新恒汇(301678) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions Important Notice The board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, while also providing risk warnings for forward-looking statements regarding future plans. The company has approved a profit distribution plan to distribute a cash dividend of 5 yuan (tax included) for every 10 shares to all shareholders. - The company's board of directors, supervisory board, and senior management commit to the truthfulness, accuracy, and completeness of the semi-annual report content[3] - Forward-looking statements regarding future plans in the report do not constitute a substantive commitment, and investors should remain aware of risks[3] 2025 Semi-Annual Profit Distribution Plan | Indicator | Value | | :--- | :--- | | Distribution Base (shares) | 239,555,467 | | Cash Dividend per 10 Shares (tax included) | 5 yuan | | Bonus Shares (tax included) | 0 shares | | Capital Reserve to Share Capital | No | Catalogue of Reference Documents This section lists the company's semi-annual report reference documents, including financial statements, original public disclosure documents, and the original semi-annual report and summary, specifying the location as the company's securities department. - Reference documents include signed and sealed financial statements, original public disclosure documents, and original semi-annual report and summary[7][8][9] - All reference documents are kept at the company's securities department[11] Definitions This section provides definitions for common terms used in the report, covering company names, organizational structures, semiconductor industry-related technologies (e.g., IC, wafer, packaging and testing, eSIM), and financial reporting periods, to ensure accurate understanding of the report content. - Defined the company's abbreviation "Henghui Technology" and its full name "HENGHUI Technology Corporation Limited"[12] - Explained core semiconductor industry terms such as IC (Integrated Circuit), wafer, packaging, testing, packaging and testing, and eSIM[12][14] - Clarified the reporting period as January 1, 2025, to June 30, 2025[14] Company Profile and Key Financial Indicators Company Profile HENGHUI Technology Corporation Limited is listed on the Shenzhen Stock Exchange with stock code 301678, and its legal representative is Ren Zhijun. Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Henghui Technology | | Stock Code | 301678 | | Listed Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | 新恒汇电子股份有限公司 | | Foreign Name | HENGHUI Technology Corporation Limited | | Legal Representative | Ren Zhijun | Contact Person and Contact Information The company disclosed the contact information for Board Secretary Zhang Jiandong and Securities Affairs Representative Zong Xiaoyan, including address, phone, fax, and email. Company Contact Information | Item | Board Secretary | Securities Affairs Representative | | :--- | :--- | :--- | | Name | Zhang Jiandong | Zong Xiaoyan | | Contact Address | No. 187, Zhongrun Avenue, High-tech Zone, Zibo City, Shandong Province | No. 187, Zhongrun Avenue, High-tech Zone, Zibo City, Shandong Province | | Phone | 0533-3982031 | 0533-3982031 | | Fax | 0533-3982701 | 0533-3982701 | | Email | zjd@henghuiic.com | zxy@henghuiic.com | Other Information During the reporting period, there were no changes in the company's contact information, information disclosure and storage locations, or registration status, with specific details available in the company's "Prospectus for Initial Public Offering and Listing on the ChiNext Market". - The company's registered address, office address, website, and email address remained unchanged during the reporting period[17] - Information disclosure websites, media names and URLs, and report storage locations remained unchanged during the reporting period[18] - The company's registration status remained unchanged during the reporting period[20] Key Accounting Data and Financial Indicators The company's operating revenue for the first half of 2025 increased by 14.51% to 474.37 million yuan, but net profit attributable to shareholders decreased by 11.94% to 88.95 million yuan. Total assets and net assets attributable to shareholders significantly increased by 61.45% and 63.21% respectively, due to the initial public offering. 2025 Semi-Annual Key Accounting Data and Financial Indicators | Project | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 474,373,638.49 | 414,264,121.05 | 14.51% | | Net Profit Attributable to Shareholders of Listed Company | 88,954,488.51 | 101,012,696.85 | -11.94% | | Net Profit Attributable to Shareholders of Listed Company (excluding non-recurring gains and losses) | 83,217,880.50 | 93,134,932.15 | -10.65% | | Net Cash Flow from Operating Activities | 85,666,426.38 | 95,193,030.95 | -10.01% | | Basic Earnings Per Share (yuan/share) | 0.50 | 0.56 | -10.71% | | Diluted Earnings Per Share (yuan/share) | 0.50 | 0.56 | -10.71% | | Weighted Average Return on Net Assets | 7.04% | 9.33% | -2.29% | | Project | End of Current Reporting Period (yuan) | End of Prior Year (yuan) | Change from End of Prior Year | | :--- | :--- | :--- | :--- | | Total Assets | 2,195,546,525.75 | 1,359,933,194.74 | 61.45% | | Net Assets Attributable to Shareholders of Listed Company | 1,990,765,751.71 | 1,219,749,233.23 | 63.21% | Differences in Accounting Data under Domestic and Overseas Accounting Standards During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards or overseas accounting standards and Chinese Accounting Standards. - The company had no differences in financial data under International Accounting Standards and Chinese Accounting Standards during the reporting period[22] - The company had no differences in financial data under overseas accounting standards and Chinese Accounting Standards during the reporting period[23] Non-Recurring Gains and Losses and Amounts The company's total non-recurring gains and losses for the reporting period amounted to 5.74 million yuan, primarily from disposal gains/losses of non-current assets, government subsidies, and fair value changes in financial assets. Additionally, the company classified VAT super deduction and personal income tax withholding fee refunds as recurring gains and losses. 2025 Semi-Annual Non-Recurring Gains and Losses and Amounts | Project | Amount (yuan) | | :--- | :--- | | Disposal Gains/Losses of Non-Current Assets | 2,891,460.26 | | Government Subsidies Included in Current Profit/Loss (excluding those with continuous impact) | 3,128,665.82 | | Fair Value Changes and Disposal Gains/Losses of Financial Assets | 743,095.22 | | Other Non-Operating Income and Expenses | -11,992.04 | | Less: Income Tax Impact | 1,013,251.74 | | Impact on Minority Interests (after tax) | 1,369.51 | | Total | 5,736,608.01 | - The company classified VAT super deduction (3.87 million yuan) and personal income tax withholding fee refunds (0.05 million yuan) as recurring gains and losses, as they are closely related to normal operating activities and continuously affect the company's profit and loss[27] Management Discussion and Analysis Main Businesses Engaged in During the Reporting Period The company's main businesses cover three segments: smart cards, etched lead frames, and IoT eSIM chip packaging and testing, all belonging to the integrated circuit packaging materials and packaging and testing services industry. Each business area faces market opportunities and challenges, which the company actively addresses through technological innovation, cost control, and market expansion strategies. - The company's main businesses include smart card business, etched lead frame business, and IoT eSIM chip packaging and testing business[29] - The company's industry belongs to "Computer, Communication and Other Electronic Equipment Manufacturing," specifically "Integrated Circuit Manufacturing, Electronic Special Materials Manufacturing," with the detailed sub-industry being integrated circuit packaging materials and packaging and testing services[29] (I) Smart Card Business Segment The global smart card IC market is projected to reach 3.42 billion US dollars in 2025, with China leading the market. The company primarily engages in the R&D, production, sales, and module packaging of flexible lead frames in the smart card business, reducing reliance on precious metals through technological breakthroughs and expanding into high-corrosion-resistant, CSP, and Flip Chip packaging products, covering core applications such as communication, finance, social security, and IoT. - The global smart card IC market size is projected to reach 3.42 billion US dollars in 2025, with a year-on-year growth of 6.6%, primarily driven by e-government and contactless transportation payments[30] - China's smart card chip market reached 7.63 billion yuan in the first half of the year, with a year-on-year growth of 7%, and is expected to exceed 15 billion yuan for the full year[30] - The company develops high-corrosion-resistant alloy electroplating processes and nickel-palladium-gold electroplating technology to reduce reliance on high-cost precious metals while ensuring product performance, addressing cost pressures from rising gold prices[31] - The company's products, including high-corrosion-resistant carrier module products for extreme environments and CSP packaging products, have entered client verification, with Flip Chip packaging module products expected to enter verification this year, achieving comprehensive coverage from low-end to high-end application scenarios[32] - The future smart card industry will show trends of continuous technological evolution (e.g., eSIM, large-capacity SIM cards), continuous penetration into application fields (e.g., taxation, medical, social insurance), and emerging developing countries becoming new growth points[34][35] - The company will implement a "domestic and international dual market" strategy, focusing on core markets, enriching product series, deploying high-performance products, and enhancing market competitiveness[37] (II) Etched Lead Frame Business Segment The semiconductor industry's recovery is driving increased demand for etched lead frames, with the global market expected to reach 11.68 billion yuan by 2029. The company focuses on high-end etched lead frames, developing high-density, high-precision etching processes and ultra-thin frame processing technologies for consumer electronics, IoT, automotive electronics, and industrial control, with automotive-grade and high-density packaging products already sent for client verification. - In the first half of 2025, China's integrated circuit exports increased by 20.6% in quantity and 20.3% in value[38] - The global integrated circuit packaging and testing market size is projected to reach 86.2 billion US dollars in 2025, with China's mainland sales revenue expected to reach 330.33 billion yuan[40] - From 2023-2029, the global semiconductor etched lead frame market is expected to grow at a CAGR of 5.5%, reaching approximately 11.68 billion yuan by 2029[42] - The company has sent etched lead frame products for automotive-grade electronics and high-density packaging chips to clients for verification[41] - The localization rate in the high-end etched lead frame sector is low, and the company's technology is leading domestically, with production capacity among the top in the industry, benefiting from the trend of domestic substitution[42] - The company will accelerate the implementation of its high-density QFN/DFN packaging material industrialization project, enhance production capacity and yield, deepen client cooperation, and continue to increase R&D investment to deploy domestic material products[45] (III) IoT eSIM Chip Packaging and Testing Business Segment eSIM technology is accelerating its application in consumer electronics, wearables, and IoT terminals, with global eSIM smartphone connections expected to reach 1 billion by 2025 and IoT eSIM connections 195 million by 2026. The company offers consumer-grade, industrial-grade, and automotive-grade eSIM chip packaging products for mobile terminals, IoT, connected vehicles, and industrial networking, with new products entering verification to achieve comprehensive coverage from low-end to high-end application scenarios. - By the end of 2025, global eSIM smartphone connections are expected to reach approximately 1 billion, growing to 6.9 billion by 2030[46] - By 2026, the number of IoT connections using eSIM technology globally will increase from 22 million in 2023 to 195 million[46] - The company has launched consumer-grade, industrial-grade, and automotive-grade eSIM chip packaging products, with new products based on the "Ultra-thin Plastic Package Technology R&D Project" expected to enter verification this year[48] - IoT eSIM chip packaging and testing is a niche business area, and currently there is no authoritative comparable company data[49] - China's IoT chip market size is expected to reach 239.3 billion yuan by 2030, with an average annual compound growth rate of approximately 13.70%[50] - The company will promote the expansion and optimization of high-reliability, high-security eSIM chip packaging and testing production lines, enhance large-scale production capabilities, and deepen client cooperation and market expansion[51] (IV) Industry Information Disclosure As an integrated circuit enterprise, the company's main businesses include smart cards, etched lead frames, and IoT eSIM chip packaging and testing, covering flexible lead frame R&D, production, module packaging, and packaging and testing services. The company has mastered core technologies such as roll-to-roll maskless laser direct writing exposure, continuous etching, and high-precision selective electroplating, and operates on a direct sales model, primarily serving security chip design companies, smart card manufacturers, and integrated circuit packaging and testing enterprises. - The company's main businesses include the R&D, production, and sales of flexible lead frames, a key packaging material for smart card chips, as well as smart card module products or module packaging services[53] - The company has mastered core technologies such as roll-to-roll maskless laser direct writing exposure, continuous etching, and high-precision selective electroplating, achieving mass production and sales of its products[53] - Flexible lead frame products are divided into contact single-interface and dual-interface, with dual-interface products having higher material costs and complex processes, priced at approximately 4 times that of single-interface products[56] - Smart card module products are categorized into client-supplied chip packaging and self-branded sales based on security chip ownership[60] - The company's etched lead frame products primarily include QFN, DFN, SOT, and SOP series, produced using a roll-to-roll manufacturing method[64] - IoT eSIM chip packaging and testing mainly targets IoT identification chips, with packaging forms of DFN/QFN and a small portion of MP packaging, applied in wearables, IoT consumer electronics, and industrial IoT fields[65] - The company's procurement model establishes different processes based on material types (raw materials, fixed assets, spare parts, outsourced processing services) and has established a qualified supplier management system[66][67][68][69][70][73] - The company adopts a direct sales model, with clients primarily being security chip design companies, smart card manufacturers, and integrated circuit packaging and testing enterprises[75] - The company's industry belongs to "Integrated Circuit Manufacturing (C3973), Electronic Special Materials Manufacturing (C3985)," specifically the integrated circuit packaging materials and packaging and testing services industry[77] Analysis of Core Competitiveness The company possesses an integrated business model of key packaging materials and packaging and testing services, core technological advantages, high-quality client resources, and mature and stable process technology in the smart card business. In the etched lead frame and IoT eSIM chip packaging businesses, the company benefits from national policy support and the trend of domestic substitution, leveraging its high starting point, rapid development, and core technological advantages. - The company's smart card business model integrates key packaging materials and packaging and testing services, achieving independent control, ensuring product quality, and shortening production cycles[79] - The company possesses core technological advantages in high-precision metal surface pattern etching and metal material surface treatment technologies[82] - The company has established long-term cooperative relationships with several well-known security chip design manufacturers and domestic and international smart card product manufacturers[83] - The company independently developed selective electroplating technology, enabling "regional" electroplating to reduce production costs while meeting product performance requirements[84] - The etched lead frame and IoT eSIM chip packaging businesses extend from existing mature operations, offering advantages of a high starting point and rapid development[86] - The company masters core technologies such as roll-to-roll maskless laser direct writing exposure, continuous etching, and high-precision selective electroplating, enhancing product quality and production efficiency[87] - The integrated circuit packaging and testing industry benefits from national policy support, with emerging technologies like 5G and AI driving market demand, and the domestic substitution trend presenting development opportunities[88][89] Analysis of Main Business The company's operating revenue for the first half of 2025 increased by 14.51%, primarily due to higher revenue from etched lead frames and IoT eSIM chip packaging and testing. However, operating costs increased by 27.87% year-on-year, mainly due to rising prices of precious metals like gold and silver, leading to a decrease in gross profit margins for smart card and etched lead frame businesses. The company's R&D investment increased by 16.39% year-on-year, and it holds 126 authorized patents. 2025 Semi-Annual Key Financial Data Year-on-Year Changes | Project | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 474,373,638.49 | 414,264,121.05 | 14.51% | Increase in etched lead frame, IoT eSIM chip packaging and testing revenue | | Operating Cost | 330,948,532.36 | 258,821,372.47 | 27.87% | Increase in raw material costs due to rising prices of precious metals like gold and silver | | Financial Expenses | -3,155,364.79 | -6,659,810.08 | 52.62% | Change in exchange gains/losses due to exchange rate fluctuations | | R&D Investment | 27,013,695.72 | 23,209,200.98 | 16.39% | - | | Net Cash Flow from Financing Activities | 722,122,224.04 | -4,261,923.36 | 17,043.58% | Receipt of funds from stock issuance | | Net Increase in Cash and Cash Equivalents | 785,686,823.88 | 89,753,359.23 | 775.38% | Receipt of funds from stock issuance | 2025 Semi-Annual Operating Revenue, Cost, and Gross Profit Margin by Product/Service | Product or Service | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Profit Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Smart Card Business | 283,393,460.34 | 165,834,218.93 | 41.48% | 0.02% | 10.03% | -5.33% | | IoT eSIM Chip Packaging and Testing | 29,239,938.53 | 23,784,696.57 | 18.66% | 25.91% | 31.21% | -3.29% | | Etched Lead Frame | 134,439,313.93 | 119,868,556.15 | 10.84% | 46.48% | 55.88% | -5.38% | - The decrease in gross profit margin for smart card business and etched lead frame products was mainly due to the continuous rise in gold prices, leading to increased procurement costs for key raw materials like potassium gold cyanide and silver cyanide, and higher production costs[95][96] 2025 Semi-Annual Main Business Cost Composition | Cost Component | Amount (yuan) | Proportion of Operating Cost | | :--- | :--- | :--- | | Direct Materials/Direct Costs | 248,946,633.78 | 75.22% | | Manufacturing Expenses | 82,001,898.58 | 24.78% | | Total | 330,948,532.36 | 100.00% | - As of June 30, 2025, the company holds 126 authorized patents, including 38 invention patents, 25 utility model patents, 1 design patent, and 62 computer software copyrights[101] - R&D investment during the reporting period was 27.01 million yuan, primarily directed towards new products and processes such as high-reliability flexible lead frames, dual-ring, and large-particle etched lead frames[102] - As of the end of the reporting period, the company had 144 R&D personnel, accounting for 17.39% of the total workforce, with 16.67% holding master's degrees or above and 59.72% holding bachelor's degrees, and no core technical personnel departures[103] Analysis of Non-Main Business The company's non-main business primarily includes investment income (ineffective portion of hedging), asset impairment (inventory write-downs), and minor non-operating income and expenses. Investment income and non-operating income/expenses are not sustainable, while asset impairment is sustainable. 2025 Semi-Annual Non-Main Business Gains and Losses | Project | Amount (yuan) | Proportion of Total Profit | Sustainability | | :--- | :--- | :--- | :--- | | Investment Income | 743,095.22 | 0.75% | No | | Asset Impairment | -2,464,596.61 | -2.50% | Yes | | Non-Operating Income | 3,109.67 | 0.00% | No | | Non-Operating Expenses | 15,231.80 | 0.02% | No | Analysis of Assets and Liabilities The company's total assets and net assets attributable to shareholders significantly increased due to the receipt of raised funds from the initial public offering. Cash and cash equivalents saw a notable increase in proportion, while accounts receivable, inventory, and fixed assets proportions were diluted. On the liability side, new short-term borrowings were added for daily operations, and lease liabilities decreased due to lease payments and reclassification. 2025 Semi-Annual Major Changes in Asset Composition | Project | Amount at End of Current Reporting Period (yuan) | Proportion of Total Assets | Amount at End of Prior Year (yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Major Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 1,184,917,166.45 | 53.97% | 399,230,342.57 | 29.36% | 24.61% | Completed initial public offering, received net proceeds | | Accounts Receivable | 323,595,567.18 | 14.74% | 324,227,024.37 | 23.84% | -9.10% | Increased proportion of cash and cash equivalents diluted accounts receivable proportion | | Inventory | 143,251,778.18 | 6.52% | 134,960,000.37 | 9.92% | -3.40% | Increased proportion of cash and cash equivalents diluted inventory proportion | | Fixed Assets | 401,237,397.58 | 18.28% | 392,590,802.27 | 28.87% | -10.59% | Increased total asset base diluted fixed assets proportion | | Short-Term Borrowings | 30,019,166.67 | 1.37% | - | - | 1.37% | New short-term borrowings to support daily operating activities | | Lease Liabilities | 638,114.82 | 0.03% | 1,264,113.90 | 0.09% | -0.06% | Payment of current lease and reclassification to non-current liabilities due within one year | - The company had no major overseas assets at the end of the reporting period[109] 2025 Semi-Annual Assets and Liabilities Measured at Fair Value | Project | Beginning Balance (yuan) | Amount Purchased in Current Period (yuan) | Amount Sold in Current Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | | Receivables Financing | 17,937,113.24 | 205,425,429.31 | 177,040,178.94 | 46,322,363.61 | - As of the end of the reporting period, the company's asset rights were restricted only by an ETC usage deposit of 1,500 yuan[110] Analysis of Investment Status The company had no significant equity investments, non-equity investments, or financial assets measured at fair value during the reporting period. The net proceeds of 681.97 million yuan from the initial public offering have been received but not yet invested in the committed projects as of the end of the reporting period. The company engaged in derivative investments for hedging purposes, primarily futures contracts, effectively controlling raw material price fluctuation risks. - The company had no significant equity investments, non-equity investments, or financial assets measured at fair value during the reporting period[111] 2025 Semi-Annual Overall Use of Raised Funds | Fundraising Method | Net Proceeds (million yuan) | Total Raised Funds Used in Current Period (million yuan) | Total Raised Funds Used Cumulatively (million yuan) | Proportion of Raised Funds Used at End of Reporting Period | | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | 681.97 | 0.00 | 0.00 | 0.00% | - The net proceeds of 681.97 million yuan were transferred to the company's designated account on June 17, 2025, with a balance of 712 million yuan at the end of the reporting period, not yet invested in committed projects[112] 2025 Semi-Annual Committed Projects for Raised Funds | Committed Investment Project | Total Committed Investment (million yuan) | Amount Invested in Current Period (million yuan) | Cumulative Amount Invested as of End of Period (million yuan) | Has Project Feasibility Changed Significantly | | :--- | :--- | :--- | :--- | :--- | | High-Density QFN/DFN Packaging Material Industrialization Project | 455.97 | 0 | 0 | No | | R&D Center Expansion and Upgrade Project | 62.66 | 0 | 0 | No | | Undetermined Investment Direction (Over-raised Funds) | 163.33 | - | - | No | - The company had no entrusted wealth management or speculative derivative investments during the reporting period[117][121] 2025 Semi-Annual Derivative Investments for Hedging Purposes | Derivative Investment Type | Initial Investment Amount (million yuan) | Fair Value Change Gains/Losses in Current Period (million yuan) | Amount Purchased in Current Period (million yuan) | Amount Sold in Current Period (million yuan) | | :--- | :--- | :--- | :--- | :--- | | Futures | 10.00 | 0.33 | 16.58 | 7.37 | - Hedging activities adopted cash flow hedge accounting, with the effective portion of hedging instrument gains or losses recognized directly in other comprehensive income, and the ineffective portion recognized in investment income, achieving the objective of locking in price fluctuation risks[119] Disposal of Major Assets and Equity The company did not engage in any significant asset or equity disposals during the reporting period. - The company did not dispose of any major assets during the reporting period[123] - The company did not dispose of any major equity during the reporting period[124] Analysis of Major Holding and Participating Companies The company had no important holding or participating company information that should be disclosed during the reporting period. - The company had no important holding or participating company information that should be disclosed during the reporting period[124] Information on Structured Entities Controlled by the Company The company had no controlled structured entities during the reporting period. - The company had no controlled structured entities during the reporting period[125] Risks Faced by the Company and Countermeasures The company faces cost risks from the continuous rise in raw material prices, primarily precious metals, which it addresses through technological R&D to reduce precious metal usage and by conducting hedging activities. Additionally, the company mitigates risks of technological process upgrades and product iteration through proactive R&D布局. - The company's main raw material prices (e.g., potassium gold cyanide, gold wire, copper tape, potassium silver cyanide) are significantly affected by precious metal price fluctuations[125] - The company reduces the impact of rising precious metal prices by conducting technological R&D to decrease gold-based main material usage and by engaging in hedging activities[125] - The company proactively plans R&D, including flip-chip bonding technology, low-cost main materials, and gold raw material substitutes, to address market competition arising from technological process upgrades and product iteration[126] Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period The company did not host any research, communication, interview, or other activities during the reporting period. - The company did not host any research, communication, interview, or other activities during the reporting period[127] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not disclosed a market value management system or a valuation enhancement plan. - The company has not formulated a market value management system[128] - The company has not disclosed a valuation enhancement plan[130] "Quality and Return Dual Improvement" Action Plan Implementation Status The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan. - The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan[131] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, and senior management during the reporting period. - There were no changes in the company's directors, supervisors, and senior management during the reporting period[133] Profit Distribution and Capital Reserve to Share Capital in the Current Reporting Period The company's proposed 2025 semi-annual profit distribution plan is to distribute a cash dividend of RMB 5 yuan (tax included) for every 10 shares to all shareholders, based on a total share capital of 239,555,467 shares, totaling 119.78 million yuan, with no bonus shares and no conversion of capital reserves to share capital. 2025 Semi-Annual Profit Distribution Plan | Indicator | Value | | :--- | :--- | | Number of Bonus Shares per 10 Shares (shares) | 0 | | Dividend per 10 Shares (yuan) (tax included) | 5 | | Share Capital Base for Distribution Plan (shares) | 239,555,467 | | Cash Dividend Amount (yuan) (tax included) | 119,777,733.50 | | Proportion of Total Cash Dividend to Total Profit Distribution | 100.00% | | Distributable Profit (yuan) | 605,753,023.31 | - The company is in a growth phase with significant capital expenditure plans, and the cash dividend ratio reached 100%[134] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period. - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[135] Environmental Information Disclosure HENGHUI Technology Corporation Limited is included in the list of enterprises required to disclose environmental information by law, and it has provided an index for querying its environmental information disclosure report. - HENGHUI Technology Corporation Limited is included in the list of enterprises required to disclose environmental information by law[136] - The company has provided an index for querying its environmental information disclosure report[136] Social Responsibility The company is committed to improving corporate governance mechanisms, protecting shareholder rights, and ensuring fair information disclosure. In terms of employee rights protection, it adheres to a "people-oriented" philosophy, providing a fair working environment, comprehensive welfare and compensation, and career development channels, while enhancing employee capabilities through team building and training activities. Concurrently, the company focuses on supply chain system construction, protecting the rights of suppliers, clients, and consumers through technological innovation and quality management systems. - The company protects shareholder rights by improving governance mechanisms, strengthening internal control systems, standardizing general meeting procedures, and fulfilling information disclosure obligations[137] - The company adheres to the core philosophy of "people-oriented, helping employees realize their self-worth," standardizing employee relations in accordance with the law, and providing a fair working environment, welfare compensation, and career development channels[138] - In the first half of 2025, the company organized team-building exchanges, sports events, and excellent employee tours as part of its corporate culture activities, and conducted 17 targeted training sessions to enhance employee capabilities[138] - The company protects the rights of suppliers, clients, and consumers by improving supplier management processes, fairly and impartially selecting suppliers, and leveraging technological innovation and international standardized quality management systems[139] Significant Matters Commitments Fulfilled and Overdue Unfulfilled Commitments by Actual Controllers, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period During the reporting period, there were no overdue unfulfilled commitments by the company's actual controllers, shareholders, related parties, acquirers, or the company itself. - The company had no overdue unfulfilled commitments during the reporting period[141] Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties During the reporting period, there were no instances of non-operating funds being occupied by controlling shareholders and other related parties of the listed company. - The company had no instances of non-operating funds being occupied by controlling shareholders and other related parties during the reporting period[141] Illegal External Guarantees The company had no illegal external guarantees during the reporting period. - The company had no illegal external guarantees during the reporting period[142] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited. - The company's semi-annual report was not audited[143] Explanation by the Board of Directors, Supervisory Board, and Audit Committee on the "Non-Standard Audit Report" for the Current Reporting Period There was no non-standard audit report for the company during the reporting period. - There was no non-standard audit report for the company during the reporting period[144] Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year There was no non-standard audit report for the company during the reporting period. - There was no non-standard audit report for the company during the reporting period[144] Bankruptcy and Reorganization Matters The company did not experience any bankruptcy or reorganization matters during the reporting period. - The company did not experience any bankruptcy or reorganization matters during the reporting period[144] Litigation Matters The company had no significant litigation or arbitration matters, nor any other litigation matters, during the reporting period. - The company had no significant litigation or arbitration matters during the reporting period[146] - The company had no other litigation matters during the reporting period[147] Penalties and Rectification Status The company had no penalties or rectification situations during the reporting period. - The company had no penalties or rectification situations during the reporting period[147] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the reporting period, there were no issues regarding the integrity status of the company, its controlling shareholder, or its actual controller. - During the reporting period, there were no issues regarding the integrity status of the company, its controlling shareholder, or its actual controller[148] Significant Related Party Transactions During the reporting period, the company did not engage in related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, related party creditor-debtor relationships, or financial business dealings with affiliated financial companies. - The company did not engage in related party transactions related to daily operations during the reporting period[148] - The company did not engage in related party transactions involving asset or equity acquisitions or disposals during the reporting period[149] - The company had no related party creditor-debtor relationships during the reporting period[151] - The company had no deposits, loans, credit lines, or other financial business with affiliated financial companies[152][154] Significant Contracts and Their Performance The company had no entrustment, contracting, or leasing matters, no significant guarantees or major contracts in daily operations, and no other significant contracts during the reporting period. - The company had no entrustment, contracting, or leasing situations during the reporting period[156][157][158] - The company had no significant guarantee situations during the reporting period[159] - The company had no other significant contracts during the reporting period[162] Explanation of Other Significant Matters The company had no other significant matters requiring explanation during the reporting period. - The company had no other significant matters requiring explanation during the reporting period[163] 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[164] Share Changes and Shareholder Information Share Changes Due to its initial public offering, the company's total share capital increased from 179,666,600 shares to 239,555,467 shares, with restricted shares increasing by 14,376,094 shares and unrestricted shares increasing by 45,512,773 shares. This change impacted financial indicators such as earnings per share and net assets per share. 2025 Semi-Annual Share Changes | Project | Number Before Change (shares) | Proportion Before Change | Increase/Decrease in Current Change (shares) | Number After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 179,666,600 | 100.00% | 14,376,094 | 194,042,694 | 81.00% | | II. Unrestricted Shares | 0 | 0.00% | 45,512,773 | 45,512,773 | 19.00% | | III. Total Shares | 179,666,600 | 100.00% | 59,888,867 | 239,555,467 | 100.00% | - The share change was due to the company's initial public offering of 59,888,867 shares of RMB ordinary shares (A-shares)[168] - The new shares were listed and traded on the Shenzhen Stock Exchange on June 20, 2025, and initial registration was completed on June 18, 2025[169][170] - The share change impacted basic and diluted earnings per share, and net assets per ordinary share attributable to the company's shareholders for the most recent year and period[171] 2025 Semi-Annual Restricted Share Changes | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Increased in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | Proposed Date of Lifting Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Yu Renrong | 56,432,000 | 0 | 56,432,000 | Restricted before initial public offering | June 20, 2028 | | Ren Zhijun | 29,116,000 | 0 | 29,116,000 | Restricted before initial public offering | June 20, 2028 | | Strategic Placement Restricted Shareholders | 0 | 11,977,773 | 11,977,773 | Restricted shares from initial public offering strategic placement | June 20, 2026 | | Offline Placement Shareholders | 0 | 2,398,321 | 2,398,321 | Restricted shares from initial public offering offline placement | December 20, 2025 | Securities Issuance and Listing On June 11, 2025, the company issued 59,888,867 RMB ordinary shares (A-shares) at an issue price of 12.80 yuan/share, which were subsequently listed and traded on the Shenzhen Stock Exchange on June 20, 2025. 2025 Semi-Annual Securities Issuance and Listing | Stock Name | Issue Date | Issue Price (yuan/share) | Issue Quantity (shares) | Listing Date | Quantity Approved for Listing and Trading (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | RMB Ordinary Shares | June 11, 2025 | 12.80 | 59,888,867 | June 20, 2025 | 59,888,867 | - The company was approved to issue 59,888,867 shares of RMB ordinary shares (A-shares) to the public[175] Shareholder Numbers and Shareholding Structure As of the end of the reporting period, the company had a total of 37,328 ordinary shareholders. Yu Renrong and Ren Zhijun are the company's controlling shareholders and co-actual controllers, holding 23.56% and 12.15% of the shares, respectively. Among the top ten shareholders, the shares of Gongqingcheng Zhilintang Investment Partnership (Limited Partnership) are frozen. - The total number of ordinary shareholders at the end of the reporting period was 37,328 households[177] 2025 Semi-Annual Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Number of Pledged, Marked, or Frozen Shares (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yu Renrong | Domestic Natural Person | 23.56% | 56,432,000 | 56,432,000 | 0 | Not Applicable | 0 | | Ren Zhijun | Domestic Natural Person | 12.15% | 29,116,000 | 29,116,000 | 0 | Not Applicable | 0 | | Shanghai Wuyuefeng Integrated Circuit Equity Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 11.78% | 28,216,000 | 28,216,000 | 0 | Not Applicable | 0 | | Gongqingcheng Zhilintang Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 2.84% | 6,795,900 | 6,795,900 | 0 | Frozen | 6,795,900 | - Yu Renrong and Ren Zhijun are parties acting in concert[178] - The top 10 unrestricted shareholders are primarily overseas institutional investors, such as BARCLAYS BANK PLC and Goldman Sachs & Co LLC[178] Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period. - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[180] Changes in Controlling Shareholder or Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period. - The company's controlling shareholder did not change during the reporting period[181] - The company's actual controller did not change during the reporting period[181] Preferred Shares Information The company had no preferred shares during the reporting period. - The company had no preferred shares during the reporting period[182] 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[184] Financial Report Audit Report The company's semi-annual financial report was not audited. - The company's semi-annual financial report was not audited[186] Financial Statements This section presents HENGHUI Technology Corporation Limited'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 illustrating the company's financial position at the end of the reporting period and its operating results and cash flows during the reporting period. - The consolidated balance sheet shows total assets of 2.20 billion yuan at period-end, with total current assets of 1.73 billion yuan and total non-current assets of 466.28 million yuan[188][189] - The consolidated income statement shows total operating revenue of 474.37 million yuan, net profit of 88.68 million yuan, and net profit attributable to parent company shareholders of 88.95 million yuan for the current period[193][194] - The consolidated cash flow statement shows net cash flow from operating activities of 85.67 million yuan, net cash flow from financing activities of 722.12 million yuan, and a net increase in cash and cash equivalents of 785.69 million yuan[199] - The consolidated statement of changes in owners' equity shows total owners' equity attributable to the parent company of 1.99 billion yuan and total owners' equity of 2.00 billion yuan[190][205] Company Basic Information HENGHUI Technology Corporation Limited was established in December 2017 and listed on the ChiNext board of the Shenzhen Stock Exchange on June 20, 2025, with stock code 301678. Its registered address is No. 187, Zhongrun Avenue, High-tech Zone, Zibo City, Shandong Province, and its legal representative is Ren Zhijun. Its main business includes the design, R&D, production, sales, and technical services of IC card packaging frames, chips and modules, integrated circuits, and related products. - HENGHUI Technology Corporation Limited was established in December 2017 and listed on the ChiNext board of the Shenzhen Stock Exchange on June 20, 2025, with stock code 301678[223] - The company's industry is computer, communication, and other electronic equipment manufacturing[224] - The company's business scope covers the design, R&D, production, sales, and technical development and services of IC card packaging frames, chips and modules, integrated circuits, and related products[225] Basis of Financial Statement Preparation These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission, on a going concern basis, and the company is confident in its ability to continue as a going concern for at least 12 months from the end of the reporting period. - Financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and the "Information Disclosure and Reporting Rules for Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports" by the China Securities Regulatory Commission[226] - Financial statements are prepared on a going concern basis, and the company is confident in its ability to continue as a going concern for at least 12 months from the end of the reporting period[227] Significant Accounting Policies and Accounting Estimates This section details the company's statement of compliance with Accounting Standards for Business Enterprises, accounting period, operating cycle, functional currency, business combinations, preparation of consolidated financial statements, financial instruments, inventories, fixed assets, intangible assets, revenue recognition, government grants, deferred income tax, leases, and hedge accounting, ensuring the standardization and transparency of financial reporting. - The company complies with Accounting Standards for Business Enterprises, accurately and completely reflecting its financial position, operating results, and cash flows[229] - The company classifies financial assets as measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[250] - The company recognizes revenue when it satisfies a performance obligation in the contract, i.e., when the customer obtains control of the related goods or services, with its main business fulfilling performance obligations at a point in time[341][350] - The company applies cash flow hedge accounting, recognizing the effective portion of hedging instrument gains or losses directly in other comprehensive income[388] - The company had no significant changes in accounting policies and accounting estimates during the reporting period[390][394] Taxes The company's main taxes include VAT, urban maintenance and construction tax, and corporate income tax. As a high-tech enterprise, the company enjoys a 15% preferential corporate income tax rate. Additionally, the company benefits from VAT exemption, credit, and refund for export goods and services, a 15% VAT super deduction for integrated circuit enterprises, and tax incentives for employing self-employed veterans. Company Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales of goods and taxable services income | 6.00%-13.00% | | Urban Maintenance and Construction Tax | Actual VAT and consumption tax paid | 7.00% | | Corporate Income Tax | Taxable income | 15.00%-25% | - HENGHUI Technology Corporation Limited, as a high-tech enterprise, enjoys a preferential corporate income tax rate of 15%[392] - The company enjoys VAT exemption, credit, and refund policies for export goods and services[393] - As an integrated circuit enterprise, the company enjoys a 15% VAT super deduction policy[395] - The company can enjoy VAT, urban maintenance and construction tax, education surcharge, local education surcharge, and corporate income tax incentives for employing self-employed veterans[395] Notes to Consolidated Financial Statement Items This section details the ending balances, beginning balances, and current period changes for each item in the company's consolidated financial statements, covering cash and cash equivalents, accounts receivable, inventories, fixed assets, intangible assets, short-term borrowings, accounts payable, employee benefits payable, operating revenue, operating costs, R&D expenses, financial expenses, other income, credit impairment losses, asset impairment losses, asset disposal gains, non-operating income, non-operating expenses, income tax expenses, cash flow statement items, and provides explanations for significant changes. 2025 Semi-Annual Consolidated Cash and Cash Equivalents | Project | Ending Balance (yuan) | Beginning Balance (yuan) | | :--- | :--- | :--- | | Bank Deposits | 1,178,528,914.80 | 399,230,342.57 | | Other Cash and Cash Equivalents | 6,388,251.65 | 0 | | Total | 1,184,917,166.45 | 399,230,342.57 | - Derivative financial assets had an ending balance of 1.25 million yuan, primarily for cash flow hedging[401] - Accounts receivable had an ending book value of 323.60 million yuan, with 6.17 million yuan provided for bad debts on an individual basis and 19.00 million yuan provided for bad debts on a collective basis[416] - Receivables financing had an ending balance of 46.32 million yuan, all of which were bank acceptance bills, with no bad debt provisions made[426] - Inventory had an ending book value of 143.25 million yuan, with inventory impairment provisions and contract performance cost impairment provisions totaling 15.83 million yuan[452][456] - Fixed assets had an ending book value of 401.24 million yuan, including buildings of 166.63 million yuan and machinery and equipment of 232.18 million yuan[488] - Intangible assets had an ending book value of 47.12 million yuan, primarily land use rights of 45.40 million yuan[502] - Share capital increased by 59.89 million yuan due to the initial public offering, with an ending balance of 239.56 million yuan[561] - Capital reserve increased by 706.70 million yuan in the current period, mainly due to share premium[564] - Operating revenue for the current period was 474.37 million yuan, and operating cost was 330.95 million yuan[570] - R&D expenses for the current period were 27.01 million yuan, a year-on-year increase of 16.39%[578] - Financial expenses for the current period were -3.16 million yuan, mainly affected by interest income and exchange gains/losses[579] - Net cash flow from operating activities was 85.67 million yuan, net cash flow from investing activities was -19.30 million yuan, and net cash flow from financing activities was 722.12 million yuan[199] R&D Expenses The company's total R&D expenditure for the current period was 27,013,695.72 yuan, all expensed, primarily comprising employee compensation, material costs, depreciation, and utilities. There were no R&D projects meeting capitalization criteria during the reporting period. 2025 Semi-Annual R&D Expenditure Composition | Project | Amount Incurred in Current Period (yuan) | Amount Incurred in Prior Period (yuan) | | :--- | :--- | :--- | | Employee Compensation | 11,508,789.83 | 10,432,938.28 | | Depreciation Expenses | 2,596,546.98 | 2,527,430.72 | | Material Costs | 10,351,132.70 | 8,257,501.16 | | Utilities | 1,796,956.69 | 1,321,607.23 | | Total | 27,013,695.72 | 23,209,200.98 | | Of which: Expensed R&D Expenditure | 27,013,695.72 | 23,209,200.98 | - There were no R&D projects meeting capitalization criteria during the reporting period[617] Interests in Other Entities The company owns one controlled subsidiary, Shandong Shanlu Electronic Technology Co., Ltd., with a 67.82% equity stake. During the reporting period, the subsidiary's minority interest loss was -0.28 million yuan, and the ending balance of minority interest was 12.01 million yuan. The company has no significant joint ventures or associates, nor any significant joint operations or structured entities not included in the consolidated financial statements. 2025 Semi-Annual Enterprise Group Composition | Subsidiary Name | Registered Capital (yuan) | Business Nature | Shareholding Ratio (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | | Shandong Shanlu Electronic Technology Co., Ltd. | 20,000,000.00 | Chip Packaging and Testing | 67.82% | Business Combination Not Under Common Control | 2025 Semi-Annual Financial Information of Important Non-Wholly Owned Subsidiaries | Subsidiary Name | Minority Shareholding Ratio | Net Profit/Loss Attributable to Minority Shareholders in Current Period (yuan) | Minority Interest Balance at End of Period (yuan) | | :--- | :--- | :--- | :--- | | Shandong Shanlu Electronic Technology Co., Ltd. | 32.19% | -277,631.08 | 12,008,802.87 | - The company has no significant joint ventures or associates, nor any significant joint operations or structured entities not included in the consolidated financial statements[624][625][628][629][630][631] Government Grants The company had no government grants recognized at receivable amounts at the end of the reporting period. Government grant-related liability items primarily consist of deferred income, with an ending balance of 18.48 million yuan. Government grants recognized in current profit or loss for the current period amounted to 1.82 million yuan. - The company had no government grants recognized at receivable amounts at the end of the reporting period[631] 2025 Semi-Annual Government Grant-Related Liability Items | Acco