Definitions [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This chapter defines key terms used in the report, covering company specifics, industry concepts like IoT and dual carbon, and financial terms such as data asset capitalization - Company's short name is **"Jiahua Technology"**, full name **"Rock Jiahua Technology Group Co., Ltd"**[9](index=9&type=chunk) - Reporting period refers to **January 1, 2025, to June 30, 2025**[10](index=10&type=chunk) - Detailed definitions of key industry terms such as IoT, carbon peak, carbon neutrality, dual carbon goals, green finance, digital economy, data elements, data assets, data asset capitalization, and large models are provided[9](index=9&type=chunk) Company Profile and Key Financial Indicators [Company's Basic Information](index=5&type=section&id=Company%27s%20Basic%20Information) This section introduces Rock Jiahua Technology Group Co., Ltd's fundamental details, including its names, legal representative, and contact addresses - Company's Chinese name is **Rock Jiahua Technology Group Co., Ltd**, abbreviated as **Jiahua Technology**[12](index=12&type=chunk) - The legal representative is **Li Wei**, and the registered address is at No. 9, 205 Jingtong Street, Taihu Town, Tongzhou District, Beijing[12](index=12&type=chunk) [Contact Person and Contact Information](index=5&type=section&id=Contact%20Person%20and%20Contact%20Information) This chapter provides contact details for the company's Board Secretary and Securities Affairs Representative - The Board Secretary is **Huang Zhilong**, and the Securities Affairs Representative is **Zhang Qiao'e**, both with contact number **010-57230290**[13](index=13&type=chunk) [Brief Introduction to Changes in Information Disclosure and Document Placement Locations](index=5&type=section&id=Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Placement%20Locations) This section outlines the company's designated channels for information disclosure and the location for semi-annual report placement - The company's information disclosure newspapers are **Shanghai Securities News, Securities Daily, and Securities Times**, with the designated website **http://www.sse.com.cn**[14](index=14&type=chunk) [Overview of Company Shares/Depositary Receipts](index=5&type=section&id=Overview%20of%20Company%20Shares%2FDepositary%20Receipts) This chapter summarizes the company's stock information, including its type, listing exchange, abbreviation, and code - The company's stock is **RMB ordinary shares (A-shares)**, listed on the **Shanghai Stock Exchange's STAR Market**, with stock abbreviation **Jiahua Technology** and stock code **688051**[16](index=16&type=chunk) [Company's Key Accounting Data and Financial Indicators](index=6&type=section&id=Company%27s%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue decreased by **38.91%** year-on-year, and net loss increased by **38.55%**, primarily due to intensified market competition, tight customer fiscal funds, and cautious budget allocation; however, smart dual carbon business revenue grew over **450%**, indicating new growth opportunities 2025 Semi-Annual Key Accounting Data | Indicator | Current Reporting Period (Jan-Jun) (10,000 yuan) | Prior Year Period (10,000 yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 10,942.90 | 17,912.91 | -38.91 | | Total Profit | -4,279.89 | -2,899.63 | N/A | | Net Profit Attributable to Shareholders of Listed Company | -4,088.17 | -2,950.62 | N/A | | Net Profit Attributable to Shareholders of Listed Company After Non-Recurring Gains and Losses | -4,589.61 | -3,702.69 | N/A | | Net Cash Flow from Operating Activities | -3,188.19 | -2,495.72 | N/A | 2025 Semi-Annual Key Financial Indicators | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | -0.53 | -0.38 | N/A | | Weighted Average Return on Net Assets (%) | -5.85 | -3.65 | Decreased by 2.20 percentage points | | R&D Investment as % of Operating Revenue (%) | 21.07 | 15.32 | Increased by 5.75 percentage points | - Smart dual carbon business achieved operating revenue of **12.4544 million yuan**, a year-on-year increase of over **450%**, accounting for **11.38%** of current operating revenue[20](index=20&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=7&type=section&id=Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section details the non-recurring gains and losses items and their amounts for the reporting period, totaling **5,014,381.56 yuan**, primarily including government grants, non-monetary asset exchange gains/losses, and other non-operating income and expenses 2025 Semi-Annual Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -126,349.50 | | Government Grants Included in Current Profit or Loss | 4,044,824.94 | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets | 276,977.74 | | Gains/Losses from Non-Monetary Asset Exchange | 687,650.80 | | Gains/Losses from Debt Restructuring | -375,894.03 | | Other Non-Operating Income and Expenses | 771,073.41 | | Less: Income Tax Impact | 9.95 | | Minority Interest Impact (After Tax) | 263,891.85 | | Total | 5,014,381.56 | Management Discussion and Analysis [Explanation of the Company's Industry and Main Business Operations During the Reporting Period](index=8&type=section&id=Explanation%20of%20the%20Company%27s%20Industry%20and%20Main%20Business%20Operations%20During%20the%20Reporting%20Period) Jiahua Technology, an innovator in IoT big data, focuses on smart environmental protection, smart dual carbon, and low-carbon smart cities, building a "data factory" technical system that integrates AI, blockchain, cloud computing, big data, and IoT, actively responding to national policies and launching the world's first green low-carbon management platform - The company focuses on **IoT big data technology R&D and application**, accumulating core technologies in the perception layer, platform layer, and application layer[24](index=24&type=chunk) - Built a **"data factory" technical system**, integrating five core technologies: **AI, blockchain, cloud computing, big data, and IoT**[25](index=25&type=chunk) - Launched the **world's first green low-carbon management platform**, integrating **20 years of ecological environment data** with **AI large model technology** to empower the ecological environment and dual carbon sectors[25](index=25&type=chunk)[34](index=34&type=chunk) - Undertook the Ministry of Ecology and Environment's **"National Carbon Market Management Platform"** and **"National Non-CO2 Greenhouse Gas Emission Data Statistics Platform,"** comprehensively covering carbon emission monitoring, management, and trading[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - Actively responded to national policies on **digital economy, carbon peaking and carbon neutrality, and urban renewal**, participated in the compilation of the **"White Paper on Data Element Circulation Standardization (2024 Edition),"** and was selected as a typical case for **"Data Elements × Green Low Carbon"**[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) [Discussion and Analysis of Operating Conditions](index=13&type=section&id=Discussion%20and%20Analysis%20of%20Operating%20Conditions) In the first half of 2025, the company's operating revenue decreased by **38.91%** year-on-year, and net loss increased by **38.55%**, mainly due to macroeconomic adjustments, intensified market competition, and tight customer fiscal funds; the company is actively optimizing its business structure and strategically developing dual carbon and data platform businesses to address challenges and seize opportunities from digital economy and dual carbon policies 2025 First Half Operating Performance | Indicator | Amount (10,000 yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Operating Revenue | 10,942.90 | -38.91 | | Net Profit Attributable to Shareholders of Listed Company | -4,088.17 | Loss increased by 38.55 | | Net Profit Attributable to Shareholders of Listed Company After Non-Recurring Gains and Losses | -4,589.61 | Loss increased by 23.95 | - Revenue decline primarily due to intensified market competition, tight customer fiscal funds, cautious budget allocation, and reduced renewal amounts for some operation and maintenance projects, leading to a decrease in gross profit margin[47](index=47&type=chunk) - The company is actively deploying **dual carbon and data platform businesses**, with smart terminals, ecological environment dual carbon cloud map, data resource management platform, and green low-carbon management platform products expected to usher in development opportunities[48](index=48&type=chunk) [Analysis of Core Competitiveness During the Reporting Period](index=14&type=section&id=Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) Jiahua Technology's core competitiveness lies in strong R&D capabilities, rich data resources, extensive customer base, professional products and services, efficient operational capabilities, and unique brand and corporate culture; the company continues to innovate in IoT big data, especially in AI large models, data resource management, and dual carbon applications, actively participates in national standard setting, and has obtained multiple intellectual property rights and industry honors [Core Competitiveness Analysis](index=14&type=section&id=Core%20Competitiveness%20Analysis) The company's core competitiveness encompasses R&D, data resources, customer base, products and services, operational efficiency, and brand advantages; in R&D, the company possesses a national engineering technology center, over **1,000** intellectual property rights, and integrates five core technologies (A+B+C+D+I); regarding data resources, it has built a "data factory" system and "ecological environment dual carbon cloud map"; customer advantage is reflected in extensive government and enterprise client coverage and high stickiness; product and service advantage lies in providing full lifecycle solutions; operational advantage is demonstrated in platform-based services across smart environmental protection, smart dual carbon, and smart cities; brand advantage stems from its industry position and technological strength - The company undertakes the **National Engineering Technology Center for Industrial Pollution Source Monitoring** under the Ministry of Ecology and Environment and the **National Engineering Research Center for IoT Applications**, possessing over **1,000** independent intellectual property rights[49](index=49&type=chunk)[50](index=50&type=chunk) - Built a **"data factory" technical system**, integrating **artificial intelligence, blockchain, cloud computing, big data, and IoT** five core technologies, forming six core capabilities[51](index=51&type=chunk) - Possesses nearly **30 years** of urban data from various provinces, cities, and counties nationwide, and pollution emission information from over **700,000** enterprises, forming the **"ecological environment dual carbon cloud map"** core dataset[54](index=54&type=chunk) - Continuously serves the Ministry of Ecology and Environment's **"National Carbon Market Management Platform"** with its platform-based product layout and strong data processing capabilities[29](index=29&type=chunk) - Chairman **Li Wei** was appointed as an expert committee member for the **"15th Five-Year Plan"** of Beijing Urban Sub-center (Tongzhou District)[61](index=61&type=chunk) - **Rock Jiahua Technology Group** was awarded the **"National May 1st Labor Medal,"** recognizing its contributions in the ecological environment dual carbon sector and technological innovation[78](index=78&type=chunk) [Core Technologies and R&D Progress](index=22&type=section&id=Core%20Technologies%20and%20R%26D%20Progress) During the reporting period, the company continued to deepen core technology R&D, achieving significant progress in eight major areas: ecological environment dual carbon large models, data empowerment platforms (data resource management, algorithm platform, data management center), AI algorithm and system R&D, AI edge-cloud collaboration platform, Haidongqing time-series database, IoT platform, cloud-chain sharing platform, and smart terminals and data security products; the company actively participates in national standard setting, newly obtained **5** invention patents, **6** software copyrights, and **3** trademarks, with a cumulative total of **1,039** intellectual property rights; the capitalization ratio of R&D investment significantly increased, demonstrating the company's emphasis on future technological productization [Core Technologies, Their Advanced Nature, and Changes During the Reporting Period](index=22&type=section&id=Core%20Technologies%2C%20Their%20Advanced%20Nature%2C%20and%20Changes%20During%20the%20Reporting%20Period) During the reporting period, the company continued to advance core technology innovation, covering eight major areas: ecological environment dual carbon large models, data empowerment platforms, AI algorithm and system R&D, AI edge-cloud collaboration platform, Haidongqing time-series database, IoT platform, cloud-chain sharing platform, smart terminals, and data security products; in these areas, the company developed multiple advanced technologies, such as dynamic network compression, long-context understanding, retrieval-augmented generation, data asset mapping, intelligent training task scheduling, high-performance gateways, national secret-supported blockchain underlying architecture, and embedded software and hardware technologies, and actively participated in national standard setting, demonstrating its leading position in IoT big data and AI - During the reporting period, the company led or participated in the revision of **9** standards (**7** national standards, **1** industry standard, **1** group standard), and participated in the release of **12** standards[81](index=81&type=chunk) - The ecological environment dual carbon large model possesses **11** core technologies, including dynamic network compression and optimization, long-context understanding, large model capability expansion and enhancement, retrieval-augmented generation (RAG), TextToSQL based on natural language generation, and smart enforcement based on large language models[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - The data empowerment platform includes core technologies such as the data resource management platform (data asset mapping, value dynamic evaluation model, cost-benefit quantification model), algorithm platform (intelligent training task scheduling, efficient inference service deployment, connecting to massive data from the data management center), and data management center (metadata management, data development and ETL, MCP services, file data extraction)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) - AI algorithm and system R&D possesses **6** core technologies, including AI algorithm model training, cross-hardware AI inference, precise traceability and dynamic pollution control, integrated air quality forecasting and early warning, multi-source time-series fusion prediction, and large model-based off-site enforcement[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - Haidongqing time-series database possesses **12** core technologies, including time-series indexing, SQL optimization, ISR distributed algorithm, data storage encryption, pre-computation aggregation query optimization algorithm, memory limits, master-slave switching, data desensitization, lossy compression, MySQL protocol, hierarchical Binder, and Cascades optimizer[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) - IoT platform possesses **9** core technologies, including high-performance gateways, distributed computing engines, underlying network protocols, low-code data parsing, full-link monitoring, rule engines, big data analysis based on SQL combined with graphical operations, flexible data visualization and data asset services, and multi-source heterogeneous data flow[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) - Cloud-chain sharing platform possesses **12** core technologies, including national secret-supported blockchain underlying architecture, role-based permission control system based on key pairs, secure and controllable peer-to-peer data sharing network, blockchain infrastructure supporting hardware encryption, K8S-based blockchain management platform technology, open platform technology, blockchain cross-chain subsystem, blockchain-based user authentication technology, blockchain-based data rights confirmation technology, DHT network-based blockchain file processing technology, smart contract execution supervision system, and blockchain digital asset management platform[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) - Smart terminals possess **6** core technologies, including embedded software and hardware technology, smart sensor design technology, data processing and analysis technology, data perception technology, data security technology, and remote control technology[134](index=134&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) - Data security products possess **8** core technologies, including IAM unified identity authentication, API data security gateway, blockchain trusted storage platform, content data security platform, IoT security gateway, Haidongqing database anti-ransomware, national secret system, and commercial cryptographic service middleware technology[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) - Subsidiary **Taiyuan Rock Jiahua Industrial Co., Ltd** was recognized as a national **"specialized, refined, unique, and new"** small giant enterprise, with its products being air quality monitoring products[146](index=146&type=chunk) [R&D Achievements Obtained During the Reporting Period](index=43&type=section&id=R%26D%20Achievements%20Obtained%20During%20the%20Reporting%20Period) During the reporting period, the company newly obtained **5** authorized invention patents, **6** software copyrights, and **3** trademarks; as of the end of the reporting period, the company cumulatively owned **1,039** intellectual property rights, including **52** invention patents, **38** utility model patents, **17** design patents, **617** software copyrights, and **315** trademarks Intellectual Property New Additions and Cumulative Numbers During the Reporting Period | Intellectual Property Type | New Applications in Current Period (items) | New Acquisitions in Current Period (items) | Cumulative Applications (items) | Cumulative Acquisitions (items) | | :--- | :--- | :--- | :--- | :--- | | Invention Patents | 1 | 5 | 41 | 52 | | Utility Model Patents | 0 | 0 | 2 | 38 | | Design Patents | 0 | 0 | 0 | 17 | | Software Copyrights | 7 | 6 | 1 | 617 | | Other (Trademarks) | 0 | 3 | 0 | 315 | | Total | 8 | 14 | 44 | 1,039 | [R&D Investment Table](index=43&type=section&id=R%26D%20Investment%20Table) During the reporting period, the company's total R&D investment was **23.0579 million yuan**, a year-on-year decrease of **16.00%**; expensed R&D investment decreased by **43.37%** year-on-year, while capitalized R&D investment significantly increased by **250.30%**, with the capitalization ratio of R&D investment increasing by **29.55** percentage points, mainly due to the addition of **4** capitalized projects R&D Investment | Indicator | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 14,095,006.35 | 24,890,644.85 | -43.37 | | Capitalized R&D Investment | 8,962,921.47 | 2,558,665.59 | 250.30 | | Total R&D Investment | 23,057,927.82 | 27,449,310.44 | -16.00 | | Total R&D Investment as % of Operating Revenue (%) | 21.07 | 15.32 | Increased by 5.75 percentage points | | Capitalization Ratio of R&D Investment (%) | 38.87 | 9.32 | Increased by 29.55 percentage points | - The significant change in the capitalization ratio of R&D investment is mainly due to the addition of **4** capitalized projects in the current period[149](index=149&type=chunk) [R&D Project Status](index=44&type=section&id=R%26D%20Project%20Status) The company had **17** R&D projects during the reporting period, covering Digital Jiahua Platform, Scientific Regulation of Air Pollution Prevention and Control, Ecological Environment Dual Carbon Cloud Map, Smart Environmental Protection Platform, AI Visual Recognition System, Group Carbon Emission and Carbon Asset Management Platform, Industrial Park Safety Risk Intelligent Control Platform, Government Carbon Ledger, Vehicle-mounted Environmental Monitoring Series Products, Greenhouse Gas Online Automatic Monitoring System, Energy Saving and Carbon Reduction Green Transformation Big Data Analysis Platform, Digital Low-Carbon Environmental Steward Operation Service Platform, and Environmental Large Model Application Platform; these projects have a total estimated investment of **164.5291 million yuan**, with **20.6894 million yuan** invested in the current period and a cumulative investment of **90.0702 million yuan**, with most projects in the functional development, testing, or trial operation stages, aiming to enhance the company's technological level and market competitiveness in smart environmental protection, dual carbon, and smart city sectors Major R&D Project Status (Partial) | No. | Project Name | Estimated Total Investment (10,000 yuan) | Current Period Investment (10,000 yuan) | Cumulative Investment (10,000 yuan) | Progress or Phased Achievements | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Digital Jiahua Platform V2.0 | 1,433.42 | 4.84 | 1,522.94 | CRM, OA, procurement management system optimized, project management closed-loop, SaaS transformation completed | | 3 | Ecological Environment Dual Carbon Cloud Map V2.0 | 909.83 | 95.45 | 942.12 | Data element management tool entered testing, AreMod model automated operation, pollution source data verification algorithm developed | | 6 | Group Carbon Emission and Carbon Asset Management Platform V1.0 | 1,522.09 | 248.62 | 766.26 | Dual carbon cockpit, carbon target management R&D completed, support for 6 major industries and 15 sub-industries added | | 13 | Ecological Environment Digital Transformation Platform | 2,103.45 | 214.24 | 214.24 | Ecological environment enforcement large model implemented, R&D of enterprise pollutant discharge permit post-verification large model, etc | | 14 | Three-in-One Platform | 869.02 | 163.69 | 163.69 | First version of algorithm platform functions developed, data synchronization with data management center completed, data trading market R&D completed | [R&D Personnel Status](index=52&type=section&id=R%26D%20Personnel%20Status) As of the end of the reporting period, the company had **175** R&D personnel, accounting for **27.05%** of the total workforce; total R&D personnel compensation was **13.6196 million yuan**, with an average compensation of **77,400 yuan**; the R&D team is primarily composed of bachelor's and master's degree holders, with an age structure concentrated between **30-40** years old Basic Information of R&D Personnel | Indicator | Current Period Number | Prior Year Period Number | | :--- | :--- | :--- | | Number of Company R&D Personnel (persons) | 175 | 200 | | R&D Personnel as % of Total Company Workforce (%) | 27.05% | 28.17% | | Total R&D Personnel Compensation (10,000 yuan) | 1,361.96 | 1,664.94 | | Average R&D Personnel Compensation (10,000 yuan) | 7.74 | 6.94 | Education Level of R&D Personnel | Education Level | Number (persons) | Proportion (%) | | :--- | :--- | :--- | | Doctoral Candidate | 1 | 0.57 | | Master's Candidate | 32 | 18.29 | | Bachelor's Degree | 131 | 74.86 | | Associate Degree | 9 | 5.14 | | High School and Below | 2 | 1.14 | | Total | 175 | 100 | [Risk Factors](index=52&type=section&id=Risk%20Factors) The company faces risks including performance growth falling short of expectations, core competitiveness challenges (rapid technology upgrades, talent loss, R&D iteration difficulties), operational risks (intensified market competition, business transformation falling short, dual carbon business uncertainties, customer concentration), financial risks (revenue decline, gross profit margin reduction, accounts receivable impairment, R&D investment, cash flow, negative operating cash flow, asset impairment), and macroeconomic environment risks; management is actively responding through R&D optimization, market promotion, and enhanced customer management [Risk of Performance Growth Falling Short of Expectations](index=52&type=section&id=Risk%20of%20Performance%20Growth%20Falling%20Short%20of%20Expectations) The company's operating revenue decreased by **38.91%** year-on-year in the first half of 2025, mainly due to macroeconomic factors, industry development, intensified market competition, tight customer fiscal funds, and cautious budget allocation; if product sales and R&D project progress fall short of expectations, the company faces the risk of sustained losses in the future - In the first half of 2025, operating revenue was **109.429 million yuan**, a **38.91%** decrease compared to the same period last year[161](index=161&type=chunk) - The risk of loss primarily stems from intensified market competition, tight customer fiscal funds, cautious budget allocation, and reduced renewal amounts for data operation service projects, leading to a gross profit margin below expectations[161](index=161&type=chunk) [Core Competitiveness Risk](index=52&type=section&id=Core%20Competitiveness%20Risk) The company faces risks from the rapid iteration of IoT technology, loss of core technical and R&D personnel, and disruptions in technology R&D iteration due to personnel changes; the company needs continuous innovation, optimized R&D investment, and talent reserves to address challenges from rapid technological development and talent mobility - The IoT industry experiences rapid technological upgrades and iterations; if the company fails to continuously innovate or successfully commercialize new technologies, its competitiveness will be weakened[163](index=163&type=chunk) - Loss of core technical and R&D personnel may hinder the achievement of the company's operational goals[163](index=163&type=chunk) - Changes in R&D personnel may lead to difficulties in the maintenance and upgrade of underlying architectural technologies (such as databases, IoT, AI platforms) and the smooth extension and expansion of main business applications[164](index=164&type=chunk) [Operational Risk](index=53&type=section&id=Operational%20Risk) The company faces risks from intensified market competition, business transformation falling short of expectations, uncertainties in dual carbon business development, and customer concentration; market competition may lead to market share decline and gross profit margin reduction; new product promotion during business transformation may take a long time, potentially affecting traditional businesses; the dual carbon market is subject to policy and institutional improvements, leading to uncertainties; customer concentration exists in the smart desulfurization operation sector - Intensified market competition in the smart environmental protection sector may lead to a decline in market share and gross profit margin[165](index=165&type=chunk) - The company's transformation to a platform-based model requires a longer time for new product promotion, which may affect traditional businesses and carry the risk of unsuccessful transformation[165](index=165&type=chunk) - Dual carbon business development is influenced by the international climate governance landscape and domestic carbon market policies and institutional improvements, posing a risk of falling short of expectations[166](index=166&type=chunk) - Customer concentration risk exists in the smart desulfurization operation sector, with a single power plant customer served for many years[166](index=166&type=chunk) [Financial Risk](index=54&type=section&id=Financial%20Risk) The company faces financial risks including revenue decline, gross profit margin reduction, impairment of accounts receivable, R&D investment (failure or impairment of capitalized projects), cash flow shortages, persistently negative operating cash flow, and asset impairment; main reasons include fewer new orders, long collection cycles, tight customer funds, and intensified market competition - Fewer new orders, reduced contract renewal amounts, and project audit settlement reductions may lead to revenue decline and gross profit margin reduction[167](index=167&type=chunk) - Accounts receivable balance has increased year by year, and deterioration of customer credit may lead to bad debts, affecting profitability and cash flow[167](index=167&type=chunk) - If capitalized R&D projects fail to develop or do not generate economic benefits, they will result in asset impairment losses[167](index=167&type=chunk) - Long customer collection cycles and tight funds may lead to cash flow shortages and persistently negative operating cash flow[168](index=168&type=chunk)[169](index=169&type=chunk) - Changes in market conditions, intensified industry competition, and technological substitution may lead to impairment of inventory, fixed assets, intangible assets, and other assets[169](index=169&type=chunk) [Industry Risk](index=55&type=section&id=Industry%20Risk) The IoT industry faces intensified competition with the entry of leading enterprises like Huawei, and the company has a gap in capital, talent, and R&D investment compared to these giants, which may affect its ability to compete in comprehensive businesses, retain existing customers, and acquire new ones - Intensified competition in the IoT industry, with the entry of leading enterprises like **Huawei**, puts the company at a disadvantage in terms of capital, talent, and R&D investment[170](index=170&type=chunk) - Competitive disadvantages may affect the company's ability to participate in comprehensive business competition, retain existing customers, and acquire new customers[170](index=170&type=chunk) [Macroeconomic Environment Risk](index=55&type=section&id=Macroeconomic%20Environment%20Risk) The development of the IoT industry is closely related to macroeconomic conditions; if the macroeconomic environment fluctuates or growth slows down, it may lead to fluctuations in demand for IoT technology applications, thereby affecting the company's business development and operating conditions - The development of the IoT industry is related to macroeconomic conditions, and macroeconomic fluctuations may affect the demand for IoT technology applications[171](index=171&type=chunk) [Major Operating Conditions During the Reporting Period](index=55&type=section&id=Major%20Operating%20Conditions%20During%20the%20Reporting%20Period) During the reporting period, the company's operating revenue decreased by **38.91%** year-on-year, and net loss increased by **38.55%**; major financial items such as operating cost, R&D expenses, net cash flow from operating activities, net cash flow from investing activities, and net cash flow from financing activities all experienced significant changes, reflecting intensified market competition, tight fiscal funds, adjustments in R&D investment structure, and changes in cash management and borrowing activities [Main Business Analysis](index=55&type=section&id=Main%20Business%20Analysis) During the reporting period, the company's operating revenue decreased by **38.91%** year-on-year, and operating cost decreased by **33.66%** year-on-year, mainly due to intensified market competition and tight customer fiscal funds leading to fewer orders; R&D expenses decreased by **43.37%** year-on-year, mainly due to reduced R&D personnel and increased capitalized projects; net cash flow from operating activities was negative due to reduced sales collections, net cash flow from investing activities significantly decreased due to reduced cash management, and net cash flow from financing activities turned positive due to increased borrowings Financial Statement Related Items Fluctuation Analysis | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 109,428,980.18 | 179,129,122.18 | -38.91 | | Operating Cost | 87,074,414.89 | 131,259,258.78 | -33.66 | | Selling Expenses | 8,459,329.88 | 11,066,273.06 | -23.56 | | Administrative Expenses | 28,970,444.79 | 34,373,432.21 | -15.72 | | Financial Expenses | 757,194.23 | 691,219.42 | 9.54 | | R&D Expenses | 14,095,006.35 | 24,890,644.85 | -43.37 | | Net Cash Flow from Operating Activities | -31,881,866.46 | -24,957,225.44 | N/A | | Net Cash Flow from Investing Activities | 11,805,673.40 | 89,887,068.00 | -86.87 | | Net Cash Flow from Financing Activities | 2,286,656.61 | -1,826,407.56 | N/A | - Operating revenue decrease mainly due to intensified industry market competition, tight fiscal funds in various regions, and a reduction in company orders[173](index=173&type=chunk) - R&D expenses decrease mainly due to a reduction in R&D personnel, decreased salaries and wages, and an increase in capitalized R&D projects[174](index=174&type=chunk) - Net cash flow from investing activities significantly decreased by **86.87%**, mainly due to a reduction in cash management in the current period[174](index=174&type=chunk) [Analysis of Assets and Liabilities](index=56&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's total assets and net assets attributable to shareholders of the listed company both decreased; trading financial assets significantly decreased by **94.98%**, mainly due to the recovery of cash management funds; notes receivable increased by **292.07%**, due to new bank notes with lower credit ratings; right-of-use assets increased by **49.26%**, due to new office space leases; development expenditures increased by **93.49%**, due to new capitalized R&D projects; employee compensation payable decreased by **58.64%**, due to the distribution of bonuses and severance benefits accrued in the previous year Asset and Liability Status Changes (Partial) | Item Name | Current Period End Amount (yuan) | Current Period End as % of Total Assets (%) | Prior Year End Amount (yuan) | Prior Year End as % of Total Assets (%) | Change from Prior Year End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 63,715,118.02 | 6.54 | 80,346,375.99 | 7.83 | -20.70 | | | Trading Financial Assets | 1,003,243.84 | 0.10 | 20,000,944.44 | 1.95 | -94.98 | Mainly due to recovery of cash management funds | | Notes Receivable | 12,469,096.72 | 1.28 | 3,180,286.25 | 0.31 | 292.07 | New bank notes with lower credit ratings at current period end | | Right-of-Use Assets | 5,165,535.26 | 0.53 | 3,460,798.96 | 0.34 | 49.26 | New office space leases at current period end | | Development Expenditures | 8,008,466.34 | 0.82 | 4,138,963.93 | 0.40 | 93.49 | Mainly due to new capitalized R&D projects in current period | | Employee Compensation Payable | 8,105,893.26 | 0.83 | 19,596,315.35 | 1.91 | -58.64 | Mainly due to distribution of bonuses and severance benefits accrued at prior year end | [Investment Status Analysis](index=57&type=section&id=Investment%20Status%20Analysis) At the end of the reporting period, the company's financial assets measured at fair value totaled **2.7189 million yuan**, a significant decrease from **23.7668 million yuan** at the beginning of the period; current period purchases amounted to **154 million yuan**, and sales/redemptions amounted to **173 million yuan**, mainly reflecting changes in structured deposits Changes in Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (10,000 yuan) | Fair Value Change Gains/Losses in Current Period (10,000 yuan) | Current Period Purchases (10,000 yuan) | Current Period Sales/Redemptions (10,000 yuan) | Other Changes (10,000 yuan) | Ending Balance (10,000 yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Other (Structured Deposits) | 2,000.09 | 0.23 | 15,400.00 | 17,300.00 | 0 | 100.32 | | Other (Receivables Financing) | 376.59 | 0 | 0 | 0 | -205.02 | 171.57 | | Total | 2,376.68 | 0.23 | 15,400.00 | 17,300.00 | -205.02 | 271.89 | [Analysis of Major Holding and Participating Companies](index=58&type=section&id=Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) During the reporting period, the company's major subsidiary, Taiyuan Rock Jiahua Industrial Co., Ltd, achieved operating revenue of **49.3024 million yuan** and net profit of **6.9480 million yuan**; other subsidiaries such as Taiyuan Rock Jiahua Data Technology Co., Ltd and Chengdu Jiahua IoT Cloud Technology Co., Ltd incurred losses, with Chengdu Jiahua IoT Cloud Technology Co., Ltd reporting a net loss of **15.3170 million yuan** Financial Status of Major Subsidiaries (Partial) | Company Name | Operating Revenue (10,000 yuan) | Net Profit (10,000 yuan) | | :--- | :--- | :--- | | Taiyuan Rock Jiahua Industrial Co., Ltd | 4,930.24 | 694.80 | | Taiyuan Rock Jiahua Data Technology Co., Ltd | 681.05 | -1,111.92 | | Beijing Jiahua Zhilian Technology Co., Ltd | 1,583.95 | -424.84 | | Shandong Rock Jiahua Technology Co., Ltd | 492.86 | -211.77 | | Rock Jiahua (Chongqing) Technology Co., Ltd | 605.37 | -435.03 | | Chengdu Jiahua IoT Cloud Technology Co., Ltd | 229.63 | -1,531.70 | Corporate Governance, Environment, and Society [Changes in Company Directors, Supervisors, Senior Management, and Core Technical Personnel](index=59&type=section&id=Changes%20in%20Company%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Core%20Technical%20Personnel) During the reporting period, the company completed the re-election of the third board of directors, dismissing **4** directors/independent directors including Zhao Ang, and electing **4** directors/independent directors including Meng Xiaomei; concurrently, the first meeting of the fourth board of directors appointed Li Wei as General Manager, Chen Jingnan and Chi Zhihui as Deputy General Managers, Huang Zhilong as Deputy General Manager and Board Secretary, and Wang Pengpeng as Financial Controller; the identification of core technical personnel is based on their leading role in core technology areas and outstanding contributions to intellectual property Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Change Status | | :--- | :--- | :--- | | Zhao Ang | Director | Dismissed | | Ma Zhiming | Independent Director | Dismissed | | Zheng Jianming | Independent Director | Dismissed | | Qiang Li | Independent Director | Dismissed | | Meng Xiaomei | Director | Elected | | Huang Hong | Independent Director | Elected | | Han Yufeng | Independent Director | Elected | | Li Weifeng | Independent Director | Elected | - The first meeting of the fourth board of directors appointed **Li Wei** as General Manager, **Chen Jingnan** and **Chi Zhihui** as Deputy General Managers, **Huang Zhilong** as Deputy General Manager and Board Secretary, and **Wang Pengpeng** as Financial Controller[184](index=184&type=chunk) - Core technical personnel identification criteria: leading figures in core technology areas with profound qualifications and R&D experience; undertaking important work in the company's R&D, with outstanding contributions to the invention and design of major intellectual property[185](index=185&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=59&type=section&id=Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) During the reporting period, the company had no profit distribution plan or capital reserve conversion to share capital plan - The company has no profit distribution plan or capital reserve conversion to share capital plan for this semi-annual report[186](index=186&type=chunk) Significant Matters [Fulfillment of Commitments](index=61&type=section&id=Fulfillment%20of%20Commitments) The company's controlling shareholder, actual controllers, core technical personnel, and other shareholders strictly fulfilled all commitments related to the initial public offering, including share lock-up, shareholding intentions and reduction intentions, stabilizing company stock price and share repurchase, share repurchase and compensation for fraudulent issuance, measures to mitigate dilution of immediate returns, avoiding horizontal competition, reducing and regulating related-party transactions, and social insurance and housing provident fund contributions; all commitments were strictly fulfilled on schedule, with no unfulfilled situations - Controlling shareholder **Shanghai Baiyu**, actual controllers **Li Wei** and **Wang Qian**, core technical personnel, and other shareholders strictly fulfilled share lock-up commitments related to the initial public offering[190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk) - Controlling shareholder, actual controllers, and directors, senior management strictly fulfilled commitments to stabilize company stock price and share repurchase[197](index=197&type=chunk)[198](index=198&type=chunk) - The company, controlling shareholder, actual controllers, and directors, supervisors, senior management strictly fulfilled commitments for share repurchase and compensation for fraudulent issuance[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk) - Controlling shareholder, actual controllers, and all directors, senior management strictly fulfilled measures and commitments to mitigate dilution of immediate returns[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk) - Controlling shareholder, actual controllers, and shareholders holding **5%** or more, directors, supervisors, senior management strictly fulfilled commitments to avoid horizontal competition[202](index=202&type=chunk)[203](index=203&type=chunk) - Controlling shareholder, actual controllers, and shareholders holding **5%** or more strictly fulfilled commitments to reduce and regulate related-party transactions[203](index=203&type=chunk) - Controlling shareholder and actual controllers strictly fulfilled commitments regarding social insurance and housing provident fund contributions[204](index=204&type=chunk) [Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties During the Reporting Period](index=75&type=section&id=Non-Operating%20Fund%20Occupation%20by%20Controlling%20Shareholder%20and%20Other%20Related%20Parties%20During%20the%20Reporting%20Period) During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties - During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties[204](index=204&type=chunk) [Irregular Guarantees](index=75&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[204](index=204&type=chunk) [Major Litigation and Arbitration Matters](index=75&type=section&id=Major%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company had no major litigation or arbitration matters - During the reporting period, the company had no major litigation or arbitration matters[204](index=204&type=chunk) [Suspected Violations, Penalties, and Rectification of Listed Company, Its Directors, Supervisors, Senior Management, Controlling Shareholder, and Actual Controllers](index=75&type=section&id=Suspected%20Violations%2C%20Penalties%2C%20and%20Rectification%20of%20Listed%20Company%2C%20Its%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20Controlling%20Shareholder%2C%20and%20Actual%20Controllers) During the reporting period, there were no suspected violations, penalties, or rectification situations involving the company, its directors, supervisors, senior management, controlling shareholder, or actual controllers - During the reporting period, the company, its controlling shareholder, and actual controllers did not have unfulfilled effective court judgments or large overdue debts[204](index=204&type=chunk) [Major Contracts and Their Fulfillment](index=76&type=section&id=Major%20Contracts%20and%20Their%20Fulfillment) During the reporting period, the total guarantee amount provided by the company and its subsidiaries to subsidiaries was **31.7151 million yuan**, accounting for **4.74%** of the company's net assets; specifically, Taiyuan Rock Jiahua Industrial Co., Ltd received a joint liability guarantee of **7.5075 million yuan** from the company Company's Total Guarantee Amount | Indicator | Amount (10,000 yuan) | | :--- | :--- | | Total Guarantees Provided to Subsidiaries in Current Period | 750.75 | | Total Outstanding Guarantees to Subsidiaries at Period End (B) | 3,171.51 | | Total Guarantees (A+B) | 3,171.51 | | Total Guarantees as % of Company's Net Assets (%) | 4.74 | - **Taiyuan Rock Jiahua Industrial Co., Ltd** received a joint liability guarantee of **7.5075 million yuan** from the company, with a guarantee start date of **January 13, 2025**, and an expiration date of **January 13, 2026**[208](index=208&type=chunk) Share Changes and Shareholder Information [Share Capital Changes](index=79&type=section&id=Share%20Capital%20Changes) During the reporting period, there were no changes in the company's total ordinary share capital or share capital structure - During the reporting period, there were no changes in the company's total ordinary share capital or share capital structure[212](index=212&type=chunk) [Shareholder Information](index=79&type=section&id=Shareholder%20Information) As of the end of the reporting period, the total number of ordinary shareholders was **5,075**; among the top ten shareholders, Shanghai Baiyu Information Technology Co., Ltd held **31.63%** of the shares, being the controlling shareholder; Li Wei held **15.63%**, being one of the actual controllers; Li Wei and Wang Qian, as a couple, collectively controlled **48.46%** of the company's shares through direct and indirect means Total Number of Ordinary Shareholders as of the End of the Reporting Period | Indicator | Number (households) | | :--- | :--- | | Total Number of Ordinary Shareholders as of the End of the Reporting Period | 5,075 | Top Ten Shareholders' Shareholding (Partial) | Shareholder Name | Shares Held at Period End (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Shanghai Baiyu Information Technology Co., Ltd | 24,463,099 | 31.63 | Domestic Non-State-Owned Legal Person | | Li Wei | 12,089,574 | 15.63 | Domestic Natural Person | | Gongqingcheng Huayun Investment Management Partnership (Limited Partnership) | 8,952,485 | 11.58 | Domestic Non-State-Owned Legal Person | | Li Jin | 2,500,000 | 3.23 | Domestic Natural Person | | Shanghai Pugang Enterprise Management Center (Limited Partnership) | 1,855,000 | 2.40 | Domestic Non-State-Owned Legal Person | - Actual controllers **Li Wei** and **Wang Qian**, as a couple, collectively controlled **48.46%** of the company's shares through direct and indirect means[217](index=217&type=chunk) Bond-Related Information [Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=82&type=section&id=Corporate%20Bonds%20%28Including%20Enterprise%20Bonds%29%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 (including enterprise bonds) or non-financial enterprise debt financing instruments[220](index=220&type=chunk) [Convertible Corporate Bonds](index=82&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[220](index=220&type=chunk) Financial Report [Financial Statements](index=83&type=section&id=Financial%20Statements) 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 financial position, operating results, and cash flow situation at the end of the reporting period - Includes consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[222](index=222&type=chunk)[226](index=226&type=chunk)[230](index=230&type=chunk)[234](index=234&type=chunk)[237](index=237&type=chunk)[240](index=240&type=chunk)[243](index=243&type=chunk)[249](index=249&type=chunk) [Company's Basic Information](index=99&type=section&id=Company%27s%20Basic%20Information) Rock Jiahua Technology Group Co., Ltd was listed on the Shanghai Stock Exchange on March 20, 2020, with a total share capital of **77.3340 million shares** as of June 30, 2025; the company belongs to the software and information technology services industry, focusing on IoT big data technology R&D and application, providing full lifecycle solutions and data operation services in smart environmental protection, smart dual carbon, and low-carbon smart cities; **17** subsidiaries were included in the scope of consolidation for this period - The company was listed on the Shanghai Stock Exchange on **March 20, 2020**, with a cumulative issued share capital of **77.3340 million shares** as of **June 30, 2025**[253](index=253&type=chunk) - The company belongs to the **software and information technology services industry**, with its main business being **IoT big data technology R&D and application**, focusing on smart environmental protection, smart dual carbon, and low-carbon smart cities[254](index=254&type=chunk) - **17** subsidiaries were included in the scope of consolidation for this period, with no change in the scope of consolidation compared to the previous period[255](index=255&type=chunk) [Basis of Financial Statement Preparation](index=99&type=section&id=Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared in accordance with enterprise accounting standards and relevant regulations of the China Securities Regulatory Commission, using the accrual basis of accounting and historical cost as the measurement basis, and a going concern assessment was performed with no significant doubts identified - Financial statements are prepared in accordance with **enterprise accounting standards** and **"Information Disclosure Rules for Companies Issuing Securities to the Public No. 15 – General Provisions for Financial Reports (Revised 2023)"** by the China Securities Regulatory Commission[257](index=257&type=chunk) - Accounting is based on the **accrual basis**, and except for certain financial instruments, **historical cost** is used as the measurement basis[259](index=259&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 significant doubts[258](index=258&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=99&type=section&id=Significant%20Accounting%20Policies%20and%20Accounting%20Estimates) This chapter details the significant accounting policies and estimates followed by the company in preparing its financial statements, including the classification, recognition, and measurement of financial instruments, methods for impairment provision for notes receivable, accounts receivable, and other receivables, classification and valuation of inventories, recognition of contract assets, accounting for long-term equity investments, depreciation and amortization of fixed assets and intangible assets, capitalization criteria for R&D expenditures, and specific methods for revenue recognition; the company has detailed provisions for each accounting treatment based on business characteristics and industry experience, and continuously assesses the reasonableness of key accounting estimates - Detailed provisions for the classification, recognition, measurement, and derecognition of financial assets and financial liabilities, as well as fair value determination and impairment treatment[288](index=288&type=chunk)[289](index=289&type=chunk)[290](index=290&type=chunk)[291](index=291&type=chunk)[292](index=292&type=chunk)[293](index=293&type=chunk)[294](index=294&type=chunk)[295](index=295&type=chunk)[296](index=296&type=chunk)[297](index=297&type=chunk)[298](index=298&type=chunk)[299](index=299&type=chunk)[300](index=300&type=chunk)[301](index=301&type=chunk)[302](index=302&type=chunk)[303](index=303&type=chunk)[304](index=304&type=chunk)[305](index=305&type=chunk)[306](index=306&type=chunk)[307](index=307&type=chunk)[308](index=308&type=chunk)[309](index=309&type=chunk) - Impairment provisions for notes receivable, accounts receivable, and other receivables are calculated using the **expected credit loss model**, and are grouped based on credit risk characteristics[310](index=310&type=chunk)[311](index=311&type=chunk)[312](index=312&type=chunk)[314](index=314&type=chunk)[315](index=315&type=chunk)[316](index=316&type=chunk) - Inventories are initially measured at **cost**, valued at the **weighted average method** at month-end when issued, and impairment provisions are made at the lower of cost and net realizable value at period-end[317](index=317&type=chunk)[318](index=318&type=chunk)[319](index=319&type=chunk) - Revenue recognition follows the principle of recognizing revenue when the customer obtains control of the related goods or services, and different methods are applied based on business types (product sales, operation and maintenance services, engineering construction, other businesses)[361](index=361&type=chunk)[362](index=362&type=chunk)[363](index=363&type=chunk)[364](index=364&type=chunk) - R&D expenditures are divided into research and development phases, with development phase expenditures recognized as intangible assets when specific conditions are met[345](index=345&type=chunk)[346](index=346&type=chunk) [Taxes](index=130&type=section&id=Taxes) The company's main taxes include value-added tax, property tax, land use tax, urban maintenance and construction tax, education surcharge, local education surcharge, and corporate income tax; the company and some subsidiaries enjoy high-tech enterprise income tax incentives (**15%** tax rate), while some subsidiaries enjoy Western Development encouraged industry policies (**15%** tax rate) or small and micro enterprise income tax incentives (**20%** tax rate) Major Tax Types and Rates | Tax Type | Tax Rate | | :--- | :--- | | Value-Added Tax | 13%, 9%, 6%, 5%, 3% | | Property Tax | 1.2%, 12% | | Land Use Tax | 3 yuan/sqm | | Urban Maintenance and Construction Tax | 7%, 5% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Corporate Income Tax | 15%, 20%, 25% | - The company and its subsidiaries **Tai Luo Industrial, Jiahua Zhilian, Chengdu Company, and Rock Jiahua (Chongqing) Technology Co., Ltd** enjoy a **15%** corporate income tax preferential rate[377](index=377&type=chunk)[379](index=379&type=chunk)[380](index=380&type=chunk) - Subsidiaries **Huahuan Ecology, Tianyi Blue, Shanghai Technology, Zhihui Juyuan, Tianjin Zhichuang, Jiahua Xinghui, and Hainan Company** are eligible for small and micro enterprise corporate income tax preferential policies[381](index=381&type=chunk) [Notes to Consolidated Financial Statement Items](index=132&type=section&id=Notes%20to%20Consolidated%20Financial%20Statement%20Items) This chapter details the specific situation and changes of each item in the consolidated financial statements, including cash and bank balances, trading financial assets, notes receivable, accounts receivable, contract assets, receivables financing, prepayments, other receivables, inventories, non-current assets due within one year, other current assets, long-term receivables, long-term equity investments, fixed assets, construction in progress, right-of-use assets, intangible assets, long-term deferred expenses, deferred income tax assets/liabilities, other non-current assets, assets with restricted ownership or use rights, short-term borrowings, notes payable, accounts payable, contract liabilities, employee compensation payable, taxes payable, other payables, non-current liabilities due within one year, lease liabilities, provisions, deferred income, share capital, capital reserves, surplus reserves, undistributed profits, operating revenue and operating cost, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, fair value change gains, asset disposal gains, credit impairment losses, asset impairment losses, non-operating income, non-operating expenses, income tax expenses, cash flow statement items, and leases Cash and Bank Balances at Period-End | Item | Period-End Balance (yuan) | | :--- | :--- | | Cash on Hand | 12,691.30 | | Bank Deposits | 63,232,434.72 | | Other Cash and Bank Balances | 469,992.00 | | Total | 63,715,118.02 | Restricted Cash and Bank Balances Details | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Letter of Guarantee Deposit | 402,417.00 | 327,100.00 | | Judicially Frozen Funds | 1,572,961.48 | 490,000.00 | | Total | 1,975,378.48 | 817,100.00 | Trading Financial Assets at Period-End | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Structured Deposits | 1,003,243.84 | 20,000,944.44 | | Total | 1,003,243.84 | 20,000,944.44 | Accounts Receivable Book Value at Period-End | Category | Period-End Book Value (yuan) | | :--- | :--- | | Impairment Provision for Individual Items | 0 | | Impairment Provision for Portfolio | 364,584,964.04 | | Total | 364,584,964.04 | Inventory Classification Book Value at Period-End | Item | Period-End Book Value (yuan) | | :--- | :--- | | Raw Materials | 8,196,205.38 | | Work in Progress | 52,591.86 | | Finished Goods | 3,075,751.90 | | Revolving Materials | 748,320.97 | | Contract Performance Costs | 21,583,311.38 | | Consigned Processing Materials | 18,095.13 | | Total | 33,674,276.62 | Fixed Assets Book Value at Period-End | Item | Period-End Book Value (yuan) | | :--- | :--- | | Buildings and Structures | 253,067,674.53 | | Office Equipment | 1,330,656.30 | | Machinery and Equipment | 29,841,724.72 | | Transportation Vehicles | 936,862.96 | | Smart Environmental Monitoring Equipment | 9,966,036.52 | | Total | 295,142,955.03 | Intangible Assets Book Value at Period-End | Item | Period-End Book Value (yuan) | | :--- | :--- | | Land Use Rights | 36,970,639.41 | | Software | 4,992,741.72 | | Data Resources | 4,838,748.10 | | Total | 46,802,129.23 | Short-Term Borrowings at Period-End | Item | Period-End Balance (yuan) | | :--- | :--- | | Guaranteed Loans | 63,715,105.18 | | Credit Loans | 10,000,000.00 | | Factoring Financing | 5,000,000.00 | | Total | 78,715,105.18 | Operating Revenue and Operating Cost for the Current Period | Item | Revenue (yuan) | Cost (yuan) | | :--- | :--- | :--- | | Main Business | 108,956,681.68 | 86,885,609.16 | | Other Businesses | 472,298.50 | 188,805.73 | | Total | 109,428,980.18 | 87,074,414.89 | Operating Revenue by Product Type | Product Type | Operating Revenue (yuan) | | :--- | :--- | | Smart Environmental Protection | 74,388,767.73 | | Smart City | 21,880,645.48 | | Smart Dual Carbon | 12,454,406.85 | | Other | 232,861.62 | | Total | 108,956,681.68 | R&D Expenses for the Current Period | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Salaries and Benefits | 11,354,935.56 | 20,304,619.56 | | Technical Consulting and Service Fees | 473,038.12 | 781,397.57 | | Material Consumption | 303,583.60 | 87,156.51 | | Depreciation and Amortization | 1,424,190.24 | 2,795,371.74 | | Office and Travel Expenses | 535,916.20 | 916,524.23 | | Other | 3,342.63 | 5,575.24 | | Total | 14,095,006.35 | 24,890,644.85 | Net Cash Flow from Operating Activities | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -31,881,866.46 | -24,957,225.44 | [R&D Expenditures](index=179&type=section&id=R%26D%20Expenditures) During the reporting period, the company's total R&D expenditures were **23.0579 million yuan**, of which **14.0950 million yuan** was expensed R&D and **8.9629 million yuan** was capitalized R&D; capitalized R&D expenditures significantly increased by **250.30%** year-on-year, mainly due to the addition of several important capitalized R&D projects, including Ecological Environment Dual Carbon Cloud Map V2.0, Ecological Environment Digital Transformation Platform, Digital Jiahua Platform V3.0, Three-in-One Platform, and Energy Saving and Carbon Reduction Green Transformation Big Data Analysis Platform R&D Expenditures by Expense Nature | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Salaries and Benefits | 17,563,366.34 | 22,348,568.60 | | Depreciation and Amortization | 2,561,657.51 | 3,179,917.58 | | Technical Consulting and Service Fees | 1,857,665.98 | 844,014.90 | | Office and Travel Expenses | 752,616.13 | 983,873.47 | | Material Consumption | 318,879.25 | 87,360.65 | | Other | 3,742.61 | 5,575.24 | | Total | 23,057,927.82 | 27,449,310.44 | | Of which: Expensed R&D Expenditures | 14,095,006.35 | 24,890,644.85 | | Capitalized R&D Expenditures | 8,962,921.47 | 2,558,665.59 | Important Capitalized R&D Projects (Partial) | Project | R&D Progress | Estimated Completion Time | Capitalization Start Date | | :--- | :--- | :--- | :--- | | Ecological Environment Dual Carbon Cloud Map V2.0 | 100% completed | 2025/4/30 | 2024/1/1 | | Ecological Environment Digital Transformation Platform | 16% completed | 2027/12/31 | 2025/2/1 | | Digital Jiahua Platform V3.0 | 25% completed | 2026/12/31 | 2025/1/1 | | Three-in-One Platform | 25% completed | 2026/12/31 | 2025/1/1 | | Energy Saving and Carbon Reduction Green Transformation Big Data Analysis Platform | 16% completed | 2027/12/31 | 2025/1/1 | [Changes in Consolidation Scope](index=182&type=section&id=Changes%20in%2

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[Section 1 Important Notes, Table of Contents, and Definitions](index=2&type=section&id=Section%201%20Important%20Notes%2C%20Table%20of%20Contents%2C%20and%20Definitions) [Important Notes](index=2&type=section&id=1.1%20Important%20Notes) The company's board guarantees the report's authenticity, faces a net loss, investor litigation liabilities, and risks from being listed as a dishonest judgment debtor - The company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[5](index=5&type=chunk) Key Financial Status for H1 2025 | Indicator | Amount (RMB '0,000) | | :--- | :--- | | Net Profit | -929.72 | | Net Cash Flow from Operating Activities | 1,744.73 | | Net Assets (End of Period) | 1,492.44 | | Estimated Liabilities from Investor Litigation | 2,389.81 | - Due to a subrogation dispute with Shanghai Aoyin Investment Management Co, Ltd, the company was ordered to pay RMB 8.48 million and was listed as a dishonest judgment debtor for non-payment, with its subsidiary Dongguan New Oriental's RMB 12 million equity stake facing auction[6](index=6&type=chunk) - The company does not plan to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital[9](index=9&type=chunk) [Table of Contents](index=4&type=section&id=1.2%20Table%20of%20Contents) This report's table of contents outlines nine main sections, providing comprehensive navigation for investors - The report's table of contents includes nine main sections, structured clearly from company profile to financial reports[11](index=11&type=chunk) [Definitions](index=6&type=section&id=1.3%20Definitions) This section defines common terms used in the report to ensure accurate understanding - This section defines key terms used in the report, such as "CSRC," "Exchange," "Company," its main subsidiaries (e,g,, Dongguan New Oriental, Zhangzhou Xindongda, Tianchang Xindongcheng), and raw materials (DMC)[16](index=16&type=chunk) [Section 2 Company Profile and Key Financial Indicators](index=7&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) [Company Profile](index=7&type=section&id=2.1%20Company%20Profile) The company, ST Hongda (002211), is listed on the Shenzhen Stock Exchange, with key contacts and addresses remaining unchanged during the reporting period Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Ticker | ST Hongda | | Stock Code | 002211 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Huang Jun | | Secretary of the Board | Wang Yanjie | | Securities Affairs Representative | Huang Lei | - The company's registered address, office address, website, and information disclosure channels remained unchanged during the reporting period[20](index=20&type=chunk)[21](index=21&type=chunk) [Key Accounting Data and Financial Indicators](index=8&type=section&id=2.2%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2025, revenue grew significantly, the net loss narrowed, and operating cash flow improved, though total and net assets declined Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (RMB) | Prior Year Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 210,903,705.79 | 112,549,841.02 | 87.39% | | Net Profit Attributable to Shareholders | -9,297,237.27 | -14,780,359.49 | 37.10% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | -5,472,389.18 | -7,566,750.48 | 27.68% | | Net Cash Flow from Operating Activities | 17,447,267.32 | -4,514,181.12 | 486.50% | | Basic Earnings Per Share (RMB/share) | -0.0215 | -0.0342 | 37.13% | | Diluted Earnings Per Share (RMB/share) | -0.0215 | -0.0342 | 37.13% | | Weighted Average Return on Net Assets | -47.50% | -26.45% | -21.05% | | **End-of-Period Indicators** | **End of Current Period (RMB)** | **End of Prior Year (RMB)** | **Change from Prior Year-End** | | Total Assets | 379,003,585.13 | 438,370,772.79 | -13.54% | | Net Assets Attributable to Shareholders | 14,924,439.24 | 24,221,676.51 | -38.38% | [Differences in Accounting Data under Domestic and Foreign Accounting Standards](index=8&type=section&id=2.3%20Differences%20in%20Accounting%20Data%20under%20Domestic%20and%20Foreign%20Accounting%20Standards) There were no discrepancies in net profit or net assets between Chinese and international or foreign accounting standards during the reporting period - No differences existed in net profit and net assets under domestic and foreign accounting standards during the reporting period[24](index=24&type=chunk)[25](index=25&type=chunk) [Non-recurring Profit and Loss Items and Amounts](index=8&type=section&id=2.4%20Non-recurring%20Profit%20and%20Loss%20Items%20and%20Amounts) Non-recurring losses in H1 2025 totaled RMB -3.82 million, primarily due to provisions for investor litigation, and are not sustainable Non-recurring Profit and Loss Items for H1 2025 | Item | Amount (RMB) | Description | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -8,063.80 | Loss on disposal of fixed assets, not sustainable | | Government Grants Recognized in Current Profit/Loss | 142,834.92 | Amortization of deferred income, not sustainable | | Fair Value Changes and Disposal Gains/Losses on Financial Assets/Liabilities Held by Non-financial Enterprises | 185,420.24 | Fair value changes and disposal gains on bank wealth management products, not sustainable | | Other Non-operating Income and Expenses | -4,145,039.45 | Mainly provisions for non-operating expenses related to investor litigation, not sustainable | | **Total** | **-3,824,848.09** | | [Section 3 Management Discussion and Analysis](index=10&type=section&id=Section%203%20Management%20Discussion%20and%20Analysis) [Principal Business Activities during the Reporting Period](index=10&type=section&id=3.1%20Principal%20Business%20Activities%20during%20the%20Reporting%20Period) The company's main business is the R&D, production, and sale of high-temperature silicone rubber, with a business model sensitive to raw material price fluctuations - The company's main products are high-temperature silicone rubbers, including base rubber, compound rubber, and liquid rubber, used in aviation, electronics, automotive, and medical industries[30](index=30&type=chunk) - The silicone industry chain comprises raw materials, monomers/intermediates, downstream processed products, and end-user applications[30](index=30&type=chunk) - The company's main raw materials, DMC and base rubber, are externally sourced, making it sensitive to market price fluctuations and prompting advance stocking based on market conditions[31](index=31&type=chunk) [Core Competitiveness Analysis](index=10&type=section&id=3.2%20Core%20Competitiveness%20Analysis) The company's core strengths lie in its technology, product range, direct sales model, and management team - **Technology Advantage**: Subsidiary Dongguan New Oriental is a high-tech enterprise with multiple patents, focusing on new product R&D and process improvements to reduce costs[32](index=32&type=chunk) - **Product Advantage**: The company offers a diverse product line with over 230 types of high-temperature silicone rubber, catering to various customer needs with a full range of quality and performance options[33](index=33&type=chunk) - **Direct Sales Advantage**: A direct sales model in the Pearl River and Yangtze River Deltas provides pricing power and brand recognition, fostering stable relationships with suppliers and customers[34](index=34&type=chunk)[35](index=35&type=chunk) - **Management and HR Advantage**: The company has a young, competitive, and innovative management team with extensive experience and a focus on talent acquisition and development[35](index=35&type=chunk) [Analysis of Principal Business](index=11&type=section&id=3.3%20Analysis%20of%20Principal%20Business) H1 2025 revenue grew 87.39% to RMB 211 million, driven by market expansion, while operating cash flow increased significantly due to improved working capital management YoY Changes in Key Financial Data | Indicator | Current Period (RMB) | Prior Year Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 210,903,705.79 | 112,549,841.02 | 87.39% | Increased due to Xindongcheng's expansion in the East China market | | Operating Costs | 196,248,458.52 | 103,845,234.63 | 88.98% | Grew in line with operating revenue | | Selling Expenses | 7,080,326.81 | 3,821,597.48 | 85.27% | Grew in line with operating revenue | | Net Cash Flow from Operating Activities | 17,447,267.32 | -4,514,181.12 | 486.50% | Improved management of accounts receivable and inventory | | Net Cash Flow from Investing Activities | 3,523,928.88 | -3,052,812.59 | 215.43% | Combined effect of purchasing and redeeming bank wealth management products | | Net Cash Flow from Financing Activities | -3,332,491.02 | -1,980,428.00 | -68.27% | Mainly due to increased rent payments | Operating Revenue Breakdown (by Product) | Product | Current Period Amount (RMB) | % of Revenue | Prior Year Period Amount (RMB) | % of Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Base Rubber | 4,147,431.03 | 1.97% | 3,665,501.62 | 3.26% | 13.15% | | Compound Rubber | 198,288,531.57 | 94.02% | 103,599,086.38 | 92.05% | 91.40% | | Liquid Rubber | 8,299,547.53 | 3.94% | 5,261,542.68 | 4.67% | 57.74% | | Others | 168,195.66 | 0.08% | 23,710.34 | 0.02% | 609.38% | Operating Revenue Breakdown (by Region) | Region | Current Period Amount (RMB) | % of Revenue | Prior Year Period Amount (RMB) | % of Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic Sales | 187,952,974.61 | 89.12% | 104,290,001.63 | 92.66% | 80.22% | | Direct Exports | 22,950,731.18 | 10.88% | 8,259,839.39 | 7.34% | 177.86% | [Analysis of Non-Principal Business](index=12&type=section&id=3.4%20Analysis%20of%20Non-Principal%20Business) Non-principal business activities, including asset impairments and litigation provisions, negatively impacted profit and are not sustainable Impact of Non-Principal Business on Total Profit | Item | Amount (RMB) | % of Total Profit | Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Asset Impairment | 190,284.78 | -2.05% | Mainly due to provisions for inventory write-downs | Not sustainable | | Non-operating Income | 289,752.54 | -3.12% | Mainly from the sale of used product packaging | Not sustainable | | Non-operating Expenses | 4,434,791.99 | 47.70% | Mainly due to provisions for estimated liabilities from investor litigation | Not sustainable | [Analysis of Assets and Liabilities](index=12&type=section&id=3.5%20Analysis%20of%20Assets%20and%20Liabilities) The company's total assets and net assets declined, with significant changes in notes payable and other payables, while a substantial portion of assets remains restricted Significant Changes in Asset Composition (Period-End vs. Prior Year-End) | Item | Current Period-End Amount (RMB) | % of Total Assets | Prior Year-End Amount (RMB) | % of Total Assets | Change in % | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 152,111,536.65 | 40.13% | 188,748,608.61 | 43.06% | -2.93% | | Accounts Receivable | 31,903,731.54 | 8.42% | 34,897,609.34 | 7.96% | 0.46% | | Inventory | 36,172,235.96 | 9.54% | 41,421,732.28 | 9.45% | 0.09% | | Notes Payable | 109,490,138.59 | 28.89% | 163,628,763.62 | 37.33% | -8.44% | | Accounts Payable | 35,404,566.04 | 9.34% | 32,064,029.12 | 7.31% | 2.03% | | Other Payables | 91,761,478.93 | 24.21% | 86,924,625.72 | 19.83% | 4.38% | | Provisions | 29,074,964.75 | 7.67% | 25,494,566.23 | 5.82% | 1.85% | Restricted Assets as of the Reporting Period-End | Item | Period-End Book Value (RMB) | Reason for Restriction | | :--- | :--- | :--- | | Other Monetary Funds | 71,670,138.59 | Acceptance bill margin | | Bank Deposits | 37,820,000.00 | Pledged | | Bank Deposits | 3,620,146.11 | Judicially frozen | | Fixed Assets | 1,211,924.09 | Seized due to litigation | | **Total** | **137,348,766.08** | | Financial Assets Measured at Fair Value | Item | Opening Balance (RMB) | Current Period Fair Value Change (RMB) | Current Period Purchases (RMB) | Current Period Sales (RMB) | Closing Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 13,303,573.61 | 185,420.24 | 2,855,271.30 | 6,483,420.00 | 9,860,845.15 | [Investment Status Analysis](index=14&type=section&id=3.6%20Investment%20Status%20Analysis) The company's investment amount increased by 103.03% during the reporting period, with no major equity, non-equity, or derivative investments Investment Amount during the Reporting Period | Investment Amount (RMB) | Prior Year Period Investment Amount (RMB) | Change | | :--- | :--- | :--- | | 10,050,000.00 | 4,950,000.00 | 103.03% | - The company had no significant equity investments, non-equity investments, securities investments, derivative investments, or use of raised funds during the reporting period[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) [Sale of Major Assets and Equity](index=15&type=section&id=3.7%20Sale%20of%20Major%20Assets%20and%20Equity) No major assets or equity were sold during the reporting period - The company did not sell any major assets or equity during the reporting period[54](index=54&type=chunk)[55](index=55&type=chunk) [Analysis of Major Holding and Participating Companies](index=15&type=section&id=3.8%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) The company's main subsidiaries are engaged in silicone rubber production, while two others have ceased operations due to legacy "private network communication" issues Operating Status of Major Subsidiaries | Company Name | Type | Main Business | Registered Capital (RMB '0,000) | Total Assets (RMB '0,000) | Net Assets (RMB '0,000) | Operating Revenue (RMB '0,000) | Operating Profit (RMB '0,000) | Net Profit (RMB '0,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dongguan New Oriental Technology Co, Ltd | Subsidiary | Production and sale of silicone rubber, silicone oil | 8000 | 22,860.73 | 11,584.66 | 10,721.88 | -16.49 | -9.64 | | Tianchang Xindongcheng New Materials Co, Ltd | Subsidiary | Production and sale of silicone rubber | 1500 | 13,779.77 | 869.73 | 9,479.27 | -158.53 | -158.59 | | Shanghai Hongzhu Information Technology Co, Ltd | Subsidiary | Operations ceased | 15000 | 136.58 | -19,370.58 | 0.00 | -0.62 | -0.62 | | Shanghai Guanfeng Information Technology Co, Ltd | Subsidiary | Operations ceased | 5000 | 358.60 | -14,713.62 | 0.00 | -14.93 | -106.14 | - Subsidiaries Shanghai Hongzhu and Shanghai Guanfeng have ceased operations due to involvement in the "private network communication" business, and the company has initiated liquidation and deregistration of Shanghai Hongzhu to mitigate the impact[56](index=56&type=chunk) [Structured Entities Controlled by the Company](index=15&type=section&id=3.9%20Structured%20Entities%20Controlled%20by%20the%20Company) The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[57](index=57&type=chunk) [Risks Faced by the Company and Countermeasures](index=15&type=section&id=3.10%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces significant risks from investor lawsuits, a subrogation dispute, legacy business issues, and uncertainty about its going concern status - **Investor Litigation Risk**: The company is under investigation for alleged information disclosure violations, facing 227 lawsuits with claims totaling **RMB 25.18 million**, of which 206 cases (RMB 23.90 million) are ongoing, with provisions made[57](index=57&type=chunk)[58](index=58&type=chunk)[103](index=103&type=chunk) - **Subrogation Dispute and Dishonest Debtor Risk**: A court ordered the company to pay **RMB 8.48 million** to Aoyin Investment; failure to pay resulted in being listed as a dishonest judgment debtor, with a subsidiary's **RMB 12 million equity stake** at risk of auction[59](index=59&type=chunk)[60](index=60&type=chunk) - **Legacy "Private Network Communication" Issues**: Subsidiaries Shanghai Guanfeng and Shanghai Hongzhu have ceased operations due to this issue, with their equity frozen; the company is pursuing legal action and liquidation[61](index=61&type=chunk)[111](index=111&type=chunk) - **Going Concern Uncertainty and ST Risk**: The company has incurred losses for three consecutive years, and its 2024 audit report highlighted material uncertainty about its ability to continue as a going concern, leading to an "ST" risk warning on its stock[61](index=61&type=chunk)[62](index=62&type=chunk) - **Countermeasures**: Management will focus on increasing revenue through scale and optimization, reducing costs across materials, labor, and expenses, monitoring legal cases to resolve the private network issue, and launching initiatives to improve operating cash flow[77](index=77&type=chunk) [Section 4 Corporate Governance, Environment, and Society](index=17&type=section&id=Section%204%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) [Changes in Directors, Supervisors, and Senior Management](index=17&type=section&id=4.1%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, employee supervisor Yang Ping resigned and was replaced by Zhang Deshun Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Yang Ping | Employee Supervisor | Resigned | 2025-02-17 | Personal reasons | | Zhang Deshun | Employee Supervisor | Elected | 2025-02-17 | Work transfer | [Profit Distribution and Capitalization of Capital Reserves for the Reporting Period](index=17&type=section&id=4.2%20Profit%20Distribution%20and%20Capitalization%20of%20Capital%20Reserves%20for%20the%20Reporting%20Period) The company does not plan to distribute profits or capitalize capital reserves for the first half of the year - The company plans no cash dividend, bonus shares, or capitalization of capital reserves for the semi-annual period[66](index=66&type=chunk) [Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=17&type=section&id=4.3%20Implementation%20of%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company had no equity incentive 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 during the reporting period[67](index=67&type=chunk) [Environmental Information Disclosure](index=17&type=section&id=4.4%20Environmental%20Information%20Disclosure) Subsidiary Dongguan New Oriental Technology Co, Ltd is listed for mandatory environmental information disclosure, with details available on the provincial platform - Subsidiary Dongguan New Oriental Technology Co, Ltd is included in the list of enterprises required to disclose environmental information, which can be accessed via the Guangdong Provincial Department of Ecology and Environment system[68](index=68&type=chunk) [Social Responsibility](index=17&type=section&id=4.5%20Social%20Responsibility) The company fulfills its social responsibilities by protecting employee rights, maintaining fair partnerships, and investing in environmental protection - **Protecting Employee Interests**: Complies with the Labor Law, implements a full labor contract system, provides social insurance for all employees, and ensures production safety[69](index=69&type=chunk) - **Fair Cooperation**: Cooperates with suppliers and customers in good faith, adheres to contracts, and achieves mutual benefits[69](index=69&type=chunk) - **Environmental Protection**: Continuously invests in technical upgrades to improve processes, effectively reducing and controlling waste gas and wastewater emissions[69](index=69&type=chunk) [Section 5 Important Matters](index=18&type=section&id=Section%205%20Important%20Matters) [Commitments Fulfilled or Overdue by Relevant Parties during the Reporting Period](index=18&type=section&id=5.1%20Commitments%20Fulfilled%20or%20Overdue%20by%20Relevant%20Parties%20during%20the%20Reporting%20Period) There were no fulfilled or overdue commitments by the company's actual controller, shareholders, or other related parties during the reporting period - There were no overdue unfulfilled commitments during the reporting period[71](index=71&type=chunk) [Non-operating Fund Occupation by the Controlling Shareholder and Other Related Parties](index=18&type=section&id=5.2%20Non-operating%20Fund%20Occupation%20by%20the%20Controlling%20Shareholder%20and%20Other%20Related%20Parties) No non-operating funds of the company were occupied by its controlling shareholder or other related parties during the reporting period - There was no non-operating fund occupation by the controlling shareholder or other related parties during the reporting period[72](index=72&type=chunk) [Irregular External Guarantees](index=18&type=section&id=5.3%20Irregular%20External%20Guarantees) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[73](index=73&type=chunk) [Appointment and Dismissal of Accounting Firm](index=18&type=section&id=5.4%20Appointment%20and%20Dismissal%20of%20Accounting%20Firm) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[74](index=74&type=chunk) [Board and Supervisory Committee's Explanation on "Non-standard Audit Report" for the Current Period](index=18&type=section&id=5.5%20Board%20and%20Supervisory%20Committee's%20Explanation%20on%20%22Non-standard%20Audit%20Report%22%20for%20the%20Current%20Period) There is no "non-standard audit report" for the current reporting period requiring explanation - There is no "non-standard audit report" for the current reporting period requiring explanation[75](index=75&type=chunk) [Board's Explanation on "Non-standard Audit Report" from the Previous Year](index=18&type=section&id=5.6%20Board's%20Explanation%20on%20%22Non-standard%20Audit%20Report%22%20from%20the%20Previous%20Year) The board acknowledges the 2024 audit report's concerns about going concern uncertainty and is implementing measures to improve financial stability - L&A CPAs issued an unqualified audit opinion for the 2024 financial report with paragraphs on **material uncertainty related to going concern** and an emphasis of matter[75](index=75&type=chunk) - **Material Uncertainty Related to Going Concern**: The company incurred losses for three consecutive years, with a net loss of **RMB 39.04 million** in 2024, negative operating cash flow of **RMB -20.30 million**, year-end net assets of **RMB 24.22 million**, and estimated litigation liabilities of **RMB 20.85 million**[75](index=75&type=chunk) - **Emphasis of Matter**: The company faces investor lawsuits due to securities misrepresentation, with 162 cases (totaling **RMB 20.85 million**) still pending, for which provisions have been made; the ultimate impact remains uncertain[76](index=76&type=chunk) - **Board's Countermeasures**: The board will focus on increasing revenue, implementing cost-saving measures, resolving the impact of the private network communication issue, and improving operating cash flow[77](index=77&type=chunk) [Bankruptcy and Reorganization Matters](index=19&type=section&id=5.7%20Bankruptcy%20and%20Reorganization%20Matters) No bankruptcy or reorganization matters occurred during the reporting period - No bankruptcy or reorganization matters occurred during the reporting period[78](index=78&type=chunk) [Litigation Matters](index=19&type=section&id=5.8%20Litigation%20Matters) The company is involved in significant litigation, including numerous investor lawsuits and a subrogation dispute that has led to enforcement actions Major Litigation and Arbitration | Case | Amount Involved (RMB '0,000) | Provision Made | Progress | Outcome and Impact | Enforcement Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Investor Lawsuits (Information Disclosure Violations) | 2,517.86 | Yes | 21 cases settled, 206 pending | 20 settled cases have been resolved; provisions are made for the full amount of pending cases, with the final impact subject to court rulings | 21 settled cases have been fully executed; others are pending | | Subrogation Dispute with Shanghai Aoyin Investment Management Co, Ltd | 848 | No | Second-instance trial concluded, in enforcement | The company was ordered to pay RMB 8.48 million; the second-instance court upheld the verdict | Due to non-payment, the company was listed as a dishonest judgment debtor, and a court has ordered the auction of its subsidiary's RMB 12 million equity stake | Other Litigation Matters | Case | Amount Involved (RMB '0,000) | Provision Made | Progress | Outcome and Impact | Enforcement Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Hongda vs Jiangsu Shouzhi New Energy Technology (Processing Contract Dispute) | 32.32 | No | Settled through mediation | Jiangsu Shouzhi paid the company RMB 279,618 in processing fees | Fully executed by Jiangsu Shouzhi | | Shanghai Dahua Zhengsheng Luggage vs Shanghai Guanfeng (Lease Contract Dispute) | 154.17 | No | First-instance judgment concluded, in enforcement | The court ordered Shanghai Guanfeng to pay rent and other fees and vacate the premises; Shanghai Hongda was not held jointly liable | As Shanghai Guanfeng cannot pay, Shanghai Dahua has applied to seize its equipment | | Beijing Fuou Hangdian Technology vs Shanghai Guanfeng (Sales Contract Dispute) | 449.29 | No | Second-instance trial concluded, in enforcement | The court ordered the company to pay RMB 4,492,890.60 plus interest and fees; the second-instance court upheld the verdict | The court executed RMB 2,007,978.02 in Feb 2022 and froze four machines; a recent court order approved the auction of these machines | [Penalties and Rectifications](index=21&type=section&id=5.9%20Penalties%20and%20Rectifications) No penalties or rectifications occurred during the reporting period - No penalties or rectifications occurred during the reporting period[83](index=83&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=21&type=section&id=5.10%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) The company has been listed as a dishonest judgment debtor due to a payment dispute, and it intends to pursue claims against its former controlling shareholder - The company was ordered to pay **RMB 8.48 million** in a subrogation dispute and was listed as a dishonest judgment debtor for non-payment, putting its subsidiary's **RMB 12 million equity stake** at risk of auction[84](index=84&type=chunk)[85](index=85&type=chunk) - The company's former controlling shareholder, Shanghai Hongzi, caused substantial losses by introducing the "private network communication" business, and the company will actively pursue legal claims to protect its interests[85](index=85&type=chunk)[86](index=86&type=chunk) [Major Related-Party Transactions](index=22&type=section&id=5.11%20Major%20Related-Party%20Transactions) The company engaged in routine related-party transactions for procurement, sales, and leasing, all conducted within approved limits and on fair terms Related-Party Transactions in Daily Operations | Related Party | Relationship | Transaction Type | Transaction Content | Amount (RMB '0,000) | % of Similar Transactions | Approved Limit (RMB '0,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Mingzhu Silicone Rubber Materials Co, Ltd and its subsidiaries | Company under significant influence from other related parties | Procurement | Raw materials, goods | 59.26 | 0.42% | 200 | | Jiangsu Mingzhu Silicone Rubber Materials Co, Ltd and its subsidiaries | Company under significant influence from other related parties | Procurement | Technical services | 14.72 | 93.74% | 35 | | Jiangsu Mingzhu Silicone Rubber Materials Co, Ltd and its subsidiaries | Company under significant influence from other related parties | Sales | Goods | 1,153.25 | 5.12% | 1,415 | | Jiangsu Mingzhu Silicone Rubber Materials Co, Ltd and its subsidiaries | Company under significant influence from other related parties | Leasing | Land, buildings, and other assets | 330.07 | 74.41% | 1,250 | - All related-party transactions during the reporting period were within approved limits and conducted on fair and reasonable terms[87](index=87&type=chunk) - The company had no related-party transactions involving the acquisition or sale of assets or equity, joint external investments, or related-party debt and credit during the reporting period[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) [Major Contracts and Their Performance](index=23&type=section&id=5.12%20Major%20Contracts%20and%20Their%20Performance) The company has a significant related-party leasing agreement and engaged in wealth management, but had no托管 or contracting arrangements - The company had no custody or contracting arrangements during the reporting period[94](index=94&type=chunk)[95](index=95&type=chunk) - **Leasing**: Grand-subsidiary Tianchang Xindongcheng leases a factory and equipment from related party Anhui Maiteng New Materials Co, Ltd for an annual rent of **RMB 6.62 million** (including tax) under a five-year agreement, which constitutes a related-party transaction[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) Entrusted Wealth Management | Type | Source of Funds | Amount (RMB '0,000) | Outstanding Balance (RMB '0,000) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own funds | 285.53 | 913.8 | - The company had no major guarantees or other major contracts during the reporting period[99](index=99&type=chunk)[101](index=101&type=chunk) [Explanation of Other Major Matters](index=25&type=section&id=5.13%20Explanation%20of%20Other%20Major%20Matters) The company faces multiple significant issues, including extensive investor litigation, unfulfilled performance commitments, frozen shareholder equity, and a pending intra-group share transfer - **Investor Litigation**: The company is under investigation for alleged information disclosure violations and has received 227 lawsuits with claims totaling **RMB 25.18 million**, with 206 cases still pending[103](index=103&type=chunk) - **Shanghai Guanfeng Acquisition**: The "private network communication" business of Shanghai Guanfeng was deemed to lack commercial substance, and performance commitments were not met, requiring compensation of **RMB 135 million** from the sellers, which is unlikely to be recovered[104](index=104&type=chunk)[105](index=105&type=chunk) - **Share Freeze**: Shares held by controlling shareholder Jiangsu Weilun and Hangzhou Keli Enterprise Management Partnership (Limited Partnership) have been judicially frozen[105](index=105&type=chunk) - **Controlling Shareholder Change**: Jiangsu Weilun plans to transfer its **22.52%** stake (97,410,619 shares) to actual controller Zhu Enwei; this is an intra-group transfer under common control, and the actual controller will not change[106](index=106&type=chunk)[107](index=107&type=chunk) - **Debt Forgiveness**: A **RMB 36.91 million** debt owed by subsidiary Shanghai Guanfeng to former controlling shareholder Shanghai Hongzi was forgiven, with the creditor changed to Jiangsu Weilun; the company has not yet performed the accounting treatment[108](index=108&type=chunk)[109](index=109&type=chunk) - **Going Concern Uncertainty and ST Risk**: The company's stock is under an "ST" risk warning due to three consecutive years of losses and material uncertainty about its ability to continue as a going concern[109](index=109&type=chunk)[110](index=110&type=chunk) [Major Matters Concerning Company Subsidiaries](index=26&type=section&id=5.14%20Major%20Matters%20Concerning%20Company%20Subsidiaries) Two subsidiaries have ceased operations due to their involvement in the "private network communication" business, and the company is proceeding with their liquidation - Shanghai Guanfeng and Shanghai Hongzhu have completely ceased production and operations due to their involvement in the "private network communication" business, and their equity has been frozen by the Nantong Intermediate People's Court[111](index=111&type=chunk) - The company has approved the dissolution and liquidation of these wholly-owned subsidiaries, established a liquidation team, completed business deregistration filings, and is actively pursuing legal action to protect its rights[111](index=111&type=chunk) [Section 6 Share Capital Changes and Shareholder Information](index=27&type=section&id=Section%206%20Share%20Capital%20Changes%20and%20Shareholder%20Information) [Share Capital Changes](index=27&type=section&id=6.1%20Share%20Capital%20Changes) The company's total share capital remained unchanged during the reporting period, consisting entirely of unrestricted shares Share Capital Changes | Item | Pre-Change Quantity (shares) | Pre-Change Ratio | Change (+, -) | Post-Change Quantity (shares) | Post-Change Ratio | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 0 | 0% | 0 | 0 | 0% | | II. Unrestricted Shares | 432,475,779 | 100% | 0 | 432,475,779 | 100% | | III. Total Shares | 432,475,779 | 100% | 0 | 432,475,779 | 100% | - The company's total share capital did not change during the reporting period, and there were no share changes due to new issuances, approvals, transfers, or share buybacks[114](index=114&type=chunk) [Securities Issuance and Listing](index=28&type=section&id=6.2%20Securities%20Issuance%20and%20Listing) No securities were issued or listed during the reporting period - No securities were issued or listed during the reporting period[114](index=114&type=chunk) [Number of Shareholders and Shareholdings](index=28&type=section&id=6.3%20Number%20of%20Shareholders%20and%20Shareholdings) As of the period-end, the company had 32,047 shareholders, with the top two shareholders having a significant portion of their shares frozen Total Common Shareholders and Top 10 Shareholders' Holdings at Period-End | Shareholder Name | Nature | Shareholding Ratio | Shares Held (shares) | Unrestricted Shares (shares) | Share Status | Pledged, Marked, or Frozen Shares (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Weilun Investment Management Co, Ltd | Domestic Non-state-owned Legal Entity | 29.07% | 125,735,743 | 125,735,743 | Frozen | 28,325,124 | | Hangzhou Keli Enterprise Management Partnership (LP) | Domestic Non-state-owned Legal Entity | 7.96% | 34,440,000 | 34,440,000 | Frozen | 34,440,000 | | UBS AG | Foreign Legal Entity | 0.55% | 2,372,277 | 2,372,277 | N/A | 0 | | Gong Jindi | Domestic Natural Person | 0.53% | 2,276,542 | 2,276,542 | N/A | 0 | | He Wei | Domestic Natural Person | 0.50% | 2,172,800 | 2,172,800 | N/A | 0 | | Chen Nian | Domestic Natural Person | 0.49% | 2,100,000 | 2,100,000 | N/A | 0 | | Lu Wei | Domestic Natural Person | 0.46% | 2,000,000 | 2,000,000 | N/A | 0 | | Li Ximing | Domestic Natural Person | 0.46% | 2,000,000 | 2,000,000 | N/A | 0 | | MORGAN STANLEY & CO. INTERNATIONAL PLC. | Foreign Legal Entity | 0.44% | 1,919,026 | 1,919,026 | N/A | 0 | | BARCLAYS BANK PLC | Foreign Legal Entity | 0.44% | 1,899,751 | 1,899,751 | N/A | 0 | - At the end of the reporting period, the total number of common shareholders was **32,047**[115](index=115&type=chunk) - Jiangsu Weilun Investment Management Co, Ltd, Gong Jindi, and Zhu Yanmei are parties acting in concert[116](index=116&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=30&type=section&id=6.4%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) There were no changes in the shareholdings of the company's directors, supervisors, or senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, or senior management during the reporting period[118](index=118&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=30&type=section&id=6.5%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) The company's controlling shareholder and actual controller did not change during the reporting period - The company's controlling shareholder and actual controller did not change during the reporting period[119](index=119&type=chunk) [Information on Preferred Shares](index=30&type=section&id=6.6%20Information%20on%20Preferred%20Shares) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[120](index=120&type=chunk) [Section 7 Bond-related Matters](index=30&type=section&id=Section%207%20Bond-related%20Matters) [Bond-related Matters](index=30&type=section&id=7.1%20Bond-related%20Matters) The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[122](index=122&type=chunk) [Section 8 Financial Report](index=31&type=section&id=Section%208%20Financial%20Report) [Audit Report](index=31&type=section&id=8.1%20Audit%20Report) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[124](index=124&type=chunk) [Financial Statements](index=31&type=section&id=8.2%20Financial%20Statements) This section presents the company's consolidated and parent company financial statements for the first half of 2025 - This section includes the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity[125](index=125&type=chunk) [Consolidated Balance Sheet](index=31&type=section&id=8.2.1%20Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's consolidated total assets were RMB 379 million, a decrease of 13.54% from the beginning of the year Key Data from the Consolidated Balance Sheet | Item | Closing Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 379,003,585.13 | 438,370,772.79 | | Total Current Assets | 283,340,076.56 | 336,504,499.51 | | Total Non-current Assets | 95,663,508.57 | 101,866,273.28 | | Total Liabilities | 364,079,145.89 | 414,149,096.28 | | Total Current Liabilities | 314,906,235.34 | 365,475,938.46 | | Total Equity Attributable to Parent Company | 14,924,439.24 | 24,221,676.51 | [Parent Company Balance Sheet](index=33&type=section&id=8.2.2%20Parent%20Company%20Balance%20Sheet) As of June 30, 2025, the parent company's total assets were RMB 114 million, with total liabilities of RMB 34.83 million Key Data from the Parent Company Balance Sheet | Item | Closing Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 113,611,984.83 | 117,091,127.39 | | Total Current Assets | 16,169,374.82 | 19,133,835.42 | | Total Non-current Assets | 97,442,610.01 | 97,957,291.97 | | Long-term Equity Investments | 73,434,900.00 | 73,434,900.00 | | Total Liabilities | 34,829,423.44 | 32,026,230.71 | | Total Owners' Equity | 78,782,561.39 | 85,064,896.68 | [Consolidated Income Statement](index=35&type=section&id=8.2.3%20Consolidated%20Income%20Statement) For H1 2025, the company reported consolidated revenue of RMB 211 million and a net loss of RMB 9.30 million, a 37.10% reduction in loss year-over-year Key Data from the Consolidated Income Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 210,903,705.79 | 112,549,841.02 | | Total Operating Costs | 216,381,334.96 | 119,058,731.81 | | Total Profit | -9,235,565.52 | -14,780,359.49 | | Net Profit | -9,297,237.27 | -14,780,359.49 | | Net Profit Attributable to Parent Company Owners | -9,297,237.27 | -14,780,359.49 | | Basic Earnings Per Share | -0.0215 | -0.0342 | [Parent Company Income Statement](index=38&type=section&id=8.2.4%20Parent%20Company%20Income%20Statement) For H1 2025, the parent company had no operating revenue and reported a net loss of RMB 6.28 million Key Data from the Parent Company Income Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Operating Revenue | 0.00 | 0.00 | | Total Profit | -6,282,335.29 | -10,035,255.73 | | Net Profit | -6,282,335.29 | -10,035,255.73 | | Basic Earnings Per Share | -0.0145 | -0.0232 | [Consolidated Cash Flow Statement](index=39&type=section&id=8.2.5%20Consolidated%20Cash%20Flow%20Statement) For H1 2025, net cash flow from operating activities was RMB 17.45 million, a significant year-over-year improvement of 486.50% Key Data from the Consolidated Cash Flow Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 17,447,267.32 | -4,514,181.12 | | Net Cash Flow from Investing Activities | 3,523,928.88 | -3,052,812.59 | | Net Cash Flow from Financing Activities | -3,332,491.02 | -1,980,428.00 | | Net Increase in Cash and Cash Equivalents | 17,638,705.18 | -9,547,421.71 | | Closing Balance of Cash and Cash Equivalents | 39,001,251.95 | 40,892,104.46 | [Parent Company Cash Flow Statement](index=40&type=section&id=8.2.6%20Parent%20Company%20Cash%20Flow%20Statement) For H1 2025, the parent company's net cash flow from operating activities was RMB -2.37 million Key Data from the Parent Company Cash Flow Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -2,365,098.47 | -3,492,168.57 | | Net Cash Flow from Investing Activities | 0.00 | 211,800.00 | | Net Cash Flow from Financing Activities | 2,364,942.75 | 3,428,640.54 | | Net Increase in Cash and Cash Equivalents | -155.72 | 148,271.97 | | Closing Balance of Cash and Cash Equivalents | 245.62 | 149,176.46 | [Consolidated Statement of Changes in Owners' Equity](index=41&type=section&id=8.2.7%20Consolidated%20Statement%20of%20Changes%20in%20Owners'%20Equity) In H1 2025, consolidated owners' equity decreased from RMB 24.22 million to RMB 14.92 million, primarily due to the net loss for the period Consolidated Statement of Changes in Owners' Equity | Item | Share Capital (RMB) | Capital Reserve (RMB) | Surplus Reserve (RMB) | Retained Earnings (RMB) | Total Equity Attributable to Parent Company (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Balance at Prior Year-End | 432,475,779.00 | 1,027,351,290.22 | 28,894,524.03 | -1,464,499,916.74 | 24,221,676.51 | | III. Changes in Current Period | 0.00 | 0.00 | 0.00 | -9,297,237.27 | -9,297,237.27 | | IV. Balance at Current Period-End | 432,475,779.00 | 1,027,351,290.22 | 28,894,524.03 | -1,473,797,154.01 | 14,924,439.24 | [Parent Company Statement of Changes in Owners' Equity](index=45&type=section&id=8.2.8%20Parent%20Company%20Statement%20of%20Changes%20in%20Owners'%20Equity) In H1 2025, the parent company's owners' equity decreased from RMB 85.06 million to RMB 78.78 million, mainly due to the net loss for the period Parent Company Statement of Changes in Owners' Equity | Item | Share Capital (RMB) | Capital Reserve (RMB) | Surplus Reserve (RMB) | Retained Earnings (RMB) | Total Owners' Equity (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Balance at Prior Year-End | 432,475,779.00 | 1,037,879,266.13 | 28,894,524.03 | -1,414,184,672.48 | 85,064,896.68 | | III. Changes in Current Period | 0.00 | 0.00 | 0.00 | -6,282,335.29 | -6,282,335.29 | | IV. Balance at Current Period-End | 432,475,779.00 | 1,037,879,266.13 | 28,894,524.03 | -1,420,467,007.77 | 78,782,561.39 | [Company Basic Information](index=48&type=section&id=8.3%20Company%20Basic%20Information) Shanghai Hongda New Material Co, Ltd, established in 2004, is controlled by Jiangsu Weilun Investment Management Co, Ltd and operates in the synthetic materials industry - The company was established on January 7, 2004, and was formerly known as Jiangsu Hongda New Material Co, Ltd[158](index=158&type=chunk) - The company's total share capital is **432,475,779 shares** with a par value of RMB 1 per share[160](index=160&type=chunk) - The controlling shareholder is Jiangsu Weilun Investment Management Co, Ltd, and the actual controller is Zhu Enwei[161](index=161&type=chunk) - The company's main business includes manufacturing synthetic materials, selling high-quality synthetic rubber, and import/export of goods and technologies[161](index=161&type=chunk) - The H1 2025 consolidated financial statements include a total of 5 subsidiaries[162](index=162&type=chunk) [Basis of Preparation of Financial Statements](index=49&type=section&id=8.4%20Basis%20of%20Preparation%20of%20Financial%20Statements) The financial statements are prepared on a going concern basis, despite material uncertainties arising from continuous losses and significant litigation liabilities - These financial statements are prepared in accordance with the Ministry of Finance's Accounting Standards for Business Enterprises, based on the accrual basis and historical cost principle, with exceptions for certain financial instruments[163](index=163&type=chunk) - **Material uncertainty exists regarding the company's going concern ability**, as it has reported negative net profits after non-recurring items from 2022 to H1 2025, with net assets of only **RMB 14.92 million** and estimated litigation liabilities of **RMB 23.90 million** at the end of H1 2025[164](index=164&type=chunk) - The company plans to improve its going concern ability by expanding into new markets, increasing investment in high-margin products, securing additional bank credit, and seeking debt forgiveness from the controlling shareholder[164](index=164&type=chunk)[165](index=165&type=chunk) [Significant Accounting Policies and Estimates](index=50&type=section&id=8.5%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's significant accounting policies and estimates, covering areas such as financial instruments, revenue recognition, and asset valuation - The company adheres to enterprise accounting standards to provide a true and fair view of its financial position, operating results, and cash flows[167](index=167&type=chunk) - Financial assets are classified into three categories: measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss, with detailed policies for initial recognition, subsequent measurement, and impairment[184](index=184&type=chunk)[185](index=185&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk) - The revenue recognition principle is based on identifying performance obligations, determining if they are satisfied over time or at a point in time, and measuring revenue at the transaction price, which is applied to the sale of goods[243](index=243&type=chunk)[244](index=244&type=chunk)[245](index=245&type=chunk)[246](index=246&type=chunk)[247](index=247&type=chunk) - The company applies significant judgments and estimates in areas such as financial asset impairment, inventory write-downs, deferred tax assets, income tax, and provisions[257](index=257&type=chunk)[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) [Taxes](index=70&type=section&id=8.6%20Taxes) The company is subject to various taxes, with certain subsidiaries benefiting from preferential corporate income tax rates Main Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sale of goods | 13% | | Consumption Tax | Taxable turnover | 5% | | Urban Maintenance and Construction Tax | Taxable turnover | 5% | | Corporate Income Tax | Taxable income | 25%, 15%, 5% | - **Tax Incentives**: Subsidiary Dongguan New Oriental Technology Co, Ltd, as a high-tech enterprise, is subject to a preferential corporate income tax rate of **15%**; subsidiary Zhangzhou Xindongda New Materials Co, Ltd qualifies as a small and micro enterprise and enjoys a preferential income tax rate of **20%**[263](index=263&type=chunk) [Notes to Consolidated Financial Statement Items](index=71&type=section&id=8.7%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes on the components of the consolidated financial statements, including breakdowns of assets, liabilities, and income statement items Composition and Restriction of Monetary Funds | Item | Closing Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Cash on Hand | 29,357.61 | 63,125.09 | | Bank Deposits | 42,592,040.45 | 25,049,519.90 | | Other Monetary Funds | 109,490,138.59 | 163,635,963.62 | | **Total** | **152,111,536.65** | **188,748,608.61** | | Details of Restricted Monetary Funds: | | | | Bank Acceptance Bill Margin | 71,670,138.59 | 96,115,963.62 | | Pledged Time Deposits | 37,820,000.00 | 67,520,000.00 | | Frozen Bank Funds | 3,620,146.11 | 3,750,098.22 | | **Total Restricted Funds** | **113,110,284.70** | **167,386,061.84** | Changes in Bad Debt Provision for Accounts Receivable | Category | Opening Balance (RMB) | Current Period Provision (RMB) | Closing Balance (RMB) | | :--- | :--- | :--- | :--- | | Accounts Receivable with Individual Provision | 2,314,842.54 | 0.00 | 2,314,842.54 | | Accounts Receivable with Group Provision (Aging) | 6,186,845.03 | 81,867.85 | 6,268,712.88 | | **Total** | **8,501,687.57** | **81,867.85** | **8,583,555.42** | Changes in Inventory Write-down and Contract Cost Impairment Provisions | Item | Opening Balance (RMB) | Current Period Increase (RMB) | Current Period Decrease (RMB) | Closing Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | | Raw Materials | 1,105,029.84 | 119,073.40 | 194,070.79 | 1,030,032.45 | | Work in Progress | 108,333.67 | 109,146.16 | 91,030.85 | 126,448.98 | | Finished Goods | 417,029.54 | 0.00 | 197,357.51 | 219,672.03 | | Revolving Materials | 23,570.24 | 99,919.66 | 17,088.24 | 106,401.66 | | Goods Shipped | 1,121,113.46 | 0.00 | 1,024,896.61 | 96,216.85 | | **Total** | **2,775,076.75** | **328,139.22** | **1,524,444.00** | **1,578,771.97** | Composition of Provisions | Item | Closing Balance (RMB) | Opening Balance (RMB) | Reason | | :--- | :--- | :--- | :--- | | Pending Litigation | 23,898,066.53 | 20,848,198.01 | Provision for estimated losses from investor lawsuits | | Others | 5,176,898.22 | 4,646,368.22 | Penalties for breach of contract | | **Total** | **29,074,964.75** | **25,494,566.23** | | Operating Revenue and Costs | Item | Current Period Revenue (RMB) | Current Period Costs (RMB) | Prior Period Revenue (RMB) | Prior Period Costs (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 210,735,510.13 | 196,188,941.72 | 112,468,124.19 | 103,779,257.50 | | Other Business | 168,195.66 | 59,516.80 | 81,716.83 | 65,977.13 | | **Total** | **210,903,705.79** | **196,248,458.52** | **112,549,841.02** | **103,845,234.63** | [R&D Expenditures](index=107&type=section&id=8.8%20R&D%20Expenditures) The company's R&D investment in H1 2025 amounted to RMB 3.40 million, all of which was expensed R&D Expenditure Details | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Employee Compensation | 1,617,397.63 | 1,488,910.31 | | Material Costs | 1,749,858.74 | 1,758,966.82 | | Research Equipment and Facility Costs | 33,615.23 | 32,457.84 | | Others | 3,970.84 | 375.00 | | **Total** | **3,404,842.44** | **3,280,709.97** | | Of which: Expensed R&D | 3,404,842.44 | 3,280,709.97 | - There were no R&D projects eligible for capitalization or significant externally acquired ongoing R&D projects during the reporting period[492](index=492&type=chunk)[493](index=493&type=chunk) [Changes in the Scope of Consolidation](index=107&type=section&id=8.9%20Changes%20in%20the%20Scope%20of%20Consolidation) There were no changes in the scope of consolidation during the reporting period - There were no business combinations not under common control, business combinations under common control, reverse acquisitions, or disposals of subsidiaries leading to a loss of control during the reporting period[494](index=494&type=chunk)[495](index=495&type=chunk)[496](index=496&type=chunk)[497](index=497&type=chunk) [Interests in Other Entities](index=108&type=section&id=8.10%20Interests%20in%20Other%20Entities) The company has five wholly-owned subsidiaries, two of which have ceased operations, while the others are engaged in silicone rubber production Composition of the Enterprise Group | Subsidiary Name | Main Place of Business | Business Nature | Ownership (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | | Shanghai Hongzhu Information Technology Co, Ltd | Shanghai | Operations ceased | 100.00% | Establishment or investment | | Shanghai Guanfeng Information Technology Co, Ltd | Shanghai | Operations ceased | 100.00% | Equity acquisition not under common control | | Dongguan New Oriental Technology Co, Ltd | Dongguan | Silicone rubber production | 100.00% | Establishment or investment | | Zhangzhou Xindongda New Materials Co, Ltd | Zhangzhou | Silicone rubber production | 100.00% (Indirect) | Establishment | | Tianchang Xindongcheng New Materials Co, Ltd | Tianchang | Silicone rubber production | 100.00% (Indirect) | Establishment | - During the reporting period, there were no changes in the ownership interests in subsidiaries, and the company had no significant non-wholly-owned subsidiaries, joint ventures, associates, or unconsolidated structured entities[500](index=500&type=chunk)[501](index=501&type=chunk)[502](index=502&type=chunk)[503](index=503&type=chunk)[504](index=504&type=chunk) [Government Grants](index=109&type=section&id=8.11%20Government%20Grants) The company received government grants totaling RMB 0.14 million during the reporting period, primarily related to technical upgrades and tax rebates Liability Items Related to Government Grants | Account | Opening Balance (RMB) | New Grants (RMB) | Transferred to Other Income (RMB) | Closing Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 1,165,488.31 | 0.00 | 138,329.16 | 1,027,159.15 | Asset-related | Government Grants Recognized in Current Profit or Loss | Account | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Other Income (Technical upgrade amortization) | 121,204.14 | 124,285.42 | | Other Income (Coal-fired boiler special subsidy) | 17,125.02 | 17,125.02 | | Other Income (Individual income tax handling fee refund) | 4,505.76 | 3,720.45 | | **Total** | **142,834.92** | **145,130.89** | [Risks Related to Financial Instruments](index=110&type=section&id=8.12%20Risks%20Related%20to%20Financial%20Instruments) The company manages market, credit, and liquidity risks associated with its financial instruments through active monitoring and control measures - **Market Risk**: Includes foreign exchange risk (managed by monitoring rate fluctuations) and interest rate risk (managed through good banking relationships and reasonable credit facility design)[509](index=509&type=chunk)[510](index=510&type=chunk) - **Credit Risk**: Arises mainly from bank deposits and receivables, controlled by assessing debtor creditworthiness, setting credit limits, monitoring credit records, and making provisions for bad debts[510](index=510&type=chunk)[511](index=511&type=chunk) - **Liquidity Risk**: Managed by maintaining sufficient cash and cash equivalents and monitoring them to meet operational needs and mitigate cash flow fluctuations[511](index=511&type=chunk) [Fair Value Disclosures](index=111&type=section&id=8.13%20Fair%20Value%20Disclosures) The company's financial assets measured at fair value consist of trading financial assets (bank wealth management products) valued at RMB 9.86 million Fair Value of Assets and Liabilities Measured at Fair Value at Period-End | Item | Closing Fair Value (RMB) | | :--- | :--- | | (I) Trading Financial Assets | 9,860,845.15 | | 1. Financial assets at FVTPL | 9,860,845.15 | | Bank wealth management products | 9,860,845.15 | - The company's trading financial assets at period-end are bank wealth management products, measured at fair value based on real-time quotes, which falls under **Level 1** of the fair value hierarchy[516](index=516&type=chunk) [Related Parties and Related-Party Transactions](index=112&type=section&id=8.14%20Related%20Parties%20and%20Related-Party%20Transactions) The company's main related-party transactions involve routine business with entities under common control or significant influence, all conducted within approved limits Parent Company Information | Parent Company Name | Registered Location | Business Nature | Registered Capital | Shareholding Ratio | Voting Rights Ratio | | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Weilun Investment Management Co, Ltd | Xinba Town, Yangzhong City | Investment management; trade of polymer materials and machinery | RMB 86.96 million | 29.07% | 29.07% | - Other related parties include the actual controller Zhu Enwei, entities under common control, and entities under significant influence (such as Jiangsu Mingzhu Silicone Rubber Materials Co, Ltd)[520](index=520&type=chunk)[521](index=521&type=chunk) Related-Party Transactions for Goods and Services | Related Party | Transaction Content | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | :--- | | Jiangsu Mingzhu Silicone Rubber Materials Co, Ltd and its subsidiaries | Purchase of raw materials and goods | 592,623.88 | 41,656,627.02 | | Jiangsu Mingzhu Silicone Rubber Materials Co, Ltd and its subsidiaries | Provision of technical services | 147,169.81 | 141,509.43 | | Jiangsu Mingzhu Silicone Rubber Materials Co, Ltd and its subsidiaries | Sale of goods | 11,532,467.38 | 495,903.98 | Key Management Personnel Compensation | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Company Directors, Supervisors, and Senior Management | 1,179,450.75 | 1,128,467.52 | - **Related-Party Commitments**: The controlling shareholder and its related parties have committed to ensuring the company's independence, standardizing and reducing related-party transactions, and avoiding competition, with some competition issues already resolved[538](index=538&type=chunk)[539](index=539&type=chunk)[541](index=541&type=chunk)[542](index=542&type=chunk)[543](index=543&type=chunk) [Share-based Payment](index=115&type=section&id=8.15%20Share-based%20Payment) The company had no share-based payment arrangements during the reporting period - The company had no share-based payment arrangements during the reporting period[541](index=541&type=chunk)[542](index=542&type=chunk) [Commitments and Contingencies](index=116&type=section&id=8.16%20Commitments%20and%20Contingencies) The company has significant commitments regarding corporate governance and unfulfilled performance guarantees, alongside major contingencies from investor lawsuits and a payment dispute - **Significant Commitments**: The controlling shareholder and actual controller have committed to avoiding competition, regulating related-party transactions, and maintaining the company's independence, with some progress made[541](index=541&type=chunk)[542](index=542&type=chunk)[543](index=543&type=chunk) - **Guanfeng Performance Commitment**: The performance commitment for Shanghai Guanfeng for 2019-2021 was not met, and significant asset impairment occurred, requiring performance and impairment compensation up to **RMB 225 million**, of which **RMB 135 million** is unlikely to be recovered[544](index=544&type=chunk)[545](index=545&type=chunk) - **Investor Litigation**: As of the report date, 227 investor lawsuits have been filed with claims totaling **RMB 25.79 million**; 207 cases (amounting to **RMB 23.90 million**) are still pending, for which provisions have been made[546](index=546&type=chunk) - **Subrogation Dispute**: A court ordered the company to pay **RMB 8.48 million** to Shanghai Aoyin Investment Management Co, Ltd; the verdict was upheld on appeal, and the company has been listed as a dishonest judgment debtor for non-payment[547](index=547&type=chunk)[548](index=548&type=chunk)[549](index=549&type=chunk) [Post-Balance Sheet Events](index=118&type=section&id=8.17%20Post-Balance%20Sheet%20Events) There were no post-balance sheet events to report - There were no post-balance sheet events to report[551](index=551&type=chunk) [Other Important Matters](index=118&type=section&id=8.18%20Other%20Important%20Matters) There were no other important matters to report - There were no other important matters to report[552](index=552&type=chunk) [Notes to Main Items of the Parent Company's Financial Statements](index=118&type=section&id=8.19%20Notes%20to%20Main%20Items%20of%20the%20Parent%20Company's%20Financial%20Statements) This section details key items in the parent company's financial statements, including receivables and long-term equity investments Parent Company Bad Debt Provision for Accounts Receivable | Bad Debt Provision | Balance at Jan 1, 2025 (RMB) | Current Period Provision (RMB) | Balance at Jun 30, 2025 (RMB) | | :--- | :--- | :--- | :--- | | Stage 1: 12-month ECL | 83,885.40 | -83,885.40 | 0.00 | Parent Company Other Receivables by Nature | Nature of Funds | Closing Book Balance (RMB) | Opening Book Balance (RMB) | | :--- | :--- | :--- | | Petty Cash | 1,829.97 | 5,637.94 | | Loans | 247,117,874.90 | 249,794,170.25 | | Deposits | 198,720.36 | 234,098.16 | | Others | 14,547.98 | 14,547.98 | | **Total** | **247,332,973.21** | **250,048,454.33** | Parent Company Bad Debt Provision for Other Receivables | Bad Debt Provision | Balance at Jan 1, 2025 (RMB) | Current Period Provision (RMB) | Balance at Jun 30, 2025 (RMB) | | :--- | :--- | :--- | :--- | | Stage 1: 12-month ECL | 71,238.74 | 28,212.99 | 99,451.73 | | Stage 3: Lifetime ECL (Credit-impaired) | 232,683,154.49 | 15,566.98 | 232,698,721.47 | | **Total** | **232,754,393.23** | **43,779.97** | **232,798,173.20** | Parent Company Investments in Subsidiaries | Investee | Opening Balance (Book Value) (RMB) | Closing Balance (Book Value) (RMB) | Closing Impairment Provision (RMB) | | :--- | :--- | :--- | :--- | | Dongguan New Oriental | 73,434,900.00 | 73,434,900.00 | 0.00 | | Shanghai Guanfeng | 0.00 | 0.00 | 225,000,000.00 | | Shanghai Hongzhu | 0.00 | 0.00 | 150,000,000.00 | | **Total** | **73,434,900.00** | **73,434,900.00** | **375,000,000.00** | [Supplementary Information](index=123&type=section&id=8.20%20Supplementary%20Information) This section provides details on non-recurring items and key performance indicators such as return on net assets and earnings per share Details of Non-recurring Profit and Loss for H1 2025 | Item | Amount (RMB) | Description | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -8,063.80 | Loss on disposal of fixed assets, not sustainable | | Government Grants Recognized in Current Profit/Loss | 142,834.92 | Amortization of deferred income, not sustainable | | Fair Value Changes and Disposal Gains/Losses on Financial Assets/Liabilities Held by Non-financial Enterprises | 185,420.24 | Fair value changes and disposal gains on bank wealth management products, not sustainable | | Other Non-operating Income and Expenses | -4,145,039.45 | Mainly provisions for non-operating expenses related to investor litigation, not sustainable | | **Total** | **-3,824,848.09** | | Return on Net Assets and Earnings Per Share | Profit for the Period | Weighted Average Return on Net Assets | Basic EPS (RMB/share) | Diluted EPS (RMB/share) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders | -48.74% | -0.0215 | -0.0215 | | Net profit attributable to common shareholders after deducting non-recurring items | -14.05% | -0.127 | -0.127 | [Section 9 Other Submitted Data](index=125&type=section&id=Section%209%20Other%20Submitted%20Data) [Other Major Social Safety Issues](index=12

跨境通宝电子商务股份有限公司 2025 年半年度报告全文 跨境通宝电子商务股份有限公司 2025 年半年度报告 2025 年 8 月 1 跨境通宝电子商务股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容 的真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担 个别和连带的法律责任。 公司负责人李勇、主管会计工作负责人李玉霞及会计机构负责人(会计主 管人员)赵刚声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 本报告中所涉及的未来发展战略及计划等前瞻性陈述，不构成公司对投资 者的实质性的承诺，投资者及相关人士均应当对此保持足够的风险认识，并 且应当理解计划、预测与承诺之间的差异。敬请投资者注意投资风险。 公司在本报告第三节"管理层讨论与分析"中"十、公司面临的风险和应 对措施"部分，描述了公司经营中可能存在的风险，敬请投资者注意阅读。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | | . | | --- | --- | | | 1 | | . | ...

中山公用事业集团股份有限公司 2025 年半年度报告全文 2025年半年度报告 2025 年 8 月 中山公用事业集团股份有限公司 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。 公司负责人郭敬谊、主管会计工作负责人周飞媚及会计机构负责人(会计主管人员)丁 成东声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 本半年度报告涉及未来计划等前瞻性陈述，不构成公司对投资者的实质承诺，敬请投 资者注意投资风险。 公司已在本半年度报告第三节"管理层讨论与分析"中分析了公司未来发展可能面临 的风险和应对措施情况，敬请投资者留意查阅。 公司计划不派发现金红利，不送红股，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 | | 5 | | 第三节 | 管理层讨论与分析 | | 9 | | 第四 ...

1 深圳市富安娜家居用品股份有限公司 2025 年半年度报告全文 深圳市富安娜家居用品股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容 的真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担 个别和连带的法律责任。 公司负责人林国芳、主管会计工作负责人张倩及会计机构负责人（会计 主管人员）张倩声明：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。 本公告中涉及的未来发展规划及事项的陈述，属于计划性事项，不构成 公司对投资者的实质承诺，请投资者注意风险。 公司在本报告"第三节管理层讨论与分析"之"十一、公司面临的风险 和应对措施"部分，详细描述了公司经营中可能存在的风险及应对措施，敬 请投资者关注相关内容。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | 第一节 | 重要提示、目录和释义 | 2 | | --- | --- | --- | | 第二节 | 公司简介和主要财务指标 | 6 | | 第三节 | 管理层讨论与分析 | 9 | | 第四节 | 公 ...

Part I [Important Notice](index=2&type=section&id=Important%20Notice) The Board of Directors, Supervisory Board, and senior management guarantee the report's accuracy, while the company plans no cash dividends, bonus shares, or capital reserve conversions, noting risks like macroeconomics and the Shanghai Yitong case - The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false records, misleading statements, or major omissions[4](index=4&type=chunk) - Company head Zhao Fujun, chief accountant Ding Dan, and head of accounting Wei Wenjun declare the financial report in this semi-annual report is true, accurate, and complete[4](index=4&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5](index=5&type=chunk) - While currently free from major operational risks, investors are advised to note macroeconomic and policy risks, industry competition, accounts receivable recovery, and the Shanghai Yitong case with related compensation risks[4](index=4&type=chunk) [Table of Contents and Reference Documents](index=3&type=section&id=Table%20of%20Contents%20and%20Reference%20Documents) This section outlines the semi-annual report's main chapters, including key notices, company profile, MD&A, and other data, along with a list of reference documents for completeness and traceability - The main chapters of the report include Important Notice, Company Profile and Key Financial Indicators, Management Discussion and Analysis, and Other Submitted Data[7](index=7&type=chunk) - Reference documents include signed and sealed financial statements, originals of all publicly disclosed company documents and announcements, and the original full and summary semi-annual report signed by the legal representative[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section defines common terms used in the report, including company abbreviations, reporting period, key subsidiaries, and essential technology concepts like AI, GPT, and low-code, ensuring clear understanding - The reporting period refers to January 1, 2025, to June 30, 2025[13](index=13&type=chunk) - AI is defined as a new technical science researching and developing theories, methods, technologies, and application systems to simulate, extend, and expand human intelligence, serving as a key driver for the new round of technological revolution and industrial transformation[13](index=13&type=chunk) - GPT refers to Generative Pre-trained Transformer models, a deep learning model for text generation trained on internet-based data[13](index=13&type=chunk) - Low-code refers to a development platform that enables rapid visual generation of new applications with minimal or no coding, primarily using drag-and-drop methods[13](index=13&type=chunk) Part II Company Profile and Key Financial Indicators [Company Profile and Contact Information](index=6&type=section&id=Company%20Profile%20and%20Contact%20Information) The company, Jiuqi Software (stock code 002279) listed on SZSE, has Zhao Fujun as legal representative, with unchanged contact details for its secretary and representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Jiuqi Software | | Stock Code | 002279 | | Listed Stock Exchange | Shenzhen Stock Exchange | | Legal Representative | Zhao Fujun | Contact Information | Position | Name | Phone | Email | | :--- | :--- | :--- | :--- | | Board Secretary | Wang Haixia | 010-58022988 | whx@jiuqi.com.cn | | Securities Affairs Representative | Qiu Jing | 010-58022988 | qiujing@jiuqi.com.cn | - The company's registered address, office address, website, and email remained unchanged during the reporting period, as detailed in the 2024 annual report[17](index=17&type=chunk) [Key Accounting Data and Financial Indicators](index=6&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) This period, revenue significantly dropped by **51.22% to RMB 855.75 million**, but net loss attributable to shareholders narrowed from **RMB 150 million to RMB 75 million**, with total assets and net assets also decreasing Key Accounting Data and Financial Indicators for the Current Period | Indicator | Current Period (RMB) | Prior Period (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 855,750,811.42 | 1,754,277,088.75 | -51.22% | | Net Profit Attributable to Shareholders of Listed Company | -75,393,481.86 | -149,805,301.52 | -- | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | -80,668,769.11 | -154,482,281.84 | -- | | Net Cash Flow from Operating Activities | -400,975,229.29 | -452,677,661.90 | -- | | Basic Earnings Per Share | -0.0872 | -0.1732 | -- | | Diluted Earnings Per Share | -0.0872 | -0.1732 | -- | | Weighted Average Return on Net Assets | -5.48% | -9.45% | 3.97% | | **End of Current Period** | **End of Prior Year** | **Change from Prior Year-End** | | | Total Assets | 2,145,876,850.70 | 2,523,615,668.48 | -14.97% | | Net Assets Attributable to Shareholders of Listed Company | 1,346,513,035.67 | 1,407,167,296.80 | -4.31% | - Net profit after deducting the impact of share-based payments was **RMB -60,768,481.86**[20](index=20&type=chunk) [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) During the reporting period, the company reported no differences in net profit or net assets between financial statements prepared under international or overseas accounting standards and Chinese accounting standards - During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[21](index=21&type=chunk) - During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards[22](index=22&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 for this period amounted to **RMB 5,275,287.25**, primarily from government grants, fair value changes in financial assets, wealth management income, and reversal of impairment provisions for receivables Non-Recurring Gains and Losses and Amounts | Item | Amount (RMB) | Explanation | | :--- | :--- | :--- | | Gains and losses from disposal of non-current assets | -173,446.62 | | | Government grants recognized in current profit or loss | 960,381.64 | | | Gains and losses from changes in fair value and disposal of financial assets and liabilities | 2,291,079.95 | Primarily due to fair value changes in financial assets held for trading during the reporting period | | Gains and losses from entrusted investments or asset management | 870,886.91 | Primarily due to income from purchasing wealth management products during the reporting period | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 1,548,803.33 | Primarily due to the reversal of bad debt provisions for data transmission business accounts receivable individually provided for in prior years, recovered during the reporting period | | Other non-operating income and expenses apart from the above | 422,201.38 | Primarily due to contract penalty income | | Less: Income tax impact | 546,155.91 | | | Minority interest impact (after tax) | 98,463.43 | | | **Total** | **5,275,287.25** | | Part III Management Discussion and Analysis [Company's Main Businesses During the Reporting Period](index=9&type=section&id=Company%27s%20Main%20Businesses%20During%20the%20Reporting%20Period) The company focuses on digital government, enterprise, and marketing, leveraging 'large models + intelligent agents' to empower vertical scenarios, enhancing its Noah platform with AI and strengthening product lines in management software and digital communication - The company specializes in informatization, digital transformation, and intelligent upgrade services for government and enterprise clients, focusing on three major business areas: digital government, digital enterprise, and digital marketing[27](index=27&type=chunk) - During the reporting period, the company accelerated the integration of the AI general large model ecosystem, continuously iterated and optimized the Noah platform, officially released Noah GPT 3.0, and completed the construction of eight major technical capability systems[27](index=27&type=chunk) - Centered on the Noah platform, the company simultaneously advances 'platform upgrade, AI empowerment, and security foundation,' continuously improving its main product lines and focusing on both management software and digital communication sectors[27](index=27&type=chunk) [Main Product Line Overview](index=9&type=section&id=Main%20Product%20Line%20Overview) The company's eight product lines are intelligently upgraded with AI large model technology, enhancing government reporting, asset management, enterprise performance, financial risk control, smart courts, intelligent transportation, smart construction, and data asset platforms - The government reporting and statistics product line, based on a large model foundation, has fully upgraded its pre-budget and final accounts public cloud platform, enhancing large model capabilities such as intelligent auditing and smart reporting for its products[28](index=28&type=chunk) - The asset management product line deeply integrates AI large model technology into core scenarios, launching the 'National Administrative and Public Institutions State-owned Asset Adjustment and Sharing Platform' to build a nationwide 'single network for asset adjustment and sharing'[29](index=29&type=chunk) - The enterprise performance product line, driven by AI technology and leveraging Noah GPT's large model governance and extension capabilities, implements typical scenarios such as smart benchmarking, intelligent forecasting, smart editing and auditing, and in-depth analysis[31](index=31&type=chunk) - The financial product line accelerates the digital upgrade of business-finance collaboration, launching smart reimbursement products and empowering the Ministry of Finance's internal control evaluation with AI large models, increasing audit accuracy to approximately **90%**[32](index=32&type=chunk) - The smart court product line fully integrates into a 'single network,' iteratively upgrading trial software, launching new products like trial audio and video desensitization, and optimizing the underlying architecture of the Rhythm large model[33](index=33&type=chunk) - The smart transportation product line launched the lightweight TOCC series product, Smart Transportation Basic Technology Platform V1.0, and deepened the application of AI large models to enhance product intelligence[34](index=34&type=chunk) - The smart construction product line optimized the smart construction site IOT platform, deepened BIM model development and application display, and integrated large model capabilities into core project management scenarios using Noah GPT[35](index=35&type=chunk) - The data asset product line launched the 'Jiuqi Noah Data Intelligence Platform,' integrating AI and large model technologies to achieve precise control over all stages of data assets, from rights confirmation and registration to circulation and transaction[36](index=36&type=chunk) [Main Business Expansion Overview](index=11&type=section&id=Main%20Business%20Expansion%20Overview) Management software revenue grew **26.94% to RMB 325 million**, expanding across various sectors, while digital communication revenue fell **64.76% to RMB 527 million** due to overseas platform policy changes, yet it continues to drive domestic and international market growth through marketing and technology Management Software Business Revenue | Indicator | Current Period (RMB 10,000) | Year-on-Year Change | | :--- | :--- | :--- | | Management Software Business Revenue | 32,507.42 | 26.94% | - The finance sector comprehensively advanced its business layout in asset management, departmental final accounts, unified reporting, financial and cultural asset supervision, internal control, and electronic accounting vouchers, achieving nationwide data interoperability and market penetration[38](index=38&type=chunk) - The education sector deepened its digital service layout, making progress in industry regulatory informatization, smart higher education, intelligent basic education, and socialized vocational education, signing new contracts with multiple 'Double First-Class' universities[39](index=39&type=chunk) - The transportation sector actively explored new growth points in integrated transportation and smart civil aviation, signing new projects with the Ministry of Transport and China Transport Telecommunications & Information Center, and launching the UOM HarmonyOS version[40](index=40&type=chunk) - The political and legal sector, centered on court business, enhanced product intelligence, optimized data interaction processes, and leveraged the Rhythm large model to create a legal vertical large model, expanding into procuratorial and judicial administration businesses[41](index=41&type=chunk) - The construction and real estate sector continued to deeply cultivate the financial domain of central enterprise headquarters, meticulously developing central enterprise secondary units, and successfully signed management system projects with China Railway 19th Bureau and China Railway Major Bridge Engineering Group, achieving rapid product replication[42](index=42&type=chunk) - The energy and manufacturing sector deeply integrated into digital and intelligent transformation, successfully signing key projects with China Huadian, CNOOC, and China Coal Group, consolidating its advantages in financial process automation and intelligent management decision-making[44](index=44&type=chunk) Digital Communication Business Revenue | Indicator | Current Period (RMB 10,000) | Year-on-Year Change | | :--- | :--- | :--- | | Digital Communication Business Revenue | 52,668.48 | -64.76% | - Digital communication business revenue decreased by **64.76%** year-on-year, primarily due to changes in overseas media platform policies requiring some revenue to be recognized using the net method[45](index=45&type=chunk) - The digital communication business deeply cultivates new media ecosystem operations and precision marketing in the domestic market, expands global resource networks like Meta and Google for overseas business, and deepens the application of its independently developed AI marketing assistant, JoinMC[45](index=45&type=chunk) [Industry Development and Countermeasures](index=13&type=section&id=Industry%20Development%20and%20Countermeasures) China's digital economy is thriving, with software and IT services growing. The company, a core digital economy player, aligns with national policies by focusing on digital government and enterprise, leveraging its Noah low-code platform for scenario-based data governance and digital transformation - In the first half of 2025, China's software and information technology service industry performed well, achieving software business revenue of **RMB 7.0585 trillion**, a **11.9%** year-on-year increase; total profit reached **RMB 858.1 billion**, up **12.0%** year-on-year[46](index=46&type=chunk) - The company's products and services focus on digital government and digital enterprise, aligning with key areas of digital economic development, leveraging nearly **30 years** of government data service experience, and deeply integrating AI technology[47](index=47&type=chunk) - The company will drive future growth through scenario-based exploration and refined data governance, leveraging its new generation Noah low-code platform to deepen its presence in government assets, financial supervision and internal control, electronic vouchers, enterprise performance, and treasury management scenarios[48](index=48&type=chunk) [Core Competitiveness Analysis](index=14&type=section&id=Core%20Competitiveness%20Analysis) The company's core competitiveness lies in R&D, products, and brand, with continuous development of its Noah GPT 3.0 AI platform, breakthroughs in data asset management and EPM, and enhanced market influence through refined services and partner programs - The company, driven by technological innovation, continuously builds an independent, controllable, open, compatible, and evolving technical system, iteratively launching the Jiuqi AI foundation—Noah GPT 3.0 series versions[49](index=49&type=chunk) - The company holds important qualifications such as CMMI L5, Information Technology Service Operation and Maintenance Standard Compliance Certificate (Level 1), and Information System Construction and Service Capability Level (CS4) Certificate, and acquired **16 new software copyrights and 2 invention patents** during the reporting period[50](index=50&type=chunk) - Leveraging the deep integration capabilities of the Noah GPT large model, the company has achieved breakthrough progress in data asset management and operations, financial supervision and internal control management, and the high-end EPM market[51](index=51&type=chunk) - With extensive project experience and a strong industry reputation, the company received honors such as the '2024 China CFO Excellent Partner Award – 2024 China EPM Gold Service Provider'[52](index=52&type=chunk) - The company deepens its services, improves cross-departmental collaboration mechanisms, launched the 'Escort Action' to monitor the entire project lifecycle, and promotes the city partner program to enhance regional service response capabilities[53](index=53&type=chunk)[54](index=54&type=chunk) [Main Business Analysis](index=15&type=section&id=Main%20Business%20Analysis) Operating revenue decreased by **51.22%** due to digital communication policy changes, shifting to net revenue recognition, yet e-government and group control revenues grew by **35.86%** and **17.11%** respectively, maintaining high gross margins, while internet business revenue dropped **64.77%** but improved gross margin Year-on-Year Changes in Key Financial Data | Indicator | Current Period (RMB) | Prior Period (RMB) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 855,750,811.42 | 1,754,277,088.75 | -51.22% | Affected by changes in customer policies of overseas media platforms for digital communication business suppliers, some revenue no longer meets the requirements for recognition using the gross method and needs to be recognized using the net method | | Operating Cost | 518,306,742.12 | 1,490,913,624.51 | -65.24% | Affected by changes in customer policies of overseas media platforms for digital communication business suppliers, some revenue no longer meets the requirements for recognition using the gross method and needs to be recognized using the net method | | Selling Expenses | 49,588,585.20 | 49,011,577.73 | 1.18% | | | Administrative Expenses | 258,961,933.00 | 232,879,795.86 | 11.20% | | | Financial Expenses | -4,537,935.22 | -1,533,930.09 | -- | Primarily due to a decrease in exchange losses this period | | Income Tax Expense | -1,937,174.13 | -228,662.61 | -- | Primarily due to a year-on-year decrease in deferred income tax expense this period | | R&D Investment | 130,445,957.43 | 159,141,185.43 | -18.03% | | | Net Cash Flow from Operating Activities | -400,975,229.29 | -452,677,661.90 | -- | | | Net Cash Flow from Investing Activities | 241,898,071.24 | 216,395,508.68 | 11.79% | | | Net Cash Flow from Financing Activities | 22,799,560.30 | -121,822,222.30 | -- | Primarily due to payment of share repurchase funds for minority shareholders of subsidiaries and secondary market share repurchase funds in the prior year | | Net Increase in Cash and Cash Equivalents | -137,542,230.70 | -357,871,269.76 | -- | | | Credit Impairment Loss | 1,581,655.81 | -3,004,401.41 | -- | Primarily due to the impact of bad debt provision reversal this period | | Gains from Changes in Fair Value | 2,291,079.95 | 4,027,987.29 | -43.12% | Primarily due to changes in fair value of financial assets held for trading and other non-current financial assets this period | | Other Income | 5,084,483.31 | 7,581,426.46 | -32.94% | Primarily due to a year-on-year decrease in VAT refunds received this period | Operating Revenue Composition (by Industry) | Industry | Current Period Amount (RMB) | Proportion of Operating Revenue | Prior Period Amount (RMB) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | E-Government | 182,305,651.01 | 21.30% | 134,187,383.20 | 7.65% | 35.86% | | Group Control | 142,768,504.14 | 16.68% | 121,904,583.53 | 6.95% | 17.11% | | Internet Business | 526,684,776.78 | 61.55% | 1,494,781,987.56 | 85.21% | -64.77% | | Other Businesses | 3,991,879.49 | 0.47% | 3,403,134.46 | 0.19% | 17.30% | Operating Revenue Composition (by Product) | Product | Current Period Amount (RMB) | Proportion of Operating Revenue | Prior Period Amount (RMB) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Software Products | 57,006,643.66 | 6.66% | 42,860,633.94 | 2.44% | 33.00% | | Hardware Products | 7,965,436.41 | 0.93% | 10,809,625.80 | 0.62% | -26.31% | | Technical Services | 260,102,075.08 | 30.39% | 202,421,706.99 | 11.54% | 28.50% | | Information Services | 526,684,776.78 | 61.55% | 1,494,781,987.56 | 85.21% | -64.77% | | Other Businesses | 3,991,879.49 | 0.47% | 3,403,134.46 | 0.19% | 17.30% | Gross Margin of Main Businesses | Industry/Product | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | E-Government | 182,305,651.01 | 24,597,092.38 | 86.51% | 35.86% | 14.31% | 2.54% | | Group Control | 142,768,504.14 | 3,475,636.75 | 97.57% | 17.11% | -15.76% | 0.95% | | Internet Business | 526,684,776.78 | 489,409,446.74 | 7.08% | -64.77% | -66.59% | 5.06% | | Software Products | 57,006,643.66 | 5,078,233.73 | 91.09% | 33.00% | 41.74% | -0.55% | | Technical Services | 260,102,075.08 | 17,550,753.08 | 93.25% | 28.50% | 25.91% | 0.14% | | Information Services | 526,684,776.78 | 489,409,446.74 | 7.08% | -64.77% | -66.59% | 5.06% | - Internet business operating revenue and operating costs significantly decreased year-on-year, primarily due to changes in overseas media platform customer policies for digital communication business suppliers, requiring some revenue to be recognized using the net method[63](index=63&type=chunk) [Analysis of Assets and Liabilities](index=17&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) Total assets decreased by **14.97%** and net assets by **4.31%** at period-end, with shifts in financial assets, prepayments, and payables. Overseas assets of Jiuqi Digital Communication (Hong Kong) reached **RMB 459 million**, representing **33.42%** of net assets with good returns, though some bank accounts are restricted due to litigation Significant Changes in Asset Composition | Item | Ending Balance (RMB) | Proportion of Total Assets | Prior Year-End Balance (RMB) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 2,145,876,850.70 | 100% | 2,523,615,668.48 | 100% | -14.97% | | | Monetary Capital | 433,659,859.32 | 20.21% | 451,322,500.04 | 17.88% | 2.33% | No significant change | | Accounts Receivable | 600,237,079.65 | 27.97% | 641,686,534.12 | 25.43% | 2.54% | No significant change | | Investment Properties | 50,681,490.57 | 2.36% | 22,922,690.76 | 0.91% | 1.45% | Primarily due to the transfer of self-used real estate to investment properties by a subsidiary this period | | Construction in Progress | 84,937,168.23 | 3.96% | 124,357,662.97 | 4.93% | -0.97% | Primarily due to partial capitalization of Jiuqi Government office building construction this period | | Financial Assets Held for Trading | 314,805,441.67 | 14.67% | 575,024,867.01 | 22.79% | -8.12% | Primarily due to the redemption of wealth management products during the reporting period | | Prepayments | 53,326,778.77 | 2.49% | 16,763,542.33 | 0.66% | 1.83% | Primarily due to an increase in prepayments for digital communication business this period | | Accounts Payable | 273,031,139.82 | 12.72% | 525,641,444.96 | 20.83% | -8.11% | Primarily due to a decrease in unsettled payables to digital communication business suppliers this period | | Employee Benefits Payable | 19,592,583.65 | 0.91% | 123,788,242.50 | 4.91% | -4.00% | Primarily due to the payment of year-end bonuses accrued at the end of the prior year | | Other Payables | 81,220,565.07 | 3.78% | 52,077,453.56 | 2.06% | 1.72% | Primarily due to an increase in restricted stock repurchase obligations recognized this period | Key Overseas Asset Information | Specific Asset Content | Asset Scale (RMB) | Location | Profitability (RMB) | Proportion of Overseas Assets to Company's Net Assets | | :--- | :--- | :--- | :--- | :--- | | Jiuqi Digital Communication (Hong Kong) Co., Ltd. | 459,036,257.64 | Hong Kong | 12,036,709.27 | 33.42% | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (RMB) | Fair Value Change Gains/Losses for the Period (RMB) | Amount Purchased During the Period (RMB) | Amount Sold During the Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 575,024,867.01 | 3,369,818.43 | 520,000,000.00 | 777,999,488.00 | 314,805,441.67 | | Other Non-Current Financial Assets | 5,747,173.86 | -1,078,738.48 | 4,000,000.00 | 0 | 8,668,436.38 | | **Subtotal of Financial Assets** | **580,772,040.87** | **2,291,079.95** | **524,000,000.00** | **777,999,488.00** | **323,473,878.05** | - As of the end of the reporting period, **RMB 2,928,681.55** in funds from the bank account of the company's wholly-owned subsidiary, Jiuqi Digital, were frozen; **RMB 785,110.21** from the bank account of Shanghai Yiqilian Technology Co., Ltd., a subsidiary of Jiuqi Digital, were also frozen[72](index=72&type=chunk) [Investment Analysis](index=19&type=section&id=Investment%20Analysis) During the reporting period, the company's investment decreased by **19.30% to RMB 543 million**, with no securities or derivative investments, or use of raised funds. The major non-equity investment is the Jiuqi Government R&D Center project, with a cumulative investment of **RMB 211 million** and **67.30%** completion Investment Amount During the Reporting Period | Indicator | Investment Amount (RMB) | Investment Amount in Prior Period (RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 542,629,899.49 | 672,365,935.78 | -19.30% | - The company had no securities or derivative investments during the reporting period[76](index=76&type=chunk)[77](index=77&type=chunk) Significant Non-Equity Investment Information | Project Name | Investment Method | Cumulative Actual Investment Amount as of End of Reporting Period (RMB) | Project Progress | | :--- | :--- | :--- | :--- | | Jiuqi Government R&D Center Construction Project | Self-built | 211,123,788.77 | 67.30% | [Analysis of Major Holding and Associate Companies](index=20&type=section&id=Analysis%20of%20Major%20Holding%20and%20Associate%20Companies) Jiuqi Digital's revenue fell **64.76% to RMB 527 million**, but net profit surged **217.18% to RMB 15.76 million** due to higher gross margins and lower labor costs. Huaxia Diantong turned profitable with **RMB 3.69 million** net profit, while other subsidiaries reduced losses and increased revenue from project completions and cost savings Financial Performance of Major Subsidiaries | Company Name | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | | Jiuqi Digital Communication Co., Ltd. | 526,684,776.78 | 15,348,070.73 | 15,756,617.15 | | Beijing Huaxia Diantong Technology Co., Ltd. | 32,582,555.37 | 3,809,895.27 | 3,692,724.12 | | Beijing Jiuqi Jinjian Technology Co., Ltd. | 24,297,485.71 | -13,322,366.06 | -13,116,340.26 | | Xi'an Jiuqi Software Co., Ltd. | 4,292,555.31 | -15,183,053.60 | -15,183,053.60 | | Beijing Jiuqi Government Software Co., Ltd. | 13,477,093.35 | -31,797,168.92 | -31,706,502.01 | - Jiuqi Digital's operating revenue decreased by **64.76%** year-on-year, mainly due to some revenue being recognized using the net method; net profit increased by **217.18%** year-on-year, primarily due to improved business gross margin and reduced labor costs[82](index=82&type=chunk) - Huaxia Diantong turned losses into profits, achieving a net profit of **RMB 3.6927 million**, mainly due to reduced labor costs and increased project acceptance[83](index=83&type=chunk) - Jiuqi Jinjian, Xi'an Jiuqi, and Jiuqi Government reduced their losses, with operating revenues increasing across the board, primarily due to increased project acceptance and reduced labor costs[83](index=83&type=chunk) - During the reporting period, the company disposed of a portion of its equity in Beijing Jiuqi Yishi Technology Co., Ltd., changing it to an associate company, which had no significant impact[82](index=82&type=chunk) [Risks Faced by the Company and Countermeasures](index=22&type=section&id=Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces four key risks: macroeconomic and policy, industry competition, accounts receivable recovery, and the Shanghai Yitong case, which it addresses through policy monitoring, technological innovation, credit assessment, and legal cooperation to ensure stable development - Macroeconomic and policy risks: National support policies for the software industry may change; the company will continuously monitor policy dynamics, strengthen risk management, and focus on industry-specific development[84](index=84&type=chunk) - Industry competition risks: Technological changes accelerate market competition; the company will strengthen forward-looking judgment, establish rapid response mechanisms, and drive financial digitalization and intelligent transformation through technological innovation[85](index=85&type=chunk) - Accounts receivable recovery risks: The digital communication business may face overdue accounts receivable risks; the company will improve customer credit evaluation, strengthen recovery management, optimize customer structure, and take legal measures[86](index=86&type=chunk) - Shanghai Yitong case and related compensation risks: Key individuals involved in the case have absconded, and compensation amounts are uncertain; the company will continue to actively cooperate with judicial authorities to recover losses[87](index=87&type=chunk) Part IV Corporate Governance, Environment and Society [Changes in Directors, Supervisors, and Senior Management](index=24&type=section&id=Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, the company's Supervisory Board saw changes as Mr. Ren Debao resigned as employee supervisor, and Mr. Wang Zhan was elected as the employee representative supervisor for the Eighth Supervisory Board - Mr. Ren Debao resigned as an employee supervisor of the company's Eighth Supervisory Board on February 21, 2025, but continues to serve as the company's Brand Promotion Department Manager[90](index=90&type=chunk) - Mr. Wang Zhan was elected as the employee representative supervisor of the company's Eighth Supervisory Board by the employee representative assembly[90](index=90&type=chunk) [Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Period](index=24&type=section&id=Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20for%20the%20Current%20Period) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[91](index=91&type=chunk) [Implementation of Share Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=24&type=section&id=Implementation%20of%20Share%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company continues its share incentive plans; **2,440,330** restricted shares from the 2022 plan were repurchased and cancelled in June 2025 due to unmet performance targets, while **10 million** shares from the 2024 plan were granted and registered in January 2025, currently in lock-up - The unlocking conditions for the third restricted period of the 2022 Restricted Stock Incentive Plan were not met at the company level, and **2,440,330** restricted shares were repurchased and cancelled on June 16, 2025[96](index=96&type=chunk) - The 2024 Restricted Stock Incentive Plan granted **10 million** restricted shares to **13 incentive recipients** on December 20, 2024, at a grant price of **RMB 3.15 per share**, with grant registration completed on January 24, 2025[98](index=98&type=chunk) - The 2024 Restricted Stock Incentive Plan is currently in its lock-up period; after the first lock-up period ends, the company will follow regulations to complete approval procedures and related matters[98](index=98&type=chunk) [Environmental Information Disclosure](index=25&type=section&id=Environmental%20Information%20Disclosure) The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[99](index=99&type=chunk) [Social Responsibility](index=25&type=section&id=Social%20Responsibility) The company actively fulfills its social responsibilities by protecting shareholder and creditor rights, prioritizing employee welfare, promoting public welfare, and supporting rural revitalization through improved governance, transparent disclosure, employee care, optimized customer service, and digital village initiatives - The company highly values the legitimate rights and interests of shareholders and creditors, initiated the revision of company regulations under the new Company Law, and strengthened information disclosure and investor communication[100](index=100&type=chunk) - Adhering to the principle of 'respecting, valuing, and treating talent well,' the company protects employee rights through welfare activities, career development training, and the 'President's Talk' column, while consistently engaging in charitable causes like educational support for many years[101](index=101&type=chunk) - Upholding the principle of 'customer first, service paramount,' the company provides solutions through its self-developed technical platform, optimizes after-sales service, strengthens information security management, and adheres to fair procurement and equal opportunity principles to protect customer and supplier rights[102](index=102&type=chunk) - The company actively responds to the national rural revitalization strategy, leveraging its 'Internet + Accounting Factory' business model to upgrade its flagship digital rural product, 'JiuZhangTong' V2.0, thereby supporting the modernization of rural governance[103](index=103&type=chunk) Part V Significant Matters [Commitments](index=27&type=section&id=Commitments) During the reporting period, the company faced an overdue performance commitment and compensation from former actual controller Huang Jiaxiao regarding Shanghai Yitong's asset restructuring. Due to absconding individuals, the final outcome is uncertain, and the company will continue legal action to protect its rights - Former actual controller Huang Jiaxiao's performance commitment and compensation for Shanghai Yitong's 2016-2018 period remain unfulfilled and overdue[105](index=105&type=chunk) - Key individuals involved in the Shanghai Yitong case, such as Huan and Huang, have absconded, leading to uncertainty in the final outcome of rights protection; the company will continue to actively pursue legal avenues to safeguard its legitimate interests[105](index=105&type=chunk) [Fund Occupation and Guarantees](index=27&type=section&id=Fund%20Occupation%20and%20Guarantees) 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[106](index=106&type=chunk) - The company had no irregular external guarantees during the reporting period[107](index=107&type=chunk) [Audit and Bankruptcy Reorganization](index=27&type=section&id=Audit%20and%20Bankruptcy%20Reorganization) The company's semi-annual financial report is unaudited, and no bankruptcy reorganization matters occurred during the reporting period - The company's semi-annual report is unaudited[108](index=108&type=chunk) - No bankruptcy reorganization matters occurred for the company during the reporting period[110](index=110&type=chunk) [Litigation Matters](index=28&type=section&id=Litigation%20Matters) The company had no major litigation or arbitration during the period. Other resolved cases as plaintiff amounted to **RMB 12.8205 million** (settled/won) and as defendant **RMB 0.0999 million** (settled/lost). Pending cases as plaintiff totaled **RMB 55.1756 million**, and as defendant **RMB 53.6563 million** - The company had no major litigation or arbitration matters during the current reporting period[111](index=111&type=chunk) Other Litigation Matters | Role | Case Type | Outcome/Progress | Amount Involved (RMB 10,000) | | :--- | :--- | :--- | :--- | | Company or Subsidiary as Plaintiff | Closed | Settled or Won | 1,282.05 | | Company or Subsidiary as Defendant | Closed | Settled or Lost | 9.99 | | Company and Subsidiaries as Plaintiff | Pending | Under Review | 5,517.56 | | Company and Subsidiaries as Defendant | Pending | Under Review | 5,365.63 | [Penalties and Integrity Status](index=28&type=section&id=Penalties%20and%20Integrity%20Status) During the reporting period, the company had no penalties or rectification requirements, and its integrity status, along with that of its controlling shareholder and actual controller, remained good, with no inapplicable situations - The company had no penalties or rectification requirements during the reporting period[112](index=112&type=chunk) - During the reporting period, there were no inapplicable situations regarding the integrity status of the company, its controlling shareholder, or actual controller[113](index=113&type=chunk) [Significant Related Party Transactions](index=28&type=section&id=Significant%20Related%20Party%20Transactions) During the reporting period, the company had no significant related party transactions concerning daily operations, asset/equity acquisitions/disposals, joint external investments, or related party debt/credit. There were no financial dealings with affiliated finance companies - The company had no significant related party transactions related to daily operations during the reporting period[113](index=113&type=chunk) - The company had no significant related party transactions involving asset or equity acquisitions or disposals during the reporting period[114](index=114&type=chunk) - There were no related party debt or credit transactions during the reporting period[116](index=116&type=chunk) - There were no deposits, loans, credit lines, or other financial transactions between the company and affiliated finance companies[117](index=117&type=chunk) [Significant Contracts and Their Performance](index=29&type=section&id=Significant%20Contracts%20and%20Their%20Performance) During the reporting period, the company had no significant entrustment, contracting, leasing, or guarantee situations. Wealth management transactions totaled **RMB 631 million**, with **RMB 313 million** outstanding at period-end, and no overdue principal or impairment - The company had no significant entrustment, contracting, or leasing situations during the reporting period[120](index=120&type=chunk)[121](index=121&type=chunk)[123](index=123&type=chunk) - The company had no significant guarantee situations during the reporting period[124](index=124&type=chunk) Wealth Management Overview | Specific Type | Wealth Management Amount Incurred (RMB 10,000) | Outstanding Balance (RMB 10,000) | Overdue Unrecovered Amount (RMB 10,000) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | 46,100 | 14,300 | 0 | | Brokerage Wealth Management Products | 17,000 | 17,000 | 0 | | **Total** | **63,100** | **31,300** | **0** | - No wealth management products showed expected unrecoverable principal or other situations that could lead to impairment[126](index=126&type=chunk) [Other Significant Matters](index=30&type=section&id=Other%20Significant%20Matters) The company had no other significant matters requiring explanation during the reporting period, nor did its subsidiaries - The company had no other significant matters requiring explanation during the reporting period[127](index=127&type=chunk) - The company's subsidiaries had no significant matters during the reporting period[128](index=128&type=chunk) Part VI Share Changes and Shareholder Information [Share Changes](index=31&type=section&id=Share%20Changes) During the reporting period, total shares decreased by **2,838,910 to 862,206,871** due to restricted stock repurchase and cancellation from the 2022 incentive plan, while the 2024 restricted stock grant increased restricted shares and reduced unrestricted shares Share Changes Overview | Item | Quantity Before This Change (Shares) | Proportion Before This Change | Increase/Decrease in This Change (Shares) | Quantity After This Change (Shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 65,318,432 | 7.55% | 7,161,090 | 72,479,522 | 8.41% | | II. Unrestricted Shares | 799,727,349 | 92.45% | -10,000,000 | 789,727,349 | 91.59% | | **III. Total Shares** | **865,045,781** | **100.00%** | **-2,838,910** | **862,206,871** | **100.00%** | - The decrease in total shares was primarily due to the repurchase and cancellation of **2,838,910** restricted shares from the second and third tranches of the 2022 Restricted Stock Incentive Plan[132](index=132&type=chunk) - The registration of the 2024 Restricted Stock Grant led to a decrease in unrestricted shares, as the source of shares for this incentive plan was company repurchased shares[132](index=132&type=chunk) Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (Shares) | Shares Released from Restriction This Period (Shares) | Restricted Shares Increased This Period (Shares) | Restricted Shares at End of Period (Shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhao Fujun | 58,699,130 | 0 | 0 | 58,699,130 | Routine Restriction for Senior Management Shares | | Dang Yi | 0 | 0 | 1,000,000 | 1,000,000 | Share Incentive Restriction | | Zeng Chao | 198,412 | 0 | 1,000,000 | 1,198,412 | Routine Restriction for Senior Management Shares and Share Incentive Restriction | | Wang Haixia | 388,456 | 0 | 700,000 | 1,088,456 | Routine Restriction for Senior Management Shares and Share Incentive Restriction | | Zhu Xiaojun | 312,000 | 0 | 700,000 | 1,012,000 | Routine Restriction for Senior Management Shares and Share Incentive Restriction | | Liu Wensheng | 201,825 | 0 | 700,000 | 901,825 | Routine Restriction for Senior Management Shares and Share Incentive Restriction | | Ding Dan | 22,500 | 0 | 700,000 | 722,500 | Routine Restriction for Senior Management Shares and Share Incentive Restriction | | Shi Lei | 0 | 0 | 1,000,000 | 1,000,000 | Share Incentive Restriction | | Xiao Xingxi | 0 | 0 | 1,000,000 | 1,000,000 | Share Incentive Restriction | | 205 Incentive Recipients of 2022 Restricted Stock Incentive Grant | 2,838,910 | 2,838,910 | 0 | 0 | Share Incentive Restriction | | 5 Incentive Recipients of 2024 Restricted Stock Incentive Grant | 0 | 0 | 3,200,000 | 3,200,000 | Share Incentive Restriction | | **Total** | **65,318,432** | **2,838,910** | **10,000,000** | **72,479,522** | | [Shareholder Numbers and Shareholding](index=34&type=section&id=Shareholder%20Numbers%20and%20Shareholding) At period-end, total common shareholders were **101,538**. Beijing Jiuqi Technology Investment Co., Ltd. was the largest shareholder with **11.29%**, followed by Zhao Fujun with **9.08%**. Zhao Fujun and Dong Taixiang are married and, along with Ouyang Yao and Shi Ruifeng, are shareholders of Beijing Jiuqi Technology Investment Co., Ltd., indicating related party relationships - At the end of the reporting period, the total number of common shareholders was **101,538**[141](index=141&type=chunk) Shareholding of Shareholders with 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (Shares) | Number of Restricted Shares Held (Shares) | Number of Unrestricted Shares Held (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Jiuqi Technology Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 11.29% | 97,301,009 | 0 | 97,301,009 | | Zhao Fujun | Domestic Natural Person | 9.08% | 78,265,507 | 58,699,130 | 19,566,377 | | Dong Taixiang | Domestic Natural Person | 5.52% | 47,555,062 | 0 | 47,555,062 | | Ouyang Yao | Domestic Natural Person | 1.82% | 15,683,397 | 0 | 15,683,397 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 1.41% | 12,165,068 | 0 | 12,165,068 | | Shi Ruifeng | Domestic Natural Person | 0.41% | 3,542,932 | 2,657,199 | 885,733 | | Wang Xiaobo | Domestic Natural Person | 0.29% | 2,500,000 | 0 | 2,500,000 | | Zhang Baoxiang | Domestic Natural Person | 0.22% | 1,881,600 | 0 | 1,881,600 | | Jie Zhihua | Domestic Natural Person | 0.20% | 1,745,535 | 0 | 1,745,535 | | Beijing Qingquanhui Investment Management Co., Ltd. - Qingquanhui No. 1 Private Equity Fund | Domestic Non-State-Owned Legal Person | 0.20% | 1,729,100 | 0 | 1,729,100 | - Zhao Fujun and Dong Taixiang are married, and both, along with shareholders Ouyang Yao and Shi Ruifeng, are shareholders of Beijing Jiuqi Technology Investment Co., Ltd., holding direct equity stakes of **2.625%**, **5.25%**, **1.05%**, and **1.575%** respectively; additionally, Zhao Fujun and Dong Taixiang indirectly hold **89.5%** of Beijing Jiuqi Technology Investment Co., Ltd. through Tianjin Juntai Ronghui Investment Center (Limited Partnership)[141](index=141&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) During the reporting period, several directors and senior management received granted shares under the 2024 Restricted Stock Incentive Plan, leading to an increase in their period-end shareholdings and the number of restricted shares granted Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Shares Held at Beginning of Period (Shares) | Shares Increased This Period (Shares) | Shares Held at End of Period (Shares) | Number of Restricted Shares Granted This Period (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Dang Yi | Director, President | 0 | 1,000,000 | 1,000,000 | 1,000,000 | | Zeng Chao | Director, Senior Vice President | 264,550 | 1,000,000 | 1,264,550 | 1,000,000 | | Shi Lei | Executive President | 0 | 1,000,000 | 1,000,000 | 1,000,000 | | Xiao Xingxi | Executive President | 0 | 1,000,000 | 1,000,000 | 1,000,000 | | Liu Wensheng | Senior Vice President | 269,100 | 700,000 | 969,100 | 700,000 | | Zhu Xiaojun | Senior Vice President | 416,000 | 700,000 | 1,116,000 | 700,000 | | Wang Haixia | Senior Vice President, Board Secretary | 517,942 | 700,000 | 1,217,942 | 700,000 | | Ding Dan | Senior Vice President, CFO | 30,000 | 700,000 | 730,000 | 700,000 | | **Total** | | **1,497,592** | **6,800,000** | **8,297,592** | **6,800,000** | [Changes in Controlling Shareholder or Actual Controller](index=36&type=section&id=Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) 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[145](index=145&type=chunk) - The company's actual controller did not change during the reporting period[145](index=145&type=chunk) [Preferred Shares Information](index=36&type=section&id=Preferred%20Shares%20Information) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[146](index=146&type=chunk) Part VII Bond-Related Information [Bond-Related Information](index=37&type=section&id=Bond-Related%20Information) The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[148](index=148&type=chunk) Part VIII Financial Report [Audit Report](index=38&type=section&id=Audit%20Report) The company's semi-annual financial report is unaudited - The company's semi-annual financial report is unaudited[150](index=150&type=chunk) [Financial Statements Overview](index=38&type=section&id=Financial%20Statements%20Overview) This section presents the company's 2025 semi-annual consolidated and parent company financial statements, showing total assets of **RMB 2.146 billion**, total liabilities of **RMB 772 million**, and equity attributable to parent company owners of **RMB 1.347 billion**, with a consolidated net loss of **RMB 82.6353 million** and negative operating cash flow of **RMB 401 million** Key Data from Consolidated Balance Sheet | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 2,145,876,850.70 | 2,523,615,668.48 | | Total Liabilities | 772,398,704.02 | 1,082,256,806.89 | | Total Equity Attributable to Parent Company Owners | 1,346,513,035.67 | 1,407,167,296.80 | | Total Equity | 1,373,478,146.68 | 1,441,358,861.59 | Key Data from Consolidated Income Statement | Item | 2025 Semi-Annual (RMB) | 2024 Semi-Annual (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 855,750,811.42 | 1,754,277,088.75 | | Operating Profit | -85,363,359.06 | -162,492,003.80 | | Total Profit | -84,572,496.54 | -162,275,122.84 | | Net Profit | -82,635,322.41 | -162,046,460.23 | | Net Profit Attributable to Parent Company Shareholders | -75,393,481.86 | -149,805,301.52 | | Basic Earnings Per Share | -0.0872 | -0.1732 | | Diluted Earnings Per Share | -0.0872 | -0.1732 | Key Data from Consolidated Cash Flow Statement | Item | 2025 Semi-Annual (RMB) | 2024 Semi-Annual (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -400,975,229.29 | -452,677,661.90 | | Net Cash Flow from Investing Activities | 241,898,071.24 | 216,395,508.68 | | Net Cash Flow from Financing Activities | 22,799,560.30 | -121,822,222.30 | | Net Increase in Cash and Cash Equivalents | -137,542,230.70 | -357,871,269.76 | | Cash and Cash Equivalents at End of Period | 298,205,662.77 | 347,643,297.89 | [Company Overview](index=55&type=section&id=Company%20Overview) Beijing Jiuqi Software Co., Ltd., established on August 16, 1999, with a registered capital of **RMB 862,206,871.00**, is led by Zhao Fujun, focusing on software development, AI applications, and information system integration, with Beijing Jiuqi Technology Investment Co., Ltd. as its controlling shareholder and Dong Taixiang and Zhao Fujun as ultimate controllers, primarily offering R&D and consulting in e-government, group control, and digital communication - Beijing Jiuqi Software Co., Ltd. was established on August 16, 1999, with a registered capital of **RMB 862,206,871.00**[186](index=186&type=chunk)[199](index=199&type=chunk) - The company's business scope includes software development, AI application software development, information system integration services, data processing services, and technical services[199](index=199&type=chunk) - The company's controlling shareholder is Beijing Jiuqi Technology Investment Co., Ltd., with Dong Taixiang and Zhao Fujun as the ultimate controlling parties[199](index=199&type=chunk) - The company primarily engages in R&D and management consulting services in e-government, group control, and digital communication, leveraging big data technology and resources to create value for clients[200](index=200&type=chunk) [Basis of Financial Statement Preparation](index=57&type=section&id=Basis%20of%20Financial%20Statement%20Preparation) These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and the CSRC's disclosure rules, based on the accrual method and historical cost, with a going concern assumption - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises, their application guidelines, interpretations, and other relevant regulations issued by the Ministry of Finance[201](index=201&type=chunk) - The company's accounting is based on the accrual method, and all items, except for certain financial instruments, are measured at historical cost[202](index=202&type=chunk) - These financial statements are presented on a going concern basis[203](index=203&type=chunk) [Significant Accounting Policies and Estimates](index=58&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's significant accounting policies and estimates, including compliance with accounting standards, accounting period, business cycle, functional currency, materiality, business combinations, financial instruments, inventory, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, employee benefits, provisions, share-based payments, revenue, contract costs, government grants, deferred tax assets/liabilities, leases, right-of-use assets, and share repurchases, with specific policies for depreciation, amortization, R&D capitalization, and revenue recognition tailored to its operations - The company's accounting period follows the calendar year, from January 1 to December 31 annually, with a business cycle of **12 months**[206](index=206&type=chunk)[207](index=207&type=chunk) - Upon initial recognition, the company classifies financial assets into three categories based on the business model for managing them and their contractual cash flow characteristics: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[221](index=221&type=chunk) - The company applies impairment accounting and recognizes loss provisions for items such as notes receivable, accounts receivable, contract assets, other receivables, and long-term receivables, based on expected credit losses[227](index=227&type=chunk) - The company recognizes revenue when it satisfies a performance obligation in a contract, meaning when the customer obtains control of the related goods or services, and applies specific recognition methods based on business types (software and services, information services, accounts receivable factoring)[275](index=275&type=chunk)[277](index=277&type=chunk)[278](index=278&type=chunk) - The company distinguishes between research phase expenditures and development phase expenditures for internal research and development projects; research phase expenditures are recognized in current profit or loss, while development phase expenditures are capitalized when specific conditions are met[258](index=258&type=chunk) - The company recognizes right-of-use assets and lease liabilities for all leases, except for short-term leases and leases of low-value assets that are simplified[287](index=287&type=chunk) [Taxation](index=78&type=section&id=Taxation) The company's main taxes are VAT and corporate income tax. As high-tech enterprises, the company and several subsidiaries enjoy a **15%** corporate income tax rate, while some subsidiaries benefit from small-profit enterprise tax incentives and VAT refunds for self-developed software sales where the actual tax burden exceeds **3%** Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable Value Added | 13%, 9%, 6%, 5%, 3% | | Urban Maintenance and Construction Tax | Actual Turnover Tax Paid | 7%, 5% | | Corporate Income Tax | Taxable Income | 25%, 20%, 15% | - Beijing Jiuqi Software Co., Ltd. and its subsidiaries Xi'an Jiuqi, Guangdong Jiuqi, Jiuqi Government, Jiuqi Cloud Computing, Huaxia Diantong, and Jiuqi Jinjian are high-tech enterprises, applying a **15%** corporate income tax rate for 2025[298](index=298&type=chunk) - Subsidiaries Shanghai Jiuqi, Xinjiang Jiuqi, Chongqing Jiuqi, Chengdu Jiuqi, and Jiuqi Research Institute enjoy small-profit enterprise corporate income tax preferential policies for 2025[299](index=299&type=chunk) - Subsidiaries Guangdong Jiuqi, Huaxia Diantong, and Jiuqi Jinjian, for their sales of self-developed software products in 2025, enjoy a VAT refund policy for the portion where the actual tax burden exceeds **3%**[301](index=301&type=chunk) [Notes to Consolidated Financial Statement Items](index=79&type=section&id=Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section details consolidated financial statement items: monetary funds at **RMB 434 million** (with **RMB 17.4462 million** restricted), trading financial assets at **RMB 315 million** (decreased), accounts receivable at **RMB 600 million** (with **RMB 168 million** impairment), and construction in progress at **RMB 84.9372 million**. Liabilities include accounts payable at **RMB 273 million** (decreased) and contract liabilities at **RMB 338 million**. Equity saw a decrease in share capital due to restricted stock repurchase and an increase in capital reserves from share-based payment expenses. Income statement items show a significant drop in operating revenue and costs due to digital communication, but growth in e-government and group control. R&D expenses were **RMB 130 million**, with **RMB 7.5726 million** capitalized. Cash flows from operating activities were negative, while investing and financing activities were positive Monetary Funds | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Cash on Hand | 210,757.96 | 210,097.96 | | Bank Deposits | 406,835,051.83 | 436,676,516.98 | | Other Monetary Funds | 26,614,049.53 | 14,435,885.10 | | **Total** | **433,659,859.32** | **451,322,500.04** | | Of which: Total funds deposited overseas | 146,228,509.37 | 149,934,273.22 | | Total Restricted Monetary Funds | 17,446,223.94 | 15,574,606.57 | Financial Assets Held for Trading | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Financial assets measured at fair value through profit or loss | 314,805,441.67 | 575,024,867.01 | | Of which: Debt instrument investments | 171,099,019.68 | 173,075,219.13 | | Wealth management products | 143,706,421.99 | 401,949,647.88 | | **Total** | **314,805,441.67** | **575,024,867.01** | Accounts Receivable | Aging | Ending Book Balance (RMB) | Beginning Book Balance (RMB) | | :--- | :--- | :--- | | Within 1 year | 561,614,776.07 | 580,587,656.53 | | 1 to 2 years | 52,875,309.97 | 70,814,689.51 | | 2 to 3 years | 32,206,833.27 | 38,058,533.98 | | Over 3 years | 121,305,170.32 | 124,226,056.80 | | **Total** | **768,002,089.63** | **813,686,936.82** | | Ending Balance of Bad Debt Provision | 167,765,009.98 | 172,000,402.70 | | Book Value | 600,237,079.65 | 641,686,534.12 | Factoring Receivables | Aging | Ending Balance (RMB) | Amount at End of Prior Year (RMB) | | :--- | :--- | :--- | | Over 3 years | 97,247,443.27 | 97,247,443.27 | | 2 to 3 years | 3,000,000.00 | 0 | | **Subtotal** | **100,247,443.27** | **100,247,443.27** | | Less: Bad Debt Provision | 100,247,443.27 | 100,247,443.27 | | **Total** | **0** | **0** | - Factoring receivables have been fully provided for bad debts, primarily involving Beijing Zhongxinnengye Century Technology Co., Ltd., Beijing Huake Guanghui Technology Co., Ltd., and Beijing Libeia Architectural Decoration Engineering Co., Ltd., which are expected to be unrecoverable due to litigation or being listed as dishonest debtors[332](index=332&type=chunk)[335](index=335&type=chunk)[336](index=336&type=chunk) Construction in Progress | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Jiuqi Government R&D Center Construction Project | 84,937,168.23 | 124,357,662.97 | | **Total** | **84,937,168.23** | **124,357,662.97** | Accounts Payable | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Within 1 year | 240,256,776.56 | 490,900,149.06 | | 1 to 2 years | 7,163,050.40 | 11,710,871.07 | | 2 to 3 years | 13,589,551.18 | 17,125,120.33 | | Over 3 years | 12,021,761.68 | 5,905,304.50 | | **Total** | **273,031,139.82** | **525,641,444.96** | Share Capital | Item | Beginning Balance (RMB) | Increase/Decrease in This Change (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | | Total Shares | 864,647,201.00 | -2,440,330.00 | 862,206,871.00 | - In the first half of 2025, the company repurchased and cancelled a total of **2,440,330** restricted shares that had been granted but not yet unlocked, resulting in a decrease in share capital[457](index=457&type=chunk) Capital Reserves | Item | Beginning Balance (RMB) | Increase This Period (RMB) | Decrease This Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | | Capital Premium (Share Premium) | 973,127,335.71 | 0 | 3,660,495.00 | 969,466,840.71 | | Other Capital Reserves | 30,546,652.42 | 14,882,124.78 | 0 | 45,428,777.20 | | **Total** | **1,003,673,988.13** | **14,882,124.78** | **3,660,495.00** | **1,014,895,617.91** | - The increase in capital reserves was primarily due to the recognition of share-based payment expenses of **RMB 14,882,124.78** from the share incentive plan[459](index=459&type=chunk) Operating Revenue and Operating Costs | Item | Revenue for Current Period (RMB) | Costs for Current Period (RMB) | Revenue for Prior Period (RMB) | Costs for Prior Period (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 851,758,931.93 | 517,482,175.87 | 1,750,873,954.29 | 1,490,291,854.24 | | Other Businesses | 3,991,879.49 | 824,566.25 | 3,403,134.46 | 621,770.27 | | **Total** | **855,750,811.42** | **518,306,742.12** | **1,754,277,088.75** | **1,490,913,624.51** | R&D Expenses | Item | Amount Incurred This Period (RMB) | Amount Incurred Prior Period (RMB) | | :--- | :--- | :--- | | Employee Compensation | 113,183,557.31 | 139,963,306.08 | | Depreciation and Amortization | 7,594,892.36 | 7,325,842.20 | | **Total** | **122,873,326.40** | **150,069,410.85** | Supplementary Information to Cash Flow Statement | Supplementary Information | Amount for Current Period (RMB) | Amount for Prior Period (RMB) | | :--- | :--- | :--- | | Net Profit | -82,635,322.41 | -162,046,460.23 | | Net Cash Flow from Operating Activities | -400,975,229.29 | -452,677,661.90 | | Net Increase in Cash and Cash Equivalents | -137,542,230.70 | -357,871,269.76 | [R&D Expenditures](index=113&type=section&id=R%26D%20Expenditures) Total R&D expenditures for this period were **RMB 130 million**, a **18.03%** year-on-year decrease, with **RMB 123 million** expensed and **RMB 7.5726 million** capitalized. The Jiuqi Noah GPT project, in its development phase, is expected to be completed by June 30, 2025, with expenditures already capitalized R&D Expenditures Overview | Item | Amount Incurred This Period (RMB) | Amount Incurred Prior Period (RMB) | | :--