and a quick ratio of 1.170, indicating a solid short-term financial position [1] - The company has a debt-to-asset ratio of 47.49%, reflecting its leverage level [1] - Meili Technology was established in 2002 and is primarily engaged in the automotive manufacturing industry, with a registered capital of 2.11 billion yuan [1][2] Group 3 - The company has made investments in 9 enterprises and participated in 5 bidding projects, showcasing its active engagement in business expansion [2] - Meili Technology holds 4 trademark registrations and 80 patents, indicating a focus on intellectual property development [2] - The company possesses 10 administrative licenses, which may enhance its operational capabilities [2]

Core Insights - Meili Technology (300611) reported that as of July 18, 2025, the total number of shareholders is 31,080 [1] Company Summary - The company has engaged with investors through an interactive platform, providing transparency regarding shareholder numbers [1]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - North - Exchange convertible bonds have certain special features in terms of clause settings and transfer transactions, with relatively low overall issuance scale. In the current policy environment encouraging mergers and acquisitions, private placement convertible bonds may become an important tool for North - Exchange listed companies to introduce strategic investors and be widely used as a payment instrument for M&A. With the slowdown of new supply of public convertible bonds in the Shanghai and Shenzhen Stock Exchanges, continuous attention to North - Exchange related investment opportunities is recommended [2][13]. - Considering the impact of refinancing policies, the subsequent issuance pressure of convertible bonds is expected to be low. As the stock market recovers, the return of incremental funds in convertible bonds drives the valuation to a relatively high historical level, and attention should be paid to the risk of valuation correction. In terms of clauses, continue to focus on the space for lower - revision games, be vigilant against call risks, and appropriately focus on short - term game opportunities of near - maturity convertible bonds. Industries to focus on include popular themes, domestic demand - oriented sectors, central state - owned enterprises under the Chinese characteristic valuation system, and the military industry [16]. 3. Summary According to the Directory 3.1.转债周度专题与展望 3.1.1. 北交所转债怎么看？ - As of July 25, there were 5 convertible bond proposals on the North - Exchange. The current proposals are all private placement convertible bonds with an issuance scale within 150 million yuan. North - Exchange private placement convertible bonds usually do not have a "downward revision clause", suspend transfer 10 trading days before the end of the conversion period, have a clear 18 - month conversion restriction requirement, and a non - call period of at least 6 months [1][10]. - Taking the private placement convertible bonds of Youji Co., Ltd. as an example, it has obvious features in the initial conversion price, conditional call clause, non - downward revision clause, and put period. Other clauses are relatively conventional, with an issuance term of 6 years and a put trigger threshold of 70% [11][13]. 3.1.2. 周度回顾与市场展望 - This week, the three major stock indices fluctuated upward, with active trading and obvious rotation of hot sectors. The A - share market valuation is recovering. Measures such as large - scale equipment renewal and consumer goods replacement are expected to boost domestic demand, while export growth may decline. A weak resonance between the domestic economic fundamentals and the capital market is expected to gradually start [14][15]. - In terms of convertible bonds, considering the impact of refinancing policies, the subsequent issuance pressure is expected to be low. As the stock market recovers, the return of incremental funds drives the valuation to a relatively high historical level, and attention should be paid to the risk of valuation correction. Industries to focus on include popular themes, domestic demand - oriented sectors, central state - owned enterprises under the Chinese characteristic valuation system, and the military industry [16]. 3.2. 转债市场周度跟踪 3.2.1. 权益市场收涨，建材煤炭钢铁领涨 - This week, the major equity market indices rose. The market style was more inclined to small - cap value stocks. Among the 27 Shenwan industry indices, 27 rose and 4 fell. Building materials, coal, and steel industries led the market [19][22]. 3.2.2. 转债市场大涨，百元溢价率中位数抬升 - This week, the convertible bond market rose. The average daily trading volume increased. Most industries in the convertible bond market rose, with coal, building materials, and petroleum and petrochemical industries leading the gains. Only bank convertible bonds fell. Most individual bonds rose. In terms of price, the number of absolute low - price convertible bonds decreased, and the median price increased significantly. The weighted conversion value of the whole market increased, and the premium rate decreased [24][31][36]. 3.2.3. 不同类型转债高频跟踪 3.2.3.1. 分类估值变化 - This week, the valuations of equity - biased and balanced convertible bonds increased significantly, with a higher increase in balanced convertible bonds. The valuations of convertible bonds with a parity of 0 - 80 yuan and above 130 yuan decreased, while those of other parity convertible bonds increased. The valuations of most convertible bonds of each rating decreased, and the valuations of convertible bonds in each scale category decreased [51]. 3.2.3.2. 市场指数表现 - This week, convertible bonds of all ratings rose. Since 2023, high - rating AAA convertible bonds have shown stable performance, while low - rating convertible bonds have shown weaker anti - decline attributes and greater rebound strength. Convertible bonds of all scales rose this week [62][64]. 3.3. 转债供给与条款跟踪 3.3.1. 本周一级预案发行 - Two new convertible bonds were listed this week, and one was issued but not yet listed. The first - day closing prices of Libo Convertible Bonds and Guanghe Convertible Bonds were 129.46 yuan and 129.80 yuan respectively, with reasonable pricing. The scale of the to - be - listed Bo 25 Convertible Bonds is 2.802 billion yuan. There were 9 first - level approvals this week [69]. 3.3.2. 下修&赎回条款 - This week, 9 convertible bonds were expected to trigger downward revision, 9 announced no downward revision, 2 proposed downward revision, and 1 announced the downward - revision result. Thirteen convertible bonds were expected to trigger call, 4 announced no call, and 4 announced early call. As of the end of this week, 3 convertible bonds were still in the put declaration period, and 19 were in the company's capital reduction and settlement declaration period [73][77][79].

Group 1 - Haitong Development reported a net profit of 86.87 million yuan for the first half of 2025, a year-on-year decrease of 64.14% [1] - Haitong Development achieved an operating income of 1.8 billion yuan, a year-on-year increase of 6.74% [1] - Crystal Integrated expects a net profit increase of 39.04% to 108.55% for the first half of 2025, with projected revenue between 5.07 billion yuan and 5.32 billion yuan [1] Group 2 - Aerospace Universe anticipates a net profit increase of 50.59% for the first half of 2025, with a projected net profit of 34.38 million yuan [2] - Aerospace Universe's net profit excluding non-recurring gains is expected to grow by 94.90% [2] Group 3 - Guodian Power reported a total power generation of 206.03 billion kWh for the first half of 2025, a year-on-year decrease of 3.61% [3] - The company's market-based transaction electricity accounted for 91.84% of the total electricity sold [3] Group 4 - Shanghai Pharmaceuticals announced that its tranexamic acid injection has passed the consistency evaluation for generic drugs [5] - The drug is primarily used for treating various bleeding disorders [5] Group 5 - Sanyou Chemical received approval to issue up to 900 million yuan in technology innovation corporate bonds [7] - The bond issuance is valid for 24 months from the date of approval [7] Group 6 - Baiyuntian's BAT4406F injection drug has received approval for clinical trials for additional indications [9] - The drug is a next-generation fully human anti-CD20 antibody [9] Group 7 - Huason Pharmaceutical received three drug re-registration approval notices [10] - The approved drugs include Ganji Bingmei tablets and other formulations [10] Group 8 - Shanying International plans to establish the Zhiyuan Fund with a total scale of 100 million yuan [13] - The fund will primarily invest in product companies related to industrial scenarios [13] Group 9 - Yiqiu Resources announced the sale of two properties in Malaysia for a total of approximately 3.67 million yuan [15] - The sale is part of the company's asset management strategy [15] Group 10 - Guizhou Bailing plans to apply for loans totaling no more than 920 million yuan from multiple banks [16] - The loans will be used to replace maturing loans and supplement working capital [16] Group 11 - Samsung Medical's subsidiary won a transformer procurement contract in Brazil worth approximately 341 million yuan [16] - The contract is part of the company's expansion into international markets [16] Group 12 - Changying Tong expects a net profit increase of 72.12% to 110.33% for the first half of 2025 [17] - The projected revenue is between 173 million yuan and 211 million yuan [17] Group 13 - Canqin Technology anticipates a net profit increase of 50.14% to 61.85% for the first half of 2025 [17] - The expected revenue is between 286 million yuan and 290 million yuan [17] Group 14 - Daya Shengxiang signed a lease agreement with an annual rent of 17 million yuan for a production facility [18] - The lease term is for 3 years and 4 months, including a 4-month rent-free period [18] Group 15 - Zhongzai Zihuan announced the resignation of its general manager due to work adjustments [20] - The company will appoint an interim general manager while searching for a permanent replacement [20] Group 16 - Fuwei Co. received a project notification from a well-known luxury brand for seat development [22] - The total sales amount for the project is expected to reach 4.9 billion yuan [22] Group 17 - Meili Technology's application for convertible bonds has been accepted by the Shenzhen Stock Exchange [26] - The issuance is subject to further approval from regulatory authorities [26] Group 18 - Jinzhik Technology announced a stock suspension due to potential control changes [27] - The suspension is expected to last no more than two trading days [27] Group 19 - Zhongtian Technology plans to distribute a cash dividend of 3 yuan per 10 shares [28] - The dividend distribution date is set for July 25, 2025 [28] Group 20 - Huahai Chengke plans to distribute a cash dividend of 0.2002 yuan per share [30] - The dividend distribution date is set for July 29, 2025 [30] Group 21 - Dasheng Intelligent won a smart transportation project contract worth 122 million yuan [31] - The project involves comprehensive monitoring systems for urban rail transit [31] Group 22 - Dongyue Silicon reported a fire incident affecting production operations [32] - The fire has been controlled, but the extent of damage is still being assessed [32] Group 23 - Shaanxi Guotou A reported a net profit of 726 million yuan for the first half of 2025, a year-on-year increase of 5.74% [35] - The company's operating income decreased by 2.95% [35] Group 24 - Yibo Technology announced a plan to reduce shareholding by up to 3% [37] - The reduction is due to the shareholder's funding needs [37] Group 25 - Xiling Information announced a stock suspension due to potential control changes [39] - The suspension is expected to last no more than two trading days [39] Group 26 - Tianli Lithium Energy plans to reduce shareholding by 4.55% through block trading [40] - The reduction is due to the fund's operational timeline nearing its end [40] Group 27 - Sihui Fushi announced plans for a combined shareholding reduction of up to 3% [42] - The reduction is due to the shareholders' personal funding needs [42] Group 28 - Jinma Leisure announced a plan for a combined shareholding reduction of up to 4.83% [44] - The reduction is due to personal funding needs of the controlling shareholder and executives [44] Group 29 - *ST Zitian's stock may be terminated due to financial reporting issues [46] - The company is under regulatory scrutiny for failing to rectify its financial statements [46]

Company Overview - Zhejiang Meili Technology Co., Ltd. (the "Company") was established in May 2002 and is headquartered in Shaoxing, Zhejiang Province. The Company was transformed from Zhejiang Meili Spring Co., Ltd. in November 2010 and is listed on the Shenzhen Stock Exchange since February 20, 2017 [2][3] - The Company operates in the general equipment manufacturing industry, specifically in the spring manufacturing sector, focusing on the research, production, and sales of various types of springs, including suspension system springs, body and interior springs, power system springs, and general springs [2][3] Financial Reporting - The financial statements of the Company are prepared based on the assumption of going concern, indicating no significant doubts about the Company's ability to continue operations for at least the next 12 months [3] - The Company adheres to the accounting principles set forth by the relevant enterprise accounting standards, ensuring that the financial statements accurately reflect its financial position, operating results, and cash flows [3][4] Accounting Policies - The Company employs specific accounting policies and estimates tailored to its operational characteristics, including those related to financial instruments, fixed asset depreciation, and revenue recognition [3][4] - The Company uses the Chinese Yuan (RMB) as its functional currency for accounting purposes [4] Inventory and Cost Management - Inventory is measured at the lower of cost and net realizable value, with provisions for inventory write-downs made when necessary [16] - The Company uses a perpetual inventory system and applies a monthly weighted average method for inventory issuance [16] Long-term Investments - Long-term equity investments are accounted for based on the nature of control, with different accounting treatments for investments in controlled, jointly controlled, and significantly influenced entities [20][21] Revenue Recognition - The Company recognizes revenue based on the fulfillment of performance obligations, determining whether these obligations are satisfied over time or at a point in time [32] - Revenue is measured at the transaction price expected to be received from customers for the transfer of goods or services [32]

Core Viewpoint - Zhejiang Meili High Technology Co., Ltd. is issuing convertible bonds to raise up to RMB 300 million to support its business expansion and enhance its market competitiveness in the automotive parts industry, particularly in high-end spring products and precision injection molding [13][16]. Company Overview - Zhejiang Meili High Technology Co., Ltd. was established on May 16, 2002, with a registered capital of RMB 2,110.7468 million. The company focuses on the research, production, and sales of high-end spring products and precision injection parts, primarily serving the automotive industry [13][14]. - The company has experienced significant growth, with revenue increasing from RMB 1.087 billion to RMB 1.604 billion over the past three years, representing a growth rate of 21.44% [13][15]. Purpose of the Bond Issuance - The issuance of convertible bonds aligns with national development strategies and industry trends, aiming to optimize business layout and maintain competitive advantages [16]. - The funds raised will be used for projects that enhance production capacity and operational efficiency, particularly in response to the growing demand in the automotive sector [16][18]. Financial Performance and Dividend Policy - The company has a proactive profit distribution policy, prioritizing cash dividends. In recent years, it has distributed cash dividends totaling RMB 41.69 million, exceeding its average annual distributable profit of RMB 36.58 million by 113.96% [5][7]. - The company aims to maintain a minimum cash dividend of 20% of the distributable profit when conditions allow [4][5]. Risk Factors - The convertible bonds are rated AA- by Shanghai New Century, indicating a stable outlook. However, the bonds are unsecured, which may increase repayment risks if the company's operational performance deteriorates [8][9]. - The company faces potential risks related to market fluctuations, operational management, and the timely realization of project benefits, which could impact its financial stability and ability to meet bond obligations [8][9][10].