【2025 年 8 月 22 日】 1 浙江万安科技股份有限公司 2025 年半年度报告全文 浙江万安科技股份有限公司 2025 年半年度报告 浙江万安科技股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容 的真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担 个别和连带的法律责任。 公司负责人陈锋、主管会计工作负责人江学芳及会计机构负责人(会计主 管人员)朱超声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 公司存在未来经济环境变化、原材料价格波动、国家政策调整、市场竞争、 产品价格下降等的风险、详细内容见本报告"第三节 十、公司面临的风险和 应对措施。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | 第二节 | 公司简介和主要财务指标 6 | | --- | --- | | 第三节 | 管理层讨论与分析 9 | | 第四节 | 公司治理、环境和社会 22 | | 第五节 | 重要事项 24 | | 第六节 | 股份变动及股东情况 29 | | ...

[Important Notice](index=2&type=section&id=Important%20Notice) This report emphasizes the board of directors, supervisory board, and senior management's assurance of the semi-annual report's truthfulness, accuracy, and completeness, and highlights operational risks - The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the report and assume legal responsibility[4](index=4&type=chunk) - This semi-annual report is unaudited[5](index=5&type=chunk) - The company's head, chief accountant, and head of accounting department declare the financial report to be true, accurate, and complete[5](index=5&type=chunk) - No profit distribution plan or capital reserve to share capital plan is involved[6](index=6&type=chunk) - The report contains forward-looking statements regarding future plans and development strategies, which do not constitute substantive commitments, cautioning investors about investment risks[6](index=6&type=chunk) [Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) This section provides definitions for common terms used in the report, covering company names, reporting periods, industry companies, technical terms, and legal regulations, ensuring accurate understanding of the report's content - Defines basic concepts such as the Company, Reporting Period, and Prior Period[12](index=12&type=chunk) - Lists major semiconductor industry companies and technical terms, such as Cypress, Infineon, NOR Flash, EEPROM, MCU, and VCM Driver[12](index=12&type=chunk)[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) - Explains key industry concepts such as integrated circuit design, wafer, tape-out, and Moore's Law[14](index=14&type=chunk) [Section II Company Profile and Key Financial Indicators](index=8&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section introduces Puya Semiconductor's basic information, contact details, information disclosure channels, and stock overview, focusing on the company's key accounting data and financial indicators for the first half of 2025, explaining the significant decline in net profit, slight increase in operating revenue, decrease in gross margin, increase in period expenses, provision for asset impairment losses, increase in financial expenses, and changes in other income and investment income - The company's stock abbreviation is 'Puya Semiconductor', stock code **688766**, listed on the Shanghai Stock Exchange STAR Market[20](index=20&type=chunk) Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) (Yuan) | Prior Period (Yuan) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 906,700,789.91 | 896,021,178.11 | 1.19 | | Total Profit | 36,296,678.64 | 144,509,266.97 | -74.88 | | Net Profit Attributable to Shareholders | 40,733,416.30 | 135,983,443.55 | -70.05 | | Net Profit Attributable to Shareholders Excluding Non-recurring Gains and Losses | 26,649,378.25 | 151,442,199.65 | -82.40 | | Net Cash Flow from Operating Activities | -42,029,236.48 | -80,552,754.05 | Not Applicable | | Net Assets Attributable to Shareholders (Period-End) | 2,240,372,111.00 | 2,217,473,737.26 | 1.03 | | Total Assets (Period-End) | 2,496,660,786.56 | 2,578,517,753.94 | -3.17 | Key Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.36 | 0.92 | -60.87 | | Diluted Earnings Per Share (Yuan/share) | 0.36 | 0.91 | -60.44 | | Basic Earnings Per Share Excluding Non-recurring Gains and Losses (Yuan/share) | 0.24 | 1.03 | -76.70 | | Weighted Average Return on Net Assets (%) | 1.82 | 6.80 | Decrease of 4.98 percentage points | | Weighted Average Return on Net Assets Excluding Non-recurring Gains and Losses (%) | 1.19 | 7.57 | Decrease of 6.38 percentage points | | R&D Investment as % of Operating Revenue (%) | 16.29 | 12.42 | Increase of 3.87 percentage points | - The decline in net profit is primarily due to a slight increase in operating revenue but a decrease in gross margin (**-2.72 percentage points**), an increase in period expenses (**total increase of 59.0874 million yuan**), provision for asset impairment losses (**year-on-year increase of 57.4409 million yuan**), and an increase in financial expenses (**year-on-year increase of 6.5490 million yuan**)[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) Non-recurring Gains and Losses for H1 2025 | Non-recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Government subsidies recognized in current profit or loss | 15,242,900.00 | | Gains and losses from fair value changes of financial assets and liabilities, and disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations | 406,042.04 | | Other non-operating income and expenses apart from the above | -9.79 | | Less: Income tax impact | 1,564,894.20 | | Total | 14,084,038.05 | Net Profit Excluding Share-Based Payment Impact | Indicator | Current Period (Jan-Jun) (10,000 Yuan) | Prior Period (10,000 Yuan) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Net Profit Excluding Share-Based Payment Impact | 5,819.42 | 15,365.89 | -62.13 | [I. Company Basic Information](index=8&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators-I.%20Company%20Basic%20Information) This section introduces the Chinese name, abbreviation, English name, legal representative, registered address, office address, company website, and email address of Puya Semiconductor (Shanghai) Co., Ltd - The company's Chinese name is Puya Semiconductor (Shanghai) Co., Ltd., abbreviated as Puya Semiconductor[17](index=17&type=chunk) - The legal representative is Wang Nan, and the company website is www.puyasemi.com[17](index=17&type=chunk) [II. Contact Persons and Information](index=8&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators-II.%20Contact%20Persons%20and%20Information) This section provides contact details, including address, phone, fax, and email, for the company's Board Secretary (domestic representative for information disclosure) Qian Jiamei and Securities Affairs Representative Yuan Yixuan - The Board Secretary is Qian Jiamei, and the Securities Affairs Representative is Yuan Yixuan, both reachable at **021-60791797** and ir@puyasemi.com[18](index=18&type=chunk) [III. Information Disclosure and Document Custody Location Changes](index=8&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators-III.%20Information%20Disclosure%20and%20Document%20Custody%20Location%20Changes) This section outlines the company's designated newspapers for information disclosure, the website address for semi-annual reports, and the location for semi-annual report custody - The company's designated newspapers for information disclosure include Shanghai Securities News, China Securities Journal, Securities Times, and Securities Daily[19](index=19&type=chunk) - The semi-annual report is published on the Shanghai Stock Exchange website (www.sse.com.cn), and the custody location is the Company's Board Office[19](index=19&type=chunk) [IV. Company Stock/Depositary Receipts Overview](index=8&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators-IV.%20Company%20Stock%2FDepositary%20Receipts%20Overview) This section briefly introduces the company's stock listing exchange, stock abbreviation, stock code, and previous stock abbreviation, also stating that the company has no depositary receipts - The company's A-shares are listed on the Shanghai Stock Exchange STAR Market, with stock abbreviation 'Puya Semiconductor' and stock code **688766**[20](index=20&type=chunk) - The company has no depositary receipts[21](index=21&type=chunk) [VI. Company Key Accounting Data and Financial Indicators](index=9&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators-VI.%20Company%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This section details the company's key accounting data and financial indicators for the first half of 2025, explaining the year-on-year changes for each indicator, particularly the significant decline in net profit due to a slight increase in operating revenue but a decrease in gross margin, increased period expenses, provision for asset impairment losses, increased financial expenses, and changes in other income and investment income (I) Key Accounting Data This section presents the company's key accounting data for the first half of 2025 in tabular format, including operating revenue, total profit, net profit, net profit attributable to shareholders excluding non-recurring items, net cash flow from operating activities, net assets attributable to shareholders, and total assets, along with their year-on-year changes Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) (Yuan) | Prior Period (Yuan) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 906,700,789.91 | 896,021,178.11 | 1.19 | | Total Profit | 36,296,678.64 | 144,509,266.97 | -74.88 | | Net Profit Attributable to Shareholders | 40,733,416.30 | 135,983,443.55 | -70.05 | | Net Profit Attributable to Shareholders Excluding Non-recurring Gains and Losses | 26,649,378.25 | 151,442,199.65 | -82.40 | | Net Cash Flow from Operating Activities | -42,029,236.48 | -80,552,754.05 | Not Applicable | | Net Assets Attributable to Shareholders (Period-End) | 2,240,372,111.00 | 2,217,473,737.26 | 1.03 | | Total Assets (Period-End) | 2,496,660,786.56 | 2,578,517,753.94 | -3.17 | (II) Key Financial Indicators This section presents the company's key financial indicators for the first half of 2025 in tabular format, including basic earnings per share, diluted earnings per share, basic earnings per share excluding non-recurring items, weighted average return on net assets, and the ratio of R&D investment to operating revenue, along with their year-on-year changes Key Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.36 | 0.92 | -60.87 | | Diluted Earnings Per Share (Yuan/share) | 0.36 | 0.91 | -60.44 | | Basic Earnings Per Share Excluding Non-recurring Gains and Losses (Yuan/share) | 0.24 | 1.03 | -76.70 | | Weighted Average Return on Net Assets (%) | 1.82 | 6.80 | Decrease of 4.98 percentage points | | Weighted Average Return on Net Assets Excluding Non-recurring Gains and Losses (%) | 1.19 | 7.57 | Decrease of 6.38 percentage points | | R&D Investment as % of Operating Revenue (%) | 16.29 | 12.42 | Increase of 3.87 percentage points | - Net profit attributable to shareholders decreased by **95.25 million yuan** year-on-year, primarily due to a slight **1.19%** increase in operating revenue but a **2.72 percentage point** decrease in comprehensive gross margin, resulting in a **21.0438 million yuan** year-on-year decrease in gross profit[22](index=22&type=chunk)[23](index=23&type=chunk) - Period expenses (R&D, management, sales expenses) collectively increased by **59.0874 million yuan** year-on-year, mainly due to the expansion of the R&D team and the in-depth development of R&D projects[24](index=24&type=chunk) - Asset impairment losses increased by **57.4409 million yuan** year-on-year, primarily due to the company's prudent provision for inventory impairment[24](index=24&type=chunk) - Financial expenses increased by **6.5490 million yuan** year-on-year, mainly due to the impact of macroeconomic interest rate cuts and USD exchange rate fluctuations, leading to a decrease in interest income and exchange gains[25](index=25&type=chunk) - Net cash flow from operating activities increased by **38.5235 million yuan** year-on-year, primarily due to a **54.9424 million yuan** increase in cash received from sales of goods and services, a **45.6674 million yuan** decrease in payments for purchases from upstream suppliers, offset by a **49.9367 million yuan** increase in employee salaries and wages paid[27](index=27&type=chunk) [VIII. Non-recurring Gains and Losses and Amounts](index=10&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators-VIII.%20Non-recurring%20Gains%20and%20Losses%20and%20Amounts) This section details the company's non-recurring gains and losses for the first half of 2025, primarily including government subsidies, fair value changes in financial assets, and income tax impact, totaling **14.0840 million yuan** Non-recurring Gains and Losses for H1 2025 | Non-recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Government subsidies recognized in current profit or loss | 15,242,900.00 | | Gains and losses from fair value changes of financial assets and liabilities, and disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations | 406,042.04 | | Other non-operating income and expenses apart from the above | -9.79 | | Less: Income tax impact | 1,564,894.20 | | Total | 14,084,038.05 | [IX. Companies with Equity Incentive or Employee Stock Ownership Plans May Choose to Disclose Net Profit Excluding Share-Based Payment Impact](index=11&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators-IX.%20Companies%20with%20Equity%20Incentive%20or%20Employee%20Stock%20Ownership%20Plans%20May%20Choose%20to%20Disclose%20Net%20Profit%20Excluding%20Share-Based%20Payment%20Impact) This section discloses the company's net profit for the first half of 2025, excluding the impact of share-based payments, which was **58.1942 million yuan**, a **62.13%** decrease year-on-year Net Profit Excluding Share-Based Payment Impact | Indicator | Current Period (Jan-Jun) (10,000 Yuan) | Prior Period (10,000 Yuan) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Net Profit Excluding Share-Based Payment Impact | 5,819.42 | 15,365.89 | -62.13 | [Section III Management Discussion and Analysis](index=13&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section details Puya Semiconductor's operating performance in the first half of 2025, including the semiconductor industry's development, the performance of its main businesses (memory chips and 'memory+' series chips), R&D investment and achievements, capacity assurance, team building, and internal governance, while also analyzing risks such as product R&D, basic process technology authorization, market competition, product quality, talent loss, intellectual property, supplier concentration, scale expansion, gross margin fluctuations, accounts receivable, inventory impairment, IPO project implementation, changes in income tax preferential policies, and macroeconomic and geopolitical risks - The integrated circuit industry, where the company operates, is the foundation of the global information industry, benefiting from technological advancements, growing market demand, and policy support, but faces challenges such as the gap in high-end chips and 'anti-globalization'[36](index=36&type=chunk)[37](index=37&type=chunk) - According to the WSTS report, the global semiconductor market size is projected to reach **700.9 billion USD** in 2025, a **11.2%** year-on-year increase, with the memory market size expected to reach **189 billion USD**, a **13%** year-on-year increase[38](index=38&type=chunk) - The company maintained high R&D investment, with R&D expenses of **148 million yuan** in H1 2025, accounting for **16.29%** of operating revenue, a **3.87 percentage point** increase year-on-year[54](index=54&type=chunk)[92](index=92&type=chunk) - The company covers the full range of NOR Flash products through its SONOS and ETOX dual process platforms, with **40nm SONOS** process already in mass production, and **ETOX 4Xnm 64Mbit** products having completed prototype verification[41](index=41&type=chunk)[42](index=42&type=chunk)[55](index=55&type=chunk) - 'Memory+' series chips (MCU and VCM Driver) revenue increased by **35.62%** year-on-year, with MCU products having mass-produced over a hundred models across five major M0+ and M4 series, and multiple VCM Driver products achieving mass production, forming a synergistic effect with EEPROM[47](index=47&type=chunk)[49](index=49&type=chunk)[51](index=51&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - The company faces risks such as product R&D failure, expiration of basic process technology authorization, intensified market competition, talent loss, intellectual property disputes, high supplier concentration, gross margin fluctuations, and inventory impairment[101](index=101&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk)[113](index=113&type=chunk)[115](index=115&type=chunk)[117](index=117&type=chunk) [I. Overview of the Company's Industry and Main Business During the Reporting Period](index=13&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis-I.%20Overview%20of%20the%20Company%27s%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) This section details Puya Semiconductor's integrated circuit industry overview and main businesses, including the market performance, technical characteristics, and application areas of its memory series chips (NOR Flash and EEPROM) and 'memory+' series chips (MCU and VCM Driver), noting a year-on-year decrease in memory series chip revenue and a significant increase in 'memory+' series chip revenue during the reporting period (I) Industry Overview This section describes the integrated circuit industry, where the company operates, as the foundation of the global information industry, rapidly developing with technological advancements, growing market demand, and policy support, noting China's expanding semiconductor industry scale and improving technical level, despite a persistent gap in high-end chips, making domestic substitution a crucial trend, with global semiconductor market growth projected for 2025 and 2029, and increasing demand for memory chips - The company operates in the 'C Manufacturing - C39 Computer, Communication and Other Electronic Equipment Manufacturing' industry, specifically '6520 Integrated Circuit Design'[35](index=35&type=chunk) - The integrated circuit industry is the foundation of the global information industry, giving rise to innovative applications such as **5G, 6G, IoT, smartphones, and AI large models**[36](index=36&type=chunk) - China's semiconductor industry scale continues to expand, and its technological level is gradually improving, but there are still significant gaps in some high-end chips and key equipment areas, with the state issuing policies to support domestic substitution[37](index=37&type=chunk) - According to the WSTS report, the global semiconductor market size is projected to reach **700.9 billion USD** in 2025, a **11.2%** year-on-year increase, with the memory market size expected to reach **189 billion USD**, a **13%** year-on-year increase[38](index=38&type=chunk) (II) Main Business Operations This section details the company's two main business segments: memory series chips (NOR Flash and EEPROM) and 'memory+' series chips (MCU and VCM Driver), noting a year-on-year decrease in memory series chip revenue, but progress in NOR Flash's **40nm SONOS** process and EEPROM's automotive and industrial applications, while 'memory+' series chip revenue significantly increased, with an expanding MCU product line and VCM Driver chips achieving mass production and synergistic effects with EEPROM H1 2025 Main Business Revenue and Gross Margin | Product Line | Operating Revenue (100 million yuan) | Year-on-Year Change | Gross Margin (%) | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | Memory Series Chips | 6.73 | Down 6.98% | 31.82 | Down approximately 3 percentage points | | 'Memory+' Series Chips | 2.33 | Up 35.62% | 28.69 | Down 0.55 percentage points | - NOR Flash products utilize SONOS and ETOX processes, with **4Mbit to 128Mbit** capacity products under **40nm SONOS** process already in mass production, **ETOX 4Xnm 64Mbit** products having completed prototype verification, and having passed AEC-Q100 automotive grade certification[41](index=41&type=chunk)[42](index=42&type=chunk) - EEPROM products cover capacities from **2Kbit to 4Mbit**, primarily using **130nm** process, with some medium and large capacities using **95nm** and below processes, achieving batch delivery in industrial control and automotive fields, and the SPD product line successfully mass-produced and shipped[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) - MCU products, based on ARM Cortex-M cores, have successfully mass-produced over a hundred models across five major M0+ and M4 product series, covering **55nm** and **40nm** process technologies, applied in downstream fields such as smart homes, small appliances, BMS, and drones[49](index=49&type=chunk)[50](index=50&type=chunk) - Multiple VCM Driver chips are in mass production, supporting the **1.2V PD** series, with the third-generation VOIS (Optical Image Stabilization Voice Coil Motor Driver) chip achieving mass production, enhancing anti-shake performance, and forming a strong synergistic effect with EEPROM products[51](index=51&type=chunk) [II. Discussion and Analysis of Operating Performance](index=16&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis-II.%20Discussion%20and%20Analysis%20of%20Operating%20Performance) This section summarizes the company's overall operating performance in the first half of 2025, noting record-high operating revenue but a significant decline in net profit, alongside sustained high R&D investment, optimization of memory product lines, expansion of 'memory+' series products, and strengthened capacity assurance, team building, and internal governance, including the implementation of equity incentive and profit distribution plans - In H1 2025, the company achieved total operating revenue of **907 million yuan**, a **1.19%** increase year-on-year, setting a new record since its establishment[53](index=53&type=chunk) - Net profit attributable to owners of the parent company was **40.7334 million yuan**, a **70.05%** decrease year-on-year; net profit attributable to owners of the parent company excluding non-recurring gains and losses was **26.6494 million yuan**, a **82.40%** decrease[53](index=53&type=chunk) - During the reporting period, the company invested **148 million yuan** in R&D expenses, accounting for **16.29%** of operating revenue, a **3.87 percentage point** increase year-on-year[54](index=54&type=chunk) - The Flash product line, through complementary SONOS and ETOX processes, launched **40E** and **4Xnm** process products, maintaining cost advantages and expanding into high-end industrial, white goods, PC, communication, and automotive sectors[55](index=55&type=chunk) - EEPROM products consolidated market share in advantageous areas such as mobile phone cameras, captured new demands from action cameras and smartwatches, and continued to expand into automotive electronics application scenarios such as body domain control, motor control, and battery BMS[56](index=56&type=chunk) - MCU products continued to refine the M0+ category, promoted M4 market expansion, launched series dedicated to home appliance main control, touch, and brushless motors, and continuously expanded software and solution design advantages[58](index=58&type=chunk) - The VCM Driver product line gained market share in open-loop and other two-in-one markets, introducing numerous brand mobile phone customers; it continuously launched new generations of discrete VOIS and integrated OIS products, achieving rapid volume growth[59](index=59&type=chunk) - The company continued to increase talent investment, actively expanded its R&D team, and implemented an equity incentive plan, covering over **80%** of all active employees[61](index=61&type=chunk) - The company implemented the 2024 annual profit distribution plan, distributing a cash dividend of **4.30 yuan (tax inclusive)** per 10 shares and converting **4 shares** from capital reserves per 10 shares[62](index=62&type=chunk) [III. Analysis of Core Competitiveness During the Reporting Period](index=17&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis-III.%20Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) This section analyzes Puya Semiconductor's core competitiveness, primarily in its core technological advantages (including innovative design and processes for NOR Flash, EEPROM, MCU, and VCM Driver), core team advantages (possessing deep industry experience and R&D capabilities), rapidly expanding customer resources, and comprehensive product system, establishing a competitive edge through independent intellectual property and multi-product line synergy - The company's core technologies cover NOR Flash's SONOS and ETOX processes, EEPROM's **130nm** and **95nm** and below processes, MCU's ARM Cortex-M core, and VCM Driver chips[65](index=65&type=chunk)[66](index=66&type=chunk)[19](index=19&type=chunk) - NOR Flash products feature wide voltage, ultra-low power consumption, fast erase, and high cost-effectiveness, with **40nm SONOS** process at an industry-leading technological level[65](index=65&type=chunk)[41](index=41&type=chunk) - EEPROM products offer advantages such as high reliability, small footprint, and high cost-effectiveness, with erase cycles up to **4 million times** and data retention for over **200 years**[66](index=66&type=chunk)[44](index=44&type=chunk) - MCU chips feature low power consumption, high reliability, high cost-effectiveness, and superior electromagnetic interference resistance[66](index=66&type=chunk) - As of June 30, 2025, the company has been granted **64 invention patents** and **61 integrated circuit layout design certificates**, establishing a complete independent intellectual property system[66](index=66&type=chunk) - The core team has an average of over **15 years** of work experience, possessing deep industry experience in IDM, Foundry, and Fabless models[67](index=67&type=chunk) - Customer resources are extensive, with memory products covering well-known enterprises such as OPPO, vivo, Honor, Xiaomi, and Samsung; MCU products cover terminal brands such as SKG, Midea, Xiaomi, and Roborock[68](index=68&type=chunk)[69](index=69&type=chunk) - The company is one of the few chip design companies in the industry that simultaneously possesses NOR Flash, EEPROM, MCU, and Driver product lines, capable of providing comprehensive memory chip solutions[71](index=71&type=chunk) (I) Core Competitiveness Analysis This section analyzes Puya Semiconductor's core competitiveness, primarily in its core technological advantages, core team advantages, rapidly expanding customer resources, and product system advantages, highlighting the company's innovative technology and cost advantages in NOR Flash, MCU, and EEPROM, its experienced core team, extensive customer base covering well-known domestic and international brands, and ability to provide comprehensive chip solutions - The company innovatively applied SONOS process to R&D design in the NOR Flash field, and jointly developed and optimized **40nm** and new generation **40E** process technologies with wafer fabs, resulting in products featuring wide voltage, ultra-low power consumption, fast erase, and high cost-effectiveness[65](index=65&type=chunk) - MCU chips embed Flash and SRAM memory, combining low-power features and technology, offering low power consumption, high reliability, high cost-effectiveness, and superior electromagnetic interference resistance[66](index=66&type=chunk) - EEPROM products, in collaboration with wafer fabs, optimized **130nm** and **95nm** and below process technologies, achieving high reliability, small footprint, and high cost-effectiveness, with erase cycles up to **4 million times** and data retention for up to **200 years**[66](index=66&type=chunk) - The company's core team has an average of over **fifteen years** of work experience, possessing deep industry experience in IDM, Foundry, and Fabless models, and is highly experienced in technology R&D, market sales, and engineering management[67](index=67&type=chunk) - Memory products are widely used in TWS Bluetooth headsets, industrial control, automotive electronics, and other fields, covering well-known enterprises such as OPPO, vivo, Honor, Xiaomi, and Samsung; MCU products cover terminal brands such as SKG, Midea, Xiaomi, and Roborock[68](index=68&type=chunk)[69](index=69&type=chunk) - The company's product system covers NOR Flash, EEPROM, MCU, and VCM Driver chips, offering diverse solutions with capacities from **2Kbit to 1Gbit**, wide voltage operation, ultra-small packaging, and integrated/external options[70](index=70&type=chunk) - The company is one of the few chip design companies in the industry that simultaneously possesses NOR Flash, EEPROM, MCU, and Driver product lines, capable of providing comprehensive memory chip solutions[71](index=71&type=chunk) (III) Core Technologies and R&D Progress This section details Puya Semiconductor's core technologies and their advancements in memory chips, NOR Flash, EEPROM, microcontrollers, and analog VCM Driver chips, including ultra-low power design, wide power supply voltage design, high reliability design, and advanced process node optimization, noting significant progress in R&D investment, patent applications, and ongoing projects, with continuous growth in R&D personnel and compensation during the reporting period - The company continues to expand in the memory chip sector, conducting innovative technology reserves for next-generation processes below **40nm** and floating-gate next-generation technologies, launching **1.1V** ultra-low voltage and ultra-low power consumption innovative technology[72](index=72&type=chunk) - Core technologies include ultra-low power design, wide power supply voltage design, ultra-low voltage design (**1.2V EEPROM** supporting a minimum of **1.1V**), high reliability design (EEPROM erase cycles up to **4 million times**), packaging-oriented reliability design (WLCSP dicing slot technology), and design for product flexibility and competitiveness[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) - NOR Flash core technologies include the SONOS process platform (dual-transistor 2T cell common source CSL structure, low power consumption, fast read) and power optimization, read speed enhancement, over-erase protection, and redundant bitline automatic repair technology under the ETOX process[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk) - EEPROM core technologies include memory cell improvement technology under **130nm** process (**4 million erase cycles, 200 years data retention**), development and upgrade of **95nm** and below process technologies, reliability and cost optimization design combining process and design, error correction code (ECC, differential storage) technology, and advanced miniaturized packaging technology[82](index=82&type=chunk)[84](index=84&type=chunk) - Microcontroller core technologies include wide voltage MCU technology (**1.7V-5.5V**), multi-IO design technology, independently developed embedded Flash memory technology based on advanced memory processes, low power consumption design technology, cost optimization design combining process and design, high-performance touch technology, and high-performance motor drive control technology[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) - Analog product VCM Driver chip core technologies include low interface voltage technology (**1.2V-3.6V**), fast motor stabilization algorithm (within **10ms**), VCM Driver and EEPROM two-in-one product development technology, dynamic voltage adaptive drive technology, and high-frequency OIS Driver[89](index=89&type=chunk) - During the reporting period, the company obtained **8 invention patents**, submitted **4 new invention patents**, obtained **6 integrated circuit layout design registrations**, and **1 software copyright registration**[90](index=90&type=chunk)[91](index=91&type=chunk) R&D Investment Overview | Indicator | Current Period (Yuan) | Prior Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 147,723,255.66 | 111,267,953.07 | 32.76 | | Total R&D Investment | 147,723,255.66 | 111,267,953.07 | 32.76 | | Total R&D Investment as % of Operating Revenue (%) | 16.29 | 12.42 | Increase of 3.87 percentage points | - The increase in R&D investment primarily stems from increased R&D personnel compensation and higher depreciation and amortization expenses due to the purchase of software and laboratory testing equipment[94](index=94&type=chunk) Ongoing R&D Projects (Current Period Investment Amount) | No. | Project Name | Estimated Total Investment (10,000 Yuan) | Current Period Investment (10,000 Yuan) | Cumulative Investment (10,000 Yuan) | Progress or Stage Achievements | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Derivative Chip Development and Industrialization Project Based on Memory Chips | 28,262.83 | 7,295.69 | 29,958.32 | Ongoing development stage | | 2 | Headquarters Base and Frontier Technology R&D Project | 28,591.63 | 552.17 | 2,742.99 | Completed | | 3 | NOR Flash Chip Upgrade R&D and Industrialization Project | 26,000.00 | 6,365.36 | 26,267.81 | Ongoing development stage | | 4 | New Generation EEPROM Chip R&D and Industrialization Project | 5,000.00 | 559.11 | 3,035.89 | Ongoing development stage | | Total | / | 87,854.46 | 14,772.33 | 62,005.01 | / | R&D Personnel Overview | Indicator | Current Period | Prior Period | | :--- | :--- | :--- | | Number of Company R&D Personnel (persons) | 284 | 227 | | R&D Personnel as % of Total Company Personnel (%) | 60.17 | 61.02 | | Total R&D Personnel Compensation (10,000 Yuan) | 10,021.56 | 8,043.88 | | Average R&D Personnel Compensation (10,000 Yuan) | 35.29 | 35.44 | | Educational Background: PhD | 5 | / | | Educational Background: Master's | 104 | / | | Educational Background: Bachelor's | 163 | / | | Age Structure: Under 30 | 127 | / | | Age Structure: 30-40 | 109 | / | [IV. Risk Factors](index=27&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis-IV.%20Risk%20Factors) This section details the risks Puya Semiconductor may face in its operations, including product R&D failing to keep pace with technological upgrades and market demand, expiration of basic process technology authorization, relatively small market size and intensified competition in main businesses, product quality risks, talent loss risks, intellectual property risks, high supplier concentration and capacity fluctuation risks, internal control and management risks from company expansion, gross margin fluctuation risks, accounts receivable and inventory impairment risks, increased depreciation and amortization expenses after IPO project implementation, changes in income tax preferential policies, and macroeconomic and geopolitical risks - Product R&D risk: Failure to upgrade product performance, outdated process technology, or unsuccessful new product development will adversely affect operating performance[101](index=101&type=chunk)[102](index=102&type=chunk)[104](index=104&type=chunk) - Risk of basic process technology authorization expiration: If the SONOS process authorization (until December 31, 2038) cannot be renewed, the company will be unable to conduct SONOS process NOR Flash R&D design and production[105](index=105&type=chunk) - Risk of intensified market competition: The NOR Flash and EEPROM markets are relatively small and highly competitive, with the company facing external competitive pressure as a new entrant; new entrants in the MCU market may face risks of product introduction, pricing, and profits falling short of expectations[106](index=106&type=chunk)[108](index=108&type=chunk) - Talent loss risk: The chip design industry is technology-intensive, with a shortage of excellent talent, potentially leading to talent loss due to attractive offers from competitors[110](index=110&type=chunk) - Intellectual property risk: The company may face malicious lawsuits from competitors or theft of its intellectual property[111](index=111&type=chunk)[112](index=112&type=chunk) - High supplier concentration risk: The wafer manufacturing, testing, and packaging and testing industries are highly concentrated, and fluctuations in supplier capacity may lead to unmet demand[113](index=113&type=chunk) - Gross margin fluctuation risk: Affected by market demand, capacity supply, declining product unit prices, or rising unit costs[115](index=115&type=chunk) - Inventory impairment risk: Changes in market environment, declining demand, intensified competition, or technological updates may lead to increased provisions for inventory impairment[117](index=117&type=chunk) - Macroeconomic environment risk: Global trade frictions, geopolitical risks, and US export controls may lead to weak downstream demand, business restrictions, reduced orders, or inability of suppliers to provide goods[120](index=120&type=chunk)[121](index=121&type=chunk) [V. Key Operating Performance During the Reporting Period](index=30&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis-V.%20Key%20Operating%20Performance%20During%20the%20Reporting%20Period) This section outlines Puya Semiconductor's key operating results for the first half of 2025, including a slight increase in operating revenue but a significant decline in operating profit and net profit, with a detailed analysis of the reasons for changes in key financial accounts such as operating revenue, operating costs, selling expenses, administrative expenses, financial expenses, R&D expenses, and net cash flow from operating activities - Operating revenue for H1 2025 was **907 million yuan**, a **1.19%** increase compared to H1 2024[124](index=124&type=chunk)[126](index=126&type=chunk) - Operating profit was **36.2967 million yuan**, total profit was **36.2967 million yuan**; net profit attributable to owners of the parent company was **40.7334 million yuan**[124](index=124&type=chunk) - After deducting the impact of non-recurring gains and losses such as government subsidies, net profit attributable to owners of the parent company excluding non-recurring gains and losses was **26.6494 million yuan**[124](index=124&type=chunk) Analysis of Changes in Financial Statement Items | Item | Current Period (Yuan) | Prior Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 906,700,789.91 | 896,021,178.11 | 1.19 | | Operating Costs | 625,395,166.95 | 593,671,742.57 | 5.34 | | Selling Expenses | 37,672,364.20 | 24,916,626.47 | 51.19 | | Administrative Expenses | 35,098,285.75 | 25,221,902.21 | 39.16 | | Financial Expenses | -5,190,304.88 | -11,739,296.49 | Not Applicable | | R&D Expenses | 147,723,255.66 | 111,267,953.07 | 32.76 | | Net Cash Flow from Operating Activities | -42,029,236.48 | -80,552,754.05 | Not Applicable | - Operating costs increased by **5.34%** year-on-year, higher than revenue growth, mainly due to slower recovery in terminal consumer market demand, pressure on product market prices, and product costs being affected by historical inventory procurement costs, resulting in a comprehensive gross margin of **31.03%**, a **2.72 percentage point** decrease from the same period last year[126](index=126&type=chunk)[127](index=127&type=chunk) - Selling expenses, administrative expenses, and R&D expenses increased by **51.19%, 39.16%, and 32.76%** year-on-year, respectively, mainly due to increased personnel, expanded R&D project scale, and rising related expenses[126](index=126&type=chunk)[127](index=127&type=chunk) - Financial expenses increased by **6.5490 million yuan** year-on-year, primarily due to the impact of sustained macroeconomic interest rate cuts and USD exchange rate fluctuations, leading to a decrease in interest income and exchange gains[127](index=127&type=chunk) - Net cash flow from operating activities increased by **38.5235 million yuan** year-on-year, primarily due to a **54.9424 million yuan** increase in cash received from sales of goods and services, a **45.6674 million yuan** decrease in payments for purchases from upstream suppliers, offset by a **49.9367 million yuan** increase in employee salaries and wages paid due to significant growth in company employee size[127](index=127&type=chunk) (III) Analysis of Assets and Liabilities This section analyzes the company's assets and liabilities as of the end of the first half of 2025, focusing on the changes and reasons for items such as trading financial assets, notes receivable financing, other receivables, other non-current financial assets, accounts payable, taxes payable, paid-in capital, and treasury stock Changes in Assets and Liabilities | Item Name | Current Period-End (Yuan) | Prior Period-End (Yuan) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | - | 12,364,310.00 | -100.00 | Due to the company's sale of Huada Jiutian strategic placement shares in the current reporting period | | Notes Receivable Financing | 45,898,677.49 | 35,011,742.20 | 31.10 | Due to an increase in the proportion of bank acceptance bills in sales receipts during the current reporting period | | Other Receivables | 249,932.49 | 2,280,914.55 | -89.04 | Due to the company's provision for bad debts based on aging portfolio in the current reporting period | | Other Current Assets | 8,017,759.02 | 13,320,246.05 | -39.81 | Due to a decrease in the amount of input VAT carried forward at the end of the current reporting period | | Other Non-current Financial Assets | 40,000,000.00 | 15,000,000.00 | 166.67 | Due to the company's additional equity investment of 25 million yuan in the current reporting period | | Accounts Payable | 168,072,756.38 | 275,672,477.04 | -39.03 | Due to a decrease in payables to suppliers within the payment period at the end of the current reporting period | | Employee Compensation Payable | 31,705,779.50 | 50,227,090.03 | -36.88 | Due to employee bonuses accrued by the company at the end of the current reporting period | | Taxes Payable | 11,236,870.99 | 2,242,062.83 | 401.18 | Due to an increase in VAT payable at the end of the current reporting period | | Paid-in Capital (or Share Capital) | 148,049,102.00 | 105,609,735.00 | 40.19 | Due to: 1. The company's 2024 profit distribution converting 4 shares from capital reserves per 10 shares to all shareholders, totaling 42,132,230 new shares; 2. Exercise of employee equity incentives, adding 307,137 new shares | | Treasury Stock | - | 35,098,369.60 | -100.00 | Due to the full utilization of the company's treasury stock in employee equity incentive exercises during the current reporting period, totaling 279,160 shares | (IV) Investment Analysis This section analyzes the company's investment status in the first half of 2025, including equity investments and financial assets measured at fair value, noting the sale of Huada Jiutian strategic placement shares and increased investment in private equity funds for industrial synergy and financial investment purposes - Investment amount during the reporting period was **25 million yuan**, a **66.67%** increase compared to **15 million yuan** in the same period last year[134](index=134&type=chunk) Changes in Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (10,000 Yuan) | Fair Value Change Gain/Loss for Current Period (10,000 Yuan) | Amount Sold/Redeemed for Current Period (10,000 Yuan) | Ending Balance (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | | Stocks (Huada Jiutian) | 1,236.43 | 40.60 | -1,277.03 | - | | Other Non-current Financial Assets | 1,500.00 | - | - | 4,000.00 | | Total | 7,749.60 | 40.60 | -14,587.53 | 10,101.87 | - The company sold Huada Jiutian shares, resulting in zero trading financial assets at period-end[134](index=134&type=chunk)[135](index=135&type=chunk) - New investments in private equity funds include **15 million yuan** in Shanghai Quqing Ruxu Venture Capital Partnership (Limited Partnership) for industrial synergy and **25 million yuan** in Zhuhai Nuoyanchangtian Equity Investment Fund Partnership (Limited Partnership) for financial investment[136](index=136&type=chunk) (VI) Analysis of Major Holding and Participating Companies This section discloses the financial situation of the company's main holding subsidiary, Puya Semiconductor (Chengdu) Co., Ltd., which primarily engages in integrated circuit chip R&D, design, and sales, reporting operating revenue of **5.4591 million yuan** but an operating loss and net loss of **0.7139 million yuan** during the reporting period - The main subsidiary is Puya Semiconductor (Chengdu) Co., Ltd., a wholly-owned subsidiary with a **100%** shareholding[137](index=137&type=chunk)[484](index=484&type=chunk) - Puya Semiconductor (Chengdu) Co., Ltd.'s main business is integrated circuit chip R&D, design, and sales[137](index=137&type=chunk) Puya Semiconductor (Chengdu) Co., Ltd. Financial Data | Indicator | Amount (10,000 Yuan) | | :--- | :--- | | Registered Capital | 2,000.00 | | Total Assets | 1,483.25 | | Net Assets | 1,027.86 | | Operating Revenue | 545.91 | | Operating Profit | -71.39 | | Net Profit | -71.39 | [Section IV Corporate Governance, Environment and Society](index=38&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%20and%20Society) This section primarily outlines the company's governance progress, including no profit distribution or capital reserve to share capital plans, and details the implementation of the company's equity incentive plans, covering the grant of the 2025 restricted stock incentive plan and the vesting and cancellation of the 2022 and 2024 incentive plans - The company's proposed semi-annual profit distribution plan or capital reserve to share capital plan is 'No', involving no distribution or conversion[139](index=139&type=chunk) - In January 2025, the company approved the 2025 Restricted Stock Incentive Plan (Draft), proposing to grant **1.11279 million** restricted shares, with **0.890232 million** shares initially granted[140](index=140&type=chunk) - On February 13, 2025, the company initially granted **0.890232 million** restricted shares to **133** equity incentive recipients at a grant price of **55.49 yuan/share**[141](index=141&type=chunk) - During the reporting period, the company canceled some restricted shares granted in 2021, 2022, and 2024 that had not yet vested[141](index=141&type=chunk) - On June 27, 2025, shares from the vesting periods of the 2022 and 2024 Restricted Stock Incentive Plans were listed for circulation, totaling **307,137** shares issued through private placement, and **279,160** repurchased shares were utilized[142](index=142&type=chunk) [Section V Significant Matters](index=41&type=section&id=Section%20V%20Significant%20Matters) This section details Puya Semiconductor's significant matters during the reporting period, including the fulfillment of commitments made by the company, controlling shareholders, actual controllers, directors, supervisors, and senior management, particularly regarding avoiding horizontal competition, standardizing related-party transactions, stabilizing stock prices, share lock-ups, and equity incentives. Additionally, it elaborates on major related-party transactions, significant guarantees, the overall use of raised funds, progress of IPO projects, use of over-raised funds, management of idle funds, and opinions from intermediary agencies - The company, controlling shareholders, actual controllers and their concerted parties, directors, supervisors, senior management, and core technical personnel have all strictly fulfilled their commitments, including avoiding horizontal competition, standardizing related-party transactions, stabilizing stock prices, and share lock-ups[145](index=145&type=chunk)[148](index=148&type=chunk)[150](index=150&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk)[159](index=159&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk) - During the reporting period, the company engaged in ordinary related-party transactions totaling **10.2223 million yuan (excluding tax)** with Shanghai Weice Semiconductor Technology Co., Ltd. and its controlled subsidiaries, which did not exceed the estimated amount[190](index=190&type=chunk) - The company provided guarantees for employee housing rentals, with a total guarantee balance of **0.1764 million yuan** at the end of the reporting period, accounting for **0.0079%** of net assets; all guaranteed employees provided counter-guarantees, and no defaults occurred[197](index=197&type=chunk) Overall Use of Raised Funds | Source of Raised Funds | Total Raised Funds (10,000 Yuan) | Net Raised Funds (10,000 Yuan) | Total Investment Pledged in Prospectus (10,000 Yuan) | Total Over-Raised Funds (10,000 Yuan) | Cumulative Raised Funds Invested as of Period-End (10,000 Yuan) | Cumulative Raised Funds Investment Progress as of Period-End (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering of Shares | 134,861.41 | 124,554.54 | 34,545.20 | 90,009.34 | 100,877.33 | 80.99 | - The 'Headquarters Base and Frontier Technology R&D Project' has been completed, and the remaining raised funds of **51.1083 million yuan** have been permanently used to supplement working capital[211](index=211&type=chunk) - The company used **200 million yuan** of idle raised funds to temporarily supplement working capital, which has been repaid, and additionally used **170 million yuan** of idle raised funds to temporarily supplement working capital[207](index=207&type=chunk)[208](index=208&type=chunk) - The company used **270 million yuan** of over-raised funds to permanently supplement working capital[211](index=211&type=chunk) [I. Fulfillment of Commitments](index=41&type=section&id=Section%20V%20Significant%20Matters-I.%20Fulfillment%20of%20Commitments) This section details the fulfillment of various commitments made by Puya Semiconductor and its related parties concerning its initial public offering and equity incentives, covering aspects such as avoiding horizontal competition, standardizing related-party transactions, stabilizing stock prices, share lock-ups, and equity incentives, with all commitments strictly fulfilled as scheduled - The company's controlling shareholders, actual controllers, and their concerted parties committed to avoiding horizontal competition, and have not developed, produced, or sold products or businesses that compete with the company[148](index=148&type=chunk) - The company's controlling shareholders, actual controllers and their concerted parties, shareholders holding **5%** or more, and directors, supervisors, and senior management committed to reducing and standardizing related-party transactions, adhering to market principles and fair pricing for equitable transactions[150](index=150&type=chunk) - The company, controlling shareholders, actual controllers and their concerted parties, and directors, supervisors, and senior management committed that there are no fraudulent issuance circumstances, and if such occurs, all new shares will be repurchased[162](index=162&type=chunk) - The company, controlling shareholders, actual controllers and their concerted parties, and directors, supervisors, and senior management committed that the prospectus and application documents are true, accurate, and complete, and will compensate investors for losses in accordance with the law if there are false records[163](index=163&type=chunk)[165](index=165&type=chunk)[168](index=168&type=chunk) - The company, controlling shareholders, actual controllers, directors (excluding independent directors and non-salaried directors), and senior management committed to strictly implementing the stock price stabilization plan within three years after listing[170](index=170&type=chunk) - Controlling shareholders, actual controllers and their concerted parties, shareholder Chen Kai, directors, supervisors, senior management, and core technical personnel indirectly holding company shares have all committed to share lock-up periods and reduction regulations[171](index=171&type=chunk)[174](index=174&type=chunk)[176](index=176&type=chunk)[178](index=178&type=chunk)[180](index=180&type=chunk)[182](index=182&type=chunk) - The company committed not to provide financial assistance to equity incentive recipients and not to engage in high-risk investments within **12 months** after permanently supplementing working capital with over-raised funds[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk) [X. Major Related-Party Transactions](index=51&type=section&id=Section%20V%20Significant%20Matters-X.%20Major%20Related-Party%20Transactions) This section discloses Puya Semiconductor's major related-party transactions during the reporting period, primarily involving the procurement of materials and processing services with Shanghai Weice Semiconductor Technology Co., Ltd. and its affiliated companies, with actual transaction amounts within the estimated limits - Related parties include Shanghai Weice Semiconductor Technology Co., Ltd. and its affiliated companies (where company director Chen Kai serves as a director) and Shanghai Yangpu District Youshiku Food Store (controlled by Li Zhaogui's spouse, the actual controller)[491](index=491&type=chunk) Related-Party Transactions for Purchase of Goods/Acceptance of Services | Related Party | Related Transaction Content | Current Period Amount (10,000 Yuan) | Approved Transaction Limit (10,000 Yuan) | Exceeded Transaction Limit | | :--- | :--- | :--- | :--- | :--- | | Shanghai Weice Semiconductor Technology Co., Ltd. and affiliated companies | Procurement of materials and processing services | 1,655.99 | 6,500.00 | No | - During the reporting period, the company engaged in actual related-party transactions totaling **10.2223 million yuan (excluding tax)** with Shanghai Weice Semiconductor Technology Co., Ltd. and its consolidated subsidiaries, which did not exceed the estimated amount[190](index=190&type=chunk) - Accounts payable to Shanghai Weice Semiconductor Technology Co., Ltd. and its affiliated companies at period-end totaled **12.1766 million yuan**[498](index=498&type=chunk) [XI. Major Contracts and Their Fulfillment](index=53&type=section&id=Section%20V%20Significant%20Matters-XI.%20Major%20Contracts%20and%20Their%20Fulfillment) This section primarily discloses Puya Semiconductor's significant guarantee situation during the reporting period, where the company provided joint liability guarantees for employee housing rentals, with a total guarantee balance of **0.1764 million yuan** at period-end, accounting for **0.0079%** of net assets, and all guaranteed employees provided counter-guarantees, with no defaults occurring during the reporting period - The company provides joint liability guarantees for debts incurred by employees during public rental housing lease contracts[197](index=197&type=chunk) Company External Guarantees (Excluding Guarantees for Subsidiaries) | Guarantor | Guaranteed Party | Guarantee Type | Guarantee Amount (10,000 Yuan) | Total Guarantee as % of Company Net Assets (%) | | :--- | :--- | :--- | :--- | :--- | | Company Headquarters | Company Employees | Joint Liability Guarantee | 17.64 | 0.0079 | - All guaranteed parties (employees) have provided corresponding counter-guarantees to the company[197](index=197&type=chunk)[198](index=198&type=chunk) - During the reporting period, no employees defaulted on payments, and the company did not actually bear any guarantee responsibility[197](index=197&type=chunk) [XII. Explanation of Progress in Use of Raised Funds](index=56&type=section&id=Section%20V%20Significant%20Matters-XII.%20Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) This section details Puya Semiconductor's overall use of raised funds, IPO project specifics, use of over-raised funds, and other related matters, noting that as of the end of the reporting period, cumulative investment in raised funds exceeded **80%**, with most over-raised funds also invested, and the company managed idle raised funds through temporary supplementation of working capital and cash management, having also completed the 'Headquarters Base and Frontier Technology R&D Project' and permanently supplemented working capital with the remaining funds Overall Use of Raised Funds | Source of Raised Funds | Total Raised Funds (10,000 Yuan) | Net Raised Funds (10,000 Yuan) | Total Investment Pledged in Prospectus (10,000 Yuan) | Total Over-Raised Funds (10,000 Yuan) | Cumulative Raised Funds Invested as of Period-End (10,000 Yuan) | Cumulative Raised Funds Investment Progress as of Period-End (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering of Shares | 134,861.41 | 124,554.54 | 34,545.20 | 90,009.34 | 100,877.33 | 80.99 | Detailed Use of IPO Projects | Project Name | Planned Investment of Raised Funds (10,000 Yuan) | Amount Invested This Year (10,000 Yuan) | Cumulative Raised Funds Invested as of Period-End (10,000 Yuan) | Cumulative Investment Progress as of Period-End (%) | | :--- | :--- | :--- | :--- | :--- | | Flash Chip Upgrade R&D and Industrialization Project | 18,964.11 | 2,070.98 | 17,150.00 | 90.43 | | EEPROM Chip Upgrade R&D and Industrialization Project | 4,787.19 | 853.81 | 4,007.80 | 83.72 | | Headquarters Base and Frontier Technology R&D Project | 28,591.63 | 5,110.83 | 24,029.26 | 84.04 | | Derivative Chip Development and Industrialization Project Based on Memory Chips | 28,262.83 | - | 25,262.69 | 89.38 | | Other (Over-Raised Funds) | 43,948.78 | 26,918.46 | 30,427.58 | 69.23 | | Total | 124,554.54 | 35,356.80 | 100,877.33 | 80.99 | Detailed Use of Over-Raised Funds | Purpose | Total Over-Raised Funds Planned for Investment (10,000 Yuan) | Cumulative Over-Raised Funds Invested as of Period-End (10,000 Yuan) | Cumulative Investment Progress as of Period-End (%) | | :--- | :--- | :--- | :--- | | Derivative Chip Development and Industrialization Project Based on Memory Chips | 28,262.83 | 25,262.69 | 89.38 | | Repurchase for Employee Stock Ownership and/or Equity Incentive Plans | 7,000.00 | 3,509.12 | 50.13 | | Headquarters Base and Frontier Technology R&D Project | 17,797.73 | 17,797.73 | 100.00 | | Permanent Supplement to Working Capital | 27,000.00 | 26,918.46 | 99.70 | | Unused | 9,948.78 | - | - | | Total | 90,009.34 | 73,488.00 | 81.64 | - The company has cumulatively invested **69.4674 million yuan** of self-raised funds into IPO projects, and the replacement was completed in November 2021[206](index=206&type=chunk) - The company previously used **270 million yuan** of idle raised funds to temporarily supplement working capital, of which **200 million yuan** has been repaid; additionally, in January 2025, **170 million yuan** of idle raised funds were used to temporarily supplement working capital[207](index=207&type=chunk)[208](index=208&type=chunk) - The company uses temporarily idle raised funds of no more than **870 million yuan** for cash management, purchasing highly secure and liquid principal-protected products[210](index=210&type=chunk) - In January 2025, the company used **270 million yuan** of over-raised funds to permanently supplement working capital[211](index=211&type=chunk) - On July 1, 2025, the company completed the 'Headquarters Base and Frontier Technology R&D Project' and permanently supplemented working capital with the remaining raised funds of **51.1083 million yuan**[211](index=211&type=chunk) - Intermediary agencies issued no-objection verification opinions on the company's use of some idle raised funds to temporarily supplement working capital and the use of some over-raised funds to permanently supplement working capital[212](index=212&type=chunk)[213](index=213&type=chunk) [Section VI Share Changes and Shareholder Information](index=61&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section details Puya Semiconductor's share capital changes, total number of shareholders, and top ten shareholders' holdings during the reporting period, noting an increase in total share capital due to capital reserve conversion and equity incentive exercise, and listing major shareholders' holdings, proportions, and related-party relationships Share Capital Change Table | Category | Number Before Change | Proportion Before Change (%) | Increase/Decrease in Current Change (+,-) | Number After Change | Proportion After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Unrestricted Shares | 105,609,735 | 100.00 | 42,439,367 | 148,049,102 | 100.00 | | Total Shares | 105,609,735 | 100.00 | 42,439,367 | 148,049,102 | 100.00 | - The company's total share capital increased from **105,609,735 shares** to **148,049,102 shares**, primarily due to the implementation of the 2024 annual profit distribution plan (capital reserve conversion of **42,132,230 shares**) and the exercise of the 2022 and 2024 Restricted Stock Incentive Plans (adding **307,137 shares**)[216](index=216&type=chunk) Impact of Share Changes on EPS and Net Assets Per Share After Reporting Period | Item | H1 2025 | H1 2025 (Comparable Basis) | | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.36 | 0.50 | | Diluted Earnings Per Share (Yuan/share) | 0.36 | 0.50 | | Net Assets Per Share Attributable to Ordinary Shareholders (Yuan/share) | 15.13 | 21.21 | - As of the end of the reporting period, the total number of common shareholders was **13,387**[219](index=219&type=chunk) Top Ten Shareholders' Holdings as of Reporting Period End | Shareholder Name | Period-End Holding (Shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Wang Nan | 27,741,981 | 18.74 | Domestic Natural Person | | Shanghai Zhiqi Enterprise Management Consulting Partnership (Limited Partnership) | 27,193,352 | 18.37 | Other | | Li Zhaogui | 7,195,079 | 4.86 | Domestic Natural Person | | Zhong Ge | 5,334,000 | 3.60 | Domestic Natural Person | | Shanghai Zhangjiang Torch Venture Capital Co., Ltd. | 3,889,764 | 2.63 | State-owned Legal Person | | He Xueping | 952,000 | 0.64 | Domestic Natural Person | | China Merchants Bank Co., Ltd. - Southern CSI 1000 ETF | 836,164 | 0.56 | Other | | China Construction Bank Co., Ltd. - Xinao New Energy Industry Stock Investment Fund | 702,786 | 0.47 | Other | | National Social Security Fund Portfolio 114 | 700,000 | 0.47 | Other | | Beijing Xinnuo Communication Consulting Co., Ltd. | 688,488 | 0.47 | Domestic Non-state-owned Legal Person | - Wang Nan and Li Zhaogui signed a concerted action agreement, acting in concert; Wang Nan is the general partner of Shanghai Zhiqi Enterprise Management Consulting Partnership (Limited Partnership); He Xueping and Zhong Ge are relatives[223](index=223&type=chunk) - Company Director and General Manager Wang Nan held **27,741,981 shares** at period-end, and Director and Deputy General Manager Li Zhaogui held **7,195,079 shares** at period-end, both due to increased shares from capital reserve conversion[226](index=226&type=chunk) [I. Share Capital Changes](index=61&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information-I.%20Share%20Capital%20Changes) This section details the company's

[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) This section provides essential disclaimers, outlines the report's structure, lists reference documents, and defines key terms for clarity [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's board, supervisory board, and senior management guarantee the report's accuracy, completeness, and truthfulness, with no plans for cash dividends, bonus shares, or capital reserve conversions for this half-year period - Company's board, supervisory board, and senior management guarantee the report content's **truthfulness, accuracy, and completeness**[4](index=4&type=chunk) - Company's responsible person, accounting supervisor, and accounting department head declare the financial reports are **true, accurate, and complete**[4](index=4&type=chunk) - Company plans **no cash dividends, no bonus shares, and no capital reserve conversions to share capital** for this half-year[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) The report's clear table of contents lists nine main chapters, covering essential information from important notices and company profiles to management discussion and analysis and financial reports, facilitating investor review - Report contains **nine main chapters**, with a clear structure[7](index=7&type=chunk) [Reference Documents List](index=4&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) The company provides three types of reference documents, including signed financial statements, publicly disclosed company files, and original half-year report and abstract, for investor review - Reference documents include **signed financial statements**, **original publicly disclosed documents and announcements**, and **original half-year report and abstract signed by the legal representative**[9](index=9&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines key terms and entities used in the report, such as company names, major related parties, core products (e.g., tractor hydraulic lifters), and the reporting period, ensuring accurate information understanding - Defines key terms including the company, major related parties (e.g., Lhasa Xianglong, Weichai Lovol, YTO Group), and core products (tractor hydraulic lifters)[10](index=10&type=chunk) - Reporting period defined as **January 1, 2025, to June 30, 2025**[10](index=10&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides an overview of the company's basic information, contact details, and a summary of its key financial performance and position for the reporting period [Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Shandong Hongyu Precision Machinery Co., Ltd. (stock code: 002890) is listed on the Shenzhen Stock Exchange, with Liu Qiujie as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Hongyu Shares | | Stock Code | 002890 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Shandong Hongyu Precision Machinery Co., Ltd. | | Legal Representative | Liu Qiujie | [Contact Persons and Information](index=6&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) The company's Board Secretary, Xin Chenmeng, and Securities Affairs Representative, Gao Xiaoning, share the same contact address, phone, and fax number in Laizhou City, Shandong Province Contact Persons and Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Xin Chenmeng | No. 3 Hongyu Road, Hutouya Economic and Technological Industrial Park, Laizhou City, Shandong Province | 0535-2232378 | 0535-2232378 | xcm@sdhynj.net | | Securities Affairs Representative | Gao Xiaoning | No. 3 Hongyu Road, Hutouya Economic and Technological Industrial Park, Laizhou City, Shandong Province | 0535-2232378 | 0535-2232378 | sdhy_cwgxn@126.com | [Other Information](index=6&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) The company's registered address, office address, website, email, and information disclosure locations remained unchanged during the reporting period - Company contact information, information disclosure, and storage locations remained **unchanged** during the reporting period[14](index=14&type=chunk)[15](index=15&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This period saw a **6.64% decrease in operating revenue** and a **9.37% decline in net profit** attributable to shareholders, while net profit excluding non-recurring items increased by 3.69%; net cash flow from operating activities significantly decreased by 585.41% due to reduced bill discounting Key Accounting Data and Financial Indicators (Year-on-Year Change) | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 173,569,674.40 | 185,916,948.00 | -6.64% | | Net Profit Attributable to Shareholders of Listed Company | 8,359,586.71 | 9,223,975.84 | -9.37% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | 6,883,273.54 | 6,638,576.09 | 3.69% | | Net Cash Flow from Operating Activities | -38,498,988.31 | 7,931,303.40 | -585.41% | | Basic Earnings Per Share (RMB/share) | 0.0492 | 0.0543 | -9.39% | | Diluted Earnings Per Share (RMB/share) | 0.0492 | 0.0543 | -9.39% | | Weighted Average Return on Net Assets | 1.40% | 1.55% | -0.15% | | **Period-End Indicators** | **Current Period-End (RMB)** | **Prior Year-End (RMB)** | **Period-End vs. Prior Year-End Change** | | Total Assets | 747,359,490.06 | 737,450,430.68 | 1.34% | | Net Assets Attributable to Shareholders of Listed Company | 602,415,866.53 | 593,988,101.46 | 1.42% | [Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=7&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) The company reported no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards for the reporting period - Company reported **no differences** in net profit and net assets under domestic and overseas accounting standards for the reporting period[18](index=18&type=chunk)[19](index=19&type=chunk) [Non-recurring Gains and Losses Items and Amounts](index=7&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) Total non-recurring gains and losses for this period amounted to **RMB 1,476,313.17**, primarily from wealth management product investment income and government subsidies, offset by non-current asset disposal losses and income tax effects Non-recurring Gains and Losses Items and Amounts | Item | Amount (RMB) | Explanation | | :--- | :--- | :--- | | Gains/losses from disposal of non-current assets | -23,406.48 | Primarily losses from disposal of fixed assets | | Government grants included in current profit or loss | 131,032.14 | Primarily infrastructure construction subsidies of RMB 0.131 million | | Gains/losses from changes in fair value and disposal of financial assets and liabilities | 1,672,371.57 | Primarily investment income from wealth management products | | Other non-operating income and expenses apart from the above | -36,628.79 | | | Less: Income tax impact | 267,055.27 | | | Total | 1,476,313.17 | -- | - Company has no other profit/loss items defined as non-recurring, nor has it reclassified non-recurring items as recurring[22](index=22&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides a comprehensive analysis of the company's main business operations, core competencies, financial performance, investment activities, and risk factors during the reporting period [Company's Main Business Activities During the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) In the first half of 2025, the company's main business involved R&D, production, and sales of hydraulic lifters for agricultural tractors, covering various horsepower ranges, and it was recognized as an industry leader and "Little Giant" enterprise - Company's main business is the **R&D, production, and sales of hydraulic lifters for agricultural tractors**, with products covering large and medium horsepower tractors[25](index=25&type=chunk) - In R&D, focus is on key technologies such as **electro-hydraulic control systems, high-precision sensor integration, and energy efficiency optimization** for industrialization[25](index=25&type=chunk) - In production, a combination of **independent production and outsourced processing** is adopted to enhance core component manufacturing efficiency and supply chain resilience[26](index=26&type=chunk) - In sales, a **direct sales model to downstream tractor manufacturers** is employed, deepening cooperation with existing clients and expanding to new ones[26](index=26&type=chunk) - Company has been awarded the titles of **industry leader** and **specialized, refined, unique, and new "Little Giant" enterprise**[26](index=26&type=chunk) [Analysis of Core Competencies](index=9&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company possesses strong core competencies in tractor hydraulic lifters, including R&D and technological advantages with numerous patents, industry-leading scale, stable high-quality customer resources, a robust quality control system, rapid after-sales service, and an excellent management team - R&D and technological advantages: owns **40 utility model patents** and **17 invention patents**, drafted multiple industry standards, and is a domestic leader in electro-hydraulic suspension control systems and load sensing technology[27](index=27&type=chunk) - Scale advantage: rich product line with complete specifications, customizing lifters for various horsepower segments and specifications for downstream manufacturers, holding a **leading position in the industry**[28](index=28&type=chunk) - Customer advantage: established stable cooperative relationships with major tractor manufacturers including **Weichai Lovol, YTO Group, Changzhou Dongfeng, Zoomlion Heavy Industry, and Shandong Guangda**[28](index=28&type=chunk) - Product quality control advantage: certified with **IATF16949:2016 and ISO9001 quality management systems**, establishing a comprehensive and reliable quality assurance system covering all personnel and processes[28](index=28&type=chunk) - After-sales service advantage: possesses a complete after-sales service network, including on-site personnel and concentrated services during spring plowing season, demonstrating **rapid service response capabilities**[28](index=28&type=chunk) - Team advantage: stable and excellent management, R&D, and marketing teams, with innovative awareness, pioneering spirit, and forward-looking market insight[28](index=28&type=chunk) [Analysis of Main Business Operations](index=10&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Operating revenue decreased by **6.64%** year-on-year, while operating costs decreased by **10.41%**, leading to a **3.46% increase in gross profit margin**; R&D investment significantly grew by **31.10%**, but net cash flow from operating activities turned negative, primarily due to reduced bill discounting Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | YoY Change | Change Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 173,569,674.40 | 185,916,948.00 | -6.64% | | | Operating Costs | 142,483,955.07 | 159,047,908.32 | -10.41% | | | Selling Expenses | 2,176,703.51 | 2,661,079.54 | -18.20% | | | Administrative Expenses | 10,721,552.11 | 10,928,473.32 | -1.89% | | | Financial Expenses | -8,930.14 | -90,962.59 | 90.18% | Primarily due to reduced interest income and exchange gains | | Income Tax Expenses | 260,107.99 | 788,872.45 | -67.03% | Primarily due to reduced deferred income tax expenses in this period | | R&D Investment | 7,498,624.21 | 5,719,616.60 | 31.10% | Primarily due to increased R&D investment in this period | | Net Cash Flow from Operating Activities | -38,498,988.31 | 7,931,303.40 | -585.41% | Primarily due to reduced bill discounting in this period | | Net Cash Flow from Investing Activities | -19,342,322.25 | -18,352,651.39 | -5.39% | | | Net Cash Flow from Financing Activities | 0.00 | -13,058,130.27 | 100.00% | Primarily due to no dividend payment in this period, paid in July | | Net Increase in Cash and Cash Equivalents | -57,853,854.14 | -23,479,478.26 | -146.40% | Primarily due to reduced cash received from sales through bill discounting and increased bill balance at period-end | Operating Revenue Composition (by Product and Region) | Category | Item | Current Period Amount (RMB) | % of Operating Revenue | Prior Year Period Amount (RMB) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Product** | Lifter Assembly | 121,925,634.20 | 70.25% | 136,115,270.58 | 73.21% | -10.42% | | | Other Accessories | 51,644,040.20 | 29.75% | 49,801,677.42 | 26.79% | 3.70% | | **By Region** | East China | 96,049,058.82 | 55.34% | 104,868,159.50 | 56.41% | -8.41% | | | North China | 56,460,583.93 | 32.53% | 65,359,565.42 | 35.16% | -13.62% | | | Northeast China | 1,812,517.90 | 1.04% | 1,721,433.80 | 0.92% | 5.29% | | | Central China | 15,776,054.79 | 9.09% | 10,812,909.55 | 5.81% | 45.90% | | | Other Regions | 3,471,458.96 | 2.00% | 3,154,879.73 | 1.70% | 10.03% | Main Business Gross Profit Margin Changes | Category | Operating Revenue (RMB) | Operating Costs (RMB) | Gross Profit Margin | YoY Change in Operating Revenue | YoY Change in Operating Costs | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | Special Equipment Manufacturing | 173,569,674.40 | 142,483,955.07 | 17.91% | -6.64% | -10.41% | 3.46% | | **By Product** | Lifter Assembly | 121,925,634.20 | 96,921,550.23 | 20.51% | -10.42% | -14.24% | 3.54% | | | Other Accessories | 51,644,040.20 | 45,562,404.84 | 11.78% | 3.70% | -1.01% | 4.20% | | **By Region** | East China | 96,049,058.82 | 78,938,967.40 | 17.81% | -8.41% | -12.21% | 3.55% | | | North China | 56,460,583.93 | 48,183,966.08 | 14.66% | -13.62% | -15.69% | 2.10% | [Analysis of Non-Main Business Operations](index=12&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Non-main business activities significantly impacted total profit, with fair value change gains (mainly from wealth management products) contributing **19.40%**, while asset impairment (inventory write-downs) and credit impairment losses (accounts receivable bad debt provisions) negatively impacted by **20.60%** and **8.03%** respectively Impact of Non-Main Business on Total Profit | Item | Amount (RMB) | % of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -138,396.14 | -1.61% | Primarily acceptance bill discounting interest | No | | Gains/losses from changes in fair value | 1,672,371.57 | 19.40% | Primarily income from wealth management products | No | | Asset Impairment | -1,775,753.36 | -20.60% | Primarily provision for inventory write-downs | No | | Non-operating Income | 20,853.21 | 0.24% | Primarily fine income | No | | Non-operating Expenses | 84,603.74 | 0.98% | Primarily donations and asset disposal losses | No | | Other Income | 663,386.74 | 7.70% | Primarily government grants related to income | No | | Credit Impairment Losses | -691,987.75 | -8.03% | Primarily provision for bad debts on accounts receivable | No | | Asset Disposal Gains | 3,715.26 | 0.04% | Primarily losses from disposal of fixed assets | No | [Analysis of Assets and Liabilities](index=12&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Total assets increased by **1.34%** from the end of the previous year, with significant shifts in asset structure: cash and cash equivalents decreased by **7.88%** due to reduced bill discounting, accounts receivable increased by **2.11%**, inventory decreased by **2.88%**, and notes receivable financing increased by **5.90%** Significant Changes in Asset Composition | Item | Current Period-End Amount (RMB) | % of Total Assets | Prior Year-End Amount (RMB) | % of Total Assets | % Change in Proportion | Explanation for Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 23,515,798.21 | 3.15% | 81,369,652.35 | 11.03% | -7.88% | Primarily due to reduced cash received from sales through bill discounting in this period | | Accounts Receivable | 115,166,498.66 | 15.41% | 98,080,099.42 | 13.30% | 2.11% | Primarily due to increased accounts receivable not yet due in this period | | Inventory | 103,262,088.01 | 13.82% | 123,123,013.74 | 16.70% | -2.88% | Primarily due to reduced inventory of finished goods and semi-finished products in this period | | Financial Assets Held for Trading | 189,297,654.42 | 25.33% | 176,193,086.07 | 23.89% | 1.44% | | | Notes Receivable Financing | 104,803,212.49 | 14.02% | 59,850,587.47 | 8.12% | 5.90% | Primarily due to reduced bill discounting in this period | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (RMB) | Fair Value Change Gains/Losses for Current Period (RMB) | Amount Purchased for Current Period (RMB) | Amount Sold for Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 176,193,086.07 | 1,672,371.57 | 438,400,000.00 | 425,400,000.00 | 189,297,654.42 | | Notes Receivable Financing | 59,850,587.47 | | 149,537,707.09 | 104,585,082.07 | 104,803,212.49 | | Total | 236,043,673.54 | 1,672,371.57 | 587,937,707.09 | 529,985,082.07 | 294,100,866.91 | [Analysis of Investment Status](index=13&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company had no significant equity or non-equity investments during the reporting period; the original IPO-raised project was postponed and later changed to an "Intelligent Foundry Workshop Construction and Renovation Project," with **RMB 21.21 million** invested in this period to address casting bottlenecks and enhance efficiency - No significant equity or non-equity investments during the reporting period[40](index=40&type=chunk) - **IPO net proceeds** in 2017 amounted to **RMB 172.45 million**[44](index=44&type=chunk) - Original IPO-raised project "Precision Production Project for High-Horsepower Tractor Hydraulic Lifting Devices" was temporarily suspended due to market uncertainties[46](index=46&type=chunk)[49](index=49&type=chunk) - In December 2024, the raised fund project was changed to "Intelligent Foundry Workshop Construction and Renovation Project," with **RMB 173.427 million** planned for use[46](index=46&type=chunk)[47](index=47&type=chunk)[51](index=51&type=chunk) - **RMB 21.2073 million** was invested in the "Intelligent Foundry Workshop Construction and Renovation Project" during this reporting period (January-June 2025)[47](index=47&type=chunk)[49](index=49&type=chunk) - The project change aims to resolve the company's casting bottleneck, reduce costs, and improve production efficiency and operational capabilities[49](index=49&type=chunk)[51](index=51&type=chunk) [Significant Asset and Equity Sales](index=18&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company did not engage in any significant asset or equity sales during the reporting period - Company did not sell significant assets or equity during the reporting period[53](index=53&type=chunk)[54](index=54&type=chunk) [Analysis of Major Holding and Participating Companies](index=18&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) The company had no important holding or participating company information requiring disclosure during the reporting period - Company had no important holding or participating company information requiring disclosure during the reporting period[54](index=54&type=chunk) [Information on Structured Entities Controlled by the Company](index=18&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company did not control any structured entities during the reporting period - Company did not control any structured entities during the reporting period[55](index=55&type=chunk) [Risks Faced by the Company and Countermeasures](index=18&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces multiple risks including market (tractor market underperformance, increased competition), operational (raw material price volatility, high customer concentration, product quality, R&D upgrades), financial (inventory write-downs, accounts receivable credit), management, and policy (changes in agricultural machinery subsidies), which it addresses through product refinement, market expansion, lean management, cost control, and talent development - Company faces **market risks** (underperformance of tractor host market sales, market competition)[55](index=55&type=chunk) - Company faces **operational risks** (volatility in major raw material prices, high customer concentration, product quality control, product R&D and technology upgrades)[55](index=55&type=chunk) - Company faces **financial risks** (inventory write-downs, accounts receivable credit)[55](index=55&type=chunk) - Company faces **management risks** (management level, talent reserves unable to adapt to scale expansion)[55](index=55&type=chunk) - Company faces **policy risks** (indirect impact from changes in national agricultural machinery subsidy policies)[55](index=55&type=chunk) - Countermeasures include solidifying its lifter sector leadership, actively expanding into new hydraulic machinery product markets, implementing "lean production, refined management," enhancing profitability and market competitiveness through cost and expense control, and cultivating and attracting excellent talent[56](index=56&type=chunk)[57](index=57&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=19&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - Company did not formulate a market value management system or disclose a valuation enhancement plan[58](index=58&type=chunk) [Implementation of "Dual Improvement in Quality and Returns" Action Plan](index=19&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E2%80%9C%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%E2%80%9D%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company did not disclose an announcement regarding the "Dual Improvement in Quality and Returns" action plan during the reporting period - Company did not disclose an announcement regarding the "Dual Improvement in Quality and Returns" action plan[58](index=58&type=chunk) [Corporate Governance, Environment, and Society](index=19&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) This section details the company's corporate governance, including changes in key personnel, profit distribution, employee incentives, environmental disclosures, and social responsibility initiatives [Changes in Directors, Supervisors, and Senior Management](index=19&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) There were no changes in the company's directors, supervisors, and senior management during the reporting period - No changes in the company's directors, supervisors, and senior management during the reporting period[59](index=59&type=chunk) [Profit Distribution and Capital Reserve Conversion to Share Capital for the Reporting Period](index=19&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for this half-year period - Company plans **no cash dividends, no bonus shares, and no capital reserve conversions to share capital** for the half-year[60](index=60&type=chunk) [Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=19&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures in place or implemented during the reporting period - Company had **no equity incentive plans, employee stock ownership plans, or other employee incentive measures** during the reporting period[61](index=61&type=chunk) [Environmental Information Disclosure](index=19&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The listed company and its main subsidiaries are not included in the list of enterprises required by law to disclose environmental information, thus no mandatory disclosure is required - Listed company and its main subsidiaries are **not included in the list of enterprises legally required to disclose environmental information**[62](index=62&type=chunk) [Social Responsibility](index=19&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company actively fulfills its social responsibilities, adhering to a business philosophy centered on market demand, technological development, and quality assurance, aiming to create value for employees, shareholders, the company, and society - Company adheres to a business philosophy of "market demand first, technology development as foundation, quality assurance as priority," committed to creating value for **employees, shareholders, the company, and society**[62](index=62&type=chunk) - Company prioritizes protecting **shareholder and creditor rights**, with profit distribution policies balancing investor returns and sustainable company development[63](index=63&type=chunk) - Company legally safeguards **employee rights**, signing labor contracts and providing social insurance and housing provident funds[63](index=63&type=chunk) - Company establishes long-term stable cooperative relationships with main engine manufacturers through strict quality assessment and certification, protecting the rights of **suppliers, customers, and consumers**[63](index=63&type=chunk) - Company emphasizes **environmental protection**, certified with an environmental management system, optimizing production processes, equipping environmental protection facilities, and establishing a Safety and Environmental Protection Department[64](index=64&type=chunk) - Company pays taxes according to law, actively participates in **charitable donations and other social welfare activities**, and has established good relationships with local governments, residents, and social organizations[64](index=64&type=chunk) [Significant Matters](index=21&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section covers significant matters including commitments, related party transactions, legal proceedings, penalties, and other important events affecting the company [Commitments](index=21&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) The company reported no commitments by its actual controller, shareholders, related parties, acquirers, or the company itself that were fulfilled or overdue and unfulfilled during the reporting period - Company reported **no commitments that were unfulfilled or overdue and unfulfilled** during the reporting period[66](index=66&type=chunk) [Non-operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company](index=21&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) The company reported no non-operating funds occupied by its controlling shareholder or other related parties during the reporting period - Company reported **no non-operating funds occupied by its controlling shareholder or other related parties** during the reporting period[67](index=67&type=chunk) [Illegal External Guarantees](index=21&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no illegal external guarantees during the reporting period - Company had **no illegal external guarantees** during the reporting period[68](index=68&type=chunk) [Appointment and Dismissal of Accounting Firms](index=21&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's half-year financial report was not audited - Company's half-year report was **not audited**[69](index=69&type=chunk) [Board of Directors' and Supervisory Board's Explanations on the Accounting Firm's "Non-Standard Audit Report" for this Reporting Period](index=21&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9A%84%E8%AF%B4%E6%98%8E) The company had no non-standard audit report for the reporting period, thus no explanation from the Board of Directors or Supervisory Board is required - Company had **no non-standard audit report** for the reporting period[70](index=70&type=chunk) [Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year](index=21&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The company had no non-standard audit report for the previous year, thus no explanation from the Board of Directors is required - Company had **no non-standard audit report** for the previous year[70](index=70&type=chunk) [Bankruptcy and Reorganization Related Matters](index=21&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company had no bankruptcy and reorganization related matters during the reporting period - Company had **no bankruptcy and reorganization related matters** during the reporting period[70](index=70&type=chunk) [Litigation Matters](index=21&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company had no significant litigation, arbitration, or other litigation matters during the reporting period - Company had **no significant litigation or arbitration matters** during the reporting period[71](index=71&type=chunk) [Penalties and Rectification](index=22&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) The company had no penalties or rectification situations during the reporting period - Company had **no penalties or rectification situations** during the reporting period[72](index=72&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=22&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled effective court judgments or large overdue debts - During the reporting period, the company, its controlling shareholder, and actual controller had **no unfulfilled effective court judgments or large overdue debts**[73](index=73&type=chunk) [Significant Related Party Transactions](index=22&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company reported no significant related party transactions during the period, including those related to daily operations, asset/equity acquisitions or disposals, joint external investments, related party creditor/debtor relationships, or financial company dealings - Company reported **no related party transactions related to daily operations** during the reporting period[74](index=74&type=chunk) - Company reported **no related party transactions involving asset or equity acquisition/disposal** during the reporting period[75](index=75&type=chunk) - Company reported **no related party transactions involving joint external investments** during the reporting period[76](index=76&type=chunk) - Company reported **no related party creditor/debtor relationships** during the reporting period[77](index=77&type=chunk) - Company had **no deposits, loans, credit, or other financial business with related financial companies**[78](index=78&type=chunk)[79](index=79&type=chunk) - Company reported **no other significant related party transactions** during the reporting period[80](index=80&type=chunk) [Significant Contracts and Their Performance](index=23&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company had no significant entrustment, contracting, leasing, or guarantee matters during the reporting period, but engaged in entrusted wealth management using raised and own funds, with an outstanding balance of **RMB 189 million** at period-end - Company had **no entrustment, contracting, or leasing matters** during the reporting period[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) - Company had **no significant guarantee situations** during the reporting period[84](index=84&type=chunk) Entrusted Wealth Management | Specific Type | Source of Entrusted Funds | Amount of Entrusted Wealth Management (RMB 10,000) | Outstanding Balance (RMB 10,000) | Overdue Unrecovered Amount (RMB 10,000) | Impairment Provision for Overdue Unrecovered Wealth Management (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Raised Funds | 18,530 | 18,000 | 0 | 0 | | Bank Wealth Management Products | Own Funds | 2,500 | 900 | 0 | 0 | | Total | | 21,030 | 18,900 | 0 | 0 | - Company had **no other significant contracts** during the reporting period[86](index=86&type=chunk) [Explanation of Other Significant Matters](index=23&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company reported no other significant matters requiring explanation during the reporting period - Company reported **no other significant matters requiring explanation** during the reporting period[87](index=87&type=chunk)[88](index=88&type=chunk) [Significant Matters of Company Subsidiaries](index=24&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) The company reported no significant matters concerning its subsidiaries during the reporting period - Company reported **no significant matters concerning its subsidiaries** during the reporting period[89](index=89&type=chunk) [Share Changes and Shareholder Information](index=25&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details changes in the company's share capital, restricted shares, securities issuance, and the shareholding structure of its major shareholders and management [Share Change Status](index=25&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the number of restricted shares slightly increased by **2**, while unrestricted shares decreased by **2**, with the total share capital remaining unchanged at **169,875,160 shares** Share Change Status | Item | Number Before This Change (shares) | Proportion | Net Increase/Decrease in This Change (shares) | Number After This Change (shares) | Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 8,390,948 | 4.94% | 2 | 8,390,950 | 4.94% | | Of which: Shares held by domestic natural persons | 8,390,948 | 4.94% | 2 | 8,390,950 | 4.94% | | II. Unrestricted Shares | 161,484,212 | 95.06% | -2 | 161,484,210 | 95.06% | | Of which: RMB ordinary shares | 161,484,212 | 95.06% | -2 | 161,484,210 | 95.06% | | III. Total Shares | 169,875,160 | 100.00% | 0 | 169,875,160 | 100.00% | - Reasons for share changes, approval status, transfer status, share repurchases, and impact on financial indicators are **not applicable or without significant changes**[93](index=93&type=chunk) [Changes in Restricted Shares](index=26&type=section&id=2%E3%80%81%E9%99%90%E5%94%AE%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The company had no changes in restricted shares during the reporting period - Company had **no significant changes in restricted shares** during the reporting period[93](index=93&type=chunk) [Securities Issuance and Listing Status](index=26&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) The company had no securities issuance or listing activities during the reporting period - Company had **no securities issuance or listing activities** during the reporting period[93](index=93&type=chunk) [Number of Shareholders and Shareholding Status](index=26&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **6,336 common shareholders**; Xin Jun was the largest shareholder with **28.59%**, and both Xin Jun and Li Yugong had pledged shares - Total number of common shareholders at the end of the reporting period was **6,336**[94](index=94&type=chunk) Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held at Period-End (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Number of Pledged Shares (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xin Jun | Domestic Natural Person | 28.59% | 48,563,542 | 0 | 48,563,542 | Pledged | 26,099,000 | | Li Yugong | Domestic Natural Person | 7.42% | 12,612,990 | 0 | 12,612,990 | Pledged | 12,600,737 | | Li Jun | Domestic Natural Person | 3.03% | 5,146,377 | 0 | 5,146,377 | Not Applicable | 0 | | Ren Xuening | Domestic Natural Person | 3.01% | 5,112,900 | 0 | 5,112,900 | Not Applicable | 0 | | Du Yongbin | Domestic Natural Person | 3.01% | 5,108,610 | 0 | 5,108,610 | Not Applicable | 0 | | Liu Qiujie | Domestic Natural Person | 3.00% | 5,090,536 | 3,817,902 | 1,272,634 | Not Applicable | 0 | | Lv Jian | Domestic Natural Person | 2.96% | 5,020,860 | 0 | 5,020,860 | Not Applicable | 0 | | Jiang Hongxing | Domestic Natural Person | 2.60% | 4,412,997 | 0 | 4,412,997 | Not Applicable | 0 | | Liu Zhihong | Domestic Natural Person | 2.53% | 4,299,628 | 3,224,721 | 1,074,907 | Not Applicable | 0 | | Gong Wenfeng | Domestic Natural Person | 2.13% | 3,614,978 | 0 | 3,614,978 | Not Applicable | 0 | - Shareholders Li Yugong and Li Jun are **father and son**; the company is unaware of any other related party relationships or concerted actions among other shareholders[95](index=95&type=chunk) - Xin Jun, Ren Xuening, Du Yongbin, Lv Jian, and other shareholders hold company shares through **ordinary securities accounts and client credit trading guarantee securities accounts**[95](index=95&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=28&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - No changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[97](index=97&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=28&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) The company's controlling shareholder and actual controller remained unchanged during the reporting period - Company's controlling shareholder remained **unchanged** during the reporting period[98](index=98&type=chunk) - Company's actual controller remained **unchanged** during the reporting period[98](index=98&type=chunk) [Preferred Share Related Information](index=29&type=section&id=%E5%85%AD%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred shares during the reporting period - Company had **no preferred shares** during the reporting period[99](index=99&type=chunk) [Bond Related Information](index=30&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms the absence of any bond-related information for the company during the reporting period [Bond Related Information](index=30&type=section&id=%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no bond-related information during the reporting period - Company had **no bond-related information** during the reporting period[101](index=101&type=chunk) [Financial Report](index=31&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the company's unaudited half-year financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies and financial items [Audit Report](index=31&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's half-year financial report was not audited - Company's half-year financial report was **not audited**[103](index=103&type=chunk) [Financial Statements](index=31&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the company's 2025 half-year consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively reflecting the company's financial position, operating results, and cash flows [Consolidated Balance Sheet](index=31&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the company's consolidated total assets were **RMB 747.36 million**, a **1.34% increase** from the beginning of the period, with significant changes in current assets including a substantial decrease in cash and cash equivalents and notable increases in financial assets held for trading and notes receivable financing Key Data from Consolidated Balance Sheet | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 23,515,798.21 | 81,369,652.35 | | Financial Assets Held for Trading | 189,297,654.42 | 176,193,086.07 | | Accounts Receivable | 115,166,498.66 | 98,080,099.42 | | Notes Receivable Financing | 104,803,212.49 | 59,850,587.47 | | Inventory | 103,262,088.01 | 123,123,013.74 | | Total Current Assets | 536,745,224.37 | 539,433,843.24 | | Fixed Assets | 155,796,997.35 | 158,489,510.56 | | Total Assets | 747,359,490.06 | 737,450,430.68 | | Notes Payable | 54,461,535.19 | 50,209,859.60 | | Accounts Payable | 54,385,305.71 | 57,951,128.35 | | Total Current Liabilities | 134,132,607.40 | 125,328,662.62 | | Total Liabilities | 144,943,623.53 | 143,462,329.22 | | Total Owners' Equity Attributable to Parent Company | 602,415,866.53 | 593,988,101.46 | | Total Liabilities and Owners' Equity | 747,359,490.06 | 737,450,430.68 | [Parent Company Balance Sheet](index=33&type=section&id=2%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the parent company's total assets were **RMB 743.36 million**, a **1.42% increase** from the beginning of the period, with cash and cash equivalents decreasing while financial assets held for trading and notes receivable financing increased Key Data from Parent Company Balance Sheet | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 22,500,253.19 | 78,108,682.40 | | Financial Assets Held for Trading | 189,297,654.42 | 176,193,086.07 | | Accounts Receivable | 113,026,731.05 | 96,938,669.43 | | Notes Receivable Financing | 104,753,212.49 | 59,750,587.47 | | Inventory | 99,809,484.08 | 120,289,622.28 | | Total Current Assets | 529,943,799.73 | 532,095,251.84 | | Fixed Assets | 155,727,604.03 | 158,413,109.52 | | Total Assets | 743,364,421.64 | 732,978,207.62 | | Notes Payable | 54,461,535.19 | 50,209,859.60 | | Accounts Payable | 52,771,409.86 | 57,297,794.79 | | Total Current Liabilities | 133,528,507.63 | 124,417,049.85 | | Total Liabilities | 144,339,523.76 | 142,201,154.08 | | Total Owners' Equity | 599,024,897.88 | 590,777,053.54 | | Total Liabilities and Owners' Equity | 743,364,421.64 | 732,978,207.62 | [Consolidated Income Statement](index=35&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) For the first half of 2025, the company's consolidated total operating revenue was **RMB 173.57 million**, a **6.64% year-on-year decrease**, with net profit at **RMB 8.36 million**, down **9.37%** year-on-year, and basic earnings per share at **RMB 0.0492** Key Data from Consolidated Income Statement | Item | 2025 Half-Year (RMB) | 2024 Half-Year (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 173,569,674.40 | 185,916,948.00 | | Total Operating Costs | 164,619,565.49 | 179,615,942.75 | | Operating Profit | 8,683,445.23 | 10,095,982.43 | | Total Profit | 8,619,694.70 | 10,012,848.29 | | Income Tax Expenses | 260,107.99 | 788,872.45 | | Net Profit | 8,359,586.71 | 9,223,975.84 | | Net Profit Attributable to Parent Company Shareholders | 8,359,586.71 | 9,223,975.84 | | Total Comprehensive Income | 8,359,586.71 | 9,223,975.84 | | Basic Earnings Per Share | 0.0492 | 0.0543 | | Diluted Earnings Per Share | 0.0492 | 0.0543 | [Parent Company Income Statement](index=38&type=section&id=4%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) For the first half of 2025, the parent company's operating revenue was **RMB 173.08 million**, a **6.75% year-on-year decrease**, with net profit at **RMB 8.25 million**, down **9.21%** year-on-year Key Data from Parent Company Income Statement | Item | 2025 Half-Year (RMB) | 2024 Half-Year (RMB) | | :--- | :--- | :--- | | Operating Revenue | 173,080,148.36 | 185,612,709.75 | | Operating Profit | 8,566,403.37 | 9,946,232.10 | | Total Profit | 8,502,652.84 | 9,863,097.96 | | Income Tax Expenses | 250,442.50 | 774,089.73 | | Net Profit | 8,252,210.34 | 9,089,008.23 | | Total Comprehensive Income | 8,252,210.34 | 9,089,008.23 | [Consolidated Cash Flow Statement](index=39&type=section&id=5%E3%80%81%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In the first half of 2025, net cash flow from operating activities was **-RMB 38.50 million**, a significant **585.41% year-on-year decrease** primarily due to reduced cash received from sales, while net cash flow from financing activities was **RMB 0** Key Data from Consolidated Cash Flow Statement | Item | 2025 Half-Year (RMB) | 2024 Half-Year (RMB) | | :--- | :--- | :--- | | Cash Received from Sales of Goods and Provision of Services | 94,593,059.66 | 143,013,190.17 | | Net Cash Flow from Operating Activities | -38,498,988.31 | 7,931,303.40 | | Net Cash Flow from Investing Activities | -19,342,322.25 | -18,352,651.39 | | Net Cash Flow from Financing Activities | 0.00 | -13,058,130.27 | | Net Increase in Cash and Cash Equivalents | -57,853,854.14 | -23,479,478.26 | | Period-End Cash and Cash Equivalents Balance | 23,515,798.21 | 41,266,352.11 | [Parent Company Cash Flow Statement](index=40&type=section&id=6%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In the first half of 2025, the parent company's net cash flow from operating activities was **-RMB 36.25 million**, a substantial year-on-year decrease, with net cash flow from investing activities at **-RMB 19.34 million** and from financing activities at **RMB 0** Key Data from Parent Company Cash Flow Statement | Item | 2025 Half-Year (RMB) | 2024 Half-Year (RMB) | | :--- | :--- | :--- | | Cash Received from Sales of Goods and Provision of Services | 93,739,503.16 | 148,132,517.30 | | Net Cash Flow from Operating Activities | -36,253,563.38 | 14,881,404.02 | | Net Cash Flow from Investing Activities | -19,342,322.25 | -18,352,651.39 | | Net Cash Flow from Financing Activities | 0.00 | -13,058,130.27 | | Net Increase in Cash and Cash Equivalents | -55,608,429.21 | -16,529,377.64 | | Period-End Cash and Cash Equivalents Balance | 22,500,253.19 | 40,458,262.94 | [Consolidated Statement of Changes in Owners' Equity](index=41&type=section&id=7%E3%80%81%E5%90%88%E5%B9%B6%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) In the first half of 2025, the company's consolidated owners' equity increased from **RMB 593.99 million** at the beginning of the period to **RMB 602.42 million** at period-end, primarily driven by a net profit of **RMB 8.36 million** attributable to parent company owners - Total owners' equity attributable to the parent company at period-end was **RMB 602,415,866.53**, an increase of **1.42%** from the beginning of the period[125](index=125&type=chunk) - Total comprehensive income for the period was **RMB 8,359,586.71**[124](index=124&type=chunk) [Parent Company Statement of Changes in Owners' Equity](index=45&type=section&id=8%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) In the first half of 2025, the parent company's owners' equity increased from **RMB 590.78 million** at the beginning of the period to **RMB 599.02 million** at period-end, primarily due to a net profit of **RMB 8.25 million** - Total parent company owners' equity at period-end was **RMB 599,024,897.88**, an increase of **1.40%** from the beginning of the period[132](index=132&type=chunk) - Total comprehensive income for the period was **RMB 8,252,210.34**[131](index=131&type=chunk) [Company Basic Information](index=49&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Shandong Hongyu Precision Machinery Co., Ltd. (stock code: 002890) was listed on the Shenzhen Stock Exchange on August 2, 2017, with its registered office in Laizhou City, Shandong Province, and its business scope includes manufacturing and sales of hydraulic systems for general machinery and vehicles, agricultural machinery parts casting, and import/export - Company shares were listed and traded on the Shenzhen Stock Exchange on **August 2, 2017**, stock code **002890**[135](index=135&type=chunk) - Company's business scope includes manufacturing and sales of **general machinery and vehicle hydraulic systems**, casting and sales of **agricultural machinery parts**, property leasing, and import/export business[136](index=136&type=chunk) - These financial statements were approved by the company's Board of Directors on **August 24, 2025**[137](index=137&type=chunk) - The scope of consolidated financial statements for this year includes **Laizhou Lingyu Machinery Co., Ltd.**, one subsidiary[138](index=138&type=chunk) [Basis of Financial Statement Preparation](index=49&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The company's financial statements are prepared on a going concern basis, in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and significant accounting policies and estimates, with no major issues affecting its ability to continue as a going concern for at least 12 months from the reporting period end - Financial statements are prepared on a **going concern basis**, in accordance with the **Accounting Standards for Business Enterprises**[139](index=139&type=chunk) - Company possesses the ability to continue as a going concern for at least **12 months** from the end of this reporting period, with no significant matters affecting this ability[140](index=140&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=49&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the company's significant accounting policies and estimates for financial statement preparation, covering business combinations, financial instruments, revenue recognition, inventory, fixed assets, intangible assets, employee compensation, and government grants, ensuring consistency and comparability, with no changes during the reporting period - Financial statements prepared by the company comply with the requirements of the Accounting Standards for Business Enterprises, truly and completely reflecting its **financial position, operating results, and cash flows**[141](index=141&type=chunk) - Company uses a **12-month period** as its normal operating cycle and **RMB** as its functional currency[143](index=143&type=chunk)[144](index=144&type=chunk) - Detailed provisions for the classification, recognition, and measurement of financial instruments, including financial assets and liabilities measured at **amortized cost**, **fair value through other comprehensive income**, and **fair value through profit or loss**[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) - For financial assets such as accounts receivable and lease receivables, bad debt provisions are made using the **expected credit loss model**, distinguishing between general (three-stage) and simplified approaches[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[173](index=173&type=chunk) - Revenue recognition principle is to recognize revenue when the customer obtains **control of the related goods or services**, at the transaction price allocated to that performance obligation[219](index=219&type=chunk) - **No significant changes** in accounting policies and accounting estimates during the reporting period[239](index=239&type=chunk) [Taxation](index=69&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) The company's main taxes include VAT (**13%**), Urban Maintenance and Construction Tax (**7%**), Education Surcharge (**3%**) and Local Education Surcharge (**2%**); the parent company, as a high-tech enterprise, pays corporate income tax at **15%**, while its subsidiary, Laizhou Lingyu Machinery Co., Ltd., enjoys preferential income tax policies as a small-profit enterprise Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Value Added | 13% | | Urban Maintenance and Construction Tax | Actual Turnover Tax Paid | 7% | | Corporate Income Tax | Taxable Income | 15%, 20% | | Education Surcharge | Actual Turnover Tax Paid | 3% | | Local Education Surcharge | Actual Turnover Tax Paid | 2% | - Parent company, Shandong Hongyu Precision Machinery Co., Ltd., as a high-tech enterprise, accrues and pays corporate income tax at a **15% rate** for 2025[241](index=241&type=chunk) - Subsidiary Laizhou Lingyu Machinery Co., Ltd. qualifies as a small-profit enterprise, enjoying preferential income tax policies: the portion of annual taxable income not exceeding **RMB 1 million** is taxed at an effective rate of **5%** (reduced by 75% and then taxed at 20%); the portion exceeding **RMB 1 million** but not exceeding **RMB 3 million** is also taxed at an effective rate of **5%** (reduced by 75% and then taxed at 20%)[241](index=241&type=chunk) [Notes to Consolidated Financial Statement Items](index=69&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed disclosures of the period-end and period-beginning balances and changes for each consolidated financial statement item, with explanations for significant movements, covering cash and cash equivalents, financial assets held for trading, accounts receivable, inventory, fixed assets, construction in progress, intangible assets, deferred tax assets/liabilities, notes payable, accounts payable, employee compensation payable, taxes payable, other current liabilities, special reserves, undistributed profits, operating revenue and costs, R&D expenses, financial expenses, other income, fair value change gains, credit impairment losses, asset impairment losses, and income tax expenses Cash and Cash Equivalents | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Cash on Hand | 48,609.70 | 3,374.21 | | Bank Deposits | 23,467,188.51 | 81,366,278.14 | | Total | 23,515,798.21 | 81,369,652.35 | Financial Assets Held for Trading | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Wealth Management Products | 189,297,654.42 | 176,193,086.07 | | Total | 189,297,654.42 | 176,193,086.07 | Accounts Receivable Aging Distribution | Aging | Period-End Book Balance (RMB) | Period-Beginning Book Balance (RMB) | | :--- | :--- | :--- | | Within 1 Year (inclusive) | 114,430,078.44 | 97,988,333.74 | | 1 to 2 Years | 3,806,997.06 | 2,995,965.18 | | 2 to 3 Years | 990,700.31 | 300,571.64 | | Over 3 Years | 336,385.65 | 498,029.23 | | Total | 119,564,161.46 | 101,782,899.79 | Notes Receivable Financing Classification | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Notes Receivable | 90,853,640.34 | 41,987,587.47 | | Letters of Credit | 13,949,572.15 | 17,863,000.00 | | Total | 104,803,212.49 | 59,850,587.47 | Inventory Classification | Item | Period-End Book Value (RMB) | Period-Beginning Book Value (RMB) | | :--- | :--- | :--- | | Raw Materials | 5,914,384.15 | 7,249,376.22 | | Work in Progress | 61,724,624.93 | 74,057,863.15 | | Finished Goods | 25,364,629.85 | 27,977,240.77 | | Goods in Transit | 10,039,153.47 | 13,629,489.60 | | Consigned Processing Materials | 219,295.61 | 209,044.00 | | Total | 103,262,088.01 | 123,123,013.74 | Operating Revenue and Operating Costs | Item | Current Period Revenue (RMB) | Current Period Costs (RMB) | Prior Period Revenue (RMB) | Prior Period Costs (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 169,857,443.88 | 141,309,061.28 | 182,464,276.53 | 157,152,477.56 | | Other Business | 3,712,230.52 | 1,174,893.79 | 3,452,671.47 | 1,895,430.76 | | Total | 173,569,674.40 | 142,483,955.07 | 185,916,948.00 | 159,047,908.32 | R&D Expenses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Material Costs | 2,801,208.37 | 1,554,971.83 | | Employee Compensation | 3,639,977.68 | 3,328,538.90 | | Depreciation | 829,781.34 | 818,910.52 | | Other Expenses | 227,656.82 | 17,195.35 | | Total | 7,498,624.21 | 5,719,616.60 | Financial Expenses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Less: Interest Income | 43,136.41 | 88,330.68 | | Exchange Losses | 20,377.83 | | | Less: Exchange Gains | | 19,230.69 | | Handling Fees | 13,828.44 | 16,598.78 | | Total | -8,930.14 | -90,962.59 | Other Income | Source of Other Income | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | VAT Additional Deduction | 512,681.57 | 987,940.91 | | Infrastructure Construction Subsidies | 131,032.14 | 131,032.14 | | Withholding Tax Handling Fee Refund | 19,673.03 | 14,016.36 | | Other | | 305,000.00 | | Total | 663,386.74 | 1,437,989.41 | Fair Value Change Gains | Source of Fair Value Change Gains | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Financial Assets Held for Trading | 1,672,371.57 | 2,360,145.22 | | Total | 1,672,371.57 | 2,360,145.22 | Credit Impairment Losses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Bad Debt Losses on Notes Receivable | 2,780.23 | | | Bad Debt Losses on Accounts Receivable | -694,862.43 | 214,039.34 | | Bad Debt Losses on Other Receivables | 94.45 | 829.64 | | Total | -691,987.75 | 214,868.98 | Asset Impairment Losses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | I. Inventory Write-down Losses and Contract Performance Cost Impairment Losses | -1,775,753.36 | 364,378.07 | | Total | -1,775,753.36 | 364,378.07 | Income Tax Expenses | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Current Income Tax Expenses | 57,224.73 | 163,477.98 | | Deferred Income Tax Expenses | 202,883.26 | 625,394.47 | | Total | 260,107.99 | 788,872.45 | [R&D Expenses](index=118&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) Total R&D expenses for this reporting period were **RMB 7.50 million**, a significant **31.10% year-on-year increase**, entirely expensed and recognized in current profit or loss, primarily comprising material costs, employee compensation, and depreciation R&D Expense Composition | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Material Costs | 2,801,208.37 | 1,554,971.83 | | Employee Compensation | 3,639,977.68 | 3,32

Important Notes, Table of Contents, and Definitions [Important Notes](index=2&type=section&id=%E4%B8%80%E3%80%81%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility, with no plans for cash dividends, bonus shares, or capital reserve conversions - The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the report, assuming legal responsibility[5](index=5&type=chunk) - Company's responsible person Xian Zhigang, General Manager Wang Ziyong, Chief Accountant Xue Gangyi, and Head of Accounting Department Zhang Mengzhu 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=%E7%9B%AE%E5%BD%95) This section presents the report's structured table of contents, outlining nine main chapters and their starting page numbers for quick navigation - The report comprises nine main chapters, covering important notes, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, financial reports, and other submitted data[8](index=8&type=chunk) [List of Reference Documents](index=4&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) This section lists reference documents, including original semi-annual report texts, financial statements, public disclosure files, and announcements, all available at the Board of Directors' office - Reference documents include the original semi-annual report signed by the chairman, original financial statements signed by the legal representative, original public disclosure documents from CSRC-designated newspapers, and original announcements[10](index=10&type=chunk) - All reference documents are kept at the company's Board of Directors' office[11](index=11&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines key terms and company abbreviations used in the report, such as 'Jianshe Industry,' 'Xiyi Company,' and 'China South Industries Group,' along with the reporting period - 'Jianshe Industry,' 'Company,' 'This Company,' and 'Parent Company' all refer to Jianshe Industry Group (Yunnan) Co., Ltd[12](index=12&type=chunk) - 'China South Industries Group' refers to China South Industries Group Corporation Limited[12](index=12&type=chunk) - 'This reporting period' refers to January to June 2025[12](index=12&type=chunk) Company Profile and Key Financial Indicators [Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) This section provides the company's basic information, including its stock abbreviation 'Jianshe Industry,' stock code 002265, Chinese name Jianshe Industry Group (Yunnan) Co., Ltd., and legal representative Xian Zhigang Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Jianshe Industry | | Stock Code | 002265 | | Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | Jianshe Industry Group (Yunnan) Co., Ltd. | | Legal Representative | Xian Zhigang | [Contact Persons and Contact Information](index=6&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section lists the contact information for the company's Board Secretary, Jiang Wei, including address, phone, fax, and email, to facilitate investor communication Board Secretary Contact Information | Position | Name | Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Jiang Wei | No. 1 Jianshe Avenue, Huaxi Industrial Park, Banan District, Chongqing | 023-66296173 | 023-66295555 | jsgy002265@cqjsgy.com | [Other Information](index=6&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) During the reporting period, there were no changes to the company's registered address, office address, website, email, or information disclosure and placement locations, with details available in the 2024 annual report - The company's registered address, office address, website, and email remained unchanged during the reporting period[16](index=16&type=chunk) - Information disclosure and placement locations remained unchanged during the reporting period[17](index=17&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In the first half of 2025, the company's operating revenue decreased by **22.40%** to **1.517 billion yuan**, and net profit attributable to shareholders decreased by **44.90%** to **48.87 million yuan**, primarily due to contract signing cycles, while total assets and net assets attributable to shareholders slightly increased Key Accounting Data and Financial Indicators (Year-on-Year Change) | Indicator | Current Period (yuan) | Prior Year Period (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,517,297,732.76 | 1,955,177,427.92 | -22.40% | | Net Profit Attributable to Parent Company Shareholders | 48,865,767.32 | 88,693,426.77 | -44.90% | | Net Profit Attributable to Parent Company Shareholders After Deducting Non-Recurring Gains and Losses | 32,046,566.45 | 57,492,091.22 | -44.26% | | Net Cash Flow from Operating Activities | -853,744,482.07 | -869,085,434.78 | 1.77% | | Basic Earnings Per Share (yuan/share) | 0.05 | 0.09 | -44.44% | | Diluted Earnings Per Share (yuan/share) | 0.05 | 0.09 | -44.44% | | Weighted Average Return on Net Assets | 1.32% | 2.60% | -1.28% | | Indicator | Period-End Balance (yuan) | Prior Year-End Balance (yuan) | Period-End vs. Prior Year-End Change | | :--- | :--- | :--- | :--- | | Total Assets | 8,244,551,050.42 | 8,163,970,186.82 | 0.99% | | Net Assets Attributable to Parent Company Shareholders | 3,670,422,132.07 | 3,622,743,128.35 | 1.32% | - The decrease in operating revenue and net profit attributable to parent company shareholders was primarily due to the impact of contract signing cycles[19](index=19&type=chunk) [Differences in Accounting Data Under Domestic and Foreign Accounting Standards](index=7&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under International Accounting Standards or foreign accounting standards and those prepared under Chinese Accounting Standards - The company reported no differences in net profit and net assets between financial statements disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[20](index=20&type=chunk) - The company reported no differences in net profit and net assets between financial statements disclosed under foreign accounting standards and Chinese Accounting Standards during the reporting period[21](index=21&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=7&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) The company's total non-recurring gains and losses for the reporting period amounted to **16.82 million yuan**, primarily comprising government grants recognized in current profit or loss and handling fees for withholding individual income tax Non-Recurring Gains and Losses Items and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains or losses on disposal of non-current assets | -375,820.92 | | Government grants recognized in current profit or loss | 18,860,448.36 | | Debt restructuring gains or losses | 331,846.00 | | Other non-operating income and expenses apart from the above | 696,336.76 | | Other gains and losses meeting the definition of non-recurring | 338,782.01 | | Less: Income tax impact | 2,981,349.98 | | Minority interest impact (after tax) | 51,041.36 | | Total | 16,819,200.87 | - Other non-recurring gains and losses for January-June 2025 primarily consisted of handling fees for withholding individual income tax[24](index=24&type=chunk) Management Discussion and Analysis [Main Businesses Engaged by the Company During the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company's main businesses remained largely unchanged, encompassing special products (light weapon equipment), automotive parts (connecting rods, transmission, steering, braking systems, including new energy vehicle components), and strategic emerging industries (civilian firearms, anti-terrorism, optoelectronic information, high-end titanium alloys), with a focus on integrated development and adaptation to automotive electrification and intelligence - The company's main businesses remained largely unchanged, primarily including special products, automotive parts, and strategic emerging industries[26](index=26&type=chunk) - Special product business covers light weapon equipment, focusing on the integrated development of mechanization, informatization, and intelligence, with export products sold to dozens of countries and regions worldwide[26](index=26&type=chunk) - The automotive parts industry actively adapts to electrification, intelligence, and lightweight trends, with steady development in new energy vehicle components and a leading market share in automotive connecting rods[26](index=26&type=chunk) - Strategic emerging industries focus on new special equipment, new energy vehicles, new materials, optoelectronic information, and other fields, accelerating their cultivation[26](index=26&type=chunk) [Core Competitiveness Analysis](index=9&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness spans industry position, products, military-civilian integration, technological innovation, intelligent manufacturing, talent, quality control, and corporate culture, maintaining a leading position in light weapons and automotive connecting rods as a China South Industries Group-controlled listed company - The company is a listed company controlled by China South Industries Group Corporation Limited, a leading domestic R&D and manufacturing enterprise for light weapon equipment, and a leader in the automotive connecting rod industry, honored as a national-level "specialized, refined, unique, and new" small giant enterprise[27](index=27&type=chunk) - By deepening military-civilian integrated development, the company has achieved mutual advantages and support between military and civilian products, enhancing its sustainable development and risk resistance capabilities[29](index=29&type=chunk) - The company possesses multiple innovation platforms, including a national postdoctoral research workstation and a national defense science and technology industry technology center, and has been approved by the National Defense Science and Technology Industry Bureau as a "Special Product Manufacturing Discipline and Technology Center," leading the co-establishment of the "Chongqing Key Laboratory for Special Robot Design and Control Technology"[30](index=30&type=chunk) - The company holds core technologies such as special deep tube processing and complex parts manufacturing, has built over **60** automated production units, and has been recognized as a Chongqing Smart Factory and Digital Workshop[32](index=32&type=chunk) - The company operates a postdoctoral research workstation and an academician (expert) innovation workstation, having recruited **2** full-time PhDs in weapon science and technology and control in 2025, with **292** professionals in informatization and intelligent manufacturing[33](index=33&type=chunk) - The company is certified with ISO9000, GJB9001C, IATF16949:2016, and GJB5000B standards, being the eighth enterprise nationwide to achieve Level 3 maturity in the new era equipment quality management system[34](index=34&type=chunk) [Main Business Analysis](index=10&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) In the first half of 2025, the company's operating revenue decreased by **22.40%** year-on-year, while operating costs decreased by **26.52%**, leading to a **4.60%** increase in gross margin; selling expenses significantly decreased due to accounting standard adjustments, management expenses increased due to performance incentives, and financial expenses substantially reduced due to deposit structure adjustments, with overseas revenue growing by **71.08%** Key Financial Data Year-on-Year Changes | Indicator | Current Period (yuan) | Prior Year Period (yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,517,297,732.76 | 1,955,177,427.92 | -22.40% | | | Operating Costs | 1,242,485,054.30 | 1,690,903,334.57 | -26.52% | | | Selling Expenses | 7,930,931.35 | 11,798,327.90 | -32.78% | Adjustment due to Accounting Standards Interpretation No. 18, where quality assurance provisions previously classified as selling expenses are now accounted for as main business costs | | Administrative Expenses | 151,421,719.68 | 127,547,512.97 | 18.72% | Impact of performance incentive payouts | | Financial Expenses | -8,563,370.52 | -131,132.96 | -6,430.30% | Impact of deposit structure adjustments | | Income Tax Expense | 657,695.00 | 6,217,486.34 | -89.42% | Impact of reduced total profit and increased R&D expense super deduction | | R&D Investment | 118,603,321.52 | 101,856,499.32 | 16.44% | | | Net Cash Flow from Operating Activities | -853,744,482.07 | -869,085,434.78 | 1.77% | | | Net Cash Flow from Investing Activities | -440,310,485.44 | -136,765,903.70 | -221.94% | Impact of new three-year fixed deposits | | Net Cash Flow from Financing Activities | 494,459,620.32 | 372,217,250.00 | 32.84% | Impact of increased borrowings | | Net Increase in Cash and Cash Equivalents | -799,310,282.68 | -633,714,734.37 | -26.13% | | Operating Revenue Composition (by Industry, Product, Region) | Category | Current Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Period Amount (yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Operating Revenue** | **1,517,297,732.76** | **100%** | **1,955,177,427.92** | **100%** | **-22.40%** | | **By Industry** | | | | | | | Manufacturing | 1,517,297,732.76 | 100.00% | 1,955,177,427.92 | 100.00% | -22.40% | | **By Product** | | | | | | | Main Business | 1,479,285,157.08 | 97.49% | 1,911,794,836.47 | 97.78% | -22.62% | | Other Businesses | 38,012,575.68 | 2.51% | 43,382,591.45 | 2.22% | -12.38% | | **By Region** | | | | | | | Domestic | 1,440,026,778.62 | 94.91% | 1,910,011,088.34 | 97.69% | -24.61% | | Overseas | 77,270,954.14 | 5.09% | 45,166,339.58 | 2.31% | 71.08% | Industry, Product, or Region Accounting for Over 10% of Company's Operating Revenue or Operating Profit | Category | Operating Revenue (yuan) | Operating Costs (yuan) | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Costs | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | | | | | | | | Manufacturing | 1,517,297,732.76 | 1,242,485,054.30 | 18.11% | -22.40% | -26.52% | 4.60% | | **By Product** | | | | | | | | Main Business | 1,479,285,157.08 | 1,235,700,023.45 | 16.47% | -22.62% | -26.34% | 4.22% | [Non-Main Business Analysis](index=11&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) The company's non-main businesses significantly contribute to total profit, with investment income accounting for **47.45%** (primarily from equity method investments) and other income for **62.87%** (mainly from government grants), both demonstrating sustainability, while other items like asset impairment and non-operating income/expenses have minor, non-recurring impacts Impact of Non-Main Businesses on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 23,991,685.64 | 47.45% | Primarily investment income accounted for using the equity method | Yes | | Asset Impairment | -576,803.95 | -1.14% | See "71. Credit Impairment Losses" and "72. Asset Impairment Losses" in Note VII of the financial report | No | | Non-Operating Income | 2,909,053.43 | 5.75% | See "74. Non-Operating Income" in Note VII of the financial report | No | | Non-Operating Expenses | 2,212,716.67 | 4.38% | See "75. Non-Operating Expenses" in Note VII of the financial report | No | | Gains on Disposal of Assets | -375,820.92 | -0.74% | See "73. Gains on Disposal of Assets" in Note VII of the financial report | No | | Other Income | 31,788,181.90 | 62.87% | See "67. Other Income" in Note VII of the financial report | Yes | [Analysis of Assets and Liabilities](index=12&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, the company's total assets and net assets attributable to shareholders both increased; the asset structure showed a **10.29%** decrease in cash and bank balances, while accounts receivable and inventories increased by **1.90%** and **3.14%** respectively, and short-term borrowings significantly increased by **6.04%**, reflecting higher borrowing levels Significant Changes in Asset Composition | Item | Period-End Amount (yuan) | Proportion of Total Assets | Prior Year-End Amount (yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 1,493,932,858.75 | 18.12% | 2,319,367,193.24 | 28.41% | -10.29% | | Accounts Receivable | 1,511,328,032.41 | 18.33% | 1,341,578,156.62 | 16.43% | 1.90% | | Inventories | 1,052,946,136.91 | 12.77% | 786,177,277.96 | 9.63% | 3.14% | | Short-Term Borrowings | 700,976,800.00 | 8.50% | 201,124,569.67 | 2.46% | 6.04% | | Total Assets | 8,244,551,050.42 | | 8,163,970,186.82 | | 0.99% | | Net Assets Attributable to Parent Company Shareholders | 3,670,422,132.07 | | 3,622,743,128.35 | | 1.32% | - At the end of the reporting period, there were no significant changes in the measurement attributes of the company's major assets[45](index=45&type=chunk) Asset Rights Restricted at the End of the Reporting Period | Item | Period-End Book Value (yuan) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Bank Balances | 14,499,995.54 | Bill deposits, special funds, etc. | | Fixed Assets | 22,581,264.78 | Credit mortgage | | Intangible Assets | 12,365,657.83 | Credit mortgage | | Accounts Receivable | 1,408,013,439.96 | Pledged for financial institution credit | | Notes Receivable | 7,544,999.22 | Undue notes endorsed | | Total | 1,465,005,357.33 | | [Investment Status Analysis](index=13&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) During the reporting period, the company's total investment increased by **4.04%** year-on-year, with an overall utilization rate of **88.37%** for raised funds, primarily used for cash consideration for equity purchases and working capital, all committed projects achieved expected benefits and no significant changes in feasibility, and no securities, derivative investments, or changes in raised fund projects occurred Report Period Investment Amount | Indicator | Amount (yuan) | | :--- | :--- | | Report Period Investment Amount | 93,694,500.00 | | Prior Year Period Investment Amount | 90,048,600.00 | | Change Percentage | 4.04% | - The company had no securities investments or derivative investments during the reporting period[48](index=48&type=chunk)[49](index=49&type=chunk) [Overall Use of Raised Funds](index=14&type=section&id=%EF%BC%881%EF%BC%89%20%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E6%80%BB%E4%BD%93%E4%BD%BF%E7%94%A8%E6%83%85%E5%86%B5) As of June 30, 2025, the company utilized **0.2512 million yuan** of raised funds this year (for working capital), with a remaining balance of **150.04 million yuan** (including interest income and handling fees), resulting in an overall utilization rate of **88.37%** Overall Use of Raised Funds | Fundraising Year | Fundraising Method | Total Raised Capital (million yuan) | Net Raised Capital (1) (million yuan) | Total Raised Capital Used This Period (million yuan) | Total Raised Capital Used Cumulatively (2) (million yuan) | Raised Capital Utilization Rate at Period End (3)=(2)/(1) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2023 | Issuance of Shares to Specific Objects | 100,000 | 97,827 | 25.12 | 86,447.38 | 88.37% | - As of June 30, 2025, **0.2512 million yuan** of raised funds were used this year (for working capital), with a remaining balance of **150.04 million yuan** (including interest income and handling fees)[53](index=53&type=chunk) [Status of Committed Projects for Raised Funds](index=14&type=section&id=%EF%BC%882%EF%BC%89%20%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E6%89%BF%E8%AF%BA%E9%A1%B9%E7%9B%AE%E6%83%85%E5%86%B5) The company's committed projects for raised funds include cash consideration for equity purchases, working capital, and issuance underwriting fees and other transaction taxes; all committed projects remain unchanged, have cumulatively invested between **51.07%** and **100%** of the total committed investment, and have achieved expected benefits by the end of the reporting period Status of Committed Projects for Raised Funds | Committed Investment Project | Project Nature | Project Changed | Total Committed Investment (million yuan) | Adjusted Total Investment (1) (million yuan) | Amount Invested This Period (million yuan) | Cumulative Amount Invested at Period End (2) (million yuan) | Investment Progress at Period End (3)=(2)/(1) | Achieved Expected Benefits | Significant Change in Project Feasibility | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 1. Cash Consideration for Equity Purchase | Investment & M&A | No | 70,000 | 70,000 | | 70,000 | 100.00% | Yes | No | | 2. Working Capital | Working Capital | No | 27,697 | 27,697 | 25.12 | 14,144.38 | 51.07% | Yes | No | | 3. Issuance Underwriting Fees and Other Transaction Taxes | Investment & M&A | No | 2,303 | 2,303 | | 2,303 | 100.00% | Yes | No | | **Subtotal of Committed Investment Projects** | | -- | **100,000** | **100,000** | **25.12** | **86,447.38** | -- | -- | -- | - All committed investment projects remained unchanged and achieved expected benefits[55](index=55&type=chunk) [Changes in Raised Funds Projects](index=16&type=section&id=%EF%BC%883%EF%BC%89%20%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E5%8F%98%E6%9B%B4%E9%A1%B9%E7%9B%AE%E6%83%85%E5%86%B5) The company had no changes in raised funds projects during the reporting period - The company had no changes in raised funds projects during the reporting period[58](index=58&type=chunk) [Disposal of Significant Assets and Equity](index=17&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company did not dispose of any significant assets or equity during the reporting period - The company did not dispose of significant assets during the reporting period[59](index=59&type=chunk) - The company did not dispose of significant equity during the reporting period[60](index=60&type=chunk) [Analysis of Major Holding and Invested Companies](index=17&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This section details the company's major holding subsidiaries and invested companies with over **10%** impact on net profit, including Chongqing Jianshe Industrial, Chengde Suken Yinhe Auto Parts Yancheng Co., Ltd., and Chongqing Nexteer Steering Systems Co., Ltd., which significantly contribute to operating revenue and net profit in special products and automotive parts Major Subsidiaries and Invested Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (million yuan) | Total Assets (million yuan) | Net Assets (million yuan) | Operating Revenue (million yuan) | Operating Profit (million yuan) | Net Profit (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chongqing Jianshe Industrial (Group) Co., Ltd. | Subsidiary | Special products, automotive parts, and others | 201.1559 | 6,773.8851 | 2,922.6115 | 740.9125 | 106.4753 | 107.9757 | | Chengde Suken Yinhe Auto Parts Yancheng Co., Ltd. | Subsidiary | Automotive parts | 137.6336 | 256.8571 | 173.2300 | 152.5891 | 19.7138 | 16.6833 | | Chongqing Nexteer Steering Systems Co., Ltd. | Invested Company | Automotive parts | 120.0000 | 1,301.2283 | 347.0784 | 793.4595 | 30.4125 | 25.5256 | - The company neither acquired nor disposed of subsidiaries during the reporting period[61](index=61&type=chunk) [Information on Structured Entities Controlled by the Company](index=17&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company had no controlled structured entities during the reporting period - The company had no controlled structured entities during the reporting period[62](index=62&type=chunk) [Risks Faced by the Company and Countermeasures](index=17&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces risks including transformation and development, market competition, safety production, environmental protection, product quality, digitalization, special product price fluctuations, inventory impairment, stock market volatility, and force majeure, which it addresses through strengthening mission, optimizing product structure, enhancing cost control, improving safety management, increasing environmental investment, reinforcing quality control, unified digital transformation planning, and refining market risk prevention mechanisms - The company faces transformation and development risks, and will promote light weapon equipment towards "three-integration" (mechanization, informatization, intelligence) and intelligent unmanned directions, accelerating the transformation of automotive parts business "from oil to electric," "from crude to refined," and "from components to assemblies"[62](index=62&type=chunk) - The company faces market competition risks and will strengthen market analysis and forecasting, accelerate new product cultivation and industrialization, enhance cost control, and improve market risk prevention mechanisms[63](index=63&type=chunk) - The company faces risks in safety production, environmental protection, product quality, and digitalization, which will be addressed through measures such as reinforcing safety responsibilities, increasing investment in environmental equipment upgrades, strengthening quality control, and unified planning for digital transformation[64](index=64&type=chunk)[65](index=65&type=chunk) - The company is exposed to risks of special product price fluctuations and inventory impairment, as well as stock market volatility and force majeure risks[65](index=65&type=chunk)[66](index=66&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=18&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not formulated a market value management system nor disclosed a valuation enhancement plan - The company has not formulated a market value management system[67](index=67&type=chunk) - The company has not disclosed a valuation enhancement plan[67](index=67&type=chunk) [Implementation of "Quality and Return Dual Enhancement" Action Plan](index=18&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E2%80%9C%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%E2%80%9D%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company formulated a "Quality and Return Dual Enhancement" action plan in April 2024, and during the reporting period, it continuously advanced product and industry development, technological innovation, modernization of corporate governance, improvement of information disclosure quality, and construction of a safety risk prevention and control system, leading to its inclusion in the Shenzhen Component Index sample stock in June 2025, further enhancing its capital market influence - The company formulated a "Quality and Return Dual Enhancement" action plan in April 2024, aiming to invigorate the capital market and boost investor confidence[68](index=68&type=chunk) - During the reporting period, the company continuously promoted the development of special and civilian product industries, accelerated new project approvals and overseas marketing transformation, ensuring stable development of the military-civilian integrated industrial segment[68](index=68&type=chunk) - The company adheres to technology-driven innovation, having been approved by the National Defense Science and Technology Industry Bureau as a "Special Product Manufacturing Discipline and Technology Center" and leading the co-establishment of the "Chongqing Key Laboratory for Special Robot Design and Control Technology"[69](index=69&type=chunk) - The company continuously improves its modern corporate governance system, optimizing organizational structure, revising governance policies, and strengthening Board of Directors construction[70](index=70&type=chunk) - The company enhances information disclosure quality through performance briefings, investor reception days, and interactive platforms, providing high-quality responses to investor questions, and published its "2024 Environmental, Social, and Governance (ESG) Report"[71](index=71&type=chunk) - The company was included in the Shenzhen Component Index sample stock on June 16, 2025, further enhancing its capital market influence[72](index=72&type=chunk) - The company steadily improved its overall safety management level, continuously refined its risk control system, and experienced no safety risk incidents in the first half of the year[74](index=74&type=chunk) Corporate Governance, Environment, and Society [Changes in Company Directors, Supervisors, and Senior Management](index=21&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, company director Wang Xiaochang resigned due to job relocation, and Gu Daokun was elected as a director Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Wang Xiaochang | Director | Resignation | January 06, 2025 | Job relocation | | Gu Daokun | Director | Election | February 14, 2025 | Job relocation | [Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Reporting Period](index=21&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[77](index=77&type=chunk) [Implementation of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=21&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[78](index=78&type=chunk) [Environmental Information Disclosure](index=21&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The company and its three major subsidiaries (Jianshe Industry Group (Yunnan) Co., Ltd., Chongqing Jianshe Industrial (Group) Co., Ltd., and Chengde Suken Yinhe Auto Parts Co., Ltd.) are all included in the list of enterprises required to disclose environmental information by law, with corresponding inquiry indexes provided - The company and its **3** major subsidiaries are included in the list of enterprises required to disclose environmental information by law[79](index=79&type=chunk) Enterprises Included in the List of Enterprises Required to Disclose Environmental Information by Law | No. | Enterprise Name | Inquiry Index for Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Jianshe Industry Group (Yunnan) Co., Ltd. | http://183.224.17.39:10097/ynyfpl/frontal/index.html/home/index | | 2 | Chongqing Jianshe Industrial (Group) Co., Ltd. | http://cqtpf.cqree.cn:10001/eps/index/enterprise-search | | 3 | Chengde Suken Yinhe Auto Parts Co., Ltd. | http://121.29.48.71:8080/ | [Social Responsibility Performance](index=21&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) In 2025, the company actively fulfilled its social responsibilities by strengthening organizational leadership, formulating assistance plans, and carrying out targeted poverty alleviation work, including allocating **1 million yuan** for rural construction, purchasing **15,990 yuan** worth of agricultural products from poverty-stricken areas, and dispatching cadres to support rural revitalization and conduct慰问调研 activities - The company's Party Committee highly values targeted assistance work, specifically studying and deploying the 2025 assistance plan[81](index=81&type=chunk) - The company allocated **1 million yuan** in aid funds, with **0.9 million yuan** to Yanshan County, Yunnan Province, and **0.1 million yuan** to Yajiang County, Sichuan Province, for rural construction[83](index=83&type=chunk) - The company purchased **15,990 yuan** worth of agricultural products from poverty-stricken areas, implementing consumption-based assistance[84](index=84&type=chunk) - The company dispatched Zhu Haizhou, an excellent young middle-level cadre, to serve as Deputy County Head of Yanshan County, Yunnan Province, and Dai Fei as First Secretary and Team Leader of the驻村干部 in Nimei Village, Leyu Town, Honghe County, Yunnan Province, to support rural revitalization[85](index=85&type=chunk) Significant Matters [Commitments Fulfilled or Overdue by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period](index=23&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) During the reporting period, there were no commitments fulfilled or overdue by the company's actual controller, shareholders, related parties, acquirers, or the company itself - The company had no overdue unfulfilled commitments during the reporting period[88](index=88&type=chunk) [Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties](index=23&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company - The company had no non-operating fund occupation by the controlling shareholder or other related parties during the reporting period[89](index=89&type=chunk) [Illegal External Guarantees](index=23&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no illegal external guarantees during the reporting period - The company had no illegal external guarantees during the reporting period[90](index=90&type=chunk) [Appointment and Dismissal of Accounting Firms](index=23&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%83%85%E5%86%B5) The company's semi-annual financial report is unaudited - The company's semi-annual report is unaudited[91](index=91&type=chunk) [Board of Directors' and Supervisory Board's Explanation on "Non-Standard Audit Report" for the Current Reporting Period](index=23&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9A%84%E8%AF%B4%E6%98%8E) During the reporting period, the company received no "non-standard audit report" from its accounting firm - The company received no "non-standard audit report" from its accounting firm during the reporting period[92](index=92&type=chunk) [Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year](index=23&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) During the reporting period, there was no explanation from the Board of Directors regarding the "non-standard audit report" for the previous year - There was no explanation from the Board of Directors regarding the "non-standard audit report" for the previous year during the reporting period[92](index=92&type=chunk) [Bankruptcy and Reorganization Matters](index=23&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[92](index=92&type=chunk) [Litigation Matters](index=23&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) During the reporting period, the company had no significant litigation or arbitration matters; other litigation involved **8.869 million yuan**, with **8** cases concluded in the first half, including **5** favorable judgments in primary cases, **2** withdrawals by plaintiffs in defendant cases, and **1** defendant case fully enforced - This reporting period, the company had no significant litigation or arbitration matters[93](index=93&type=chunk) Summary of Other Litigation Matters | Litigation/Arbitration Details | Amount Involved (million yuan) | Provision for Liabilities Formed | Litigation/Arbitration Progress | Litigation/Arbitration Outcome and Impact | Judgment Enforcement Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Summary of other litigation not meeting significant disclosure standards | 8.869 | No | 8 cases concluded in H1 2025 | 5 primary cases resulted in effective favorable judgments, 2 defendant cases were withdrawn by plaintiffs, and 1 defendant (third party) case required payment of 21,800 yuan, a minor amount | 4 primary cases have applied for compulsory enforcement (no monetary amount, requesting vacation of public housing), another primary case's defendant is bankrupt with claims filed; 1 defendant (third party) case has been fully enforced | [Penalties and Rectification](index=24&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[95](index=95&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=24&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) During the reporting period, there were no integrity issues concerning the company, its controlling shareholder, or actual controller - There were no integrity issues concerning the company, its controlling shareholder, or actual controller during the reporting period[96](index=96&type=chunk) [Significant Related Party Transactions](index=24&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) During the reporting period, the company had no related party transactions concerning daily operations, asset or equity acquisition/disposal, joint external investments, or related party creditor/debtor relationships; however, the company engaged in financial business with China South Industries Group Finance Co., Ltd., including deposits, loans, and credit facilities - The company had no related party transactions concerning daily operations, asset/equity acquisition/disposal, joint external investments, or related party creditor/debtor relationships during the reporting period[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) [Transactions with Related Finance Companies](index=24&type=section&id=5%E3%80%81%E4%B8%8E%E5%AD%98%E5%9C%A8%E5%85%B3%E8%81%94%E5%85%B3%E7%B3%BB%E7%9A%84%E8%B4%A2%E5%8A%A1%E5%85%AC%E5%8F%B8%E7%9A%84%E5%BE%80%E6%9D%A5%E6%83%85%E5%86%B5) The company engages in deposit, loan, and credit financial services with China South Industries Group Finance Co., Ltd., with an ending deposit balance of **2.158 billion yuan**, a loan balance of **700.98 million yuan**, and actual credit utilization of **868.52 million yuan** Deposit Transactions with China South Industries Group Finance Co., Ltd. | Related Party | Relationship | Max Daily Deposit Limit (million yuan) | Deposit Interest Rate Range | Beginning Balance (million yuan) | Total Deposits This Period (million yuan) | Total Withdrawals This Period (million yuan) | Ending Balance (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | China South Industries Group Finance Co., Ltd. | Same ultimate controller | 420,000 | 0.1%～3.1625% | 235,613 | 191,861 | 211,635 | 215,839 | Loan Transactions with China South Industries Group Finance Co., Ltd. | Related Party | Relationship | Loan Limit (million yuan) | Loan Interest Rate Range | Beginning Balance (million yuan) | Total Loans This Period (million yuan) | Total Repayments This Period (million yuan) | Ending Balance (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | China South Industries Group Finance Co., Ltd. | Same ultimate controller | 160,000 | 1%～2.95% | 20,100.82 | 49,996.86 | 0 | 70,097.68 | Credit and Other Financial Services with China South Industries Group Finance Co., Ltd. | Related Party | Relationship | Business Type | Total Amount (million yuan) | Actual Amount (million yuan) | | :--- | :--- | :--- | :--- | :--- | | China South Industries Group Finance Co., Ltd. | Same ultimate controller | Credit | 200,000 | 86,852.07 | [Transactions Between the Company's Controlled Finance Company and Related Parties](index=25&type=section&id=6%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E8%82%A1%E7%9A%84%E8%B4%A2%E5%8A%A1%E5%85%AC%E5%8F%B8%E4%B8%8E%E5%85%B3%E8%81%94%E6%96%B9%E7%9A%84%E5%BE%80%E6%9D%A5%E6%83%85%E5%86%B5) The company's controlled finance company has no deposit, loan, credit, or other financial transactions with related parties - The company's controlled finance company has no deposit, loan, credit, or other financial transactions with related parties[101](index=101&type=chunk) [Other Significant Related Party Transactions](index=25&type=section&id=7%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company had no other significant related party transactions during the reporting period - The company had no other significant related party transactions during the reporting period[102](index=102&type=chunk) [Significant Contracts and Their Performance](index=25&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) During the reporting period, the company had no entrustment, contracting, significant guarantees, or wealth management activities; current rental income totaled **13.67 million yuan**, which did not exceed **10%** of total profit, and there were no other significant contracts - The company had no entrustment, contracting, significant guarantees, or wealth management activities during the reporting period[103](index=103&type=chunk)[104](index=104&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) [Leasing Situation](index=25&type=section&id=%EF%BC%883%EF%BC%89%20%E7%A7%9F%E8%B5%81%E6%83%85%E5%86%B5) During this reporting period, the company recognized **13.67 million yuan** in rental income from leasing land and properties at its Huaxi headquarters, Degan base, and Pengzhou base, with no leasing projects generating profits exceeding **10%** of the company's total profit - During this reporting period, the company recognized **13.67 million yuan** in rental income from leasing land and properties at its Huaxi headquarters, Degan base, and Pengzhou base[105](index=105&type=chunk) - No leasing projects generated profits exceeding **10%** of the company's total profit for the reporting period[107](index=107&type=chunk) [Explanation of Other Significant Matters](index=26&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company's controlling shareholder, China South Industries Group Corporation Limited, is planning a restructuring, and on June 4, 2025, received notification from the State-owned Assets Supervision and Administration Commission of the State Council that China South Industries Group would undergo a split, with its automotive business segment becoming an independent central enterprise, and the equity of the split China South Industries Group would be injected into China North Industries Group Corporation Limited - The company's controlling shareholder, China South Industries Group Corporation Limited, is planning a restructuring[111](index=111&type=chunk) - China South Industries Group will undergo a split, with its automotive business segment becoming an independent central enterprise, and the equity of the split China South Industries Group will be injected into China North Industries Group Corporation Limited[111](index=111&type=chunk) [Significant Matters of Company Subsidiaries](index=26&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) There were no significant matters concerning the company's subsidiaries during the reporting period - There were no significant matters concerning the company's subsidiaries during the reporting period[112](index=112&type=chunk) Share Changes and Shareholder Information [Share Capital Changes](index=27&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's total share capital remained unchanged at **1,033,040,407 shares**, with restricted shares accounting for **60.98%** and unrestricted shares for **39.02%** Share Capital Changes | Item | Quantity Before Change (shares) | Percentage Before Change | Increase/Decrease This Change (+,-) | Quantity After Change (shares) | Percentage After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 629,943,382 | 60.98% | 0 | 629,943,382 | 60.98% | | 2. State-owned Legal Person Shares | 629,943,382 | 60.98% | 0 | 629,943,382 | 60.98% | | II. Unrestricted Shares | 403,097,025 | 39.02% | 0 | 403,097,025 | 39.02% | | 1. RMB Ordinary Shares | 403,097,025 | 39.02% | 0 | 403,097,025 | 39.02% | | III. Total Shares | 1,033,040,407 | 100.00% | 0 | 1,033,040,407 | 100.00% | - The company's total share capital remained unchanged during the reporting period[115](index=115&type=chunk) [Securities Issuance and Listing](index=28&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) There were no securities issuance or listing activities during the reporting period - There were no securities issuance or listing activities during the reporting period[116](index=116&type=chunk) [Company Shareholder Numbers and Shareholding](index=28&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **126,460** ordinary shareholders, with China South Industries Group Corporation Limited (**65.89%** shareholding) and Southern Industrial Asset Management Co., Ltd. (**12.16%** shareholding) as the top two shareholders - As of the end of the reporting period, the total number of ordinary shareholders was **126,460**[117](index=117&type=chunk) Shareholding of Shareholders with 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period End (shares) | Change During Reporting Period | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | China South Industries Group Corporation Limited | State-owned Legal Person | 65.89% | 680,700,035.00 | 0 | 629,943,382.00 | 50,756,653.00 | | Southern Industrial Asset Management Co., Ltd. | State-owned Legal Person | 12.16% | 125,605,626.00 | 0 | 0 | 125,605,626.00 | - China South Industries Group Corporation Limited is the controlling shareholder of Southern Asset and Changjiang Optoelectronics[117](index=117&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=29&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period, with details available in the 2024 annual report - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[119](index=119&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=29&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder did not change during the reporting period[120](index=120&type=chunk) - The company's actual controller did not change during the reporting period[120](index=120&type=chunk) Bond-Related Information [Bond-Related Information](index=31&type=section&id=%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) There were no bond-related matters during the reporting period - There were no bond-related matters during the reporting period[123](index=123&type=chunk) Financial Report [Audit Report](index=32&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report is unaudited - The company's semi-annual financial report is unaudited[125](index=125&type=chunk) [Financial Statements](index=32&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025; the consolidated statements show total assets of **8.245 billion yuan** and equity attributable to parent company owners of **3.67 billion yuan** at period-end, with current period net profit of **49.91 million yuan** and net profit attributable to parent company shareholders of **48.87 million yuan** Key Data from Consolidated Balance Sheet | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 8,244,551,050.42 | 8,163,970,186.82 | | Total Liabilities | 4,515,605,040.03 | 4,484,060,336.51 | | Total Equity Attributable to Parent Company Owners | 3,670,422,132.07 | 3,622,743,128.35 | Key Data from Consolidated Income Statement | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 1,517,297,732.76 | 1,955,177,427.92 | | Operating Profit | 49,866,743.04 | 98,090,542.85 | | Total Profit | 50,563,079.80 | 97,586,682.31 | | Net Profit | 49,905,384.80 | 91,369,195.97 | | Net Profit Attributable to Parent Company Shareholders | 48,865,767.32 | 88,693,426.77 | | Basic Earnings Per Share (yuan/share) | 0.05 | 0.09 | | Diluted Earnings Per Share (yuan/share) | 0.05 | 0.09 | Key Data from Consolidated Cash Flow Statement | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -853,744,482.07 | -869,085,434.78 | | Net Cash Flow from Investing Activities | -440,310,485.44 | -136,765,903.70 | | Net Cash Flow from Financing Activities | 494,459,620.32 | 372,217,250.00 | | Net Increase in Cash and Cash Equivalents | -799,310,282.68 | -633,714,734.37 | | Cash and Cash Equivalents at Period End | 1,479,432,863.21 | 1,491,492,818.78 | [Company Profile](index=51&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) The company, formerly Yunnan Xiyi Industrial Co., Ltd., underwent multiple share capital changes and asset restructurings, including share issuances for asset acquisitions and supporting fund raising in 2017 and 2022, and was renamed Jianshe Industry Group (Yunnan) Co., Ltd. in 2023, with its main business being R&D, production, sales, and service of special and civilian products, and China South Industries Group Corporation Limited as its actual controller - The company, formerly Yunnan Xiyi Industrial Co., Ltd., was established on March 28, 2005, with a registered capital of **218.026 million yuan**[163](index=163&type=chunk) - On July 25, 2008, the company's total share capital increased to **291.026 million shares** after its initial public offering[163](index=163&type=chunk) - In 2017, the total share capital increased to **318.566 million shares** following a share issuance for asset acquisition and supporting fund raising[164](index=164&type=chunk) - In 2022, the total share capital increased to **1.033 billion shares** after issuing shares to acquire 100% equity of Chongqing Jianshe Industrial (Group) Co., Ltd. and raising supporting funds[164](index=164&type=chunk)[165](index=165&type=chunk) - On July 19, 2023, the company's name changed to 'Jianshe Industry Group (Yunnan) Co., Ltd.' and its stock abbreviation to 'Jianshe Industry'[165](index=165&type=chunk) - The company's main business involves R&D, production, sales, and service of special products and civilian products, with China South Industries Group Corporation Limited as its actual controller[166](index=166&type=chunk) [Basis of Financial Statement Preparation](index=52&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission, on a going concern basis, accurately and completely reflecting the company's financial position, operating results, and cash flows - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission[167](index=167&type=chunk) - The financial statements are prepared on a going concern basis[168](index=168&type=chunk) - These financial statements comply with enterprise accounting standards, accurately and completely reflecting the company's consolidated and parent company financial position as of June 30, 2025, and operating results and cash flows for January-June 2025[170](index=170&type=chunk) [Significant Accounting Policies and Estimates](index=52&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the company's specific accounting policies and estimates regarding accounting period, operating cycle, functional currency, materiality, business combinations, consolidated financial statement preparation, joint arrangements, cash and cash equivalents, foreign currency transactions, financial instruments, notes receivable, accounts receivable, other receivables, contract assets, inventories, assets held for sale, debt investments, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, share-based payments, preferred shares/perpetual bonds, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases - The company's accounting year adopts the calendar year, with a 12-month operating cycle, and uses RMB as its functional currency[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk) - The company classifies financial assets as measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss[185](index=185&type=chunk) - The company provides for impairment losses on various financial assets based on expected credit losses[193](index=193&type=chunk) - The company depreciates fixed assets using the straight-line method, with buildings depreciated over 10-60 years and machinery over 5-15 years[217](index=217&type=chunk) - The company recognizes revenue when performance obligations are satisfied and the customer obtains control of the related goods or services, using different recognition methods for special products, civilian firearms, and automotive parts[245](index=245&type=chunk)[251](index=251&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk) [Taxes](index=77&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) The company's main taxes include Value-Added Tax, Urban Maintenance and Construction Tax, Enterprise Income Tax, Education Surcharge, and Local Education Surcharge; the company and several subsidiaries enjoy a **15%** Enterprise Income Tax preferential rate, primarily due to high-tech enterprise qualifications and Western Development policies Major Taxes and Tax Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Calculated based on sales of goods and taxable services as per tax laws, after deducting deductible input VAT | 5%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Calculated based on actual VAT paid | 7% | | Enterprise Income Tax | Calculated based on taxable income | 15%, 25% | | Education Surcharge | Calculated based on actual VAT paid | 3% | | Local Education Surcharge | Calculated based on actual VAT paid | 2% | Taxable Entities with Different Enterprise Income Tax Rates | Taxable Entity Name | Income Tax Rate | | :--- | :--- | | The Company | 15% | | Chengde Suken Yinhe Auto Parts Co., Ltd. | 15% | | Suken Yinhe Auto Parts Yancheng Co., Ltd. | 15% | | Chongqing Jianshe Industrial (Group) Co., Ltd. | 15% | | Chongqing Jianshe Transmission Technology Co., Ltd. | 15% | | Chongqing Jianshe Haofang Precision Manufacturing Co., Ltd. | 15% | | Chongqing Jianshe Zhongtai Precision Manufacturing Co., Ltd. | 15% | | Sichuan Huaqing Machinery Co., Ltd. | 25% | | Chongqing Zhujiang Optoelectronic Technology Co., Ltd. | 25% | - The company and several subsidiaries enjoy a **15%** enterprise income tax preferential rate, primarily due to high-tech enterprise qualifications and Western Development policies[276](index=276&type=chunk)[277](index=277&type=chunk)[278](index=278&type=chunk) [Notes to Consolidated Financial Statement Items](index=79&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed disclosures of the period-end balances, period-beginning balances, and changes for each item in the consolidated financial statements, including cash and bank balances of **1.494 billion yuan**, accounts receivable of **1.511 billion yuan**, and inventories of **1.053 billion yuan** at period-end, with operating revenue of **1.517 billion yuan**, operating costs of **1.242 billion yuan**, investment income of **23.99 million yuan**, credit impairment losses of **1.50 million yuan**, and asset impairment losses of **-2.08 million yuan** Cash and Bank Balances | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Bank Deposits | 624,801,159.49 | 822,650,441.31 | | Other Cash and Bank Balances | 10,743,044.86 | 12,791,867.37 | | Deposits with Finance Company | 858,388,654.40 | 1,483,924,884.56 | | Total | 1,493,932,858.75 | 2,319,367,193.24 | Accounts Receivable | Item | Period-End Book Balance (yuan) | Period-Beginning Book Balance (yuan) | | :--- | :--- | :--- | | Within 1 year (inclusive) | 1,388,265,467.55 | 1,212,201,940.74 | | 1 to 2 years | 80,077,341.93 | 113,654,628.57 | | 2 to 3 years | 47,444,121.48 | 19,218,280.51 | | Over 3 years | 47,864,010.08 | 49,479,486.10 | | Total | 1,563,650,941.04 | 1,394,554,335.92 | | Book Value | 1,511,328,032.41 | 1,341,578,156.62 | Inventories | Item | Period-End Book Value (yuan) | Period-Beginning Book Value (yuan) | | :--- | :--- | :--- | | Raw Materials | 100,349,485.35 | 105,048,657.00 | | Work in Progress | 373,604,401.32 | 130,920,095.16 | | Finished Goods | 538,395,441.44 | 471,374,681.59 | | Revolving Materials | 6,101,594.77 | 7,657,587.01 | | Contract Performance Costs | 10,695,396.84 | 28,937,527.89 | | Goods Issued | 1,988,723.36 | 4,887,294.68 | | Consigned Processing Materials | 21,811,093.83 | 37,351,434.63 | | Total | 1,052,946,136.91 | 786,177,277.96 | Fixed Assets | Item | Period-End Book Value (yuan) | Period-Beginning Book Value (yuan) | | :--- | :--- | :--- | | Buildings and Structures | 641,263,864.70 | 652,718,067.53 | | Machinery and Equipment | 974,727,942.94 | 1,053,210,275.87 | | Transportation Vehicles | 1,680,746.83 | 1,780,207.91 | | Other Equipment | 45,558,002.82 | 49,019,099.70 | | Total | 1,663,230,557.29 | 1,756,727,651.01 | Short-Term Borrowings | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Pledged Borrowings | 700,976,800.00 | 201,124,569.67 | | Total | 700,976,800.00 | 201,124,569.67 | Accounts Payable | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | M

天津力生制药股份有限公司 2025 年半年度报告全文 天津力生制药股份有限公司 2025 年半年度报告 国家医疗体制改革持续深化，实施带量采购、一致性评价、医保控费、两 票制、安全环保升级等政策，给公司经营发展带来挑战，对药品研发、生 产、销售产生较大影响。 （二）研发及转型风险 2025 年 8 月 天津力生制药股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的 真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个 别和连带的法律责任。 公司负责人张平、主管会计工作负责人王家颖及会计机构负责人(会计主 管人员)高峻声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 本报告中涉及的未来发展陈述，属于计划性事项，不构成公司对投资者的 实质承诺，敬请投资者注意投资风险。 （一）行业政策变化风险 公司致力于通过研发创新促进公司的转型升级，由于医药行业新品研发周 期长、投入大、不确定性强，公司会面临研发不成功或研发效果不及预期的 风险。 （三）生产要素成本不断上涨的风险 ...

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[Important Notes, Table of Contents, and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) This section provides important disclaimers, the report's structured table of contents, and definitions of key terms to ensure clarity [Important Notes](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The board, supervisory board, and senior management guarantee the semi-annual report's truthfulness and completeness, assuming legal responsibility - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false statements, misleading representations, or major omissions, and bear individual and joint legal responsibility[4](index=4&type=chunk) - Company's responsible person Lian Zongmin, head of accounting Zhong Xiaohua, and head of accounting department Mao Lijun declare that the financial report in this semi-annual report is true, accurate, and complete[4](index=4&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) This section lists the report's structured table of contents, covering nine main chapters [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines common terms, technical terms, and regulatory abbreviations for clear understanding [Company Profile and Key Financial Indicators](index=7&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides an overview of the company's basic information, contact details, and key financial performance metrics for the reporting period [Company Profile](index=7&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Shenzhen Dawei Innovation Technology Co., Ltd. (stock abbreviation: Dawei Shares, stock code: 002213) is listed on the Shenzhen Stock Exchange, with Lian Zongmin as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Dawei Shares | | Stock Code | 002213 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | 深圳市大为创新科技股份有限公司 | | Legal Representative | Lian Zongmin | [Contact Persons and Information](index=7&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) The company's board secretary is He Qiang, and the securities affairs representative is Li Ling, with contact details provided Contact Information | Position | Name | Contact Address | Phone | Email | | :--- | :--- | :--- | :--- | :--- | | Board Secretary | He Qiang | 深圳市南山区粤海街道高新区社区科技南路18号深圳湾科技生态园12栋A1406 | 0755-86555281 | db@daweimail.com | | Securities Affairs Representative | Li Ling | 深圳市南山区粤海街道高新区社区科技南路18号深圳湾科技生态园12栋A1406 | 0755-86555281 | db@daweimail.com | [Other Information](index=7&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) During the reporting period, there were no changes in the company's contact information, information disclosure, or other relevant details - Company's registered address, office address and postal code, website, email, etc., remained unchanged during the reporting period, as detailed in the 2024 annual report[16](index=16&type=chunk) - The company's designated securities exchange website and media for semi-annual report disclosure, and the location for semi-annual report availability, remained unchanged during the reporting period, as detailed in the 2024 annual report[17](index=17&type=chunk) [Key Accounting Data and Financial Indicators](index=8&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In the first half of 2025, the company's operating revenue increased by **18.46% to 659.22 million yuan**, but net profit attributable to shareholders was a loss of **11.68 million yuan** Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 659,216,741.99 | 556,481,583.84 | 18.46% | | Net Profit Attributable to Shareholders of Listed Company | -11,682,187.10 | -10,246,672.88 | -14.01% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | -6,684,543.75 | -11,078,209.46 | 39.66% | | Net Cash Flow from Operating Activities | -65,954,478.52 | -44,432,607.62 | -48.44% | | Basic Earnings Per Share (Yuan/Share) | -0.0494 | -0.0434 | -13.82% | | Diluted Earnings Per Share (Yuan/Share) | -0.0494 | -0.0434 | -13.82% | | Weighted Average Return on Net Assets | -2.09% | -1.70% | -0.39% | | **End of Current Period** | | **End of Prior Year** | **Change from Prior Year End** | | Total Assets | 709,145,483.87 | 780,366,526.01 | -9.13% | | Net Assets Attributable to Shareholders of Listed Company | 551,481,514.21 | 565,185,541.00 | -2.42% | [Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=8&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) 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 net profit and net assets in financial reports disclosed under international accounting standards and Chinese accounting standards showed no differences during the reporting period[20](index=20&type=chunk) - The company's net profit and net assets in financial reports disclosed under overseas accounting standards and Chinese accounting standards showed no differences during the reporting period[21](index=21&type=chunk) [Non-Recurring Gains and Losses and Amounts](index=8&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) The company's non-recurring gains and losses for the first half of 2025 totaled a negative **4.9976 million yuan**, primarily from asset disposal, government grants, and fair value changes of financial instruments Non-Recurring Gains and Losses for H1 2025 | Item | Amount (Yuan) | Explanation | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -2,733.40 | | | Government Grants Included in Current Profit/Loss | 94,596.74 | Mainly stable employment subsidies | | Gains/Losses from Changes in Fair Value of Financial Assets and Liabilities Held by Non-Financial Enterprises, and Gains/Losses from Disposal of Financial Assets and Liabilities, excluding effective hedge accounting related to normal business operations | -5,302,849.81 | Mainly gains/losses from financial assets held and disposed of | | Other Non-Operating Income and Expenses Apart from the Above | 213,489.05 | Mainly unpayable intercompany funds and individual income tax refunds | | Less: Income Tax Impact | 75.26 | | | Minority Interest Impact (After Tax) | 70.67 | | | Total | -4,997,643.35 | | - The company has no other profit/loss items that meet the definition of non-recurring gains and losses[24](index=24&type=chunk) - The company has not classified non-recurring gains and losses listed in "Interpretive Announcement No. 1 for Information Disclosure by Companies Issuing Securities to the Public – Non-Recurring Gains and Losses" as recurring gains and losses[24](index=24&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides an in-depth analysis of the company's business operations, financial performance, core competencies, and risk factors during the reporting period [Principal Businesses Engaged by the Company During the Reporting Period](index=10&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company's main businesses focus on "semiconductor memory + smart terminals" and "new energy + automotive," achieving steady growth with operating revenue up **18.46%** [Industry Overview](index=10&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%85%AC%E5%8F%B8%E6%89%80%E5%A4%84%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) The company operates in the semiconductor memory and new energy vehicle sectors, both benefiting from AI and green transformation, with strong growth in HBM, DDR5, and lithium battery shipments [Semiconductor Memory + Smart Terminals](index=10&type=section&id=1.%E5%8D%8A%E5%AF%BC%E4%BD%93%E5%AD%98%E5%82%A8%2B%E6%99%BA%E8%83%BD%E7%BB%88%E7%AB%AF) The semiconductor memory market is driven by AI, 5G, and IoT, with surging demand for HBM and DDR5, while smart terminals are moving towards AI integration by 2025 - The global AI-driven storage market is projected to surge from **$28.7 billion in 2024** to **$255.2 billion in 2034**, with a CAGR of **24.4%**[28](index=28&type=chunk) - High Bandwidth Memory (HBM) is expected to account for over **10% of total DRAM capacity** and more than **30% of total DRAM output value** in 2025[28](index=28&type=chunk) - Global smartphone shipments increased by **1.2% to 600 million units** in H1 2025; PC shipments reached **130 million units**, up **6%** year-on-year[31](index=31&type=chunk) [New Energy + Automotive](index=11&type=section&id=2.%E6%96%B0%E8%83%BD%E6%BA%90%2B%E6%B1%BD%E8%BD%A6) The new energy sector sees significant growth in lithium resource demand and battery shipments, while the automotive industry is rapidly electrifying and intellectualizing, with strong export performance [New Energy](index=11&type=section&id=%EF%BC%881%EF%BC%89%E6%96%B0%E8%83%BD%E6%BA%90) Global new energy industry is rapidly expanding, with lithium battery shipments up **68%** in H1 2025, driven by **49%** growth in power batteries and **128%** in energy storage batteries - In H1 2025, domestic lithium battery shipments reached **776 GWh**, a **68% increase** year-on-year[32](index=32&type=chunk) - Power battery shipments reached **477 GWh**, a **49% increase** year-on-year, with lithium iron phosphate batteries accounting for **78%**[32](index=32&type=chunk) - Energy storage battery market shipments reached **265 GWh**, a significant **128% increase** year-on-year[32](index=32&type=chunk) [Automotive](index=11&type=section&id=%EF%BC%882%EF%BC%89%E6%B1%BD%E8%BD%A6) China's automotive industry is undergoing a quality transformation, with H1 production and sales exceeding **15 million units**, and new energy vehicles accounting for **44.3%** of total sales - In H1, China's automobile production and sales both surpassed **15 million units** for the first time, reaching **15.621 million** and **15.653 million units**, respectively, up **12.5%** and **11.4%** year-on-year[34](index=34&type=chunk) - New energy vehicle production and sales reached **6.968 million** and **6.937 million units**, respectively, up **41.4%** and **40.3%** year-on-year, accounting for **44.3% of total new car sales**[34](index=34&type=chunk) - Automobile exports reached **3.083 million units**, a **10.4% increase** year-on-year[34](index=34&type=chunk) - In H1 2025, domestic lithium battery shipments reached **776 GWh**, a **68% increase** year-on-year[32](index=32&type=chunk) - In H1, China's automobile production and sales both surpassed **15 million units** for the first time, with new energy vehicle production and sales reaching **6.968 million** and **6.937 million units**, respectively, up **41.4%** and **40.3%** year-on-year[34](index=34&type=chunk) - New energy vehicle sales accounted for **44.3% of total new car sales**[34](index=34&type=chunk) - The global semiconductor storage industry exhibits three major characteristics: "AI-driven, price differentiation, and accelerated domestic substitution"[28](index=28&type=chunk) - In H1 2025, domestic lithium battery shipments reached **776 GWh**, a **68% increase** year-on-year, with power battery shipments reaching **477 GWh** (up **49%**) and energy storage battery shipments reaching **265 GWh** (up **128%**)[32](index=32&type=chunk) - In H1, China's automobile production and sales both surpassed **15 million units** for the first time, with new energy vehicle production and sales reaching **6.968 million** and **6.937 million units**, respectively, up **41.4%** and **40.3%** year-on-year, and new energy vehicle sales accounting for **44.3% of total new car sales**[34](index=34&type=chunk) [Principal Businesses and Operating Results](index=12&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E5%8F%8A%E7%BB%8F%E8%90%A5%E6%88%90%E6%9E%9C) In H1 2025, the company's operating revenue reached **659.22 million yuan**, up **18.46%**, primarily driven by a **40.77%** increase in semiconductor memory business revenue, which now accounts for **92.16%** of total revenue [Semiconductor Memory Chip Xinchuang and AI Integration: Deepening Domestic Certification and Smart Scene Implementation](index=12&type=section&id=1%E3%80%81%E5%8D%8A%E5%AF%BC%E4%BD%93%E5%AD%98%E5%82%A8%E8%8A%AF%E7%89%87%E4%BF%A1%E5%88%9B%E4%B8%8E%20AI%20%E8%9E%8D%E5%90%88%EF%BC%9A%E5%9B%BD%E4%BA%A7%E8%AE%A4%E8%AF%81%E6%B7%B1%E5%8C%96%E4%B8%8E%E6%99%BA%E8%83%BD%E5%9C%BA%E6%99%AF%E8%90%BD%E5%9C%B0) Dawei Innovation's semiconductor memory business generated **607.52 million yuan** in revenue, a **40.77%** increase, with stable sales of DDR3/DDR4/LPDDR4X products and active progress in LPDDR5 certification [Semiconductor Memory Business](index=12&type=section&id=%EF%BC%881%EF%BC%89%E5%8D%8A%E5%AF%BC%E4%BD%93%E5%AD%98%E5%82%A8%E4%B8%9A%E5%8A%A1) Dawei Innovation's semiconductor memory business achieved **607.52 million yuan** in revenue, a **40.77%** increase, with LPDDR4X entering the domestic operator supply chain and LPDDR5 certification progressing - Dawei Innovation's semiconductor memory business achieved operating revenue of **607.5178 million yuan**, a **40.77% increase** year-on-year[38](index=38&type=chunk) - LPDDR4X products made significant progress, entering the domestic operator supply system, with上半年出货量呈现逐月显著增长[38](index=38&type=chunk) - The company's DDR4, LPDDR4X, and LPDDR5 memory chips completed AVL certification on mainstream platforms, covering high-end industrial, domestic CPU, and AIoT key areas[39](index=39&type=chunk) [Smart Terminals](index=13&type=section&id=%EF%BC%882%EF%BC%89%E6%99%BA%E8%83%BD%E7%BB%88%E7%AB%AF) The company's smart terminal business generated **4.51 million yuan** in revenue, focusing on R&D and sales of graphics cards, communication equipment, and localized hardware, enhancing AI-driven penetration in emerging fields - During the reporting period, the company's smart terminal business achieved operating revenue of **4.5066 million yuan**[42](index=42&type=chunk) - The business further strengthened AI-driven initiatives, increasing product penetration in emerging fields such as edge computing and smart vehicles[42](index=42&type=chunk) - Dawei Innovation's semiconductor memory business achieved operating revenue of **607.5178 million yuan**, a **40.77% increase** year-on-year[38](index=38&type=chunk) - LPDDR4X products made significant progress, entering the domestic operator supply system, with monthly shipments showing significant growth in H1[38](index=38&type=chunk) - The company has obtained "Specialized, Refined, Unique, and Innovative" qualification and submitted applications for high-tech enterprise certification[39](index=39&type=chunk) [Automotive Business Overseas Innovation: Safety Braking Expert, New Energy and Overseas Markets Advancing Together](index=13&type=section&id=2.%E6%B1%BD%E8%BD%A6%E4%B8%9A%E5%8A%A1%E6%B5%B7%E5%A4%96%E4%B8%9A%E5%8A%A1%E5%88%9B%E6%96%B0%EF%BC%9A%E5%AE%89%E5%85%A8%E5%88%B6%E5%8A%A8%E4%B8%93%E5%AE%B6%EF%BC%8C%E6%96%B0%E8%83%BD%E6%BA%90%E4%B8%8E%E6%B5%B7%E5%A4%96%E5%B8%82%E5%9C%BA%E5%B9%B6%E8%BF%9B) The company's automotive division achieved **32.45 million yuan** in revenue with **4,191 units** sold, securing bulk export orders from leading OEMs in overseas markets and advancing controller localization - During the reporting period, the company's automotive division achieved operating revenue of **32.4528 million yuan**, with sales volume of **4,191 units**[43](index=43&type=chunk) - Core bus customers contributed over **60% of sales volume**; breakthroughs were made in the new energy market, achieving bulk supply[43](index=43&type=chunk) - Continuous expansion in overseas markets yielded significant results, successfully securing bulk export orders from leading OEMs[43](index=43&type=chunk) [Lithium Battery Full Industry Chain Layout: Comprehensive Resource Development and Low-Carbon Technology Breakthroughs](index=13&type=section&id=3.%E9%94%82%E7%94%B5%E5%85%A8%E4%BA%A7%E4%B8%9A%E9%93%BE%E5%B8%83%E5%B1%80%EF%BC%9A%E8%B5%84%E6%BA%90%E7%BB%BC%E5%90%88%E5%BC%80%E5%8F%91%E4%B8%8E%E4%BD%8E%E7%A2%B3%E6%8A%80%E6%9C%AF%E7%AA%81%E7%A0%B4) The company's new energy business, including the Chenzhou lithium battery project, has invested **150 million yuan**, with the Guiyang Dachongli mining area's resource reserves approved, and innovative beneficiation technology developed [Chenzhou Lithium Battery New Energy Industrial Project](index=13&type=section&id=%EF%BC%881%EF%BC%89%E6%B1%B3%E5%B7%9E%E9%94%82%E7%94%B5%E6%96%B0%E8%83%BD%E6%BA%90%E4%BA%A7%E4%B8%9A%E9%A1%B9%E7%9B%AE) The Chenzhou lithium battery project has invested **150 million yuan**, with the Guiyang Dachongli mining area's resource reserves approved, including **323,700 tons of associated lithium (Li2O)**, and innovative beneficiation technology developed - As of the end of the reporting period, Dawei Shares' Chenzhou Lithium Battery New Energy Industrial Project had accumulated an investment of approximately **150.241 million yuan**[47](index=47&type=chunk) - The Guiyang Dachongli mining area's main mineral resources include: **209.533 million tons of feldspar** and **323,700 tons of associated lithium (Li2O)**[49](index=49&type=chunk) - The company achieved significant breakthroughs in beneficiation technology research and development, innovating a combined beneficiation process primarily using "magnetic separation + flotation" with "gravity separation" as auxiliary[50](index=50&type=chunk) [Lithium Carbonate Business](index=14&type=section&id=%EF%BC%882%EF%BC%89%E7%A2%B3%E9%85%B8%E9%94%82%E4%B8%9A%E5%8A%A1) The company's lithium carbonate business generated **9.04 million yuan** in revenue, establishing a complete industry chain from raw material procurement to sales through dual-channel sourcing and toll processing - During the reporting period, the company's lithium carbonate business achieved operating revenue of **9.0425 million yuan**[52](index=52&type=chunk) - The company established stable raw material sources through overseas and domestic dual-channel lithium ore procurement, and stable cooperation with high-quality processing enterprises, ensuring production stability and controllable costs[52](index=52&type=chunk) - The company achieved full chain integration from "resources-processing-sales" by establishing a professional management team and adding outsourced processing bases[53](index=53&type=chunk) - As of the end of the reporting period, Dawei Shares' Chenzhou Lithium Battery New Energy Industrial Project had accumulated an investment of approximately **150.241 million yuan**[47](index=47&type=chunk) - The Guiyang Dachongli mining area's resource reserves reached the standard for large-scale deposits, with **323,700 tons of associated lithium (Li2O)**[49](index=49&type=chunk) - The company achieved significant breakthroughs in beneficiation technology research and development, innovating a combined beneficiation process primarily using "magnetic separation + flotation" with "gravity separation" as auxiliary[50](index=50&type=chunk) - During the reporting period, the company's main businesses were "semiconductor memory + smart terminals" and "new energy + automotive"[26](index=26&type=chunk) - In H1 2025, the company achieved operating revenue of **659.2167 million yuan**, a **18.46% increase** year-on-year[37](index=37&type=chunk) - Semiconductor memory business achieved operating revenue of **607.5178 million yuan**, a **40.77% increase** year-on-year, with its proportion of total company revenue rising to **92.16%**[37](index=37&type=chunk) [Main Business Models](index=15&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company's semiconductor memory business focuses on design and sales with outsourced manufacturing, while smart terminals emphasize R&D and sales, and new energy involves lithium battery project investment and toll processing [Semiconductor Memory + Smart Terminal Business Model](index=15&type=section&id=1.%E5%8D%8A%E5%AF%BC%E4%BD%93%E5%AD%98%E5%82%A8%2B%E6%99%BA%E8%83%BD%E7%BB%88%E7%AB%AF%E4%B8%9A%E5%8A%A1%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The semiconductor memory business primarily involves solution design and product sales with outsourced manufacturing, utilizing diverse procurement channels and both channel and direct sales models - The company's semiconductor memory business primarily focuses on storage product solution design and product sales, with packaging and SMT manufacturing outsourced[54](index=54&type=chunk) - Dawei Innovation primarily adopts two sales methods: channel sales and industry sales[55](index=55&type=chunk) - The company's smart terminal business mainly focuses on communication equipment accessories, computers, and other electronic equipment, with trade products not involving manufacturing and proprietary products primarily relying on outsourced production[56](index=56&type=chunk) [New Energy + Automotive Business Model](index=15&type=section&id=2.%E6%96%B0%E8%83%BD%E6%BA%90%2B%E6%B1%BD%E8%BD%A6%E4%B8%9A%E5%8A%A1%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The new energy business centers on the Chenzhou lithium battery project investment and lithium carbonate toll processing, while the automotive business uses a build-to-order procurement and make-to-order production model, primarily direct sales to OEMs - The company's new energy business primarily involves the investment and construction of Dawei Shares' Chenzhou Lithium Battery New Energy Industrial Project, as well as lithium carbonate toll processing and trading[57](index=57&type=chunk) - The automotive retarder business adopts a build-to-order procurement model, with raw materials significantly affected by price fluctuations of copper, plastics, and aluminum[58](index=58&type=chunk) - The automotive business primarily uses a direct sales model, mainly targeting vehicle manufacturers or OEMs[59](index=59&type=chunk) - The company's semiconductor memory business primarily focuses on storage product solution design and product sales, with packaging and SMT manufacturing outsourced[54](index=54&type=chunk) - The company's new energy business primarily involves the investment and construction of Dawei Shares' Chenzhou Lithium Battery New Energy Industrial Project, as well as lithium carbonate toll processing and trading[57](index=57&type=chunk) - The automotive retarder business primarily adopts a make-to-order production model, with direct sales mainly targeting vehicle manufacturers or OEMs[59](index=59&type=chunk) [Analysis of Core Competencies](index=16&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) Dawei Shares builds comprehensive competitiveness across semiconductor memory, automotive components, and new energy lithium battery sectors through technological innovation, supply chain integration, and market expansion [Technological Advantages: Multi-Domain Collaborative Innovation and Core Technology Barrier Construction](index=16&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E6%8A%80%E6%9C%AF%E4%BC%98%E5%8A%BF%EF%BC%9A%E5%A4%9A%E9%A2%86%E5%9F%9F%E5%8D%8F%E5%90%8C%E5%88%9B%E6%96%B0%E4%B8%8E%E6%A0%B8%E5%BF%83%E6%8A%80%E6%9C%AF%E5%A3%81%E5%9E%92%E6%9E%84%E5%BB%BA) The company possesses deep technical expertise in semiconductor memory with **68 patents**, automotive retarders with **42 patents**, and lithium battery comprehensive utilization with **48 patents**, forming an integrated innovation system - As of now, the company holds **68 patents** in storage chips, **42 computer software copyrights**, and **8 integrated circuit layout designs**[61](index=61&type=chunk) - The company is one of China's earliest high-tech enterprises integrating R&D, production, and sales of automotive retarders, possessing independent intellectual property rights[62](index=62&type=chunk) - The Chenzhou lithium battery project has accumulated **48 patent applications**, with **23 granted**, gradually establishing the company's technological advantages in the lithium battery new energy sector through proprietary technologies[64](index=64&type=chunk) [Supply Chain Advantages: Full Industry Chain Integration and Value Creation](index=17&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E4%BA%A7%E4%B8%9A%E9%93%BE%E4%BC%98%E5%8A%BF%EF%BC%9A%E5%85%A8%E4%BA%A7%E4%B8%9A%E9%93%BE%E6%95%B4%E5%90%88%E4%B8%8E%E4%BB%B7%E5%80%BC%E5%88%9B%E9%80%A0) The company integrates its semiconductor memory supply chain from upstream resource assurance to downstream customer binding, achieves autonomous control of core components in automotive retarders, and strategically develops the lithium battery full industry chain - Dawei Innovation builds a supply chain encompassing upstream resource assurance, downstream customer binding, and ecosystem co-construction[65](index=65&type=chunk) - In the automotive sector, the company achieved autonomous control over core components of eddy current retarders, establishing its own eddy current rotor production line and increasing the self-sufficiency rate of key processes to an industry-leading level[66](index=66&type=chunk) - New energy lithium battery business focuses on lithium ore mining, beneficiation, and smelting, while collaborating with leading domestic and international enterprises to establish a full lithium battery industry chain[67](index=67&type=chunk) [Policy Dividend Conversion Advantage: Strategic Project Implementation and Compliance Competitiveness](index=17&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E6%94%BF%E7%AD%96%E7%BA%A2%E5%88%A9%E8%BD%AC%E5%8C%96%E4%BC%98%E5%8A%BF%EF%BC%9A%E6%88%98%E7%95%A5%E7%BA%A7%E9%A1%B9%E7%9B%AE%E8%90%BD%E5%9C%B0%E4%B8%8E%E5%90%88%E8%A7%84%E7%AB%9E%E4%BA%89%E5%8A%9B) The company effectively converts national strategic policies into project implementation speed and compliance advantages, leveraging policy dividends for sales growth in semiconductor memory and automotive, and securing government support for lithium battery projects - The company closely monitors changes in industrial policies, allocates resources timely, actively promotes certification on Xinchuang platforms like Loongson and Phytium, and increases sales of Xinchuang products, converting policy dividends into sales performance[68](index=68&type=chunk) - The company seized national policy dividends encouraging consumption and exports, accelerating product iteration to achieve sales revenue and profit growth in the automotive sector[68](index=68&type=chunk) - The Chenzhou lithium battery project received deep empowerment from government resources, obtaining a green channel for mining rights processing, which is expected to shorten the exploration-to-mining approval cycle[68](index=68&type=chunk) [Market and Customer Ecosystem: Leading with Key Accounts and Emerging Sector Layout](index=18&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E5%B8%82%E5%9C%BA%E4%B8%8E%E5%AE%A2%E6%88%B7%E7%94%9F%E6%80%81%EF%BC%9A%E5%A4%B4%E9%83%A8%E5%BC%95%E9%A2%86%E4%B8%8E%E6%96%B0%E5%85%B4%E8%B5%9B%E9%81%93%E5%B8%83%E5%B1%80) The company employs a differentiated market strategy, combining deep engagement with top-tier clients, flexible penetration of long-tail markets, and proactive expansion into emerging sectors like AI edge computing and solid-state batteries - The top five customers in the semiconductor memory business contribute over **70% of revenue**; in the automotive business, the top five customers account for over **90% of revenue**[70](index=70&type=chunk) - The semiconductor memory business enhances product compatibility and adaptability in various operating environments (e.g., industrial control, AIoT scenarios) by providing customized testing services[70](index=70&type=chunk) - In emerging fields, new storage products are continuously being adapted for high-end SoC platforms like AI edge computing, while the lithium battery business tracks solid-state battery demand and hedges price risks with lithium carbonate futures[71](index=71&type=chunk) [Product Matrix Improvement Advantage: Continuous Optimization of Product Structure](index=18&type=section&id=%EF%BC%88%E4%BA%94%EF%BC%89%E4%BA%A7%E5%93%81%E7%9F%A9%E9%98%B5%E5%AE%8C%E5%96%84%E4%BC%98%E5%8A%BF%EF%BC%9A%E6%8C%81%E7%BB%AD%E4%BC%98%E5%8C%96%E4%BA%A7%E5%93%81%E7%BB%93%E6%9E%84) The company's product matrix covers a wide range of DRAM and NAND Flash products for diverse applications, with automotive retarders adapted for new energy vehicles and special vehicles, and lithium battery materials offering seven core product categories - Currently covers DDR3, DDR4, LPDDR4X commercial/wide-temperature grade, DDR5 DRAM products, as well as eMMC, BGA NAND Flash, and other Nand Flash products[72](index=72&type=chunk) - In the new energy vehicle sector, eddy current retarders have been successfully adapted for new energy buses; breakthroughs have also been made in special vehicle markets such as mining trucks[72](index=72&type=chunk) - The company's mining resources can develop seven major core product systems, including high-purity quartz sand for photovoltaic glass and battery-grade lithium concentrate[72](index=72&type=chunk) - The company's core team possesses over **20 years of industry experience**, and the company is recognized as a Shenzhen "Specialized, Refined, Unique, and Innovative" SME and an innovative SME[60](index=60&type=chunk) - The company has accumulated **47 invention patents**, **69 utility model patents**, **14 design patents**, **131 software copyrights**, **8 integrated circuit layout designs**, and **110 trademarks**[60](index=60&type=chunk) - During the reporting period, the company filed **52 new patent applications**, with **9 invention patents granted**[60](index=60&type=chunk) [Analysis of Principal Business](index=18&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) In H1 2025, the company's operating revenue increased by **18.46% to 659.22 million yuan**, primarily due to the expansion of its semiconductor memory business, while R&D investment decreased by **46.56%** Year-on-Year Changes in Key Financial Data | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 659,216,741.99 | 556,481,583.84 | 18.46% | Mainly due to the expansion of semiconductor memory business | | Operating Cost | 638,896,563.38 | 532,090,010.51 | 20.07% | Mainly due to the expansion of semiconductor memory business | | Selling Expenses | 4,665,299.27 | 5,256,627.82 | -11.25% | Mainly due to continuous refined management, optimizing expenditure structure, and improving resource utilization efficiency | | Administrative Expenses | 15,419,746.41 | 21,961,423.72 | -29.79% | Mainly due to continuous refined management, optimizing expenditure structure, and improving resource utilization efficiency | | Financial Expenses | 50,833.44 | -800,590.80 | 106.35% | Mainly due to reduced interest income from lower interest rates | | R&D Investment | 3,448,322.04 | 6,453,251.62 | -46.56% | Mainly due to phased adjustment of some R&D project schedules | | Net Cash Flow from Operating Activities | -65,954,478.52 | -44,432,607.62 | -48.44% | Mainly due to customer prepayments being delivered in this period | - There were no significant changes in the company's profit composition or sources of profit during the reporting period[76](index=76&type=chunk) Operating Revenue Composition (by Industry) | Industry Segment | Current Period Amount (Yuan) | Proportion of Operating Revenue | Prior Year Period Amount (Yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Semiconductor Memory | 607,517,829.16 | 92.16% | 431,563,586.61 | 77.55% | 40.77% | | Smart Terminals | 4,506,553.29 | 0.68% | 32,749,359.39 | 5.89% | -86.24% | | New Energy | 9,042,476.65 | 1.37% | 53,631,514.95 | 9.64% | -83.14% | | Automotive Manufacturing | 32,452,804.38 | 4.92% | 32,094,680.13 | 5.77% | 1.12% | [Analysis of Non-Principal Businesses](index=20&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Non-principal businesses negatively impacted total profit, primarily from investment income (**-3.0774 million yuan**) and fair value changes (**-2.2254 million yuan**), both related to financial instruments in new energy materials Non-Principal Business Analysis | Item | Amount (Yuan) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -3,077,417.36 | 27.25% | Mainly due to the company's application of financial instruments in new energy materials business | No | | Gains/Losses from Changes in Fair Value | -2,225,432.45 | 19.70% | Mainly due to the company's application of financial instruments in new energy materials business | No | | Asset Impairment | -682,927.82 | 6.05% | Mainly due to inventory depreciation provision in this period | No | | Credit Impairment Losses | -1,838,247.03 | 16.28% | Mainly due to provision for bad debts on other receivables in this period | No | [Analysis of Assets and Liabilities](index=21&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, total assets were **709 million yuan**, a **9.13%** decrease from the previous year-end, with significant changes in monetary funds, contract liabilities, and short-term borrowings Significant Changes in Asset Composition | Item | Amount at End of Current Period (Yuan) | Proportion of Total Assets | Amount at End of Prior Year (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 226,680,726.38 | 31.97% | 312,690,296.66 | 40.07% | -8.10% | Mainly due to increased working capital occupation and current period dividends | | Short-Term Borrowings | 56,000,000.00 | 7.90% | 32,000,000.00 | 4.10% | 3.80% | No significant change | | Contract Liabilities | 1,159,104.14 | 0.16% | 45,740,834.48 | 5.86% | -5.70% | Mainly due to customer prepayments being delivered within the reporting period | | Non-Current Liabilities Due Within One Year | 2,416,222.91 | 0.34% | 27,295,721.78 | 3.50% | -3.16% | Mainly due to repayment of matured liabilities during the reporting period | Major Overseas Assets | Specific Asset Content | Asset Size (Yuan) | Location | Proportion of Overseas Assets to Company's Net Assets | | :--- | :--- | :--- | :--- | | Dawei Innovation (Hong Kong) Co., Ltd. | 32,963,014.28 | Hong Kong | 5.92% | | Xinhui Group Technology Hong Kong Co., Ltd. | 104,344,787.95 | Hong Kong | 18.75% | Asset Rights Restricted as of End of Reporting Period | Item | Book Balance at Period End (Yuan) | Book Value at Period End (Yuan) | Type of Restriction | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 6,160,799.01 | 6,160,799.01 | Pledge | Issuance of bank acceptance bills | | Notes Receivable | 5,466,600.00 | 5,466,600.00 | Pledge | Bank pledged notes | | Investment Properties | 57,364,955.30 | 33,928,432.87 | Mortgage | Mortgage loan | | Fixed Assets | 11,481,237.08 | 6,767,870.36 | Mortgage | Mortgage loan | | Total | 80,473,591.39 | 52,323,702.24 | | | [Analysis of Investment Status](index=22&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Total investment for the reporting period was **991,000 yuan**, a significant **98.19%** decrease year-on-year, with the Chenzhou lithium battery project being the main ongoing non-equity investment Investment Amount for the Reporting Period | Investment Amount for Reporting Period (Yuan) | Investment Amount for Prior Year Period (Yuan) | Change Rate | | :--- | :--- | :--- | | 991,000.00 | 54,650,000.00 | -98.19% | Significant Non-Equity Investments in Progress During the Reporting Period | Project Name | Investment Method | Fixed Asset Investment | Industry Involved | Amount Invested in Current Period (Yuan) | Cumulative Actual Investment at End of Reporting Period (Yuan) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dawei Shares Chenzhou Lithium Battery New Energy Industrial Project | Other | Yes | Lithium Battery Industry, New Energy Vehicle Industry | 991,000.00 | 150,241,000.00 | Own Funds | Derivative Investments for Hedging Purposes | Derivative Investment Type | Amount at Period End (10,000 Yuan) | Proportion of Investment Amount to Company's Net Assets at End of Reporting Period | | :--- | :--- | :--- | | Commodity Futures Contracts | 3.25 | 0.01% | - The effective hedging gain for the reporting period was **276,200 yuan**[96](index=96&type=chunk) [Significant Asset and Equity Sales](index=25&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) During the reporting period, the company did not engage in any significant asset or equity sales - The company did not sell significant assets during the reporting period[100](index=100&type=chunk) - The company did not engage in significant equity sales during the reporting period[101](index=101&type=chunk) [Analysis of Major Holding and Participating Companies](index=25&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Key subsidiaries include Dawei Innovation (semiconductor memory, net profit **3.7558 million yuan**), Guiyang Dawei Technology (lithium mining, net loss **4.7657 million yuan**), and Xinhui Group Technology Hong Kong (overseas electronics, net profit **1.9685 million yuan**) Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Principal Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dawei Innovation | Subsidiary | Design, R&D, and sales of storage chips | 30,000,000.00 | 152,621,850.21 | 48,313,718.67 | 607,469,192.39 | 4,154,720.78 | 3,755,831.94 | | Teerjia Information | Subsidiary | Software development and sales, domestic commerce, material supply | 20,000,000.00 | 20,190,253.72 | 12,350,926.50 | 5,577,225.48 | 969,820.31 | 953,816.09 | | Guiyang Dawei Technology | Subsidiary | Lithium ore mining, beneficiation, smelting, and new energy technology development and utilization | 100,000,000.00 | 225,049,189.15 | 73,215,397.37 | 3,235,472.56 | -4,765,535.71 | -4,765,708.14 | - Acquisition and disposal of subsidiaries during the reporting period: The company had no acquisition or disposal of subsidiaries during the reporting period[103](index=103&type=chunk) - Xinhui Group Technology Hong Kong Co., Ltd. had operating revenue of **473.2493 million yuan** and net profit of **1.9685 million yuan** from January to June 2025[103](index=103&type=chunk) [Information on Structured Entities Controlled by the Company](index=26&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) During the reporting period, the company did not control any structured entities - The company had no controlled structured entities during the reporting period[105](index=105&type=chunk) [Risks Faced by the Company and Countermeasures](index=26&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces risks including rapid technological iteration, market competition, talent loss, supply chain volatility, and policy changes across its semiconductor memory, smart terminal, new energy, and automotive businesses [Semiconductor Memory + Smart Terminal Business](index=26&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%8D%8A%E5%AF%BC%E4%BD%93%E5%AD%98%E5%82%A8%2B%E6%99%BA%E8%83%BD%E7%BB%88%E7%AB%AF%E4%B8%9A%E5%8A%A1) The semiconductor memory business faces risks from rapid technological iteration, intense market competition, talent loss, and supply chain concentration, while smart terminals contend with fast tech updates and component supply limitations - Dawei Innovation's storage industry faces rapid technological iteration and product updates, with inherent uncertainties in technological innovation[105](index=105&type=chunk) - The smart terminal business faces challenges from rapid technological iteration in mobile communication, hardware manufacturing, and information services[109](index=109&type=chunk) - The supply of some core raw materials and components for smart terminals is limited; significant operational changes by key component suppliers or adverse changes in the foreign trade environment could lead to insufficient supply or significant price fluctuations[109](index=109&type=chunk) [New Energy + Automotive Business](index=27&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E6%96%B0%E8%83%BD%E6%BA%90%2B%E6%B1%BD%E8%BD%A6%E4%B8%9A%E5%8A%A1) The new energy business faces risks from evolving storage technologies, investment uncertainties, market volatility, and policy changes, while the automotive business contends with technology imitation, product structure limitations, and raw material price fluctuations - Energy storage technology is rapidly iterating; while lithium-ion battery technology continues to optimize, emerging technologies like solid-state batteries and sodium-ion batteries are also accelerating[111](index=111&type=chunk) - The Dawei Shares Chenzhou Lithium Battery New Energy Industrial Project involves joint investment with proposed partners, and the final cooperation plan remains uncertain[111](index=111&type=chunk) - The retarder market is mature and highly competitive; the company's traditional automotive business primarily offers eddy current retarders, leading to a relatively singular product structure that reduces the automotive division's ability to withstand industry changes[114](index=114&type=chunk) - The semiconductor memory business faces risks of technological iteration, intensified market competition, loss of key technical personnel, raw material supply and price fluctuations, macroeconomic volatility, and industry policy changes[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - The smart terminal business faces risks of technological iteration, market competition, supply chain issues, and macroeconomic and policy impacts[109](index=109&type=chunk)[110](index=110&type=chunk) - The new energy business faces risks of technological iteration, investment cooperation uncertainties, market volatility, approval delays, and policy changes[111](index=111&type=chunk)[112](index=112&type=chunk) - The automotive business faces risks of technological iteration, market volatility, operational challenges, and policy changes[113](index=113&type=chunk)[114](index=114&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=28&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - Has the company formulated a market value management system? □Yes ☑No[115](index=115&type=chunk) - Has the company disclosed a valuation enhancement plan? □Yes ☑No[115](index=115&type=chunk) [Implementation of "Quality and Return Dual Enhancement" Action Plan](index=28&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E2%80%9C%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%E2%80%9D%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan during the reporting period - Has the company disclosed an announcement regarding the "Quality and Return Dual Enhancement" action plan? □Yes ☑No[115](index=115&type=chunk) [Corporate Governance, Environment, and Society](index=29&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) This section details changes in the company's governance, profit distribution, employee incentives, environmental disclosures, and social responsibility initiatives [Changes in Directors, Supervisors, and Senior Management](index=29&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, there were no changes in the company's directors, supervisors, or senior management, as detailed in the 2024 annual report - There were no changes in the company's directors, supervisors, and senior management during the reporting period, as detailed in the 2024 annual report[117](index=117&type=chunk) [Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period](index=29&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[118](index=118&type=chunk) [Implementation of Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures](index=29&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company implemented a stock option and restricted stock incentive plan in 2023, with subsequent grants, repurchases of restricted stock from a departing employee, and achievement of conditions for the first vesting/exercise period - The company implemented a stock option and restricted stock incentive plan in 2023[119](index=119&type=chunk) - **595,100 stock options** were granted to 13 eligible incentive recipients at an exercise price of **12.43 yuan/share**; **1,082,200 restricted shares** were granted to 13 eligible incentive recipients at a grant price of **7.77 yuan/share**[121](index=121&type=chunk) - The company's board of directors set November 21, 2023, as the reserved grant/award date, granting **154,900 stock options** to 4 eligible incentive recipients and **167,800 restricted shares** to 5 eligible incentive recipients[122](index=122&type=chunk) - Approved the repurchase and cancellation of **61,000 restricted shares** granted but not yet vested to 1 departing incentive recipient[125](index=125&type=chunk) [Environmental Information Disclosure](index=30&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - Are the listed company and its major subsidiaries included in the list of enterprises required to disclose environmental information by law? □Yes ☑No[126](index=126&type=chunk) [Social Responsibility](index=30&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company is committed to protecting shareholder rights, respecting employee welfare, contributing to national and local economies, and actively participating in social welfare activities, including a **100,000 yuan** donation to Guiyang County Charity Federation - The company continuously improves its governance structure, standardizes operations, strengthens information disclosure and investor relations management, fully safeguarding the legitimate rights and interests of all shareholders[126](index=126&type=chunk) - The company respects and protects employee rights, strictly implements various laws and regulations such as the "Labor Contract Law" and "Social Insurance Law," and has established a scientific compensation and benefits system[127](index=127&type=chunk) - In June 2025, the company made a targeted donation of **100,000 yuan** to the Guiyang County Charity Federation[128](index=128&type=chunk) - The company consistently adheres to integrity and quality, insists on the principle of win-win cooperation, and fully respects the legitimate rights and interests of suppliers, customers, creditors, and other stakeholders in economic activities[129](index=129&type=chunk) [Significant Events](index=32&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section covers commitments, related party transactions, guarantees, accounting firm appointments, litigation, penalties, and other significant events during the reporting period [Commitments Fulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company, and Commitments Overdue and Unfulfilled as of the End of the Reporting Period](index=32&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) During the reporting period, there were no commitments fulfilled or overdue and unfulfilled by the company's actual controller, shareholders, related parties, acquirers, or the company - Applicable ☑Not Applicable[131](index=131&type=chunk) [Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties from the Listed Company](index=32&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) During the reporting period, there were no non-operating funds occupied by controlling shareholders or other related parties from the listed company - The company had no non-operating funds occupied by controlling shareholders or other related parties during the reporting period[131](index=131&type=chunk) [Illegal External Guarantees](index=32&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) During the reporting period, the company had no illegal external guarantees - The company had no illegal external guarantees during the reporting period[132](index=132&type=chunk) [Appointment and Dismissal of Accounting Firms](index=32&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[133](index=133&type=chunk) [Board of Directors' and Supervisory Board's Explanations on the Accounting Firm's "Non-Standard Audit Report" for This Reporting Period](index=32&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9A%84%E8%AF%B4%E6%98%8E) The company's Board of Directors and Supervisory Board have no explanations regarding a "non-standard audit report" from the accounting firm for this reporting period - □Applicable ☑Not Applicable[134](index=134&type=chunk) [Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year](index=32&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The company's Board of Directors has no explanations regarding a "non-standard audit report" for the previous year - □Applicable ☑Not Applicable[134](index=134&type=chunk) [Bankruptcy and Reorganization Related Matters](index=32&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) During the reporting period, the company did not experience any bankruptcy or reorganization related matters - The company did not experience any bankruptcy or reorganization related matters during the reporting period[134](index=134&type=chunk) [Litigation Matters](index=32&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) During the reporting period, the company had no significant litigation or arbitration matters, with other litigation and arbitration cases totaling approximately **4.9021 million yuan** - The company had no significant litigation or arbitration matters during this reporting period[135](index=135&type=chunk) - During the reporting period, the total amount involved in litigation and arbitration cases concerning the company and its subsidiaries was approximately **4.9021 million yuan**[136](index=136&type=chunk) [Penalties and Rectification](index=33&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) During the reporting period, the company had no penalties or rectification situations - The company had no penalties or rectification situations during the reporting period[137](index=137&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=33&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) The company, its controlling shareholder, and actual controller maintain a good integrity status, with no inapplicable situations - □Applicable ☑Not Applicable[138](index=138&type=chunk) [Significant Related Party Transactions](index=33&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) During the reporting period, the company had no significant related party transactions, including those related to daily operations, asset/equity acquisitions or sales, joint external investments, or related party creditor/debtor relationships - The company had no related party transactions related to daily operations during the reporting period[138](index=138&type=chunk) - The company had no related party transactions involving asset or equity acquisition/disposal during the reporting period[139](index=139&type=chunk) - The company had no related party creditor-debtor relationships during the reporting period[141](index=141&type=chunk) [Significant Contracts and Their Performance](index=34&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company had no trust or contracting arrangements. It leased out idle factory premises and dormitories, generating **1.4224 million yuan** in rental income from Shenzhen Zhongke Guanlan Times Apartment Management Co., Ltd., significantly impacting total profit - The company had no trust arrangements during the reporting period[145](index=145&type=chunk) - During the reporting period, the company leased out some idle factory premises and dormitories to other companies, generating rental income[147](index=147&type=chunk) Leasing Projects Where Income Reached Over 10% of the Company's Total Profit for the Reporting Period | Lessor Name | Lessee Name | Leased Asset Description | Amount Involved in Leased Asset (10,000 Yuan) | Lease Start Date | Lease End Date | Rental Income (10,000 Yuan) | Impact of Rental Income on Company | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shenzhen Dawei Innovation Technology Co., Ltd. | Shenzhen Zhongke Guanlan Times Apartment Management Co., Ltd. | Part of idle premises | 1,187.75 | September 23, 2024 | September 22, 2039 | 142.24 | 142.24 | Company's Guarantees for Subsidiaries | Guaranteed Party Name | Guarantee Limit (10,000 Yuan) | Actual Guarantee Amount (10,000 Yuan) | Guarantee Type | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Dawei Innovation | 1,000 | 50 | Joint and several liability guarantee | 2025-6-29 to 2026-3-5 | No | | Dawei Innovation | 1,000 | 100 | Joint and several liability guarantee | 2024-11-29 to 2025-11-28 | No | | Dawei Innovation | 1,000 | 900 | Joint and several liability guarantee | 2024-12-24 to 2025-12-23 | No | | Xinhui Group Technology | 1,000 | 100 | Joint and several liability guarantee | 2024-11-29 to 2025-11-28 | No | | Xinhui Group Technology | 1,000 | 900 | Joint and several liability guarantee | 2024-12-24 to 2025-12-23 | No | | Total Actual Guarantee Balance for Subsidiaries at Period End | | 3,300 | | | | | Proportion of Total Actual Guarantee to Company's Net Assets | | 5.98% | | | | - The company had no entrusted wealth management during the reporting period[152](index=152&type=chunk) - The company had no other significant contracts during the reporting period[153](index=153&type=chunk) [Explanation of Other Significant Matters](index=36&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) During the reporting period, the company disclosed numerous temporary announcements concerning stock trading anomalies, subsidiary capital increases, performance forecasts, asset mortgages, impairment provisions, patent acquisitions, profit distribution, accounting policy changes, foreign exchange hedging, financing authorizations, restricted stock repurchases, idle factory rentals, equity incentive vesting/exercise, stock option price adjustments, subsidiary guarantee limits, registered capital changes, and the approval of resource reserves for the Guiyang Dachongli mining area - The company disclosed announcements regarding abnormal stock trading fluctuations, progress on capital increase for its wholly-owned subsidiary Guiyang Dawei Mining Co., Ltd., and the 2024 annual performance forecast[154](index=154&type=chunk) - The company disclosed announcements regarding the provision for asset impairment in 2024, wholly-owned subsidiaries obtaining invention patents, utility model patents, and design patents, the 2024 annual profit distribution plan, and changes in accounting policies[154](index=154&type=chunk) - The company disclosed announcements regarding conducting foreign exchange hedging business, requesting the general meeting of shareholders to authorize the board of directors to handle small and fast financing matters, repurchasing and canceling some restricted shares, conducting commodity futures and options hedging business, changing registered capital and amending the "Articles of Association," leasing idle factory premises, the achievement of exercise conditions for the first exercise period of the 2023 stock option and restricted stock incentive plan's reserved grant, conducting foreign exchange derivative transactions, adjusting stock option exercise prices, estimating guarantee limits for subsidiaries, and the achievement of vesting conditions for the first vesting period of the 2023 stock option and restricted stock incentive plan's reserved grant of restricted shares[155](index=155&type=chunk) - The company disclosed an announcement regarding the approval of mineral resource reserves in the "Exploration Report of Feldspar Mine in Dachongli Mining Area, Guiyang County, Hunan Province" for its wholly-owned subsidiary[155](index=155&type=chunk) [Significant Matters of Company Subsidiaries](index=38&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) Significant matters concerning the company's subsidiaries have been disclosed in "XIII. Explanation of Other Significant Matters" - Refer to the relevant announcements regarding subsidiaries in "XIII. Explanation of Other Significant Matters" in this section[156](index=156&type=chunk) [Share Changes and Shareholder Information](index=39&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details changes in the company's share capital, securities issuance, shareholder numbers, and holdings of directors, supervisors, and senior management [Share Change Information](index=39&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's total share capital increased from **237.18 million shares to 237.40 million shares**, primarily due to the vesting of reserved restricted shares and the exercise of stock options Share Change Information | | Number Before Change (Shares) | Proportion Before Change | Net Increase/Decrease in This Change (Shares) | Number After Change (Shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 31,160,136 | 13.14% | -53,400 | 31,106,736 | 13.10% | | II. Unrestricted Shares | 206,020,804 | 86.86% | 271,290 | 206,292,094 | 86.90% | | III. Total Shares | 237,180,940 | 100.00% | 217,890 | 237,398,830 | 100.00% | - The company's reserved restricted shares under this incentive plan achieved the conditions for the first vesting period, resulting in a decrease of **53,400 restricted shares** and an increase of **53,400 unrestricted tradable shares**[160](index=160&type=chunk) - The company's initially granted stock options under this incentive plan achieved the conditions for the first exercise period, resulting in an increase of **140,440 unrestricted shares** and a total share capital increase of **140,440 shares**[161](index=161&type=chunk) - The company's reserved granted stock options under this incentive plan achieved the conditions for the first exercise period, resulting in an increase of **77,450 unrestricted shares** and a total share capital increase of **77,450 shares**[162](index=162&type=chunk) [Securities Issuance and Listing](index=42&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) During the reporting period, the company had no securities issuance or listing activities - □Applicable ☑Not Applicable[168](index=168&type=chunk) [Number of Shareholders and Shareholding Information](index=

安福县海能实业股份有限公司 2025 年半年度报告全文 2025 年 8 月 1 安福县海能实业股份有限公司 2025 年半年度报告 2025-070 安福县海能实业股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容 的真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担 个别和连带的法律责任。 公司负责人周洪亮、主管会计工作负责人邱添明及会计机构负责人(会计 主管人员)陈锋声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 本报告中如有涉及未来的计划、业绩预测等方面的内容，均不构成本公 司对投资者的实质性承诺；投资者及相关人士均应当对此保持足够的风险认 识，并应当理解计划、预测与承诺之间的差异。 公司在经营中可能面对的风险已在本报告"第三节管理层讨论与分析" 之"十、公司面临的风险和应对措施"进行详细描述，敬请投资者予以关注。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | 第一节 重要提示、目录和释义 2 | | --- | | 第二节 公司简介 ...

株洲飞鹿高新材料技术股份有限公司 2025 年半年度报告 株洲飞鹿高新材料技术股份有限公司 2025 年半年度报告全文 【2025 年 8 月】 1 株洲飞鹿高新材料技术股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、董事、高级管理人员保证半年度报告内容的真实、准确、 完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法 律责任。 公司负责人章健嘉、主管会计工作负责人韩驭安及会计机构负责人（会 计主管人员）张燕声明：保证本半年度报告中财务报告的真实、准确、完 整。 所有董事均已出席了审议本次半年报的董事会会议。 本半年度报告中涉及未来计划等前瞻性陈述的，均不构成公司对投资者的 实质承诺，投资者及相关人士均应对此保持足够的风险认识，并且应当理解 计划、预测与承诺之间的差异，敬请投资者注意投资风险。 本公司请投资者认真阅读本报告，公司在本报告"第三节、管理层讨论与 分析"中"十、公司面临的风险和应对措施"部分，描述了公司未来经营可 能面临的主要风险，敬请广大投资者注意风险。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | | | | 第一节 | 重 ...

[Definitions](index=4&type=section&id=Item%20I%20Definitions) [Company Profile and Key Financial Indicators](index=5&type=section&id=Item%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) [Key Accounting Data and Financial Indicators](index=6&type=section&id=VI.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company achieved steady performance growth with operating revenue up **12.88%** and net profit attributable to shareholders up **31.28%**, while operating cash flow significantly improved to **262 million Yuan**, primarily due to increased sales collections Key Accounting Data for H1 2025 | Key Accounting Data | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 2,329,186,348.42 | 2,063,469,454.24 | 12.88 | | Net Profit Attributable to Listed Company Shareholders (Yuan) | 258,240,054.62 | 196,709,597.18 | 31.28 | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-recurring Items) (Yuan) | 246,583,216.40 | 180,630,769.55 | 36.51 | | Net Cash Flow from Operating Activities (Yuan) | 261,925,377.10 | -181,697,980.58 | N/A | | Basic Earnings Per Share (Yuan/share) | 0.64 | 0.49 | 30.61 | | Weighted Average Return on Net Assets (%) | 7.70 | 6.48 | Increased by 1.22 percentage points | - Net profit growth was primarily driven by increased revenue from the electrical equipment business and a year-on-year reduction in impairment losses due to increased sales collections[18](index=18&type=chunk) - Net cash flow from operating activities increased by **444 million Yuan** year-on-year, mainly due to increased sales collections[19](index=19&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Item%20III%20Management%20Discussion%20and%20Analysis) [Industry and Main Business Overview](index=9&type=section&id=I.%20Overview%20of%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) The company, a national-level technology innovation enterprise, operates in quality technical services, electrical equipment, complete sets of equipment, and eco-friendly coatings and resins, with all sectors experiencing favorable market conditions driven by growing demand in smart manufacturing, new energy, and green environmental protection - The company's four major business segments include: quality technical services, electrical equipment, complete sets of equipment, and eco-friendly coatings and resins[24](index=24&type=chunk) [Quality Technical Services](index=9&type=section&id=(I)%20Quality%20Technical%20Services) This high-tech service sector, driven by downstream industry expansion, saw the domestic third-party inspection and testing industry grow to **487.6 billion Yuan** in 2024, with the company holding leading advantages in technology, brand, products, and channels amidst increasing industry consolidation - According to data from the State Administration for Market Regulation, national inspection and testing institutions achieved operating revenue of **487.6 billion Yuan** in 2024, a **4.41% year-on-year increase**, with a significant trend towards industry consolidation and enhanced economies of scale[25](index=25&type=chunk) - The company's quality technical services cover smart homes, smart cars, energy equipment, and other fields, providing **'one-stop' services** throughout the product lifecycle[27](index=27&type=chunk) [Electrical Equipment and Complete Sets of Equipment](index=10&type=section&id=(II)%20Electrical%20Equipment%20and%20Complete%20Sets%20of%20Equipment) This smart manufacturing equipment sector benefits from the green low-carbon trend, with strong demand from lithium battery, renewable energy, and hydrogen industries, as evidenced by a **60.4% increase** in China's battery output in H1 2025, while the company maintains a leading position in new energy battery post-processing systems and smart home appliance factory solutions - In H1 2025, China's cumulative output of power and other batteries reached **697.3 GWh**, a **60.4% year-on-year increase**, providing strong downstream demand for the company's electrical equipment business[30](index=30&type=chunk) - The company is a leading domestic provider of new energy battery post-processing systems and smart home appliance factory solutions, with products exported to over **30 countries and regions** along the 'Belt and Road' initiative[34](index=34&type=chunk)[35](index=35&type=chunk) [Eco-friendly Coatings and Resins](index=12&type=section&id=(III)%20Eco-friendly%20Coatings%20and%20Resins) This advanced petrochemical new materials sector is driven by environmental policies accelerating the 'paint-to-powder' and 'oil-to-water' trends, leading to increased market share for eco-friendly coatings and growth in the powder coating and polyester resin markets in H1 2025, despite intensified competition, with the company being a pioneer in eco-friendly powder coatings with deep technical expertise - The company's eco-friendly coatings and resins products, including polyester resins, powder coatings, and water-based coatings, are experiencing continuous market demand growth driven by environmental trends[37](index=37&type=chunk) - The company's annual polyester resin production ranks among the **top five domestically**, with several powder coating products holding leading technical positions in the industry[38](index=38&type=chunk) [Discussion and Analysis of Operations](index=13&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) In H1 2025, the company's overall operations showed a 'stable and improving' trend, achieving **2.33 billion Yuan** in operating revenue (+12.88%) and **258 million Yuan** in net profit attributable to shareholders (+31.28%), with strategic deployments across business segments, including significant growth in electrical equipment, and continued investment in R&D totaling **182 million Yuan** (+8.70%) leading to multiple internationally advanced technological achievements Operating Performance for H1 2025 | Indicator | Amount | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 2.33 billion Yuan | 12.88% | | Net Profit Attributable to Listed Company Shareholders | 258 million Yuan | 31.28% | | R&D Investment | 182 million Yuan | 8.70% | - The electrical equipment business performed exceptionally well, achieving substantial growth in both revenue and profit, primarily driven by the concentrated acceptance of large orders for new energy battery post-processing systems[40](index=40&type=chunk) - The complete sets of equipment business faced temporary performance pressure due to long project execution cycles, but as of the end of the reporting period, outstanding orders increased year-on-year, laying the foundation for future performance recovery[41](index=41&type=chunk) - The international standard IEC TS 63457-1:2025, led by the company, was officially released, filling a gap in international standards for household appliance recycling[43](index=43&type=chunk) [Analysis of Core Competencies](index=15&type=section&id=III.%20Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company's core competencies stem from its established corporate culture, leading R&D capabilities, prominent technical standard innovation, unique integrated service offerings, and strong brand reputation, maintaining technological leadership across its four main business areas with continued R&D investment of **182 million Yuan** in H1, an **8.70% increase** - The company's core competencies include: - A long-standing corporate culture of 'harmony, specialization, and pragmatism' - Leading technology and R&D capabilities, with multiple national-level platforms such as national key laboratories - Outstanding technical standard innovation capabilities, having led or participated in the revision of over **1,000 international, national, and industry standards** - Comprehensive service capabilities providing 'full-chain' quality improvement solutions - Strong brand recognition and industry credibility, owning sub-brands like 'CVC Wekai' and 'Qingtian'[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) R&D Investment Overview | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total R&D Investment (Yuan) | 181,726,481.71 | 167,179,449.43 | 8.70 | | R&D Investment as % of Revenue | 7.80 | 8.10 | Decreased by 0.30 percentage points | - During the reporting period, the company added **65 new intellectual property rights**, including **19 invention patents**, and led or participated in the formulation and release of **45 international, national, industry, and group standards**[55](index=55&type=chunk) [Risk Factors](index=30&type=section&id=IV.%20Risk%20Factors) The company faces significant risks including rapid technological upgrades, intellectual property protection, quality control, production safety, accounts receivable bad debts, macroeconomic and downstream industry fluctuations, overseas operations, and raw material price volatility, necessitating continuous monitoring of cutting-edge technologies and enhanced IP and quality management - Key risk factors include: - **Technological Risks**: Rapid iteration of new technologies; misjudgment or lower-than-expected market acceptance of new products could impact competitiveness - **Operational Risks**: Potential risks in quality control, production safety, accounts receivable management, and overseas operations - **Market Risks**: Downturns in the macroeconomy, fluctuations in downstream industries (e.g., new energy vehicles), and volatility in bulk raw material prices could adversely affect the company's performance[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) [Analysis of Assets and Liabilities](index=32&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) As of the reporting period end, total assets slightly increased by **0.84%** to **7.47 billion Yuan**, driven by higher prepayments and construction in progress, while non-current assets due within one year sharply decreased by **96.12%**, and short-term borrowings increased by **111.95%** due to discounted bills Major Balance Sheet Item Changes | Item Name | Current Period End Amount (Yuan) | Change from Prior Year-End (%) | Primary Reason | | :--- | :--- | :--- | :--- | | Prepayments | 260,310,185.52 | 53.30 | Increase in ongoing projects and infrastructure investment | | Non-current Assets Due Within One Year | 7,379,863.86 | -96.12 | Decrease in short-term time deposits held | | Construction in Progress | 140,350,192.03 | 44.91 | Increase in infrastructure project investment | | Other Non-current Assets | 787,267,057.28 | 42.76 | Increase in time deposits held for over one year | | Short-term Borrowings | 75,652,392.72 | 111.95 | Increase in discounted bills not derecognized | [Corporate Governance, Environment, and Society](index=40&type=section&id=Item%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) [Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel](index=40&type=section&id=I.%20Changes%20in%20Company%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Core%20Technical%20Personnel) During the reporting period, the company experienced changes in its board, supervisory board, senior management, and core technical personnel, including the departure and election of independent directors, the resignation of the former General Manager Mr. Chen Lixin and appointment of Mr. Sun Junguang, and the retirement of two core technical personnel - Three independent directors, Liu Yihua, Liu Jianhua, and Deng Baitao, resigned due to the expiration of their six-year terms, and Pei Hailong, Wang Yan, and Chen Xiankai were elected as new independent directors[96](index=96&type=chunk) - Chen Lixin resigned as General Manager, and the Board of Directors appointed Sun Junguang as the new General Manager[97](index=97&type=chunk) [Rural Revitalization Initiatives](index=42&type=section&id=V.%20Specific%20Details%20of%20Consolidating%20Poverty%20Alleviation%20Achievements%20and%20Rural%20Revitalization) The company actively fulfills its social responsibilities by consolidating poverty alleviation achievements and supporting rural revitalization through industrial and consumption assistance, including establishing an automated hydroponic facility agriculture demonstration base in Yangxi County, Guangdong Province, and purchasing over **1.5 million Yuan** in agricultural products from designated areas - The company established Yangjiang City's first automated hydroponic facility agriculture demonstration base in Niunan Village, Yangxi County, Yangjiang City, Guangdong Province, a designated assistance area, driving rural revitalization through industrial support[104](index=104&type=chunk) - In H1 2025, the company conducted two consumption assistance initiatives, cumulatively spending over **1.5 million Yuan** to purchase specialty agricultural products from designated assistance areas[104](index=104&type=chunk) [Significant Matters](index=43&type=section&id=Item%20V%20Significant%20Matters) [Significant Litigation and Arbitration Matters](index=50&type=section&id=VII.%20Significant%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company was involved in a significant lawsuit where the second instance of the case involving subsidiary Qingtian Materials versus He Tao and Yantai Fenglin New Materials Co., Ltd. has been heard and awaits judgment, while a previously disclosed lawsuit with Zhengzhou Bik and Shenzhen Bik companies was settled, with the company receiving the full **20 million Yuan** compensation - The lawsuit involving subsidiary Qingtian Materials against He Tao and Yantai Fenglin New Materials Co., Ltd., concerning **40 million Yuan**, had its second instance hearing on July 31, 2024, and is awaiting judgment[115](index=115&type=chunk)[116](index=116&type=chunk) - The company reached a settlement in its lawsuit with Zhengzhou Bik Company, receiving the full **20 million Yuan** in compensation for losses during the reporting period[117](index=117&type=chunk) [Significant Related Party Transactions](index=51&type=section&id=X.%20Significant%20Related%20Party%20Transactions) During the reporting period, the company engaged in daily operational transactions with related parties, including deposit, loan, and credit facilities with associated financial company Sinomach Finance, with actual daily related party transactions totaling **66.56 million Yuan** in H1 2025, and end-of-period balances of **662 million Yuan** in deposits and **14 million Yuan** in loans with Sinomach Finance - From January 1 to June 30, 2025, the actual amount of daily related party transactions with associated parties was **66.56 million Yuan**[118](index=118&type=chunk) Financial Business with Sinomach Finance (Period-End Balance) | Business Type | Period-End Balance (million Yuan) | | :--- | :--- | | Deposit Business | 66,207.89 | | Loan Business | 1,400.00 | [Progress of Raised Funds Utilization](index=56&type=section&id=XII.%20Explanation%20of%20Progress%20in%20Utilization%20of%20Raised%20Funds) The company's net proceeds from its initial public offering amounted to **863 million Yuan**, with **725 million Yuan** cumulatively invested as of the reporting period end, representing an **84.07%** utilization rate, primarily directed towards R&D, public technical service platforms, Qingtian polyester resin projects, and working capital, with some projects completed or canceled and remaining funds reallocated Overall Utilization of Raised Funds | Item | Amount (million Yuan) | | :--- | :--- | | Net Raised Funds | 86,294.29 | | Total Cumulative Investment as of Reporting Period End | 72,548.35 | | Cumulative Investment Progress (%) | 84.07 | [Share Changes and Shareholder Information](index=60&type=section&id=Item%20VI%20Share%20Changes%20and%20Shareholder%20Information) [Shareholder Information](index=60&type=section&id=(II)%20Table%20of%20Shareholdings%20by%20Top%20Ten%20Shareholders%20and%20Top%20Ten%20Shareholders%20with%20No%20Selling%20Restrictions%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of the reporting period end, the company had **10,232 shareholders**, with a relatively concentrated equity structure where China National Machinery Industry Corporation (Sinomach) and Guangzhou Kaitian Investment Management Center (Limited Partnership) are the top two shareholders, holding **47.33%** and **22.66%** respectively, and Sinomach Group and Sinomach Capital acting in concert - As of the end of the reporting period, the total number of ordinary shareholders was **10,232**[145](index=145&type=chunk) Shareholdings of Top Four Shareholders | Shareholder Name | Period-End Shareholding (shares) | Proportion (%) | | :--- | :--- | :--- | | China National Machinery Industry Corporation Limited | 191,430,000 | 47.33 | | Guangzhou Kaitian Investment Management Center (Limited Partnership) | 91,670,000 | 22.66 | | Sinomach Capital Holdings Co., Ltd. | 27,839,883 | 6.88 | | Chint Electrics Co., Ltd. | 21,648,608 | 5.35 | [Bond-Related Information](index=64&type=section&id=Item%20VII%20Bond-Related%20Information) [Financial Report](index=65&type=section&id=Item%20VIII%20Financial%20Report) [Financial Statements](index=65&type=section&id=II.%20Financial%20Statements) The financial statements show the company's total assets steadily grew to **7.47 billion Yuan**, with H1 2025 operating revenue reaching **2.33 billion Yuan** (+12.88%) and net profit of **259 million Yuan**, including **258 million Yuan** attributable to parent company shareholders (+31.28%), while net cash flow from operating activities significantly improved to **262 million Yuan** from **-182 million Yuan** in the prior year Consolidated Balance Sheet Key Data (2025-06-30) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 7,469,354,853.51 | | Total Liabilities | 4,162,631,804.00 | | Total Equity Attributable to Parent Company Owners | 3,280,550,564.48 | Consolidated Income Statement Key Data (Jan-Jun 2025) | Item | Amount (Yuan) | | :--- | :--- | | Total Operating Revenue | 2,329,186,348.42 | | Total Profit | 299,581,084.84 | | Net Profit | 258,817,666.62 | | Net Profit Attributable to Parent Company Shareholders | 258,240,054.62 | Consolidated Cash Flow Statement Key Data (Jan-Jun 2025) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 261,925,377.10 | | Net Cash Flow from Investing Activities | -191,410,201.57 | | Net Cash Flow from Financing Activities | -240,212,387.54 | | Cash and Cash Equivalents at Period End | 788,673,246.56 |