振华科技(000733) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions This section provides important notices, the report's table of contents, and definitions of key terms to ensure clarity and accuracy Important Notice The Board of Directors, Supervisory Board, and senior management guarantee the report's accuracy and completeness, noting forward-looking statements are not substantive commitments - The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[4] - Forward-looking statements regarding future plans in this report do not constitute a substantive commitment by the company to investors[5] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[6] Table of Contents The report is clearly structured into nine sections, covering important notices, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond-related information, financial reports, and other submitted data - The report is structured into nine clear sections, covering company operations, finance, governance, and significant matters[8] Definitions This section defines common terms used in the report, including company abbreviations, regulatory bodies, related parties, and the reporting period, to ensure accurate understanding of information - Key terms such as "Company", "CSRC", "SZSE", and "Reporting Period" are clearly defined in the report[14] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and presents key financial data and indicators for the reporting period I. Company Profile This section introduces the basic information of China Zhenhua (Group) Science & Technology Co., Ltd., including stock abbreviation, code, listing exchange, Chinese and foreign names, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Zhenhua Technology | | Stock Code | 000733 | | Listed Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | 中国振华(集团)科技股份有限公司 | | Legal Representative | Yang Liming | II. Contact Persons and Contact Information This section provides contact details for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, fax, and email, for investor communication - The company's Board Secretary is Hu Guangwen, and Securities Affairs Representatives are Cui Lei and Wang Fakuan[17] - The contact address for all is No. 268, North Xintian Avenue, Wudang District, Guiyang City, Guizhou Province[17] III. Other Information During the reporting period, there were no changes in the company's contact information, information disclosure, or document storage locations, with specific details available in the 2024 annual report - The company's registered address, office address, website, and email address remained unchanged during the reporting period[18] - Information disclosure and document storage locations remained unchanged during the reporting period, with details available in the 2024 annual report[19] IV. Key Accounting Data and Financial Indicators In the first half of 2025, the company's operating revenue slightly decreased by 0.83% year-on-year, while net profit attributable to shareholders and basic earnings per share both significantly dropped by over 25%. Net cash flow from operating activities also decreased by 20.30%. Total assets and net assets attributable to shareholders, however, maintained slight growth Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (RMB) | Prior Year Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,409,663,141.44 | 2,429,890,742.95 | -0.83% | | Net Profit Attributable to Shareholders | 311,989,480.19 | 420,136,657.70 | -25.74% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 281,354,587.38 | 370,699,678.18 | -24.10% | | Net Cash Flow from Operating Activities | 948,854,598.40 | 1,190,592,304.14 | -20.30% | | Basic EPS (RMB/share) | 0.5630 | 0.7604 | -25.96% | | Diluted EPS (RMB/share) | 0.5630 | 0.7604 | -25.96% | | Weighted Average ROE | 2.09% | 2.90% | -0.81% | | Period-end | Prior Year-end | Period-end vs. Prior Year-end Change | | | Total Assets | 18,338,976,370.88 | 18,062,430,877.13 | 1.53% | | Net Assets Attributable to Shareholders | 14,980,968,495.80 | 14,749,329,513.19 | 1.57% | V. Differences in Accounting Data Under Domestic and International Accounting Standards During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under International Accounting Standards or foreign accounting standards and Chinese Accounting Standards - During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[22] - During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under foreign accounting standards and Chinese Accounting Standards[23] VI. Non-recurring Gains and Losses and Amounts The company's total non-recurring gains and losses for the first half of 2025 amounted to RMB 30,634,892.81, primarily from government grants, fair value changes of financial assets, and disposal gains/losses of non-current assets Non-recurring Gains and Losses and Amounts for H1 2025 | Item | Amount (RMB) | Explanation | | :--- | :--- | :--- | | Disposal gains/losses of non-current assets | 187,051.40 | | | Government grants included in current profit/loss | 18,501,623.24 | Government grants received by subsidiaries | | Fair value changes of financial assets and liabilities held by non-financial enterprises and gains/losses from disposal of financial assets and liabilities | 14,072,185.13 | Primarily dividends from the parent company's equity in CEFC and fair value changes from structured bank deposits purchased with idle raised funds | | Reversal of impairment provisions for individually tested receivables | 145,755.92 | | | Other non-operating income and expenses apart from the above | 631,575.90 | | | Less: Income tax impact | 2,885,300.45 | | | Minority interest impact (after tax) | 17,998.33 | | | Total | 30,634,892.81 | | - The company does not classify non-recurring gains and losses as recurring gains and losses[26] Section III Management Discussion and Analysis This section provides management's perspective on the company's operations, financial performance, core competitiveness, and risk factors during the reporting period I. Main Business Activities During the Reporting Period The company's main businesses are new electronic components and modern services, with new electronic components being the core, covering four major product categories and solutions widely used in critical sectors like aviation and aerospace - The company's core business is new electronic components, including four major product categories and solutions: basic components, electronic functional materials, hybrid integrated circuits, and application development[28] - Products are widely applied in critical fields such as aviation, aerospace, electronics, weaponry, shipbuilding, and nuclear industry[28] - The company's strategy focuses on six core dimensions: "stimulating endogenous drive, expanding incremental markets, tackling core technologies, gathering key talents, accelerating intelligent upgrades, and building a solid security barrier," promoting digital and intelligent upgrades of production lines and domestic substitution in high-end markets[29] II. Analysis of Core Competitiveness During the reporting period, the company continuously strengthened technological innovation and main business development, achieving multiple breakthroughs in semiconductor discrete devices, general components, electromechanical components, hybrid integrated circuits, power energy, and electronic functional materials - In the field of semiconductor discrete devices, the company achieved breakthroughs in high-voltage superjunction MOS radiation hardening technology and developed multiple high-voltage radiation-hardened MOSFET products[31] - In the field of hybrid integrated circuits, the company achieved breakthroughs in high-reliability thick-film hybrid integrated DC/DC converter bridge circuit technology, further improving product power density[31] - During the reporting period, the company applied for 176 patents (80 invention patents), obtained 118 authorized patents (27 invention patents), and cumulatively holds 1,702 patents (570 invention patents)[32] III. Analysis of Main Business In the first half of 2025, the company's operating revenue slightly decreased by 0.83% year-on-year, while net profit attributable to shareholders significantly dropped by 25.74%, mainly due to product price adjustments and increased operating costs. New electronic components business accounted for 99.01% of total revenue, with the domestic market contributing 99.76% Year-on-Year Changes in Key Financial Data | Indicator | Current Period (RMB) | Prior Year Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,409,663,141.44 | 2,429,890,742.95 | -0.83% | Product price adjustments in the new electronic components sector and an increased proportion of low-value-added products | | Operating Cost | 1,333,377,002.86 | 1,195,807,557.15 | 11.50% | Increased proportion of low-value-added products and rising raw material prices | | Selling Expenses | 129,322,894.56 | 151,283,772.73 | -14.52% | Decrease in sales personnel salaries and business entertainment/expenses | | Administrative Expenses | 312,989,527.43 | 352,884,476.89 | -11.31% | Decrease in administrative personnel salaries and repair expenses | | Financial Expenses | 8,482,842.28 | 7,694,716.50 | 10.24% | Decrease in interest income due to some corporate fixed deposits not yet matured | | Income Tax Expense | 47,081,290.24 | 70,068,065.20 | -32.81% | Decrease in total profit | | R&D Investment | 176,303,492.08 | 198,240,306.69 | -11.07% | Customer demand for some projects not yet confirmed | | Net Cash Flow from Operating Activities | 948,854,598.40 | 1,190,592,304.14 | -20.30% | Decrease in cash received from sales of goods and services, increase in cash paid for purchases of goods and services | | Net Cash Flow from Investing Activities | -175,521,341.03 | -228,704,777.04 | 23.25% | Decrease in cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets | | Net Cash Flow from Financing Activities | -186,024,905.70 | -800,256,383.50 | 76.75% | Decrease in cash dividends distributed and cash paid for debt repayment | | Net Increase in Cash and Cash Equivalents | 587,348,737.35 | 161,778,890.92 | 263.06% | | | Other Income | 25,695,850.36 | 48,115,759.64 | -46.60% | Decrease in government grants received | Operating Revenue Composition (by Product) | Product | Current Period Amount (RMB) | % of Operating Revenue | Prior Year Period Amount (RMB) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | New Electronic Components | 2,385,819,219.16 | 99.01% | 2,408,724,665.46 | 99.13% | -0.95% | | Modern Services | 23,843,922.28 | 0.99% | 21,166,077.49 | 0.87% | 12.65% | - There were no significant changes in the company's profit structure or sources of profit during the reporting period[36] IV. Analysis of Non-Core Business During the reporting period, non-core businesses impacted total profit, with investment income accounting for 1.96%, fair value change gains/losses for 2.46%, asset impairment losses for -19.27%, and credit impairment losses for -17.91% Impact of Non-Core Business on Total Profit | Item | Amount (RMB) | % of Total Profit | Reason for Change | | :--- | :--- | :--- | :--- | | Investment Income | 7,021,058.45 | 1.96% | Investment income from associates recognized under equity method; cash dividends from equity in CEFC during the reporting period | | Fair Value Change Gains/Losses | 8,848,888.89 | 2.46% | Fair value change gains from structured bank deposits purchased with temporarily idle raised funds during the reporting period | | Asset Impairment | -69,218,752.46 | -19.27% | Inventory impairment provision based on net realizable value during the reporting period | | Credit Impairment Losses | -64,327,704.50 | -17.91% | Credit impairment losses for receivables calculated based on historical data during the reporting period | V. Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets increased by 1.53% year-on-year. In terms of asset structure, cash, accounts receivable, and inventory all increased, with accounts receivable showing the largest increase due to extended collection periods. On the liability side, employee compensation payable and contract liabilities increased, while notes receivable and long-term borrowings significantly decreased 1、Significant Changes in Asset Composition At the end of the reporting period, the proportion of cash, accounts receivable, and inventory in total assets all increased, with accounts receivable increasing by 5.00% primarily due to extended collection periods in the new electronic components sector. Notes receivable decreased by 7.78%, mainly due to the maturity and acceptance of commercial bills Significant Changes in Asset Composition | Item | Period-end Amount (RMB) | % of Total Assets | Year-end Last Year Amount (RMB) | % of Total Assets | % Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash | 3,813,905,151.17 | 20.80% | 3,226,556,413.82 | 17.86% | 2.94% | Maturity and acceptance of notes receivable and decrease in tax payments | | Accounts Receivable | 5,563,322,502.71 | 30.34% | 4,577,863,060.31 | 25.34% | 5.00% | Extended collection period in the new electronic components sector | | Inventory | 2,469,121,466.40 | 13.46% | 2,243,419,188.51 | 12.42% | 1.04% | Increase in goods in transit compared to the beginning of the period | | Notes Receivable | 540,889,284.05 | 2.95% | 1,938,175,545.55 | 10.73% | -7.78% | Maturity and acceptance of commercial bills receivable in the new electronic components sector | | Employee Compensation Payable | 54,275,014.13 | 0.30% | 15,961,385.52 | 0.09% | 0.21% | Employee compensation extracted by some subsidiaries not yet fully disbursed | 2、Major Overseas Assets The company had no major overseas assets during the reporting period - The company had no major overseas assets during the reporting period[46] 3、Assets and Liabilities Measured at Fair Value At the end of the reporting period, the company's financial assets measured at fair value totaled RMB 1,898,651,964.14, primarily consisting of trading financial assets and other equity instrument investments. Investment properties were also measured at fair value, with a period-end balance of RMB 647,920,414.35 Assets and Liabilities Measured at Fair Value | Item | Period-beginning Balance (RMB) | Fair Value Change Gains/Losses for the Period (RMB) | Period-end Balance (RMB) | | :--- | :--- | :--- | :--- | | Trading Financial Assets | 1,800,070,000.00 | 8,848,888.89 | 1,808,918,888.89 | | Other Equity Instrument Investments | 89,733,075.25 | | 89,733,075.25 | | Subtotal Financial Assets | 1,889,803,075.25 | 8,848,888.89 | 1,898,651,964.14 | | Investment Properties | 647,920,414.35 | | 647,920,414.35 | | Total Above | 2,537,723,489.60 | 8,848,888.89 | 2,546,572,378.49 | | Financial Liabilities | 0.00 | | 0.00 | - There were no significant changes in the measurement attributes of the company's major assets during the reporting period[48] 4、Asset Rights Restricted as of the End of the Reporting Period As of the end of the reporting period, the company's restricted assets totaled RMB 1,933,640.31, primarily including cash (housing reform funds) and notes receivable (pledged notes) Asset Rights Restricted | Item | Period-end Carrying Amount (RMB) | Reason for Restriction | | :--- | :--- | :--- | | Cash | 462,431.32 | Housing reform funds | | Notes Receivable | 1,471,208.99 | Pledged notes | | Total | 1,933,640.31 | -- | VI. Analysis of Investment Status During the reporting period, the company's total investment decreased by 36.99% year-on-year. Raised funds were primarily used for production line construction projects for semiconductor power devices, hybrid integrated circuits, new resistive-capacitive components, relays and control components, switches and display control components, and to supplement working capital 1、Overall Situation During the reporting period, the company's total investment was RMB 82,286,536.00, a decrease of 36.99% compared to the same period last year Comparison of Total Investment | Indicator | Amount (RMB) | | :--- | :--- | | Investment for the Reporting Period | 82,286,536.00 | | Investment for the Same Period Last Year | 130,589,982.00 | | Change Rate | -36.99% | 2、Significant Equity Investments Acquired During the Reporting Period The company had no significant equity investments during the reporting period - The company had no securities investments during the reporting period[51] 3、Significant Non-Equity Investments in Progress During the Reporting Period The company had no significant non-equity investments during the reporting period - The company had no derivative investments during the reporting period[52] 4、Financial Asset Investments The company had no securities investments or derivative investments during the reporting period - The company had no securities investments during the reporting period[51] - The company had no derivative investments during the reporting period[52] 5、Use of Raised Funds As of June 30, 2025, the company's net raised funds amounted to RMB 2,512,313,429.37, with cumulative usage of RMB 619,712,181.52, representing a usage rate of 24.67% - As of June 30, 2025, the company's net raised funds amounted to RMB 2,512,313,429.37, with cumulative usage of RMB 619,712,181.52, representing a usage rate of 24.67%[53][54][55] - The company used temporarily idle raised funds to purchase structured deposits with a balance of RMB 1,800,000,000.00, accumulating investment income of RMB 56,194,138.82[54] - The scheduled completion date for raised fund investment projects such as the "Semiconductor Power Device Capacity Enhancement Project" and "Hybrid Integrated Circuit Flexible Intelligent Manufacturing Capability Enhancement Project" has been extended to 2028[57][58] VII. Significant Asset and Equity Disposals The company did not undertake any significant asset or equity disposals during the reporting period - The company did not dispose of significant assets during the reporting period[60] - The company did not dispose of significant equity during the reporting period[61] VIII. Analysis of Major Holding and Associate Companies The company had no important holding or associate company information to disclose during the reporting period - The company had no important holding or associate company information to disclose during the reporting period[61] IX. Structured Entities Controlled by the Company The company had no structured entities under its control during the reporting period - The company had no structured entities under its control during the reporting period[62] X. Risks Faced by the Company and Countermeasures The company faces accounts receivable risk, primarily due to increased accounts receivable resulting from extended product sales and collection periods, and has implemented measures to mitigate this - The company faces accounts receivable risk, primarily affected by extended product sales and collection periods[62] - Countermeasures include optimizing customer management mechanisms, standardizing credit rating and granting, improving credit sales and accounts receivable risk warning mechanisms, and intensifying collection efforts[62] XI. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has formulated the "China Zhenhua (Group) Science & Technology Co., Ltd. Market Value Management System" to standardize market value management, enhance investment value, and improve investor returns, which was approved and implemented by the Board of Directors on April 22, 2025 - The company has formulated the "China Zhenhua (Group) Science & Technology Co., Ltd. Market Value Management System"[66] - This system aims to strengthen the company's market value management, standardize market value management practices, promote the enhancement of the company's investment value, and increase investor returns[66] - The system was approved and implemented at the Fifth Meeting of the Tenth Board of Directors held on April 22, 2025[66] XII. Implementation of "Dual Enhancement of Quality and Returns" Action Plan The company has disclosed its "Dual Enhancement of Quality and Returns" action plan, implementing multiple initiatives to continuously improve company value and shareholder returns, including strengthening core business, enhancing standardized operations, reinforcing investor relations, and sharing development achievements with investors - The company disclosed the "Announcement on the 'Dual Enhancement of Quality and Returns' Action Plan" on March 1, 2024[68] - The action plan includes focusing on strengthening and optimizing the main business, improving standardized operations, enhancing investor relations, and emphasizing sharing development achievements with investors[68] - The company has implemented cash dividends for 14 consecutive years, with cumulative dividends totaling RMB 1.849 billion since listing[72] - The controlling shareholder, China Zhenhua, has completed its plan to increase its shareholding in the company's A-shares by 2,264,600 shares, with a total increase amount of RMB 100,004,426.00[72][73] Section IV Corporate Governance, Environment, and Society This section covers changes in the company's directors, supervisors, and senior management, profit distribution, employee incentive plans, environmental information disclosure, and social responsibility initiatives I. Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, and senior management during the reporting period, with specific details available in the 2024 annual report - There were no changes in the company's directors, supervisors, and senior management during the reporting period[75] II. Profit Distribution and Capital Reserve Conversion to Share Capital for 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[76] III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[77] IV. Environmental Information Disclosure The company and two of its major subsidiaries are included in the list of enterprises required to disclose environmental information by law, and relevant environmental information has been disclosed in the 2024 annual report - The company and its major subsidiaries included in the list of enterprises required to disclose environmental information by law number 2[78] - Shenzhen Zhenhua Fu Electronics Co., Ltd. and Guizhou Zhenhua Hualian Electronics Co., Ltd. have disclosed environmental information in the "2024 Annual Report"[78] V. Social Responsibility The company actively fulfills its social responsibilities, deeply implementing the rural revitalization strategy through strengthened assistance and consumer assistance, contributing to comprehensive rural revitalization and demonstrating the responsibility of state-owned central enterprises - The company has incorporated the task objectives of assisting rural revitalization into the "Zhenhua Technology 2025 Party Building Work Plan"[79] - The company completed the rotation of 2 "first secretaries" and the selection of 1 village working team member, dispatched to Mahuang Village, Chang'ao Village, and Huangxi Village in Huangdao Dong Autonomous Township, Wanshan District, Tongren City, Guizhou Province[79] - The company headquarters and its subsidiaries purchased nearly RMB 400,000 of agricultural products from assisted areas through "purchase instead of donation" initiatives[80] Section V Significant Matters This section details the fulfillment of commitments by the company, its controlling shareholder, and related parties, as well as information on non-operating fund occupation, illegal external guarantees, auditor appointments, litigation, penalties, integrity status, significant related party transactions, and major contracts I. Fulfillment of Commitments by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period and Overdue Unfulfilled Commitments as of the End of the Reporting Period The company's actual controller, controlling shareholder, directors, and senior management all timely fulfilled commitments regarding measures to mitigate dilution of immediate returns from private placement, resolving horizontal competition, reducing related party transactions, and the controlling shareholder not reducing its shareholding during the reporting period - China Electronics Corporation and China Zhenhua Electronics Group Co., Ltd. committed not to unduly interfere with Zhenhua Technology's operations, not to infringe upon Zhenhua Technology's interests, and to earnestly implement measures to mitigate dilution of returns[82] - The company's directors and senior management committed not to transfer benefits to other entities or individuals without compensation or under unfair conditions, and to restrain their job-related consumption behavior[82] - Controlling shareholder China Zhenhua Electronics Group Co., Ltd. has fulfilled its commitment not to reduce its shareholding in the company within 6 months from October 23, 2024[84] II. Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company - During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company[85] III. Illegal External Guarantees The company had no illegal external guarantees during the reporting period - The company had no illegal external guarantees during the reporting period[86] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual report was not audited - The company's semi-annual report was not audited[87] V. Board of Directors' and Supervisory Board's Explanation of "Non-Standard Audit Report" for the Current Reporting Period The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[88] VI. Board of Directors' Explanation of "Non-Standard Audit Report" for the Prior Year The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[88] VII. Bankruptcy and Reorganization Matters The company did not have any bankruptcy and reorganization matters during the reporting period - The company did not have any bankruptcy and reorganization matters during the reporting period[88] VIII. Litigation Matters The company had no significant litigation, arbitration, or other litigation matters during the current reporting period - The company had no significant litigation or arbitration matters during the current reporting period[89] - The company had no other litigation matters during the reporting period[90] IX. 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[91] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company, its controlling shareholder, and actual controller have a good integrity status, with no unfulfilled effective court judgments or large overdue debts - The company, its controlling shareholder, and actual controller have no unfulfilled effective court judgments or large overdue debts[92] XI. Significant Related Party Transactions During the reporting period, the company had no related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, or related party creditor-debtor relationships. The company has financial business dealings with CEFC, including deposits, loans, and credit lines - The company had no related party transactions related to daily operations during the reporting period[93] - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[94] - The company had no related party creditor-debtor relationships during the reporting period[96] Related Party Transactions with CEFC | Business Type | Period-beginning Balance (RMB 10,000) | Current Period Transactions (RMB 10,000) | Period-end Balance (RMB 10,000) | | :--- | :--- | :--- | :--- | | Deposit Business | 297,898 | Deposits 564,597, Withdrawals 502,196 | 360,299 | | Loan Business | 28,000 | Loans 7,000, Repayments 7,700 | 27,300 | | Credit Line or Other Financial Business | 600,000 (Total) | 600,000 (Actual) | | | Deposit Interest Income | | 884 | | | Loan Interest Expense | | 365 | | | Entrusted Loan Balance (for subsidiaries) | | | 96,550 | XII. Significant Contracts and Their Performance During the reporting period, the company had no entrustment, contracting, or leasing matters. The company provided guarantees totaling RMB 640 million for its subsidiaries, with an actual amount of RMB 10 million and a period-end actual guarantee balance of RMB 10 million. The company used raised funds for entrusted wealth management, with an outstanding balance of RMB 1.8 billion. There were no other significant contracts during the reporting period - The company had no entrustment, contracting, or leasing situations during the reporting period[102][103][104] Company Guarantees for Subsidiaries | Guaranteed Party | Guarantee Limit (RMB 10,000) | Actual Guarantee Amount (RMB 10,000) | Guarantee Type | Guarantee Period | Is it Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | China Zhenhua Electronic Group Yuguang Electric Co., Ltd. | 5,000 | 1,000 | Joint and several liability guarantee | One year | No | | Total Approved Guarantee Limit for Subsidiaries During the Reporting Period | 64,000 | | | | | | Total Actual Guarantee Balance for Subsidiaries at Period-end | | 1,000 | | | | Entrusted Wealth Management | Specific Type | Source of Entrusted Funds | Amount of Entrusted Wealth Management (RMB 10,000) | Unmatured Balance (RMB 10,000) | | :--- | :--- | :--- | :--- | | Other | Raised funds | 0 | 180,000 | - The company had no other significant contracts during the reporting period[109] XIII. Explanation of Other Significant Matters The company disclosed announcements regarding the progress and completion of its controlling shareholder's plan to increase its shareholding - The company disclosed the "Announcement on the Progress of the Controlling Shareholder's Plan to Increase Shareholding" and the "Announcement on the Completion of the Controlling Shareholder's Plan to Increase Shareholding"[110] XIV. Significant Matters of Company Subsidiaries The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[111] Section VI Share Changes and Shareholder Information This section details changes in the company's share capital, securities issuance and listing, shareholder numbers, shareholding structure, and changes in holdings by directors, supervisors, and senior management I. Share Change Situation During the reporting period, the company's total share capital remained unchanged at 554,169,431 shares. Restricted shares decreased by 326,500 shares, mainly due to changes in locked-up shares of senior executives, with a corresponding increase of 326,500 unrestricted shares Share Change Situation | Share Class | Number Before Change (shares) | Increase/Decrease in This Change (shares) | Number After Change (shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 401,200 | -326,500 | 74,700 | | Of which: Shares held by domestic natural persons | 401,200 | -326,500 | 74,700 | | II. Unrestricted Shares | 553,768,231 | 326,500 | 554,094,731 | | Of which: RMB ordinary shares | 553,768,231 | 326,500 | 554,094,731 | | III. Total Shares | 554,169,431 | 0 | 554,169,431 | - During the reporting period, the company's share changes were primarily due to changes in locked-up shares of senior executives[114] II. Securities Issuance and Listing The company had no securities issuance and listing during the reporting period - The company had no securities issuance and listing during the reporting period[115] III. Number of Shareholders and Shareholding At the end of the reporting period, the company had a total of 74,960 ordinary shareholders. Among the top ten shareholders, China Zhenhua Electronic Group Co., Ltd. held 31.01%, being the largest shareholder. Institutional investors such as E Fund Defense Military Industry Mixed Securities Investment Fund and Guizhou Xindongneng Industry Investment Fund Partnership (Limited Partnership) were also prominent - At the end of the reporting period, the total number of ordinary shareholders was 74,960[117] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Period-end Shareholding (shares) | Change During Reporting Period (shares) | Number of Unrestricted Shares (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | China Zhenhua Electronic Group Co., Ltd. | State-owned legal person | 31.01% | 171,837,944 | 917,500 | 171,837,944 | | China Construction Bank Co., Ltd. - E Fund Defense Military Industry Mixed Securities Investment Fund | Domestic non-state-owned legal person | 2.46% | 13,612,037 | 4,605,751 | 13,612,037 | | Guizhou Guixin Ruihe Venture Capital Management Co., Ltd. - Guizhou Xindongneng Industry Investment Fund Partnership (Limited Partnership) | Domestic non-state-owned legal person | 2.13% | 11,814,871 | 0 | 11,814,871 | | China Construction Bank Co., Ltd. - GF Technology Pioneer Mixed Securities Investment Fund | Domestic non-state-owned legal person | 1.83% | 10,114,524 | 0 | 10,114,524 | | China Construction Bank Co., Ltd. - Fullgoal CSI Military Industry Leading ETF | Domestic non-state-owned legal person | 1.35% | 7,459,360 | 3,293,300 | 7,459,360 | | Ping An Bank Co., Ltd. - China Merchants Core Competitiveness Mixed Securities Investment Fund | Domestic non-state-owned legal person | 1.22% | 6,739,330 | -927,700 | 6,739,330 | | GF Fund Management Co., Ltd. - Social Security Fund 420 Portfolio | Domestic non-state-owned legal person | 1.17% | 6,490,622 | 4,408,042 | 6,490,622 | | Central Enterprise Rural Industry Investment Fund Co., Ltd. | State-owned legal person | 1.14% | 6,317,119 | 0 | 6,317,119 | | Agricultural Bank of China Co., Ltd. - CSI 500 ETF | Domestic non-state-owned legal person | 1.04% | 5,768,800 | 190,800 | 5,768,800 | | China Construction Bank Co., Ltd. - Cathay CSI Military Industry ETF | Domestic non-state-owned legal person | 0.81% | 4,514,891 | 1,344,300 | 4,514,891 | - The company's top 10 ordinary shareholders and top 10 unrestricted ordinary shareholders did not engage in any agreed repurchase transactions during the reporting period[119] IV. 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, with specific details available in the 2024 annual report - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[120] V. Changes in Controlling Shareholder or Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period - There were no changes in the company's controlling shareholder during the reporting period[121] - There were no changes in the company's actual controller during the reporting period[122] VI. Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[123] Section VII Bond-Related Information This section confirms that the company had no bond-related matters during the reporting period Bond-Related Information The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[125] Section VIII Financial Report This section presents the company's unaudited financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, tax items, and financial statement items I. Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[127] II. Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the company's financial position at the end of the reporting period and its operating results and cash flows during the period 1、Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were RMB 18,338,976,370.88, an increase of 1.53% from the beginning of the period. Cash and accounts receivable significantly increased within current assets, while non-current assets remained stable. Consolidated total liabilities were RMB 3,359,220,578.87, a slight increase from the beginning of the period. Total owners' equity attributable to the parent company was RMB 14,980,968,495.80 - Period-end cash was RMB 3,813,905,151.17, an increase of RMB 587,348,737.35 from the period-beginning[129] - Period-end accounts receivable was RMB 5,563,322,502.71, an increase of RMB 985,459,442.40 from the period-beginning[129] - Period-end notes receivable was RMB 540,889,284.05, a decrease of RMB 1,397,286,261.50 from the period-beginning[129] 2、Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were RMB 8,621,146,163.58, a slight decrease from the beginning of the period. Cash and undistributed profits decreased, while long-term equity investments increased. Total liabilities were RMB 315,491,401.59, a decrease from the beginning of the period - Period-end cash was RMB 1,395,514,494.08, a decrease of RMB 238,807,860.10 from the period-beginning[132] - Period-end long-term equity investments were RMB 3,734,806,019.99, an increase of RMB 88,718,862.01 from the period-beginning[132] - Period-end undistributed profits were RMB 1,571,184,303.55, a decrease of RMB 82,872,930.86 from the period-beginning[133] 3、Consolidated Income Statement In the first half of 2025, the company's consolidated total operating revenue was RMB 2,409,663,141.44, a year-on-year decrease of 0.83%. Net profit attributable to parent company shareholders was RMB 311,989,480.19, a year-on-year decrease of 25.74%. Operating profit and total profit both significantly declined, mainly due to increased operating costs, decreased other income, and increased asset impairment losses - Current period total operating revenue was RMB 2,409,663,141.44, compared to RMB 2,429,890,742.95 in the same period last year, a year-on-year decrease of 0.83%[135] - Current period net profit attributable to parent company shareholders was RMB 311,989,480.19, compared to RMB 420,136,657.70 in the same period last year, a year-on-year decrease of 25.74%[136] - Current period operating profit was RMB 358,867,146.03, compared to RMB 490,406,701.48 in the same period last year, a year-on-year decrease of 26.82%[135] 4、Parent Company Income Statement In the first half of 2025, the parent company's operating revenue was RMB 12,907,749.23, largely flat year-on-year. Net profit was RMB 16,877,566.72, a significant year-on-year decrease of 98.43%, mainly due to a substantial reduction in investment income - Current period operating revenue was RMB 12,907,749.23, compared to RMB 12,739,206.05 in the same period last year, a slight year-on-year increase of 1.32%[139] - Current period net profit was RMB 16,877,566.72, compared to RMB 1,071,418,598.93 in the same period last year, a year-on-year decrease of 98.43%[139] - Current period investment income was RMB 7,021,058.45, a significant decrease from RMB 1,071,234,984.73 in the same period last year[139] 5、Consolidated Cash Flow Statement In the first half of 2025, the company's net cash flow from operating activities was RMB 948,854,598.40, a year-on-year decrease of 20.30%. Net cash flow from investing activities was -RMB 175,521,341.03, with outflows decreasing by 23.25%. Net cash flow from financing activities was -RMB 186,024,905.70, with outflows significantly decreasing by 76.75%. The net increase in cash and cash equivalents was RMB 587,348,737.35, a significant year-on-year increase of 263.06% - Net cash flow from operating activities was RMB 948,854,598.40, a year-on-year decrease of 20.30%[143] - Net cash flow from investing activities was -RMB 175,521,341.03, with outflows decreasing by 23.25% year-on-year[143] - Net cash flow from financing activities was -RMB 186,024,905.70, with outflows significantly decreasing by 76.75% year-on-year[143] - Net increase in cash and cash equivalents was RMB 587,348,737.35, a significant year-on-year increase of 263.06%[143] 6、Parent Company Cash Flow Statement In the first half of 2025, the parent company's net cash flow from operating activities was RMB 6,445,802.87, turning positive from a negative value. Net cash flow from investing activities was -RMB 105,995,683.28, with outflows decreasing. Net cash flow from financing activities was -RMB 139,257,979.69, with outflows significantly decreasing - Net cash flow from operating activities was RMB 6,445,802.87, compared to -RMB 27,250,507.04 in the same period last year, turning from negative to positive[145] - Net cash flow from investing activities was -RMB 105,995,683.28, compared to -RMB 93,813,952.23 in the same period last year, with outflows increasing[145] - Net cash flow from financing activities was -RMB 139,257,979.69, compared to -RMB 607,852,223.11 in the same period last year, with outflows significantly decreasing[145] 7、Consolidated Statement of Changes in Owners' Equity As of June 30, 2025, the company's consolidated total owners' equity was RMB 14,979,755,792.01, an increase of RMB 231,695,441.41 from the beginning of the period, primarily due to total comprehensive income of RMB 312,045,938.99 and profit distribution of RMB 99,750,497.58 - Period-end total owners' equity attributable to the parent company was RMB 14,980,968,495.80, an increase of RMB 231,638,982.61 from the period-beginning[149] - Total comprehensive income for the current period was RMB 312,045,938.99[148] - Profit distribution for the current period was RMB 99,750,497.58[148] 8、Parent Company Statement of Changes in Owners' Equity As of June 30, 2025, the parent company's total owners' equity was RMB 8,305,654,761.99, a decrease of RMB 82,872,930.86 from the beginning of the period, primarily due to total comprehensive income of RMB 16,877,566.72 and profit distribution of RMB 99,750,497.58 - Period-end total owners' equity was RMB 8,305,654,761.99, a decrease of RMB 82,872,930.86 from the period-beginning[157] - Total comprehensive income for the current period was RMB 16,877,566.72[156] - Profit distribution for the current period was RMB 99,750,497.58[156] III. Company Basic Information This section details China Zhenhua (Group) Science & Technology Co., Ltd.'s share capital changes since its 1997 listing, including rights issues, public offerings, share reform, private placements, and equity incentive exercises. As of April 22, 2025, the controlling shareholder, China Zhenhua Electronic Group Co., Ltd., held 31.01% of the shares. The company's business scope covers electronic products, mechanical products, trade, construction, and information consulting, with main businesses divided into new electronic components and modern services - The company was listed on the Shenzhen Stock Exchange in July 1997, stock code: 000733[160] - As of April 22, 2025, the controlling shareholder, China Zhenhua Electronic Group Co., Ltd., increased its shareholding ratio from 30.60% to 31.01%[168] - The company's business scope includes self-produced and self-sold electronic products, mechanical products; trade, construction, economic information consulting, technology consulting, development, transfer, and services[170] - The company's business is divided into new electronic components and modern services sectors based on industry nature[171] IV. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, in accordance with the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance and relevant regulations, and comply with the information disclosure requirements of the China Securities Regulatory Commission. The company has the ability to continue as a going concern for at least 12 months from the end of the reporting period - The company's financial statements are prepared on a going concern basis, in accordance with actual transactions and events, and the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance and relevant regulations[172] - 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[173] V. Significant Accounting Policies and Accounting Estimates This section details the significant accounting policies and estimates followed by the company in preparing its financial statements, covering business combinations, financial instruments, receivables, inventories, fixed assets, intangible assets, revenue recognition, government grants, and deferred income tax, ensuring transparency and comparability of financial reporting. There were no significant changes in accounting policies and estimates during the reporting period - The financial statements prepared by the company comply with the requirements of the "Accounting Standards for Business Enterprises", truthfully and completely reflecting the company's financial position, operating results, and cash flows[175] - The company uses a 12-month period as its normal operating cycle and as the standard for classifying assets and liabilities as current or non-current[177] - There were no significant changes in the company's accounting policies and significant accounting estimates during the reporting period[298] VI. Taxes This section discloses the company's main tax categories and rates, including VAT, urban maintenance and construction tax, corporate income tax, education surcharge, and local education surcharge. Several of the company's subsidiaries enjoy a 15% corporate income tax preferential rate due to their recognition as high-tech enterprises Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Current period output tax less deductible input tax | 13%, 9%, 6%, 5% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 5%, 7% | | Corporate Income Tax | Taxable income | 25%, 15% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | - Several of the company's subsidiaries (e.g., Zhenhua Xinyun, Zhenhua Yongguang, Zhenhua Yunke, Zhenhua Micro, Zhenhua Fu, Zhenhua Yuguang, Zhenhua New Energy, Zhenhua Hualian, Zhenhua Qunying, Zhenhua Hongyun, Jiangsu Xinyun) enjoyed a 15% corporate income tax preferential rate in the first half of 2025 due to their recognition as high-tech enterprises[301][302][303][304] VII. Notes to Consolidated Financial Statement Items This section provides detailed disclosures on the specific composition, measurement methods, and period-end changes of major assets, liabilities, owners' equity, and profit/loss items in the consolidated financial statements, including cash, accounts receivable, inventory, fixed assets, long-term equity investments, short-term borrowings, long-term borrowings, operating revenue, operating costs, various expenses, investment income, asset impairment losses, with explanations for significant changes - Period-end cash balance was RMB 3,813,905,151.17, with a significant portion held in financial company deposits[306] - Period-end accounts receivable balance was **RMB 5,563,322,5