长龄液压(605389) - 2025 Q2 - 季度财报

Important Notice This section includes statements on report accuracy, the 2025 semi-annual profit distribution plan, and investor warnings regarding forward-looking statements and major risks - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false records, misleading statements, or major omissions[4] - The company plans to distribute a cash dividend of RMB 4.20 (tax inclusive) per 10 shares to all shareholders based on the total share capital on the equity distribution record date, with no bonus shares or capital reserve capitalization[7] - Forward-looking statements regarding future plans and development strategies in this report do not constitute a substantive commitment to investors, who are advised to be aware of investment risks[8] - There are no instances of non-operating funds being occupied by controlling shareholders or other related parties, nor any external guarantees provided in violation of prescribed decision-making procedures[9] Section I Definitions This section defines key terms, including the company, subsidiaries, related parties, reporting period, and currency units, to ensure accurate report comprehension - “Company” and “Changling Hydraulic” refer to Jiangsu Changling Hydraulic Co., Ltd[14] - The reporting period refers to January 1, 2025, to June 30, 2025[14] - Lists the full names and relationships of major subsidiaries and sub-subsidiaries, including Changling Precision, Jiangyin Shangchi, Changling Taixing, Changling Metal, Singapore Company, and Thailand Company[14] Section II Company Profile and Key Financial Indicators This section presents company profile, stock information, key accounting data, and financial indicators for H1 2025, explaining changes and disclosing non-recurring gains and losses - The company's Chinese name is Jiangsu Changling Hydraulic Co., Ltd., stock abbreviation Changling Hydraulic, stock code 605389, listed on the Shanghai Stock Exchange[17][21] - Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 465,199,850.45 | 470,955,062.83 | -1.22 | | Total Profit | 78,176,842.80 | 84,235,972.13 | -7.19 | | Net Profit Attributable to Shareholders of Listed Company | 65,741,689.48 | 65,762,814.31 | -0.03 | | Net Cash Flow from Operating Activities | 49,189,915.12 | 32,481,626.63 | 51.44 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 2,120,949,063.34 | 2,097,288,801.40 | 1.13 | | Total Assets (Period-end) | 2,407,532,511.56 | 2,402,235,231.20 | 0.22 | - Key Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.46 | 0.46 | 0.00 | | Basic EPS Excluding Non-recurring Gains/Losses (RMB/share) | 0.42 | 0.46 | -8.70 | | Weighted Average Return on Net Assets (%) | 3.10 | 3.08 | increased by 0.02 percentage points | | Weighted Average ROE Excluding Non-recurring Gains/Losses (%) | 2.86 | 3.02 | decreased by 0.16 percentage points | - In H1 2025, the company's net cash flow from operating activities increased by 51.44% year-on-year, primarily due to increased collection income from maturing supply chain bills[26] - Total non-recurring gains and losses amounted to RMB 4,992,598.25, mainly comprising government grants, gains/losses from entrusted investments, and reversal of impairment provisions for receivables[27][28] Section III Management Discussion and Analysis This section details H1 2025 operations, covering industry, business development, marketing, R&D, talent, governance, asset-liability, investments, and risk analysis I. Industry and Main Business Overview During the Reporting Period The company operates in hydraulic, casting, and photovoltaic industries, with hydraulic stabilizing, casting developing green and smart, and photovoltaic seeing record growth, driving demand for slewing drives in engineering machinery and solar tracking - The company's main businesses involve the hydraulic, casting, and photovoltaic industries[29] - From January to June 2025, China sold 120,520 excavators, a 16.8% year-on-year increase, with domestic sales up 22.9% and exports up 10.2%[30] - The state issued policies like the 'Guiding Opinions on Promoting High-Quality Development of the Casting and Forging Industry,' guiding the casting sector towards green, intelligent, and high-quality development[31] - From January to June 2025, domestic photovoltaic new installed capacity reached 212.21 GW, a 107% year-on-year increase, with cumulative installed capacity exceeding 1,000 GW, making slewing drives for solar tracking brackets a rapidly growing segment[33] - The company's products include central rotary joints, tensioning devices, engineering machinery slewing drives, precision castings, and photovoltaic slewing drives, with downstream applications in engineering machinery, solar tracking, and AGV transport vehicles[33] II. Discussion and Analysis of Operations In H1 2025, the company implemented various initiatives in market expansion, R&D, talent development, and high-quality growth, while actively expanding overseas markets, increasing R&D investment, optimizing operations, and strengthening shareholder returns and investor communication - Operating Performance for H1 2025 | Indicator | Amount (RMB million) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 465.20 | -1.22 | | Net Profit Attributable to Parent Company Owners | 65.74 | -0.03 | - The company continues to deepen its global presence, actively expanding overseas markets, developing slewing drives for markets beyond aerial work platforms, and growing its overseas OEM market[41] - The construction of the Thailand slewing drive and hydraulic product manufacturing base project is progressing, laying the foundation for localized overseas operations[41] - Increased R&D investment includes developing welded rotary joints for aerial work platforms and truck-mounted cranes, and initiating R&D for solar thermal slewing drives to enter the concentrated solar power sector[42] - The company introduced the U9C ERP system to optimize enterprise operating processes through digitalization, enhancing management efficiency and reducing operating costs[42] - The total cash dividend for 2024 (including interim distributions) accounted for 98.86% of the company's 2024 consolidated net profit attributable to shareholders of the listed company[43] - The company strengthened investor communication through performance briefings, shareholder meetings, offline surveys, and online interactions, achieving a 100% response rate[44] - During the reporting period, there were no instances of the company's actual controller misappropriating company assets or harming the interests of the company and its shareholders[46] III. Analysis of Core Competencies During the Reporting Period The company's core competencies include stringent quality control and high brand reputation, premium customer resources and significant market advantages, deep technological accumulation and leading product R&D capabilities, and superior geographical advantages with accelerated global expansion - The company received the “2024 Global Top 100 Component Suppliers: Top 10 Transmission Systems” award for its leading manufacturing technology and excellent product quality, with central rotary joint products meeting the 3,000-hour standard for operational assessment[48] - The company has established long-term, stable cooperative relationships with renowned domestic and international enterprises such as Sany, XCMG, LiuGong, Trina Solar, and Arctech, possessing high-quality customer resources[49] - As a national "specialized, refined, unique, and new" small giant enterprise, the company led the drafting of the national standard "GB/T25629-2021 Hydraulic Excavator Central Rotary Joint" and holds over a hundred patents, demonstrating leading technological R&D[51] - Located in Jiangyin City within the Yangtze River Delta economic zone, the company benefits from convenient transportation and a complete industrial chain, enabling timely response to customer needs and providing excellent geographical advantages[52] - With the establishment and operation of the Thailand project, the company will further expand its overseas business, achieving global sales of photovoltaic slewing drives and hydraulic products[53] IV. Main Operating Conditions During the Reporting Period This section analyzes the company's H1 2025 financial statement item changes, asset-liability status, investment situation, and the operating performance of major controlled and investee companies, revealing the specific reasons behind financial indicator variations and business performance (一) Main Business Analysis Operating revenue and cost changes were minor this period; selling expenses increased by 12.01% due to higher sales personnel compensation and market expansion costs; financial expenses decreased due to structural deposit interest being reclassified to other income and interest rate cuts; R&D expenses grew by 5.56% from increased staff compensation; and net cash flow from operating activities rose by 51.44% due to increased collection from maturing supply chain bills, while investment and financing cash flows also saw significant changes - Analysis Table of Financial Statement Item Changes | Item | Current Period (RMB) | Prior Year Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 465,199,850.45 | 470,955,062.83 | -1.22 | | Operating Cost | 342,271,848.91 | 343,138,142.32 | -0.25 | | Selling Expenses | 8,660,170.06 | 7,731,400.46 | 12.01 | | Administrative Expenses | 19,822,353.08 | 19,780,183.28 | 0.21 | | Financial Expenses | -2,676,808.90 | -6,485,985.11 | Not Applicable | | R&D Expenses | 19,886,315.90 | 18,839,255.87 | 5.56 | | Net Cash Flow from Operating Activities | 49,189,915.12 | 32,481,626.63 | 51.44 | | Net Cash Flow from Investing Activities | -7,658,110.56 | -91,782,913.63 | Not Applicable | | Net Cash Flow from Financing Activities | -22,403,074.61 | -69,714,815.50 | Not Applicable | - The change in selling expenses was primarily due to increased sales personnel compensation and market expansion and promotion expenses in the current period[55] - The change in financial expenses was mainly due to structural deposit interest being reclassified to other income and reduced income from interest rate cuts in the current period[55] - The change in net cash flow from operating activities was primarily due to increased collection income from maturing supply chain bills in the current period[55] (三) Analysis of Assets and Liabilities The company's asset and liability structure underwent several changes at the end of the reporting period, with significant increases in notes receivable financing, prepayments, contract assets, other current assets, and construction in progress, primarily driven by the Thailand fundraising project; short-term borrowings increased substantially, while notes payable were fully settled, and overseas assets accounted for 2.30% of total assets - Changes in Assets and Liabilities | Item Name | Period-end Balance (RMB) | % of Total Assets (Period-end) | Prior Year-end Balance (RMB) | % of Total Assets (Prior Year-end) | % Change from Prior Year-end | | :--- | :--- | :--- | :--- | :--- | :--- | | Notes Receivable Financing | 57,813,009.98 | 2.40 | 33,347,615.42 | 1.39 | 73.36 | | Prepayments | 6,488,605.37 | 0.27 | 3,871,557.76 | 0.16 | 67.60 | | Contract Assets | 11,594,545.68 | 0.48 | 0.00 | 0.00 | 100.00 | | Other Current Assets | 2,191,146.30 | 0.09 | 983,291.39 | 0.04 | 122.84 | | Construction in Progress | 32,154,787.69 | 1.34 | 12,200,567.59 | 0.51 | 163.55 | | Short-term Borrowings | 20,854,447.12 | 0.87 | 0.00 | 0.00 | 100.00 | | Notes Payable | 0.00 | 0.00 | 15,340,000.00 | 0.64 | -100.00 | | Contract Liabilities | 3,138,827.02 | 0.13 | 998,528.55 | 0.04 | 214.35 | - Construction in progress increased by 163.55%, mainly due to increased construction for the Thailand fundraising project in the current period[57] - Short-term borrowings increased by 100%, primarily due to increased bank borrowings by subsidiaries in the current period[57] - The period-end balance of overseas assets was RMB 55,342,476.84, accounting for 2.30% of total assets[58] (四) Analysis of Investment Status The company's period-end financial assets measured at fair value totaled RMB 453,813,009.98, with trading financial assets amounting to RMB 390,000,000.00; significant amounts of derivative instruments were purchased and sold/redeemed during the period, reflecting active financial asset management - Changes in Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (RMB) | Amount Purchased During Period (RMB) | Amount Sold/Redeemed During Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | | Derivative Instruments | 420,000,000.00 | 700,000,000.00 | 730,000,000.00 | 390,000,000.00 | | Other | 6,000,000.00 | 0.00 | 0.00 | 6,000,000.00 | | Other | 33,347,615.42 | 0.00 | 0.00 | 57,813,009.98 | | Total | 459,347,615.42 | 700,000,000.00 | 730,000,000.00 | 453,813,009.98 | (六) Analysis of Major Controlled and Investee Companies During this period, major controlled subsidiaries Jiangyin Shangchi and Changling Precision contributed to both operating revenue and net profit, with Jiangyin Shangchi primarily engaged in slewing drive production and sales, and Changling Precision focusing on precision casting for engineering machinery, home appliances, and automotive parts - Operating Performance of Major Subsidiaries | Company Name | Main Business | Operating Revenue (RMB million) | Operating Profit (RMB million) | Net Profit (RMB million) | | :--- | :--- | :--- | :--- | :--- | | Jiangyin Shangchi | Production and sales of slewing drives | 53.68 | 8.17 | 7.45 | | Changling Precision | Production and processing of castings for engineering machinery, home appliances, and automotive parts | 114.74 | 19.47 | 15.24 | V. Other Disclosures The company faces multiple risks including macroeconomic cyclical fluctuations, raw material price volatility, market competition, technology R&D and talent loss, uncertainties in the tracking bracket market and overseas trade policies, and exchange rate fluctuations, all of which could adversely affect its operating performance and sustainable development - The company faces macroeconomic cyclical fluctuation risks, as the development of downstream industries is significantly affected by changes in macroeconomic conditions and industrial structure adjustments[64] - Raw material price fluctuation risks, where steel and steel processed parts price volatility impacts the company's costs[64] - Market competition risks, with intensified competition from domestic and international enterprises potentially squeezing the company's market share and profit margins[64] - Technology R&D and talent loss risks, as the hydraulic industry demands highly skilled composite talents, and technology R&D involves significant investment and uncertainty[65] - Uncertainties in the tracking bracket market and overseas trade policy risks, due to low domestic penetration and overseas markets being affected by trade frictions and anti-dumping measures[65] - Exchange rate fluctuation risks, as overseas business is settled in USD, and RMB exchange rate fluctuations may affect exchange gains and losses[66] Section IV Corporate Governance, Environment, and Society This section reports on the company's corporate governance, environmental, and social responsibilities, noting no changes in directors, supervisors, or senior management during the reporting period, disclosing the semi-annual profit distribution plan, and confirming no equity incentive or employee stock ownership plans, nor inclusion in the list of enterprises required to disclose environmental information - During the reporting period, there were no changes in the company's directors, supervisors, or senior management, thus "not applicable"[69] - The proposed semi-annual profit distribution plan is a cash dividend of RMB 4.20 (tax inclusive) per 10 shares, with no bonus shares or capital reserve capitalization[69] - The company has not implemented any equity incentive plans, employee stock ownership plans, or other employee incentive measures[70] - The company has not been included in the list of enterprises required to disclose environmental information by law[70] Section V Significant Matters This section details the company's significant matters during the reporting period, including the fulfillment of commitments, related party transactions, compliance issues, and the progress of raised funds utilization; all commitments were strictly fulfilled, there were no major lawsuits or arbitrations, but a supervisor's spouse engaged in short-swing trading; fundraising projects are progressing smoothly, with some completed or over-invested I. Fulfillment of Commitments All commitments made by the company's actual controllers, shareholders, related parties, and the company itself, which were either made during or continued into the reporting period, have been strictly fulfilled, including share lock-ups, profit forecasts and compensation, resolution of horizontal competition, and reduction of related party transactions - All commitments made by the company's actual controllers, shareholders, related parties, acquirers, and the company itself, which were either made during or continued into the reporting period, have been strictly fulfilled[72] - Xu Jianhu and Shangtuo Partnership committed that the newly issued shares of the listed company acquired through this transaction shall not be transferred within 36 months from the date of issuance completion[73] - Xu Jianhu and Shangtuo Partnership made a profit forecast compensation commitment for the target company's net profit (net profit attributable to parent company shareholders after deducting non-recurring gains/losses) for 2023-2025[74] - The company's controlling shareholders and actual controllers, Xia Jifa and Xia Zemin, committed to ensuring the listed company's independence in personnel, finance, organization, assets, and business, and to avoiding horizontal competition and reducing related party transactions[76][77][78][79][80] VIII. Alleged Violations, Penalties, and Rectification by the Listed Company, its Directors, Supervisors, Senior Management, Controlling Shareholders, and Actual Controllers The spouse of company supervisor Li Caihua, Zhou Yulong, engaged in short-swing trading during the reporting period and received an oral warning from the Shanghai Stock Exchange; the company has committed to strengthening training and supervision of relevant personnel to prevent recurrence - Between February 5, 2024, and October 22, 2024, Zhou Yulong, spouse of company supervisor Li Caihua, engaged in short-swing trading by selling company shares within six months of purchase[93] - On April 24, 2025, the company received an "Oral Warning Notification" from the Shanghai Stock Exchange, issuing an oral warning to company supervisor Li Caihua[93] - The company will strengthen training and publicity on relevant laws and regulations for shareholders holding 5% or more of shares, all directors, supervisors, and senior management, and urge their relatives to standardize their trading of company shares[94] X. Major Related Party Transactions The company engaged in related party transactions related to daily operations during the reporting period, primarily Changling Hydraulic leasing part of a factory from Jiangyin Changling Wumao Co., Ltd.; additionally, as lessor, Changling Taixing and Changling Precision leased factory buildings and sites to several companies, increasing other business income - The company engaged in related party transactions related to daily operations, primarily Changling Hydraulic leasing part of a factory from Jiangyin Changling Wumao Co., Ltd[96] - Major Lease Situations | Lessor Name | Lessee Name | Leased Asset Description | Amount Involved in Lease (RMB million) | Lease Income (RMB million) | | :--- | :--- | :--- | :--- | :--- | | Changling Taixing | Jiangsu Hongbo New Material Co., Ltd. | Factory building, inspection factory building | 73.42 | 0.89 | | Changling Precision | Jiangyin Naiste Energy Equipment Co., Ltd. | Factory building | 21.20 | 1.07 | | Changling Precision | Jiangyin Tengda Special-shaped Pipe Manufacturing Co., Ltd. | Factory building | 5.31 | 0.30 | | Changling Precision | Minmetals Special Steel (Dongguan) Co., Ltd. | Factory building | 18.42 | 0.71 | XII. Progress Report on the Use of Raised Funds The company's initial public offering (IPO) raised funds have been utilized smoothly, with a cumulative investment of RMB 874.26 million by the end of the reporting period, reaching 97.68% of the planned investment; several fundraising projects have been completed or over-invested, while the Thailand slewing drive and hydraulic product manufacturing base project is ongoing; the company did not use idle raised funds for cash management during the reporting period - Overall Use of Raised Funds | Source of Raised Funds | Total Raised Funds (RMB million) | Net Raised Funds (RMB million) | Total Investment Committed in Prospectus (RMB million) | Cumulative Raised Funds Invested as of Period-end (RMB million) | Cumulative Investment Progress as of Period-end (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | 958.74 | 894.99 | 894.99 | 874.26 | 97.68 | - The hydraulic rotary joint expansion project, tensioning device relocation and expansion project, annual production of 40,000 tons of automotive and home appliance general castings and mechanical parts project, intelligent manufacturing renovation project, R&D and trial production center upgrade project, and supplementary working capital project have all been completed or over-invested[104][105] - The Thailand slewing drive and hydraulic product manufacturing base project has a planned investment of RMB 86.19 million, with a cumulative investment of RMB 48.25 million as of the end of the reporting period, reaching 55.99% of its investment progress[105] - The board of directors approved an effective cash management limit of RMB 70.00 million for raised funds, but the cash management balance at the end of the reporting period was RMB 0[109] Section VI Share Changes and Shareholder Information This section discloses the company's share capital changes and shareholder structure during the reporting period; the total number of shares and share capital structure remained unchanged, with 7,976 common shareholders; the top ten shareholders' holdings, including restricted shares, and their related party relationships are detailed - During the reporting period, the company's total number of shares and share capital structure remained unchanged[110] - As of the end of the reporting period, the total number of common shareholders was 7,976[112] - Top Ten Shareholders' Shareholdings | Shareholder Name | Period-end Shareholding (shares) | Percentage (%) | Restricted Shares Held (shares) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Xia Jifa | 58,800,000 | 40.81 | 0 | Domestic Natural Person | | Xia Zemin | 39,200,000 | 27.21 | 0 | Domestic Natural Person | | Xu Jianhu | 5,793,411 | 4.02 | 5,793,411 | Domestic Natural Person | | Jiangyin Lanhaohaolong Enterprise Management Partnership (Limited Partnership) | 4,200,000 | 2.91 | 0 | Other | | Jiangyin Shangtuo Enterprise Management Partnership (Limited Partnership) | 2,148,999 | 1.49 | 2,026,899 | Other | - Xia Jifa, Xia Zemin, and Jiangyin Lanhaohaolong Enterprise Management Partnership (Limited Partnership) are parties acting in concert; Xu Jianhu and Jiangyin Shangtuo Enterprise Management Partnership (Limited Partnership) are parties acting in concert[114] - Top Ten Restricted Shareholders' Shareholdings | No. | Name of Restricted Shareholder | Number of Restricted Shares Held (shares) | Date Available for Trading | Restriction Condition | | :--- | :--- | :--- | :--- | :--- | | 1 | Xu Jianhu | 5,793,411 | 2026/9/6 | 36 months | | 2 | Jiangyin Shangtuo Enterprise Management Partnership (Limited Partnership) | 2,026,899 | 2026/9/6 | 36 months | Section VII Bond-Related Information This section clarifies that the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments, nor convertible corporate bonds, during the reporting period - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[118] - The company has no convertible corporate bonds[118] Section VIII Financial Report This section provides the company's unaudited consolidated and parent company financial statements for H1 2025, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on financial statement items covering the company's basic information, significant accounting policies, taxes, specific asset, liability, and profit/loss items and their changes, and risk disclosures related to financial instruments II. Financial Statements This section presents the company's consolidated and parent company balance sheets as of June 30, 2025, consolidated and parent company income statements and cash flow statements for January-June 2025, and consolidated and parent company statements of changes in owners' equity, comprehensively reflecting the company's semi-annual financial position and operating results - Consolidated Balance Sheet (Summary) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 373,118,262.41 | 354,975,568.35 | | Trading Financial Assets | 390,000,000.00 | 420,000,000.00 | | Accounts Receivable | 397,145,085.16 | 421,464,376.24 | | Inventories | 179,432,722.81 | 177,224,062.03 | | Total Current Assets | 1,424,591,730.08 | 1,418,945,549.55 | | Fixed Assets | 443,629,938.27 | 463,103,738.45 | | Construction in Progress | 32,154,787.69 | 12,200,567.59 | | Total Assets | 2,407,532,511.56 | 2,402,235,231.20 | | Short-term Borrowings | 20,854,447.12 | 0.00 | | Accounts Payable | 130,395,441.08 | 147,104,878.62 | | Total Liabilities | 228,056,669.50 | 248,077,010.12 | | Total Equity Attributable to Parent Company Owners | 2,120,949,063.34 | 2,097,288,801.40 | - Consolidated Income Statement (Summary) | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 465,199,850.45 | 470,955,062.83 | | Total Operating Costs | 394,338,610.85 | 387,771,304.32 | | Total Profit | 78,176,842.80 | 84,235,972.13 | | Net Profit | 67,362,486.59 | 73,566,533.13 | | Net Profit Attributable to Parent Company Shareholders | 65,741,689.48 | 65,762,814.31 | | Basic Earnings Per Share (RMB/share) | 0.46 | 0.46 | - Consolidated Cash Flow Statement (Summary) | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 49,189,915.12 | 32,481,626.63 | | Net Cash Flow from Investing Activities | -7,658,110.56 | -91,782,913.63 | | Net Cash Flow from Financing Activities | -22,403,074.61 | -69,714,815.50 | | Net Increase in Cash and Cash Equivalents | 19,267,694.06 | -128,596,296.96 | III. Company Profile This section introduces Jiangsu Changling Hydraulic Co., Ltd.'s establishment background, registration information, main business scope, and its position in the hydraulic components, precision casting, and photovoltaic industries; the company's financial statements were approved for external release by the board of directors on August 19, 2025 - Jiangsu Changling Hydraulic Co., Ltd. was established through the overall conversion of Jiangyin Changling Machinery Manufacturing Co., Ltd., with a registered capital of RMB 144,087,070.00, and its shares were listed on the Shanghai Stock Exchange on March 22, 2021[152] - The company belongs to the general equipment manufacturing industry, primarily engaged in the R&D, production, and sales of hydraulic components and parts such as central rotary joints and tensioning devices, precision casting products like compressor castings and automotive castings, and photovoltaic slewing drives, engineering machinery slewing drives, and related accessories[153] - These financial statements were approved for external release by the company's Sixth Meeting of the Third Board of Directors held on August 19, 2025[153] IV. Basis of Financial Statement Preparation This section states that the company's financial statements are prepared on a going concern basis and confirms that there are no matters or circumstances that raise significant doubt about the company's ability to continue as a going concern for the 12 months from the end of the reporting period - The company's financial statements are prepared on a going concern basis[154] - There are no matters or circumstances that raise significant doubt about the company's ability to continue as a going concern for the 12 months from the end of the reporting period[155] V. Significant Accounting Policies and Accounting Estimates This section details the significant accounting policies and estimates followed by the company in preparing its financial statements, including specific provisions for financial instrument impairment, fixed asset depreciation, intangible asset amortization, and revenue recognition, along with explanations of accounting policy changes - The company has formulated specific accounting policies and estimates for transactions and events such as financial instrument impairment, fixed asset depreciation, intangible asset amortization, and revenue recognition, based on its actual production and operating characteristics[156] - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, and its functional currency is RMB[158][160] - The company defines significant items for which bad debt provisions are individually recognized, such as accounts receivable, and significant construction in progress projects, as those exceeding 0.5% or 10% of total assets[161][162] - Financial assets are classified at initial recognition into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[169] - Fixed asset depreciation is calculated using the straight-line method, with depreciation periods of 10-30 years for buildings and structures, and 5-10 years or 20 years for specialized equipment[204] - Intangible assets include land use rights, software, and patent rights; land use rights are amortized over 30-50 years, and software and patent technology rights over 5 years[209] - Effective 2024, the company implemented the accounting treatment for guarantee-type quality assurance as stipulated in "Interpretation No. 18 of Accounting Standards for Business Enterprises" issued by the Ministry of Finance, reclassifying guarantee-type quality assurance originally recorded in "selling expenses" to "operating costs" and making retrospective adjustments[244] VI. Taxes This section lists the company's main tax categories and rates, and discloses the tax incentives enjoyed by the company and its subsidiaries; the company and Jiangyin Shangchi Co., Ltd., as high-tech enterprises, benefit from a 15% corporate income tax rate and an additional 5% VAT deduction for advanced manufacturing enterprises - Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Difference between output tax and input tax | 13% | | Corporate Income Tax | Taxable income | 15%, 25% | | Property Tax | Ad valorem based on 1.2% of original value less 30%; rental based on 12% of rental income | 1.2%, 12% | - The company and Jiangyin Shangchi Co., Ltd. have been recognized as high-tech enterprises, with a three-year validity period, and are subject to a 15% corporate income tax rate for the current period[246] - The company and Jiangyin Shangchi Co., Ltd. enjoy the VAT super deduction policy for advanced manufacturing enterprises, allowing an additional 5% deduction from the current period's deductible input VAT amount against payable VAT[246] - Overseas subsidiaries and sub-subsidiaries, such as Singapore Company and Thailand Company, pay taxes according to the relevant policies of their registered locations[247] VII. Notes to Consolidated Financial Statements This section provides detailed notes on each asset, liability, and owner's equity item in the consolidated financial statements, including cash and cash equivalents, trading financial assets, notes receivable, accounts receivable, inventories, construction in progress, short-term borrowings, accounts payable, employee compensation payable, and deferred income tax assets/liabilities, explaining the changes and reasons for period-end balances compared to beginning balances 1、 Cash and Cash Equivalents The company's period-end cash and cash equivalents balance was RMB 373,118,262.41, an increase from the beginning of the period, primarily composed of bank deposits - Composition of Cash and Cash Equivalents | Item | Period-end Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Cash on Hand | 59,754.64 | 13,051.31 | | Bank Deposits | 371,626,907.77 | 352,405,917.04 | | Other Cash and Cash Equivalents | 1,431,600.00 | 2,556,600.00 | | Total | 373,118,262.41 | 354,975,568.35 | 2、 Trading Financial Assets The company's period-end trading financial assets primarily consisted of structural deposits, with a balance of RMB 390,000,000.00, a decrease from the beginning of the period - Composition of Trading Financial Assets | Item | Period-end Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Financial assets measured at fair value through profit or loss | 390,000,000.00 | 420,000,000.00 | | Of which: Structural deposits | 390,000,000.00 | 420,000,000.00 | | Total | 390,000,000.00 | 420,000,000.00 | 5、 Accounts Receivable The company's period-end accounts receivable book balance was RMB 430,756,686.09, with the highest proportion being within one year; total bad debt provisions amounted to RMB 33,611,600.93, primarily calculated using the aging analysis method; some individually provided accounts receivable may be unrecoverable due to customer liquidity risks or bankruptcy reorganization - Aging Distribution of Accounts Receivable | Aging | Period-end Book Balance (RMB) | Beginning Book Balance (RMB) | | :--- | :--- | :--- | | Within 1 year | 410,972,604.93 | 445,705,732.42 | | 1 to 2 years | 18,829,499.13 | 6,797,726.46 | | 2 to 3 years | 371,100.44 | 3,622,767.17 | | Over 3 years | 583,481.59 | 566,207.79 | | Total | 430,756,686.09 | 456,692,433.84 | - Classification and Disclosure of Accounts Receivable Bad Debt Provisions | Category | Book Balance (RMB) | Percentage (%) | Bad Debt Provision (RMB) | Provision Rate (%) | Book Value (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Individually provided for bad debts | 32,105,927.21 | 7.45 | 13,438,709.70 | 41.86 | 18,667,217.51 | | Provided for bad debts by portfolio | 398,650,758.88 | 92.55 | 20,172,891.23 | 5.06 | 378,477,867.65 | | Total | 430,756,686.09 | / | 33,611,600.93 | / | 397,145,085.16 | - A 10% bad debt provision was made for accounts receivable from Soltec Energías Renovables, S.L.U. due to customer liquidity risk; a 70% bad debt provision was made for Suzhou Akcome Metal Technology Co., Ltd. due to customer bankruptcy reorganization[262] 7、 Notes Receivable Financing The company's period-end notes receivable financing primarily consisted of bank acceptance bills, with a balance of RMB 57,813,009.98, a significant increase from the beginning of the period; the amount of bank acceptance bills endorsed or discounted and not yet due at period-end was RMB 74,806,122.64 - Classification of Notes Receivable Financing | Item | Period-end Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Bank acceptance bills | 57,813,009.98 | 33,347,615.42 | | Total | 57,813,009.98 | 33,347,615.42 | - At period-end, the amount of bank acceptance bills endorsed or discounted by the company and not yet due on the balance sheet date was RMB 74,806,122.64[278] 10、 Inventories The company's period-end inventory book value was RMB 179,432,722.81, mainly comprising raw materials, work in progress, finished goods, and consigned goods; total inventory impairment provisions amounted to RMB 11,431,220.63, an increase of RMB 2,622,620.93 this period, primarily due to new provisions and reversals or write-offs from increased net realizable value or consumption/sale of some inventories - Inventory Classification and Impairment Provisions | Item | Book Balance (RMB) | Inventory Impairment Provision (RMB) | Book Value (RMB) | | :--- | :--- | :--- | :--- | | Raw materials | 33,327,751.04 | 3,845,301.58 | 29,482,449.46 | | Work in progress | 25,197,167.46 | 1,113,881.45 | 24,083,286.01 | | Finished goods | 100,809,271.39 | 6,051,826.55 | 94,757,444.84 | | Consigned goods | 24,540,357.79 | 420,211.05 | 24,120,146.74 | | Materials for processing | 6,989,395.76 | 0.00 | 6,989,395.76 | | Total | 190,863,943.44 | 11,431,220.63 | 179,432,722.81 | - Changes in Inventory Impairment Provisions | Item | Beginning Balance (RMB) | Amount Increased During Period (Provision) (RMB) | Amount Decreased During Period (Reversal or Write-off) (RMB) | Period-end Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | | Raw materials | 3,032,402.19 | 1,135,165.37 | 322,265.98 | 3,845,301.58 | | Work in progress | 1,214,675.98 | 225,874.69 | 326,669.22 | 1,113,881.45 | | Finished goods | 5,801,659.95 | 1,046,861.58 | 796,694.98 | 6,051,826.55 | | Consigned goods | 533,390.33 | 214,719.29 | 327,898.57 | 420,211.05 | | Total | 10,582,128.45 | 2,622,620.93 | 1,773,528.75 | 11,431,220.63 | 21、 Fixed Assets The company's period-end fixed asset book value was RMB 443,629,938.27, a decrease from the beginning of the period; fixed asset additions this period were mainly from purchases and transfers from construction in progress, while reductions were primarily due to disposals or write-offs; some specialized equipment remained temporarily idle - Fixed Asset Book Value | Item | Period-end Book Value (RMB) | Beginning Book Value (RMB) | | :--- | :--- | :--- | | Buildings and structures | 215,518,142.27 | 222,048,226.15 | | Land ownership | 18,768,243.25 | 18,165,069.21 | | General equipment | 2,520,252.15 | 3,582,902.22 | | Specialized equipment | 205,637,884.90 | 218,269,699.01 | | Transportation vehicles | 1,185,415.71 | 1,037,841.86 | | Total | 443,629,938.27 | 463,103,738.45 | - Fixed asset additions this period totaled RMB 5,221,208.70, including RMB 3,004,660.01 from purchases and RMB 2,216,548.69 from transfers from construction in progress[313] - The book value of temporarily idle specialized equipment at period-end was RMB 2,722.70[316] - The period-end book value of fixed assets leased out under operating leases was RMB 14,849,962.16 for buildings and structures, and RMB 173,069.55 for specialized equipment[318] 22、 Construction in Progress The company's period-end construction in progress balance was RMB 32,154,787.69, a significant increase from the beginning of the period; major projects include the Thailand slewing drive and hydraulic product manufacturing base project and the high-end hydraulic component capacity expansion and intelligent upgrade project, with the Thailand project having an investment progress of 30.93% - Construction in Progress Project Status | Project | Period-end Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Thailand slewing drive and hydraulic product manufacturing base project | 21,912,102.84 | 3,654,724.76 | | Tensioning device relocation and expansion project | 0.00 | 1,575,000.00 | | High-end hydraulic component capacity expansion and intelligent upgrade project | 0.00 | 1,457,410.98 | | Equipment to be installed and other | 10,242,684.85 | 5,513,431.85 | | Total | 32,154,787.69 | 12,200,567.59 | - The Thailand slewing drive and hydraulic product manufacturing base project has a budget of RMB 129.60 million, with a cumulative investment of RMB 21.91 million at period-end, reaching 30.93% of its investment progress[321] - The high-end hydraulic component capacity expansion and intelligent upgrade project has a budget of RMB 199.89 million, with a cumulative investment of RMB 0.75 million at period-end, reaching 23.62% of its investment progress[321] 31、 Restricted Assets The company's period-end restricted assets totaled RMB 1,431,600.00, primarily cash and cash equivalents, restricted due to litigation freezes, bill deposits, and letter of guarantee deposits - Restricted Asset Status | Item | Period-end Book Balance (RMB) | Period-end Book Value (RMB) | Type of Restriction | Restriction Details | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 1,310,000.00 | 1,310,000.00 | Frozen | Litigation freeze | | Cash and Cash Equivalents | 112,000.00 | 112,000.00 | Other | Bills, letter of guarantee deposits | | Other Cash and Cash Equivalents | 9,600.00 | 9,600.00 | Other | ETC deposit | | Total | 1,431,600.00 | 1,431,600.00 | / | / | 32、 Short-term Borrowings The company's period-end short-term borrowings balance was RMB 20,854,447.12, entirely composed of credit borrowings, with no short-term borrowings at the beginning of the period - Short-term Borrowing Classification | Item | Period-end Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Credit borrowings | 20,854,447.12 | 0.00 | | Total | 20,854,447.12 | 0.00 | 36、 Accounts Payable The company's period-end accounts payable balance was RMB 130,395,441.08, a decrease from the beginning of the period, primarily consisting of goods payments and long-term asset payments - Accounts Payable Listing | Item | Period-end Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Goods payments | 123,437,669.99 | 115,792,942.10 | | Long-term asset payments | 4,286,083.56 | 28,645,737.02 | | Other | 2,671,687.53 | 2,666,199.50 | | Total | 130,395,441.08 | 147,104,878.62 | 39、 Employee Compensation Payable The company's period-end employee compensation payable balance was RMB 11,385,340.54, primarily short-term compensation including wages, bonuses, allowances, and subsidies; this period saw an increase of RMB 55,072,508.44 and a decrease of RMB 59,062,303.55 - Employee Compensation Payable Listing | Item | Beginning Balance (RMB) | Amount Increased During Period (RMB) | Amount Decreased During Period (RMB) | Period-end Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | | I. Short-term compensation | 15,375,135.65 | 55,072,508.44 | 59,062,303.55 | 11,385,340.54 | | II. Post-employment benefits - defined contribution plans | 0.00 | 4,197,074.34 | 4,197,074.34 | 0.00 | | III. Termination benefits | 0.00 | 151,000.00 | 151,000.00 | 0.00 | | Total | 15,375,135.65 | 59,420,582.77 | 63,410,377.89 | 11,385,340.54 | - Short-term Compensation Listing | Item | Beginning Balance (RMB) | Amount Increased During Period (RMB) | Amount Decreased During Period (RMB) | Period-end Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | | I. Wages, bonuses, allowances, and subsidies | 14,463,259.37 | 49,259,637.91 | 52,893,889.72 | 10,829,007.57 | | II. Employee welfare expenses | 0.00 | 2,046,709.74 | 2,046,709.74 | 0.00 | | III. Social insurance premiums | 0.00 | 2,314,994.90 | 2,314,994.90 | 0.00 | | IV. Housing provident fund | 0.00 | 823,964.00 | 823,964.00 | 0.00 | | V. Union funds and employee education funds | 911,876.28 | 627,201.89 | 982,745.20 | 556,332.97 | | Total | 15,375,135.65 | 55,072,508.44 | 59,062,303.55 | 11,385,340.54 | 40、 Taxes Payable The company's period-end taxes payable balance was RMB 11,631,018.07, a decrease from the beginning of the period, primarily including VAT, corporate income tax, property tax, and land use tax - Composition of Taxes Payable | Item | Period-end Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Value-Added Tax | 3,588,897.55 | 3,112,189.36 | | Corporate Income Tax | 5,675,885.73 | 7,687,103.99 | | Urban Maintenance and Construction Tax | 223,441.14 | 280,816.98 | | Property Tax | 1,207,380.30 | 1,243,428.65 | | Land Use Tax | 511,425.90 | 432,202.65 | | Withholding Individual Income Tax | 141,143.08 | 424,678.37 | | Education Surcharge | 95,760.49 | 120,350.14 | | Stamp Duty | 118,651.90 | 117,824.01 | | Local Education Surcharge | 63,840.32 | 80,233.43 | | Environmental Protection Tax | 4,591.66 | 5,113.93 | | Total | 11,631,018.07 | 13,503,941.51 | 51、 Deferred Income The company's period-end deferred income balance was RMB 22,175,371.55, primarily government grants related to assets, with a decrease of RMB 1,606,747.08 this period - Deferred Income Status | Item | Beginning Balance (RMB) | Amount Increased During Period (RMB) | Amount Decreased During Period (RMB) | Period-end Balance (RMB) | Reason for Formation | | :--- | :--- | :--- | :--- | :--- | :--- | | Government grants | 23,782,118.63 | 0.00 | 1,606,747.08 | 22,175,371.55 | Asset-related | | Total | 23,782,118.63 | 0.00 | 1,606,747.08 | 22,175,371.55 | / | 61、 Operating Revenue and Operating Cost The company's operating revenue for this period was RMB 465,199,850.45, and operating cost was RMB 342,271,848.91, a slight decrease from the previous period; main business revenue and cost remain the primary components, with other business revenue also increasing; revenue recognition primarily occurs at the point of goods delivery - Operating Revenue and Operating Cost Status | Item | Current Period (Revenue) (RMB) | Current Period (Cost) (RMB) | Prior Period (Revenue) (RMB) | Prior Period (Cost) (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main business | 454,309,991.40 | 336,384,264.87 | 461,746,160.97 | 337,925,105.99 | | Other business | 10,889,859.05 | 5,887,584.04 | 9,208,901.86 | 5,213,036.33 | | Total | 465,199,850.45 | 342,271,848.91 | 470,955,062.83 | 343,138,142.32 | - The company recognizes revenue from goods sales at the point of delivery, with payment terms generally ranging from 30 to 90 days after product delivery[376] - Revenue recognized this period, included in the beginning balance of contract liabilities, amounted to RMB 623,073.04[377] 65、 R&D Expenses The company's R&D expenses for this period were RMB 19,886,315.90, an increase from the previous period, primarily composed of employee compensation and material costs - R&D Expense Composition | Item | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | | Employee compensation | 10,886,627.66 | 9,916,044.98 | | Materials | 6,499,456.99 | 6,311,452.68 | | Depreciation and amortization | 718,077.23 | 732,846.54 | | Mold fees | 385,486.72 | 285,398.23 | | Other | 697,087.64 | 971,059.61 | | Electricity fees | 699,579.66 | 622,453.83 | | Total | 19,886,315.90 | 18,839,255.87 | 76、 Income Tax Expense The company's income tax expense for this period was RMB 10,814,356.21, mainly comprising current income tax expense and deferred income tax expense; the income tax expense adjustment process considered factors such as different tax rates applicable to subsidiaries, non-deductible costs and expenses, and super deduction for R&D expenses - Income Tax Expense Table | Item | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | | Current income tax expense | 12,210,190.90 | 11,470,724.13 | | Deferred income tax expense | -1,395,834.69 | -801,285.13 | | Total | 10,814,356.21 | 10,669,439.00 | - The income tax expense adjustment process includes the impact of different tax rates applicable to subsidiaries (RMB 1,697,920.49) and the impact of super deduction for R&D expenses (-RMB 3,282,141.27)[392] VIII. R&D Expenditures The company's total R&D expenditure for this period was RMB 19,886,315.90, all expensed, primarily for employee compensation, materials, depreciation and amortization, and mold fees; the company had no R&D projects meeting capitalization criteria this period - R&D Expenditures by Nature of Expense | Item | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | | Employee compensation | 10,886,627.66 | 9,916,044.98 | | Materials | 6,499,456.99 | 6,311,452.68 | | Depreciation and amortization | 718,077.23 | 732,846.54 | | Mold fees | 385,486.72 | 285,398.23 | | Electricity fees | 699,579.66 | 622,453.83 | | Other | 697,087.64 | 971,059.61 | | Total | 19,886,315.90 | 18,839,255.87 | | Of which: Expensed R&D expenditures | 19,886,315.90 | 18,839,255.87 | | Capitalized R&D expenditures | 0.00 | 0.00 | X. Equity in Other Entities This section details the composition of the company's enterprise group, including the registered capital, registered location, business nature, and shareholding percentage of major subsidiaries; Jiangyin Shangchi Co., Ltd., as a significant non-wholly owned subsidiary, has a 30% minority shareholder stake, with RMB 1,615,442.68 of profit attributable to minority shareholders this period - Composition of the Enterprise Group | Subsidiary Name | Registered Capital (RMB million) | Registered Location | Business Nature | Shareholding Percentage (%) (Direct) | | :--- | :--- | :--- | :--- | :--- | | Changling Precision Co., Ltd. | 280.00 | Jiangyin, Jiangsu | Manufacturing | 100.00 | | Jiangyin Shangchi Co., Ltd. | 10.98 | Jiangyin, Jiangsu | Manufacturing | 70.00 | | Changling Taixing Co., Ltd. | 80.00 | Taixing, Jiangsu | Manufacturing | 100.00 | | Changling Metal Co., Ltd. | 2.00 | Jiangyin, Jiangsu | Manufacturing | 100.00 | | Singapore Company | 17.85 | Singapore | Investment | 100.00 | | Thailand Company | 18.92 | Thailand | Manufacturing | 97.00 | - Financial Information of Significant Non-Wholly Owned Subsidiary | Subsidiary Name | Minority Shareholding Percentage (%) | Profit Attributable to Minority Shareholders This Period (RMB) | Minority Interest Balance at Period-end (RMB) | | :--- | :--- | :--- | :--- | | Jiangyin Shangchi Co., Ltd. | 30% | 1,615,442.68 | 58,469,004.31 | - Key Financial Information of Jiangyin Shangchi Co., Ltd. (Current Period) | Item | Amount (RMB) | | :--- | :--- | | Operating Revenue | 53,679,991.31 | | Net Profit | 7,446,637.73 | | Total Comprehensive Income | 7,446,637.73 | | Net Cash Flow from Operating Activities | 12,248,403.53 | XII. Risks Related to Financial Instruments The company faces credit risk, liquidity risk, and market risk (including interest rate risk and foreign exchange risk) in its daily operations; the company manages these risks through credit assessment, diversified financing, and foreign currency trading to balance risk and return, minimizing negative impacts - The company faces credit risk, liquidity risk, and market risk (interest rate risk and foreign exchange risk)[423] - Credit risk primarily arises from cash and cash equivalents and accounts receivable; the company controls this risk by depositing cash and cash equivalents with highly-rated financial institutions and continuously assessing customer credit[425] - Liquidity risk is controlled by comprehensively utilizing various financing methods such as bill settlement and bank borrowings, and adopting an appropriate combination of long-term and short-term financing[426] - Market risk mainly includes interest rate risk and foreign exchange risk; the company manages foreign exchange risk by regularly reviewing and monitoring an appropriate portfolio of financial instruments and buying/selling foreign currencies at market exchange rates when necessary[427] XIII. Disclosure of Fair Value This section discloses the period-end fair values of the company's assets and liabilities measured at fair value, primarily including trading financial assets, notes receivable financing, and other equity instrument investments; these items use different valuation techniques, such as structural deposits valued at cost, bank acceptance bills at face value, and non-listed equity investments using market and discounted future cash flow methods - Period-end Fair Value of Assets and Liabilities Measured at Fair Value | Item | Period-end Fair Value (RMB) | | :--- | :--- | | (I) Trading financial assets | 390,000,000.00 | | (VI) Notes receivable financing | 57,813,009.98 | | (VII) Other equity instrument investments | 6,000,000.00 | | Total assets continuously measured at fair value | 453,813,009.98 | - The fair value of structural deposits within trading financial assets cannot be reliably measured and is represented by cost[432] - Bank acceptance bills within notes receivable financing are valued at their face amount due to low credit risk and short remaining maturity[432] - Other equity instrument investments, representing non-listed equity, are valued using a combination of market approach and discounted future cash flow methods to estimate fair value[432] XIV. Related Parties and Related Party Transactions This section discloses the company's related parties and related party transactions; the main related party is Jiangyin Changling Wumao Co., Ltd., which is under the common control of the actual controller; during the reporting period, the company, as lessee, leased buildings from Changling Wumao Co., Ltd. and paid rent; additionally, key management personnel compensation and outstanding receivables and payables with related parties are disclosed - Jiangyin Changling Wumao Co., Ltd. is another related party of the company, under the common control of the actual controller[435] - The company, as lessee, leased buildings from Changling Wumao Co., Ltd., paying RMB 360,000.00 in rent this period[438] - Key Management Personnel Compensation | Item | Current Period (RMB million) | Prior Period (RMB million) | | :--- | :--- | :--- | | Key management personnel compensation | 1.30 | 1.41 | - Outstanding Receivables from Related Parties | Item Name | Related Party | Period-end Book Balance (RMB) | Bad Debt Provision (RMB) | | :--- | :--- | :--- | :--- | | Changling Hydraulic | Jiangyin Shangchi Co., Ltd. | 52,000.01 | 2,600.00 | | Changling Precision Co., Ltd. | Changling Hydraulic | 111,998.80 | 5,599.94 | | Changling Precision Co., Ltd. | Jiangyin Shangchi Co., Ltd. | 478,712.46 | 23,935.62 | - Outstanding Payables to Related Parties | Item Name | Related Party | Period-end Book Balance (RMB) | Beginning Book Balance (RMB) | | :--- | :--- | :--- | :--- | | Jiangyin Shangchi Co., Ltd. | Changling Hydraulic | 52,000.01 | 102,016.77 | | Changling Hydraulic | Changling Precision Co., Ltd. | 111,998.80 | 68,315.24 | | Jiangyin Shangchi Co., Ltd. | Changling Precision Co., Ltd. | 478,712.46 | 493,278.60 | XVII. Events After the Balance Sheet Date This section discloses the company's profit distribution after the balance sheet date; pursuant to authorization from the 2024 Annual General Meeting, the board of directors approved the 2025 semi-annual profit distribution plan, proposing a cash dividend of RMB 4.20 (tax inclusive) per 10 shares to all shareholders, totaling RMB 60,516,569.40 - The company convened the Sixth Meeting of the Third Board of Directors on August 19, 2025, and approved the "Company's 2025 Semi-Annual Profit Distribution Plan"[448] - The company proposes to distribute a cash dividend of RMB 4.20 (tax inclusive) per 10 shares to all shareholders based on the total share capital on the equity distribution record date, with an estimated total cash dividend of RMB 60,516,569.40 (tax inclusive)[448] XX. Supplementary Information This section provides supplementary information, including a detailed statement of non-recurring gains and losses, net asset return, and earnings per share; total non-recurring gains and losses amounted to RMB 4,992,598.25; the weighted average return on net assets attributable to common shareholders was 3.10%, and basic earnings per share was RMB 0.46/share - Detailed Statement of Non-recurring Gains and Losses | Item | Amount (RMB) | | :--- | :--- | | Gains/losses from disposal of non-current assets | 2,238.65 | | Government grants recognized in current profit or loss | 1,108,000.00 | | Gains/losses from entrusted investments or asset management | 4,550,445.68 | | Reversal of impairment provisions for accounts receivable subject to individual impairment testing | 447,058.81 | | Other non-operating income and expenses | -107,939.60 | | Less: Income tax impact | 1,007,205.29 | | Total | 4,992,598.25 | - Net Asset Return and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (RMB) | Diluted Earnings Per Share (RMB) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders of the company | 3.10 | 0.46 | 0.46 | | Net profit attributable to common shareholders of the company after deducting non-recurring gains and losses | 2.86 | 0.42 | 0.42 |