超讯通信(603322) - 2025 Q2 - 季度财报

Section I Definitions This section provides definitions of common terms used in the report, including company names, major subsidiary names, and industry-related technical terms, ensuring clear understanding of the report content Definitions of Common Terms This chapter provides definitions of common terms used in the report, including company names, major subsidiary names, and industry-related technical terms (e.g., 5G, IoT, core network, GPU), ensuring clear understanding of the report content - The reporting period refers to January-June 2025[13] - Company, the Company, the Group, and Chaoxun Communication all refer to Chaoxun Communication Co., Ltd[13] - GPU, or Graphics Processing Unit, is a specialized chip in computers for graphics processing, determining the grade and most performance of graphics cards, capable of handling tasks like graphics rendering and parallel computing[14] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and key financial performance indicators for the reporting period I. Company Information This section outlines the basic information of Chaoxun Communication Co., Ltd., including its Chinese name, abbreviation, foreign name, and legal representative, providing essential identification for investors - The company's Chinese name is Chaoxun Communication Co., Ltd., abbreviated as Chaoxun Communication[16] - The company's legal representative is Liang Jianhua[16] II. Contact Persons and Information This section provides the names, contact addresses, phone numbers, faxes, and email addresses of the company's Board Secretary and Securities Affairs Representative, facilitating communication and information inquiries for investors - The Board Secretary is Lu Peimin, and the Securities Affairs Representative is He Haoyong[17] - The company's contact address is 28th Floor, Building E, Greenland Central Plaza, No. 48 Kexue Avenue, Huangpu District, Guangzhou[17] III. Brief Introduction to Changes in Basic Information This section details the company's registered and office addresses, noting that historical changes to the registered address can be found in the announcement disclosed on August 27, 2020 - The company's registered address is Room 401, 4th Floor, No. 1025 Gaopu Road, Tianhe District, Guangzhou[18] - The company's office address is 28th Floor, Building E, Greenland Central Plaza, No. 48 Kexue Avenue, Huangpu District, Guangzhou[18] IV. Brief Introduction to Changes in Information Disclosure and Document Storage Locations This section specifies the company's designated newspapers and website for information disclosure, as well as the location for storing the semi-annual report, ensuring compliance and transparency in information dissemination - The newspapers selected by the company for information disclosure include China Securities Journal, Shanghai Securities News, Securities Times, and Securities Daily[19] - The website address for publishing the semi-annual report is **http://www.sse.com.cn**[19](index=19&type=chunk) V. Company Stock Profile This section provides basic information about the company's stock, including its type, listing exchange, stock abbreviation, and stock code - The company's stock is A-shares, listed on the Shanghai Stock Exchange, with stock abbreviation Chaoxun Communication and stock code 603322[20] VII. Key Accounting Data and Financial Indicators This section discloses the company's key accounting data and financial indicators for the first half of 2025, showing significant year-on-year growth in operating revenue and net profit, a positive shift in net cash flow from operating activities, a notable increase in net assets, and a slight decrease in total assets Key Accounting Data for H1 2025 | 主要会计数据 (1-6月) | Current Period (CNY) | Prior Period (CNY) | YoY Change (%) | | :--------------------- | :------------------- | :----------------- | :------------- | | Operating Revenue | 1,610,729,474.89 | 820,250,121.52 | 96.37 | | Total Profit | 74,606,330.86 | 36,801,526.00 | 102.73 | | Net Profit Attributable to Shareholders of Listed Company | 72,089,567.79 | 28,241,250.69 | 155.26 | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 71,464,980.15 | 27,490,429.77 | 159.96 | | Net Cash Flow from Operating Activities | 74,750,943.20 | -111,483,674.57 | 167.05 | | Net Assets Attributable to Shareholders of Listed Company (Period End) | 300,325,172.39 | 228,235,468.71 | 31.59 | | Total Assets (Period End) | 2,339,856,332.94 | 2,736,848,750.38 | -14.51 | Key Financial Indicators for H1 2025 | 主要财务指标 (1-6月) | Current Period | Prior Period | YoY Change (%) | | :--------------------- | :------------- | :----------- | :------------- | | Basic Earnings Per Share (CNY/share) | 0.46 | 0.18 | 155.56 | | Diluted Earnings Per Share (CNY/share) | 0.46 | 0.18 | 155.56 | | Basic Earnings Per Share Excluding Non-Recurring Gains and Losses (CNY/share) | 0.45 | 0.17 | 164.71 | | Weighted Average Return on Net Assets (%) | 27.28 | 9.13 | Increased by 18.15 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Gains and Losses (%) | 27.04 | 8.88 | Increased by 18.16 percentage points | - Operating revenue increased by 96.37%, primarily due to the company's computing power construction business meeting acceptance conditions and recognizing related project revenue[23] - Net profit increased by 155.26%, mainly due to the company's role as the national general agent for Muxi's domestic GPU chips in specific industries, continuously improving delivery capabilities and completing bulk deliveries, as well as the recognition of revenue and profit from computing power construction business[24] - Net cash flow from operating activities increased by 167.05%, primarily due to a decrease in payments for matured payables during the reporting period[24] IX. Non-Recurring Gains and Losses Items and Amounts This section lists the company's non-recurring gains and losses items and their amounts for the first half of 2025, totaling 624,587.64 CNY, primarily including gains/losses from disposal of non-current assets, government grants, and fair value changes of financial assets Non-Recurring Gains and Losses Items for H1 2025 | Non-Recurring Gains and Losses Item | Amount (CNY) | | :---------------------------------- | :----------- | | Gains/losses from disposal of non-current assets | -97,993.46 | | Government grants recognized in profit or loss for the current period | 283,131.94 | | Gains/losses from changes in fair value of financial assets and liabilities held by non-financial enterprises and gains/losses from disposal of financial assets and liabilities | 792,988.26 | | Other non-operating income and expenses apart from the above items | -322,733.00 | | Less: Income tax impact | 58,853.94 | | Minority interests impact (after tax) | -28,047.84 | | Total | 624,587.64 | Section III Management Discussion and Analysis This section provides a comprehensive discussion and analysis of the company's industry, business operations, financial performance, and risk factors during the reporting period I. Explanation of the Company's Industry and Main Business Operations During the Reporting Period This section elaborates on the development trends of the new generation information technology industry, particularly national policies and regional development plans in computing power, and introduces the company's "Intelligent Computing" and "Information & Communication" dual-engine business model, along with its six major areas of focus: computing power, data, AI, communication services, ICT, and new energy (I) Industry Situation of the Company During the Reporting Period 2025 is a critical year for the implementation of computing power standards, with the National Data Bureau issuing multiple technical standards to deepen the "East-to-West Computing Resource Transfer" project, aiming for national hub nodes to account for over 60% of new computing power by the end of 2025. The State Council's executive meeting approved opinions on the "AI+" action, promoting the integration of AI with various fields. Local governments have also successively introduced policies to vigorously develop intelligent computing infrastructure, and the Ministry of Industry and Information Technology issued the "Computing Power Interconnection Action Plan," aiming to basically achieve standardized interconnection of national public computing power by 2028 - 2025 is a critical year for the implementation of computing power standards, with western hub nodes leveraging green electricity advantages to meet computing power demands, while eastern regions focus on AI applications[30] - The National Data Bureau released 9 computing power technical standards, aiming for national hub nodes to account for over 60% of new computing power by the end of 2025, deepening the implementation of the "East-to-West Computing Resource Transfer" project[30] - The State Council's executive meeting approved the "Opinions on Deeply Implementing the 'AI+' Action," proposing to build a collaborative system of "computing power + algorithms + data" to promote the integration of AI with manufacturing, healthcare, and other fields[30] - The Ministry of Industry and Information Technology issued the "Computing Power Interconnection Action Plan," planning to establish a relatively complete computing power interconnection standard system by 2026 and basically achieve standardized interconnection of national public computing power by 2028[31] (II) Company's Business Operations During the Reporting Period With over two decades of experience in the new generation information technology industry, the company has established a dual-engine business model centered on "Intelligent Computing" and "Information & Communication" through strategic investments and technological collaborations, covering six major areas: computing power, data, AI, communication services, ICT, and new energy. The Intelligent Computing segment primarily provides computing hardware, software, and operation and maintenance services through customized solutions and supply chain procurement, while the Information & Communication segment offers network construction, maintenance, and optimization services for communication operators and China Tower, as well as IoT integrated solutions and IDC services, through public bidding - The company has built a dual-engine business development model centered on "Intelligent Computing" and "Information & Communication," along with six major layouts: "Computing Power + Data + AI" and "Communication Services + ICT + New Energy"[33] - The Intelligent Computing segment includes computing power business, data business, and AI business; the Information & Communication segment includes communication services business, ICT business, and new energy business[34][36] - The operating model for computing power business involves customizing solutions based on customer needs, providing computing hardware, supporting software, and professional technical services and operation and maintenance guarantees[36] - Communication technical services business primarily provides network construction, maintenance, and optimization services for communication operators and China Tower through public bidding[36] 3. Company's Market Position As one of China's earliest private enterprises to engage in computing power business, the company's operations span across China and parts of overseas markets. It serves as the Vice Chairman Unit of the Metaverse Professional Committee of the China Electronics Chamber of Commerce and the national general distributor for Muxi Co., Ltd. The company focuses on providing computing equipment sales, computing center construction and operation, computing power leasing, data element operation, AI multimodal applications, energy saving and storage, and new energy operation services, facilitating digital transformation - The company is one of China's earliest private enterprises to engage in computing power business, with operations covering the entire country and some overseas markets[37] - The company is the Vice Chairman Unit of the Metaverse Professional Committee of the China Electronics Chamber of Commerce and the national general distributor for Muxi Co., Ltd[37] - The company provides services such as computing equipment sales, computing center construction and operation, computing power leasing, data element operation, AI multimodal applications, energy saving and storage, and new energy operation[38] II. Discussion and Analysis of Operations In the first half of 2025, despite macroeconomic pressures, the company achieved stable and improving operating performance by leveraging its core advantages in computing power, completing bulk server deliveries, establishing Xunxi Intelligent for chip technology services and server production, expanding into overseas new energy markets, and systematically conducting traditional communication technical services - As the general agent for Muxi GPU in the industry, the company achieved efficient sales and delivery of bulk GPU computing cards in the first half of the year, fully demonstrating its resource integration capabilities and project execution[38] - The company, along with Muxi Co., Ltd. and two other parties, jointly invested in establishing Xunxi Intelligent, aiming to undertake core businesses such as chip technology services and the production, sales, and maintenance of its own brand "Yuanxing" servers[39] - The company won the bid for the 150MW distributed photovoltaic power station project in Mashan County, was shortlisted for China Tower Energy Co., Ltd.'s Gansu Branch energy business partner recruitment project, and signed a memorandum of understanding for a photovoltaic power project with Electricite du Laos, expanding its new energy market[39][40] - In traditional business, the company successfully entered the shortlist for Jiangmen Mobile's ICT business partner and Guangdong Unicom's comprehensive service professional partner recruitment projects, and won bids for multiple communication access and infrastructure engineering projects for Guangdong Mobile[40] III. Analysis of Core Competitiveness During the Reporting Period During the reporting period, the company's core competitiveness remained unchanged, indicating a stable advantage in market competition - During the reporting period, the company's core competitiveness did not undergo significant changes[41] IV. Main Operating Conditions During the Reporting Period This section analyzes the company's financial statement item changes for the first half of 2025, where operating revenue and costs significantly increased due to the recognition of computing power construction business, and financial expenses substantially decreased due to reduced interest expenses on short-term borrowings. Concurrently, the asset-liability structure changed, with decreases in notes receivable and inventory, increases in prepayments and right-of-use assets, decreases in short-term borrowings and contract liabilities, and increases in other payables and taxes payable (I) Analysis of Main Business The analysis of the company's main business shows that in the first half of 2025, operating revenue increased by 96.37% year-on-year, and operating costs increased by 108.51% year-on-year, primarily driven by the recognition of revenue and costs from the computing power construction business. Financial expenses decreased by 81.79% year-on-year, mainly due to reduced interest expenses on short-term borrowings. Investment income increased by 299.86% year-on-year, mainly due to increased returns from the investment in Guangdong Tusheng Analysis Table of Changes in Financial Statement Items | Item | Current Period (CNY) | Prior Period (CNY) | Change (%) | | :------------------------- | :------------------- | :----------------- | :--------- | | Operating Revenue | 1,610,729,474.89 | 820,250,121.52 | 96.37 | | Operating Cost | 1,474,258,744.88 | 707,036,633.95 | 108.51 | | Financial Expenses | 1,523,504.73 | 8,366,435.47 | -81.79 | | Investment Income | 2,307,412.55 | -1,154,515.57 | 299.86 | | Net Cash Flow from Operating Activities | 74,750,943.20 | -111,483,674.57 | 167.05 | | Net Cash Flow from Financing Activities | -56,070,072.59 | 67,649,267.91 | -182.88 | - Operating revenue and operating costs changes were primarily due to the company's computing power construction business meeting acceptance conditions and recognizing related project revenue and costs during the reporting period[42][43] - Changes in financial expenses were primarily due to a decrease in interest expenses on short-term borrowings during the reporting period[43] - Changes in investment income were primarily due to increased returns from the investment in Guangdong Tusheng during the reporting period[44] (III) Analysis of Assets and Liabilities The company's asset and liability structure underwent significant changes at the end of the reporting period. Notes receivable and inventory substantially decreased, mainly due to a reduction in commercial acceptance bills and the delivery of data center projects. Prepayments and right-of-use assets significantly increased, attributed to increased payments to suppliers and the acquisition of right-of-use assets for leased parking spaces by a subsidiary, respectively. Short-term borrowings and contract liabilities decreased, primarily due to repayment of borrowings and the recognition of computing power business revenue. Other payables and taxes payable increased, due to increased intercompany receivables and deferred output VAT, respectively Changes in Assets and Liabilities | Item Name | Current Period End (CNY) | Proportion of Total Assets at Period End (%) | Prior Period End (CNY) | Proportion of Total Assets at Prior Period End (%) | Change from Prior Period End (%) | Explanation | | :--------------------- | :----------------------- | :------------------------------------------- | :--------------------- | :------------------------------------------- | :------------------------------- | :---------- | | Notes Receivable | 1,001,710.81 | 0.04 | 22,962,984.56 | 0.84 | -95.64 | Primarily due to a decrease in commercial acceptance bills received by the company | | Prepayments | 388,421,481.06 | 16.60 | 214,564,509.59 | 7.84 | 81.03 | Primarily due to an increase in payments to suppliers | | Inventory | 209,655,390.47 | 8.96 | 774,858,138.57 | 28.31 | -72.94 | Primarily due to the completion and delivery of the company's Tianjin and Hebei regional data center projects during the reporting period | | Right-of-Use Assets | 18,882,797.42 | 0.81 | 6,059,494.12 | 0.22 | 211.62 | Primarily due to an increase in right-of-use assets for leased parking spaces by subsidiary Huitongda during the reporting period | | Short-Term Borrowings | 121,270,412.98 | 5.18 | 218,206,298.16 | 7.97 | -44.42 | Primarily due to the repayment of matured short-term borrowings during the reporting period | | Contract Liabilities | 478,590,284.69 | 20.45 | 851,936,799.99 | 31.13 | -43.82 | Primarily due to the computing power business meeting revenue recognition conditions during the reporting period | | Taxes Payable | 164,118,889.20 | 7.01 | 119,802,376.98 | 4.38 | 36.99 | Primarily due to an increase in deferred output VAT during the reporting period | | Other Payables | 201,582,700.73 | 8.62 | 132,936,662.15 | 4.86 | 51.64 | Primarily due to an increase in intercompany receivables during the reporting period | - As of the end of the reporting period, 22,390,898.61 CNY of the company's monetary funds were restricted due to bills and performance bonds[47] (IV) Analysis of Investment Status In the first half of 2025, the company actively engaged in external equity investments, establishing new controlling subsidiaries Xunxi Intelligent and Huitongda, and acquiring stakes in Kexun Zhisuo (Beijing) Technology Co., Ltd. and increasing capital in Jiangsu Baoming Construction Group Co., Ltd. Additionally, the wholly-owned subsidiary Chaoxun Energy established Chaorui Digital. In terms of non-equity investments, the Ninghuai Green Digital Economy Computing Center project continued construction, with a cumulative investment of 41,533,784.53 CNY. The company also held other non-current financial assets measured at fair value totaling 85,243,892.92 CNY - In the first half of 2025, the company invested in establishing controlling subsidiaries Xunxi Intelligent (56% stake) and Huitongda (51% stake)[49] - The company acquired a 15% stake in Kexun Zhisuo (Beijing) Technology Co., Ltd. and increased capital in Jiangsu Baoming Construction Group Co., Ltd., obtaining a 9.4164% equity stake[49] - Wholly-owned subsidiary Chaoxun Energy established Chaorui Digital (51% stake)[49] Significant Non-Equity Investment Status | Project Name | Actual Investment This Year (CNY) | Cumulative Actual Investment (CNY) | Source of Funds | Project Progress | Expected Return | | :------------------------- | :------------------------ | :------------------------- | :-------------- | :--------------- | :-------------- | | Ninghuai Green Digital Economy Computing Center | 186,199.28 | 41,533,784.53 | Own Funds | Under Construction | Not Applicable | Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (CNY) | Amount Purchased This Period (CNY) | Ending Balance (CNY) | | :------------- | :---------------------- | :--------------------------------- | :------------------- | | Other | 74,143,892.92 | 11,100,000.00 | 85,243,892.92 | (VI) Analysis of Major Holding and Participating Companies This section lists the financial data of the company's major controlling subsidiaries, including Chaoxun Digital, Chaoxun Energy, Chaoxun Equipment, Kangli IoT, and Chaoxun Future. Among them, Chaoxun Digital reported a negative net profit during the reporting period, while Kangli IoT and Chaoxun Future achieved profitability. During the reporting period, the company disposed of its subsidiary Chongqing Chaoxun Financial Data of Major Wholly-Owned Subsidiaries | Company Name | Shareholding (%) | Registered Capital (10,000 CNY) | Main Business | Total Assets at Period End (10,000 CNY) | Net Assets at Period End (10,000 CNY) | Net Profit for the Period (10,000 CNY) | | :----------- | :--------------- | :------------------------------ | :------------ | :-------------------------------------- | :------------------------------------ | :------------------------------------- | | Chaoxun Digital | 100 | 10,500.00 | Computing Power Business | 60,956.65 | 19,440.49 | -1,162.48 | | Chaoxun Energy | 100 | 10,000.00 | Energy Services | 2,259.75 | 2,242.60 | 4.31 | | Chaoxun Equipment | 100 | 13,000.00 | Electronic Equipment Manufacturing | 69,360.92 | 17,058.91 | 1,309.71 | Financial Data of Major Controlling Subsidiaries | Company Name | Company Type | Registered Capital (10,000 CNY) | Main Business | Total Assets at Period End (10,000 CNY) | Net Assets at Period End (10,000 CNY) | Operating Revenue for the Period (10,000 CNY) | Operating Profit for the Period (10,000 CNY) | Net Profit for the Period (10,000 CNY) | | :----------- | :----------- | :------------------------------ | :------------ | :-------------------------------------- | :------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------- | | Kangli IoT | Subsidiary | 1,285.68 | IoT Smart Logistics Integrated Services | 13,520.54 | 6,410.51 | 6,172.35 | 77.98 | 70.96 | | Chaoxun Future | Subsidiary | 10,000.00 | Internet Information Services | 20,248.35 | 109.84 | 31,833.18 | 235.29 | 197.05 | - During the reporting period, the company disposed of its subsidiary Chongqing Chaoxun through transfer[55] V. Other Disclosure Matters This section details eight potential risks faced by the company, including customer concentration risk, high accounts receivable and bad debt risk, technical development risk for supporting facilities, profit reduction risk due to intensified market competition, revenue decline risk in communication technical services, M&A integration risk, goodwill impairment risk, and future development and operational uncertainty risks. The company has proposed corresponding countermeasures for each risk to ensure continuous and stable development - The company faces customer concentration risk, with China Mobile being a major client, and will actively expand new customers to reduce reliance[57] - The company faces risks of high accounts receivable and potential bad debts, and will strengthen dynamic management of accounts receivable and customer communication to mitigate these risks[57] - The company faces risks of future development and operational uncertainty, with a relatively high asset-liability ratio and significant pressure on operating funds; the company will strengthen its intelligent computing business, ensure financing and collections, enhance cost and expense control, and reinforce internal control construction to address these challenges[59] Section IV Corporate Governance, Environment, and Society This section covers changes in the company's governance structure, profit distribution plans, employee incentive programs, environmental information disclosure, and contributions to poverty alleviation and rural revitalization I. Changes in Directors, Supervisors, and Senior Management This section discloses changes in the company's senior management, specifically the departure of Chief Financial Officer Hu Hongyue and the appointment of Guo Yanqi as the new Chief Financial Officer - Chief Financial Officer Hu Hongyue resigned, and Guo Yanqi was appointed as the Chief Financial Officer[62] II. Profit Distribution or Capital Reserve Conversion Plan During the reporting period, the company's board of directors resolved not to proceed with a profit distribution or capital reserve conversion plan - The company will not carry out profit distribution or capital reserve conversion into share capital during the reporting period[6] - The proposed semi-annual profit distribution plan and capital reserve conversion plan are "No"[62] III. Status and Impact of the Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures In April 2025, the company reviewed and approved a proposal to cancel some stock options, which was completed in June, due to the departure of some incentive recipients and the company's failure to meet the performance targets of the 2022 stock option incentive plan - The company convened its Board of Directors and Supervisory Board meetings on April 29, 2025, and approved the "Proposal on Cancelling Partial Stock Options"[63] - Due to the departure of some incentive recipients from the 2022 stock option incentive plan and the company's failure to meet performance targets, the company completed the cancellation of stock options in June 2025[63] IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law During this reporting period, the company was not included in the list of enterprises required to disclose environmental information by law, hence there is no relevant environmental information to disclose V. Specifics of Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Related Work During this reporting period, the company has no specific details to disclose regarding consolidating and expanding poverty alleviation achievements, rural revitalization, or other related work Section V Significant Matters This section details significant events and commitments during the reporting period, including the fulfillment of commitments, audit status, changes in non-standard audit opinions, major litigations, related party transactions, and significant contracts I. Fulfillment of Commitments This section details the fulfillment of various commitments made by the company, its controlling shareholder, and actual controller Liang Jianhua in the context of initial public offerings and equity incentives. All commitments, including those related to the truthfulness of information disclosure, avoidance of horizontal competition, share lock-up, employee rights protection, and prevention of fund occupation, have been timely and strictly fulfilled - The company committed that if the prospectus contains false records, misleading statements, or major omissions, it will repurchase all newly issued shares and compensate investors for losses in accordance with the law; this commitment has been timely and strictly fulfilled[67] - Liang Jianhua, the company's controlling shareholder and actual controller, committed to avoiding horizontal competition, and this commitment has been timely and strictly fulfilled[71] - The company committed not to provide loans or any other form of financial assistance to equity incentive recipients, and this commitment has been timely and strictly fulfilled[75] IV. Semi-Annual Report Audit Status This semi-annual report has not been audited - This semi-annual report has not been audited[5] V. Changes and Handling of Matters Related to Non-Standard Audit Opinions in the Prior Year's Annual Report In response to the qualified opinion and emphasis of matter regarding going concern uncertainty in the 2024 audit report, the company has actively taken measures. For overdue accounts receivable from computing power business, 167 million CNY has been recovered, and collection efforts are ongoing. To address going concern uncertainty, management has formulated proactive measures, including strengthening the "Intelligent Computing" new main business, ensuring financing and collections, enhancing cost and expense control, and reinforcing internal control construction - The 2024 annual audit report contained a qualified opinion regarding the recoverability and reasonableness of bad debt provision for accounts receivable and other receivables totaling 522.3106 million CNY from a single client in the computing power business[77] - As of the disclosure date of this report, 167 million CNY of the aforementioned overdue accounts receivable and other receivables have been recovered, and the company will continue to strengthen collection efforts[78] - The company's management has formulated measures such as strengthening the "Intelligent Computing" new main business, ensuring financing and collections, enhancing cost and expense control, and reinforcing internal control construction to address the uncertainty of its going concern ability[79][80][81][82][83] VII. Significant Litigation and Arbitration Matters This section discloses the company's significant litigation and arbitration matters during the reporting period. The lawsuit with Lanzhou Kewenlv regarding cooperation intention funds has resulted in a court judgment ordering Lanzhou Kewenlv to repay the principal and capital occupation fees. The creditor's subrogation lawsuit with Inspur Software Group has been settled through mediation - The company's lawsuit against Lanzhou Kewenlv for the recovery of cooperation intention funds has received a "Civil Judgment," ordering Lanzhou Kewenlv to return the cooperation intention funds and capital occupation fees to the company[84] - Inspur Software Group filed a creditor's subrogation lawsuit against the company and its subsidiary due to a transaction dispute with the company's client Jining Ninghua, which was settled through a mediation agreement in October 2024[84] X. Significant Related Party Transactions This section discloses the company's significant related party transactions during the reporting period. The company had related party transactions involving the acceptance of labor services with Guangdong Tusheng. In terms of related party creditor-debtor relationships, the lawsuit with Lanzhou Kewenlv regarding cooperation intention funds has been judged, and the provision of loans by controlling shareholder Liang Jianhua to the company for paying cooperation intention funds with Muxi is also disclosed Significant Related Party Transactions for Joint External Investment | Related Party | Related Party Relationship | Type of Related Party Transaction | Content of Related Party Transaction | Pricing Principle for Related Party Transaction | Related Party Transaction Price (10,000 CNY) | Related Party Transaction Amount (10,000 CNY) | Proportion of Similar Transactions (%) | Settlement Method for Related Party Transaction | Market Price | Reason for Significant Difference Between Transaction Price and Market Reference Price | | :------------ | :------------------------- | :-------------------------------- | :----------------------------------- | :---------------------------------------------- | :------------------------------------------- | :------------------------------------------- | :------------------------------------- | :---------------------------------------------- | :----------- | :------------------------------------------------------------------- | | Guangdong Tusheng | Associate | Acceptance of Labor Services | Related party provides video production services to the company | Market Pricing | 16.16 | 16.16 | 0.23 | Paid in two installments, with the final payment after acceptance | / | Not Applicable | - The company signed a strategic cooperation framework agreement with Lanzhou Kewenlv, agreeing to pay 200 million CNY in cooperation intention funds in batches, with loans provided by controlling shareholder Mr. Liang Jianhua or his designated company; as Lanzhou Kewenlv failed to repay, the company filed a lawsuit and obtained a judgment[88] - The company signed an "Industry General Agent Cooperation Agreement" with Muxi Co., Ltd., becoming the general agent for Muxi brand GPU products in specific industries; the company placed an initial framework order of 150 million CNY with Muxi and paid a 20 million CNY deposit, which was provided by controlling shareholder Mr. Liang Jianhua[88] Related Party Creditor-Debtor Transactions | Related Party | Related Party Relationship | Beginning Balance of Funds Provided to Related Parties (10,000 CNY) | Amount of Funds Provided to Related Parties During Period (10,000 CNY) | Ending Balance of Funds Provided to Related Parties (10,000 CNY) | Beginning Balance of Funds Provided by Related Parties to Listed Company (10,000 CNY) | Amount of Funds Provided by Related Parties to Listed Company During Period (10,000 CNY) | Ending Balance of Funds Provided by Related Parties to Listed Company (10,000 CNY) | | :------------ | :------------------------- | :---------------------------------------------------------------- | :--------------------------------------------------------------------- | :------------------------------------------------------------------- | :------------------------------------------------------------------------------------ | :------------------------------------------------------------------------------------------ | :---------------------------------------------------------------------------------- | | Liang Jianhua | Controlling Shareholder | 0 | 0 | 0 | 2,000 | 0 | 2,000 | | Total | / | 0 | 0 | 0 | 2,000 | 0 | 2,000 | XI. Significant Contracts and Their Fulfillment This section discloses the fulfillment of the company's significant contracts during the reporting period, primarily involving leasing matters and significant guarantees. The company's wholly-owned subsidiary Chaoxun Equipment leased property to Bohao Data for 18 years, with total rent of approximately 390 million CNY. The company continued to lease office premises from related party Hongzhang Investment for 3 years, with total rent of 6.615 million CNY. The company's total external guarantees amounted to 98.3342 million CNY, representing 32.74% of net assets, mainly for Chaoxun Equipment's borrowings from ICBC - The company's wholly-owned subsidiary Chaoxun Equipment leased property located in Baiyun District, Guangzhou, to Bohao Data for a lease term of 18 years, with total rent of approximately 389.6118 million CNY during the lease term[91] - The company continued to lease office premises from related party Hongzhang Investment located in Guangzhou Development Zone for a lease term of 3 years, with a monthly rent of 183,750.00 CNY, totaling 6.615 million CNY during the lease term[92] Company's External Guarantees | Guarantor | Relationship with Listed Company | Guaranteed Party | Guaranteed Amount (10,000 CNY) | Guarantee Start Date | Guarantee End Date | Guarantee Type | Main Debt Status | Collateral (if any) | Is Guarantee Fulfilled | Is Guarantee Overdue | Overdue Guarantee Amount (10,000 CNY) | Counter-Guarantee Status | Is it a Related Party Guarantee | Related Party Relationship | | :-------- | :----------------------------- | :--------------- | :----------------------------- | :------------------- | :----------------- | :------------- | :--------------- | :-------------------------- | :--------------------- | :------------------- | :------------------------------------ | :----------------------- | :------------------------------ | :------------------------- | | Chaoxun Equipment | Wholly-owned Subsidiary | Company | 9,833.42 | 2021/2/20 | 2036/2/10 | General Guarantee | Chaoxun Equipment and the company as co-borrowers applied for a 130 million CNY loan from the bank | Land use rights owned by Chaoxun Equipment and subsequently constructed properties | No | No | 0 | None | No | Wholly-owned Subsidiary | | Total Guarantee Balance at Period End (A) | 9,833.42 | - The company's total guarantee amount is 98.3342 million CNY, accounting for 32.74% of the company's net assets[94] Section VI Share Changes and Shareholder Information This section provides details on changes in the company's share capital, shareholder structure, and the holdings of directors, supervisors, and senior management I. Changes in Share Capital During the reporting period, there were no changes in the company's total share capital or share structure, remaining stable - During the reporting period, there were no changes in the company's total share capital or share structure[97] II. Shareholder Information As of the end of the reporting period, the company had a total of 25,699 common shareholders. Among the top ten shareholders, Liang Jianhua held the highest proportion at 20.49%, with some shares pledged and frozen. Other major shareholders included Shanghai Jiuyi Private Equity and Meng Dili - As of the end of the reporting period, the total number of common shareholders was 25,699[98] Shareholding of Top Ten Shareholders | Shareholder Name | Number of Shares Held at Period End (shares) | Proportion (%) | Number of Restricted Shares Held (shares) | Pledge, Mark, or Freeze Status | Quantity (shares) | Shareholder Nature | | :--------------- | :------------------------------------------- | :------------- | :---------------------------------------- | :----------------------------- | :---------------- | :----------------- | | Liang Jianhua | 32,285,000 | 20.49 | 0 | Pledged | 22,600,000 | Domestic Natural Person | | | | | | Frozen | 1,661,684 | | | Shanghai Jiuyi Private Equity Fund Management Co., Ltd. - Jiuyi Composite Strategy No. 2 Private Securities Investment Fund | 10,000,000 | 6.35 | 0 | None | 0 | Domestic Non-State-Owned Legal Person | | Meng Dili | 2,400,000 | 1.52 | 0 | None | 0 | Domestic Natural Person | | Zhong Haihui | 1,216,091 | 0.77 | 0 | Pledged | 1,210,000 | Domestic Natural Person | - Liang Jianhua is the company's Chairman, controlling shareholder, and actual controller; Zhong Haihui is the company's Director and General Manager[101][102] III. Information on Directors, Supervisors, and Senior Management No changes in the shareholdings of the company's directors, supervisors, and senior management were disclosed during this reporting period IV. Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller V. Preferred Share Information During the reporting period, there was no information related to preferred shares for the company Section VII Bond-Related Information This section confirms that the company has no outstanding or defaulted corporate bonds, enterprise bonds, or non-financial enterprise debt financing instruments, nor any convertible corporate bonds that have not yet been converted into shares I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments During the reporting period, the company had no issued corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments that were outstanding or had matured without full repayment II. Convertible Corporate Bonds During the reporting period, the company had no issued convertible corporate bonds that had not yet been converted into shares Section VIII Financial Report This section presents the company's unaudited financial statements for the first half of 2025, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, taxes, and financial items I. Audit Report This semi-annual report has not been audited - This semi-annual report has not been audited[5] 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 reflecting the company's financial position, operating results, and cash flow Consolidated Balance Sheet As of June 30, 2025, the company's total consolidated assets were 2,339,856,332.94 CNY, a 14.51% decrease from the end of the previous year. Total current assets were 1,710,032,563.63 CNY, and total current liabilities were 1,868,124,087.46 CNY. Total owners' equity attributable to the parent company was 300,325,172.39 CNY, a 31.59% increase from the end of the previous year Key Data from Consolidated Balance Sheet | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :------------------------- | :-------------------- | :-------------------- | | Total Assets | 2,339,856,332.94 | 2,736,848,750.38 | | Total Current Assets | 1,710,032,563.63 | 2,140,428,246.09 | | Total Current Liabilities | 1,868,124,087.46 | 2,352,929,514.24 | | Total Liabilities | 2,005,596,332.71 | 2,478,902,670.49 | | Total Owners' Equity Attributable to Parent Company | 300,325,172.39 | 228,235,468.71 | Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were 2,103,145,960.18 CNY, a 10.55% increase from the end of the previous year. Total current assets were 1,374,860,884.88 CNY, and total current liabilities were 1,828,741,039.27 CNY. Total owners' equity was 254,192,182.32 CNY, a 28.13% increase from the end of the previous year Key Data from Parent Company Balance Sheet | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :----------------- | :-------------------- | :-------------------- | | Total Assets | 2,103,145,960.18 | 1,902,505,733.34 | | Total Current Assets | 1,374,860,884.88 | 1,198,286,700.51 | | Total Current Liabilities | 1,828,741,039.27 | 1,684,119,072.89 | | Total Liabilities | 1,848,953,777.86 | 1,704,119,658.84 | | Total Owners' Equity | 254,192,182.32 | 198,386,074.50 | Consolidated Income Statement In the first half of 2025, the company achieved total operating revenue of 1,610,729,474.89 CNY, a year-on-year increase of 96.37%. Net profit was 73,046,111.41 CNY, with net profit attributable to parent company shareholders at 72,089,567.79 CNY, a year-on-year increase of 155.26%. Basic earnings per share were 0.46 CNY/share Key Data from Consolidated Income Statement | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :------------------------- | :---------------- | :---------------- | | Total Operating Revenue | 1,610,729,474.89 | 820,250,121.52 | | Total Operating Costs | 1,537,814,110.90 | 787,342,970.40 | | Total Profit | 74,606,330.86 | 36,801,526.00 | | Net Profit | 73,046,111.41 | 26,590,623.03 | | Net Profit Attributable to Parent Company Shareholders | 72,089,567.79 | 28,241,250.69 | | Basic Earnings Per Share (CNY/share) | 0.46 | 0.18 | Parent Company Income Statement In the first half of 2025, the parent company achieved operating revenue of 776,123,257.51 CNY, a year-on-year increase of 140.20%. Net profit was 55,806,107.82 CNY, turning a profit from a net loss of -18,587,769.43 CNY in the same period last year Key Data from Parent Company Income Statement | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :----------------- | :---------------- | :---------------- | | Operating Revenue | 776,123,257.51 | 323,110,943.36 | | Operating Cost | 669,405,217.04 | 298,414,786.74 | | Operating Profit | 54,729,376.59 | -21,457,897.63 | | Total Profit | 54,483,142.04 | -21,542,656.05 | | Net Profit | 55,806,107.82 | -18,587,769.43 | Consolidated Cash Flow Statement In the first half of 2025, the company's net cash flow from operating activities was 74,750,943.20 CNY, a significant improvement from -111,483,674.57 CNY in the same period last year. Net cash flow from investing activities was -9,807,787.85 CNY, and net cash flow from financing activities was -56,070,072.59 CNY. The cash and cash equivalents balance at period end was 35,571,766.83 CNY Key Data from Consolidated Cash Flow Statement | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :------------------------- | :---------------- | :---------------- | | Net Cash Flow from Operating Activities | 74,750,943.20 | -111,483,674.57 | | Net Cash Flow from Investing Activities | -9,807,787.85 | -1,268,661.47 | | Net Cash Flow from Financing Activities | -56,070,072.59 | 67,649,267.91 | | Net Increase in Cash and Cash Equivalents | 8,872,968.31 | -45,103,068.13 | | Cash and Cash Equivalents at Period End | 35,571,766.83 | 47,101,990.04 | Parent Company Cash Flow Statement In the first half of 2025, the parent company's net cash flow from operating activities was 47,567,611.77 CNY, a significant improvement from -59,486,810.41 CNY in the same period last year. Net cash flow from investing activities was -10,144,838.21 CNY, and net cash flow from financing activities was -38,270,170.22 CNY. The cash and cash equivalents balance at period end was 13,063,865.87 CNY Key Data from Parent Company Cash Flow Statement | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :------------------------- | :---------------- | :---------------- | | Net Cash Flow from Operating Activities | 47,567,611.77 | -59,486,810.41 | | Net Cash Flow from Investing Activities | -10,144,838.21 | 1,579,583.10 | | Net Cash Flow from Financing Activities | -38,270,170.22 | 32,419,856.79 | | Net Increase in Cash and Cash Equivalents | -847,396.66 | -25,487,370.52 | | Cash and Cash Equivalents at Period End | 13,063,865.87 | 19,651,997.92 | Consolidated Statement of Changes in Owners' Equity In the first half of 2025, the company's total consolidated owners' equity increased by 76,313,920.34 CNY, primarily due to the increase in net profit attributable to parent company owners. The owners' equity attributable to the parent company at period end was 300,325,172.39 CNY Changes in Consolidated Owners' Equity | Item | Beginning Balance 2025 (CNY) | Change During Period (CNY) | Ending Balance 2025 (CNY) | | :------------------------- | :--------------------------- | :------------------------- | :-------------------------- | | Paid-in Capital (or Share Capital) | 157,586,796.00 | 0 | 157,586,796.00 | | Capital Reserve | 208,164,985.53 | 0 | 208,164,985.53 | | Other Comprehensive Income | 123.14 | 135.89 | 259.03 | | Surplus Reserve | 17,050,278.88 | 0 | 17,050,278.88 | | Undistributed Profits | -154,566,714.84 | 72,089,567.79 | -82,477,147.05 | | Subtotal of Owners' Equity Attributable to Parent Company | 228,235,468.71 | 72,089,703.68 | 300,325,172.39 | | Minority Interests | 29,710,611.18 | 4,224,216.66 | 33,934,827.84 | | Total Owners' Equity | 257,946,079.89 | 76,313,920.34 | 334,260,000.23 | Parent Company Statement of Changes in Owners' Equity In the first half of 2025, the parent company's total owners' equity increased by 55,806,107.82 CNY, primarily due to the turnaround to net profit. The owners' equity at period end was 254,192,182.32 CNY Changes in Parent Company Owners' Equity | Item | Beginning Balance 2025 (CNY) | Change During Period (CNY) | Ending Balance 2025 (CNY) | | :------------------------- | :--------------------------- | :------------------------- | :-------------------------- | | Paid-in Capital (or Share Capital) | 157,586,796.00 | 0 | 157,586,796.00 | | Capital Reserve | 216,049,303.84 | 0 | 216,049,303.84 | | Surplus Reserve | 17,050,278.88 | 0 | 17,050,278.88 | | Undistributed Profits | -192,300,304.22 | 55,806,107.82 | -136,494,196.40 | | Total Owners' Equity | 198,386,074.50 | 55,806,107.82 | 254,192,182.32 | III. Company Basic Information Chaoxun Communication Co., Ltd. was established on August 28, 1998, and listed on the Shanghai Stock Exchange on July 28, 2016. The company's registered office is in Tianhe District, Guangzhou, and its headquarters are in Huangpu District, Guangzhou. The company's main businesses are intelligent computing and information & communication services, falling under the computer, communication, and other electronic equipment manufacturing industry - Chaoxun Communication Co., Ltd. was established on August 28, 1998, and listed on the Shanghai Stock Exchange on July 28, 2016[136] - The company's registered office is Room 401, 4th Floor, No. 1025 Gaopu Road, Tianhe District, Guangzhou, Guangdong Province, China, and its headquarters office is 28th Floor, Building E, Greenland Central Plaza, No. 48 Kexue Avenue, Huangpu District, Guangzhou, Guangdong Province[136] - The company's main businesses are intelligent computing and information & communication services, falling under the computer, communication, and other electronic equipment manufacturing industry[136] IV. Basis of Financial Statement Preparation The Group's financial statements are prepared on a going concern basis, and it is considered reasonable to prepare them on this basis - The Group's financial statements are prepared on a going concern basis[137] - The Group has a recent history of profitable operations and financial resources to support it, making the preparation of financial statements on a going concern basis reasonable[138] V. Significant Accounting Policies and Estimates This section details the enterprise accounting standards followed in preparing the company's financial statements, along with significant accounting policies and estimates, including the recognition and measurement of financial instruments, impairment testing methods for receivables, inventory valuation and provision for obsolescence, revenue recognition principles, accounting treatment for government grants, recognition of deferred income tax assets/liabilities, and lease accounting, ensuring the truthfulness and completeness of financial reporting - The financial statements prepared by the Group comply with the requirements of enterprise accounting standards, truthfully and completely reflecting the company's financial position, operating results, changes in shareholders' equity, and cash flows[140] - 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[142] - The company classifies financial assets as financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income, and financial assets measured at fair value through profit or loss[154] - Revenue from the company's intelligent computing business is recognized upon completion of the project and customer acceptance; revenue from computing server sales is recognized when customized goods are transferred to the customer[204][205] - Revenue from communication network maintenance services in the company's information and communication business is recognized based on w