祥龙电业(600769) - 2025 Q2 - 季度财报

Important Notice This section provides crucial disclaimers and confirmations regarding the unaudited nature of the report, financial statement accuracy, and forward-looking statements - This semi-annual report is unaudited[5] - The company's responsible person, head of accounting, and head of accounting department declare that the financial report in the semi-annual report is true, accurate, and complete[5] - The board of directors' resolution for profit distribution or capital reserve capitalization plan for this reporting period is "none"[6] - Forward-looking statements in this report, such as future plans and development strategies, do not constitute a substantive commitment to investors, and investors are advised to be aware of investment risks[6] - There is no non-operating appropriation of funds by controlling shareholders or other related parties[7] - There are no external guarantees provided in violation of prescribed decision-making procedures[7] - There is no situation where more than half of the directors cannot guarantee the truthfulness, accuracy, and completeness of the company's disclosed semi-annual report[7] - For significant risk warnings, please refer to the "Risks the Company May Face" content in Section III "Management Discussion and Analysis"[7] Section I Definitions This section provides definitions for key terms and abbreviations used throughout the report, ensuring clarity and consistency - China Securities Regulatory Commission, CSRC: Refers to the China Securities Regulatory Commission[18] - Shanghai Stock Exchange, Exchange: Refers to the Shanghai Stock Exchange[18] - Gehua Group: Refers to Wuhan Gehua Group Co., Ltd[18] - The Group, the Company, Xianglong Electric Power: Refers to Wuhan Xianglong Electric Power Co., Ltd[18] - Gehua Construction: Refers to Wuhan Gehua Construction and Installation Co., Ltd[18] Section II Company Profile and Key Financial Indicators This section outlines the company's basic information and presents a summary of its key financial performance and position indicators for the reporting period - Company's Chinese Name: Wuhan Xianglong Electric Power Co., Ltd., Abbreviation: Xianglong Electric Power[13] - Company's Legal Representative: Dong Yaojun[13] - Company's Registered Address: No. 1059 Gaoxin Avenue, East Lake New Technology Development Zone, Wuhan City, Hubei Province[15] - Company's Designated Information Disclosure Newspapers: "China Securities Journal", "Shanghai Securities News", Website for Semi-Annual Report: www.sse.com[16](index=16&type=chunk) VII. Key Accounting Data and Financial Indicators This section details the company's key accounting data and financial indicators for the reporting period, including revenue, profit, cash flow, and assets, along with non-recurring gains and losses Key Accounting Data (Current Reporting Period vs. Prior Year Period) | Indicator | Current Reporting Period (Jan-Jun) (CNY) | Prior Year Period (CNY) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 39,827,906.99 | 39,779,916.19 | 0.12 | | Total Profit | 16,778,206.70 | 10,583,455.18 | 58.53 | | Net Profit Attributable to Shareholders of Listed Company | 14,313,649.85 | 7,807,997.60 | 83.32 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 4,613,948.45 | 7,434,314.38 | -37.94 | | Net Cash Flow from Operating Activities | 35,662,184.98 | 33,848,369.34 | 5.36 | | Period-End Data | Current Period-End (CNY) | Prior Year-End (CNY) | Period-End Change (%) | | Net Assets Attributable to Shareholders of Listed Company | 117,278,148.60 | 102,964,498.75 | 13.90 | | Total Assets | 368,977,996.67 | 332,756,015.10 | 10.89 | Key Financial Indicators (Current Reporting Period vs. Prior Year Period) | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.0382 | 0.0208 | 83.65 | | Diluted Earnings Per Share (CNY/share) | 0.0382 | 0.0208 | 83.65 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (CNY/share) | 0.0123 | 0.0198 | -37.88 | | Weighted Average Return on Net Assets (%) | 13.00% | 8.30% | increased by 4.7 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 4.19% | 7.90% | decreased by 3.71 percentage points | Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Government grants recognized in current profit or loss | 29,660.00 | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises | 1,441,073.56 | | Reversal of impairment provisions for individually assessed receivables | 11,508,273.92 | | Other non-operating income and expenses apart from the above | -46,072.28 | | Less: Income tax impact | 3,233,233.80 | | Total | 9,699,701.40 | Section III Management Discussion and Analysis This section provides an in-depth discussion and analysis of the company's industry, operations, core competitiveness, and financial performance during the reporting period I. Description of the Company's Industry and Main Business Operations During the Reporting Period This section describes the characteristics and trends of the water supply and construction industries, detailing the company's regional coverage, services, technical advantages, and challenges in its main businesses - The water supply industry is strictly regulated by the government, operates under a government-guided pricing mechanism, and is characterized by high capital intensity, long investment return cycles, weak demand cyclicity, and strong regional monopolistic features[26] - The water supply industry is in a critical transition from "scale expansion" to "quality improvement," with intelligent and quality-oriented development becoming the main theme[26] - The development of the construction industry is closely linked to macroeconomic cycles and policy guidance, exhibiting strong cyclical fluctuations, and entered a phase of structural adjustment during the reporting period[26] - The company's water supply business primarily covers the central area of Wuhan New City, serving leading enterprises in the semiconductor and LCD industries, and has built a modern smart water plant with a daily supply capacity of 100,000 tons[27] - The company's construction business primarily focuses on the Wuhan New City area, undertaking small and medium-sized projects such as municipal, housing, decoration, and landscaping, with a relatively limited revenue scale[28] II. Discussion and Analysis of Operations During the reporting period, the company maintained steady progress amidst complex international and external challenges, focusing on its core water supply and construction businesses to enhance operational efficiency and resilience - The company focused on its two main businesses, water supply and construction, continuously strengthening the foundation for high-quality development and demonstrating strong resilience and adaptability[30] - The water supply business established a three-tier emergency guarantee system through a "preventive maintenance + rapid response" dual mechanism, achieving "zero interruption" operation and successfully recovering significant historical arrears[30] - The construction business strictly adhered to safety standards, strengthened lean management throughout the project lifecycle, and actively expanded into external markets to enhance business resilience and risk resistance[30] - Fully ensured the construction progress of key projects, accelerated the construction of the third phase of the water plant project, and obtained special approval for flood control assessment on schedule[31] - Continuously increased investment in technological innovation and R&D, deepened the construction of a smart water platform, and completed the automatic control system for clear water reservoir levels and intelligent transformation of high and low voltage power distribution data[31] - Established a dynamic compliance review mechanism, comprehensively revised the company's articles of association and internal control systems, and deepened the "daily statistics, weekly scheduling, monthly balancing, quarterly reporting, annual auditing" full-cycle operational management system[32] - The company's "TRIZ Innovation Method for Scheduling Applications in High-Fluctuation Industrial Water Supply" project won the second prize in the second Wuhan Innovation Method Competition (Enterprise Group)[32] III. Analysis of Core Competitiveness During the Reporting Period Despite its relatively small overall scale, the company exhibits strong core competitiveness in the water supply sector due to regional monopoly and first-mover advantages, leading to top-tier operating metrics and significant future growth potential - The company's core operating indicators, such as product gross margin, operating cash flow, and revenue stability, are all at the forefront of the industry[34] - The water supply industry has significant regional monopolistic characteristics, and the company's first-mover advantage in the regional market helps enhance performance stability[34] - The company's water supply cost control capabilities, supply stability, and customer service response efficiency are notably advantageous in the regional market[34] - The company's construction business primarily focuses on the regional market, possessing a comparative advantage in undertaking engineering projects within the region[34] - The company's operating area has been included in the planning of the central area of Wuhan New City, indicating broad medium to long-term market growth potential[34] IV. Main Operating Conditions During the Reporting Period This section analyzes the company's main operating conditions during the reporting period, including changes in financial statement items, impact of non-core businesses on profit, asset and liability status, and investment activities (1) Analysis of Main Business This subsection provides a detailed analysis of the company's main business operations, focusing on the changes in key financial statement items and their underlying reasons Analysis Table of Changes in Financial Statement Items | Item | Current Period Amount (CNY) | Prior Year Period Amount (CNY) | Change Ratio (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 39,827,906.99 | 39,779,916.19 | 0.12 | - | | Operating Cost | 27,268,575.75 | 27,605,685.53 | -1.22 | - | | Administrative Expenses | 3,356,738.11 | 2,656,074.10 | 26.38 | - | | Financial Expenses | -325,664.12 | -615,304.23 | 47.07 | Primarily due to a decrease in bank interest earned on operating funds in the current period | | Research and Development Expenses | 14,694.72 | 0 | 100.00 | Primarily due to increased investment in technological R&D in the current period | | Net Cash Flow from Operating Activities | 35,662,184.98 | 33,848,369.34 | 5.36 | - | | Net Cash Flow from Investing Activities | -54,237,471.20 | -5,992,865.26 | -805.03 | Primarily due to increased investment payments in the current period | (2) Explanation of Significant Profit Changes Caused by Non-Core Businesses This subsection explains significant profit changes attributed to non-core business activities, with further details available in the company's public announcements - Significant profit changes due to non-core businesses are detailed in the "Announcement on Provision and Reversal of Asset Impairment Provisions by Wuhan Xianglong Electric Power Co., Ltd." disclosed on the Shanghai Stock Exchange[36] (3) Analysis of Assets and Liabilities This subsection analyzes the company's asset and liability status, highlighting significant changes in key items such as trading financial assets and payables Changes in Assets and Liabilities | Item Name | Current Period-End Amount (CNY) | Proportion of Total Assets at Current Period-End (%) | Prior Year-End Amount (CNY) | Proportion of Total Assets at Prior Year-End (%) | Change Ratio of Current Period-End Amount vs. Prior Year-End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 131,617,224.92 | 35.67 | 78,043,846.82 | 23.45 | 68.65 | Primarily due to increased purchases of wealth management products in the current period | | Receivables Financing | 0 | 0 | 5,700.00 | 0 | -100.00 | Primarily due to the maturity and payment of notes receivable in the current period | | Other Receivables | 6,789,368.07 | 1.84 | 4,814,561.56 | 1.45 | 41.02 | Primarily due to increased operating collection on behalf of others in the current period | | Construction in Progress | 3,936,754.98 | 1.07 | 2,729,668.12 | 0.82 | 44.22 | Primarily due to increased investment in projects under construction in the current period | | Employee Benefits Payable | 498,484.12 | 0.14 | 1,840,095.38 | 0.55 | -72.91 | Primarily due to the payment of employee benefits accrued at the end of the previous period | (4) Analysis of Investment Status This subsection analyzes the company's investment activities, particularly focusing on the composition and changes in financial assets measured at fair value and securities investments Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (CNY) | Fair Value Change Gain/Loss for Current Period (CNY) | Amount Purchased in Current Period (CNY) | Amount Sold/Redeemed in Current Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Stocks | 3,870,000.00 | 280,000.00 | 0 | 0 | 4,150,000.00 | | Others | 74,173,846.82 | 295,771.99 | 55,449,438.11 | 2,451,832.00 | 127,467,224.92 | | Total | 78,043,846.82 | 575,771.99 | 55,449,438.11 | 2,451,832.00 | 131,617,224.92 | Securities Investment Status | Security Type | Security Code | Security Name | Initial Investment Cost (CNY) | Source of Funds | Carrying Value at Beginning of Period (CNY) | Fair Value Change Gain/Loss for Current Period (CNY) | Carrying Value at End of Period (CNY) | Accounting Subject | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Stocks | 601818 | Everbright Bank | 3,158,500 | Own Funds | 3,870,000 | 280,000 | 4,150,000.00 | Trading Financial Assets | V. Other Disclosure Matters This section discloses potential risks faced by the company, including limited revenue scale, high customer concentration, government policy regulation, and macroeconomic fluctuations affecting the construction industry - The company's revenue scale is relatively limited, and customer concentration is high; changes in the operating conditions of key customers may adversely affect the company's business development[44] - The water supply industry is a typical municipal public utility, with water prices and quality standards strictly regulated by government policies, posing risks of business development uncertainty due to policy adjustments[44] - The construction industry is closely related to macroeconomic conditions; cyclical economic fluctuations and changes in economic growth patterns may impact the company's construction business development[44] Section IV Corporate Governance, Environment and Society This section covers corporate governance aspects, including personnel changes, profit distribution plans, employee incentives, environmental disclosures, and social responsibility initiatives - Changes in the company's directors, supervisors, and senior management: no changes[46] - Semi-annual proposed profit distribution plan, capital reserve capitalization plan: No, not applicable[46] - Company's equity incentive plan, employee stock ownership plan, or other employee incentive measures: no progress or changes[47] - The company is not included in the list of enterprises required to disclose environmental information by law[47] - The company did not disclose specific details of its work in consolidating and expanding poverty alleviation achievements, rural revitalization, etc[47] Section V Significant Matters This section details significant events and disclosures, including commitments, related party transactions, litigation, and compliance status, ensuring transparency for stakeholders - Fulfillment of commitments: no applicable matters[48] - Non-operating appropriation of funds by controlling shareholders and other related parties during the reporting period: No[48] - Irregular guarantees: No[48] - The semi-annual report is unaudited[48] - Significant litigation and arbitration matters: The company had no significant litigation or arbitration matters during this reporting period[49] - Suspected violations, penalties, and rectification by the listed company, its directors, supervisors, senior management, controlling shareholders, and actual controllers: No[49] - Explanation of the integrity status of the company, its controlling shareholders, and actual controllers during the reporting period: None[49] X. Significant Related Party Transactions This section discloses the company's significant related party transactions during the reporting period, primarily involving routine purchases and sales of goods and provision of services - The company disclosed the "Announcement on Estimated 2025 Annual Routine Related Party Transactions of Wuhan Xianglong Electric Power Co., Ltd." on March 20, 2025, with an estimated amount of 20 million CNY for routine related party transactions for the company and its subsidiaries in 2025[49] - The actual amount of routine related party transactions completed during the reporting period was 2.0381 million CNY[49] - No related party transactions involving asset or equity acquisition or disposal were disclosed[50] - No significant related party transactions involving joint external investments were disclosed[51] - No related party creditor-debtor relationships were disclosed[51] - No financial business between the company and related financial companies, or between the company's controlled financial companies and related parties, was disclosed[51] Section VI Share Changes and Shareholder Information This section provides details on the company's share capital, shareholder structure, and any changes in shareholdings of major shareholders and management during the reporting period - During the reporting period, there were no changes in the company's total share capital or share structure[53] - As of the end of the reporting period, the total number of shareholders was 29,999[55] Top Ten Shareholders' Shareholding Status | Shareholder Name | Change During Reporting Period (shares) | Number of Shares Held at Period-End (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Wuhan Gehua Group Co., Ltd. | 0 | 75,291,177 | 20.08 | State-owned Legal Person | | Zhong Weilan | -3,180,000 | 10,000,000 | 2.67 | Domestic Natural Person | | Wan Zhonghua | 540,000 | 9,050,000 | 2.41 | Domestic Natural Person | | Fu Qianjun | 0 | 5,360,000 | 1.43 | Domestic Natural Person | | Dai Yuping | 100,000 | 4,370,000 | 1.17 | Domestic Natural Person | | Wang Yuehong | -3,100 | 4,109,000 | 1.10 | Domestic Natural Person | | Wuhan Huayuan Industrial Capital Management Co., Ltd. | 0 | 3,110,000 | 0.83 | State-owned Legal Person | | Liu Yuxian | -112,100 | 2,887,900 | 0.77 | Domestic Natural Person | | Pan Meiying | 810,000 | 2,430,000 | 0.65 | Domestic Natural Person | | Fang Tao | 146,068 | 2,200,068 | 0.59 | Domestic Natural Person | - The company is unaware of any related party relationships among the above shareholders, nor whether they are acting in concert[57] - Changes in shareholdings of directors, supervisors, and senior management: no changes[58] - Changes in controlling shareholder or actual controller: none[59] Section VII Bond-Related Information This section confirms that the company has no outstanding corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[61] - The company has no convertible corporate bonds[61] Section VIII Financial Report This section presents the complete financial statements, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, along with detailed notes - Company's main business: water production and supply; construction and installation; building materials sales[92] - The company's financial statements are prepared on a going concern basis[93] - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, truly and completely reflecting the financial position of the company and the Group as of June 30, 2025, and the operating results and cash flows for the first half of 2025[95] II. Financial Statements This section provides the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025 Consolidated Balance Sheet Key Data (June 30, 2025 vs. December 31, 2024) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 89,331,601.01 | 107,906,887.23 | | Trading Financial Assets | 131,617,224.92 | 78,043,846.82 | | Accounts Receivable | 16,017,596.63 | 16,539,272.84 | | Other Receivables | 6,789,368.07 | 4,814,561.56 | | Inventories | 780,042.94 | 651,079.99 | | Contract Assets | 27,358,548.24 | 25,906,038.31 | | Total Current Assets | 274,290,450.20 | 236,529,065.44 | | Fixed Assets | 77,360,854.10 | 79,628,881.41 | | Construction in Progress | 3,936,754.98 | 2,729,668.12 | | Intangible Assets | 4,895,657.07 | 4,966,098.15 | | Total Assets | 368,977,996.67 | 332,756,015.10 | | Accounts Payable | 51,065,084.60 | 50,536,052.90 | | Employee Benefits Payable | 498,484.12 | 1,840,095.38 | | Taxes Payable | 26,426,186.48 | 27,492,629.70 | | Other Payables | 167,778,241.31 | 144,693,064.13 | | Total Current Liabilities | 249,093,805.54 | 227,185,473.82 | | Total Liabilities | 251,699,848.07 | 229,791,516.35 | | Total Equity Attributable to Parent Company Owners | 117,278,148.60 | 102,964,498.75 | Consolidated Income Statement Key Data (First Half 2025 vs. First Half 2024) | Item | First Half 2025 (CNY) | First Half 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 39,827,906.99 | 39,779,916.19 | | Total Operating Cost | 30,560,825.98 | 29,716,787.73 | | Total Profit | 16,778,206.70 | 10,583,455.18 | | Net Profit | 14,313,649.85 | 7,807,997.60 | | Basic Earnings Per Share (CNY/share) | 0.0382 | 0.0208 | Consolidated Cash Flow Statement Key Data (First Half 2025 vs. First Half 2024) | Item | First Half 2025 (CNY) | First Half 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 35,662,184.98 | 33,848,369.34 | | Net Cash Flow from Investing Activities | -54,237,471.20 | -5,992,865.26 | | Net Cash Flow from Financing Activities | 0 | 0 | | Net Increase in Cash and Cash Equivalents | -18,575,286.22 | 27,855,504.08 | | Cash and Cash Equivalents at Period-End | 89,331,601.01 | 111,672,550.06 | III. Company Profile This section outlines the company's registered and headquarters addresses, along with its primary business activities, including water production and supply, construction, and building materials sales - Company's Registered and Headquarters Address: No. 1059 Gaoxin Avenue, East Lake New Technology Development Zone, Wuhan City, Hubei Province[92] - Company's Main Business: water production and supply; construction and installation; building materials sales[92] IV. Basis of Preparation of Financial Statements This section states that the financial statements are prepared on a going concern basis, with no significant doubts identified regarding the company's ability to continue operations for the next 12 months - The company's financial statements are prepared on a going concern basis[93] - The company assessed its ability to continue as a going concern for 12 months from the end of the reporting period and found no significant doubts regarding the going concern assumption[93] V. Significant Accounting Policies and Accounting Estimates This section details the company's significant accounting policies and estimates, covering revenue recognition, financial instruments, inventories, fixed assets, and government grants, ensuring compliance with accounting standards - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, truly and completely reflecting the financial position of the company and the Group as of June 30, 2025, and the operating results and cash flows for the first half of 2025[95] - The company defines a normal operating cycle as 12 months and uses it as the criterion for classifying assets and liabilities as current or non-current[97] - The company determines the materiality of financial statement items based on whether they influence users' economic decisions, considering both nature and amount[99] - Based on the business model for managing financial assets and their contractual cash flow characteristics, the company classifies financial assets into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[109][110] - The company applies impairment accounting and recognizes bad debt provisions for financial assets measured at amortized cost (including receivables, notes receivable, and accounts receivable), receivables financing, lease receivables, and other receivables, based on expected credit losses[112] - The Group's water supply business typically involves only the performance obligation to transfer goods; revenue is recognized when control of the goods is transferred, which occurs when the goods have been dispatched and a settlement statement consistent with the customer's confirmed water volume is received[153] - Government grants related to ordinary activities are recognized in other income based on the economic substance of the transaction, while those unrelated to ordinary activities are recognized in non-operating income[157] VI. Taxation This section outlines the company's main tax categories and applicable rates, including VAT, urban maintenance and construction tax, education surcharges, and corporate income tax Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable income from sales of self-produced tap water, construction services, and real estate leasing services | 9% (simplified tax method is 3%) | | Urban Maintenance and Construction Tax | Turnover Tax Amount | 7% | | Education Surcharge | Turnover Tax Amount | 3% | | Local Education Surcharge | Turnover Tax Amount | 2% | | Corporate Income Tax | Taxable Income | 25% | VII. Notes to Consolidated Financial Statement Items This section provides detailed explanations for each item in the consolidated financial statements, offering clarity on balances, changes, and underlying accounting treatments 1. Cash and Cash Equivalents This subsection details the composition of cash and cash equivalents, including bank deposits and other monetary funds, at the end of the reporting period Cash and Cash Equivalents Status | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Bank Deposits | 89,328,891.54 | 107,906,324.88 | | Other Cash and Cash Equivalents | 2,709.47 | 562.35 | | Total | 89,331,601.01 | 107,906,887.23 | 2. Trading Financial Assets This subsection details the company's trading financial assets, primarily comprising wealth management products and equity instrument investments, and explains their period-on-period changes Trading Financial Assets Status | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Wealth Management Products | 127,467,224.92 | 74,173,846.82 | | Equity Instrument Investments | 4,150,000.00 | 3,870,000.00 | | Total | 131,617,224.92 | 78,043,846.82 | - The ending balance of trading financial assets increased by 68.65% compared to the beginning of the period, primarily due to increased purchases of wealth management products in the current period[38] 5. Accounts Receivable This subsection provides a detailed breakdown of accounts receivable, including classification by bad debt provision methods, specific individually impaired accounts, and changes in bad debt provisions Disclosure of Accounts Receivable by Bad Debt Provision Method | Category | Book Balance (CNY) | Proportion (%) | Bad Debt Provision (CNY) | Provision Ratio (%) | Carrying Value (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Individually Assessed for Bad Debt Provision | 4,059,152.25 | 11.72 | 4,059,152.25 | 100.00 | 0 | | Group Assessed for Bad Debt Provision | 30,585,958.79 | 88.28 | 14,568,362.16 | 83.63 | 16,017,596.63 | | Total | 34,645,111.04 | / | 18,627,514.41 | / | 16,017,596.63 | Accounts Receivable Individually Assessed for Bad Debt Provision | Name | Book Balance (CNY) | Bad Debt Provision (CNY) | Provision Ratio (%) | Reason for Provision | | :--- | :--- | :--- | :--- | :--- | | Customer 1 | 1,438,227.17 | 1,438,227.17 | 100.00 | Deregistered | | Customer 2 | 1,036,319.13 | 1,036,319.13 | 100.00 | Difficult to Recover | | Customer 3 | 621,597.66 | 621,597.66 | 100.00 | License Revoked | | Customer 4 | 603,008.29 | 603,008.29 | 100.00 | Difficult to Recover | | Customer 5 | 360,000.00 | 360,000.00 | 100.00 | License Revoked | | Total | 4,059,152.25 | 4,059,152.25 | 100.00 | / | Changes in Bad Debt Provisions | Category | Beginning Balance (CNY) | Provision for Current Period (CNY) | Recovered or Reversed in Current Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Individually Assessed | 15,567,426.17 | 0 | 11,508,273.92 | 4,059,152.25 | | Group 1: Water Supply Business | 11,908,719.72 | 148,773.70 | 0 | 12,057,493.42 | | Group 2: Construction Business | 1,207,156.53 | 1,303,712.21 | 0 | 2,510,868.74 | | Total | 28,683,302.42 | 1,452,485.91 | 11,508,273.92 | 18,627,514.41 | - The significant amount of bad debt provision recovered or reversed in the current period was 11,508,273.92 CNY for Customer 6, due to collection[181] 6. Contract Assets This subsection details the company's contract assets, including unsettled projects and quality assurance deposits, and provides a breakdown of bad debt provisions and their changes Contract Assets Status | Item | Carrying Value at Period-End (CNY) | Carrying Value at Beginning of Period (CNY) | | :--- | :--- | :--- | | Unsettled Projects | 27,319,847.51 | 25,862,751.84 | | Quality Assurance Deposits | 38,700.73 | 43,286.47 | | Total | 27,358,548.24 | 25,906,038.31 | Disclosure of Contract Assets by Bad Debt Provision Method | Category | Book Balance (CNY) | Proportion (%) | Bad Debt Provision (CNY) | Provision Ratio (%) | Carrying Value (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Group Assessed for Bad Debt Provision | 36,900,561.84 | 100.00 | 9,542,013.60 | 25.86 | 27,358,548.24 | | Of which: Group 1: Unsettled Projects | 36,854,969.25 | 99.88 | 9,535,121.74 | 25.87 | 27,319,847.51 | | Group 2: Quality Assurance Deposits | 45,592.59 | 0.12 | 6,891.86 | 15.12 | 38,700.73 | | Total | 36,900,561.84 | / | 9,542,013.60 | / | 27,358,548.24 | Contract Asset Bad Debt Provision for Current Period | Item | Beginning Balance (CNY) | Provision for Current Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | | Unsettled Amounts | 5,670,310.78 | 3,864,810.96 | 9,535,121.74 | | Quality Assurance Deposits | 2,306.12 | 4,585.74 | 6,891.86 | | Total | 5,672,616.90 | 3,869,396.70 | 9,542,013.60 | 7. Receivables Financing This subsection presents the classification of receivables financing, noting the complete reduction in the balance due to the maturity and payment of notes receivable Classification of Receivables Financing | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Notes Receivable | 0 | 5,700.00 | | Total | 0 | 5,700.00 | - The ending balance of receivables financing is 0 CNY, a 100% decrease from the beginning of the period, primarily due to the maturity and payment of notes receivable in the current period[38] 9. Other Receivables This subsection provides a detailed breakdown of other receivables, categorized by nature of payment, bad debt provision status, and the top five debtors by outstanding balance Other Receivables Items | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Other Receivables | 6,789,368.07 | 4,814,561.56 | | Total | 6,789,368.07 | 4,814,561.56 | Classification of Other Receivables by Nature of Payment | Nature of Payment | Book Balance at Period-End (CNY) | Book Balance at Beginning of Period (CNY) | | :--- | :--- | :--- | | Receivables from Non-Related Parties | 7,581,205.27 | 7,560,156.37 | | Petty Cash Advances | 32,120.00 | 36,370.50 | | Deposits, Guarantees | 55,000.00 | 55,000.00 | | Wastewater Treatment Fees Collected on Behalf of Others | 6,674,419.43 | 4,613,318.82 | | Total | 14,342,744.70 | 12,264,845.69 | Provision for Bad Debts of Other Receivables | Bad Debt Provision | Balance as of January 1, 2025 (CNY) | Provision for Current Period (CNY) | Balance as of June 30, 2025 (CNY) | | :--- | :--- | :--- | :--- | | Expected Credit Loss for the Next 12 Months | 253,397.98 | 103,092.50 | 356,490.48 | | Expected Credit Loss for the Entire Lifetime (Credit Impairment Occurred) | 7,196,886.15 | 0 | 7,196,886.15 | | Total | 7,450,284.13 | 103,092.50 | 7,553,376.63 | Top Five Other Receivables by Debtor at Period-End | Unit Name | Ending Balance (CNY) | Proportion of Total Other Receivables at Period-End (%) | Nature of Payment | Ageing | Bad Debt Provision at Period-End (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Unit 1 | 2,941,170.80 | 20.51 | Wastewater Treatment Fees Collected on Behalf of Others | Within 1 year | 147,058.54 | | Unit 2 | 2,632,518.02 | 18.35 | Wastewater Treatment Fees Collected on Behalf of Others | Within 1 year | 131,625.90 | | Unit 3 | 1,000,000.00 | 6.97 | Receivables from Non-Related Parties | Over 5 years | 1,000,000.00 | | Unit 4 | 723,393.85 | 5.04 | Receivables from Non-Related Parties | Over 5 years | 723,393.85 | | Unit 5 | 591,167.33 | 4.12 | Wastewater Treatment Fees Collected on Behalf of Others | Within 1 year | 29,558.37 | | Total | 7,888,250.00 | 55.00 | / | / | 2,031,636.66 | 10. Inventories This subsection provides a classification of inventories, primarily raw materials, and details the status of inventory impairment provisions and contract performance cost impairment provisions Inventory Classification | Item | Carrying Value at Period-End (CNY) | Carrying Value at Beginning of Period (CNY) | | :--- | :--- | :--- | | Raw Materials | 780,042.94 | 651,079.99 | | Total | 780,042.94 | 651,079.99 | Inventory Impairment Provisions and Contract Performance Cost Impairment Provisions | Item | Beginning Balance (CNY) | Amount Increased in Current Period (Provision) (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | | Raw Materials | 153,763.89 | 0 | 153,763.89 | | Total | 153,763.89 | 0 | 153,763.89 | 21. Fixed Assets This subsection presents the detailed status of fixed assets, including their original cost, accumulated depreciation, impairment provisions, and net carrying values by category Fixed Assets Items | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Fixed Assets | 77,360,854.10 | 79,628,881.41 | | Total | 77,360,854.10 | 79,628,881.41 | Fixed Assets Status | Item | Buildings and Structures (CNY) | General Equipment (CNY) | Special Equipment (CNY) | Transportation Equipment (CNY) | Other Equipment (CNY) | Total (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | I. Original Cost: | | | | | | | | 1. Beginning Balance | 34,379,305.94 | 35,415,907.34 | 33,618,157.43 | 2,108,074.70 | 1,057,990.74 | 106,579,436.15 | | 4. Ending Balance | 34,379,305.94 | 35,415,907.34 | 33,618,157.43 | 2,108,074.70 | 1,057,990.74 | 106,579,436.15 | | II. Accumulated Depreciation | | | | | | | | 1. Beginning Balance | 4,233,632.34 | 8,007,038.99 | 11,160,943.91 | 1,749,510.26 | 321,429.35 | 25,472,554.85 | | 2. Amount Increased in Current Period (1) Provision | 392,689.98 | 819,575.28 | 939,264.30 | 29,595.96 | 86,901.79 | 2,268,027.31 | | 4. Ending Balance | 4,626,322.32 | 8,826,614.27 | 12,100,208.21 | 1,779,106.22 | 408,331.14 | 27,740,582.16 | | III. Impairment Provisions | | | | | | | | 1. Beginning Balance | 864,788.67 | 2,490.63 | 610,720.59 | 0 | 0 | 1,477,999.89 | | 4. Ending Balance | 864,788.67 | 2,490.63 | 610,720.59 | 0 | 0 | 1,477,999.89 | | IV. Carrying Value | | | | | | | | 1. Carrying Value at Period-End | 28,888,194 | 26,586,802.44 | 20,907,228.63 | 328,968.48 | 649,659.60 | 77,360,854.10 | | 2. Carrying Value at Beginning of Period | 29,280,884.93 | 27,406,377.72 | 21,846,492.93 | 358,564.44 | 736,561.39 | 79,628,881.41 | - The carrying value of buildings and structures for which property certificates have not been obtained is 9,314,618.25 CNY, due to ongoing processing[218] 22. Construction in Progress This subsection provides a list of construction in progress projects, detailing their carrying values at the beginning and end of the period, particularly for significant ongoing projects Construction in Progress Items | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Construction in Progress | 3,936,754.98 | 2,729,668.12 | | Total | 3,936,754.98 | 2,729,668.12 | Changes in Significant Construction in Progress Projects for Current Period | Item | Carrying Value at Period-End (CNY) | Carrying Value at Beginning of Period (CNY) | | :--- | :--- | :--- | | Water Supply 100,000 Tons Expansion Project | 1,275,280.52 | 1,275,280.52 | | Water Supply Phase III Expansion Project | 2,661,474.46 | 1,454,387.60 | | Total | 3,936,754.98 | 2,729,668.12 | 26. Intangible Assets This subsection details the company's intangible assets, primarily land use rights, including their original cost, accumulated amortization, and net carrying values Intangible Assets Status | Item | Land Use Rights (CNY) | Total (CNY) | | :--- | :--- | :--- | | I. Original Cost | | | | 1. Beginning Balance | 8,523,711.70 | 8,523,711.70 | | 4. Ending Balance | 8,523,711.70 | 8,523,711.70 | | II. Accumulated Amortization | | | | 1. Beginning Balance | 3,557,613.55 | 3,557,613.55 | | 2. Amount Increased in Current Period (1) Provision | 70,441.08 | 70,441.08 | | 4. Ending Balance | 3,628,054.63 | 3,628,054.63 | | IV. Carrying Value | | | | 1. Carrying Value at Period-End | 4,895,657.07 | 4,895,657.07 | | 2. Carrying Value at Beginning of Period | 4,966,098.15 | 4,966,098.15 | 27. Goodwill This subsection presents the book value of goodwill, specifically related to the acquisition of Wuhan Gehua Construction and Installation Co., Ltd Goodwill Original Book Value | Name of Investee or Event Leading to Goodwill | Beginning Balance (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | | Wuhan Gehua Construction and Installation Co., Ltd. | 406,210.43 | 406,210.43 | | Total | 406,210.43 | 406,210.43 | 28. Long-Term Prepaid Expenses This subsection details the company's long-term prepaid expenses, including various engineering and renovation projects, and their amortization during the reporting period Long-Term Prepaid Expenses Status | Item | Beginning Balance (CNY) | Amortization Amount for Current Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | | Xianglong Water Plant Greening Project | 1,168,477.94 | 97,511.22 | 1,070,966.72 | | Xianglong Water Plant Dormitory Renovation Project | 627,084.07 | 52,257.00 | 574,827.07 | | Water Supply Phase II Greening | 1,382,142.91 | 78,979.62 | 1,303,163.29 | | Headquarters Office Building Maintenance | 763,801.04 | 45,828.06 | 717,972.98 | | Total | 3,941,505.96 | 274,575.90 | 3,666,930.06 | 29. Deferred Income Tax Assets / Deferred Income Tax Liabilities This subsection provides details on deferred income tax liabilities and unconfirmed deferred income tax assets, including their temporary differences and deductible losses, along with their expiration years Deferred Income Tax Liabilities Before Offset | Item | Taxable Temporary Differences at Period-End (CNY) | Deferred Income Tax Liabilities at Period-End (CNY) | Taxable Temporary Differences at Beginning of Period (CNY) | Deferred Income Tax Liabilities at Beginning of Period (CNY) | | :--- | :--- | :--- | :--- | :--- | | One-time Pre-tax Deduction for Fixed Assets | 9,007,289.68 | 2,251,822.42 | 9,007,289.68 | 2,251,822.42 | | Fair Value Changes of Trading Financial Assets | 1,223,514.82 | 305,878.70 | 1,223,514.82 | 305,878.70 | | Unrealized Profits from Internal Transactions | 193,365.63 | 48,341.41 | 193,365.63 | 48,341.41 | | Total | 10,424,170.13 | 2,606,042.53 | 10,424,170.13 | 2,606,042.53 | Details of Unrecognized Deferred Income Tax Assets | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Deductible Temporary Differences | 37,930,440.41 | 43,437,967.23 | | Deductible Losses | 3,030,768.23 | 3,316,715.03 | | Total | 40,961,208.64 | 46,754,682.26 | Deductible Losses for Unrecognized Deferred Income Tax Assets Expiring in the Following Years | Year | Ending Amount (CNY) | Beginning Amount (CNY) | | :--- | :--- | :--- | | Year 2027 | 0 | 251,887.37 | | Year 2028 | 607,750.02 | 641,809.45 | | Year 2029 | 2,423,018.21 | 2,423,018.21 | | Total | 3,030,768.23 | 3,316,715.03 | 36. Accounts Payable This subsection provides a breakdown of accounts payable by aging, distinguishing between current and non-current amounts, and lists significant overdue accounts with reasons for non-settlement Accounts Payable Listing | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Within 1 year | 27,074,074.42 | 27,907,627.65 | | Over 1 year | 23,991,010.18 | 22,628,425.25 | | Total | 51,065,084.60 | 50,536,052.90 | Significant Accounts Payable Over 1 Year Old or Overdue | Item | Ending Balance (CNY) | Reason for Non-Payment or Carry-Over | | :--- | :--- | :--- | | Unit A | 2,338,687.15 | In project settlement | | Unit B | 3,260,731.88 | In project settlement | | Unit C | 1,911,728.45 | In project settlement | | Unit D | 6,693,479.38 | In project settlement | | Total | 14,204,626.86 | / | 38. Contract Liabilities This subsection details the company's contract liabilities, specifically pre-received water supply income, and their balances at the beginning and end of the reporting period Contract Liabilities Status | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Pre-received Water Supply Income | 17,859.73 | 17,859.73 | | Total | 17,859.73 | 17,859.73 | 39. Employee Benefits Payable This subsection details the changes in employee benefits payable, including short-term compensation and post-employment benefits, and explains their period-on-period variations Employee Benefits Payable Listing | Item | Beginning Balance (CNY) | Increase in Current Period (CNY) | Decrease in Current Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | I. Short-Term Compensation | 1,840,095.38 | 4,533,651.09 | 5,875,262.35 | 498,484.12 | | II. Post-Employment Benefits - Defined Contribution Plans | 0 | 819,567.48 | 819,567.48 | 0 | | Total | 1,840,095.38 | 5,353,218.57 | 6,694,829.83 | 498,484.12 | - The ending balance of employee benefits payable decreased by 72.91% compared to the beginning of the period, primarily due to the payment of employee benefits accrued at the end of the previous period[38] 40. Taxes Payable This subsection provides a detailed breakdown of taxes payable, including VAT, property tax, land use tax, individual income tax, and various surcharges Taxes Payable Status | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Value-Added Tax (VAT) | 1,223,218.23 | 1,669,528.00 | | Property Tax | 23,339.30 | 78,268.25 | | Land Use Tax | 25,768.51 | 552,065.09 | | Individual Income Tax | 5,265.63 | 35,714.98 | | Urban Maintenance and Construction Tax | 8,212,566.79 | 8,217,340.74 | | Education Surcharge | 3,571,396.68 | 3,573,442.66 | | Local Education Surcharge | 4,624,821.43 | 5,961,521.85 | | Other Taxes and Fees | 8,739,809.91 | 7,404,748.13 | | Total | 26,426,186.48 | 27,492,629.70 | 41. Other Payables This subsection details other payables, including dividends payable and other miscellaneous payables categorized by nature, and lists significant overdue amounts with reasons for non-settlement Other Payables Items | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Dividends Payable | 291,457.00 | 291,457.00 | | Other Payables | 167,486,784.31 | 144,401,607.13 | | Total | 167,778,241.31 | 144,693,064.13 | Other Payables by Nature of Payment | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Payables to Non-Related Parties | 4,723,333.36 | 0 | | Collections and Payments on Behalf of Others | 155,474,371.28 | 137,051,635.15 | | Reorganization Pre-received Transfer-in Funds | 2,551,034.61 | 2,551,034.61 | | Unpaid Expenses | 4,279,890.90 | 4,340,783.21 | | Others | 458,154.16 | 458,154.16 | | Total | 167,486,784.31 | 144,401,607.13 | Significant Other Payables Over 1 Year Old or Overdue | Item | Ending Balance (CNY) | Reason for Non-Payment or Carry-Over | | :--- | :--- | :--- | | Unit E | 99,934,221.18 | Not yet settled | | Total | 99,934,221.18 | / | 44. Other Current Liabilities This subsection details the company's other current liabilities, specifically unearned output VAT, and their balances at the beginning and end of the reporting period Other Current Liabilities Status | Item | Ending Balance (CNY) | Beginning Balance (CNY) | | :--- | :--- | :--- | | Unearned Output VAT | 3,307,949.30 | 2,605,771.98 | | Total | 3,307,949.30 | 2,605,771.98 | 53. Share Capital This subsection presents the company's share capital, confirming that the total number of shares and capital structure remained unchanged during the reporting period Share Capital Status | Item | Beginning Balance (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | | Total Shares | 374,977,200.00 | 374,977,200.00 | - During the reporting period, there were no changes in the company's total share capital or share structure[53] 55. Capital Reserve This subsection details the company's capital reserve, specifically capital premium, and confirms no changes occurred during the reporting period Capital Reserve Status | Item | Beginning Balance (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | | Capital Premium (Share Premium) | 367,100,134.05 | 367,100,134.05 | | Total | 367,100,134.05 | 367,100,134.05 | - There were no increases or decreases in capital reserve during the reporting period[261] 57. Other Comprehensive Income This subsection details the company's other comprehensive income, specifically fair value changes in other equity instrument investments, and confirms no changes occurred during the reporting period Other Comprehensive Income Status | Item | Beginning Balance (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | | Fair Value Changes of Other Equity Instrument Investments | -2,000,000.00 | -2,000,000.00 | | Total | -2,000,000.00 | -2,000,000.00 | - There were no changes in other comprehensive income during the reporting period[263] 59. Surplus Reserve This subsection details the company's surplus reserve, specifically statutory surplus reserve, and confirms no changes occurred during the reporting period Surplus Reserve Status | Item | Beginning Balance (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | | Statutory Surplus Reserve | 43,268,878.16 | 43,268,878.16 | | Total | 43,268,878.16 | 43,268,878.16 | - There were no increases or decreases in surplus reserve during the reporting period[265] 60. Retained Earnings This subsection presents the company's retained earnings, including adjustments and the net profit attributable to parent company owners, showing the period-end balance Retained Earnings Status | Item | Current Period (CNY) | Prior Year (CNY) | | :--- | :--- | :--- | | Unappropriated Profit at Prior Period-End Before Adjustment | -680,381,713.46 | -693,194,765.99 | | Add: Net Profit Attributable to Parent Company Owners for Current Period | 14,313,649.85 | 12,813,052.53 | | Retained Earnings at Period-End | -666,068,063.61 | -680,381,713.46 | - Retained earnings at period-end were -666,068,063.61 CNY, an increase of 14,313,649.85 CNY from the beginning of the period[265] 61. Operating Revenue and Operating Cost This subsection details the company's operating revenue and cost, broken down by main business and contract classification, and includes information on unfulfilled performance obligations Operating Revenue and Operating Cost Status | Item | Amount for Current Period (Revenue) (CNY) | Amount for Current Period (Cost) (CNY) | Amount for Prior Period (Revenue) (CNY) | Amount for Prior Period (Cost) (CNY) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 39,827,906.99 | 27,268,575.75 | 39,779,916.19 | 27,605,685.53 | | Total | 39,827,906.99 | 27,268,575.75 | 39,779,916.19 | 27,605,685.53 | Disaggregated Information of Operating Revenue and Operating Cost | Contract Classification | Water Supply Segment (Operating Revenue) (CNY) | Water Supply Segment (Operating Cost) (CNY) | Construction Segment (Operating Revenue) (CNY) | Construction Segment (Operating Cost) (CNY) | Total (Operating Revenue) (CNY) | Total (Operating Cost) (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Water Supply | 23,651,178.04 | 11,769,919.11 | 0 | 0 | 23,651,178.04 | 11,769,919.11 | | Construction Works | 0 | 0 | 16,176,728.95 | 15,498,656.64 | 16,176,728.95 | 15,498,656.64 | | Total | 23,651,178.04 | 11,769,919.11 | 16,176,728.95 | 15,498,656.64 | 39,827,906.99 | 27,268,575.75 | - The revenue amount corresponding to performance obligations from contracts signed but not yet performed or fully performed at the end of this reporting period is 16,860,807.34 CNY, of which 10,000,000.09 CNY is expected to be recognized as revenue in 2026[271] 62. Taxes and Surcharges This subsection details the company's taxes and surcharges incurred during the reporting period, including urban maintenance and construction tax, education surcharges, property tax, and land use tax Taxes and Surcharges Status | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Urban Maintenance and Construction Tax | 8,747.87 | 695.29 | | Education Surcharge | 3,749.09 | 275.48 | | Local Education Surcharge | 2,499.37 | 183.65 | | Property Tax | 168,576.23 | 9,467.90 | | Land Use Tax | 51,537.02 | 51,537.06 | | Stamp Duty | 11,050.64 | 8,020.07 | | Vehicle and Vessel Usage Tax | 321.30 | 152.88 | | Total | 246,481.52 | 70,332.33 | 64. Administrative Expenses This subsection details the company's administrative expenses, including vehicle usage fees, intermediary fees, employee compensation, depreciation, and office expenses, and explains their period-on-period changes Administrative Expenses Status | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Vehicle Usage Fees | 422,669.00 | 14,395.58 | | Intermediary Fees | 295,413.33 | 186,439.27 | | Employee Compensation | 1,943,098.65 | 1,665,733.22 | | Depreciation and Amortization of Assets | 296,178.36 | 131,572.08 | | Office Expenses | 131,994.90 | 44,841.16 | | Insurance Premiums | 140,000.00 | 281,053.46 | | Others | 127,383.87 | 313,591.33 | | Total | 3,356,738.11 | 2,656,074.10 | - Administrative expenses for the current period increased by 26.38% compared to the prior period[35] 65. Research and Development Expenses This subsection details the company's research and development expenses, primarily consisting of depreciation, and explains the significant increase compared to the prior period Research and Development Expenses Status | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Depreciation Expense | 14,694.72 | 0 | | Total | 14,694.72 | 0 | - Research and development expenses for the current period increased by 100% compared to the prior period, primarily due to increased investment in technological R&D in the current period[35] 66. Financial Expenses This subsection details the company's financial expenses, including interest income and bank charges, and explains the decrease compared to the prior period Financial Expenses Status | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Interest Income | -329,880.72 | -617,513.53 | | Bank Charges | 4,216.60 | 2,209.30 | | Total | -325,664.12 | -615,304.23 | - Financial expenses for the current period decreased by 47.07% compared to the prior period, primarily due to a decrease in bank interest earned on operating funds in the current period[35] 67. Other Income This subsection details the company's other income, primarily government grants related to ordinary activities and handling fees for withholding individual income tax Other Income Status | Classified by Nature | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Government Grants Related to Ordinary Activities | 29,660.00 | 0 | | Handling Fee Returns for Withholding Individual Income Tax | 3,165.60 | 2,809.77 | | Total | 32,825.60 | 2,809.77 | 68. Investment Income This subsection details the company's investment income, including gains from holding and disposing of trading financial assets Investment Income Status | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Investment Income from Trading Financial Assets During Holding Period | 119,782.53 | 243,366.62 | | Investment Income from Disposal of Trading Financial Assets | 745,519.04 | 514,639.35 | | Total | 865,301.57 | 758,005.97 | 70. Fair Value Change Gains This subsection details the company's fair value change gains, primarily arising from trading financial assets Fair Value Change Gains Status | Source of Fair Value Change Gains | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Trading Financial Assets | 575,771.99 | -259,761.67 | | Total | 575,771.99 | -259,761.67 | 71. Credit Impairment Losses This subsection details the company's credit impairment losses, including bad debt losses on accounts receivable and other receivables Credit Impairment Losses Status | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Bad Debt Loss on Accounts Receivable | 10,055,788.01 | 301,120.45 | | Bad Debt Loss on Other Receivables | -103,092.50 | 0 | | Total | 9,952,695.51 | 301,120.45 | 72. Asset Impairment Losses This subsection details the company's asset impairment losses, specifically those related to contract assets Asset Impairment Losses Status | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | I. Contract Asset Impairment Losses | -3,869,396.70 | -281,847.80 | | Total | -3,869,396.70 | -281,847.80 | 75. Non-Operating Expenses This subsection details the company's non-operating expenses, specifically other miscellaneous expenses, and their inclusion in non-recurring gains and losses Non-Operating Expenses Status | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | Amount Included in Non-Recurring Gains and Losses for Current Period (CNY) | | :--- | :--- | :--- | :--- | | Others | 46,072.28 | 0 | 46,072.28 | | Total | 46,072.28 | 0 | 46,072.28 | 76. Income Tax Expense This subsection presents the company's income tax expense and the reconciliation process between accounting profit and income tax expense Income Tax Expense Table | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Current Income Tax Expense | 2,464,556.85 | 2,775,457.58 | | Total | 2,464,556.85 | 2,775,457.58 | Reconciliation of Accounting Profit to Income Tax Expense | Item | Amount for Current Period (CNY) | | :--- | :--- | | Total Profit | 16,778,206.70 | | Income Tax Expense Calculated at Statutory/Applicable Tax Rate | 4,194,551.68 | | Impact of Non-Deductible Costs, Expenses, and Losses | 6,259.57 | | Impact of Deductible Losses from Previously Unrecognized Deferred Income Tax Assets | -71,486.70 | | Impact of Deductible Temporary Differences or Deductible Losses from Unrecognized Deferred Income Tax Assets in Current Period | -1,664,767.70 | | Income Tax Expense | 2,464,556.85 | 78. Cash Flow Statement Items This subsection details the cash flows related to operating and investing activities, including interest income, government grants, and payments for long-term assets and financial products Other Cash Received Related to Operating Activities | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Interest Income | 329,880.72 | 617,513.53 | | Government Grant Income | 32,825.60 | 2,809.77 | | Collections and Payments on Behalf of Others | 16,385,260.02 | 21,490,173.66 | | Total | 16,747,966.34 | 22,110,496.96 | Other Cash Paid Related to Operating Activities | Item | Amount for Current Period (CN