诚益通(300430) - 2024 Q2 - 季度财报

Section 1 Important Notes, Table of Contents, and Definitions This section provides important notes regarding the semi-annual report's accuracy, lists the report's overall structure, and defines key terms and abbreviations for clarity Important Notes The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false statements, misleading representations, or major omissions[1] - The company must comply with the special industry disclosure requirements for 'Medical Device Business' in the 'Self-Regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 4 - Information Disclosure for ChiNext Industries'[1] - The profit distribution plan approved by the board of directors is to distribute a cash dividend of 0.25 yuan (including tax) per 10 shares to all shareholders, based on 273,047,596 shares, with no bonus shares or capital reserve conversions[1] Table of Contents This section outlines the overall structure of the 2024 semi-annual report, comprising ten main chapters covering company operations, finance, governance, and significant matters Definitions This section provides definitions for common terms and abbreviations used in the report, covering regulatory bodies, company entities, industry-specific terminology, and key subsidiary names - 'Company' or 'Chengyitong' refers to Beijing Chengyitong Control Engineering Technology Co., Ltd[4] - 'GMP' refers to Good Manufacturing Practice, which are the basic requirements for pharmaceutical production management and quality control[4] - Key subsidiaries mentioned in the report include Guangzhou Longzhijie, Beijing Borihong, Zhejiang Jin'an Pharmaceutical Machinery, Guangzhou Shirui, and Beijing Naolian Technology Co., Ltd[4] Section 2 Company Profile and Key Financial Indicators This section presents the company's fundamental information, including stock details and contact methods, alongside a comprehensive overview of key accounting data and financial indicators, non-recurring gains and losses, and their impact Company Profile This section provides basic company information, including stock abbreviation 'Chengyitong', stock code '300430', the full company name 'Beijing Chengyitong Control Engineering Technology Co., Ltd.', and its legal representative Liang Kai - Stock Abbreviation: Chengyitong, Stock Code: 300430, Stock Exchange: Shenzhen Stock Exchange[6] - Company Chinese Name: Beijing Chengyitong Control Engineering Technology Co., Ltd., Legal Representative: Liang Kai[6] Contact Persons and Information This section lists the contact information for the company's Board Secretary Zhang Jinting and Securities Affairs Representative Zhang Na, including address, phone, fax, and email, to facilitate investor communication - Board Secretary: Zhang Jinting, Securities Affairs Representative: Zhang Na[7] - Contact Address: No. 27 Qingfeng West Road, Biomedical Industry Base, Daxing District, Beijing, Phone/Fax: 010-61258926, Email: sec@eastctn.com[7] Other Information During the reporting period, there were no changes in the company's registered address, office address, website, email, information disclosure and placement locations, or registration status - The company's registered address, office address, website, and email remained unchanged during the reporting period[8] - Information disclosure and placement locations remained unchanged during the reporting period[9] - The company's registration status remained unchanged during the reporting period[10] Key Accounting Data and Financial Indicators During this reporting period, the company's operating revenue slightly decreased by 0.74% year-on-year, but net profit attributable to shareholders increased by 12.52%, and basic earnings per share grew by 14.81% Key Accounting Data and Financial Indicators (Year-on-Year Change) | Indicator | Current Period (RMB) | Prior Period (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 643,993,411.39 | 648,800,511.90 | -0.74% | | Net Profit Attributable to Shareholders of Listed Company | 83,567,490.97 | 74,270,290.76 | 12.52% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 81,732,627.69 | 72,189,143.96 | 13.22% | | Net Cash Flow from Operating Activities | -61,211,947.35 | -71,335,220.71 | 14.19% | | Basic Earnings Per Share (RMB/share) | 0.31 | 0.27 | 14.81% | | Diluted Earnings Per Share (RMB/share) | 0.31 | 0.27 | 14.81% | | Weighted Average Return on Net Assets | 3.83% | 3.69% | 0.14% | | Total Assets | 3,607,888,269.03 | 3,403,174,100.02 | 6.02% | | Net Assets Attributable to Shareholders of Listed Company | 2,219,875,083.26 | 2,147,100,760.21 | 3.39% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under International Accounting Standards or overseas accounting standards and those disclosed under Chinese Accounting Standards - During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and those disclosed under Chinese Accounting Standards[12] - During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and those disclosed under Chinese Accounting Standards[13] Non-Recurring Gains and Losses and Amounts The total non-recurring gains and losses for this reporting period amounted to 1,834,863.28 RMB, primarily including government subsidies, gains/losses from disposal of non-current assets, and fair value changes of financial assets Non-Recurring Gains and Losses and Amounts | Item | Amount (RMB) | | :--- | :--- | | Gains/losses from disposal of non-current assets (including reversal of impairment provisions) | 24,271.84 | | Government subsidies recognized in current profit or loss (excluding those closely related to normal business operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on company profit or loss) | 2,541,186.71 | | Gains/losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains/losses from disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations | 233,192.50 | | Other non-operating income and expenses apart from the above | -724,006.81 | | Less: Income tax impact | 205,049.35 | | Impact on minority interests (after tax) | -34,731.61 | | Total | 1,834,863.28 | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring gains and losses[15] Section 3 Management Discussion and Analysis This section provides an in-depth analysis of the company's main businesses, core competencies, financial performance, investment activities, and significant risks, along with management's strategies and responses Main Businesses Engaged by the Company During the Reporting Period The company adheres to a 'one body, two wings, dual-wheel drive' development strategy, focusing on services in the big health sector, with main businesses covering intelligent manufacturing and rehabilitation medical equipment - The company has established a 'one body, two wings, dual-wheel drive' development strategy, aiming to become a service provider in the big health sector[16] - Currently, the company's business covers two major segments: intelligent manufacturing and rehabilitation medical equipment[16] Intelligent Manufacturing Business The company's intelligent manufacturing business primarily serves pharmaceutical and biomanufacturing enterprises, providing comprehensive intelligent manufacturing solutions including automation control systems, industrial software, and intelligent equipment - The company's intelligent manufacturing business primarily provides comprehensive intelligent manufacturing solutions for pharmaceutical and biomanufacturing enterprises, with products including automation control systems, industrial software, and intelligent equipment[17][22][23] - China's pharmaceutical enterprises still have a relatively weak foundation in automation and intelligence, with 70% in Industry 2.0, 20% in Industry 3.0, and 10% still in Industry 1.0[18] - After nearly 20 years of development, the company has established a leading position in the pharmaceutical and biological intelligent manufacturing sector, recognized as a national 'Little Giant' enterprise specializing in niche sectors and a 'Service-Oriented Manufacturing Demonstration Enterprise'[21] - Business development plans include horizontal expansion into chemical synthesis, traditional Chinese medicine and plant extraction, and biopharmaceutical fields, as well as vertical extension into formulation production and intelligent packaging, with continuous increased investment in R&D for information products[28][29][30][31] Rehabilitation Medical Equipment Business The company's rehabilitation medical equipment business, based on its wholly-owned subsidiary Longzhijie, provides rehabilitation assessment, training, physiotherapy equipment, and specialized solutions - The company's rehabilitation medical equipment business belongs to the rehabilitation medical device industry, primarily conducted through its wholly-owned subsidiary Longzhijie[32][40] - China's total rehabilitation demand reached 460 million people in 2019, with 217 million people aged 65 and above by the end of 2023, yet rehabilitation medical resources remain in short supply[35][36] - National policies continue to favor the rehabilitation sector, encouraging the application of brain-computer interfaces in medical rehabilitation and promoting large-scale medical equipment upgrades[37][39] - Longzhijie's product line covers three major areas: rehabilitation assessment, training, and physical therapy, offering 6 specialized solutions for pain, neurology, elderly care, and more[42][43] - Business development plans include optimizing the product line (IoT, AI-driven smart rehabilitation systems), expanding and maintaining sales channels (deepening presence in tertiary hospitals, extending to grassroots medical facilities), and academic promotion to build brand awareness[46][47][48][49][50] Operating Model The company's operating model differs across its intelligent manufacturing and rehabilitation medical equipment segments, with distinct approaches to procurement, production, and sales - The intelligent manufacturing business procurement model includes general procurement (standard components) and customized outsourcing procurement (non-standard components)[51] - The intelligent manufacturing business production model is primarily make-to-order, supplemented by planned production, with software products developed on a customized basis[53] - The rehabilitation medical equipment business procures raw materials based on sales and market forecasts, adopting an inventory production model[52][54] - The rehabilitation medical equipment business sales model is primarily distribution-led, supplemented by direct sales, with international markets mainly relying on distribution[57] Analysis of Operating Performance During the Reporting Period In the first half of 2024, the company achieved operating revenue of 644 million RMB, a year-on-year decrease of 0.74%; net profit attributable to shareholders was 83.5675 million RMB, a year-on-year increase of 12.52% Operating Results for H1 2024 | Indicator | Amount | | :--- | :--- | | Operating Revenue | 644 million RMB (Year-on-year decrease 0.74%) | | Net Profit Attributable to Shareholders of Listed Company | 83.5675 million RMB (Year-on-year increase 12.52%) | | Total Assets | 3.608 billion RMB (6.02% increase from period-start) | | Net Assets Attributable to Listed Company | 2.220 billion RMB (3.39% increase from period-start) | - The intelligent manufacturing segment achieved operating revenue of 500 million RMB (a year-on-year decrease of 2.30%) and net profit of 43.7594 million RMB (a year-on-year increase of 3.77%), benefiting from the 'pharmaceutical + non-pharmaceutical' dual business development strategy[58][59][60] - The rehabilitation medical equipment segment achieved operating revenue of 144 million RMB (a year-on-year increase of 5.07%) and net profit of 39.8081 million RMB (a year-on-year increase of 24.02%), with new products launched and the establishment of Beijing Naolian Technology Co., Ltd. in the brain science field[62][63] - As of the report disclosure date, the company cumulatively holds 100 domestic medical device registration certificates, filing certificates, and international certifications, with 6 new domestic registration/filing certificates added[66] Analysis of Core Competencies The company's core competencies lie in continuous technological innovation and product R&D, strong brand and quality advantages, a stable and high-caliber management team and talent pool, and a multi-dimensional strategic layout in the big health sector - The company continuously innovates technologically in pharmaceutical and biological intelligent manufacturing and rehabilitation medical devices, possessing a complete R&D and design system and a leading product line[80] - The 'Chengyitong' and 'Longzhijie' brands enjoy good reputations in their respective fields, with product quality widely recognized[81] - The company has a stable core management team and sound talent cultivation and incentive mechanisms, attracting high-caliber talent from both domestic and international sources[82] - The company has made multi-dimensional strategic layouts around the big health sector, leveraging platform technologies such as the internet, robotics, and artificial intelligence, having initially completed its industrial layout and striving for performance growth[83] Analysis of Main Business During this reporting period, the company's operating revenue slightly decreased by 0.74% year-on-year, but operating costs decreased by 4.26%, and both selling and administrative expenses also decreased Year-on-Year Changes in Key Financial Data | Indicator | Current Period (RMB) | Prior Period (RMB) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 643,993,411.39 | 648,800,511.90 | -0.74% | | | Operating Cost | 387,758,257.68 | 405,005,410.15 | -4.26% | | | Selling Expenses | 40,760,532.53 | 54,398,130.63 | -25.07% | | | Administrative Expenses | 39,082,848.87 | 43,470,094.59 | -10.09% | | | Financial Expenses | 11,581,576.53 | 7,722,613.79 | 49.97% | Due to increased bank loan interest | | Income Tax Expense | 7,634,997.01 | 5,790,309.83 | 31.86% | Primarily due to increased total profit for the year | | Net Cash Flow from Operating Activities | -61,211,947.35 | -71,335,220.71 | 14.19% | | | Net Cash Flow from Investing Activities | -33,883,053.18 | -52,877,752.08 | 35.92% | Primarily due to increased cash recovered from investments | | Net Cash Flow from Financing Activities | 55,187,033.02 | 127,778,467.84 | -56.81% | Primarily due to increased repayment of bank loans | | Net Increase in Cash and Cash Equivalents | -39,573,838.21 | 4,779,927.27 | -927.92% | Primarily due to increased repayment of bank loans | Products or Services Accounting for Over 10% of Revenue | By Product or Service | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Profit Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Control Systems | 413,738,273.62 | 285,660,927.87 | 30.96% | -2.35% | -6.54% | 3.10% | | Rehabilitation Medical Devices | 143,913,005.29 | 39,359,785.49 | 72.65% | 5.07% | 12.20% | -1.74% | | System Equipment and Others | 86,342,132.48 | 62,737,544.32 | 27.34% | -0.75% | -2.09% | 1.00% | Analysis of Non-Core Business During this reporting period, non-core businesses had a minor impact on total profit, primarily including investment income (bank acceptance discount fees), asset impairment (contract asset impairment losses), and non-operating income and expenses Analysis of Non-Core Business | Item | Amount (RMB) | Proportion of Total Profit | Explanation of Cause | Is it Sustainable | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -1,839,195.21 | -2.02% | Bank acceptance discount fees | No | | Fair Value Change Gains/Losses | 0.00 | 0.00% | | No | | Asset Impairment | -1,156,974.73 | -1.27% | Contract asset impairment losses | No | | Non-Operating Income | 15,853.57 | 0.02% | Logistics claims | No | | Non-Operating Expenses | 739,860.38 | 0.81% | Donation expenses, non-current asset damage and write-off losses | No | Analysis of Assets and Liabilities As of the end of the reporting period, the company's total assets increased by 6.02% to 3.608 billion RMB. Accounts receivable significantly increased by 4.37%, and short-term borrowings increased by 1.57% Significant Changes in Asset Composition | Item | Amount at End of Reporting Period (RMB) | Proportion of Total Assets | Amount at End of Previous Year (RMB) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 190,817,847.04 | 5.29% | 225,999,478.83 | 6.64% | -1.35% | | Accounts Receivable | 1,058,634,411.80 | 29.34% | 849,893,555.34 | 24.97% | 4.37% | | Inventories | 532,442,388.53 | 14.76% | 553,394,950.93 | 16.26% | -1.50% | | Fixed Assets | 398,974,225.76 | 11.06% | 365,030,341.94 | 10.73% | 0.33% | | Short-term Borrowings | 450,038,000.00 | 12.47% | 371,089,000.00 | 10.90% | 1.57% | - The fair value of accounts receivable financing at the end of the period was 42,888,404.14 RMB, an increase of 17,373,369.14 RMB from the beginning of the period, primarily due to an increase in bank acceptance bills[89] Asset Restrictions as of the End of the Reporting Period | Item | Book Balance (RMB) | Book Value (RMB) | Type of Restriction | Restriction Details | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 10,020,543.30 | 10,020,543.30 | Pledge | Margin | | Investment Properties | 224,525,241.88 | 200,058,946.86 | Mortgage | Mortgage for bank loans | | Fixed Assets | 190,112,614.20 | 171,048,738.08 | Mortgage | Mortgage for bank loans | | Intangible Assets | 4,778,277.80 | 4,204,884.20 | Mortgage | Mortgage for bank loans | | Total | 429,436,677.18 | 385,333,112.44 | | | Analysis of Investment Status During the reporting period, the company's investment amounted to 18 million RMB, a significant year-on-year increase of 100% - Investment during the reporting period was 18,000,000.00 RMB, compared to 0.00 RMB in the same period last year, a change of 100.00%[90] - Total raised funds amounted to 295.191 million RMB, with a cumulative investment of 293.8583 million RMB[91] Investment Progress of Committed Projects Using Raised Funds | Committed Investment Project | Net Raised Funds (10,000 RMB) | Cumulative Investment Amount as of Period End (10,000 RMB) | Investment Progress as of Period End | | :--- | :--- | :--- | :--- | | 100% Equity of Guangzhou Longzhijie | 11,934.72 | 11,934.72 | 100.00% | | 100% Equity of Beijing Borihong | 1,950 | 1,560 | 80.00% | | Construction of Marketing and Technical Support Service Center | 6,992 | 7,248.73 | 103.67% | | Supplement Working Capital | 8,642.38 | 8,642.38 | 100.00% | - The company temporarily used 3.9 million RMB of idle raised funds to supplement working capital, with a usage period not exceeding 12 months[94] - During the reporting period, the company's entrusted wealth management amounted to 20 million RMB, all of which has matured, with no derivative investments or entrusted loans[96][97] Significant Asset and Equity Sales During the reporting period, the company did not engage in any significant asset sales or equity sales - The company did not sell significant assets during the reporting period[97] - The company did not sell significant equity during the reporting period[97] Analysis of Major Holding and Participating Companies This section presents the financial information of the company's major holding and participating companies, including registered capital, total assets, net assets, operating revenue, operating profit, and net profit Financial Information of Major Holding and Participating Companies (H1 2024) | Company Name | Main Business | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Chengyitong Technology Co., Ltd. | Control Systems | 100,000,000 | 445,916,500.21 | 209,124,009.05 | 70,241,664.96 | 873,430.56 | 1,283,866.92 | | Yancheng Chengyitong Machinery Manufacturing Co., Ltd. | Machinery Products | 45,000,000 | 441,313,598.51 | 69,411,666.09 | 30,838,620.93 | 744,388.38 | 818,859.33 | | Guangzhou Longzhijie Technology Group Co., Ltd. | Rehabilitation Medical Devices | 104,117,647 | 922,343,397.24 | 630,007,886.28 | 143,913,005.29 | 42,118,011.63 | 40,231,134.74 | | Zhejiang Jin'an Pharmaceutical Machinery Co., Ltd. | Machinery Products | 15,000,000 | 65,580,068.98 | 18,997,872.30 | 17,371,804.92 | -930,867.21 | -1,264,169.58 | | Beijing Chengyitong Borihong Intelligent Equipment Technology Co., Ltd. | Automated Packaging Equipment | 15,000,000 | 188,444,807.11 | 116,867,410.15 | 23,503,011.06 | 3,334,981.79 | 2,508,347.32 | Information on Structured Entities Controlled by the Company During the reporting period, the company did not control any structured entities - During the reporting period, the company did not control any structured entities[99] Risks Faced by the Company and Countermeasures The company faces risks such as intensified market competition, technological R&D and new product development challenges, and talent shortages - The company faces intensified market competition risks and will respond by leveraging brand effects and financing advantages, integrating and optimizing corporate strengths, improving industrial chain layout, and continuously strengthening independent R&D[100] - Technological R&D and new product development involve risks such as long cycles, high difficulty, and significant investment; the company has established an R&D risk control system to conduct feasibility studies and regular tracking of projects[101] - The company faces talent shortage risks and will actively recruit talent, focus on talent development, and attract and retain high-caliber talent through various incentive measures such as employee stock ownership plans[102] Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period During the reporting period, the company hosted two investor activities, including one on-site research visit and one online platform exchange, primarily to introduce the company's business and address investor concerns - On March 19, 2024, the company hosted institutional investors for an on-site research visit, introducing business operations and answering questions[103] - On May 8, 2024, the company conducted an online exchange via a network platform, introducing its operating performance for 2023[103] Implementation of "Dual Improvement in Quality and Returns" Action Plan The company did not disclose an announcement regarding the 'Dual Improvement in Quality and Returns' action plan during the reporting period - The company did not disclose an announcement regarding the 'Dual Improvement in Quality and Returns' action plan[104] Section 4 Corporate Governance This section details the company's corporate governance practices, including shareholder meetings, changes in key personnel, profit distribution plans, and the implementation of equity incentive schemes Information on Annual General Meetings and Extraordinary General Meetings Held During the Reporting Period During the reporting period, the company held its 2023 Annual General Meeting on May 14, 2024, with an investor participation rate of 33.84% - The 2023 Annual General Meeting was held on May 14, 2024, with an investor participation rate of 33.84%[105] - During this reporting period, there were no requests from preferred shareholders with restored voting rights to convene an extraordinary general meeting[106] Changes in Directors, Supervisors, and Senior Management During the reporting period, Mr. Lu Zhenhua was appointed as the company's Deputy General Manager due to work requirements, also serving as a Director and Chief Financial Officer - Mr. Lu Zhenhua was appointed as the company's Deputy General Manager due to work requirements, also serving as a Director and Chief Financial Officer[106] Profit Distribution and Capital Reserve Conversion to Share Capital During This Reporting Period The company's 2024 semi-annual profit distribution plan is to distribute a cash dividend of 0.25 RMB (including tax) per 10 shares to all shareholders, based on a total share capital of 273,047,596 shares, totaling 6,826,189.90 RMB in cash dividends 2024 Semi-Annual Profit Distribution Plan | Indicator | Amount | | :--- | :--- | | Dividend per 10 shares (RMB) (including tax) | 0.25 | | Share capital base for distribution plan (shares) | 273,047,596.00 | | Cash dividend amount (RMB) (including tax) | 6,826,189.90 | | Proportion of total cash dividends (including other methods) to total profit distribution | 100.00% | - No bonus shares will be issued, nor will capital reserves be converted to share capital this year[107] Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The conditions for the second vesting period of the initial grant and the first vesting period of the reserved grant under the company's 2021 Restricted Stock Incentive Plan have been met, with a total of 966,800 restricted shares released from restrictions - The conditions for the second vesting period of the initial grant and the first vesting period of the reserved grant under the company's 2021 Restricted Stock Incentive Plan have been met[108][109] - Approval was granted to release 819,300 restricted shares for 72 initial grant incentive recipients who met the vesting conditions; and 147,500 restricted shares for 22 reserved grant incentive recipients who met the vesting conditions[109] - Due to 4 initial grant incentive recipients not meeting the vesting conditions, a total of 136,500 restricted shares held by them were repurchased and cancelled[109] Section 5 Environmental and Social Responsibility This section outlines the company's commitment to environmental protection, including its non-polluting status and green initiatives, and its broader social responsibilities towards stakeholders and public welfare Significant Environmental Issues Neither the company nor its subsidiaries are classified as key polluting units by environmental protection authorities, and no administrative penalties for environmental issues were received during the reporting period - Neither the company nor its subsidiaries are classified as key polluting units by environmental protection authorities, and no administrative penalties for environmental issues were received during the reporting period[111] - The company helps clients reduce energy consumption and achieve energy saving and emission reduction by providing comprehensive intelligent manufacturing solutions[112] - Internally, the company actively practices 'green office, low-carbon living,' including using energy-saving lighting, promoting paperless office, waste sorting, and raising awareness of low-carbon energy saving[112] Social Responsibility The company has long actively fulfilled its corporate social responsibility, establishing sound internal management and control systems, standardizing shareholder meeting operations, and ensuring fair and just information disclosure - The company has established sound internal management and control systems, standardized shareholder meeting operations, and ensured shareholders' rights to information, participation, and voting[113] - The company diligently fulfills its information disclosure obligations, treating all investors with fairness, impartiality, and transparency[113] - The company complies with regulations and policies on environmental protection, resource conservation, production safety, and employee rights protection, safeguarding the interests of employees, customers, and suppliers, and actively maintaining public relations and social welfare initiatives[113] Section 6 Significant Matters This section covers significant corporate events, including commitments, related party transactions, guarantees, and litigation, ensuring transparency on matters impacting the company's operations and financial health Commitments Fulfilled and Overdue Unfulfilled by Actual Controllers, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period During the reporting period, there were no commitments fulfilled or overdue unfulfilled by the company's actual controllers, shareholders, related parties, acquirers, or the company itself - During the reporting period, there were no commitments fulfilled or overdue unfulfilled by the company's actual controllers, shareholders, related parties, acquirers, or the company itself[114] Non-Operating Occupation of Funds by Controlling Shareholders and Other Related Parties During the reporting period, there was no non-operating occupation of listed company funds by controlling shareholders or other related parties - During the reporting period, there was no non-operating occupation of listed company funds by controlling shareholders or other related parties[114] Illegal External Guarantees During the reporting period, the company had no illegal external guarantees - During the reporting period, the company had no illegal external guarantees[114] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[114] Explanation by the Board of Directors and Supervisory Board on the "Non-Standard Audit Report" for This Reporting Period As the company's semi-annual financial report was not audited, this section is not applicable Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year This section is not applicable Bankruptcy and Reorganization Matters During the reporting period, the company did not experience any bankruptcy or reorganization matters - The company did not experience any bankruptcy or reorganization matters during the reporting period[115] Litigation Matters During the reporting period, the company had no significant litigation or arbitration matters. Regarding other lawsuits, the company was a defendant/respondent in 6 cases, with 1 case concluded and 115,000 RMB paid - During this reporting period, the company had no significant litigation or arbitration matters[115] Summary of Other Litigation Matters | Basic Information on Litigation (Arbitration) | Amount Involved (10,000 RMB) | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | | :--- | :--- | :--- | :--- | | Summary of other lawsuits not meeting the disclosure threshold for significant litigation (company and subsidiaries as defendants/respondents) | 233.25 | Total of 6 cases: 1 case concluded, 5 cases still under trial | No significant impact on the company's production and operations | | Summary of other lawsuits not meeting the disclosure threshold for significant litigation (company and subsidiaries as plaintiffs/applicants) | 3,597.59 | Total of 22 cases, 4 cases concluded, 18 cases pending | No significant impact on the company's production and operations | - In 1 concluded case as a defendant, the company was ordered to pay supplier losses totaling 115,000 RMB, which has been fulfilled[115] - In 4 concluded cases as a plaintiff, all were supported by the court and are currently being enforced according to repayment agreements, mediation documents, or judgments[115] Penalties and Rectification During the reporting period, the company had no penalties or rectification situations - During the reporting period, the company had no penalties or rectification situations[115] Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers During the reporting period, there were no issues regarding the integrity status of the company, its controlling shareholders, or actual controllers - During the reporting period, there were no issues regarding the integrity status of the company, its controlling shareholders, or actual controllers[115] Significant Related Party Transactions During the reporting period, the company did not engage in significant related party transactions related to daily operations, asset/equity acquisitions or disposals, joint external investments, or related party creditor-debtor relationships - During the reporting period, the company did not engage in related party transactions related to daily operations[116] - During the reporting period, the company did not engage in related party transactions involving asset or equity acquisitions or disposals[117] - During the reporting period, there were no related party creditor-debtor relationships[119] - On April 19, 2024, the company's board of directors approved the 'Proposal on the 2024 Annual Ordinary Related Party Transaction Limit,' agreeing to ordinary related party transactions with Vikrui (Beijing) Environmental Technology Co., Ltd., with a total transaction amount not exceeding 30 million RMB[122] Significant Contracts and Their Performance During the reporting period, the company had no trusteeship, contracting, leasing matters, or significant ordinary business contracts - During the reporting period, the company had no trusteeship, contracting, or leasing matters[123] Company Guarantees to Subsidiaries (H1 2024) | Name of Guaranteed Party | Guarantee Limit (10,000 RMB) | Actual Guarantee Amount (10,000 RMB) | Type of Guarantee | Guarantee Period | Is it Fulfilled | Is it a Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Chengyitong Control Engineering Technology Co., Ltd. | 75,000 | 40,535.77 | Joint and several liability guarantee | 1 Year | No | Yes | | Guangzhou Longzhijie Technology Group Co., Ltd. | 12,000 | 9,500 | Joint and several liability guarantee | 1 Year | No | Yes | | Guangzhou Longzhijie Technology Group Co., Ltd. | 12,000 | 11,220.68 | Joint and several liability guarantee | 15 Years | No | Yes | | Total Actual Guarantee Balance at End of Reporting Period | | 88,424.82 | | | | | | Proportion of Total Actual Guarantee Amount to Company's Net Assets | | 39.83% | | | | | - The company provided debt guarantees totaling 20 million RMB to guaranteed parties with a debt-to-asset ratio exceeding 70%[125] - During the reporting period, the company had no significant ordinary business contracts or other significant contracts[126][127] Explanation of Other Significant Matters During the reporting period, there were no other significant matters requiring explanation - During the reporting period, there were no other significant matters requiring explanation[128] Significant Matters of Company Subsidiaries On March 28, 2024, the company's wholly-owned subsidiary, Guangzhou Longzhijie Technology Group Co., Ltd., invested in and established Beijing Naolian Technology Co., Ltd., with a registered capital of 30 million RMB, and Longzhijie holding 60% of the shares - On March 28, 2024, the company's wholly-owned subsidiary, Guangzhou Longzhijie Technology Group Co., Ltd., invested in and established Beijing Naolian Technology Co., Ltd[129] - Beijing Naolian Technology Co., Ltd. has a registered capital of 30 million RMB, with Longzhijie holding 60% of the shares[129] Section 7 Share Changes and Shareholder Information This section details changes in the company's share capital, shareholder structure, and the shareholdings of directors, supervisors, and senior management, along with information on major shareholders Share Change Information During the reporting period, the company's total shares decreased by 136,500 shares due to the cancellation of shares held by equity incentive recipients, changing from 273,184,096 shares to 273,047,596 shares Share Change Information | 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 | 14,510,237.00 | 5.31% | -136,500.00 | 14,373,737.00 | 5.26% | | II. Unrestricted Shares | 258,673,859.00 | 94.69% | 0 | 258,673,859.00 | 94.74% | | III. Total Shares | 273,184,096.00 | 100.00% | -136,500.00 | 273,047,596.00 | 100.00% | - The main reason for the share change was the cancellation of shares held by equity incentive recipients[130] - This share change had no significant impact on financial indicators such as basic and diluted earnings per share or net assets per share attributable to ordinary shareholders for the most recent period[132] Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Released This Period (shares) | Restricted Shares Increased This Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Liang Kai | 7,603,200 | | | 7,603,200 | Senior management lock-up shares | | Luo Yuanlong | 5,490,012 | | | 5,490,012 | Senior management lock-up shares | | Lu Zhenhua | 37,500 | | | 37,500 | Senior management lock-up shares + equity incentive restricted shares | | Zhu Wenyong | 37,500 | | | 37,500 | Senior management lock-up shares + equity incentive restricted shares | | Others | 1,128,025 | -136,500 | | 991,525 | Equity incentive restricted shares | | Total | 14,510,237 | -136,500 | 0 | 14,373,737 | | Securities Issuance and Listing During the reporting period, the company had no securities issuance or listing activities - During the reporting period, the company had no securities issuance or listing activities[134] Number of Shareholders and Shareholding Information As of the end of the reporting period, the company had a total of 17,220 ordinary shareholders. Beijing Liweite Investment Co., Ltd. was the largest shareholder, holding 18.75% of the shares - Total ordinary shareholders at the end of the reporting period: 17,220[135] Shareholding of Ordinary Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Liweite Investment Co., Ltd. | Domestic non-state-owned legal person | 18.75% | 51,209,771 | 0 | 51,209,771 | Pledged | 28,483,900 | | Liang Xuexian | Domestic natural person | 6.76% | 18,455,040 | 0 | 18,455,040 | Pledged | 466,400 | | Liang Kai | Domestic natural person | 3.71% | 10,137,600 | 7,603,200 | 2,534,400 | | | | Changsha Xinting Zhizhen Medical Investment Partnership (Limited Partnership) | Domestic non-state-owned legal person | 3.37% | 9,208,221 | 0 | 9,208,221 | | | | Luo Yuanlong | Domestic natural person | 2.68% | 7,320,016 | 5,490,012 | 1,830,004 | | | | Wu Zhiding | Domestic natural person | 1.41% | 3,846,700 | 0 | 3,846,700 | | | | Luo Xiaobing | Domestic natural person | 1.34% | 3,660,010 | 0 | 3,660,010 | | | | Shen Wanbin | Domestic natural person | 1.17% | 3,198,900 | 0 | 3,198,900 | | | | Bank of China Co., Ltd. - Guotai Jiangyuan Advantage Selection Flexible Allocation Mixed Securities Investment Fund | Other | 1.15% | 3,145,160 | 0 | 3,145,160 | | | | Agricultural Bank of China - Fullgoal Tianrui Strong Region Selection Mixed Open-ended Securities Investment Fund | Other | 1.14% | 3,120,500 | 0 | 3,120,500 | | | - Liang Xuexian and Liang Kai are the actual controllers and shareholders of Beijing Liweite Investment Co., Ltd., and are father and son. Luo Yuanlong and Luo Xiaobing are parties acting in concert[135][136][137] Cumulative Pledged Shares of Controlling Shareholder or Largest Shareholder and Parties Acting in Concert Reaching 80% of Their Total Shares Held During the reporting period, there was no situation where the cumulative pledged shares of the controlling shareholder or largest shareholder and parties acting in concert reached 80% of their total shares held - During the reporting period, there was no situation where the cumulative pledged shares of the controlling shareholder or largest shareholder and parties acting in concert reached 80% of their total shares held[139] Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, three supervisors (Liu Zejun, Chu Mengmeng, Li Xujun) no longer met the equity incentive conditions due to the supervisory board's re-election, and a total of 122,500 restricted shares held by them were repurchased and cancelled Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Shares Held at Beginning of Period (shares) | Number of Shares Reduced This Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Liu Zejun | Supervisor | 50,000 | -35,000 | 15,000 | | Chu Mengmeng | Supervisor | 17,500 | -17,500 | 0 | | Li Xujun | Supervisor | 70,000 | -70,000 | 0 | | Total | | 137,500 | -122,500 | 15,000 | - The aforementioned 3 incentive recipients became company supervisors due to the supervisory board's re-election in June 2023, no longer meeting the incentive recipient status, leading to the repurchase and cancellation of a total of 122,500 restricted shares granted but not yet vested[138] Changes in Controlling Shareholder or Actual Controller 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[139] - The company's actual controller did not change during the reporting period[139] Section 8 Information on Preferred Shares This section confirms that the company had no preferred shares during the reporting period Information on Preferred Shares During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[140] Section 9 Information on Bonds This section confirms that the company had no bonds during the reporting period Information on Bonds During the reporting period, the company had no bonds - The company had no bonds during the reporting period[141] Section 10 Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owner's equity, along with detailed notes on accounting policies, taxation, and financial risks Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[142] Financial Statements This section provides the company's consolidated and parent company financial statements for the first half of 2024, including the balance sheet, income statement, cash flow statement, and statement of changes in owner's equity Consolidated Balance Sheet As of June 30, 2024, the company's consolidated total assets amounted to 3.608 billion RMB, total liabilities to 1.371 billion RMB, and total owner's equity to 2.237 billion RMB - As of June 30, 2024, the company's total assets were 3,607,888,269.03 RMB, total liabilities were 1,370,522,917.35 RMB, and total owner's equity was 2,237,365,351.68 RMB[146] - Among current assets, accounts receivable reached 1,058,634,411.80 RMB, accounting for 53.42% of total current assets[143] - Among non-current assets, goodwill was 519,772,825.05 RMB, and fixed assets were 398,974,225.76 RMB[144] Parent Company Balance Sheet As of June 30, 2024, the parent company's total assets amounted to 2.56 billion RMB, total liabilities to 882 million RMB, and total owner's equity to 1.678 billion RMB - As of June 30, 2024, the parent company's total assets were 2,560,073,938.13 RMB, total liabilities were 882,141,851.26 RMB, and total owner's equity was 1,677,932,086.87 RMB[150] - The parent company's long-term equity investments reached 1,015,607,829.04 RMB, accounting for 94.49% of total non-current assets[148] Consolidated Income Statement In the first half of 2024, the company achieved total operating revenue of 644 million RMB and net profit of 83.4917 million RMB, with net profit attributable to parent company shareholders being 83.5675 million RMB - In the first half of 2024, the company's total operating revenue was 643,993,411.39 RMB, and net profit was 83,491,652.33 RMB[151][152] - Net profit attributable to parent company shareholders was 83,567,490.97 RMB, with basic and diluted earnings per share both at 0.31 RMB[154] - Financial expenses increased by 49.97% year-on-year to 11,581,576.53 RMB, and income tax expenses increased by 31.86% year-on-year to 7,634,997.01 RMB[152] Parent Company Income Statement In the first half of 2024, the parent company achieved operating revenue of 381 million RMB and net profit of 41.9924 million RMB - In the first half of 2024, the parent company's operating revenue was 381,140,082.14 RMB, and net profit was 41,992,396.20 RMB[155] - Financial expenses increased by 37.57% year-on-year to 5,200,320.07 RMB[155] - Credit impairment losses were -21,955,902.61 RMB, and asset impairment losses were -1,335,771.13 RMB[155] Consolidated Cash Flow Statement In the first half of 2024, the company's net cash flow from operating activities was -61.2119 million RMB, net cash flow from investing activities was -33.8831 million RMB, and net cash flow from financing activities was 55.1870 million RMB - Net cash flow from operating activities was -61,211,947.35 RMB, a year-on-year improvement of 14.19%[158] - Net cash flow from investing activities was -33,883,053.18 RMB, primarily due to increased cash recovered from investments[159] - Net cash flow from financing activities was 55,187,033.02 RMB, a year-on-year decrease of 56.81%, primarily due to increased repayment of bank loans[159] - Net increase in cash and cash equivalents was -39,573,838.21 RMB[159] Parent Company Cash Flow Statement In the first half of 2024, the parent company's net cash flow from operating activities was -81.9333 million RMB, net cash flow from investing activities was 37.4744 million RMB, and net cash flow from financing activities was 11.9442 million RMB - Net cash flow from operating activities was -81,933,279.41 RMB[161] - Net cash flow from investing activities was 37,474,365.27 RMB, primarily due to increased cash received from investment recovery[161] - Net cash flow from financing activities was 11,944,198.48 RMB[161] - Net increase in cash and cash equivalents was -32,514,715.66 RMB[161] Consolidated Statement of Changes in Owner's Equity In the first half of 2024, the company's total owner's equity attributable to the parent company increased by 72.7743 million RMB, primarily due to an increase in total comprehensive income and the amount of share-based payments recognized in owner's equity - Total owner's equity attributable to the parent company at the end of the period was 2,219,875,083.26 RMB, an increase of 72,774,323.05 RMB from the beginning of the period[164] - Total comprehensive income for the current period was 86,858,960.65 RMB, and the amount of share-based payments recognized in owner's equity was 1,054,979.68 RMB[162][163] - Profit distribution resulted in ordinary share dividends payable of 15,025,125.28 RMB[163] Parent Company Statement of Changes in Owner's Equity In the first half of 2024, the parent company's total owner's equity increased by 31.3022 million RMB, primarily influenced by total comprehensive income and share-based payments - Total owner's equity of the parent company at the end of the period was 1,677,932,086.87 RMB, an increase of 31,302,176.18 RMB from the beginning of the period[178] - Total comprehensive income for the current period was 45,386,813.78 RMB, and the amount of share-based payments recognized in owner's equity was 1,054,979.68 RMB[177][178] - Profit distribution resulted in ordinary share dividends payable of 15,025,125.28 RMB[178] Company Basic Information This section introduces the background of Beijing Chengyitong Control Engineering Technology Co., Ltd.'s establishment, registration information, legal representative, and main business activities, clarifying the company's business scope in the big health sector - Full Company Name: Beijing Chengyitong Control Engineering Technology Co., Ltd., Unified Social Credit Code: 91110000752630339B[172] - Registered Capital: 273.047596 million RMB, Legal Representative: Liang Kai[172] - The company's main business activities include automation control systems, industrial software, intelligent equipment, rehabilitation medical devices, and specialized rehabilitation solutions[172] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, in accordance with the Enterprise Accounting Standards issued by the Ministry of Finance and significant accounting policies and estimates - The company's financial statements are prepared on a going concern basis, in accordance with actual transactions and events, and the 'Enterprise Accounting Standards' issued by the Ministry of Finance[173] - The company possesses the ability to continue as a going concern for at least 12 months from the end of this reporting period, with no significant matters affecting its going concern ability[174] Significant Accounting Policies and Estimates This section elaborates on the company's statement of compliance with Enterprise Accounting Standards, accounting period, operating cycle, functional currency, and various significant accounting policies and estimates - The financial statements prepared by the company comply with the requirements of the 'Enterprise Accounting Standards,' truthfully and completely reflecting the financial position, operating results, and cash flows[175] - The company classifies financial assets into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in current profit or loss[193] - The company recognizes revenue when it satisfies a performance obligation in a contract, i.e., when the customer obtains control of the related goods or services, at the transaction price allocated to that performance obligation[229] - Long-term assets such as long-term equity investments, fixed assets, construction in progress, and intangible assets are tested for impairment if there are indications of impairment at the balance sheet date; goodwill is tested for impairment at least annually[219] Taxation The company's main taxes include Value-Added Tax, Urban Maintenance and Construction Tax, Enterprise Income Tax, and Education Surcharge Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Income | 13%, 9%, 6%, 5%, 3% | | Urban Maintenance and Construction Tax | Amount of Turnover Tax Payable | 5%, 7% | | Enterprise Income Tax | Taxable Income | 15%, 21%, 20%, 25% | | Education Surcharge | Amount of Turnover Tax Payable | 3% | - The company and several subsidiaries are recognized as high-tech enterprises, enjoying a preferential Enterprise Income Tax rate of 15%[248] - For self-developed and produced software products, the company implements a 'collect and refund' policy for the portion of VAT actual tax burden exceeding 3%[247] - From January 1, 2023, to December 31, 2027, advanced manufacturing enterprises can deduct 5% of the current period's deductible input VAT from their payable VAT[247] - Small and micro enterprises and individual businesses enjoy preferential income tax policies, where the portion of annual taxable income not exceeding 1 million RMB is reduced by 25% into taxable income and taxed at a 20% rate[248] Notes to Consolidated Financial Statement Items This section provides detailed disclosures for each item in the consolidated financial statements, including cash and cash equivalents, accounts receivable, inventories, fixed assets, construction in progress, goodwill, short-term borrowings, notes payable, accounts payable, owner's equity, operating revenue and costs, financial expenses, other income, credit impairment losses, asset impairment losses, income tax expenses, and cash flows - Cash and cash equivalents at period-end totaled 191 million RMB, of which 10.0205 million RMB were restricted funds such as deposits[250][329] - Accounts receivable book value at period-end was 1.059 billion RMB, with bad debt provisions of 213 million RMB; the top