Important Notice This section outlines key declarations and disclaimers regarding the report's authenticity, board attendance, audit status, financial statements, profit distribution, forward-looking statements, related party transactions, and major risks [Statement on Report Authenticity](index=2&type=section&id=%E4%B8%80%E3%80%81%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%8F%8A%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E4%BF%9D%E8%AF%81%E5%8D%8A%E5%B9%B4%E5%BA%A6%E6%8A%A5%E5%91%8A%E5%86%85%E5%AE%B9%E7%9A%84%E7%9C%9F%E5%AE%9E%E6%80%A7%E3%80%81%E5%87%86%E7%A1%AE%E6%80%A7%E3%80%81%E5%AE%8C%E6%95%B4%E6%80%A7%EF%BC%8C%E4%B8%8D%E5%AD%98%E5%9C%A8%E8%99%9A%E5%81%87%E8%AE%B0%E8%BD%BD%E3%80%81%E8%AF%AF%E5%AF%BC%E6%80%A7%E9%99%88%E8%BF%B0%E6%88%96%E9%87%8D%E5%A4%A7%E9%81%97%E6%BC%8F%EF%BC%8C%E5%B9%B6%E6%89%BF%E6%8B%85%E4%B8%AA%E5%88%AB%E5%92%8C%E8%BF%9E%E5%B8%A6%E7%9A%84%E6%B3%95%E5%BE%8B%E8%B4%A3%E4%BB%BB%E3%80%82) The board of directors, supervisory board, and senior management guarantee the report's truthfulness, accuracy, and completeness, assuming legal responsibility - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, ensuring no false records, misleading statements, or major omissions, and assume individual and joint legal liabilities[3](index=3&type=chunk) [Board Attendance](index=2&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E5%85%A8%E4%BD%93%E8%91%A3%E4%BA%8B%E5%87%BA%E5%B8%AD%E8%91%A3%E4%BA%8B%E4%BC%9A%E4%BC%9A%E8%AE%AE%E3%80%82) All company directors attended the board of directors meeting - All company directors attended the board of directors meeting[4](index=4&type=chunk) [Audit Status](index=2&type=section&id=%E4%B8%89%E3%80%81%E6%9C%AC%E5%8D%8A%E5%B9%B4%E5%BA%A6%E6%8A%A5%E5%91%8A%E6%9C%AA%E7%BB%8F%E5%AE%A1%E8%AE%A1%E3%80%82) This semi-annual report has not been audited - This semi-annual report has not been audited[5](index=5&type=chunk) [Financial Report Statement](index=2&type=section&id=%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E8%B4%9F%E8%B4%A3%E4%BA%BA%E9%BB%84%E6%9D%B0%E3%80%81%E4%B8%BB%E7%AE%A1%E4%BC%9A%E8%AE%A1%E5%B7%A5%E4%BD%9C%E8%B4%9F%E8%B4%A3%E4%BA%BA%E9%BB%84%E9%91%AB%E9%A2%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E6%9C%BA%E6%9E%84%E8%B4%9F%E8%B4%A3%E4%BA%BA%EF%BC%88%E4%BC%9A%E8%AE%A1%E4%B8%BB%E7%AE%A1%E4%BA%BA%E5%91%98%EF%BC%89%E9%BB%84%E9%91%AB%E9%A2%96%E5%A3%B0%E6%98%8E%EF%BC%9A%E4%BF%9D%E8%AF%81%E5%8D%8A%E5%B9%B4%E5%BA%A6%E6%8A%A5%E5%91%8A%E4%B8%AD%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A%E7%9A%84%E7%9C%9F%E5%AE%9E%E3%80%81%E5%87%86%E7%A1%AE%E3%80%81%E5%AE%8C%E6%95%B4%E3%80%82) Company head Huang Jie, accounting supervisor Huang Xinying, and accounting manager Huang Xinying declare the financial report's truthfulness, accuracy, and completeness - Company head Huang Jie, accounting supervisor Huang Xinying, and accounting manager Huang Xinying declare the truthfulness, accuracy, and completeness of the financial report in the semi-annual report[5](index=5&type=chunk) [Profit Distribution Plan](index=2&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%86%B3%E8%AE%AE%E9%80%9A%E8%BF%87%E7%9A%84%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E9%A2%84%E6%A1%88%E6%88%96%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E9%A2%84%E6%A1%88) No profit distribution or capital reserve capitalization plan is applicable for this reporting period - The profit distribution plan or capital reserve capitalization plan for this reporting period approved by the board of directors is not applicable[6](index=6&type=chunk) [Forward-Looking Statements Risk Disclaimer](index=2&type=section&id=%E5%85%AD%E3%80%81%E5%89%8D%E7%9E%BB%E6%80%A7%E9%99%88%E8%BF%B0%E7%9A%84%E9%A3%8E%E9%99%A9%E5%A3%B0%E6%98%8E) Forward-looking statements in this report do not constitute a substantive commitment to investors, who should be aware of investment risks - The forward-looking descriptions in this report, such as future plans and development strategies, do not constitute a substantive commitment by the company to investors; investors are advised to be aware of investment risks[6](index=6&type=chunk) [Non-Operating Fund Occupation by Controlling Shareholder and Related Parties](index=2&type=section&id=%E4%B8%83%E3%80%81%E6%98%AF%E5%90%A6%E5%AD%98%E5%9C%A8%E8%A2%AB%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) The company has no non-operating fund occupation by controlling shareholders or other related parties - The company has no non-operating fund occupation by controlling shareholders or other related parties[7](index=7&type=chunk) [External Guarantees in Violation of Procedures](index=2&type=section&id=%E5%85%AB%E3%80%81%E6%98%AF%E5%90%A6%E5%AD%98%E5%9C%A8%E8%BF%9D%E5%8F%8D%E8%A7%84%E5%AE%9A%E5%86%B3%E7%AD%96%E7%A8%8B%E5%BA%8F%E5%AF%B9%E5%A4%96%E6%8F%90%E4%BE%9B%E6%8B%85%E4%BF%9D%E7%9A%84%E6%83%85%E5%86%B5) The company has not provided external guarantees in violation of prescribed decision-making procedures - The company has not provided external guarantees in violation of prescribed decision-making procedures[7](index=7&type=chunk) [Directors' Guarantee on Report Authenticity](index=2&type=section&id=%E4%B9%9D%E3%80%81%E6%98%AF%E5%90%A6%E5%AD%98%E5%9C%A8%E5%8D%8A%E6%95%B0%E4%BB%A5%E4%B8%8A%E8%91%A3%E4%BA%8B%E6%97%A0%E6%B3%95%E4%BF%9D%E8%AF%81%E5%85%AC%E5%8F%B8%E6%89%80%E6%8A%AB%E9%9C%B2%E5%8D%8A%E5%B9%B4%E5%BA%A6%E6%8A%A5%E5%91%8A%E7%9A%84%E7%9C%9F%E5%AE%9E%E6%80%A7%E3%80%81%E5%87%86%E7%A1%AE%E6%80%A7%E5%92%8C%E5%AE%8C%E6%95%B4%E6%80%A7) No situation exists where more than half of the directors cannot guarantee the truthfulness, accuracy, and completeness of the semi-annual report - The company has no situation where more than half of the directors cannot guarantee the truthfulness, accuracy, and completeness of the disclosed semi-annual report[7](index=7&type=chunk) [Major Risk Warning](index=2&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) The company faces significant risks including macroeconomics, market, international trade, raw material prices, product prices, exchange rates, and safety, urging investors to be aware of investment risks - The company has detailed the macroeconomic risks, market risks, international trade environment risks, raw material price fluctuation risks, product price risks, exchange rate risks, and safety risks in this report, reminding investors to be aware of investment risks[7](index=7&type=chunk) Definitions This section provides definitions for key terms and entities used throughout the report, ensuring clarity and consistent understanding of the content [Definitions of Common Terms](index=4&type=section&id=%E5%B8%B8%E7%94%A8%E8%AF%8D%E8%AF%AD%E9%87%8A%E4%B9%89) This section lists the definitions of common terms used in the report, including company names, subsidiary names, regulatory bodies, and the reporting period, to ensure clear understanding of the content - The reporting period is defined as January 1, 2025, to June 30, 2025[12](index=12&type=chunk) Definitions of Common Terms | Term | Definition | | | :--- | :--- | :--- | | Company, the Company, Sifang Technology | Refers to | Sifang Technology Group Co., Ltd | | Sifang Tank Storage | Refers to | Nantong Sifang Tank Container Manufacturing Co., Ltd | | Sifang Hong Kong | Refers to | NTTANK(HK)LIMITED | | Sifang Star (Shanghai) | Refers to | Sifang Star (Shanghai) Cold Chain Technology Co., Ltd | | Sifang Energy Saving | Refers to | Nantong Sifang Energy Saving Technology Co., Ltd | | Sifang Engineering | Refers to | Nantong Sifang Refrigeration Engineering Co., Ltd | | Jesco | Refers to | Jesco (Shanghai) Food Machinery Technology Co., Ltd | | CSRC, China Securities Regulatory Commission | Refers to | China Securities Regulatory Commission | | SSE | Refers to | Shanghai Stock Exchange | | Company Law | Refers to | Company Law of the People's Republic of China | | Securities Law | Refers to | Securities Law of the People's Republic of China | | Board of Directors | Refers to | Board of Directors of Sifang Technology Group Co., Ltd | | Supervisory Board | Refers to | Supervisory Board of Sifang Technology Group Co., Ltd | | Reporting Period, This Period | Refers to | January 1, 2025 - June 30, 2025 | Company Profile and Key Financial Indicators This section presents the company's fundamental information, contact details, recent changes, stock overview, and a summary of its key accounting data and financial performance indicators [Company Information](index=4&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section provides the company's basic registration information, including its Chinese name, abbreviation, foreign name, and legal representative - The company's Chinese name is Sifang Technology Group Co., Ltd, and its legal representative is Huang Jie[14](index=14&type=chunk) [Contact Person and Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section lists the contact information for the company's Board Secretary, including name, address, phone, fax, and email - The Board Secretary is Huang Xinying, with the contact address at 1180 Jianghai Avenue, Xingren Town, Tongzhou District, Nantong City, Jiangsu Province, and email zqb@ntsquare.com[15](index=15&type=chunk) [Brief Introduction to Changes in Basic Information](index=4&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E5%8F%98%E6%9B%B4%E7%AE%80%E4%BB%8B) The company's registered address changed on April 19, 2024, from "3888 Jintong Road, Xingren Town, Tongzhou District, Nantong City, Jiangsu Province" to "1180 Jianghai Avenue, Xingren Town, Tongzhou District, Nantong City, Jiangsu Province" - The company's registered address changed to 1180 Jianghai Avenue, Xingren Town, Tongzhou District, Nantong City, Jiangsu Province on April 19, 2024[16](index=16&type=chunk) [Brief Introduction to Changes in Information Disclosure and Document Custody Locations](index=5&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) The company designates Shanghai Securities News, China Securities Journal, and Securities Times for information disclosure, with the semi-annual report published on www.sse.com.cn and available at the company's Securities Affairs Department - The company's designated information disclosure newspapers are Shanghai Securities News, China Securities Journal, and Securities Times, the website for publishing the semi-annual report is www.sse.com.cn, and the company's semi-annual report is available at the Securities Affairs Department[18](index=18&type=chunk) [Company Stock Profile](index=5&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) The company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation "Sifang Technology" and stock code 603339, previously "Sifang Cold Chain" Company Stock Profile | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | Former Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | Sifang Technology | 603339 | Sifang Cold Chain | [Company's Key Accounting Data and Financial Indicators](index=5&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In the first half of 2025, the company's operating revenue decreased by **14.53%** year-on-year, net profit attributable to shareholders decreased by **47.82%**, but net cash flow from operating activities significantly increased by **337.55%** Key Accounting Data (Jan-Jun 2025 vs. Prior Year Period) | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 861,462,656.59 | 1,007,874,939.73 | -14.53 | | Total Profit (RMB) | 76,935,818.88 | 155,858,253.39 | -50.64 | | Net Profit Attributable to Shareholders of the Listed Company (RMB) | 69,319,227.58 | 132,849,984.40 | -47.82 | | Net Cash Flow from Operating Activities (RMB) | 218,757,751.84 | -92,088,308.10 | 337.55 | | Net Assets Attributable to Shareholders of the Listed Company (RMB) | 2,570,130,086.97 | 2,567,900,459.73 | 0.09 | | Total Assets (RMB) | 3,385,211,254.14 | 3,321,746,084.79 | 1.91 | Key Financial Indicators (Jan-Jun 2025 vs. Prior Year Period) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.22 | 0.43 | -48.84 | | Diluted Earnings Per Share (RMB/share) | 0.22 | 0.43 | -48.84 | | Basic Earnings Per Share Excluding Non-Recurring Gains and Losses (RMB/share) | 0.21 | 0.39 | -46.15 | | Weighted Average Return on Net Assets (%) | 2.73 | 5.28 | Decrease of 2.55 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Gains and Losses (%) | 2.55 | 4.83 | Decrease of 2.28 percentage points | [Non-Recurring Gains and Losses Items and Amounts](index=6&type=section&id=%E4%B9%9D%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) The company's non-recurring gains and losses totaled **RMB 4.75 million** in the first half of 2025, primarily from government subsidies and fair value changes of financial assets Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Government subsidies included in current profit and loss | 1,585,295.74 | | Gains and losses from fair value changes of financial assets and financial liabilities, and disposal of financial assets and financial liabilities, excluding effective hedge accounting related to normal business operations of non-financial enterprises | 3,905,991.71 | | Other non-operating income and expenses apart from the above | 93,510.00 | | Less: Income tax impact | 837,719.61 | | **Total** | **4,747,077.84** | Management Discussion and Analysis This section provides an in-depth analysis of the company's industry, main business operations, core competitiveness, and significant financial performance during the reporting period, along with risk management strategies [Description of the Company's Industry and Main Business in the Reporting Period](index=7&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%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company primarily engages in R&D, production, and sales of cold chain equipment and tank containers. The cold chain equipment industry benefits from consumption upgrades and rural revitalization, with expanding market demand; the tank container industry faces short-term pressure from macroeconomics and the downstream chemical industry but sees growth opportunities from multimodal transport policies [Company's Industry Situation](index=7&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) The cold chain equipment industry, widely used in food, medicine, and chemicals, including quick-freezing equipment, cold storage projects, heat exchangers, and insulation materials, benefits from consumption upgrades and policy promotion, leading to continuous market expansion. The tank container industry faces short-term pressure due to global economic downturns and a sluggish chemical sector, but China's multimodal transport policies support its application in hazardous chemical transport, indicating continued market demand growth - With the deepening of resident consumption upgrades and rural revitalization strategies, demand in China's cold chain equipment market continues to expand, promising broader development space in the future[30](index=30&type=chunk) - The tank container industry is affected by international tensions, RMB exchange rate fluctuations, and weak consumption, slowing domestic manufacturing, but China's recent intensive multimodal transport support policies, such as the CPC Central Committee's "Opinions on Further Reducing Logistics Costs" encouraging tank container use in hazardous chemical transport, led to a **10.7% year-on-year increase** in total transport volume to **606,000 TEU** by Chinese tank container operators in 2024[32](index=32&type=chunk) [Company's Main Business Situation](index=8&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5) The company's cold chain equipment business includes food quick-freezing equipment, heat exchangers, insulation materials, and cold storage projects, widely used in food processing and cold chain logistics. Its tank container business covers standard and special tank containers, serving chemical, energy, and food and beverage sectors - The company's cold chain equipment business products include freezing equipment primarily for food quick-freezing, heat exchanger equipment, insulation materials, and cold storage projects, widely used in the production, processing, storage, and entire cold chain logistics of aquatic products, meat, poultry, rice and flour products, baked goods, fruits and vegetables, pre-made dishes, various prepared foods, snack foods, and ice cream[34](index=34&type=chunk) - The company's tank container business products include standard tank containers and special tank containers, such as ISO tank containers, refrigeration unit/heating tank containers, hydrofluoric acid tank containers, high-purity liquid ammonia tank containers, lined tank containers, extra-long and extra-wide containers, T20/T22 tank containers, gas tank containers, 30-39KL tank containers, offshore tank containers, and intermediate bulk containers (IBCs), used in logistics for chemicals, energy, and food and beverages[38](index=38&type=chunk) [Discussion and Analysis of Operations](index=10&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In the first half of 2025, the company's cold chain equipment business saw gradual domestic market recovery and continued export growth, while strengthening EPC and cold storage engineering services. The tank container business, despite macroeconomic pressures, actively responded by promoting special tank containers and expanding into Southeast Asian and Middle Eastern markets. In technology R&D, 32 new intellectual property authorizations were obtained, and the company participated in developing several national and industry standards. Construction of special tank container expansion and LNG new material projects progressed steadily - In cold chain equipment business, the domestic market, driven by consumption upgrades, industrial structure optimization, and favorable policies, is gradually recovering and showing an improving trend, while exports continue to grow, with multiple new products successfully entering overseas markets, further enhancing the "Sifang" brand's international recognition[38](index=38&type=chunk) - In tank container business, the company accelerated market promotion of new special tank container products and intensified market development in domestic, Southeast Asian, and Middle Eastern regions, providing small-batch, multi-variety special tank container solutions for high-end application industries like lithium batteries and semiconductors, continuously exploring new customers[39](index=39&type=chunk)[40](index=40&type=chunk) - During the reporting period, the company obtained **32 new intellectual property authorizations**, including **5 invention patents** and **27 utility model patents**; it filed **24 new intellectual property applications**, including **3 invention patents**, **20 utility model patents**, and **1 design patent**. As of the end of the reporting period, the company held **408 valid intellectual properties**, including **91 invention patents**[40](index=40&type=chunk) - During the reporting period, two key group standards, T/CITS238-2025 "Test Method for Daily Evaporation Rate of Cryogenic Liquid Hydrogen Storage Containers" and T/CITS277-2025 "Technical Specification for Cryogenic Liquid Hydrogen Storage Systems," in which the company participated, were officially released, providing technical support for the liquid hydrogen storage and transportation industry. Concurrently, the national standard GB/T45580-2025 "Safety Technical Requirements for Road Transport Metal Movable Tank Containers for Liquid Dangerous Goods," with the company's deep involvement, was officially released on April 25 and implemented from August 1[40](index=40&type=chunk) - In project construction, the company's special tank container expansion project progressed steadily. The automated powder coating line completed single-unit equipment debugging and is about to undergo whole-line joint debugging. The LNG new material project completed the installation and debugging of the LNG enhanced polyurethane foam production line and the civil engineering for the automated warehouse and IP insulation board processing workshop[41](index=41&type=chunk) [Analysis of Core Competitiveness in the Reporting Period](index=11&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%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 lies in its robust R&D platform, strong customer relationships, quality assurance mechanism based on craftsmanship, benchmark management system under the excellence performance model, flexible and efficient employment mechanism, and comprehensive processing capabilities with advanced production facilities - The company has a Technology Research Institute, Jiangsu Quick-Freezing Equipment Engineering Technology Research Center, Jiangsu Tank Container Storage and Transportation Equipment Engineering Technology Research Center, and Nantong Green Energy-Saving Board Engineering Technology Research Center, and collaborates with multiple renowned universities, possessing strong R&D and manufacturing capabilities[42](index=42&type=chunk) - The company utilizes a comprehensive 4S customer service mechanism and CRM customer relationship management information system to track customer equipment usage data in real-time, providing proactive overall service solutions and remote diagnostic systems, earning high market reputation in the industry[42](index=42&type=chunk) - The company focuses on employee skill training and quality awareness enhancement, improving production efficiency and product quality through layout adjustments, equipment upgrades, and process innovation, and has obtained numerous domestic and international product certifications, including EU Pressure Equipment PED certification, EU Safety Certification CE, ASME U, U2, and R stamp qualifications, and China C2 mobile pressure vessel design and manufacturing qualifications[43](index=43&type=chunk)[44](index=44&type=chunk) - The company continuously implements the excellence performance management system, deepens organizational self-assessment, promotes efficient integration of various internal management systems and methods, enhances enterprise management advantages and opportunity identification capabilities, optimizes internal management processes, and improves management efficiency[44](index=44&type=chunk) - The company establishes skill master studios, organizes "Sifang Cup" skill competitions, implements skill talent grading, and establishes internal technical title evaluation mechanisms, integrating employee skill improvement with organizational performance, personal development, compensation systems, mentorship, and quality exemption, fostering a robust talent development mechanism[45](index=45&type=chunk) - The company continuously invests in technological upgrades, phasing out high-energy-consumption, low-efficiency equipment, and introducing numerous automated devices such as automatic feeding CNC lathes, laser tube cutting machines, large-workbench laser flat cutting machines, high-precision CNC bending machines, high-speed automatic sawing machines, and high-speed automatic punching machines, forming multiple automated production lines to enhance processing capabilities and product quality[45](index=45&type=chunk) [Major Operating Performance in the Reporting Period](index=13&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) In the first half of 2025, the company's operating revenue decreased by **14.53%** year-on-year, operating costs decreased by **9.05%**, and total profit decreased by **50.64%**. Financial expenses significantly reduced by **692.38%** due to exchange rate fluctuations. Net cash flow from operating activities surged by **337.55%** due to reduced cash payments for goods. Net cash flow from investing activities sharply declined by **292.16%** due to increased purchases of structured deposits. On the asset side, trading financial assets and construction in progress significantly increased, while accounts receivable and notes receivable also grew. On the liability side, short-term and long-term borrowings increased, and derivative financial liabilities decreased [Main Business Analysis](index=13&type=section&id=(%E4%B8%80)%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Current period operating revenue decreased by **14.53%** year-on-year, operating costs decreased by **9.05%**, and total profit decreased by **50.64%**. Financial expenses significantly reduced by **692.38%** year-on-year due to changes in exchange gains and losses from exchange rate fluctuations. Net cash flow from operating activities surged by **337.55%** due to reduced cash payments for goods. Net cash flow from investing activities sharply declined by **292.16%** due to increased purchases of structured deposits. Net cash flow from financing activities increased by **74.30%** due to increased borrowings and reduced other cash payments related to financing activities Financial Statement Related Items Fluctuation Analysis Table (Jan-Jun 2025 vs. Prior Year Period) | Item | Current Period Amount (RMB) | Prior Year Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 861,462,656.59 | 1,007,874,939.73 | -14.53 | | Operating Cost | 687,839,051.78 | 756,272,282.51 | -9.05 | | Selling Expenses | 19,075,676.58 | 18,173,560.13 | 4.96 | | Administrative Expenses | 35,985,359.94 | 35,797,129.99 | 0.53 | | Financial Expenses | -3,669,163.07 | 619,395.67 | -692.38 | | R&D Expenses | 41,192,797.64 | 46,269,766.45 | -10.97 | | Net Cash Flow from Operating Activities | 218,757,751.84 | -92,088,308.10 | 337.55 | | Net Cash Flow from Investing Activities | -320,735,040.79 | 166,907,054.40 | -292.16 | | Net Cash Flow from Financing Activities | -30,750,348.01 | -119,656,025.32 | 74.30 | - Explanation for financial expenses change: Due to exchange rate fluctuations, resulting in changes in exchange gains and losses[46](index=46&type=chunk) - Explanation for net cash flow from operating activities change: Due to reduced cash payments for goods in the current period[47](index=47&type=chunk) - Explanation for net cash flow from investing activities change: Due to increased purchases of structured deposits in the current period[47](index=47&type=chunk) - Explanation for net cash flow from financing activities change: Due to increased cash received from borrowings and reduced other cash payments related to financing activities in the current period[47](index=47&type=chunk) [Analysis of Assets and Liabilities](index=13&type=section&id=(%E4%B8%89)%20%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) At period-end, trading financial assets increased by **60.17%** to **RMB 480.5 million**, mainly due to increased structured deposits. Accounts receivable and notes receivable grew by **65.46%** and **65.26%** respectively, primarily due to moderately relaxed customer credit policies and increased notes receivable. Construction in progress increased by **57.57%** to **RMB 310.26 million**. Short-term borrowings increased by **200%** to **RMB 0.3 million**, and long-term borrowings increased by **RMB 40.62 million**. Derivative financial liabilities decreased by **100%** to **RMB 0**, and taxes payable decreased by **48.64%** Asset and Liability Status Fluctuation (2025 Period-End vs. Prior Year-End) | Item Name | Current Period-End Amount (RMB) | Current Period-End % of Total Assets | Prior Year-End Amount (RMB) | Prior Year-End % of Total Assets | Change from Prior Year-End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 480,500,000.00 | 14.19 | 300,000,000.00 | 9.03 | 60.17 | Mainly due to increased structured deposits in the current period | | Accounts Receivable | 99,473,391.03 | 2.94 | 60,119,448.20 | 1.81 | 65.46 | Mainly due to moderately relaxed customer credit policies in the current period | | Notes Receivable Financing | 5,691,166.94 | 0.17 | 3,443,804.50 | 0.10 | 65.26 | Mainly due to increased notes receivable in the current period | | Other Current Assets | 6,614,506.63 | 0.20 | 17,992,741.62 | 0.54 | -63.24 | Mainly due to decreased input VAT to be deducted in the current period | | Construction in Progress | 310,257,973.43 | 9.17 | 196,902,217.49 | 5.93 | 57.57 | Mainly due to increased construction in progress in the current period | | Short-term Borrowings | 300,000.00 | 0.01 | 100,000.00 | 0.00 | 200.00 | Mainly due to increased short-term borrowings in the current period | | Derivative Financial Liabilities | 0 | 0 | 3,771,969.80 | 0.11 | -100.00 | Mainly due to fair value changes of cash flow hedging instruments in the current period | | Taxes Payable | 10,798,087.93 | 0.32 | 21,023,967.12 | 0.63 | -48.64 | Mainly due to decreased income tax payable in the current period | | Long-term Borrowings | 40,615,790.00 | 1.20 | 0 | 0 | N/A | Mainly due to increased bank loans in the current period | - Other monetary funds of **RMB 43 million** at period-end are restricted as letter of credit margin[49](index=49&type=chunk) [Other Disclosure Matters](index=17&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) The company faces multiple risks including macroeconomics, market competition, international trade environment, raw material price fluctuations, product prices, exchange rates, and safety. The company actively responds by optimizing product structure, developing new products, strengthening supplier cooperation, cost control, hedging, and enhancing safety production management - The company faces macroeconomic risks, market risks, international trade environment risks, raw material price fluctuation risks, product price risks, exchange rate risks, and safety risks[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) - The company addresses various risks by optimizing product structure, developing new products, strengthening strategic cooperation with suppliers, improving material utilization and design process levels, preparing order cost budgets in advance, maintaining sales prices linked to major raw material prices, actively conducting foreign exchange hedging and other hedging operations for risk exposure management, and increasing investment in safety production and safety information construction[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) Corporate Governance, Environment and Society This section details the company's profit distribution plans, environmental information disclosure, and efforts in consolidating poverty alleviation achievements and rural revitalization, reflecting its governance and social responsibility [Profit Distribution or Capital Reserve Capitalization Plan](index=18&type=section&id=%E4%BA%8C%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company will not carry out profit distribution or capital reserve capitalization for the first half of 2025 - This semi-annual report does not include a profit distribution plan or capital reserve capitalization plan[6](index=6&type=chunk) Semi-Annual Proposed Profit Distribution Plan, Capital Reserve Capitalization Plan | Item | Value | | :--- | :--- | | Is there a distribution or capitalization | No | | Number of bonus shares per 10 shares (shares) | 0 | | Dividend per 10 shares (RMB) (tax inclusive) | 0 | | Number of shares converted from capital reserve per 10 shares (shares) | 0 | [Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=18&type=section&id=%E5%9B%9B%E3%80%81%E7%BA%B3%E5%85%A5%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%8A%AB%E9%9C%B2%E4%BC%81%E4%B8%9A%E5%90%8D%E5%8D%95%E7%9A%84%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E4%B8%BB%E8%A6%81%E5%AD%90%E5%85%AC%E5%8F%B8%E7%9A%84%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%83%85%E5%86%B5) One of the company's subsidiaries, Nantong Sifang Tank Container Manufacturing Co., Ltd., is on the list of enterprises required to disclose environmental information by law, and its environmental information disclosure report can be found on the Jiangsu Provincial online platform - One of the company's subsidiaries, Nantong Sifang Tank Container Manufacturing Co., Ltd., is included in the list of enterprises required to disclose environmental information by law, and its environmental information disclosure report can be found on the Jiangsu Provincial online platform[59](index=59&type=chunk)[60](index=60&type=chunk) [Specifics of Consolidating Poverty Alleviation Achievements, Rural Revitalization, and Other Work](index=19&type=section&id=%E4%BA%94%E3%80%81%E5%B7%A9%E5%9B%BA%E6%8B%93%E5%B1%95%E8%84%B1%E8%B4%AB%E6%94%BB%E5%9D%9A%E6%88%90%E6%9E%9C%E3%80%81%E4%B9%A1%E6%9D%91%E6%8C%AF%E5%85%B4%E7%AD%89%E5%B7%A5%E4%BD%9C%E5%85%B7%E4%BD%93%E6%83%85%E5%86%B5) The company actively fulfills its social responsibilities, investing a total of **RMB 94,537** in the first half of 2025 for rural revitalization, education assistance, and elderly care, including visiting nursing homes, donating scholarships, and assisting impoverished students - The company actively fulfills its social responsibilities, continuously carrying out public welfare activities such as rural revitalization, education assistance, and elderly care, with a total investment of **RMB 94,537** in the first half of the year[60](index=60&type=chunk) - This includes: conducting special visiting activities for nursing homes, donating living supplies totaling **RMB 16,000**; supporting rural education development, donating scholarships of **RMB 60,000** to Xingren and Xingdong primary and secondary schools; precisely assisting impoverished students, distributing relief funds of **RMB 3,000**; and investing **RMB 15,537** in targeted assistance, subsidies for needy individuals, and other public welfare projects[60](index=60&type=chunk) Important Matters This section covers the company's fulfillment of commitments, integrity status of key parties, and major related party transactions, highlighting significant events and compliance aspects [Fulfillment of Commitments](index=20&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company and its actual controller Huang Jie strictly fulfilled commitments related to the initial public offering of shares during the reporting period, including prospectus authenticity and avoiding horizontal competition, all performed on schedule and strictly - The company commits that the "Nantong Sifang Cold Chain Equipment Co., Ltd. Initial Public Offering Prospectus" contains no false records, misleading statements, or major omissions, and the company assumes legal responsibility for its truthfulness, accuracy, and completeness. If the prospectus and its summary contain false records, misleading statements, or major omissions, leading to the company not meeting the legal issuance conditions, the company will repurchase all newly issued shares from its initial public offering at the issue price within 30 days from the date the China Securities Regulatory Commission identifies the relevant illegal facts. If ex-right or ex-dividend events occur after the company's listing, the aforementioned issue price and repurchase share quantity will be adjusted accordingly. If the prospectus contains false records, misleading statements, or major omissions, causing investors to suffer losses in securities transactions, the company will compensate investors for their losses in accordance with the law. This commitment is long-term effective and has been strictly fulfilled[62](index=62&type=chunk) - Actual controller Huang Jie commits that he and other enterprises in which he holds interests, excluding the company, will not produce or develop any products that compete or may compete with the company's products, nor directly or indirectly operate any businesses that compete or may compete with the company's businesses; if the company further expands its product and business scope, he and other enterprises in which he holds interests, excluding the company, will not compete with the company's expanded products or businesses; if competition arises with the company's expanded products or businesses, he and other enterprises in which he holds interests, excluding the company, will avoid horizontal competition by ceasing to produce or operate the competing businesses or products, or by incorporating the competing businesses into the company's operations, or by transferring the competing businesses to an unrelated third party. This commitment is long-term effective and has been strictly fulfilled[62](index=62&type=chunk)[63](index=63&type=chunk) - Actual controller Huang Jie commits that if the "Nantong Sifang Cold Chain Equipment Co., Ltd. Initial Public Offering Prospectus" contains false records, misleading statements, or major omissions, he will use his controlling position in the joint-stock company to ensure that the joint-stock company initiates the repurchase of all newly issued shares from its initial public offering within 30 days after the China Securities Regulatory Commission identifies the relevant illegal facts, and will repurchase the shares publicly sold by him during this public offering at the issue price within the aforementioned period. If the prospectus contains false records, misleading statements, or major omissions, causing investors to suffer losses in securities transactions, he will compensate investors for their losses in accordance with the law. This commitment is long-term effective and has been strictly fulfilled[63](index=63&type=chunk) [Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller in the Reporting Period](index=22&type=section&id=%E4%B9%9D%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled court judgments or large overdue debts - During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled court judgments or large overdue debts[66](index=66&type=chunk) [Major Related Party Transactions](index=22&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company disclosed the execution of daily related party transactions for 2024 and the proposed daily related party transactions for 2025 in temporary announcements, which were approved by the board of directors, supervisory board, and general meeting of shareholders - On April 15, 2025, the company's Fifth Board of Directors' Second Meeting and Fifth Supervisory Board's Second Meeting reviewed and approved the "Proposal on the Execution of Daily Related Party Transactions in 2024 and the Estimated Daily Related Party Transactions in 2025"; on May 19, 2025, the company's 2024 Annual General Meeting of Shareholders reviewed and approved the "Proposal on the Execution of Daily Related Party Transactions in 2024 and the Estimated Daily Related Party Transactions in 2025"[67](index=67&type=chunk) Share Changes and Shareholder Information This section provides an overview of the company's share capital changes and detailed information on its shareholder structure, including the top ten shareholders and their relationships [Share Capital Changes](index=24&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) 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[72](index=72&type=chunk) [Shareholder Information](index=24&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **20,693** common shareholders. Among the top ten shareholders, Huang Jie held **40.27%** as the controlling shareholder, with family members Huang Xiaoying, Zhu Jianxin, Zhu Xiang, Huang Yingjie, Yang Yanping, and Huang Hua also listed. Yang Yanping and Huang Hua are Huang Jie's sisters, and Zhu Jianxin is Yang Yanping's spouse. The company's repurchase special account held **2.18%** of the total share capital - As of the end of the reporting period, the total number of common shareholders was **20,693**[72](index=72&type=chunk) Top Ten Shareholders' Shareholding (As of Report Period End) | Shareholder Name (Full Name) | Change During Reporting Period | Number of Shares Held at Period-End | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Huang Jie | 0 | 124,596,915 | 40.27 | Domestic Natural Person | | Huang Xiaoying | 0 | 7,355,004 | 2.38 | Domestic Natural Person | | Zhu Jianxin | 0 | 7,006,792 | 2.26 | Domestic Natural Person | | Zhu Xiang | 0 | 5,680,098 | 1.84 | Domestic Natural Person | | Huang Yingjie | 544,000 | 3,744,000 | 1.21 | Domestic Natural Person | | Yang Yanping | 0 | 2,777,257 | 0.90 | Domestic Natural Person | | Huang Hua | 0 | 2,280,872 | 0.74 | Domestic Natural Person | | Ling Jiyun | 0 | 2,000,000 | 0.65 | Domestic Natural Person | | Qian Dan | 0 | 1,800,073 | 0.58 | Domestic Natural Person | | Chen Yun | 80,024 | 1,787,747 | 0.58 | Domestic Natural Person | - Among the above shareholders, Yang Yanping and Huang Hua are Huang Jie's sisters, and Zhu Jianxin is Yang Yanping's spouse. Apart from these, the company is unaware of any other related party relationships or concerted actions among shareholders[75](index=75&type=chunk) - As of the end of the reporting period, the company's repurchase special account held **6,756,756 shares**, accounting for **2.18%** of the company's total share capital[75](index=75&type=chunk) Bond-Related Information This section confirms the absence of corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, and convertible corporate bonds during the reporting period [Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=26&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%EF%BC%88%E5%90%AB%E4%BC%81%E4%B8%9A%E5%80%BA%E5%88%B8%EF%BC%89%E5%92%8C%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E4%B8%9A%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7) The company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during the reporting period - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[78](index=78&type=chunk) [Convertible Corporate Bonds](index=26&type=section&id=%E4%BA%8C%E3%80%81%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E6%83%85%E5%86%B5) The company had no convertible corporate bonds during the reporting period - The company has no convertible corporate bonds[78](index=78&type=chunk) Financial Report This section presents the unaudited financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with notes on accounting policies, taxes, and other financial details [Audit Report](index=26&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This semi-annual report has not been audited - This semi-annual report has not been audited[79](index=79&type=chunk) [Financial Statements](index=26&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) 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 presenting the company's financial position, operating results, and cash flow - Financial statements include 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[79](index=79&type=chunk)[83](index=83&type=chunk)[86](index=86&type=chunk)[89](index=89&type=chunk)[92](index=92&type=chunk)[96](index=96&type=chunk)[99](index=99&type=chunk)[107](index=107&type=chunk) [Company Basic Information](index=47&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Sifang Technology Group Co., Ltd. was registered on June 15, 2012, and listed on the Shanghai Stock Exchange on May 19, 2016, primarily engaged in manufacturing freezing equipment and tank container storage and transportation equipment. The company includes 6 subsidiaries in its consolidated financial statements for this period - Sifang Technology Group Co., Ltd. was wholly transformed from Nantong Freezing Equipment Co., Ltd., registered with the Nantong Administration for Industry and Commerce on June 15, 2012, and its shares were listed on the Shanghai Stock Exchange on May 19, 2016[111](index=111&type=chunk) - The company's business scope includes research, manufacturing, sales, installation, maintenance, and technical services for freezing equipment, non-standard equipment, heat exchange equipment, food machinery, tank container storage and transportation equipment, special containers, refrigerated containers, pressure vessels, new energy-saving building panels, cold storage, controlled atmosphere storage, and supporting doors and windows[111](index=111&type=chunk) - The company includes Nantong Sifang Tank Container Manufacturing Co., Ltd. and 5 other subsidiaries in the scope of consolidated financial statements for this period[112](index=112&type=chunk) [Basis of Financial Statement Preparation](index=47&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The company's financial statements are prepared on a going concern basis, with no significant doubts about its ability to continue as a going concern for the 12 months from the end of the reporting period - The company's financial statements are prepared on a going concern basis[113](index=113&type=chunk) - There are no matters or circumstances that cause significant doubt about the company's ability to continue as a going concern for the 12 months from the end of the reporting period[114](index=114&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=47&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the company's significant accounting policies and estimates for financial instrument impairment, inventories, depreciation of fixed assets, construction in progress, intangible assets, and revenue recognition, including adherence to accounting standards, accounting period, operating cycle, functional currency, materiality criteria, business combinations, consolidated financial statement preparation, cash and cash equivalents, foreign currency transactions and translation, financial instruments, accounts receivable, inventories, contract assets, long-term equity investments, fixed assets, construction in progress, borrowing costs, intangible assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, revenue, contract costs, government grants, deferred income tax assets/liabilities, leases, safety production fees, and hedge accounting - The financial statements prepared by the company comply with the requirements of enterprise accounting standards and truly and completely reflect the company's financial position, operating results, changes in shareholders' equity, and cash flows[116](index=116&type=chunk) - The company's operating cycle is short, and 12 months is used as the liquidity classification standard for assets and liabilities[118](index=118&type=chunk) - The company has formulated specific accounting policies and accounting estimates for transactions or events such as financial instrument impairment, inventories, depreciation of fixed assets, construction in progress, intangible assets, and revenue recognition based on its actual production and operation characteristics[115](index=115&type=chunk) [Taxes](index=70&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, property tax, education surcharge, and local education surcharge. The company and its subsidiaries Sifang Tank Storage and Sifang Energy Saving enjoy a **15%** corporate income tax preferential rate as high-tech enterprises. Sifang Refrigeration and Jesco enjoy a **20%** corporate income tax preferential rate as small and micro-profit enterprises. The company's export goods VAT implements a "exemption, offset, and refund" policy Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of goods and taxable services calculated according to tax laws, less deductible input VAT for the current period, with the difference being VAT payable | 13%, 9% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 5% | | Corporate Income Tax | Taxable income | 15%, 20%, 25% | | Property Tax | For value-based assessment, 1.2% of the remaining value after a one-time deduction of 30% from the original value of the property; 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, Sifang Tank Storage, and Sifang Energy Saving have been recognized as high-tech enterprises, and their corporate income tax is levied at a reduced rate of **15%**[197](index=197&type=chunk) - The company's subsidiaries, Sifang Refrigeration and Jesco, qualify as small and micro-profit enterprises and pay corporate income tax at a rate of **20%**[198](index=198&type=chunk) - The company's export goods VAT implements an "exemption, offset, and refund" tax policy[199](index=199&type=chunk) [Notes to Consolidated Financial Statement Items](index=71&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes on various asset, liability, and owners' equity items in the consolidated financial statements, including monetary funds, trading financial assets, derivative financial assets, accounts receivable, contract assets, notes receivable financing, prepayments, other receivables, inventories, other current assets, construction in progress, intangible assets, long-term deferred expenses, deferred income tax assets/liabilities, other non-current assets, restricted assets, short-term borrowings, derivative financial liabilities, accounts payable, contract liabilities, employee benefits payable, taxes payable, other payables, other current liabilities, long-term borrowings, deferred income, share capital, capital reserves, treasury stock, other comprehensive income, special reserves, retained earnings, operating revenue and costs, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, credit impairment losses, asset impairment losses, asset disposal gains, non-operating income, non-operating expenses, income tax expenses, cash flow statement items, supplementary cash flow information, and foreign currency monetary items Monetary Funds (Period-End vs. Period-Beginning) | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Cash on Hand | 223,916.07 | 214,258.11 | | Bank Deposits | 471,875,423.88 | 602,904,565.25 | | Other Monetary Funds | 43,000,043.29 | 43,202,794.31 | | **Total** | **515,099,383.24** | **646,321,617.67** | Trading Financial Assets (Period-End vs. Period-Beginning) | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Structured Deposits | 480,500,000.00 | 300,000,000.00 | | **Total** | **480,500,000.00** | **300,000,000.00** | Accounts Receivable (Period-End vs. Period-Beginning) | Category | Period-End Book Value (RMB) | Period-Beginning Book Value (RMB) | | :--- | :--- | :--- | | Provision for bad debts based on portfolio | 99,473,391.03 | 60,119,448.20 | | **Total** | **99,473,391.03** | **60,119,448.20** | Inventories (Period-End vs. Period-Beginning) | Item | Period-End Book Value (RMB) | Period-Beginning Book Value (RMB) | | :--- | :--- | :--- | | Raw Materials | 349,788,699.23 | 379,799,543.25 | | Work in Progress | 121,997,795.22 | 123,795,000.95 | | Finished Goods | 290,738,631.63 | 298,119,022.78 | | Goods in Transit | 129,327,883.05 | 152,340,027.85 | | Materials in Transit | 26,634,814.13 | 83,856,121.31 | | **Total** | **918,487,823.26** | **1,037,909,716.14** | Construction in Progress (Period-End vs. Period-Beginning) | Item | Period-End Book Value (RMB) | Period-Beginning Book Value (RMB) | | :--- | :--- | :--- | | LNG Insulation System Enhanced Polyurethane Cryogenic Composite Material Project | 255,231,308.78 | 157,105,062.43 | | Special Tank Container Manufacturing Project | 53,744,327.05 | 34,349,119.20 | | Other Cold Chain Technical Transformation Projects | 1,282,337.60 | 5,448,035.86 | | **Total** | **310,257,973.43** | **196,902,217.49** | Long-term Borrowings (Period-End vs. Period-Beginning) | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Credit Loans | 40,615,790.00 | 0 | | **Total** | **40,615,790.00** | **0** | Operating Revenue and Operating Cost (Current Period vs. Prior Period) | Item | Current Period Amount (Revenue) (RMB) | Current Period Amount (Cost) (RMB) | Prior Period Amount (Revenue) (RMB) | Prior Period Amount (Cost) (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 831,458,164.92 | 669,022,988.48 | 982,699,222.21 | 742,131,073.92 | | Other Business | 30,004,491.67 | 18,816,063.30 | 25,175,717.52 | 14,141,208.59 | | **Total** | **861,462,656.59** | **687,839,051.78** | **1,007,874,939.73** | **756,272,282.51** | Investment Income (Current Period vs. Prior Period) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Investment income from matured wealth management products | 3,905,991.71 | 12,769,205.08 | | Discount interest on notes receivable | -22,283.24 | -33,197.84 | | **Total** | **3,883,708.47** | **12,736,007.24** | [R&D Expenses](index=120&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) In the first half of 2025, the company's total R&D expenses were **RMB 41.19 million**, a year-on-year decrease of **10.97%**, all expensed. The main components include direct labor, direct materials, fuel and power, depreciation, and amortization of intangible assets R&D Expenses (Current Period vs. Prior Period) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Direct Labor | 22,569,370.94 | 22,475,019.23 | | Direct Materials, Fuel and Power | 16,811,344.91 | 21,551,175.89 | | Depreciation and Amortization of Intangible Assets | 698,946.64 | 820,411.21 | | External R&D Investment | 208,446.60 | 0 | | Other Expenses | 904,688.55 | 1,423,160.12 | | **Total** | **41,192,797.64** | **46,269,766.45** | - All R&D expenditures in the current period were expensed, with no capitalized R&D expenditures[348](index=348&type=chunk) [Changes in Consolidation Scope](index=121&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) During the reporting period, the company had no changes in its consolidation scope due to business combinations not under common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries - During the reporting period, the company had no changes in its consolidation scope due to business combinations not under common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries[349](index=349&type=chunk)[350](index=350&type=chunk) [Equity in Other Entities](index=122&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) The company owns 6 subsidiaries: Sifang Tank Storage, Sifang Hong Kong, Sifang Star, Sifang Energy Saving, Sifang Refrigeration, and Jesco, all with **100%** ownership. Their business nature covers manufacturing, trade, R&D, construction and installation, and scientific research and technical services Subsidiary Information | Subsidiary Name | Main Operating Location | Registered Capital (RMB 10,000) | Business Nature | Shareholding Ratio (%) (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Sifang Tank Storage Co., Ltd. | Nantong, Jiangsu | 20,000.00 | Manufacturing | 100.00 | Establishment | | Sifang Hong Kong Co., Ltd. | Hong Kong | 59.32 | Trade | 100.00 | Business Combination under Common Control | | Sifang Star (Shanghai) Co., Ltd. | Shanghai | 15,000.00 | Research and Experimental Development | 100.00 | Establishment | | Sifang Energy Saving Technology Co., Ltd. | Nantong, Jiangsu | 60,000.00 | Manufacturing | 100.00 | Establishment | | Sifang Refrigeration Engineering Co., Ltd. | Nantong, Jiangsu | 1,000.00 | Construction and Installation | 100.00 | Establishment | | Jesco (Shanghai) Food Machinery Technology Co., Ltd. | Shanghai | 1,000.00 | Scientific Research and Technical Services | 100.00 | Establishment | [Government Grants](index=123&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) The company report period received total government grants of **RMB 1.94 million**, including **RMB 1.59 million** related to income and **RMB 0.36 million** related to assets. The period-end balance of government grants in deferred income was **RMB 21.25 million** Liability Items Involving Government Grants (Deferred Income) | Statement Item | Period-Beginning Balance (RMB) | Increase in Current Period (RMB) | Included in Other Income (RMB) | Period-End Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 20,607,295.00 | 1,000,000.00 | 355,500.00 | 21,251,795.00 | Asset Related | Government Grants Included in Current Profit and Loss | Type | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Income Related | 1,585,295.74 | 198,525.00 | | Asset Related | 355,500.00 | 3,085,500.00 | | **Total** | **1,940,795.74** | **3,284,025.00** | [Risks Related to Financial Instruments](index=124&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces credit risk, liquidity risk, and market risk (including interest rate risk and foreign exchange risk). The company manages these risks by depositing funds with highly-rated financial institutions, regularly assessing customer credit, optimizing financing structure, utilizing bank credit lines, and buying/selling foreign currencies. The company conducts foreign exchange hedging to offset exchange rate fluctuation risks and applies hedge accounting - The company faces various financial instrument-related risks in its daily activities, primarily including credit risk, liquidity risk, and market risk[354](index=354&type=chunk)[358](index=358&type=chunk)[359](index=359&type=chunk) - The company deposits bank deposits and other monetary funds with highly-rated financial institutions, regularly/continuously assesses the credit of customers trading on credit, comprehensively utilizes various financing methods such as bill settlement and bank loans, and adopts a combination of long-term and short-term financing, having obtained bank credit lines from multiple commercial banks. For foreign currency assets and liabilities, the company will buy and sell foreign currencies at market exchange rates when necessary to ensure net risk exposure is maintained at an acceptable level[357](index=357&type=chunk)[358](index=358&type=chunk)[360](index=360&type=chunk) - The company conducts foreign exchange hedging to offset risks and reduce fluctuations in enterprise profit and loss. The unexpired portion for the current period is included in other comprehensive income as **RMB 3,258,218.03**, and the expired portion for the current period is included in financial expenses as **RMB 1,480,643.66**[361](index=361&type=chunk)[363](index=363&type=chunk) Financial Liabilities Classified by Remaining Maturity (Period-End) | Item | Book Value (RMB) | Undiscounted Contractual Amount (RMB) | Within 1 Year (RMB) | 1-3 Years (RMB) | Over 3 Years (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Bank Loans | 40,915,790.00 | 44,225,873.36 | 300,000.00 | 12,688,352.31 | 31,237,521.05 | | Accounts Payable | 102,831,652.87 | 102,831,652.87 | 102,831,652.87 | 0 | 0 | | Other Payables | 9,284,416.57 | 9,284,416.57 | 9,284,416.57 | 0 | 0 | | **Subtotal** | **153,031,859.44** | **156,341,942.80** | **112,416,069.44** | **12,688,352.31** | **31,237,521.05** | Transfer of Financial Assets (Current Period) | Transfer Method | Nature of Transferred Financial Assets | Amount of Transferred Financial Assets (RMB) | Derecognition Status | Gains or Losses Related to Derecognition (RMB) | | :--- | :--- | :--- | :--- | :--- | | Bill Discounting | Notes Receivable Financing | 5,626,893.38 | Derecognized | -22,283.24 | | Bill Endorsement | Notes Receivable Financing | 7,297,637.33 | Derecognized | 0 | | **Total** | **/** | **12,924,530.71** | **/** | **-22,283.24** | [Fair Value Disclosure](index=128&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) At period-end, the company's total assets measured at fair value on a recurring basis amounted to **RMB 486.25 million**, primarily including trading financial assets (derivative financial assets and structured deposits) and notes receivable financing. Derivative financial assets are measured using Level 1 fair value, while structured deposits and notes receivable financing use Level 2 fair value, with minor differences between their fair value and book value Fair Value of Assets and Liabilities Measured at Period-End | Item | Level 1 Fair Value Measurement (RMB) | Level 2 Fair Value Measurement (RMB) | Level 3 Fair Value Measurement (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets (Derivative Financial Assets) | 61,227.88 | 0 | 0 | 61,227.88 | | Trading Financial Assets (Structured Deposits) | 0 | 480,500,000.00 | 0 | 480,500,000.00 | | Notes Receivable Financing | 0 | 5,691,166.94 | 0 | 5,691,166.94 | | **Total Assets Measured at Fair Value

Section I Important Notice, Table of Contents, and Definitions This section provides crucial disclaimers, the report's structured table of contents, and definitions for key terms used throughout the document [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The Board of Directors, Supervisory Board, and senior management guarantee the report's accuracy and completeness, with no plans for cash dividends or bonus shares - The Board of Directors, Supervisory Board, and senior management guarantee the semi-annual report's truthfulness, accuracy, and completeness, assuming individual and joint legal responsibility[3](index=3&type=chunk) - Company head Teng Fei, chief accountant Kong Youtian, and accounting department head Shen Wanjuan declare the financial report's truthfulness, accuracy, and completeness[3](index=3&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) This section presents the report's structured table of contents, outlining eight main chapters from company profile to financial statements - The report comprises eight main chapters, from important notices to financial statements, providing comprehensive company information[7](index=7&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines common terms and company abbreviations, specifies the reporting period, and lists full names of key entities - The reporting period refers to January 1, 2025, to June 30, 2025[13](index=13&type=chunk) - Company, this company, Suao Sensing refers to Jiangsu Aoliwei Sensing High-Tech Co., Ltd[13](index=13&type=chunk) - Lists major subsidiaries and affiliates including Schurholz Precision, Yantai Aoliwei, Wuhan Aoliwei, Europe Aoliwei, and Bonaire[13](index=13&type=chunk) Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and a summary of its key accounting data and financial performance indicators [I. Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) The company, listed on the Shenzhen Stock Exchange under stock code 300507, is named Suao Sensing, with Teng Fei as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Suao Sensing | | Stock Code | 300507 | | Listed Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | Jiangsu Aoliwei Sensing High-Tech Co., Ltd | | Legal Representative | Teng Fei | [II. Contact Person and Contact Information](index=6&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) The company's Board Secretary is Fang Tarang, and Securities Affairs Representative is Ling Jun, both located at 158 Xiangyuan Road, Yangzhou High-tech Zone Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Fang Tarang | 158 Xiangyuan Road, Yangzhou High-tech Industrial Development Zone, Jiangsu Province | 0514-82775359 | 0514-82775137 | olive@yos.net.cn | | Securities Affairs Representative | Ling Jun | 158 Xiangyuan Road, Yangzhou High-tech Industrial Development Zone, Jiangsu Province | 0514-82775359 | 0514-82775137 | olive@yos.net.cn | [III. Other Information](index=6&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) The company's registered address, office address, website, and information disclosure locations remained unchanged during the reporting period - The company's registered address, office address, website, and email remained unchanged during the reporting period, as detailed in the 2024 annual report[17](index=17&type=chunk) - Information disclosure and archiving locations remained unchanged during the reporting period, as detailed in the 2024 annual report[18](index=18&type=chunk) - The company's registration status remained unchanged during the reporting period, as detailed in the 2024 annual report[19](index=19&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=7&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In H1 2025, revenue grew **99.21%** to **1.104 billion yuan** due to Bonaire's consolidation, while net profit attributable to shareholders decreased **9.12%** to **57.24 million yuan** Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (yuan) | Previous Year's Corresponding Period (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,103,710,431.15 | 554,052,522.61 | 99.21% | | Net Profit Attributable to Shareholders of Listed Company | 57,244,550.56 | 62,991,650.76 | -9.12% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 40,743,813.36 | 39,336,830.15 | 3.58% | | Net Cash Flow from Operating Activities | 157,117,018.79 | -437,145.80 | 36,041.56% | | Basic Earnings Per Share (yuan/share) | 0.07 | 0.08 | -12.50% | | Diluted Earnings Per Share (yuan/share) | 0.07 | 0.08 | -12.50% | | Weighted Average Return on Net Assets | 2.74% | 3.20% | -0.46% | | **End of Current Period** | **End of Previous Year** | **Change from End of Previous Year** | | | Total Assets | 4,050,242,926.42 | 4,103,525,600.48 | -1.30% | | Net Assets Attributable to Shareholders of Listed Company | 2,088,449,093.78 | 2,059,803,311.95 | 1.39% | [V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=7&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) The company reported no differences in net profit or net assets between domestic and international or overseas accounting standards during the 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[21](index=21&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[22](index=22&type=chunk) [VI. Non-Recurring Gains and Losses Items and Amounts](index=7&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) Total non-recurring gains and losses amounted to **16.50 million yuan**, primarily from disposal of non-current assets, government grants, and fair value changes of financial instruments Non-Recurring Gains and Losses Items and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | 1,406,176.43 | | Government grants recognized in current profit or loss (excluding those closely related to the company's business and continuously enjoyed) | 5,768,550.61 | | Gains or losses from changes in fair value of financial assets and liabilities held for trading, and investment income from disposal of financial assets and liabilities, except for effective hedging activities related to the company's normal business operations | 13,364,400.14 | | Fund occupation fees charged to non-financial enterprises recognized in current profit or loss | -195,240.12 | | Other non-operating income and expenses apart from the above | 777,180.70 | | Less: Income tax impact | 3,110,846.00 | | Minority interest impact (after tax) | 1,509,484.56 | | Total | 16,500,737.20 | - The company has no other profit or loss items meeting the definition of non-recurring gains and losses, nor has it classified non-recurring items as recurring[25](index=25&type=chunk) Section III Management Discussion and Analysis This section provides a comprehensive analysis of the company's principal operations, core competencies, financial performance, investment activities, and risk factors during the reporting period [I. Principal Business Activities During the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company specializes in automotive components, including sensors, fuel system accessories, and new energy parts, expanding into thermal management and semiconductors through acquisitions and new product lines [1. Industry Development Overview](index=9&type=section&id=1%E3%80%81%E5%85%AC%E5%8F%B8%E6%89%80%E5%A4%84%E8%A1%8C%E4%B8%9A%E5%8F%91%E5%B1%95%E6%83%85%E5%86%B5) Operating in automotive core electronics, the company benefits from the 'New Four Modernizations' trend and policy support, with China's NEV production and sales growing over **40%** - The company belongs to the automotive parts and accessories manufacturing industry, specifically the automotive core electronics sector[27](index=27&type=chunk) - In H1 2025, China's automotive production and sales increased by **12.5%** and **11.4%** respectively, with new energy vehicle production and sales both growing over **40%**, reaching a penetration rate of **44.3%**[28](index=28&type=chunk) - The development of flying cars opens up new challenges and opportunities for the automotive sensor industry[29](index=29&type=chunk) - National policies continue to guide the independent innovation and upgrading of the automotive sensor industry, explicitly targeting domestic substitution for automotive-grade sensors[30](index=30&type=chunk) - Driven by trends in new energy, lightweighting, intelligence, and connectivity, the automotive industry has significantly increased the depth and breadth of plastic component applications, with single-vehicle plastic usage reaching **80-220 kilograms**[31](index=31&type=chunk) - The new energy vehicle component industry has entered a stage of rapid growth and technological innovation, with continuous national policy support and a development trend towards "low-carbon, internationalization, and lightweighting"[32](index=32&type=chunk) - The value of automotive thermal management system components has increased in new energy vehicles, with national policies promoting their transformation and upgrading towards high efficiency, environmental friendliness, and high reliability[34](index=34&type=chunk) [2. Company's Main Business and Products During the Reporting Period](index=10&type=section&id=2%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%90%A5%E4%B8%9A%E5%8A%A1%E5%8F%8A%E4%BA%A7%E5%93%81) As a high-tech enterprise, the company expanded its automotive component portfolio, including sensors and thermal management, through the Bonaire acquisition and new product line development - The company has established a diversified product matrix covering four core segments: sensors and accessories, fuel system accessories, automotive interior parts, and new energy components, and controls subsidiary Bonaire, which specializes in automotive thermal management system components[36](index=36&type=chunk) - The company continuously increases R&D investment to ensure its product lines fully cover the needs of traditional fuel vehicles, extended-range/hybrid vehicles, pure electric models, and emerging application areas[37](index=37&type=chunk) - In the thermal management sector, the acquisition of Bonaire was successfully completed, achieving deep synergistic integration[38](index=38&type=chunk) - The AMB copper-clad ceramic substrate project is progressing smoothly, achieving important customer certifications[38](index=38&type=chunk) - Successfully expanded new product lines including eddy current position sensors, current sensors, and new EMB force sensors, committed to domestic substitution and technological breakthroughs[38](index=38&type=chunk) [3. Company's Main Operating Model](index=11&type=section&id=3%EF%B8%B1%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E7%9A%84%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company's operating model integrates 'sales-driven production' with in-house manufacturing for high-tech products and outsourced processing for others, supported by strict supplier management - The sales model follows a "four steps forward, four steps back" process, from customer demand and company bidding, to signing product development agreements, sample production, small-batch supply, and finally mass production[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) - The production model adopts "production based on sales," with high-tech and complex products manufactured in-house, while lower-tech fuel system accessories and automotive interior parts are outsourced to external manufacturers[47](index=47&type=chunk)[48](index=48&type=chunk) - The company implements strict quality control over outsourced production, including pre-evaluation, technical guidance, and post-inspection, to ensure product quality[51](index=51&type=chunk) - The procurement model establishes a strict supplier management system, selecting qualified suppliers through comprehensive evaluation and signing annual framework procurement agreements[54](index=54&type=chunk) [4. Key Performance Drivers During the Reporting Period](index=14&type=section&id=4%EF%B8%B1%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%90%A5%E4%B8%9A%E7%BB%A9%E9%A9%B1%E5%8A%A8) H1 2025 revenue surged **99.21%** to **1.104 billion yuan** due to Bonaire's consolidation, but net profit declined **9.12%** to **57.24 million yuan** due to lower Bonaire gross margin - During the reporting period, the company achieved operating revenue of **1.104 billion yuan**, a year-on-year increase of **99.21%**, primarily due to the consolidation of subsidiary Bonaire's operating revenue into the company's consolidated financial statements in Q4 2024[56](index=56&type=chunk) - Net profit attributable to shareholders of the listed company was **57.24 million yuan**, a year-on-year decrease of **9.12%**[56](index=56&type=chunk) - The main reason for the decline in net profit was the decrease in Bonaire's gross margin due to annual price reductions from its major customer Chery, and the lower overall gross margin of its supplied products compared to the parent company's main products[56](index=56&type=chunk) - The company systematically optimizes full value chain operational efficiency through technological breakthroughs, zero quality defects, lean cost management, and enhanced response speed, while comprehensively integrating AI technology into various business scenarios[55](index=55&type=chunk) - The company will strengthen the integrated management of its subsidiary Bonaire, optimize its customer structure and credit policies, improve production and operational efficiency, and enhance gross margin levels[56](index=56&type=chunk) [II. Analysis of Core Competencies](index=15&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 strengths include robust R&D, extensive client network, diverse product portfolio, rapid service, and an experienced management team, with **207 patents** and **30+ years** in automotive sensors [1. Company's Own and R&D Advantages](index=15&type=section&id=1%E3%80%81%E5%85%AC%E5%8F%B8%E8%87%AA%E8%BA%AB%E5%8F%8A%E7%A0%94%E5%8F%91%E4%BC%98%E5%8A%BF) With **30+ years** in automotive oil level sensors and **207 patents**, the company is a high-tech enterprise with **4.36%** R&D investment, achieving breakthroughs in MEMS, current, and eddy current sensors - The company has been engaged in the R&D, manufacturing, and sales of automotive oil level sensors for over **30 years**, making it one of the largest domestic manufacturers of automotive oil level sensors[58](index=58&type=chunk) - As of June 30, 2025, the company holds a total of **207 patents**, including **27 invention patents**, **175 utility model patents**, and **5 design patents**[58](index=58&type=chunk) - The company is a national high-tech enterprise and a national "specialized, refined, unique, and new" small giant enterprise, with R&D investment of approximately **48.09 million yuan**, accounting for **4.36%** of operating revenue[58](index=58&type=chunk) - In core technology areas, domestic MEMS pressure sensors have achieved large-scale pre-installation applications; current sensors have made breakthroughs in dynamic range and battery safety monitoring accuracy; eddy current sensors are applied in electric vehicle motors and new aircraft; independently developed EMB brake force sensor platform technology indicators are globally leading with significant cost optimization; AMB silicon nitride copper-clad substrates have broken through the **800V** high-voltage platform technical bottleneck[59](index=59&type=chunk) [2. Customer Resource Advantages](index=15&type=section&id=2%E3%80%81%E5%AE%A2%E6%88%B7%E8%B5%84%E6%BA%90%E4%BC%98%E5%8A%BF) The company has established deep strategic partnerships with mainstream automakers like NIO and BYD, and international component leaders, ensuring a broad customer network - In the complete vehicle matching field, deep cooperation has been established with mainstream automakers such as NIO, XPeng Motors, BYD, Changan Deep Blue, SAIC-GM, Geely Auto, Jiangling Motors, and Chongqing Seres[62](index=62&type=chunk) - Within the Tier 1 supplier system, stable technical support relationships have been established with international component leaders such as United Automotive Electronic Systems, YAPP, BorgWarner, and Locat[62](index=62&type=chunk) [3. Product Advantages](index=16&type=section&id=3%E3%80%81%E4%BA%A7%E5%93%81%E4%BC%98%E5%8A%BF) The company's product portfolio includes market-leading OBD steam pressure sensors, high-reliability MEMS chips, and innovative solutions for various automotive applications, achieving significant domestic substitution - OBD steam pressure sensors were the first to achieve large-scale domestic MEMS low-micro pressure solutions for passenger vehicle pre-installation, holding the top market share among domestic sensor brands[63](index=63&type=chunk) - High-reliability, corrosion-resistant low-pressure MEMS chips (Super MEMS) maintain product accuracy meeting design requirements after durability testing in high temperature, high humidity, and highly corrosive gas conditions[63](index=63&type=chunk) - The MSG low-cost solution provides effective technical and cost competition against common ceramic capacitive pressure sensors in medium-pressure sensor fields such as air conditioning pressure, gearbox pressure, and air suspension pressure[64](index=64&type=chunk) - The core technology for National VI valves (anti-rollover valves, refueling volume control valves) and National VI refueling pipes is independently developed by the company, filling domestic gaps and replacing imports[64](index=64&type=chunk) - Current sensors feature large range and high precision, enabling domestic substitution; eddy current sensors are a new generation of automotive angle position sensors, offering excellent measurement accuracy, high-speed compatibility, and anti-interference capabilities[64](index=64&type=chunk) - AMB silicon nitride copper-clad substrates possess excellent thermal conductivity, high mechanical strength, good electrical insulation, and superior high-temperature resistance[65](index=65&type=chunk) [4. Rapid Service Advantages](index=16&type=section&id=4%E3%80%81%E5%BF%AB%E9%80%9F%E6%9C%8D%E5%8A%A1%E4%BC%98%E5%8A%BF) The company offers rapid pre-sales and after-sales service, including synchronized product development with clients and **24-hour** on-site support within **24 hours** of notification - The company has standardized and systematized product development through continuous technical accumulation, establishing a rapid-response project development team system that shortens new product development cycles and enables synchronized development with customers[66](index=66&type=chunk) - The company's sales customer service provides **24-hour** support, ensuring that after-sales service personnel arrive at the customer's site within **24 hours** of receiving notification to provide assistance[66](index=66&type=chunk) [5. Management Team Advantages](index=16&type=section&id=5%E3%80%81%E7%BB%8F%E8%90%A5%E7%AE%A1%E7%90%86%E5%9B%A2%E9%98%9F%E4%BC%98%E5%8A%BF) Adhering to a 'talent-first' philosophy, the company's core management team, with an average age of **42** and **15+ years** of industry experience, ensures a robust talent structure - The company has built a full-cycle talent development system covering selection, cultivation, utilization, and retention, focusing on creating a knowledge-based, innovative, and composite management and marketing echelon[68](index=68&type=chunk) - The current core management team has an average age of **42** and possesses over **15 years** of deep experience in the automotive parts industry, forming a healthy structure with organic衔接 across three generations of talent[68](index=68&type=chunk) [III. Analysis of Principal Business](index=17&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) Revenue grew **99.21%** to **1.104 billion yuan** due to Bonaire's consolidation, while financial expenses decreased **150.23%** from increased exchange gains, and investment cash flow saw significant outflow Year-on-Year Changes in Key Financial Data | Indicator | Current Period (yuan) | Previous Year's Corresponding Period (yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,103,710,431.15 | 554,052,522.61 | 99.21% | Primarily due to Bonaire's consolidation | | Operating Cost | 925,713,987.40 | 421,656,662.14 | 119.54% | Primarily due to Bonaire's consolidation | | Selling Expenses | 7,044,601.22 | 3,273,720.87 | 115.19% | Primarily due to Bonaire's consolidation | | Administrative Expenses | 63,347,677.63 | 45,213,762.81 | 40.11% | Primarily due to Bonaire's consolidation | | Financial Expenses | -3,464,460.18 | 6,897,163.05 | -150.23% | Primarily due to increased exchange gains | | R&D Investment | 48,090,338.93 | 23,579,327.87 | 103.95% | Primarily due to Bonaire's consolidation | | Net Cash Flow from Operating Activities | 157,117,018.79 | -437,145.80 | 36,041.56% | Primarily due to Bonaire's consolidation | | Net Cash Flow from Investing Activities | -187,416,771.76 | 80,786,997.74 | -331.99% | Primarily due to increased net investment in wealth management products in the current period | | Net Cash Flow from Financing Activities | -4,988,013.50 | 47,896,037.72 | -110.41% | Primarily due to decreased net loans and repayments in the current period | | Net Increase in Cash and Cash Equivalents | -34,468,814.97 | 127,998,940.67 | -126.93% | | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Automotive Sensors and Accessories | 119,748,774.29 | 94,857,570.03 | 20.79% | -5.67% | -5.35% | -0.26% | | Automotive Fuel System Accessories | 248,346,303.72 | 163,696,190.71 | 34.09% | 6.34% | 8.39% | -1.24% | | Automotive Interior Parts | 73,153,525.45 | 55,802,196.25 | 23.72% | 23.23% | 10.32% | 8.93% | | New Energy Components | 144,512,819.06 | 131,782,672.91 | 8.81% | 48.66% | 57.40% | -5.06% | | Automotive Thermal Management System Components | 469,003,128.12 | 435,021,030.42 | 7.25% | - | - | - | - There were no significant changes in the company's profit structure or sources during the reporting period[70](index=70&type=chunk) [IV. Analysis of Non-Principal Business](index=18&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Non-principal business income primarily stemmed from investment gains (**16.33 million yuan**, **18.22%** of total profit) and fair value changes (**2.77 million yuan**, **3.09%**), with only investment gains being sustainable Analysis of Non-Principal Business | Item | Amount (yuan) | Percentage of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 16,325,178.20 | 18.22% | Wealth management income and external investment income | Yes | | Fair Value Change Gain/Loss | 2,771,802.70 | 3.09% | Fair value changes of financial assets held for trading | No | | Asset Impairment | 7,508.44 | 0.01% | Inventory depreciation provision | No | | Non-Operating Income | 1,669,245.35 | 1.86% | Income from breach of contract compensation | No | | Non-Operating Expenses | 1,533,128.35 | 1.71% | External donations and customer claims | No | | Credit Impairment Losses | 242,609.43 | 0.27% | Provision for bad debts | No | [V. Analysis of Assets and Liabilities](index=18&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Total assets decreased **1.30%** to **4.05 billion yuan**, with slight shifts in asset composition; overseas equity assets totaled **87.99 million yuan**, and restricted assets were **84.28 million yuan** in bank acceptance bill deposits Significant Changes in Asset Composition | Item | Amount at End of Current Period (yuan) | Percentage of Total Assets | Amount at End of Previous Year (yuan) | Percentage of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 260,529,998.19 | 6.43% | 274,418,460.50 | 6.69% | -0.26% | | Accounts Receivable | 986,804,666.93 | 24.36% | 1,002,374,934.17 | 24.43% | -0.07% | | Long-Term Equity Investments | 87,993,439.71 | 2.17% | 73,260,519.54 | 1.79% | 0.38% | | Fixed Assets | 567,476,166.14 | 14.01% | 603,390,139.89 | 14.70% | -0.69% | | Construction in Progress | 89,240,253.19 | 2.20% | 62,066,757.56 | 1.51% | 0.69% | | Short-Term Borrowings | 334,370,404.31 | 8.26% | 313,860,318.94 | 7.65% | 0.61% | | Long-Term Borrowings | 29,341,040.00 | 0.72% | 31,000,000.00 | 0.76% | -0.04% | Key Overseas Assets | Specific Asset Content | Reason for Formation | Asset Scale (million yuan) | Location | Profit Status (million yuan) | Proportion of Overseas Assets to Company's Net Assets | | :--- | :--- | :--- | :--- | :--- | :--- | | Equity Assets | Wholly-owned subsidiary Europe Aoliwei acquired 32% equity in Schürholz GmbH and two other companies | 87.99 | Germany and Poland | 5.88 | 4.22% | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (yuan) | Fair Value Change Gain/Loss for Current Period (yuan) | Amount Purchased in Current Period (yuan) | Amount Sold in Current Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 438,086,005.33 | 2,771,802.70 | 375,200,000.00 | 260,194,612.43 | 555,863,195.60 | | Other Non-Current Financial Assets | 39,760,015.45 | - | 9,000,000.00 | - | 48,760,015.45 | | Subtotal of Financial Assets | 477,846,020.78 | 2,771,802.70 | 384,200,000.00 | 260,194,612.43 | 604,623,211.05 | Asset Restrictions at End of Reporting Period | Item | Ending Balance (yuan) | Beginning Balance (yuan) | | :--- | :--- | :--- | | Bank Acceptance Bill Deposits | 84,283,461.46 | 62,503,108.80 | | Credit Deposits | - | 1,200,000.00 | | Total | 84,283,461.46 | 63,703,108.80 | [VI. Analysis of Investment Status](index=20&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company invested **9 million yuan** during the period, with **516 million yuan** in outstanding wealth management products, and **476 million yuan** in 2021 raised funds were reallocated, including for working capital Investment Amount During the Reporting Period | Investment Amount in Current Period (yuan) | Investment Amount in Previous Year's Corresponding Period (yuan) | Change Rate | | :--- | :--- | :--- | | 9,000,000.00 | 0.00 | 100.00% | - There were no significant equity or non-equity investments during the reporting period[84](index=84&type=chunk) Financial Assets Measured at Fair Value | Asset Category | Initial Investment Cost (yuan) | Fair Value Change Gain/Loss for Current Period (yuan) | Amount Purchased in Current Period (yuan) | Amount Sold in Current Period (yuan) | Ending Balance (yuan) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Other | 438,086,005.33 | 2,771,802.70 | 375,200,000.00 | 260,194,612.43 | 555,863,195.60 | Own Funds | | Total | 438,086,005.33 | 2,771,802.70 | 375,200,000.00 | 260,194,612.43 | 555,863,195.60 | -- | Overview of Wealth Management Products | Specific Type | Source of Funds for Wealth Management | Amount of Wealth Management Occurred (million yuan) | Outstanding Balance (million yuan) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 21,000 | 16,000 | | Other Categories | Own Funds | 35,560.54 | 35,560.54 | | Total | | 56,560.54 | 51,560.54 | - Total funds raised in 2021 amounted to **476 million yuan**, with a zero balance in the dedicated fund account as of June 30, 2025[88](index=88&type=chunk)[89](index=89&type=chunk) - The 'Intelligent Production Line Project for Automotive Sensor Products' investment scale was reduced from **340 million yuan** to **180 million yuan**, with **183.7 million yuan** reallocated to permanently supplement working capital[93](index=93&type=chunk) - The 'Commercial Vehicle Telematics System Project' has been terminated, with all remaining raised funds permanently supplementing the company's working capital[93](index=93&type=chunk) - The company had no derivative investments or entrusted loans during the reporting period[101](index=101&type=chunk)[102](index=102&type=chunk) [VII. Significant Asset and Equity Disposals](index=29&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company did not undertake any significant asset or equity disposals during the reporting period - The company did not dispose of significant assets during the reporting period[103](index=103&type=chunk) - The company did not dispose of significant equity during the reporting period[104](index=104&type=chunk) [VIII. Analysis of Major Controlled and Invested Companies](index=29&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%90%A5%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Schurholz Precision, a key subsidiary, generated **211 million yuan** in revenue and **45.48 million yuan** in net profit in H1 2025, while the company expanded competitiveness through equity investments in semiconductor firms Major Subsidiaries and Invested Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Schurholz Precision | Subsidiary | R&D, production, and sales of automotive fuel pump inserts, lock rings, and other stamped parts | 10,000,000 | 426,533,791.78 | 377,339,958.79 | 210,943,840.05 | 51,429,852.03 | 45,476,169.13 | Acquisition and Disposal of Subsidiaries During the Reporting Period | Company Name | Method of Acquisition and Disposal of Subsidiaries During the Reporting Period | Impact on Overall Production, Operations, and Performance | | :--- | :--- | :--- | | Shanghai Indasens Semiconductor Technology Co., Ltd. | Equity Investment | Expanded the company's comprehensive competitiveness | | Shanghai Xinhuarui Semiconductor Technology Co., Ltd. | Equity Investment | Expanded the company's comprehensive competitiveness | - Schurholz Precision achieved **211 million yuan** in operating revenue and **45.48 million yuan** in net profit from January to June 2025[106](index=106&type=chunk) [IX. Structured Entities Controlled by the Company](index=30&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company did not control any structured entities during the reporting period - The company had no controlled structured entities during the reporting period[107](index=107&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=30&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces risks including customer concentration, declining gross margins, rising raw material costs, and integration challenges, addressed by diversifying clients, enhancing high-value products, and optimizing operations - Business concentration risk with major customers: High entry barriers in the automotive industry lead to high customer concentration, potentially weakening bargaining power. The company is strengthening new customer and new product development to reduce concentration[107](index=107&type=chunk) - Product gross margin decline risk: Intensified competition in the automotive market may lead to vehicle manufacturers passing on costs to component suppliers. The company is mitigating pressure by increasing high-value-added new model supporting products[108](index=108&type=chunk) - Raw material price increase risk: Fluctuations in international commodity prices and changes in global trade policies create procurement pressure for raw materials. The company needs to respond through supply chain optimization and cost control[109](index=109&type=chunk) - Risk of core technical personnel loss: Core technical personnel are crucial for product development and process optimization, and their loss could impact operations and lead to technology leakage. The company has taken measures to attract and retain talent[110](index=110&type=chunk)[111](index=111&type=chunk) - Quality liability risk: Automotive manufacturers have high quality requirements for components, and defective products may lead to recalls and compensation risks. The company needs to strengthen its quality management system[112](index=112&type=chunk) - Outsourced processing management risk: Some products are manufactured through outsourcing, posing risks of quality issues or untimely supply due to improper supplier selection or poor management. The company will strengthen outsourced supplier management[113](index=113&type=chunk) - Risk of gradual elimination of traditional energy vehicles: National policies promote automotive electrification, and the company's traditional products face the risk of reduced demand. The company is actively developing new energy vehicle supporting products[114](index=114&type=chunk) - Integration risks of acquired target companies: Merged companies may have differences in market environment, regulatory policies, and corporate culture, leading to uncertainties in integration effectiveness and expected benefits, potentially resulting in goodwill impairment[115](index=115&type=chunk) [XI. Registration Form for Research, Communication, and Interview Activities During the Reporting Period](index=31&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E7%99%BB%E8%AE%B0%E8%A1%A8) On May 12, 2025, the company hosted investors online to discuss its 2024 annual report during an earnings briefing Registration Form for Research, Communication, and Interview Activities During the Reporting Period | Reception Date | Reception Location | Reception Method | Type of Reception Object | Reception Object | Main Content Discussed and Materials Provided | Index of Basic Survey Information | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | May 12, 2025 | Online (Online "Appointment Research") | Other | Other | Investors participating in this earnings briefing | Information related to the company's 2024 annual report | 300507 Suao Sensing Investor Relations Management Information 20250512 | [XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=32&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not established a market value management system nor disclosed any valuation enhancement plans - The company has not formulated a market value management system[117](index=117&type=chunk) - The company has not disclosed a valuation enhancement plan[117](index=117&type=chunk) [XIII. Implementation of 'Quality and Return Dual Enhancement' Action Plan](index=32&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%22%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%22%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not disclosed an announcement regarding its 'Quality and Return Dual Enhancement' action plan - The company has not disclosed an announcement regarding its 'Quality and Return Dual Enhancement' action plan[117](index=117&type=chunk) Section IV Corporate Governance, Environment, and Society This section details changes in the company's governance structure, profit distribution, employee incentive plans, environmental disclosures, and social responsibility initiatives [I. Changes in Directors, Supervisors, and Senior Management](index=33&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) There were no changes in the company's directors, supervisors, or senior management during the reporting period - There were no changes in the company's directors, supervisors, or senior management during the reporting period, as detailed in the 2024 annual report[119](index=119&type=chunk) [II. Profit Distribution and Capital Reserve Conversion to Share Capital in Current Period](index=33&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for 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[120](index=120&type=chunk) [III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=33&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The 2022 restricted stock incentive plan continued, with the Board approving vesting conditions for initial and reserved grants, while some unvested restricted shares were cancelled - The company's 2022 restricted stock incentive plan continued, with the Board approving the vesting conditions for the second vesting period of the initial grant and the first vesting period of the reserved grant during the reporting period[124](index=124&type=chunk) - Concurrently, the 'Proposal on Cancelling Part of Granted but Unvested Class II Restricted Shares' was approved[124](index=124&type=chunk) - The company did not implement any employee stock ownership plans or other employee incentive measures during the reporting period[125](index=125&type=chunk) [IV. Environmental Information Disclosure](index=34&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises legally required to disclose environmental information[125](index=125&type=chunk) [V. Social Responsibility](index=34&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company actively fulfills its social responsibilities by enhancing governance, protecting stakeholder rights, ensuring fair employee treatment, and delivering quality products and services to customers and suppliers - Shareholder and creditor rights protection: The company strictly adheres to laws and regulations, improves its governance structure, strengthens internal controls, standardizes information disclosure, safeguards investors' right to know, and implements its cash dividend policy[126](index=126&type=chunk) - Employee rights protection: The company regards employees as its most valuable asset, providing equal development opportunities, prioritizing workplace safety, labor protection, and employee well-being, and has established comprehensive human resource management systems and employee care initiatives to foster mutual growth[126](index=126&type=chunk) - Customer and supplier rights protection: Upholding its mission to "create value," the company is committed to providing high-quality and reliable products and services to customers, protecting consumer interests through a sound quality management system, and safeguarding the legitimate rights and interests of suppliers and customers[127](index=127&type=chunk)[128](index=128&type=chunk) Section V Significant Matters This section covers significant events including commitments, related party transactions, legal proceedings, penalties, and changes in control, providing a comprehensive overview of material developments [I. Commitments Fulfilled and Overdue Unfulfilled by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period](index=36&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) No commitments by the controlling shareholder, related parties, or the company were fulfilled or overdue unfulfilled during the reporting period - During the reporting period, there were no commitments by the company's controlling shareholder, shareholders, related parties, acquirers, or the company that were either fulfilled or overdue and unfulfilled as of the end of the reporting period[130](index=130&type=chunk) [II. Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties](index=36&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) There was no non-operating occupation of listed company funds by the controlling shareholder or other related parties during the reporting period - During the reporting period, there was no non-operating occupation of listed company funds by the controlling shareholder or other related parties[131](index=131&type=chunk) [III. Irregular External Guarantees](index=36&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[132](index=132&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=36&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's semi-annual financial report was unaudited - The company's semi-annual report was unaudited[133](index=133&type=chunk) [V. Board of Directors, Supervisory Board, and Audit Committee's Explanation of 'Non-Standard Audit Report' for Current Period](index=36&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E3%80%81%E5%AE%A1%E8%AE%A1%E5%A7%94%E5%91%98%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9A%84%E8%AF%B4%E6%98%8E) There was no non-standard audit report for the company during the reporting period - There was no non-standard audit report for the company during the reporting period[134](index=134&type=chunk) [VI. Board of Directors' Explanation of 'Non-Standard Audit Report' for Previous Year](index=36&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) There was no non-standard audit report for the company during the reporting period - There was no non-standard audit report for the company during the reporting period[134](index=134&type=chunk) [VII. Bankruptcy and Reorganization Matters](index=36&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company had no bankruptcy or reorganization matters during the reporting period - The company had no bankruptcy or reorganization matters during the reporting period[134](index=134&type=chunk) [VIII. Litigation Matters](index=36&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company had no major litigation or arbitration during the reporting period; other cases totaling **26.324 million yuan** were settled or won, with no significant adverse impact - The company had no major litigation or arbitration matters during the current reporting period[135](index=135&type=chunk) Other Litigation Matters | Basic Information of Litigation (Arbitration) | Amount Involved (million yuan) | Provision for Estimated Liabilities | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | | :--- | :--- | :--- | :--- | :--- | | Other litigation and arbitration matters not meeting the disclosure standard for major litigation, where the company and its subsidiaries are plaintiffs | 26.324 | No | Settlement reached/Won | No significant adverse impact on the company | [IX. Penalties and Rectification](index=37&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) The company and Board Secretary Fang Tarang received a warning letter from Jiangsu CSRC on January 15, 2025, for failing to timely review and disclose related-party transactions Penalties and Rectification | Name | Type | Reason | Investigation and Penalty Type | Conclusion (if any) | | :--- | :--- | :--- | :--- | :--- | | Jiangsu Aoliwei Sensing High-Tech Co., Ltd., Fang Tarang | Other | Failure to timely fulfill review procedures and information disclosure obligations for related-party transactions | Other | Decision by Jiangsu Securities Regulatory Bureau of China Securities Regulatory Commission to issue a warning letter to Jiangsu Aoliwei Sensing High-Tech Co., Ltd. and Fang Tarang ([2025] No. 5) | - The company and responsible individuals have submitted written reports, pledging to reflect deeply, learn lessons, and strengthen information disclosure management by studying relevant laws and regulations[137](index=137&type=chunk) [X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=37&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) There were no integrity issues concerning the company, its controlling shareholder, or actual controller during the reporting period - There were no integrity issues concerning the company, its controlling shareholder, or actual controller during the reporting period[138](index=138&type=chunk) [XI. Significant Related-Party Transactions](index=37&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engaged in routine related-party transactions, primarily purchasing goods from Longwei Technology Wuxi Co., Ltd. (**20.972 million yuan**), with no significant asset, equity, or debt-related transactions Related-Party Transactions for Purchase and Sale of Goods, Provision and Acceptance of Services | Related Party | Related-Party Transaction Content | Related-Party Transaction Amount (million yuan) | Approved Transaction Limit (million yuan) | Pricing Principle for Transaction Price | | :--- | :--- | :--- | :--- | :--- | | Longwei Technology Wuxi Co., Ltd. | Purchase of goods | 20.972 | 80 | Market Price | | Shenzhen Yuanwang | Purchase of goods | 0 | 10 | Market Price | | Kong Youtian | Purchase of goods | 0 | 10 | Market Price | - The daily related-party transaction amounts with Longwei Technology and Shenzhen Yuanwang did not exceed the estimated amounts[139](index=139&type=chunk) - The company had no related-party transactions involving asset or equity acquisitions or disposals during the reporting period[140](index=140&type=chunk) - The company had no related-party transactions involving joint external investments during the reporting period[141](index=141&type=chunk) - There were no related-party creditor-debtor transactions during the reporting period[142](index=142&type=chunk) - There were no deposits, loans, credit lines, or other financial transactions between the company and related financial companies, or between the company's controlled financial companies and related parties[143](index=143&type=chunk)[144](index=144&type=chunk) [XII. Significant Contracts and Their Performance](index=39&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company had no significant entrustment, contracting, leasing, or guarantee matters during the reporting period, and no major risks were identified in other significant contracts - The company had no entrustment arrangements during the reporting period[146](index=146&type=chunk) - The company had no contracting arrangements during the reporting period[147](index=147&type=chunk) - The company had no leasing arrangements during the reporting period[148](index=148&type=chunk) - The company had no significant guarantee situations during the reporting period[149](index=149&type=chunk) - The company had no other significant contracts during the reporting period[153](index=153&type=chunk) [XIII. Explanation of Other Significant Matters](index=40&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) On May 6, 2025, controlling shareholder Li Hongqing signed agreements to transfer control to CALB, making the company without an actual controller, pending regulatory approval - On May 6, 2025, the company's controlling shareholder and actual controller, Mr. Li Hongqing, signed a 'Share Transfer Agreement' and 'Waiver of Voting Rights Agreement' with CALB Technology Group Co., Ltd., intending to transfer company control[154](index=154&type=chunk) - Upon completion of this control transfer, the company's controlling shareholder will change from Mr. Li Hongqing to CALB, and the company will have no actual controller[154](index=154&type=chunk) - CALB intends to fully subscribe for new shares issued by the company to specific targets in cash[154](index=154&type=chunk) - This change in control is subject to compliance confirmation from the Shenzhen Stock Exchange and completion of share transfer registration procedures, thus carrying uncertainties[155](index=155&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=40&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) There were no significant matters concerning the company's subsidiaries during the reporting period - There were no significant matters concerning the company's subsidiaries during the reporting period[156](index=156&type=chunk) Section VI Share Changes and Shareholder Information This section details changes in the company's share capital, securities issuance, shareholder structure, and changes in holdings by directors, supervisors, and senior management [I. Share Change Status](index=41&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) Total share capital increased by **4.098 million shares** to **801 million shares**, primarily due to the vesting and listing of restricted shares from the 2022 incentive plan Share Change Status | Share Class | Number Before This Change (shares) | Proportion Before This Change | Increase/Decrease in This Change (shares) | Number After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 24,980,159 | 3.14% | 675,000 | 25,655,159 | 3.20% | | II. Unrestricted Shares | 771,568,748 | 96.86% | 3,423,000 | 774,991,748 | 96.80% | | III. Total Shares | 796,548,907 | 100.00% | 4,098,000 | 800,646,907 | 100.00% | - The share change primarily resulted from the listing of **4.098 million** vested restricted shares on May 22, 2025, under the 2022 incentive plan, involving **48** individuals[160](index=160&type=chunk) Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Increase in Restricted Shares During Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Teng Fei | 21,101,284 | 225,000 | 21,326,284 | Senior Management Locked Shares | | Kong Youtian | 3,159,337 | 112,500 | 3,271,837 | Senior Management Locked Shares | | Fang Tarang | 254,428 | 112,500 | 366,928 | Senior Management Locked Shares | | Dai Zhaoxi | 315,110 | 112,500 | 427,610 | Senior Management Locked Shares | | Zuo Qiang | 150,000 | 112,500 | 262,500 | Senior Management Locked Shares | | Total | 24,980,159 | 675,000 | 25,655,159 | -- | [II. Securities Issuance and Listing](index=43&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) There were no securities issuance or listing activities by the company during the reporting period - The company had no securities issuance or listing activities during the reporting period[164](index=164&type=chunk) [III. Number of Shareholders and Shareholding Status](index=43&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 reporting period end, the company had **46,718** common shareholders, with controlling shareholder Li Hongqing holding **36.36%** as the largest shareholder - The total number of common shareholders at the end of the reporting period was **46,718** households[165](index=165&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 Holdings During Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Li Hongqing | Domestic Natural Person | 36.36% | 291,120,704 | 0 | 0.00 | 291,120,704.0 | | Teng Fei | Domestic Natural Person | 3.55% | 28,435,045 | 300,000 | 21,326,284.00 | 7,108,761.0 | | Liu Tetang | Domestic Natural Person | 1.35% | 10,800,000 | -2,300,000 | 0.00 | 10,800,000.0 | | Wang Wenqiao | Domestic Natural Person | 1.12% | 9,006,706 | 0 | 0.00 | 9,006,706.0 | | Zhang Min | Domestic Natural Person | 0.89% | 7,147,752 | 0 | 0.00 | 7,147,752.0 | | Kong Youtian | Domestic Natural Person | 0.54% | 4,362,450 | 150,000.00 | 3,271,837.00 | 1,090,613.0 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.54% | 4,351,385 | -2,412,276.00 | 0.00 | 4,351,385.0 | | Dai Chengyou | Domestic Natural Person | 0.44% | 3,502,600 | 2,693,400.00 | 0.00 | 3,502,600.0 | | Zhu Junya | Domestic Natural Person | 0.34% | 2,723,100 | 2,723,100.00 | 0.00 | 2,723,100.0 | | Guo Fengming | Domestic Natural Person | 0.30% | 2,396,800 | 2,396,800.00 | 0.00 | 2,396,800.0 | - The company is unaware of any related-party relationships or concerted actions among the aforementioned other shareholders[166](index=166&type=chunk) [IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=44&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) Key executives, including Chairman Teng Fei and CFO Kong Youtian, collectively increased their shareholdings by **900,000 shares** during the reporting period, all holding granted restricted shares Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Shares Held at Beginning of Period (shares) | Shares Increased in Current Period (shares) | Shares Held at End of Period (shares) | Number of Restricted Shares Granted at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Teng Fei | Chairman, General Manager | Current | 28,135,045 | 300,000 | 28,435,045.00 | 1,000,000.00 | | Kong Youtian | Deputy General Manager, CFO | Current | 4,212,450 | 150,000 | 4,362,450.00 | 500,000.00 | | Fang Tarang | Director, Board Secretary | Current | 339,238 | 150,000 | 489,238.00 | 500,000.00 | | Dai Zhaoxi | Deputy General Manager | Current | 420,147 | 150,000 | 570,147.00 | 500,000.00 | | Zuo Qiang | Deputy General Manager | Current | 200,000 | 150,000 | 350,000.00 | 500,000.00 | | Total | -- | -- | 33,306,880.00 | 900,000 | 34,206,880.00 | 3,000,000.00 | [V. Changes in Controlling Shareholder or Actual Controller](index=45&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) There were no changes 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[169](index=169&type=chunk) - The company's actual controller did not change during the reporting period[169](index=169&type=chunk) [VI. Preferred Share Information](index=46&type=section&id=%E5%85%AD%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[170](index=170&type=chunk) Section VII Bond-Related Information This section confirms that the company had no bond-related activities or outstanding bonds during the reporting period [Bond-Related Information](index=47&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 information during the reporting period[172](index=172&type=chunk) Section VIII Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with key accounting policies and notes [I. Audit Report](index=48&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[174](index=174&type=chunk) [II. Financial Statements](index=48&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's H1 2025 consolidated and parent company financial statements, showing **4.05 billion yuan** in consolidated total assets and **57.24 million yuan** in net profit attributable to the parent - The consolidated balance sheet shows total assets of **4.05 billion yuan** at the end of the period, and total owner's equity attributable to the parent company of **2.088 billion yuan**[178](index=178&type=chunk) - The consolidated income statement shows total operating revenue of **1.104 billion yuan** for the current period, and net profit attributable to parent company shareholders of **57.24 million yuan**[184](index=184&type=chunk)[186](index=186&type=chunk) - The consolidated cash flow statement shows net cash flow from operating activities of **157.12 million yuan**, and net cash flow from investing activities of **-187.42 million yuan**[192](index=192&type=chunk)[193](index=193&type=chunk) - The parent company balance sheet shows total assets of **2.644 billion yuan** at the end of the period, and total owner's equity of **1.870 billion yuan**[182](index=182&type=chunk) - The parent company income statement shows operating revenue of **454.51 million yuan** for the current period, and net profit of **28.17 million yuan**[188](index=188&type=chunk)[190](index=190&type=chunk) [1. Consolidated Balance Sheet](index=48&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, consolidated total assets were **4.05 billion yuan**, with **2.973 billion yuan** in current assets and **2.088 billion yuan** in equity attributable to the parent company - Total assets at the end of the period were **4.050 billion yuan**, compared to **4.104 billion yuan** at the beginning of the period[177](index=177&type=chunk) - Total owner's equity attributable to the parent company at the end of the period was **2.088 billion yuan**, compared to **2.060 billion yuan** at the beginning of the period[178](index=178&type=chunk) - Among current assets, financial assets held for trading had an ending balance of **555.86 million yuan**, accounts receivable were **986.80 million yuan**, and receivables financing was **267.05 million yuan**[176](index=176&type=chunk) - Among current liabilities, short-term borrowings were **334.37 million yuan**, notes payable were **489.09 million yuan**, and accounts payable were **558.09 million yuan**[177](index=177&type=chunk) [2. Parent Company Balance Sheet](index=50&type=section&id=2%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, parent company total assets were **2.644 billion yuan**, with **1.617 billion yuan** in current assets and **1.870 billion yuan** in total owner's equity - Total assets at the end of the period were **2.644 billion yuan**, compared to **2.647 billion yuan** at the beginning of the period[181](index=181&type=chunk) - Total owner's equity at the end of the period was **1.870 billion yuan**, compared to **1.875 billion yuan** at the beginning of the period[182](index=182&type=chunk) - Among current assets, financial assets held for trading were **378.09 million yuan**, accounts receivable were **400.00 million yuan**, and receivables financing was **101.00 million yuan**[180](index=180&type=chunk)[181](index=181&type=chunk) - Among current liabilities, short-term borrowings were **322.00 million yuan**, notes payable were **66.10 million yuan**, and accounts payable were **253.00 million yuan**[181](index=181&type=chunk)[182](index=182&type=chunk) [3. Consolidated Income Statement](index=52&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In H1 2025, consolidated total operating revenue was **1.104 billion yuan**, up **99.21%**, with net profit attributable to parent company shareholders at **57.24 million yuan**, down **9.12%** - Total operating revenue for the current period was **1.104 billion yuan**, com

Important Notes, Table of Contents, and Definitions [Important Notes](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The Board of Directors, Supervisory Committee, and senior management guarantee the authenticity, accuracy, and completeness of this semi-annual report - The company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the report[4](index=4&type=chunk) - The company plans **no cash dividend distribution, no bonus share issuance, and no capitalization of public reserve funds**[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) This section lists the nine main chapters of the semi-annual report and their starting page numbers, providing a clear guide to the report's structure - The report comprises nine main chapters covering important notes, company profile, management discussion, corporate governance, significant matters, share changes, bonds, financial report, and other submitted data[6](index=6&type=chunk) [List of Documents for Inspection](index=4&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) This section specifies that the original semi-annual report, original financial statements, and all publicly disclosed documents during the reporting period are available for inspection - Documents available for inspection include the original report signed and sealed by the legal representative, financial statements signed and sealed by responsible persons, and originals of all company documents and announcements disclosed during the reporting period[8](index=8&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section provides definitions for common terms used in the report, ensuring consistent understanding for readers - The company's full name is CETC Network Security Technology Co, Ltd, formerly known as Chengdu Westone Information Industry Inc[11](index=11&type=chunk) - The controlling shareholder is China Electronics Technology Network Information Security Co, Ltd, and the actual controller is China Electronics Technology Group Corporation[11](index=11&type=chunk) - The reporting period refers to January 1, 2025, to June 30, 2025[11](index=11&type=chunk) Company Profile and Key Financial Indicators [Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) This section presents the company's basic information, including stock ticker, code, listing exchange, name, legal representative, and contact details for key personnel - Stock Ticker: Dianke Wangan, Stock Code: 002268, Listing Exchange: Shenzhen Stock Exchange[13](index=13&type=chunk) - Legal Representative: Wei Hongkuan[13](index=13&type=chunk) - Secretary of the Board: Liu Zhihui, Securities Affairs Representative: Shu Mei[14](index=14&type=chunk) [Other Information](index=6&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) The company's contact information, information disclosure locations, and other relevant details remained unchanged during the reporting period - The company's registered address, office address, website, and email address remained unchanged during the reporting period[15](index=15&type=chunk) - The locations for information disclosure and document inspection remained unchanged during the reporting period[16](index=16&type=chunk) [Key Accounting Data and Financial Indicators](index=6&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section discloses key financial data, showing a year-on-year decrease in revenue but a narrowed net loss and significantly improved operating cash flow Key Accounting Data and Financial Indicators | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 488,255,299.94 | 640,697,984.37 | -23.79% | | Net Profit Attributable to Shareholders | -173,660,012.22 | -215,376,616.76 | 19.37% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | -185,782,578.14 | -232,984,442.66 | 20.26% | | Net Cash Flow from Operating Activities | -80,635,722.48 | -637,069,630.77 | 87.34% | | Basic Earnings Per Share (Yuan/Share) | -0.2054 | -0.2547 | 19.36% | | Diluted Earnings Per Share (Yuan/Share) | -0.2054 | -0.2547 | 19.36% | | Weighted Average Return on Equity | -3.13% | -3.97% | Up 0.84 p.p. | | **Period-End Indicators** | **End of Current Period (Yuan)** | **End of Prior Year (Yuan)** | **Change from Prior Year-End** | | Total Assets | 6,784,206,482.82 | 7,198,413,777.39 | -5.75% | | Net Assets Attributable to Shareholders | 5,421,495,572.04 | 5,646,306,741.24 | -3.98% | [Differences in Accounting Data under Domestic and Foreign Accounting Standards](index=7&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) There were no discrepancies in net profit or net assets between financial reports prepared under Chinese and international/foreign accounting standards - The company had no discrepancies in accounting data under domestic versus foreign accounting standards during the reporting period[19](index=19&type=chunk)[20](index=20&type=chunk) [Non-recurring Gains and Losses Items and Amounts](index=7&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) This section details non-recurring gains and losses for the period, totaling 12,122,565.92 Yuan, primarily from fair value changes in financial assets and government grants Non-recurring Gains and Losses Items and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 27,252.66 | | Government Grants Recognized in Current Profit or Loss | 3,003,220.97 | | Fair Value Gains/Losses from Financial Assets and Liabilities Held by Non-financial Enterprises | 11,353,424.66 | | Reversal of Impairment Provision for Individually Tested Receivables | 40,100.00 | | Other Non-operating Income and Expenses | -172,339.11 | | Less: Income Tax Impact | 2,140,366.84 | | Minority Interest Impact (After Tax) | -11,273.58 | | **Total** | **12,122,565.92** | - The company did not reclassify any non-recurring gains and losses items as recurring items[24](index=24&type=chunk) Management Discussion and Analysis [Principal Business Activities During the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company operates as a data intelligence security service provider with cryptography at its core, focusing on cryptography, cybersecurity, and data security - The company's strategic positioning is a data intelligence security service provider with cryptography at its core[26](index=26&type=chunk) - Main business segments include **cryptography, cybersecurity, and data security**[26](index=26&type=chunk) - The company is actively expanding into new business areas such as **Internet of Vehicles (IoV), satellite internet, low-altitude economy, and artificial intelligence**[26](index=26&type=chunk) [Company's Main Business, Products, and Their Uses](index=9&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E3%80%81%E4%B8%BB%E8%A6%81%E4%BA%A7%E5%93%81%E5%8F%8A%E5%85%B6%E7%94%A8%E9%80%94) This section details the company's products, technical capabilities, and innovations across its three core business segments and outlines its strategic initiatives in emerging fields - **Cryptography Business**: Possesses full-chain R&D and production capabilities from cryptographic chips to systems, with over 100 product models certified across more than ten categories in the commercial cryptography product catalog[27](index=27&type=chunk) - **Cybersecurity Business**: Focuses on the security and confidentiality needs of critical information systems, establishing a leading and comprehensive protection capability and product system[29](index=29&type=chunk) - **Data Security Business**: Builds a data security product system centered on cryptographic technology, covering data security governance, protection, compliance, and circulation[32](index=32&type=chunk) - **New Business Initiatives**: Actively developing products in areas such as **post-quantum cryptography, IoV security, satellite internet, artificial intelligence, and cloud security**[34](index=34&type=chunk) [Company's Business Model](index=11&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E5%85%AC%E5%8F%B8%E7%BB%8F%E8%营%E6%A8%A1%E5%BC%8F) The company's business model centers on product sales and service provision, supported by independent R&D, diverse service delivery, and a solution-driven sales approach - **Profit Model**: Product sales and service provision, with an increased focus on proprietary products[37](index=37&type=chunk) - **R&D Model**: Adheres to independent R&D and innovation, building a multi-layered collaborative innovation framework[38](index=38&type=chunk) - **Security Service Model**: Includes direct, enabling, and joint operation models, offering one-stop online and offline service capabilities[39](index=39&type=chunk) - **Sales Model**: Optimizes a solution-driven approach to promote proprietary product sales and leverages flagship products to expand channel markets[40](index=40&type=chunk) [Product Market Position and Competitive Advantages](index=11&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E4%BA%A7%E5%93%81%E5%B8%82%E5%9C%BA%E5%9C%B0%E4%BD%8D%E5%8F%8A%E7%AB%9E%E4%BA%89%E4%BC%98%E5%8A%BF) The company achieved significant technological milestones during the reporting period, reinforcing its market leadership in cryptography and cybersecurity - During the reporting period, the company obtained **15 commercial cryptography product certifications**, 25 cybersecurity product safety inspection certificates, and 9 national secrecy science and technology evaluation center inspection certificates[41](index=41&type=chunk) - Newly applied for over **50 invention patents**, was granted 15 patents, and received 20 software copyright registration certificates[41](index=41&type=chunk) - The company has long supported the formulation of national plans and standards in cryptography and cybersecurity, achieving extensive product and service coverage in key markets[43](index=43&type=chunk) [Performance Drivers](index=12&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E4%B8%9A%E7%BB%A9%E9%A9%B1%E5%8A%A8%E5%9B%A0%E7%B4%A0) The company's performance is driven by favorable national policies and digital economy trends externally, and by strategic focus and operational optimization internally - **External Drivers**: Favorable policies for cryptography and cybersecurity, deepening development of the digital economy, and emerging security demands from new scenarios like IoT and AI[44](index=44&type=chunk) - **Internal Responses**: Focusing resources on core businesses, strengthening technology and product capabilities, and optimizing strategic management and cost control[44](index=44&type=chunk) - The long-term positive trend for the cybersecurity industry remains unchanged, despite intensifying market competition[45](index=45&type=chunk) [Core Competitiveness Analysis](index=12&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 is built on its trusted state-owned enterprise brand, leading cryptographic innovation, top-level design capabilities, and a sustainable talent ecosystem - **Trusted Corporate Brand**: As a subsidiary of China Electronics Technology Group Corporation, the company has a state-owned enterprise background and undertakes security assurance for major national events[46](index=46&type=chunk) - **Industry-Leading Cryptographic Innovation**: One of the earliest domestic enterprises in commercial cryptography research, possessing deep expertise and full-chain R&D capabilities, and leading the formulation of multiple national/industry standards[47](index=47&type=chunk)[48](index=48&type=chunk) - **Accumulated Top-Level Planning and Design Capabilities**: Continuously participates in top-level planning for digital government and economy, maintaining a dominant position in key industries like government, military, finance, and energy[50](index=50&type=chunk) - **Sustainable Talent Ecosystem**: Continuously improves talent cultivation and incentive mechanisms, strengthening talent reserves in key emerging fields to form a well-structured, professional talent pool[51](index=51&type=chunk) [Main Business Analysis](index=13&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%营%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) The company advanced its three core business segments during the period, deepening its market penetration and achieving breakthroughs in emerging application areas - **Strategic Approach**: "Solidify the foundation of cryptography, expand the wings of cybersecurity and data security," forging three core capabilities[52](index=52&type=chunk) - **Cryptography Business Progress**: Deepened penetration in government, finance, and energy markets; automotive-grade security chips entered the Tier1 supplier list for major automakers like Dongfeng[53](index=53&type=chunk) - **Cybersecurity Business Progress**: Enhanced service and operational capabilities, achieving breakthroughs in state-owned enterprise markets such as rail transit and civil aviation[55](index=55&type=chunk)[56](index=56&type=chunk) - **Data Security Business Progress**: Promoted unified data security protection solutions for government and state-owned enterprises, achieving breakthroughs in data resource governance for Party committee information systems[58](index=58&type=chunk) [Year-on-Year Changes in Key Financial Data](index=14&type=section&id=%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E5%90%8C%E6%AF%94%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Operating revenue declined due to slower customer demand recovery, while operating cash flow improved significantly due to increased collections and timing of payments Year-on-Year Changes in Key Financial Data | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 488,255,299.94 | 640,697,984.37 | -23.79% | Slower recovery and release of downstream customer demand | | Operating Costs | 271,617,081.79 | 410,465,729.95 | -33.83% | Corresponding decrease with the reduction in operating revenue | | Net Cash Flow from Operating Activities | -80,635,722.48 | -637,069,630.77 | 87.34% | Increased collections and impact of procurement payment timing | | Net Cash Flow from Investing Activities | 675,527,890.53 | -50,535,575.80 | 1,436.74% | Primarily due to the purchase cycle of structured deposits | | Net Cash Flow from Financing Activities | -18,519,011.87 | -10,401,429.21 | -78.04% | Primarily due to payment for the acquisition of Westone (Guangzhou) | [Operating Revenue Composition](index=15&type=section&id=%E8%90%A5%E4%B8%9A%E6%94%B6%E5%85%A5%E6%9E%84%E6%88%90) Total operating revenue was 488 million Yuan, with the North China region showing significant growth while the Southwest region experienced a sharp decline Operating Revenue Composition (by Product) | Product | Current Period Amount (Yuan) | % of Revenue | Prior Year Period Amount (Yuan) | % of Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Cryptography | 224,882,058.18 | 46.06% | 228,922,125.59 | 35.73% | -1.76% | | Cybersecurity | 245,695,255.43 | 50.32% | 343,221,669.54 | 53.57% | -28.41% | | Data Security | 17,677,986.33 | 3.62% | 68,554,189.24 | 10.70% | -74.21% | Operating Revenue Composition (by Region) | Region | Current Period Amount (Yuan) | % of Revenue | Prior Year Period Amount (Yuan) | % of Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | North China | 273,832,184.83 | 56.09% | 175,158,655.08 | 27.34% | 56.33% | | Southwest China | 110,547,865.20 | 22.64% | 277,880,501.89 | 43.36% | -60.22% | - The gross margin for the data security and cybersecurity industry was **44.37%**, an increase of 8.44 percentage points year-on-year[63](index=63&type=chunk) [Cost of Main Business Composition](index=16&type=section&id=%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%88%90%E6%9C%AC%E6%9E%84%E6%88%90) The cost of the main business totaled 271 million Yuan, a decrease of 33.83% year-on-year, primarily driven by a reduction in raw material costs Cost of Main Business Composition | Cost Component | Current Period Amount (Yuan) | % of Operating Cost | Prior Year Period Amount (Yuan) | % of Operating Cost | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Raw Materials | 234,403,634.17 | 86.30% | 365,349,265.71 | 89.01% | -35.84% | | Labor Costs | 20,116,136.85 | 7.41% | 24,265,625.37 | 5.91% | -17.10% | | Others | 17,097,310.77 | 6.29% | 20,850,838.87 | 5.08% | -18.00% | | **Total** | **271,617,081.79** | **100.00%** | **410,465,729.95** | **100.00%** | **-33.83%** | - The decrease in costs was mainly due to the reduction in operating revenue[66](index=66&type=chunk) [Non-core Business Analysis](index=16&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 business activities had a mixed impact on total profit, with sustainable investment income from structured deposits and non-sustainable income from government grants Impact of Non-core Business on Total Profit | Item | Amount (Yuan) | % of Total Profit | Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 9,879,666.97 | -4.27% | Interest income from structured deposits | Yes | | Asset Impairment | -274,809.06 | 0.12% | Bad debt provision for contract assets | Yes | | Non-operating Income | 741,685.77 | -0.32% | Government grants and default penalties received | No | | Non-operating Expenses | 904,024.88 | -0.39% | Tax-related payments from "dual random" inspections | No | | Credit Impairment | -2,762,305.11 | 1.19% | Bad debt provision for accounts and other receivables | Yes | [Analysis of Assets and Liabilities](index=16&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Total assets and net assets attributable to shareholders decreased, while the proportion of cash and inventory increased, with the overall balance sheet structure remaining stable Significant Changes in Asset Composition (Period-End vs. Prior Year-End) | Item | Current Period-End Amount (Yuan) | % of Total Assets | Prior Year-End Amount (Yuan) | % of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,537,389,453.04 | 37.40% | 1,948,949,584.50 | 27.07% | 10.33% | | Accounts Receivable | 1,404,615,839.31 | 20.70% | 1,541,076,525.80 | 21.41% | -0.71% | | Inventory | 482,697,937.16 | 7.12% | 347,710,240.19 | 4.83% | 2.29% | | Construction in Progress | 1,095,230,024.75 | 16.14% | 1,095,230,024.75 | 15.21% | 0.93% | - The company holds financial assets measured at fair value with a period-end balance of **4,473,503.31 Yuan**[73](index=73&type=chunk) - Restricted assets at period-end include **19,235,437.32 Yuan** in cash (guarantee deposits, frozen funds) and **1,095,230,024.75 Yuan** in construction in progress (subject to litigation)[74](index=74&type=chunk) [Investment Analysis](index=17&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company had no major equity or non-equity investments during the period, with raised funds primarily allocated to committed projects - The company had no securities investments or derivatives investments during the reporting period[76](index=76&type=chunk)[77](index=77&type=chunk) - **Overall utilization of raised funds**: Total raised funds of 2.693 billion Yuan, with a cumulative usage of 2.000 billion Yuan, representing a utilization rate of **75.13%**[78](index=78&type=chunk) - Unused raised funds are mainly used for purchasing structured deposits and temporarily supplementing working capital[78](index=78&type=chunk)[79](index=79&type=chunk) - Reasons for investment projects not meeting expected benefits include changes in the international macroeconomic environment, increased security and control requirements, and incidental factors like the seizure of Beijing property[82](index=82&type=chunk)[83](index=83&type=chunk) [Sale of Major Assets and Equity](index=22&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company did not sell any major assets or equity during the reporting period - The company did not sell any major assets during the reporting period[85](index=85&type=chunk) - The company did not sell any major equity during the reporting period[86](index=86&type=chunk) [Analysis of Major Holding and Participating Companies](index=22&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This section discloses financial information for the company's main subsidiaries, with no acquisitions or disposals of subsidiaries occurring during the period Financial Data of Major Subsidiaries | Company Name | Company Type | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chengdu Westone Information Security Technology Co, Ltd | Subsidiary | 100,000,000.00 | 2,081,936,932.84 | 480,779,107.85 | 302,351,909.16 | 116,625,901.42 | | Chengdu 30-Jiawei Electronics Co, Ltd | Subsidiary | 133,578,000.00 | 1,503,937,744.32 | 1,398,831,417.20 | 120,423,260.17 | 13,203,822.21 | | CETC (Beijing) Network Information Security Co, Ltd | Subsidiary | 200,000,000.00 | 3,058,940,329.51 | 2,832,045,456.96 | 70,336,244.44 | 24,080,846.53 | | Chengdu 30-Ruitong Mobile Communication Co, Ltd | Subsidiary | 58,400,000.00 | 786,739,513.17 | 460,234,785.07 | 66,115,883.88 | 9,279,736.70 | - The company did not acquire or dispose of any subsidiaries during the reporting period[87](index=87&type=chunk) [Structured Entities Controlled by the Company](index=22&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[88](index=88&type=chunk) [Risks and Countermeasures](index=22&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces risks from market competition, technological innovation, talent development, and financing costs, which it addresses through strategic countermeasures - **Market Risk**: Increased competition from internet and telecom operators entering the cybersecurity market; countermeasures include enhancing core competitiveness and expanding into new markets and sectors[89](index=89&type=chunk) - **Technology Risk**: Mismatch between technological innovation and evolving market demands; countermeasures include market-oriented R&D and increased investment in cutting-edge technologies like post-quantum cryptography[90](index=90&type=chunk) - **Talent Risk**: Need for optimization in the talent pipeline for emerging technologies and new business areas; countermeasures include optimizing talent management and incentive mechanisms[91](index=91&type=chunk) - **Financial Risk**: Potential for increased borrowing costs due to future financing needs; countermeasures include enhancing capital management, leveraging a good credit rating and diverse financing channels[92](index=92&type=chunk) [Development and Implementation of Market Value Management System and Value Enhancement Plan](index=23&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has established a market value management system to enhance investment value but has not disclosed a specific value enhancement plan - The company has formulated the "Market Value Management System of CETC Network Security Technology Co, Ltd," which was approved by the Board of Directors on April 25, 2025[93](index=93&type=chunk) - The company has not disclosed a value enhancement plan[93](index=93&type=chunk) [Implementation of the "Dual Improvement in Quality and Returns" Action Plan](index=23&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E2%80%9C%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%E2%80%9D%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not disclosed an announcement regarding a "Dual Improvement in Quality and Returns" action plan - The company has not disclosed an announcement regarding a "Dual Improvement in Quality and Returns" action plan[94](index=94&type=chunk) Corporate Governance, Environment, and Society [Changes in Directors, Supervisors, and Senior Management](index=23&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, Wei Lan was appointed as Deputy General Manager due to a work transfer - Wei Lan was appointed as Deputy General Manager on March 4, 2025, due to a work transfer[95](index=95&type=chunk) [Profit Distribution and Capitalization of Capital Reserve for the Reporting Period](index=24&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company does not plan to distribute cash dividends, issue bonus shares, or capitalize the capital reserve for the semi-annual period - The company plans **no cash dividend distribution, no bonus share issuance, and no capitalization of public reserve funds** for the semi-annual period[96](index=96&type=chunk) [Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=24&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company continued its 2020 restricted stock incentive plan, with a portion of shares unlocking and others being repurchased and canceled - The 2020 long-term restricted stock incentive plan is ongoing[97](index=97&type=chunk) - On February 5, 2025, **2,149,252 restricted shares** held by 282 incentive recipients became available for trading upon completion of the third unlocking period[102](index=102&type=chunk) - The company repurchased and canceled **27,720 unvested restricted shares** from 9 incentive recipients[102](index=102&type=chunk) - The amortized cost of equity incentives reversed this year was **130,006.8 Yuan**[103](index=103&type=chunk) [Environmental Information Disclosure](index=25&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) Neither the listed company nor its main subsidiaries are included in the list of enterprises required to disclose environmental information by law - Neither the listed company nor its main subsidiaries are included in the list of enterprises required to disclose environmental information by law[104](index=104&type=chunk) [Social Responsibility](index=25&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company actively engages in social welfare and rural revitalization projects and published its 2024 ESG report in April - The company actively participates in social welfare activities, such as organizing book donations[104](index=104&type=chunk) - Participated in a village assistance project, conducting specialized training on "AI-Empowered Rural Governance"[105](index=105&type=chunk) - The company released its **2024 ESG report** in April, detailing its social responsibility and sustainable development initiatives[105](index=105&type=chunk) Significant Matters [Fulfillment of Commitments](index=26&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) CETC Investment Holdings Co, Ltd completed its share increase plan as committed, fulfilling its obligations on time - CETC Investment Holdings Co, Ltd cumulatively increased its holding by **11,243,480 shares**, representing 1.33% of the total share capital, with a total investment of 200,102,582 Yuan[107](index=107&type=chunk) - The share increase plan has been completed, and the commitment was fulfilled on time[107](index=107&type=chunk) [Non-operating Fund Occupation by Related Parties](index=26&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%营%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) There was no non-operating fund occupation of the listed company by its controlling shareholder or other related parties during the reporting period - There was no non-operating fund occupation by the controlling shareholder or other related parties during the reporting period[108](index=108&type=chunk) [Irregular External Guarantees](index=26&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[109](index=109&type=chunk) [Accounting Firm Matters](index=26&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's semi-annual report has not been audited - The company's semi-annual report has not been audited[111](index=111&type=chunk) [Explanation of Non-standard Audit Report for the Current Period](index=27&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9A%84%E8%AF%B4%E6%98%8E) There was no non-standard audit report for the company during the reporting period - There was no non-standard audit report for the company during the reporting period[112](index=112&type=chunk) [Explanation of Prior Year's Non-standard Audit Report](index=27&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The Board explained the 2024 audit report with an emphasis of matter paragraph concerning a subsidiary's property seizure, the outcome of which remains uncertain - The **2024 audit report was an unqualified opinion with an emphasis of matter paragraph**[112](index=112&type=chunk) - The emphasis of matter relates to a property purchased by subsidiary Beijing Wangan being seized due to litigation involving the developer, who has since entered bankruptcy proceedings[112](index=112&type=chunk) - The uncertainty surrounding the approval of a settlement plan at the third creditors' meeting makes it impossible to estimate the future profit impact[115](index=115&type=chunk)[116](index=116&type=chunk) - The company will closely monitor developments and legally protect its rights and interests[116](index=116&type=chunk) [Bankruptcy and Reorganization Matters](index=28&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company did not undergo any bankruptcy or reorganization during the reporting period - The company did not undergo any bankruptcy or reorganization during the reporting period[117](index=117&type=chunk) [Litigation Matters](index=28&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company is involved in several lawsuits, with the most significant case concerning a subsidiary's property seizure due to the developer's bankruptcy - Major litigation involves the seizure of property purchased by subsidiary Beijing Wangan, as the developer, Jinfeng Kehua, has entered bankruptcy proceedings[118](index=118&type=chunk) - The second-instance trial of Beijing Wangan's lawsuit challenging the seizure has resumed[114](index=114&type=chunk)[119](index=119&type=chunk) - The Jinfeng Kehua bankruptcy settlement plan has not yet reached a stage sufficient for a creditor vote, and the impact on the company remains uncertain[115](index=115&type=chunk)[118](index=118&type=chunk) - The company's affiliate, Chengdu Mobao Network Technology Co, Ltd, is involved in an arbitration case against its controlling shareholder, Lifan Holdings, seeking repayment of debts or compensation for losses[119](index=119&type=chunk) - The company and its subsidiaries are plaintiffs in 3 other lawsuits involving a total of **33.67 million Yuan** and defendants in 10 other lawsuits involving a total of **19.35 million Yuan**[120](index=120&type=chunk) [Penalties and Rectifications](index=30&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) There were no penalties or rectifications involving the company during the reporting period - There were no penalties or rectifications involving the company during the reporting period[121](index=121&type=chunk) [Integrity Status](index=30&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) There were no integrity issues concerning the company, its controlling shareholder, or its actual controller during the reporting period - There were no integrity issues concerning the company, its controlling shareholder, or its actual controller during the reporting period[122](index=122&type=chunk) [Major Related-Party Transactions](index=30&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company had no major related-party transactions related to daily operations, asset acquisitions, or investments, but maintained deposit and credit relationships with a related financial company - The company had no related-party transactions related to daily operations, asset/equity acquisitions or sales, or joint external investments during the reporting period[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) - There were no non-operating related-party claims and debts during the reporting period[125](index=125&type=chunk) - The company has a deposit relationship with China Electronics Technology Finance Co, Ltd, with a period-end balance of **1.622 billion Yuan**, and a credit facility of **334 million Yuan**, of which 12.83 million Yuan was utilized[126](index=126&type=chunk) [Major Contracts and Their Performance](index=31&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company had no major contracts such as custody, contracting, leasing, guarantees, or wealth management during the reporting period - The company had no custody, contracting, or leasing arrangements during the reporting period[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk) - The company had no major guarantees or wealth management arrangements during the reporting period[132](index=132&type=chunk)[133](index=133&type=chunk) - The company had no other major contracts during the reporting period[134](index=134&type=chunk) [Explanation of Other Significant Matters](index=32&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) There were no other significant matters requiring explanation during the reporting period - There were no other significant matters requiring explanation during the reporting period[135](index=135&type=chunk) [Significant Matters of Company Subsidiaries](index=32&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) A property purchased by subsidiary Beijing Wangan remains seized due to the developer's bankruptcy, with the outcome of the settlement plan uncertain - A property purchased by subsidiary Beijing Wangan is subject to seizure due to litigation involving the developer, Jinfeng Kehua, who is in bankruptcy[136](index=136&type=chunk) - The Jinfeng Kehua bankruptcy settlement plan has not yet reached a stage sufficient for a creditor vote, and its outcome is uncertain[137](index=137&type=chunk) Changes in Share Capital and Shareholders [Changes in Share Capital](index=33&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) The company's total share capital remained unchanged, with a shift from restricted to unrestricted shares due to the unlocking of equity incentive shares Changes in Share Capital | Share Type | Pre-Change Quantity (Shares) | Pre-Change Proportion | Change (+/- Shares) | Post-Change Quantity (Shares) | Post-Change Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 2,396,347 | 0.28% | -2,017,252 | 379,095 | 0.04% | | II. Unrestricted Shares | 843,280,656 | 99.72% | 2,017,252 | 845,297,908 | 99.96% | | III. Total Shares | 845,677,003 | 100.00% | 0 | 845,677,003 | 100.00% | - The change in share structure was primarily due to the unlocking of restricted shares from the equity incentive plan[142](index=142&type=chunk) [Changes in Restricted Shares](index=34&type=section&id=2%E3%80%81%E9%99%90%E5%94%AE%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The total number of restricted shares decreased to 379,095 at the end of the period, following the unlocking of incentive shares and an increase in executive lock-up shares Changes in Restricted Shares | Shareholder Name | Opening Restricted Shares (Shares) | Unlocked this Period (Shares) | Added this Period (Shares) | Closing Restricted Shares (Shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Wei Hongkuan | 36,000 | 0 | 24,000 | 60,000 | Executive Lock-up | | Zhou Jun | 36,000 | 0 | 24,000 | 60,000 | Executive Lock-up | | Liu Zhihui | 36,000 | 0 | 24,000 | 60,000 | Executive Lock-up | | Zhang Jian | 10,500 | 0 | 12,000 | 22,500 | Executive Lock-up | | Wu Xiangyang | 51,675 | 0 | 24,000 | 75,675 | Executive Lock-up | | Wang Peichun | 36,000 | 0 | 24,000 | 60,000 | Executive Lock-up | | Equity Incentive Restricted Shares | 2,190,172 | 2,149,252 | 0 | 40,920 | Equity Incentive Lock-up | | **Total** | **2,396,347** | **2,149,252** | **132,000** | **379,095** | | [Securities Issuance and Listing](index=34&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) The company did not issue or list any securities during the reporting period - The company did not issue or list any securities during the reporting period[143](index=143&type=chunk) [Number of Shareholders and Shareholding Status](index=34&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) At the end of the reporting period, the company had 90,095 common shareholders, with China Electronics Technology Network Information Security Co, Ltd being the largest shareholder - Total number of common shareholders at period-end: **90,095**[144](index=144&type=chunk) - China Electronics Technology Network Information Security Co, Ltd is the largest shareholder with a **32.96%** stake[144](index=144&type=chunk) - CETC Investment Holdings Co, Ltd holds a **3.51%** stake, with its shareholding changing by 9,513,480 shares during the period[145](index=145&type=chunk) - Zhuang ChuXiong holds 3,000,000.00 shares through a margin trading and short selling credit account[146](index=146&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=36&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[147](index=147&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=36&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) There were no changes 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[148](index=148&type=chunk) - The company's actual controller did not change during the reporting period[148](index=148&type=chunk) [Preference Share Matters](index=37&type=section&id=%E5%85%AD%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preference shares during the reporting period - The company had no preference shares during the reporting period[149](index=149&type=chunk) Bond-related Matters The company had no bond-related matters during the reporting period[151](index=151&type=chunk) Financial Report [Audit Report](index=39&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The semi-annual financial report has not been audited - The semi-annual financial report has not been audited[153](index=153&type=chunk) [Financial Statements](index=39&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the consolidated and parent company financial statements for the first half of 2025, reflecting the company's financial position, performance, and cash flows - The consolidated balance sheet shows total assets of **6.784 billion Yuan** and total equity attributable to parent company owners of **5.421 billion Yuan** at the period-end[157](index=157&type=chunk) - The consolidated income statement shows total operating revenue of **488.26 million Yuan** and a net loss attributable to parent company shareholders of **173.66 million Yuan** for the period[164](index=164&type=chunk) - The consolidated cash flow statement shows net cash flow from operating activities of **-80.64 million Yuan** and net cash flow from investing activities of **675.53 million Yuan**[171](index=171&type=chunk) [Company Basic Information](index=56&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) This section outlines the company's history, legal structure, headquarters, parent company, and principal business activities in the information security sector - The company was established on March 12, 1998, and is registered at 333 Yunhua Road, Chengdu Hi-tech Zone, China (Sichuan) Pilot Free Trade Zone[189](index=189&type=chunk)[194](index=194&type=chunk) - The parent company is China Electronics Technology Network Information Security Co, Ltd, and the ultimate actual controller is China Electronics Technology Group Corporation[194](index=194&type=chunk) - The company's business scope covers security product development, security service provision, and security integration[195](index=195&type=chunk) [Basis of Preparation of Financial Statements](index=57&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The financial statements are prepared on a going concern basis in accordance with the enterprise accounting standards issued by the Ministry of Finance - The financial statements are prepared on a going concern basis in accordance with enterprise accounting standards[196](index=196&type=chunk) - The company has the ability to continue as a going concern for at least 12 months from the balance sheet date[197](index=197&type=chunk) [Significant Accounting Policies and Estimates](index=57&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the specific accounting policies and estimates applied by the company across various financial reporting areas - The company's normal operating cycle is one year (12 months), and its functional currency is the Renminbi (RMB)[201](index=201&type=chunk)[202](index=202&type=chunk) - Financial assets are classified into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[211](index=211&type=chunk) - **Revenue Recognition Principle**: Revenue is recognized when the customer obtains control of the related goods or services, at the transaction price allocated to that performance obligation[246](index=246&type=chunk) - **Communication Equipment and Software Sales**: Revenue is recognized upon transfer of the product to the customer or upon customer acceptance as stipulated in the contract[247](index=247&type=chunk) - **IT Services and Security System Integration**: Revenue is recognized based on the progress of performance or upon project completion and customer acceptance[247](index=247&type=chunk)[248](index=248&type=chunk) [Taxes](index=70&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) This section discloses the company's main taxes and tax rates, including preferential tax treatments such as the high-tech enterprise rate and VAT refunds - **Main Taxes and Rates**: Value-Added Tax (13%, 9%, 6%, 3%, 5%), City Maintenance and Construction Tax (7%, 5%), Corporate Income Tax (15%, 20%), Education Surcharge (3%), Local Education Surcharge (2%)[259](index=259&type=chunk) - The company and its subsidiaries are eligible for a preferential **Corporate Income Tax rate of 15%** as high-tech enterprises[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk) - The company and its subsidiaries receive a **VAT refund on software product sales**, with a total refund of 7,970,107.74 Yuan received during the reporting period[260](index=260&type=chunk)[263](index=263&type=chunk) - Some subsidiaries are eligible for a 5% additional VAT deduction policy for advanced manufacturing enterprises[261](index=261&type=chunk) [Notes to Consolidated Financial Statement Items](index=71&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed breakdowns and explanations for major items in the consolidated financial statements - **Cash and Cash Equivalents** at period-end totaled 2.537 billion Yuan, including 1.622 billion Yuan deposited with a related-party finance company[265](index=265&type=chunk) - **Accounts Receivable** had a carrying amount of 1.405 billion Yuan at period-end, with a bad debt provision of 305.93 million Yuan[279](index=279&type=chunk) - **Inventories** had a carrying amount of 482.70 million Yuan at period-end, with a total provision for inventory write-down and contract fulfillment cost impairment of 67.44 million Yuan[316](index=316&type=chunk) - **Construction in Progress** had a carrying amount of 1.095 billion Yuan at period-end, primarily for the Beijing Wangan production, R&D, and office environment project[337](index=337&type=chunk) - **Operating Revenue** for the period was 488.26 million Yuan, and operating cost was 271.62 million Yuan[404](index=404&type=chunk) - **R&D Expenses** for the period totaled 212.58 million Yuan, with 183.98 million Yuan expensed and 28.61 million Yuan capitalized[454](index=454&type=chunk) [R&D Expenditure](index=100&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) Total R&D expenditure for the period was 212.58 million Yuan, a decrease of 21.73% year-on-year, with several projects meeting capitalization criteria R&D Expenditure Details | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Employee Compensation | 151,146,449.56 | 212,528,885.37 | | Depreciation and Amortization | 44,038,240.54 | 38,777,044.58 | | Material Costs | 2,005,078.49 | 2,054,084.21 | | Others | 15,394,185.94 | 18,252,842.84 | | **Total** | **212,583,954.53** | **271,612,857.00** | | Of which: Expensed R&D | 183,978,044.74 | 239,321,711.17 | | Capitalized R&D | 28,605,909.79 | 32,291,145.83 | - Significant capitalized R&D projects include a secure electronic notepad and a database encryption and access control system, expected to generate economic benefits through product sales upon completion by December 31, 2026[457](index=457&type=chunk) [Interests in Other Entities](index=101&type=section&id=%E4%B9%9D%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) This section discloses the composition of the company's main subsidiaries and provides financial details for significant non-wholly-owned subsidiaries - Main subsidiaries include CETC (Beijing) Network Information Security Co, Ltd, Chengdu 30-Jiawei Electronics Co, Ltd, and Chengdu Westone Information Security Technology Co, Ltd[459](index=459&type=chunk) - Significant non-wholly-owned subsidiaries: Chengdu 30-Ruitong Mobile Communication Co, Ltd (minority interest 0.07%) and Chengdu 30-Jiawei Electronics Co, Ltd (minority interest 0.03%)[461](index=461&type=chunk)[462](index=462&type=chunk) - The total carrying amount of investments in insignificant associate companies is **22,124,365.27 Yuan**, with a net loss of -1,473,757.69 Yuan for the period[467](index=467&type=chunk) [Government Grants](index=103&type=section&id=%E5%8D%81%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) The company recognized 2.61 million Yuan in government grants in the current period's profit and loss, with 38.75 million Yuan remaining in deferred income - The period-end balance of income-related government grants in deferred income was **38,745,206.99 Yuan**[469](index=469&type=chunk) - The total amount of government grants recognized in the current period's profit or loss was **2,605,500.00 Yuan**[471](index=471&type=chunk) [Risks Related to Financial Instruments](index=103&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) The company manages credit, liquidity, and interest rate risks through established policies, continuous monitoring, and prudent financial management - The company faces **credit risk, liquidity risk, and interest rate risk**[472](index=472&type=chunk) - **Credit Risk Management**: Transacting with reputable counterparties, assessing customer creditworthiness, continuously monitoring receivables, and placing cash with high-credit-rated financial institutions[473](index=473&type=chunk)[474](index=474&type=chunk) - **Liquidity Risk Management**: Continuously monitoring short-term and long-term funding needs to ensure sufficient cash reserves and access to adequate credit facilities[476](index=476&type=chunk) - **Interest Rate Risk**: Arises mainly from short-term borrowings, with the company continuously monitoring interest rate levels[478](index=478&type=chunk) [Fair Value Disclosure](index=105&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) At the end of the reporting period, assets continuously measured at fair value totaled 4.47 million Yuan, primarily consisting of other equity instrument investments - The total amount of assets continuously measured at fair value at period-end was **4,473,503.31 Yuan**[480](index=480&type=chunk) - These assets are primarily other equity instrument investments, measured using Level 3 fair value inputs[480](index=480&type=chunk) [Related Parties and Transactions](index=105&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) This section details the company's related parties and outlines transactions involving the purchase and sale of goods, services, leasing, and key management compensation - The parent company is China Electronics Technology Network Information Security Co, Ltd, and the ultimate controlling party is China Electronics Technology Group Corporation[481](index=481&type=chunk) - During the reporting period, purchases of goods/services from related parties totaled **9.55 million Yuan**, and sales of goods/services to related parties totaled **62.07 million Yuan**[486](index=486&type=chunk)[487](index=487&type=chunk) - Compensation for key management personnel for the period amounted to **2,160,651.00 Yuan**[492](index=492&type=chunk) - Balances with related parties exist for receivable items such as notes, accounts, contract assets, prepayments, and other receivables[493](index=493&type=chunk) - Balances with related parties exist for payable items such as notes, accounts, contract liabilities, other payables, and dividends payable[497](index=497&type=chunk) [Share-based Payments](index=108&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98) The company's equity incentive plan resulted in the unlocking of 2,149,252 shares and the forfeiture of 40,920 shares during the period - This period, **2,149,252** equity incentive shares were unlocked, valued at 10,079,991.88 Yuan[499](index=499&type=chunk) - This period, **40,920** equity incentive shares were forfeited, valued at 467,306.40 Yuan[499](index=499&type=chunk) - The cumulative amount of equity-settled share-based payments recognized in capital reserve is **34,237,257.95 Yuan**[500](index=500&type=chunk) - The total expense recognized for equity-settled share-based payments this period was **-130,006.80 Yuan**[500](index=500&type=chunk) [Commitments and Contingencies](index=109&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) The company has no significant commitments or contingencies to disclose - The company has no significant commitments to disclose[501](index=501&type=chunk) - The company has no significant contingencies to disclose[502](index=502&type=chunk) [Other Significant Matters](index=109&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) A property purchased by subsidiary Beijing Wangan remains seized due to the developer's bankruptcy, with legal proceedings and settlement negotiations ongoing - A property purchased by subsidiary Beijing Wangan was seized due to litigation involving the developer, Jinfeng Kehua, who has entered bankruptcy proceedings[503](index=503&type=chunk)[504](index=504&type=chunk)[506](index=506&type=chunk) - The second-instance trial of Beijing Wangan's lawsuit challenging the seizure has resumed[507](index=507&type=chunk) - The bankruptcy settlement plan has not yet reached a stage sufficient for a creditor vote, and its outcome is uncertain[506](index=506&type=chunk) - The litigated property is classified under "Construction in Progress" with an original book value of **1.163 billion Yuan** and a cumulative impairment provision of **67.87 million Yuan**[507](index=507&type=chunk) [Notes to Parent Company Financial Statement Items](index=110&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed breakdowns and explanations for major items in the parent company's financial statements - The parent company's **accounts receivable** had a carrying amount of 235.77 million Yuan at period-end, with a bad debt provision of 23.02 million Yuan[512](index=512&type=chunk) - The parent company's **other receivables** totaled 172.03 million Yuan at period-end, including 170.00 million Yuan in dividends receivable[520](index=520&type=chunk) - The parent company's **long-term equity investments** had a carrying amount of 3.457 billion Yuan at period-end, of which 3.435 billion Yuan was investments in subsidiaries[538](index=538&type=chunk) - The parent company's **operating revenue** for the period was 140.09 million Yuan, and operating cost was 90.98 million Yuan[543](index=543&type=chunk) - The parent company's **investment income** for the period was -1.47 million Yuan, primarily from long-term equity investments accounted for using the equity method[545](index=545&type=chunk) [Supplementary Information](index=117&type=section&id=%E5%8D%81%E5%85%AB%E3%80%81%E8%A1%A5%E5%85%85%E8%B5%84%E6%96%99) This section provides supplementary details on non-recurring gains and losses, return on equity, and earnings per share Details of Non-recurring Gains and Losses | Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 27,252.66 | | Government Grants Recognized in Current Profit or Loss | 3,003,220.97 | | Fair Value Gains/Losses from Financial Assets and Liabilities Held by Non-financial Enterprises | 11,353,424.66 | | Reversal of Impairment Provision for Individually Tested Receivables | 40,100.00 | | Other Non-operating Income and Expenses | -172,339.11 | | Less: Income Tax Impact | 2,140,366.84 | | Minority Interest Impact (After Tax) | -11,273.58 | | **Total** | **12,122,565.92** | - The weighted average return on equity attributable to common shareholders was **-3.13%**, and basic earnings per share was **-0.2054 Yuan/share**[549](index=549&type=chunk) - The company had no discrepancies in accounting data under domestic versus foreign accounting standards[550](index=550&type=chunk) Other Submitted Data [Other Major Social Security Issues](index=119&type=section&id=%E4%B8%80%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E7%A4%BE%E4%BC%9A%E5%AE%89%E5%85%A8%E9%97%AE%E9%A2%98%E6%83%85%E5%86%B5) Neither the listed company nor its subsidiaries have other major social security issues and have not received any administrative penalties during the reporting period - Neither the listed company nor its subsidiaries have other major social security issues[552](index=552&type=chunk) - No administrative penalties were received during the reporting period[552](index=552&type=chunk) [Register of Investor Relations Activities](index=119&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E7%99%BB%E8%AE%B0%E8%A1%A8) The company hosted two institutional investor events during the reporting period to discuss performance, strategy, and key operational matters - On **February 13, 2025**, the company hosted an on-site institutional visit to discuss 2024 performance, 2025 outlook, accounts receivable, service models, emerging businesses, and the Beijing property issue[552](index=552&type=chunk) - On **April 29, 2025**, the company held a conference call with institutions to discuss current period performance, operational quality, development strategy, and business layout[552](index=552&type=chunk) [Fund Flows with Related Parties](index=119&type=section&id=%E4%B8%89%E3%80%81%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E4%B8%8E%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E8%B5%84%E9%87%91%E5%BE%80%E6%9D%A5%E6%83%85%E5%86%B5) The company maintained both operating and non-operating fund flows with its controlling shareholder and other related parties during the period Fund Flows with Controlling Shareholder and Other Related Parties | Counterparty Name | Nature of Flow | Opening Balance (10k Yuan) | Inflow this Period (10k Yuan) | Outflow this Period (10k Yuan) | Closing Balance (10k Yuan) | Interest Income (10k Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 30th Research Institute of CETC | Operating | 71,794.87 | 15,425.40 | 51,241.09 | 35,979.18 | 0 | | CETC Network Information Security Co, Ltd & other subsidiaries | Operating | 6,957.54 | 6,725.89 | 6,869.86 | 6,813.57 | 0 | | CETC & other subsidiaries | Operating | 26,429.97 | 1,169.55 | 4,853.19 | 22,746.33 | 0 | | CETC Finance Co, Ltd | Non-operating | 174,557.33 | 568,566.74 | 580,896.75 | 162,227.32 | 647.32 | | **Total** | **--** | **279,739.71** | **591,887.58** | **643,860.89** | **227,766.4** | **647.32** |

中国石化上海石油化工股份有限公司 2025 年半年度报告 公司代码：600688 公司简称：上海石化 中国石化上海石油化工股份有限公司 2025 年半年度报告 重要提示 公司已在本报告中详细描述可能存在的风险，敬请查阅第三章董事会报告第二节管理层讨论与 分析中关于公司可能面对的风险。 十、2025 年半年度报告分别以中、英文两种语言编制，如中、英文发生歧义，以中文版本为准。 1 一、中国石化上海石油化工股份有限公司（"公司"或"本公司"）董事会、监事会及董事、监事、 高级管理人员保证 2025 年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、公司全体董事出席审议通过 2025 年半年度报告的第十一届董事会第十九次会议。 三、公司截至 2025 年 6 月 30 日止 6 个月（"本报告期"、"报告期"）中期财务报告为未经审计。 四、公司负责人董事长郭晓军先生、主管会计工作负责人董事、副总经理兼财务总监杜军先生及会 计部门负责人（会计主管人员）财务部经理傅和娟女士声明：保证 2025 年半年度报告中财务报 告的真实、准确、完整。 五、本公司不分配 2 ...

冀凯装备制造股份有限公司 2025 年半年度报告全文 冀凯装备制造股份有限公司 2025 年半年度报告 2025 年 8 月 1 冀凯装备制造股份有限公司 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。 公司负责人冯帆、主管会计工作负责人乔贵彩及会计机构负责人(会计主 管人员)刘芳声明：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。 公司已在本报告中描述了公司可能面临的相关风险，请查阅本报告第三 节之管理层讨论与分析中相应内容，敬请广大投资者注意投资风险。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 备查文件目录 一、载有公司法定代表人签名、公司盖章的 2025 年半年度报告及摘要； 2 | 第一节 | 重要提示、目录和释义 | | ...

上海富瀚微电子股份有限公司 2025 年半年度报告全文 上海富瀚微电子股份有限公司 2025 年半年度报告 2025-051 2025 年 8 月 1 上海富瀚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 公司董事会及董事、高级管理人员保证半年度报告内容的真实、准确、完 整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责 任。 公司负责人杨小奇、主管会计工作负责人刘艳及会计机构负责人(会计主 管人员)晏勇声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 本半年度报告中涉及未来计划或规划等前瞻性陈述的，均不构成公司对投 资者的实质承诺，投资者及相关人士均应对此保持足够的风险意识，并且应当 理解计划、预测与承诺之间的差异。 公司在本报告"第三节 管理层讨论与分析"之"十、公司面临的风险和应对 措施"部分，详细描述了公司经营中可能存在的风险及应对措施，敬请投资者 关注相关内容。 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 | 目录 | | --- | | 第一节 | 重要提示、目录和释义 | 2 | ...

[Section I Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) This section provides definitions of common terms used throughout the report, ensuring clarity and consistent understanding of key entities and terminology [Definitions of Common Terms](index=4&type=section&id=%E5%B8%B8%E7%94%A8%E8%AF%8D%E8%AF%AD%E9%87%8A%E4%B9%89) This chapter provides definitions of common terms used in the report, including company names "Konggang Shares", controlling shareholder "Development Company", and major subsidiaries such as "Tianli Power" and "Tianrui Real Estate", ensuring report readers have a clear understanding of professional terminology and corporate entities - The report clarifies that "**The Company, Company, Konggang Shares**" all refer to "Beijing Konggang Technology Park Co., Ltd."[12](index=12&type=chunk) - "**Development Company, Controlling Shareholder, Major Shareholder**" all refer to "Beijing Konggang Economic Development Co., Ltd."[12](index=12&type=chunk) - Multiple abbreviations and full names of subsidiaries and related parties are listed, such as "**Tianli Power**" referring to "Beijing Tianli Power Heating Co., Ltd."[12](index=12&type=chunk) [Section II Company Profile and Key Financial Indicators](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section presents the company's fundamental information, contact details, stock overview, and a summary of key accounting data and financial indicators for the reporting period [I. Company Information](index=5&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section outlines the company's basic registration information, including its Chinese name, abbreviation, foreign name, and legal representative, for quick identification - The company's Chinese name is Beijing Konggang Technology Park Co., Ltd., abbreviated as **Konggang Shares**[14](index=14&type=chunk) - The company's legal representative is **Xia Zijing**[14](index=14&type=chunk) [II. Contact Persons and Information](index=5&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section provides detailed contact information for the company's Board Secretary and Securities Affairs Representative, facilitating communication for investors and relevant parties - The Board Secretary is **Zhang Pengnan**, and the Securities Affairs Representative is **Yang Chunyu**[15](index=15&type=chunk) - The contact address for both is No. A6 Yumin Street, B District, Konggang Industrial Zone, Shunyi District, Beijing[15](index=15&type=chunk) [III. Brief Introduction to Changes in Basic Information](index=5&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E5%8F%98%E6%9B%B4%E7%AE%80%E4%BB%8B) This section introduces the company's basic information such as registered address, office address, postal code, and website, noting that historical changes to the registered address are not applicable for the reporting period - The company's registered address is A District, Konggang Industrial Zone, Shunyi District, Beijing, and its office address is No. A6 Yumin Street, B District, Konggang Industrial Zone, Shunyi District, Beijing[16](index=16&type=chunk) - The company's website is **www.600463.com.cn**[16](index=16&type=chunk) [IV. Brief Introduction to Changes in Information Disclosure and Document Custody Locations](index=5&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) This section specifies the company's designated newspapers for information disclosure, the website address for semi-annual reports, and the location where reports are kept, ensuring transparency and accessibility of information disclosure - The company's selected newspapers for information disclosure include **China Securities Journal, Shanghai Securities News, Securities Times, and Securities Daily**[17](index=17&type=chunk) - The website for semi-annual reports is **www.sse.com.cn**[17](index=17&type=chunk) [V. Company Stock Overview](index=5&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) This section provides basic information about the company's stock, including stock type, listing exchange, stock abbreviation, and stock code, for investor inquiry and trading - The company's stock type is **A-shares**, listed on the **Shanghai Stock Exchange**[18](index=18&type=chunk) - The stock abbreviation is **Konggang Shares**, and the stock code is **600463**[18](index=18&type=chunk) [VII. Key Accounting Data and Financial Indicators](index=6&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section discloses the company's key accounting data and financial indicators for the first half of 2025, compared with the same period last year, showing a slight increase in operating revenue, but total profit and net profit remain negative, and net cash flow from operating activities significantly decreased [(I) Key Accounting Data](index=6&type=section&id=%28%E4%B8%80%29%20%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE) This section details the company's consolidated key accounting data for the first half of 2025, including operating revenue, total profit, net profit, net cash flow, net assets, and total assets, comparing them with the adjusted data from the same period last year 2025 Semi-Annual Key Accounting Data (Consolidated Statement) | Indicator | Current Reporting Period (Jan-Jun) | Same Period Last Year (Adjusted) | % Change from Same Period Last Year (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 259,603,573.62 | 258,312,563.44 | 0.50 | | Total Profit (Yuan) | -69,725,599.02 | -65,943,951.09 | N/A | | Net Profit Attributable to Shareholders of Listed Company (Yuan) | -52,345,536.11 | -53,249,054.41 | N/A | | Net Cash Flow from Operating Activities (Yuan) | -90,279,529.05 | -16,460,564.30 | -448.46 | | Net Assets Attributable to Shareholders of Listed Company (End of Period) (Yuan) | 930,751,962.21 | 1,057,517,519.89 | -11.99 | | Total Assets (End of Period) (Yuan) | 2,633,024,800.47 | 2,679,407,700.87 | -1.73 | [(II) Key Financial Indicators](index=6&type=section&id=%28%E4%BA%8C%29%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section lists the company's key financial indicators for the first half of 2025, including basic earnings per share, diluted earnings per share, basic earnings per share after deducting non-recurring gains and losses, and weighted average return on net assets, comparing them with the same period last year 2025 Semi-Annual Key Financial Indicators | Indicator | Current Reporting Period (Jan-Jun) | Same Period Last Year (Adjusted) | % Change from Same Period Last Year (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | -0.1745 | -0.1775 | N/A | | Diluted Earnings Per Share (Yuan/share) | -0.1745 | -0.1775 | N/A | | Basic Earnings Per Share After Deducting Non-recurring Gains and Losses (Yuan/share) | -0.1792 | -0.1733 | N/A | | Weighted Average Return on Net Assets (%) | -5.40 | -4.71 | Decreased by 0.69 percentage points | | Weighted Average Return on Net Assets After Deducting Non-recurring Gains and Losses (%) | -5.55 | -4.60 | Decreased by 0.95 percentage points | [Explanation of Key Accounting Data and Financial Indicators](index=6&type=section&id=%E5%85%AC%E5%8F%B8%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%E7%9A%84%E8%AF%B4%E6%98%8E) This section explains the reasons for changes in the company's accounting data and financial indicators, primarily due to the acquisition of 100% equity in Beijing Tianli Power Heating Co., Ltd. in January 2025, and the adjustment of comparative data according to accounting standards - The company completed the acquisition of **100% equity** in Beijing Tianli Power Heating Co., Ltd. in January 2025, making it a wholly-owned subsidiary[22](index=22&type=chunk) - According to "Accounting Standard for Business Enterprises No. 33 – Consolidated Financial Statements", the company adjusted comparative data due to a business combination under common control this year[22](index=22&type=chunk) [IX. Non-Recurring Gains and Losses and Amounts](index=7&type=section&id=%E4%B9%9D%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) This section details the company's non-recurring gains and losses and their amounts for the first half of 2025, totaling **1.41 million yuan**, primarily including government subsidies, fair value changes in financial assets, and capital occupation fees 2025 Semi-Annual Non-Recurring Gains and Losses and Amounts | Non-Recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Government subsidies included in current profit and loss | 2,485,492.48 | | Gains and losses from fair value changes of financial assets and liabilities held by non-financial enterprises and disposal of financial assets and liabilities | -1,711,140.77 | | Capital occupation fees collected from non-financial enterprises included in current profit and loss | 1,897,663.66 | | Other non-operating income and expenses apart from the above | -781,893.53 | | Income tax impact | -501,422.17 | | Impact of minority interests (after tax) | 23,113.36 | | Total | 1,411,813.03 | [Section III Management Discussion and Analysis](index=8&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides management's perspective on the company's industry, main business operations, operational performance, core competitiveness, and other significant matters during the reporting period [I. Explanation of the Company's Industry and Main Business Operations During the Reporting Period](index=8&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%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) This section elaborates on the company's main business composition and operating model as an airport-oriented industrial park listed company, including industrial real estate development, construction engineering, property leasing and management, and heating services, and analyzes the development trends and opportunities facing the industrial park industry [(I) Main Businesses and Operating Models of the Company During the Reporting Period](index=8&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E3%80%81%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) This section specifically introduces the operating models of the company's four core businesses: industrial real estate development, construction engineering, property leasing and management, and heating services, highlighting the characteristics and qualification advantages of each business - Industrial real estate development business covers investment, development, operation management, and services for industrial buildings, factories, and high-tech R&D facilities[27](index=27&type=chunk) - Construction engineering business is undertaken by **Tianyuan Construction**, holding multiple qualifications including Grade A general contracting for construction projects[27](index=27&type=chunk) - Property leasing and management business is handled by the company's headquarters, Tianrui Real Estate, and Tiandi Property, with **Tiandi Property** having an experienced professional team[28](index=28&type=chunk) - Heating service business is provided by **Tianli Power**, the sole heating company for Konggang Industrial Zone A, B, and Tianzhu Comprehensive Bonded Zone in Shunyi[28](index=28&type=chunk) [(II) Explanation of the Company's Industry Situation](index=8&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E5%85%AC%E5%8F%B8%E6%89%80%E5%A4%84%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) This section analyzes the development history of the industrial park industry, current challenges, and transformation trends, pointing out that parks are evolving towards refined, resource-efficient, and guidance-oriented development, integrating with urban economies and undertaking new urban functions - Industrial park development has experienced issues such as weak land-saving indicators, inadequate supervision, and severe homogenization[29](index=29&type=chunk) - Currently, industrial parks are transforming towards refined, resource-efficient, and guidance-oriented development models, and promoting the urbanization process of parks[29](index=29&type=chunk) - The Capital Airport Economic Zone is positioned as a national demonstration zone for the transformation and upgrading of airport economic zones, an important gateway for national opening-up, bringing opportunities for the company's development[31](index=31&type=chunk) [II. Discussion and Analysis of Operations](index=9&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) During the reporting period, the company actively promoted various businesses, with a slight increase in operating revenue, but total profit and net profit remained negative. The company expanded its heating business through the acquisition of Tianli Power, optimized its industrial park operations and construction business models, and steadily expanded its investment business [(I) Implementing the Internal Control System to Ensure its Effective Operation](index=9&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E5%86%85%E6%8E%A7%E4%BD%93%E7%B3%BB%EF%BC%8C%E7%A1%AE%E4%BF%9D%E5%86%85%E6%8E%A7%E4%BD%93%E7%B3%BB%E6%9C%89%E6%95%88%E8%BF%90%E8%A1%8C) The company comprehensively reviewed and revised its internal control norms and procedures, strictly tested the implementation of the internal control system, effectively ensuring decision-making for major matters, approval, and related party transaction management, enhancing operational efficiency and risk prevention capabilities - The company strictly followed internal control norms and procedural requirements, comprehensively reviewing work processes and methods[33](index=33&type=chunk) - All subsidiaries completed revisions to their respective articles of association and conducted strict tests on the implementation of the internal control system across departments and subsidiaries[33](index=33&type=chunk) - The implementation of internal control achievements provided clear and standardized work guidelines for the company's operation and management, enhancing work efficiency and risk prevention capabilities[34](index=34&type=chunk) [(II) Solidly Advancing Various Business Operations](index=9&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E6%89%8E%E5%AE%9E%E6%8E%A8%E8%BF%9B%E5%90%84%E9%A1%B9%E4%B8%9A%E5%8A%A1%E5%BC%80%E5%B1%95) The company actively promoted its three core businesses: industrial park development and operation, heating services, and construction engineering, improving asset operating efficiency, expanding heating area, and ensuring project quality and safety - Industrial park development and operation business: MAX-B R&D building project transformed into a biomedical industrial park, with an occupancy rate of approximately **70.91%**, property management area of approximately **402,400 square meters**, and related revenue increasing by approximately **9.00 million yuan** year-on-year[34](index=34&type=chunk)[35](index=35&type=chunk) - Heating services: Completed the acquisition of **100% equity** in Tianli Power, with a heating area reaching **3.9754 million square meters**, achieving operating revenue of **97.34 million yuan** and net profit of **0.59 million yuan**, improving profit margins[36](index=36&type=chunk) - Construction engineering business: Tianyuan Construction's newly started/restarted/completed total area was approximately **428,900 square meters**, with new中标 projects of approximately **67,700 square meters**, achieving operating revenue of **93.86 million yuan**, but net profit loss increased to **-69.54 million yuan**, mainly due to increased credit impairment losses[36](index=36&type=chunk)[37](index=37&type=chunk) [(III) Steadily Expanding Investment Business Operations Driven by Main Business](index=10&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E4%BB%A5%E4%B8%BB%E4%B8%9A%E5%B8%A6%E5%8A%A8%E4%B8%BA%E8%B5%B7%E7%82%B9%EF%BC%8C%E7%A8%B3%E6%AD%A5%E6%8B%93%E5%B1%95%E6%8A%95%E8%B5%84%E4%B8%9A%E5%8A%A1%E6%9C%89%E5%BA%8F%E8%BF%90%E8%90%A5) The company actively expanded its investment business by participating in private equity funds and other means, aiming to acquire new industries and project resources to supplement traditional businesses and achieve strategic goals, realizing fair value change losses of approximately **-1.71 million yuan** during the reporting period - The company expanded its investment business by investing in private equity funds (such as Yun Ding Fund, Weifang High-tech Fund) and equity investment projects (such as Weiguang Huitong Tourism Industry, Harbin Institute of Technology Research Institute)[37](index=37&type=chunk) - Investment business aims to understand and acquire new industries and project resources, forming a strong supplement to existing traditional businesses and achieving synergistic effects[37](index=37&type=chunk) 2025 Semi-Annual Investment Business Fair Value Change Gains and Losses | Indicator | Amount (Ten Thousand Yuan) | | :--- | :--- | | Fair Value Change Gains and Losses | -171.11 | [III. Analysis of Core Competitiveness During the Reporting Period](index=10&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company leveraged its proximity to Beijing Capital International Airport, upgraded its business system to build a full-value chain business matrix, and implemented a "three-in-one" value enhancement project, strengthening technology and financial capital injection, to create an "development-construction-operation" industrial ecosystem - The company leveraged its geographical advantage near Beijing Capital International Airport to complete business system upgrades and build a full-value chain business matrix[39](index=39&type=chunk) - Implemented a "**three-in-one**" value enhancement project: deepening land capital operation, strengthening technology capital injection ("smart park + scientific innovation service" platform), and innovating financial capital operation ("investment + business attraction + operation" model)[40](index=40&type=chunk) - The company built an "**development-construction-operation**" industrial ecosystem, enhancing asset operating efficiency through a digital platform, achieving organic integration of various business segments[40](index=40&type=chunk) [IV. Main Operating Conditions During the Reporting Period](index=11&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) This section deeply analyzes the company's main operating conditions during the reporting period, including changes in financial statement items, significant changes in business types and profit composition, asset and liability status, investment situation, and major asset and equity sales, and analyzes major holding and participating companies [(I) Analysis of Main Business](index=11&type=section&id=%28%E4%B8%80%29%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) This section analyzes the financial performance of the company's main business, explains the reasons for changes in key financial statement items, and details significant changes in the company's business types and profit composition during the current period, especially the inclusion of heating services 2025 Semi-Annual Key Financial Item Changes | Item | Current Period Amount (Yuan) | Same Period Last Year Amount (Yuan) | % Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 259,603,573.62 | 258,312,563.44 | 0.50 | | Operating Cost | 202,546,827.05 | 203,477,178.40 | -0.46 | | Selling Expenses | 187,536.22 | 27,665.14 | 577.88 | | Administrative Expenses | 48,640,930.05 | 60,262,873.07 | -19.29 | | Financial Expenses | 20,426,811.48 | 18,444,644.22 | 10.75 | | Net Cash Flow from Operating Activities | -90,279,529.05 | -16,460,564.30 | -448.46 | | Net Cash Flow from Investing Activities | -76,616,288.20 | -5,047,971.30 | -1,417.76 | | Net Cash Flow from Financing Activities | 132,847,152.80 | -3,230,941.75 | 4,211.72 | - In January 2025, the company completed the acquisition of **100% equity** in Beijing Tianli Power Heating Co., Ltd., entering the regional energy service market, with heating business achieving revenue of **97.34 million yuan**, becoming a new source of revenue and profit growth[43](index=43&type=chunk) [(III) Analysis of Assets and Liabilities](index=12&type=section&id=%28%E4%B8%89%29%20%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) This section analyzes the company's asset and liability status at the end of the reporting period, focusing on significant changes and their reasons in items such as monetary funds, construction in progress, short-term borrowings, contract liabilities, and long-term borrowings, reflecting changes in the company's investment and financing activities 2025 Semi-Annual Asset and Liability Status Changes | Item Name | Current Period End Amount (Yuan) | % of Total Assets at Current Period End | Prior Year End Amount (Adjusted) (Yuan) | % of Total Assets at Prior Year End | % Change from Prior Year End | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 54,562,357.74 | 2.07 | 77,447,757.45 | 2.89 | -29.55 | Due to acquisition of subsidiary equity in current period | | Construction in Progress | 12,438,782.13 | 0.47 | 4,011,729.33 | 0.15 | 210.06 | Due to new MAX-B renovation project in current period | | Short-term Borrowings | 476,632,999.68 | 18.10 | 280,330,973.35 | 10.46 | 70.03 | Due to expanded short-term financing scale in current period | | Contract Liabilities | 73,305,720.32 | 2.78 | 99,582,783.37 | 3.72 | -26.39 | Due to transfer of eligible contract liabilities to operating revenue | | Long-term Borrowings | 77,849,999.00 | 2.96 | 147,733,333.35 | 5.51 | -47.30 | Due to reclassification of long-term borrowings due within one year | - As of the end of the reporting period, details of the company's restricted assets are provided in Note VII, 31 of the financial report[46](index=46&type=chunk) [(IV) Analysis of Investment Status](index=12&type=section&id=%28%E5%9B%9B%29%20%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) This section analyzes the company's investment status, particularly financial assets measured at fair value, disclosing the company's investments in private equity funds and their fair value change gains and losses 2025 Semi-Annual Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (Yuan) | Fair Value Change Gains and Losses for Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | | Private Equity Funds | 60,991,500.66 | -1,711,140.77 | 59,280,359.89 | - The company participated in private equity investment projects such as **Yunding Fund, Yunding Venture Capital Fund, and Weifang High-tech Fund**[49](index=49&type=chunk)[50](index=50&type=chunk) - These fund investments are classified as financial assets measured at fair value through profit or loss, reported as other non-current financial assets[50](index=50&type=chunk) [(V) Major Asset and Equity Sales](index=14&type=section&id=%28%E4%BA%94%29%20%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) This section discloses the company's proposed major asset sale of **80% equity** in Tianyuan Construction to its controlling shareholder Konggang Development, which is currently in the planning stage and no letter of intent has been signed - The company plans to sell **80% equity** in Tianyuan Construction to its controlling shareholder Konggang Development[51](index=51&type=chunk) - This transaction is intended to be conducted in cash, and upon completion, the company will no longer hold equity in Tianyuan Construction[51](index=51&type=chunk) - The transaction is currently in the planning stage, requiring necessary decision-making and approval procedures, and no letter of intent has been signed[51](index=51&type=chunk) [(VI) Analysis of Major Holding and Participating Companies](index=14&type=section&id=%28%E5%85%AD%29%20%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This section analyzes the financial status and operating results of the company's major holding and participating companies, specifically explaining the acquisition and disposal of subsidiaries during the reporting period, and emphasizing the positive impact of the Tianli Power acquisition on the company's business structure and financial stability Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit (Unit: Ten Thousand Yuan) | 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) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Konggang Tianrui Real Estate Investment Co., Ltd. | Subsidiary | Real estate development, non-residential real estate leasing | 2,900.00 | 45,974.08 | 12,326.57 | 964.85 | -406.25 | -304.69 | | Beijing Tianli Power Heating Co., Ltd. | Subsidiary | Heating services | 2,980.00 | 24,257.46 | 6,654.87 | 9,733.62 | 174.54 | 59.42 | | Beijing Tianyuan Construction Engineering Co., Ltd. | Subsidiary | Construction engineering | 14,500.00 | 109,903.40 | -4,669.07 | 9,386.17 | -6,938.92 | -6,954.03 | - The company completed the wholly-owned acquisition of Beijing Tianli Power Heating Co., Ltd. through a cash acquisition of equity under common control[53](index=53&type=chunk) - Tianli Power's heating business has stable business scale and cash flow, and its inclusion in the company's system will significantly enhance the company's financial stability and add new business growth points[53](index=53&type=chunk) [V. Other Disclosure Matters](index=15&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) This section discloses potential risks faced by the company, including macroeconomic environment and policy risks, raw material and labor price fluctuation risks, liquidity risks, and investment management risks, emphasizing the company's continuous efforts in risk prevention and mitigation, and prudent business expansion - The company faces macroeconomic environment and policy risks, where reduced demand, supply-side challenges, and weakened market expectations in the real estate industry may affect core businesses[53](index=53&type=chunk) - Raw material and labor price fluctuation risks may lead to increased company costs and decreased gross profit margins[54](index=54&type=chunk) - Liquidity risk stems from the high capital demand and long collection cycles of the construction business, as well as the uncertain exit speed of equity investment projects[54](index=54&type=chunk) - Investment management risk primarily arises from financial assets measured at fair value being affected by capital market fluctuations, potentially increasing net profit uncertainty[54](index=54&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=16&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) This section details changes in the company's governance structure, including directors and supervisors, profit distribution plans, and environmental information disclosure for relevant subsidiaries [I. Changes in Company Directors, Supervisors, and Senior Management](index=16&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) This section discloses changes in the company's directors, supervisors, and senior management during the reporting period, including the departure of Deputy General Manager and CFO Wu Zheng, the appointment of Guo Chao, and the departure of Supervisory Board Chairman Guo Chao, and the appointment of Qu Jie Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Change Status | | :--- | :--- | :--- | | Wu Zheng | Deputy General Manager, CFO | Departed | | Guo Chao | Deputy General Manager, CFO | Appointed | | Guo Chao | Supervisory Board Chairman | Departed | | Qu Jie | Supervisory Board Chairman | Appointed | - Related changes were disclosed in announcements on **March 21, 2025**, and **April 8, 2025**[57](index=57&type=chunk) [II. Profit Distribution or Capital Reserve Conversion Plan](index=16&type=section&id=%E4%BA%8C%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) This section clarifies that the company will not conduct profit distribution or capital reserve conversion into share capital for the semi-annual period, meaning no bonus shares, no cash dividends, and no capital increase from reserves - The company's proposed semi-annual profit distribution or capital reserve conversion plan is "**None**"[6](index=6&type=chunk) Semi-Annual Profit Distribution or Capital Reserve Conversion Plan | Is there distribution or conversion | No | | :--- | :--- | | No. of bonus shares per 10 shares (shares) | 0 | | Dividend per 10 shares (Yuan) (incl. tax) | 0 | | No. of shares converted per 10 shares (shares) | 0 | [IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=17&type=section&id=%E5%9B%9B%E3%80%81%E7%BA%B3%E5%85%A5%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E4%BE%9D%E6%B3%95%E6%8A%AB%E9%9C%B2%E4%BC%81%E4%B8%9A%E5%90%8D%E5%8D%95%E7%9A%84%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E4%B8%BB%E8%A6%81%E5%AD%90%E5%85%AC%E5%8F%B8%E7%9A%84%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%83%85%E5%86%B5) This section discloses the number of companies and their major subsidiaries included in the list of enterprises required to disclose environmental information by law, along with their environmental information report query index, showing that **two** subsidiaries were included - The company has **2** subsidiaries included in the list of enterprises required to disclose environmental information by law[59](index=59&type=chunk) Enterprises Included in the List of Enterprises Required to Disclose Environmental Information by Law | No. | Enterprise Name | Query Index for Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Beijing Tianli Power Heating Co., Ltd. Tianli No. 1 Plant | https://hjxxpl.bevoice.com.cn:8002/home | | 2 | Beijing Tianli Power Heating Co., Ltd. Tianli No. 2 Plant | https://hjxxpl.bevoice.com.cn:8002/home | [Section V Significant Matters](index=18&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section covers significant corporate events, including the fulfillment of commitments, major litigation, integrity status, related party transactions, and significant contracts [I. Fulfillment of Commitments](index=18&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) This section discloses the fulfillment of commitments made by the company's controlling shareholder, Beijing Konggang Economic Development Co., Ltd., regarding avoiding horizontal competition, all of which are currently strictly fulfilled - The controlling shareholder, Development Company, issued a "Commitment Letter to Avoid Horizontal Competition" on **November 9, 2009**, pledging not to engage in industrial land development, industrial real estate development and industrial plant operation, and property management for the company's own properties or self-developed real estate projects[61](index=61&type=chunk) - In late **2015**, due to overall planning adjustments in Shunyi District, Beijing, the Development Company acquired some assets and businesses related to Konggang Shares' main operations, and made a supplementary commitment on **December 16, 2016**, including continuing to strictly fulfill previous commitments and injecting businesses that meet listing conditions into Konggang Shares within the next 24 months[61](index=61&type=chunk) - During the reporting period, all commitments by the controlling shareholder were strictly fulfilled[61](index=61&type=chunk) [VII. Major Litigation and Arbitration Matters](index=19&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A1%B9) This section discloses major litigation and arbitration matters involving the company during the reporting period, primarily concerning construction and material payment disputes of its subsidiary Tianyuan Construction, with all cases currently under trial - Subsidiary Tianyuan Construction is involved in a construction payment dispute with Beijing Tiantong Shunda Construction Engineering Co., Ltd., with a claim for **3.45 million yuan**[445](index=445&type=chunk) - Subsidiary Tianyuan Construction is involved in a sales contract dispute with Beijing Fu Rui Shun Feng Concrete Co., Ltd., with a claim for **4.32 million yuan** for material payments[445](index=445&type=chunk) - Subsidiary Tianyuan Construction is involved in a sales contract dispute with Zhang Hexiao (assignment of claim), with a claim for **1.33 million yuan** for material payments[445](index=445&type=chunk) - Subsidiary Tianyuan Construction is involved in a construction payment dispute with Yuan Wenlin, with a claim for **1.20 million yuan** for construction payments[446](index=446&type=chunk) [IX. Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period](index=19&type=section&id=%E4%B9%9D%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) This section states that the company, its controlling shareholder, and actual controller had no unfulfilled court judgments or overdue large debts during the reporting period, indicating a good integrity status - During the reporting period, the company, its controlling shareholder, and actual controller had no unfulfilled court judgments[63](index=63&type=chunk) - During the reporting period, the company, its controlling shareholder, and actual controller had no large overdue debts[63](index=63&type=chunk) [X. Significant Related Party Transactions](index=19&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) This section details various significant transactions with related parties during the reporting period, including daily operating related party transactions, asset acquisition/disposal related party transactions, and related party creditor-debtor relationships, explaining the progress and amounts of relevant transactions [(I) Related Party Transactions Related to Daily Operations](index=19&type=section&id=%28%E4%B8%80%29%20%E4%B8%8E%E6%97%A5%E5%B8%B8%E7%BB%8F%E8%90%A5%E7%9B%B8%E5%85%B3%E7%9A%84%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) This section discloses related party transactions such as purchase and sale of goods, provision and acceptance of labor services in the company's daily operations, and explains the adjustment of the estimated annual daily related party transaction amount for 2025, as well as the actual amount incurred during the reporting period - The company's estimated annual daily related party transaction amount for 2025 was adjusted to **268.00 million yuan**, mainly because Tianli Power's inclusion in the company's consolidated financial statements means its transactions with other related parties of the company will be recognized as related party transactions[65](index=65&type=chunk) Cumulative Daily Related Party Transactions from January to June 2025 (Unit: Ten Thousand Yuan) | Related Party | Related Party Transaction Content | Business Nature | Pricing Principle for Related Party Transactions | Amount (Ten Thousand Yuan) | % of Similar Transaction Amount (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Konggang Economic Development Co., Ltd. | Electricity Fees | Acceptance of Labor | Market Price | 15.43 | 1.35 | | Beijing Hangji International Logistics Co., Ltd. | Property Services | Provision of Labor | Market Price | 390.37 | 34.16 | | Beijing Guomen Konggang Economic and Technological Development Co., Ltd. | Heating Services | Provision of Labor | Market Price | 142.12 | 1.47 | | Beijing Hangji International Logistics Co., Ltd. | Operating Lease | Provision of Labor | Market Price | 1,226.79 | 18.23 | | Total | | | | 3,431.65 | | [(II) Related Party Transactions Arising from Asset or Equity Acquisition/Disposal](index=21&type=section&id=%28%E4%BA%8C%29%20%E8%B5%84%E4%BA%A7%E6%94%B6%E8%B4%AD%E6%88%96%E8%82%A1%E6%9D%83%E6%94%B6%E8%B4%AD%E3%80%81%E5%87%BA%E5%94%AE%E5%8F%91%E7%94%9F%E7%9A%84%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) This section discloses the company's proposed major asset sale of **80% equity** in Tianyuan Construction to its controlling shareholder Konggang Development, which is intended to be conducted in cash, and upon completion, the company will no longer hold equity in Tianyuan Construction, currently still in the planning stage - The company plans to sell **80% equity** in Tianyuan Construction to its controlling shareholder Konggang Development[67](index=67&type=chunk) - This transaction is intended to be conducted in cash, and upon completion, the company will no longer hold equity in Tianyuan Construction[67](index=67&type=chunk) - The transaction is currently in the planning stage, requiring further deliberation and negotiation, and necessary decision-making and approval procedures[51](index=51&type=chunk) [(IV) Related Party Creditor-Debtor Relationships](index=21&type=section&id=%28%E5%9B%9B%29%20%E5%85%B3%E8%81%94%E5%80%BA%E6%9D%83%E5%80%BA%E5%8A%A1%E5%BE%80%E6%9D%A5) This section discloses the company's creditor-debtor relationships with related parties, including the progress of subsidiary Tianyuan Construction's application for a loan from the controlling shareholder, and the ending balances and reasons for funds provided by the company to its wholly-owned subsidiaries Tianrui Real Estate, Tianhui Technology, and controlling subsidiary Notting Hill Real Estate - Subsidiary Tianyuan Construction applied for a **300.00 million yuan** credit loan from the controlling shareholder, of which **40.00 million yuan** has been drawn as of the disclosure date[68](index=68&type=chunk) Funds Provided by the Company to Related Parties in the First Half of 2025 (Unit: Ten Thousand Yuan) | Related Party | Beginning Balance (Ten Thousand Yuan) | Amount Incurred (Ten Thousand Yuan) | Ending Balance (Ten Thousand Yuan) | | :--- | :--- | :--- | :--- | | Beijing Konggang Tianrui Real Estate Investment Co., Ltd. | 32,455.53 | -127.62 | 32,327.91 | | Beijing Konggang Tianhui Technology Development Co., Ltd. | 162.04 | 0.00 | 162.04 | | Beijing Notting Hill Real Estate Co., Ltd. | 10,554.04 | 336.20 | 10,890.24 | | Total | 43,171.61 | 208.58 | 43,380.19 | - Loans to Tianrui Real Estate, Tianhui Technology, and other receivables are temporary loans for project development and to address liquidity constraints[70](index=70&type=chunk) [XI. Significant Contracts and Their Fulfillment](index=22&type=section&id=%E5%8D%81%E4%B8%80%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 section discloses the fulfillment of significant contracts during the reporting period, primarily including leasing matters and significant guarantees, detailing information on leasing contracts as a lessor and the company's status as a guaranteed party Company as Lessor in Leasing Situations in the First Half of 2025 (Unit: Ten Thousand Yuan) | Lessor Name | Lessee Name | Leased Asset Description | Amount Involved in Leased Asset (Ten Thousand Yuan) | Lease Start Date | Lease End Date | Lease Income (Ten Thousand Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Konggang Technology Park Co., Ltd. | Beijing Hangji International Logistics Co., Ltd. | Comprehensive Bonded Warehouse A and adjacent office space, Multi-functional Plant B and adjacent office space | 10,268.15 | 2018/9/1 | 2033/8/31 | 689.80 | | Beijing Konggang Technology Park Co., Ltd. | Beijing Hangji International Logistics Co., Ltd. | Part of Standard Factory Building | 4,002.70 | 2020/10/1 | 2027/9/30 | 536.99 | | Beijing Tianyuan Construction Engineering Co., Ltd. | Beijing Konggang Economic Development Co., Ltd. | Part of Building A6 Yumin Street | 334.43 | 2025/5/12 | 2026/5/11 | 153.06 | Company as Guaranteed Party in the First Half of 2025 (Unit: Ten Thousand Yuan) | Guarantor | Guaranteed Amount (Ten Thousand Yuan) | Guarantee Start Date | Guarantee End Date | Is Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Beijing Konggang Economic Development Co., Ltd. | 1080 | 2024.3.29 | 2027.3.28 | No | | Beijing Konggang Economic Development Co., Ltd. | 5000 | 2025.3.28 | 2025.9.27 | No | | Beijing Konggang Economic Development Co., Ltd. | 4000 | 2024.8.16 | 2025.8.15 | No | | Total Guarantee Balance for Subsidiaries at Period End (B) | 10,146.23 | | | | | % of Total Guarantee Amount to Company's Net Assets (%) | 10.90 | | | | [Section VI Share Changes and Shareholder Information](index=25&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section outlines changes in the company's share capital, details of its shareholder structure, and information regarding directors, supervisors, and senior management [I. Share Capital Change Status](index=25&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) This section states that the company's total share capital and share capital structure remained unchanged during the reporting period, maintaining stability - During the reporting period, the company's total share capital and share capital structure remained unchanged[77](index=77&type=chunk) [II. Shareholder Information](index=25&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section discloses the total number of shareholders at the end of the reporting period, as well as the shareholding of the top ten shareholders and top ten unrestricted circulating share shareholders, showing that the controlling shareholder Beijing Konggang Economic Development Co., Ltd. holds **49.32%** of the shares Total Number of Ordinary Shareholders at the End of the Reporting Period | Indicator | Quantity | | :--- | :--- | | Total Number of Ordinary Shareholders (Households) | 22,305 | Shareholding of Top Ten Shareholders at the End of the Reporting Period | Shareholder Name | Ending Shareholding Quantity (Shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Beijing Konggang Economic Development Co., Ltd. | 147,946,207 | 49.32 | State-owned Legal Person | | China Development Bank Financial Leasing Co., Ltd. | 37,340,700 | 12.45 | State-owned Legal Person | | Shanghai Ruichengqian Enterprise Management Consulting Partnership (Limited Partnership) | 2,215,700 | 0.74 | Domestic Non-State-owned Legal Person | - Beijing Lingkong Xingrong Private Equity Fund Management Co., Ltd. is a wholly-owned subsidiary of the company's controlling shareholder, Beijing Konggang Economic Development Co., Ltd., and is an acting-in-concert party[81](index=81&type=chunk) [III. Information on Directors, Supervisors, and Senior Management](index=27&type=section&id=%E4%B8%89%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%83%85%E5%86%B5) This section states that there were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - During the reporting period, there were no changes in the shareholdings of the company's directors, supervisors, and senior management, meaning it is not applicable[83](index=83&type=chunk) [IV. Changes in Controlling Shareholder or Actual Controller](index=27&type=section&id=%E5%9B%9B%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) This section states that there were no changes in the company's controlling shareholder or actual controller during the reporting period - During the reporting period, there were no changes in the company's controlling shareholder or actual controller, meaning it is not applicable[83](index=83&type=chunk) [Section VII Bond-Related Information](index=27&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section provides information on the company's bond-related activities, including corporate bonds and convertible corporate bonds [I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=27&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%EF%BC%88%E5%90%AB%E4%BC%81%E4%B8%9A%E5%80%BA%E5%88%B8%EF%BC%89%E5%92%8C%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E4%B8%9A%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7) This section states that the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during the reporting period - The company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during the reporting period[84](index=84&type=chunk) [II. Convertible Corporate Bonds](index=27&type=section&id=%E4%BA%8C%E3%80%81%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E6%83%85%E5%86%B5) This section states that the company had no convertible corporate bonds during the reporting period - The company had no convertible corporate bonds during the reporting period[84](index=84&type=chunk) [Section VIII Financial Report](index=28&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and detailed notes on accounting policies and financial items [I. Audit Report](index=28&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This section states that the company's semi-annual report is unaudited - This semi-annual report is unaudited[5](index=5&type=chunk) [II. Financial Statements](index=28&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the company's consolidated and parent company financial statements for the first half of 2025, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, comprehensively presenting the company's financial position, operating results, and cash flow situation [Consolidated Balance Sheet](index=28&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) This section presents the company's consolidated balance sheet as of June 30, 2025, detailing the composition and amounts of current assets, non-current assets, current liabilities, non-current liabilities, and owners' equity, reflecting the company's overall financial position at the end of the period Consolidated Balance Sheet Key Data (June 30, 2025) | Item | June 30, 2025 (Yuan) | December 31, 2024 (Yuan) | | :--- | :--- | :--- | | Total Current Assets | 1,633,061,940.14 | 1,670,951,411.97 | | Total Non-Current Assets | 999,962,860.33 | 1,008,456,288.90 | | Total Assets | 2,633,024,800.47 | 2,679,407,700.87 | | Total Current Liabilities | 1,564,133,377.41 | 1,396,332,741.02 | | Total Non-Current Liabilities | 145,060,120.48 | 215,980,558.48 | | Total Liabilities | 1,709,193,497.89 | 1,612,313,299.50 | | Total Owners' Equity Attributable to Parent Company | 930,751,962.21 | 1,057,517,519.89 | | Total Owners' Equity | 923,831,302.58 | 1,067,094,401.37 | [Parent Company Balance Sheet](index=31&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) This section presents the company's parent company balance sheet as of June 30, 2025, detailing the composition of assets, liabilities, and owners' equity at the parent company level, reflecting the parent company's independent financial position Parent Company Balance Sheet Key Data (June 30, 2025) | Item | June 30, 2025 (Yuan) | December 31, 2024 (Yuan) | | :--- | :--- | :--- | | Total Current Assets | 686,420,106.27 | 692,822,056.08 | | Total Non-Current Assets | 683,189,211.61 | 623,556,248.05 | | Total Assets | 1,369,609,317.88 | 1,316,378,304.13 | | Total Current Liabilities | 326,191,210.22 | 261,453,867.74 | | Total Non-Current Liabilities | 82,327,500.90 | 93,955,213.56 | | Total Liabilities | 408,518,711.12 | 355,409,081.30 | | Total Owners' Equity | 961,090,606.76 | 960,969,222.83 | [Consolidated Income Statement](index=33&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) This section presents the company's consolidated income statement for January-June 2025, detailing key operating results such as total operating revenue, total operating cost, total profit, and net profit, classified by continuing operations and ownership Consolidated Income Statement Key Data (January-June 2025) | Item | 2025 Semi-Annual (Yuan) | 2024 Semi-Annual (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 259,603,573.62 | 258,312,563.44 | | Total Operating Cost | 281,973,208.25 | 291,362,323.22 | | Total Profit | -69,725,599.02 | -65,943,951.09 | | Net Profit | -68,843,077.22 | -66,243,938.52 | | Net Profit Attributable to Parent Company Shareholders | -52,345,536.11 | -53,249,054.41 | | Basic Earnings Per Share (Yuan/share) | -0.17 | -0.18 | | Diluted Earnings Per Share (Yuan/share) | -0.17 | -0.18 | [Parent Company Income Statement](index=35&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) This section presents the company's parent company income statement for January-June 2025, detailing operating results such as operating revenue, operating cost, total profit, and net profit at the parent company level Parent Company Income Statement Key Data (January-June 2025) | Item | 2025 Semi-Annual (Yuan) | 2024 Semi-Annual (Yuan) | | :--- | :--- | :--- | | Operating Revenue | 45,310,726.27 | 41,633,641.94 | | Operating Profit | 11,506,458.44 | 10,994,485.71 | | Total Profit | 11,250,921.72 | 11,990,925.25 | | Net Profit | 8,586,866.37 | 8,842,112.51 | [Consolidated Cash Flow Statement](index=37&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This section presents the company's consolidated cash flow statement for January-June 2025, detailing net cash flows from operating, investing, and financing activities, reflecting the company's cash inflows and outflows during the reporting period Consolidated Cash Flow Statement Key Data (January-June 2025) | Item | 2025 Semi-Annual (Yuan) | 2024 Semi-Annual (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -90,279,529.05 | -16,460,564.30 | | Net Cash Flow from Investing Activities | -76,616,288.20 | -5,047,971.30 | | Net Cash Flow from Financing Activities | 132,847,152.80 | -3,230,941.75 | | Net Increase in Cash and Cash Equivalents | -34,048,664.45 | -24,739,477.35 | | Ending Balance of Cash and Cash Equivalents | 41,969,992.24 | 95,078,309.69 | [Parent Company Cash Flow Statement](index=39&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This section presents the company's parent company cash flow statement for January-June 2025, detailing net cash flows from operating, investing, and financing activities at the parent company level Parent Company Cash Flow Statement Key Data (January-June 2025) | Item | 2025 Semi-Annual (Yuan) | 2024 Semi-Annual (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 14,733,795.63 | 5,702,306.29 | | Net Cash Flow from Investing Activities | -83,964,130.01 | -1,142,722.02 | | Net Cash Flow from Financing Activities | 56,782,394.22 | -64,052,244.50 | | Net Increase in Cash and Cash Equivalents | -12,447,940.16 | -59,492,660.23 | | Ending Balance of Cash and Cash Equivalents | 15,453,411.71 | 23,241,861.03 | [Consolidated Statement of Changes in Owners' Equity](index=40&type=section&id=%E5%90%88%E5%B9%B6%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) This section presents the company's consolidated statement of changes in owners' equity for January-June 2025, detailing the beginning balance, current period changes, and ending balance of items such as share capital, capital reserves, other comprehensive income, surplus reserves, undistributed profits, and minority interests Consolidated Statement of Changes in Owners' Equity Key Data (January-June 2025) | Item | Beginning Balance (Yuan) | Amount of Change in Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | | Paid-in Capital (or Share Capital) | 300,000,000.00 | 0.00 | 300,000,000.00 | | Capital Reserve | 573,649,816.60 | -74,420,021.57 | 499,229,795.03 | | Undistributed Profits | 108,485,646.29 | -52,345,536.11 | 56,140,110.18 | | Total Owners' Equity Attributable to Parent Company | 1,057,517,519.89 | -126,765,557.68 | 930,751,962.21 | | Minority Interests | 9,576,881.48 | -16,497,541.11 | -6,920,659.63 | | Total Owners' Equity | 1,067,094,401.37 | -143,263,098.79 | 923,831,302.58 | - Capital reserve decreased by **74.42 million yuan** in the current period, mainly due to the impact of business combination under common control[106](index=106&type=chunk) [Parent Company Statement of Changes in Owners' Equity](index=44&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) This section presents the company's parent company statement of changes in owners' equity for January-June 2025, detailing the beginning balance, current period changes, and ending balance of items such as share capital, capital reserves, other comprehensive income, surplus reserves, and undistributed profits at the parent company level Parent Company Statement of Changes in Owners' Equity Key Data (January-June 2025) | Item | Beginning Balance (Yuan) | Amount of Change in Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | | Paid-in Capital (or Share Capital) | 300,000,000.00 | 0.00 | 300,000,000.00 | | Capital Reserve | 509,010,075.77 | -8,465,482.44 | 500,544,593.33 | | Undistributed Profits | 76,577,090.06 | 8,586,866.37 | 85,163,956.43 | | Total Owners' Equity | 960,969,222.83 | 121,383.93 | 961,090,606.76 | [III. Company Basic Information](index=46&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) This section provides detailed information on the company's establishment, history of share capital changes, registered capital, registered address, legal representative, parent company, and ultimate controlling party, as well as its main business scope, providing foundational information for understanding the company's background - The company was established on **March 28, 2000**, and listed on the Shanghai Stock Exchange on **March 18, 2004**[113](index=113&type=chunk) - After multiple share capital changes, as of **June 30, 2025**, the company's total issued share capital was **300 million shares**[116](index=116&type=chunk) - The company's parent company is Beijing Konggang Economic Development Co., Ltd., and the ultimate controlling party is the **State-owned Assets Supervision and Administration Commission of Shunyi District People's Government of Beijing**[117](index=117&type=chunk) - The company is primarily engaged in construction engineering, property leasing, heating services, property management, and labor services[117](index=117&type=chunk) [IV. Basis of Financial Statement Preparation](index=47&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) This section explains the basis for preparing the company's financial statements, including the going concern assumption, adherence to enterprise accounting standards, and measurement based on accrual basis and historical cost, while confirming that there are no significant doubts about the going concern assumption within the next 12 months - The company's financial statements are prepared on a **going concern basis**, adhering to enterprise accounting standards and relevant regulations of the China Securities Regulatory Commission[118](index=118&type=chunk) - Accounting is based on the **accrual basis**, and except for some financial instruments, all are measured at historical cost[118](index=118&type=chunk) - There are no matters that may cause significant doubts about the going concern assumption within **12 months** from the end of the reporting period[119](index=119&type=chunk) [V. Significant Accounting Policies and Accounting Estimates](index=47&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the significant accounting policies and estimates followed by the company in preparing its financial statements, covering business combinations, consolidated financial statements, financial instruments, accounts receivable, inventories, contract assets, long-term equity investments, investment properties, fixed assets, construction in progress, intangible assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, share-based payments, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases - The company adheres to enterprise accounting standards to truly and completely reflect its financial position, operating results, and cash flows[120](index=120&type=chunk) - The company uses a **12-month** operating cycle as the standard for classifying assets and liabilities as current or non-current[122](index=122&type=chunk) - The company classifies and subsequently measures financial instruments, including those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) - For accounts receivable and contract assets arising from sales of goods, provision of services, and other daily operating activities, the company measures loss provisions based on expected credit losses over the entire lifetime[147](index=147&type=chunk)[158](index=158&type=chunk) - The company's revenue recognition principle is to recognize revenue when performance obligations in the contract are satisfied, i.e., when the customer obtains control of the related goods or services[195](index=195&type=chunk) [VI. Taxation](index=68&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) This section discloses the company's main tax categories and rates, including value-added tax, urban maintenance and construction tax, education surcharge, property tax, enterprise income tax, and land value-added tax, and explains the tax preferential policy of VAT exemption for heating fees collected by heating enterprises from individual residents Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | VAT taxable amount | 13%, 9%, 6%, 5%, 3% | | Enterprise Income Tax | Taxable income | 25% | | Property Tax | For self-used properties, based on 70%-90% of original property value | 1.2% | | Property Tax | For leased properties, based on rental income | 12% | - According to Cai Shui [2023] No. 56, from **September 22, 2023**, until the end of the **2027** heating season, heating enterprises are exempt from VAT on heating fees collected from individual residents[214](index=214&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=68&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes for each item in the consolidated financial statements, including monetary funds, accounts receivable, contract assets, short-term borrowings, operating revenue and cost, credit impairment losses, and asset impairment losses - Ending balance of monetary funds was **54.56 million yuan**, of which **12.59 million yuan** was restricted, mainly due to court-frozen funds from litigation and letter of credit deposits[216](index=216&type=chunk)[217](index=217&type=chunk) - Ending book value of accounts receivable was **252.45 million yuan**, with total bad debt provision of **195.03 million yuan**[227](index=227&type=chunk) - Ending book value of contract assets was **808.99 million yuan**, with total bad debt provision of **89.61 million yuan**[236](index=236&type=chunk) - Ending balance of short-term borrowings was **476.63 million yuan**, an increase of **70.03%** from the beginning of the period, mainly comprising guaranteed loans and credit loans[315](index=315&type=chunk) - Operating revenue for the current period was **259.60 million yuan**, and operating cost was **202.55 million yuan**[353](index=353&type=chunk) - Credit impairment losses for the current period were **-47.10 million yuan**, and asset impairment losses were **0.08 million yuan**[368](index=368&type=chunk)[369](index=369&type=chunk) [IX. Changes in Consolidation Scope](index=120&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) This section discloses the company's business combination under common control during the reporting period, specifically the acquisition of **100% equity** in Beijing Tianli Power Heating Co., Ltd., and details the merger cost and the book value of the acquiree's assets and liabilities at the acquisition date - On **January 3, 2025**, the company acquired **100% equity** in Beijing Tianli Power Heating Co., Ltd. through a business combination under common control[401](index=401&type=chunk) Beijing Tianli Power Heating Co., Ltd. Merger Cost | Merger Cost Item | Amount (Yuan) | | :--- | :--- | | Cash | 74,420,021.57 | Book Value of Beijing Tianli Power Heating Co., Ltd. Assets and Liabilities at Merger Date | Item | Merger Date (Yuan) | | :--- | :--- | | Assets | 286,878,453.32 | | Liabilities | 220,923,914.19 | | Net Assets | 65,954,539.13 | | Net Assets Acquired | 65,954,539.13 | [X. Interests in Other Entities](index=123&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) This section discloses the company's interests in subsidiaries, joint ventures, and associates, including the composition of the enterprise group, key financial information of important non-wholly-owned subsidiaries, and summarized financial information of unimportant joint ventures and associates - The company owns wholly-owned subsidiaries such as Beijing Konggang Tianrui Real Estate Investment Co., Ltd., Beijing Konggang Tiandi Property Management Co., Ltd., and Beijing Tianli Power Heating Co., Ltd.[408](index=408&type=chunk) - Beijing Tianyuan Construction Engineering Co., Ltd. is a controlling subsidiary of the company, with a shareholding ratio of **80.00%**[408](index=408&type=chunk) Key Financial Information of Important Non-Wholly-Owned Subsidiaries (2025 Semi-Annual, Unit: Ten Thousand Y

北京空港科技园区股份有限公司2025年第一季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者 重大遗漏,并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整, 不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 证券代码:600463 证券简称:空港股份 北京空港科技园区股份有限公司 2025 年第一季度报告 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中财务 信息的真实、准确、完整。 第一季度财务报表是否经审计 口是 √ 否 一、主要财务数据 (一)主要会计数据和财务指标 单位:元 币种:人民币 | 项目 | 本报告期 | 上年同期 | | 本报告期比上 年同期增减变 | | --- | --- | --- | --- | --- | | | | | | 动幅度(%) | | | | 调整前 | 调整后 | 调整后 | | 营业收入 | 152,833,618.10 | 73,901,908.91 | 162, 812, 992. 27 | - ...

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山东金城医药集团股份有限公司 2025 年半年度报告全文 山东金城医药集团股份有限公司 2025 年半年度报告 2025 年 8 月 1 山东金城医药集团股份有限公司 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。 公司负责人赵叶青、主管会计工作负责人刘静及会计机构负责人(会计主 管人员)徐冲声明：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。 本报告中所涉及的未来计划、发展战略、经营计划等前瞻性描述不构成公 司对投资者的实质承诺，敬请投资者注意投资风险。 公司在本报告"第三节 管理层讨论与分析"之第十部分"公司面临的风险 和应对措施"详细描述了公司经营中可能存在的风险，敬请投资者关注相关内 容。 公司经本次董事会审议通过的利润分配预案为：以 2025 年 6 月 30 日公司 总股本 383,874,587 股扣除回购专用账户中 4,543,000 股后的 379,331,587 股为基数，向全体 ...