鼎通科技(688668) - 2025 Q2 - 季度财报

Section 1 Definitions Definitions of Common Terms This chapter provides definitions of common terms used in the report, covering the company itself, subsidiaries, controlling shareholders, major customers, and industry-specific terminology, ensuring a clear understanding of the report content - Company abbreviation "Dingtong Technology" refers to Dongguan Dingtong Precision Technology Co., Ltd[10] - Major subsidiaries include Henan Dingrun, Dongguan Junwei, Dingtong Malaysia, Dingtong Technology (Changsha), etc[10] - Major customers include AVIC Optoelectronics, Amphenol, Molex, TE Connectivity, BYD, and other well-known industry enterprises[10] - Professional terms such as "connector", "DFM", "stamping", "injection molding", "BMS" are explained in detail[10][11] Section 2 Company Profile and Key Financial Indicators I. Company Basic Information This section outlines the company's basic registration information, including company name, registered address, legal representative, and contact details - The company's Chinese name is Dongguan Dingtong Precision Technology Co., Ltd., abbreviated as Dingtong Technology[13] - The legal representative is Wang Chenghai, and the registered and office addresses are both located at No. 7 Yinzhulu, Zhouwu Community, Dongcheng Street, Dongguan City[13] II. Contact Person and Contact Information This section provides contact information for personnel related to the company's information disclosure, facilitating investor communication - The Board Secretary (domestic representative for information disclosure) is Wang Xiaolan, and the Securities Affairs Representative is Yan Mengting[14] - Contact number is 0769-85377166-609, email is dt-stocks@dingtong.net.cn[14] III. Information Disclosure and Changes in Document Availability Location This section describes the company's disclosure channels and availability location for its semi-annual report - The company's designated information disclosure newspaper is "Shanghai Securities News", and the website is **www.sse.com.cn**[15](index=15&type=chunk) - The semi-annual report is available at the company's Board Secretary's office[15] IV. Company Stock/Depositary Receipt Overview This section introduces the company's stock listing information - The company's stock is A-shares, listed on the STAR Market of the Shanghai Stock Exchange, with stock abbreviation "Dingtong Technology" and stock code "688668"[16] VI. Company Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue and net profit achieved substantial growth, primarily driven by strong demand for communication products fueled by AI development, especially the rapid growth of 112G/224G connector business 2025 Semi-Annual Key Accounting Data | Indicator | Current Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 784,574,347.90 RMB | 452,167,810.16 RMB | 73.51 | | Total Profit | 123,335,204.50 RMB | 50,531,449.61 RMB | 144.08 | | Net Profit Attributable to Shareholders of Listed Company | 115,396,991.62 RMB | 49,302,809.18 RMB | 134.06 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | 107,418,589.97 RMB | 45,258,929.26 RMB | 137.34 | | Net Cash Flow from Operating Activities | 18,145,124.65 RMB | 2,388,922.10 RMB | 659.55 | 2025 Semi-Annual Key Financial Indicators | Indicator | Current Period (Jan-Jun) | Prior Year Period | Period-on-Period Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.83 | 0.36 | 130.56% | | Diluted Earnings Per Share (RMB/share) | 0.83 | 0.36 | 130.56% | | Basic Earnings Per Share (Excluding Non-Recurring Items) (RMB/share) | 0.77 | 0.33 | 133.33% | | Weighted Average Return on Equity (%) | 6.24 | 2.84 | Increased by 3.40 percentage points | | Weighted Average Return on Equity (Excluding Non-Recurring Items) (%) | 5.80 | 2.61 | Increased by 3.19 percentage points | | R&D Expenditure as % of Operating Revenue (%) | 6.95 | 8.84 | Decreased by 1.89 percentage points | - Operating revenue increased by 73.51% year-on-year, and net profit attributable to the parent company increased by 134.06% year-on-year, primarily due to the rapid development of AI, increased infrastructure investment at home and abroad, strong demand for communication products, especially the growing demand for I/O connectors such as QSFP-DD/OSFP 112G series, and small-batch production of 224G products[19][18] VIII. Non-Recurring Gains and Losses Items and Amounts This section lists the non-recurring items affecting the company's profit and loss during the reporting period and their amounts, totaling 7,978,401.65 RMB 2025 Semi-Annual Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Non-current asset disposal gains/losses | -45,098.11 | | Government grants included in current profit/loss | 9,388,681.08 | | Fair value changes and disposal gains/losses from financial assets/liabilities held by non-financial enterprises | 574,795.39 | | Other non-operating income and expenses | -532,546.26 | | Less: Income tax impact | -1,407,430.45 | | Total | 7,978,401.65 | IX. Companies with Equity Incentive or Employee Stock Ownership Plans May Choose to Disclose Net Profit After Deducting Share-Based Payment Impact This section discloses the net profit after deducting the impact of share-based payments, showing a year-on-year increase of 128.35% Net Profit After Deducting Share-Based Payment Impact | Indicator | Current Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Net profit after deducting share-based payment impact | 120,818,461.00 RMB | 52,909,616.93 RMB | 128.35 | Section 3 Management Discussion and Analysis I. Description of the Company's Industry and Main Business During the Reporting Period The company belongs to the computer, communication, and other electronic equipment manufacturing industry, specializing in high-speed communication connectors and automotive connectors. The communication connector market is experiencing rapid growth driven by 5G and data centers, while the automotive connector market is undergoing structural growth driven by the electrification and intelligence transformation of new energy vehicles - The company's industry classification is "C39 Computer, Communication and Other Electronic Equipment Manufacturing" major category, specifically "C3989 Other Electronic Component Manufacturing" minor category[24] - The global communication connector market is expected to reach $21.489 billion by 2025, and the Chinese connector market reached 218.3 billion RMB in 2024, with communication and automotive sectors accounting for 47.7% combined[25][26] - New energy passenger vehicles require connectors valued at 3,000-5,000 RMB/vehicle, significantly higher than traditional fuel vehicles; commercial vehicles exceed 8,000-10,000 RMB/vehicle[27] - The company's main business is high-speed communication connectors and their components, and automotive connectors and their components, collaborating with well-known companies such as Amphenol, Molex, TE Connectivity, AVIC Optoelectronics, and BYD[28] (1) Industry Sector According to the National Bureau of Statistics classification, the company belongs to other electronic component manufacturing within the computer, communication, and other electronic equipment manufacturing industry - The company's industry classification is "C39 Computer, Communication and Other Electronic Equipment Manufacturing" major category, "C398 Electronic Components and Electronic Special Materials Manufacturing" middle category, "C3989 Other Electronic Component Manufacturing" minor category[24] (2) Industry Development The communication connector market is driven by 5G and data center construction, with strong demand evolving towards high speed and high density; the automotive connector market is experiencing structural growth driven by the electrification and intelligence transformation of new energy vehicles - 5G commercialization and "new infrastructure" such as data centers are driving a high-growth cycle in the communication industry, with the global communication connector market expected to reach $21.489 billion by 2025[25] - In 2024, China's connector market reached 218.3 billion RMB, with communication and automotive being the two largest application areas, accounting for 47.7% combined[26] - New energy vehicles have significantly higher connector demand than traditional fuel vehicles, with new energy passenger vehicle connector value reaching 3,000-5,000 RMB/vehicle, and commercial vehicles exceeding 8,000-10,000 RMB/vehicle[27] (3) Main Business, Products, or Services The company focuses on the R&D, production, and sales of high-speed communication connectors and their components, and automotive connectors and their components; communication business demand is strong, with liquid cooling heat sinks in small-batch shipments; automotive business remains stable, and the BMS Gen6 battery project has successfully trial-produced - The company is a high-tech enterprise, primarily engaged in high-speed communication connectors and their components, and automotive connectors and their components, collaborating with renowned companies such as Amphenol, Molex, TE Connectivity, AVIC Optoelectronics, and BYD[28] - High-speed communication connector products include high-speed backplane connector assemblies, I/O connector assemblies, high-speed copper cable connectors, liquid cooling heat sinks, etc.; 112G series orders are increasing month-on-month, 224G products are in small-batch production, and liquid cooling heat sinks began small-batch shipments in Q2 2025[29] - Automotive connector products include control system connectors, high-voltage interlock connectors, etc.; the BMS Gen6 battery project, in collaboration with Molex, has successfully trial-produced and passed customer certification[30] II. Discussion and Analysis of Operations In the first half of 2025, the company achieved significant growth in revenue and net profit driven by AI, with strong performance in communication business, stable automotive business, continuous increase in R&D investment, and profitability for the Malaysian subsidiary - In the first half of 2025, the company's operating revenue was 784.5743 million RMB, a year-on-year increase of 73.51%; net profit attributable to the parent company was 115.3970 million RMB, a year-on-year increase of 134.06%[30] - Communication business benefited from 5G and AI development, with 112G products continuously scaling up, 224G products upgraded, and liquid cooling heat sinks certified by customers and delivered in small batches[31] - Automotive business maintained stable development, with the BMS Gen6 battery project successfully trial-produced and certified by customers, and automated lines being deployed[32] - R&D investment increased by 36.47% year-on-year, accounting for 6.95% of operating revenue, primarily focusing on the development of liquid cooling products and EMI products for heat dissipation and shielding performance[33] - The Malaysian subsidiary has achieved stable mass production for some projects, turning profitable from Q2, with monthly output value of 8-10 million RMB[34] (1) Significant Growth in Communication Business, 112G Products Continuously Scaling Up The company's high-speed communication connector products benefited from 5G and AI development, with demand for 112G products gradually increasing, 224G products achieving small-batch production, and liquid cooling heat sinks certified by customers and delivered in small batches, making a significant contribution to performance growth - The company's I/O connector products' transmission speed has upgraded from 56G to 112G-224G, covering product series such as QSFP, QSFP-DD, and OSFP[31] - 112G products began scaling up from Q2 last year, maintaining month-on-month growth during the reporting period[31] - Liquid cooling heat sink products have been certified by customers and achieved small-batch delivery, becoming a mainstream solution for high-power equipment heat dissipation[31] (2) Stable Development of Automotive Business, New Products Delivered Despite fierce competition in the domestic new energy vehicle market, the company's automotive business maintained stable development; the BMS Gen6 battery project successfully trial-produced and obtained customer certification, and the company continues to expand into the electronic control and high-voltage connector markets - The company has successfully covered multiple leading new energy vehicle enterprises such as BYD, FAW Group, and Changan Automobile[32] - The BMS Gen6 battery project has successfully trial-produced, passed customer certification, and automated lines are being deployed, which will become a new growth point for the automotive business[32] (3) Continuous R&D Investment The company continues to increase R&D investment, with R&D expenses increasing by 36.47% year-on-year in this period, primarily for the development of liquid cooling products with heat dissipation and shielding performance, and EMI products, to enhance product competitiveness R&D Investment | Indicator | Current Period Amount | Prior Year Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | R&D expenses | 54,554,813.52 RMB | 39,975,878.19 RMB | 36.47 | | R&D investment as % of operating revenue | 6.95% | 8.84% | Decreased by 1.89 percentage points | - The increase in R&D investment is mainly due to an increase in R&D personnel, salary growth, and increased depreciation and amortization resulting from higher difficulty in R&D projects[45] - The company has closely collaborated with customers to develop various series of liquid cooling products and EMI products for shielding[33] (4) Production Status of Malaysian Subsidiary The Malaysian subsidiary has achieved stable mass production for some projects and began turning profitable in Q2, with a monthly output value of 8-10 million RMB, and gradually increasing capacity utilization - The Malaysian subsidiary has achieved stable mass production for some projects, gradually turning profitable from Q2[34] - During the reporting period, the monthly output value was 8-10 million RMB, and capacity utilization gradually increased[34] III. Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness lies in its excellent R&D and design capabilities, precision manufacturing technology, continuous technological innovation, long-term cooperation with high-quality customers, and strict quality management system. During the reporting period, the company made significant progress in both R&D achievements and investment - The company has a professional R&D team with core competitiveness in precision mold design and development, and has established an automation development department to optimize processes and improve efficiency[35][37] - The company has established a complete precision manufacturing technology system, covering the entire process of product design, core processes, precision mold development and manufacturing, product precision processing, and technical testing, enabling quick response to customer new product DFM development needs[38] - The company has established long-term stable cooperative relationships with well-known connector manufacturers such as Amphenol, Molex, TE Connectivity, and AVIC Optoelectronics[39] - During the reporting period, 5 new invention patent applications and 18 new utility model patent applications were filed; as of the end of the reporting period, the company had obtained a total of 46 invention patents, 81 utility model patents, and 3 design patents[42] R&D Investment | Indicator | Current Period Amount | Prior Year Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D investment | 54,554,813.52 RMB | 39,975,878.19 RMB | 36.47 | | Total R&D investment as % of operating revenue | 6.95% | 8.84% | Decreased by 1.89 percentage points | (I) Core Competitiveness Analysis The company's core competitiveness is primarily reflected in its R&D and design advantages, precision manufacturing capabilities, continuous technological innovation, high-quality customer relationships, and strict quality management system - The company possesses a professional R&D team with core competitiveness in precision mold design and development, and has established an automation development department to optimize processes and improve efficiency[35][36] - A comprehensive precision manufacturing technology system has been established, encompassing precision mold design and development, precision stamping and injection molding, automated processing, and testing, ensuring product precision and quality stability[37] - Through a collaborative development mechanism with leading downstream customers, the company quickly responds to new product DFM development needs, enhancing service capabilities and customer stickiness[38] - Long-term stable cooperative relationships have been established with renowned connector manufacturers such as Amphenol, Molex, TE Connectivity, and AVIC Optoelectronics, securing high-quality orders[39] - "Quality First" is integrated into the company's values, and a scientific and effective quality management method and system have been established, continuously earning customer praise[40] (III) Core Technologies and R&D Progress During the reporting period, there were no changes in the company's core technologies, but R&D achievements were significant, with multiple new patent applications filed, R&D investment increasing by 36.47% year-on-year, and continuous progress on multiple ongoing R&D projects covering battery management, charging piles, high-speed communication connectors, and other fields - There were no changes in the company's core technologies during the reporting period[41] - 5 new invention patent applications and 18 new utility model patent applications were filed; as of the end of the reporting period, the company had obtained a total of 46 invention patents, 81 utility model patents, and 3 design patents[42] R&D Investment | Indicator | Current Period Amount | Prior Year Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D investment | 54,554,813.52 RMB | 39,975,878.19 RMB | 36.47 | | Total R&D investment as % of operating revenue | 6.95% | 8.84% | Decreased by 1.89 percentage points | - Ongoing R&D projects include water-cooled plates for battery management modules, integrated AC/DC charging pile assemblies, small high-density high-speed signal transmission connectors, QSFP-DD heat sinks, communication network data transmission connector assemblies, etc., with several projects gradually entering mass production[47][48][49][50][51][52] R&D Personnel | Indicator | Current Period Number | Prior Year Period Number | | :--- | :--- | :--- | | Number of R&D personnel (persons) | 500 | 320 | | R&D personnel as % of total employees (%) | 12.40 | 10.44 | | Total R&D personnel compensation (10,000 RMB) | 3,321.53 | 2,198.59 | | Average R&D personnel compensation (10,000 RMB) | 7.36 | 7.28 | IV. Risk Factors The company faces risks from macroeconomic and industry fluctuations, intensified market competition, technological iteration, loss of core technical personnel, high customer concentration, product quality, accounts receivable bad debts, rising costs, and new capacity digestion - Macroeconomic and industry fluctuation risks: A decline in demand in the communication and data center markets could adversely affect business[55] - Intensified market competition risk: The connector industry is highly competitive, and the company needs to continuously maintain product quality and technological advancement[56] - Technological iteration risk: Technological innovation in downstream sectors could lead to the company's technology becoming outdated, affecting profitability[57][58] - Loss of core technical personnel risk: Intense talent competition in the industry could affect the company's technological innovation capabilities[59] - High customer concentration risk: While major customers have high credit, if cooperative relationships cannot be deepened or new customer acquisition is hindered, it could adversely affect performance[60] - Product quality risk: Quality issues with connector components could lead to serious consequences, affecting cooperative relationships[61] - Accounts receivable bad debt risk: As of the end of the reporting period, the top five accounts receivable balances accounted for 91.18% of the total, and changes in major customers' operating conditions could lead to unrecoverable amounts[62] - Rising cost risk: Increases in raw material prices could lead to a decline in profitability[63] - New capacity digestion risk: If the "Connector Production Base Construction Project" new capacity faces slower-than-expected downstream market growth or difficulties in market expansion, it could lead to idle capacity[64] V. Main Operating Conditions During the Reporting Period During the reporting period, the company's operating revenue and net profit both achieved substantial growth, primarily driven by strong demand for communication products fueled by AI development, especially the rapid growth of 112G/224G connector business 2025 Semi-Annual Key Operating Data | Indicator | Amount/Ratio | Year-on-Year Growth | | :--- | :--- | :--- | | Operating revenue | 78,457.43 (10,000 RMB) | 73.51% | | Net profit attributable to shareholders of listed company | 11,539.70 (10,000 RMB) | 134.06% | | Basic earnings per share | 0.83 RMB/share | 130.56% | | Weighted average return on equity | 6.24% | Increased by 3.40 percentage points | - Performance growth is mainly based on the rapid development of AI, increased infrastructure investment at home and abroad, strong demand for communication products, continuous growth in demand for I/O connectors such as QSFP-DD/OSFP 112G series, and small-batch production of 224G products[65][66] (I) Analysis of Main Business During the reporting period, the company's main business revenue and costs both increased significantly, sales, administrative, and R&D expenses also increased accordingly, and net cash flow from operating activities improved significantly 2025 Semi-Annual Financial Statement Related Account Changes | Account | Current Period Amount (RMB) | Prior Year Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 784,574,347.90 | 452,167,810.16 | 73.51 | | Operating Cost | 562,831,760.46 | 327,561,111.64 | 71.82 | | Selling Expenses | 6,726,050.17 | 6,068,947.08 | 10.83 | | Administrative Expenses | 42,757,306.59 | 32,569,482.79 | 31.28 | | Financial Expenses | -1,373,997.62 | -1,810,412.62 | 24.11 | | R&D Expenses | 54,554,813.52 | 39,975,878.19 | 36.47 | | Net Cash Flow from Operating Activities | 18,145,124.65 | 2,388,922.10 | 659.55 | | Net Cash Flow from Investing Activities | -48,675,046.97 | -49,118,068.35 | 0.90 | | Net Cash Flow from Financing Activities | 25,164,932.22 | -49,540,628.08 | 150.80 | - Operating revenue growth is mainly based on the rapid development of AI and strong demand for communication products; operating costs increased with revenue[68] - Selling and administrative expenses increased mainly due to business growth and personnel expansion; R&D expenses increased due to an increase in R&D personnel and project difficulty[68] - Net cash flow from operating activities grew rapidly, mainly due to increased revenue from communication business[68] (III) Analysis of Assets and Liabilities As of the end of the reporting period, the company's total assets and net assets attributable to the parent company both increased. Accounts receivable, financing receivables, right-of-use assets, prepayments, other non-current assets, short-term borrowings, non-current liabilities due within one year, lease liabilities, provisions, and other comprehensive income all showed significant changes 2025 Semi-Annual Asset and Liability Status Changes | Item Name | Current Period End Amount (RMB) | Current Period End % of Total Assets | Prior Year End Amount (RMB) | Current Period End Change vs. Prior Year End (%) | | :--- | :--- | :--- | :--- | :--- | | Notes Receivable | 212,015.89 | 0.01 | 408,875.52 | -48.15 | | Accounts Receivable | 534,463,352.77 | 22.56 | 399,175,459.63 | 33.89 | | Financing Receivables | 28,660,103.48 | 1.21 | 13,369,206.56 | 114.37 | | Prepayments | 3,843,621.69 | 0.16 | 2,070,063.91 | 85.68 | | Right-of-Use Assets | 21,568,547.13 | 0.91 | 10,803,553.25 | 99.64 | | Other Non-Current Assets | 33,192,233.13 | 1.40 | 19,335,669.56 | 71.66 | | Short-Term Borrowings | 70,000,000.00 | 2.96 | 0 | - | | Contract Liabilities | 2,127,565.61 | 0.09 | 1,578,458.77 | 34.79 | | Non-Current Liabilities Due Within One Year | 7,326,424.25 | 0.31 | 4,417,788.97 | 65.84 | | Other Current Liabilities | 7,047,835.39 | 0.30 | 4,801,804.14 | 46.77 | | Long-Term Borrowings | 24,000,000.00 | 1.01 | 0 | - | | Lease Liabilities | 15,171,001.40 | 0.64 | 7,134,708.80 | 112.64 | | Provisions | 855,865.60 | 0.04 | 356,396.60 | 140.14 | | Other Comprehensive Income | 2,921,713.96 | 0.12 | 975,934.94 | 199.38 | - Overseas assets amounted to 83,716,569.84 RMB, accounting for 3.53% of total assets[72] 1. Asset and Liability Status The company's asset and liability structure underwent multiple changes, with significant increases in accounts receivable, financing receivables, right-of-use assets, prepayments, other non-current assets, short-term borrowings, non-current liabilities due within one year, lease liabilities, provisions, and other comprehensive income - Accounts receivable at period-end were 534,463,352.77 RMB, a year-on-year increase of 33.89%, mainly due to the expansion of the company's receivables scale[71] - Financing receivables at period-end were 28,660,103.48 RMB, a year-on-year increase of 114.37%, mainly due to changes in funds and bill discounting[71] - Short-term borrowings at period-end were 70,000,000.00 RMB, newly added during the reporting period[71] - Lease liabilities at period-end were 15,171,001.40 RMB, a year-on-year increase of 112.64%, mainly due to new leases as the company expanded its operations[71] - Provisions at period-end were 855,865.60 RMB, a year-on-year increase of 140.14%, mainly due to an increased accrual ratio based on business volume[71] 2. Overseas Asset Situation The company's overseas assets amounted to 83,716,569.84 RMB, accounting for 3.53% of total assets - Total overseas assets were 83,716,569.84 RMB, accounting for 3.53% of total assets[72] (IV) Analysis of Investment Status The company's financial assets measured at fair value at the end of the period amounted to 40,126,287.67 RMB, primarily wealth management products, with 182 million RMB purchased and 198 million RMB sold/redeemed during the period Changes in Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (RMB) | Fair Value Change Gains/Losses (RMB) | Current Period Purchases (RMB) | Current Period Sales/Redemptions (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Other (wealth management) | 56,040,197.26 | 348,282.19 | 182,000,000.00 | 198,262,191.78 | 40,126,287.67 | | Total | 56,040,197.26 | 348,282.19 | 182,000,000.00 | 198,262,191.78 | 40,126,287.67 | (VI) Analysis of Major Holding and Associate Companies The company's major holding subsidiaries, Henan Dingrun, DINGTONG MALAYSIA, and Dingtong Technology (Changsha), operated well during the reporting period, with Henan Dingrun contributing significant net profit. During the reporting period, the company deregistered its wholly-owned subsidiary Dingtong Technology R&D Center (Changsha) Co., Ltd Financial Data of Major Holding and Associate Companies (Unit: 10,000 RMB) | Company Name | Shareholding Ratio | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Henan Dingrun | 100% | Production and sales of communication connector components, automotive connector components | 16,000.00 | 106,943.53 | 46,276.11 | 26,650.93 | 3,682.87 | | DINGTONG MALAYSIA | 100% | Production and sales of communication connector components, automotive connector components | 3,843.86 | 8,371.66 | 3,916.99 | 5,158.36 | -75.53 | | Dingtong Technology (Changsha) | 100% | Production and sales of communication connector components, automotive connector components | 5,000.00 | 16,839.63 | 4,919.96 | 0.00 | -22.93 | - The company completed the deregistration of its wholly-owned subsidiary Dingtong Technology R&D Center (Changsha) Co., Ltd. on June 26, 2025, which had no significant adverse impact on the company's production, operations, and performance[80] Section 4 Corporate Governance, Environment, and Society II. Profit Distribution or Capital Reserve Conversion Plan The company's board of directors approved the 2025 semi-annual profit distribution plan, proposing to distribute a cash dividend of 2.00 RMB (tax inclusive) per 10 shares to all shareholders, totaling 27,840,345.20 RMB 2025 Semi-Annual Profit Distribution Plan | Indicator | Value | | :--- | :--- | | Is distribution or conversion | Yes | | Number of bonus shares per 10 shares (shares) | 0 | | Cash dividend per 10 shares (RMB) (tax inclusive) | 2.00 | | Number of shares converted from capital reserve per 10 shares (shares) | 0 | - Based on the total share capital of 139,201,726 shares as of June 30, 2025, a cash dividend of 27,840,345.20 RMB (tax inclusive) is proposed[83] III. Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company adjusted the grant price of the 2024 restricted stock incentive plan, completed the vesting of the first tranche of the initial grant, and canceled restricted shares for some incentive recipients - The grant price of the 2024 restricted stock incentive plan was adjusted from 16.79 RMB/share to 16.29 RMB/share[84] - For the first vesting period of the initial grant of the 2024 restricted stock incentive plan, a total of 48 incentive recipients vested 472,080 shares, which were listed for trading on June 26, 2025[84] - Due to the departure of 4 incentive recipients, a total of 126,000 restricted shares that had been granted but not yet vested were canceled[84] V. Specifics of Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work The company's subsidiary Henan Dingrun actively fulfilled its social responsibilities by making donations to Longjing Primary School, Dongchong Village, Wanhe Village, and Tongshan Bridge Project in Shangcheng County, Xinyang City, and to Dongguan Sangyuan Public Welfare Service Center during the reporting period - In January 2025, Henan Dingrun purchased desks for Longjing Primary School in Shangcheng County, Xinyang City, for 10,000 RMB[85] - Donated 5,000 RMB for the maintenance of Xiaoheba in Dongchong Village, Pingqiao District, Xinyang City, and 15,000 RMB for peace-building assistance in Chashan Township[85] - Donated 50,000 RMB to the water conservancy project in Wanhe Village, Shangcheng County, Xinyang City, and 250,000 RMB to the Tongshan Bridge construction project[85] - Donated 30,000 RMB to Dongguan Sangyuan Public Welfare Service Center in February 2025[85] Section 5 Significant Matters I. Fulfillment of Commitments The company, its controlling shareholder, actual controllers, and directors, supervisors, and senior management strictly fulfilled all commitments during the reporting period, including share lock-up, repurchase of fraudulently issued shares, immediate return compensation, avoidance of horizontal competition, standardization of related-party transactions, and supplementary social insurance and housing provident fund payments - Chairman, General Manager, and core technical personnel Wang Chenghai committed that during his tenure, he would not transfer more than 25% of his total shares annually, and would not transfer shares within six months after leaving office; as a core technical personnel, he would not transfer more than 25% of his pre-IPO shares annually within four years after the lock-up period expires[87][90][91] - The company, its controlling shareholder, and actual controllers committed that there were no fraudulent issuance circumstances, and if such circumstances occurred, share repurchase procedures would be initiated[89][90][92][93][94][95] - The controlling shareholder and actual controllers committed to avoid horizontal competition and take effective measures to ensure they do not engage in businesses that compete with the company[96] - The controlling shareholder, actual controllers, and directors, supervisors, and senior management committed to standardize related-party transactions, avoid fund occupation, and conduct transactions at market-recognized reasonable prices[97] - The controlling shareholder and actual controllers committed to fully bear losses caused by supplementary social insurance and housing provident fund payments or penalties[97] IX. Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controllers During the Reporting Period During the reporting period, the company, its controlling shareholder, and actual controllers maintained good integrity, with no unfulfilled legal obligations or large debts due and unpaid - During the reporting period, the company, its controlling shareholder, and actual controllers had no unfulfilled obligations determined by legally effective documents[99] - There were no situations where a large amount of debt was due and unpaid[99] XII. Explanation of Progress in Use of Raised Funds The company's use of raised funds progressed smoothly overall, primarily invested in high-speed communication connector component production projects and new energy vehicle connector production projects. Some idle raised funds were used for cash management, and adjustments were made to the implementation entities, locations, and timelines of some fundraising projects Overall Use of Raised Funds | Source of Raised Funds | Net Amount of Raised Funds (RMB) | Total Committed Investment in Prospectus or Offering Document (RMB) | Cumulative Investment as of End of Reporting Period (RMB) | Investment Progress as of End of Reporting Period (%) | | :--- | :--- | :--- | :--- | :--- | | 2022 Private Placement of Shares | 799,999,551.04 | 800,000,000.00 | 430,845,820.74 | 54.87 | - Fundraising projects include high-speed communication connector component production projects and new energy vehicle connector production projects, both progressing as planned[106] - The company approved the temporary use of idle raised funds not exceeding 60 million RMB to supplement working capital, which had not been actually used as of June 30, 2025[108] - The company conducted cash management with idle raised funds, with an ending balance of 330 million RMB, not exceeding the authorized limit[110] - The completion time for the "High-Speed Communication Connector Component Production Project" was extended to December 2026, and Dingtong Technology was added as an implementation entity and location[113] (I) Overall Use of Raised Funds The company's net proceeds from the 2022 private placement of shares amounted to 799,999,551.04 RMB. As of the end of the reporting period, a cumulative total of 430,845,820.74 RMB had been invested, with an investment progress of 54.87% Overall Use of Raised Funds | Source of Raised Funds | Net Amount of Raised Funds (RMB) | Total Committed Investment in Prospectus or Offering Document (RMB) | Cumulative Investment as of End of Reporting Period (RMB) | Investment Progress as of End of Reporting Period (%) | | :--- | :--- | :--- | :--- | :--- | | 2022 Private Placement of Shares | 799,999,551.04 | 800,000,000.00 | 430,845,820.74 | 54.87 | (II) Details of Fundraising Projects The company's fundraising projects primarily include the high-speed communication connector component production project and the new energy vehicle connector production project, both progressing as planned, with some projects having reached their intended usable state - The high-speed communication connector component production project plans an investment of 388,000,000.00 RMB, with 67,921,751.44 RMB invested in this period, and a cumulative investment of 208,268,526.23 RMB, reaching 53.68% of the planned investment[106] - The new energy vehicle connector production project plans an investment of 252,000,000.00 RMB, with 29,545,045.41 RMB invested in this period, and a cumulative investment of 62,577,294.51 RMB, reaching 24.83% of the planned investment[106] - The working capital replenishment project plans an investment of 160,000,000.00 RMB, with a cumulative investment of 160,000,000.00 RMB, reaching 100% of the planned investment[107] (IV) Other Circumstances Regarding the Use of Raised Funds During the Reporting Period The company approved the temporary use of some idle raised funds to supplement working capital and managed idle raised funds through cash management. Concurrently, adjustments were made to the implementation entities, locations, and timelines of some fundraising projects due to actual circumstances - The company approved the temporary use of idle raised funds not exceeding 60 million RMB to supplement working capital for a period of 12 months; as of the end of the reporting period, it had not been actually used[108] - The company conducted cash management with idle raised funds, with an ending balance of 330 million RMB, not exceeding the authorized limit[110] - The completion time for the "High-Speed Communication Connector Component Production Project" was extended to December 2026, and Dingtong Technology was added as an implementation entity and location[113] Section 6 Share Changes and Shareholder Information I. Share Capital Changes During the reporting period, the company's share capital increased by 472,080 shares due to the vesting of the first tranche of the initial grant of the 2024 restricted stock incentive plan, bringing the total share capital to 139,201,726 shares Share Change Table | Category | Quantity Before This Change | % Before This Change | Increase/Decrease in This Change (+,-) Subtotal | Quantity After This Change | % After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Unrestricted Shares | 138,729,646 | 100 | 472,080 | 139,201,726 | 100 | | Total Shares | 138,729,646 | 100 | 472,080 | 139,201,726 | 100 | - The share capital change was mainly due to the first vesting period of the second-class restricted shares under the 2024 restricted stock incentive plan meeting the vesting conditions, with a total of 48 incentive recipients vesting 472,080 shares, which were listed for trading on June 26, 2025[118] II. Shareholder Information As of the end of the reporting period, the total number of common shareholders was 9,690. The top ten shareholders had a relatively high concentration of holdings, with the controlling shareholder Dinghong Junsheng holding 39.35%, and the actual controllers Wang Chenghai and Luo Hongxia and their controlled enterprises holding a high combined stake - As of the end of the reporting period, the total number of common shareholders was 9,690[119] Top Ten Shareholders' Holdings as of the End of the Reporting Period | Shareholder Name | Ending Holding Quantity (shares) | % | Shareholder Nature | | :--- | :--- | :--- | :--- | | Dongguan Dinghong Junsheng Investment Co., Ltd. | 54,771,683 | 39.35 | Domestic Non-State-Owned Legal Person | | Luo Hongxia | 8,114,400 | 5.83 | Domestic Natural Person | | Wang Chenghai | 5,175,206 | 3.72 | Domestic Natural Person | | Hong Kong Securities Clearing Company Limited | 4,946,630 | 3.55 | Overseas Non-State-Owned Legal Person | | Agricultural Bank of China Co., Ltd. - Xinhua Preferred Dividend Mixed Securities Investment Fund | 1,388,840 | 1.00 | Domestic Non-State-Owned Legal Person | - Mr. Wang Chenghai and Ms. Luo Hongxia are a married couple, and the shareholders of Dinghong Junsheng are Mr. Wang Chenghai and Ms. Luo Hongxia, constituting an associated relationship or concerted action[123] Section 7 Bond-Related Information I. Corporate Bonds (Including Enterprise Bonds) and 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 that were issued and not yet due or due and not fully repaid - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[130] II. Convertible Corporate Bonds During the reporting period, the company had no convertible corporate bonds - The company has no convertible corporate bonds[130] Section 8 Financial Report II. Financial Statements This section provides the company's consolidated and parent company financial statements for the first half of 2025, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, comprehensively reflecting the financial position and operating results at the end of the reporting period Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 2,368,555,763.00 RMB, with total current assets of 1,331,552,870.65 RMB and total non-current assets of 1,037,002,892.35 RMB. Total liabilities were 502,622,963.45 RMB, and total owners' equity was 1,865,932,799.55 RMB - Total assets at period-end were 2,368,555,763.00 RMB, an increase of 8.83% from the end of the previous year[18] - Net assets attributable to shareholders of the listed company at period-end were 1,865,932,799.55 RMB, an increase of 3.41% from the end of the previous year[18] Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were 2,349,402,169.02 RMB, with total current assets of 1,713,686,320.17 RMB and total non-current assets of 635,715,848.85 RMB. Total liabilities were 681,040,799.97 RMB, and total owners' equity was 1,668,361,369.05 RMB Consolidated Income Statement In the first half of 2025, the company achieved total operating revenue of 784,574,347.90 RMB, a year-on-year increase of 73.51%; net profit of 115,396,991.62 RMB, a year-on-year increase of 134.06%; and basic earnings per share of 0.83 RMB/share - Total operating revenue was 784,574,347.90 RMB, compared to 452,167,810.16 RMB in the same period last year[139] - Net profit was 115,396,991.62 RMB, compared to 49,302,809.18 RMB in the same period last year[141] - Basic earnings per share was 0.83 RMB/share, compared to 0.36 RMB/share in the same period last year[141] Parent Company Income Statement In the first half of 2025, the parent company achieved operating revenue of 748,226,871.25 RMB and net profit of 79,552,868.66 RMB, a significant increase from the same period last year - Operating revenue was 748,226,871.25 RMB, compared to 453,520,196.47 RMB in the same period last year[143] - Net profit was 79,552,868.66 RMB, compared to 29,047,132.98 RMB in the same period last year[144] Consolidated Cash Flow Statement In the first half of 2025, the company's net cash flow from operating activities was 18,145,124.65 RMB, net cash outflow from investing activities was 48,675,046.97 RMB, and net cash inflow from financing activities was 25,164,932.22 RMB - Net cash flow from operating activities was 18,145,124.65 RMB, a significant year-on-year increase of 659.55%[147][69] - Net cash flow from investing activities was -48,675,046.97 RMB, mainly due to changes in the scale of cash management products[147][68] - Net cash flow from financing activities was 25,164,932.22 RMB, mainly due to the 2024 annual dividend distribution[147][68] Parent Company Cash Flow Statement In the first half of 2025, the parent company's net cash flow from operating activities was -69,756,695.65 RMB, net cash flow from investing activities was 27,400,897.74 RMB, and net cash flow from financing activities was 31,786,215.75 RMB - Net cash flow from operating activities was -69,756,695.65 RMB, compared to -65,708,548.00 RMB in the same period last year[149] - Net cash flow from investing activities was 27,400,897.74 RMB, compared to 18,947,935.84 RMB in the same period last year[149] - Net cash flow from financing activities was 31,786,215.75 RMB, compared to -44,020,002.00 RMB in the same period last year[150] Consolidated Statement of Changes in Owners' Equity In the first half of 2025, the company's consolidated owners' equity increased by 61,488,909.97 RMB, primarily influenced by net profit growth and share-based payments, while also undergoing profit distribution - Total owners' equity increased by 61,488,909.97 RMB in this period[152] - Total comprehensive income was 117,342,770.64 RMB[153] - Owners' contributions and capital reduction increased by 13,510,962.33 RMB, of which share-based payments included in owners' equity amounted to 1,935,668.33 RMB[153] - Profit distribution decreased by 69,364,823.00 RMB[154] Parent Company Statement of Changes in Owners' Equity In the first half of 2025, the parent company's owners' equity increased by 23,299,645.66 RMB, primarily influenced by net profit growth and share-based payments, while also undergoing profit distribution - Total owners' equity increased by 23,299,645.66 RMB in this period[164] - Total comprehensive income was 79,552,868.66 RMB[164] - Owners' contributions and capital reduction increased by 13,111,672.58 RMB, of which share-based payments included in owners' equity amounted to 5,421,469.38 RMB[164] - Profit distribution decreased by 69,364,823.00 RMB[164] III. Company Basic Information The company was established in 2003 and listed on the STAR Market of the Shanghai Stock Exchange in 2020, primarily engaged in automotive parts R&D, electronic component manufacturing, etc., with the ultimate controlling parties being Mr. Wang Chenghai and Ms. Luo Hongxia - The company was established on June 11, 2003, and listed on the Shanghai Stock Exchange (stock code 688668) in December 2020[167] - Business scope includes automotive parts R&D, power electronic component manufacturing, electronic component manufacturing, mold manufacturing, etc[167] - The ultimate controlling parties are Mr. Wang Chenghai and Ms. Luo Hongxia[167] IV. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis - The company's financial statements are prepared on a going concern basis[168][169] V. Significant Accounting Policies and Estimates This section details the significant accounting policies and estimates followed by the company in preparing its financial statements, covering key areas such as business combinations, financial instruments, revenue recognition, government grants, and deferred income tax, ensuring the truthfulness and completeness of the financial report - Adheres to enterprise accounting standards to truly and completely reflect financial position[171] - Financial instruments are classified as measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss[186] - Revenue is recognized when the customer obtains control of the related goods or services, with different recognition methods applied based on the type of performance obligation[248][251][252][253] - Government grants are classified as asset-related or income-related, either reducing the carrying amount of assets or recognized as deferred income, and then recognized in profit or loss over the useful life of the related asset or during the period when related costs/expenses are incurred[255][257] - Deferred income tax assets and liabilities are recognized based on the difference between the tax base of assets and liabilities and their carrying amounts[260] VI. Taxation The company's main taxes include value-added tax, urban maintenance and construction tax, and enterprise income tax. The company and its subsidiary Henan Dingrun, as national high-tech enterprises, enjoy a 15% preferential enterprise income tax rate Major Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-added tax | 13% | | Urban maintenance and construction tax | 7% | | Enterprise income tax | 15%, 25%, 24% | - Dongguan Dingtong Precision Technology Co., Ltd. and Henan Dingrun Technology Industrial Co., Ltd., as national high-tech enterprises, are subject to a reduced enterprise income tax rate of 15% from 2022 to 2025[274] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes for each major item in the consolidated financial statements, including cash and bank balances, financial assets held for trading, notes receivable, accounts receivable, financing receivables, prepayments, other receivables, inventories, other current assets, fixed assets, construction in progress, right-of-use assets, intangible assets, long-term deferred expenses, deferred income tax assets/liabilities, assets restricted in ownership or use, short-term borrowings, accounts payable, contract liabilities, employee compensation payable, taxes payable, other payables, non-current liabilities due within one year, other current liabilities, lease liabilities, provisions, deferred income, share capital, capital reserves, other comprehensive income, surplus reserves, retained earnings, operating revenue and cost, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, fair value change gains, credit impairment losses, asset impairment losses, non-operating income, non-operating expenses, income tax expenses, other comprehensive income, cash flow statement items, notes to statement of changes in owners' equity items, foreign currency monetary items, and leases Cash and Bank Balances at Period-End | Item | Ending Balance (RMB) | | :--- | :--- | | Cash on hand | 91,987.64 | | Bank deposits | 38,989,245.20 | | Other cash and bank balances | 20,000,000 | | Total | 59,081,232.84 | | Of which: Total funds deposited overseas | 724,977.09 | - Accounts receivable at period-end were 534,463,352.77 RMB, an increase of 33.89% from the beginning of the period, with a bad debt provision of 10,471,785.88 RMB[283][285] - Inventory carrying amount at period-end was 323,673,341.80 RMB, with an inventory impairment provision of 15,473,531.18 RMB[302][304] - Fixed assets carrying amount at period-end was 638,813,858.95 RMB, with accumulated depreciation of 257,165,638.88 RMB[314] - Short-term borrowings at period-end were 70,000,000.00 RMB, representing new credit borrowings in this period[339] - Retained earnings at period-end were 406,162,826.96 RMB, with ordinary share dividends payable of 69,364,823.00 RMB for this period[366] VIII. R&D Expenses This section lists the company's R&D expenses during the reporting period, totaling 54,554,813.52 RMB, primarily composed of personnel compensation, material consumption, and depreciation and amortization R&D Expense Details | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Personnel compensation | 33,215,322.04 | 21,985,923.50 | | Material consumption | 9,382,419.08 | 8,737,691.75 | | Depreciation and amortization | 8,601,818.09 | 7,380,279.77 | | Share-based payment | 680,251.50 | 838,792.50 | | Other | 2,675,002.81 | 1,033,190.67 | | Total | 54,554,813.52 | 39,975,878.19 | | Of which: Expensed R&D expenditure | 54,554,813.52 | 39,975,878.19 | IX. Changes in Consolidation Scope During the reporting period, the company's consolidation scope did not change due to business combinations not involving entities under common control, business combinations involving entities under common control, or reverse acquisitions, nor did any transactions or events result in the loss of control over subsidiaries - During the reporting period, there were no business combinations not involving entities under common control, business combinations involving entities under common control, or reverse acquisitions[401] - During the reporting period, there were no transactions or events resulting in the loss of control over subsidiaries[402] X. Interests in Other Entities This section lists the composition of the company's major subsidiaries, including Henan Dingrun Technology Industrial Co., Ltd., Dingtong Precision (Malaysia) Sdn Bhd, and Dingtong Technology (Changsha) Co., Ltd., all of which are wholly-owned subsidiaries Composition of the Enterprise Group | Subsidiary Name | Main Operating Location | Registered Capital (RMB) | Business Nature | Shareholding Ratio (%) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Henan Dingrun Technology Industrial Co., Ltd. | Xinyang City, Henan Province | 160,000,000.00 | Manufacturing | 100 | Business combination under common control | | Dingtong Precision (Malaysia) Sdn Bhd | Malaysia | 52,956,410.00 | Manufacturing | 100 | Newly established | | Dingtong Technology (Changsha) Co., Ltd. | Changsha City, Hunan Province | 50,000,000.00 | Manufacturing | 100 | Newly established | XI. Government Grants During the reporting period, the company received total government grants of 2,490,312.73 RMB, of which 6,330,128.51 RMB related to assets was recognized in other income, and 964,663.34 RMB related to income was recognized in current profit or loss Liability Items Involving Government Grants | Financial Statement Item | Beginning Balance (RMB) | New Grants in Current Period (RMB) | Amount Recognized in Non-Operating Income in Current Period (RMB) | Amount Transferred to Other Income in Current Period (RMB) | Ending Balance (RMB) | Related to Asset/Income | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Government grants | 85,068,284.43 | 2,490,312.73 | 0 | 6,330,128.51 | 81,228,468.65 | Asset-related | Government Grants Recognized in Current Profit or Loss | Type | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Asset-related | 6,330,128.51 | 4,338,097.73 | | Income-related | 964,663.34 | 302,936.39 | | Total | 7,294,791.85 | 4,641,034.12 | XII. Risks Related to Financial Instruments The company in its operations faces credit risk, liquidity risk, and market risk (including exchange rate risk, interest rate risk, and other price risks), and manages these risks through board planning, risk management committee execution, and internal audit supervision - The company faces credit risk, liquidity risk, and market risk (including exchange rate risk, interest rate risk, and other price risks)[407] - Credit risk primarily arises from cash and bank balances, notes receivable, accounts receivable, etc., and is controlled by assessing customer creditworthiness, setting credit ter