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新天科技(300259) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions This section provides essential disclaimers, lists the report's contents, and defines key terms used throughout the document Important Notes The Board of Directors, Supervisory Committee, and senior management guarantee the report's truthfulness, accuracy, and completeness, assuming legal responsibility - The company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the report content and assume legal responsibility3 - Company head Wang Shengli, chief accountant Xu Wenliang, and head of accounting department Wang Xiaofang declare the financial report is true, accurate, and complete3 - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital4 Table of Contents This section lists the report's eight main chapters and their starting page numbers, covering company operations, finance, governance, and significant matters - The report comprises eight main chapters, covering company operations, finance, governance, and significant matters6 List of Reference Documents Reference documents include signed and sealed accounting statements, original copies of all publicly disclosed company documents, and the original semi-annual report signed by the legal representative - Reference documents include signed and sealed accounting statements, original copies of publicly disclosed company documents, and the original report signed by the legal representative9 Definitions This section defines common terms used in the report, covering the reporting period, currency units, company names, and key technologies and industry concepts - The reporting period refers to January-June 2025, and the prior period refers to January-June 202411 - NB-IoT is a low-power wide-area network technology widely applied in remote meter reading, smart agriculture, and smart water management11 - Smart water management utilizes IT systems and big data services to achieve efficient, long-term, and reliable operation of water utility assets11 - AI (Artificial Intelligence) is a technical science that studies and develops theories, methods, technologies, and application systems for simulating, extending, and expanding human intelligence12 Company Profile and Key Financial Indicators This section introduces the company, its contact information, and presents key accounting data and financial indicators for the reporting period Company Profile Suntront Technology Co., Ltd. (stock code: 300259) is listed on the Shenzhen Stock Exchange, with Wang Shengli as its legal representative - The company's stock abbreviation is “Suntront Technology”, stock code “300259”, listed on the Shenzhen Stock Exchange14 - The company's legal representative is Wang Shengli14 Contact Person and Contact Information The company's Board Secretary is Yang Dongling, with contact details including address, phone, fax, and email - The Board Secretary is Yang Dongling, with the contact address at Hongsong Road 252, Zhengzhou High-tech Industrial Development Zone15 - Contact phone/fax: 0371-56160968, email: xtkj@suntront.com15 Other Information There were no changes in the company's contact information, information disclosure, or registration during the reporting period, as detailed in the 2024 annual report - The company's registered address, office address, website, and email address remained unchanged during the reporting period16 - Information disclosure and document storage locations remained unchanged during the reporting period17 - The company's registration status remained unchanged during the reporting period18 Key Accounting Data and Financial Indicators The company achieved significant growth in operating revenue and net profit attributable to shareholders in the first half of 2025, with total assets and net assets also steadily increasing Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (yuan) | Prior Period (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 446,897,487.83 | 359,275,275.12 | 24.39% | | Net Profit Attributable to Shareholders of the Listed Company | 78,903,344.52 | 56,991,648.27 | 38.45% | | Net Profit Attributable to Shareholders of the Listed Company Excluding Non-Recurring Gains and Losses | 56,296,775.29 | 50,586,760.84 | 11.29% | | Net Cash Flow from Operating Activities | 22,622,796.38 | 20,659,492.58 | 9.50% | | Basic Earnings Per Share (yuan/share) | 0.0694 | 0.0498 | 39.36% | | Diluted Earnings Per Share (yuan/share) | 0.0694 | 0.0498 | 39.36% | | Weighted Average Return on Net Assets | 2.66% | 1.98% | 0.68% | | End of Current Period | End of Prior Year | Change from Prior Year-End | | | Total Assets | 3,504,780,961.10 | 3,428,097,177.74 | 2.24% | | Net Assets Attributable to Shareholders of the Listed Company | 2,947,950,769.18 | 2,926,078,630.03 | 0.75% | Differences in Accounting Data Under Domestic and International Accounting Standards The company reported no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards during the reporting period - The company reported no differences in accounting data under domestic and international accounting standards during the reporting period2021 Non-Recurring Gains and Losses Items and Amounts The company's total non-recurring gains and losses for the reporting period amounted to 22.61 million yuan, primarily from fair value changes and disposal gains/losses of financial assets and liabilities Non-Recurring Gains and Losses Items and Amounts for H1 2025 | Item | Amount (yuan) | | :--- | :--- | | Non-Current Asset Disposal Gains and Losses | -16,417.32 | | Government Grants Recognized in Profit or Loss (excluding those related to normal business operations) | 704,828.90 | | Gains and Losses from Changes in Fair Value of Financial Assets and Liabilities Held by Non-Financial Enterprises (excluding hedging activities) and Disposal Gains and Losses | 25,508,966.81 | | Other Non-Operating Income and Expenses Apart from the Above | 203,406.04 | | Less: Income Tax Impact | 3,794,217.14 | | Impact on Minority Interests (after tax) | -1.94 | | Total | 22,606,569.23 | - The company has no other profit and loss items that meet the definition of non-recurring gains and losses, nor has it classified non-recurring gains and losses as recurring gains and losses24 Management Discussion and Analysis This section analyzes the company's main business, core competencies, financial performance, investment activities, and risks during the reporting period Main Business Activities During the Reporting Period Suntront Technology is a leading provider of integrated IoT solutions for smart water, gas, heating, and agricultural water conservation, offering comprehensive hardware and software solutions Main Business Suntront Technology specializes in integrated IoT solutions for smart water, gas, heating, and agricultural water conservation, providing hardware and software solutions from smart sensing terminals to AI-powered cloud platforms - The company is a leading domestic enterprise in integrated IoT solutions for smart water, gas, heating, and agricultural water conservation26 - The company provides integrated hardware and software IoT solutions, including smart sensing terminals, application management software, and big data cloud platform + AI services26 - The company's products utilize technologies such as IoT, network communication, cloud computing, GIS, artificial intelligence, and digital twin, forming a significant technological advantage26 Main Products and Uses The company's products include IoT smart meter systems, smart industrial and commercial water meters, smart water, gas, heating, and agricultural water conservation solutions, covering the entire energy management and water resource utilization process - The company's products cover IoT smart residential meter systems, smart industrial and commercial water meters and flowmeters, smart water management, smart agricultural water conservation, and smart heating27 - The Smart Water Management Integrated Platform 7.0 has fully integrated multiple AI large model application technologies, empowering the digital transformation of water utilities43 - The Smart Heating Platform includes heating network monitoring, network-wide balancing, energy-saving control, customer service marketing, meter reading, and operation management, supporting low-carbon smart heating72 - The Smart Agricultural Water Conservation System utilizes mobile internet, cloud computing, and wireless communication technologies to achieve intelligent scheduling, monitoring, and automated control of irrigation water85 Business Model The company operates an integrated "R&D + Procurement + Production + Sales + Service" order-based production model, where revenue is recognized upon customer acceptance after product delivery - The company primarily adopts an integrated “R&D + Procurement + Production + Sales + Service” order-based production model98 - Products are delivered to customers after manufacturing, and revenue is recognized upon customer acceptance98 Market Position As an early high-tech enterprise in IoT smart energy solutions, the company holds a leading market position with comprehensive technical solutions, extensive product range, and national and global business coverage - The company is one of the earliest high-tech enterprises in China engaged in integrated IoT smart energy solutions, offering a comprehensive range of products99 - The company is a national-level “Specialized, Refined, Unique, and Innovative” “Little Giant” enterprise and one of “China's Top 100 IoT Enterprises”99100 - The company's sales cover over thirty provinces and cities nationwide, with a global business layout and high market share for its core products100 Key Performance Drivers The company's performance is primarily driven by continuous technological innovation, high R&D investment, active application of AI large models, and supportive national policies for digital and smart development in utility sectors - The company adheres to technological innovation, maintaining a leading technological position and enhancing competitive advantages through high R&D investment and AI large model applications101 - Multiple national policies guide and support the digital and smart development of water, gas, and heating industries, driving market demand growth102 Industry Development National policies strongly promote digital transformation and smart upgrades for public utilities, leading to projected continuous growth in the smart water, agriculture, and meter markets - National policies vigorously promote digital transformation, shifting new infrastructure construction towards digitalization, networking, intelligence, and refined management103 - The “National Water Network Construction Plan Outline” proposes strengthening water network digitalization and building digital twin water networks104 - The “Guiding Opinions on Accelerating the Development of Water-Saving Industry” proposes that the scale of the water-saving industry will reach one trillion yuan by 2027105 Market Size Forecast | Sector | Forecast Year | Market Size Forecast | Source | | :--- | :--- | :--- | :--- | | Smart Water Management | 2026 | 37 billion yuan | Forward Industry Research Institute | | Smart Agriculture | 2027 | 121.4 billion yuan | Forward Industry Research Institute | | Smart Water Meters | 2030 | Exceed 40 billion yuan | Zhiyan Zhan Industry Research Institute | | Water-Saving Industry | 2027 | Reach one trillion yuan | National Development and Reform Commission, Ministry of Water Resources | | Smart Gas Meters | 2028 | 11.923 billion yuan | Zhiyan Consulting | Core Competitiveness Analysis The company has established unique competitive advantages in smart energy IoT solutions through continuous technological innovation, a comprehensive product system, strong customer resources, brand recognition, strict quality management, an experienced management team, and advanced smart manufacturing capabilities Technology R&D Advantages The company possesses a national-level enterprise technology center and postdoctoral research workstation, a 500-person R&D team, hundreds of patents and software copyrights, and has led or participated in developing over 50 industry standards - The company possesses a national-level enterprise technology center and postdoctoral research workstation, a 500-person R&D team, and experienced key technical personnel111 - The company has accumulated hundreds of patents and software copyrights, and has led or participated in developing over 50 national industry-related standards111 - During the reporting period, the company added 18 patent technologies (2 invention patents, 9 utility model patents, 7 design patents) and 17 computer software copyrights111112114115 Product Advantages The company offers a complete product and service system, integrating mainstream technologies like NB-IoT and ultrasonic, and has developed an integrated smart water management platform, creating a significant competitive edge - The company provides comprehensive energy management services, including consulting, planning, hardware and software products, project management, and pipeline network health checks116 - Product technologies include mainstream technologies such as NB-IoT, LoRa, ultrasonic, non-magnetic sensing, electromagnetic measurement, and photoelectric direct reading116 - The company has built an integrated smart water management and control platform covering smart production, pipeline networks, marketing, operations, services, and decision-making116117 Customer Resource Advantages With 25 years of experience in smart energy management, the company has built a strong customer service system, serving over 2,500 public utility entities nationwide and globally, including major groups like China Water Affairs - The company has cultivated the smart energy management sector for twenty-five years, establishing a robust customer service system118 - Products are sold in over 30 provinces, municipalities, and autonomous regions nationwide, and exported to multiple countries and regions including India and Nigeria118 - The company has cumulatively provided smart energy management solutions to over 2,500 public utility entities, serving numerous large group clients118 Brand Advantages The company has established a strong reputation and brand recognition in the smart energy industry through independent R&D, high-quality products, and comprehensive services, earning multiple brand honors - The company has significant influence in the smart energy industry, with products trusted and recognized by customers119 - The company's IoT water meters, gas meters, and other series products were selected as “China Famous Brand Products”, and its trademark was recognized as a “Henan Province Famous Trademark”119 Quality Advantages Guided by a philosophy of meticulous quality control, the company has established a quality management center, strictly adheres to ISO9001, and uses MES systems for full lifecycle product quality management, ensuring reliability and traceability - The company has established a quality management center, strictly controlling quality in accordance with ISO9001 quality management system standards121 - The company has introduced a refined Manufacturing Execution System (MES) for full lifecycle product quality control, ensuring reliability, stability, and traceability121 - The company has received multiple quality honors, including “AAA-level Quality Credit Enterprise” and “National Instrument and Meter Industry Quality Leading Enterprise”121 Management Team Advantages The company's management team, with over two decades of experience in the smart energy sector, has established rigorous internal controls and a standardized management system, while also prioritizing talent development - The company's management team has focused on the smart energy industry for over twenty years, possessing rich management experience and pioneering spirit122 - The company has formulated rigorous and effective internal control measures, forming a standardized management system, and emphasizes talent acquisition and development122 Smart Manufacturing Advantages The company operates a large-scale smart factory with advanced automation and flexible production lines, integrating intelligent systems for assembly, testing, packaging, logistics, and quality traceability, significantly boosting efficiency and product quality - The company has built one of the largest smart factories in China's smart energy sector, utilizing advanced automation equipment and highly flexible production lines123 - The company has invested in intelligent placement, testing, packaging, logistics, quality traceability, CRM, IPD, BPM, and other systems to achieve real-time data monitoring123 - Digital factories and big data applications have significantly improved production efficiency and management levels, reduced labor costs, and ensured product quality traceability123129 Main Business Analysis In H1 2025, the company's operating revenue increased by 24.39%, with operating costs rising by 33.77%, while financial expenses grew by 59.04% due to reduced interest income, and R&D investment decreased by 24.35% Year-on-Year Changes in Key Financial Data | Indicator | Current Period (yuan) | Prior Period (yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 446,897,487.83 | 359,275,275.12 | 24.39% | | | Operating Cost | 261,920,111.82 | 195,797,979.49 | 33.77% | Operating revenue increase led to corresponding operating cost increase | | Selling Expenses | 50,828,521.45 | 46,563,926.04 | 9.16% | | | Administrative Expenses | 22,670,265.62 | 26,231,681.54 | -13.58% | | | Financial Expenses | -3,541,352.53 | -8,645,276.18 | 59.04% | Interest income decreased compared to the prior period | | Income Tax Expense | 13,176,841.79 | 14,578,772.58 | -9.62% | | | R&D Investment | 31,800,775.68 | 42,036,059.15 | -24.35% | | | Net Cash Flow from Operating Activities | 22,622,796.38 | 20,659,492.58 | 9.50% | | | Net Cash Flow from Investing Activities | -53,916,515.29 | 29,066,703.78 | -285.49% | Increased purchase of wealth management products compared to the prior period | | Net Cash Flow from Financing Activities | -35,860,834.10 | -133,639,631.12 | 73.17% | Share repurchase in the prior period | | Net Increase in Cash and Cash Equivalents | -67,768,206.89 | -83,464,933.76 | 18.81% | | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Smart Residential Water Meters and Systems | 183,698,485.92 | 107,952,380.81 | 41.23% | 16.53% | 9.31% | 3.88% | | Smart Industrial and Commercial Water Meters and Flowmeters | 104,605,536.74 | 46,404,133.74 | 55.64% | -6.60% | 14.75% | -8.25% | | Smart Gas Meters and Systems | 102,560,261.44 | 81,837,523.92 | 20.21% | 106.86% | 124.50% | -6.26% | Operating Revenue by Region | Region | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Northeast | 62,595,690.70 | 46,900,070.28 | 25.07% | 703.60% | 1,270.74% | -31.00% | | North China | 71,812,381.32 | 44,680,952.47 | 37.78% | 53.22% | 81.35% | -9.65% | | East China | 126,440,566.50 | 73,421,463.02 | 41.93% | -1.40% | -0.25% | -0.67% | | Central China | 72,601,205.63 | 37,334,470.80 | 48.58% | 25.07% | 3.45% | 10.75% | Non-Core Business Analysis Non-core business activities impacted total profit, with investment income accounting for 20.06% and fair value change gains/losses for 5.73%, both lacking sustainability Impact of Non-Core Business on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 18,469,298.12 | 20.06% | Mainly income from financial assets held for trading in the current period | No | | Gains and Losses from Changes in Fair Value | 5,275,751.13 | 5.73% | Mainly fair value changes of financial assets held for trading at the end of the current period | No | | Asset Impairment | -5,566,156.10 | -6.05% | Mainly inventory impairment provisions made in the current period | Yes | | Non-Operating Income | 324,545.69 | 0.35% | Mainly compensation received in the current period | No | | Non-Operating Expenses | 248,477.34 | 0.27% | Mainly asset disposal losses in the current period | No | Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets and net assets attributable to shareholders increased, with significant changes in financial assets held for trading, construction in progress, and contract liabilities Significant Changes in Asset Composition | Item | Amount at End of Current Period (yuan) | Proportion of Total Assets | Amount at End of Prior Year (yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 501,975,776.71 | 14.32% | 570,212,216.20 | 16.63% | -2.31% | | Accounts Receivable | 551,289,532.16 | 15.73% | 509,308,500.25 | 14.86% | 0.87% | | Contract Assets | 31,448,776.03 | 0.90% | 22,023,273.52 | 0.64% | 0.26% | | Inventories | 332,880,435.80 | 9.50% | 301,465,029.15 | 8.79% | 0.71% | | Construction in Progress | 390,940,096.19 | 11.15% | 346,312,614.65 | 10.10% | 1.05% | | Contract Liabilities | 46,206,084.42 | 1.32% | 29,321,958.82 | 0.86% | 0.46% | | Financial Assets Held for Trading | 891,696,745.93 | 25.44% | 790,394,549.95 | 23.06% | 2.38% | | Other Non-Current Assets | 25,069,930.10 | 0.72% | 104,135,400.21 | 3.04% | -2.32% | - The company's main asset measurement attributes did not undergo significant changes during the reporting period142 Investment Analysis The company had no significant equity or non-equity investments during the reporting period, with financial assets measured at fair value totaling 891.70 million yuan, primarily comprising stocks and wealth management products Financial Assets Measured at Fair Value At the end of the period, the company's financial assets measured at fair value totaled 891.70 million yuan, mainly consisting of stocks and other wealth management products, funded by both proprietary and raised capital Financial Assets Measured at Fair Value | Asset Category | Amount at Period-End (yuan) | Source of Funds | | :--- | :--- | :--- | | Stocks | 213,883,614.55 | Proprietary funds | | Other (Wealth Management Products) | 607,513,078.98 | Proprietary funds | | Other (Wealth Management Products) | 70,300,052.40 | Raised funds | | Total | 891,696,745.93 | | Use of Raised Funds As of June 30, 2025, the company had an unused balance of 141.39 million yuan in raised funds, with 70 million yuan allocated to wealth management products and the remaining in dedicated accounts, and the completion date for fundraising projects adjusted to October 31, 2025 - As of June 30, 2025, the unused balance of raised funds was 141.3946 million yuan148 - Of this, 70 million yuan was used to purchase wealth management products, and 71.3944 million yuan was held in dedicated raised funds accounts148 - The expected ready-for-use date for the fundraising projects (Smart Water Cloud Service Platform, etc.) has been adjusted to October 31, 2025149153 Wealth Management, Derivative Investments, and Entrusted Loans During the reporting period, the company engaged in wealth management totaling 611.02 million yuan, with an outstanding balance of 603.02 million yuan at period-end, and no overdue amounts or derivative/entrusted loan investments Overview of Wealth Management During the Reporting Period | Specific Type | Source of Wealth Management Funds | Amount of Wealth Management Transactions (10,000 yuan) | Outstanding Balance (10,000 yuan) | Overdue Unrecovered Amount (10,000 yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Raised funds | 4,000 | 4,000 | 0 | | Bank Wealth Management Products | Proprietary funds | 20,000 | 20,200 | 0 | | Brokerage Wealth Management Products | Raised funds | 3,000 | 3,000 | 0 | | Brokerage Wealth Management Products | Proprietary funds | 34,101.58 | 33,101.58 | 0 | | Total | | 61,101.58 | 60,301.58 | 0 | - The company had no derivative investments or entrusted loans during the reporting period158159 Significant Asset and Equity Disposals The company did not dispose of any significant assets or equity during the reporting period - The company did not dispose of any significant assets during the reporting period160 - The company did not dispose of any significant equity during the reporting period161 Analysis of Major Holding and Participating Companies Shanghai Kent Instrument Co., Ltd., a major subsidiary, achieved operating revenue of 107.63 million yuan and net profit of 19.52 million yuan during the reporting period, with no acquisitions or disposals of subsidiaries Financial Performance of Major Subsidiary Shanghai Kent Instrument Co., Ltd. | Indicator | Amount (yuan) | | :--- | :--- | | Total Assets | 714,720,604.11 | | Net Assets | 598,865,696.22 | | Operating Revenue | 107,628,204.01 | | Operating Profit | 21,848,161.98 | | Net Profit | 19,516,037.71 | - The company did not acquire or dispose of any subsidiaries during the reporting period162 Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period163 Risks Faced by the Company and Countermeasures The company faces risks including unachieved fundraising project returns, goodwill impairment, declining gross margins, raw material price fluctuations, investment risks, R&D risks, and management risks, with corresponding mitigation strategies in place - The company faces the risk that fundraising projects may not achieve expected returns, with countermeasures including technological innovation, strengthening human resource development, and exploring new markets164 - The company faces goodwill impairment risk, with countermeasures including closely monitoring the development of target enterprises, strengthening business synergy, and financial control165 - The company faces the risk of declining gross margins, with countermeasures including continuously improving product R&D technology, strengthening brand building, enhancing marketing capabilities, and cost control166 - The company faces raw material price fluctuation risk, with countermeasures including increasing R&D investment, enhancing product added value, closely monitoring price trends, and diversifying procurement channels167 - The company faces technology development and product R&D risks, with countermeasures including adhering to independent innovation, optimizing R&D processes, attracting and cultivating talent, and optimizing R&D and market feedback mechanisms169 - The company faces management risks, with countermeasures including strengthening the selection, appointment, and training of management personnel, improving scientific decision-making mechanisms, and optimizing business processes170171 Registration Form for Investor Relations Activities During the Reporting Period During the reporting period, the company conducted three investor relations activities, including on-site surveys and online exchanges, discussing industry trends, future plans, performance drivers, and equity distribution - On January 15, 2025, the company hosted an on-site survey by Caitong Securities researchers, discussing industry development, future plans, and performance growth drivers172 - On April 29 and May 22, 2025, the company engaged in online exchanges via network platforms, participating in the 2024 annual online performance briefing and collective reception day activities to communicate with investors172 Implementation of Market Value Management System and Valuation Enhancement Plan The company did not disclose any market value management system or valuation enhancement plan during the reporting period - The company did not formulate a market value management system during the reporting period173 - The company did not disclose a valuation enhancement plan during the reporting period173 Implementation of "Dual Improvement in Quality and Returns" Action Plan The company did not disclose any announcement regarding the "Dual Improvement in Quality and Returns" action plan during the reporting period - The company did not disclose an announcement regarding the “Dual Improvement in Quality and Returns” action plan during the reporting period173 Corporate Governance, Environment, and Society This section details changes in the company's governance, profit distribution, employee incentives, environmental disclosures, and social responsibility initiatives Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, or senior management during the reporting period, as detailed in the 2024 annual report - There were no changes in the company's directors, supervisors, or senior management during the reporting period175 Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period176 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 in place or implemented during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures or their implementation during the reporting period177 Environmental Information Disclosure The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law178 Social Responsibility The company actively fulfills its social responsibilities by protecting the rights of investors, employees, suppliers, and customers, and by promoting environmental protection and sustainable development Investor Rights Protection The company prioritizes investor relations management, maintaining close communication through diverse channels such as hotlines, interactive platforms, on-site surveys, and performance briefings - The company protects investor rights through diversified communication mechanisms (hotlines, interactive platforms, surveys, performance briefings)179 Employee Rights Protection The company strictly adheres to labor laws, provides fair opportunities for work, learning, growth, and promotion through scientific assessment and incentive systems, and prioritizes occupational health and safety management - The company strictly complies with the “Labor Law” and provides fair opportunities through assessment and incentive systems180 - The company highly values occupational health and safety management, conducting regular safety education for employees annually180 Supplier and Customer Rights Protection The company builds strategic partnerships with suppliers and customers based on honesty, fairness, and mutual benefit, ensuring product quality through a comprehensive management system from procurement to after-sales service - The company adheres to principles of honesty, fairness, equality, and mutual benefit, building strategic partnerships with suppliers and customers182 - The company strictly controls product quality, establishing a comprehensive quality management system from procurement and production to after-sales service182 - A national after-sales service hotline is established to receive inquiries, feedback, and complaints 24 hours a day, ensuring timely resolution of customer issues182 Environmental Protection and Sustainable Development The company is committed to environmental protection and sustainable development, implementing an ISO14001 environmental management system, pursuing green manufacturing and products, and leveraging digital technologies for green supply chain upgrades - The company is committed to source reduction, energy saving, emission reduction, safety, and environmental protection, continuously advancing environmental protection efforts183 - An environmental management system compliant with ISO14001 standards has been established, and the “Quality, Environment, Occupational Health and Safety Management Manual” has been formulated183 - By empowering with digital and intelligent technologies, the company actively drives green collaborative upgrades across the industry and supply chains183 Significant Matters This section covers the company's commitments, related party transactions, litigation, penalties, and other significant events during the reporting period Commitments During the reporting period, there were no commitments by the company's actual controllers, shareholders, related parties, acquirers, or the company itself that were either fulfilled or overdue - The company had no unfulfilled or overdue commitments from its actual controllers, shareholders, related parties, acquirers, or the company itself during the reporting period185 Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties During the reporting period, there were no instances of non-operating funds being occupied by the controlling shareholder or other related parties of the listed company - The company had no instances of non-operating funds being occupied by the controlling shareholder or other related parties during the reporting period186 Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period187 Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited188 Explanation of "Non-Standard Audit Report" The company did not receive a "non-standard audit report" from its accounting firm during the reporting period - The company did not receive a “non-standard audit report” from its accounting firm during the reporting period189 Explanation of "Non-Standard Audit Report" from Prior Year The Board of Directors provided no explanation regarding a "non-standard audit report" from the prior year during the reporting period - The company's Board of Directors provided no explanation regarding a “non-standard audit report” from the prior year during the reporting period189 Bankruptcy and Reorganization Matters The company had no bankruptcy or reorganization matters during the reporting period - The company had no bankruptcy or reorganization matters during the reporting period189 Litigation Matters The company had no significant litigation or arbitration matters during the reporting period, and other minor cases totaling 14.33 million yuan are not expected to materially impact its financial condition or operations - The company had no significant litigation or arbitration matters during the reporting period190 - Other litigation and arbitration cases involved a total amount of 14.3329 million yuan, with the company as plaintiff in cases totaling 13.9996 million yuan and as defendant in cases totaling 0.3333 million yuan191 - These litigation and arbitration matters are not expected to have a material adverse impact on the company's financial condition or ongoing operations191 Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period192 Significant Related Party Transactions The company had no significant related party transactions during the reporting period, including those related to daily operations, asset/equity acquisitions or disposals, joint external investments, or related party creditor-debtor relationships - The company had no related party transactions related to daily operations during the reporting period193 - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period194 - The company had no related party creditor-debtor relationships during the reporting period196 - The company had no other significant related party transactions during the reporting period199 Significant Contracts and Their Performance The company had no significant entrustment or contracting arrangements, but leased out idle properties to improve asset utilization, with no major leasing projects generating over 10% of total profit, and no significant guarantees or other major contracts - The company had no entrustment or contracting arrangements during the reporting period200201 - The company leased out some idle properties to improve asset utilization, but had no significant leasing projects202 - The company had no significant guarantee situations during the reporting period203 - The company had no other significant contracts during the reporting period206 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 period207 Significant Matters of Company Subsidiaries The company's subsidiaries had no significant matters during the reporting period - The company's subsidiaries had no significant matters during the reporting period208 Share Changes and Shareholder Information This section details the company's share capital structure, shareholder information, and any changes in directors', supervisors', or senior management's shareholdings Share Change Information The company's total share capital and share structure remained unchanged during the reporting period, with no changes in restricted or unrestricted shares Share Change Information | Share Type | Number Before Change (shares) | Proportion Before Change | Increase/Decrease in Current Change (shares) | Number After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 268,285 | 0.02% | 0 | 268,285 | 0.02% | | Of which: Shares held by domestic natural persons | 268,285 | 0.02% | 0 | 268,285 | 0.02% | | II. Unrestricted Shares | 1,169,533,231 | 99.98% | 0 | 1,169,533,231 | 99.98% | | Of which: RMB ordinary shares | 1,169,533,231 | 99.98% | 0 | 1,169,533,231 | 99.98% | | III. Total Shares | 1,169,801,516 | 100.00% | 0 | 1,169,801,516 | 100.00% | - During the reporting period, the company's total share capital and share structure remained unchanged212 Securities Issuance and Listing The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period212 Number of Shareholders and Shareholding Information At the end of the reporting period, the company had 28,940 common shareholders, with Fei Zhanbo and Fei Zhanjun, brothers and controlling shareholders, holding 35.86% and 8.56% respectively - At the end of the reporting period, the total number of common shareholders was 28,940213 Shareholding Information of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at Period-End (shares) | Number of Unrestricted Shares Held (shares) | Pledge, Mark, or Freeze Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Fei Zhanbo | Domestic natural person | 35.86% | 419,461,659.00 | 419,461,659.00 | Pledged 100,000,000 | | Fei Zhanjun | Domestic natural person | 8.56% | 100,085,495.00 | 100,085,495.00 | N/A 0 | | Wang Jun | Domestic natural person | 4.59% | 53,698,219.00 | 53,698,219.00 | N/A 0 | - Fei Zhanbo and Fei Zhanjun are brothers, serving as the company's controlling shareholders, actual controllers, and parties acting in concert214 - The company's dedicated share repurchase securities account holds 33,123,175 shares, representing a 2.83% shareholding proportion214 Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, or senior management during the reporting period, as detailed in the 2024 annual report - There were no changes in the shareholdings of the company's directors, supervisors, or senior management during the reporting period216 Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period217 - The company's actual controller remained unchanged during the reporting period217 Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period218 Bond-Related Information This section confirms that the company had no bond-related matters during the reporting period Bond-Related Information The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period220 Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with notes on accounting policies and financial risks Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited222 Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2025, offering a comprehensive view of its financial position, operating results, and cash flows - The consolidated balance sheet shows total assets of 3,504,780,961.10 yuan at period-end, with total current assets of 2,440,979,097.36 yuan224 - The consolidated income statement shows total operating revenue of 446,897,487.83 yuan and net profit attributable to parent company shareholders of 78,903,344.52 yuan for H1 2025232233 - The consolidated cash flow statement shows net cash flow from operating activities of 22,622,796.38 yuan and net cash flow from investing activities of -53,916,515.29 yuan237 Company Overview Suntront Technology Co., Ltd., established on November 2, 2000, with a registered capital of 1,169,801,516 yuan, is headquartered in Zhengzhou and specializes in R&D, production, and sales of IoT smart meters and smart utility solutions - The company's predecessor was Henan Suntront Technology Co., Ltd., established on November 2, 2000253 - The company's registered capital was ultimately changed to 1,169,801,516 yuan264 - The company primarily engages in the R&D, production, and sales of IoT smart water meters, gas meters, heat meters, industrial and commercial smart electromagnetic flowmeters, smart water management, and smart agricultural water conservation products265 - These financial statements were approved for issuance by the company's Board of Directors on August 20, 2025265 Basis of Financial Statement Preparation These financial statements are prepared in accordance with accounting standards issued by the Ministry of Finance and relevant disclosure regulations of the China Securities Regulatory Commission, on a going concern basis, with no identified issues affecting the ability to continue as a going concern for the next 12 months - These financial statements are prepared in accordance with the Enterprise Accounting Standards issued by the Ministry of Finance and relevant disclosure regulations of the China Securities Regulatory Commission267 - The company prepares its financial statements on a going concern basis, and no matters affecting its ability to continue as a going concern have been identified268 Significant Accounting Policies and Estimates This section details the company's significant accounting policies and estimates, including business combinations, consolidated financial statements, financial instrument classification and measurement, receivables, inventories, fixed assets, intangible assets, revenue recognition, government grants, and deferred income tax, ensuring the truthfulness and accuracy of financial reporting - The financial statements prepared by the company comply with Enterprise Accounting Standards, truthfully and completely reflecting its financial position, operating results, and cash flows270 - The company adopts an annual accounting period, with a 12-month operating cycle, and its functional currency is RMB271272273 - Financial assets are classified into three categories based on business model and contractual cash flow characteristics: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss298 - Revenue is recognized when the customer obtains control of the related goods, and is recognized based on the progress of performance or the point of transfer of control360362 Taxation This section discloses the company's main tax categories and rates, including VAT, urban maintenance and construction tax, corporate income tax, education surcharge, and local education surcharge, along with various tax incentives for high-tech enterprises and small and micro-enterprises Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sale of goods or provision of taxable services | 3%, 5%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7%, 5% | | Corporate Income Tax | Taxable income | 15%, 16.5%, 20%, 25% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | - Suntront Technology and Shanghai Kent, as high-tech enterprises, are subject to a 15% corporate income tax rate386 - The company and Shanghai Kent are eligible for a 100% super deduction for R&D expenses before tax387 - Some subsidiaries are eligible for preferential corporate income tax policies for small and micro-enterprises, where the portion of annual taxable income not exceeding 1 million yuan is reduced by 25% and taxed at a 20% rate387388 Notes to Consolidated Financial Statement Items This section provides detailed disclosures on the period-end balances, beginning balances, and current period changes for each consolidated financial statement item, highlighting growth in revenue and net profit, shifts in asset composition, and identified risks with corresponding countermeasures Overview of Major Consolidated Financial Data Changes | Item | Period-End Balance (yuan) | Beginning Balance (yuan) | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 501,975,776.71 | 570,212,216.20 | Decrease | | Financial Assets Held for Trading | 891,696,745.93 | 790,394,549.95 | Increase | | Accounts Receivable | 551,289,532.16 | 509,308,500.25 | Increase | | Inventories | 332,880,435.80 | 301,465,029.15 | Increase | | Construction in Progress | 390,940,096.19 | 346,312,614.65 | Increase | | Contract Liabilities | 46,206,084.42 | 29,321,958.82 | Increase | | Operating Revenue | 446,897,487.83 | 359,275,275.12 | Increase | | Net Profit | 78,899,851.39 | 56,972,713.68 | Increase | | R&D Expenses | 31,800,775.68 | 42,036,059.15 | Decrease | - At the end of the reporting period, the total assets with restricted ownership or use rights amounted to 63,895,581.73 yuan, primarily including cash and cash equivalents, fixed assets, and intangible assets512 - Asset impairment provisions of 22,432,651.89 yuan were recognized in the current period, mainly comprising inventory write-downs, impairment losses on contract performance costs, and impairment losses on contract assets572585 R&D Expenses The company's total R&D expenses for H1 2025 amounted to 31.80 million yuan, a 24.35% year-on-year decrease, all of which were expensed, with employee compensation and material costs being the main expenditure items Composition of R&D Expenses | Item | Amount Incurred in Current Period (yuan) | Amount Incurred in Prior Period (yuan) | | :--- | :--- | :--- | | Employee Compensation | 27,977,608.61 | 32,513,698.81 | | Material Costs | 1,772,517.06 | 6,264,595.02 | | Testing Fees | 588,258.53 | 706,618.36 | | Depreciation Expenses | 487,848.31 | 1,125,436.87 | | Total | 31,800,775.68 | 42,036,059.15 | - All R&D expenses for the current period were expensed and not capitalized591 Changes in Consolidation Scope During the reporting period, the company did not lose control over any subsidiaries through transactions, but the consolidation scope changed due to the deregistration of Hangzhou Xintian High Technology Co., Ltd. in June 2025 - During the reporting period, the company did not experience any transactions or events resulting in the loss of control over subsidiaries592 - In June 2025, the company deregistered its subsidiary, Hangzhou Xintian High Technology Co., Ltd592 Interests in Other Entities This section discloses the company's interests in subsidiaries, joint ventures, and associates, including 12 subsidiaries like Beijing Digital Base Heng and Henan Suntront IoT, with Shanghai Kent Instrument Co., Ltd. being a significant non-wholly-owned subsidiary - The company owns Beijing Digital Base Heng, Henan Suntront IoT, and 10 other subsidiaries, with most shareholding percentages at 100%594595 - Shanghai Kent Instrument Co., Ltd. is a significant non-wholly-owned subsidiary, with a minority shareholder stake of 0.0001% and profit/loss attributable to minority shareholders of 639.00 yuan for the current period597 - The total carrying value of the company's investments in joint ventures and associates is 12,317,609.37 yuan and 86,376,304.83 yuan, respectively601 Government Grants At the end of the reporting period, the company had no government grants recognized as receivables, but deferred income of 19.80 million yuan related to assets, with 12.35 million yuan in other income recognized as government grants in the current period - Government grants recognized as receivables at the end of the reporting period were 0602 - The liability item related to government grants is deferred income of 19,800,000.00 yuan, which is asset-related603 - Government grants recognized in profit or loss for the current period primarily consisted of other income totaling 12,352,260.38 yuan605 Risks Related to Financial Instruments The company's financial instruments include cash, receivables, investments, and payables, exposing it to market risks (foreign exchange, interest rate, other price risks), credit risk, and liquidity risk, which are managed through various monitoring and control measures - The company's main financial instruments include cash and cash equivalents, notes receivable, accounts receivable, financing for receivables, equity investments, borrowings, and accounts payable605 - The company faces foreign exchange risk (primarily related to USD and HKD), interest rate risk (floating-rate bank borrowings), and other price risks (equity instrument investments and financial assets held for trading)606 - The company faces credit risk, primarily from credit sales of accounts receivable and contract assets, and has established an accounts receivable management system for tracking and monitoring607 - The company has sufficient funds and no liquidity risk, managed by maintaining adequate cash and cash equivalents608 Fair Value Disclosures At period-end, the company's assets measured at fair value totaled 926.81 million yuan, primarily comprising financial assets held for trading, other debt investments, and other equity instrument investments, with various valuation techniques applied across different fair value levels Fair Value of Assets Measured at Fair Value at Period-End | Item | Level 1 Fair Value Measurement (yuan) | Level 3 Fair Value Measurement (yuan) | Total (yuan) | | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 213,883,614.55 | 677,813,131.38 | 891,696,745.93 | | Other Debt Investments | | 4,335,708.73 | 4,335,708.73 | | Other Equity Instrument Investments | | 30,775,393.89 | 30,775,393.89 | | Total Assets Measured at Fair Value on a Recurring Basis | 213,883,614.55 | 712,924,234.00 | 926,807,848.55 | - Fair value for equity instrument investments like stocks is determined by the closing price at year-end (Level 1)611 - Fair value for non-principal-guaranteed income certificates and private placement asset management products issued by securities firms is recognized based on the securities firm's valuation (Level 2)612 - Principal-guaranteed wealth management products use “principal + accumulated accrued interest calculated at the expected minimum annualized return rate” as fair value (Level 3)613 Related Parties and Related Party Transactions The company's ultimate controlling parties are brothers Fei Zhanbo and Fei Zhanjun. This section discloses the company's subsidiaries, joint ventures, associates, and other related parties, including transactions for goods, services, and leases, as well as key management personnel compensation and related party receivables/payables - The company's ultimate controlling parties are brothers Fei Zhanbo and Fei Zhanjun[615](index=615&type=