信科移动(688387) - 2025 Q2 - 季度财报

Part I Definitions Definitions of Common Terms This section defines key terms, company names, related parties, currency units, and mobile communication technologies for accurate report comprehension - The reporting period is from January 1, 2025, to June 30, 2025[10] - 5G-A (5G-Advanced) is an enhanced version of 5G technology, also known as 5.5G, offering significant improvements in speed, connection density, latency, and reliability, while integrating sensing and communication capabilities with native intelligence[10][11] - RedCap, short for Reduced Capability, refers to 5G lightweight technology, a new technical standard specifically initiated for research during the 3GPP Release 17 phase[11] Part II Company Profile and Key Financial Indicators I. Company Basic Information This section provides essential identity details for investors, including the company's Chinese name, abbreviation, legal representative, registered and office addresses, website, and email - The company's Chinese name is CICT Mobile Communication Technology Co., Ltd., abbreviated as CICT Mobile, with Sun Xiaonan as the legal representative[13] - The company's registered address is No. 88 Youkeyuan Road, Wuhan East Lake New Technology Development Zone, and its office address is No. 1 Tanhu Second Road, Canglong Island, Jiangxia District, Wuhan[13] II. Contact Persons and Information This section provides contact details for Board Secretary Zhang Jinghong and Securities Affairs Representative Zhang Huaike, including address, phone, fax, and email, for investor inquiries and communication - The Board Secretary is Zhang Jinghong, and the Securities Affairs Representative is Zhang Huaike, both reachable at 027-87694415, with the email address ir@cictmobile.com[14] III. Information Disclosure and Document Custody Location Changes This section details the company's designated information disclosure newspapers, the website for semi-annual reports, and the Board Office as the report custody location, with no changes during the period - The company's designated information disclosure newspapers include China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily, and Economic Information Daily[15][16] - The semi-annual report is published on the Shanghai Stock Exchange website (www.sse.com.cn), and the custody location is the company's Board Office[16] IV. Company Stock/Depositary Receipt Overview This section outlines the company's A-share listing on the STAR Market of the Shanghai Stock Exchange, with stock abbreviation 'CICT Mobile' and code '688387', confirming no previous abbreviation or depositary receipts - The company's A-shares are listed on the STAR Market of the Shanghai Stock Exchange, with stock abbreviation 'CICT Mobile' and stock code '688387'[17] VI. Key Accounting Data and Financial Indicators In H1 2025, operating revenue decreased by 15.21% to 2.537 billion yuan, net profit attributable to shareholders was -0.062 billion yuan (flat YoY), and non-recurring net profit loss narrowed by over 15 million yuan, while operating cash flow and total assets declined H1 2025 Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) (yuan) | Prior Period (yuan) | YoY Change (%) | | :------------------------------------------------- | :------------------------------ | :-------------------- | :-------------------------- | | Operating Revenue | 2,537,242,285.05 | 2,992,455,388.62 | -15.21 | | Total Profit | -75,824,106.15 | -79,462,701.46 | N/A | | Net Profit Attributable to Shareholders | -61,738,846.15 | -61,408,460.25 | N/A | | Net Profit Attributable to Shareholders (Excl. Non-Recurring Gains/Losses) | -87,250,192.44 | -102,500,135.96 | N/A | | Net Cash Flow from Operating Activities | -83,679,302.53 | -1,070,235,453.20 | N/A | | As of Current Period End | As of Prior Year End | Change from Prior Year End (%) | | | Net Assets Attributable to Shareholders | 6,200,801,065.78 | 6,276,919,527.93 | -1.21 | | Total Assets | 13,111,389,372.00 | 13,735,771,854.78 | -4.55 | H1 2025 Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :------------------------------------------------- | :----------------------- | :----------- | :-------------------------- | | Basic Earnings Per Share (yuan/share) | -0.02 | -0.02 | N/A | | Diluted Earnings Per Share (yuan/share) | -0.02 | -0.02 | N/A | | Basic EPS (Excl. Non-Recurring Gains/Losses) (yuan/share) | -0.03 | -0.03 | N/A | | Weighted Average Return on Net Assets (%) | -0.99 | -0.94 | N/A | | Weighted Average ROE (Excl. Non-Recurring Gains/Losses) (%) | -1.40 | -1.57 | N/A | | R&D Investment as % of Operating Revenue (%) | 22.43 | 20.68 | Increased by 1.75 percentage points | VIII. Non-Recurring Gains and Losses Items and Amounts This section details the company's H1 2025 non-recurring gains and losses, totaling 25.51 million yuan, primarily from government subsidies, fair value changes in financial assets, and other non-operating items H1 2025 Non-Recurring Gains and Losses Items | Non-Recurring Gains and Losses Items | Amount (yuan) | | :----------------------------------- | :------------ | | Disposal gains/losses from non-current assets | -130,138.10 | | Government grants recognized in current profit or loss | 17,346,996.67 | | Gains/losses from fair value changes of financial assets and liabilities held by non-financial enterprises, and disposal of financial assets and liabilities | 9,282,831.53 | | Other non-operating income and expenses apart from the above | -687,531.20 | | Less: Impact on minority interests (after tax) | 300,812.61 | | Total | 25,511,346.29 | Part III Management Discussion and Analysis I. Industry and Principal Business Overview During the Reporting Period Operating in communication equipment manufacturing, the company benefits from China's leading 5G network and 5G-A advancements, critical 6G competition, and accelerated industrialization of low-altitude economy and satellite internet, maintaining its strong position in mobile communication standards and product development - The company operates in the 'C392 Communication Equipment Manufacturing' sub-sector of 'C39 Computer, Communication and Other Electronic Equipment Manufacturing'[25] - China has built the world's largest 5G network, with base stations accounting for over 66% of the global total, actively promoting 5G to 5G-A network upgrades, with 5G-A users expected to exceed 60 million by the end of 2025[25][26] - Global 6G competition has entered a critical strategic phase, with ITU confirming the start of technical standardization in 2025, the first standard freeze in 2029, and commercialization by 2030[26] - The integration of 5G-A and AI has achieved large-scale application in various industries such as mining, ports, healthcare, education, and industrial manufacturing, driving the shift from 'experience-driven' to 'data-driven' operations[27] - China's low-altitude economy market size is projected to reach 1.5 trillion yuan by 2025 and potentially exceed 3.5 trillion yuan by 2035, becoming a core growth engine for national strategic emerging industries[27] - The company is a significant patent holder for global 3G, 4G, and 5G mobile communication standards, ranking seventh globally in 5G standard proposals, and leading the first 3GPP 6G standard project initiation[29] - The company maintains industry-leading positions or first-mover advantages in mobile communication system equipment, antenna and indoor distribution equipment, mobile communication technical services, industry applications, and satellite internet[30] - The company focuses on integrated space-air-ground mobile communication as its principal business, offering network products, technical services, and comprehensive solutions for the 5G new ecosystem, 6G pre-research, and digital transformation, with no changes to its principal business during the reporting period[30] II. Discussion and Analysis of Operations In H1 2025, operating revenue decreased by 15.21% to 2.537 billion yuan, while net profit loss narrowed, and non-recurring net profit loss reduced by over 15 million yuan. The company expanded domestically and internationally, achieving 74.8% growth in industry application revenue, alongside significant advancements in 5G-A, 6G innovation, and corporate reform H1 2025 Key Economic Indicators | Indicator | 2025 H1 (billion yuan) | YoY Change | | :-------- | :--------------------- | :--------- | | Operating Revenue | 2.537 | Down 15.21% | | Net Profit Attributable to Shareholders | -0.062 | Largely flat | | Net Profit Attributable to Shareholders (Excl. Non-Recurring Gains/Losses) | -0.087 | Loss reduced by over 15 million yuan | - Domestic operator market: Won China Mobile's 5G Phase VII centralized procurement project, increasing 2.6G share by 43.7%; won China Telecom's mid-to-high frequency Phase VII centralized procurement project, with year-on-year share increase; achieved first place in overall market share for antenna and indoor distribution equipment centralized procurement, and second place in provincial procurement[34] - International market: Main equipment business won the Uganda project in Africa, while antenna and indoor distribution equipment business secured multiple projects in Europe, Latin America, the Middle East, and Africa, continuously enhancing international market influence[35] - Industry application market: Industry business revenue increased by 74.8% year-on-year, signing multiple wireless private network projects in the energy market, vigorously advancing 5G-R engineering test line testing in the transportation market, and deepening industry-academia-research integration in the education market[36] - New business market: Satellite internet business maintained its first-mover advantage, completing integrated satellite payload overall design and signing new contracts; patent operation business added a new bilateral license with a terminal manufacturer[36][37] - Technological innovation: Fully participated in Rel-19 standardization, submitting over 10 Rel-20 technical proposals; ranked among the top 8 in 3GPP standard influence in H1, leading 5 international standard projects; launched the industry's unique 64T 128R enhanced integrated sensing and communication AAU[37] - 6G technology pre-research: Conducted 17 key 6G technology studies, including super-dimensional antennas, and released latest achievements such as space-ground integration and standalone networking design; applied for 132 6G patents and published 5 6G papers[37] - Deepening reform: Awarded an excellent rating in the SASAC 2024 'Sci-Tech Reform Demonstration Enterprise' assessment; promoted tenure-based and contractual management for management team members, increasing the proportion of young cadres by over 10%, with market-oriented exit and rotation rates for cadres both exceeding 20%[38][39] III. Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness stems from its global standard influence, original technological innovation, integrated space-air-ground industrial capabilities, and exemplary corporate governance. It ranks among the top ten globally in 5G standard patents with over 24,000 proposals, leads 6G key technology deployment, and drives space-ground integration and satellite internet standards, enhancing innovation through industry-academia-research collaboration - The company maintains a leading position in standard patents, with over 24,000 5G international standard proposals, ranking seventh globally; its 5G standard patent count disclosed by ETSI is among the top ten worldwide[41] - The company holds first-tier global technological influence in areas such as 5G massive MIMO antenna technology, ultra-dense networking technology, equipment energy-saving technology, and space-ground integrated mobile communication technology[41] - The company conducts a series of research projects addressing 6G requirements and key technologies, achieving breakthroughs in critical 6G core technology directions such as space-ground integration, super-dimensional antennas, and user-centric intelligent governance networks, positioning itself as an industry leader[41] - The company has built an integrated 'space-air-ground' collaborative development business system, possessing end-to-end satellite internet communication solutions and full industry chain capabilities, from chips and equipment to solutions[42] - The company leads the formulation of space-ground integration international standards, achieving China's first 3GPP NTN standard project initiation, and cumulatively leading 13 NTN projects[43] - The company was approved as a SASAC 'Sci-Tech Reform Demonstration Enterprise' and 'World-Class Specialized, Refined, Unique, and New Demonstration Enterprise', establishing a technology innovation platform integrating industry, academia, research, and application[43][44] - During the reporting period, the company added 682 intellectual property application projects (including 671 domestic and international patent applications) and 529 intellectual property authorization projects (including 520 domestic and international authorized patents)[50] H1 2025 R&D Investment | Indicator | Current Period (yuan) | Prior Period (yuan) | Change (%) | | :---------------------------------- | :-------------------- | :------------------ | :----------- | | Expensed R&D Investment | 491,501,005.01 | 551,224,219.91 | -10.83 | | Capitalized R&D Investment | 77,515,246.84 | 67,680,588.15 | 14.53 | | Total R&D Investment | 569,016,251.85 | 618,904,808.06 | -8.06 | | R&D Investment as % of Operating Revenue (%) | 22.43 | 20.68 | Increased by 1.75 percentage points | | Capitalization Ratio of R&D Investment (%) | 13.62 | 10.94 | Increased by 2.68 percentage points | - The company's ongoing R&D projects include 17 items such as the 6G technology verification platform, 5G-A/6G standards and space-ground integration research, 5G base station software optimization and upgrade, 5G localized base station R&D, 5G-A integrated sensing and communication technology research and base station product development, 5G-R pre-commercial projects, end-to-end satellite internet technology research and verification, satellite payload technology research and verification, satellite core network products, green wideband high-efficiency integrated base station antenna products, satellite payload phased array antennas, shared repeater products, remote O&M of equipment rooms based on 5G+IoT and AI, intelligent quality management system research for communication engineering, and smart governance platform for urban social governance and intelligent IoT rule engine technology research[57][58][59] H1 2025 R&D Personnel | Indicator | Current Period | | :---------------------------------- | :------------- | | Number of Company R&D Personnel (persons) | 1,954 | | R&D Personnel as % of Total Company Staff (%) | 45.54 | | Total R&D Personnel Compensation (million yuan) | 273.5038 | | Average R&D Personnel Compensation (million yuan) | 0.14 | | Educational Background | | | Doctoral Candidates (persons) | 61 | | Master's Candidates (persons) | 869 | | Bachelor's Degree (persons) | 982 | | Associate's Degree (persons) | 42 | | Age Structure | | | Under 30 (excluding 30) (persons) | 424 | | 30-40 (including 30, excluding 40) (persons) | 807 | | 40-50 (including 40, excluding 50) (persons) | 598 | | 50-60 (including 50, excluding 60) (persons) | 125 | IV. Risk Factors The company faces risks of unprofitability, performance decline, and losses, with H1 operating revenue down 15.21%. Core competitiveness, operational, and financial risks include product competitiveness, IP, supply chain stability, overseas operations, customer credit, negative operating cash flow, high receivables and inventory, and seasonal revenue. Industry risks include declining telecom capex and macroeconomic challenges - During the reporting period, the net profit attributable to ordinary shareholders was -61.7388 million yuan, posing a risk of continued unprofitability or inability to distribute profits for a certain period in the future[62] - During the reporting period, the company's operating revenue decreased by 15.21% year-on-year, primarily due to slower operator investments, presenting a risk of significant performance decline or losses[62] - The company faces product competitiveness risks (failure to continuously research, develop, and launch iterative updated products) and intellectual property risks (mobility of core technical personnel, inadequate protection, disputes, etc.)[62] - Operational risks include supply chain stability risks due to rising prices of key components, overseas operational risks from international legal/tax/regulatory/market environment and exchange rate fluctuations, and accounts receivable collection risks due to varying customer creditworthiness[63][64] - Financial risks include negative net cash flow from operating activities (-83.6793 million yuan), net accounts receivable (including contract assets) totaling 5.103 billion yuan (accounting for 38.92% of total assets), and inventory book value of 1.485 billion yuan (accounting for 11.32% of total assets), leading to capital tie-up and impairment risks[64][65] - The company's operating revenue is subject to seasonal fluctuations, with second-half revenue generally higher than the first half, potentially leading to seasonal losses[65] - Industry risks include declining capital expenditures in the domestic telecom sector, operators shifting investments towards industrial digitalization, posing challenges for traditional communication equipment businesses. Macroeconomic risks include slowing global economic growth, insufficient domestic demand, and international trade frictions[66] (I) Analysis of Principal Business In H1 2025, operating revenue decreased by 15.21% to 2.537 billion yuan due to slower operator plans and macro factors. Operating costs fell 16.91%, sales expenses 10.40%, and R&D expenses 10.83%. Management expenses rose 4.59%, and financial expenses decreased by 13.2118 million yuan. Operating cash flow was negative, investing cash flow turned positive, and financing cash flow significantly declined H1 2025 Financial Statement Items Variation Analysis | Item | Current Period (yuan) | Prior Period (yuan) | Change (%) | | :--------------------------------- | :-------------------- | :------------------ | :----------- | | Operating Revenue | 2,537,242,285.05 | 2,992,455,388.62 | -15.21 | | Operating Cost | 1,861,329,093.93 | 2,240,134,085.36 | -16.91 | | Selling Expenses | 136,952,195.33 | 152,847,839.10 | -10.40 | | Administrative Expenses | 72,276,925.81 | 69,106,586.39 | 4.59 | | Financial Expenses | -14,299,287.15 | -1,087,482.40 | N/A | | R&D Expenses | 491,501,005.01 | 551,224,219.91 | -10.83 | | Net Cash Flow from Operating Activities | -83,679,302.53 | -1,070,235,453.20 | N/A | | Net Cash Flow from Investing Activities | 135,644,887.03 | -552,844,776.95 | N/A | | Net Cash Flow from Financing Activities | -188,863,534.01 | 142,958,744.12 | -232.11 | - The decrease in operating revenue was primarily due to slower operator construction plans and macroeconomic factors in 2025[69] - Financial expenses decreased by 13.2118 million yuan year-on-year, mainly due to a reduction in the company's borrowing scale and lower interest expenses[70] - Net cash flow from operating activities was negative, primarily due to a reduction in the company's external procurement scale and a decrease in cash paid for goods and services[70] - Net cash flow from investing activities turned positive, mainly because the company reduced its investments in structured deposits[70] - Net cash flow from financing activities significantly decreased, primarily due to a reduction in the company's borrowing scale[70] (III) Analysis of Assets and Liabilities At period-end, total assets were 13.111 billion yuan, down 4.55% YoY. Notes receivable decreased by 54.12%, while construction in progress rose 88.59% due to R&D and manufacturing base investments. Short-term borrowings increased 23.13%, contract liabilities 36.40% from sales collections, and non-current liabilities due within one year significantly decreased by 97.23% due to strong cash flow H1 2025 Assets and Liabilities Variation | Item Name | Current Period End (yuan) | % of Total Assets at Current Period End | Prior Year End (yuan) | % of Total Assets at Prior Year End | % Change from Prior Year End | | :-------------------------- | :------------------------ | :------------------------------------ | :-------------------- | :------------------------------------ | :--------------------------- | | Cash and Bank Balances | 3,089,019,278.16 | 23.56 | 3,234,981,209.39 | 23.55 | -4.51 | | Trading Financial Assets | 1,024,098,739.72 | 7.81 | 1,254,972,561.64 | 9.14 | -18.40 | | Notes Receivable | 119,152,480.80 | 0.91 | 259,676,678.22 | 1.89 | -54.12 | | Accounts Receivable | 5,060,298,219.70 | 38.59 | 5,193,425,280.58 | 37.81 | -2.56 | | Inventories | 1,484,813,357.57 | 11.32 | 1,555,218,677.68 | 11.32 | -4.53 | | Fixed Assets | 1,056,955,768.63 | 8.06 | 1,095,560,686.13 | 7.98 | -3.52 | | Construction in Progress | 169,845,222.98 | 1.30 | 90,062,298.82 | 0.66 | 88.59 | | Intangible Assets | 191,145,782.01 | 1.46 | 206,745,368.99 | 1.51 | -7.55 | | Short-term Borrowings | 788,447,278.33 | 6.01 | 640,354,549.36 | 4.66 | 23.13 | | Notes Payable | 510,661,545.84 | 3.89 | 617,562,877.65 | 4.50 | -17.31 | | Accounts Payable | 3,940,885,058.42 | 30.06 | 4,181,161,998.91 | 30.44 | -5.75 | | Contract Liabilities | 782,275,179.09 | 5.97 | 573,516,670.99 | 4.18 | 36.40 | | Non-current Liabilities Due Within One Year | 11,558,196.77 | 0.09 | 417,484,029.20 | 3.04 | -97.23 | - Construction in progress increased by 88.59%, primarily due to increased investment in the first phase of the company's mobile communication equipment R&D and manufacturing base project general contracting during the current period[72][73] - Contract liabilities increased by 36.40%, mainly due to increased sales collections by the company[73] - Non-current liabilities due within one year decreased by 97.23%, primarily due to the company's good cash flow management and reduced borrowing scale[73] - Overseas assets totaled 32.9482 million yuan, accounting for 0.25% of total assets[74] H1 2025 Major Restricted Assets | Item | Period-End Book Value (yuan) | Reason for Restriction | | :--- | :--------------------------- | :--------------------- | | Cash and Bank Balances | 14,971,955.44 | Litigation-frozen funds and various deposits | | Notes Receivable | 1,103,314.80 | Unrecognized notes | (IV) Analysis of Investment Status This section discloses the company's financial assets measured at fair value. At period-end, trading financial assets were 1.024 billion yuan, down 18.40% from the beginning of the period, with 2.34 billion yuan in purchases and 2.57 billion yuan in sales/redemptions H1 2025 Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (yuan) | Current Period Fair Value Change (yuan) | Cumulative Fair Value Change Recognized in Equity (yuan) | Current Period Purchases (yuan) | Current Period Sales/Redemptions (yuan) | Ending Balance (yuan) | | :------------- | :----------------------- | :-------------------------------------- | :--------------------------------------- | :---------------------- | :---------------------- | :-------------------- | | Other | 1,254,972,561.64 | 4,098,739.72 | 4,972,561.64 | 2,340,000,000.00 | 2,570,000,000.00 | 1,024,098,739.72 | (VI) Analysis of Major Controlled and Invested Companies This section lists major controlled subsidiaries and their performance. Datang Mobile Communications reported 988 million yuan in revenue and a 61.3291 million yuan net loss. Wuhan Hongxin Technology Services had 899 million yuan revenue and a 49.9098 million yuan net loss. Wuhan Hongxin Technology Development achieved 2.9542 million yuan net profit. Wuhan CICT Mobile, a new capacity vehicle, has not yet commenced operations H1 2025 Major Controlled Subsidiaries Financial Data | Company Name | Company Type | Principal Business | Registered Capital (million yuan) | Total Assets (million yuan) | Net Assets (million yuan) | Operating Revenue (million yuan) | Operating Profit (million yuan) | Net Profit (million yuan) | | :--------------------------------------- | :----------- | :------------------------------------------------- | :------------------------------ | :-------------------------- | :------------------------ | :------------------------------- | :------------------------------ | :------------------------ | | Wuhan Hongxin Technology Development Co., Ltd. | Subsidiary | R&D, production, and sales of antenna and indoor distribution equipment | 700.00 | 796.7835 | 567.9169 | 53.8537 | 2.9826 | 2.9542 | | Datang Mobile Communications Equipment Co., Ltd. | Subsidiary | R&D, production, and sales of mobile communication system equipment and 4/5G industry application related products | 1,501.1306 | 4,261.4694 | -319.2011 | 988.4576 | -60.8073 | -61.3291 | | Wuhan Fenghao Zhida Information Technology Co., Ltd. | Subsidiary | Mobile communication related software development | 50.00 | 66.0607 | 64.6162 | - | 0.1205 | 0.1205 | | Wuhan Hongxin Technology Services Co., Ltd. | Subsidiary | Mobile communication technical services | 100.00 | 3,549.5109 | 282.4367 | 899.2720 | -50.9752 | -49.9098 | | Wuhan CICT Mobile Communication Technology Co., Ltd. | Subsidiary | Has not yet commenced specific operations, future vehicle for new capacity and incremental business | 2,000.00 | 2,021.1800 | 2,020.9242 | - | 0.1134 | 0.0851 | | Shenzhen CICT Mobile Communication Technology Co., Ltd. | Subsidiary | As CICT Mobile's business platform in Guangdong region, still in exploration phase | 50.00 | 51.1093 | 51.0468 | 0.7799 | -0.0026 | -0.0022 | | Datang Lianyi Technology Co., Ltd. | Subsidiary | R&D, production, and sales of mobile communication test instruments | 50.00 | 202.2041 | 69.0199 | 74.8652 | -4.3252 | -4.3172 | | Shanghai Datang Mobile Communications Equipment Co., Ltd. | Subsidiary | Mobile communication technical services | 105.00 | 589.5628 | 141.1596 | 200.9586 | -1.209 | -2.591 | | Shanghai Yuandongli Communication Technology Co., Ltd. | Subsidiary | Production of mobile communication system equipment and related products | 40.00 | 30.9214 | 25.6503 | 9.4168 | 1.0941 | 0.9460 | | Wuhan Hongfu Software Co., Ltd. | Subsidiary | Software development related to mobile communication technical services | 10.00 | 24.3527 | 22.8033 | 5.4513 | 1.9147 | 1.9147 | | CICT Mobile Communication (Indonesia) Co., Ltd. | Subsidiary | Conducts mobile communication business in Indonesia | 2,700.00 (million Indonesian Rupiah) | 32.9482 | 31.4975 | -0.0752 | -1.8047 | -2.5456 | Part IV Corporate Governance, Environment, and Social Responsibility I. Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel During the reporting period, senior management changes occurred: Sun Shaohui, Yu Daomin, and Tian Yuxing resigned as Deputy General Managers. Sun Shaohui remains Chief Scientist, while Tian Yuxing no longer holds a position. The Board appointed Fu Xiang as Deputy General Manager H1 2025 Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel | Name | Position Held | Change Status | | :------- | :------------ | :------------ | | Sun Shaohui | Deputy General Manager | Resigned | | Yu Daomin | Deputy General Manager | Resigned | | Tian Yuxing | Deputy General Manager | Resigned | | Fu Xiang | Deputy General Manager | Appointed | - Sun Shaohui resigned as Deputy General Manager due to work changes, remaining a core technical personnel and Chief Scientist after resignation[84] - Yu Daomin resigned as Deputy General Manager due to personal reasons[85] - Tian Yuxing resigned as Deputy General Manager due to work changes and will no longer hold a position in the company after resignation[85] - The company appointed Fu Xiang as Deputy General Manager, with a term until the expiration of the second Board of Directors[86] II. Profit Distribution or Capital Reserve Conversion Plan The company's proposed semi-annual profit distribution or capital reserve conversion plan is 'none', indicating no distribution or conversion during this reporting period - The company's proposed semi-annual profit distribution or capital reserve conversion plan is 'No', with no distribution or conversion planned[86] IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law During the reporting period, the company fulfilled environmental responsibilities, with no pollution incidents and all pollutants meeting discharge standards. It consumes water, electricity, and natural gas, discharging exhaust gas, sewage, solid waste, noise, and minor hazardous waste/EMF, all treated by stable and efficient environmental facilities - During the reporting period, the company experienced no environmental pollution incidents, and all pollutants generated during production and operation met discharge standards[88] - The company's primary energy consumption includes water, electricity, and natural gas; main emissions consist of exhaust gas, domestic sewage, solid waste, noise, and small amounts of hazardous waste and electromagnetic radiation[88] - The company has registered for fixed pollution source discharge permits; general solid waste and small amounts of hazardous waste are recycled and disposed of by qualified entities; domestic sewage is pre-treated before discharge to wastewater treatment plants; exhaust gas and noise are managed with purification and noise reduction measures; and electromagnetic radiation is handled under shielded conditions[89] V. Specifics of Consolidating Poverty Alleviation Achievements and Rural Revitalization Efforts The company actively engaged in poverty alleviation and rural revitalization, deploying staff to Jindun Village, Hubei, as First Secretary and team leader. Over five years, it utilized over 5 million yuan in group funds for 30 projects, supporting industry, infrastructure, and humanitarian care. Jindun Village received national and provincial honors, and company cadres were recognized as excellent youth cadres - The company dispatched employees to Jindun Village, Dawu County, Hubei, to serve as First Secretary and leader of the village working team, adhering to the 'Four Unforgettables' work philosophy[90] - Over five years, the company effectively utilized over 5 million yuan in gratuitous group assistance funds, focusing on supporting industrial development, infrastructure construction, and humanitarian care, implementing 30 aid projects[90] - Jindun Village received multiple honors, including the national '12th Batch of National 'One Village, One Product' Demonstration Villages', 'Outstanding Unit for Consolidating Poverty Alleviation Achievements and 'Three Actions'', and 'Hubei Province Top 100 Village Committees'[90] Part V Significant Matters I. Fulfillment of Commitments This section details the fulfillment of commitments by the company, its actual controller, shareholders, and related parties, covering share lock-up, holding/reduction intentions, price stabilization, diluted return compensation, profit distribution, information disclosure, avoiding competition, standardizing related-party transactions, preventing fund occupation, and non-fulfillment penalties. All commitments were strictly met without violations - The share lock-up period for the company's controlling shareholder, CICT, was automatically extended by 6 months to March 25, 2026, and voluntarily extended again by 6 months to September 25, 2026[95][96] - The share lock-up period for the company's shareholder, Hubei Yangtze 5G Fund, is 36 months from the date of stock listing[97] - The company, its controlling shareholder, directors, and senior management all committed to strictly adhere to the share price stabilization plan and take corresponding measures when trigger conditions are met[100][101][102][103] - The company committed to compensate for diluted immediate returns by strengthening market expansion, promoting technological innovation, enhancing raised capital management, improving operational efficiency, and perfecting the profit distribution system[104][105][106] - The company's controlling shareholder, CICT, committed to avoid horizontal competition and take measures regarding competing businesses with significant adverse effects, prioritizing their transfer to the issuer[115][116][117] - The company's controlling shareholder and other major shareholders, directors, supervisors, and senior management committed to reduce and standardize related-party transactions, ensuring fairness and impartiality of transactions[118][119][120][121][122][123] - The company's controlling shareholder, CICT, committed to prevent the illegal occupation or transfer of funds, assets, and other resources of the issuer and its subsidiaries in any form[124] - All parties related to the commitments pledged to bear corresponding legal responsibilities if commitments are not fulfilled, including publicly explaining reasons, apologizing, and compensating investors for losses, among other disciplinary measures[126][127][128][129] VII. Significant Litigation and Arbitration Matters During the reporting period, the company faced three significant litigation/arbitration matters. Subsidiary Datang Mobile sued Spreadtrum Communications for a 681 million yuan technical cooperation dispute, with asset preservation applied. Two other lawsuits against subsidiaries involve a 4.1229 million yuan road freight dispute and a 3.0361 million yuan construction contract dispute, both pending judgment - Subsidiary Datang Mobile's technical cooperation development contract dispute with Spreadtrum Communications (Shanghai) Co., Ltd. involves 681 million yuan, with asset preservation applied, and the case has not yet been heard[133] - Subsidiary Datang Mobile is involved in a road freight transportation contract dispute with Shanghai Xuxiao Logistics Co., Ltd., involving 4.1229 million yuan; the company appealed after the first-instance judgment, and the second instance is currently underway[134] - Subsidiary Shanghai Datang is involved in a construction project contract dispute with natural person Luo, involving 3.0361 million yuan; the case has been remanded for retrial[135] X. Significant Related-Party Transactions This section discloses H1 2025 ordinary related-party transactions, including procurement, sales, and property leases. Actual transaction amounts were significantly below estimates. The company also has financial dealings with CICT (Beijing) Finance Co., Ltd., with an ending deposit balance of 1.304 billion yuan and actual credit utilization of 20.3829 million yuan H1 2025 Actual Ordinary Related-Party Transactions (Partial) | Related-Party Transaction Type | Related Party | 2025 Estimated Amount (million yuan) | Actual Amount as of June 30, 2025 (million yuan) | Actual Amount as % of Estimated Amount | | :---------------------------- | :------------ | :----------------------------------- | :----------------------------------------------- | :----------------------------------- | | Procurement of goods and services from related parties | FiberHome Communications Technology Co., Ltd. | 175.00 | 8.0941 | 4.63% | | Sales of goods and services to related parties | Wuhan Smart Metro Technology Co., Ltd. | 50.00 | 7.3107 | 14.62% | | Lease-in of properties from related parties | Beijing Beifang FiberHome Technology Co., Ltd. | 15.00 | 6.1928 | 41.29% | | Lease-out of properties to related parties | China Information Communication Technology Group Co., Ltd. and its controlled companies | 7.00 | 2.5839 | 36.91% | H1 2025 Deposit Business with Related Finance Company | Related Party | Related Relationship | Maximum Daily Deposit Limit (yuan) | Deposit Interest Rate Range | Beginning Balance (yuan) | Total Deposits This Period (yuan) | Total Withdrawals This Period (yuan) | Ending Balance (yuan) | | :------------ | :------------------- | :------------------------- | :-------------------------- | :----------------------- | :-------------------------- | :-------------------------- | :----------------------- | | CICT (Beijing) Finance Co., Ltd. | Same ultimate controlling party | 1,400,000,000.00 | 0.25%-1.65% | 1,291,403,493.41 | 4,803,196,308.06 | 4,790,531,829.93 | 1,304,067,971.54 | H1 2025 Loan Business with Related Finance Company | Related Party | Related Relationship | Loan Limit (yuan) | Loan Interest Rate Range | Beginning Balance (yuan) | Total Loans This Period (yuan) | Total Repayments This Period (yuan) | Ending Balance (yuan) | | :------------ | :------------------- | :---------------- | :----------------------- | :----------------------- | :-------------------------- | :-------------------------- | :-------------------- | | CICT (Beijing) Finance Co., Ltd. | Same ultimate controlling party | 600,000,000.00 | 2.40%-2.45% | 250,000,000.00 | 250,000,000.00 | - | - | H1 2025 Credit Line Business with Related Finance Company | Related Party | Related Relationship | Business Type | Total Amount (yuan) | Actual Amount (yuan) | | :------------ | :------------------- | :------------ | :------------------ | :------------------- | | CICT (Beijing) Finance Co., Ltd. | Same ultimate controlling party | Credit Line | 360,000,000.00 | 20,382,917.78 | XII. Explanation of Progress in Use of Raised Funds The company's IPO net proceeds were 4.137 billion yuan, with 3.287 billion yuan cumulatively invested by period-end, reaching 81.95% progress. Implementation periods for three 5G R&D projects were extended to December 31, 2026. Idle raised funds of 67 million yuan were used for cash management H1 2025 Overall Use of Raised Funds | Source of Raised Funds | Net Raised Funds (1) (yuan) | Cumulative Raised Funds Invested as of Period End (4) (yuan) | Cumulative Investment Progress (%) = (4)/(1) | | :--------------------- | :-------------------------- | :----------------------------------------------------------- | :------------------------------------------- | | Initial Public Offering | 4,136,687,500.00 | 3,287,409,005.84 | 81.95 | H1 2025 Details of Raised Fund Investment Projects (Partial) | Project Name | Total Planned Investment of Raised Funds (1) (yuan) | Cumulative Raised Funds Invested as of Period End (4) (yuan) | Investment Progress (%) = (4)/(1) | Date Project Expected to Reach Usable State | | :------------------------------------------------- | :------------------------------------------ | :----------------------------------------------------------- | :-------------------------------- | :--------------------------------- | | 5G Wireless System Product Upgrade and Technology Evolution R&D Project | 2,280,219,100.00 | 1,720,532,950.58 | 75.45 | 2026/12/31 | | 5G Industry Private Network and Intelligent Application R&D Project | 419,647,000.00 | 293,954,784.79 | 70.05 | 2026/12/31 | | 5G Integrated Antenna and New Indoor Distribution Equipment R&D Project | 311,459,237.31 | 254,847,641.66 | 81.82 | 2026/12/31 | | Supplement Working Capital/Repay Bank Loans | 1,000,000,000.00 | 1,018,073,628.81 | 101.81 | N/A | - The company extended the implementation period for the '5G Wireless System Product Upgrade and Technology Evolution R&D Project', '5G Industry Private Network and Intelligent Application R&D Project', and '5G Integrated Antenna and New Indoor Distribution Equipment R&D Project' to December 31, 2026[155] - The company used a portion of temporarily idle raised funds for cash management, with an ending balance of 67 million yuan as of the reporting period end, not exceeding the authorized limit[153][154] Part VI Share Changes and Shareholder Information I. Share Capital Changes During the reporting period, the company's total ordinary shares and share capital structure remained unchanged - During the reporting period, there were no changes in the company's total ordinary shares or share capital structure[159] II. Shareholder Information As of period-end, the company had 47,329 ordinary shareholders. Among the top ten, CICT Group held 41.01% and Hubei Yangtze CICT Mobile Fund held 18.66%, both restricted. CDB Manufacturing Fund reduced its holdings by 30 million shares, ending with 8.19% unrestricted tradable shares - As of the end of the reporting period, the total number of ordinary shareholders was 47,329[160] H1 2025 Top Ten Shareholders' Holdings | Shareholder Name | Change During Reporting Period | Ending Shareholding (shares) | % | Number of Restricted Shares Held | Share Status | | :------------------------------------------------- | :--------------------------- | :--------------------------- | :------ | :------------------------------- | :----------- | | China Information Communication Technology Group Co., Ltd. | 0 | 1,401,972,800 | 41.01 | 1,401,972,800 | No pledge | | Hubei Yangtze CICT Mobile Communication Technology Industry Investment Fund Partnership (Limited Partnership) | 0 | 638,027,200 | 18.66 | 638,027,200 | No pledge | | CDB Manufacturing Transformation and Upgrading Fund (Limited Partnership) | -30,000,000 | 280,000,000 | 8.19 | 0 | No pledge | | China State-owned Enterprise Restructuring Fund Co., Ltd. | 0 | 85,812,500 | 2.51 | 0 | No pledge | | Gongqingcheng Haide Maxwell Equity Investment Partnership (Limited Partnership) | 0 | 25,689,637 | 0.75 | 0 | No pledge | | CSI 500 ETF | 912,651 | 20,194,868 | 0.59 | 0 | No pledge | | CETC (Nanjing) Industry Investment Fund Partnership (Limited Partnership) | 0 | 20,000,000 | 0.59 | 0 | No pledge | | Guangzhou State-owned Assets Industry Development Equity Investment Fund Partnership (Limited Partnership) | 0 | 18,818,143 | 0.55 | 0 | No pledge | | Hangzhou Jiafu Zeyong Investment Partnership (Limited Partnership) | 0 | 17,870,000 | 0.52 | 0 | No pledge | | Hong Kong Securities Clearing Company Limited | 8,165,941 | 15,580,777 | 0.46 | 0 | No pledge | - China Information Communication Technology Group Co., Ltd. indirectly holds a portion of the property shares of Hubei Yangtze CICT Mobile Communication Technology Industry Investment Fund Partnership (Limited Partnership), forming a concerted action relationship[163] - The executive partner of CDB Manufacturing Fund and CDB Sci-Tech are both wholly-owned subsidiaries of CDB Financial Co., Ltd., forming a concerted action relationship[163] H1 2025 Top Ten Restricted Shareholders' Holdings | No. | Name of Restricted Shareholder | Number of Restricted Shares Held | Date Available for Trading | Restriction Conditions | | :-- | :----------------------------- | :------------------------------- | :------------------------- | 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