力合科技(300800) - 2025 Q2 - 季度财报

Section I. Important Notice, Table of Contents, and Definitions Important Notice The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[3] - The company's responsible person, head of accounting work, and head of accounting department declare the financial report is true, accurate, and complete[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for this reporting period[4] Table of Contents This section lists the structured table of contents for the semi-annual report, including eight main chapters and their starting page numbers Report Chapter Directory | Chapter | Title | Page | | :--- | :--- | :--- | | Section I | Important Notice, Table of Contents, and Definitions | 2 | | Section II | Company Profile and Key Financial Indicators | 7 | | Section III | Management Discussion and Analysis | 10 | | Section IV | Corporate Governance, Environment, and Society | 30 | | Section V | Significant Matters | 31 | | Section VI | Share Changes and Shareholder Information | 35 | | Section VII | Bond-Related Information | 39 | | Section VIII | Financial Report | 40 | Definitions This section defines key terms and concepts used in the report, covering environmental monitoring, carbon neutrality, and digitalization - Environmental Monitoring: The process of using physical, chemical, biological, and other technical means to monitor and analyze various factors affecting environmental quality, and to assess environmental quality status and trends through the obtained data[13] - Online Environmental Monitoring: Real-time online analysis using automatic monitoring equipment, with data uploaded to achieve real-time monitoring of the monitored objects[13] - Carbon Neutrality: The total amount of greenhouse gas emissions directly or indirectly produced within a certain period, offset by activities such as afforestation, energy conservation, and emission reduction[14] Section II. Company Profile and Key Financial Indicators Company Profile Lihe Technology (Hunan) Co., Ltd. is a company listed on the Shenzhen Stock Exchange with stock code 300800, and its legal representative is Zou Xiongwei - Company stock abbreviation: Lihe Technology, stock code: 300800, stock exchange: Shenzhen Stock Exchange[16] - The company's legal representative is Zou Xiongwei[16] Contact Persons and Information This section discloses the detailed contact information for the company's Board Secretary Hou Liang and Securities Affairs Representative Liao Yun Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Hou Liang | No. 668 Qingshan Road, High-tech Zone, Changsha City, Hunan Province | 0731-89910909 | 0731-88801768 | hl@lihero.com | | Securities Affairs Representative | Liao Yun | No. 668 Qingshan Road, High-tech Zone, Changsha City, Hunan Province | 0731-89910909 | 0731-88801768 | hl@lihero.com | Other Information The company's registered address, office address, website, email, information disclosure, and registration status remained unchanged during the reporting period - The company's registered address, office address and postal code, company website, and email address remained unchanged during the reporting period[18] - The securities exchange website and media name and URL for the company's semi-annual report disclosure, and the location for the company's semi-annual report, remained unchanged during the reporting period[19] - The company's registration status remained unchanged during the reporting period[20] Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue and net profit attributable to shareholders increased year-on-year, while net cash flow from operating activities slightly decreased Key Accounting Data and Financial Indicators (Year-on-Year Change) | Indicator | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 359,749,116.02 | 343,951,546.67 | 4.59% | | Net Profit Attributable to Shareholders of Listed Company | 15,072,936.34 | 13,206,889.95 | 14.13% | | Net Profit Attributable to Shareholders of Listed Company, Excluding Non-Recurring Gains and Losses | 10,756,278.19 | 8,200,429.22 | 31.17% | | Net Cash Flow from Operating Activities | -117,725,003.06 | -117,195,777.77 | -0.45% | | Basic Earnings Per Share (RMB/share) | 0.06 | 0.06 | 0.00% | | Diluted Earnings Per Share (RMB/share) | 0.06 | 0.06 | 0.00% | | Weighted Average Return on Net Assets | 0.74% | 0.64% | 0.10% | | Period-End Indicators | Current Period-End (RMB) | Prior Year-End (RMB) | Change (%) | | Total Assets | 2,399,140,879.24 | 2,453,916,441.28 | -2.23% | | Net Assets Attributable to Shareholders of Listed Company | 2,000,111,748.75 | 2,022,105,315.52 | -1.09% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between financial reports prepared under international or overseas accounting standards and Chinese accounting standards - The company reported no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[22] - The company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[23] Non-Recurring Gains and Losses Items and Amounts The company's total non-recurring gains and losses for the reporting period amounted to RMB 4,316,658.15, primarily from government grants and fair value changes of financial assets and liabilities Non-Recurring Gains and Losses Items and Amounts | Item | Amount (RMB) | Explanation | | :--- | :--- | :--- | | Gains and losses from disposal of non-current assets | -1,375.15 | | | Government grants recognized in current profit or loss | 1,019,265.57 | | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains and losses from disposal of financial assets and liabilities | 4,708,179.56 | | | Reversal of impairment provisions for receivables subject to individual impairment testing | 362,100.00 | | | Other non-operating income and expenses apart from the above items | -1,010,180.65 | | | Less: Income tax impact | 758,562.39 | | | Impact on minority interests (after tax) | 2,768.79 | | | Total | 4,316,658.15 | | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring gains and losses[26][27] Section III. Management Discussion and Analysis Main Business Activities During the Reporting Period The company, as an environmental monitoring instrument manufacturer and solution provider, focuses on R&D, production, sales, and operation services of environmental monitoring systems Main Business, Main Products, and Their Uses The company's main business involves environmental monitoring system R&D, production, sales, and operation services, with core products including water quality, air/flue gas, and information management systems - The company is an advanced environmental monitoring instrument manufacturer and a comprehensive solution provider for environmental monitoring systems[29] - Its main business includes the R&D, production, sales, and operation services of environmental monitoring systems[29] - Main products include water quality monitoring systems, air/flue gas monitoring systems, and environmental monitoring information management systems, along with environmental monitoring system operation services, third-party testing, and monitoring consulting services[29] Business Model The company's diversified business model includes sales of environmental monitoring systems, software development for information management systems, and operation services - The company primarily generates revenue and profit through the sale of environmental monitoring systems, software development for environmental monitoring information management systems, and operation services[33] - Raw material procurement mainly involves standardized and non-standardized components, with an established list of qualified suppliers[35] - The production model is based on order demand and historical sales planning; information management systems are developed and tested by the R&D center, while frequently required equipment is pre-produced[35] - The sales model is direct sales, primarily securing orders through public bidding (government departments, public institutions) and business negotiations (enterprise clients)[36] Industry Development Environment National policies continue to drive demand for ecological environmental monitoring, emphasizing pollution control, green transformation, and digitalization, creating new market opportunities - The 20th National Congress report proposed continuing to fight the battle against pollution, accelerating the green and low-carbon transformation of development methods, and actively and steadily promoting carbon peaking and carbon neutrality[37] - The 2025 National Ecological Environmental Protection Work Conference emphasized comprehensively implementing the tasks of deepening ecological civilization system reform and vigorously promoting the construction of a Beautiful China[38] - In May 2025, the Ministry of Ecology and Environment, together with multiple departments, issued the "Action Plan for Beautiful River and Lake Protection and Construction (2025-2027)", aiming for a beautiful river and lake completion rate of approximately 40% by 2027[38][39] - In May 2025, the Ecological Environment Monitoring Work Conference emphasized actively and orderly promoting the digital and intelligent transformation of ecological environmental monitoring and effectively enhancing remote sensing monitoring capabilities[39] - In June 2025, the General Office of the CPC Central Committee and the General Office of the State Council proposed opinions on comprehensively promoting river protection and governance, aiming for a basically complete modern basin flood control and disaster reduction system and comprehensively improved river ecological environment quality by 2035[40] - In July 2025, the General Office of the Ministry of Ecology and Environment required strengthening off-site supervision and enforcement of key pollution sources and accelerating the establishment of an integrated "sky-land-sea" monitoring network[40] - In July 2025, the Central Urban Work Conference deployed the construction of green, low-carbon, beautiful cities and safe, resilient cities, addressing issues such as urban air pollution control, drinking water source protection, and new pollutant governance[41] Technology R&D and Promotion The company achieved breakthroughs in water quality, atmospheric monitoring, and information product development, emphasizing independent innovation and digitalization - The company achieved breakthrough progress in key areas such as independent R&D of core components, localization of instrument equipment, and expansion of product application scenarios[42] - In the water environment monitoring field, the company continuously improved its product system, deepened the digital and intelligent upgrade of products, reducing operation and maintenance frequency from 1-2 times per week to once a month[43] - The company innovatively developed a rainfall-surface water-groundwater collaborative intelligent monitoring system, initially building a "point-line-surface" three-dimensional monitoring network[43] - In the automated laboratory field, adopting a "pipeline + workstation + robot" model, the company launched a new generation of fully automatic AI laboratory intelligent detection system, improving sample circulation efficiency by over 30%[45] - In atmospheric monitoring, the company independently developed high-precision spectrometers and launched new generation OCEC analyzers, pollutant source mercury analyzers, and flue gas dust meters, significantly reducing costs and enhancing product competitiveness[47] - In terms of new technology R&D for information platforms and artificial intelligence, the company launched the Mengxi Zhimai large model, integrating its independently developed "Xiaohe" intelligent agent system, to build a three-level architecture of "data-intelligent agent-business scenario"[47] - As of June 30, 2025, the company owned a total of 327 valid intellectual property rights, including 123 invention patents, 90 utility model patents, 27 design patents, and 87 software copyrights[50] Analysis of Core Competencies The company's core strengths lie in its robust R&D, comprehensive product and service offerings, superior product quality, efficient market presence, and experienced team Strong Technical R&D and Independent Innovation Capabilities The company maintains a strong focus on independent innovation, possessing a mature R&D team, 327 valid intellectual property rights, and participation in numerous national research projects and standard-setting initiatives - As of June 30, 2025, the company owned a total of 327 valid intellectual property rights, including 123 invention patents, 90 utility model patents, 27 design patents, and 87 software copyrights[51] - The company led or participated in over 30 major scientific research projects, including national key R&D programs, and participated in the formulation of over 60 national, industry, and local technical standards[51] - The company possesses innovation platforms such as the "National Engineering Research Center for Advanced Technologies and Equipment for Water Environmental Pollution Monitoring" and was awarded the title of "Specialized, Refined, Unique, and New 'Little Giant' Enterprise" by the Ministry of Industry and Information Technology[52] - The project "Creation and Application of Drinking Water Safety Assurance Technology System," in which the company participated, received the First Prize of the National Science and Technology Progress Award[52] Comprehensive Product and Service Structure The company offers a full spectrum of environmental monitoring solutions, from core instrument development to system integration, software, and operational services, with a strong focus on water quality and advanced gas monitoring - The company possesses capabilities in the development and manufacturing of core environmental monitoring instruments, automated control and integration of environmental monitoring systems, and environmental monitoring management software development, while also providing environmental monitoring system operation services and third-party testing services[54] - In the water quality monitoring field, the company led the establishment of the "National Engineering Research Center for Advanced Technologies and Equipment for Water Environmental Pollution Monitoring," playing an industry-leading role in automatic monitoring technologies and instrument development for heavy metals, organic pollutants, and other indicators[54] - In the gas monitoring field, the company overcame challenges in independent R&D of core detectors and key technologies, achieving a localization rate of over 95% for instrument components, meeting the demands for multi-scenario intelligent monitoring and smart operation and maintenance management[56] - The company independently developed a C++/Lua-based microservice architecture, adapting to localized operating systems, databases, servers, and middleware, creating an integrated instrument-base station-platform localized software system to ensure independent, secure, and controllable data[58] - By building an "AI + machine vision + large model" technology system, the company launched the Mengxi Zhimai large model for the monitoring industry, integrating the "Xiaohe" intelligent agent system, to complete the entire decision chain in environmental monitoring from data anomaly detection, problem diagnosis, source analysis, inference, to solution generation[58] Product Quality and Performance Advantages As a leader in integrated environmental monitoring solutions, the company ensures high product quality, accurate data, and stable system operation through proprietary R&D and localization of core components - The company completely resolved key technical challenges such as online instrument quality control, remote fault diagnosis, and multi-scenario monitoring function switching[60] - The company continuously promoted independent R&D of high-performance detectors, temperature/pressure/flow controllers, and other core components, achieving import substitution and developing localized, stable, and reliable automatic monitoring instruments[60] - This effectively ensured product quality and performance, guaranteeing the accuracy, completeness, traceability of monitoring data, and the stability of monitoring system operations[60] Market Promotion and Operation Service Advantages With seven domestic business regions and an overseas division, the company boasts an experienced operation service team, providing efficient customer response and high-standard services - The company established 7 major business regions across China (Northeast, North China, Southwest, Central China, East China, South China, Northwest) and an overseas business division[61] - An experienced and technically strong operation service team was established, along with a relatively systematic and comprehensive market promotion and operation service system[61] - The service team covers over 200 cities, responding to requests within 2 hours and arriving on-site within 24 hours, providing remote diagnosis and rapid fault repair[62] R&D and Management Team Advantages The company has a stable, highly skilled R&D team recognized for innovation and an experienced management team with deep industry understanding - The company has formed a well-structured, professionally competent, innovative, and stable R&D team, comprising professionals from various disciplines such as analytical chemistry, environmental science, and bioengineering[63] - The R&D team was awarded the title of "Hunan Province Enterprise Technology Innovation Leading Team" by the Hunan Provincial Party Committee Organization Department[63] - The company's management team has long been engaged in the R&D, production, sales, and operation of environmental monitoring systems, possessing a deep understanding and keen insight into the industry[63] Analysis of Main Business During the reporting period, the company's main business revenue and net profit both increased year-on-year, with operation services and environmental monitoring systems being key revenue drivers Year-on-Year Changes in Key Financial Data | Indicator | Current Period (RMB) | Prior Period (RMB) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 359,749,116.02 | 343,951,546.67 | 4.59% | | | Operating Cost | 231,062,195.13 | 228,092,875.47 | 1.30% | | | Selling Expenses | 57,050,902.68 | 46,720,399.91 | 22.11% | | | Administrative Expenses | 21,788,674.85 | 20,133,915.35 | 8.22% | | | Financial Expenses | -3,131,608.59 | -4,758,993.98 | 34.20% | Primarily due to a decrease in interest income in the current period | | Income Tax Expense | -3,918,426.41 | -2,135,703.47 | -83.47% | Primarily due to a decrease in deferred income tax expense in the current period | | R&D Investment | 48,887,609.48 | 43,144,910.31 | 13.31% | | | Net Cash Flow from Operating Activities | -117,725,003.06 | -117,195,777.77 | -0.45% | | | Net Cash Flow from Investing Activities | 163,495,353.98 | 42,588,846.47 | 283.89% | Primarily due to an increase in matured and redeemed bank structured deposits in the current period | | Net Cash Flow from Financing Activities | -38,775,704.37 | -87,051,465.79 | 55.46% | Primarily due to payment for share repurchases in the prior period | | Net Increase in Cash and Cash Equivalents | 6,964,577.96 | -161,658,397.09 | 104.31% | Primarily due to an increase in net cash flow from investing and financing activities in the current period | Products or Services Accounting for Over 10% of Revenue | By Product or Service | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin (%) | Operating Revenue Year-on-Year Change (%) | Operating Cost Year-on-Year Change (%) | Gross Margin Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operation Services | 216,446,609.76 | 150,204,068.94 | 30.60% | 4.03% | 5.63% | -1.05% | | Environmental Monitoring Systems | 127,747,243.42 | 72,023,969.53 | 43.62% | 7.28% | -9.03% | 10.11% | - There were no significant changes in the company's profit composition or sources of profit during the reporting period[66] Analysis of Non-Main Business Non-main business activities primarily included investment income, asset impairment, non-operating income, and expenses, with investment income being the largest contributor Non-Main Business Analysis | Item | Amount (RMB) | Proportion of Total Profit (%) | Explanation of Cause | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 9,742,779.82 | 86.69% | Primarily from bank wealth management product income and dividend income | No | | Asset Impairment | -34,026.31 | -0.30% | Primarily due to provisions for inventory depreciation and contract asset impairment | Yes | | Non-Operating Income | 53,858.60 | 0.48% | Primarily due to government grants unrelated to ordinary business activities | No | | Non-Operating Expenses | 1,068,028.74 | 9.50% | Primarily due to donation expenses | No | Analysis of Assets and Liabilities The company's total assets and net assets attributable to shareholders decreased, while monetary funds significantly declined due to structured deposits, and trading financial assets and accounts receivable increased Significant Changes in Asset Composition | Item | Amount at End of Current Period (RMB) | Proportion of Total Assets (%) | Amount at End of Prior Year (RMB) | Proportion of Total Assets (%) | Change in Proportion (%) | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 414,681,846.33 | 17.28% | 690,313,217.44 | 28.13% | -10.85% | Primarily due to the purchase of structured deposits | | Accounts Receivable | 603,133,158.83 | 25.14% | 520,442,395.43 | 21.21% | 3.93% | | | Inventories | 206,308,233.18 | 8.60% | 186,094,551.13 | 7.58% | 1.02% | | | Trading Financial Assets | 537,000,000.00 | 22.38% | 448,000,000.00 | 18.26% | 4.12% | | | Debt Investments | 0.00 | 0.00% | 105,674,166.67 | 4.31% | -4.31% | | | Non-current Assets Due Within One Year | 107,624,166.67 | 4.49% | 0.00 | 0.00% | 4.49% | | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (RMB) | Amount Purchased in Current Period (RMB) | Amount Sold in Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 448,000,000.00 | 951,150,000.00 | 862,150,000.00 | 537,000,000.00 | | Other Equity Instrument Investments | 129,944,716.98 | 0.00 | 0.00 | 129,944,716.98 | | Total | 577,944,716.98 | 951,150,000.00 | 862,150,000.00 | 666,944,716.98 | Asset Rights Restricted as of the End of the Reporting Period | Item | Book Balance (RMB) | Type of Restriction | Restriction Details | | :--- | :--- | :--- | :--- | | Monetary Funds | 552,365.94 | Other | Performance guarantee deposit | | Monetary Funds | 12,620,719.40 | Other | Accrued interest on time deposits | | Non-current Assets Due Within One Year | 7,324,166.67 | Other | Accrued interest on non-transferable time deposits | | Other Non-current Assets | 300,000.00 | Other | Credit enhancement deposit | | Non-current Assets Due Within One Year | 300,000.00 | Other | Credit enhancement deposit | | Total | 21,097,252.01 | | | Analysis of Investment Status The company's entrusted wealth management amounted to RMB 951.15 million, with RMB 537 million outstanding at period-end, primarily in bank wealth management products Financial Assets Measured at Fair Value | Asset Category | Initial Investment Cost (RMB) | Amount Purchased in Current Period (RMB) | Amount Sold in Current Period (RMB) | Ending Balance (RMB) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | | Other | 360,000,000.00 | 722,150,000.00 | 585,150,000.00 | 497,000,000.00 | Own Funds | | Other | 88,000,000.00 | 229,000,000.00 | 277,000,000.00 | 40,000,000.00 | Raised Funds | | Total | 448,000,000.00 | 951,150,000.00 | 862,150,000.00 | 537,000,000.00 | | Overall Use of Raised Funds | Year of Raising | Method of Raising | Net Raised Funds (RMB 10,000) | Total Raised Funds Used (RMB 10,000) | Proportion of Raised Funds Used at Period-End (%) | Total Unused Raised Funds (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | | 2019 | Initial Public Offering | 92,800.79 | 91,080.30 | 98.15% | 6,972.37 | - The completion deadlines for the "Operation Service System Construction Project" and "R&D Center Construction Project" have been extended to June 2026[84][85] - The "Yangtze River Basin and Bohai Bay Water Quality Patrol Monitoring Project" and "Environmental Monitoring System Expansion Project" have been terminated, with the remaining raised funds permanently supplementing working capital[85] Overview of Entrusted Wealth Management During the Reporting Period | Specific Type | Source of Funds for Entrusted Wealth Management | Amount of Entrusted Wealth Management (RMB 10,000) | Unmatured Balance (RMB 10,000) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Raised Funds | 22,900 | 4,000 | | Bank Wealth Management Products | Own Funds | 72,215 | 49,700 | | Total | | 95,115 | 53,700 | Significant Asset and Equity Sales The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell significant assets during the reporting period[91] - The company did not sell significant equity during the reporting period[92] Analysis of Major Holding and Participating Companies This section details the financial information of Beijing Zhonghe Intelligent Testing Technology Service Co., Ltd., a key subsidiary, which reported a net profit of RMB 2,528,565.55 Financial Status of Major Subsidiaries | Company Name | Company Type | Main Business | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Zhonghe Intelligent Testing Technology Service Co., Ltd. | Subsidiary | Inspection and testing services; instrument sales; environmental consulting services; ecological resource monitoring, etc. | 10,000,000.00 | 29,747,951.79 | 18,384,535.15 | 17,396,055.42 | 2,663,757.25 | 2,528,565.55 | - The company did not acquire or dispose of any subsidiaries during the reporting period[93] Information on 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 period[94] Risks Faced by the Company and Countermeasures The company faces risks from policy changes, market competition, new business development, and management challenges due to growth, addressed by innovation, product diversification, and improved management - The company faces risks from changes in industry policies, as market demand in the environmental monitoring equipment industry is clearly policy-driven[94] - The company faces risks from intensified market competition, which may lead to slower sales revenue growth and declining profit margins[95] - The company faces risks that new market and new business development may not meet expectations, as new business areas have not yet achieved large-scale application[97] - The company faces management risks arising from the implementation of fundraising projects and the expansion of its business scale, which impose higher requirements on operational management, human resources, finance, and internal control[98] - Countermeasures include adhering to independent innovation, enriching product reserves, undertaking major national scientific research projects, participating in industry standard formulation, actively exploring new business areas, innovating business models, and improving internal controls[96][97][98] Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period On May 6, 2025, the company held an online performance briefing for 2024 via "Panorama Roadshow World," open to all investors - On May 6, 2025, the company held its 2024 annual online performance briefing via "Panorama Roadshow World," open to all investors[99] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company did not formulate a market value management system[100] - The company did not disclose a valuation enhancement plan[100] Implementation of "Quality and Return Dual Enhancement" Action Plan The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan during the reporting period - The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan[101] Section IV. Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, or senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period[103] Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[104] Implementation of Company 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 during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[105] Environmental Information Disclosure The listed company and its major subsidiaries were not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries were not included in the list of enterprises required to disclose environmental information by law[106] Social Responsibility The company actively fulfills its social responsibilities by conducting water quality monitoring, providing research platforms, participating in environmental emergency responses, and making donations - The company continuously conducted automatic water quality patrol monitoring in the main stream of the Yangtze River, with over 118 cumulative rounds of operation, obtaining over 7 million valid monitoring data records[106] - The company provided open research platform services to scientific research institutions and universities such as the Institute of Hydrobiology, Chinese Academy of Sciences, and Nanjing University[106] - The company participated in emergency response efforts for incidents such as abnormal thallium concentration in Hunan Leishui River and crude benzene leakage caused by a tanker rollover in Yongzhou[106] - During the reporting period, the company donated a total of RMB 1.0638 million to the Peking University Education Foundation and the Central Environmental Authority of Sri Lanka[106] Section V. Significant Matters Commitments Fulfilled or Overdue by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period The company reported no commitments fulfilled or overdue by its controlling shareholder, shareholders, related parties, acquirers, or the company itself during the reporting period - The company reported no commitments fulfilled or overdue by its controlling shareholder, shareholders, related parties, acquirers, or the company itself during and as of the end of the reporting period[108] Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company The company reported no non-operating funds occupied by its controlling shareholder or other related parties from the listed company during the reporting period - The company reported no non-operating funds occupied by its controlling shareholder or other related parties from the listed company during the reporting period[109] Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[110] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[111] Explanations from the Board of Directors, Supervisory Board, and Audit Committee Regarding the Accounting Firm's "Non-Standard Audit Report" for the Current Period This explanation is not applicable as the company did not have a non-standard audit report during the reporting period - Not applicable[112] Explanations from the Board of Directors Regarding the "Non-Standard Audit Report" for the Prior Year This explanation is not applicable as the company did not have a non-standard audit report during the reporting period - Not applicable[112] Bankruptcy and Reorganization Matters The company did not experience any bankruptcy or reorganization matters during the reporting period - The company did not experience any bankruptcy or reorganization matters during the reporting period[112] Litigation Matters The company had no significant litigation or arbitration matters, with other minor cases mostly in progress or concluded, not expected to have a material impact - The company had no significant litigation or arbitration matters during the current reporting period[113] Other Litigation Matters | Basic Information on Litigation (Arbitration) | Amount Involved (RMB 10,000) | Whether Provision for Liabilities Formed | Progress of Litigation (Arbitration) | Outcome and Impact of Litigation (Arbitration) | | :--- | :--- | :--- | :--- | :--- | | Other litigation and arbitration not meeting the threshold for significant litigation (company as plaintiff/applicant) | 678.7 | No | 12 litigation (arbitration) cases, of which 4 have been concluded, 5 are in execution, and 3 are in trial | The litigation is in the trial (or already ruled) stage, and all cases involve the plaintiff or applicant seeking to collect contract payments, which will not have a significant impact on the company | | Other litigation and arbitration not meeting the threshold for significant litigation (company as defendant/respondent) | 27.3 | No | 2 civil litigation cases have been concluded | All litigation cases have been concluded and will not have a significant impact on the company | Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[115] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller There were no integrity issues concerning the company, its controlling shareholder, or actual controller during the reporting period - Not applicable[116] Significant Related Party Transactions The company reported no significant related party transactions during the reporting period, including those related to daily operations, asset/equity sales, joint investments, or debt - The company had no related party transactions related to daily operations during the reporting period[116] - The company had no related party transactions involving asset or equity acquisitions or sales during the reporting period[117] - The company had no related party transactions involving joint external investments during the reporting period[118] - There were no related party creditor-debtor transactions during the reporting period[119] - There were no deposits, loans, credit lines, or other financial business between the company and related financial companies, or between the company's controlled financial companies and related parties[120][121] - The company had no other significant related party transactions during the reporting period[122] Significant Contracts and Their Performance The company had no significant contracts related to trusteeship, contracting, leasing, guarantees, or other material agreements during the reporting period - The company had no trusteeship situations during the reporting period[123] - The company had no contracting situations during the reporting period[124] - The company had no leasing situations during the reporting period[125] - The company had no significant guarantee situations during the reporting period[126] - The company had no other significant contracts during the reporting period[128] Explanation of Other Significant Matters The company reported no other significant matters requiring explanation during the reporting period - The company reported no other significant matters requiring explanation during the reporting period[129] Significant Matters of Company Subsidiaries There were no significant matters concerning the company's subsidiaries during the reporting period - Not applicable[130] Section VI. Share Changes and Shareholder Information Share Change Status The company's total share capital remained unchanged during the reporting period, with the structure of restricted and unrestricted shares stable Share Change Status | 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 | 2,377,500 | 1.00% | 0 | 2,377,500 | 1.00% | | Of which: Shares held by domestic natural persons | 2,377,500 | 1.00% | 0 | 2,377,500 | 1.00% | | II. Unrestricted Shares | 234,381,500.00 | 99.00% | 0 | 234,381,500.00 | 99.00% | | Of which: RMB ordinary shares | 234,381,500.00 | 99.00% | 0 | 234,381,500.00 | 99.00% | | III. Total Shares | 236,759,000.00 | 100.00% | 0 | 236,759,000.00 | 100.00% | - The reasons for share changes, approval status, transfer status, and progress of share repurchase implementation are all not applicable for the company during the reporting period[134] 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 period[134] Number of Shareholders and Shareholding Status As of the end of the reporting period, the company had 12,463 ordinary shareholders, with Zhang Guangsheng holding 40.03% and some shares pledged - Total number of ordinary shareholders at the end of the reporting period: 12,463[135] Shareholding Status 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 Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Number of Pledged Shares (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhang Guangsheng | Domestic Natural Person | 40.03% | 94,774,700 | 0 | 94,774,700 | Pledged | 4,000,000 | | Zuo Songming | Domestic Natural Person | 8.74% | 20,700,000 | 0 | 20,700,000 | Pledged | 4,000,000 | | China Three Gorges Capital Holdings Co., Ltd. | State-owned Legal Person | 4.85% | 11,486,850 | 0 | 11,486,850 | Not applicable | 0 | | Guoke Ruihua Venture Capital Enterprise | Domestic Non-state-owned Legal Person | 1.44% | 3,400,000 | 0 | 3,400,000 | Not applicable | 0 | | Huang Jiakuan | Domestic Natural Person | 1.12% | 2,655,750 | 0 | 2,655,750 | Not applicable | 0 | | Sun Yue | Domestic Natural Person | 0.69% | 1,629,900 | 0 | 1,629,900 | Not applicable | 0 | | Chen Feng | Domestic Natural Person | 0.61% | 1,445,000 | 0 | 1,445,000 | Not applicable | 0 | | BARCLAYS BANK PLC | Overseas Legal Person | 0.60% | 1,415,300 | 0 | 1,415,300 | Not applicable | 0 | | MORGAN STANLEY & CO. INTERNATIONAL PLC. | Overseas Legal Person | 0.60% | 1,412,814 | 0 | 1,412,814 | Not applicable | 0 | | Zhang Gangqiang | Domestic Natural Person | 0.53% | 1,245,500 | 0 | 1,245,500 | Not applicable | 0 | - The company's dedicated share repurchase securities account holds 5,627,350 shares[137] Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[138] 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 period[139] - The company's actual controller remained unchanged during the reporting period[139] Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[140] Section VII. Bond-Related Information Bond-Related Information The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[142] Section VIII. Financial Report Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[144] 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 1. Consolidated Balance Sheet As of the end of the reporting period, the company's consolidated total assets were RMB 2,399,140,879.24, total liabilities RMB 396,541,534.36, and total owners' equity RMB 2,002,599,344.88 Consolidated Balance Sheet Summary | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Total Current Assets | 1,998,867,203.57 | 1,960,964,225.86 | | Total Non-current Assets | 400,273,675.67 | 492,952,215.42 | | Total Assets | 2,399,140,879.24 | 2,453,916,441.28 | | Total Current Liabilities | 337,119,602.64 | 375,838,141.67 | | Total Non-current Liabilities | 59,421,931.72 | 53,570,088.79 | | Total Liabilities | 396,541,534.36 | 429,408,230.46 | | Total Owners' Equity Attributable to Parent Company | 2,000,111,748.75 | 2,022,105,315.52 | | Minority Interests | 2,487,596.13 | 2,402,895.30 | | Total Owners' Equity | 2,002,599,344.88 | 2,024,508,210.82 | | Total Liabilities and Owners' Equity | 2,399,140,879.24 | 2,453,916,441.28 | 2. Parent Company Balance Sheet As of the end of the reporting period, the parent company's total assets were RMB 2,392,057,330.71, total liabilities RMB 397,172,377.53, and total owners' equity RMB 1,994,884,953.18 Parent Company Balance Sheet Summary | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Total Current Assets | 1,939,629,120.02 | 1,895,872,742.87 | | Total Non-current Assets | 452,428,210.69 | 538,418,185.06 | | Total Assets | 2,392,057,330.71 | 2,434,290,927.93 | | Total Current Liabilities | 340,183,154.74 | 360,663,712.40 | | Total Non-current Liabilities | 56,989,222.79 | 52,164,374.92 | | Total Liabilities | 397,172,377.53 | 412,828,087.32 | | Total Owners' Equity | 1,994,884,953.18 | 2,021,462,840.61 | | Total Liabilities and Owners' Equity | 2,392,057,330.71 | 2,434,290,927.93 | 3. Consolidated Income Statement During the reporting period, the company's consolidated total operating revenue was RMB 359,749,116.02, and net profit was RMB 15,157,637.17 Consolidated Income Statement Summary | Item | 2025 Semi-Annual (RMB) | 2024 Semi-Annual (RMB) | | :--- | :--- | :--- | | I. Total Operating Revenue | 359,749,116.02 | 343,951,546.67 | | II. Total Operating Costs | 358,465,422.16 | 336,264,143.24 | | III. Operating Profit | 12,253,380.90 | 11,773,830.96 | | IV. Total Profit | 11,239,210.76 | 10,425,687.95 | | V. Net Profit | 15,157,637.17 | 12,561,391.42 | | Net Profit Attributable to Shareholders of Parent Company | 15,072,936.34 | 13,206,889.95 | | Minority Interests Income/Loss | 84,700.83 | -645,498.53 | | VI. Net Other Comprehensive Income After Tax | -85,439.11 | 0.00 | | VII. Total Comprehensive Income | 15,072,198.06 | 12,561,391.42 | | Total Comprehensive Income Attributable to Owners of Parent Company | 14,987,497.23 | 13,206,889.95 | | Total Comprehensive Income Attributable to Minority Shareholders | 84,700.83 | -645,498.53 | | VIII. Earnings Per Share: Basic Earnings Per Share | 0.06 | 0.06 | | Diluted Earnings Per Share | 0.06 | 0.06 | 4. Parent Company Income Statement During the reporting period, the parent company's operating revenue was RMB 345,265,220.13, and net profit was RMB 10,403,176.57 Parent Company Income Statement Summary | Item | 2025 Semi-Annual (RMB) | 2024 Semi-Annual (RMB) | | :--- | :--- | :--- | | I. Operating Revenue | 345,265,220.13 | 348,013,827.40 | | Less: Operating Cost | 231,841,036.86 | 234,164,442.90 | | II. Operating Profit | 7,054,192.97 | 21,408,400.16 | | III. Total Profit | 6,041,238.29 | 20,060,339.77 | | IV. Net Profit | 10,403,176.57 | 21,413,603.15 | | VI. Total Comprehensive Income | 10,403,176.57 | 21,413,603.15 | 5. Consolidated Cash Flow Statement During the reporting period, the company's net cash flow from operating activities was -RMB 117,725,003.06, from investing activities RMB 163,495,353.98, and from financing activities -RMB 38,775,704.37 Consolidated Cash Flow Statement Summary | Item | 2025 Semi-Annual (RMB) | 2024 Semi-Annual (RMB) | | :--- | :--- | :--- | | I. Net Cash Flow from Operating Activities | -117,725,003.06 | -117,195,777.77 | | II. Net Cash Flow from Investing Activities | 163,495,353.98 | 42,588,846.47 | | III. Net Cash Flow from Financing Activities | -38,775,704.37 | -87,051,465.79 | | IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents | -30,068.59 | 0.00 | | V. Net Increase in Cash and Cash Equivalents | 6,964,577.96 | -161,658,397.09 | | VI. Cash and Cash Equivalents at End of Period | 401,508,760.99 | 408,313,763.76 | 6. Parent Company Cash Flow Statement During the reporting period, the parent company's net cash flow from operating activities was -RMB 94,034,473.35, from investing activities RMB 157,435,146.56, and from financing activities -RMB 38,081,679.16 Parent Company Cash Flow Statement Summary | Item | 2025 Semi-Annual (RMB) | 2024 Semi-Annual (RMB) | | :--- | :--- | :--- | | I. Net Cash Flow from Operating Activities | -94,034,473.35 | -88,591,433.08 | | II. Net Cash Flow from Investing Activities | 157,435,146.56 | 39,828,199.62 | | III. Net Cash Flow from Financing Activities | -38,081,679.16 | -86,871,420.61 | | IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents | 36,623.81 | 0.00 | | V. Net Increase in Cash and Cash Equivalents | 25,355,617.86 | -135,634,654.07 | | VI. Cash and Cash Equivalents at End of Period | 373,579,495.32 | 364,287,854.50 | 7. Consolidated Statement of Changes in Owners' Equity During the reporting period, the company's consolidated total owners' equity decreased by RMB 21,908,865.94, primarily due to net profit and profit distribution Consolidated Statement of Changes in Owners' Equity | Item | Beginning Balance (RMB) | Increase/Decrease in Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | | Share Capital | 236,759,000.00 | 0.00 | 236,759,000.00 | | Capital Reserve | 756,811,281.38 | 0.00 | 756,811,281.38 | | Less: Treasury Stock | 50,029,568.84 | 0.00 | 50,029,568.84 | | Other Comprehensive Income | 65,520.93 | -85,439.11 | -19,918.18 | | Surplus Reserve | 113,084,674.98 | 0.00 | 113,084,674.98 | | Retained Earnings | 965,414,407.07 | -21,908,127.66 | 943,506,279.41 | | Total Owners' Equity Attributable to Parent Company | 2,022,105,315.52 | -21,993,566.77 | 2,000,111,748.75 | | Minority Interests | 2,402,895.30 | 84,700.83 | 2,487,596.13 | | Total Owners' Equity | 2,024,508,210.82 | -21,908,865.94 | 2,002,599,344.88 | 8. Parent Company Statement of Changes in Owners' Equity During the reporting period, the parent company's total owners' equity decreased by RMB 26,577,887.43, mainly influenced by net profit and profit distribution Parent Company Statement of Changes in Owners' Equity | Item | Beginning Balance (RMB) | Increase/Decrease in Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | | Share Capital | 236,759,000.00 | 0.00 | 236,759,000.00 | | Capital Reserve | 756,733,491.99 | 0.00 | 756,733,491.99 | | Less: Treasury Stock | 50,029,568.84 | 0.00 | 50,029,568.84 | | Surplus Reserve | 113,084,674.98 | 0.00 | 113,084,674.98 | | Retained Earnings | 964,915,242.48 | -26,577,887.43 | 938,337,355.05 | | Total Owners' Equity | 2,021,462,840.61 | -26,577,887.43 | 1,994,884,953.18 | Company Basic Information Lihe Technology (Hunan) Co., Ltd., established on May 29, 1997, and listed on November 6, 2019, specializes in environmental monitoring systems R&D, production, sales, and operation services - Lihe Technology (Hunan) Co., Ltd. was registered on May 29, 1997, and listed on the Shenzhen Stock Exchange on November 6, 2019[175] - As of June 30, 2025, the company's registered capital was RMB 236.759 million, and its legal representative is Zou Xiongwei[175] - The company's main business includes the R&D, production, sales, and operation services of environmental monitoring systems, with main products including water quality monitoring systems, air/flue gas monitoring systems, and environmental monitoring information management systems[175] Basis of Financial Statement Preparation The financial statements are prepared on a going concern basis, adhering to the Accounting Standards for Business Enterprises issued by the Ministry of Finance, and the company maintains going concern capability for at least 12 months - The company's financial statements are prepared on a going concern basis, in accordance with the "Accounting Standards for Business Enterprises - Basic Standards" and specific accounting standards issued by the Ministry of Finance, based on actual transactions and events[176] - The company has the ability to continue as a going concern for at least 12 months from the end of the reporting period, with no significant matters affecting its going concern ability[177] Significant Accounting Policies and Accounting Estimates This section details the company's significant accounting policies and estimates, covering financial instruments, fixed assets, intangible assets, revenue recognition, and government grants, all in compliance with enterprise accounting standards - The financial statements prepared by the company comply with the requirements of the "Accounting Standards for Business Enterprises," truly and completely reflecting the financial position as of June 30, 2025, and the operating results and cash flows for the first half of 2025, among other relevant information[179] - The company classifies financial assets into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in current profit or loss[199][200] - The company adopts a simplified approach for notes receivable, accounts receivable financing, and accounts receivable, consistently measuring loss provisions based on expected credit losses over the entire lifetime[208][210] - Depreciation of fixed assets is calculated using the straight-line method, with depreciation periods of 30 years for buildings, 5 years for transportation equipment, 2-8 years for instruments and electronic equipment, and 5-8 years for others[234] - Amortization of intangible assets is calculated using the straight-line method, with amortization periods of 50 years for land use rights, 2-20 years for patented technologies, and 5 years for software[240] - The company recognizes revenue when it satisfies a performance obligation in a contract, i.e., when the customer obtains control of the related goods or services, at the transaction price allocated to that performance obligation[255] Taxation The company's main taxes include VAT, urban maintenance and construction tax, and corporate income tax, benefiting from high-tech enterprise status and software product VAT refunds Major Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Product sales revenue, taxable services | 13%, 9%, 6%, 5% | | Urban Maintenance and Construction Tax | Actually paid turnover tax | 7% | | Corporate Income Tax | Taxable income | 15% | | Education Surcharge | Actually paid turnover tax | 3% | | Local Education Surcharge | Actually paid turnover tax | 2% | - Lihe Technology (Hunan) Co., Ltd. enjoys corporate income tax preferential policies for high-tech enterprises, with a corporate income tax rate of 15%[282] - Some subsidiaries meet the criteria for small and micro-profit enterprises, enjoying preferential tax policies for small and micro-profit enterprises, with taxable income calculated at 25% and corporate income tax paid at a rate of 20%[283] - For the sale of self-developed and produced computer software products, the company implements a "collect first, refund later" policy for the portion of VAT actual tax burden exceeding 3%[284] Notes to Consolidated Financial Statement Items This section provides detailed notes for various consolidated financial statement items, including assets, liabilities, equity, income, and expenses, offering comprehensive financial insights Composition of Monetary Funds | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Cash on hand | 40,837.46 | 41,637.46 | | Bank deposits | 401,4