深圳秋田微电子股份有限公司 2025 年半年度报告全文 深圳秋田微电子股份有限公司 2025 年半年度报告 1 深圳秋田微电子股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 2025-032 2025 年 08 月 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。 公司负责人黄志毅、主管会计工作负责人石俊及会计机构负责人（会计 主管人员）彭华燕声明：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。 半年度报告中涉及未来计划等前瞻性陈述，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。 公司在本半年度报告中详细阐述了未来可能发生的有关风险因素及对策， 详见"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"， 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 | | | | 第二节 | 公司简介和主要财务指标 | 6 | | --- | --- | --- | | 第三节 | 管理层讨论与 ...

新疆友好（集团）股份有限公司2025 年半年度报告 公司代码：600778 公司简称：友好集团 新疆友好（集团）股份有限公司 2025 年半年度报告 1 / 127 新疆友好（集团）股份有限公司2025 年半年度报告 重要提示 一、 本公司董事会、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性、准确 性、完整性，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 公司全体董事出席董事会会议。 三、 本半年度报告未经审计。 四、 公司负责人李宏胜、主管会计工作负责人韩建伟及会计机构负责人（会计主管人员）韩建 伟声明：保证半年度报告中财务报告的真实、准确、完整。 五、 董事会决议通过的本报告期利润分配预案或公积金转增股本预案 本报告期，公司无利润分配及资本公积金转增股本预案。 六、 前瞻性陈述的风险声明 √适用 □不适用 八、 是否存在违反规定决策程序对外提供担保的情况 否 九、 是否存在半数以上董事无法保证公司所披露半年度报告的真实性、准确性和完整性 否 十、 重大风险提示 公司已在本报告中详细描述可能存在的相关风险，敬请查阅本报告"第三节 管理层讨论与分 析 五、其他披露事项 ...

[Definitions](index=5&type=section&id=Section%201%20Definitions) [Definitions of Common Terms](index=5&type=section&id=Definitions%20of%20Common%20Terms) This chapter defines key terms and abbreviations used in the report, covering company entities, reporting periods, and industry-specific vocabulary related to core businesses such as prebaked anodes, lithium battery anode materials, and film capacitors, ensuring clear understanding of the report content - Company, Sunstone Development refers to Sunstone Development Co., Ltd[14](index=14&type=chunk) - Reporting Period refers to January 1, 2025 - June 30, 2025[14](index=14&type=chunk) - Multiple controlled subsidiaries and joint ventures are defined, including Jiayuguan Sunstone Prebaked Anode, Sunstone Qili, Sunstone Innovation, Sunstone Yunlv, Hubei Sunstone, Foshan Xinyuan, and others[14](index=14&type=chunk)[15](index=15&type=chunk) - Core industry terms such as prebaked anode, primary aluminum, petroleum coke, coal tar pitch, lithium-ion battery, anode material, artificial graphite anode material, and film capacitor are explained[14](index=14&type=chunk) [Company Profile and Key Financial Indicators](index=7&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) [Company Information](index=7&type=section&id=I.%20Company%20Information) This section provides the company's basic identification information, including its Chinese name, abbreviation, foreign name and its abbreviation, and legal representative - The company's Chinese name is Sunstone Development Co., Ltd., and its Chinese abbreviation is Sunstone Development[17](index=17&type=chunk) - The company's legal representative is Lang Jing[17](index=17&type=chunk) [Contact Person and Contact Information](index=7&type=section&id=II.%20Contact%20Person%20and%20Contact%20Information) This section lists the names, contact addresses, telephone numbers, faxes, and email addresses of the company's Board Secretary and Securities Affairs Representative for investor communication - The Board Secretary is Yuan Gang, and the Securities Affairs Representative is Liu Suning[18](index=18&type=chunk) - The contact number is **0534-2148011**, and the email address is **sunstone@sun-stone.com**[18](index=18&type=chunk) [Brief Introduction to Changes in Basic Information](index=7&type=section&id=III.%20Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) This section introduces the company's registered address, office address, and official website, noting no relevant changes during the reporting period - The company's registered and office addresses are both on the north side of New National Highway 104, Hengyuan Economic Development Zone, Linyi County[19](index=19&type=chunk) - The company's website is **www.sun-stone.com**[19](index=19&type=chunk) [Brief Introduction to Changes in Information Disclosure and Document Storage Locations](index=7&type=section&id=IV.%20Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Storage%20Locations) This section specifies the company's designated newspapers and websites for information disclosure, and the location for storing semi-annual reports, ensuring transparency - The newspapers selected by the company for information disclosure include *China Securities Journal*, *Shanghai Securities News*, *Securities Times*, and *Securities Daily*[20](index=20&type=chunk) - The website address for publishing the semi-annual report is **www.sse.com.cn**[20](index=20&type=chunk) [Brief Introduction to Company Shares](index=7&type=section&id=V.%20Brief%20Introduction%20to%20Company%20Shares) This section provides the company's stock listing information, including stock type, listing exchange, stock abbreviation, and stock code - The company's stock type is A-shares, listed on the Shanghai Stock Exchange[21](index=21&type=chunk) - The stock abbreviation is Sunstone Development, and the stock code is **603612**[21](index=21&type=chunk) [Company's Key Accounting Data and Financial Indicators](index=8&type=section&id=VII.%20Company's%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2025, revenue grew by **28.28%**, and net profit attributable to shareholders surged by **1568.52%** to **CNY 1.05** per share, driven by higher prebaked anode prices, increased sales, and digital cost reduction, while operating cash flow turned negative due to rising raw material costs Key Accounting Data for H1 2025 | Indicator | Current Period (CNY) | Prior Period (CNY) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 8,306,421,528.09 | 6,475,261,831.93 | 28.28 | | Total Profit | 879,193,925.28 | 167,273,083.32 | 425.60 | | Net Profit Attributable to Shareholders of Listed Company | 523,092,440.06 | 31,350,715.66 | 1,568.52 | | Net Cash Flow from Operating Activities | -356,731,270.65 | 280,538,179.58 | -227.16 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 5,581,596,689.40 | 5,170,755,674.52 | 7.95 | | Total Assets (Period-end) | 18,887,723,096.25 | 17,614,880,204.84 | 7.23 | Key Financial Indicators for H1 2025 | Key Financial Indicator | Current Period (Jan-Jun) | Prior Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 1.05 | 0.06 | 1,650.00 | | Diluted Earnings Per Share (CNY/share) | 1.05 | 0.06 | 1,650.00 | | Basic Earnings Per Share Excluding Non-recurring Gains and Losses (CNY/share) | 1.05 | 0.21 | 400.00 | | Weighted Average Return on Net Assets (%) | 9.73 | 0.56 | Increased by 9.17 percentage points | | Weighted Average Return on Net Assets Excluding Non-recurring Gains and Losses (%) | 9.71 | 2.00 | Increased by 7.71 percentage points | - The year-on-year increase in operating revenue was primarily due to rising prebaked anode prices and significant growth in production and sales volumes[24](index=24&type=chunk) - The company significantly improved profitability through digital cost reduction and efficiency enhancement, with net profit, earnings per share, and return on net assets showing substantial year-on-year increases[25](index=25&type=chunk) - Net cash outflow from operating activities was mainly due to increased raw material inventory for the Hubei Sunstone 1 million-ton calcined coke project, coupled with rising raw material prices[26](index=26&type=chunk) [Non-recurring Gains and Losses Items and Amounts](index=9&type=section&id=IX.%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section details non-recurring gains and losses for the reporting period, totaling **CNY 1,002,689.75**, which had a positive impact on the company's net profit Non-recurring Gains and Losses Items and Amounts for H1 2025 | Non-recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains and Losses from Disposal of Non-current Assets | -10,032,657.17 | | Government Grants Recognized in Current Profit or Loss | 11,666,959.22 | | Fair Value Changes and Disposal Gains/Losses from Financial Assets and Liabilities Held by Non-financial Enterprises, Excluding Effective Hedging Related to Normal Business Operations | 2,944,898.74 | | Reversal of Impairment Provisions for Accounts Receivable Subject to Separate Impairment Testing | 311,030.22 | | Other Non-operating Income and Expenses Apart from the Above | -1,769,879.68 | | Less: Income Tax Impact | 714,685.88 | | Minority Interest Impact (After Tax) | 1,402,975.70 | | **Total** | **1,002,689.75** | [Management Discussion and Analysis](index=11&type=section&id=Section%203%20Management%20Discussion%20and%20Analysis) [Explanation of the Company's Industry and Main Business Operations During the Reporting Period](index=11&type=section&id=I.%20Explanation%20of%20the%20Company's%20Industry%20and%20Main%20Business%20Operations%20During%20the%20Reporting%20Period) In H1 2025, prebaked anode and lithium battery markets showed strong performance with significant price and shipment growth, while petroleum coke prices rose but output declined; the company's main business focuses on prebaked anodes, lithium battery anode materials, and film capacitors, guided by a 'C+ strategy' for low-carbon intelligent manufacturing and global competitiveness Key Industry Market Data for H1 2025 | Market | June 2025 Monthly Average Price Index (CNY/ton) | Increase from January Monthly Average Price Index (%) | Total Output Year-on-Year Increase (%) | Domestic Consumption Year-on-Year Increase (%) | Export Volume Year-on-Year Increase (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Prebaked Anode | 4,939 | 22.71 | 2.44 | 2.44 | 8.50 | | Primary Aluminum | 20,466 | 2.21 | 2.44 | 2.19 | / | | Petroleum Coke | 2,471 | 13.04 | -6.55 | -5.90 | / | | Calcined Coke | 2,900 | 8.01 | 2.53 | 4.10 | / | | Coal Tar Pitch | 3,807 | 1.98 | 0.27 | -0.72 | / | | Lithium Battery (Global Shipments) | / | / | 48.3 (GWh) | / | / | | Lithium Battery (China Shipments) | / | / | 68 (GWh) | / | / | | Artificial Graphite Anode Material (China Shipments) | / | / | 46.3 (ten thousand tons) | / | / | - The company's main business involves the R&D, production, and sales of prebaked anodes, lithium battery anode materials, and film capacitors[35](index=35&type=chunk) - The company adopts the 'C+ (carbon) strategy: dual-drive, two-wing, low-carbon intelligent manufacturing' as its development direction, focusing on carbon material industries such as 'prebaked anodes + lithium battery anodes'[35](index=35&type=chunk) - The prebaked anode business primarily uses joint ventures with high-quality downstream customers and MTO (Make-to-Order) models, while the lithium battery anode material business relies on customer orders and sales forecasts, mainly adopting a direct sales model[35](index=35&type=chunk)[36](index=36&type=chunk) [Discussion and Analysis of Operations](index=12&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) In H1 2025, the company advanced its 'dual-drive, two-wing' strategy, achieving significant growth in production and sales across prebaked anodes, lithium battery anodes, and capacitors; ongoing projects progressed steadily, capacity layout expanded, and digital transformation efforts led to successful intelligent systems for cost reduction and efficiency, alongside active progress in green products and carbon reduction technologies Production and Sales Volumes of Main Products for H1 2025 | Product Category | Output (ten thousand tons/hundred million units) | Year-on-Year Growth (%) | Sales Volume (ten thousand tons/hundred million units) | Year-on-Year Growth (%) | | :--- | :--- | :--- | :--- | :--- | | Prebaked Anode | 176.05 | 12.23 | 169.01 | 9.82 | | Lithium Battery Anode Products | 4.29 | 84.91 | 4.40 | 120.00 | | Capacitor Products | 7.75 | 3.52 | 7.88 | 8.47 | - Prebaked anode export sales increased by **13.18%** year-on-year, while domestic sales grew by **8.66%** year-on-year[37](index=37&type=chunk) - The civil construction of the Guangxi 600,000-ton prebaked anode project, a joint venture with Geely Baikuang, is largely complete; the Jiangsu Sunstone 320,000-ton prebaked anode project, a joint venture with Huafeng Group, is steadily progressing in its preparatory phase; and the company signed its first overseas prebaked anode project 'Joint Development Agreement' with EGA[38](index=38&type=chunk) - The company deepened its digital transformation, launched multiple management assistance systems, upgraded automation equipment, had its Shandong production center recognized as an advanced intelligent factory in Shandong Province, and successfully implemented the 'Petroleum Coke Intelligent Procurement and Blending System' to achieve cost reduction[39](index=39&type=chunk) - Focusing on carbon reduction and efficiency, new low-zinc anode technology for high-purity aluminum achieved commercialization, trial products of low 'iron-carbon' contact voltage drop anodes received high customer recognition, and the company collaborated with key customers on carbon reduction technology to extend anode lifespan[40](index=40&type=chunk) [Analysis of Core Competitiveness During the Reporting Period](index=14&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) The company's core competitiveness stems from its forward-looking 'C+ strategy,' advanced production technology, innovative customer cooperation models, competitive comprehensive cost advantages, and innovation-driven new quality productive forces, particularly in strategic emerging industries like solid-state battery materials and flow batteries - The company adheres to the 'C+ strategy,' practicing its low-carbon mission through green manufacturing of carbon materials, with strategic depth covering green energy, green products, and green services[42](index=42&type=chunk) - The 'dual-drive' refers to prebaked anode carbon materials (targeting approximately **5 million tons** of contracted capacity by end of 2025) and raw material petroleum coke (global procurement advantage); the 'two-wings' refer to green carbon reduction in the aluminum industry chain and green electricity + new carbon materials (lithium battery anode materials, special carbon, carbon ceramics, silicon carbide, etc.)[42](index=42&type=chunk)[43](index=43&type=chunk) - The company has accumulated years of production process advantages in the prebaked anode industry, undertaking **7** innovation projects during the reporting period, completing **6** small-scale trials, **1** medium-scale trial, and achieving **1** commercialization[44](index=44&type=chunk) - As of June 30, 2025, the company holds **384** authorized patents (**82** of which are invention patents), operates **11** provincial and ministerial-level R&D platforms, and has led or participated in the formulation of **39** national and industry standards[45](index=45&type=chunk) - The company secures customer demand through joint ventures with high-quality downstream customers; its joint venture project with Malaysia Press Metal Aluminium Holdings Berhad has commenced operations, and an overseas joint venture project agreement has been signed with EGA[46](index=46&type=chunk) - The company possesses advantages in optimal plant location selection, centralized petroleum coke procurement scale, competitive financing costs, unit cost benefits from economies of scale, and cost reduction advantages from the deep integration of digital intelligence and AI technology into its business system[47](index=47&type=chunk)[48](index=48&type=chunk) - The company is deepening its layout in solid-state battery key material systems, collaborating with Beijing Institute of Technology to develop sulfide solid electrolytes and silicon-based anode interface matching technology, and advancing the industrialization of silicon-based anode materials[49](index=49&type=chunk)[50](index=50&type=chunk) - In the flow battery sector, the stack has achieved stable operation for hundreds of charge-discharge cycles, and the company plans to establish a joint venture with Beijing Beihuada Investment Co., Ltd. and others to promote the industrialization of all-iron flow battery technology[50](index=50&type=chunk) - Strategic investment in Suzhou Dongnanjia New Material Co., Ltd. has enabled domestic substitution for railway pantograph carbon slides; strategic investment in Beijing Digital Green Earth Technology Co., Ltd. explores AI-powered intelligent kiln operation and maintenance; progress is being made in hydrogen energy applications and hydrogen fuel cell development; and strategic investment in Beijing Zhongchen Zhigang Technology Co., Ltd. explores high-entropy alloy inert anode materials[51](index=51&type=chunk)[52](index=52&type=chunk) [Main Operating Conditions During the Reporting Period](index=17&type=section&id=IV.%20Main%20Operating%20Conditions%20During%20the%20Reporting%20Period) In H1 2025, the company saw substantial growth in main business revenue and profit, despite increased operating cash outflow; asset-liability structure remained stable, with significant increases in accounts receivable financing and inventory; equity investments continued, expanding prebaked anode capacity and increasing subsidiary stakes, while key subsidiaries significantly contributed to prebaked anode and trade businesses [Analysis of Main Business](index=17&type=section&id=(I)%20Analysis%20of%20Main%20Business) This period saw a **28.28%** increase in operating revenue and a **425.60%** rise in total profit, driven by higher prebaked anode prices, increased sales, and a positive shift in fair value changes; however, net cash flow from operating activities turned negative due to rising raw material costs and increased inventory, while asset impairment losses grew due to inventory write-downs in the anode business Analysis Table of Changes in Financial Statement Items | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change Ratio (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 8,306,421,528.09 | 6,475,261,831.93 | 28.28 | | Operating Cost | 6,938,880,750.64 | 5,861,142,743.77 | 18.39 | | Selling Expenses | 32,589,714.76 | 28,066,036.97 | 16.12 | | Administrative Expenses | 127,297,233.99 | 102,121,595.30 | 24.65 | | Financial Expenses | 107,321,941.51 | 110,997,625.96 | -3.31 | | R&D Expenses | 76,811,125.14 | 73,916,200.13 | 3.92 | | Net Cash Flow from Operating Activities | -356,731,270.65 | 280,538,179.58 | -227.16 | | Net Cash Flow from Investing Activities | -368,673,096.87 | -379,733,902.77 | Not applicable | | Net Cash Flow from Financing Activities | 241,485,674.10 | 982,679,364.30 | -75.43 | | Investment Income | -14,984,885.48 | -2,683,857.34 | Not applicable | | Gains from Changes in Fair Value | 2,944,898.74 | -85,296,009.64 | Not applicable | | Asset Impairment Losses | -70,628,029.74 | -10,611,177.97 | Not applicable | - The growth in operating revenue was primarily due to rising prebaked anode prices, strong market demand, and year-on-year increases in production and sales volumes from new capacity releases[53](index=53&type=chunk) - Net cash outflow from operating activities was mainly due to increased raw material inventory for the Hubei Sunstone 1 million-ton calcined coke project, coupled with rising raw material prices[54](index=54&type=chunk) - Gains from changes in fair value turned positive, mainly because the fair value change loss of performance compensation shares recognized in the prior period was repurchased and cancelled at the end of 2024, and thus no longer occurred in the current period[54](index=54&type=chunk) - The increase in asset impairment losses was primarily due to inventory write-downs in the anode business[54](index=54&type=chunk) [Analysis of Assets and Liabilities](index=18&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, both total assets and net assets attributable to shareholders increased; accounts receivable financing and inventory significantly rose due to business growth and higher raw material prices, while taxes payable also increased; additionally, some assets were restricted due to guarantees and pledges, with overseas assets accounting for **0.68%** of total assets Analysis of Changes in Asset and Liability Status | Item Name | Current Period-end Amount (CNY) | Proportion of Total Assets at Current Period-end (%) | Prior Period-end Amount (CNY) | Proportion of Total Assets at Prior Period-end (%) | Period-on-Period Change in Current Period-end Amount (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable Financing | 1,525,821,636.41 | 8.08 | 1,165,239,268.37 | 6.62 | 30.94 | | Inventories | 3,920,129,612.32 | 20.75 | 2,741,875,971.89 | 15.57 | 42.97 | | Other Current Assets | 277,689,954.28 | 1.47 | 212,131,529.69 | 1.20 | 30.90 | | Notes Payable | 24,200,000.00 | 0.13 | 56,903,362.06 | 0.32 | -57.47 | | Taxes Payable | 177,971,328.36 | 0.94 | 87,202,158.89 | 0.50 | 104.09 | | Other Non-current Liabilities | 165,000,000.00 | 0.87 | 305,000,000.00 | 1.73 | -45.90 | - The period-end balance of overseas assets was **CNY 129,362,416.14**, accounting for **0.68%** of total assets[57](index=57&type=chunk) Main Asset Restrictions as of the End of the Reporting Period | Item | Period-end Carrying Amount (CNY) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Bank Balances | 280,225,543.84 | Deposits | | Fixed Assets | 1,088,498,645.29 | Bank loan mortgage guarantee, financing sale-leaseback mortgage | | Intangible Assets | 94,841,319.38 | Bank loan mortgage guarantee | | **Total** | **1,463,565,508.51** | / | [Analysis of Investment Status](index=19&type=section&id=(IV)%20Analysis%20of%20Investment%20Status) During the reporting period, the company made equity investments aligned with its core business, including increasing the annual production capacity of its aluminum prebaked anode project from **300,000 tons** to **320,000 tons**, and acquiring an additional **23.9681%** stake in its controlled subsidiary Sunstone Innovation for **CNY 470 million** in cash, raising its total holding to **62.7444%**; the company also holds private equity funds and direct equity investments in cutting-edge industries - The company signed a supplementary agreement with Shanghai Fengou Trading Co., Ltd. and others to increase the designed capacity of its 300,000-ton per year aluminum prebaked anode project to **320,000 tons**[61](index=61&type=chunk) - The company's wholly-owned subsidiary, Linyi Industrial and Trade, acquired a **23.9681%** stake in Sunstone Innovation held by Dongfang Asset for **CNY 470 million** in cash, increasing the company's total equity holding in Sunstone Innovation to **62.7444%** after the transaction[62](index=62&type=chunk) - The company's financial assets measured at fair value include private equity fund investments and direct equity investments, with period-end balances of **CNY 22,618,087.18** and **CNY 60,050,000.00**, respectively, invested in cutting-edge industries related to its main business[63](index=63&type=chunk) - Private equity fund investments include Shanghai Feiyu Xinyan Investment Management Partnership (Limited Partnership) and Jinan Industrial Development Yuanchuang Semiconductor Equity Investment Fund Partnership (Limited Partnership), focusing on strategic emerging industries such as semiconductors and new materials[64](index=64&type=chunk) [Analysis of Major Controlled and Invested Companies](index=21&type=section&id=(VI)%20Analysis%20of%20Major%20Controlled%20and%20Invested%20Companies) This section details the financial status and operating results of the company's major controlled subsidiaries, including Jiayuguan Sunstone Prebaked Anode, Jiayuguan Sunstone Carbon Materials, Linyi Sunstone International Industrial and Trade, Shandong Sunstone Innovation Carbon Materials, and Yunnan Sunstone Yunlv Carbon Materials, all of which significantly contribute to operating revenue and net profit in prebaked anode production and trade businesses Information on Major Subsidiaries and Invested Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (CNY) | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiayuguan Sunstone Prebaked Anode Co., Ltd. | Subsidiary | R&D, production and sales of prebaked anodes | 111,996,774.00 | 1,599,361,293.69 | 781,091,235.70 | 811,633,104.52 | 119,314,562.25 | 100,854,532.96 | | Jiayuguan Sunstone Carbon Materials Co., Ltd. | Subsidiary | R&D, production and sales of prebaked anodes | 434,957,993.00 | 2,091,925,249.92 | 935,754,553.13 | 842,771,518.89 | 135,002,721.21 | 107,391,388.21 | | Linyi Sunstone International Industrial and Trade Co., Ltd. | Subsidiary | Trade | 100,000,000.00 | 1,735,492,669.59 | 103,237,763.83 | 5,212,918,980.75 | 64,397,051.56 | 48,288,638.24 | | Shandong Sunstone Innovation Carbon Materials Co., Ltd. | Subsidiary | R&D, production and sales of prebaked anodes | 691,622,549.90 | 3,926,515,834.81 | 1,561,997,442.88 | 2,338,504,834.71 | 157,025,197.66 | 117,602,305.31 | | Yunnan Sunstone Yunlv Carbon Materials Co., Ltd. | Subsidiary | R&D, production and sales of prebaked anodes | 720,000,000.00 | 3,112,448,581.94 | 1,031,613,531.41 | 1,920,630,500.85 | 237,533,711.63 | 201,742,110.24 | [Other Disclosure Matters](index=24&type=section&id=V.%20Other%20Disclosure%20Matters) This section discloses various operational risks, including market and raw material price fluctuations, exchange rate risks, accounts receivable recovery risks, safety and environmental risks, overcapacity risks, and trade tariff risks; concurrently, the company actively implemented its 'Quality Improvement, Efficiency Enhancement, and Return' action plan, achieving significant progress in business development, R&D innovation, investor returns, and standardized operations [Potential Risks](index=24&type=section&id=(I)%20Potential%20Risks) The company faces multiple risks, including price fluctuations in prebaked anode products and raw materials, exchange rate volatility, accounts receivable recovery, safety and environmental concerns, overcapacity in prebaked anodes and lithium battery anode materials, and trade tariffs, all of which could adversely affect its operating performance and competitiveness - Prebaked anode product prices are influenced by macroeconomic conditions and industry cycles, with market price fluctuations introducing uncertainty to operating profits[68](index=68&type=chunk) - Price fluctuations of major raw materials like petroleum coke may change significantly in the short term, affecting the company's production costs and operating profits[69](index=69&type=chunk) - As a major export enterprise, fluctuations in the RMB exchange rate against foreign currencies may lead to exchange gains and losses volatility, affecting the company's performance stability[70](index=70&type=chunk) - The lithium battery anode material industry is experiencing rapid capacity expansion, leading to intensified market competition and risks of periodic and structural overcapacity[74](index=74&type=chunk) - Geopolitical conflicts and escalating trade barriers lead to frequent changes in global trade tariff policies, which may increase raw material procurement difficulties, production costs, and reduce product competitiveness[75](index=75&type=chunk) [Other Disclosure Matters](index=25&type=section&id=(II)%20Other%20Disclosure%20Matters) The company actively implemented its 'Quality Improvement, Efficiency Enhancement, and Return' action plan, achieving significant growth in main business production and sales in H1 2025, with new projects progressing steadily; R&D integration led to successful commercialization of new low-zinc anode technology for high-purity aluminum, and a joint venture is planned to industrialize all-iron flow battery technology; the company proposes a cash dividend of **CNY 2.1** per **10** shares and continues to enhance investor relations through ESG reporting and various communication channels - In H1 2025, prebaked anode output increased by **12.23%** year-on-year, and sales by **9.82%**; lithium battery anode product output increased by **84.91%**, and sales by **120.00%**; capacitor product output increased by **3.52%**, and sales by **8.47%**[76](index=76&type=chunk) - The Guangxi 600,000-ton prebaked anode project, Jiangsu Sunstone 320,000-ton prebaked anode project, and overseas joint venture projects are steadily progressing, and the company acquired a portion of minority shareholder equity in the high-quality subsidiary Sunstone Innovation[77](index=77&type=chunk) - New low-zinc anode technology for high-purity aluminum has successfully achieved commercialization, and trial products of low 'iron-carbon' contact voltage drop anodes have been promoted to customers[77](index=77&type=chunk) - The company plans to establish a joint venture with Beijing Beihuada Investment Co., Ltd. and others to further promote the industrialization of all-iron flow battery technology[78](index=78&type=chunk) - The company proposes a 2025 semi-annual profit distribution plan: a cash dividend of **CNY 2.1** (tax inclusive) per **10** shares to all shareholders, totaling **CNY 104,034,936.39** (tax inclusive)[78](index=78&type=chunk) - The company has continuously prepared and disclosed its 'Environmental, Social, and Governance (ESG) Report' for **three** consecutive years and continues to advance energy-saving and emission reduction measures[78](index=78&type=chunk) - The company strengthens investor relations management through multiple channels, including performance briefings, online investor collective reception days, investor hotlines, SSE E-Interaction, and on-site surveys[79](index=79&type=chunk) [Corporate Governance, Environment, and Society](index=27&type=section&id=Section%204%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) [Changes in Company Directors, Supervisors, and Senior Management](index=27&type=section&id=I.%20Changes%20in%20Company%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, the company's board of directors and senior management underwent several changes, including Ms. Lang Jing's election as a non-independent director and resignation as CFO, Ms. Zhang Xiawei's appointment as CFO, and Ms. Zhang Hong's election as an independent director following Mr. Zhang Jinchang's resignation - Ms. Lang Jing was elected as a non-independent director of the company's Fifth Board of Directors and serves as a member of the Board's Nomination Committee[81](index=81&type=chunk) - Ms. Lang Jing resigned from her position as Chief Financial Officer on **March 10, 2025**, and continues to serve as the company's Director and President[83](index=83&type=chunk) - Ms. Zhang Xiawei was appointed as the company's Chief Financial Officer[83](index=83&type=chunk) - Independent Director Mr. Zhang Jinchang resigned, and Ms. Zhang Hong was elected as an independent director of the company's Fifth Board of Directors, also serving as the convener of the Board's Audit Committee and a member of the Board's Nomination Committee[82](index=82&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=27&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company proposes a 2025 semi-annual profit distribution plan to pay a cash dividend of **CNY 2.1** (tax inclusive) per **10** shares to all shareholders, totaling **CNY 104,034,936.39**, balancing shareholder returns with sustainable company development - The company's net profit attributable to shareholders of the listed company for H1 2025 was **CNY 523,092,440.06**[85](index=85&type=chunk) - As of June 30, 2025, the parent company's distributable profit was **CNY 1,262,010,517.47**[85](index=85&type=chunk) - The proposed 2025 semi-annual profit distribution plan is: based on the company's total share capital on the dividend record date, a cash dividend of **CNY 2.1** (tax inclusive) per **10** shares will be distributed to all shareholders[85](index=85&type=chunk) - After deducting shares in the special repurchase securities account, the share base eligible for dividends is **495,404,459** shares, resulting in a total cash dividend of **CNY 104,034,936.39** (tax inclusive)[85](index=85&type=chunk) [Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=28&type=section&id=IV.%20Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) The company and **10** of its major subsidiaries are included in the list of enterprises required to disclose environmental information by law, and have publicly disclosed environmental data through relevant platforms, demonstrating compliance in environmental governance and information transparency; Hubei Sunstone Carbon Materials Co., Ltd. is in the process of environmental information disclosure - The company and **10** major subsidiaries are included in the list of enterprises required to disclose environmental information by law[86](index=86&type=chunk) - Sunstone Development Co., Ltd., Sunstone Qili Carbon Materials Co., Ltd., Jiayuguan Sunstone Prebaked Anode Co., Ltd., Jiayuguan Sunstone Carbon Materials Co., Ltd., Inner Mongolia Xinyuan Graphene Technology Co., Ltd., Shandong Sunstone Innovation Carbon Materials Co., Ltd., Chongqing Jinqi Carbon Co., Ltd., Yunnan Sunstone Yunlv Carbon Materials Co., Ltd., Gansu Sunstone Shengyuan Carbon Materials Co., Ltd., and others have all disclosed environmental information in accordance with the law[86](index=86&type=chunk)[87](index=87&type=chunk) - Hubei Sunstone Carbon Materials Co., Ltd. is expected to complete its environmental information disclosure by the end of **2025**, as its 1 million-ton new carbon material project has not yet been fully constructed[87](index=87&type=chunk) [Significant Matters](index=30&type=section&id=Section%205%20Significant%20Matters) [Fulfillment of Commitments](index=30&type=section&id=I.%20Fulfillment%20of%20Commitments) The company, its controlling shareholder, directors, supervisors, senior management, and other related parties have strictly fulfilled all public commitments, including those related to information disclosure accuracy, avoiding horizontal competition, standardizing related-party transactions, asset ownership guarantees, and share lock-up periods, with no instances of unfulfilled commitments - The company, its controlling shareholder, directors, supervisors, and senior management all committed to strictly fulfilling information disclosure responsibilities, ensuring the report is true, accurate, and complete[90](index=90&type=chunk)[93](index=93&type=chunk)[95](index=95&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk)[102](index=102&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk)[114](index=114&type=chunk) - Controlling shareholder and actual controller Mr. Lang Guanghui committed to avoiding horizontal competition and reducing and standardizing related-party transactions with the listed company[105](index=105&type=chunk)[129](index=129&type=chunk)[132](index=132&type=chunk) - Mr. Xue Yong committed to avoiding businesses that constitute or may constitute horizontal competition with Sunstone Development, Xinyuan Shares, and other enterprises controlled by them, and to reducing and standardizing related-party transactions[131](index=131&type=chunk)[133](index=133&type=chunk) - The performance commitment party committed that the first phase, first step, 40,000-ton graphitization production line of Inner Mongolia Xinyuan Graphene Technology Co., Ltd. project would reach production no later than **March 31, 2023**, and to assist in fulfilling environmental impact assessment procedures for the second phase project[135](index=135&type=chunk) - Ms. Wang Ping, a shareholder holding over **5%** of shares, committed to the lock-up period and reduction intentions for her shares, and acts as a concerted party with Mr. Lang Guanghui[136](index=136&type=chunk)[137](index=137&type=chunk)[154](index=154&type=chunk) [Illegal Guarantees](index=48&type=section&id=III.%20Illegal%20Guarantees) During the reporting period, the company did not provide any external guarantees in violation of prescribed decision-making procedures - During the reporting period, the company did not provide any external guarantees in violation of prescribed decision-making procedures[8](index=8&type=chunk) [Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period](index=48&type=section&id=IX.%20Explanation%20of%20the%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller%20During%20the%20Reporting%20Period) During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no instances of unfulfilled court judgments or large overdue debts - During the reporting period, the company, its controlling shareholder, and actual controller had no adverse integrity issues such as unfulfilled effective court judgments or large overdue debts[138](index=138&type=chunk) [Significant Related-Party Transactions](index=48&type=section&id=X.%20Significant%20Related-Party%20Transactions) This section discloses the company's related-party transactions related to ordinary operations during the reporting period, primarily involving property and vehicle leases, with actual amounts totaling **CNY 490,000** [Related-Party Transactions Related to Ordinary Operations](index=48&type=section&id=(I)%20Related-Party%20Transactions%20Related%20to%20Ordinary%20Operations) The company engaged in ordinary operational related-party transactions with associated parties, including property and vehicle leases, with actual amounts totaling **CNY 490,000** Related-Party Transactions Related to Ordinary Operations | Related-Party Transaction Category | Related Party | Estimated Amount (2025 Annual, CNY 10,000) | Actual Amount (CNY 10,000) | | :--- | :--- | :--- | :--- | | Property Lease | Lang Junhong | 12.00 | 3.00 | | Vehicle Lease | Tianjin Langtong International Trade Co., Ltd. | 46.00 | 46.00 | | Land and Property Lease | Xue Zhanqing | 274.17 | - | | **Total** | / | **332.17** | **49.00** | [Significant Contracts and Their Fulfillment](index=50&type=section&id=XI.%20Significant%20Contracts%20and%20Their%20Fulfillment) This section primarily discloses the company's significant guarantees executed and outstanding during the reporting period, indicating a substantial guarantee balance for subsidiaries, exceeding **100%** of net assets, with some guaranteed entities having high asset-liability ratios [Significant Guarantees Executed and Outstanding During the Reporting Period](index=51&type=section&id=(II)%20Significant%20Guarantees%20Executed%20and%20Outstanding%20During%20the%20Reporting%20Period) During the reporting period, the company's total guarantees for subsidiaries amounted to **CNY 4,204.8 million**, with a period-end guarantee balance of **CNY 7,414.0714 million**, representing **132.83%** of the company's net assets; among these, debt guarantees for entities with an asset-liability ratio exceeding **70%** totaled **CNY 1,702.4406 million** Total Guarantee Amount (Including Guarantees for Subsidiaries) | Indicator | Amount (CNY 10,000) | | :--- | :--- | | Total Guarantees for Subsidiaries Incurred During the Reporting Period | 420,480.00 | | Total Guarantees for Subsidiaries Outstanding at Period-end (B) | 741,407.14 | | Total Guarantees (A+B) | 741,407.14 | | Proportion of Total Guarantees to Company's Net Assets (%) | 132.83 | | Debt Guarantees Provided Directly or Indirectly for Guaranteed Entities with Asset-Liability Ratio Exceeding 70% (D) | 170,244.06 | | Amount of Total Guarantees Exceeding 50% of Net Assets (E) | 462,327.31 | | Total of the Above Three Guarantee Amounts (C+D+E) | 632,571.37 | [Share Changes and Shareholder Information](index=53&type=section&id=Section%206%20Share%20Changes%20and%20Shareholder%20Information) [Changes in Share Capital](index=53&type=section&id=I.%20Changes%20in%20Share%20Capital) During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[150](index=150&type=chunk) [Shareholder Information](index=53&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had **37,363** common shareholders; controlling shareholder Mr. Lang Guanghui and his concerted party Ms. Wang Ping were the top two shareholders, collectively holding over **27%** of shares, with a portion of Mr. Lang Guanghui's shares pledged - As of the end of the reporting period, the total number of common shareholders was **37,363**[151](index=151&type=chunk) Top Ten Shareholders' Shareholding as of the End of the Reporting Period | Shareholder Name | Period-end Shareholding (shares) | Proportion (%) | Number of Restricted Shares Held (shares) | Pledge, Mark, or Freeze Status - Share Status | Pledge, Mark, or Freeze Status - Quantity (shares) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Lang Guanghui | 82,434,966 | 16.55 | 0 | Pledged | 38,230,000 | Domestic Natural Person | | Wang Ping | 56,053,012 | 11.25 | 0 | Unknown | / | Domestic Natural Person | | Ningbo Ningju Asset Management Center (Limited Partnership) - Ningju Yingshanhong No. 3 Private Securities Investment Fund | 27,100,000 | 5.44 | 0 | Unknown | / | Other | | GF Bank Co., Ltd. - Guotai Juxin Value Advantage Flexible Allocation Mixed Securities Investment Fund | 6,700,000 | 1.35 | 0 | Unknown | / | Other | | Hong Kong Securities Clearing Company Limited | 5,366,758 | 1.08 | 0 | Unknown | / | Other | | Shanghai Kehui Equity Investment Center (Limited Partnership) | 5,268,906 | 1.06 | 0 | Unknown | / | Other | | Zhu Qing | 5,039,600 | 1.01 | 0 | Unknown | / | Domestic Natural Person | | Hangzhou Zhongcai Yanda Equity Investment Co., Ltd. | 4,151,090 | 0.83 | 0 | Unknown | / | Domestic Non-State-Owned Legal Person | | Wang Zhini | 3,418,300 | 0.69 | 0 | Unknown | / | Domestic Natural Person | | China Merchants Bank Co., Ltd. - Southern CSI 1000 Exchange Traded Open-end Index Securities Investment Fund | 3,202,204 | 0.64 | 0 | Unknown | / | Other | - Mr. Lang Guanghui and Ms. Wang Ping have signed a 'Concerted Action and Voting Rights Entrustment Agreement' and are concerted parties[154](index=154&type=chunk) [Bond-Related Information](index=56&type=section&id=Section%207%20Bond-Related%20Information) [Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=56&type=section&id=I.%20Corporate%20Bonds%20(Including%20Enterprise%20Bonds)%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) During the reporting period, the company did not issue or hold any corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[157](index=157&type=chunk) [Convertible Corporate Bonds](index=56&type=section&id=II.%20Convertible%20Corporate%20Bonds) During the reporting period, the company had no convertible corporate bonds - The company has no convertible corporate bonds[157](index=157&type=chunk) [Financial Report](index=57&type=section&id=Section%208%20Financial%20Report) [Audit Report](index=57&type=section&id=I.%20Audit%20Report) This semi-annual report has not been audited - This semi-annual report has not been audited[5](index=5&type=chunk) [Financial Statements](index=57&type=section&id=II.%20Financial%20Statements) This section provides the company's consolidated and parent company financial statements for H1 2025, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, comprehensively reflecting the company's financial position, operating results, and cash flows - Includes consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[159](index=159&type=chunk)[163](index=163&type=chunk)[167](index=167&type=chunk)[171](index=171&type=chunk)[175](index=175&type=chunk)[179](index=179&type=chunk)[181](index=181&type=chunk)[189](index=189&type=chunk) [Company Basic Information](index=80&type=section&id=III.%20Company%20Basic%20Information) Sunstone Development Co., Ltd. was restructured in **2010** and listed on the Shanghai Stock Exchange in **2017**, primarily engaging in R&D, production, and sales of prebaked anodes, lithium battery anode materials, and film capacitors, with its consolidated scope including the parent company and **24** subsidiaries - Sunstone Development Co., Ltd. was restructured from Sunstone Development Co., Ltd. in **December 2010** and listed on the Shanghai Stock Exchange on **July 18, 2017**, with stock code **603612**[193](index=193&type=chunk) - The company's registered capital is **CNY 498,104,459**, and its legal representative is Lang Jing[193](index=193&type=chunk) - The company's main business involves the R&D, production, and sales of prebaked anodes, lithium battery anode materials, and film capacitors[193](index=193&type=chunk) - The company's consolidated scope during the reporting period includes the parent company, Sunstone Development Co., Ltd., and **24** subsidiaries[194](index=194&type=chunk) [Basis of Financial Statement Preparation](index=80&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared on a going concern basis, confirming its ability to continue operations for at least **12** months from the reporting period-end, with no significant impacting matters - The company's financial statements are prepared on a going concern basis[195](index=195&type=chunk) - The company has the ability to continue as a going concern for at least **12** months from the end of the reporting period, with no significant matters affecting its going concern ability[196](index=196&type=chunk) [Significant Accounting Policies and Estimates](index=80&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's significant accounting policies and estimates, including compliance with accounting standards, accounting period, operating cycle, functional currency, materiality, business combinations, consolidated financial statements, financial instruments, inventories, long-term equity investments, fixed assets, construction in progress, borrowing costs, intangible assets, R&D expenses, impairment of long-term assets, contract liabilities, employee benefits, provisions, share-based payments, revenue, government grants, deferred tax assets/liabilities, and leases - The company's financial statements comply with enterprise accounting standards, accurately and completely reflecting its financial position[198](index=198&type=chunk) - The accounting year is from **January 1** to **December 31** of the Gregorian calendar, the operating cycle is **12** months, and the functional currency is RMB[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) - Financial instruments are classified as financial assets and liabilities measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss, with detailed explanations of recognition criteria, measurement methods, derecognition, and impairment testing methods[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk) - Revenue is recognized when the customer obtains control of the related goods or services, distinguishing between performance obligations satisfied over time or at a point in time[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk) - Fixed assets are depreciated using the straight-line method, intangible assets with finite useful lives are amortized using the straight-line method, and R&D expenses are divided into research phase (expensed) and development phase (capitalized when conditions are met)[237](index=237&type=chunk)[244](index=244&type=chunk)[248](index=248&type=chunk) [Taxation](index=105&type=section&id=VI.%20Taxation) This section details the company's and its subsidiaries' main tax categories and applicable rates, including VAT, urban maintenance and construction tax, and corporate income tax; the company and several subsidiaries enjoy a **15%** corporate income tax preferential rate due to their designation as high-tech enterprises or location in western development regions Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Payable on the difference between output tax and deductible input tax | 13%, 9%, 6% | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | 7%, 5% | | Corporate Income Tax | Taxable income | 25%, 15% | - Sunstone Development Co., Ltd. is recognized as a high-tech enterprise, applying a **15%** corporate income tax rate[284](index=284&type=chunk) - Subsidiaries Jiayuguan Sunstone Prebaked Anode Co., Ltd., Jiayuguan Sunstone Carbon Materials Co., Ltd., Yunnan Sunstone Yunlv Carbon Materials Co., Ltd., Gansu Sunstone Shengyuan Carbon Materials Co., Ltd., Inner Mongolia Xinyuan Graphene Technology Co., Ltd., and Longxi Sunstone Carbon Materials Co., Ltd. fall within the scope of the 'Catalogue of Encouraged Industries in Western Regions' and enjoy a **15%** preferential corporate income tax rate[284](index=284&type=chunk) - Subsidiaries Sunstone Qili Carbon Materials Co., Ltd. and Foshan Xinyuan Electronics Co., Ltd. are recognized as high-tech enterprises, applying a **15%** corporate income tax rate[284](index=284&type=chunk)[285](index=285&type=chunk) [Notes to Consolidated Financial Statement Items](index=107&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed disclosures for each item in the company's consolidated financial statements, including cash and bank balances, notes receivable, accounts receivable, inventories, fixed assets, construction in progress, intangible assets, goodwill, short-term borrowings, long-term borrowings, operating revenue and costs, investment income, fair value change gains, credit impairment losses, and asset impairment losses, with explanations of period-end balances, reasons for changes, and accounting treatments - The period-end balance of cash and bank balances was **CNY 1,591,401,371.59**, of which restricted cash and bank balances amounted to **CNY 280,225,543.84**, primarily for deposits[287](index=287&type=chunk) - The period-end carrying amount of accounts receivable was **CNY 2,495,840,068.25**, with a bad debt provision of **CNY 122,853,009.04**[300](index=300&type=chunk) - The period-end carrying amount of inventories was **CNY 3,920,129,612.32**, with an inventory impairment provision of **CNY 64,155,125.03**, mainly comprising raw materials, work-in-progress, finished goods, semi-finished goods, and goods in transit[333](index=333&type=chunk) - The period-end carrying amount of fixed assets was **CNY 6,905,365,522.00**, primarily consisting of buildings, machinery and equipment, and industrial kilns[347](index=347&type=chunk) - The period-end carrying amount of construction in progress was **CNY 582,136,975.51**, with major projects including the 1 million-ton new carbon material project and the Tiandong Baikuang 600 kt/a prebaked anode carbon project[354](index=354&type=chunk) - The period-end original carrying amount of goodwill was **CNY 771,213,076.41**, with impairment provisions of **CNY 755,105,669.85** already made, primarily arising from the acquisition of Foshan Xinyuan Electronics Co., Ltd.[367](index=367&type=chunk)[369](index=369&type=chunk) - The period-end balance of short-term borrowings was **CNY 3,892,779,811.46**, and the period-end balance of long-term borrowings was **CNY 3,831,074,271.10**[387](index=387&type=chunk)[410](index=410&type=chunk) - Current period operating revenue was **CNY 8,306,421,528.09**, and operating cost was **CNY 6,938,880,750.64**[429](index=429&type=chunk) - Current period investment income was **CNY -14,984,885.48**, primarily consisting of losses from discounting notes receivable and investment income from the disposal of other non-current financial assets[442](index=442&type=chunk) - Current period gains from changes in fair value were **CNY 2,944,898.74**, mainly from other non-current financial assets[444](index=444&type=chunk) - Current period credit impairment losses were **CNY -5,966,895.54**, and asset impairment losses were **CNY -70,628,029.74**, primarily due to inventory write-downs in the anode business[446](index=446&type=chunk)[447](index=447&type=chunk) [R&D Expenses](index=163&type=section&id=VIII.%20R%26D%20Expenses) The company's total R&D expenses for H1 2025 amounted to **CNY 76,811,125.14**, all of which were expensed, primarily comprising direct materials and employee compensation R&D Expenses by Nature of Expense for H1 2025 | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Employee Compensation | 16,370,077.41 | 13,279,680.78 | | Direct Materials | 53,799,963.62 | 51,038,822.90 | | Fuel and Power | 1,197,498.05 | 2,426,604.60 | | Depreciation and Amortization | 3,507,965.23 | 3,429,699.99 | | Maintenance Expenses | 1,062,385.62 | 1,128,654.52 | | Travel Expenses | 123,060.31 | 157,387.32 | | Office Expenses | 34,821.67 | 38,172.67 | | Technical Service Fees | 32,469.81 | 10,130,097.09 | | Other R&D Expenses | 682,883.42 | 2,287,080.26 | | **Total** | **76,811,125.14** | **83,916,200.13** | | Of which: Expensed R&D Expenses | 76,811,125.14 | 73,916,200.13 | | Capitalized R&D Expenses | / | 10,000,000.00 | [Changes in Consolidation Scope](index=164&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company's consolidation scope did not change due to non-same-control business combinations, same-control business combinations, reverse acquisitions, or disposal of subsidiaries - There were no business combinations not involving entities under common control in the current period[469](index=469&type=chunk) - There were no business combinations involving entities under common control in the current period[471](index=471&type=chunk) - There were no reverse acquisitions in the current period[472](index=472&type=chunk) - There were no transactions or events resulting in the loss of control over subsidiaries in the current period[472](index=472&type=chunk) [Interests in Other Entities](index=167&type=section&id=X.%20Interests%20in%20Other%20Entities) During the reporting period, the company held interests in **24** subsidiaries across manufacturing and trade, with several non-wholly-owned subsidiaries significantly impacting financial performance; the company further consolidated control over Shandong Sunstone Innovation Carbon Materials Co., Ltd. through additional equity acquisition [Interests in Subsidiaries](index=167&type=section&id=1.%20Interests%20in%20Subsidiaries) The company owns **24** subsidiaries primarily engaged in prebaked anode production and trade, with non-wholly-owned subsidiaries such as Jiayuguan Sunstone Prebaked Anode, Shandong Sunstone Innovation Carbon Materials, and Yunnan Sunstone Yunlv Carbon Materials significantly contributing to the company's net profit - The company owns **24** subsidiaries, including Linyi Sunstone International Industrial and Trade Co., Ltd., Jiayuguan Sunstone Prebaked Anode Co., Ltd., Sunstone Hong Kong Materials Co., Ltd., Jiayuguan Sunstone Carbon Materials Co., Ltd., Shandong Sunstone Innovation Carbon Materials Co., Ltd., Yunnan Sunstone Yunlv Carbon Materials Co., Ltd., Hubei Sunstone Carbon Materials Co., Ltd., and Foshan Xinyuan Electronics Co., Ltd.[473](index=473&type=chunk)[474](index=474&type=chunk) - The directors appointed by the company hold controlling voting rights on the board of directors, enabling them to control the financial and operating policies of the investee entities[474](index=474&type=chunk) Key Financial Information of Significant Non-Wholly-Owned Subsidiaries (Current Period Amounts) | Subsidiary Name | Minority Shareholding Proportion (%) | Current Period Profit or Loss Attributable to Minority Shareholders (CNY) | Current Period Dividends Declared to Minority Shareholders (CNY) | Period-end Minority Interest Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Jiayuguan Sunstone Prebaked Anode Co., Ltd. | 3.52 | 3,546,440.03 | 2,109,840.00 | 27,287,257.28 | | Jiayuguan Sunstone Carbon Materials Co., Ltd. | 3.52 | 3,777,617.02 | 3,517,600.00 | 32,749,198.37 | | Shandong Sunstone Innovation Carbon Materials Co., Ltd. | 37.26 | 57,199,905.38 | 22,797,865.58 | 582,015,111.10 | | Sunstone Qili Carbon Materials Co., Ltd. | 20.00 | 6,704,093.78 | / | 96,198,953.11 | | Yunnan Sunstone Yunlv Carbon Materials Co., Ltd. | 35.00 | 70,609,738.58 | / | 360,324,762.28 | | Longxi Sunstone Carbon Materials Co., Ltd. | 19.78 | 7,951,515.68 | / | 63,928,160.45 | | Hubei Sunstone Carbon Materials Co., Ltd. | 35.00 | 3,931,056.73 | / | 150,404,058.69 | | Foshan Xinyuan Electronics Co., Ltd. | 0.18 | -87,257.84 | / | 338,369.24 | | Chongqing Jinqi Carbon Co., Ltd. | 40.29 | 18,389,900.09 | / | 138,972,479.72 | [Transactions Where the Share of Owners' Equity in Subsidiaries Changes While Control is Retained](index=172&type=section&id=2.%20Transactions%20Where%20the%20Share%20of%20Owners'%20Equity%20in%20Subsidiaries%20Changes%20While%20Control%20is%20Retained) The company's wholly-owned subsidiary, Linyi Industrial and Trade, acquired a **23.97%** stake in Shandong Sunstone Innovation Carbon Materials Co., Ltd. from Dongfang Asset, increasing the company's shareholding in the subsidiary and resulting in an adjustment to capital reserve of **CNY 110,312,398.58** - In the current period, Linyi Industrial and Trade acquired a **23.97%** equity stake in Shandong Sunstone Innovation Carbon Materials Co., Ltd. from Dongfang Asset[480](index=480&type=chunk) Impact of Transaction on Minority Interests and Equity Attributable to Parent Company Owners | Item | Amount (CNY) | | :--- | :--- | | Purchase Cost/Disposal Consideration (Cash) | 470,000,000.00 | | Less: Share of Subsidiary's Net Assets Calculated Based on Acquired/Disposed Equity Proportion | 359,687,601.42 | | **Difference** | **110,312,398.58** | | Of which: Adjustment to Capital Reserve | 110,312,398.58 | [Government Grants](index=173&type=section&id=XI.%20Government%20Grants) During the reporting period, the company received new government grants of **CNY 3 million** and recognized a total of **CNY 9,309,013.38** in government grants into current profit or loss, with asset-related grants accounting for a larger proportion; the period-end deferred income still includes **CNY 96,996,927.98** in asset-related government grants Liability Items Involving Government Grants | Financial Statement Item | Beginning Balance (CNY) | Current Period New Grant Amount (CNY) | Current Period Amount Recognized in Non-operating Income (CNY) | Current Period Transferred to Other Income (CNY) | Current Period Other Changes (CNY) | Period-end Balance (CNY) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 100,344,335.03 | 3,000,000.00 | / | 6,347,407.05 | / | 96,996,927.98 | Asset-Related | Government Grants Recognized in Current Profit or Loss | Type | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Asset-Related | 6,347,407.05 | 5,742,151.73 | | Income-Related | 2,961,606.33 | 7,759,328.22 | | **Total** | **9,309,013.38** | **13,501,479.95** | [Risks Related to Financial Instruments](index=174&type=section&id=XII.%20Risks%20Related%20to%20Financial%20Instruments) The company faces credit, liquidity, and market risks (including interest rate and exchange rate risks) in its operations; these risks are managed through stringent customer credit assessments, ample cash reserves, and hedging instruments to balance risk and return, maximizing shareholder interests [Risks of Financial Instruments](index=174&type=section&id=1.%20Risks%20of%20Financial%20Instruments) The company faces credit, liquidity, and market risks (interest rate, exchange rate, and other price risks); these are managed by assessing customer credit, contract management, maintaining sufficient cash and equivalents, monitoring bank borrowings, and potentially using interest rate swaps and forward foreign exchange contracts - The company faces credit risk, liquidity risk, and market risk (including exchange rate risk, interest rate risk, and other price risks) in its operations[484](index=484&type=chunk) - Credit risk primarily arises from cash and bank balances, notes receivable, accounts receivable, accounts receivable financing, etc., and is controlled through customer financial and credit status investigations, contract management, and other methods[485](index=485&type=chunk) - Liquidity risk is managed by maintaining and monitoring sufficient cash and cash equivalents[486](index=486&type=chunk) Undiscounted Contractual Cash Flows of Financial Liabilities by Maturity as of June 30, 2025 | Item | Period-end Balance (CNY) | Within 1 Year (CNY) | 1-2 Years (CNY) | 2-5 Years (CNY) | Over 5 Years (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Short-term Borrowings | 3,892,779,811.46 | 3,892,779,811.46 | / | / | / | | Notes Payable | 24,200,000.00 | 24,200,000.00 | / | / | / | | Accounts Payable | 1,585,862,497.62 | 1,585,862,497.62 | / | / | / | | Other Payables | 137,320,434.39 | 137,320,434.39 | / | / | / | | Other Non-current Liabilities Due Within One Year | 1,489,320,448.14 | 1,489,320,448.14 | / | / | / | | Long-term Borrowings | 3,831,074,271.10 | / | 1,743,168,325.76 | 1,837,551,486.72 | 250,354,458.62 | | Long-term Payables | 66,666,666.67 | / | 66,666,666.67 | / | / | | Lease Liabilities | 39,118,027.43 | / | 5,197,550.16 | 33,920,477.27 | / | | **Total** | **11,066,342,156.81** | **7,129,483,191.61** | **1,815,032,542.59** | **1,871,471,963.99** | **250,354,458.62** | - Interest rate risk is managed by determining the proportion of fixed-rate and floating-rate instruments, and potentially using interest rate swaps for hedging; exchange rate risk primarily arises from USD-denominated financial assets and liabilities, managed by monitoring foreign currency transactions and asset-liability scales, and potentially signing forward foreign exchange contracts or currency swap agreements to mitigate[489](index=489&type=chunk)[490](index=490&type=chunk) [Transfer of Financial Assets](index=176&type=section&id=3.%20Transfer%20of%20Financial%20Assets) The company transfers financial assets through endorsement or discounting of bills, resulting in derecognition for accounts receivable financing but not for notes receivable, indicating retention of some risks and rewards; financial assets derecognized due to transfer in the current period totaled **CNY 1,781,781,156.60**, generating a gain or loss of **CNY -14,685,841.07** Classification of Financial Asset Transfer Methods | Transfer Method | Nature of Transferred Financial Assets | Amount of Transferred Financial Assets (CNY) | Derecognition Status | Basis for Derecognition Judgment | | :--- | :--- | :--- | :--- | :--- | | Bill Endorsement or Discounting | Notes Receivable | 138,598,862.72 | Not derecognized | Neither transferred nor retained substantially all risks and rewards | | Bill Endorsement or Discounting | Accounts Receivable Financing | 1,781,781,156.60 | Derecognized | Transferred substantially all risks and rewards | | **Total** | / | **1,920,380,019.32** | / | / | Financial Assets Derecognized Due to Transfer | Item | Method of Financial Asset Transfer | Amount of Derecognized Financial Assets (CNY) | Gains or Losses Related to Derecognition (CNY) | | :--- | :--- | :--- | :--- | | Bank Acceptance Bills | Endorsement or Discounting | 1,779,031,884.30 | -14,685,841.07 | | Accounts Receivable Creditor Certificates | Endorsement or Discounting | 2,749,272.30 | / | | **Total** | / | **1,781,781,156.60** | **-14,685,841.07** | Transferred Financial Assets with Continuing Involvement | Item | Asset Transfer Method | Amount of Assets Arising from Continuing Involvement (CNY) | Amount of Liabilities Arising from Continuing Involvement (CNY) | | :--- | :--- | :--- | :--- | | Bank Acceptance Bills | Endorsement or Discounting | 135,223,386.80 | 135,223,386.80 | | Commercial Acceptance Bills | Endorsement or Discounting | 3,375,475.92 | 3,375

Important Notice, Table of Contents, and Definitions [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's board ensures the truthfulness, accuracy, and completeness of this semi-annual report, with no false records or misleading statements 2025 Half-Year Core Financial Indicators | Indicator | Amount | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 289 million Yuan | +23.65% | | Net Profit Attributable to Shareholders | - | +13.65% | - The company plans no cash dividends, bonus shares, or capital increase from capital reserves for the half-year period[9](index=9&type=chunk) [Risk Factors](index=2&type=section&id=%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) The company faces significant risks including a large balance of accounts receivable, challenges in technology and product development, and market concentration Accounts Receivable Balance and Proportion of Total Assets | Time Point | Accounts Receivable (million Yuan) | Proportion of Total Assets | | :--- | :--- | :--- | | End of 2023 | 1,174.1967 | 45.14% | | End of 2024 | 1,099.9474 | 43.99% | | End of H1 2025 | 933.5574 | 40.42% | - Product sales are highly dependent on the railway and urban rail transit markets, which accounted for **99.65%** of revenue in H1 2025[7](index=7&type=chunk) - The company faces technology and product development risks if it fails to accurately judge future technological trends or if R&D investment is insufficient[6](index=6&type=chunk) [Definitions](index=7&type=section&id=%E9%87%8A%E4%B9%89) This chapter defines key terms and abbreviations used in the report, including company entities, related parties, industry terms, and regulatory bodies, to facilitate investor understanding Company Profile and Key Financial Indicators [Company Profile](index=9&type=section&id=%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Chengdu Yunda Technology Co., Ltd. (stock code: 300440) is listed on the Shenzhen Stock Exchange, with its legal representative and basic information remaining unchanged during the reporting period Company Basic Information | Item | Content | | :--- | :--- | | Stock Abbreviation | Yunda Technology | | Stock Code | 300440 | | Listing Exchange | Shenzhen Stock Exchange | | Full Chinese Name | 成都运达科技股份有限公司 | | Legal Representative | He Hongyun | [Key Accounting Data and Financial Indicators](index=10&type=section&id=%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 H1 2025, the company achieved 289 million Yuan in operating revenue, a 23.65% increase, and 16.47 million Yuan in net profit attributable to shareholders, up 13.65%, with operating cash flow significantly improving by 40.57% despite remaining negative, while total assets decreased by 7.64% to 2.31 billion Yuan 2025 Half-Year Key Financial Data | Indicator | Current Reporting Period | Prior Year Period | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 288,695,017.91 | 233,468,426.88 | 23.65% | | Net Profit Attributable to Shareholders (Yuan) | 16,465,606.55 | 14,487,723.70 | 13.65% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) (Yuan) | 13,563,467.97 | 13,249,974.66 | 2.37% | | Net Cash Flow from Operating Activities (Yuan) | -40,678,563.88 | -68,447,278.94 | 40.57% | | Basic Earnings Per Share (Yuan/share) | 0.0380 | 0.0335 | 13.43% | | Weighted Average Return on Net Assets | 1.02% | 0.92% | Increased by 0.10 percentage points | | **Indicator** | **Current Period-End** | **Prior Year-End** | **Period-End vs. Prior Year-End Change** | | Total Assets (Yuan) | 2,309,697,062.34 | 2,500,664,167.60 | -7.64% | | Net Assets Attributable to Shareholders (Yuan) | 1,604,665,688.18 | 1,609,653,523.37 | -0.31% | 2025 Half-Year Non-Recurring Gains and Losses | Item | Amount (Yuan) | | :--- | :--- | | Government Subsidies | 2,740,583.87 | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets | 1,581,353.49 | | Gains/Losses from Disposal of Non-Current Assets | 90,424.00 | | Net Other Non-Operating Income/Expenses | -952,037.83 | | **Total** | **2,902,138.58** | Management Discussion and Analysis [Business Overview](index=12&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) As a smart system provider for rail transit, the company maintains stable operations, serving national railways, urban rail, and vocational colleges, implementing a "3351" strategy with strong market prospects driven by national policies - The company implements a "3351" strategic plan, targeting **3** customer groups (national railways, urban rail, vocational colleges), exploring **3** business segments (locomotive and rolling stock, traction power supply, railway transportation), offering **5** system solutions (smart training, smart O&M, smart depot, smart traction power supply, smart freight), and providing **1** transport and maintenance service business[36](index=36&type=chunk)[43](index=43&type=chunk) - National policies, including the "National Comprehensive Three-Dimensional Transportation Network Plan" and the "Action Plan for Large-Scale Equipment Renewal and Trade-in of Consumer Goods," are key performance drivers, explicitly supporting the innovative development and upgrading of rail transit equipment, presenting high-growth opportunities for the company[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) [Smart Training Solutions](index=13&type=section&id=%EF%BC%881%EF%BC%89%E6%99%BA%E6%85%A7%E5%9F%B9%E8%AE%AD%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88) This solution leverages digital twin and AI technologies to provide intelligent training systems for national railways, urban rail, and vocational institutions, covering scenarios such as train driving, maintenance, and emergency response, with successful expansion into "Belt and Road" projects like the Jakarta-Bandung High-Speed Railway [Smart O&M Solutions](index=15&type=section&id=%EF%BC%882%EF%BC%89%E6%99%BA%E8%83%BD%E8%BF%90%E7%BB%B4%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88) This solution utilizes physical sensing, image recognition, and big data analytics, centered on the full lifecycle health management of vehicles, to achieve intelligent perception, fault early warning, and O&M decision-making, ensuring safe, reliable, efficient, and energy-saving train operations, widely applied in major urban rail units [Smart Depot Solutions](index=16&type=section&id=%EF%BC%883%EF%BC%89%E6%99%BA%E6%85%A7%E8%BD%A6%E8%BE%86%E6%AE%B5%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88) This solution focuses on enhancing depot operational quality and efficiency by integrating IoT, AI, and digital twin technologies to build a unified intelligent management and control platform, enabling information interoperability across vehicle operation, preparation, and maintenance stages, and promoting a shift towards condition-based intelligent maintenance [Smart Traction Power Supply Solutions](index=17&type=section&id=%EF%BC%884%EF%BC%89%E6%99%BA%E8%83%BD%E7%89%B5%E5%BC%95%E4%BE%9B%E7%94%B5%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88) This solution provides intelligent power distribution management and efficient regenerative energy utilization for traction catenary systems to national and urban rail clients, ensuring reliable power supply for trains, with products widely applied domestically and in "Belt and Road" countries like Belarus and Egypt [Smart Freight Solutions](index=18&type=section&id=%EF%BC%885%EF%BC%89%E6%99%BA%E8%83%BD%E8%B4%A7%E8%BF%90%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88) This solution integrates IoT, big data, and AI to drive the digital and intelligent transformation of railway freight systems, building intelligent dispatching and unified smart control platforms that significantly enhance yard operation efficiency and reduce operating costs, widely deployed across 18 national railway bureaus - The smart freight solution, through technological innovation, improves yard operation efficiency by **30%-50%**, reduces operating costs by **15%-25%**, decreases cargo damage rate by **80%**, and contributes to a **30%-50%** reduction in carbon emissions[60](index=60&type=chunk) [Core Competitiveness Analysis](index=22&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 stems from its profound scientific research foundation, elite team, technological leadership achieved through independent innovation, extensive accumulation in the smart industry, and excellent product quality and brand reputation, with its core team possessing over 30 years of industry experience and technical personnel exceeding 70% - The company's core team originated from Southwest Jiaotong University, boasting over **30 years** of industry experience, with technical personnel accounting for over **70%**[76](index=76&type=chunk) - The company adheres to independent innovation, earning recognition as a National "Little Giant" enterprise specializing in new technologies, a National Enterprise Technology Center, and participating in the formulation of multiple international and domestic industry standards[78](index=78&type=chunk) - The company operates over **200** service outlets nationwide, is ISO/TS 22163 system certified to a silver standard, and has established a "product + service" sales model[80](index=80&type=chunk) [Main Business Analysis](index=23&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 reached 289 million Yuan, a 23.65% increase, and net profit attributable to shareholders was 16.47 million Yuan, up 13.65%, driven by strong market performance across all business segments, particularly smart O&M with a 63.98% revenue growth, while the company further solidified its technological leadership by launching the "Yunda Agent Platform" and deploying the "Vehicle Maintenance Expert Large Model" at Guangzhou Metro - In the smart O&M sector, core product technologies were upgraded, securing multi-million Yuan orders for new 6A HD video and 6A fire prevention systems, and winning a multi-million Yuan retrofit project for foreign vehicle models, achieving breakthroughs in both new and existing markets[81](index=81&type=chunk) - The company officially launched the "Yunda Agent Platform" and deployed the "Vehicle Maintenance Expert Large Model" at Guangzhou Metro for the first time, empowering core products with AI for intelligent upgrades[83](index=83&type=chunk)[84](index=84&type=chunk) Operating Revenue by Product/Service (Yuan) | Product/Service | Operating Revenue | Operating Cost | Gross Margin | YoY Change in Operating Revenue | | :--- | :--- | :--- | :--- | :--- | | Smart O&M | 106,058,436.68 | 60,814,660.50 | 42.66% | 63.98% | | Smart Training | 88,605,709.86 | 51,323,089.30 | 42.08% | 5.15% | | Smart Traction Power Supply | 37,911,152.15 | 23,051,784.13 | 39.20% | 40.95% | Reasons for Changes in Key Financial Data | Item | YoY Change | Reason for Change | | :--- | :--- | :--- | | Operating Cost | 40.13% | Orderly delivery of ongoing projects led to a year-on-year increase in costs | | Financial Expenses | 37.96% | Increase in interest expenses during the current period | | Income Tax Expense | 71.95% | Due to increased profit | | Net Cash Flow from Investing Activities | -659.11% | Increased purchase of wealth management products during the current period | | Net Cash Flow from Financing Activities | 63.34% | No repayment of borrowings or share repurchase in the current period, unlike the prior period | [Non-Core Business Analysis](index=26&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-core operations significantly impacted profit during the reporting period, with other income (primarily software VAT refunds and government subsidies) and credit impairment loss reversals (reversal of bad debt provisions for accounts receivable) constituting 44.59% and 76.97% of total profit, respectively Non-Core Business Profit and Loss (Yuan) | Item | Amount | Proportion of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Investment Income | 1,444,597.58 | 5.97% | Primarily investment income from wealth management products | | Other Income | 10,789,047.11 | 44.59% | Primarily software VAT refunds and government subsidies received | | Credit Impairment Loss | 18,621,654.31 | 76.97% | Primarily reversal of bad debt provision for accounts receivable | [Asset and Liability Status Analysis](index=27&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) As of the end of the reporting period, the company's total assets were 2.31 billion Yuan, a 7.64% decrease from the beginning of the year, with accounts receivable remaining the largest asset component at 40.42% (though its proportion decreased), while inventory proportion increased, and accounts payable constituted the primary liability at 17.15% of total assets Major Balance Sheet Item Changes | Item | Period-End Amount (Yuan) | Proportion of Total Assets | Year-Beginning Amount (Yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 108,483,195.77 | 4.70% | 199,485,843.43 | 7.98% | -3.28% | | Accounts Receivable | 933,557,396.96 | 40.42% | 1,099,947,364.78 | 43.99% | -3.57% | | Inventory | 353,325,702.75 | 15.30% | 305,368,998.32 | 12.21% | 3.09% | | Accounts Payable | 396,133,872.81 | 17.15% | 482,155,450.02 | 19.28% | -2.13% | [Investment Status Analysis](index=28&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 investment amount significantly increased to 437 million Yuan, an 862.27% year-on-year growth, primarily due to entrusted wealth management using proprietary funds, with a total outstanding balance of 158 million Yuan at period-end - The investment amount for the reporting period was **437 million Yuan**, a significant increase of **862.27%** compared to 45.43 million Yuan in the prior year[102](index=102&type=chunk) Entrusted Wealth Management Overview (million Yuan) | Specific Type | Source of Funds | Amount Incurred | Outstanding Balance | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Proprietary Funds | 367.14 | 128.17 | | Brokerage Wealth Management Products | Proprietary Funds | 30.00 | 30.00 | | **Total** | | **397.14** | **158.17** | [Analysis of Major Holding and Participating Companies](index=30&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) During the reporting period, key subsidiaries such as Sichuan Huiyou (traction power), Guangzhou Yunda (smart O&M), and Chengdu Huoan (smart freight) operated steadily, contributing 8.43 million Yuan, 4.41 million Yuan, and 3.98 million Yuan in net profit respectively, while the company deregistered Tangshan Xijiao Zhida Rail Transit Equipment Co., Ltd. to optimize resource allocation Major Subsidiary Operating Performance (Yuan) | Company Name | Main Business | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | | Sichuan Huiyou | Traction Power Equipment | 27,234,752.59 | 9,575,929.76 | 8,426,732.74 | | Guangzhou Yunda | Smart O&M | 39,025,728.81 | 4,407,337.18 | 4,407,337.77 | | Chengdu Huoan | Smart Freight | 15,297,516.48 | 6,923,953.95 | 3,982,618.97 | Corporate Governance, Environment, and Society [Implementation of Equity Incentive Plans](index=32&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) During the reporting period, the company adjusted its 2023 restricted stock incentive plan, canceling a total of **3.508 million** granted but unvested second-class restricted shares due to employee departures and the failure to meet 2024 company-level performance targets - Due to the departure of some incentive recipients, the company canceled a total of **394,000** granted but unvested second-class restricted shares[122](index=122&type=chunk) - Due to the failure to meet the 2024 performance targets, the company canceled a total of **3.114 million** (2.7105 million + 0.4035 million) restricted shares corresponding to the assessment year from both initial and reserved grants[123](index=123&type=chunk) Significant Matters [Significant Contracts and Their Performance](index=36&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) This chapter details the company's significant contracts, primarily involving leasing and guarantees, including an office lease agreement with related party Yunda Innovation and 111.15 million Yuan in guarantees provided to several subsidiaries to support their development - The company signed a **5-year** office lease contract with its controlling shareholder, Yunda Innovation, for an office area of **31,914 sqm**, with an annual rent of **8.4189 million Yuan**[142](index=142&type=chunk) Summary of Guarantees to Subsidiaries (million Yuan) | Guaranteed Party | Actual Guaranteed Amount | | :--- | :--- | | Sichuan Huiyou | 10.00 | | Chengdu Huoan | 30.00 | | Hunan Hengxin | 20.40 | | Guangzhou Yunda | 40.75 | | Technical Services | 10.00 | | **Total Actual Guarantee Balance at Period-End** | **111.15** | [Significant Matters of 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) During the reporting period, the company deregistered its subsidiary, Tangshan Xijiao Zhida Rail Transit Equipment Co., Ltd., to optimize resource allocation, while a project contract awarded to its controlling subsidiary, Guangzhou Yunda, in July 2023 is proceeding normally - To optimize resource allocation and reduce management costs, the company deregistered its subsidiary, Tangshan Xijiao Zhida Rail Transit Equipment Co., Ltd., on April 29, 2025[151](index=151&type=chunk) Share Changes and Shareholder Information [Share Changes](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) As of the end of the reporting period, the company's total share capital remained unchanged at 443.9186 million shares, with unrestricted shares accounting for 99.62% and restricted shares for 0.38% Share Structure | Share Type | Number of Shares | Proportion | | :--- | :--- | :--- | | Restricted Shares | 1,695,035 | 0.38% | | Unrestricted Shares | 442,223,565 | 99.62% | | **Total Share Capital** | **443,918,600** | **100.00%** | [Shareholder Numbers and Shareholding](index=40&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 19,184 common shareholders, with controlling shareholder Yunda Innovation (Chengdu) Investment Co., Ltd. holding 33.07% of shares, approximately half of which were pledged, and the company's share repurchase account holding 2.37% of total shares - At the end of the reporting period, the company had **19,184** common shareholders[157](index=157&type=chunk) Top Two Shareholders' Shareholding | Shareholder Name | Nature | Shareholding Proportion | Number of Shares Held | Pledge/Mark or Freeze Status | | :--- | :--- | :--- | :--- | :--- | | Yunda Innovation (Chengdu) Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 33.07% | 146,809,324 | Pledged 73,980,000 shares | | Liu Zhiqiang | Domestic Natural Person | 3.32% | 14,757,400 | Not Applicable | - The company's share repurchase special securities account held **10,521,800** shares, accounting for **2.37%** of the company's total share capital[158](index=158&type=chunk) Bond-Related Information [Bond-Related Information](index=44&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 activities during the reporting period - The company had no bond-related activities during this reporting period[164](index=164&type=chunk) Financial Report [Audit Report](index=45&type=section&id=%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's 2025 half-year financial report is unaudited - This half-year financial report is unaudited[166](index=166&type=chunk) [Financial Statements](index=45&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's unaudited consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, accompanied by detailed notes on accounting policies, estimates, and major statement items [Consolidated Balance Sheet](index=45&type=section&id=%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 total assets were 2.31 billion Yuan, total liabilities were 688 million Yuan, and owners' equity attributable to the parent company was 1.605 billion Yuan, resulting in a debt-to-asset ratio of 29.78% Consolidated Balance Sheet Summary (2025-06-30) | Item | Period-End Balance (Yuan) | | :--- | :--- | | **Total Assets** | **2,309,697,062.34** | | Total Current Assets | 1,844,458,922.68 | | Total Non-Current Assets | 465,238,139.66 | | **Total Liabilities** | **687,809,929.72** | | Total Current Liabilities | 666,675,858.16 | | Total Non-Current Liabilities | 21,134,071.56 | | **Total Owners' Equity** | **1,621,887,132.62** | | Owners' Equity Attributable to Parent Company | 1,604,665,688.18 | [Consolidated Income Statement](index=49&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In H1 2025, the company achieved total operating revenue of 289 million Yuan, incurred total operating costs of 295 million Yuan, resulting in a total profit of 24.19 million Yuan, a net profit of 17.52 million Yuan, and net profit attributable to parent company shareholders of 16.47 million Yuan Consolidated Income Statement Summary (H1 2025) | Item | Amount (Yuan) | | :--- | :--- | | Total Operating Revenue | 288,695,017.91 | | Total Operating Cost | 294,779,422.68 | | Total Profit | 24,193,936.20 | | Net Profit | 17,515,378.90 | | Net Profit Attributable to Parent Company Shareholders | 16,465,606.55 | [Consolidated Cash Flow Statement](index=53&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In H1 2025, the company's net cash flow from operating activities was -40.68 million Yuan (an improvement), from investing activities was -20.91 million Yuan (primarily due to wealth management product purchases), and from financing activities was -30.41 million Yuan, with cash and cash equivalents totaling 90.08 million Yuan at period-end Consolidated Cash Flow Statement Summary (H1 2025) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -40,678,563.88 | | Net Cash Flow from Investing Activities | -20,910,580.01 | | Net Cash Flow from Financing Activities | -30,411,639.60 | | **Net Increase in Cash and Cash Equivalents** | **-92,000,783.49** | | Cash and Cash Equivalents at Period-End | 90,083,939.21 |

苏州恒铭达电子科技股份有限公司 2025 年半年度报告全文 证券代码：002947 证券简称：恒铭达 公告编号：2025-057 苏州恒铭达电子科技股份有限公司 2025 年半年度报告 2025 年 8 月 1 苏州恒铭达电子科技股份有限公司 2025 年半年度报告全文 | 第一节 | 重要提示、目录和释义 | 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 25 | | | 第六节 | 股份变动及股东情况 35 | | | 第七节 | 债券相关情况 40 | | | 第八节 | 财务报告 41 | | | 第九节 | 其他报送数据 140 | | 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。 公司负责人荆天平、主管会计工作负责人吴之星及会计机构负责人(会计 主管人员)孙秀丽声明：保证本半年度报告中 ...

许继电气股份有限公司 2025 年半年度报告全文 许继电气股份有限公司 2025 年半年度报告 2025 年 8 月 1 许继电气股份有限公司 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。 公司负责人李俊涛、主管会计工作负责人陆飞及会计机构负责人(会计主 管人员)冯宪龙声明：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计划等前瞻性陈述不构成公司对投资者的实质承诺， 投资者及相关人士均应当对此保持足够的风险认识，并且应当理解计划、预 测与承诺之间的差异。 公司已在本报告中详细描述存在的行业风险、市场风险等。敬请查阅"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"部分的内容。 公司经本次董事会审议通过的利润分配预案为：以 1,018,749,309 为基 数，向全体股东每 10 股派发现金红利 2.38 元（含税），送红股 0 股（含 税），不以公积金转增股本。 ...

Section I Important Notes, Table of Contents, and Definitions [Important Notes](index=2&type=section&id=Important%20Notes) The Board, supervisors, and senior management guarantee the semi-annual report's truthfulness, accuracy, and completeness, with financial statements also certified, noting future plans are not commitments and no dividends are planned - 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[3](index=3&type=chunk) - The company's responsible person, head of accounting, and head of accounting department declare the financial report is true, accurate, and complete[3](index=3&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This report's clear table of contents lists nine main chapters, covering company profile, management discussion, governance, significant matters, share changes, bonds, financial reports, and other data - The report's table of contents includes nine main chapters, from company profile to financial reports, forming a complete structure[7](index=7&type=chunk) - The list of reference documents includes original signed and sealed financial statements and publicly disclosed documents[9](index=9&type=chunk)[10](index=10&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section provides definitions for common terms used in the report, including legal regulations, company entities, business products, and reporting periods, ensuring consistent understanding - Definitions cover legal regulations and institutions such as the Company Law, Securities Law, CSRC, and SZSE[12](index=12&type=chunk) - Full names and abbreviations of the company, controlling shareholder, various subsidiaries, and related business entities are clarified[12](index=12&type=chunk) - Core product terms like copper-clad laminate (CCL) and prepreg (PP), as well as time concepts such as reporting period, prior period, beginning of period, and end of period, are defined[12](index=12&type=chunk)[13](index=13&type=chunk) Section II Company Profile and Key Financial Indicators [I. Company Profile](index=7&type=section&id=I.%20Company%20Profile) Xianfeng Holdings Co., Ltd. (stock code 002141) maintains stable legal representation by Han Taozi, with no changes in its registered or office addresses during the reporting period - The company's stock abbreviation is Xianfeng Holdings, stock code **002141**, listed on the Shenzhen Stock Exchange[15](index=15&type=chunk) - The company's legal representative is Han Taozi, and the Board Secretary is Liang Danni[15](index=15&type=chunk)[16](index=16&type=chunk) - The company's registered address, office address, website, email, and information disclosure location remained unchanged during the reporting period[17](index=17&type=chunk)[18](index=18&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=8&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue and net profit attributable to shareholders significantly increased, driven by new CCL and feed businesses and non-recurring gains from property disposal Key Accounting Data and Financial Indicators (Current Period vs. Prior Year Period) | Indicator | Current Period (yuan) | Prior Year Period (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 613,459,416.88 | 28,559,136.50 | 2,048.03% | | Net Profit Attributable to Listed Company Shareholders | 40,186,876.40 | 5,443,748.22 | 638.22% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-recurring Gains/Losses) | -7,236,591.98 | -15,403,169.30 | 53.02% | | Net Cash Flow from Operating Activities | -51,272,010.79 | -17,972,097.65 | -185.29% | | Basic Earnings Per Share (yuan/share) | 0.0391 | 0.0048 | 714.58% | | Diluted Earnings Per Share (yuan/share) | 0.0391 | 0.0048 | 714.58% | | Weighted Average Return on Net Assets | 4.82% | 0.53% | 4.29% | | **Period-End Indicators** | **Current Period-End (yuan)** | **Prior Year-End (yuan)** | **Change (%)** | | Total Assets | 1,246,510,268.15 | 1,470,823,932.83 | -15.25% | | Net Assets Attributable to Listed Company Shareholders | 831,757,933.97 | 820,299,187.95 | 1.40% | [VI. Non-recurring Gains and Losses Items and Amounts](index=8&type=section&id=VI.%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's non-recurring gains and losses totaled **47.42 million yuan**, primarily from the disposal of non-current assets, significantly impacting current net profit Non-recurring Gains and Losses Items and Amounts | Item | Amount (yuan) | Explanation | | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets | 49,076,282.78 | Mainly due to the completion of transfer of Zhuhai factory land | | Government grants recognized in current profit or loss | 811,887.20 | | | Gains or losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and from disposal of financial assets and liabilities | 63,225.11 | | | Fund occupation fees charged to non-financial enterprises recognized in current profit or loss | -374,751.24 | | | Other non-operating income and expenses apart from the above | -3,733.33 | | | Less: Income tax impact | 794,123.69 | | | Minority interest impact (after tax) | 1,355,318.45 | | | **Total** | **47,423,468.38** | | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring ones[25](index=25&type=chunk) Section III Management Discussion and Analysis [I. Main Businesses During the Reporting Period](index=10&type=section&id=I.%20Main%20Businesses%20During%20the%20Reporting%20Period) In H1 2025, the company achieved net profit growth through property disposal, with increased revenue in copper-clad laminates, declining sales in veterinary vaccines, and losses in feed business - In H1 2025, the company's net profit attributable to listed company shareholders was **40.1869 million yuan**, primarily due to non-recurring gains of approximately **44.5263 million yuan** from property disposal[27](index=27&type=chunk) - The copper-clad laminate business achieved operating revenue of **366.8148 million yuan** and net profit of **0.2796 million yuan**, with an improved gross margin; plans for H2 include increasing capacity utilization, optimizing cost management, improving product yield, and accelerating new product R&D[27](index=27&type=chunk)[28](index=28&type=chunk) - The veterinary vaccine business saw increased sales volume but decreased sales revenue, achieving **26.0214 million yuan** in sales revenue and a net loss of **-2.7688 million yuan**, primarily benefiting from technical transfer fee income and cost reduction measures[29](index=29&type=chunk) - The feed business, affected by trade protection measures and fluctuating raw material procurement costs, failed to meet its profitability targets, achieving operating revenue of **217.1870 million yuan** and a net loss of **-1.9509 million yuan**[29](index=29&type=chunk) [1. Copper-Clad Laminate Business in Electronic Information Industry](index=10&type=section&id=1.%20Copper-Clad%20Laminate%20Business%20in%20Electronic%20Information%20Industry) The copper-clad laminate business benefits from the recovery of consumer electronics and automotive electronics, as well as growing AI demand, with products upgrading towards high-frequency, high-speed, and high-thermal conductivity - Copper-clad laminates, as core substrates for printed circuit boards, serve downstream sectors including consumer electronics, automotive electronics, and communications, benefiting from the recovery of consumer electronics, intelligent development of new energy vehicles, and strong AI-related demand[31](index=31&type=chunk) - Gaoshuo Hangyu's main products include conventional FR-4/CEM-3 series and lead-free/halogen-free FR-4 series copper-clad laminates, with an annual production capacity of nearly **9.5 million square meters**, positioning it as a medium-sized player in the industry[31](index=31&type=chunk) - The production model is primarily "production-to-order," the sales model is direct sales, the procurement model is "procurement-to-production + safety stock," and the R&D model emphasizes collaboration with upstream and downstream partners to accelerate new product development[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) [2. Veterinary Vaccine and Animal Nutrition (Feed) Businesses in Animal Health Sector](index=11&type=section&id=2.%20Veterinary%20Vaccine%20and%20Animal%20Nutrition%20(Feed)%20Businesses%20in%20Animal%20Health%20Sector) The veterinary vaccine business faces intense industry competition, with Shiji Bio focusing on pig live/inactivated vaccines and R&D innovation, while the feed business, producing full-price pig feed, faces increased costs due to trade protection - The veterinary vaccine business faces risks from industry oversupply, price pressure from pig farming enterprises, industry integration, and localization of imported vaccines, leading to price wars and declining market demand[34](index=34&type=chunk) - Shiji Bio's main products are live/inactivated pig vaccines, offering professional technical services such as on-site veterinary audits, disease diagnosis, and vaccine quality assessment[35](index=35&type=chunk) - Kangxiyuan's main product is full-price compound pig feed, utilizing large-scale, intelligent production methods including pre-grinding, multi-stage impurity removal, full maturation, and multi-point automatic control, primarily through direct sales[36](index=36&type=chunk)[37](index=37&type=chunk) [II. Analysis of Core Competencies](index=11&type=section&id=II.%20Analysis%20of%20Core%20Competencies) The company's core competencies include flexible production and experienced teams in copper-clad laminates, strong R&D, quality, service, and brand in veterinary vaccines, and advanced equipment, efficient management, and technical expertise in animal nutrition - The copper-clad laminate business (Gaoshuo Hangyu) possesses rapid and flexible production resource allocation and large-scale delivery capabilities, ensures product quality through ISO9001, ISO14001, and ISO45001 certifications, and has an experienced management and production team[38](index=38&type=chunk)[39](index=39&type=chunk) - The veterinary vaccine business (Shiji Bio) boasts R&D advantages with a national-level academician (expert) workstation and provincial technology center, has obtained **9** new veterinary drug registration certificates and **33** invention patents, and has formed an integrated "production-education-research-application" innovation system[39](index=39&type=chunk)[40](index=40&type=chunk) - Shiji Bio operates **3** GMP-certified production workshops and **8** vaccine antigen production lines, offering a full product line of pig vaccines (excluding FMD vaccine), and is committed to building a brand as a "vaccine process expert & disease solution expert"[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - The animal nutrition (feed) business (Kangxiyuan) features advanced production equipment with an annual design capacity of **240,000 tons** and a full maturation process, an experienced core management team, and technical expertise in customized feed formulations[44](index=44&type=chunk)[45](index=45&type=chunk) [III. Analysis of Main Business](index=13&type=section&id=III.%20Analysis%20of%20Main%20Business) During the reporting period, the company's main business revenue surged by **2048.03%** year-on-year, primarily due to the addition of copper-clad laminate and feed businesses, which became major revenue sources Key Financial Data Year-on-Year Changes | Indicator | Current Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 613,459,416.88 | 28,559,136.50 | 2,048.03% | Mainly due to increased revenue from new copper-clad laminate and feed businesses in this period | | Operating Cost | 567,343,556.84 | 10,908,999.84 | 5,100.69% | Mainly due to increased revenue from new copper-clad laminate and feed businesses in this period | | Selling Expenses | 10,521,581.79 | 7,538,546.49 | 39.57% | Mainly due to the new copper-clad laminate business in this period | | Administrative Expenses | 23,498,305.14 | 18,895,807.46 | 24.36% | Mainly due to the new copper-clad laminate and feed businesses in this period | | Financial Expenses | -1,139,196.98 | 1,170,116.26 | -197.36% | Mainly due to the decrease in the USD to RMB exchange rate in this period compared to the beginning of the period, while it increased in the prior year period | | R&D Investment | 14,950,988.60 | 5,832,898.92 | 156.32% | Mainly due to the new copper-clad laminate business in this period | | Net Cash Flow from Operating Activities | -51,272,010.79 | -17,972,097.65 | -185.29% | Mainly due to the longer accounts receivable turnover period than accounts payable for subsidiary Gaoshuo Hangyu in this period | | Net Cash Flow from Investing Activities | 75,931,149.93 | 40,401,327.79 | 87.94% | Mainly due to a larger area of Zhuhai property sale completed in this period compared to the prior period, resulting in higher investment recovery | | Net Cash Flow from Financing Activities | -37,391,851.89 | -105,658,449.53 | 64.61% | Mainly due to lower share repurchase amount in this period compared to the prior period | | Net Increase in Cash and Cash Equivalents | -12,763,402.80 | -82,760,098.02 | 84.58% | Mainly due to the recovery of the final payment for property sale in this period and a larger share repurchase amount in the prior period | | Gains from Asset Disposal | 44,523,099.33 | 6,280,404.28 | 608.92% | Mainly due to the completion of transfer of Zhuhai factory land | Operating Revenue Composition (by Industry and Product) | Category | Item | Amount (yuan) | Proportion of Operating Revenue (%) | Prior Year Period Amount (yuan) | Prior Year Period Proportion (%) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | Electronic Materials | 352,625,601.83 | 57.48% | - | - | - | | | Feed | 217,150,260.55 | 35.40% | - | - | - | | | Biological Products | 19,618,572.81 | 3.20% | 21,059,732.01 | 73.74% | -6.84% | | | Other | 24,064,981.69 | 3.92% | 7,499,404.49 | 26.26% | 220.89% | | **By Product** | Copper-clad Laminates & PP | 352,625,601.83 | 57.48% | - | - | - | | | Feed | 217,150,260.55 | 35.40% | - | - | - | | | Pig Vaccines | 19,618,572.81 | 3.20% | 21,059,732.01 | 73.74% | -6.84% | | | Other | 24,064,981.69 | 3.92% | 7,499,404.49 | 26.26% | 220.89% | Main Business Data (Adjusted Basis) | Category | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin (%) | Year-on-Year Change in Operating Revenue (%) | Year-on-Year Change in Operating Cost (%) | Year-on-Year Change in Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | | | | | | | | Electronic Materials | 352,625,601.83 | 322,972,253.06 | 8.41% | - | - | - | | Feed | 217,150,260.55 | 217,729,608.47 | -0.27% | - | - | - | | Biological Products | 19,618,572.81 | 13,546,276.35 | 30.95% | -6.84% | 36.57% | -21.95% | | **By Product** | | | | | | | | Copper-clad Laminates & PP | 352,625,601.83 | 322,972,253.06 | 8.41% | - | - | - | | Feed | 217,150,260.55 | 217,729,608.47 | -0.27% | - | - | - | | Pig Vaccines | 19,618,572.81 | 13,546,276.35 | 30.95% | -6.84% | 36.57% | -21.95% | | **By Region** | | | | | | | | South China | 103,681,862.45 | 94,916,254.92 | 8.45% | 833.85% | 4,206.21% | -71.70% | | East China | 184,612,832.09 | 167,275,545.87 | 9.39% | 2,164.40% | 4,667.41% | -47.57% | | Southwest China | 253,765,923.40 | 250,807,206.79 | 1.17% | 12,911.73% | 23,580.53% | -44.52% | | Other Regions (incl. Northwest) | 47,333,817.25 | 41,249,130.30 | 12.85% | 655.40% | 1,107.62% | -32.64% | [IV. Analysis of Non-Main Business](index=14&type=section&id=IV.%20Analysis%20of%20Non-Main%20Business) During the reporting period, non-main business activities impacted total profit, with negative investment income, positive fair value changes, and minor effects from asset impairment and non-operating income/expenses Impact of Non-Main Business on Total Profit | Item | Amount (yuan) | Proportion of Total Profit (%) | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -139,955.99 | -0.35% | Mainly due to losses from associate companies in this period | No | | Gains or Losses from Fair Value Changes | 27,057.80 | 0.07% | Mainly due to gains recognized from wealth management products held | No | | Asset Impairment | -765,399.21 | -1.91% | Mainly due to provision for inventory depreciation by Gaoshuo Hangyu | No | | Non-operating Income | 0.08 | 0.00% | | No | | Non-operating Expenses | 3,733.41 | 0.01% | | No | [V. Analysis of Assets and Liabilities](index=15&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, total assets decreased by **15.25%**, primarily due to reduced monetary funds and notes payable, while accounts receivable and financing receivables significantly increased Significant Changes in Asset Composition | Item | Current Period-End Amount (yuan) | Proportion of Total Assets (%) | Prior Year-End Amount (yuan) | Proportion of Total Assets (%) | Change in Proportion (%) | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 133,980,987.68 | 10.75% | 402,282,535.43 | 27.35% | -16.60% | Mainly due to maturity and deduction of half-year bank acceptance bills issued by subsidiary Gaoshuo Hangyu | | Accounts Receivable | 480,583,930.69 | 38.55% | 405,426,837.61 | 27.56% | 10.99% | Mainly due to Gaoshuo Hangyu's payment terms in this period | | Inventories | 96,417,030.02 | 7.73% | 138,618,730.51 | 9.42% | -1.69% | Reduced inventory stocking in this period | | Long-term Equity Investments | 132,935,855.64 | 10.66% | 133,111,978.94 | 9.05% | 1.61% | Mainly due to losses from associate companies in this period | | Fixed Assets | 125,038,011.68 | 10.03% | 132,407,542.01 | 9.00% | 1.03% | | | Construction in Progress | 481,736.57 | 0.04% | 19,524.27 | 0.00% | 0.04% | | | Right-of-Use Assets | 56,789,105.37 | 4.56% | 59,487,647.69 | 4.04% | 0.52% | | | Short-term Borrowings | 14,013,425.00 | 1.12% | 11,009,708.33 | 0.75% | 0.37% | Mainly due to new bank borrowings by subsidiary Shiji Bio in this period | | Contract Liabilities | 5,057,248.55 | 0.41% | 9,275,920.19 | 0.63% | -0.22% | Due to delivery by Chengdu Shiji in this period | | Lease Liabilities | 34,032,651.02 | 2.73% | 36,055,590.12 | 2.45% | 0.28% | | | Receivables Financing | 11,027,054.69 | 0.88% | 185,045.70 | 0.01% | 0.87% | Mainly due to reclassification from transferring bank acceptance bills received from customers | | Assets Held for Sale | - | - | 53,118,186.78 | 3.61% | -3.61% | Mainly due to the completion of transfer of Zhuhai factory land | | Notes Payable | 60,948,634.21 | 4.89% | 317,392,435.75 | 21.58% | -16.69% | Mainly due to maturity and payment of bank acceptance bills issued by Gaoshuo Hangyu | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (yuan) | Fair Value Change Gains/Losses in Current Period (yuan) | Purchases in Current Period (yuan) | Sales in Current Period (yuan) | Other Changes (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 6,632,884.40 | 63,225.11 | 68,550,000.00 | 67,314,667.79 | - | 7,931,441.72 | | Other Equity Instrument Investments | 10,000,000.00 | - | - | - | -10,000,000.00 | 0.00 | | **Total** | **16,632,884.40** | **63,225.11** | **68,550,000.00** | **67,314,667.79** | **-10,000,000.00** | **7,931,441.72** | Restricted Asset Rights as of the End of the Reporting Period | Item | Period-End Book Value (yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 6,000.00 | ETC deposit | | Monetary Funds | 2,000,000.00 | Chengdu Shiji provided pledged deposits to the bank for bank loan application | | Monetary Funds | 1,100,689.47 | Litigation frozen funds | | Monetary Funds | 60,948,634.21 | Bank acceptance bill margin | | Monetary Funds | 3,872.35 | Custody special account | | Fixed Assets | 38,664,859.36 | Chengdu Shiji mortgaged its own property to a guarantee company for bank loan application | | Intangible Assets | 9,828,961.09 | Chengdu Shiji mortgaged its own land use rights to a guarantee company for bank loan application | | **Total** | **112,553,016.48** | | [VI. Analysis of Investment Status](index=17&type=section&id=VI.%20Analysis%20of%20Investment%20Status) During the reporting period, the company's total investment decreased by **98.49%** year-on-year, with no significant equity, non-equity, securities, or derivative investments, and no use of raised funds Investment Amount Changes During the Reporting Period | Indicator | Investment Amount in Reporting Period (yuan) | Investment Amount in Prior Year Period (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Investment Amount | 170,000.00 | 11,270,610.60 | -98.49% | - The company had no significant equity investments, non-equity investments, securities investments, or derivative investments during the reporting period[60](index=60&type=chunk)[61](index=61&type=chunk) - The company had no use of raised funds during the reporting period[62](index=62&type=chunk) [VII. Significant Asset and Equity Sales](index=17&type=section&id=VII.%20Significant%20Asset%20and%20Equity%20Sales) During the reporting period, the company completed the sale of its Zhuhai factory land and buildings for **142 million yuan**, contributing **44.53 million yuan** to net profit, representing **113.24%** of total net profit Significant Asset Sales | Counterparty | Assets Sold | Sale Date | Transaction Price (million yuan) | Net Profit Contributed by Asset to Listed Company from Beginning of Period to Sale Date (million yuan) | Impact of Sale on Company | Proportion of Net Profit Contributed by Asset Sale to Total Net Profit (%) | Asset Sale Pricing Principle | Is it a Related Party Transaction | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chenxi Industrial Investment (Zhuhai Hengqin) Co., Ltd. | Land use rights and attached buildings in Sanzao Science and Technology Industrial Park, Jinwan District, Zhuhai City | August 13, 2021 | 14,200 | 4,452.63 | Sale completed, increased current period net profit by **44.5263 million yuan** | 113.24% | Negotiated pricing based on market value confirmed in appraisal report | No | - The property rights and creditor-debtor relationships of the involved assets have all been transferred and implemented as planned[63](index=63&type=chunk) - The company had no significant equity sales during the reporting period[64](index=64&type=chunk) [VIII. Analysis of Major Holding and Associate Companies](index=19&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Associate%20Companies) The company's major holding subsidiaries, Gaoshuo Hangyu, Chengdu Shiji, and Kangxiyuan, operate copper-clad laminate, veterinary vaccine, and feed businesses respectively, with Gaoshuo Hangyu profitable and the others incurring losses Major Subsidiary Financial Information | Company Name | Company Type | Main Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Gaoshuo Hangyu | Subsidiary | Copper-clad laminate business | 20,000,000.00 | 737,893,642.16 | 11,979,466.26 | 366,814,837.79 | 112,213.98 | 279,595.26 | | Chengdu Shiji | Subsidiary | Veterinary vaccine business | 156,789,000.00 | 218,269,945.85 | 164,126,337.08 | 26,021,410.58 | -1,870,154.43 | -2,768,839.95 | | Kangxiyuan | Subsidiary | Feed business | 5,000,000.00 | 74,147,363.52 | 1,627,197.31 | 217,186,958.20 | -1,950,867.55 | -1,950,867.55 | - During the reporting period, the company acquired Fengshuo Nan through auction, recognizing goodwill of **395,161.80 yuan**[67](index=67&type=chunk) [IX. Structured Entities Controlled by the Company](index=19&type=section&id=IX.%20Structured%20Entities%20Controlled%20by%20the%20Company) The company includes Fengying Ruixin in its consolidated scope because its establishment aligns with company strategy, and the company bears most investment risks and enjoys significant variable returns - Fengying Ruixin is a structured entity included in the company's consolidated scope[68](index=68&type=chunk) - The company bears most of the investment risks and enjoys significant variable returns from Fengying Ruixin's investments, effectively having the power to direct the fund's investment activities[68](index=68&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=20&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces risks from raw material price fluctuations, credit exposure, and market competition, addressed by strengthening market analysis, optimizing the supply chain, controlling costs, screening quality customers, and accelerating R&D - **Raw material price fluctuation risk**: The costs of copper-clad laminate and feed businesses are highly sensitive to raw material prices; the company plans to strengthen market analysis, expand procurement channels, optimize the supply chain, and sign long-term agreements to lock in costs[69](index=69&type=chunk) - **Credit risk**: Accounts receivable in the copper-clad laminate business are gradually increasing; the company will prioritize customer and accounts receivable management, screen high-quality customers, implement prepayments or shorten payment terms, and establish a dynamic credit rating adjustment mechanism[70](index=70&type=chunk) - **Market risk**: The veterinary vaccine business continues to see declining performance, prompting the company to focus on R&D of distinctive products; the copper-clad laminate business faces technological iteration and intensified market competition, requiring the company to implement differentiated competitive strategies and continuously monitor market developments[71](index=71&type=chunk) Section IV Corporate Governance, Environment, and Society [I. Changes in Directors, Supervisors, and Senior Management](index=21&type=section&id=I.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, no changes occurred in the company's directors, supervisors, or senior management, maintaining the stability of the management team - There were no changes in the company's directors, supervisors, and senior management during the reporting period; specific details can be found in the 2024 Annual Report[74](index=74&type=chunk) [II. Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period](index=21&type=section&id=II.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20in%20This%20Reporting%20Period) The company plans no cash dividends, bonus shares, or capital reserve conversions to 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[75](index=75&type=chunk) [III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=21&type=section&id=III.%20Implementation%20of%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) During the reporting period, no equity incentive plans, employee stock ownership plans, or other employee incentive measures were implemented - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[76](index=76&type=chunk) [IV. Environmental Information Disclosure](index=21&type=section&id=IV.%20Environmental%20Information%20Disclosure) The company and its major subsidiary, Chengdu Shiji Bio-pharmaceutical Co., Ltd., are listed as legally required environmental information disclosers and have complied with disclosure regulations - The listed company and its major subsidiary, Chengdu Shiji Bio-pharmaceutical Co., Ltd., are included in the list of enterprises required to disclose environmental information by law[77](index=77&type=chunk) - Chengdu Shiji has disclosed environmental information on the national pollutant discharge permit management information platform and the enterprise environmental information disclosure system (Sichuan)[77](index=77&type=chunk) [V. Social Responsibility](index=21&type=section&id=V.%20Social%20Responsibility) The company actively fulfills its corporate social responsibilities, including protecting shareholder and creditor rights, safeguarding employee interests, maintaining customer and supplier relationships, practicing green development, and participating in social welfare - The company adheres to prudent and compliant operations, safeguarding the legitimate rights and interests of shareholders and creditors[78](index=78&type=chunk) - The company completed its second share repurchase plan, using **30.020188 million yuan** of its own funds to repurchase **13,964,923** shares, which will be used for equity incentives to protect employee rights and interests[78](index=78&type=chunk) - The company actively organizes customer management, establishes good cooperative relationships with suppliers, practices green development, and prioritizes environmental protection and clean production[79](index=79&type=chunk) - The company strictly pays taxes according to law, actively cooperates with national policies, and continuously participates in social welfare activities, such as sponsoring university students in Ganzi County[80](index=80&type=chunk) Section V Significant Matters [I. Commitments Fulfilled or Overdue by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period](index=23&type=section&id=I.%20Commitments%20Fulfilled%20or%20Overdue%20by%20Controlling%20Shareholder%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20During%20and%20as%20of%20the%20End%20of%20the%20Reporting%20Period) During the reporting period, no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company were fulfilled or overdue - During the reporting period, there were no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company that were fulfilled or overdue as of the end of the reporting period[82](index=82&type=chunk) [II. Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties](index=23&type=section&id=II.%20Non-Operating%20Funds%20Occupied%20by%20Controlling%20Shareholder%20and%20Other%20Related%20Parties) During the reporting period, no non-operating funds were occupied by the controlling shareholder or other related parties of the listed company - During the reporting period, there were no non-operating funds occupied by the controlling shareholder or other related parties of the listed company[83](index=83&type=chunk) [III. Irregular External Guarantees](index=23&type=section&id=III.%20Irregular%20External%20Guarantees) No irregular external guarantees occurred during the reporting period - There were no irregular external guarantees by the company during the reporting period[84](index=84&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=23&type=section&id=IV.%20Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual financial report was unaudited - The company's semi-annual report was unaudited[85](index=85&type=chunk) [VII. Bankruptcy and Reorganization Matters](index=23&type=section&id=VII.%20Bankruptcy%20and%20Reorganization%20Matters) No bankruptcy or reorganization matters occurred for the company during the reporting period - The company had no bankruptcy or reorganization matters during the reporting period[86](index=86&type=chunk) [VIII. Litigation Matters](index=23&type=section&id=VIII.%20Litigation%20Matters) No major litigation or arbitration occurred during the reporting period, but several other lawsuits are ongoing, including a claim against Huizhou New Energy as a guarantor, multiple sales contract disputes, and a lease contract arbitration - The company had no major litigation or arbitration matters during this reporting period[87](index=87&type=chunk) Other Litigation Matters | Basic Information of Litigation (Arbitration) | Amount Involved (million yuan) | Is a Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Status of Litigation (Arbitration) Judgment Enforcement | | :--- | :--- | :--- | :--- | :--- | :--- | | Other litigation from previous years not meeting the disclosure standard for major litigation (company or subsidiary as plaintiff/applicant, results-based amount included in amount involved) | 8,723.55 | No | The company, as one of the guarantors, first fulfilled its joint and several liability, and subsequently sued the debtor, Huizhou New Energy, as plaintiff | Huizhou New Energy should repay the amount paid by the company on its behalf, plus interest | Settlement reached, Huizhou New Energy has partially repaid, the company has applied for enforcement for the unpaid portion of **56.9769 million yuan** | | Other litigation in the last 12 months not meeting the disclosure standard for major litigation (company or subsidiary as plaintiff/applicant, amount standard as above) | 1,754.96 | No | 1 investment contract dispute; 5 sales contract disputes | Investment contract dispute settled; 3 sales contract disputes settled; 1 sales contract dispute first-instance judgment in favor of subsidiary; 1 sales contract dispute not yet heard | Opposing party in investment contract dispute has fulfilled settlement agreement, company has withdrawn lawsuit; defendants in 3 settled sales contract disputes are fulfilling settlement agreements normally; for 1 sales contract dispute with first-instance judgment, subsidiary has applied for enforcement, defendant is in bankruptcy application process | | Other litigation/arbitration in the last 12 months not meeting the disclosure standard for major litigation (company or subsidiary as defendant/respondent, amount standard as above) | 2,252.99 | No, if ruled, included in accounts payable | 1 arbitration initiated by subsidiary due to lease contract dispute and counter-arbitration; 1 case where company was required to bear joint and several liability for unpaid capital contributions by other shareholders; 1 labor dispute | Lease contract dispute arbitration ruled, subsidiary ordered to pay rent, taxes, liquidated damages, and arbitration fees totaling **2.5722 million yuan**; case for joint and several liability for unpaid capital contributions first-instance judgment ruled company not liable; labor dispute heard, not yet ruled | As of the end of the reporting period, the subsidiary has not yet enforced the lease contract dispute arbitration result | [IX. Penalties and Rectification](index=24&type=section&id=IX.%20Penalties%20and%20Rectification) The company and several senior executives received administrative penalties and disciplinary actions from the China Securities Regulatory Commission and Shenzhen Stock Exchange for false statements in 2023 quarterly reports, resulting in a **4 million yuan** fine for the company Penalties and Rectification | Name/Entity | Type | Reason | Type of Investigation/Penalty | Conclusion (if any) | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Xianfeng Holdings, Han Taozi, Zhang Yangyu, Ding Chen, Xie Wenbin, Huang Weihua | Other | False statements in 2023 Q1, H1, and Q3 reports | Investigation or administrative penalty by CSRC, disciplinary action by stock exchange | Guangdong Securities Regulatory Bureau issued a warning to Xianfeng Holdings and fined it **4 million yuan**; issued warnings to Han Taozi and Zhang Yangyu, and fined them **1.8 million yuan** each; issued warnings to Ding Chen and Xie Wenbin, and fined them **1.2 million yuan** each; issued a warning to Huang Weihua and fined him **1 million yuan**. SZSE publicly censured Xianfeng Holdings, Han Taozi, Zhang Yangyu, Ding Chen, Xie Wenbin, and Huang Weihua | June 14, 2025 | "Announcement on Receiving Administrative Penalty Decision" (Announcement No.: 2025-051) on Juchao Information Network (www.cninfo.com.cn) | - The company has corrected the relevant matters[516](index=516&type=chunk) [X. Integrity Status of the Company, Controlling Shareholder, and Actual Controller](index=24&type=section&id=X.%20Integrity%20Status%20of%20the%20Company%2C%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) The company's controlling shareholder, Xianfeng Group, and its concerted parties are undergoing bankruptcy liquidation due to debt disputes, leading to the public auction of their shares and a change in the largest shareholder, with the new largest shareholder waiving voting rights - The company's controlling shareholder, Xianfeng Group, and its concerted party, Guangdong Xianfeng, had their shares in the company frozen due to debt disputes and were subsequently ruled by the court to undergo bankruptcy liquidation[90](index=90&type=chunk) - The shares of the company held by Xianfeng Group and Guangdong Xianfeng were successively publicly auctioned and acquired by multiple bidders[90](index=90&type=chunk) - Shenzhen Ansheng Zhihe Investment Partnership (Limited Partnership) acquired **19.18%** of the company's equity through judicial auction and committed to unconditionally and irrevocably waive all voting rights for 18 months after the acquisition is completed[120](index=120&type=chunk) [XI. Significant Related Party Transactions](index=25&type=section&id=XI.%20Significant%20Related%20Party%20Transactions) During the reporting period, the company engaged in routine fund management fee transactions of **2.17 million yuan** with related party Fengying Fund, within approved limits, with no other significant related party transactions Related Party Transactions Related to Routine Operations | Related Party | Related Party Relationship | Type of Related Party Transaction | Content of Related Party Transaction | Pricing Principle for Related Party Transaction | Related Party Transaction Price (yuan) | Related Party Transaction Amount (million yuan) | Proportion of Similar Transactions (%) | Approved Transaction Limit (million yuan) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Fengying Fund | Receiving services from ultimate controlling party | Receiving services | Fund management fees | Market pricing principle | 2,167,760.00 | 2.17 | 100.00% | 5 | No | - The company had no related party transactions involving the acquisition or disposal of assets or equity during the reporting period[93](index=93&type=chunk) - The company had no related party transactions involving joint external investments during the reporting period[94](index=94&type=chunk) - The company had no related party creditor-debtor relationships during the reporting period[95](index=95&type=chunk) [XII. Significant Contracts and Their Performance](index=26&type=section&id=XII.%20Significant%20Contracts%20and%20Their%20Performance) No trusteeship or contracting situations occurred. The company leases offices, factories, and production lines, with significant lease contracts for Gaoshuo Hangyu and Kangxiyuan impacting profit, and provided guarantees for subsidiaries and undertook wealth management without principal loss - The company had no trusteeship or contracting situations during the reporting period[100](index=100&type=chunk)[101](index=101&type=chunk) - The company leases daily offices, factory buildings, and production lines, including a lease contract between the parent company and Dongguan Yichuang Planning Co., Ltd. for office space totaling **9.4576 million yuan**; a lease contract between Gaoshuo Hangyu and Jiangxi Hangyu New Material Co., Ltd. for factory buildings and production lines totaling **64.80 million yuan**; and a lease contract between Kangxiyuan and Zunyi Riquan Feed Biotechnology Co., Ltd. for factory buildings and production lines totaling **9.90 million yuan**[102](index=102&type=chunk) Lease Projects Generating Profit or Loss Exceeding 10% of the Company's Total Profit in the Reporting Period | Lessor Name | Lessee Name | Leased Asset Status | Amount Involved in Leased Asset (million yuan) | Lease Start Date | Lease End Date | Lease Income (million yuan) | Basis for Determining Lease Income | Impact of Lease Income on Company | Is it a Related Party Transaction | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangxi Hangyu New Material Co., Ltd. | Gaoshuo Hangyu | Factory buildings (including production workshops, office buildings, and factory open space) and production lines located in Yuanzhou District, Yichun City | 5,481.92 | September 26, 2024 | September 30, 2027 | -999.21 | Accounting standards | Reduced net profit attributable to parent company by **6.9945 million yuan** | No related party relationship | Company Guarantees for Subsidiaries | Name of Guaranteed Party | Disclosure Date of Guarantee Limit Announcement | Guarantee Limit (million yuan) | Actual Occurrence Date | Actual Guarantee Amount (million yuan) | Type of Guarantee | Guarantee Period | Fulfilled | Is it a Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chengdu Shiji | June 12, 2024 | 2,000 | August 16, 2024 | 2,000 | Joint and several liability guarantee | 3 years | No | No | | Gaoshuo Hangyu | April 29, 2025 | 10,000 | May 30, 2025 | 1,000 | Joint and several liability guarantee | 2 years | No | No | | Gaoshuo Hangyu | April 29, 2025 | 10,000 | June 25, 2025 | 2,000 | Joint and several liability guarantee | 3 years | No | No | | **Total Approved Guarantee Limit for Subsidiaries in Reporting Period** | | **10,000** | | **Total Actual Guarantees for Subsidiaries in Reporting Period** | | **3,000** | | | | **Total Approved Guarantee Limit for Subsidiaries as of End of Reporting Period** | | **12,000** | | **Total Actual Guarantee Balance for Subsidiaries as of End of Reporting Period** | | **5,000** | | | | **Proportion of Total Actual Guarantees to Company's Net Assets** | | | | | | | | **6.01%** | Entrusted Wealth Management | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management Occurred (million yuan) | Unmatured Balance (million yuan) | Overdue Unrecovered Amount (million yuan) | Impairment Provision for Overdue Unrecovered Wealth Management (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Brokerage wealth management products | Own funds | 2,632.42 | 101.08 | 0 | 0 | | Bank wealth management products | Own funds | 4,325 | 125.29 | 0 | 0 | | Other types | Own funds | 395.69 | 469.45 | 0 | 0 | | **Total** | | **7,353.11** | **695.82** | **0** | **0** | - The company had no other significant contracts during the reporting period[111](index=111&type=chunk) [XIII. Explanation of Other Significant Matters](index=29&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) During the reporting period, the company disclosed multiple important temporary reports, including changes in office address, progress on land use rights transfer, share auction progress, subsidiary guarantees, share buyback adjustments, and delisting risk warning removal - Important matters disclosed by the company during the reporting period include changes in office address, progress on the transfer of land use rights and attached buildings, progress on the public auction of company shares, provision of guarantees to subsidiaries and related progress, adjustment and completion of the share repurchase price cap for equity incentives, and the removal of delisting risk warnings and other risk warnings, along with trading suspension and resumption[112](index=112&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=29&type=section&id=XIV.%20Significant%20Matters%20of%20Company%20Subsidiaries) No significant matters concerning company subsidiaries occurred during the reporting period - The company had no significant matters concerning subsidiaries during the reporting period[113](index=113&type=chunk) Section VI Share Changes and Shareholder Information [I. Share Change Status](index=30&type=section&id=I.%20Share%20Change%20Status) During the reporting period, the company repurchased **12.62 million shares** via centralized bidding for equity incentives at an average price of **2.15 yuan/share**, totaling **30.02 million yuan**, increasing restricted shares and decreasing unrestricted shares, with no change in total shares Share Change Status | Item | Quantity Before This Change (shares) | Proportion Before This Change (%) | Net Increase/Decrease in This Change (shares) | Quantity After This Change (shares) | Proportion After This Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 1,342,923 | 0.13% | 12,622,000 | 13,964,923 | 1.35% | | Of which: Other Domestic Shares | 1,342,923 | 0.13% | 12,622,000 | 13,964,923 | 1.35% | | II. Unrestricted Shares | 1,031,592,875 | 99.87% | -12,622,000 | 1,018,970,875 | 98.65% | | Of which: RMB Ordinary Shares | 1,031,592,875 | 99.87% | -12,622,000 | 1,018,970,875 | 98.65% | | III. Total Shares | 1,032,935,798 | 100.00% | 0 | 1,032,935,798 | 100.00% | - During the reporting period, the company used its own funds to repurchase company shares through centralized bidding for equity incentives, accumulating **13,964,923** shares, accounting for **1.35%** of the total share capital, with a transaction amount of **30.020188 million yuan** and an average repurchase price of **2.15 yuan/share**[116](index=116&type=chunk)[119](index=119&type=chunk) - The share changes had no significant impact on the company's basic and diluted earnings per share, or net assets per share attributable to common shareholders for the most recent year and period[119](index=119&type=chunk) [III. Number of Shareholders and Shareholding Status](index=32&type=section&id=III.%20Number%20of%20Shareholders%20and%20Shareholding%20Status) As of the end of the reporting period, there were **41,219** common shareholders. Shenzhen Ansheng Zhihe Investment Partnership (Limited Partnership) is the largest shareholder with **19.18%** and has committed to waive voting rights - The total number of common shareholders at the end of the reporting period was **41,219**[123](index=123&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 End of Reporting Period (shares) | Change in Shareholding During Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shenzhen Ansheng Zhihe Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 19.18% | 198,140,000 | 0 | 0 | 198,140,000 | Not applicable | 0 | | Xianfeng Holdings Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 11.05% | 114,152,000 | 0 | 0 | 114,152,000 | Pledged | 69,000,000 | | | | | | | | | Frozen | 114,152,000 | | Wei Wei | Domestic Natural Person | 2.73% | 28,240,904 | -578,196 | 0 | 28,240,904 | Not applicable | 0 | | Southern Capital - Bank of Ningbo - Liang Xiongjian | Other | 2.62% | 27,084,228 | 0 | 0 | 27,084,228 | Not applicable | 0 | | Li Tingsheng | Domestic Natural Person | 1.88% | 19,409,300 | 1,002,300 | 0 | 19,409,300 | Not applicable | 0 | | Xiao Qiaodang | Domestic Natural Person | 1.38% | 14,301,300 | 0 | 0 | 14,301,300 | Not applicable | 0 | | Wang Qi | Domestic Natural Person | 1.31% | 13,569,600 | 319,600 | 0 | 13,569,600 | Not applicable | 0 | | Huang Guoliang | Domestic Natural Person | 1.28% | 13,211,600 | 0 | 0 | 13,211,600 | Not applicable | 0 | | Shenzhen Nanshan Private Securities Fund Management Co., Ltd. - Nanshan - Changying Private Securities Investment Fund | Other | 0.97% | 10,000,000 | 8,500,000 | 0 | 10,000,000 | Not applicable | 0 | | Huang Jianliang | Domestic Natural Person | 0.82% | 8,424,900 | 0 | 0 | 8,424,900 | Not applicable | 0 | - Shenzhen Ansheng Zhihe Investment Partnership (Limited Partnership) committed to unconditionally and irrevocably waive all voting rights for the shares it holds for 12 months from the date of registration of the shares under its name[123](index=123&type=chunk) - The company's special securities account for share repurchases holds **13,964,923** shares, accounting for **1.35%** of the total share capital, ranking 7th in shareholding[123](index=123&type=chunk) [IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=33&type=section&id=IV.%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) No changes occurred in the shareholdings of the company's directors, supervisors, or senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period; specific details can be found in the 2024 Annual Report[125](index=125&type=chunk) [V. Changes in Controlling Shareholder or Actual Controller](index=33&type=section&id=V.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) No changes occurred in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[126](index=126&type=chunk) - The company's actual controller did not change during the reporting period[126](index=126&type=chunk) Section VII Bond-Related Information [Bond-Related Information](index=34&type=section&id=Bond-Related%20Information) No bond-related information exists for the company during the reporting period - The company had no bond-related information during the reporting period[129](index=129&type=chunk) Section VIII Financial Report [I. Audit Report](index=35&type=section&id=I.%20Audit%20Report) The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[131](index=131&type=chunk) [II. Financial Statements](index=35&type=section&id=II.%20Financial%20Statements) This section provides the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively presenting the company's financial position, operating results, and cash flow - The financial statements include the consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[132](index=132&type=chunk)[136](index=136&type=chunk)[140](index=140&type=chunk)[142](index=142&type=chunk)[145](index=145&type=chunk)[148](index=148&type=chunk)[150](index=150&type=chunk)[158](index=158&type=chunk) [1. Consolidated Balance Sheet](index=35&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's consolidated total assets were **1.25 billion yuan**, total liabilities **364.91 million yuan**, and total owners' equity **881.60 million yuan** Key Consolidated Balance Sheet Data | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 1,246,510,268.15 | 1,470,823,932.83 | | Total Liabilities | 364,906,202.28 | 599,813,408.35 | | Total Owners' Equity | 881,604,065.87 | 871,010,524.48 | | Total Current Assets | 857,505,832.44 | 1,061,862,289.81 | | Total Non-Current Assets | 389,004,435.71 | 408,961,643.02 | | Total Current Liabilities | 305,090,992.12 | 533,438,830.45 | | Total Non-Current Liabilities | 59,815,210.16 | 66,374,577.90 | [3. Consolidated Income Statement](index=40&type=section&id=3.%20Consolidated%20Income%20Statement) For H1 2025, the company achieved total operating revenue of **613.46 million yuan**, net profit of **39.32 million yuan**, and net profit attributable to parent company shareholders of **40.19 million yuan** Key Consolidated Income Statement Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 613,459,416.88 | 28,559,136.50 | | Total Operating Costs | 616,842,189.30 | 45,831,463.57 | | Operating Profit | 40,026,532.26 | 2,103,956.16 | | Total Profit | 40,022,798.93 | 2,348,986.87 | | Net Profit | 39,321,671.77 | 3,463,573.37 | | Net Profit Attributable to Parent Company Shareholders | 40,186,876.40 | 5,443,748.22 | | Minority Interest Income/Loss | -865,204.63 | -1,980,174.85 | | Basic Earnings Per Share (yuan/share) | 0.0391 | 0.0048 | | Diluted Earnings Per Share (yuan/share) | 0.0391 | 0.0048 | [5. Consolidated Cash Flow Statement](index=42&type=section&id=5.%20Consolidated%20Cash%20Flow%20Statement) For H1 2025, net cash flow from operating activities was **-51.27 million yuan**, from investing activities **75.93 million yuan**, and from financing activities **-37.39 million yuan** Key Consolidated Cash Flow Statement Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -51,272,010.79 | -17,972,097.65 | | Net Cash Flow from Investing Activities | 75,931,149.93 | 40,401,327.79 | | Net Cash Flow from Financing Activities | -37,391,851.89 | -105,658,449.53 | | Net Increase in Cash and Cash Equivalents | -12,763,402.80 | -82,760,098.02 | | Cash and Cash Equivalents at Period-End | 69,595,675.28 | 53,727,348.16 | [III. Company Basic Information](index=53&type=section&id=III.%20Company%20Basic%20Information) Xianfeng Holdings Co., Ltd., established in 2002 with **1.03 billion yuan** registered capital and listed in 2007, engages in equity investment, asset management, copper-clad laminate, feed, and veterinary vaccine businesses, consolidating 20 subsidiaries - Xianfeng Holdings Co., Ltd. was established on October 10, 2002, with a registered capital of **1,032,935,798.00 yuan**, and its shares were listed on the Shenzhen Stock Exchange on July 20, 2007[165](index=165&type=chunk) - The company's main business activities include equity investment, asset management, external investment of enterprise's own funds, R&D, production, and sales of copper-clad laminate, feed, and veterinary vaccine related products, as well as related technical services[165](index=165&type=chunk) - As of the end of the reporting period, a total of **20** subsidiaries were included in the scope of consolidated financial statements, including Guangdong Gaoshuo Technology Co., Ltd., Jiangxi Gaoshuo Hangyu New Material Co., Ltd., and Chengdu Shiji Bio-pharmaceutical Co., Ltd.[166](index=166&type=chunk) [V. Significant Accounting Policies and Estimates](index=53&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's adherence to enterprise accounting standards, accounting period, functional currency, materiality, business combinations, consolidated financial statements, financial instruments, and revenue recognition policies - The company prepares its financial statements in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and "Rules for Information Disclosure by Companies Issuing Securities No. 15" by the China Securities Regulatory Commission[167](index=167&type=chunk) - The company uses a 12-month operating cycle, with RMB as its functional currency, and has evaluated its ability to continue as a going concern[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk) - Significant accounting policies cover various aspects including business combinations, preparation of consolidated financial statements, classification and measurement of financial instruments, fair value changes, expected credit losses for accounts receivable, inventories, long-term equity investments, fixed assets, intangible assets, and revenue recognition[175](index=175&type=chunk)[180](index=180&type=chunk)[191](index=191&type=chunk)[202](index=202&type=chunk)[205](index=205&type=chunk)[209](index=209&type=chunk)[215](index=215&type=chunk)[225](index=225&type=chunk)[234](index=234&type=chunk)[252](index=252&type=chunk) [VI. Taxation](index=80&type=section&id=VI.%20Taxation) The company's main taxes include VAT, urban maintenance and construction tax, and corporate income tax, benefiting from various preferential policies such as reduced CIT for high-tech enterprises and VAT exemptions for feed sales Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Calculated based on taxable sales revenue, deducting input VAT allowed for the current period | 3%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Actual VAT and consumption tax paid | 7%, 5% | | Corporate Income Tax | Taxable income | 25%, 20%, 16.5%, 15% | | Education Surcharge | Actual VAT and consumption tax paid | 3% | | Local Education Surcharge | Actual VAT and consumption tax paid | 2% | | Property Tax | For self-occupied properties, 70% of the original value of the property is used as the tax basis | 1.2% | | Property Tax | For properties leased to others, the property rental income is used as the tax basis | 12% | | Urban Land Use Tax | Based on the actual occupied land area | 5 yuan/square meter, 2 yuan/square meter | | Land Appreciation Tax | Appreciation amount from real estate transfer | 30%-60% (tiered based on appreciation ratio) | - Subsidiary Chengdu Shiji Bio-pharmaceutical Co., Ltd. enjoys a **15%** corporate income tax preferential rate as a high-tech enterprise (from January 1, 2023, to December 31, 2025) and has applied a **3%** VAT collection rate since July 2014[288](index=288&type=chunk)[289](index=289&type=chunk) - Zunyi Kangxiyuan Animal Nutrition Technology Co., Ltd.'s sales of feed products are exempt from VAT. The policy allowing small low-profit enterprises to calculate taxable income at **25%** and pay corporate income tax at a **20%** rate is extended until December 31, 2027[289](index=289&type=chunk)[290](index=290&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=82&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section details the period-end and period-beginning balances and current period changes for consolidated financial statement items, including monetary funds, accounts receivable, inventory, fixed assets, intangible assets, short-term borrowings, notes payable, operating revenue, and operating costs Monetary Funds | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Cash on Hand | 4,009.85 | 17,119.55 | | Bank Deposits | 73,011,697.04 | 84,811,524.92 | | Other Monetary Funds | 60,965,280.79 | 317,453,890.96 | | **Total** | **133,980,987.68** | **402,282,535.43** | | Of which: Total Funds Deposited Overseas | 8,415,847.16 | 1,630,249.76 | Accounts Receivable | Age | Period-End Book Balance (yuan) | Period-Beginning Book Balance (yuan) | | :--- | :--- | :--- | | Within 1 year (inclusive) | 487,393,790.17 | 410,894,462.03 | | 1 to 2 years | 6,757,779.00 | 10,660,962.20 | | 2 to 3 years | 234,000.00 | 996,908.00 | | **Total** | **494,385,569.17** | **422,552,332.23** | Inventories | Item | Period-End Book Value (yuan) | Period-Beginning Book Value (yuan) | | :--- | :--- | :--- | | Raw Materials | 52,383,334.45 | 83,738,055.17 | | Work in Progress | 9,778,112.71 | 7,146,721.31 | | Finished Goods | 23,039,561.37 | 15,050,607.56 | | Revolving Materials | 299,553.30 | 123,461.14 | | Goods in Transit | 5,674,957.46 | 2,964,628.59 | | Consigned Processing Materials | 320,138.76 | 22,846,898.80 | | Self-made Semi-finished Products | 4,921,371.97 | 4,874,762.08 | | Materials in Transit | - | 1,873,595.86 | | **Total** | **96,417,030.02** | **138,618,730.51** | Operating Revenue and Operating Costs | Item | Current Period Revenue (yuan) | Current Period Cost (yuan) | Prior Period Revenue (yuan) | Prior Period Cost (yuan) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 590,424,838.10 | 559,107,139.70 | 21,250,223.45 | 10,623,894.01 | | Other Businesses | 23,034,578.78 | 8,236,417.14 | 7,308,913.05 | 285,105.83 | | **Total** | **613,459,416.88** | **567,343,556.84** | **28,559,136.50** | **10,908,999.84** | [VIII. R&D Expenses](index=110&type=section&id=VIII.%20R%26D%20Expenses) During the reporting period, total R&D expenses were **14.95 million yuan**, a significant increase, primarily for direct materials, employee compensation, and testing fees, with **1.50 million yuan** capitalized for a pig pseudorabies vaccine project R&D Expense Composition | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Direct Materials | 9,804,863.44 | 539,406.18 | | Employee Compensation | 2,454,339.04 | 2,480,052.94 | | Depreciation and Amortization | 1,695,004.77 | 1,782,861.33 | | Testing Fees | 542,615.27 | - | | Fuel and Power Costs | 262,428.76 | 300,264.70 | | Other | 191,737.32 | 730,313.77 | | **Total** | **14,950,988.60** | **5,832,898.92** | | Capitalized R&D Expenses | 1,500,000.00 | 0.00 | - Capitalized R&D expenses for this period amounted to **1.50 million yuan**, primarily for the patent implementation license project of the pig pseudorabies virus type II ge/tk gene-deleted inactivated vaccine[439](index=439&type=chunk)[440](index=440&type=chunk) [IX. Changes in Consolidation Scope](index=111&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company acquired 100% equity of Fengshuo Nan through a non-same-control business combination via auction for **1.07 million yuan**, recognizing goodwill of **0.40 million yuan** Non-Same-Control Business Combinations Occurred in Current Period | Name of Acquiree | Time of Equity Acquisition | Cost of Equity Acquisition (yuan) | Proportion of Equity Acquired (%) | Method of Equity Acquisition | Acquisition Date | Basis for Determining Acquisition Date | Revenue of Acquiree from Acquisition Date to Period-End (yuan) | Net Profit of Acquiree from Acquisition Date to Period-End (yuan) | Cash Flow of Acquiree from Acquisition Date to Period-End (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Fengshuo Nan | April 22, 2025 | 1,071,050.00 | 100.00% | Acquired via auction | April 22, 2025 | Transfer of control | 0.00 | -1,069.64 | -926.67 | Consolidation Cost and Goodwill | Consolidation Cost Item | Fengshuo Nan (yuan) | | :--- | :--- | | --Cash | 1,071,050.00 | | **Total Consolidation Cost** | **1,071,050.00** | | Less: Fair Value Share of Identifiable Net Assets Acquired | 675,888.20 | | **Goodwill** | **395,161.80** | [X. Interests in Other Entities](index=112&type=section&id=X.%20Interests%20in%20Other%20Entities) The company controls 20 subsidiaries, including important non-wholly-owned ones like Gaoshuo Hangyu, Chengdu Shiji, and Fengying Ruixin, and has actual control over Zhongnong Qinghai Potash Salt despite holding 13.50% equity due to 3/5 voting rights - The company owns **20** subsidiaries, including Hong Kong Rongcheng, Yingshun Factoring, Chengdu Shiji, and Fengying Ruixin, primarily acquired through establishment or non-same-control business combinations[446](index=446&type=chunk)[447](index=447&type=chunk) - The company holds **41%** equity in Zhongnong Qinghai Potash Salt but, according to its articles of association, holds **3/5** of the voting rights, thus exercising actual control and including it in the consolidated

牧原食品股份有限公司 2025 年半年度报告全文 牧原食品股份有限公司 2025 年半年度报告 2025 年 8 月 1 牧原食品股份有限公司 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。 公司负责人曹治年、主管会计工作负责人曹治年及会计机构负责人(会计 主管人员)高曈声明：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。 本报告所涉公司未来计划等前瞻性陈述，不构成公司对任何投资者及相 关人士的实质承诺，敬请广大投资者注意投资风险。 公司需遵守《深圳证券交易所上市公司自律监管指引第 3 号——行业信 息披露》中的"畜禽、水产养殖相关业务"的披露要求 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"描述了公司未来经营中可能存在的风险及应对措施，敬请广大投资者注 意投资风险。 公司经本次董事会审议通过的利润分配预案为：以未来实施分配方案时 股权登记日的总股本为基数，向全体股东每 ...

[Important Notice](index=2&type=section&id=Important%20Notice) The company ensures the truthfulness, accuracy, and completeness of this unaudited semi-annual report, with no profit distribution, forward-looking statement commitments, fund occupation, or external guarantees [Statement by the Board of Directors, Supervisory Board, and Senior Management](index=2&type=section&id=Statement%20by%20the%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20and%20Senior%20Management) The company's Board of Directors, Supervisory Board, and senior management declare the truthfulness, accuracy, and completeness of the semi-annual report content and assume corresponding legal responsibilities - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content and assume legal responsibility[3](index=3&type=chunk) - All company directors attended the board meeting, and this semi-annual report is unaudited[4](index=4&type=chunk)[5](index=5&type=chunk) [Profit Distribution Plan or Capital Reserve to Share Capital Increase Plan](index=2&type=section&id=Profit%20Distribution%20Plan%20or%20Capital%20Reserve%20to%20Share%20Capital%20Increase%20Plan) The profit distribution plan or capital reserve to share capital increase plan approved by the Board of Directors for this reporting period is "none" - There is no profit distribution plan or capital reserve to share capital increase plan for this reporting period[6](index=6&type=chunk) [Risk Statement for Forward-Looking Statements](index=2&type=section&id=Risk%20Statement%20for%20Forward-Looking%20Statements) The company reminds investors that forward-looking statements in this report, such as future plans and development strategies, do not constitute substantial commitments and involve investment risks - Forward-looking statements in this report do not constitute substantial commitments, and investors should be aware of investment risks[6](index=6&type=chunk) [Fund Occupation and External Guarantees](index=2&type=section&id=Fund%20Occupation%20and%20External%20Guarantees) During the reporting period, the company had no non-operating fund occupation by controlling shareholders or other related parties, nor did it provide external guarantees in violation of decision-making procedures - No non-operating fund occupation by controlling shareholders or other related parties[7](index=7&type=chunk) - No external guarantees provided in violation of decision-making procedures[8](index=8&type=chunk) [Major Risk Warning](index=2&type=section&id=Major%20Risk%20Warning) The company has detailed potential risks in "Management Discussion and Analysis" (Section III) and reminds investors to review it and be aware of investment risks - The company has detailed potential risks in Section III of the report, reminding investors to be aware of investment risks[7](index=7&type=chunk) [Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) This section provides definitions of common terms used in the report, including the company itself, related parties, subsidiaries, and currency units, to ensure clear understanding of the report content [Section II Company Profile and Key Financial Indicators](index=5&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides the company's basic information, contact details, stock profile, and key financial data, highlighting a 6.79% revenue growth and 11.10% net profit increase in H1 2025 [Company Information](index=5&type=section&id=Company%20Information) This section lists the company's basic information, including its Chinese name, abbreviation, foreign name, acronym, and legal representative - The company's Chinese name is Hangzhou Advance Gearbox Group Co., Ltd., abbreviated as Advance Gearbox, with Yang Shuiyu as the legal representative[14](index=14&type=chunk) [Contact Person and Contact Information](index=5&type=section&id=Contact%20Person%20and%20Contact%20Information) This section provides contact details for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, faxes, and email addresses - The Board Secretary is Zhang Dejun, and the Securities Affairs Representative is Hou Lei, both located at Advance Gearbox Board Office, No. 45 Xiaojin Road, Xiaoshan District, Hangzhou[15](index=15&type=chunk) [Brief Introduction to Changes in Basic Information](index=5&type=section&id=Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) The company's registered and office addresses are both No. 45 Xiaojin Road, Xiaoshan District, Hangzhou, Zhejiang Province, with no changes during the reporting period - The company's registered and office addresses are both No. 45 Xiaojin Road, Xiaoshan District, Hangzhou, Zhejiang Province, with no historical changes during the reporting period[16](index=16&type=chunk) [Brief Introduction to Changes in Information Disclosure and Document Storage Locations](index=5&type=section&id=Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Storage%20Locations) The company's designated information disclosure newspaper is "Securities Times", the semi-annual report website is www.sse.com.cn, and the document storage location is the Board Office, with no changes during the reporting period - The company's information disclosure newspaper is "Securities Times", the report website is www.sse.com.cn, and the document storage location is the Board Office, with no changes during the reporting period[17](index=17&type=chunk) [Company Stock Profile](index=5&type=section&id=Company%20Stock%20Profile) The company's stock is RMB ordinary shares (A-shares), listed on the Shanghai Stock Exchange, with stock abbreviation "Advance Gearbox" and stock code 601177, with no previous stock abbreviation changes during the reporting period - The company's stock is RMB ordinary shares (A-shares), listed on the Shanghai Stock Exchange, with stock abbreviation "Advance Gearbox" and stock code 601177, with no previous stock abbreviation[18](index=18&type=chunk) [Company's Key Accounting Data and Financial Indicators](index=5&type=section&id=Company%27s%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In the first half of 2025, the company's operating revenue increased by 6.79% to 1.073 billion yuan, and net profit attributable to shareholders increased by 11.10% to 127 million yuan 2025 H1 Key Accounting Data | Major Accounting Data | Current Period (Jan-Jun) (Yuan) | Prior Year Period (Yuan) | Current Period vs. Prior Year Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,073,408,415.02 | 1,005,184,075.68 | 6.79 | | Total Profit | 132,622,631.12 | 117,309,661.17 | 13.05 | | Net Profit Attributable to Listed Company Shareholders | 127,399,126.32 | 114,670,778.92 | 11.10 | | Net Profit Attributable to Listed Company Shareholders After Deducting Non-Recurring Gains and Losses | 116,490,489.73 | 95,056,429.56 | 22.55 | | Net Cash Flow from Operating Activities | 56,369,520.05 | -15,103,681.89 | Not Applicable | | Net Assets Attributable to Listed Company Shareholders | 2,746,920,948.05 | 2,657,590,832.40 | 3.36 | | Total Assets | 5,168,703,471.04 | 4,972,473,161.75 | 3.95 | 2025 H1 Key Financial Indicators | Major Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Current Period vs. Prior Year Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.3173 | 0.2866 | 10.71 | | Diluted Earnings Per Share (Yuan/share) | 0.3146 | 0.2866 | 9.77 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (Yuan/share) | 0.2900 | 0.2376 | 22.05 | | Weighted Average Return on Net Assets (%) | 4.70 | 4.75 | Decrease of 0.05 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 4.30 | 3.93 | Increase of 0.37 percentage points | - Net cash flow from operating activities increased year-on-year, primarily due to a year-on-year decrease in accounts payable bills settled and redeemed[21](index=21&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=6&type=section&id=Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to 10.91 million yuan, mainly from government subsidies and fair value changes in financial assets 2025 H1 Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Items | Amount (Yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -165,820.33 | | Government grants recognized in current profit or loss | 11,152,484.50 | | Gains and losses from changes in fair value of financial assets and liabilities and disposal of financial assets and liabilities | 635,699.93 | | Debt restructuring gains and losses | 14,283.79 | | Other non-operating income and expenses apart from the above | -355,175.83 | | Less: Income tax impact | 164,815.67 | | Minority interest impact (after tax) | 208,019.80 | | Total | 10,908,636.59 | [Net Profit After Deducting Share-Based Payment Impact](index=7&type=section&id=Net%20Profit%20After%20Deducting%20Share-Based%20Payment%20Impact) After deducting the impact of share-based payments, the company's net profit for the first half of 2025 was 131 million yuan, a year-on-year increase of 13.94% Net Profit After Deducting Share-Based Payment Impact | Major Accounting Data | Current Period (Jan-Jun) (Yuan) | Prior Year Period (Yuan) | Current Period vs. Prior Year Period Change (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Share-Based Payment Impact | 131,449,231.94 | 115,368,997.34 | 13.94 | [Section III Management Discussion and Analysis](index=7&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section discusses the company's industry, main business, operational performance, and core competitiveness, detailing market expansion, R&D innovation, internal management, and potential risks faced during the reporting period [Explanation of the Company's Industry and Main Business During the Reporting Period](index=7&type=section&id=Explanation%20of%20the%20Company%27s%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) The company primarily manufactures and sells gearboxes and transmission systems for marine, construction machinery, wind power, and agricultural machinery sectors. Despite global economic slowdown, domestic machinery industry remained stable, with differentiated downstream demand [Company's Main Business](index=7&type=section&id=Company%27s%20Main%20Business) The company primarily produces and sells marine gearboxes and propulsion systems, construction machinery transmissions, wind power gearboxes and industrial gearboxes, automotive transfer cases, agricultural machinery transmissions and drive axles, friction materials and plates, and elastic couplings - The company's main products include marine gearboxes, construction machinery transmissions, wind power gearboxes, automotive transfer cases, agricultural machinery transmissions and drive axles, and friction materials[29](index=29&type=chunk) [Business Model](index=8&type=section&id=Business%20Model) The company's procurement combines centralized and subsidiary-level purchasing; production is primarily order-based, multi-variety, and small-batch; sales include direct and indirect channels, supported by extensive domestic and international service networks - Procurement Model: Centralized procurement for bulk goods (bidding), subsidiary-level procurement for low-sharing materials (targeted inquiry order-based)[30](index=30&type=chunk) - Production Model: Centralized production at headquarters, order-based, multi-variety, small-batch, with production plans based on orders[30](index=30&type=chunk) - Sales Model: Direct sales and indirect sales (through subsidiaries and agents), customized for high-power products, stock for medium and small power, direct sales for construction machinery, wind power, and agricultural machinery, direct sales or agent export for international markets, and established domestic and international maintenance service centers[30](index=30&type=chunk) [Industry Overview](index=8&type=section&id=Industry%20Overview) The gear transmission device market is vast and driven by downstream industries. In the first half of 2025, global economic growth slowed, but China's economy remained stable, with the machinery industry operating steadily - Gear transmission devices are fundamental products for the national economy, with a huge market size driven by downstream industry development[31](index=31&type=chunk) - In the first half of 2025, global economic growth momentum weakened, China's economy remained generally stable, and the machinery industry maintained stable operations[31](index=31&type=chunk) 2025 H1 Downstream Industry Data | Industry | Key Indicator | 2025 Jan-Jun Data | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Shipbuilding Industry | Shipbuilding Completion Volume | 24.13 million DWT | Down 3.5% | | | New Orders Received | 44.33 million DWT | Down 18.2% | | | Order Backlog | 234.54 million DWT | Up 36.7% | | Wind Power Industry | New Wind Power Installed Capacity | 51.39 GW | Increase of 25.55 GW | | | New Approved Capacity | 90 GW | Comparable to Jan-Aug 2024 | | Construction Machinery | Loader Sales | 64,769 units | Up 13.6% | | | Grader Sales | 4,343 units | Up 9.23% | | | Road Roller Sales | 9,450 units | Up 21.3% | | Agricultural Machinery | Agricultural Machinery Market Climate Index (AMI) | 40.9% | Down 0.3 percentage points | [Discussion and Analysis of Operations](index=10&type=section&id=Discussion%20and%20Analysis%20of%20Operations) In the first half of 2025, the company achieved steady growth with operating revenue of 1.073 billion yuan, up 6.79%, and net profit attributable to parent company of 127 million yuan, up 11.10%, by strengthening market development, R&D innovation, and internal management despite a complex operating environment - In the first half of 2025, the company's operating revenue was **1.073 billion yuan**, a year-on-year increase of **6.79%**[36](index=36&type=chunk) - In the first half of 2025, net profit attributable to owners of the parent company was **127 million yuan**, a year-on-year increase of **11.10%**[36](index=36&type=chunk) [Deepen Market Expansion, Solidify Brand Influence and Market Share](index=10&type=section&id=Deepen%20Market%20Expansion%2C%20Solidify%20Brand%20Influence%20and%20Market%20Share) The company actively adapted to new energy trends in the domestic marine market, increasing orders for new energy and hybrid products. International marine sales saw growth in light-duty high-speed and high-power products through market visits and structural adjustments - Domestic Marine Sales: New energy, hybrid, and light-duty high-speed products grew, while special products and gearboxes for dredgers and liquefied cargo ships maintained a leading position[37](index=37&type=chunk) - International Marine Sales: Actively visited Southeast Asian markets, with light-duty high-speed and high-power products generating new business growth[37](index=37&type=chunk) - Construction Machinery: Strengthened promotion of electro-hydraulic electric drive and new energy products, with new products in small-batch application and conventional product sales revenue showing significant year-on-year growth[37](index=37&type=chunk) - Agricultural Machinery Products: Expanded small-batch customers for high-horsepower tractor transmissions and large harvesting machinery transmission systems, broadening new markets[37](index=37&type=chunk) [Strengthen R&D Innovation, Continuously Enhance Core Competitiveness](index=10&type=section&id=Strengthen%20R%26D%20Innovation%2C%20Continuously%20Enhance%20Core%20Competitiveness) The company continued to increase R&D investment in new products and technologies, completing multiple intelligent and green upgrades for marine products, successfully developing and delivering the electric propulsion gearbox with the largest output torque and a 10MW wind power gearbox - Marine Products: Promoted intelligent and green upgrades, completed transformation and upgrade of multiple small and medium-power products, lightweighting of medium and large-power products, and hybrid product development, successfully developing and delivering the electric propulsion gearbox with the largest output torque[39](index=39&type=chunk) - Wind Power Products: **10MW gearbox** completed development and delivery, with design and prototype delivery for multiple 6.X and 7.X new structural products[39](index=39&type=chunk) - In the first half of the year, **77 new products** and **6 key components** were developed; **15 patent applications** were accepted, and **19 patents** were granted[39](index=39&type=chunk) [Strengthen Internal Management, Promote Efficiency Improvement](index=10&type=section&id=Strengthen%20Internal%20Management%2C%20Promote%20Efficiency%20Improvement) The company enhanced internal management efficiency by building intelligent manufacturing workshops, optimizing production layouts, deploying informatization systems in subsidiaries, exploring AI applications in design and quality inspection, and strengthening talent development - Built intelligent manufacturing workshops, optimized production layout, relocated and put into use the new marine thruster base, increasing production capacity[40](index=40&type=chunk) - Promoted the deployment of informatization systems in subsidiaries, strengthened group-level control, and explored AI applications in design, quality inspection, production scheduling, safety prevention and control, and contract review[40](index=40&type=chunk)[41](index=41&type=chunk) - The company was selected for Hangzhou Xiaoshan District's "**2025 Xiaoshan District Green Low-Carbon Factory**" list[41](index=41&type=chunk) [Analysis of Core Competitiveness During the Reporting Period](index=11&type=section&id=Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) The company's core competitiveness lies in its market and service network, products and technology, brand, and equipment advantages. It holds the largest market share in domestic marine gearboxes, possesses extensive domestic and international sales and service networks, deep technological accumulation and multi-field R&D platforms, a highly reputable "Advance" brand, and production equipment and testing capabilities reaching international advanced levels [Market and Service Network Advantages](index=11&type=section&id=Market%20and%20Service%20Network%20Advantages) The company holds the largest market share in domestic marine gearboxes and is a major independent supplier of transmissions in the construction machinery industry. It has a strong domestic and international sales and service network, establishing strategic partnerships with complete machine manufacturers to provide rapid response customer service - **Domestic market share first** in marine gearboxes, major independent supplier of transmissions in the construction machinery industry[42](index=42&type=chunk) - Established a strong domestic and international sales and service network, with **6 sales companies, 10 offices, 50 first-tier agents, and over 300 after-sales technical service stations domestically**, and **over 70 agents in more than 50 countries and regions overseas**[42](index=42&type=chunk) [Product and Technology Advantages](index=11&type=section&id=Product%20and%20Technology%20Advantages) The company is a key enterprise in China's gear industry with the widest product application scope, largest sales scale for marine gearboxes, and broadest coverage of construction machinery transmission devices. It specializes in R&D of gear transmission devices and friction materials, possessing deep technological accumulation and multi-field R&D platforms, with a cumulative total of 332 valid patents, including 75 invention patents, placing its technical level and R&D capabilities at the industry forefront - Wide product application scope, covering marine, construction machinery, automotive, wind power, agricultural machinery, power, and mining industries[42](index=42&type=chunk) - Specializes in R&D of gear transmission devices and friction materials, possessing deep technological accumulation and multi-field R&D platforms[42](index=42&type=chunk) - As of the end of June 2025, accumulated **332 valid patents**, including **75 invention patents**; led and participated in revising **39 national and industry standards** and **10 group standards**[42](index=42&type=chunk) [Brand Advantage](index=11&type=section&id=Brand%20Advantage) The company's "Advance" trademark enjoys a high reputation in the gear manufacturing industry and is highly recognized by customers. It has obtained product certifications from China Classification Society and multiple international classification societies, and its construction machinery products have passed assessment and testing by ZF Germany - The "**Advance**" trademark enjoys a high reputation in the gear manufacturing industry and is highly recognized by customers[43](index=43&type=chunk) - Certified by China Classification Society and multiple international classification societies such as ABS, BV, GL, KR, LR[43](index=43&type=chunk) [Equipment Advantage](index=11&type=section&id=Equipment%20Advantage) The company currently possesses over 5,200 pieces of equipment, with more than 30% being high-precision CNC equipment. Its main production equipment and testing capabilities have reached international advanced levels, and its manufacturing processes and product quality are at a leading domestic position - Currently possesses **over 5,200 pieces of equipment**, with **over 1,500 main production equipment (sets)**, and **more than 30% being high-precision CNC equipment**[43](index=43&type=chunk) - Main production equipment and testing capabilities have reached international advanced levels, with manufacturing processes and product quality at a leading domestic position[43](index=43&type=chunk) [Key Operating Performance During the Reporting Period](index=11&type=section&id=Key%20Operating%20Performance%20During%20the%20Reporting%20Period) During the reporting period, the company's operating revenue increased by 6.79%, mainly due to higher revenue from marine gearboxes and construction machinery transmissions. Net cash flow from operating activities significantly improved, while net cash flow from investing activities sharply decreased due to increased purchases of wealth management products, and net cash flow from financing activities saw a significant outflow due to increased repayment of interest-bearing debt [Analysis of Main Business](index=11&type=section&id=Analysis%20of%20Main%20Business) The company's operating revenue increased by 6.79%, primarily driven by higher revenue from marine gearboxes and construction machinery transmissions. R&D expenses increased by 17.81%, net cash flow from operating activities turned from negative to positive, and net cash flow from both investing and financing activities significantly decreased Analysis Table of Changes in Financial Statement Accounts | Account | Current Period Amount (Yuan) | Prior Year Period Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,073,408,415.02 | 1,005,184,075.68 | 6.79 | | Operating Cost | 859,810,311.47 | 807,735,281.96 | 6.45 | | Selling Expenses | 24,129,237.61 | 23,878,527.17 | 1.05 | | Administrative Expenses | 81,179,210.88 | 82,863,811.94 | -2.03 | | Financial Expenses | 13,057,449.78 | 9,272,258.26 | 40.82 | | R&D Expenses | 67,821,996.35 | 57,569,539.64 | 17.81 | | Net Cash Flow from Operating Activities | 56,369,520.05 | -15,103,681.89 | Not Applicable | | Net Cash Flow from Investing Activities | -60,286,666.84 | 15,418,649.46 | -491.00 | | Net Cash Flow from Financing Activities | -80,945,034.51 | 8,642,151.14 | -1036.63 | | Fair Value Change Gains | 524,285.04 | 384,000.00 | 36.53 | | Credit Impairment Losses | -2,291,262.78 | -6,228,929.19 | Not Applicable | | Asset Impairment Losses | -3,388,972.46 | -8,276,981.57 | Not Applicable | | Asset Disposal Gains | 8,970.52 | 2,899,963.70 | -99.69 | | Non-Operating Expenses | 606,409.69 | 156,215.38 | 288.19 | | Income Tax Expense | 1,206,154.86 | 752,746.07 | 60.23 | - Changes in operating revenue primarily due to year-on-year increase in revenue from marine gearboxes and construction machinery transmissions[46](index=46&type=chunk) - Net cash flow from operating activities increased year-on-year, mainly due to a year-on-year decrease in accounts payable bills settled and redeemed[47](index=47&type=chunk) - Net cash flow from investing activities significantly decreased year-on-year, mainly due to an increase in wealth management products purchased during the current period[47](index=47&type=chunk) - Net cash flow from financing activities significantly decreased year-on-year, mainly due to a year-on-year increase in net outflow from repayment of interest-bearing debt and the receipt of restricted stock subscription funds in the prior year[47](index=47&type=chunk) [Analysis of Assets and Liabilities](index=12&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's total assets increased by 3.95%, and net assets attributable to shareholders increased by 3.36%. Trading financial assets surged by 402.44%, short-term borrowings increased by 30.17%, accounts payable increased by 46.74%, and construction in progress decreased by 60.43% mainly due to the completion and capitalization of a subsidiary's joint factory building project Changes in Assets and Liabilities | Item | Period-End Balance (Yuan) | Period-End Balance as % of Total Assets | Prior Year-End Balance (Yuan) | Prior Year-End Balance as % of Total Assets | Change from Prior Year-End (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 282,704,370.04 | 5.47 | 399,253,063.02 | 8.03 | -29.19 | | Accounts Receivable | 667,224,387.70 | 12.91 | 572,930,013.63 | 11.52 | 16.46 | | Inventories | 727,632,378.67 | 14.08 | 594,322,154.97 | 11.95 | 22.43 | | Construction in Progress | 57,288,588.34 | 1.11 | 144,769,005.52 | 2.91 | -60.43 | | Short-Term Borrowings | 416,232,135.43 | 8.05 | 319,762,319.78 | 6.43 | 30.17 | | Notes Payable | 111,999,928.00 | 2.17 | 195,657,182.46 | 3.93 | -42.76 | | Accounts Payable | 793,882,343.88 | 15.36 | 541,018,172.48 | 10.88 | 46.74 | | Trading Financial Assets | 82,996,685.04 | 1.61 | 16,518,777.45 | 0.33 | 402.44 | - Construction in progress decreased by **60.43%**, mainly due to the completion and capitalization of a subsidiary's joint factory building project[50](index=50&type=chunk) - Short-term borrowings increased by **30.17%**, mainly due to the company's adjustment of its financing structure[52](index=52&type=chunk) - Trading financial assets increased by **402.44%**, mainly due to an increase in wealth management products purchased during the current period compared to the end of the previous year[52](index=52&type=chunk) - Accounts payable increased by **46.74%**, mainly due to an increase in outstanding purchase payments to suppliers at the end of the reporting period[52](index=52&type=chunk) [Major Asset Restrictions as of the End of the Reporting Period](index=14&type=section&id=Major%20Asset%20Restrictions%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, the company's total restricted assets amounted to 121 million yuan, primarily including monetary funds, notes receivable, accounts receivable financing, fixed assets, and intangible assets, mainly restricted due to deposits, pledged notes, and bank loan credit Major Asset Restrictions | Item | Period-End Book Value (Yuan) | Restriction Reason | | :--- | :--- | :--- | | Monetary Funds | 21,098,445.29 | Deposit/ETC Deposit Freeze | | Notes Receivable | 6,062,555.97 | Pledged for issuing notes | | Accounts Receivable Financing | 26,637,893.99 | Pledged for issuing notes | | Fixed Assets | 41,667,112.45 | Bank loan credit | | Intangible Assets | 25,904,194.54 | Bank loan credit | | Total | 121,370,202.24 | | - Restricted monetary funds amounted to **21,098,445.29 yuan**, including ETC deposit freezes, bank acceptance bill deposits, and letter of guarantee deposits[55](index=55&type=chunk) [Investment Analysis](index=14&type=section&id=Investment%20Analysis) The company's external equity investments primarily include investments in Hangzhou Advance Drive Chain Technology Service Co., Ltd., Xiaoshan Rural Commercial Bank, and Advance Forging. At the end of the period, financial assets measured at fair value totaled 197 million yuan, with trading financial assets significantly increasing to 82.9967 million yuan, mainly due to increased purchases of wealth management products during the current period Overall Analysis of External Equity Investments | Investee | Main Business | Investment Cost (Yuan) | Period-End Balance (Yuan) | 2025 H1 Change (Yuan) | Shareholding Ratio in Investee (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Hangzhou Advance Drive Chain Technology Service Co., Ltd. | Technical services and related product sales for wind power drive chains and gearboxes, maintenance, monitoring, etc. | 10,000,000.00 | 11,104,499.21 | -854,121.92 | 50.0000 | | Xiaoshan Rural Commercial Bank | Deposits, loans, bank settlements | 529,999,960.00 | 1,659,336,701.58 | 51,096,123.49 | 5.8185 | | Advance Forging | Ferrous metal smelting and rolling processing industry | 128,353,960.09 | 162,227,946.76 | 4,086,944.65 | 45.0000 | | Total | | 668,353,920.09 | 1,832,669,147.55 | 54,328,946.22 | | Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (Yuan) | Fair Value Change Gains/Losses for Current Period (Yuan) | Purchases for Current Period (Yuan) | Sales/Redemptions for Current Period (Yuan) | Period-End Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable Financing | 126,084,861.33 | | | | 109,226,335.18 | | Trading Financial Assets | 16,518,777.45 | 524,285.04 | 420,100,000.00 | 354,127,600.00 | 82,996,685.04 | | Other Equity Instrument Investments | 5,000,000.00 | | | | 5,000,000.00 | | Total | 147,603,638.78 | 524,285.04 | 420,100,000.00 | 354,127,600.00 | 197,223,020.22 | [Analysis of Major Holding and Participating Companies](index=17&type=section&id=Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) The company's main subsidiaries and associates include Shaoxing Advance, Advance Casting, Advance Couplings, Linjiang Company, Anhui Transmission, Hangfen Institute, Advance Trading, and Xiaoshan Rural Commercial Bank. Among these, Xiaoshan Rural Commercial Bank and Linjiang Company had an impact of over 10% on the company's net profit Major Subsidiaries and Associates with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (Ten Thousand Yuan) | Total Assets (Ten Thousand Yuan) | Net Assets (Ten Thousand Yuan) | Operating Revenue (Ten Thousand Yuan) | Operating Profit (Ten Thousand Yuan) | Net Profit (Ten Thousand Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shaoxing Advance | Subsidiary | Production: Gearboxes | 1,000.00 | 25,436.89 | 16,003.07 | 9,289.85 | 180.47 | 92.31 | | Advance Casting | Subsidiary | Manufacturing, processing: Mechanical parts (cast iron) | 3,100.00 | 17,519.86 | 9,068.46 | 8,807.53 | -10.91 | -12.73 | | Advance Couplings | Subsidiary | Manufacturing, sales of high-elastic couplings, hydraulic hose assemblies | 1,000.00 | 9,626.62 | 6,234.82 | 2,942.63 | 919.39 | 821.14 | | Linjiang Company | Subsidiary | Production: Transmission devices and control systems, wind power gearboxes, high-speed special gearboxes | 18,000.00 | 82,331.41 | -10,585.89 | 26,818.85 | -1,749.21 | -1,749.16 | | Anhui Transmission | Subsidiary | Production: Automotive transfer cases, hydraulic torque converters | 1,000.00 | 7,752.20 | 3,037.56 | 4,581.43 | 381.98 | 317.74 | | Hangfen Institute | Subsidiary | Technology development and services, forging and powder metallurgy manufacturing | 300 | 1,008.07 | 533.82 | 2,028.47 | 6.64 | 4.47 | | Advance Trading | Subsidiary | Import and export of goods and technology | 500.00 | 3,856.69 | 1,998.16 | 5,210.96 | 122.44 | 110.68 | | Xiaoshan Rural Commercial Bank | Associate | Absorbing public deposits; issuing short-term, medium-term, and long-term loans, etc. | 272,424.09 | 40,258,469.79 | 2,882,261.73 | 358,195.78 | 192,676.59 | 179,564.79 | - Xiaoshan Rural Commercial Bank and Linjiang Company had an impact of **over 10%** on the company's net profit[62](index=62&type=chunk) - Advance General and Anhui Transmission's net profits increased by **2.2383 million yuan** and **2.1668 million yuan** respectively year-on-year, mainly due to a year-on-year increase in operating revenue[62](index=62&type=chunk) - Shaoxing Advance's net profit decreased by **2.1290 million yuan** year-on-year, mainly due to a year-on-year decrease in operating revenue[62](index=62&type=chunk) [Other Disclosure Matters](index=18&type=section&id=Other%20Disclosure%20Matters) The company faces multiple risks including external environment, accounts receivable bad debts, RMB exchange rate fluctuations, cost control, and technological updates and product development. It has formulated corresponding countermeasures, such as adjusting product structure, strengthening contract management, monitoring exchange rates, implementing comprehensive budget management, and increasing R&D investment [Potential Risks](index=18&type=section&id=Potential%20Risks) The company faces risks from a complex and severe external environment, accounts receivable bad debts, RMB exchange rate fluctuations, rising raw material and labor costs, and R&D failures in technological updates and product development. It has adopted corresponding countermeasures, such as adjusting product structure, strengthening contract management, monitoring exchange rates, strictly controlling costs, and increasing R&D investment - External Environment Risk: Complex and severe international environment, domestic economic difficulties such as insufficient demand and overcapacity, potentially impacting company performance[62](index=62&type=chunk) - Accounts Receivable Bad Debt Risk: Oversupply in the machinery industry, some enterprises facing difficulties, long warranty periods and high accounts receivable ratios in the wind power industry, posing bad debt risks[63](index=63&type=chunk) - RMB Exchange Rate Fluctuation Risk: Exchange rate fluctuations affect the price competitiveness of export products and the procurement cost of imported raw materials, thereby impacting operating performance[64](index=64&type=chunk) - Cost Control Risk: Fluctuations in raw material prices, increased labor costs, and higher environmental protection investments may increase operating costs[64](index=64&type=chunk) - Technological Update and Product Development Risk: Failure to accurately grasp technological development trends and market demand changes may lead to R&D failures[65](index=65&type=chunk) [Section IV Corporate Governance, Environment and Society](index=20&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%20and%20Society) This section covers changes in directors, supervisors, and senior management, profit distribution plans, equity incentive programs, and environmental information disclosure, emphasizing the company's commitment to governance and sustainability [Changes in Directors, Supervisors, and Senior Management](index=20&type=section&id=Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) No changes occurred in the company's directors, supervisors, and senior management during the reporting period - No changes occurred in the company's directors, supervisors, and senior management during the reporting period[68](index=68&type=chunk) [Profit Distribution or Capital Reserve to Share Capital Increase Plan](index=20&type=section&id=Profit%20Distribution%20or%20Capital%20Reserve%20to%20Share%20Capital%20Increase%20Plan) The company's semi-annual profit distribution plan and capital reserve to share capital increase plan propose no distribution or increase, with zero bonus shares, cash dividends, and share transfers per 10 shares Semi-Annual Profit Distribution or Capital Reserve to Share Capital Increase Plan | Indicator | Value | | :--- | :--- | | Whether to distribute or increase | No | | Number of bonus shares per 10 shares (shares) | 0 | | Cash dividend per 10 shares (Yuan) (tax included) | 0 | | Number of shares transferred from capital reserve per 10 shares (shares) | 0 | [Status and Impact of Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures](index=20&type=section&id=Status%20and%20Impact%20of%20Company%27s%20Equity%20Incentive%20Plan%2C%20Employee%20Stock%20Ownership%20Plan%2C%20or%20Other%20Employee%20Incentive%20Measures) The company's 2024 Restricted Stock Incentive Plan completed the grant registration during the reporting period, granting 7,915,000 restricted shares to 287 incentive recipients, increasing the total share capital from 400,060,000 shares to 407,975,000 shares - On April 10, 2024, the company's Board of Directors approved the "2024 Restricted Stock Incentive Plan (Draft)"[69](index=69&type=chunk) - On June 14, 2024, the company completed the grant registration for the 2024 Restricted Stock Incentive Plan, granting **7,915,000 restricted shares** to **287 incentive recipients**[70](index=70&type=chunk) - After grant registration, the company's total share capital increased from **400,060,000 shares** to **407,975,000 shares**[70](index=70&type=chunk) [Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=21&type=section&id=Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) The company is included in the list of enterprises required to disclose environmental information by law and continuously emphasizes ecological environmental protection, actively promoting pollution prevention and control through various measures - The company is included in the list of enterprises required to disclose environmental information by law and continuously promotes pollution prevention and control[71](index=71&type=chunk) - During the reporting period, the company maintained and updated oil mist purification devices in the gear grinding workshop, installed exhaust gas purification processors, reducing exhaust gas emissions[71](index=71&type=chunk) - The company's main noise-generating workshops are equipped with foundation shock absorption and noise reduction facilities, and all production and domestic wastewater in the factory area is pre-treated before being discharged to the sewage treatment plant[71](index=71&type=chunk) [Section V Significant Matters](index=22&type=section&id=Section%20V%20Significant%20Matters) This section details the fulfillment of commitments, absence of fund occupation or irregular guarantees, unaudited status of the report, major related party transactions, and the ongoing uncertainty regarding the company's planned relocation [Fulfillment of Commitments](index=22&type=section&id=Fulfillment%20of%20Commitments) The company's controlling shareholder, Chanfa Group, committed in the acquisition report not to change the composition of the listed company's board or senior management, not to amend the articles of association, not to significantly alter employee hiring plans, not to significantly adjust dividend policies, and to have no other major plans affecting business and organizational structure. All commitments were strictly fulfilled during the reporting period - Controlling shareholder Chanfa Group committed not to change the composition of the listed company's board or senior management, not to amend the articles of association, not to significantly alter employee hiring plans, not to significantly adjust dividend policies, and to have no other major plans affecting business and organizational structure; all were strictly fulfilled during the reporting period[74](index=74&type=chunk)[75](index=75&type=chunk) - Equity incentive recipients committed to return all benefits obtained if information disclosure documents contain false records, misleading statements, or major omissions[75](index=75&type=chunk) [Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties During the Reporting Period](index=23&type=section&id=Non-Operating%20Fund%20Occupation%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties%20During%20the%20Reporting%20Period) During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties - During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties[76](index=76&type=chunk) [Irregular Guarantees](index=23&type=section&id=Irregular%20Guarantees) During the reporting period, there were no irregular guarantees - During the reporting period, there were no irregular guarantees[76](index=76&type=chunk) [Semi-Annual Report Audit Status](index=24&type=section&id=Semi-Annual%20Report%20Audit%20Status) This semi-annual report is unaudited - This semi-annual report is unaudited[77](index=77&type=chunk) [Major Litigation and Arbitration Matters](index=24&type=section&id=Major%20Litigation%20and%20Arbitration%20Matters) There were no major litigation or arbitration matters for the company during this reporting period - There were no major litigation or arbitration matters for the company during this reporting period[77](index=77&type=chunk) [Major Related Party Transactions](index=24&type=section&id=Major%20Related%20Party%20Transactions) The company expects to have daily related party transactions totaling 220.3 million yuan with Advance Forging, Drive Chain Technology, and Xiaoshan Rural Commercial Bank in 2025. During the reporting period, actual daily related party transactions with Advance Forging amounted to 54.7262 million yuan, and with Drive Chain Technology to 1.3143 million yuan. At the end of the period, deposit and loan balances with Xiaoshan Rural Commercial Bank were 69,984.91 yuan - The company expects daily related party transactions with Advance Forging, Drive Chain Technology, and Xiaoshan Rural Commercial Bank to total **220.3 million yuan** in 2025[77](index=77&type=chunk) - During the reporting period, actual daily related party transactions with Advance Forging amounted to **54.7262 million yuan**, and with Drive Chain Technology to **1.3143 million yuan**[77](index=77&type=chunk) - At the end of the period, deposit and loan balances with Xiaoshan Rural Commercial Bank were **69,984.91 yuan**[77](index=77&type=chunk) [Explanation of Other Significant Matters](index=26&type=section&id=Explanation%20of%20Other%20Significant%20Matters) The company received a notice from the Hangzhou Xiaoshan District People's Government regarding planned relocation and land acquisition, intending to move its production and operation facilities to the Sanjiang Smart Town start-up area. The specific timing, plan, and compensation agreement for the relocation are currently undetermined, posing uncertainties, but the company will continue operations at its current site until then, without significant impact on production and operations - The company received a notice from the Hangzhou Xiaoshan District People's Government regarding planned relocation and land acquisition, intending to move its production and operation facilities to the Sanjiang Smart Town start-up area[81](index=81&type=chunk) - The relocation matters, including specific timing, formal plan, and compensation agreement, are yet to be determined, posing significant uncertainties[81](index=81&type=chunk) - Before a formal plan is clarified, the company will continue its production and operation activities at its current site, which will not have a significant impact on the company's production and operations[81](index=81&type=chunk) [Section VI Share Changes and Shareholder Information](index=26&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section outlines the company's share capital changes, shareholder structure, and information on directors, supervisors, and senior management, noting no changes in share capital or executive shareholdings during the period [Share Capital Changes](index=26&type=section&id=Share%20Capital%20Changes) During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[83](index=83&type=chunk) [Shareholder Information](index=26&type=section&id=Shareholder%20Information) As of the end of the reporting period, the total number of ordinary shareholders was 80,573. Among the top ten shareholders, Hangzhou Xiaoshan Industrial Development Group Co., Ltd. held 44.13% of shares, being the controlling shareholder. China Orient Asset Management Co., Ltd. held 9.86 million shares, accounting for 2.42% - As of the end of the reporting period, the total number of ordinary shareholders was **80,573**[83](index=83&type=chunk) Top Ten Shareholders' Shareholding as of the End of the Reporting Period | Shareholder Name (Full Name) | Period-End Shareholding (Shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Hangzhou Xiaoshan Industrial Development Group Co., Ltd. | 180,056,250 | 44.13 | State-owned Legal Person | | China Orient Asset Management Co., Ltd. | 9,860,000 | 2.42 | State-owned Legal Person | | Nan Ge | 3,811,000 | 0.93 | Domestic Natural Person | | Chu Yun | 2,900,000 | 0.71 | Domestic Natural Person | | Lu Mengmei | 1,758,100 | 0.43 | Domestic Natural Person | | Xu Shudi | 1,514,200 | 0.37 | Domestic Natural Person | | Hong Kong Securities Clearing Company Limited | 1,378,100 | 0.34 | Domestic Non-State-owned Legal Person | | Zhang Wenjuan | 1,000,000 | 0.25 | Domestic Natural Person | | Fang Qingjiu | 694,300 | 0.17 | Domestic Natural Person | | Goldman Sachs International - Proprietary Trading | 668,400 | 0.16 | Other | [Information on Directors, Supervisors, and Senior Management](index=28&type=section&id=Information%20on%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, there were no changes in the shareholdings of current or former directors, supervisors, and senior management, nor were they granted equity incentives - During the reporting period, the shareholding changes of current and former directors, supervisors, and senior management were "not applicable"[86](index=86&type=chunk) - During the reporting period, directors, supervisors, and senior management were not granted equity incentives[86](index=86&type=chunk) [Section VII Bond-Related Information](index=29&type=section&id=Section%20VII%20Bond-Related%20Information) This section provides details on the company's non-financial enterprise debt financing instruments, including the redemption of its medium-term notes, and presents key accounting data and financial indicators related to its debt [Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=29&type=section&id=Corporate%20Bonds%20(Including%20Enterprise%20Bonds)%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) The company issued "22 Advance Gearbox MTN001" medium-term notes in the interbank bond market, with a balance of 150 million yuan and an interest rate of 3.49%, which were fully paid and redeemed on February 20, 2025. The notes were fully and irrevocably guaranteed by Xiaoshan State-owned Assets. During the reporting period, the guarantee situation, repayment plan, and security measures remained unchanged, and the company strictly fulfilled its obligations [Basic Information on Non-Financial Enterprise Debt Financing Instruments](index=30&type=section&id=Basic%20Information%20on%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) The company issued "22 Advance Gearbox MTN001" medium-term notes, with a balance of 150 million yuan, an interest rate of 3.49%, and a maturity date of February 20, 2025, traded on the China Interbank Bond Market Basic Information on Non-Financial Enterprise Debt Financing Instruments | Bond Name | Abbreviation | Code | Issue Date | Interest Commencement Date | Maturity Date | Bond Balance (Billion Yuan) | Interest Rate (%) | Trading Venue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hangzhou Advance Gearbox Group Co., Ltd. 2022 First Tranche Medium-Term Notes | 22 Advance Gearbox MTN001 | 102280296 | Feb 17-18, 2022 | Feb 21, 2022 | Feb 20, 2025 | 1.5 | 3.49 | China Interbank Bond Market | [Execution and Changes of Guarantee Situation, Debt Repayment Plan, and Other Debt Security Measures During the Reporting Period and Their Impact](index=31&type=section&id=Execution%20and%20Changes%20of%20Guarantee%20Situation%2C%20Debt%20Repayment%20Plan%2C%20and%20Other%20Debt%20Security%20Measures%20During%20the%20Reporting%20Period%20and%20Their%20Impact) The company's first tranche of medium-term notes in 2022 was fully and irrevocably guaranteed by Xiaoshan State-owned Assets. During the reporting period, the guarantee situation, repayment plan, and security measures remained unchanged, and the company strictly paid the interest or redeemed the principal in full as agreed - The company's first tranche of medium-term notes in 2022 was fully and irrevocably guaranteed by Xiaoshan State-owned Assets[91](index=91&type=chunk) - During the reporting period, the guarantee situation, debt repayment plan, and debt security measures for the company's medium-term notes remained unchanged[91](index=91&type=chunk) - The company strictly paid the interest or redeemed the principal in full to the noteholders as agreed in the medium-term note prospectus[91](index=91&type=chunk) [Explanation of Other Matters Regarding Non-Financial Enterprise Debt Financing Instruments](index=31&type=section&id=Explanation%20of%20Other%20Matters%20Regarding%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) The company completed the interest payment and redemption of its first tranche of medium-term notes in 2022 on February 20, 2025 - The company completed the interest payment and redemption of its first tranche of medium-term notes in 2022 on **February 20, 2025**[92](index=92&type=chunk) [Key Accounting Data and Financial Indicators](index=32&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) At the end of the reporting period, the company's current ratio and asset-liability ratio slightly increased, while the quick ratio slightly decreased. Net profit after deducting non-recurring gains and losses increased by 22.55%. Interest coverage ratio and cash interest coverage ratio significantly improved, mainly due to increased net profit and net cash flow from operating activities Key Accounting Data and Financial Indicators | Major Indicators | Period-End / Current Period (Jan-Jun) | Prior Year-End / Prior Year Period | Period-End vs. Prior Year-End / Current Period vs. Prior Year Period Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Current Ratio | 1.17 | 1.15 | 1.64 | | | Quick Ratio | 0.73 | 0.77 | -4.85 | | | Asset-Liability Ratio (%) | 45.01 | 44.69 | 0.32 | | | Net Profit After Deducting Non-Recurring Gains and Losses (Yuan) | 116,490,489.73 | 95,056,429.56 | 22.55 | | | Total Debt to EBITDA | 0.05 | 0.04 | 25.00 | | | Interest Coverage Ratio | 10.75 | 8.09 | 32.88 | Mainly due to a year-on-year increase in net profit | | Cash Interest Coverage Ratio | 4.30 | 0.30 | 1,333.33 | Mainly due to a year-on-year increase in net cash flow from operating activities | | EBITDA Interest Coverage Ratio | 8.56 | 5.74 | 49.13 | Mainly due to a year-on-year increase in net profit | | Loan Repayment Rate (%) | 100.00 | 100.00 | - | - | | Interest Payment Rate (%) | 100.00 | 100.00 | - | - | [Section VIII Financial Report](index=33&type=section&id=Section%20VIII%20Financial%20Report) This section presents the company's unaudited consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, taxes, and financial risks [Audit Report](index=33&type=section&id=Audit%20Report) This semi-annual report is unaudited - This semi-annual report is unaudited[97](index=97&type=chunk) [Financial Statements](index=33&type=section&id=Financial%20Statements) This section includes 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, comprehensively reflecting the company's financial position, operating results, and cash flows [Consolidated Balance Sheet](index=33&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's consolidated total assets were 5.169 billion yuan, with total current assets of 1.943 billion yuan and total non-current assets of 3.226 billion yuan. Total liabilities were 2.326 billion yuan, and total owners' equity was 2.843 billion yuan Consolidated Balance Sheet Key Data (June 30, 2025) | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Current Assets | 1,942,881,908.07 | 1,791,315,383.07 | | Total Non-Current Assets | 3,225,821,562.97 | 3,181,157,778.68 | | Total Assets | 5,168,703,471.04 | 4,972,473,161.75 | | Total Current Liabilities | 1,661,779,483.98 | 1,557,284,436.49 | | Total Non-Current Liabilities | 664,421,067.84 | 664,722,709.06 | | Total Liabilities | 2,326,200,551.82 | 2,222,007,145.55 | | Total Owners' Equity Attributable to Parent Company | 2,746,920,948.05 | 2,657,590,832.40 | | Minority Interests | 95,581,971.17 | 92,875,183.80 | | Total Owners' Equity | 2,842,502,919.22 | 2,750,466,016.20 | | Total Liabilities and Owners' Equity | 5,168,703,471.04 | 4,972,473,161.75 | [Parent Company Balance Sheet](index=35&type=section&id=Parent%20Company%20Balance%20Sheet) As of June 30, 2025, the parent company's total assets were 4.459 billion yuan, with total current assets of 1.487 billion yuan and total non-current assets of 2.972 billion yuan. Total liabilities were 1.704 billion yuan, and total owners' equity was 2.755 billion yuan Parent Company Balance Sheet Key Data (June 30, 2025) | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Current Assets | 1,486,958,319.18 | 1,450,557,743.66 | | Total Non-Current Assets | 2,971,867,666.14 | 2,926,667,193.90 | | Total Assets | 4,458,825,985.32 | 4,377,224,937.56 | | Total Current Liabilities | 1,098,422,927.18 | 1,145,715,081.55 | | Total Non-Current Liabilities | 605,599,317.68 | 583,911,866.77 | | Total Liabilities | 1,704,022,244.86 | 1,729,626,948.32 | | Total Owners' Equity | 2,754,803,740.46 | 2,647,597,989.24 | | Total Liabilities and Owners' Equity | 4,458,825,985.32 | 4,377,224,937.56 | [Consolidated Income Statement](index=37&type=section&id=Consolidated%20Income%20Statement) In the first half of 2025, the company's consolidated total operating revenue was 1.073 billion yuan,同比增长6.79%. Net profit was 131 million yuan,同比增长12.75%. Net profit attributable to parent company shareholders was 127 million yuan,同比增长11.10% Consolidated Income Statement Key Data (January-June 2025) | Item | 2025 Half-Year (Yuan) | 2024 Half-Year (Yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 1,073,408,415.02 | 1,005,184,075.68 | | II. Total Operating Costs | 1,058,925,435.34 | 993,803,162.49 | | III. Operating Profit | 133,178,235.77 | 117,407,952.39 | | IV. Total Profit | 132,622,631.12 | 117,309,661.17 | | V. Net Profit | 131,416,476.26 | 116,556,915.10 | | Net Profit Attributable to Parent Company Shareholders | 127,399,126.32 | 114,670,778.92 | | Minority Interest Income | 4,017,349.94 | 1,886,136.18 | | VI. Net Other Comprehensive Income After Tax | -26,109,482.19 | 41,727,574.92 | | VII. Total Comprehensive Income | 105,306,994.07 | 158,284,490.02 | | Basic Earnings Per Share (Yuan/share) | 0.3173 | 0.2866 | | Diluted Earnings Per Share (Yuan/share) | 0.3146 | 0.2866 | [Parent Company Income Statement](index=39&type=section&id=Parent%20Company%20Income%20Statement) In the first half of 2025, the parent company's operating revenue was 864 million yuan, a year-on-year increase of 16.53%. Net profit was 147 million yuan, a year-on-year increase of 8.08% Parent Company Income Statement Key Data (January-June 2025) | Item | 2025 Half-Year (Yuan) | 2024 Half-Year (Yuan) | | :--- | :--- | :--- | | I. Operating Revenue | 863,679,644.49 | 741,152,140.57 | | Less: Operating Cost | 713,908,886.13 | 604,857,888.77 | | II. Operating Profit | 146,437,740.59 | 135,443,827.00 | | III. Total Profit | 146,201,363.79 | 135,369,683.13 | | IV. Net Profit | 147,041,707.63 | 136,044,510.52 | | V. Net Other Comprehensive Income After Tax | -26,213,783.55 | 41,775,509.40 | | VI. Total Comprehensive Income | 120,827,924.08 | 177,820,019.92 | [Consolidated Cash Flow Statement](index=41&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first half of 2025, net cash flow from operating activities was 56.37 million yuan, turning positive from negative year-on-year. Net cash flow from investing activities was -60.29 million yuan, mainly due to increased purchases of wealth management products. Net cash flow from financing activities was -80.95 million yuan, mainly due to increased net outflow from repayment of interest-bearing debt Consolidated Cash Flow Statement Key Data (January-June 2025) | Item | 2025 Half-Year (Yuan) | 2024 Half-Year (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 56,369,520.05 | -15,103,681.89 | | Net Cash Flow from Investing Activities | -60,286,666.84 | 15,418,649.46 | | Net Cash Flow from Financing Activities | -80,945,034.51 | 8,642,151.14 | | Net Increase in Cash and Cash Equivalents | -84,807,922.36 | 9,319,324.73 | | Period-End Cash and Cash Equivalents Balance | 261,605,924.75 | 277,747,022.72 | [Parent Company Cash Flow Statement](index=42&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In the first half of 2025, net cash flow from operating activities was 49.80 million yuan, turning positive from negative year-on-year. Net cash flow from investing activities was -16.70 million yuan, and net cash flow from financing activities was -72.58 million yuan Parent Company Cash Flow Statement Key Data (January-June 2025) | Item | 2025 Half-Year (Yuan) | 2024 Half-Year (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 49,796,492.64 | -24,363,008.78 | | Net Cash Flow from Investing Activities | -16,702,158.22 | 16,652,098.29 | | Net Cash Flow from Financing Activities | -72,576,735.10 | -6,085,173.88 | | Net Increase in Cash and Cash Equivalents | -39,441,182.49 | -13,556,573.77 | | Period-End Cash and Cash Equivalents Balance | 180,705,557.31 | 161,582,534.88 | [Consolidated Statement of Changes in Owners' Equity](index=44&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Owners%27%20Equity) In the first half of 2025, the company's consolidated total owners' equity increased by 92.04 million yuan, mainly influenced by total comprehensive income, owner contributions, and profit distribution. Of this, owners' equity attributable to the parent company increased by 89.33 million yuan Consolidated Statement of Changes in Owners' Equity (January-June 2025) | Item | Beginning Balance (Yuan) | Changes for Current Period (Yuan) | Period-End Balance (Yuan) | | :--- | :--- | :--- | | Paid-in Capital (or Share Capital) | 407,975,000.00 | - | 407,975,000.00 | | Capital Reserve | 891,495,484.61 | 9,676,068.02 | 901,171,552.63 | | Less: Treasury Stock | 32,847,250.00 | -474,900.00 | 32,372,350.00 | | Other Comprehensive Income | 123,821,276.62 | -26,109,482.19 | 97,711,794.43 | | Special Reserves | 5,813,247.96 | 2,368,003.50 | 8,181,251.46 | | Surplus Reserve | 160,016,651.68 | 14,704,170.76 | 174,720,822.44 | | Retained Earnings | 1,101,316,421.53 | 88,216,455.56 | 1,189,532,877.09 | | Total Owners' Equity Attributable to Parent Company | 2,657,590,832.40 | 89,330,115.65 | 2,746,920,948.05 | | Minority Interests | 92,875,183.80 | 2,706,787.37 | 95,581,971.17 | | Total Owners' Equity | 2,750,466,016.20 | 92,036,903.02 | 2,842,502,919.22 | [Parent Company Statement of Changes in Owners' Equity](index=49&type=section&id=Parent%20Company%20Statement%20of%20Changes%20in%20Owners%27%20Equity) In the first half of 2025, the parent company's total owners' equity increased by 107 million yuan, mainly influenced by total comprehensive income, owner contributions, and profit distribution Parent Company Statement of Changes in Owners' Equity (January-June 2025) | Item | Beginning Balance (Yuan) | Changes for Current Period (Yuan) | Period-End Balance (Yuan) | | :--- | :--- | :--- | | Paid-in Capital (or Share Capital) | 407,975,000.00 | - | 407,975,000.00 | | Capital Reserve | 846,042,436.58 | 9,676,068.02 | 855,718,504.60 | | Less: Treasury Stock | 32,847,250.00 | -474,900.00 | 32,372,350.00 | | Other Comprehensive Income | 126,669,646.57 | -26,213,783.55 | 100,455,863.02 | | Special Reserves | 1,944,785.98 | 705,359.12 | 2,650,145.10 | | Surplus Reserve | 167,928,611.41 | 14,704,170.76 | 182,632,782.17 | | Retained Earnings | 1,129,884,758.70 | 107,859,036.87 | 1,237,743,795.57 | | Total Owners' Equity | 2,647,597,989.24 | 107,205,751.22 | 2,754,803,740.46 | [Company Basic Information](index=52&type=section&id=Company%20Basic%20Information) Hangzhou Advance Gearbox Group Co., Ltd. was established through an overall change in September 2008 and listed on the Shanghai Stock Exchange on October 11, 2010, stock code 601177. The company has a registered capital of 408 million yuan, primarily engaged in general equipment manufacturing, with products covering over a thousand types in ten major categories, including marine gearboxes, construction machinery transmissions, and wind power gearboxes - The company was established through an overall change in **September 2008** and listed on the Shanghai Stock Exchange on **October 11, 2010**, stock code **601177**[129](index=129&type=chunk) - The company's registered capital is **407,975,000.00 yuan**, with a total of **407,975,000 shares**[129](index=129&type=chunk) - The company belongs to "General Equipment Manufacturing", with main products including marine gearboxes and propulsion systems, construction machinery transmissions, wind power gearboxes, and industrial gearboxes, covering **ten major categories** and **over a thousand types of products**[130](index=130&type=chunk) [Basis of Financial Statement Preparation](index=52&type=section&id=Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared on a going concern basis, in accordance with Accounting Standards for Business Enterprises, their application guidelines, and interpretations, and disclose financial information as per relevant regulations of the China Securities Regulatory Commission. The company assessed its going concern ability for the next 12 months and found no matters affecting it - The company prepares its financial statements on a going concern basis, in accordance with Accounting Standards for Business Enterprises, their application guidelines, and interpretations[131](index=131&type=chunk) - The company assessed its going concern ability for the 12 months from the end of the reporting period and found no matters affecting its going concern ability[132](index=132&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=52&type=section&id=Significant%20Accounting%20Policies%20and%20Accounting%20Estimates) This section details the significant accounting policies and estimates followed by the company in preparing its financial stateme

[Important Notes, Table of Contents, and Definitions](index=2&type=section&id=Item%20I.%20Important%20Notes%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides essential disclaimers, lists the report's structure, and defines key terms used throughout the document [Important Notes](index=2&type=section&id=Important%20Notes) The Board of Directors, Supervisory Board, and senior management guarantee the report's accuracy and completeness, with the company not distributing cash dividends or bonus shares - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility[4](index=4&type=chunk) - Sun Fengfeng, the company's head, Shi Qingyun, the chief accountant, and Shi Qingyun, the head of the accounting department, 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=Table%20of%20Contents) This section outlines the report's structure, covering company profile, management discussion, corporate governance, and financial statements - The report's table of contents is clear, covering major sections such as company profile, management discussion and analysis, corporate governance, significant matters, share changes and shareholder information, bond-related matters, financial reports, and other submitted data[7](index=7&type=chunk) [List of Reference Documents](index=4&type=section&id=List%20of%20Reference%20Documents) Reference documents include signed financial statements, publicly disclosed company files, and the original semi-annual report signed by the chairman - Reference documents include financial statements signed and sealed by the legal representative, chief accountant, and head of the accounting department[9](index=9&type=chunk) - Originals of all company documents and announcements publicly disclosed on the information disclosure platform designated by the China Securities Regulatory Commission during the reporting period[10](index=10&type=chunk) - The original 2025 semi-annual report bearing the signature of Mr Sun Fengfeng, the company's chairman[11](index=11&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section defines key terms, including the full names and abbreviations of the company and its subsidiaries, with the reporting period from January 1 to June 30, 2025 - The reporting period refers to January 1, 2025, to June 30, 2025[14](index=14&type=chunk) - Lists the full names and abbreviations of the company and its various subsidiaries, joint ventures, and associates, such as Hangzhou Jingu Avatar, Jingu Avatar Hefei, and Nanning Jingu Avatar[13](index=13&type=chunk)[14](index=14&type=chunk) [Company Profile and Key Financial Indicators](index=7&type=section&id=Item%20II.%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company, its contact information, and a summary of key financial performance and position indicators [I. Company Profile](index=7&type=section&id=I.%20Company%20Profile) Zhejiang Jingu Co Ltd, stock code 002488, is listed on the Shenzhen Stock Exchange, with Sun Fengfeng as its legal representative - Company stock abbreviation: Jingu Shares, stock code: **002488**, listed on: Shenzhen Stock Exchange[16](index=16&type=chunk) - The company's legal representative is Sun Fengfeng[16](index=16&type=chunk) [II. Contact Persons and Information](index=7&type=section&id=II.%20Contact%20Persons%20and%20Information) The company's Board Secretary is Sun Qunhui and Securities Affairs Representative is Luo Xiangfeng, both located in Hangzhou, with specified contact details Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Sun Qunhui | No 1 Huazhu Road, Changkou Town, Fuyang District, Hangzhou, Zhejiang Province | 0571-63133920 | 0571-63102488 | wallence.sun@jgwheel.com | | Securities Affairs Representative | Luo Xiangfeng | No 1 Huazhu Road, Changkou Town, Fuyang District, Hangzhou, Zhejiang Province | 0571-63133920 | 0571-63102488 | xiangfeng.luo@jgwheel.com | [III. Other Information](index=7&type=section&id=III.%20Other%20Information) No changes occurred in the company's contact information, information disclosure, or document storage locations during the reporting period - The company's registered address, office address, website, email, and other contact information remained unchanged during the reporting period[18](index=18&type=chunk) - Information disclosure and document storage locations remained unchanged during the reporting period[19](index=19&type=chunk) - No other relevant information changed during the reporting period[20](index=20&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=8&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2025, revenue grew 10.04% to 2.123 billion yuan, net profit attributable to shareholders increased 45.36% to 30.2715 million yuan, and operating cash flow decreased 35.08% Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,122,676,046.30 | 1,928,991,542.81 | 10.04% | | Net Profit Attributable to Listed Company Shareholders | 30,271,546.10 | 20,825,223.01 | 45.36% | | Net Profit Attributable to Listed Company Shareholders (excluding non-recurring items) | 25,410,270.87 | 15,813,362.45 | 60.69% | | Net Cash Flow from Operating Activities | -187,969,200.50 | -139,155,654.10 | -35.08% | | Basic Earnings Per Share (yuan/share) | 0.03 | 0.02 | 50.00% | | Diluted Earnings Per Share (yuan/share) | 0.03 | 0.02 | 50.00% | | Weighted Average Return on Net Assets | 0.85% | 0.50% | 0.35% | | **Period-End Indicators** | **Current Period-End (yuan)** | **Prior Year-End (yuan)** | **Current Period-End vs Prior Year-End Change** | | Total Assets | 9,261,778,184.75 | 9,406,451,382.40 | -1.54% | | Net Assets Attributable to Listed Company Shareholders | 3,504,319,839.60 | 3,512,354,473.08 | -0.23% | [V. Differences in Accounting Data Under Domestic and International Accounting Standards](index=8&type=section&id=V.%20Differences%20in%20Accounting%20Data%20Under%20Domestic%20and%20International%20Accounting%20Standards) The company reported no differences in net profit or net assets between international/overseas accounting standards and Chinese accounting standards during the reporting period - The company reported no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[22](index=22&type=chunk) - The company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[23](index=23&type=chunk) [VI. Non-Recurring Gains and Losses and Amounts](index=8&type=section&id=VI.%20Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) Non-recurring gains and losses totaled 4.8613 million yuan, primarily from asset disposals, government grants, and fair value changes, after tax and minority interest adjustments Non-Recurring Gains and Losses for H1 2025 | Item | Amount (yuan) | | :--- | :--- | | Gains/losses on disposal of non-current assets | 434,381.25 | | Government grants recognized in current period profit or loss | 2,083,898.43 | | Gains/losses from changes in fair value of financial assets and liabilities, and disposal of financial assets and liabilities, excluding effective hedging activities related to normal business operations | 1,254,768.73 | | Gains/losses from entrusted investments or asset management | 3,998,999.39 | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 81,908.19 | | Other non-operating income and expenses apart from the above | 69,579.45 | | Less: Income tax impact | 1,461,933.42 | | Minority interest impact (after tax) | 1,600,326.79 | | **Total** | **4,861,275.23** | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring items as recurring ones[26](index=26&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Item%20III.%20Management%20Discussion%20and%20Analysis) This section details the company's primary business, core competencies, operational performance, financial condition, and risk management strategies [I. Main Business Activities During the Reporting Period](index=10&type=section&id=I.%20Main%20Business%20Activities%20During%20the%20Reporting%20Period) The company specializes in automotive wheel R&D, production, and sales, expanding into robotics and low-altitude aircraft with its Avatar niobium micro-alloy materials [(I) Industry Overview](index=10&type=section&id=(I)%20Industry%20Overview) China's automotive market grew in H1 2025, with new energy vehicles seeing significant increases, benefiting the lightweight automotive wheel industry - From January to June 2025, China's automobile production and sales reached **15.621 million units** and **15.653 million units** respectively, representing year-on-year increases of **12.5%** and **11.4%**[28](index=28&type=chunk) - New energy vehicle production and sales reached **6.968 million units** and **6.937 million units** respectively, growing **41.4%** and **40.3%** year-on-year, with steadily increasing market share[28](index=28&type=chunk) - The company's self-developed Avatar low-carbon wheels feature lightweight design, high precision, high strength, low carbon emissions, low cost, good load-bearing capacity, and novel appearance[29](index=29&type=chunk) - The latest "Fengxing" series of Avatar low-carbon wheels has successfully secured a designated project for a leading domestic passenger vehicle OEM's main SUV model, also covering mid-to-high-end passenger vehicle models[29](index=29&type=chunk) [(II) Main Business and Products](index=10&type=section&id=(II)%20Main%20Business%20and%20Products) The company, a high-tech leader in automotive wheels, saw over 20% growth in auto parts revenue, is expanding globally, and is applying its niobium micro-alloy in robotics and low-altitude aircraft - The company's main business is the R&D, production, and sales of automotive wheels, recognized as a national automotive parts export base enterprise, a leading enterprise in China's automotive wheel industry, and a "Green Factory" by the Ministry of Industry and Information Technology[31](index=31&type=chunk) - In H1 2025, the company's automotive parts manufacturing revenue grew by over **20%** year-on-year, with domestic market growth reaching **43%**[31](index=31&type=chunk) - The company has secured multiple overseas customer designated projects, with several projects having sales exceeding **USD 100 million** over their lifecycle, including an estimated **USD 158 million** in sales for the first five years of a global leading automaker's US designated project[31](index=31&type=chunk) - The company's self-developed Avatar niobium micro-alloy material offers comprehensive advantages of high strength (up to **2000MPa**), high toughness, low cost, and low carbon emissions, capable of replacing traditional metal materials like aluminum alloy, titanium alloy, ordinary steel, and high-strength steel[32](index=32&type=chunk) - The company has advanced the application of Avatar niobium micro-alloy and other materials in emerging fields such as embodied intelligent robots (including humanoid robots, quadruped robots, service robots, and professional application robots) and low-altitude aircraft[33](index=33&type=chunk) - Significant progress has been made in robot structural component development, with the company providing Avatar niobium micro-alloy-based structural components to Zhiyuan Robotics, expected to achieve mass production and bulk supply within the year[33](index=33&type=chunk) - Compared to aluminum alloy wheels, Avatar passenger car wheels are of similar weight, lower cost, **5-6 times** stronger in material, and have approximately **1/6** the carbon emissions[34](index=34&type=chunk) - Compared to ordinary steel wheels, Avatar commercial vehicle wheels are lighter, significantly more precise, approximately **3 times** stronger in material, while maintaining the cost level of ordinary steel wheels[34](index=34&type=chunk) - The company is a supplier to domestic brands like BYD, Chery, Leapmotor, SAIC, Changan, Geely, Wuling, and joint venture brands such as SAIC Volkswagen, GAC Toyota, SAIC-GM, as well as a global Tier 1 supplier to international automakers like GM, Volkswagen, and Ford[35](index=35&type=chunk) - In the commercial vehicle sector, the company is a supplier to leading commercial vehicle manufacturers such as Daimler, China National Heavy Duty Truck, FAW Jiefang, Foton Motor, JAC Motors, Yutong Bus, CAMC, and CIMC Vehicles[35](index=35&type=chunk) [(III) Business Model](index=13&type=section&id=(III)%20Business%20Model) The company employs a customer-centric R&D system, order-based production, and a dual sales model for OEM and aftermarket, leveraging its proprietary Avatar low-carbon wheel technology - The company has established a customer and market-oriented R&D system, achieving full-stack independent R&D innovation across all aspects including materials, key processes, equipment, molds, and styling design[37](index=37&type=chunk) - The company focuses on the core demands for lightweight, high-performance, and low-cost solutions in emerging industries, leveraging the cross-industry adaptability of Avatar niobium micro-alloy materials to develop a new material product matrix through self-R&D, joint development, and equity cooperation[37](index=37&type=chunk) - The procurement model involves a dedicated procurement management team that rigorously reviews and assesses suppliers, selecting them through price comparison, negotiation, or bidding based on order volume[38](index=38&type=chunk) - The production model is primarily "order-based" production, organizing monthly production based on customer order forecasts, and also selecting some best-selling products for production based on market insights[40](index=40&type=chunk) - The OEM sales model involves direct supply to vehicle manufacturers, with a process including inspection, agreement signing, product design, price negotiation, contract signing, PPAP confirmation, mold development, sample confirmation, small-batch trials, and mass production[40](index=40&type=chunk) - The AM (Aftermarket) sales model primarily operates through a dealer network, including domestic dealer distribution, direct sales to large overseas auto parts chain stores, and sales to small specialized vehicle manufacturing factories via distributors[41](index=41&type=chunk)[42](index=42&type=chunk) [II. Analysis of Core Competencies](index=15&type=section&id=II.%20Analysis%20of%20Core%20Competencies) The company's core strengths include full-stack R&D, proprietary intelligent production lines, extensive market reach, product diversification into new sectors, a robust talent pool, and exclusive niobium micro-alloy material applications - The company has been deeply rooted in the wheel industry for nearly **30 years**, achieving full-stack independent R&D innovation across all aspects including materials, key processes, equipment, molds, and styling design, forming significant technological barriers[43](index=43&type=chunk) - The company ranks first in priority patent applications in the steel wheel industry, with patents accounting for over **1/3**, and ranks first globally among major competitors in both the number of invention patent applications and grants[44](index=44&type=chunk) - The main specialized machines, dedicated equipment, and molds for the Avatar low-carbon wheel production line are self-developed and manufactured by the company, representing a global first and possessing competitive barriers[46](index=46&type=chunk) - The company's products target the global market with a wide customer base, serving as a global Tier 1 supplier to international automakers like GM, Volkswagen, and Ford, as well as a supplier to domestic brands such as BYD and Chery, and joint venture brands[47](index=47&type=chunk) - The company's products are widely used across passenger vehicles, new energy vehicles, commercial vehicles, and special vehicles, achieving the replacement of mid-to-high-end aluminum alloy wheels through technological upgrades[49](index=49&type=chunk) - The company possesses professional teams in materials, processes, equipment, molds, and styling, and strengthens its talent pipeline through social recruitment, campus recruitment, systematic training, and equity incentives[50](index=50&type=chunk) - The exclusive revolutionary new material, Avatar niobium micro-alloy, offers advantages of high strength (up to **2000MPa**), good toughness, low cost, and low carbon emissions, capable of replacing various traditional metal materials[51](index=51&type=chunk) - Avatar niobium micro-alloy material has been applied in emerging fields such as embodied intelligent robots and low-altitude aircraft, with significant progress in robot structural component development, expected to achieve mass production within the year[52](index=52&type=chunk) [III. Main Business Analysis](index=18&type=section&id=III.%20Main%20Business%20Analysis) Revenue increased 10.04% to 2.123 billion yuan, driven by a 20.61% rise in auto parts manufacturing, while financial and income tax expenses significantly grew, and all cash flow activities were negative Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,122,676,046.30 | 1,928,991,542.81 | 10.04% | - | | Operating Cost | 1,848,328,653.58 | 1,762,538,284.89 | 4.87% | - | | Financial Expenses | 68,202,219.61 | 20,765,046.88 | 228.45% | Primarily due to the recognition of financial interest expenses for strategic investors during the reporting period | | Income Tax Expenses | 14,387,716.33 | 3,502,547.52 | 310.78% | Primarily due to the offset of deferred income tax expenses recognized in prior periods by operating profits during the reporting period | | R&D Investment | 40,934,949.00 | 22,783,812.86 | 79.67% | Primarily due to increased R&D investment during the reporting period | | Net Cash Flow from Operating Activities | -187,969,200.50 | -139,155,654.10 | -36.56% | Primarily due to increased operating investments during the reporting period | | Net Cash Flow from Investing Activities | -354,732,236.68 | -129,194,489.51 | -174.57% | Primarily due to increased purchases of wealth management products during the reporting period | | Net Cash Flow from Financing Activities | -345,174,981.43 | -56,501,000.00 | -507.26% | Primarily due to cash outflow for loan repayments during the reporting period | | Net Increase in Cash and Cash Equivalents | -888,349,885.14 | -323,882,832.52 | -174.28% | Primarily due to cash outflow for purchases of wealth management products and loan repayments during the reporting period | Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Current Reporting Period Amount (yuan) | % of Operating Revenue | Prior Year Period Amount (yuan) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Automotive Parts Manufacturing | 1,390,523,391.39 | 65.51% | 1,152,874,029.23 | 59.77% | 20.61% | | | Steel Trading | 576,972,300.29 | 27.18% | 641,293,901.17 | 33.25% | -10.03% | | By Product | Automotive Parts Manufacturing | 1,390,523,391.39 | 65.51% | 1,152,874,029.23 | 59.77% | 20.61% | | | Steel Trading | 576,972,300.29 | 27.18% | 641,293,901.17 | 33.25% | -10.03% | | By Region | Export (Steel Wheels and Assembled Wheels) | 274,659,666.77 | 12.94% | 374,413,918.21 | 19.41% | -26.64% | | | Domestic Sales (Steel Wheels and Assembled Wheels) | 1,115,863,724.62 | 52.57% | 778,460,111.02 | 40.36% | 43.34% | | | Domestic Sales (Steel Trading) | 576,972,300.29 | 27.18% | 641,293,901.17 | 33.25% | -10.03% | Industry, Product, or Region Accounting for Over 10% of Operating Revenue or Operating Profit | Category | Item | Operating Revenue | Operating Cost | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Automotive Parts Manufacturing | 1,390,523,391.39 | 1,132,472,290.74 | 18.56% | 20.61% | 13.52% | 5.09% | | | Steel Trading | 576,972,300.29 | 574,945,932.21 | 0.35% | -10.03% | -10.12% | 0.10% | | By Region | Export (Steel Wheels and Assembled Wheels) | 274,659,666.77 | 225,634,935.80 | 17.85% | -26.64% | -33.02% | 7.82% | | | Domestic Sales (Steel Wheels and Assembled Wheels) | 1,115,863,724.62 | 906,837,354.94 | 18.73% | 43.34% | 37.25% | 3.61% | - There were no significant changes in the company's profit composition or sources during the reporting period[55](index=55&type=chunk) [IV. Non-Core Business Analysis](index=19&type=section&id=IV.%20Non-Core%20Business%20Analysis) The company reported no applicable non-core business analysis during the reporting period, with no related data disclosed - The company reported no applicable non-core business analysis during the reporting period[59](index=59&type=chunk) [V. Analysis of Assets and Liabilities](index=20&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities) Total assets decreased by 1.54%, and net assets attributable to shareholders decreased by 0.23%, primarily due to reduced cash and increased operating investments and loan repayments, with significant asset restrictions for collateral Significant Changes in Asset Composition | Item | Period-End Amount (yuan) | % of Total Assets | Prior Year-End Amount (yuan) | % of Total Assets | % Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 640,942,306.66 | 6.92% | 1,706,856,291.52 | 18.15% | -11.23% | Primarily due to increased operating investments and cash outflow for loan repayments during the reporting period | | Fixed Assets | 2,036,059,341.10 | 21.98% | 1,586,437,348.87 | 16.87% | 5.11% | - | | Construction in Progress | 923,695,436.45 | 9.97% | 1,111,504,654.21 | 11.82% | -1.85% | - | | Short-Term Borrowings | 1,105,311,809.77 | 11.93% | 1,288,741,202.15 | 13.70% | -1.77% | - | | Long-Term Borrowings | 1,396,848,412.81 | 15.08% | 1,312,424,182.54 | 13.95% | 1.13% | - | - The company reported no significant overseas assets or assets and liabilities measured at fair value during the reporting period[61](index=61&type=chunk) - Period-end asset restrictions include cash and cash equivalents, accounts receivable financing, accounts receivable, fixed assets, intangible assets, investment properties, and construction in progress, totaling **1.757 billion yuan**, primarily used as collateral or pledge for loans[62](index=62&type=chunk) [VI. Analysis of Investment Status](index=21&type=section&id=VI.%20Analysis%20of%20Investment%20Status) The company had no securities, major equity, or non-equity investments, but engaged in hedging derivative investments (forward foreign exchange) to mitigate currency risk, generating a profit of 173,700 yuan - The company reported no securities investments, major equity investments, or ongoing major non-equity investments during the reporting period[63](index=63&type=chunk)[68](index=68&type=chunk) Hedging Derivative Investments | Derivative Investment Type | Period-End Investment Amount as % of Net Assets | | :--- | :--- | | Forward Foreign Exchange | 0.11% | | Total | 0.11% | **Reporting Period Actual Profit/Loss:** Profit of **173,700 yuan** - The company's foreign exchange derivatives are consistent with reducing exchange rate fluctuation risks, mitigating their impact on the company, and effectively avoiding and preventing foreign exchange market risks[65](index=65&type=chunk) - The company has established the "Foreign Exchange Derivative Transaction Management System" to avoid and prevent exchange rate or interest rate risks, prohibiting investment and arbitrage transactions[65](index=65&type=chunk) - The company reported no speculative derivative investments during the reporting period[67](index=67&type=chunk) [VII. Major Asset and Equity Disposals](index=23&type=section&id=VII.%20Major%20Asset%20and%20Equity%20Disposals) The company did not undertake any major asset or equity disposals during the reporting period - The company did not dispose of any major assets during the reporting period[69](index=69&type=chunk) - The company did not dispose of any major equity during the reporting period[70](index=70&type=chunk) [VIII. Analysis of Major Holding and Associate Companies](index=23&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Associate%20Companies) The company reported no significant information regarding major holding or associate companies that required disclosure during the reporting period - The company reported no significant information regarding major holding or associate companies that required disclosure during the reporting period[70](index=70&type=chunk) [IX. Structured Entities Controlled by the Company](index=24&type=section&id=IX.%20Structured%20Entities%20Controlled%20by%20the%20Company) The company reported no structured entities under its control during the reporting period - The company reported no structured entities under its control during the reporting period[71](index=71&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=24&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company addresses macroeconomic, industry, raw material price, and exchange rate risks through strategic adjustments, supply chain integration, and foreign exchange derivative strategies - The company addresses macroeconomic and industry fluctuation risks by adjusting business decisions, enhancing market competitiveness, technological innovation, and optimizing product structure[71](index=71&type=chunk) - The company manages raw material price fluctuation risks by deeply integrating with the upstream supply chain, fostering long-term cooperation, and leveraging negotiation power to control costs[72](index=72&type=chunk) - The company mitigates exchange rate fluctuation risks by deepening internal reforms, improving quality, reducing costs, increasing efficiency, and collaborating with banks to upgrade foreign exchange derivative trading strategies (forward and option combinations)[73](index=73&type=chunk) [XI. Implementation of Market Value Management System and Valuation Enhancement Plan](index=24&type=section&id=XI.%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) The company did not establish a market value management system or disclose a valuation enhancement plan during the reporting period - The company did not establish a market value management system during the reporting period[74](index=74&type=chunk) - The company did not disclose a valuation enhancement plan during the reporting period[74](index=74&type=chunk) [XII. Implementation of "Quality and Return Dual Enhancement" Action Plan](index=25&type=section&id=XII.%20Implementation%20of%20%22Quality%20and%20Return%20Dual%20Enhancement%22%20Action%20Plan) The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan during the reporting period - The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan during the reporting period[75](index=75&type=chunk) [Corporate Governance, Environment, and Society](index=25&type=section&id=Item%20IV.%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section covers changes in the company's governance, profit distribution, employee incentives, environmental disclosures, and social responsibility initiatives [I. Changes in Directors, Supervisors, and Senior Management](index=25&type=section&id=I.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) Director Gao Yunchuan resigned for personal reasons, and Shi Qingyun was elected as a director due to work relocation during the reporting period Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Gao Yunchuan | Director | Resigned | April 25, 2025 | Personal reasons | | Shi Qingyun | Director | Elected | May 30, 2025 | Work relocation | [II. Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period](index=25&type=section&id=II.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20in%20This%20Reporting%20Period) The company plans no cash dividends, bonus shares, or capital reserve conversions to 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) [III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=25&type=section&id=III.%20Implementation%20of%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company had no equity incentive plans, but its employee stock ownership plan sold 2,297,400 shares, leaving 102,650 shares, representing 0.01% of total share capital - The company had no equity incentive plans during the reporting period[78](index=78&type=chunk) All Valid Employee Stock Ownership Plans During the Reporting Period | Scope of Employees | Number of Employees | Total Shares Held (shares) | Changes | % of Total Share Capital | Funding Sources for the Plan | | :--- | :--- | :--- | :--- | :--- | :--- | | Company Directors (excluding independent directors), Supervisors, Senior Management, Middle and Senior Management, and Key Business Personnel | 153 | 102,650 | Employee stock ownership plan sold 2,297,400 shares during the reporting period | 0.01% | Employees' legal remuneration, self-raised funds, and other self-owned funds obtained through legal and administrative regulations | Shareholding of Directors, Supervisors, and Senior Management in Employee Stock Ownership Plans During the Reporting Period | Name | Position | Shares Held at Beginning of Period (shares) | Shares Held at End of Period (shares) | % of Total Share Capital | | :--- | :--- | :--- | :--- | :--- | | Jin Jiayan | Director, Deputy General Manager | 146,551.86 | 6,268.01 | 0.00% | | Sun Yufan | Supervisor | 27,478.47 | 1,175.25 | 0.00% | | Yu Feng | Deputy General Manager | 54,956.95 | 2,350.51 | 0.00% | | Shen Zheng | Deputy General Manager | 82,435.42 | 3,525.76 | 0.00% | | Sun Qunhui | Director, Board Secretary, Deputy General Manager | 82,435.42 | 3,525.76 | 0.00% | | Shi Qingyun | Director, Financial Controller | 82,515.55 | 3,529.19 | 0.00% | | Ye Caixiu | Supervisor | 45,797.46 | 1,958.75 | 0.00% | - During the reporting period, this employee stock ownership plan sold **2,297,400 shares**, with **102,650 shares** remaining[80](index=80&type=chunk) - The company has no other employee incentive measures[81](index=81&type=chunk) [IV. Environmental Information Disclosure](index=26&type=section&id=IV.%20Environmental%20Information%20Disclosure) The company and its main subsidiary, Zhejiang Jingu Co Ltd, are listed as legally required environmental information disclosure enterprises and have published reports on the Zhejiang Provincial Department of Ecology and Environment platform - The listed company and its main subsidiary, Zhejiang Jingu Co Ltd, are included in the list of enterprises legally required to disclose environmental information[81](index=81&type=chunk) - Environmental information disclosure reports can be accessed on the Zhejiang Provincial Department of Ecology and Environment's Enterprise Environmental Information Disclosure System[81](index=81&type=chunk) [V. Social Responsibility](index=26&type=section&id=V.%20Social%20Responsibility) The company actively fulfills its social responsibilities by promoting low-carbon initiatives through technological innovation, prioritizing employee welfare, operating with integrity, and supporting local public welfare - The company's mission is to promote a low-carbon society through industrial technological innovation, striving to create lighter, more precise, and aesthetically pleasing products to be the customer's first choice[82](index=82&type=chunk) - Avatar low-carbon wheels significantly reduce wheel weight through lightweight technology, enabling large-scale replacement of traditional wheels, with low energy consumption during production and energy saving and efficiency improvement during use, aligning with the "Dual Carbon" strategy[83](index=83&type=chunk) - The company diligently implements the "Labor Law" and "Labor Contract Law," establishing a comprehensive human resource management system, improving its compensation and benefits system, and emphasizing talent development and employee incentives[84](index=84&type=chunk) - The company adheres to honest operation, pays taxes according to law, contributes to local economic development and employment, and supports local education, culture, science, health, and poverty alleviation efforts[84](index=84&type=chunk) [Significant Matters](index=28&type=section&id=Item%20V.%20Significant%20Matters) This section addresses commitments, related party transactions, legal proceedings, and other significant events during the reporting period [I. Commitments Fulfilled or Overdue by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period](index=28&type=section&id=I.%20Commitments%20Fulfilled%20or%20Overdue%20by%20Controlling%20Shareholder%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20During%20and%20as%20of%20the%20End%20of%20the%20Reporting%20Period) The company reported no commitments fulfilled or overdue by its controlling shareholder, shareholders, related parties, acquirers, or the company itself during the reporting period - The company reported no commitments fulfilled or overdue by its actual controller, shareholders, related parties, acquirers, or the company itself during and as of the end of the reporting period[86](index=86&type=chunk) [II. Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company](index=28&type=section&id=II.%20Non-Operating%20Funds%20Occupied%20by%20Controlling%20Shareholder%20and%20Other%20Related%20Parties%20from%20the%20Listed%20Company) The company reported no non-operating funds occupied by its controlling shareholder or other related parties from the listed company during the reporting period - The company reported no non-operating funds occupied by its controlling shareholder or other related parties from the listed company during the reporting period[87](index=87&type=chunk) [III. Irregular External Guarantees](index=28&type=section&id=III.%20Irregular%20External%20Guarantees) The company reported no irregular external guarantees during the reporting period - The company reported no irregular external guarantees during the reporting period[88](index=88&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=28&type=section&id=IV.%20Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual report was unaudited - The company's semi-annual report was unaudited[89](index=89&type=chunk) [V. Board of Directors' and Supervisory Board's Explanations on "Non-Standard Audit Report" for This Reporting Period](index=28&type=section&id=V.%20Board%20of%20Directors'%20and%20Supervisory%20Board's%20Explanations%20on%20%22Non-Standard%20Audit%20Report%22%20for%20This%20Reporting%20Period) The company reported no non-standard audit report during the reporting period - The company reported no non-standard audit report during the reporting period[90](index=90&type=chunk) [VI. Board of Directors' Explanations on "Non-Standard Audit Report" for the Previous Year](index=28&type=section&id=VI.%20Board%20of%20Directors'%20Explanations%20on%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Previous%20Year) The company reported no non-standard audit report during the reporting period - The company reported no non-standard audit report during the reporting period[90](index=90&type=chunk) [VII. Bankruptcy and Reorganization Matters](index=28&type=section&id=VII.%20Bankruptcy%20and%20Reorganization%20Matters) The company reported no bankruptcy or reorganization matters during the reporting period - The company reported no bankruptcy or reorganization matters during the reporting period[90](index=90&type=chunk) [VIII. Litigation Matters](index=28&type=section&id=VIII.%20Litigation%20Matters) The company reported no significant or other litigation or arbitration matters during the reporting period - The company had no significant litigation or arbitration matters during this reporting period[91](index=91&type=chunk) - The company had no other litigation matters during the reporting period[91](index=91&type=chunk) [IX. Penalties and Rectification](index=29&type=section&id=IX.%20Penalties%20and%20Rectification) The company reported no penalties or rectification situations during the reporting period - The company reported no penalties or rectification situations during the reporting period[92](index=92&type=chunk) [X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=29&type=section&id=X.%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) The company reported no issues regarding the integrity status of itself, its controlling shareholder, or actual controller during the reporting period - The company reported no issues regarding the integrity status of itself, its controlling shareholder, or actual controller during the reporting period[93](index=93&type=chunk) [XI. Significant Related Party Transactions](index=29&type=section&id=XI.%20Significant%20Related%20Party%20Transactions) The company engaged in daily related party transactions, primarily purchasing steel from Angang Jingu (Hangzhou) Metal Materials Co Ltd for 507.9043 million yuan, within approved limits, and received various related party guarantees Related Party Transactions Related to Daily Operations | Related Party | Type of Related Transaction | Content of Related Transaction | Amount of Related Transaction (10,000 yuan) | Approved Transaction Limit (10,000 yuan) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | | Angang Jingu (Hangzhou) Metal Materials Co Ltd | Purchase of goods | Steel | 50,790.43 | 120,000 | No | - During the reporting period, the actual amount of daily related party transactions was **507.9043 million yuan**[93](index=93&type=chunk) - The company reported no related party transactions involving asset or equity acquisitions/disposals during the reporting period[95](index=95&type=chunk) - The company reported no related party transactions involving joint external investments during the reporting period[96](index=96&type=chunk) - The company reported no related party creditor-debtor relationships during the reporting period[97](index=97&type=chunk) - There were no deposits, loans, credit lines, or other financial services between the company and related financial companies[98](index=98&type=chunk)[99](index=99&type=chunk) - The company reported no other significant related party transactions during the reporting period[100](index=100&type=chunk) [XII. Significant Contracts and Their Performance](index=30&type=section&id=XII.%20Significant%20Contracts%20and%20Their%20Performance) The company had no entrustment, contracting, or leasing matters, but provided guarantees to subsidiaries totaling 1.02 billion yuan, representing 29.11% of net assets, with no entrusted wealth management or other major contracts - The company reported no entrustment, contracting, or leasing situations during the reporting period[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) External Guarantees by the Company and its Subsidiaries | Name of Guaranteed Party | Guarantee Limit (10,000 yuan) | Actual Guarantee Amount (10,000 yuan) | Guarantee Period | Fulfilled | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | | For homebuyers of Jingu Shares Headquarters Building office space | 9,000 | 0 | From the date the bank issues the loan to the homebuyer until the homebuyer completes the mortgage registration with the lender as mortgagee and the other rights certificate is delivered to the bank | No | No | | **Total Approved External Guarantee Limit at Period-End** | **9,000** | **Total Actual External Guarantee Balance at Period-End** | **0** | | | Guarantees Provided by the Company to its Subsidiaries | Name of Guaranteed Party | Guarantee Limit (10,000 yuan) | Actual Guarantee Amount (10,000 yuan) | Guarantee Period | Fulfilled | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | | Jingu Avatar Low-Carbon Wheel (Hefei) Co Ltd | 30,000 | 3,000 | 8 years | No | Yes | | Jingu Avatar Low-Carbon Wheel (Hefei) Co Ltd | 30,000 | 17,000 | 8 years | No | Yes | | Jingu Avatar Low-Carbon Wheel (Hefei) Co Ltd | 39,000 | 7,000 | 8 years | No | Yes | | Jingu Avatar Low-Carbon Wheel (Hefei) Co Ltd | 30,000 | 2,000 | 8 years | No | Yes | | Jingu Avatar Low-Carbon Wheel (Hefei) Co Ltd | 30,000 | 18,000 | 8 years | No | Yes | | Jingu Avatar Low-Carbon Wheel (Hefei) Co Ltd | 39,000 | 15,000 | 8 years | No | Yes | | Jingu Avatar Low-Carbon Wheel (Hefei) Co Ltd | 39,000 | 7,000 | 8 years | No | Yes | | Nanning Jingu Avatar Automotive Parts Manufacturing Co Ltd | 33,000 | 9,000 | 8 years | No | Yes | | Nanning Jingu Avatar Automotive Parts Manufacturing Co Ltd | 33,000 | 5,000 | 8 years | No | Yes | | Nanning Jingu Avatar Automotive Parts Manufacturing Co Ltd | 33,000 | 6,000 | 8 years | No | Yes | | Nanning Jingu Avatar Automotive Parts Manufacturing Co Ltd | 33,000 | 8,120 | 8 years | No | Yes | | Nanning Jingu Avatar Automotive Parts Manufacturing Co Ltd | 33,000 | 3,480 | 8 years | No | Yes | | Nanning Jingu Avatar Automotive Parts Manufacturing Co Ltd | 33,000 | 1,400 | 8 years | No | Yes | | Nanning Jingu Avatar Automotive Parts Manufacturing Co Ltd | 17,600 | 7,000 | 1 year | Yes | Yes | | Nanning Jingu Avatar Automotive Parts Manufacturing Co Ltd | 17,600 | 4,500 | 1 year | Yes | Yes | | Nanning Jingu Avatar Automotive Parts Manufacturing Co Ltd | 20,000 | 0 | 1 year | No | Yes | | **Total Approved Guarantee Limit for Subsidiaries at Period-End** | **122,000** | **Total Actual Guarantee Balance for Subsidiaries at Period-End** | **102,000** | | | - The company's total guarantee amount (A4+B4+C4) accounts for **29.11%** of its net assets[107](index=107&type=chunk) - The company reported no entrusted wealth management during the reporting period[109](index=109&type=chunk) - The company reported no other significant contracts during the reporting period[110](index=110&type=chunk) [XIII. Explanation of Other Significant Matters](index=34&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) The company reported no other significant matters requiring explanation during the reporting period - The company reported no other significant matters requiring explanation during the reporting period[111](index=111&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=34&type=section&id=XIV.%20Significant%20Matters%20of%20Company%20Subsidiaries) The company reported no significant matters concerning its subsidiaries during the reporting period - The company reported no significant matters concerning its subsidiaries during the reporting period[112](index=112&type=chunk) [Share Changes and Shareholder Information](index=35&type=section&id=Item%20VI.%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital, securities issuance, shareholder structure, and holdings of directors, supervisors, and senior management [I. Share Changes](index=35&type=section&id=I.%20Share%20Changes) The company's total share capital remained unchanged at 995,439,065 shares, with 7.57% restricted and 92.43% unrestricted, following a share repurchase of 5,042,400 shares for 56,063,168.00 yuan Share Changes | Share Class | Number Before Change (shares) | % Before Change | Net Increase/Decrease in This Change | Number After Change (shares) | % After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 75,355,066 | 7.57% | 0 | 75,355,066 | 7.57% | | II. Unrestricted Shares | 920,083,999 | 92.43% | 0 | 920,083,999 | 92.43% | | III. Total Shares | 995,439,065 | 100.00% | 0 | 995,439,065 | 100.00% | - The reasons, approval status, and transfer status of the company's share changes are not applicable[116](index=116&type=chunk)[118](index=118&type=chunk) - On November 28, 2024, the company approved a share repurchase plan, intended for equity incentive or employee stock ownership plans, with a repurchase amount not less than **30 million yuan** and not exceeding **60 million yuan**[116](index=116&type=chunk) - As of January 20, 2025, the company had cumulatively repurchased **5,042,400 shares**, accounting for **0.51%** of the total share capital, with a total transaction amount of **56,063,168.00 yuan**[117](index=117&type=chunk) [II. Securities Issuance and Listing](index=36&type=section&id=II.%20Securities%20Issuance%20and%20Listing) The company reported no securities issuance or listing activities during the reporting period - The company reported no securities issuance or listing activities during the reporting period[118](index=118&type=chunk) [III. Number of Shareholders and Shareholding](index=36&type=section&id=III.%20Number%20of%20Shareholders%20and%20Shareholding) As of the reporting period end, the company had 24,374 common shareholders, with Sun Fengfeng, Sun Jinguo, and three investment funds holding over 5% each, and some shares of Sun Fengfeng and Sun Jinguo pledged - The total number of common shareholders at the end of the reporting period was **24,374**[119](index=119&type=chunk) Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Pledged, Marked, or Frozen Status | Number of Pledged, Marked, or Frozen Shares (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sun Fengfeng | Domestic Natural Person | 10.09% | 100,473,422 | 75,355,066 | 25,118,356 | Pledged | 100,473,422 | | Sun Jinguo | Domestic Natural Person | 5.13% | 51,107,461 | 0 | 51,107,461 | Pledged | 51,107,461 | | Nanning Chantu Emerging No 1 Investment Fund Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 5.03% | 50,095,742 | 0 | 50,095,742 | Not Applicable | 0 | | Hefei Dongxin Chantu Venture Capital Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 5.03% | 50,095,742 | 0 | 50,095,742 | Not Applicable | 0 | | Hefei Chantu Xingchao Low-Carbon Venture Capital Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 5.03% | 50,095,742 | 0 | 50,095,742 | Not Applicable | 0 | - Sun Jinguo, Sun Liqun, and Sun Fengfeng are the company's controlling shareholders (Sun Jinguo and Sun Liqun are a married couple, and Sun Fengfeng is their son)[120](index=120&type=chunk) - Hebei Zongheng Group Fengnan Steel Co Ltd and Hebei Zhongzhong Cold Rolling Material Co Ltd are parties acting in concert[120](index=120&type=chunk) [IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=38&type=section&id=IV.%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period, as detailed in the 2024 annual report - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period[122](index=122&type=chunk) [V. Changes in Controlling Shareholder or Actual Controller](index=38&type=section&id=V.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[123](index=123&type=chunk) - The company's actual controller remained unchanged during the reporting period[123](index=123&type=chunk) [VI. Preferred Share Information](index=39&type=section&id=VI.%20Preferred%20Share%20Information) The company reported no preferred shares during the reporting period - The company reported no preferred shares during the reporting period[124](index=124&type=chunk) [Bond-Related Matters](index=40&type=section&id=Item%20VII.%20Bond-Related%20Matters) This section confirms that the company had no bond-related matters during the reporting period [Bond-Related Matters](index=40&type=section&id=Bond-Related%20Matters) The company reported no bond-related matters during the reporting period - The company reported no bond-related matters during the reporting period[126](index=126&type=chunk) [Financial Report](index=41&type=section&id=Item%20VIII.%20Financial%20Report) This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owner's equity [I. Audit Report](index=41&type=section&id=I.%20Audit%20Report) The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[128](index=128&type=chunk) [II. Financial Statements](index=41&type=section&id=II.%20Financial%20Statements) This section provides the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity [1. Consolidated Balance Sheet](index=41&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of June 30, 2025, consolidated total assets were 9.262 billion yuan, total liabilities 5.025 billion yuan, and total owner's equity 4.237 billion yuan Key Data from Consolidated Balance Sheet (June 30, 2025) | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 9,261,778,184.75 | 9,406,451,382.40 | | Total Current Assets | 3,717,390,372.33 | 4,069,985,249.10 | | Total Non-Current Assets | 5,544,387,812.42 | 5,336,466,133.30 | | Total Liabilities | 5,024,846,415.87 | 5,184,108,991.31 | | Total Current Liabilities | 2,015,447,582.67 | 2,320,558,599.71 | | Total Non-Current Liabilities | 3,009,398,833.20 | 2,863,550,391.60 | | Total Owner's Equity | 4,236,931,768.88 | 4,222,342,391.09 | | Total Owner's Equity Attributable to Parent Company | 3,504,319,839.60 | 3,512,354,473.08 | [2. Parent Company Balance Sheet](index=43&type=section&id=2.%20Parent%20Company%20Balance%20Sheet) As of June 30, 2025, parent company total assets were 7.457 billion yuan, total liabilities 3.934 billion yuan, and total owner's equity 3.523 billion yuan Key Data from Parent Company Balance Sheet (June 30, 2025) | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 7,457,061,323.74 | 7,397,838,727.16 | | Total Current Assets | 2,580,318,682.93 | 2,521,188,839.79 | | Total Non-Current Assets | 4,876,742,640.81 | 4,876,649,887.37 | | Total Liabilities | 3,933,949,404.51 | 3,844,261,514.41 | | Total Current Liabilities | 2,076,255,262.50 | 2,170,564,168.82 | | Total Non-Current Liabilities | 1,857,694,142.01 | 1,673,697,345.59 | | Total Owner's Equity | 3,523,111,919.23 | 3,553,577,212.75 | [3. Consolidated Income Statement](index=45&type=section&id=3.%20Consolidated%20Income%20Statement) In H1 2025, consolidated total operating revenue was 2.123 billion yuan, up 10.04%, with net profit attributable to parent company shareholders at 30.2715 million yuan, up 45.36% Key Data from Consolidated Income Statement (H1 2025) | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 2,122,676,046.30 | 1,928,991,542.81 | | II. Total Operating Costs | 2,059,105,551.78 | 1,902,398,676.57 | | III. Operating Profit | 66,907,394.25 | 25,009,868.80 | | IV. Total Profit | 66,976,973.70 | 24,679,813.43 | | V. Net Profit | 52,589,257.37 | 21,177,265.91 | | Net Profit Attributable to Parent Company Shareholders | 30,271,546.10 | 20,825,223.01 | | VI. Net Other Comprehensive Income After Tax | 2,079,332.08 | -8,766,449.55 | | VII. Total Comprehensive Income | 54,668,589.45 | 12,410,816.36 | | VIII. Earnings Per Share: Basic EPS | 0.03 | 0.02 | | VIII. Earnings Per Share: Diluted EPS | 0.03 | 0.02 | [4. Parent Company Income Statement](index=47&type=section&id=4.%20Parent%20Company%20Income%20Statement) In H1 2025, parent company operating revenue was 1.214 billion yuan, up 51.55%, but net profit significantly decreased by 81.66% to 9.6362 million yuan Key Data from Parent Company Income Statement (H1 2025) | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | I. Operating Revenue | 1,213,841,793.40 | 800,982,181.03 | | II. Operating Profit | 9,623,514.23 | 56,726,086.93 | | III. Total Profit | 9,710,653.03 | 56,391,709.45 | | IV. Net Profit | 9,636,229.11 | 52,537,852.26 | | VI. Total Comprehensive Income | 9,636,229.11 | 52,537,852.26 | [5. Consolidated Cash Flow Statement](index=49&type=section&id=5.%20Consolidated%20Cash%20Flow%20Statement) In H1 2025, consolidated net cash flows from operating, investing, and financing activities were all negative, resulting in a net decrease of 888 million yuan in cash and cash equivalents Key Data from Consolidated Cash Flow Statement (H1 2025) | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -187,969,200.50 | -139,155,654.10 | | Net Cash Flow from Investing Activities | -354,732,236.68 | -129,194,489.51 | | Net Cash Flow from Financing Activities | -345,174,981.43 | -56,501,000.00 | | Net Increase in Cash and Cash Equivalents | -888,349,885.14 | -323,882,832.52 | | Period-End Cash and Cash Equivalents Balance | 547,481,683.76 | 77,019,295.69 | [6. Parent Company Cash Flow Statement](index=50&type=section&id=6.%20Parent%20Company%20Cash%20Flow%20Statement) In H1 2025, parent company net cash flow from operating activities was 284 million yuan, while investing and financing activities were negative, leading to a net increase of 14.7983 million yuan in cash and cash equivalents Key Data from Parent Company Cash Flow Statement (H1 2025) | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 284,047,920.72 | 106,792,254.88 | | Net Cash Flow from Investing Activities | -16,783,080.31 | -86,163,061.23 | | Net Cash Flow from Financing Activities | -252,233,130.36 | -113,281,608.17 | | Net Increase in Cash and Cash Equivalents | 14,798,257.08 | -93,636,461.88 | | Period-End Cash and Cash Equivalents Balance | 221,247,536.45 | 33,476,018.39 | [7. Consolidated Statement of Changes in Owner's Equity](index=51&type=section&id=7.%20Consolidated%20Statement%20of%20Changes%20in%20Owner's%20Equity) In H1 2025, consolidated owner's equity increased by 14.5894 million yuan, with parent company owner's equity decreasing by 8.0346 million yuan and minority interest increasing by 22.6240 million yuan Consolidated Statement of Changes in Owner's Equity (H1 2025) | Item | Total Owner's Equity Attributable to Parent Company (yuan) | Minority Interest (yuan) | Total Owner's Equity (yuan) | | :--- | :--- | :--- | :--- | | I. Balance at End of Prior Year | 3,512,354,473.08 | 709,987,918.01 | 4,222,342,391.09 | | III. Amount of Changes in Current Period | -8,034,633.48 | 22,624,011.27 | 14,589,377.79 | | Including: Total Comprehensive Income | 32,350,878.18 | 22,317,711.27 | 54,668,589.45 | | Including: Owner's Contribution and Capital Reduction | -40,065,438.25 | 306,300.00 | -39,759,138.25 | | IV. Balance at End of Current Period | 3,504,319,839.60 | 732,611,929.28 | 4,236,931,768.88 | [8. Parent Company Statement of Changes in Owner's Equity](index=55&type=section&id=8.%20Parent%20Company%20Statement%20of%20Changes%20in%20Owner's%20Equity) In H1 2025, parent company owner's equity decreased by 30.4653 million yuan, primarily due to total comprehensive income and an increase in treasury stock Parent Company Statement of Changes in Owner's Equity (H1 2025) | Item | Total Owner's Equity (yuan) | | :--- | :--- | | I. Balance at End of Prior Year | 3,553,577,212.75 | | III. Amount of Changes in Current Period | -30,465,293.52 | | Including: Total Comprehensive Income | 9,636,229.11 | | Including: Owner's Contribution and Capital Reduction | -40,065,438.25 | | IV. Balance at End of Current Period | 3,523,111,919.23 | [III. Company Basic Information](index=59&type=section&id=III.%20Company%20Basic%20Information) Zhejiang Jingu Co Ltd, established on September 28, 2007, with a registered capital of 995,439,065.00 yuan, is listed on the Shenzhen Stock Exchange and primarily engages in automotive manufacturing - Zhejiang Jingu Co Ltd was established on September 28, 2007, with a registered capital of **995,439,065.00 yuan**, and its shares were listed on the Shenzhen Stock Exchange on October 21, 2010[164](index=164&type=chunk) - The company's main business is in the automotive manufacturing industry, with a business scope including automotive parts, hot-dip galvanized steel wheel manufacturing, wheel production, metal surface treatment equipment production and maintenance, metal products, general equipment sales, and real estate development and sales[164](index=164&type=chunk) - These financial statements were approved for external release by the company's 6th Board of Directors' 12th meeting on August 20, 2025[164](index=164&type=chunk) [IV. Basis of Financial Statement Preparation](index=59&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) The financial statements are prepared on a going concern basis, with no significant doubts about the company's ability to continue as a going concern for the next 12 months - The company's financial statements are prepared on a going concern basis[165](index=165&type=chunk) - There are no matters or circumstances that raise significant doubts about the company's ability to continue as a going concern for the 12 months from the end of the reporting period[166](index=166&type=chunk) [V. Significant Accounting Policies and Estimates](index=60&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's accounting policies and estimates, including accounting period, business cycle, functional currency, financial instrument classification, impairment, inventory valuation, fixed asset depreciation, and revenue recognition, with a retrospective adjustment for quality assurance accounting from January 1, 2024 - The company's financial statements comply with enterprise accounting standards, accurately and completely reflecting its financial position, operating results, and cash flows[167](index=167&type=chunk) - The accounting year runs from January 1 to December 31, with a short operating cycle, using **12 months** as the liquidity classification standard for assets and liabilities[168](index=168&type=chunk)[169](index=169&type=chunk) - The company classifies, recognizes, measures, and derecognizes financial assets and liabilities, and provides impairment allowances based on expected credit losses[180](index=180&type=chunk)[192](index=192&type=chunk)[197](index=197&type=chunk) - Fixed assets are depreciated using the straight-line method, with depreciation periods of **10-59 years** for buildings, **4-57 years** for machinery, **4-57 years** for transportation equipment, and **4-57 years** for other equipment[225](index=225&type=chunk) - Intangible assets include land use rights, management software, emission rights, and e-commerce operating platforms, amortized using the straight-line method[231](index=231&type=chunk)[232](index=232&type=chunk) - R&D expenditures are divided into research and development phases; research phase expenditures are expensed in the current period, while development phase expenditures are recognized as intangible assets when conditions are met[239](index=239&type=chunk) - Revenue recognition principles are based on identifying distinct performance obligations, determining whether they are satisfied over time or at a point in time, and measuring revenue at the transaction price allocated to each distinct performance obligation[256](index=256&type=chunk)[258](index=258&type=chunk) - The company has implemented the Ministry of Finance's "Interpretation No 18 of Accounting Standards for Business Enterprises" regarding the accounting treatment of guarantee-type quality assurance not constituting a distinct performance obligation, effective January 1, 2024, and has retrospectively adjusted comparable period information[283](index=283&type=chunk) [VI. Taxation](index=87&type=section&id=VI.%20Taxation) The company's main taxes include VAT (6%, 9%, 13%), Urban Maintenance and Construction Tax (5%, 7%), Corporate Income Tax (15%, 25%), Property Tax (1.2%, 12%), Education Surcharge (3%), and Local Education Surcharge (2%), benefiting from high-tech enterprise and Western Development tax incentives Major Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | VAT | Based on sales of goods and taxable services calculated according to tax laws, deducting deductible input VAT for the current period, the difference is the VAT payable | 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 5%, 7% | | Corporate Income Tax | Taxable income | 15%, 25% | | Property Tax | For value-based assessment, 1.2% of the remaining value after a one-time deduction of 30% from the original property value; for rent-based assessment, 12% of rental income | 1.2%, 12% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | - The company and its subsidiary Chengdu Jingu Wheel Co Ltd apply a **15%** corporate income tax rate, while other tax entities apply **25%**[286](index=286&type=chunk) - The company passed the high-tech enterprise re-evaluation for 2023, and from 2023-2025, it will pay corporate income tax at a reduced rate of **15%**[287](index=287&type=chunk) - The main business of subsidiary Chengdu Jingu Wheel Co Ltd belongs to a nationally encouraged industry, and from 2011-2030, it will pay corporate income tax at a rate of **15%**[287](index=287&type=chunk) - As an advanced manufacturing enterprise, from January 1, 2023, to December 31, 2027, the company is allowed to deduct **5%** of the current period's deductible input VAT from its payable VAT[288](index=288&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=88&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes on consolidated balance sheet, income statement, and cash flow items, including significant changes in monetary funds, financial assets, receivables, fixed assets, borrowings, and revenue/cost components - Period-end balance of monetary funds was **641 million yuan**, with **93.4606 million yuan** restricted, primarily for bank acceptance bill deposits and letter of credit deposits[290](index=290&type=chunk) - Period-end balance of trading fin