光启技术(002625) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions Important Notice The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[5] - The company's responsible person Liu Ruopeng, chief accountant Feng Pingtao, and head of accounting department Feng Pingtao declare the financial report is true, accurate, and complete[5] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[6] Table of Contents This report's clear table of contents lists nine main chapters, covering company profile, management discussion and analysis, corporate governance, significant events, share changes, bond information, financial reports, and other submitted data, providing comprehensive information navigation for investors - The report contains nine main chapters, covering company profile, management discussion and analysis, corporate governance, significant events, share changes, bond information, financial reports, and other submitted data[8] List of Documents for Inspection Documents for inspection include signed and sealed financial statements, original copies of all publicly disclosed company documents and announcements during the reporting period, which can be provided to the CSRC, stock exchange, or shareholders upon request - Documents for inspection include signed and sealed financial statements and original copies of publicly disclosed company documents and announcements[10][11] Definitions This section defines common terms used in the report, including regulatory bodies, exchanges, company names, currency units, reporting period time points, and names of major subsidiaries and fundraising projects, ensuring accurate understanding of the report's content - The definitions section clarifies key terms in the report, including regulatory bodies, company entities, currency units, and reporting period time[12] Section II Company Profile and Key Financial Indicators Company Profile Kuang-Chi Technologies Co., Ltd. (stock code 002625) is listed on the Shenzhen Stock Exchange, with Liu Ruopeng as its legal representative - The company's stock abbreviation is "Kuang-Chi Technologies", stock code 002625, listed on the Shenzhen Stock Exchange[15] - The company's legal representative is Liu Ruopeng[15] Contact Person and Information The company's Board Secretary is Zhou Jianlin, and the Securities Affairs Representative is Tan Shunyan, both located at 3rd Floor, Software Building, No. 9 Gaoxin Middle Road 1, Nanshan District, Shenzhen, with identical phone and fax numbers, and email ir@kc-t.cn - The contact information for Board Secretary Zhou Jianlin and Securities Affairs Representative Tan Shunyan is consistent, including address, phone, fax, and email[16] Other Information During the reporting period, there were no changes in the company's contact information, information disclosure and placement locations, or other relevant data, with specific details available in the 2024 annual report - The company's registered address, office address, website, email, and other contact information remained unchanged during the reporting period[17] - Information disclosure and placement locations remained unchanged during the reporting period[18] Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue increased by 10.70% year-on-year, and net profit attributable to shareholders increased by 6.75%, but net cash flow from operating activities decreased by 49.55%. Total assets and net assets attributable to shareholders both grew Key Accounting Data and Financial Indicators (Year-on-Year) | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 943,205,000.76 | 852,027,122.24 | 10.70% | | Net Profit Attributable to Shareholders of Listed Company | 385,755,867.84 | 361,368,710.89 | 6.75% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 375,784,530.00 | 356,480,694.02 | 5.42% | | Net Cash Flow from Operating Activities | 161,213,887.75 | 319,580,869.62 | -49.55% | | Basic Earnings Per Share (RMB/share) | 0.18 | 0.17 | 5.88% | | Diluted Earnings Per Share (RMB/share) | 0.18 | 0.17 | 5.88% | | Weighted Average Return on Net Assets | 4.23% | 4.04% | 0.19% | Key Accounting Data and Financial Indicators (Period-End) | Indicator | End of Current Reporting Period (RMB) | End of Prior Year (RMB) | Period-End vs. Prior Year-End Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 10,747,140,437.45 | 9,919,567,934.64 | 8.34% | | Net Assets Attributable to Shareholders of Listed Company | 9,320,006,080.80 | 8,934,250,212.96 | 4.32% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial reports prepared under International Accounting Standards or overseas accounting standards and Chinese Accounting Standards - The company reported no differences in net profit and net assets between financial reports prepared under International Accounting Standards and Chinese Accounting Standards during the reporting period[21] - The company reported no differences in net profit and net assets between financial reports prepared under overseas accounting standards and Chinese Accounting Standards during the reporting period[22] Non-Recurring Gains and Losses Items and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to RMB 9,971,337.84, primarily from government subsidies, disposal gains/losses of non-current assets, and debt restructuring gains/losses, after deducting income tax impact Non-Recurring Gains and Losses Items and Amounts | Item | Amount (RMB) | Explanation | | :--- | :--- | :--- | | Disposal gains/losses of non-current assets | 12,249.92 | Gains from disposal of fixed assets and losses from scrapping fixed assets | | Government grants recognized in current profit or loss | 11,385,935.95 | Excludes government grants closely related to the company's normal operations, compliant with national policies, enjoyed according to established standards, and having a continuous impact on the company's profit or loss | | Debt restructuring gains/losses | 90,089.37 | | | Other non-operating income and expenses apart from the above items | 217,605.20 | Mainly compensation, scrap income, and liquidated damages | | Less: Income tax impact | 1,734,542.60 | | | Total | 9,971,337.84 | -- | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor has it classified non-recurring gains and losses items as recurring gains and losses[25] Section III Management Discussion and Analysis Main Business Activities During the Reporting Period The company continues to provide integrated electromagnetic modulation, avionics, and load-bearing structure solutions for China's advanced equipment, with metamaterial complex functional structures applied in various aerial, marine, and long-range guided equipment. The company's self-developed fixed-wing metamaterial low-altitude UAV successfully completed its test flight and obtained national CNAS expanded accreditation, enabling it to offer testing services to civil industries. The company's main business is the R&D, production, and sales of metamaterial complex functional structures, with no change in its operating model, and it hosted the 4th National Metamaterial Conference as an industry leader - The company continuously provides integrated system-level solutions for electromagnetic modulation, avionics systems, and load-bearing structures for China's advanced equipment[27] - The company's metamaterial complex functional structures have been applied in multiple types of China's aerial, marine, and long-range guided equipment, and its self-developed fixed-wing metamaterial low-altitude UAV successfully completed its test flight[27] - The company obtained national CNAS expanded accreditation, enabling it to provide testing services to civil industries such as electronic products and new energy vehicles[27] - The company's main business is the R&D, production, and sales of metamaterial complex functional structures, with no change in its operating model, and it hosted the 4th National Metamaterial Conference as an industry leader[29][30][31] Analysis of Core Competencies The company's core competitiveness lies in building a 'from 0 to 1' metamaterial industrial system, possessing globally leading R&D, design, mass production, and testing capabilities, continuously strengthened through capacity expansion and technological iteration. The company holds extensive patent reserves and a first-mover advantage in the civil market for metamaterials, supported by an experienced core team - The company has built a metamaterial full-产业链 ecosystem of "1 headquarters + 5 bases + 7 major capability platforms + 8 specialized companies", becoming a global leader in metamaterials[32] - During the reporting period, 709 Base Phase II capacity ramped up, and 905 Base Phase I and 906 Base Phase I construction progressed ahead of schedule, further breaking through capacity bottlenecks[32] - The company possesses a supercomputing center with a peak computing capability of 4,200 trillion operations per second and a metamaterial gene bank, with fourth-generation metamaterial products already applied in advanced equipment[33][34] - During the reporting period, 27 new patent applications (including 16 invention patents) were filed, and 30 patents were granted, maintaining a global lead in patent reserves[34] - The company has accumulated deep technical reserves and strict quality control standards in the metamaterial field, laying a first-mover advantage for expanding into the civil market[34] Analysis of Main Business During the reporting period, the company's main business revenue increased by 10.70% year-on-year, with metamaterial product revenue growing by 47.35%, but metamaterial R&D business revenue significantly decreased by 98.89%. Selling and administrative expenses rose sharply due to increased employee compensation, depreciation, and amortization, while net cash flow from operating activities decreased by 49.55% due to reduced sales collections and higher employee compensation Major Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (RMB) | Prior Year Period (RMB) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 943,205,000.76 | 852,027,122.24 | 10.70% | | | Operating Costs | 425,803,431.28 | 398,840,131.23 | 6.76% | | | Selling Expenses | 3,737,381.43 | 2,229,589.96 | 67.63% | Primarily due to increased employee compensation compared to the prior year period | | Administrative Expenses | 54,912,933.38 | 35,055,607.39 | 56.65% | Primarily due to increased employee compensation, depreciation, and amortization compared to the prior year period | | Financial Expenses | -56,528,064.24 | -90,128,761.71 | 37.28% | Primarily due to reduced interest income from cash management, affected by the scale of cash management, compared to the prior year period | | R&D Investment | 66,798,223.10 | 58,172,474.13 | 14.83% | | | Net Cash Flow from Operating Activities | 161,213,887.75 | 319,580,869.62 | -49.55% | Primarily due to reduced sales collections and increased cash paid to and for employees compared to the prior year period | Operating Revenue Composition (by Product) | By Product | Current Reporting Period Amount (RMB) | Proportion of Operating Revenue (%) | Prior Year Period Amount (RMB) | Proportion of Operating Revenue (%) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Metamaterial Products | 935,947,957.28 | 99.23% | 635,205,359.33 | 74.55% | 47.35% | | Metamaterial R&D Business | 2,391,050.26 | 0.25% | 215,216,455.14 | 25.26% | -98.89% | - The company's profit composition or sources of profit did not undergo significant changes during the reporting period[37] Analysis of Non-Core Business Non-core businesses had a minor impact on the company's total profit; other income (mainly government subsidies and VAT super deduction) is sustainable, while investment income, non-operating income, and asset disposal gains are mostly incidental, and credit impairment losses negatively affected total profit Non-Core Business Analysis | Item | Amount (RMB) | Proportion of Total Profit (%) | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 90,089.37 | 0.02% | Debt restructuring income | No | | Non-Operating Income | 307,722.95 | 0.07% | Primarily from claims against suppliers for delayed delivery and scrap income | No | | Non-Operating Expenses | 90,522.75 | 0.02% | Primarily liquidated damages | No | | Other Income | 25,863,844.16 | 5.78% | Primarily received and deferred amortized government grants, and VAT super deduction | Government grants that comply with national policies, are enjoyed according to established standards, and have a continuous impact on the company's profit or loss are sustainable; VAT super deduction is sustainable | | Credit Impairment Losses | -36,522,316.64 | -8.17% | Provision for bad debts on accounts receivable and other receivables | Yes | | Asset Disposal Gains | 12,654.92 | 0.00% | Gains from disposal of fixed assets | No | Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets increased by 8.34% year-on-year. Accounts receivable, inventories, fixed assets, notes payable, and accounts payable all saw significant growth, primarily due to expanding business scale and construction of fundraising projects. Monetary funds and notes receivable decreased, while other non-current assets and notes payable substantially increased Significant Changes in Asset Composition | Item | Period-End Amount (RMB) | Proportion of Total Assets (%) | Prior Year-End Amount (RMB) | Proportion of Total Assets (%) | Change in Proportion (%) | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 4,499,325,375.72 | 41.87% | 4,550,316,052.03 | 45.87% | -4.00% | | | Accounts Receivable | 2,464,567,320.74 | 22.93% | 1,824,534,584.68 | 18.39% | 4.54% | Primarily due to the growth in sales of the company's metamaterial advanced equipment products and the characteristics of the company's major customers, accounts receivable are all within normal credit terms | | Inventories | 352,508,179.82 | 3.28% | 220,406,942.10 | 2.22% | 1.06% | Primarily due to metamaterial business preparing for production and materials for delivery tasks | | Fixed Assets | 1,227,925,855.46 | 11.43% | 930,530,026.13 | 9.38% | 2.05% | Primarily due to buildings and structures of 709 Base Phase II reaching operational status and being transferred from construction in progress to fixed assets | | Notes Receivable | 286,859,198.00 | 2.67% | 573,964,961.59 | 5.79% | -3.12% | Primarily due to the maturity and collection of commercial acceptance bills by the company's subsidiary Kuang-Chi Advanced at the beginning of the period, and new bill collections during the reporting period | | Development Expenditures | 39,572,757.17 | 0.37% | 80,127,143.79 | 0.81% | -0.44% | Primarily due to 3 capitalized R&D projects of the company's subsidiary Kuang-Chi Advanced being completed and meeting the recognition criteria for intangible assets during the reporting period, transferred from development expenditures to intangible assets | | Other Non-Current Assets | 80,758,845.51 | 0.75% | 30,757,488.96 | 0.31% | 0.44% | Primarily due to prepaid equipment and engineering costs for fundraising projects | | Notes Payable | 245,855,511.52 | 2.29% | 16,500,064.50 | 0.17% | 2.12% | Due to the company continuing to optimize payment methods, issuing bank acceptance bills and commercial acceptance bills to pay suppliers | | Accounts Payable | 848,381,518.93 | 7.89% | 603,396,515.42 | 6.08% | 1.81% | Primarily due to accounts payable to suppliers for metamaterial business preparing for production and materials for delivery tasks, and equipment and engineering costs for fundraising projects | Restricted Asset Rights | Item | Period-End Book Balance (RMB) | Type of Restriction | Details of Restriction | | :--- | :--- | :--- | :--- | | Monetary Funds | 85,927,949.74 | Restricted use | Judicial frozen funds and bill deposits | | Notes Receivable | 45,007,313.39 | Restricted use | Endorsed but not yet due | | Total | 130,935,263.13 | | | - The company had no major overseas assets or assets and liabilities measured at fair value during the reporting period[46] Analysis of Investment Status The company had no significant equity or financial asset investments during the reporting period, but multiple fundraising projects are underway, including 709 Base, R&D Center, 905 Base Phase 1, and 906 Base Phase 1, with substantial cumulative investments but no expected returns yet. Some fundraising projects, such as the Shenyang project, Operations Center project, Industrialization project, and Informatization project, have been terminated or adjusted to focus on the core advanced equipment business - The company had no securities investments or derivative investments during the reporting period[49][50] Significant Non-Equity Investments in Progress | Project Name | Investment Method | Industry Involved in Investment Project | Amount Invested in Current Reporting Period (RMB) | Cumulative Actual Investment Amount as of End of Reporting Period (RMB) | Source of Funds | Project Progress (%) | Estimated Return (RMB) | Cumulative Return Achieved as of End of Reporting Period (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 709 Base | Self-built | Metamaterials | 59,724,095.47 | 1,804,771,616.59 | Raised Funds | 76.29% | 467,693,300.00 | 0.00 | | R&D Center Project | Self-built | Metamaterials | 13,232,814.80 | 200,640,544.25 | Raised Funds | 31.35% | | 0.00 | | 905 Base Phase 1 | Self-built | Metamaterials | 86,389,228.69 | 178,607,281.35 | Raised Funds | 16.22% | 451,807,100.00 | 0.00 | | 906 Base Phase 1 | Self-built | Metamaterials | 56,476,861.85 | 68,796,861.85 | Raised Funds | 6.25% | 453,577,100.00 | 0.00 | | Total | -- | -- | 215,823,000.81 | 2,252,816,304.04 | -- | -- | 1,373,077,500.00 | 0.00 | Overall Use of Raised Funds | Fundraising Year | Fundraising Method | Net Raised Funds (RMB 10,000) | Total Raised Funds Used in Current Period (RMB 10,000) | Cumulative Total Raised Funds Used (RMB 10,000) | Proportion of Raised Funds Used at Period-End (%) | Cumulative Amount of Raised Funds with Changed Use (RMB 10,000) | Proportion of Cumulative Raised Funds with Changed Use (%) | Total Unused Raised Funds (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2017 | Non-public Offering | 683,776.33 | 21,582.3 | 432,694.82 | 63.28% | 619,776.33 | 90.64% | 339,538.93 | - The company has terminated the Shenyang project, Operations Center project, Industrialization project, and Informatization project, and adjusted investments in the R&D Center project and 709 Base to focus on the core advanced equipment business[58] Significant Asset and Equity Sales During the reporting period, the company did not engage in any significant asset or equity sales - The company did not sell significant assets during the reporting period[61] - The company did not sell significant equity during the reporting period[62] Analysis of Major Holding and Participating Companies The company's major subsidiaries include Kuang-Chi Advanced, Luoyang Advanced Equipment, Kuang-Chi Metamaterials, Shunde Kuang-Chi, and Kuang-Chi Microelectronics, which conduct R&D, production, and sales in aerospace, marine, and new materials, contributing most of the operating revenue and net profit. During the reporting period, Xi'an Kuang-Chi Advanced Technology Research Institute was deregistered Major Subsidiary Financial Data | Company Name | Company Type | Main Business | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Kuang-Chi Advanced | Subsidiary | R&D, technical consulting, and sales of aerospace industrial products and equipment, etc | 100,000,000.00 | 5,695,061,260.48 | 2,401,125,599.85 | 939,259,145.21 | 59,834,488.52 | 55,947,116.47 | | Luoyang Advanced Equipment | Subsidiary | R&D, production (manufacturing), technical consulting, technical services, and sales of aerospace, marine, and other products, etc | 10,000,000.00 | 315,828,793.30 | 197,669,824.05 | 94,152,088.62 | 33,671,782.52 | 28,650,949.84 | | Kuang-Chi Metamaterials | Subsidiary | Technical development, technical services, consulting, and sales of integrated solutions for high-end functional equipment, etc | 600,000,000.00 | 5,516,445,405.19 | 4,758,971,894.92 | 223,637,288.76 | 241,047,772.12 | 205,526,919.49 | | Shunde Kuang-Chi | Subsidiary | Sales of electronic products; manufacturing of glass fiber reinforced plastic products; R&D of new material technologies, etc | 55,000,000.00 | 2,853,512,182.23 | 2,064,142,175.75 | 428,490,547.87 | 97,515,770.65 | 82,932,130.96 | | Kuang-Chi Microelectronics | Subsidiary | Technical development, technical consulting, testing, and purchase/sale of electronic products, production of metamaterials, etc | 10,000,000.00 | 211,057,223.48 | 147,271,612.66 | 114,932,709.47 | 37,959,133.69 | 34,024,073.23 | - During the reporting period, the company deregistered Xi'an Kuang-Chi Advanced Technology Research Institute, which had no actual business and thus no impact[71] Information on Structured Entities Controlled by the Company During the reporting period, the company did not control any structured entities - The company had no structured entities under its control during the reporting period[71] Risks Faced by the Company and Countermeasures The company faces risks of a shortage of professional technical talent and the impact of declassified information disclosure on investor judgment. To address talent risks, the company ensures talent supply through industry-university cooperation, incentive mechanisms, and talent development; to address information disclosure risks, the company strengthens communication with investors through various channels within compliance limits - The company faces risks of a shortage of professional technical talent, which it addresses through industry-university cooperation, incentive assessments, and talent promotion channels[71] - The company's main business involves classified information, and declassified disclosure may affect investor judgment; the company strengthens communication with investors through various channels such as roadshows, performance briefings, and interactive platforms[71] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has formulated a 'Market Value Management System' to regulate market value management activities and protect investors' legitimate rights and interests, but has not disclosed a valuation enhancement plan - The company has formulated a "Market Value Management System", which has been reviewed and approved by the board of directors, aiming to regulate market value management activities[72] - The company has not disclosed a valuation enhancement plan[72] Implementation of the "Dual Enhancement of Quality and Returns" Action Plan The company has disclosed its 'Dual Enhancement of Quality and Returns' action plan, actively practicing the 'investor-centric' development philosophy through measures such as focusing on main business, improving operational quality, standardizing operations, enhancing corporate governance, strengthening information disclosure, and emphasizing shareholder returns. During the reporting period, the company strengthened technology R&D, optimized production management, improved governance structure, enhanced investor communication, and implemented a 2024 semi-annual cash dividend - The company has disclosed its "Dual Enhancement of Quality and Returns" action plan, aimed at improving the quality and investment value of listed companies[73] - The action plan includes measures such as focusing on main business, improving operational quality, standardizing operations, enhancing corporate governance, improving information disclosure quality, and emphasizing shareholder returns[73] - During the reporting period, the company strengthened technology R&D, optimized production management, improved corporate governance, enhanced investor communication, and implemented a 2024 semi-annual cash dividend of RMB 2.33 per 10 shares[74] Section IV Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management During the reporting period, there were changes in the company's senior management and independent directors: Feng Pingtao was appointed Chief Financial Officer, Zhou Jianlin was appointed Board Secretary, Zhou Xiaonan resigned as independent director due to personal reasons, and Lan Yanxiang was elected as independent director Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Feng Pingtao | Chief Financial Officer | Appointment | March 19, 2025 | Job transfer | | Zhou Jianlin | Board Secretary | Appointment | April 07, 2025 | Job transfer | | Zhou Xiaonan | Independent Director | Resignation | June 19, 2025 | Personal reasons | | Lan Yanxiang | Independent Director | Election | June 19, 2025 | Job transfer | Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[77] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company's 2021 stock option incentive plan has cancelled remaining stock options, with cumulative expenses recognized totaling RMB 8,209,528.41. In 2025, the company approved a new stock option incentive plan, proposing to grant 3.6628 million stock options with an exercise price of RMB 37.13 per share. There were no employee stock ownership plans or other employee incentive measures during the reporting period - The company's 2021 stock option incentive plan has cancelled 110,691.00 stock options that expired without exercise in the third exercise period, with cumulative expenses recognized totaling RMB 8,209,528.41[78] - The company approved the 2025 stock option incentive plan, proposing to grant 3.6628 million stock options, including 2.9302 million first-time granted options, with an exercise price of RMB 37.13 per share[80] - During the reporting period, the company had no employee stock ownership plans or other employee incentive measures[81] Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[81] Social Responsibility The company protects shareholder rights by improving internal controls, strengthening investor communication, and treating all shareholders fairly. It protects employee rights in accordance with labor laws, establishes incentive mechanisms, and emphasizes employee training and career development. The company protects supplier and customer rights through strict supplier selection and evaluation, and by providing high-quality metamaterial products - The company protects shareholder rights by improving its internal control system, holding shareholder meetings, implementing online voting, separately counting votes of small and medium investors, strengthening information disclosure, and multi-dimensional communication[81] - The company protects employee labor rights in accordance with the "Labor Law", establishes assessment and incentive mechanisms, and emphasizes employee training and career development[82] - The company establishes long-term cooperative relationships with qualified suppliers through selection and evaluation; by providing high-performance, high-quality metamaterial functional structural components, it meets customer needs and gains high recognition[83] Section V Significant Matters Commitments During the reporting period, there were no commitments made by the company's actual controller, shareholders, related parties, acquirers, or the company that were fulfilled or overdue and unfulfilled by the end of the reporting period - The company reported no commitments by related parties that were fulfilled or overdue and unfulfilled during the reporting period[85] Non-Operating Occupation of Funds During the reporting period, there was no non-operating occupation of funds by controlling shareholders or other related parties of the listed company - The company reported no non-operating occupation of funds by controlling shareholders or other related parties of the listed company during the reporting period[86] Irregular External Guarantees During the reporting period, the company had no irregular external guarantees - The company had no irregular external guarantees during the reporting period[87] Appointment and Dismissal of Accounting Firms The company's semi-annual report was not audited - The company's semi-annual report was not audited[88] Explanation by the Board of Directors and Supervisory Board on the Accounting Firm's "Non-Standard Audit Report" for the Current Period The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[89] Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[89] Bankruptcy and Reorganization Matters The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[89] Litigation Matters During the reporting period, the company had no significant litigation or arbitration matters. There were other litigation matters not meeting the disclosure threshold for significant litigation, involving RMB 3.707 million, some of which are still pending but have no significant impact on the company - The company had no significant litigation or arbitration matters in this reporting period[90] Other Litigation Matters | Basic Information of Litigation (Arbitration) | Amount Involved (RMB 10,000) | Whether Provision for Liabilities Formed | Progress of Litigation (Arbitration) | Outcome and Impact of Litigation (Arbitration) | | :--- | :--- | :--- | :--- | :--- | | Litigation (arbitration) not meeting the disclosure threshold for significant litigation (arbitration) | 370.7 | No | Some cases are still pending as of the end of the reporting period | The litigation has no significant impact on the company | Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[92] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the reporting period, there were no integrity issues concerning the company, its controlling shareholder, or actual controller - During the reporting period, there were no integrity issues concerning the company, its controlling shareholder, or actual controller[93] Significant Related Party Transactions During the reporting period, the company engaged in daily related party procurement transactions with Shenzhen Kuang-Chi Space Technology Co., Ltd., totaling RMB 50.2379 million, which did not exceed the approved limit. The company had no non-operating related party creditor-debtor transactions, nor any dealings with affiliated financial companies Related Party Transactions Related to Daily Operations | Related Party | Related Party Relationship | Type of Related Party Transaction | Content of Related Party Transaction | Transaction Price (RMB 10,000) | Proportion of Similar Transactions (%) | Approved Transaction Limit (RMB 10,000) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shenzhen Kuang-Chi Space Technology Co., Ltd. | Other related party | Related procurement | Procurement of intelligent management systems, special tooling, and metal structural products | 5,023.79 | 61.31% | 10,200 | No | - The company had no non-operating related party creditor-debtor transactions during the reporting period[97] - The company had no deposits, loans, credit lines, or other financial business with affiliated financial companies[98][99] Significant Contracts and Their Performance During the reporting period, the company primarily leased properties for office operations. The company engaged in entrusted wealth management, with a total of RMB 2.69 billion in fundraising entrusted wealth management, and an outstanding balance of RMB 2.545 billion. The company signed two significant sales contracts for large complex metamaterial structural components and metamaterial structural components, with contract amounts of RMB 1.9869544 billion and RMB 660.295 million respectively, both largely executed and revenue recognized - During the reporting period, the company primarily leased properties for its own office and operational needs[103] Entrusted Wealth Management | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management (RMB 10,000) | Outstanding Balance (RMB 10,000) | | :--- | :--- | :--- | :--- | | Bank wealth management products | Raised funds | 269,000 | 254,500 | Other Significant Contracts | Name of Company Party to Contract | Name of Counterparty to Contract | Subject of Contract | Date of Contract Signing | Transaction Price (RMB 10,000) | Performance Status as of End of Reporting Period | | :--- | :--- | :--- | :--- | :--- | :--- | | Kuang-Chi Advanced | Customer A | Large complex metamaterial structural components | January 24, 2022 | 198,695.44 | Revenue of RMB 1,733.6351 million (including tax) recognized, largely executed | | Kuang-Chi Advanced | A certain customer | Metamaterial structural components | March 15, 2024 | 66,029.5 | Revenue of RMB 653.3262 million (including tax) recognized, largely executed | Explanation of Other Significant Matters During the reporting period, the company's wholly-owned subsidiary, Kuang-Chi Advanced, signed production contracts for metamaterial products totaling RMB 780.117096 million and was recognized as a national specialized, refined, unique, and new 'Little Giant' enterprise, which will receive financial support - The company's wholly-owned subsidiary Kuang-Chi Advanced signed production contracts for metamaterial products totaling RMB 780.117096 million, representing new contracts for 2025[109] - Kuang-Chi Advanced was recognized as a national specialized, refined, unique, and new "Little Giant" enterprise, and will subsequently receive financial support[109] Significant Matters of Company Subsidiaries The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[110] Section VI Share Changes and Shareholder Information Share Change Information During the reporting period, the company's total share capital decreased to 2,154,587,862 shares due to the cancellation of 1,258,707 repurchased shares. The controlling shareholder, Tibet Yingbang, had 377,366,252 restricted shares lifted from restrictions and listed for trading, leading to a significant reduction in restricted shares and a corresponding increase in unrestricted shares Share Change Information | Item | Quantity Before This Change (shares) | Proportion Before This Change (%) | Net Increase/Decrease in This Change (shares) | Quantity After This Change (shares) | Proportion After This Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 377,373,377 | 17.50% | -377,366,252 | 7,125 | 0.00% | | Of which: Shares held by domestic legal persons | 377,366,252 | 17.50% | -377,366,252 | 0 | 0.00% | | II. Unrestricted Shares | 1,778,473,192 | 82.50% | 376,107,545 | 2,154,580,737 | 100.00% | | III. Total Shares | 2,155,846,569 | 100.00% | -1,258,707 | 2,154,587,862 | 100.00% | - The company cancelled 1,258,707 repurchased shares, changing the total share capital from 2,155,846,569 shares to 2,154,587,862 shares[114] - The controlling shareholder, Tibet Yingbang, had 377,366,252 restricted shares lifted from restrictions and listed for trading on April 10, 2025[114] - The company has completed the cancellation procedures for 1,258,707 repurchased shares and changed the use of some repurchased shares[116][117] Issuance and Listing of Securities The company had no issuance and listing of securities during the reporting period - The company had no issuance and listing of securities during the reporting period[121] Number of Shareholders and Shareholding Information At the end of the reporting period, the total number of common shareholders was 120,363. The controlling shareholder, Tibet Yingbang Industrial Development Co., Ltd., held 36.00% of the shares, all of which were pledged. Among the top ten shareholders, Yu Minbei is the daughter of Zheng Yuying, and the company is unaware of any other related party relationships or concerted action among other shareholders - The total number of common shareholders at the end of the reporting period was 120,363[122] Shareholding Information of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion (%) | Number of Shares Held at End of Reporting Period (shares) | Number of Unrestricted Shares Held (shares) | Pledged, Marked, or Frozen Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Tibet Yingbang Industrial Development Co., Ltd. | Domestic non-state-owned legal person | 36.00% | 775,661,652 | 775,661,652 | Pledged 775,661,648 shares | | Shi Tingbo | Domestic natural person | 2.92% | 62,824,961 | 62,824,961 | Not applicable | | Shenzhen Kuang-Chi Space Technology Co., Ltd. | Domestic non-state-owned legal person | 2.07% | 44,693,660 | 44,693,660 | Not applicable | | Hong Kong Securities Clearing Company Limited | Overseas legal person | 2.01% | 43,348,954 | 43,348,954 | Not applicable | | Shenwan Hongyuan Securities Co., Ltd. | State-owned legal person | 1.00% | 21,639,999 | 21,639,999 | Not applicable | | Shi Liyun | Domestic natural person | 0.96% | 20,589,611 | 20,589,611 | Not applicable | | China Construction Bank Corporation - Guotai CSI Military Industry ETF | Other | 0.81% | 17,495,597 | 17,495,597 | Not applicable | | Yu Minbei | Domestic natural person | 0.76% | 16,400,000 | 16,400,000 | Not applicable | | Liu Kaili | Domestic natural person | 0.68% | 14,715,000 | 14,715,000 | Not applicable | | Zheng Yuying | Domestic natural person | 0.63% | 13,500,000 | 13,500,000 | Not applicable | - Among the top 10 shareholders, Yu Minbei is the daughter of Zheng Yuying. The company is unaware of any other related party relationships or concerted action among other shareholders[123] Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, independent director Zhou Xiaonan resigned, with no change in her shareholding Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Number of Shares Held at Beginning of Period (shares) | Number of Shares Increased in Current Period (shares) | Number of Shares Decreased in Current Period (shares) | Number of Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhou Xiaonan | Independent Director | Resigned | 0 | 0 | 0 | 0 | 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[126] - The company's actual controller did not change during the reporting period[126] Information on Preferred Shares The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[127] Section VII Bond-Related Information The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[129] Section VIII Financial Report Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[131] Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the company's financial position, operating results, and cash flow Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were RMB 10.747 billion, an 8.34% increase from the beginning of the period. Total current assets were RMB 7.699 billion, and total non-current assets were RMB 3.047 billion. Total liabilities were RMB 1.427 billion, and total owners' equity was RMB 9.320 billion Consolidated Balance Sheet Key Data | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 10,747,140,437.45 | 9,919,567,934.64 | | Total Current Assets | 7,699,766,542.21 | 7,296,275,475.11 | | Total Non-Current Assets | 3,047,373,895.24 | 2,623,292,459.53 | | Total Liabilities | 1,427,134,356.65 | 985,317,721.68 | | Total Owners' Equity | 9,320,006,080.80 | 8,934,250,212.96 | Consolidated Income Statement In the first half of 2025, the company's consolidated total operating revenue was RMB 943.205 million, a 10.70% increase year-on-year. Net profit was RMB 385.756 million, a 6.75% increase year-on-year. Total operating costs were RMB 485.605 million, with significant increases in administrative and selling expenses Consolidated Income Statement Key Data | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | I. Total Operating Revenue | 943,205,000.76 | 852,027,122.24 | | II. Total Operating Costs | 485,604,881.97 | 400,691,023.84 | | Selling Expenses | 3,737,381.43 | 2,229,589.96 | | Administrative Expenses | 54,912,933.38 | 35,055,607.39 | | R&D Expenses | 50,053,752.43 | 46,575,495.81 | | Financial Expenses | -56,528,064.24 | -90,128,761.71 | | III. Operating Profit | 447,044,390.60 | 420,487,030.72 | | IV. Total Profit | 447,261,590.80 | 419,261,868.68 | | Less: Income Tax Expense | 61,505,722.96 | 57,961,157.30 | | V. Net Profit | 385,755,867.84 | 361,300,711.38 | | Net Profit Attributable to Parent Company Shareholders | 385,755,867.84 | 361,368,710.89 | | Basic Earnings Per Share | 0.18 | 0.17 | | Diluted Earnings Per Share | 0.18 | 0.17 | Consolidated Cash Flow Statement In the first half of 2025, the company's net cash flow from operating activities was RMB 161.214 million, a 49.55% decrease year-on-year. Net cash flow from investing activities was -RMB 238.898 million, and net cash flow from financing activities was -RMB 46.193 million. The net increase in cash and cash equivalents was -RMB 123.877 million Consolidated Cash Flow Statement Key Data | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 161,213,887.75 | 319,580,869.62 | | Net Cash Flow from Investing Activities | -238,897,568.29 | -265,096,721.05 | | Net Cash Flow from Financing Activities | -46,193,091.51 | -65,187,862.10 | | Net Increase in Cash and Cash Equivalents | -123,876,772.05 | -10,703,713.53 | | Period-End Cash and Cash Equivalents Balance | 4,119,229,457.00 | 5,378,966,533.28 | Company Basic Information Kuang-Chi Technologies Co., Ltd., formerly Zhejiang Longsheng Auto Parts Co., Ltd., was renamed in 2017. The company is registered in Nanshan District, Shenzhen, with a registered capital of RMB 2,154.587862 million. Its main business is the R&D, production, and sales of new-generation metamaterial advanced equipment products, belonging to the railway, ship, aerospace, and other transportation equipment manufacturing industries. The ultimate actual controller of the group is Liu Ruopeng - The company was renamed Kuang-Chi Technologies Co., Ltd. on June 7, 2017, with its registered address at 3rd Floor, Software Building, No. 9 Gaoxin Middle Road 1, Mailing Community, Yuehai Street, Nanshan District, Shenzhen[165][166] - As of June 30, 2025, the company's total issued share capital was 2,154.587862 million shares, and its registered capital was RMB 2,154.587862 million[166] - The company's main business is the R&D, production, and sales of new-generation metamaterial advanced equipment products, belonging to the railway, ship, aerospace, and other transportation equipment manufacturing industries[166] - The ultimate actual controller of the group is Liu Ruopeng[166] Basis of Financial Statement Preparation The company's financial statements are prepared in accordance with accounting standards issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission, and are evaluated based on the going concern assumption, with no significant doubts about its ability to continue as a going concern - The company's financial statements are prepared in accordance with Enterprise Accounting Standards and the China Securities Regulatory Commission's "Information Disclosure and Reporting Rules for Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports" (Revised in 2023)[168] - The company evaluated its ability to continue as a going concern for 12 months from the end of the reporting period and found no significant doubts or circumstances regarding its ability to continue as a going concern[169] Significant Accounting Policies and Accounting Estimates This section details the company's statement of compliance with enterprise accounting standards, accounting period, operating cycle, functional currency, materiality criteria, business combinations, consolidated financial statement preparation, cash and cash equivalents, foreign currency transactions, financial instruments, notes receivable, accounts receivable, contract assets, inventories, assets held for sale, debt investments, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, share-based payments, revenue, contract costs, government grants, deferred income tax assets/liabilities, right-of-use assets, lease liabilities, leases, repurchased shares, debt restructuring, and discontinued operations - The company's financial statements comply with Enterprise Accounting Standards, accurately and completely reflecting its financial position, operating results, cash flows, and other information[171] - The company defines its operating cycle as 12 months, using it as the standard for classifying assets and liabilities as current or non-current[173] - The company classifies financial assets into three categories based on their business model and contractual cash flow characteristics: 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[192] - The company measures loss provisions for all contract assets, notes receivable, and accounts receivable arising from transactions governed by revenue standards at an amount equal to the expected credit losses over the entire lifetime[206] - The company's revenue primarily comes from R&D service business and metamaterial product sales, with revenue recognized when customers obtain control of the related goods or services[272][273][274] Taxation The company's main taxes include VAT, urban maintenance and construction tax, enterprise income tax, property tax, and education surcharge. Several subsidiaries enjoy high-tech enterprise income tax incentives (15% tax rate) or small and micro-profit enterprise income tax incentives (20% tax rate). Some subsidiaries also benefit from VAT super deduction policies and a 50% reduction in land use tax Major Taxes and Tax Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of goods or provision of taxable services | 13%, 9%, 6%, 3% | | Urban Maintenance and Construction Tax | Amount of turnover tax actually paid | 5%, 7% | | Enterprise Income Tax | Taxable income | 15%, 20%, 25% | | Property Tax | For value-based assessment, 1.2% of the original value of the property after a one-time deduction of 30%; for rent-based assessment, 12% of rental income | 1.2% or 12% | | Education Surcharge | Amount of turnover tax actually paid | 3% | - Kuang-Chi Advanced, Kuang-Chi Microelectronics, Luoyang Advanced Equipment, Shunde Kuang-Chi, and Kuang-Chi Metamaterials are recognized as high-tech enterprises and are subject to enterprise income tax at a 15% rate for the current period[299][300] - Xi'an Advanced Equipment, Baijing Trading, and 10 other subsidiaries meet the criteria for small and micro-profit enterprises and enjoy a 20% enterprise income tax preferential policy[300][301] - Kuang-Chi Advanced's income from registered and filed JP sales and R&D contracts is exempt from VAT. Kuang-Chi Advanced, Luoyang Advanced Equipment, and Shunde Kuang-Chi enjoy a 5% VAT super deduction preferential policy[302] Notes to Consolidated Financial Statement Items This section details the period-end balances, beginning-of-period balances, current period amounts, and changes in various assets, liabilities, owners' equity, income, costs, and expense items in the consolidated financial statements, with explanations for significant changes Monetary Funds Total monetary funds at period-end were RMB 4.499 billion, a slight decrease from the beginning of the period. This includes RMB 85.9279 million in restricted funds, primarily judicial frozen funds and bank acceptance bill deposits Monetary Funds Information | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Bank Deposits | 4,444,045,741.34 | 4,533,756,693.34 | | Other Monetary Funds | 55,279,634.38 | 16,559,358.69 | | Total | 4,499,325,375.72 | 4,550,316,052.03 | Details of Restricted Monetary Funds | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Judicially Frozen Funds | 30,650,742.94 | 32,721,422.94 | | Bank Acceptance Bill Deposits | 55,277,206.80 | 16,500,064.50 | | Total | 85,927,949.74 | 49,221,487.44 | Accounts Receivable The book balance of accounts receivable at period-end was RMB 2.670 billion, a 34% increase from the beginning of the period, with the highest proportion being within 1 year. The company provided RMB 205.060 million for bad debt provisions for accounts receivable, mainly using the aging analysis method and specific asset status combinations Accounts Receivable by Aging | Aging | Period-End Book Balance (RMB) | Period-Beginning Book Balance (RMB) | | :--- | :--- | :--- | | Within 1 year (inclusive) | 1,855,610,775.96 | 1,559,255,143.60 | | 1 to 2 years | 594,052,126.72 | 320,815,348.34 | | 2 to 3 years | 151,035,172.41 | 44,148,397.32 | | Over 3 years | 68,929,597.83 | 68,929,597.83 | | Total | 2,669,627,672.92 | 1,993,148,487.09 | Accounts Receivable Classified by Bad Debt Provision Method | Category | Period-End Book Balance (RMB) | Period-End Bad Debt Provision (RMB) | Period-End Book Value (RMB) | | :--- | :--- | :--- | :--- | | Accounts receivable for which bad debt provision is made individually | 115,260.00 | 115,260.00 | 0.00 | | Accounts receivable for which bad debt provision is made by portfolio | 2,669,512,412.92 | 204,945,092.18 | 2,464,567,320.74 | | Total | 2,669,627,672.92 | 205,060,352.18 | 2,464,567,320.74 | Inventories The book balance of inventories at period-end was RMB 358.820 million, a 58% increase from the beginning of the period. It mainly consists of raw materials, work-in-progress, and R&D projects. Inventory impairment provision was RMB 6.3114 million, primarily for raw materials Inventory Classification | Item | Period-End Book Balance (RMB) | Period-End Inventory Impairment Provision (RMB) | Period-End Book Value (RMB) | | :--- | :--- | :--- | :--- | | Raw Materials | 160,373,850.94 | 6,311,387.77 | 154,062,463.17 | | Work-in-Progress | 90,039,392.22 | 0.00 | 90,039,392.22 | | R&D Projects | 108,406,324.43 | 0.00 | 108,406,324.43 | | Total | 358,819,567.59 | 6,311,387.77 | 352,508,179.82 | Fixed Assets The book value of fixed assets at period-end was RMB 1.228 billion, a 32% increase from the beginning of the period. The increase primarily resulted from transfers from construction in progress, especially the 709 Base Phase II buildings reaching operational status. Fixed assets for which property certificates have not yet been obtained are mainly concentrated in the 709 Base project Fixed Assets Information | Item | Period-End Book Value (RMB) | Period-Beginning Book Value (RMB) | | :--- | :--- | :--- | | Buildings and Structures | 655,397,631.89 | 415,667,526.00 | | General Equipment | 18,268,167.68 | 18,831,781.90 | | Special Equipment | 549,426,083.92 | 492,462,359.36 | | Transportation Vehicles | 4,833,971.97 | 3,568,358.87 | | Total | 1,227,925,855.46 | 930,530,026.13 | - The increase in fixed assets for the current period was RMB 361 million, primarily due to RMB 286 million transferred from construction in progress[361] Fixed Assets for Which Property Certificates Have Not Yet Been Obtained | Item | Book Value (RMB) | Reason for Not Obtaining Property Certificates | | :--- | :--- | :--- | | 709 Project Phase I A-Zone Expansion | 33,694,130.33 | Pending processing | | 709 Project Phase I B-Zone | 155,680,179.36 | Pending processing | | 709 Project Phase II | 293,424,849.94 | Pending processing | Intangible Assets The book value of intangible assets at period-end was RMB 517.419 million, a 25% increase from the beginning of the period. It mainly consists of land use rights, non-patent technology, and software. New intangible assets of RMB 121.000 million were added during the period, of which RMB 57.2989 million were internally developed, accounting for 42.07% of the intangible asset balance Intangible Assets Information | Item | Period-End Book Value (RMB) | Period-Beginning Book Value (RMB) | | :--- | :--- | :--- | | Land Use Rights | 285,390,646.60 | 224,955,780.78 | | Patent Rights | 7,443,212.59 | 8,619,628.21 | | Non-Patent Technology | 217,667,820.97 | 172,109,300.73 | | Software | 4,833,802.18 | 5,648,350.90 | | Data Resources | 2,083,333.31 | 2,319,182.39 | | Total | 517,418,815.65 | 413,652,243.01 | - The increase in intangible assets for the current period was RMB 121 million, of which RMB 57.2989 million was internally developed[374] - The proportion of internally developed intangible assets to the total intangible asset balance at the end of the current period was 42.07%[375] Goodwill The original book value of goodwill at period-end was RMB 321.397 million, primarily from the investment in Kuang-Chi Advanced. No goodwill impairment provision was made during the reporting period. The asset group containing goodwill covers metamaterial production, sales, and R&D businesses, with recoverable amounts calculated based on the present value of estimated future cash flows Original Book Value of Goodwill | Name of Investee or Event Forming Goodwill | Period-Beginning Balance (RMB) | Period-End Balance (RMB) | | :--- | :--- | :--- | | Kuang-Chi Advanced | 321,396,801.20 | 321,396,801.20 | | Total | 321,396,801.20 | 321,396,801.20 | - No goodwill impairment provision was made during the reporting period[381] - The asset group containing goodwill covers metamaterial production, sales, and R&D businesses, with recoverable amounts calculated based on the present value of estimated future cash flows, which are based on management-approved 5-ye