[Important Notice](index=2&type=section&id=Important%20Notice) [Overview](index=2&type=section&id=Important%20Notice-Overview) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report and assume legal responsibility, noting that this report is unaudited and contains no profit distribution or capital reserve conversion plans for the reporting period, while also cautioning investors about forward-looking statements and significant risks. - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, assuming legal responsibility[3](index=3&type=chunk) - This semi-annual report is unaudited[5](index=5&type=chunk) - There are no profit distribution or capital reserve conversion plans for the reporting period[6](index=6&type=chunk) - The company advises investors to be aware of investment risks, with detailed descriptions of potential risks provided in "Section III Management Discussion and Analysis"[6](index=6&type=chunk)[7](index=7&type=chunk) [Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) [Overview](index=4&type=section&id=Definitions-Overview) This section defines common terms used throughout the report, including the company, its controlling shareholder, and actual controller, to ensure accurate understanding of the content. - This section provides definitions for common terms used in the report, including company names, related parties, regulatory bodies, and the definition of the reporting period[15](index=15&type=chunk) [Section II Company Profile and Key Financial Indicators](index=4&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) [I. Company Information](index=4&type=section&id=Company%20Information) This section presents the company's basic registration details, such as its Chinese name, abbreviation, foreign name, and legal representative, providing essential identification information for investors. Company Basic Information | Indicator | Content | | :--- | :--- | | Chinese Name | 大晟时代文化投资股份有限公司 | | Chinese Abbreviation | 大晟文化 | | Foreign Name | DASHENG TIMES CULTURAL INVESTMENT CO.,LTD. | | Legal Representative | 崔洪山 | [II. Contact Persons and Information](index=4&type=section&id=Contact%20Persons%20and%20Information) This section provides detailed contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, fax, and email, to facilitate investor communication and inquiries. Contact Persons and Information | Position | Name | Phone | Email | | :--- | :--- | :--- | :--- | | Board Secretary | 曾庆生 | 0755-82359089 | dswh@600892.com.cn | | Securities Affairs Representative | 张媛媛 | 0755-82359089 | dswh@600892.com.cn | [III. Brief Introduction to Changes in Basic Information](index=5&type=section&id=Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) This section outlines the current status of the company's registered address, office address, website, and email, noting that historical changes can be found in Shanghai Stock Exchange announcements and there were no changes during the reporting period. - The company's registered address is Room 2406, Luohu Business Center, No. 2028 Shennan East Road, Chengdong Community, Dongmen Street, Luohu District, Shenzhen[17](index=17&type=chunk) - The company's office address is 6th Floor, Postal Comprehensive Building, No. 28-1 Jingtian North First Street, Futian District, Shenzhen[17](index=17&type=chunk) - There were no changes in the company's basic information during the reporting period[17](index=17&type=chunk) [IV. Brief Introduction to Changes in Information Disclosure and Document Custody Locations](index=5&type=section&id=Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Custody%20Locations) This section specifies the company's chosen newspapers for information disclosure, the website for semi-annual report publication (www.sse.com.cn), and the company's Board of Directors Office as the document custody location, with no changes during the reporting period. - The company's designated newspapers for information disclosure include Shanghai Securities News, Securities Times, Securities Daily, and China Securities Journal[18](index=18&type=chunk) - The semi-annual report is published on www.sse.com.cn[18](index=18&type=chunk) - There were no changes in information disclosure or document custody locations during the reporting period[18](index=18&type=chunk) [V. Company Stock Profile](index=5&type=section&id=Company%20Stock%20Profile) This section provides essential information about the company's stock, including its type, listing exchange, stock abbreviation, stock code, and previous abbreviations, indicating that the company's A-shares are listed on the Shanghai Stock Exchange under stock code 600892. Company Stock Profile | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | Previous Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | *ST大晟 | 600892 | ST宝诚、宝诚股份、大晟文化 | [VII. Key Accounting Data and Financial Indicators](index=5&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue increased by 39.11% year-on-year, but total profit, net profit attributable to listed company shareholders, and non-recurring net profit all incurred significant losses, with the loss amount expanding year-on-year; net cash flow from operating activities also showed a substantial outflow, while net assets attributable to listed company shareholders decreased by 44.14% year-on-year, and total assets increased by 16.96% year-on-year. Key Accounting Data (January-June 2025 vs. Prior Year Period) | Key Accounting Data | Current Reporting Period (Jan-Jun) (yuan) | Prior Year Period (yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 108,778,620.36 | 78,193,878.61 | 39.11 | | Total Profit | -39,313,525.98 | -13,132,758.80 | N/A | | Net Profit Attributable to Listed Company Shareholders | -33,727,417.93 | -15,554,288.64 | N/A | | Net Profit Attributable to Listed Company Shareholders After Deducting Non-Recurring Gains and Losses | -33,498,443.95 | -17,094,373.85 | N/A | | Net Cash Flow from Operating Activities | -74,411,505.58 | -18,368,447.97 | N/A | Period-End Asset and Liability Data (June 30, 2025 vs. Prior Year-End) | Indicator | Current Period-End (yuan) | Prior Year-End (yuan) | Period-End vs. Prior Year-End Change (%) | | :--- | :--- | :--- | :--- | | Net Assets Attributable to Listed Company Shareholders | 42,677,786.77 | 76,405,204.70 | -44.14 | | Total Assets | 393,357,372.27 | 336,309,774.52 | 16.96 | Key Financial Indicators (January-June 2025 vs. Prior Year Period) | Key Financial Indicators | Current Reporting Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | -0.06 | -0.03 | N/A | | Diluted Earnings Per Share (yuan/share) | -0.06 | -0.03 | N/A | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (yuan/share) | -0.06 | -0.03 | N/A | | Weighted Average Return on Net Assets (%) | -56.65 | -11.71 | N/A | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | -56.26 | -12.87 | N/A | [IX. Non-Recurring Gains and Losses Items and Amounts](index=6&type=section&id=Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to **-228,973.98 yuan**, primarily comprising gains and losses from disposal of non-current assets, fair value changes, and other non-operating income and expenses, which negatively impacted net profit. Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -18,450.00 | | Government grants included in current profit and loss | 11,951.04 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and disposal gains and losses | -460,773.34 | | Capital occupation fees received from non-financial enterprises included in current profit and loss | 6,226.42 | | Other non-operating income and expenses apart from the above | -486,604.55 | | Other items meeting the definition of non-recurring gains and losses | 1,221,126.69 | | Less: Income tax impact | 48,411.50 | | Impact on minority interests (after tax) | 454,038.74 | | Total | -228,973.98 | [Section III Management Discussion and Analysis](index=7&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) [I. Industry and Main Business Overview During the Reporting Period](index=7&type=section&id=Industry%20and%20Main%20Business%20Overview%20During%20the%20Reporting%20Period) The company's main business encompasses online game R&D and operation, along with film/TV series and short drama production and distribution; the game business operates on an integrated R&D and operation model, generating revenue through virtual item consumption, while the film/TV business invests in and produces content for broadcasters, cinemas, and video platforms, and the short drama business employs a "dual-driven" strategy, monetizing through user payments or advertising via self-produced, externally acquired, self-operated, and distributed content; the game market saw significant growth in the first half of the year, with mobile games dominating and AI and mini-games gaining momentum, while the film/TV market exhibited a "long-form stable, short-form expanding" trend, with short dramas becoming more refined, receiving increased policy support, and AI technology increasingly applied in post-production. - The company's main business is online game research and development, operation, and film/TV series and short drama production and distribution[27](index=27&type=chunk) - The short drama business adopts a "dual-driven" strategy, utilizing self-produced, externally acquired, self-operated, and distributed content to attract users for paid unlocking or advertising monetization[28](index=28&type=chunk) - In the first half of 2025, the domestic game market achieved actual sales revenue of **168 billion yuan**, a year-on-year increase of over **14%**, with the game user base reaching nearly **679 million**, a year-on-year increase of **0.72%**, both setting new historical highs[29](index=29&type=chunk) - In the first half of 2025, the Chinese drama market showed a "long-form stable, short-form expanding" pattern, with micro-short dramas increasing to **35%** of the total, and average investment in short dramas rising to **800,000 yuan**, with production quality approaching that of long-form dramas[31](index=31&type=chunk) [(I) The Company's Main Business is Online Game R&D, Operation, and Film/TV Series and Short Drama Production and Distribution](index=7&type=section&id=The%20Company's%20Main%20Business%20is%20Online%20Game%20R%26D,%20Operation,%20and%20Film/TV%20Series%20and%20Short%20Drama%20Production%20and%20Distribution) The company's core business activities include the research, development, and operation of online games, alongside the production and distribution of film/TV series and short dramas. - The company's main business includes online game research and development, operation (PC client games, mobile games), and film/TV series and short drama production and distribution[27](index=27&type=chunk) - The short drama business acquires content through self-production and external procurement, employing both self-operated and distribution models, generating revenue from user paid unlocking or advertising views[28](index=28&type=chunk) [(II) Industry Overview](index=7&type=section&id=Industry%20Overview) The game market experienced significant growth in the first half of 2025, with mobile games maintaining dominance and mini-games emerging as a key growth driver, while the drama market saw a rise in micro-short dramas, which are becoming more refined and receiving increased policy support, with AI technology increasingly applied in post-production. - In the first half of 2025, the domestic game market achieved actual sales revenue of **168 billion yuan**, a year-on-year increase of over **14%**, with the game user base reaching nearly **679 million**, a year-on-year increase of **0.72%**, both setting new historical highs[29](index=29&type=chunk) - Mobile games continue to hold a dominant position, accounting for **74.59%** of the domestic game market's actual sales revenue; client games account for **21.07%**; the mini-game market is heating up, becoming an important driver for industry growth[29](index=29&type=chunk)[30](index=30&type=chunk) - In the first half of 2025, the Chinese drama market showed a "long-form stable, short-form expanding" pattern, with micro-short dramas increasing to **35%** of the total, and average investment in short dramas rising to **800,000 yuan**, with production quality approaching that of long-form dramas[31](index=31&type=chunk) - The National Radio and Television Administration has issued multiple regulations to promote the standardization and high-quality development of micro-short dramas, and AI technology is increasingly applied in film and television post-production visual effects[32](index=32&type=chunk) [II. Discussion and Analysis of Operations](index=8&type=section&id=Discussion%20and%20Analysis%20of%20Operations) During the reporting period, the company focused on its "grand cultural strategic framework to build a pan-entertainment industry platform" goal, enhancing standardized management and risk control while improving business monetization capabilities; the game business, through its subsidiary Taole Network, boosted profitability by adjusting marketing strategies and optimizing game versions, with "Xian Ling Xiao Yao" and "Shao Nian Xian Jie Chuan" revenues increasing by **125%** and **90%** respectively; in the film and television cultural business, the company established a "creation-filming-editing-distribution" content matrix in the domestic short drama market and strengthened its pipeline of quality projects, while its overseas short drama platform App (Cafe Drama) launched a test version with approximately **100,000** installations and **10,000** daily active users; concurrently, mid-to-long-form dramas such as the licensed custom drama "Fly to My Heart" and the Chinese drama "My Name is Shen Qiye" commenced filming. - The company is committed to becoming a light-asset listed company integrating "culture, digital, and technology," aligning with its "grand cultural strategic framework to build a pan-entertainment industry platform" strategic goal[32](index=32&type=chunk) - The game business's profitability improved, with revenues from "Xian Ling Xiao Yao" and "Shao Nian Xian Jie Chuan" increasing by **125%** and **90%** year-on-year, respectively[34](index=34&type=chunk) - In the domestic short drama sector, the company has established a complete "creation-filming-editing-distribution" content matrix and continues to strengthen its pipeline of high-quality projects[34](index=34&type=chunk) - The overseas independent short drama platform App (Cafe Drama) has launched its first batch of test versions, with approximately **100,000** installations and a daily average active user (DAU) count of about **10,000**[34](index=34&type=chunk) - For mid-to-long-form dramas, licensed custom drama "Fly to My Heart" and Chinese drama "My Name is Shen Qiye" have successively commenced filming[35](index=35&type=chunk) [III. Analysis of Core Competencies During the Reporting Period](index=9&type=section&id=Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company's core competencies stem from its experienced management team and talent advantages, robust R&D capabilities and stable user base in online games, and a continuously upgraded film and television production chain covering investment, production, post-production, distribution, and artist management, forming a vertically integrated advantage. - The company's core management team in the online game business possesses years of industry experience from well-known enterprises, with a mature team dynamic[36](index=36&type=chunk) - The company has accumulated strong R&D capabilities in client games, web games, and mobile games, particularly excelling in key technologies such as image compression and installation package size control[37](index=37&type=chunk) - The company boasts a large and loyal user base for turn-based and role-playing games, which are easily converted into high-quality mobile game users[37](index=37&type=chunk) - The film and television business has established a vertically integrated industry chain covering investment, custom dramas, mid-to-short drama production, post-production, short drama distribution, and artist management[37](index=37&type=chunk) [IV. Key Operating Performance During the Reporting Period](index=10&type=section&id=Key%20Operating%20Performance%20During%20the%20Reporting%20Period) During the reporting period, the company's operating revenue increased by **39.11%** year-on-year, primarily due to new short drama, performing arts, film and television post-production, and technical service businesses; operating costs, selling expenses, administrative expenses, and financial expenses all significantly increased, with selling expenses rising due to increased advertising for short dramas, administrative expenses due to new personnel costs and concert business expenses, and financial expenses due to increased borrowings; R&D expenses decreased by **10.61%** year-on-year; net cash flow from operating activities showed a substantial outflow, net cash flow from investing activities turned negative, and net cash flow from financing activities significantly increased; regarding assets and liabilities, inventories surged by **129.38%** due to increased film and television investments, and short-term borrowings and accounts payable also rose significantly; the company made several equity investments, established multiple subsidiaries, and held financial assets measured at fair value, but fair value changes resulted in a loss. Financial Statement Item Fluctuation Analysis (January-June 2025 vs. Prior Year Period) | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 108,778,620.36 | 78,193,878.61 | 39.11 | | Operating Cost | 32,683,103.18 | 6,728,498.82 | 385.74 | | Selling Expenses | 56,533,635.05 | 38,694,452.71 | 46.10 | | Administrative Expenses | 29,750,690.63 | 18,869,753.36 | 57.66 | | Financial Expenses | 2,208,551.39 | 717,278.17 | 207.91 | | R&D Expenses | 25,714,400.58 | 28,766,072.44 | -10.61 | | Net Cash Flow from Operating Activities | -74,411,505.58 | -18,368,447.97 | N/A | | Net Cash Flow from Investing Activities | -904,569.58 | 4,479,911.98 | -120.19 | | Net Cash Flow from Financing Activities | 61,964,972.21 | -2,455,296.91 | N/A | - Operating revenue growth is primarily due to new short drama business, performing arts business, film and television post-production, and technical service revenue in the current period[38](index=38&type=chunk) - The increase in selling expenses is mainly due to increased advertising costs for the short drama business; the increase in administrative expenses is mainly due to new personnel costs, office rent, and concert business expenses; the increase in financial expenses is mainly due to increased borrowing in the current period[38](index=38&type=chunk) [(I) Main Business Analysis](index=10&type=section&id=Main%20Business%20Analysis) Operating revenue increased by **39.11%** due to new short drama, performing arts, film and television post-production, and technical service businesses, while operating costs, selling expenses, administrative expenses, and financial expenses all saw significant increases, primarily driven by the expansion of new businesses and increased borrowing, leading to a substantial outflow in net cash flow from operating activities and a significant increase in net cash flow from financing activities. - Operating revenue increased by **39.11%**, mainly due to new short drama business, performing arts business, film and television post-production, and technical service revenue in the current period[38](index=38&type=chunk) - Operating costs increased by **385.74%**, mainly due to increased costs from new short drama business, performing arts business, film and television post-production, and technical service business in the current period[39](index=39&type=chunk) - Selling expenses increased by **46.10%**, mainly due to increased advertising costs for the short drama business[39](index=39&type=chunk) - Administrative expenses increased by **57.66%**, mainly due to increased personnel costs, office rent, and concert business expenses[39](index=39&type=chunk) - Financial expenses increased by **207.91%**, mainly due to increased borrowing in the current period[39](index=39&type=chunk) - Net cash flow from operating activities showed a substantial outflow, mainly due to increased film and television investments in the current period[39](index=39&type=chunk) - Net cash flow from financing activities significantly increased, mainly due to increased borrowing in the current period[40](index=40&type=chunk) [(III) Analysis of Assets and Liabilities](index=11&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) Inventories at period-end increased by **129.38%** due to increased film and television investments, while short-term borrowings and other payables also saw significant increases, primarily driven by increased loans and borrowings from the controlling shareholder, with overseas assets accounting for **2.63%** of total assets. Asset and Liability Fluctuation (June 30, 2025 vs. Prior Year-End) | Item Name | Current Period-End Amount (yuan) | Current Period-End % of Total Assets | Prior Year-End Amount (yuan) | Prior Year-End % of Total Assets | Change from Prior Year-End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 43,898,773.73 | 11.16 | 57,788,313.44 | 17.18 | -24.04 | | | Accounts Receivable | 34,047,189.10 | 8.66 | 22,049,698.50 | 6.56 | 54.41 | Mainly due to business expansion in the current period | | Inventories | 71,974,085.79 | 18.30 | 31,377,013.80 | 9.33 | 129.38 | Mainly due to increased film and television investments in the current period | | Short-Term Borrowings | 21,019,111.12 | 5.34 | 10,011,611.11 | 2.98 | 109.95 | Mainly due to increased loans in the current period | | Accounts Payable | 72,334,465.86 | 18.39 | 47,982,188.84 | 14.27 | 50.75 | Mainly due to increased film and television business expansion in the current period | | Other Payables | 155,770,066.79 | 39.60 | 94,204,315.77 | 28.01 | 65.35 | Mainly due to increased borrowings from the controlling shareholder in the current period | - Inventories at period-end increased by **129.38%**, primarily due to increased film and television investments in the current period[41](index=41&type=chunk) - Short-term borrowings at period-end increased by **109.95%**, primarily due to increased loans in the current period[41](index=41&type=chunk) - Other payables at period-end increased by **65.35%**, primarily due to increased borrowings from the controlling shareholder in the current period[42](index=42&type=chunk) - Overseas assets amounted to **10,348,433.72 yuan**, accounting for **2.63%** of total assets[43](index=43&type=chunk) [(IV) Analysis of Investment Status](index=12&type=section&id=Analysis%20of%20Investment%20Status) The company made several new equity investments during the period, totaling **17.7 million yuan**, by establishing multiple subsidiaries, and held equity investments measured at fair value, which resulted in a negative fair value change loss of **460,741.81 yuan**. Significant Equity Investment Information | Investee Company Name | Main Business | Investment Method | Investment Amount (yuan) | Shareholding Ratio | Impact on Current Period Profit/Loss (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Wanhe Ruisheng Culture Media Co., Ltd. | Film/TV series, short drama production | New establishment | 3,500,000.00 | 70% | -1,466,835.49 | | Guangzhou Yimeng Culture Media Co., Ltd. | Short drama production, distribution | New establishment | 1,000,000.00 | 100% | -510,605.89 | | Beijing Liuliang Qidian Media Technology Co., Ltd. | Other technology promotion services | New establishment | 1,200,000.00 | 60% | 0.00 | | Yixin Shuzhi Technology (Hebei) Co., Ltd. | Digital technology | New establishment | 12,000,000.00 | 60% | 996,440.97 | | Total | / | / | 17,700,000.00 | / | -981,000.41 | - The company made several new equity investments in the current period, including the establishment of Beijing Wanhe Ruisheng Culture Media Co., Ltd., Guangzhou Yimeng Culture Media Co., Ltd., Beijing Liuliang Qidian Media Technology Co., Ltd., and Yixin Shuzhi Technology (Hebei) Co., Ltd., with a total investment of **17.7 million yuan**[45](index=45&type=chunk) - Financial assets measured at fair value are primarily equity investments, with a period-end balance of **660,031.82 yuan**, and a fair value change loss of **-460,741.81 yuan** in the current period[47](index=47&type=chunk)[48](index=48&type=chunk) [(VI) Analysis of Major Holding and Participating Companies](index=15&type=section&id=Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) During the reporting period, several key subsidiaries reported net losses attributable to the parent company's shareholders, while the acquisition and establishment of new subsidiaries are expected to contribute to the company's long-term development. - The net profit attributable to the parent company's shareholders for the holding subsidiary Shenzhen Taole Network Technology Co., Ltd. was **-1.406 million yuan** during the reporting period[49](index=49&type=chunk) - The net profit attributable to the parent company's shareholders for the wholly-owned subsidiary Wuxi Zhonglian Chuandong Culture Communication Co., Ltd. was **-0.1701 million yuan** during the reporting period[50](index=50&type=chunk) - The net profit attributable to the parent company's shareholders for the wholly-owned subsidiary Shenzhen Yuerong Investment Management Co., Ltd. was **-18.6677 million yuan** during the reporting period[51](index=51&type=chunk) - During the reporting period, the company acquired and established several subsidiaries, including Beijing Hongyou Culture Media Co., Ltd., Beijing Wanhe Ruisheng Culture Media Co., Ltd., and Guangzhou Yimeng Culture Media Co., Ltd., all of which are beneficial for the company's long-term development[52](index=52&type=chunk) [V. Other Disclosure Matters](index=16&type=section&id=Other%20Disclosure%20Matters) The company faces heightened market competition, development risks for online game products, and industry policy changes; intense competition in the game industry could lead to player attrition and market share decline; the rapid iteration and limited life cycle of online game products, coupled with the challenge of consistently launching new products or upgrading existing ones to meet market expectations, could negatively impact performance; both the film/TV and game industries are susceptible to policy changes, such as stricter game license approvals and content censorship, which may pose challenges to the company's operations. - The company faces risks of intensified market competition in the game and film/TV industries, which could lead to player attrition and reduced market share[53](index=53&type=chunk) - Online game product development carries risks, including rapid product iteration, limited life cycles, and quick shifts in user preferences, which could negatively impact operating performance[53](index=53&type=chunk) - Both the film/TV and game industries are subject to risks from changes in industry policies, such as stricter game license approvals and film/TV content censorship, which could pose challenges to the company's business development[54](index=54&type=chunk)[55](index=55&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=17&type=section&id=Section%20IV%20Corporate%20Governance,%20Environment,%20and%20Society) [I. Changes in Directors, Supervisors, and Senior Management](index=17&type=section&id=Changes%20in%20Directors,%20Supervisors,%20and%20Senior%20Management) 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[57](index=57&type=chunk) [II. Profit Distribution or Capital Reserve Conversion Plan](index=17&type=section&id=Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company's proposed semi-annual profit distribution or capital reserve conversion plan is "none," meaning no distribution or conversion will occur. - The company's proposed semi-annual profit distribution or capital reserve conversion plan is "no," indicating no distribution or conversion will take place[57](index=57&type=chunk) [III. Information and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=17&type=section&id=Information%20and%20Impact%20of%20Company%20Equity%20Incentive%20Plans,%20Employee%20Stock%20Ownership%20Plans,%20or%20Other%20Employee%20Incentive%20Measures) During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures. - During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures[58](index=58&type=chunk) [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=Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) The company is not included in the list of enterprises required to disclose environmental information by law, and therefore has no relevant environmental information to disclose. - The company is not included in the list of enterprises required to disclose environmental information by law[58](index=58&type=chunk) [V. Specific Progress in Consolidating Poverty Alleviation Achievements and Rural Revitalization](index=18&type=section&id=Specific%20Progress%20in%20Consolidating%20Poverty%20Alleviation%20Achievements%20and%20Rural%20Revitalization) The company has not disclosed specific progress regarding its efforts to consolidate poverty alleviation achievements and promote rural revitalization. - The company has not disclosed specific progress in consolidating poverty alleviation achievements or rural revitalization efforts[59](index=59&type=chunk) [Section V Significant Matters](index=19&type=section&id=Section%20V%20Significant%20Matters) [I. Fulfillment of Commitments](index=19&type=section&id=Fulfillment%20of%20Commitments) The company's actual controller, controlling shareholder, and other related parties have strictly fulfilled all commitments during or continuing into the reporting period, primarily concerning share lock-up, personnel independence, asset independence and completeness, financial independence, organizational independence, business independence, resolution of horizontal competition, and regulation of related party transactions. - The **97,067,037 shares** acquired by the company through agreement transfer will not be transferred in any form within **18 months** from the completion of the transfer registration procedures[61](index=61&type=chunk) - Controlling shareholder Tangshan Wenlv committed to ensuring the listed company's independence in personnel, assets, finance, organization, and business, and to taking measures to avoid horizontal competition and regulate related party transactions[61](index=61&type=chunk)[62](index=62&type=chunk) - Zhou Zhenke and Dasheng Asset unconditionally and irrevocably waived voting rights for a total of **68,808,835 shares** (accounting for **12.30%** of the total share capital) of Dasheng Culture held by them[61](index=61&type=chunk) - Dasheng Asset and its affiliated companies committed to avoiding or reducing related party transactions with the company and to preventing horizontal competition[62](index=62&type=chunk) [II. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties During the Reporting Period](index=21&type=section&id=Non-Operating%20Funds%20Occupied%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties%20During%20the%20Reporting%20Period) During the reporting period, the company had no instances of non-operating funds being occupied by controlling shareholders or other related parties. - During the reporting period, the company had no instances of non-operating funds being occupied by controlling shareholders or other related parties[64](index=64&type=chunk) [III. Irregular Guarantees](index=21&type=section&id=Irregular%20Guarantees) During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures. - During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures[64](index=64&type=chunk) [VII. Significant Litigation and Arbitration Matters](index=22&type=section&id=Significant%20Litigation%20and%20Arbitration%20Matters) The company is involved in multiple previously disclosed significant litigation and arbitration matters; specifically, in the shareholder liability dispute with Qinhuangdao Xinda Asset Information Co., Ltd. concerning damage to company creditors' interests, the company appealed the first-instance judgment, but the second-instance court rejected the appeal and upheld the original judgment; the company has since applied for a retrial review of this case and filed an objection to the freezing of its bank account funds, which involves an amount of **5.328 million yuan**. - The company has multiple significant litigation and arbitration matters that have been disclosed in temporary announcements, with no further progress[65](index=65&type=chunk) - In the shareholder liability dispute with Qinhuangdao Xinda Asset Information Co., Ltd. concerning damage to company creditors' interests, the company appealed the first-instance judgment, but the second-instance court rejected the appeal and upheld the original judgment[67](index=67&type=chunk) - The company has applied for a retrial review of this case, which was officially filed on August 19, 2025[67](index=67&type=chunk) - The lawsuit involves an amount of **5.328 million yuan**, and approximately **5.2243 million yuan** of the company's bank account deposits have been frozen, against which the company has filed an objection to the enforcement[67](index=67&type=chunk) [X. Significant Related Party Transactions](index=24&type=section&id=Significant%20Related%20Party%20Transactions) During the reporting period, the company engaged in related party transactions related to its daily operations, including leasing premises from related parties, custom game development, and technical services, with estimated amounts of **2 million yuan** and **8 million yuan** respectively, and actual amounts of **0.9464 million yuan** and **4.52 million yuan**; additionally, the company co-invested with its controlling shareholder, Tangshan Wenlv, to establish Yixin Shuzhi Technology (Hebei) Co., Ltd., with the company contributing **12 million yuan** for a **60%** stake; the company also applied for a loan not exceeding **50 million yuan** from its controlling shareholder, Tangshan Wenlv. - The company's holding subsidiary won a bid for a brand IP design and development service project from the controlling shareholder, Tangshan Wenlv, as disclosed in a temporary announcement[68](index=68&type=chunk) 2025 Annual Estimated and Actual Related Party Transactions | Related Party Transaction Category | Related Party | 2025 Estimated Amount (ten thousand yuan) | 2025 Semi-Annual Actual Amount (ten thousand yuan) | | :--- | :--- | :--- | :--- | | Leasing premises, materials, etc. from related parties | Tangshan Cultural Tourism Investment Group Co., Ltd. and its controlled subsidiaries | 200.00 | 94.64 | | Custom game development, design, information technology, and related services for related parties | Tangshan Cultural Tourism Investment Group Co., Ltd. and its controlled subsidiaries | 800.00 | 452.00 | - The company and its controlling shareholder, Tangshan Wenlv, jointly invested to establish Yixin Shuzhi Technology (Hebei) Co., Ltd., with the company planning to invest **12 million yuan** of its own funds, holding **60%** of the registered capital[72](index=72&type=chunk) - The company and its consolidated subsidiaries plan to apply for a loan not exceeding **50 million yuan** from the controlling shareholder, Tangshan Cultural Tourism Investment Group Co., Ltd[73](index=73&type=chunk) [Section VI Share Changes and Shareholder Information](index=26&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) [I. Changes in Share Capital](index=26&type=section&id=Changes%20in%20Share%20Capital) During the reporting period, there were no changes in the company's total share capital or share structure. - During the reporting period, there were no changes in the company's total share capital or share structure[75](index=75&type=chunk) [II. Shareholder Information](index=27&type=section&id=Shareholder%20Information) As of the end of the reporting period, the company had **17,458** common shareholders; among the top ten shareholders, Tangshan Cultural Tourism Investment Group Co., Ltd. is the controlling shareholder with a **17.35%** stake, and Zhou Zhenke and his concerted party, Shenzhen Dasheng Asset Management Co., Ltd., collectively hold company shares, though Zhou Zhenke and Dasheng Asset have waived a portion of their voting rights. - As of the end of the reporting period, the total number of common shareholders was **17,458**[76](index=76&type=chunk) Top Ten Shareholders' Shareholding as of the End of the Reporting Period | Shareholder Name | Period-End Shareholding (shares) | Percentage (%) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | | Tangshan Cultural Tourism Investment Group Co., Ltd. | 97,067,037 | 17.35 | None | 0 | | Zhou Zhenke | 44,306,083 | 7.92 | Pledged, Marked, Frozen | 35,000,000 (Pledged), 28,809,288 (Marked), 9,306,083 (Frozen) | | Xu Jinguang | 34,188,164 | 6.11 | Pledged, Frozen | 34,188,164 (Pledged), 17,094,082 (Frozen) | | Shenzhen Dasheng Asset Management Co., Ltd. | 24,502,752 | 4.38 | Pledged | 24,000,000 | - Zhou Zhenke and Dasheng Asset have unconditionally and irrevocably waived the voting rights corresponding to a total of **68,808,835 shares** (accounting for **12.30%** of the total share capital) of Dasheng Culture held by them[79](index=79&type=chunk) [Section VII Bond-Related Information](index=29&type=section&id=Section%20VII%20Bond-Related%20Information) [I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=29&type=section&id=Corporate%20Bonds%20(Including%20Enterprise%20Bonds)%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) During the reporting period, 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 or non-financial enterprise debt financing instruments[82](index=82&type=chunk) [II. Convertible Corporate Bonds](index=29&type=section&id=Convertible%20Corporate%20Bonds) During the reporting period, the company had no convertible corporate bonds. - During the reporting period, the company had no convertible corporate bonds[82](index=82&type=chunk) [Section VIII Financial Report](index=30&type=section&id=Section%20VIII%20Financial%20Report) [I. Audit Report](index=30&type=section&id=Audit%20Report) This semi-annual report has not been audited. - This semi-annual report is unaudited[84](index=84&type=chunk) [II. Financial Statements](index=30&type=section&id=Financial%20Statements) This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025; the consolidated statements show total assets of **393.36 million yuan**, total liabilities of **334.08 million yuan**, and owners' equity attributable to the parent company of **42.68 million yuan**, with consolidated operating revenue of **108.78 million yuan**, a net loss of **39.63 million yuan**, and net cash outflow from operating activities of **74.41 million yuan**; the parent company statements show total assets of **322 million yuan**, total liabilities of **232 million yuan**, and owners' equity of **90.47 million yuan**, with parent company operating revenue of **244,447.24 yuan**, a net loss of **40.77 million yuan**, and net cash outflow from operating activities of **7.91 million yuan**. Consolidated Balance Sheet (June 30, 2025) | Item | Amount (yuan) | | :--- | :--- | | Total Assets | 393,357,372.27 | | Total Liabilities | 334,081,735.20 | | Total Owners' Equity Attributable to Parent Company | 42,677,786.77 | | Minority Interests | 16,597,850.30 | | Total Owners' Equity | 59,275,637.07 | Consolidated Income Statement (January-June 2025) | Item | Amount (yuan) | | :--- | :--- | | Total Operating Revenue | 108,778,620.36 | | Total Operating Costs | 147,228,002.09 | | Total Profit | -39,313,525.98 | | Net Profit | -39,625,573.36 | | Net Profit Attributable to Parent Company Shareholders | -33,727,417.93 | | Minority Interest Income/Loss | -5,898,155.43 | Consolidated Cash Flow Statement (January-June 2025) | Item | Amount (yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -74,411,505.58 | | Net Cash Flow from Investing Activities | -904,569.58 | | Net Cash Flow from Financing Activities | 61,964,972.21 | | Net Increase in Cash and Cash Equivalents | -13,360,267.90 | Parent Company Income Statement (January-June 2025) | Item | Amount (yuan) | | :--- | :--- | | Operating Revenue | 244,447.24 | | Total Profit | -40,769,404.30 | | Net Profit | -40,769,404.30 | [III. Company Basic Information](index=49&type=section&id=Company%20Basic%20Information) The company, formerly "Shijiazhuang Quanyechang Co., Ltd.," underwent multiple name changes and equity transfers, eventually becoming "Dasheng Times Cultural Investment Co., Ltd." in 2016; on May 10, 2024, its controlling shareholder changed to Tangshan Wenlv, and its actual controller became Tangshan Municipal State-owned Assets Supervision and Administration Commission; the company's registered capital is **559.46 million yuan**, its legal representative is Cui Hongshan, and its main business scope includes investment and asset management, online game R&D and sales, and film and television cultural project investment, production, and distribution. - The company was formerly "Shijiazhuang Quanyechang Co., Ltd." and was listed on the Shanghai Stock Exchange in 1996[114](index=114&type=chunk) - On October 8, 2014, Dasheng Asset became the company's largest shareholder; after a non-public stock offering in 2015, Zhou Zhenke became the company's largest shareholder[115](index=115&type=chunk)[116](index=116&type=chunk) - Following the equity transfer on May 10, 2024, the company's controlling shareholder changed from Zhou Zhenke to Tangshan Wenlv, and the actual controller changed to Tangshan Municipal State-owned Assets Supervision and Administration Commission[121](index=121&type=chunk) - The company's registered capital is **559.46 million yuan**, and its legal representative is Cui Hongshan[121](index=121&type=chunk) - The company's business scope covers investment and asset management, metal ore sales, machinery and equipment leasing, import and export of goods, economic information consulting, film and television cultural project investment management, and online game research and development and operation[122](index=122&type=chunk) [IV. Basis for Preparation of Financial Statements](index=51&type=section&id=Basis%20for%20Preparation%20of%20Financial%20Statements) The company's financial statements are prepared on a going concern basis, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and relevant regulations, using the accrual basis of accounting, measuring assets at historical cost except for specific financial instruments, and making provisions for asset impairment; the company assesses its going concern ability as reasonable. - The company's financial statements are prepared on a going concern basis, in accordance with the "Enterprise Accounting Standards" and relevant regulations[125](index=125&type=chunk)[126](index=126&type=chunk) - Accounting is performed on an accrual basis, with historical cost as the measurement basis for all items except certain financial instruments[126](index=126&type=chunk) - The company assessed its ability to continue as a going concern for **12 months** from the end of the reporting period and found no issues affecting its going concern ability[127](index=127&type=chunk) [V. Significant Accounting Policies and Estimates](index=52&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) This section comprehensively details the company's adherence to enterprise accounting standards, accounting period, operating cycle, functional currency, materiality criteria, business combinations, consolidated financial statement preparation, joint arrangements, cash and cash equivalents, foreign currency transactions and translation, financial instruments, inventories, contract assets, assets held for sale, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, share-based payments, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases, which form the foundation of the company's financial reporting and ensure the accuracy and comparability of financial information. - The company adheres to enterprise accounting standards, accurately and completely reflecting its financial position, operating results, and other information[129](index=129&type=chunk) - The company classifies financial assets into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss for the current period[153](index=153&type=chunk) - The company's inventories are categorized into film/TV series inventories and non-film/TV series inventories, with film/TV series inventories including raw materials, work-in-progress, and finished goods, and detailed provisions for their valuation and cost transfer methods[166](index=166&type=chunk)[167](index=167&type=chunk)[169](index=169&type=chunk) - The company's revenue recognition principle is to recognize revenue when the customer obtains control of the related goods, with detailed explanations for specific recognition methods for sales of goods (film/TV series, online games) and service revenue[218](index=218&type=chunk)[222](index=222&type=chunk)[224](index=224&type=chunk) [VI. Taxation](index=82&type=section&id=Taxation) The company's main taxes include Value-Added Tax, Urban Maintenance and Construction Tax, and Enterprise Income Tax; Enterprise Income Tax rates vary based on the taxpayer and tax incentives, with subsidiaries like Horgos Zhonglian Chuandong Film and Television Culture Co., Ltd., Shenzhen Taole Network Technology Co., Ltd., and Shenzhen Yuexiang Network Technology Co., Ltd. enjoying a **15%** high-tech enterprise tax rate or Western Development preferential policies, while some eligible small and micro enterprise subsidiaries benefit from a **20%** tax rate. Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable income | 1%, 6% | | Urban Maintenance and Construction Tax | Actual turnover tax paid | 5%, 7% | | Enterprise Income Tax | Taxable income | 9%, 15%, 16.5%, 20%, 25% | Taxpayers with Different Enterprise Income Tax Rates | Taxpayer Name | Income Tax Rate (%) | | :--- | :--- | | Dasheng Times Cultural Investment Co., Ltd. | 25% | | Horgos Zhonglian Chuandong Film and Television Culture Co., Ltd. | 15.00% | | Beihai Wanwu Keai Technology Co., Ltd. | 9.00% | | Shenzhen Taole Network Technology Co., Ltd. | 15.00% | | Shenzhen Yuexiang Network Technology Co., Ltd. | 15.00% | | Planet International Co., Ltd. | 16.50% | | Subsidiaries eligible for small and micro enterprise tax relief policies | 20.00% | - Beihai Wanwu Keai Technology Co., Ltd. is subject to a **15%** enterprise income tax rate from January 1, 2023, to December 31, 2030, and is exempt from the local share of enterprise income tax for **five years** from April 1, 2023, to December 31, 2027[241](index=241&type=chunk) - Shenzhen Taole Network Technology Co., Ltd. and Shenzhen Yuexiang Network Technology Co., Ltd. are both recognized as national high-tech enterprises and are subject to a **15%** enterprise income tax rate[242](index=242&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=84&type=section&id=Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed disclosures of the period-end balances, beginning balances, and changes for each major item in the consolidated financial statements, including monetary funds, trading financial assets, accounts receivable, prepayments, other receivables, inventories, other current assets, right-of-use assets, intangible assets, goodwill, long-term deferred expenses, deferred income tax assets/liabilities, assets with restricted ownership or use rights, short-term borrowings, accounts payable, advances from customers, contract liabilities, employee benefits payable, taxes payable, other payables, non-current liabilities due within one year, other current liabilities, lease liabilities, provisions, deferred income, share capital, capital reserves, other comprehensive income, surplus reserves, undistributed profits, operating revenue and costs, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, fair value change gains, credit impairment losses, asset impairment losses, asset disposal gains, non-operating income, non-operating expenses, income tax expenses, cash flow statement items, and foreign currency monetary items; notably, inventories significantly increased due to higher film and television investments, accounts receivable and short-term borrowings also rose considerably, while goodwill impairment provisions remained unchanged. - The period-end balance of monetary funds is **43,898,773.73 yuan**, of which the total amount deposited overseas is **1,419,374.75 yuan**[245](index=245&type=chunk) - The period-end book value of accounts receivable is **34,047,189.10 yuan**, with a single provision for bad debts amounting to **71,989,825.86 yuan**[251](index=251&type=chunk) - The period-end book value of inventories is **71,974,085.79 yuan**, including an inventory depreciation reserve for finished goods of **103,033,590.94 yuan**[277](index=277&type=chunk)[279](index=279&type=chunk) - The period-end balance of short-term borrowings is **21,019,111.12 yuan**, primarily comprising guaranteed borrowings and credit borrowings[320](index=320&type=chunk) - The period-end balance of other payables is **155,770,066.79 yuan**, mainly consisting of intercompany borrowings and accrued expenses[336](index=336&type=chunk)[338](index=338&type=chunk) - Operating revenue for the current period amounted to **108,778,620.36 yuan**, and operating costs were **32,683,103.18 yuan**[357](index=357&type=chunk) - Net cash flow from operating activities was **-74,411,505.58 yuan**, net cash flow from investing activities was **-904,569.58 yuan**, and net cash flow from financing activities was **61,964,972.21 yuan**[391](index=391&type=chunk) [VIII. Research and Development Expenses](index=131&type=section&id=Research%20and%20Development%20Expenses) During the reporting period, the company's total R&D expenditure was **25,714,400.58 yuan**, all of which was expensed, with employee compensation being the largest component, followed by depreciation and other expenses. R&D Expenses by Nature of Expense | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Employee Compensation | 24,599,682.69 | 27,565,848.62 | | Lease Fees | 885.40 | | | Depreciation | 129,792.26 | 225,527.98 | | Office Expenses | 2,660.57 | | | Other | 981,379.66 | 974,695.84 | | Total | 25,714,400.58 | 28,766,072.44 | | Of which: Expensed R&D Expenditure | 25,714,400.58 | 28,766,072.44 | | Capitalized R&D Expenditure | | | - All R&D expenditure in the current period was expensed, with no capitalized R&D expenditure[397](index=397&type=chunk) [IX. Changes in Consolidation Scope](index=132&type=section&id=Changes%20in%20Consolidation%20Scope) During the reporting period, the company's consolidation scope changed through non-same-control business combinations and the establishment of new subsidiaries; specifically, its wholly-owned subsidiary Shenzhen Yuerong Investment Management Co., Ltd. acquired **100%** equity in Beijing Hongyou Culture Media Co., Ltd. and Wuhan Aoxing Technology Co., Ltd. for **0 yuan**, bringing them into the consolidation scope; additionally, the company established and consolidated several new subsidiaries, including Beijing Wanhe Ruisheng Culture Media Co., Ltd., Beijing Liuliang Qidian Media Technology Co., Ltd., Guangzhou Yimeng Culture Media Co., Ltd., Qingdao Guangying Haoxi Culture Media Co., Ltd., and Yixin Shuzhi Technology (Hebei) Co., Ltd. - The company's wholly-owned subsidiary, Shenzhen Yuerong Investment Management Co., Ltd., acquired **100%** equity in Beijing Hongyou Culture Media Co., Ltd. and Wuhan Aoxing Technology Co., Ltd. for **0 yuan**, bringing them into the consolidation scope[399](index=399&type=chunk) Non-Same-Control Business Combinations Occurring in the Current Period | Acquired Company Name | Acquisition Date | Acquisition Cost (yuan) | Acquisition Percentage (%) | Net Profit of Acquired Company from Acquisition Date to Period-End (yuan) | | :--- | :--- | :--- | :--- | :--- | | Beijing Hongyou Culture Media Co., Ltd. | February 2025 | 0 | 100 | -6,129,900.13 | | Wuhan Aoxing Technology Co., Ltd. | May 2025 | 0 | 100 | -171,257.83 | - During the reporting period, several new subsidiaries were established and included in the consolidation scope, including Beijing Wanhe Ruisheng Culture Media Co., Ltd., Beijing Liuliang Qidian Media Technology Co., Ltd., Guangzhou Yimeng Culture Media Co., Ltd., Qingdao Guangying Haoxi Culture Media Co., Ltd., and Yixin Shuzhi Technology (Hebei) Co., Ltd[402](index=402&type=chunk) [X. Interests in Other Entities](index=134&type=section&id=Interests%20in%20Other%20Entities) This section details the company's enterprise group structure, comprising multiple subsidiaries engaged in trade, online game R&D and operation, and film and television investment and production; Shenzhen Taole Network Technology Co., Ltd. is a significant non-wholly-owned subsidiary with a minority shareholder stake of **10.55%**, and its net loss attributable to minority shareholders for the current period was **-148,332.70 yuan**; its period-end current assets were **107 million yuan**, non-current assets **20.0754 million yuan**, total assets **127 million yuan**, current liabilities **41.558 million yuan**, non-current liabilities **3.2219 million yuan**, and total liabilities **44.78 million yuan**. - The company's enterprise group consists of multiple subsidiaries, with business activities spanning trade, online game research and development and operation, and film and television investment and production[404](index=404&type=chunk)[405](index=405&type=chunk)[406](index=406&type=chunk) - Shenzhen Taole Network Technology Co., Ltd. is a significant non-wholly-owned subsidiary, with minority shareholders holding **10.55%** equity, and the net loss attributable to minority shareholders for the current period was **-148,332.70 yuan**[408](index=408&type=chunk) Key Financial Information of Significant Non-Wholly-Owned Subsidiary Shenzhen Taole Network Technology Co., Ltd. (June 30, 2025) | Item | Period-End Balance (yuan) | | :--- | :--- | | Current Assets | 106,912,467.00 | | Non-Current Assets | 20,075,354.33 | | Total Assets | 126,987,821.33 | | Current Liabilities | 41,558,021.44 | | Non-Current Liabilities | 3,221,937.13 | | Total Liabilities | 44,779,958.57 | Key Financial Information of Significant Non-Wholly-Owned Subsidiary Shenzhen Taole Network Technology Co., Ltd. for the Current Period (January-June 2025) | Item | Current Period Amount (yuan) | | :--- | :--- | | Operating Revenue | 72,904,803.96 | | Net Profit | -525,351.14 | | Total Comprehensive Income | -525,351.14 | | Cash Flow from Operating Activities | -7,389,603.64 | [XI. Government Grants](index=139&type=section&id=Government%20Grants) As of the end of the reporting period, the company's deferred income from government grants totaled **2.11 million yuan**, primarily for the "Peach Blossom Spring" international brand cultivation and promotion project and the "100 Years of Chinese Animation" documentary subsidy; government grants recognized in current profit or loss amounted to **11,951.04 yuan**, mainly for income-related stable employment subsidies. Liability Items Involving Government Grants (June 30, 2025) | Financial Statement Item | Beginning Balance (yuan) | Period-End Balance (yuan) | | :--- | :--- | :--- | | Deferred Income | 2,109,770.00 | 2,109,770.00 | - Government grants within deferred income primarily include development special funds for the "Peach Blossom Spring" international brand cultivation and promotion project and subsidy funds for the "100 Years of Chinese Animation" documentary[344](index=344&type=chunk)[345](index=345&type=chunk) Government Grants Recognized in Current Profit or Loss (January-June 2025) | Type | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Income-related | 11,951.04 | 2,371,408.01 | | Total | 11,951.04 | 2,371,408.01 | [XII. Risks Related to Financial Instruments](index=140&type=section&id=Risks%20Related%20to%20Financial%20Instruments) The company faces credit risk, liquidity risk, and market risk; credit risk primarily arises from monetary funds, notes receivable, and accounts receivable, which the company controls by assessing customer creditworthiness and regularly monitoring credit records; liquidity risk is managed by regularly monitoring short-term and long-term liquidity needs; market risk includes foreign exchange risk and interest rate risk, with interest rate risk managed by maintaining fixed-rate borrowings; as of June 30, 2025, the company's undiscounted remaining contractual obligations for financial liabilities are mainly concentrated within one year. - The company's main financial instruments include equity investments, borrowings, accounts receivable, accounts payable, and other payables, exposing it to credit risk, liquidity risk, and market risk[416](index=416&type=chunk) - Credit risk is controlled by assessing customer creditworthiness, the possibility of obtaining third-party guarantees, credit history, and market conditions[417](index=417&type=chunk) - Liquidity risk is managed by regularly monitoring short-term and long-term liquidity needs and borrowing agreements[422](index=422&type=chunk) Analysis of Undiscounted Remaining Contractual Obligations of Financial Liabilities by Maturity (June 30, 2025) | Item | Within 1 Year (yuan) | 1-2 Years (yuan) | 2-3 Years (yuan) | Over 3 Years (yuan) | | :--- | :--- | :--- | :--- | :--- | | Short-Term Borrowings | 21,019,111.12 | | | | | Accounts Payable | 25,877,535.69 | 554,054.00 | 28,406.00 | 45,874,470.17 | | Other Payables | 154,043,305.98 | 842,606.20 | 50,000.00 | 834,154.61 | | Non-Current Liabilities Due Within 1 Year | 3,849,257.62 | | | | | Lease Liabilities | | 2,421,730.28 | 1,285,762.66 | | | Total | 204,789,210.41 | 3,818,390.48 | 1,364,168.66 | 46,708,624.78 | [XIII. Disclosure of Fair Value](index=143&type=section&id=Disclosure%20of%20Fair%20Value) The company's assets measured at fair value primarily consist of equity instrument investments within trading financial assets, with a period-end fair value of **660,031.82 yuan**, classified as Level 1 fair value measurement and determined using active market quotations; for financial assets and liabilities not measured at fair value, such as monetary funds, accounts receivable, and short-term borrowings, their carrying amounts are close to their fair values due to short remaining maturities. Period-End Fair Value of Assets and Liabilities Measured at Fair Value (June 30, 2025) | Item | Level 1 Fair Value Measurement (yuan) | Level 2 Fair Value Measurement (yuan) | Level 3 Fair Value Measurement (yuan) | Total (yuan) | | :--- | :--- | :--- | :--- | :--- | | (I) Trading Financial Assets | 660,031.82 | | | 660,031.82 | | 1. Financial assets measured at fair value with changes recognized in current profit or loss | 660,031.82 | | | 660,031.82 | | (2) Equity instrument investments | 660,031.82 | | | 660,031.82 | | Total assets continuously measured at fair value | 660,031.82 | | | 660,031.82 | - The market price for Level 1 fair value measurement items is the closing price at the end of the year in active markets such as stock exchanges[430](index=430&type=chunk) - For financial assets and liabilities not measured at fair value, such as monetary funds, accounts receivable, and short-term borrowings, their carrying amounts are close to their fair values due to their short remaining maturities[434](index=434&type=chunk) [XIV. Related Parties and Related Party Transactions](index=145&type=section&id=Related%20Parties%20and%20Related%20Party%20Transactions) The company's controlling shareholder is Tangshan Cultural Tourism Investment Group Co., Ltd., with the ultimate controlling party being Tangshan Municipal People's Government State-owned Assets Supervision and Administration Commission; during the reporting period, the company, as the guaranteed party, received **11 million yuan** in guarantees from Tangshan Investment Holding Group Co., Ltd. and Shenzhen Yuexiang Network Technology Co., Ltd.; the company also engaged in intercompany borrowing with its controlling shareholder, Tangshan Cultural Tourism Investment Group Co., Ltd., with actual borrowed funds totaling **120 million yuan** as of the end of the current period; additionally, the company has outstanding unsettled items with related parties, including accounts receivable, other payables, and contract liabilities. - The company's controlling shareholder is Tangshan Cultural Tourism Investment Group Co., Ltd., and the ultimate controlling party is Tangshan Municipal People's Government State-owned Assets Supervision and Administration Commission[436](index=436&type=chunk) Related Party Guarantees (Company as Guaranteed Party) | Guarantor | Guaranteed Amount (yuan) | Guarantee Start Date | Guarantee End Date | Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Tangshan Investment Holding Group Co., Ltd. | 11,000,000 | 2025-3-10 | 2029-3-9 | No | | Shenzhen Yuexiang Network Technology Co., Ltd. | 11,000,000 | 2025-3-10 | 2029-3-9 | No | - The company signed two loan agreements, each with a maximum limit of **60 million yuan**, with its parent company, Tangshan Cultural Tourism Investment Group

[Section I Important Notes, Table of Contents, and Definitions](index=2&type=section&id=Section%20I%20Important%20Notes%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides crucial preliminary information, including the report's structure and key terminology, ensuring clarity and compliance [Important Notes](index=2&type=section&id=Important%20Notes) Board, supervisory board, and senior management guarantee report accuracy; no cash dividends, bonus shares, or capital reserve conversions planned - Company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, with no false records, misleading statements, or major omissions[4](index=4&type=chunk) - The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital for the semi-annual period[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) Lists the report's nine main chapters and their starting page numbers, providing an overall structural overview [Directory of Documents for Reference](index=4&type=section&id=Directory%20of%20Documents%20for%20Reference) Discloses types and locations of reference documents, including financial statements and public announcements, available at the securities department - Documents for reference include original financial statements signed and sealed by the company's head, chief accountant, and head of accounting department; original 2025 semi-annual report and abstract signed by the legal representative and sealed by the company; and originals of all company documents and announcements publicly disclosed on the information disclosure platform designated by the CSRC during the reporting period[8](index=8&type=chunk) - These documents are available at the company's securities department[9](index=9&type=chunk) [Definitions](index=5&type=section&id=Definitions) Defines common terms used in the report, including company abbreviations, subsidiaries, and regulatory bodies, for clarity [Section II Company Profile and Key Financial Indicators](index=6&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section presents the company's fundamental information and a summary of its financial performance [Company Profile](index=6&type=section&id=Company%20Profile) Introduces the company's stock information, listing exchange, and legal representative, providing a basic overview for investors - Company stock abbreviation: **Fangzheng Motor**, stock code: **002196**, listed on: **Shenzhen Stock Exchange**[12](index=12&type=chunk) - Legal representative: **Weng Weiwen**[12](index=12&type=chunk) [Contact Persons and Information](index=6&type=section&id=Contact%20Persons%20and%20Information) Discloses contact details for the board secretary and securities affairs representative, facilitating investor communication - Board Secretary: Huang Chengwei, Securities Affairs Representative: Shu Linyan, contact address for both: No. 626 Cheng Street, Nanmingshan Sub-district, Liandu District, Lishui City, Zhejiang Province[13](index=13&type=chunk) [Other Information](index=6&type=section&id=Other%20Information) States no changes in company's registered address, website, email, or information disclosure locations, as detailed in the 2024 annual report - Company's registered address, office address and postal code, website, email, etc., remained unchanged during the reporting period, as detailed in the 2024 annual report[14](index=14&type=chunk) - The securities exchange website and media name and URL for the company's semi-annual report disclosure, and the location for the semi-annual report, remained unchanged during the reporting period, as detailed in the 2024 annual report[15](index=15&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) Operating revenue increased by 8.51%, but net profit attributable to shareholders significantly decreased by 951.93%, indicating profitability and cash flow pressure Key Accounting Data and Financial Indicators Comparison | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,264,932,580.58 | 1,165,683,946.97 | **8.51%** | | Net Profit Attributable to Shareholders | -7,196,216.60 | 844,693.87 | **-951.93%** | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | -12,335,814.10 | -2,776,521.16 | **-344.29%** | | Net Cash Flow from Operating Activities | -41,923,155.56 | 116,531,926.50 | **-135.98%** | | Basic Earnings Per Share (RMB/share) | -0.0145 | 0.0017 | **-952.94%** | | Diluted Earnings Per Share (RMB/share) | -0.0145 | 0.0017 | **-952.94%** | | Weighted Average Return on Net Assets | -0.52% | 0.06% | **-0.58%** | | **End of Current Reporting Period (RMB)** | **End of Prior Year (RMB)** | **Change from Prior Year End** | | Total Assets | 4,168,522,300.66 | 4,123,034,534.42 | **1.10%** | | Net Assets Attributable to Shareholders | 1,394,263,144.06 | 1,404,107,025.64 | **-0.70%** | [Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=7&type=section&id=Differences%20in%20Accounting%20Data%20under%20Domestic%20and%20Overseas%20Accounting%20Standards) No differences in net profit and net assets between financial reports under international/overseas and Chinese accounting standards - No differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[18](index=18&type=chunk) - No differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[19](index=19&type=chunk) [Non-Recurring Gains and Losses and Amounts](index=7&type=section&id=Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) Total non-recurring gains and losses were RMB 5.14 million, mainly from government grants and fair value changes, with some VAT refunds classified as recurring Non-Recurring Gains and Losses and Amounts | Item | Amount (RMB) | | :--- | :--- | | Disposal gains/losses of non-current assets | -1,385,669.66 | | Government grants recognized in current profit/loss | 6,180,420.72 | | Gains/losses from fair value changes and disposal of financial assets and liabilities | 368,921.66 | | Gains/losses from entrusted investments or asset management | 40,492.15 | | Other non-operating income and expenses apart from the above | 147,889.99 | | Less: Income tax impact | 212,457.36 | | **Total** | **5,139,597.50** | - VAT input tax credit (**RMB 6,997,047.57**) and VAT over-tax refund (**RMB 913,186.55**) are classified as recurring gains/losses, as they are closely related to the company's normal operations, comply with relevant national industrial policies, and have a continuous impact on the company's profit and loss[22](index=22&type=chunk) [Section III Management Discussion and Analysis](index=9&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's operations, financial condition, and future outlook [Company's Main Businesses During the Reporting Period](index=9&type=section&id=Company%27s%20Main%20Businesses%20During%20the%20Reporting%20Period) Company develops new energy drive motors, intelligent controllers, micro motors, and automotive electronics, with strong growth and new ventures in robotics and electric aircraft - New energy drive motor business shipped **463,600 units**, with cumulative shipments of **3.5636 million units**, applied in over 40 vehicle models, and continuous R&D investment in 800V high-voltage motors, flat wire motors, and oil-cooled motors[24](index=24&type=chunk) - Intelligent controller business saw increased sales volume, with operating revenue up **46.58%** year-on-year, but gross margin decreased by **8.68%** due to market competition and product structure changes, leading to an overall profit decline of **126.99%**[26](index=26&type=chunk) - Micro motor business operating revenue grew by **9.11%**, with overall profit increasing by **20.47%**, and electric tool motor business has entered the supply chains of international clients like TTI and Black & Decker[28](index=28&type=chunk) - Automotive electronics business revenue grew by **57.01%** due to mass production of National VI natural gas engine control systems, achieving new project breakthroughs in drone, hydrogen engine, and methanol engine control systems[30](index=30&type=chunk) - The company is actively developing robot joint and electric aircraft drive system businesses, with humanoid robot joint products and clients under development, and has secured a development project for an electric aircraft drive system from a client[31](index=31&type=chunk) [Analysis of Core Competencies](index=10&type=section&id=Analysis%20of%20Core%20Competencies) Company leverages "technology-first" in R&D, market share, manufacturing, and supply chain, leading in sewing machine motors and new energy drive motors - Company continuously increases R&D investment, obtaining **56 authorized patents** from January to June 2025, including **5 software copyrights, 1 international patent, 6 invention patents, and 42 utility model patents**, providing comprehensive technical support for business development[32](index=32&type=chunk)[33](index=33&type=chunk) - Company holds leading market positions in several niche segments, with approximately **75% global market share** in multi-functional household sewing machine motors, new energy drive motor shipments ranking among the top for consecutive years, and being the only independent brand in China to self-develop and mass-produce diesel, natural gas engine, and exhaust after-treatment controllers[34](index=34&type=chunk) - Company has obtained IATF16949 and other four major system certifications, with SAP and MES systems online enabling product traceability, new energy drive motor production equipment reaching domestic leading levels, and Lishui Power Valley recognized as a "Future Factory" in Zhejiang Province[35](index=35&type=chunk) - Company consolidates supply chain advantages by centralized procurement of common raw materials, introducing high-quality suppliers to the industrial park, and strategic cooperation with core component suppliers, effectively reducing procurement, logistics, and warehousing costs[36](index=36&type=chunk) [Analysis of Main Business](index=11&type=section&id=Analysis%20of%20Main%20Business) Operating revenue grew by 8.51% due to intelligent controllers and micro motors, but rising costs, especially in intelligent controllers, pressured profits Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,264,932,580.58 | 1,165,683,946.97 | **8.51%** | Growth in intelligent controller and micro motor sales revenue | | Operating Cost | 1,105,718,942.41 | 1,003,044,770.65 | **10.24%** | Growth in intelligent controller and micro motor sales revenue | | Administrative Expenses | 66,734,940.29 | 60,471,963.46 | **10.36%** | Increase in employee compensation this period | | Financial Expenses | 13,249,164.10 | 15,896,417.65 | **-16.65%** | Lower bank loan interest rates this period compared to prior period | | Income Tax Expense | 281,951.41 | 2,223,363.12 | **-87.32%** | Decrease in corporate income tax provision due to lower profit this period | | R&D Investment | 89,818,493.08 | 82,506,975.94 | **8.86%** | Increase in R&D personnel salaries this period | | Net Cash Flow from Operating Activities | -41,923,155.56 | 116,531,926.50 | **-135.98%** | Increase in material procurement payments this period | | Net Cash Flow from Financing Activities | 107,339,243.28 | -54,960,290.06 | **295.30%** | Increase in project loans this period | Operating Revenue Composition (by Product) | By Product | Current Reporting Period Amount (RMB) | Proportion of Operating Revenue | Prior Year Period Amount (RMB) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Drive Motors and Automotive Electronics | 599,903,376.29 | **47.43%** | 621,676,598.97 | 53.34% | **-3.50%** | | Intelligent Controllers | 433,515,240.77 | **34.27%** | 295,754,595.46 | 25.37% | **46.58%** | | Micro Motors | 202,630,806.24 | **16.02%** | 185,719,654.86 | 15.93% | **9.11%** | Year-on-Year Changes in Gross Margin of Main Products | By Product | Gross Margin | Change in Gross Margin from Prior Year Period | | :--- | :--- | :--- | | Drive Motors and Automotive Electronics | **12.12%** | **1.32%** | | Intelligent Controllers | **10.81%** | **-8.68%** | | Micro Motors | **15.85%** | **-0.16%** | [Analysis of Non-Main Business](index=13&type=section&id=Analysis%20of%20Non-Main%20Business) No non-main business analysis during the reporting period - No non-main business analysis during the reporting period[44](index=44&type=chunk) [Analysis of Assets and Liabilities](index=13&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) Total assets grew slightly, but monetary funds decreased, while inventories, receivables, and borrowings increased; significant assets are restricted Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (RMB) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 330,539,341.63 | **7.93%** | **-1.93%** | Decrease in time deposits and increase in payments this period | | Accounts Receivable | 833,849,448.08 | **20.00%** | **0.14%** | Increase in sales revenue this period, leading to higher accounts receivable | | Inventories | 387,097,400.84 | **9.29%** | **1.44%** | Increase in inventories due to mass production of new projects this period | | Fixed Assets | 994,666,911.23 | **23.86%** | **0.60%** | Construction in progress transferred to fixed assets this period | | Construction in Progress | 504,513,918.44 | **12.10%** | **-1.16%** | Construction in progress transferred to fixed assets this period | | Contract Liabilities | 31,856,661.90 | **0.76%** | **0.55%** | Increase in advance receipts this period | | Long-term Borrowings | 659,867,846.85 | **15.83%** | **2.38%** | Increase in loans due to project construction needs this period | Profitability of Major Overseas Assets | Specific Asset | Location | Net Profit for Jan-Jun 2025 (RMB 10,000) | Proportion of Overseas Assets to Company's Net Assets | | :--- | :--- | :--- | :--- | | Wholly-owned Grandson Company--Fangzheng Vietnam Co. | Vietnam | **1,373.26** | **10.42%** | | Wholly-owned Grandson Company--Fangde Vietnam Co. | Vietnam | **818.25** | **7.42%** | | Wholly-owned Grandson Company--Gaokerun Vietnam Co. | Vietnam | **-481.35** | **3.70%** | - As of the end of the reporting period, the company's restricted assets totaled **RMB 1,119,870,975.88**, primarily including monetary funds, notes receivable, accounts receivable financing, investment properties, fixed assets, and intangible assets, used for pledge or mortgage loans and issuing bank acceptance bills[49](index=49&type=chunk) [Analysis of Investment Status](index=16&type=section&id=Analysis%20of%20Investment%20Status) No significant equity, non-equity, securities, or derivative investments, nor use of raised funds during the reporting period - No securities investments during the reporting period[52](index=52&type=chunk) - No derivative investments during the reporting period[53](index=53&type=chunk) - No use of raised funds during the reporting period[54](index=54&type=chunk) [Major Asset and Equity Sales](index=17&type=section&id=Major%20Asset%20and%20Equity%20Sales) No major asset or equity sales during the reporting period - No major asset sales during the reporting period[55](index=55&type=chunk) - No major equity sales during the reporting period[56](index=56&type=chunk) [Analysis of Major Holding and Participating Companies](index=17&type=section&id=Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) Discloses financial data for major subsidiaries and associates, including Shenzhen Gaokerun and Vietnamese entities, showing generally good performance Financial Data of Major Holding and Participating Companies (Unit: RMB 10,000) | Company Name | Company Type | Main Business | Registered Capital (RMB 10,000) | Total Assets (RMB 10,000) | Net Assets (RMB 10,000) | Operating Revenue (RMB 10,000) | Operating Profit (RMB 10,000) | Net Profit (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shenzhen Gaokerun Electronics Co., Ltd. | Subsidiary | Production and development of computer software, electronic products, etc. | 3,000 | **63,535.97** | **32,125.04** | **34,099.56** | **344.58** | **341.66** | | Fangzheng Motor (Vietnam) Co., Ltd. | Subsidiary | Household sewing machine motors, industrial automatic sewing machines, etc. | 800 USD | **14,528.69** | **11,406.45** | **9,212.80** | **1,415.56** | **1,373.26** | | Fangde Electromechanical (Vietnam) Technology Co., Ltd. | Subsidiary | Production and sales of electric tool motors and components, etc. | 800 USD | **10,343.21** | **5,043.64** | **2,533.08** | **818.25** | **818.25** | | Shanghai Haineng Automotive Electronics Co., Ltd. | Subsidiary | Engaged in various ECU controllers, gas system modules, etc. | 6,300 | **20,711.30** | **16,735.34** | **19,808.77** | **736.05** | **761.81** | | Yanfeng Adient Fangde Motor Co., Ltd. | Participating Company | Design, development, production, and sales of micro motors and related components | 10,000 | **115,187.47** | **15,733.85** | **82,913.59** | **4,371.55** | **3,683.95** | [Structured Entities Controlled by the Company](index=19&type=section&id=Structured%20Entities%20Controlled%20by%20the%20Company) No structured entities controlled by the company during the reporting period - No structured entities controlled by the company during the reporting period[60](index=60&type=chunk) [Risks Faced by the Company and Countermeasures](index=20&type=section&id=Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) Company faces global economic, policy, capacity, raw material, technology, management, financial, and goodwill impairment risks, with mitigation strategies in place - Global economic environment risk: Instability in international situations may lead to a decline in overseas market orders for the company's micro motors and intelligent controllers[61](index=61&type=chunk) - Policy risk: Changes in new energy vehicle industry policies may adversely affect the company's production and operations, as the government adopts a phased subsidy reduction mechanism for new energy vehicles[62](index=62&type=chunk) - Risk of capacity utilization falling short of expectations: Significant adverse changes in market environment, competitor strategies, relevant policies, or the company's market expansion and technological iteration could lead to new production capacity from investment projects not being absorbed in a timely manner[63](index=63&type=chunk) - Raw material price fluctuation risk: Price fluctuations of key raw materials like silicon steel sheets and enameled wire directly impact the company's profitability; the company will seek to establish a price linkage mechanism with customers for major raw materials and increase technological development to optimize material usage[64](index=64&type=chunk) - Risk of goodwill impairment provision: As of the end of June 2025, the company still has net goodwill of approximately **RMB 63 million**, mainly formed from the acquisition of Shenzhen Gaokerun; if future operating conditions fall short of expectations, the company faces the risk of further goodwill impairment provisions[68](index=68&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=21&type=section&id=Formulation%20and%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) No market value management system or valuation enhancement plan has been formulated or disclosed - Company has not formulated a market value management system[69](index=69&type=chunk) - Company has not disclosed a valuation enhancement plan[69](index=69&type=chunk) [Implementation of “Quality and Return Dual Enhancement” Action Plan](index=21&type=section&id=Implementation%20of%20%E2%80%9CQuality%20and%20Return%20Dual%20Enhancement%E2%80%9D%20Action%20Plan) No announcement regarding the "Quality and Return Dual Enhancement" action plan has been disclosed - Company has not disclosed an announcement regarding the "Quality and Return Dual Enhancement" action plan[69](index=69&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=22&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section covers the company's governance structure, environmental practices, and social responsibility initiatives [Changes in Company Directors, Supervisors, and Senior Management](index=22&type=section&id=Changes%20in%20Company%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) Multiple changes in directors, supervisors, and senior management occurred due to elections, personal reasons, or term expirations Changes in Company Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Li Jintao | Chairman of the Supervisory Board | Elected | May 07, 2025 | Term expiration | | Chen Haili | Director | Resigned | July 23, 2025 | Personal reasons | | Wan Fang | Supervisory Board Member | Resigned | April 16, 2025 | Personal reasons | | Guan Rui | Director | Resigned | April 16, 2025 | Personal reasons | | Cao Yi | Chief Engineer | Resigned | January 24, 2025 | Personal reasons | [Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period](index=22&type=section&id=Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20in%20This%20Reporting%20Period) No cash dividends, bonus shares, or capital reserve conversions for share capital increase are planned for the semi-annual period - Company plans no cash dividends, no bonus shares, and no capital reserve conversions for share capital increase for the semi-annual period[72](index=72&type=chunk) [Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=22&type=section&id=Implementation%20of%20Company%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) No equity incentive plans, employee stock ownership plans, or other employee incentive measures were implemented - No equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[73](index=73&type=chunk) [Environmental Information Disclosure](index=22&type=section&id=Environmental%20Information%20Disclosure) Company and its major subsidiary are listed as enterprises required to disclose environmental information by law - The listed company and its major subsidiary, Zhejiang Fangzheng (Hubei) Automotive Components Co., Ltd., are included in the list of enterprises required to disclose environmental information by law[74](index=74&type=chunk) [Social Responsibility](index=22&type=section&id=Social%20Responsibility) Company safeguards stakeholders' rights, ensures information disclosure, provides equal opportunities, offers quality products, and prioritizes environmental protection - Company strictly adheres to the "Articles of Association" and "Rules of Procedure for Shareholders' Meetings" to regulate the convening, holding, and voting of shareholders' meetings, ensuring shareholders' rights to information, participation, and voting on major company matters; diligently fulfills information disclosure obligations, treating all investors fairly, justly, and openly[75](index=75&type=chunk) - Company highly values the legitimate rights and interests of creditors, strictly complies with relevant contracts and systems, and promptly informs creditors of major information related to their interests[76](index=76&type=chunk) - Company adheres to a people-oriented approach, focusing on planning employee career development, providing equal development opportunities, and respecting and safeguarding employees' personal interests[76](index=76&type=chunk) - Company adheres to the principle of "serving customers, keeping promises," providing high-quality products; strengthening communication and cooperation with suppliers for mutual benefit; strictly controlling product quality, focusing on product safety, and protecting consumer interests[76](index=76&type=chunk) [Section V Significant Matters](index=24&type=section&id=Section%20V%20Significant%20Matters) This section details all significant events and commitments impacting the company during the reporting period [Commitments Fulfilled and Overdue Unfulfilled by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period](index=24&type=section&id=Commitments%20Fulfilled%20and%20Overdue%20Unfulfilled%20by%20Actual%20Controller%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20During%20and%20as%20of%20the%20End%20of%20the%20Reporting%20Period) Commitments by Excellent Auto (share lock-up, voting rights) and the company (dividends) are being fulfilled normally, with no overdue items - Excellent Auto Co., Ltd. committed that within five years from September 5, 2024, the cumulative self-transferred shares shall not exceed **30%** of its total holdings; if further reductions occur, the cumulative transferred shares shall not exceed **50%**, and Zhiju Technology shall have a priority acquisition right for the portion exceeding **30%**[78](index=78&type=chunk) - Excellent Auto Co., Ltd. entrusted all voting rights and nomination/proposal rights associated with its shares to Zhiju Technology[78](index=78&type=chunk) - The company committed that, provided distributable profit is positive and the audit report is an unqualified opinion, the annual cash dividend distribution shall not be less than **10%** of the distributable profit for that year, and the cumulative distributed profit over three consecutive years shall not be less than **30%** of the average annual distributable profit for those three years[78](index=78&type=chunk)[79](index=79&type=chunk) [Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties from the Listed Company](index=26&type=section&id=Non-Operating%20Funds%20Occupied%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties%20from%20the%20Listed%20Company) No non-operating funds were occupied by controlling shareholders or other related parties from the listed company - No non-operating funds occupied by controlling shareholders and other related parties from the listed company during the reporting period[80](index=80&type=chunk) [Irregular External Guarantees](index=26&type=section&id=Irregular%20External%20Guarantees) No irregular external guarantees during the reporting period - No irregular external guarantees during the reporting period[81](index=81&type=chunk) [Appointment and Dismissal of Accounting Firms](index=26&type=section&id=Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual report was not audited - Company's semi-annual report was not audited[82](index=82&type=chunk) [Explanation by the Board of Directors and Supervisory Board on the “Non-Standard Audit Report” for This Reporting Period](index=26&type=section&id=Explanation%20by%20the%20Board%20of%20Directors%20and%20Supervisory%20Board%20on%20the%20%E2%80%9CNon-Standard%20Audit%20Report%E2%80%9D%20for%20This%20Reporting%20Period) Not applicable, as the semi-annual report was not audited [Explanation by the Board of Directors on the “Non-Standard Audit Report” for the Prior Year](index=26&type=section&id=Explanation%20by%20the%20Board%20of%20Directors%20on%20the%20%E2%80%9CNon-Standard%20Audit%20Report%E2%80%9D%20for%20the%20Prior%20Year) Not applicable [Bankruptcy and Reorganization Matters](index=26&type=section&id=Bankruptcy%20and%20Reorganization%20Matters) No bankruptcy and reorganization matters occurred during the reporting period - No bankruptcy and reorganization matters occurred during the reporting period[83](index=83&type=chunk) [Litigation Matters](index=26&type=section&id=Litigation%20Matters) No significant litigation or arbitration matters during the reporting period - No significant litigation or arbitration matters for the company during this reporting period[84](index=84&type=chunk) [Penalties and Rectification](index=26&type=section&id=Penalties%20and%20Rectification) No penalties or rectification situations during the reporting period - No penalties or rectification situations for the company during the reporting period[84](index=84&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=27&type=section&id=Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) Not applicable [Significant Related Party Transactions](index=27&type=section&id=Significant%20Related%20Party%20Transactions) Daily operational related party transactions totaled RMB 42.56 million; no other significant related party transactions occurred Daily Related Party Transactions (Unit: RMB 10,000) | Related Party | Type of Related Transaction | Content of Related Transaction | Amount of Related Transaction (RMB 10,000) | Proportion of Similar Transactions | Approved Transaction Limit (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Lishui Jinzheng Motor Technology Co., Ltd. | Purchase of goods | Stamped parts, molds | **1,157.49** | **8.17%** | 3,000 | | Lishui Ruicheng Human Resources Co., Ltd. | Acceptance of services | Acceptance of services | **354.17** | **11.43%** | 800 | | Huzhou Moganshan High-tech New Energy Development Co., Ltd. | Purchase of goods | Utilities (water, electricity) | **62.07** | **11.52%** | - | | Shanghai Runyang Chengtai New Composite Materials Co., Ltd. | Purchase of goods | Utilities (water, electricity) | **35.39** | **6.57%** | 100 | | Shanghai Runyang Chengtai New Composite Materials Co., Ltd. | Lease-in assets | Lease-in factory building | **237.10** | **11.89%** | 500 | | Deqing Hengfeng Construction Development Co., Ltd. | Lease-in assets | Lease-in factory building | **74.66** | **3.74%** | 300 | | Yanfeng Adient Fangde Motor Co., Ltd. | Sale of goods | Intelligent controllers | **207.28** | **0.48%** | 600 | | Yanfeng Adient Fangde Motor Co., Ltd. | Sale of goods | Sale of micro motors | **2,111.60** | **53.83%** | 4,000 | | **Total** | **--** | **--** | **4,256.02** | **--** | **9,365** | - No related party transactions involving asset or equity acquisition/disposal during the reporting period[88](index=88&type=chunk) - No related party transactions involving joint external investments during the reporting period[89](index=89&type=chunk) - No related party creditor-debtor relationships during the reporting period[91](index=91&type=chunk) [Significant Contracts and Their Performance](index=29&type=section&id=Significant%20Contracts%20and%20Their%20Performance) No entrustment, contracting, or leasing matters; significant guarantees for subsidiaries totaled RMB 1,054.36 million, with 75.62% of net assets - No entrustment situations during the reporting period[95](index=95&type=chunk) - No contracting situations during the reporting period[96](index=96&type=chunk) - No leasing situations during the reporting period[97](index=97&type=chunk) Company's Total Guarantee Situation (Unit: RMB 10,000) | Indicator | Amount (RMB 10,000) | | :--- | :--- | | Total approved guarantee limit during reporting period | **260,000** | | Total actual guarantee amount incurred during reporting period | **42,033** | | Total approved guarantee limit at end of reporting period | **260,000** | | Total actual guarantee balance at end of reporting period | **105,436** | | Proportion of total actual guarantee to company's net assets | **75.62%** | | Debt guarantee balance provided directly or indirectly for guaranteed entities with asset-liability ratio exceeding 70% | **62,245** | | Amount of total guarantee exceeding 50% of net assets | **35,723** | [Explanation of Other Significant Matters](index=32&type=section&id=Explanation%20of%20Other%20Significant%20Matters) No other significant matters requiring explanation during the reporting period - No other significant matters requiring explanation during the reporting period[104](index=104&type=chunk) [Significant Matters of Company Subsidiaries](index=32&type=section&id=Significant%20Matters%20of%20Company%20Subsidiaries) Not applicable [Section VI Share Changes and Shareholder Information](index=33&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section outlines changes in the company's share capital and provides details on its shareholder structure [Share Change Situation](index=33&type=section&id=Share%20Change%20Situation) Restricted shares decreased, unrestricted shares increased, and total shares reduced to 495,871,930 due to repurchase and cancellation of 1,798,000 restricted shares Share Change Situation (Unit: Shares) | Share Type | Quantity Before This Change | Increase/Decrease in This Change | Quantity After This Change | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 10,308,286 | **-2,721,763** | 7,586,523 | | II. Unrestricted Shares | 487,361,644 | **923,763** | 488,285,407 | | III. Total Shares | 497,669,930 | **-1,798,000** | 495,871,930 | - The reason for share change was the company's completion of repurchase and cancellation of **1,798,000 restricted shares** on January 18, 2025, accounting for **5.85%** of the total restricted shares granted under the 2021 Restricted Stock Incentive Plan[109](index=109&type=chunk) [Securities Issuance and Listing](index=34&type=section&id=Securities%20Issuance%20and%20Listing) Not applicable [Number of Shareholders and Shareholding Status](index=34&type=section&id=Number%20of%20Shareholders%20and%20Shareholding%20Status) Total common shareholders were 73,484; largest shareholder controls 12.09% voting rights, with some major shareholders having pledged shares - Total number of common shareholders at the end of the reporting period: **73,484** households[110](index=110&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) | Number of Pledged, Marked, or Frozen Shares (Shares) | | :--- | :--- | :--- | :--- | :--- | | Huzhou Zhiju Technology Industry Development Co., Ltd. | State-owned legal person | **9.07%** | **45,000,000** | 0 | | Zhang Min | Domestic natural person | **5.33%** | **26,425,997** | **26,072,632** (Pledged) | | Su Ming | Domestic natural person | **3.29%** | **16,318,300** | 0 | | Excellent Auto Co., Ltd. | Domestic non-state-owned legal person | **3.02%** | **15,000,000** | **15,000,000** (Pledged) | | Xu Kaitong | Domestic natural person | **1.71%** | **8,480,100** | 0 | | Weng Weiwen | Domestic natural person | **1.45%** | **7,201,981** | 0 | - Huzhou Zhiju Technology Industry Development Co., Ltd. and Excellent Auto Co., Ltd. are parties acting in concert, and Excellent Auto Co., Ltd. has entrusted the voting rights of all its shares to Huzhou Zhiju Technology Industry Development Co., Ltd.[111](index=111&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=36&type=section&id=Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) Shareholdings of directors, supervisors, and senior management remained unchanged, as detailed in the 2024 annual report - The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period, as detailed in the 2024 annual report[113](index=113&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=36&type=section&id=Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) No changes in the company's controlling shareholder or actual controller during the reporting period - No change in the company's controlling shareholder during the reporting period[114](index=114&type=chunk) - No change in the company's actual controller during the reporting period[114](index=114&type=chunk) [Preferred Share Information](index=37&type=section&id=Preferred%20Share%20Information) No preferred shares during the reporting period - No preferred shares during the reporting period[115](index=115&type=chunk) [Section VII Bond-Related Information](index=38&type=section&id=Section%20VII%20Bond-Related%20Information) This section provides information regarding any bonds issued or held by the company [Bond-Related Information](index=38&type=section&id=Bond-Related%20Information) Not applicable, as the company had no bond-related information during the reporting period [Section VIII Financial Report](index=39&type=section&id=Section%20VIII%20Financial%20Report) This section presents the company's comprehensive financial statements and related notes [Audit Report](index=39&type=section&id=Audit%20Report) The company's semi-annual financial report was not audited - Company's semi-annual financial report was not audited[119](index=119&type=chunk) [Financial Statements](index=39&type=section&id=Financial%20Statements) Includes consolidated and parent company financial statements, reflecting financial position, operating results, and cash flows - Consolidated balance sheet shows that as of June 30, 2025, the company's total assets were **RMB 4,168,522,300.66**, and total equity attributable to parent company owners was **RMB 1,394,263,144.06**[123](index=123&type=chunk) - Consolidated income statement shows that for this reporting period, total operating revenue was **RMB 1,264,932,580.58**, and net profit attributable to parent company shareholders was **RMB -7,196,216.60**[130](index=130&type=chunk)[131](index=131&type=chunk) - Consolidated cash flow statement shows that net cash flow from operating activities for this reporting period was **RMB -41,923,155.56**[135](index=135&type=chunk) [Company Basic Information](index=56&type=section&id=Company%20Basic%20Information) Established in 1995, listed in 2007, with 495,871,930 shares, primarily in new energy vehicle motors and micro motors, consolidating 17 subsidiaries - Zhejiang Fangzheng Motor Co., Ltd., formerly Lishui Fangzheng Motor Manufacturing Co., Ltd., was registered on July 3, 1995[154](index=154&type=chunk) - The company was listed on the Shenzhen Stock Exchange on December 12, 2007[154](index=154&type=chunk) - As of June 30, 2025, the company's total share capital was **495,871,930 shares**[155](index=155&type=chunk) - The company and its subsidiaries belong to the special equipment manufacturing industry, with main business scope including processing, manufacturing, and sales of new energy vehicle motors and controllers, micro motors, sewing machines, household appliances, and power tools[155](index=155&type=chunk) - The scope of the company's consolidated financial statements includes the parent company and its **17 subsidiaries**[156](index=156&type=chunk) [Basis of Financial Statement Preparation](index=57&type=section&id=Basis%20of%20Financial%20Statement%20Preparation) Financial statements prepared under Chinese Accounting Standards, on a going concern basis, using accrual method and historical cost - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance, their application guidelines, interpretations, and other relevant regulations, and disclose relevant financial information in accordance with CSRC's "Information Disclosure Rules for Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports" (Revised 2023)[157](index=157&type=chunk) - These financial statements are presented on a going concern basis, with accounting based on the accrual method, and measured at historical cost except for certain financial instruments and investment properties[159](index=159&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=58&type=section&id=Significant%20Accounting%20Policies%20and%20Accounting%20Estimates) Details policies for financial asset impairment, R&D capitalization, revenue, business combinations, and fair value, ensuring accurate reporting - Company classifies financial assets into three categories based on the business model for managing financial assets and the contractual cash flow characteristics of the financial assets: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[193](index=193&type=chunk) - Company performs impairment accounting and recognizes loss provisions for notes receivable, accounts receivable, accounts receivable financing, other receivables, and contract assets based on expected credit losses[212](index=212&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk) - Company recognizes revenue when it satisfies a performance obligation in the contract, i.e., when the customer obtains control of the related goods or services, distinguishing revenue recognition over a period of time or at a point in time based on the nature of the performance obligation[282](index=282&type=chunk)[284](index=284&type=chunk)[285](index=285&type=chunk)[290](index=290&type=chunk) - Company distinguishes internal research and development project expenditures into research phase expenditures and development phase expenditures; research phase expenditures are recognized in current profit or loss, while development phase expenditures are capitalized if specific conditions are met simultaneously[257](index=257&type=chunk)[258](index=258&type=chunk) - Company adopts the fair value model for subsequent measurement of investment properties, with changes in fair value recognized in current profit or loss[239](index=239&type=chunk) [Taxation](index=102&type=section&id=Taxation) Discloses main tax types and rates, including VAT and corporate income tax, with preferential rates for high-tech and overseas subsidiaries Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | VAT | Taxable income | **13%**, **9%**, **6%**, **5%**, **3%** Export tax rebate rate **13%** | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | **7%**, **5%** | | Corporate Income Tax | Taxable income | **25%**, **15%**, **20%**, **10%** | | Property Tax | For value-based assessment, 1.2% of the remaining value after a one-time deduction of 30% from the original property value; for rent-based assessment, 12% of rental income | **1.2%**, **12%** | | Education Surcharge | Amount of turnover tax payable | **3%** | | Local Education Surcharge | Amount of turnover tax payable | **2%** | - The company and its subsidiaries, including Shenzhen Gaokerun, Shanghai Haineng, Hubei Fangzheng, Fangdi Shanghai, and Zhejiang Gaokerun, have all been recognized as high-tech enterprises, enjoying a **15%** corporate income tax preferential rate[103](index=103&type=chunk)[104](index=104&type=chunk) - Subsidiaries Fangzheng Vietnam Co., Fangde Vietnam Co., and Gaokerun Vietnam Co. enjoy a **10%** corporate income tax rate for 15 years, with a 4-year exemption and 9-year half-rate reduction period[104](index=104&type=chunk)[105](index=105&type=chunk) [Notes to Consolidated Financial Statement Items](index=105&type=section&id=Notes%20to%20Consolidated%20Financial%20Statement%20Items) Details period-end balances and changes for consolidated financial statement items, providing comprehensive financial status and operating results - Monetary funds period-end balance is **RMB 330,539,341.63**, of which **RMB 111,930,599.77** is restricted, mainly for pledged bank acceptance bills and guarantees[105](index=105&type=chunk)[106](index=106&type=chunk) - Accounts receivable period-end book balance is **RMB 855,356,226.03**, with bad debt provision of **RMB 21,506,777.95**, of which accounts receivable for which bad debt provision is accrued by portfolio accounts for **99.46%**[109](index=109&type=chunk) - Inventories period-end book value is **RMB 387,097,400.84**, an increase from the beginning of the period, mainly due to mass production of new projects[44](index=44&type=chunk)[119](index=119&type=chunk) - Fixed assets period-end book value is **RMB 994,666,911.23**, with an increase of **RMB 97,229,098.67** this period, of which **RMB 70,602,583.61** was transferred from construction in progress[126](index=126&type=chunk) - Goodwill period-end original book value is **RMB 1,112,124,334.65**, with impairment provision of **RMB 1,048,849,820.62**, mainly formed from the acquisition of Shanghai Haineng Co., former Devos Co., and Hubei Fangzheng Co.[132](index=132&type=chunk) - Short-term borrowings period-end balance is **RMB 333,160,893.73**, and long-term borrowings period-end balance is **RMB 659,867,846.85**, both showing an increase from the beginning of the period[136](index=136&type=chunk)[141](index=141&type=chunk) - Share capital period-end balance is **RMB 495,871,930.00**, reduced by **1,798,000.00 shares** this period due to repurchase and cancellation of restricted shares[144](index=144&type=chunk) [R&D Expenses](index=157&type=section&id=R%26D%20Expenses) Total R&D expenditure was RMB 98.50 million, with RMB 89.82 million expensed and RMB 8.68 million capitalized, showing ongoing R&D investment R&D Expenditure Composition | Item | Amount for Current Period (RMB) | Amount for Prior Period (RMB) | | :--- | :--- | :--- | | Employee Compensation | 61,452,999.25 | 58,216,131.27 | | Development Testing and Material Costs | 19,341,457.39 | 20,788,759.08 | | Depreciation and Amortization | 9,930,064.46 | 11,882,875.16 | | Energy Consumption Costs | 815,724.54 | 1,262,835.85 | | Other | 6,955,634.50 | 5,400,822.04 | | **Total** | **98,495,880.14** | **97,551,423.40** | | Of which: Expensed R&D expenditure | **89,818,493.08** | 82,506,975.94 | | Capitalized R&D expenditure | **8,677,387.06** | 15,044,447.46 | - NIO Firefly 160 flat wire motor stator and rotor assembly R&D and 160 flat wire three-in-one integrated system R&D are **100% complete**, while Evamo EHPS EN2 high-functional safety dual-source integrated electric drive system R&D is **85.20% complete** and expected to be finished by December 31, 2025[158](index=158&type=chunk) [Changes in Consolidation Scope](index=159&type=section&id=Changes%20in%20Consolidation%20Scope) No business combinations or subsidiary disposals occurred, maintaining a stable consolidation scope - No business combinations under non-common control during the reporting period[159](index=159&type=chunk) - No business combinations under common control during the reporting period[160](index=160&type=chunk) - No reverse acquisitions during the reporting period[161](index=161&type=chunk) - No loss of control over subsidiaries during the reporting period[161](index=161&type=chunk) [Interests in Other Entities](index=162&type=section&id=Interests%20in%20Other%20Entities) Discloses enterprise group composition, including 17 subsidiaries and important associates, indicating stable control and investment income - Company owns **17 subsidiaries**, including Fangzheng Deqing Co., Shanghai Haineng Co., Fangde Micro Motor (Lishui) Co., Ltd., etc., with most shareholding ratios at **100%**, primarily engaged in manufacturing and technical services[162](index=162&type=chunk)[163](index=163&type=chunk) Financial Information of Important Associates (Unit: RMB) | Item | Lishui Jinzheng Co. (Period-end Balance/Current Period Amount, RMB) | Adient Fangde Co. (Period-end Balance/Current Period Amount, RMB) | | :--- | :--- | :--- | | Total Investment Book Value | **8,732,384.32** | **65,457,443.08** | | Net Profit | **625,831.01** | **11,051,863.32** | | Total Comprehensive Income | **625,831.01** | **11,051,863.32** | [Government Grants](index=167&type=section&id=Government%20Grants) Government grants totaling RMB 5.94 million were recognized in profit or loss, with RMB 75.35 million remaining in deferred income - Government grants included in deferred income at period-end totaled **RMB 75,347,066.22**, mainly for new energy vehicle electric drive and control system projects, and national subsidy funds for new energy vehicle motors and electric drive integrated systems[167](index=167&type=chunk)[168](index=168&type=chunk) Government Grants Recognized in Current Profit or Loss | Grant Item | Amount Recognized in Profit or Loss for Current Period (RMB) | | :--- | :--- | | Subtotal of government grants related to assets | **3,137,408.26** | | Subtotal of government grants related to income | **2,807,336.09** | | **Total** | **5,944,744.35** | [Risks Related to Financial Instruments](index=169&type=section&id=Risks%20Related%20to%20Financial%20Instruments) Company manages credit, liquidity, and market risks (interest rate, exchange rate) through various measures, with an asset-liability ratio of 66.50% - Credit risk primarily arises from bank deposits, notes receivable, accounts receivable, accounts receivable financing, other receivables, etc., managed by assessing customer creditworthiness, regular monitoring, and purchasing credit guarantee insurance[170](index=170&type=chunk) - Liquidity risk is managed by maintaining sufficient cash and cash equivalents as deemed appropriate by management, monitoring bank loan utilization, obtaining standby credit commitments, and considering supplier financing arrangements[170](index=170&type=chunk)[171](index=171&type=chunk) - Interest rate risk primarily arises from interest-bearing debts such as bank borrowings; if floating-rate borrowing interest rates increase or decrease by **25 basis points**, the company's net profit and shareholders' equity would decrease or increase by approximately **RMB 1.1542 million**[171](index=171&type=chunk) - Exchange rate risk stems from financial instruments denominated in foreign currencies other than the functional currency (mainly USD and VND); assuming a **10% appreciation or depreciation** of RMB against foreign currencies, the company's shareholders' equity and net profit would both increase or decrease by approximately **RMB 11.4147 million**[172](index=172&type=chunk) - Company monitors its capital structure based on the asset-liability ratio (which was **66.50%** at period-end), aiming to ensure continuous operation and reduce capital costs[172](index=172&type=chunk) [Disclosure of Fair Value](index=173&type=section&id=Disclosure%20of%20Fair%20Value) Discloses period-end fair values of assets and liabilities, totaling RMB 360.28 million, and explains measurement levels and methods Total Assets Continuously Measured at Fair Value | Item | Period-end Fair Value (RMB) | | :--- | :--- | | Trading financial assets | **6,218,800.03** | | Accounts receivable financing | **254,135,694.56** | | Other equity instrument investments | **1,000,000.00** | | Investment properties | **98,927,954.72** | | **Total** | **360,282,449.31** | - Fair value measurement is divided into three levels: Level 1 for unadjusted quoted prices in active markets; Level 2 for observable inputs other than Level 1; and Level 3 for unobservable inputs[173](index=173&type=chunk)[174](index=174&type=chunk) [Related Parties and Related Party Transactions](index=174&type=section&id=Related%20Parties%20and%20Related%20Party%20Transactions) Details related parties and daily transactions, including purchases, sales, leases, guarantees, and receivables/payables - Company's parent company is Huzhou Zhiju Technology Industry Development Co., Ltd., holding **9.07%** of shares and controlling a total of **12.09%** of voting rights through voting rights entrustment, with the ultimate controlling party being the High-tech Zone Management Committee[174](index=174&type=chunk) - During the reporting period, the company purchased **RMB 11.5749 million** in goods from Lishui Jinzheng Co., accepted **RMB 3.5417 million** in services from Lishui Ruicheng Human Resources Management Co., Ltd., and sold **RMB 21.1160 million** in micro motors to Yanfeng Adient Fangde Motor Co., Ltd.[175](index=175&type=chunk)[176](index=176&type=chunk) - As a lessee, the company leased factory buildings and structures from related parties such as Runyang Chengtai Co. and Deqing Hengfeng Construction Development Co., Ltd., with total rent paid this period approximately **RMB 3.26 million**[176](index=176&type=chunk) - As a guaranteed party, Zhang Min provided a guarantee of **RMB 220 million** for the company, and Excellent Auto provided a guarantee of **RMB 150 million** for the company[177](index=177&type=chunk) - Period-end receivables from related parties mainly include dividends receivable from Adient Fangde Co. of **RMB 13,529,289.42** and deposits/guarantees receivable from High-tech Zone Management Committee of **RMB 5,000,000.00**; payables to related parties mainly include notes payable to Lishui Jinzheng Co. of **RMB 8,104,293.12** and accounts payable of **RMB 6,829,565.37**[178](index=178&type=chunk) [Share-Based Payment](index=178&type=section&id=Share-Based%20Payment) No overall, equity-settled, or cash-settled share-based payment situations or expenses during the reporting period - No overall share-based payment situation during the reporting period[178](index=178&type=chunk) - No equity-settled share-based payment situation during the reporting period[178](index=178&type=chunk) - No cash-settled share-based payment situation during the reporting period[178](index=178&type=chunk) - No share-based payment expenses for the current period during the reporting period[178](index=178&type=chunk) [Commitments and Contingencies](index=179&type=section&id=Commitments%20and%20Contingencies) No significant commitments; two major contingencies involve engineering and leasing disputes, with RMB 5.65 million in frozen bank deposits - As of June 30, 2025, the company had no significant commitments requiring disclosure[179](index=179&type=chunk) - Subsidiary Fangzheng Deqing Co. had an engineering dispute with Zhejiang Zhensheng Construction Co., Ltd., was sued for payment of engineering progress and liquidated damages, resulting in **RMB 5,649,384.10** of bank deposits being frozen[179](index=179&type=chunk) - Lishui Liandu District New Youth Fitness Center had a dispute with the company regarding site vacation compensation after lease expiration, with both parties suing each other, and the cases are still under court review[179](index=179&type=chunk) [Events After the Balance Sheet Date](index=179&type=section&id=Events%20After%20the%20Balance%20Sheet%20Date) No significant non-adjusting events or profit distribution situations during the reporting period - No significant non-adjusting events during the reporting period[179](index=179&type=chunk) - No profit distribution situations during the reporting period[180](index=180&type=chunk) [Other Significant Matters](index=180&type=section&id=Other%20Significant%20Matters) Discloses transactions with third-party suppliers and segment reporting for drive motors, intelligent controllers, and micro motors - Company's business operations are divided into **3 reporting segments**: drive motors and automotive electronics, intelligent controllers, and micro motors, with management regularly evaluating the operating results of these segments[181](index=181&type=chunk) Segment Financial Information (Current Period or Period-end, Unit: RMB) | Item | Drive Motors and Automotive Electronics (RMB) | Intelligent Controllers (RMB) | Micro Motors (RMB) | Eliminations (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | **628,312,193.81** | **434,626,219.87** | **203,722,979.17** | -1,728,812.27 | **1,264,932,580.58** | | Operating Cost | **547,977,406.57** | **387,182,402.74** | **171,163,453.49** | -604,320.39 | **1,105,718,942.41** | | Operating Profit (Loss) | **-15,506,969.82** | **-3,063,362.28** | **11,868,444.84** | -1,124,491.88 | **-7,826,379.14** | | Total Assets | **3,065,890,251.45** | **735,981,197.46** | **444,836,274.54** | -78,185,422.79 | **4,168,522,300.66** | - As of June 30, 2025, Zhang Min pledged a total of **26,425,997 shares** of the company to Zheshang Bank Lishui Branch; Excellent Auto pledged a total of **15,000,000 shares** of the company to Huaxia Bank Co., Ltd. Huzhou Deqing Branch[181](index=181&type=chunk) [Notes to Parent Company Financial Statement Items](index=182&type=section&id=Notes%20to%20Parent%20Company%20Financial%20Statement%20Items) Details parent company's accounts receivable, other receivables, long-term equity investments, revenue, cost, and investment income - Parent company accounts receivable period-end book balance is **RMB 331,449,630.60**, with bad debt provision of **RMB 16,045,261.04**, of which accounts receivable from drive motors and automotive electronics business accounts for **97.28%**[183](index=183&type=chunk) - Parent company other receivables period-end book balance is **RMB 117,549,511.71**, with bad debt provision of **RMB 26,027,002.74**, of which receivables from related parties account for **38.29%**[187](index=187&type=chunk)[188](index=188&type=chunk) - Parent company long-term equity investments period-end book value is **RMB 1,296,952,239.62**, including investments in subsidiaries of **RMB 1,222,762,412.22** and investments in associates and joint ventures of **RMB 74,189,827.40**[189](index=189&type=chunk) - Parent company's operating revenue for this period was **RMB 460,494,785.74**, and operating cost was **RMB 423,205,248.23**, mainly from drive motors and automotive electronics business[191](index=191&type=chunk)[192](index=192&type=chunk) - Parent company's investment income for this period was **RMB 19,677,694.33**, including **RMB 8,000,000.00** from long-term equity investments accounted for using the cost method and **RMB 11,677,694.33** from long-term equity investments accounted for using the equity method[192](index=192&type=chunk) [Supplementary Information](index=193&type=section&id=Supplementary%20Information) Provides non-recurring gains/losses, net asset return, EPS, and accounting data differences, supplementing key financial information Detailed Statement of Non-Recurring Gains and Losses for the Current Period | Item | Amount (RMB) | | :--- | :--- | | Disposal gains/losses of non-current assets | -1,385,669.66 | | Government grants recognized in current profit/loss | 6,180,420.72 | | Gains/losses from fair value changes and disposal of financial assets and liabilities | 368,921.66 | | Entrusted investment or asset management gains/losses | 40,492.15 | | Other non-operating income and expenses apart from the above | 147,889.99 | | Less: Income tax impact | 212,457.36 | | **Total** | **5,139,597.50** | - VAT input tax credit (**RMB 6,997,047.57**) and VAT over-tax refund (**RMB 913,186.55**) are classified as recurring gains/losses[193](index=193&type=chunk) Net Asset Return and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets | Basic Earnings Per Share (RMB/share) | Diluted Earnings Per Share (RMB/share) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders of the company | **-0.52%** | **-0.0145** | **-0.0145** | | Net profit attributable to common shareholders of the company after deducting non-recurring gains and losses | **-0.89%** | **-0.0249** | **-0.0249** | - No differences in accounting data under domestic and overseas accounting standards during the reporting period[194](index=194&type=chunk) [Section IX Other Submitted Data](index=195&type=section&id=Section%20IX%20Other%20Submitted%20Data) This section includes additional data and information submitted as part of the report [Other Significant Social Security Issues](index=195&type=section&id=Other%20Significant%20Social%20Security%20Issues) No other significant social security issues or administrative penalties for the company and its subsidiaries - The listed company and its subsidiaries have no other significant social security issues[794](index=794&type=chunk) - No administrative penalties during the reporting period[794](index=794&type=chunk) [Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period](index=195&type=section&id=Registration%20Form%20for%20Research%2C%20Communication%2C%20Interview%2C%20and%20Other%20Activities%20During%20the%20Reporting%20Period) Not applicable [Fund Transactions Between Listed Company and Controlling Shareholder and Other Related Parties](index=195&type=section&id=Fund%20Transactions%20Between%20Listed%20Company%20and%20Controlling%20Shareholder%20and%20Other%20Related%20Parties) Not applicable

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[Section I Important Notes, Table of Contents, and Definitions](index=2&type=section&id=Section%20I%20Important%20Notes%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides essential disclaimers, a detailed report directory, and definitions of key terms for clarity [Important Notes](index=2&type=section&id=Important%20Notes) The board and management guarantee report accuracy, cautioning on forward-looking statements, and confirm no dividends or bonus shares are planned - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions[5](index=5&type=chunk) - This report contains forward-looking statements regarding future operating plans and development strategies, which do not constitute a substantive commitment by the company to investors, and investors should maintain sufficient risk awareness[6](index=6&type=chunk) - The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital[7](index=7&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) The report's clear directory lists nine main chapters covering company profile, management discussion, corporate governance, significant matters, share changes, bond information, financial reports, and other data - The report comprises nine main chapters, structured clearly for investor review[9](index=9&type=chunk) [Directory of Reference Documents](index=4&type=section&id=Directory%20of%20Reference%20Documents) Reference documents include signed financial statements, original public disclosure files, and the original semi-annual report, all available at the company's securities affairs department - Reference documents include financial statements signed or sealed by the legal representative, chief accountant, and accounting manager, original copies of all publicly disclosed company documents and announcements during the reporting period, and the original semi-annual report signed by the legal representative[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) - All reference documents are available at the company's securities affairs department[14](index=14&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section defines common terms used in the report, including company abbreviations, major subsidiary names, and the reporting period, ensuring accurate understanding - The reporting period refers to January 1, 2025, to June 30, 2025[17](index=17&type=chunk) - The company's abbreviation "Dahua Intelligent" refers to Fuzhou Dahua Intelligent Technology Co, Ltd[17](index=17&type=chunk) - Full names of major subsidiaries such as Jinruixian, Xindongwang, and Haitiansilu are listed[17](index=17&type=chunk) [Section II Company Profile and Key Financial Indicators](index=6&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section presents the company's profile, contact information, key financial data, and non-recurring items [I. Company Profile](index=6&type=section&id=I.%20Company%20Profile) Fuzhou Dahua Intelligent Technology Co, Ltd, with stock abbreviation "Dahua Intelligent" and stock code 002512, is listed on the Shenzhen Stock Exchange, and its legal representative is Zeng Zhongcheng Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Dahua Intelligent | | Stock Code | 002512 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Fuzhou Dahua Intelligent Technology Co, Ltd | | Legal Representative | Zeng Zhongcheng | [II. Contact Person and Information](index=6&type=section&id=II.%20Contact%20Person%20and%20Information) The company's Board Secretary is Zhang Gaoli, and the Securities Affairs Representative is Cai Jianping, with contact address, phone, fax, and email disclosed Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Zhang Gaoli | Building 17, G Zone, Fuzhou Software Park, No. 89 Software Avenue, Gulou District, Fuzhou City, Fujian Province | 0591-87510387 | 0591-87767005 | zhanggaoli@twh.com.cn | | Securities Affairs Representative | Cai Jianping | Building 17, G Zone, Fuzhou Software Park, No. 89 Software Avenue, Gulou District, Fuzhou City, Fujian Province | 0591-87510387 | 0591-87767005 | caijianping@twh.com.cn | [III. Other Information](index=6&type=section&id=III.%20Other%20Information) During the reporting period, there were no changes to the company's registered address, office address, website, email, or information disclosure and storage locations, with details available in the 2024 annual report - The company's contact information remained unchanged during the reporting period, details can be found in the 2024 annual report[20](index=20&type=chunk) - Information disclosure and storage locations remained unchanged during the reporting period, details can be found in the 2024 annual report[21](index=21&type=chunk)[22](index=22&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=7&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company's operating revenue decreased by **14.33%** year-on-year, and net profit attributable to shareholders significantly dropped by **194.54%** due to prior period accounting error corrections, while net cash flow from operating activities improved by **63.52%** Key Accounting Data and Financial Indicators (Year-on-Year Change) | Project | Current Reporting Period (Yuan) | Prior Year Adjusted (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 760,991,541.96 | 888,313,827.93 | -14.33% | | Net Profit Attributable to Shareholders of Listed Company | -52,588,974.59 | 55,626,762.15 | -194.54% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | -70,136,952.32 | -11,985,712.32 | -485.17% | | Net Cash Flow from Operating Activities | -38,832,187.26 | -106,441,364.75 | 63.52% | | Basic Earnings Per Share (Yuan/share) | -0.0480 | 0.0508 | -194.49% | | Weighted Average Return on Net Assets | -11.64% | 13.47% | -25.11% | Key Accounting Data and Financial Indicators (Period-End Change) | Project | Current Period End (Yuan) | Prior Year End Adjusted (Yuan) | Period-End Change from Prior Year End | | :--- | :--- | :--- | :--- | | Total Assets | 2,438,361,818.37 | 2,637,099,857.58 | -7.54% | | Net Assets Attributable to Shareholders of Listed Company | 438,271,415.60 | 413,689,796.87 | 5.94% | - The company corrected accounting errors and made retrospective adjustments to financial statements from 2021 to the third quarter of 2024, due to undisclosed significant contracts and financial assistance, premature recognition of subsidiary disposal gains, and incorrect accounting for construction in progress[23](index=23&type=chunk)[24](index=24&type=chunk)[26](index=26&type=chunk) [V. Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=8&type=section&id=V.%20Differences%20in%20Accounting%20Data%20under%20Domestic%20and%20Overseas%20Accounting%20Standards) During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under international or overseas accounting standards and those under Chinese accounting standards - The company's financial reports for the reporting period show no differences in net profit and net assets between International Accounting Standards and Chinese Accounting Standards[27](index=27&type=chunk) - The company's financial reports for the reporting period show no differences in net profit and net assets between overseas accounting standards and Chinese Accounting Standards[28](index=28&type=chunk) [VI. Non-Recurring Gains and Losses and Amounts](index=8&type=section&id=VI.%20Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) The company's total non-recurring gains and losses for this reporting period amounted to **17,547,977.73 Yuan**, primarily from disposal gains on non-current assets and government grants Non-Recurring Gains and Losses and Amounts | Project | Amount (Yuan) | | :--- | :--- | | Disposal gains and losses of non-current assets | 16,530,423.68 | | Government grants included in current profit and loss | 1,146,264.25 | | Other non-operating income and expenses apart from the above | 34,403.35 | | Less: Income tax impact | 168,358.55 | | Impact on minority interests (after tax) | -5,245.00 | | Total | 17,547,977.73 | - The company has no other profit and loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring gains and losses[30](index=30&type=chunk) [Section III Management Discussion and Analysis](index=9&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section analyzes the company's main operations, core competencies,

Section I Important Notice, Table of Contents, and Definitions This section provides crucial disclaimers, outlines the report's structure, and defines key terms for clarity [Important Notice](index=2&type=section&id=重要提示) The board and senior management guarantee the report's accuracy, while noting uncertainties in a share transfer agreement and no planned interim dividend distribution - The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[4](index=4&type=chunk) - Uncertainties exist regarding the share transfer agreement signed in June 2023 between the controlling shareholder and China National Biotec Group Co., Ltd., with no supplementary agreement, joint venture, or approval process initiated, and no change in company control[4](index=4&type=chunk) - The company plans no cash dividend distribution, bonus share issuance, or capital reserve to share capital conversion for this semi-annual period[8](index=8&type=chunk) [Table of Contents](index=4&type=section&id=目录) This chapter lists the report's overall structure, covering nine main sections including company profile, financial indicators, management discussion, corporate governance, significant events, share changes, bond information, financial reports, and other submitted data [Definitions](index=6&type=section&id=释义) This chapter provides definitions for common terms used in the report, ensuring clear understanding of the content - "Weiguang Bio", "Company", "the Company" refers to Shenzhen Weiguang Biological Products Co., Ltd[15](index=15&type=chunk) - "Guangming SASAC" refers to Shenzhen Guangming District State-owned Assets Supervision and Administration Commission, the company's controlling shareholder and actual controller[15](index=15&type=chunk) - "Reporting Period" refers to January 1, 2025, to June 30, 2025[15](index=15&type=chunk) Section II Company Profile and Key Financial Indicators This section presents the company's basic information and key financial performance metrics for the reporting period [I. Company Profile](index=7&type=section&id=一、公司简介) The company's stock name is "Weiguang Bio", stock code 002880, listed on the Shenzhen Stock Exchange, with Zhang Zhan as its legal representative - Company stock abbreviation: Weiguang Bio, stock code: **002880**[17](index=17&type=chunk) - The company is listed on the Shenzhen Stock Exchange[17](index=17&type=chunk) - The company's legal representative is Zhang Zhan[17](index=17&type=chunk) [II. Contact Person and Contact Information](index=7&type=section&id=二、联系人和联系方式) This chapter provides contact information for the company's Board Secretary Jin Jianjun and Securities Affairs Representative Hong Jiehui, facilitating investor communication - Board Secretary: Jin Jianjun, Securities Affairs Representative: Hong Jiehui[18](index=18&type=chunk) - Contact address: No. 3402 Guangqiao Avenue, Biyan Community, Guangming Street, Guangming District, Shenzhen[18](index=18&type=chunk) - Phone: 0755-27402880, Email: zhengquanbu@szwg.com[18](index=18&type=chunk) [III. Other Information](index=7&type=section&id=三、其他情况) During the reporting period, there were no changes in the company's registered address, office address, postal code, website, email, or information disclosure and placement locations - The company's contact information remained unchanged during the reporting period, refer to the 2024 annual report for details[19](index=19&type=chunk) - Information disclosure and placement locations remained unchanged during the reporting period, refer to the 2024 annual report for details[20](index=20&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=8&type=section&id=四、主要会计数据和财务指标) During this reporting period, the company's operating revenue and net profit attributable to shareholders slightly decreased year-on-year, while net cash flow from operating activities significantly reduced; total assets and net assets attributable to shareholders both increased at period-end Key Accounting Data and Financial Indicators Year-on-Year Change | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 518,095,318.12 | 522,902,745.97 | -0.92% | | Net Profit Attributable to Shareholders of Listed Company | 107,646,345.47 | 109,861,719.65 | -2.02% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) | 106,303,706.91 | 107,771,762.61 | -1.36% | | Net Cash Flow from Operating Activities | 39,591,374.04 | 76,273,713.83 | -48.09% | | Basic Earnings Per Share (Yuan/share) | 0.4746 | 0.4844 | -2.02% | | Diluted Earnings Per Share (Yuan/share) | 0.4746 | 0.4844 | -2.02% | | Weighted Average Return on Net Assets | 4.78% | 5.43% | -0.65% | | **Period-End Indicators** | **Current Period-End (Yuan)** | **Prior Year-End (Yuan)** | **Change from Prior Year-End** | | Total Assets | 3,342,456,527.36 | 3,297,444,233.19 | 1.37% | | Net Assets Attributable to Shareholders of Listed Company | 2,273,711,676.61 | 2,211,425,331.14 | 2.82% | [V. Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=8&type=section&id=五、境内外会计准则下会计数据差异) During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards or overseas accounting standards and those under Chinese Accounting Standards - The company's financial reports disclosed under International Accounting Standards and Chinese Accounting Standards showed no differences in net profit and net assets during the reporting period[23](index=23&type=chunk) - The company's financial reports disclosed under overseas accounting standards and Chinese Accounting Standards showed no differences in net profit and net assets during the reporting period[24](index=24&type=chunk) [VI. Non-recurring Gains and Losses and Amounts](index=8&type=section&id=六、非经常性损益项目及金额) Non-recurring gains and losses for this reporting period primarily include government subsidies recognized in current profit or loss, other non-operating income and expenses, totaling 1,342,638.56 Yuan after deducting income tax and minority interest impacts Non-recurring Gains and Losses and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Government subsidies recognized in current profit or loss (excluding those closely related to the company's normal operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on the company's profit or loss) | 1,977,837.04 | | Other non-operating income and expenses apart from the above items | -396,209.74 | | Less: Income tax impact | 239,388.74 | | Minority interest impact (after tax) | -400.00 | | **Total** | **1,342,638.56** | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses[26](index=26&type=chunk) Section III Management Discussion and Analysis This section provides an in-depth analysis of the company's operations, financial performance, core competitiveness, and risk factors during the reporting period [I. Main Business Activities of the Company During the Reporting Period](index=10&type=section&id=一、报告期内公司从事的主要业务) The company's main business is blood products, covering albumin, immunoglobulins, and coagulation factors; it achieved approximately 518 million Yuan in operating revenue and 108 million Yuan in net profit attributable to shareholders by focusing on "Four Enhancements" - The company's main business is blood products, primarily including three major categories: albumin, immunoglobulin, and coagulation factors[28](index=28&type=chunk) - The company's main raw material is healthy human plasma, supplied "one-to-one" by 9 plasma collection stations in which the company holds no less than 80% equity[31](index=31&type=chunk) - During the reporting period, the company achieved operating revenue of approximately **518 million Yuan**, net profit attributable to shareholders of approximately **108 million Yuan**, and earnings per share of approximately **0.47 Yuan**[32](index=32&type=chunk) [(I) Main Business](index=10&type=section&id=(一)%20主营业务) The company's main business focuses on blood products, with key product lines including human albumin, immunoglobulins, and coagulation factors, forming a vital part of the biopharmaceutical sector - The company's main business is blood products, with products primarily including three major categories: albumin, immunoglobulin, and coagulation factors[28](index=28&type=chunk) [(II) Main Products and Uses](index=10&type=section&id=(二)%20主要产品及用途) The company offers a rich product line, including human albumin, intravenous immunoglobulin (pH4), human rabies immunoglobulin, human fibrinogen, human coagulation factor VIII, and human prothrombin complex, widely used in treating various conditions such as shock, edema, immune deficiencies, infection prevention, and coagulation disorders - Main products include human albumin, intravenous human immunoglobulin (pH4), human rabies immunoglobulin, human fibrinogen, human coagulation factor VIII, and human prothrombin complex[29](index=29&type=chunk) - Human albumin is used for shock, cerebral edema, edema caused by liver cirrhosis and nephrotic syndrome, and hypoproteinemia[29](index=29&type=chunk) - Intravenous human immunoglobulin (pH4) is used for primary/secondary immunoglobulin deficiency and autoimmune diseases[29](index=29&type=chunk) [(III) Business Model](index=11&type=section&id=(三)%20经营模式) The company employs a "one-to-one" plasma station procurement model with 9 operational plasma stations, adheres strictly to GMP standards for production, and sells primarily through distributors to medical institutions and pharmacies, with some direct sales to CDCs or for export - Procurement model: The company's main raw material, healthy human plasma, is supplied "one-to-one" by 9 plasma collection stations in which the company holds no less than 80% equity for production[31](index=31&type=chunk) - Production model: Raw and auxiliary materials are put into production after passing inspection, strictly following product manufacturing and inspection procedures, quality standards, and quality control requirements for testing, inspection, and quality auditing[31](index=31&type=chunk) - Sales model: Primarily sold through qualified distributors to hospitals, community health centers, clinics, pharmacies, and other medical institutions and drug retailers, with some products directly sold to CDCs or exported[31](index=31&type=chunk) [(IV) Key Performance Drivers](index=11&type=section&id=(四)%20主要业绩驱动因素) During the reporting period, the company drove performance growth by implementing "Four Enhancements" strategies, continuously advancing plasma source expansion, refined production management, market development, and promotion of key products - The company focuses on its established development strategy, implementing "Four Enhancements" actions: scale enhancement, efficiency enhancement, benefit enhancement, and market value enhancement[32](index=32&type=chunk) - It adheres to plasma expansion strategies of tapping existing potential and cultivating new sources, with solid progress in plasma source development[32](index=32&type=chunk) - It strengthens market development efforts, continuously promotes market expansion in key hospitals and teaching hospitals, and increases the promotion of products such as human coagulation factor VIII and human prothrombin complex[32](index=32&type=chunk) [II. Core Competitiveness Analysis](index=11&type=section&id=二、核心竞争力分析) The company's core competitiveness lies in plasma source expansion, production quality, technological R&D, brand, and platform, laying a solid foundation for sustained high-quality development - The company possesses 3 major categories and 11 varieties of products, including human albumin, human immunoglobulin, and coagulation factors, making it one of the few domestic enterprises qualified to establish new plasma stations[33](index=33&type=chunk) - The company boasts a stable technical and management team, technologically advanced blood product manufacturing facilities, mastery of advanced production processes, and a comprehensive quality management system[34](index=34&type=chunk) - The company has 8 major scientific research and talent innovation platforms, actively undertakes over 40 national, provincial, and municipal scientific research and technological projects, and has obtained **74 authorized patents**[35](index=35&type=chunk) - The company leverages its own scientific research platform, equity investment company, and Weiguang Life Science Park to build advantageous technology platforms, capital operation platforms, and achievement transformation platforms[37](index=37&type=chunk) [(I) Plasma Source Expansion Advantage](index=11&type=section&id=(一)%20浆源拓展优势) The company continuously increases plasma collection from existing stations and actively seeks new ones through strategies of tapping existing potential and cultivating new sources, possessing 3 major categories and 11 varieties of products, making it one of the few domestic enterprises qualified to establish new plasma stations, with growing plasma collection scale - The company adheres to plasma source expansion strategies of tapping existing potential and cultivating new sources, with average plasma collection per station ranking among the top in the industry[33](index=33&type=chunk) - The company possesses human albumin, human immunoglobulin, and coagulation factor 3 major categories and 11 varieties of products, making it one of the few domestic enterprises with qualifications to establish new plasma stations[33](index=33&type=chunk) [(II) Production Quality Advantage](index=12&type=section&id=(二)%20生产质量优势) With decades of experience in the blood products industry, the company boasts a stable technical and management team, advanced production facilities and processes, and a comprehensive quality management system, continuously improving product yield and quality through lean management - The company possesses a stable technical team, management team, and technologically advanced blood product manufacturing facilities, mastering advanced production processes[34](index=34&type=chunk) - It has established a comprehensive quality management system, vigorously implemented lean management, continuously improved the company's efficiency and benefits, and steadily enhanced product yield and quality[34](index=34&type=chunk) [(III) Technical R&D Advantage](index=12&type=section&id=(三)%20技术研发优势) The company is driven by technology and R&D innovation, boasting 8 major scientific research and talent innovation platforms, undertaking over 40 national, provincial, and municipal scientific research projects, recognized as a "National High-tech Enterprise," and holding 74 authorized patents, focusing on rare diseases and major infectious diseases - The company possesses 8 major scientific research and talent innovation platforms, including the "Guangdong Protein (Peptide) Engineering Research and Development Center"[35](index=35&type=chunk) - It actively undertakes over 40 national, provincial, and municipal scientific research and technological projects, including the National "863 Program"[35](index=35&type=chunk) - As of the end of the reporting period, the company has obtained **74 authorized patents**, including **31 invention patents** and **43 utility model patents**[35](index=35&type=chunk) [(IV) Brand Advantage](index=12&type=section&id=(四)%20品牌优势) The company is committed to building the "Weiguang" brand, adhering to the principle of "survival by quality, development by brand, and market by service," establishing a comprehensive quality management system and customer service mechanism, and fostering a strong brand and social image among the market and patients - The company is committed to the construction and maintenance of the "Weiguang" brand, implementing the business philosophy of "survival by quality, development by brand, and market by service"[36](index=36&type=chunk) - It has established a comprehensive quality management system and an all-round customer service mechanism, with product quality and service level recognized by the market, establishing a good brand and social image[36](index=36&type=chunk) [(V) Platform Advantage](index=12&type=section&id=(五)%20平台优势) The company's strategic goal is to become "a pioneer in differentiated blood products in China and a new force in platform-based biopharmaceuticals globally," building technology, capital, and achievement transformation platforms through its own scientific research platforms, equity investment companies, and Weiguang Life Science Park to accelerate industrial agglomeration and scientific achievement transformation - The company's strategic goal is to become "a pioneer in differentiated blood products in China and a new force in platform-based biopharmaceuticals globally"[37](index=37&type=chunk) - The company leverages its own scientific research platform, equity investment company, and Weiguang Life Science Park to build advantageous technology platforms, capital operation platforms, and achievement transformation platforms[37](index=37&type=chunk) - Weiguang Life Science Park, located in the core area of Shenzhen Guangming Science City, has attracted major institutions like Shenzhen Medical Academy and Shenzhen Bay Laboratory, along with a number of biopharmaceutical enterprises, accelerating industrial agglomeration[37](index=37&type=chunk) [III. Main Business Analysis](index=12&type=section&id=三、主营业务分析) During this reporting period, the company's main business revenue slightly decreased year-on-year, but operating costs decreased more significantly, leading to an increase in gross profit margin; blood products still account for a high proportion of revenue, but property leasing business grew significantly, and the regional revenue structure changed considerably, with a substantial increase in revenue from the South China region Major Financial Data Year-on-Year Change | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 518,095,318.12 | 522,902,745.97 | -0.92% | - | | Operating Cost | 293,635,521.83 | 304,291,620.64 | -3.50% | - | | Selling Expenses | 11,402,709.71 | 12,668,145.68 | -9.99% | - | | R&D Investment | 23,834,474.58 | 20,867,745.90 | 14.22% | - | | Net Cash Flow from Operating Activities | 39,591,374.04 | 76,273,713.83 | -48.09% | Due to decreased cash received related to other operating activities, and increased cash paid for goods and services, and to and for employees | | Net Cash Flow from Financing Activities | -25,351,345.14 | 129,515,409.79 | -119.57% | Due to decreased cash received from borrowings and increased cash paid for debt repayment | Operating Revenue Composition (by Industry) | Industry | Current Reporting Period Amount (Yuan) | Proportion of Operating Revenue | Prior Year Period Amount (Yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Blood Products | 444,405,520.20 | 85.78% | 458,068,846.60 | 87.60% | -2.98% | | Property Leasing | 73,674,739.43 | 14.22% | 57,548,169.38 | 11.01% | 28.02% | Operating Revenue Composition (by Product) | Product | Current Reporting Period Amount (Yuan) | Proportion of Operating Revenue | Prior Year Period Amount (Yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Human Albumin | 193,345,171.37 | 37.32% | 197,584,194.82 | 37.79% | -2.15% | | Intravenous Human Immunoglobulin | 187,352,577.01 | 36.16% | 175,377,784.39 | 33.54% | 6.83% | | Other Blood Products | 63,707,771.82 | 12.30% | 85,106,867.39 | 16.28% | -25.14% | Operating Revenue Composition (by Region) | Region | Current Reporting Period Amount (Yuan) | Proportion of Operating Revenue | Prior Year Period Amount (Yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | South China | 407,278,110.30 | 78.61% | 322,854,690.50 | 61.74% | 26.15% | | East China | 45,356,491.14 | 8.75% | 89,563,410.97 | 17.13% | -49.36% | | Southwest China | 23,681,664.18 | 4.57% | 34,812,479.13 | 6.66% | -31.97% | | Central China | 29,875,398.44 | 5.77% | 44,996,126.94 | 8.61% | -33.60% | | Other Regions | 11,903,654.06 | 2.30% | 30,676,038.43 | 5.87% | -61.20% | [IV. Non-Main Business Analysis](index=14&type=section&id=四、非主营业务分析) The company's non-main business income primarily stems from investment income (large-denomination deposit interest and bank acceptance bill discount interest) and non-operating income (gains from disposal of scrapped assets and government subsidies), alongside non-operating expenses (public welfare donations and retirement benefits), all of which are non-recurring and unsustainable Non-Main Business Gains and Losses | Item | Amount (Yuan) | Proportion of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 2,022,539.02 | 1.58% | Interest income from large-denomination deposits and discount expenses for bank acceptance bills | No | | Non-operating Income | 28,853.93 | 0.02% | Gains from disposal of scrapped assets and government subsidies unrelated to daily operations | No | | Non-operating Expenses | 425,063.67 | 0.33% | Public welfare donations and retirement benefits paid | No | [V. Analysis of Assets and Liabilities](index=15&type=section&id=五、资产及负债状况分析) At the end of the reporting period, the company's total assets and net assets attributable to shareholders both increased; in terms of asset structure, monetary funds decreased while inventories and fixed assets increased, mainly due to reclassification of large-denomination deposits and transfer of construction in progress to fixed assets; long-term borrowings decreased due to repayment Significant Changes in Asset Composition | Item | Current Period-End Amount (Yuan) | Proportion of Total Assets | Prior Year-End Amount (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 135,985,076.18 | 4.07% | 274,763,226.74 | 8.33% | -4.26% | Mainly due to the purchase of large-denomination deposits with monetary funds, resulting in reclassification of balance sheet items | | Inventories | 898,157,234.32 | 26.87% | 793,462,099.62 | 24.06% | 2.81% | Mainly due to an increase in finished goods | | Fixed Assets | 677,025,810.27 | 20.26% | 633,893,005.81 | 19.22% | 1.04% | Mainly due to the transfer of construction in progress to fixed assets | | Construction in Progress | 10,082,725.05 | 0.30% | 42,231,714.38 | 1.28% | -0.98% | Mainly due to the transfer of construction in progress to fixed assets | | Long-term Borrowings | 506,502,651.42 | 15.15% | 554,097,313.52 | 16.80% | -1.65% | Mainly due to repayment of borrowings | - The company had no major overseas assets during the reporting period[50](index=50&type=chunk) - Assets measured at fair value primarily consist of other non-current financial assets, with a period-end balance of **77,669,283.18 Yuan**, and no significant changes in asset measurement attributes during the reporting period[51](index=51&type=chunk)[52](index=52&type=chunk) - As of the end of the reporting period, restricted assets primarily included monetary funds of **32,789.68 Yuan**, which were deposits[52](index=52&type=chunk) [VI. Investment Analysis](index=16&type=section&id=六、投资状况分析) During the reporting period, the company's total investment increased by 102.20% year-on-year, but no significant equity or non-equity investments occurred, nor were there any securities investments, derivative investments, or use of raised funds Investment Amount Change During Reporting Period | Indicator | Investment Amount in Reporting Period (Yuan) | Investment Amount in Prior Year Period (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Total Investment | 307,679,440.57 | 152,167,618.26 | 102.20% | - The company had no securities investments or derivative investments during the reporting period[54](index=54&type=chunk)[56](index=56&type=chunk) - The company had no use of raised funds during the reporting period[57](index=57&type=chunk) [VII. Major Asset and Equity Sales](index=17&type=section&id=七、重大资产和股权出售) During the reporting period, the company did not engage in any significant asset sales or major equity sales - The company did not sell any major assets during the reporting period[58](index=58&type=chunk) - The company did not sell any major equity during the reporting period[59](index=59&type=chunk) [VIII. Analysis of Major Holding and Participating Companies](index=17&type=section&id=八、主要控股参股公司分析) The company's main holding subsidiaries include several plasma collection companies, an equity investment management company, a life science park development company, and a biotechnology company; most plasma station subsidiaries achieved profitability, though Pingguo Guangming Plasma Collection Co., Ltd. incurred losses during the reporting period, while Shenzhen Weiguang Life Science Park Development Co., Ltd. achieved operating revenue of 73,678,042.18 Yuan and net profit of 2,890,435.26 Yuan - The company owns multiple plasma collection subsidiaries, such as Luoding Weiguang, XinXing Weiguang, Zhongshan Guangming, etc., primarily engaged in plasma collection business[60](index=60&type=chunk) - Pingguo Guangming Plasma Collection Co., Ltd. reported negative operating profit and net profit during the reporting period, at **-1,260,119.26 Yuan** and **-1,328,221.32 Yuan** respectively[60](index=60&type=chunk) - Shenzhen Weiguang Life Science Park Development Co., Ltd. is primarily engaged in resident services and property leasing, achieving operating revenue of **73,678,042.18 Yuan** and net profit of **2,890,435.26 Yuan** during the reporting period[62](index=62&type=chunk) [IX. Information on Structured Entities Controlled by the Company](index=18&type=section&id=九、公司控制的结构化主体情况) The company had no structured entities under its control during the reporting period - The company had no structured entities under its control during the reporting period[63](index=63&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=18&type=section&id=十、公司面临的风险和应对措施) The company faces risks such as insufficient raw plasma supply, new product R&D, product safety, and intensifying market competition; to address these, it plans to enhance existing plasma stations, actively develop new ones, improve R&D management, upgrade processes, and optimize marketing strategies to ensure sustainable development - The company faces risks of insufficient raw plasma supply due to the special nature of plasma sources and strict controls on establishing new plasma stations[63](index=63&type=chunk) - The company faces new product R&D risks, as drug R&D cycles are long, with potential for delays or failures[64](index=64&type=chunk) - The company faces risks of intensifying market competition, as improved production processes and the emergence of gene recombination technologies may heighten competition[67](index=67&type=chunk) [1. Risk of Insufficient Raw Plasma Supply](index=18&type=section&id=1.原料血浆供应不足风险) Healthy human plasma, the raw material for blood products, is scarce, and the approval process for new plasma stations is increasingly difficult, potentially leading to insufficient raw plasma supply; the company plans to address this by maximizing the potential of existing stations, developing new ones, and improving processes and R&D - Healthy human plasma, the raw material for blood products, has a special and scarce source, and the difficulty of establishing new plasma collection stations has significantly increased[63](index=63&type=chunk) - Countermeasures include continuously tapping the plasma collection potential of existing stations, actively developing new plasma stations and seeking M&A opportunities, and improving process levels and technological R&D to enhance comprehensive plasma utilization[63](index=63&type=chunk) [2. New Product R&D Risk](index=18&type=section&id=2.新产品研发风险) Drug R&D cycles are long and influenced by various factors, posing risks of R&D progress falling short of expectations or outright failure; the company will mitigate these risks by improving R&D management mechanisms, strengthening R&D talent teams, and optimizing R&D models - Drug R&D cycles are relatively long, and the R&D process is influenced by various factors such as technical level, clinical efficacy, budget investment, and national policies, potentially leading to R&D progress falling short of expectations or R&D failure[64](index=64&type=chunk) - Countermeasures include improving R&D management mechanisms, strengthening the R&D talent team, and optimizing the R&D model, combining independent R&D with collaborative R&D[64](index=64&type=chunk)[65](index=65&type=chunk) [3. Potential Product Safety Risks](index=19&type=section&id=3.产品潜在的安全风险) Despite strict screening, removal, and virus inactivation measures during plasma collection and production, blood products theoretically still carry potential risks from unknown pathogens; the company will continuously improve its quality management system, enhance process levels, and strengthen control over all aspects to address this - Blood products use healthy human plasma as raw material; despite strict screening, removal, and virus inactivation measures, there may theoretically still be potential risks from certain unknown pathogens[66](index=66&type=chunk) - Countermeasures include continuously improving the quality management system, constantly enhancing process levels, and continuously optimizing the entire production chain's process management to ensure compliance in all production stages[66](index=66&type=chunk) [4. Risk of Intensifying Market Competition](index=19&type=section&id=4.市场竞争加剧风险) With increased market development efforts, improved production processes, and the emergence of gene recombination products within the industry, competition in the blood products market may intensify; the company will enhance its competitiveness by optimizing marketing strategies, exploring international markets, and increasing brand promotion - Increased market development efforts by industry players, improved production processes and purification levels, and the emergence of gene recombination technology applications may lead to intensified market competition for related products[67](index=67&type=chunk) - Countermeasures include continuously optimizing marketing strategies, actively exploring international markets, increasing the promotion of products such as human coagulation factor VIII and human prothrombin complex, and enhancing the company's product reputation[32](index=32&type=chunk)[67](index=67&type=chunk) [XI. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=19&type=section&id=十一、市值管理制度和估值提升计划的制定落实情况) The company has not disclosed whether it has formulated a market value management system or a valuation enhancement plan - The company has not disclosed whether it has formulated a market value management system[68](index=68&type=chunk) - The company has not disclosed whether it has released a valuation enhancement plan[68](index=68&type=chunk) [XII. Implementation of "Quality and Return Dual Improvement" Action Plan](index=19&type=section&id=十二、%22质量回报双提升%22行动方案贯彻落实情况) The company has not disclosed the "Quality and Return Dual Improvement" action plan announcement - The company has not disclosed the "Quality and Return Dual Improvement" action plan announcement[68](index=68&type=chunk) Section IV Corporate Governance, Environment, and Society This section details changes in the company's governance structure, profit distribution, employee incentives, environmental disclosures, and social responsibility initiatives [I. Changes in Directors, Supervisors, and Senior Management of the Company](index=20&type=section&id=一、公司董事、监事、高级管理人员变动情况) During the reporting period, there were no changes in the company's directors, supervisors, and senior management, with specific information available in the 2024 annual report - There were no changes in the company's directors, supervisors, and senior management during the reporting period[70](index=70&type=chunk) [II. Profit Distribution and Capital Reserve to Share Capital Conversion During This Reporting Period](index=20&type=section&id=二、本报告期利润分配及资本公积金转增股本情况) The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for this semi-annual period - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[71](index=71&type=chunk) [III. Implementation of Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures](index=20&type=section&id=三、公司股权激励计划、员工持股计划或其他员工激励措施的实施情况) The company's third phase employee stock ownership plan completed stock purchases on July 3, 2024, accumulating 787,000 shares, representing 0.35% of the total share capital, covering directors, supervisors, senior management, and key employees, funded by legal salaries and self-raised funds - The company implemented its third phase employee stock ownership plan, having cumulatively purchased **787,000 shares** of the company's stock through the secondary market as of July 3, 2024[72](index=72&type=chunk) - This stock ownership plan accounts for **0.35%** of the company's total share capital, covering directors, supervisors, senior management, and key employees of the company or its controlled subsidiaries[72](index=72&type=chunk) - Funds for the employee stock ownership plan originated from employees' legal salaries, self-raised funds, and other methods permitted by laws and regulations[72](index=72&type=chunk) [IV. Environmental Information Disclosure](index=21&type=section&id=四、环境信息披露情况) The company and its main subsidiaries, Shenzhen Weiguang Biological Products Co., Ltd. and Shenzhen Weiguang Life Science Park Development Co., Ltd., are both included in the list of enterprises required to disclose environmental information by law, and have publicly disclosed relevant reports on the Guangdong Provincial Department of Ecology and Environment system - The listed company and its main subsidiaries, Shenzhen Weiguang Biological Products Co., Ltd. and Shenzhen Weiguang Life Science Park Development Co., Ltd., are both included in the list of enterprises required to disclose environmental information by law[73](index=73&type=chunk) - Environmental information disclosure reports can be queried on the Guangdong Provincial Department of Ecology and Environment - Enterprise Environmental Information Disclosure System[73](index=73&type=chunk) [V. Social Responsibility](index=21&type=section&id=五、社会责任情况) The company actively fulfills its social responsibilities in customer service, product quality, employee rights, sustainable supply chain construction, and social welfare, demonstrating corporate responsibility through standardized customer service, strict quality management, employee development and welfare, optimized procurement management, and regular volunteer services and rural revitalization assistance - The company is customer-oriented, establishing customer service management procedures, resulting in high customer satisfaction[74](index=74&type=chunk) - The company has established an internal management system and quality assurance system covering the entire process of raw plasma collection to ensure product quality meets legal and regulatory requirements[74](index=74&type=chunk) - The company is committed to building a respectful, equal, and inclusive corporate culture, providing employees with diversified career development options and systematic learning resources, and organizing various cultural activities[74](index=74&type=chunk) - The company has established a procurement leadership group, implemented a procurement management system with checks and balances, and promoted the addition of new material suppliers to enhance material supply security[75](index=75&type=chunk)[76](index=76&type=chunk) - During the reporting period, the company's volunteer team grew to nearly **180 people**, with cumulative participation in volunteer activities exceeding **150 person-times**, and invested approximately **237,000 Yuan** to consolidate poverty alleviation achievements and support rural revitalization[76](index=76&type=chunk) Section V Significant Matters This section details significant events, commitments, related party transactions, and other important disclosures during the reporting period [I. Commitments Fulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company, and Commitments Overdue and Unfulfilled as of the End of the Reporting Period](index=23&type=section&id=一、公司实际控制人、股东、关联方、收购人以及公司等承诺相关方在报告期内履行完毕及截至报告期末超期未履行完毕的承诺事项) During the reporting period, there were no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company that were fulfilled or overdue and unfulfilled as of the end of the reporting period - During the reporting period, there were no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company that were fulfilled or overdue and unfulfilled as of the end of the reporting period[78](index=78&type=chunk) [II. Non-operating Funds Occupied by Controlling Shareholders and Other Related Parties of the Listed Company](index=23&type=section&id=二、控股股东及其他关联方对上市公司的非经营性占用资金情况) During the reporting period, there were no non-operating funds occupied by controlling shareholders and other related parties of the listed company - During the reporting period, there were no non-operating funds occupied by controlling shareholders and other related parties of the listed company[79](index=79&type=chunk) [III. Irregular External Guarantees](index=23&type=section&id=三、违规对外担保情况) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[80](index=80&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=23&type=section&id=四、聘任、解聘会计师事务所情况) The company's semi-annual financial report was unaudited - The company's semi-annual report was unaudited[81](index=81&type=chunk) [V. Explanations by the Board of Directors and Supervisory Board on the Accounting Firm's "Non-Standard Audit Report" for This Reporting Period](index=23&type=section&id=五、董事会、监事会对会计师事务所本报告期%22非标准审计报告%22的说明) The company had no non-standard audit report during the reporting period, thus the board of directors and supervisory board do not need to provide explanations [VI. Explanations by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year](index=23&type=section&id=六、董事会对上年度%22非标准审计报告%22相关情况的说明) The company had no non-standard audit report during the reporting period, thus the board of directors does not need to provide explanations for the previous year [VII. Bankruptcy and Reorganization Matters](index=23&type=section&id=七、破产重整相关事项) The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[82](index=82&type=chunk) [VIII. Litigation Matters](index=23&type=section&id=八、诉讼事项) The company had no significant litigation, arbitration, or other litigation matters during this reporting period - The company had no significant litigation or arbitration matters during this reporting period[83](index=83&type=chunk) [IX. Penalties and Rectification](index=24&type=section&id=九、处罚及整改情况) The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[84](index=84&type=chunk) [X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=24&type=section&id=十、公司及其控股股东、实际控制人的诚信状况) During this reporting period, the company, its controlling shareholder, and actual controller did not fail to fulfill obligations determined by effective legal documents of the court or have large overdue debts, maintaining a good integrity status - During this reporting period, the company, its controlling shareholder, and actual controller did not fail to fulfill obligations determined by effective legal documents of the court or have large overdue debts, etc[85](index=85&type=chunk) [XI. Major Related Party Transactions](index=24&type=section&id=十一、重大关联交易) During the reporting period, the company had no significant related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, related party creditor-debtor relationships, nor did it engage in deposit, loan, credit, or other financial business with affiliated financial companies - The company had no significant related party transactions related to daily operations during the reporting period[86](index=86&type=chunk) - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[87](index=87&type=chunk) - The company had no related party creditor-debtor relationships during the reporting period[89](index=89&type=chunk) - The company had no deposit, loan, credit, or other financial business with affiliated financial companies that have related party relationships[90](index=90&type=chunk) [XII. Major Contracts and Their Performance](index=25&type=section&id=十二、重大合同及其履行情况) During the reporting period, the company had no trusteeship, contracting, major guarantees, entrusted wealth management, or other major contracts; its wholly-owned subsidiary signed a 10-year house lease contract with Shenzhen Medical Academy for Weiguang Life Science Park, covering an area of 42,425.01 square meters, with the profit or loss from this lease not exceeding 10% of the company's total profit for the reporting period - The company had no trusteeship, contracting, major guarantees, or entrusted wealth management during the reporting period[93](index=93&type=chunk)[94](index=94&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) - The company's wholly-owned subsidiary signed a house lease contract with Shenzhen Medical Academy for Weiguang Life Science Park, with a total leased area of **42,425.01 square meters** and a lease term of **10 years**[95](index=95&type=chunk) - The profit or loss generated by this lease project did not exceed **10%** of the company's total profit for the reporting period[95](index=95&type=chunk) [XIII. Explanation of Other Significant Matters](index=25&type=section&id=十三、其他重大事项的说明) During the reporting period, the company disclosed a series of important matters, including its 2024 annual profit distribution, obtaining medical device production record certificates, board re-election and senior management appointments, revisions to the Articles of Association and related systems, and the proposal for issuing A-shares to specific targets and related announcements - The company disclosed its 2024 annual profit distribution matters, including resolutions from the board of directors, supervisory board, and general meeting of shareholders[100](index=100&type=chunk) - The company obtained medical device production record certificates and issued relevant announcements[100](index=100&type=chunk) - The company completed the re-election of its board of directors and appointed senior management and other related personnel[100](index=100&type=chunk) - The company revised its "Articles of Association" and related systems[100](index=100&type=chunk) - The company disclosed the proposal for issuing A-shares to specific targets, dilution of immediate shareholder returns, compensatory measures, and commitments from relevant parties[100](index=100&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=26&type=section&id=十四、公司子公司重大事项) The company had no significant subsidiary matters during the reporting period - The company had no significant subsidiary matters during the reporting period[101](index=101&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 Capital Changes](index=27&type=section&id=一、股份变动情况) During the reporting period, the company's total share capital remained unchanged at 226,800,000 shares, with restricted shares totaling 787,000 shares (0.35% of total capital) and unrestricted shares at 226,013,000 shares (99.65% of total capital) Share Capital Changes | Share Type | Quantity Before Change (shares) | Proportion | Increase/Decrease in This Change (＋,－) | Quantity After Change (shares) | Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 787,000 | 0.35% | 0 | 787,000 | 0.35% | | II. Unrestricted Shares | 226,013,000 | 99.65% | 0 | 226,013,000 | 99.65% | | III. Total Shares | 226,800,000 | 100.00% | 0 | 226,800,000 | 100.00% | - During the reporting period, the company's total share capital remained unchanged[104](index=104&type=chunk) [II. Securities Issuance and Listing](index=28&type=section&id=二、证券发行与上市情况) The company had no securities issuance or listing during the reporting period - The company had no securities issuance or listing during the reporting period[104](index=104&type=chunk) [III. Number of Shareholders and Shareholding Structure](index=28&type=section&id=三、公司股东数量及持股情况) As of the end of the reporting period, the company had 12,584 common shareholders; Shenzhen Guangming District State-owned Assets Supervision and Administration Commission is the controlling shareholder with a 65.25% stake; among the top ten shareholders, Wuhan Institute of Biological Products Co., Ltd. holds 7.25%, and the company's third phase employee stock ownership plan holds 0.35% of shares - Total number of common shareholders at the end of the reporting period: **12,584**[105](index=105&type=chunk) Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at Period-End (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | | Shenzhen Guangming District State-owned Assets Supervision and Administration Commission | State-owned Legal Person | 65.25% | 147,987,000 | 147,987,000 | | Wuhan Institute of Biological Products Co., Ltd. | State-owned Legal Person | 7.25% | 16,443,000 | 16,443,000 | | Guangzhou Jiahe Biotechnology Co., Ltd. | Domestic Non-state-owned Legal Person | 2.26% | 5,133,736 | 5,133,736 | | Shenzhen Weiguang Biological Products Co., Ltd. - Third Phase Employee Stock Ownership Plan | Other | 0.35% | 787,000 | 0 | - Company shareholder Xu Yongming holds **810,000 shares** of the company through a credit trading margin securities account[107](index=107&type=chunk) [IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=30&type=section&id=四、董事、监事和高级管理人员持股变动) The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period, with specific information available in the 2024 annual report - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period[108](index=108&type=chunk) [V. Changes in Controlling Shareholder or Actual Controller](index=30&type=section&id=五、控股股东或实际控制人变更情况) The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[109](index=109&type=chunk) - The company's actual controller remained unchanged during the reporting period[109](index=109&type=chunk) [VI. Preferred Shares Information](index=31&type=section&id=六、优先股相关情况) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[111](index=111&type=chunk) Section VII Bond-Related Information This section provides an overview of the company's bond-related activities during the reporting period [Overview of Bond-Related Information](index=32&type=section&id=债券相关情况概述) The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[113](index=113&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 owners' equity, along with notes on accounting policies, taxes, and other financial details [I. Audit Report](index=33&type=section&id=一、审计报告) The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[115](index=115&type=chunk) [II. Financial Statements](index=33&type=section&id=二、财务报表) This chapter provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the company's financial position at the end of the reporting period, operating results, and cash flow during the reporting period - 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[116](index=116&type=chunk)[120](index=120&type=chunk)[125](index=125&type=chunk)[128](index=128&type=chunk)[130](index=130&type=chunk)[132](index=132&type=chunk)[134](index=134&type=chunk)[142](index=142&type=chunk) [1、Consolidated Balance Sheet](index=33&type=section&id=1、合并资产负债表) As of June 30, 2025, the company's consolidated total assets were 3,342,456,527.36 Yuan, with total current assets of 1,327,810,838.89 Yuan and total non-current assets of 2,014,645,688.47 Yuan; total liabilities were 1,036,006,564.53 Yuan, and total owners' equity was 2,306,449,962.83 Yuan Consolidated Balance Sheet Key Data | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Current Assets | 1,327,810,838.89 | 1,527,590,386.50 | | Total Non-Current Assets | 2,014,645,688.47 | 1,769,853,846.69 | | Total Assets | 3,342,456,527.36 | 3,297,444,233.19 | | Total Current Liabilities | 455,320,366.33 | 422,753,404.48 | | Total Non-Current Liabilities | 580,686,198.20 | 630,454,363.54 | | Total Liabilities | 1,036,006,564.53 | 1,053,207,768.02 | | Total Owners' Equity Attributable to Parent Company | 2,273,711,676.61 | 2,211,425,331.14 | | Total Owners' Equity | 2,306,449,962.83 | 2,244,236,465.17 | [2、Parent Company Balance Sheet](index=35&type=section&id=2、母公司资产负债表) As of June 30, 2025, the parent company's total assets were 3,240,224,234.46 Yuan, with total current assets of 1,315,101,853.46 Yuan and total non-current assets of 1,925,122,381.00 Yuan; total liabilities were 953,637,264.95 Yuan, and total owners' equity was 2,286,586,969.51 Yuan Parent Company Balance Sheet Key Data | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Current Assets | 1,315,101,853.46 | 1,494,192,401.66 | | Total Non-Current Assets | 1,925,122,381.00 | 1,676,520,578.15 | | Total Assets | 3,240,224,234.46 | 3,170,712,979.81 | | Total Current Liabilities | 406,064,093.39 | 344,609,987.07 | | Total Non-Current Liabilities | 547,573,171.56 | 597,365,461.61 | | Total Liabilities | 953,637,264.95 | 941,975,448.68 | | Total Owners' Equity | 2,286,586,969.51 | 2,228,737,531.13 | [3、Consolidated Income Statement](index=38&type=section&id=3、合并利润表) For the first half of 2025, the company achieved total operating revenue of 518,095,318.12 Yuan, a slight year-on-year decrease; net profit was 107,575,098.85 Yuan, net profit attributable to parent company shareholders was 107,646,345.47 Yuan, and basic earnings per share was 0.4746 Yuan Consolidated Income Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 518,095,318.12 | 522,902,745.97 | | Total Operating Costs | 382,125,542.04 | 392,463,709.82 | | Operating Profit | 128,624,117.48 | 131,796,653.83 | | Total Profit | 128,227,907.74 | 131,335,735.48 | | Net Profit | 107,575,098.85 | 109,727,347.83 | | Net Profit Attributable to Parent Company Shareholders | 107,646,345.47 | 109,861,719.65 | | Basic Earnings Per Share (Yuan/share) | 0.4746 | 0.4844 | | Diluted Earnings Per Share (Yuan/share) | 0.4746 | 0.4844 | [4、Parent Company Income Statement](index=40&type=section&id=4、母公司利润表) For the first half of 2025, the parent company achieved operating revenue of 508,480,211.70 Yuan, with net profit of 103,209,438.38 Yuan, a slight year-on-year decrease Parent Company Income Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Operating Revenue | 508,480,211.70 | 504,689,635.75 | | Operating Profit | 121,605,977.91 | 126,384,169.62 | | Total Profit | 121,284,240.63 | 126,237,962.56 | | Net Profit | 103,209,438.38 | 107,511,374.05 | [5、Consolidated Cash Flow Statement](index=41&type=section&id=5、合并现金流量表) For the first half of 2025, the company's net cash flow from operating activities was 39,591,374.04 Yuan, a significant year-on-year decrease of 48.09%; net cash flow from investing activities was -153,018,179.46 Yuan, net cash flow from financing activities was -25,351,345.14 Yuan, and the net increase in cash and cash equivalents was -138,778,150.56 Yuan Consolidated Cash Flow Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 39,591,374.04 | 76,273,713.83 | | Net Cash Flow from Investing Activities | -153,018,179.46 | -152,040,777.06 | | Net Cash Flow from Financing Activities | -25,351,345.14 | 129,515,409.79 | | Net Increase in Cash and Cash Equivalents | -138,778,150.56 | 53,748,346.56 | | Period-End Cash and Cash Equivalents Balance | 135,952,286.50 | 305,194,028.07 | [6、Parent Company Cash Flow Statement](index=42&type=section&id=6、母公司现金流量表) For the first half of 2025, the parent company's net cash flow from operating activities was 31,432,002.58 Yuan, net cash flow from investing activities was -147,934,278.93 Yuan, net cash flow from financing activities was -24,727,645.14 Yuan, and the net increase in cash and cash equivalents was -141,229,921.49 Yuan Parent Company Cash Flow Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 31,432,002.58 | 52,489,423.47 | | Net Cash Flow from Investing Activities | -147,934,278.93 | -151,815,528.83 | | Net Cash Flow from Financing Activities | -24,727,645.14 | 140,035,159.79 | | Net Increase in Cash and Cash Equivalents | -141,229,921.49 | 40,709,054.43 | | Period-End Cash and Cash Equivalents Balance | 65,505,326.85 | 191,870,770.75 | [7、Consolidated Statement of Changes in Owners' Equity](index=43&type=section&id=7、合并所有者权益变动表) As of June 30, 2025, the company's consolidated owners' equity totaled 2,306,449,962.83 Yuan, an increase of 62,213,497.66 Yuan from the beginning of the period, primarily due to an increase in total comprehensive income and a decrease in profit distribution during the current period - Total comprehensive income attributable to parent company owners for the current period was **107,646,345.47 Yuan**[136](index=136&type=chunk) - Distribution to owners (or shareholders) for the current period was **45,360,000.00 Yuan**[137](index=137&type=chunk) - Total owners' equity attributable to parent company at period-end was **2,273,711,676.61 Yuan**[137](index=137&type=chunk) [8、Parent Company Statement of Changes in Owners' Equity](index=48&type=section&id=8、母公司所有者权益变动表) As of June 30, 2025, the parent company's total owners' equity was 2,286,586,969.51 Yuan, an increase of 57,849,438.38 Yuan from the beginning of the period, primarily due to an increase in total comprehensive income and a decrease in profit distribution during the current period - Total comprehensive income for the current period was **103,209,438.38 Yuan**[143](index=143&type=chunk) - Distribution to owners (or shareholders) for the current period was **45,360,000.00 Yuan**[144](index=144&type=chunk) - Total owners' equity at period-end was **2,286,586,969.51 Yuan**[144](index=144&type=chunk) [III. Company Basic Information](index=51&type=section&id=三、公司基本情况) Shenzhen Weiguang Biological Products Co., Ltd. was listed on the Shenzhen Stock Exchange in June 2017, with a registered capital of 226.8 million Yuan; the company's main business is pharmaceutical manufacturing, producing and operating blood products, while some subsidiaries engage in investment management, property leasing, and gene engineering drugs/vaccine manufacturing - Shenzhen Weiguang Biological Products Co., Ltd. was listed and traded on the Shenzhen Stock Exchange on June 16, 2017[149](index=149&type=chunk) - The company's registered capital is **226.8 million Yuan**, and its legal representative is Zhang Zhan[149](index=149&type=chunk) - The company operates in the pharmaceutical manufacturing industry, producing and operating blood products, with some subsidiaries engaged in investment management, property leasing, and gene engineering drugs and vaccine manufacturing businesses[149](index=149&type=chunk) [IV. Basis for Preparation of Financial Statements](index=51&type=section&id=四、财务报表的编制基础) The company's financial statements are prepared on a going concern basis, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and significant accounting policies and estimates; the company possesses the ability to continue as a going concern for at least 12 months from the end of the reporting period, with no significant matters affecting this ability - The company's financial statements are prepared on a going concern basis, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance, based on actual transactions and events[151](index=151&type=chunk) - The company possesses the ability to continue as a going concern for at least 12 months from the end of the reporting period, with no significant matters affecting this ability[152](index=152&type=chunk) [V. Significant Accounting Policies and Accounting Estimates](index=52&type=section&id=五、重要会计政策及会计估计) This chapter details the company's specific accounting policies and estimates for bad debt provisions for receivables, depreciation of fixed assets, amortization of intangible assets, and capitalization of R&D expenses; the company adheres to enterprise accounting standards, uses the calendar year as its accounting period, and considers a 12-month period as its normal operating cycle, with no significant changes in accounting policies or estimates during the reporting period - The financial statements prepared by the company comply with the requirements of the "Enterprise Accounting Standards" and truly and completely reflect the financial position, operating results, and cash flows, among other relevant information[154](index=154&type=chunk) - The company's accounting year is the calendar year, with a 12-month period considered as its normal operating cycle, and RMB as the functional currency[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - The company had no significant changes in accounting policies or significant changes in accounting estimates during the reporting period[214](index=214&type=chunk) [VI. Taxes](index=65&type=section&id=六、税项) The company's main taxes include urban maintenance and construction tax, enterprise income tax, and value-added tax, subject to different rates; the company and some subsidiaries enjoy simplified VAT collection policies and preferential enterprise income tax rates due to high-tech enterprise certification and small-profit enterprise conditions Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Urban Maintenance and Construction Tax | Payable Turnover Tax Amount | 7%, 5% | | Enterprise Income Tax | Taxable Income | 15%, 20%, 25% | | Value-Added Tax | Current Sales Amount | 3% | | Value-Added Tax | Value Added from Sales of Goods or Services | 6%, 9%, 13% | - The company and 9 subsidiaries have been calculating and paying VAT at a simplified rate of **3%** since July 1, 2014[216](index=216&type=chunk) - The company was recognized as a national high-tech enterprise on December 25, 2023, and will pay enterprise income tax at a reduced rate of **15%** from January 1, 2023, to December 31, 2025[217](index=217&type=chunk)[218](index=218&type=chunk) - Some subsidiaries meeting the conditions for small-profit enterprises actually pay enterprise income tax at a rate of **5%**[218](index=218&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=66&type=section&id=七、合并财务报表项目注释) This chapter provides detailed disclosures of the period-end balances, period-beginning balances, and current period changes for each major item in the consolidated financial statements, including assets, liabilities, owners' equity, income, costs, expenses, and profits, with explanations for significant changes - Monetary funds period-end balance was **135,985,076.18 Yuan**, period-beginning balance was **274,763,226.74 Yuan**, mainly due to reclassification from purchasing large-denomination deposits with monetary funds[220](index=220&type=chunk) - Accounts receivable period-end balance was **170,043,461.98 Yuan**, period-beginning balance was **132,861,636.40 Yuan**, with bad debt provision of **13,663,816.75 Yuan** recognized in the current period[238](index=238&type=chunk)[247](index=247&type=chunk) - Inventory period-end balance was **898,157,234.32 Yuan**, period-beginning balance was **793,462,099.62 Yuan**, mainly due to an increase in finished goods[292](index=292&type=chunk) - Other non-current assets period-end balance was **260,413,085.29 Yuan**, period-beginning bal

云南白药集团股份有限公司 2025 年半年度报告全文 云南白药集团股份有限公司 2025 年半年度报告 2025 年 08 月 云南白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。 公司负责人董明、主管会计工作负责人马加及会计机构负责人（会计主管 人员）徐静声明：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。 本公司请投资者认真阅读本年度报告全文，并特别注意报告第三节"管理 层讨论与分析"第十部分"公司面临的风险和应对措施"，敬请投资者注意投 资风险。 公司经本次董事会审议通过的利润分配预案为：以 1,784,262,603 股为基 数，向全体股东每 10 股派发现金红利 10.19 元（含税），送红股 0 股（含税）， 不以公积金转增股本。 1 | 第一节 | 重要提示、目录和释义 | 1 | | --- | --- | --- | | 第二节 | 公司简介和主要财务指标 | ...

[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility, and the company plans no cash dividends, bonus shares, or capital increase from the capital reserve - The Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility[3](index=3&type=chunk) - The company's responsible person Kang Lu, head of accounting Quan Dongyan, and head of accounting department Lan Lin declare the financial report is true, accurate, and complete[3](index=3&type=chunk) - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) This section lists the structured table of contents for the semi-annual report, covering company operations, finance, governance, and significant matters - The report comprises eight main chapters, covering comprehensive information on company operations, finance, governance, and significant matters[6](index=6&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, including the company name, reporting period, currency units, and key IT concepts - The "Reporting Period" refers to January 1, 2025, to June 30, 2025[13](index=13&type=chunk) - Key information technology terms such as IT, cloud computing, blockchain, big data, and BaaS are defined in the report[13](index=13&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) [Company Basic Information](index=6&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E4%BF%A1%E6%81%AF) The company's stock abbreviation is "Xinchen Technology" (stock code 300542), listed on the Shenzhen Stock Exchange, with no changes in registered address or contact information during the reporting period Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Xinchen Technology | | Stock Code | 300542 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Kang Lu | | Board Secretary | Wei Feng | - The company's registered address, office address, website, and email address remained unchanged during the reporting period[17](index=17&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) During the reporting period, the company's operating revenue increased by 9.28%, net loss attributable to shareholders narrowed by 9.25%, and net cash flow from operating activities improved by 20.64%, while total assets and net assets attributable to shareholders decreased Key Accounting Data and Financial Indicators (Current Period vs. Prior Year) | Indicator | Current Period (million Yuan) | Prior Year (million Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 460.23 | 421.16 | 9.28% | | Net Profit Attributable to Shareholders of Listed Company | -12.99 | -14.31 | 9.25% | | Net Profit Attributable to Shareholders of Listed Company After Non-Recurring Gains and Losses | -14.28 | -23.54 | 39.33% | | Net Cash Flow from Operating Activities | -246.67 | -310.82 | 20.64% | | Basic Earnings Per Share (Yuan/share) | -0.04 | -0.05 | 20.00% | | Diluted Earnings Per Share (Yuan/share) | -0.04 | -0.05 | 20.00% | | Weighted Average Return on Net Assets | -2.33% | -2.23% | -0.10% | Key Accounting Data and Financial Indicators (Period-End vs. Prior Year-End) | Indicator | Current Period-End (billion Yuan) | Prior Year-End (billion Yuan) | Period-End vs. Prior Year-End Change | | :--- | :--- | :--- | :--- | | Total Assets | 1.17 | 1.38 | -15.12% | | Net Assets Attributable to Shareholders of Listed Company | 0.55 | 0.56 | -2.30% | [Non-Recurring Gains and Losses](index=7&type=section&id=%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A) The company's non-recurring gains and losses totaled 1.29 million Yuan during the reporting period, primarily from government subsidies, other non-operating income and expenses, and individual income tax handling fee refunds Non-Recurring Gains and Losses Items and Amounts | Item | Amount (million Yuan) | Explanation | | :--- | :--- | :--- | | Government Grants Included in Current Profit or Loss | 0.95 | Employment stabilization subsidies, disability employment management subsidies, project amortization, etc | | Other Non-Operating Income and Expenses Apart from the Above | 0.08 | - | | Other Profit and Loss Items Meeting the Definition of Non-Recurring Gains and Losses | 0.43 | Individual income tax handling fee refunds, etc | | Less: Income Tax Impact | 0.17 | - | | Impact on Minority Interests (After Tax) | 0.00 | - | | Total | 1.29 | - | [Management Discussion and Analysis](index=9&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) [Company's Main Business](index=9&type=section&id=%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company primarily serves the financial industry, offering software development, system integration, and professional technical services, with stable operations driven by long-term and new customer development, and new business expansion - The company's main business remains unchanged, primarily providing information technology solutions and services to industries such as finance, air traffic control, military, and public security[27](index=27&type=chunk) - The company's profit model centers on proprietary software, offering business application software development, system integration, and technical support services[31](index=31&type=chunk) - In the first half of 2025, China's software industry performed well, with software business revenue growing by **11.9%** and total profits by **12.0%** year-on-year[38](index=38&type=chunk) [Business Composition and Products](index=9&type=section&id=%E4%B8%9A%E5%8A%A1%E6%9E%84%E6%88%90%E4%B8%8E%E4%BA%A7%E5%93%81) The company offers software development, system integration, and professional technical services, including electronic channels, trade finance, blockchain BaaS, and IT infrastructure solutions - Software development business covers core products such as electronic channels and channel integration cloud platforms, trade finance settlement systems, transaction banking systems, blockchain BaaS platforms, and big data platforms[28](index=28&type=chunk) - System integration business provides full lifecycle services for IT infrastructure construction, including data center planning, design consulting, and hardware/software selection and deployment[29](index=29&type=chunk) - Professional technical services, based on software development and system integration, provide customers with technical support and operation and maintenance services[30](index=30&type=chunk) [Business Model](index=9&type=section&id=%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company's profit model is centered on proprietary software, offering development, integration, and support services, with strict procurement, customized production, and direct/partner marketing - The company's profit model involves providing business application software development, project implementation, system integration, and consulting services, centered on proprietary software[31](index=31&type=chunk) - The procurement model establishes strict supplier management systems and procurement processes, adhering to the principle of competitive negotiation[32](index=32&type=chunk) - The production model focuses on proprietary intellectual property software products, with customized application development and deployment based on client requirements[33](index=33&type=chunk) [Performance Drivers and Industry Analysis](index=10&type=section&id=%E4%B8%9A%E7%BB%A9%E9%A9%B1%E5%8A%A8%E5%9B%A0%E7%B4%A0%E4%B8%8E%E8%A1%8C%E4%B8%9A%E5%88%86%E6%9E%90) Performance is driven by continuous service to long-term clients, new client acquisition, and business expansion, with the software industry showing robust growth and the company experiencing seasonal revenue patterns - The company's performance is primarily driven by continuous services to long-term clients, new client development, and new business expansion[35](index=35&type=chunk) - In the first half of 2025, China's software business revenue reached **7.06 trillion Yuan**, growing by **11.9%** year-on-year, with total profits of **858.1 billion Yuan**, up **12.0%**[38](index=38&type=chunk) - The company's operating performance exhibits seasonality, with a significantly higher proportion of operating revenue and net profit in the second half of the year compared to the first half[40](index=40&type=chunk) [Core Competencies](index=11&type=section&id=%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B) The company's core strengths lie in continuous R&D and technological innovation, particularly in AI, blockchain, big data, and cloud computing, supported by strong client relationships, industry experience, a stable team, and a national strategic layout - The company is continuously committed to tracking research and application promotion in new technology fields such as artificial intelligence, blockchain, big data, and cloud computing, especially in finance and low-altitude economy[42](index=42&type=chunk) - The company has accumulated a high-quality client base primarily in the banking sector, and possesses nearly two decades of experience in information system construction within the air traffic control industry[45](index=45&type=chunk) - The company boasts a composite talent pool of nearly **2,000** professionals proficient in IT technology and financial business, with R&D, technical, and project implementation personnel accounting for over **80%** of the total workforce[47](index=47&type=chunk) [R&D and Technological Innovation](index=11&type=section&id=%E7%A0%94%E5%8F%91%E4%B8%8E%E6%8A%80%E6%9C%AF%E5%88%9B%E6%96%B0) The company invests heavily in AI, blockchain, big data, and cloud computing, applying these technologies to financial IT solutions and expanding into low-altitude air traffic control - The company continuously increases R&D investment in blockchain, actively tracks AI and blockchain technologies and products, and implements innovative applications[42](index=42&type=chunk) - The company's blockchain service platform products cover areas such as infrastructure docking, network monitoring, national cryptographic security, and smart contract management, providing solutions for finance and the low-altitude economy[43](index=43&type=chunk) - The company actively promotes the transfer of new technology R&D achievements from the financial sector to low-altitude air traffic control, deeply integrating cutting-edge technologies like big data and artificial intelligence[44](index=44&type=chunk) [Clients and Industry Experience](index=12&type=section&id=%E5%AE%A2%E6%88%B7%E4%B8%8E%E8%A1%8C%E4%B8%9A%E7%BB%8F%E9%AA%8C) The company has cultivated a comprehensive, high-quality client base across the financial sector, including various banks and insurance institutions, and possesses nearly two decades of experience in the air traffic control industry - The company has accumulated high-quality large and medium-sized enterprise clients, primarily in the banking sector, also involving insurance and bond fields[45](index=45&type=chunk) - The company possesses nearly two decades of experience in information system construction within the air traffic control industry, accumulating extensive practical experience in building and maintaining large, complex systems across regions and institutions nationwide[46](index=46&type=chunk) [Team and Strategic Layout](index=12&type=section&id=%E5%9B%A2%E9%98%9F%E4%B8%8E%E6%88%98%E7%95%A5%E5%B8%83%E5%B1%80) The company has a composite talent pool with over 80% R&D and technical staff, a nationwide marketing and service network, and long-term partnerships with leading domestic and international vendors - The company boasts a composite talent pool of nearly **2,000** professionals proficient in IT technology and financial business, with R&D, technical, and project implementation personnel accounting for over **80%** of the total workforce[47](index=47&type=chunk) - The company has established a nationwide marketing and service network, comprising **9** subsidiaries and **11** branches[49](index=49&type=chunk) - The company maintains long-term friendly cooperative relationships with renowned domestic and international product suppliers such as Huawei, H3C, Lenovo, Inspur, CISCO, IBM, and Oracle[50](index=50&type=chunk) [Main Business Operations Analysis](index=13&type=section&id=%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E7%BB%8F%E8%90%A5%E5%88%86%E6%9E%90) In the first half of 2025, the company saw a 9.28% increase in total operating revenue, a significant narrowing of operating loss, and positive developments in core financial clients, international settlement, and low-altitude economy, alongside increased R&D investment Key Financial Data for H1 2025 | Indicator | Amount (million Yuan) | YoY Change | | :--- | :--- | :--- | | Total Operating Revenue | 460.23 | 9.28% | | Operating Profit | -2.34 | Loss narrowed by 78.86% | | Net Profit Attributable to Parent Company Common Shareholders | -12.99 | Loss narrowed by 9.25% | | Net Profit Attributable to Parent Company Common Shareholders After Non-Recurring Gains and Losses | -14.28 | Loss narrowed by 39.33% | - The company completed multiple core system functional upgrades for Postal Savings Bank of China and implemented network localization and independent financial technology innovation projects for China CITIC Bank[52](index=52&type=chunk) - In the low-altitude economy sector, the company successfully implemented the Changchun "Low-Altitude Intelligent Network" project and deployed the Shandong Province "Airspace Declaration System"[54](index=54&type=chunk) [Business Progress](index=13&type=section&id=%E4%B8%9A%E5%8A%A1%E8%BF%9B%E5%B1%95) The company achieved significant progress in core client system upgrades, international settlement projects, low-altitude economy initiatives, and innovation in AI large models, blockchain, and privacy computing - The company completed functional upgrades and supporting development for key core systems at Postal Savings Bank of China, including electronic channels, enterprise channels, remote banking systems, and credit card intelligent customer service systems[52](index=52&type=chunk) - China CITIC Bank implemented a Cisco equipment replacement project, a significant milestone in client network localization, and also deployed green low-carbon financial platforms and treasury cloud service platforms[52](index=52&type=chunk) - The company's large model application platform, developed based on open-source models, has been successfully applied in various business scenarios, including intelligent outbound calls, intelligent coaching, intelligent knowledge bases, intelligent assistants, and intelligent marketing[55](index=55&type=chunk) [Financial Data Fluctuation Analysis](index=14&type=section&id=%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E5%8F%98%E5%8A%A8%E5%88%86%E6%9E%90) Operating revenue increased by 9.28%, while financial expenses decreased by 46.43% due to reduced bank loan interest, and income tax expenses rose by 208.17% from higher current tax Key Financial Data Year-on-Year Changes | Indicator | Current Period (million Yuan) | Prior Year (million Yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 460.23 | 421.16 | 9.28% | No significant change | | Financial Expenses | 2.96 | 5.53 | -46.43% | Decrease in bank loan interest expenses | | Income Tax Expenses | 11.25 | 3.65 | 208.17% | Increase in current income tax expenses | | Net Cash Flow from Investing Activities | -20.26 | -38.07 | 46.78% | Prior period payment of final installment for subsidiary equity acquisition | | Net Cash Flow from Financing Activities | 57.46 | 85.44 | -32.75% | Decrease in new loans in current period | Revenue and Gross Margin Changes by Product or Service | Product or Service | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | | System Integration | 47.97% | 39.69% | 5.14% | | Software Development | 11.20% | 10.46% | 0.54% | | Professional Technical Services | -33.57% | -36.79% | 3.73% | - The increase in system integration business revenue was primarily due to increased revenue recognition from such services[62](index=62&type=chunk) [Non-Core Business Analysis](index=16&type=section&id=%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 primarily included income from wealth management products, impairment provisions for contract assets, project termination funds, fixed asset disposal losses, and government subsidies Non-Core Business Items and Amounts | Item | Amount (million Yuan) | Share of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Investment Income | 0.14 | -6.12% | Income from wealth management products | | Asset Impairment | -0.23 | 10.21% | Provision for bad debts on contract assets | | Non-Operating Income | 0.19 | -8.36% | Funds not required to be returned due to project termination | | Other Income | 1.09 | -48.02% | Government grants, individual income tax refunds, etc | | Credit Impairment Losses | 6.07 | -268.26% | Provision for bad debts on accounts receivable and other receivables | [Asset and Liability Status Analysis](index=16&type=section&id=%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, both total assets and net assets attributable to shareholders decreased, with notable reductions in monetary funds, accounts payable, and contract liabilities, while trading financial assets, short-term borrowings, and prepayments increased Significant Changes in Asset Composition | Item | Current Period-End Amount (million Yuan) | Share of Total Assets | Prior Year-End Amount (million Yuan) | Share of Total Assets | Proportion Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 289.18 | 24.71% | 512.92 | 37.20% | -12.49% | Increase in payments to suppliers | | Total Assets | 1170.41 | 100.00% | 1378.88 | 100.00% | -15.12% | - | | Net Assets Attributable to Shareholders of Listed Company | 551.01 | 47.08% | 564.00 | 40.90% | -2.30% | - | | Short-Term Borrowings | 282.58 | 24.14% | 220.26 | 15.97% | 8.17% | No significant change | | Contract Liabilities | 65.02 | 5.56% | 107.46 | 7.79% | -2.23% | Revenue recognized for projects meeting recognition conditions | | Trading Financial Assets | 25.00 | 2.14% | 5.00 | 0.36% | 1.78% | Increase in subsidiary bank wealth management | - At the end of the reporting period, **19.37 million Yuan** of the company's monetary funds were restricted, primarily as guarantees for bills and letters of guarantee[71](index=71&type=chunk) [Investment Status Analysis](index=18&type=section&id=%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company's primary investment activity during the reporting period was an increase in bank wealth management products, with no use of raised funds, significant equity or non-equity investments, derivative investments, or entrusted loans Financial Assets Measured at Fair Value | Asset Category | Period-End Amount (million Yuan) | Source of Funds | | :--- | :--- | :--- | | Other (Bank Wealth Management Products) | 25.00 | Own funds | Overview of Entrusted Wealth Management | Specific Type | Amount of Entrusted Wealth Management (million Yuan) | Unmatured Balance (million Yuan) | | :--- | :--- | :--- | | Bank Wealth Management Products | 25.00 | 25.00 | - The company had no use of raised funds, no derivative investments, and no entrusted loans during the reporting period[74](index=74&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) [Analysis of Major Holding and Participating Companies](index=19&type=section&id=%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) The company lists nine major subsidiaries, primarily engaged in computer software and hardware development, sales, and technical services, with their financial data disclosed - The company owns **9** major subsidiaries, including Beijing Xinchen Technology Development Co., Ltd., Shanghai Xinchen Information Integration System Co., Ltd., and Jiangsu Xinchen Information Technology Development Co., Ltd[81](index=81&type=chunk) - The main businesses of these subsidiaries are providing information technology solutions and services to key industries, or computer software and hardware development and sales, and technical services[81](index=81&type=chunk) Financial Data of Selected Subsidiaries (H1 2025) | Company Name | Operating Revenue (million Yuan) | Net Profit (million Yuan) | | :--- | :--- | :--- | | Beijing Xinchen Technology Development Co., Ltd. | 4.54 | 1.36 | | Shanghai Xinchen Information Integration System Co., Ltd. | 31.19 | 3.40 | | Jiangsu Xinchen Information Technology Development Co., Ltd. | 55.99 | 4.02 | | Beijing Ruideyin Information Technology Co., Ltd. | 7.48 | 1.66 | [Risks Faced by the Company and Countermeasures](index=20&type=section&id=%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 intensified market competition, rising labor costs, high customer concentration, and rapid technological iteration, which it addresses through continuous innovation, team optimization, new client development, and increased R&D - The company faces the risk of intensified market competition, which it addresses by continuously enhancing technological innovation and marketing capabilities[83](index=83&type=chunk) - Rising labor costs pose a risk to the company, which it mitigates by optimizing the technical team structure and establishing talent bases[84](index=84&type=chunk) - High customer concentration is a risk, and the company enhances its sustainable development capabilities by continuously tracking new technologies, developing new businesses, and expanding its client base[85](index=85&type=chunk) - Rapid technological iteration is a challenge, and the company will closely follow industry trends, continuously increase R&D investment, and strengthen its professional talent team[86](index=86&type=chunk) [Investor Relations Activities](index=21&type=section&id=%E6%8A%95%E8%B5%84%E8%80%85%E5%85%B3%E7%B3%BB%E6%B4%BB%E5%8A%A8) During the reporting period, the company hosted on-site surveys for institutions like Fengyan Fund and Hanzhang Fund, and participated in the 2024 annual performance briefing to communicate with investors - On March 3, 2025, the company hosted on-site surveys for institutions including Fengyan Fund and Hanzhang Fund[87](index=87&type=chunk) - On May 9, 2025, the company participated in the 2024 annual performance briefing via the Panorama Network "Investor Relations Interactive Platform"[87](index=87&type=chunk) [Corporate Governance, Environment, and Society](index=22&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) [Changes in Directors, Supervisors, and Senior Management](index=22&type=section&id=%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) During the reporting period, Vice General Manager Xin Liang resigned for personal reasons, and Supervisor Board Chairman Fang Zhe, Supervisor Tang Ruomei, and Employee Representative Supervisor Zeng Yan resigned due to job reassignments Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Xin Liang | Vice General Manager | Resignation | May 09, 2025 | Personal reasons | | Fang Zhe | Chairman of the Supervisory Board | Resignation | August 08, 2025 | Job reassignment | | Tang Ruomei | Supervisor | Resignation | August 08, 2025 | Job reassignment | | Zeng Yan | Employee Representative Supervisor | Resignation | August 08, 2025 | Job reassignment | [Profit Distribution and Incentive Plans](index=22&type=section&id=%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E4%B8%8E%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92) The company plans no semi-annual cash dividends, bonus shares, or capital increase from capital reserves, and had no equity incentive or employee stock ownership plans in effect during the reporting period - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[91](index=91&type=chunk) - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[92](index=92&type=chunk) [Environmental and Social Responsibility](index=22&type=section&id=%E7%8E%AF%E5%A2%83%E4%B8%8E%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB) The company actively fulfills its social responsibilities through transparent information disclosure, employee welfare, and legal operations, contributing to local economic development - The company strictly adheres to laws and regulations for information disclosure and facilitates communication channels with investors through various means[93](index=93&type=chunk) - The company adheres to a people-oriented talent philosophy, respects and protects employee rights, focuses on employee health, safety, and satisfaction, and provides professional skills training[93](index=93&type=chunk) - The company operates legally, supporting local economic development through tax compliance and increased job creation[93](index=93&type=chunk) [Significant Matters](index=23&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) [Commitments](index=23&type=section&id=%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) During the reporting period, all commitments made by the company's actual controllers, shareholders, related parties, and acquirers were either fulfilled or had no overdue unfulfilled items - During the reporting period, there were no commitments made by the company's actual controllers, shareholders, related parties, acquirers, or the company itself that were either fulfilled or overdue and unfulfilled as of the end of the reporting period[95](index=95&type=chunk) [Fund Occupation and Guarantees](index=23&type=section&id=%E8%B5%84%E9%87%91%E5%8D%A0%E7%94%A8%E4%B8%8E%E6%8B%85%E4%BF%9D) During the reporting period, the company had no non-operating fund occupation by controlling shareholders or other related parties, nor any irregular external guarantees - During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the listed company[96](index=96&type=chunk) - The company had no irregular external guarantees during the reporting period[97](index=97&type=chunk) [Audit and Reorganization](index=23&type=section&id=%E5%AE%A1%E8%AE%A1%E4%B8%8E%E9%87%8D%E6%95%B4) The company's semi-annual financial report was unaudited, and no bankruptcy reorganization matters occurred during the reporting period - The company's semi-annual report was unaudited[98](index=98&type=chunk) - No bankruptcy reorganization matters occurred for the company during the reporting period[99](index=99&type=chunk) [Litigation Matters](index=23&type=section&id=%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company had no significant litigation or arbitration matters during the reporting period; other minor lawsuits totaling 0.84 million Yuan had no material impact on operations - The company had no significant litigation or arbitration matters during this reporting period[100](index=100&type=chunk) Summary of Other Litigation Matters | Basic Information on Litigation (Arbitration) | Amount Involved (million Yuan) | Whether Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | | :--- | :--- | :--- | :--- | :--- | | Summary of cases not meeting the disclosure standard for significant litigation (arbitration) | 0.84 | No | Some concluded, some pending | No significant impact on company operations | [Related Party Transactions](index=24&type=section&id=%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company had no related party transactions concerning daily operations, asset/equity acquisitions/disposals, joint external investments, or related party creditor/debtor relationships, but its legal representative, Kang Lu, provided multiple guarantees for bank credit lines - During the reporting period, the company had no related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, or related party creditor/debtor relationships[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) - The company's legal representative, Kang Lu, provided multiple joint liability guarantees for the company's credit applications with several banks, totaling over **900 million Yuan**[110](index=110&type=chunk)[530](index=530&type=chunk)[531](index=531&type=chunk)[532](index=532&type=chunk)[533](index=533&type=chunk)[534](index=534&type=chunk)[535](index=535&type=chunk)[536](index=536&type=chunk)[537](index=537&type=chunk) [Significant Contracts and Guarantees](index=25&type=section&id=%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E4%B8%8E%E6%8B%85%E4%BF%9D) The company had no entrustment, contracting, or leasing matters during the reporting period, but provided guarantees totaling 15 million Yuan for its subsidiary, Shanghai Xinchen Information Integration System Co., Ltd., representing 2.72% of the company's net assets - The company had no entrustment, contracting, or leasing situations during the reporting period[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) Company Guarantees for Subsidiaries | Guaranteed Entity Name | Announcement Date of Guarantee Limit | Guarantee Limit (million Yuan) | Actual Occurrence Date | Actual Guarantee Amount (million Yuan) | Guarantee Type | Guarantee Period | Whether Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Xinchen Information Integration System Co., Ltd. | August 27, 2024 | 30.00 | October 29, 2024 | 8.00 | Joint liability guarantee | 3 years | No | | Shanghai Xinchen Information Integration System Co., Ltd. | August 27, 2024 | 30.00 | November 20, 2024 | 7.00 | Joint liability guarantee | 3 years | No | - As of the end of the reporting period, the total actual guarantee balance for subsidiaries was **15 million Yuan**, accounting for **2.72%** of the company's net assets[116](index=116&type=chunk) [Other Significant Matters](index=26&type=section&id=%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) The company terminated its asset acquisition and fundraising transaction and its former Vice General Manager, Xin Liang, resigned for personal reasons - The company terminated the related party transaction involving issuing shares and paying cash to acquire assets, along with raising supporting funds[118](index=118&type=chunk) - Mr. Xin Liang, the company's former Vice General Manager, resigned from his position for personal reasons and will no longer hold any office in the company after his resignation[118](index=118&type=chunk) [Share Changes and Shareholder Information](index=27&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) [Share Fluctuation](index=27&type=section&id=%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, restricted shares decreased by 1,278,309, while unrestricted shares increased by the same amount, with the total share count remaining unchanged due to the unlocking of restricted shares for directors, supervisors, and senior management Share Fluctuation | Share Type | Quantity Before Change (Shares) | Change in Current Period (Shares) | Quantity After Change (Shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 52,174,604 | -1,278,309 | 50,896,295 | | II. Unrestricted Shares | 246,385,295 | 1,278,309 | 247,663,604 | | III. Total Shares | 298,559,899 | 0 | 298,559,899 | - Share changes primarily resulted from the unlocking of **25%** of the shares registered under the names of the company's directors, supervisors, and senior management on the last trading day of the previous year, as per regulations[122](index=122&type=chunk) [Shareholder Count and Shareholding](index=28&type=section&id=%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the end of the reporting period, the total number of common shareholders was 48,386, with Li Fuhua, Kang Lu, Zhang Yansheng, and Xu Lianping holding significant stakes among the top ten shareholders, and some of Zhang Yansheng's shares pledged - As of the end of the reporting period, the total number of common shareholders was **48,386**[127](index=127&type=chunk) Shareholding of Shareholders with 5% or More or Top 10 Shareholders | Shareholder Name | Shareholding Percentage | Shares Held at Period-End (Shares) | Change During Reporting Period (Shares) | Restricted Shares Held (Shares) | Unrestricted Shares Held (Shares) | Share Status | Quantity (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Li Fuhua | 13.61% | 40,636,950 | -999,000 | 0 | 40,636,950 | N/A | 0 | | Kang Lu | 12.16% | 36,309,150 | -998,600 | 27,980,812 | 8,328,338 | N/A | 0 | | Zhang Yansheng | 9.59% | 28,640,264 | -999,000 | 22,229,448 | 6,410,816 | Pledged | 5,020,000 | | Xu Lianping | 9.14% | 27,298,050 | -1,000,000 | 0 | 27,298,050 | N/A | 0 | [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=30&type=section&id=%E8%91%A3%E7%9B%91%E9%AB%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) During the reporting period, Chairman Kang Lu, Director and General Manager Zhang Yansheng, and Supervisor Tang Ruomei all reduced their shareholdings, while other directors, supervisors, and senior management had no changes or had already resigned Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Shares Held at Beginning of Period (Shares) | Shares Reduced in Current Period (Shares) | Shares Held at End of Period (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Kang Lu | Chairman | Current | 37,307,750 | 998,600 | 36,309,150 | | Zhang Yansheng | Director, General Manager | Current | 29,639,264 | 999,000 | 28,640,264 | | Tang Ruomei | Supervisor | Resigned | 511,675 | 50,000 | 461,675 | [Changes in Controlling Shareholder and Actual Controller](index=30&type=section&id=%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4) During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder did not change during the reporting period[130](index=130&type=chunk) - The company's actual controller did not change during the reporting period[130](index=130&type=chunk) [Bond-Related Information](index=31&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) [Bond-Related Information](index=31&type=section&id=%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[133](index=133&type=chunk) [Financial Report](index=32&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) [Audit Report](index=32&type=section&id=%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[135](index=135&type=chunk) [Financial Statements](index=32&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025 - The financial statements include the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity[136](index=136&type=chunk)[139](index=139&type=chunk)[144](index=144&type=chunk)[147](index=147&type=chunk)[150](index=150&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk)[161](index=161&type=chunk) [Consolidated and Parent Company Balance Sheets](index=32&type=section&id=%E5%90%88%E5%B9%B6%E5%8F%8A%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) The consolidated balance sheet shows total assets of 1.17 billion Yuan and owners' equity of 551.01 million Yuan, while the parent company balance sheet reports total assets of 1.21 billion Yuan and owners' equity of 560 million Yuan Key Data from Consolidated Balance Sheet (Period-End Balance) | Item | Amount (million Yuan) | | :--- | :--- | | Total Assets | 1170.41 | | Total Current Assets | 921.85 | | Total Non-Current Assets | 248.56 | | Total Liabilities | 613.48 | | Total Current Liabilities | 610.73 | | Total Non-Current Liabilities | 2.75 | | Total Owners' Equity Attributable to Parent Company | 551.01 | Key Data from Parent Company Balance Sheet (Period-End Balance) | Item | Amount (million Yuan) | | :--- | :--- | | Total Assets | 1213.63 | | Total Current Assets | 761.21 | | Total Non-Current Assets | 452.43 | | Total Liabilities | 653.95 | | Total Current Liabilities | 653.22 | | Total Non-Current Liabilities | 0.73 | | Total Owners' Equity | 559.69 | [Consolidated and Parent Company Income Statements](index=37&type=section&id=%E5%90%88%E5%B9%B6%E5%8F%8A%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) The consolidated income statement for H1 2025 shows total operating revenue of 460.23 million Yuan and a net loss of 13.51 million Yuan, while the parent company income statement reports operating revenue of 430.41 million Yuan and a net loss of 11.37 million Yuan Key Data from Consolidated Income Statement (H1 2025) | Item | Amount (million Yuan) | | :--- | :--- | | Total Operating Revenue | 460.23 | | Total Operating Cost | 469.63 | | Total Profit | -2.26 | | Net Profit | -13.51 | | Net Profit Attributable to Parent Company Shareholders | -12.99 | | Basic Earnings Per Share (Yuan/share) | -0.04 | Key Data from Parent Company Income Statement (H1 2025) | Item | Amount (million Yuan) | | :--- | :--- | | Operating Revenue | 430.41 | | Operating Profit | -1.63 | | Total Profit | -1.64 | | Net Profit | -11.37 | [Consolidated and Parent Company Cash Flow Statements](index=39&type=section&id=%E5%90%88%E5%B9%B6%E5%8F%8A%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The consolidated cash flow statement for H1 2025 shows net cash outflow from operating activities of 246.67 million Yuan, while the parent company statement reports a net cash outflow of 181.55 million Yuan from operating activities Key Data from Consolidated Cash Flow Statement (H1 2025) | Item | Amount (million Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -246.67 | | Net Cash Flow from Investing Activities | -20.26 | | Net Cash Flow from Financing Activities | 57.46 | | Net Increase in Cash and Cash Equivalents | -209.49 | Key Data from Parent Company Cash Flow Statement (H1 2025) | Item | Amount (million Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -181.55 | | Net Cash Flow from Investing Activities | -3.04 | | Net Cash Flow from Financing Activities | 58.61 | | Net Increase in Cash and Cash Equivalents | -125.99 | [Consolidated and Parent Company Statements of Changes in Owners' Equity](index=41&type=section&id=%E5%90%88%E5%B9%B6%E5%8F%8A%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) The consolidated statement shows total owners' equity attributable to the parent company of 551.01 million Yuan, a decrease of 12.99 million Yuan, while the parent company statement reports total owners' equity of 560 million Yuan, a decrease of 11.37 million Yuan Key Data from Consolidated Statement of Changes in Owners' Equity (H1 2025) | Item | Beginning Balance (million Yuan) | Change in Current Period (million Yuan) | Ending Balance (million Yuan) | | :--- | :--- | :--- | :--- | | Total Owners' Equity Attributable to Parent Company | 564.00 | -12.99 | 551.01 | | Minority Interests | 6.43 | -0.52 | 5.91 | | Total Owners' Equity | 570.44 | -13.51 | 556.93 | Key Data from Parent Company Statement of Changes in Owners' Equity (H1 2025) | Item | Beginning Balance (million Yuan) | Change in Current Period (million Yuan) | Ending Balance (million Yuan) | | :--- | :--- | :--- | :--- | | Share Capital | 298.56 | 0 | 298.56 | | Capital Reserve | 12.69 | 0 | 12.69 | | Surplus Reserve | 27.53 | 0 | 27.53 | | Undistributed Profits | 232.28 | -11.37 | 220.91 | | Total Owners' Equity | 571.06 | -11.37 | 559.69 | [Company Basic Information and Basis of Preparation](index=48&type=section&id=%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E4%B8%8E%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The company, listed on the Shenzhen Stock Exchange in 2016, had 298.56 million shares issued as of June 30, 2025, and prepares its financial statements on a going concern basis in accordance with enterprise accounting standards - The company was listed on the ChiNext board of the Shenzhen Stock Exchange on September 20, 2016[166](index=166&type=chunk) - As of June 30, 2025, the company's total issued shares amounted to **298.56 million shares**, with a registered capital of **298.56 million Yuan**[166](index=166&type=chunk) - The company prepares its financial statements on a going concern basis, in accordance with enterprise accounting standards, their application guidelines, and interpretations, based on actual transactions and events[167](index=167&type=chunk) [Significant Accounting Policies and Estimates](index=49&type=section&id=%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 accounting policies and estimates for business combinations, financial instruments, revenue recognition, inventory, fixed assets, intangible assets, employee compensation, and government grants, ensuring compliance with accounting standards - The company adheres to enterprise accounting standards, with the accounting year running from January 1 to December 31, and the functional currency being Renminbi[170](index=170&type=chunk)[171](index=171&type=chunk)[173](index=173&type=chunk) - The company classifies, measures, and impairs financial instruments, recognizing loss provisions based on expected credit losses[203](index=203&type=chunk)[212](index=212&type=chunk) - The company recognizes revenue upon satisfying performance obligations when customers obtain control of the related goods, applying different recognition methods based on business type[288](index=288&type=chunk)[295](index=295&type=chunk)[296](index=296&type=chunk) [Taxation](index=81&type=section&id=%E7%A8%8E%E9%A1%B9) The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, and education surcharges, with the company and some subsidiaries enjoying a 15% high-tech enterprise income tax rate and small and micro enterprise tax relief Main Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 13%, 9%, 6%, 5%, Exempt | | Urban Maintenance and Construction Tax | 7% | | Corporate Income Tax | 15%, 20%, 25% | | Education Surcharge | 3% | | Local Education Surcharge | 2%, 1.5% | | Property Tax | 1.2% (based on 70% of original property value) or 12% (based on rental income) | - The company, Shanghai Xinchen Information Integration System Co., Ltd., Beijing Ruideyin Information Technology Co., Ltd., Beijing Qinglin Software Technology Co., Ltd., and Wuhan Xinchen Information Industry Co., Ltd. are subject to a **15%** corporate income tax rate[317](index=317&type=chunk)[318](index=318&type=chunk)[319](index=319&type=chunk)[320](index=320&type=chunk) - Some subsidiaries are eligible for preferential tax policies for small and micro enterprises, where **25%** of their annual taxable income is included in the taxable income, and corporate income tax is paid at a **20%** rate[321](index=321&type=chunk) [Notes to Consolidated Financial Statement Items](index=82&type=section&id=%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 assets, liabilities, owners' equity, income, costs, and expenses in the consolidated financial statements, explaining period-end balances, beginning balances, and changes - The period-end balance of monetary funds was **289.18 million Yuan**, of which **19.37 million Yuan** were restricted[322](index=322&type=chunk) - The period-end book balance of accounts receivable was **492 million Yuan**, with bad debt provisions of **98.93 million Yuan**[334](index=334&type=chunk)[336](index=336&type=chunk) - Operating revenue was **460 million Yuan**, and operating cost was **378 million Yuan**, with system integration revenue at **177 million Yuan**, software development revenue at **209 million Yuan**, and professional technical service revenue at **73.91 million Yuan**[450](index=450&type=chunk)[449](index=449&type=chunk) [Notes on Asset Items](index=82&type=section&id=%E8%B5%84%E4%BA%A7%E7%B1%BB%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section details monetary funds, trading financial assets, accounts receivable, contract assets, other receivables, prepayments, inventory, fixed assets, intangible assets, goodwill, and deferred tax assets/liabilities Period-End Balance of Monetary Funds | Item | Period-End Balance (Yuan) | | :--- | :--- | | Cash on Hand | 161,458.05 | | Bank Deposits | 263,135,544.80 | | Other Monetary Funds | 25,880,739.77 | | Total | 289,177,742.62 | - The period-end book balance of accounts receivable was **492 million Yuan**, with bad debt provisions of **98.93 million Yuan**, primarily calculated using the aging analysis method[334](index=334&type=chunk)[336](index=336&type=chunk) - The original book value of goodwill was **208 million Yuan**, primarily arising from the acquisitions of Beijing Ruideyin Information Technology Co., Ltd. and Beijing Qinglin Software Technology Co., Ltd[387](index=387&type=chunk) [Notes on Liability Items](index=99&type=section&id=%E8%B4%9F%E5%80%BA%E7%B1%BB%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section details short-term borrowings, accounts payable, other payables, contract liabilities, employee compensation payable, taxes payable, and other current and non-current liabilities Short-Term Borrowings Classification | Item | Period-End Balance (million Yuan) | | :--- | :--- | | Guaranteed Borrowings | 273.58 | | Credit Borrowings | 9.00 | | Total | 282.58 | Accounts Payable Listing | Item | Period-End Balance (million Yuan) | | :--- | :--- | | Accounts Payable for Software | 5.98 | | Accounts Payable for Technical Services | 129.84 | | Accounts Payable for Materials and Equipment | 44.02 | | Total | 179.83 | - The period-end balance of contract liabilities was **65.02 million Yuan**, primarily consisting of advance payments for project progress[421](index=421&type=chunk) [Notes on Owners' Equity Items](index=102&type=section&id=%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E7%B1%BB%E9%A1%B9%E6%B3%A8%E9%87%8A) This section details share capital, capital reserves, surplus reserves, and undistributed profits, noting no changes in share capital, capital reserves, or surplus reserves, while undistributed profits decreased by 12.99 million Yuan - The company's share capital at period-end was **298.56 million Yuan**, consistent with the beginning of the period[439](index=439&type=chunk) - The period-end balance of undistributed profits was **235.34 million Yuan**, with net profit attributable to parent company owners for the current period being **-12.99 million Yuan**[445](index=445&type=chunk) [Notes on Income Statement Items](index=103&type=section&id=%E5%88%A9%E6%B6%A6%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section details operating revenue and cost, taxes and surcharges, administrative expenses, selling expenses, R&D expenses, financial expenses, other income, investment income, credit impairment losses, asset impairment losses, asset disposal gains, non-operating income/expenses, and income tax expenses Operating Revenue and Operating Cost (Current Period) | Item | Revenue (million Yuan) | Cost (million Yuan) | | :--- | :--- | :--- | | Main Business | 460.23 | 378.43 | | Other Business | 0 | 0 | | Total | 460.23 | 378.43 | - Financial expenses for the current period amounted to **2.96 million Yuan**, a **46.43%** decrease from the prior period, primarily due to reduced interest expenses[461](index=461&type=chunk) - Income tax expenses for the current period amounted to **11.25 million Yuan**, a **208.17%** increase from the prior period, primarily due to increased current income tax expenses[477](index=477&type=chunk) [Notes on Cash Flow Statement Items](index=107&type=section&id=%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section details cash flows related to operating, investing, and financing activities, along with supplementary cash flow information Subtotal of Cash Inflows/Outflows from Operating Activities | Item | Current Period Amount (million Yuan) | | :--- | :--- | | Subtotal of Cash Inflows from Operating Activities | 613.21 | | Subtotal of Cash Outflows from Operating Activities | 859.88 | Subtotal of Cash Inflows/Outflows from Investing Activities | Item | Current Period Amount (million Yuan) | | :--- | :--- | | Subtotal of Cash Inflows from Investing Activities | 55.15 | | Subtotal of Cash Outflows from Investing Activities | 75.41 | Subtotal of Cash Inflows/Outflows from Financing Activities | Item | Current Period Amount (million Yuan) | | :--- | :--- | | Subtotal of Cash Inflows from Financing Activities | 160.87 | | Subtotal of Cash Outflows from Financing Activities | 103.41 | [Notes on Other Financial Statement Items](index=109&type=section&id=%E5%85%B6%E4%BB%96%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 includes notes on owners' equity changes, foreign currency monetary items, and leasing information, with period-end cash and cash equivalents totaling 270 million Yuan and USD monetary funds of 0.51 million - The period-end balance of cash and cash equivalents was **269.81 million Yuan**[489](index=489&type=chunk) - The company's USD monetary funds had a period-end foreign currency balance of **506,494.66 USD**, equivalent to **3.63 million Yuan**[492](index=492&type=chunk) [Research and Development Expenses](index=110&type=section&id=%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) During the reporting period, the company's total R&D expenditure was 31.22 million Yuan, entirely expensed, primarily consisting of employee compensation Composition of R&D Expenses | Item | Current Period Amount (million Yuan) | | :--- | :--- | | Employee Compensation | 30.37 | | Depreciation and Amortization | 0.17 | | Travel Expenses and Others | 0.69 | | Total | 31.22 | | Of which: Expensed R&D Expenditure | 31.22 | [Changes in Consolidation Scope](index=111&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) [Changes in Consolidation Scope](index=111&type=section&id=%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 transactions involving step-by-step business combinations or loss of control over subsidiaries, resulting in no significant changes to the consolidation scope - During the reporting period, the company had no transactions involving step-by-step business combinations that resulted in obtaining control within the reporting period[499](index=499&type=chunk) - During the reporting period, the company had no transactions or events resulting in the loss of control over subsidiaries[501](index=501&type=chunk) [Interests in Other Entities](index=112&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) [Interests in Subsidiaries](index=112&type=section&id=%E5%9C%A8%E5%AD%90%E5%85%AC%E5%8F%B8%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) The company holds interests in nine wholly-owned or controlled subsidiaries, primarily engaged in computer software and hardware development and technical services, with Beijing Qinglin Software Technology Co., Ltd. being a significant non-wholly-owned subsidiary - The company owns **9** subsidiaries, including Beijing Xinchen Technology Development Co., Ltd., Shanghai Xinchen Information Integration System Co., Ltd., and Jiangsu Xinchen Information Technology Development Co., Ltd[504](index=504&type=chunk) - The main business nature of these subsidiaries is computer software and hardware development and sales, and technical services[504](index=504&type=chunk) Financial Information of Significant Non-Wholly-Owned Subsidiaries (H1 2025) | Subsidiary Name | Minority Shareholding Percentage | Profit/Loss Attributable to Minority Shareholders (Yuan) | Period-End Minority Interest Balance (million Yuan) | | :--- | :--- | :--- | :--- | | Beijing Qinglin Software Technology Co., Ltd. | 45.00% | -520,317.04 | 5.91 | [Government Grants](index=113&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) [Government Grants](index=113&type=section&id=%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) During the reporting period, the company received new government grants of 0.56 million Yuan, with 0.59 million Yuan recognized as other income and a period-end deferred income balance of 0.73 million Yuan, primarily related to income-based grants Liability Items Involving Government Grants | Accounting Account | Beginning Balance (Yuan) | New Grants Added in Current Period (Yuan) | Amount Transferred to Other Income in Current Period (Yuan) | Ending Balance (Yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 751,488.95 | 560,000.00 | 586,118.43 | 725,370.52 | Income Related | - The amount of government grants recognized in current profit or loss for this period was **653,166.54 Yuan**[512](index=512&type=chunk) [Risks Related to Financial Instruments](index=114&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) [Various Risks Arising from Financial Instruments](index=114&type=section&id=%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E4%BA%A7%E7%94%9F%E7%9A%84%E5%90%84%E7%B1%BB%E9%A3%8E%E9%99%A9) The company faces credit, liquidity, and market risks (foreign exchange and interest rate), managing them through client credit assessment, regular monitoring, bank credit lines, and cash reserves, while closely monitoring and adjusting strategies for foreign exchange and interest rate fluctuations - The company faces credit risk, liquidity risk, and market risk (foreign exchange risk, interest rate risk)[513](index=513&type=chunk) - The company's maximum credit risk exposure is the book value of each financial asset on the balance sheet, with accounts receivable and contract assets from the top five clients accounting for **44.43%** of the total[517](index=517&type=chunk) - As of June 30, 2025, the company had bank credit lines totaling **990 million Yuan** from multiple domestic banks, with **316 million Yuan** utilized[518](index=518&type=chunk) - As of June 30, 2025, if the RMB appreciates or depreciates by **10%** against the USD, the company's net profit would decrease or increase by approximately **0.31 million Yuan**[521](index=521&type=chunk) [Disclosure of Fair Value](index=117&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) [Disclosure of Fair Value](index=117&type=section&id=%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) This section discloses the period-end fair value of assets and liabilities measured at fair value, primarily 25 million Yuan in trading financial assets measured at Level 2, with non-fair value measured financial instruments having negligible differences between book and fair values Period-End Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 2 Fair Value Measurement (million Yuan) | Total (million Yuan) | | :--- | :--- | :--- | | (I) Trading Financial Assets | 25.00 | 25.00 | | Total Assets Continuously Measured at Fair Value | 25.00 | 25.00 | - The book value of financial assets and liabilities not measured at fair value (such as receivables, short-term borrowings, and payables) differs negligibly from their fair value[524](index=524&type=chunk) [Related Parties and Related Party Transactions](index=118&type=section&id=%E5%8D%81%E5%9B%9B%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) [Related Parties and Related Party Transactions](index=118&type=section&id=%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company disclosed its parent company, subsidiaries, and other related parties, including entities controlled by close family members of major shareholders, directors, and supervisors, with legal representative Kang Lu providing multiple bank credit guarantees and key management personnel compensation totaling 2.85 million Yuan - Other related parties include entities controlled by close family members of shareholders holding **5%** or more, and entities controlled by close family members of directors/supervisors[527](index=527&type=chunk) - The company's legal representative, Kang Lu, provided multiple joint liability guarantees for the company's credit applications with several banks[530](index=530&type=chunk)[531](index=531&type=chunk)[532](index=532&type=chunk)[533](index=533&type=chunk)[534](index=534&type=chunk)[535](index=535&type=chunk)[536](index=536&type=chunk)[537](index=537&type=chunk) Key Management Personnel Compensation | Item | Current Period Amount (million Yuan) | | :--- | :--- | | Key Management Personnel Compensation | 2.85 | [Share-Based Payment](index=121&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98) [Share-Based Payment](index=121&type=section&id=%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98) During the reporting period, the company had no share-based payment arrangements, including equity-settled or cash-settled plans, related expenses, or modifications/terminations - The company had no overall share-based payment situation during the reporting period[541](index=541&type=chunk) [Commitments and Contingencies](index=121&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) [Significant Commitments](index=121&type=section&id=%E9%87%8D%E8%A6%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) As of June 30, 2025, the company's wholly-owned subsidiary, Hainan Xinchen Technology Development Co., Ltd., had 8 million Yuan in unpaid registered capital, with no other significant commitments requiring disclosure - The wholly-owned subsidiary, Hainan Xinchen Technology Development Co., Ltd., has a registered capital of **10 million Yuan**, with **2 million Yuan** already paid in and **8 million Yuan** still unpaid[541](index=541&type=chunk) [Contingencies](index=121&type=section&id=%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) As of June 30, 2025, the company had 1.62 million Yuan in outstanding domestic letters of credit and provided 15 million Yuan in short-term loan guarantees for its subsidiary, Shanghai Xinchen Information Integration System Co., Ltd - As of June 30, 2025, the company had **1.62 million Yuan** in domestic letters of credit opened but not yet matured[542](index=542&type=chunk) Contingent Liabilities from Debt Guarantees for Other Entities | Guaranteed Entity | Guarantee Type | Guarantee Amount (million Yuan) | Guarantee Period | | :--- | :--- | :--- | :--- | | Shanghai Xinchen Information Integration System Co., Ltd. | Short-term loan | 8.00 | October 2024 to October 2025 | | Shanghai Xinchen Information Integration System Co., Ltd. | Short-term loan | 7.00 | November 2024 to November 2025 | | Total | - | 15.00 | - | [Events After the Balance Sheet Date](index=122&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E6%97%A5%E5%90%8E%E4%BA%8B%E9%A1%B9) [Events After the Balance Sheet Date](index=122&type=section&id=%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E6%97%A5%E5%90%8E%E4%BA%8B%E9%A1%B9) The company had no significant events after the balance sheet date requiring disclosure - The company has no reportable segments, or cannot disclose the total assets and liabilities for each reportable segment[548](index=548&type=chunk) [Other Significant Matters](index=122&type=section&id=%E5%8D%81%E5%85%AB%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Other Significant Matters](index=122&type=section&id=%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) The company's business is singular, managed as a whole, and therefore, the financial statements do not present segment information - The company's business is singular, primarily system integration, software development, and technical services, which management treats as a single entity for management and performance evaluation[550](index=550&type=chunk) - These financial statements do not present segment information[550](index=550&type=chunk) [Notes on Parent Company Financial Statement Items](index=123&type=section&id=%E5%8D%81%E4%B9%9D%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) [Accounts Receivable](index=123&type=section&id=%E5%BA%94%E6%94%B6%E8%B4%A6%E6%AC%BE) The parent company's period-end accounts receivable book balance was 465 million Yuan, with bad debt provisions of 93.70 million Yuan, primarily calculated using the aging analysis method Parent Company Accounts Receivable by Aging (Period-End Book Balance) | Aging | Amount (million Yuan) | | :--- | :--- | | Within 1 Year (inclusive) | 330.54 | | 1 to 2 Years | 23.04 | | 2 to 3 Years | 18.15 | | Over 3 Years | 93.01 | | Total | 464.75 | - The parent company's period-end book balance of accounts receivable was **465 million Yuan**, with bad debt provisions of **93.70 million Yuan**, representing a provision rate of **20.16%**[554](index=554&type=chunk) [Other Receivables](index=125&type=section&id=%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE) The parent company's period-end other receivables book balance was 9.42 million Yuan, with bad debt provisions of 2.00 million Yuan, primarily for deposits, petty cash, and security deposits Parent Company Other Receivables by Nature of Item (Period-End Book Balance) | Nature of Item | Amount (million Yuan) | | :--- | :--- | | Deposits | 6.96 | | Petty Cash | 2.03 | | Security Deposits | 0.43 | | Total | 9.42 | - The parent company's period-end book balance of other receivables was **9.42 million Yuan**, with bad debt provisions of **2.00 million Yuan**, representing a provision rate of **21.27%**[566](index=566&type=chunk) - The top five other receivables by debtor at period-end totaled **3.99 million Yuan**, accounting for **42.30%** of the total other receivables balance[572](index=572&type=chunk) [Long-Term Equity Investments](index=127&type=section&id=%E9%95%BF%E6%9C%9F%E8%82%A1%E6%9D%83%E6%8A%95%E8%B5%84) The parent com