厦门信达(000701) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions Important Notice The Board of Directors, Supervisory Board, and senior management guarantee the report's truthfulness, accuracy, and completeness - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[4] - The company's principal, chief financial officer, and head of the accounting department declare the financial report is true, accurate, and complete[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the reporting period[6] Definitions This section defines common terms used in the report, ensuring clear understanding of the content - Clarifies that “the Company/Company/Xiamen Xindeco” refers to Xiamen Xindeco Co., Ltd[13] - Identifies the actual controller as Xiamen Municipal People's Government State-owned Assets Supervision and Administration Commission and the controlling shareholder as Xiamen ITG Holding Group Co., Ltd[13] - Defines the company's main business segments, such as Xindeco Digital Intelligence Technology, Xindeco Electronic Technology, Xindeco IoT, Xindeco Optoelectronics, Xindeco Supply Chain, and Xindeco ITG Auto[13] Company Profile and Key Financial Indicators Company Profile This section introduces Xiamen Xindeco Co., Ltd.'s basic information, including stock ticker, code, exchange, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Xiamen Xindeco | | Stock Code | 000701 | | Listed Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | 厦门信达股份有限公司 | | Legal Representative | Wang Mingcheng | Contact Persons and Information This section provides detailed contact information for the company's Board Secretary and Securities Affairs Representative for stakeholder communication Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Wang Xiaoshun | 11th Floor, Building A, ITG Center, 4688 XianYue Road, Huli District, Xiamen | 0592-5608117 | 0592-6021391 | wangxs@xindeco.com.cn | | Securities Affairs Representative | Li Pengfei | 11th Floor, Building A, ITG Center, 4688 XianYue Road, Huli District, Xiamen | 0592-5608117 | 0592-6021391 | lipf@xindeco.com.cn | Key Accounting Data and Financial Indicators Operating revenue decreased by 35.10% to RMB 16.32 billion, with net loss attributable to shareholders of RMB 55.96 million, a 27.61% reduction in loss Key Accounting Data and Financial Indicators (H1 2025 vs H1 2024) | Indicator | Current Reporting Period (RMB Yuan) | Prior Period (Adjusted) (RMB Yuan) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 16,324,349,022.03 | 25,154,733,909.72 | -35.10% | | Net Profit Attributable to Shareholders of the Listed Company | -55,961,713.75 | -77,308,078.15 | 27.61% | | Net Profit Attributable to Shareholders of the Listed Company (Excluding Non-recurring Gains and Losses) | -138,466,750.53 | -110,618,938.50 | -25.17% | | Net Cash Flow from Operating Activities | 368,230,678.45 | -1,696,859,513.86 | 121.70% | | Basic Earnings Per Share (RMB/share) | -0.1750 | -0.2079 | 15.82% | | Diluted Earnings Per Share (RMB/share) | -0.1750 | -0.2079 | 15.82% | | Weighted Average Return on Net Assets | -26.27% | -29.87% | 3.60% | | Period-end Indicators | Current Period-end (RMB Yuan) | Prior Year-end (Adjusted) (RMB Yuan) | Period-end vs Prior Year-end Change | | Total Assets | 17,934,570,761.54 | 12,942,568,291.21 | 38.57% | | Net Assets Attributable to Shareholders of the Listed Company | 2,450,658,917.78 | 2,040,565,228.01 | 20.10% | - During the reporting period, the company's wholly-owned subsidiary, Xiamen Xindeco Digital Intelligence Technology Co., Ltd., acquired equity in Xiamen ITG Digital Technology Co., Ltd., constituting a business combination under common control, leading to retrospective adjustments to the opening balances of the consolidated balance sheet and comparative financial statements for the prior year[20][21] - The calculation of basic earnings per share, diluted earnings per share, and weighted average return on net assets excluded the impact of perpetual bond interest of RMB 60.97 million[21] Non-recurring Gains and Losses Items and Amounts Total non-recurring gains and losses amounted to RMB 82.51 million, primarily from government grants, fair value changes, and investment income Non-recurring Gains and Losses Items and Amounts | Item | Amount (RMB Yuan) | Explanation | | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets | 1,401,052.75 | Disposal of test drive vehicles, equity investments, etc | | Government grants recognized in profit or loss for the current period | 35,944,361.18 | Primarily income-related government grants | | Gains or losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains or losses from disposal of financial assets and liabilities | 27,945,122.11 | Primarily fair value changes and disposal gains/losses of futures contracts and foreign exchange contracts, and fair value changes of equity instrument investments | | Gains or losses from entrusted investments or asset management | 11,959,657.36 | Income from bank wealth management products, structured deposits, etc | | Reversal of impairment provisions for receivables subject to separate impairment testing | 1,047,537.49 | Reversal of individually impaired receivables | | Net profit or loss of subsidiaries from the beginning of the period to the consolidation date arising from business combinations under common control | 1,502,378.59 | Net profit or loss of Xiamen ITG Digital Technology Co., Ltd. and other subsidiaries from the beginning of the period to the consolidation date arising from business combinations under common control | | Other non-operating income and expenses apart from the above | 582,393.04 | Primarily collected liquidated damages, etc | | Less: Income tax impact | -445,358.81 | | | Minority interests impact (after tax) | -1,677,175.45 | | | Total | 82,505,036.78 | | Management Discussion and Analysis Main Businesses During the Reporting Period The company's main businesses span digital intelligence technology, electronic technology (IoT and optoelectronics), supply chain, and automobile distribution - The company's main business areas include Digital Intelligence Technology, Electronic Technology (IoT and Optoelectronics), Supply Chain, and Automobile Distribution[28][29][30][31][33] - During the reporting period, the company achieved operating revenue of RMB 16.32 billion[34] - Due to the restructuring of debtor Xi'an Maike, the company recognized credit impairment losses of approximately RMB 61 million on related receivables, leading to a loss in the reporting period[34] (I) Main Business Areas Company businesses cover digital intelligence technology, electronic technology (IoT and optoelectronics), supply chain, and automobile distribution, each with distinct focuses - Digital Intelligence Technology business is dedicated to building a digital intelligence development ecosystem, serving core areas such as smart transportation, smart urban management, smart national defense, smart warehousing, and smart parks[28] - IoT business primarily engages in R&D and production of RFID electronic tags and readers, and provides RFID system integration solutions, widely applied in footwear and apparel supply chains and smart logistics[29] - Optoelectronics business focuses on R&D, production, and sales of LED packaging and application products, including LEDs for display screens and LED lighting fixtures[30] - Supply Chain business, centered on bulk commodity trade, primarily deals in non-ferrous metals and ferrous bulk commodities, including copper, iron ore, coal, steel, and aluminum[31][32] - Automobile Distribution business is based on traditional 4S stores, expanding into new energy vehicle services, used car brokerage, vehicle exports, and parallel import vehicles, operating 49 stores across 29 brands[33] (II) Overview of Operations During the Reporting Period In the first half of 2025, the company's business segments actively responded to market changes, focusing on strategic expansion, R&D, and operational optimization - The Digital Intelligence Technology segment acquired equity in Xiamen ITG Digital Technology Co., Ltd., enhancing business synergy and technological innovation, completing multiple self-developed software upgrades, and implementing smart agriculture, smart fishing port, and AI data center projects provincially and nationally[35][36] - The IoT business leveraged its large-scale customer service capabilities to expand global business, using its Malaysian factory as an international hub, and collaborated with renowned universities to overcome RFID chip bonding technical challenges, earning a national patent award[37] - The Optoelectronics business secured multiple provincial and municipal lighting upgrade projects, obtained orders from emerging regions like Qatar and Saudi Arabia, developed new clients in the Philippines and Jordan, and accelerated R&D for new products such as T8 smart light tubes and low-level guardrail lights[38] - The Supply Chain segment deepened strategic cooperation with domestic and international core resource suppliers, expanded self-operated procurement channels globally, and innovated trade services for advantageous products like lithium carbonate and aluminum rods[39][40] - The Automobile Distribution segment accelerated the construction of new energy vehicle brand stores, with Fuzhou Hongmeng Zhixing Authorized User Center and Xiamen iCAR officially commencing operations; it also obtained AEO advanced certification from customs, with vehicle export contracts increasing by 167% year-on-year[41] Analysis of Core Competitiveness The company's business segments possess distinct competitive advantages, including advanced technology, strong R&D, established market presence, and comprehensive service networks - The Digital Intelligence Technology segment integrates IoT, AI, digital twin, and cloud computing technologies, combining information technology product manufacturing, R&D, and engineering construction services, holding 17 patent technologies and software copyrights, including a Grade A qualification for electronic and intelligent engineering contracting[42][43] - The IoT business is a leading domestic provider of RFID electronic tag and reader R&D, production, and system integration solutions, operating the "Xiamen Electronic Tag Key Laboratory," with RFID electronic tag production capacity ranking among the industry's forefront, and adding 15 new patent technologies[44] - The Optoelectronics business is a high-tech enterprise integrating R&D, design, manufacturing, sales, and service, with its lighting products being a well-known domestic brand, consistently ranked among China's top 100 LED lighting and fixture industry for many years[45] - The Supply Chain segment has cultivated the market for many years, focusing on non-ferrous metals and ferrous bulk commodity trade, establishing stable supplier relationships and extensive sales channels through deepened cooperation across the industry chain[47] - The Automobile Distribution business, primarily Xindeco ITG Auto Group Co., Ltd., is one of Fujian Province's leading regional automobile dealer groups, authorized for 29 mid-to-high-end automobile brands, and has built a comprehensive sales network and standardized service system[48] Analysis of Main Business Operating revenue decreased by 35.10% due to reduced supply chain business, while digital intelligence technology revenue grew 71.31%, and net cash flow from operating activities significantly increased Key Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (RMB Yuan) | Prior Period (RMB Yuan) | Year-on-year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 16,324,349,022.03 | 25,154,733,909.72 | -35.10% | Primarily due to a year-on-year decrease in the scale of supply chain business | | Operating Cost | 15,843,470,254.00 | 24,581,570,508.59 | -35.55% | Primarily due to a year-on-year decrease in the scale of supply chain business | | Income Tax Expense | 25,815,600.22 | 3,040,305.03 | 749.11% | Primarily due to a year-on-year increase in total profit | | Net Cash Flow from Operating Activities | 368,230,678.45 | -1,696,859,513.86 | 121.70% | Primarily due to an increase in bill purchases in the current period | | Net Cash Flow from Investing Activities | -2,184,652,175.01 | -3,905,435,620.65 | 44.06% | Primarily due to a year-on-year decrease in expenditures for structured deposits and short-term wealth management | | Net Cash Flow from Financing Activities | 2,942,621,203.98 | 6,942,800,833.81 | -57.62% | Primarily due to a decrease in financing inflows from borrowings in the current period | | Gains from Changes in Fair Value | 10,547,056.11 | -99,976,334.44 | 110.55% | Primarily due to an increase in the fair value of some financial assets measured at fair value in the current period | | Credit Impairment Losses | -59,972,549.44 | 2,635,586.79 | -2,375.49% | Primarily due to a year-on-year increase in bad debt provisions for receivables in the current period | Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Current Reporting Period Amount (RMB Yuan) | Proportion of Operating Revenue | Prior Period Amount (RMB Yuan) | Proportion of Operating Revenue | Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Commercial | 15,948,493,172.30 | 97.70% | 24,696,445,453.03 | 98.18% | -35.42% | | | Industrial | 282,408,797.83 | 1.73% | 292,250,236.50 | 1.16% | -3.37% | | | Service Industry | 93,447,051.90 | 0.57% | 166,038,220.19 | 0.66% | -43.72% | | By Product | Trade | 15,948,493,172.30 | 97.70% | 24,696,445,453.03 | 98.18% | -35.42% | | | Information Products | 282,408,797.83 | 1.73% | 292,250,236.50 | 1.16% | -3.37% | | | Digital Intelligence Technology | 84,637,003.62 | 0.52% | 49,404,496.92 | 0.20% | 71.31% | | | Internet, Leasing, and Other Services | 8,810,048.28 | 0.05% | 116,633,723.27 | 0.46% | -92.45% | | By Region | Domestic | 13,478,276,402.64 | 82.57% | 22,109,959,434.60 | 87.90% | -39.04% | | | Overseas | 2,846,072,619.39 | 17.43% | 3,044,774,475.12 | 12.10% | -6.53% | Analysis of Non-main Business Non-main business significantly impacted total profit, with investment income being the largest contributor, while asset impairment losses had a negative effect Impact of Non-main Business on Total Profit | Item | Amount (RMB Yuan) | Proportion of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Investment Income | 107,929,856.93 | -817.89% | Primarily investment income from associates, and disposal gains/losses from commodity and foreign exchange derivative contracts | | Gains from Changes in Fair Value | 10,547,056.11 | -79.93% | Primarily fair value changes of financial assets measured at fair value, and fair value changes of commodity and foreign exchange derivative contracts before settlement | | Asset Impairment | -82,105,639.38 | 622.20% | Primarily provisions for bad debts on receivables and inventory write-downs | | Other Income | 37,360,500.40 | -283.12% | Primarily various government grants recognized in profit or loss for the current period | Analysis of Assets and Liabilities Total assets increased by 38.57% due to higher inventory, short-term borrowings, other current assets, and notes payable, while long-term equity investment proportion decreased Significant Changes in Asset Composition | Item | Period-end Amount (RMB Yuan) | Proportion of Total Assets | Prior Year-end Amount (RMB Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 3,145,790,266.40 | 17.54% | 2,138,962,615.09 | 16.53% | 1.01% | | | Inventories | 2,433,597,858.29 | 13.57% | 1,352,543,365.67 | 10.45% | 3.12% | Primarily an increase in supply chain business inventories | | Long-term Equity Investments | 2,130,502,128.11 | 11.88% | 2,044,589,200.18 | 15.80% | -3.92% | Primarily due to an increase in total assets, leading to a decrease in proportion | | Short-term Borrowings | 4,611,830,978.38 | 25.71% | 1,974,732,717.80 | 15.26% | 10.45% | Primarily an increase in short-term borrowings for supply chain business | | Other Current Assets | 2,718,359,956.58 | 15.16% | 493,192,781.03 | 3.81% | 11.35% | Primarily an increase in short-term structured deposits at period-end | | Notes Payable | 4,160,877,208.35 | 23.20% | 2,355,726,368.57 | 18.20% | 5.00% | Primarily an increase in bank acceptance bills issued | | Non-current Liabilities Due Within One Year | 1,042,514,515.71 | 5.81% | 1,758,860,925.57 | 13.59% | -7.78% | Primarily due to repayment of some long-term borrowings due within one year | Major Overseas Assets | Company Name | Total Assets (RMB 10,000) | Location | Main Business | Proportion of Company's Net Assets | | :--- | :--- | :--- | :--- | :--- | | Xindeco (Hong Kong) Co., Ltd. | 146,371.95 | Hong Kong | International trade, trade consulting services | 15.35% | | Xindeco Resources (Singapore) Pte. Ltd. | 127,733.73 | Singapore | Import and export trade | 19.55% | | XINDECO IOT MALAYSIA SDN. BHD. | 6,816.13 | Malaysia | Electronic tag production, sales | 2.18% | Assets and Liabilities Measured at Fair Value | Item | Period-end Amount (RMB Yuan) | Period-beginning Amount (RMB Yuan) | | :--- | :--- | :--- | | Subtotal of Financial Assets | 359,484,079.99 | 477,792,353.25 | | Financial Liabilities | 23,079,606.26 | 8,359,994.02 | Restricted Asset Rights | Item | Period-end Carrying Amount (RMB Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Bank Balances | 501,716,761.95 | Various deposits | | Inventories | 406,864,765.22 | Pledged vehicle certificates, litigation-related | | Other Current Assets | 2,230,409,947.71 | Pledged structured deposits | | Total | 3,187,976,982.52 | | Analysis of Investment Status Total investment decreased by 75.72%, with significant equity investments in digital intelligence technology, notable gains from securities investments, and effective hedging through derivatives Investment Amount During the Reporting Period | Indicator | Investment Amount in Reporting Period (RMB Yuan) | Investment Amount in Prior Period (RMB Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Total Investment | 116,156,802.62 | 478,333,431.21 | -75.72% | Significant Equity Investments Acquired During the Reporting Period | Investee Company Name | Main Business | Investment Amount (RMB Yuan) | Shareholding Percentage | | :--- | :--- | :--- | :--- | | Xiamen ITG Digital Technology Co., Ltd. | Other technology promotion services; information technology consulting services; software development, etc | 61,686,311.72 | 100.00% | Securities Investment Status | Security Abbreviation | Period-beginning Carrying Amount (RMB Yuan) | Fair Value Change Gain/Loss for Current Period (RMB Yuan) | Period-end Carrying Amount (RMB Yuan) | | :--- | :--- | :--- | :--- | | Sansteel Minguang | 67,128,889.40 | 3,841,713.55 | 70,970,602.95 | | Senton Mining | 21,329,479.20 | 6,069,364.00 | 27,398,843.20 | | Tianhai Defense | 8,813,998.44 | 2,609,130.22 | 0.00 | | Zhengtong Auto | 1,449,342.75 | 1,485,557.19 | 2,934,899.94 | | Tianjin SAIF Venture Capital Fund (Limited Partnership) | 65,907,004.09 | 12,405,659.03 | 71,652,331.88 | | Wuhu Gopher Weiran Equity Investment Center (Limited Partnership) | 13,016,172.82 | -123,600.00 | 321,680.45 | | Total | 177,644,886.70 | 26,287,823.99 | 172,956,677.97 | Hedging Derivative Investment Status | Derivative Investment Type | Period-end Amount (RMB 10,000) | Proportion of Period-end Net Assets | | :--- | :--- | :--- | | Commodity Futures | 122,434.2 | 49.96% | | Forward Foreign Exchange Settlement | 10,452.01 | 4.26% | | Foreign Exchange Futures | 1,792.78 | 0.73% | | RMB and Foreign Exchange Swaps | 0 | 0.00% | | Total | 134,678.99 | 54.95% | - The company's hedging derivative contracts have clear business foundations, used to lock in costs, hedge against exchange rate, interest rate, and price risks, enhancing financial stability[80] Overall Use of Raised Funds | Year | Total Raised Funds (RMB 10,000) | Raised Funds Used in Reporting Period (RMB 10,000) | Cumulative Raised Funds Used (RMB 10,000) | Cumulative Use Ratio | | :--- | :--- | :--- | :--- | :--- | | 2022 | 70,879.69 | 1,308.78 | 34,695.63 | 49.57% | - The RFID electronic tag new construction project and information technology R&D center construction project were affected by macroeconomic fluctuations, industry changes, and project approvals, leading the company to adopt a prudent capital investment strategy, which impacted the overall project implementation progress[90] - The new energy vehicle operating network construction project, 4S store upgrade project, and acquisition of a minority stake in Fuzhou Leisa project have been completed, with remaining raised funds of RMB 14.78 million permanently transferred to supplement working capital[91] Analysis of Major Holding and Associate Companies Major holding and associate companies span trade, auto sales, optoelectronics, and IoT services; several subsidiaries saw increased net profit, while others experienced declines Major Subsidiaries and Associate Companies with Over 10% Impact on Company's Net Profit | Company Name | Main Business | Operating Revenue (RMB Yuan) | Net Profit (RMB Yuan) | | :--- | :--- | :--- | :--- | | Xindeco (Hong Kong) Co., Ltd. | Bulk commodity trade | 1,124,534,154.82 | 3,711,717.46 | | Xindeco Resources (Singapore) Pte. Ltd. | Bulk commodity trade | 852,046,992.21 | 11,275,073.73 | | Xiamen Xindeco Mining Resources Co., Ltd. | Bulk commodity trade | 1,209,392,479.40 | 10,150,916.44 | | Xiamen Xindeco An Trade Co., Ltd. | Bulk commodity trade | 1,988,360,731.20 | 20,833,261.30 | | Xindeco Wan Steel (Xiamen) Metal Co., Ltd. | Bulk commodity trade | 510,015,373.80 | 10,132,840.19 | | Xiamen Xindeco Optoelectronics Technology Co., Ltd. | Optoelectronic product production, sales | 111,936,923.54 | -17,492,374.85 | | Xiamen Xindeco IoT Technology Co., Ltd. | Electronic tag production, sales | 168,114,688.86 | 15,929,572.07 | | Xiamen Xindeco Smart IoT Technology Service Co., Ltd. | IoT technology services, project investment in information technology related industries | 24,075,713.06 | 9,100,872.35 | | Qingtongxia Aluminum Co., Ltd. (Associate) | Production and sales of aluminum and its products | 9,320,861,428.20 | 789,405,554.33 | Acquisition and Disposal of Subsidiaries During the Reporting Period | Company Name | Acquisition and Disposal Method | Impact on Overall Production, Operations, and Performance | | :--- | :--- | :--- | | Xiamen ITG Digital Technology Co., Ltd., Xiamen ITG JD Digital Technology Co., Ltd. | Business combination under common control | Conducive to expanding digital intelligence technology business | | Xiamen Haie Industrial Internet Co., Ltd. | Business combination under common control | Conducive to expanding digital intelligence technology business | | ITG AUTO (THAILAND) CO.,LTD. | Newly established | Conducive to expanding overseas automobile distribution business | | Xiamen Xindeco Industrial Investment Co., Ltd. | Newly established | Conducive to the company's expansion of industrial investment opportunities | | Xiamen Xindeco Investment Management Co., Ltd., Xiamen Xindeco Private Equity Fund Management Co., Ltd. | Transfer | Conducive to optimizing the company's resource allocation | | Xiamen Xindeco Jianlong Supply Chain Management Co., Ltd. | Deregistration | Deregistration of subsidiaries no longer conducting business | Risks and Countermeasures Faced by the Company The company faces risks from technology iteration, market competition, supply chain volatility, industry transformation, and litigation, addressed through R&D, market optimization, and risk management - The Digital Intelligence Technology industry faces risks of market demand mismatch and lagging core product iteration; the company will increase R&D efforts and optimize its product matrix to respond[102] - The Electronic Technology segment faces risks of intensifying industry competition and downward pressure on product prices; the company will strengthen market analysis, optimize its global production and sales network, and focus on technological R&D innovation[103][104] - The Supply Chain segment faces multiple challenges, including international bulk commodity price and exchange rate fluctuations and market participant credit risks; the company has established a full business process risk control system and uses financial derivatives to hedge risks[105][107] - The Automobile Distribution segment faces transformation pressure from electrification and intelligence, as well as changes in market consumer preferences; the company will optimize its brand structure, accelerate international business expansion, and extend its automotive ecosystem business[108] - The company has several pending lawsuits or arbitrations that may impact its operations and financial condition; the company will continue to monitor progress and optimize its risk management system[109] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management During the reporting period, the company experienced multiple changes in its directors, supervisors, and senior management, primarily due to job transfers or personal reasons Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Chen Hong | General Manager | Appointment | April 29, 2025 | Job transfer | | Chen Hong | Director | Election | June 12, 2025 | Job transfer | | Wu Xiaoqiang | Deputy General Manager | Resignation | April 29, 2025 | Job transfer | | Su Yi | Director | Resignation | May 26, 2025 | Job transfer | | Zhou Chaohua | Supervisor | Resignation | June 12, 2025 | Job transfer | | Yu Lijie | Supervisor | Election | June 12, 2025 | Job transfer | | Jiang Feng | Deputy General Manager | Resignation | June 12, 2025 | Personal reasons | Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company continues to implement its 2022 restricted stock incentive plan, repurchasing and canceling 7.494 million shares due to unmet performance targets and employee departures - The third vesting period for the initial grant and the second vesting period for the reserved grant of the 2022 restricted stock incentive plan were not met due to company-level performance targets[119] - 11 former incentive recipients no longer qualified due to personal reasons for leaving, company organizational structure adjustments, or termination of employment contracts due to personal fault[119] - The company repurchased and canceled a total of 7.494 million A-share restricted stocks granted but not yet vested to 241 incentive recipients[119] Social Responsibility The company actively fulfills its social responsibilities as a state-owned enterprise, engaging in rural revitalization, community support, and educational assistance - The company dispatched outstanding cadres to participate in Xiamen City's second batch of village-stationed work teams, assisting villages with relatively weak collective economic income to increase revenue and achieve prosperity[121] - The company continuously promotes assistance and co-construction efforts, carrying out consumer assistance activities in poverty-stricken areas like Zogang County, Changdu City, Tibet, and "one branch, one mu of land" adoption activities in Jianning County, Sanming City, Fujian Province[121] - The company organized volunteer services for clean homes, civilized traffic supervision, community care visits, and promotion of new customs, fostering harmonious and prosperous community relations[121] - The company continues to carry out donation and teaching assistance activities with Bayi Hope Primary School in Shiren Village, Changting County, Fujian Province, inheriting the fine tradition of helping students in need[121] Significant Matters Litigation Matters The company is involved in several significant litigation and arbitration cases, with amounts ranging from RMB 11.89 million to RMB 2.32 billion, potentially impacting operations and financial status Overview of Significant Litigation and Arbitration Matters | Basic Situation of Litigation (Arbitration) | Amount Involved (RMB 10,000) | Progress of Litigation (Arbitration) | Outcome and Impact of Litigation (Arbitration) | | :--- | :--- | :--- | :--- | | Company v. Fujian Energy Development Co., Ltd. for sales contract dispute | 1,970.01 | In 2015, the court ruled in favor of the company; in July 2025, both parties reached an enforcement settlement. | Won, cumulative recovery of RMB 750,000 | | Company v. Tianjian Special Nylon Technology (Fujian) Co., Ltd. and Zhongxian United Petrochemical Co., Ltd. for sales contract dispute | 3,779.60 | In 2016, the court issued a mediation statement; as the defendant failed to fulfill obligations, in June 2025, the court ruled to accept the bankruptcy application against Zhongxian United Petrochemical Co., Ltd. | Mediation, cumulative recovery of RMB 22.82 million | | Company v. Qinghai Huapeng Energy Development Co., Ltd. et al. for sales contract dispute | 231,754.53 | In August 2020, a mediation agreement was reached, and the company withdrew part of the lawsuit and filed another case. In March 2024, the court re-tried and ruled in favor of the company, after which the defendant appealed. In January 2025, enforcement was initiated. | Mediation; another case is pending judgment, cumulative recovery of principal RMB 1.5 billion and interest RMB 221.29 million | | Putian Yongfeng Footwear Co., Ltd. v. Company for sales contract dispute | 4,354.06 | In May 2023, the court ruled against the company in the first instance; the company appealed, and the second instance was dismissed. In January 2025, the court ruled to reject the retrial application. | Lost, company has returned relevant funds | | Company v. Duolun Lvmanjia Ecological Breeding Co., Ltd. et al. for sales contract dispute | 78,504.28 | In August 2024, the company filed a lawsuit. In March 2025, the court ruled in the first instance to support some of the company's claims. | First instance judgment supported some claims, not applicable | | Company subsidiary Poly Automobile Co., Ltd. et al. v. Zhuji Huajun Fengying Enterprise Management Partnership (Limited Partnership) for contract dispute | 2,883.27 | In June 2025, the court ruled in favor of the company in the first instance. In July 2025, the defendant appealed. | Pending judgment, not applicable | | Company applied to the Arbitration Commission for arbitration regarding a sales contract dispute with Jiangsu Xindian Steel Industry Development Co., Ltd. et al. | 7,485.04 | In April 2025, the company signed a mediation agreement with some respondents. | Pending arbitration, cumulative recovery of RMB 6.8 million | | Company v. Dashangdao Commodity Exchange Market Co., Ltd. for entrusted contract dispute | 8,393.62 | In April 2025, the company filed a lawsuit. | Pending judgment, not applicable | | Company subsidiary Xindeco Resources (Singapore) Pte. Ltd. applied to the Singapore International Arbitration Centre for arbitration regarding a sales contract dispute with Bulk Trading Far East Pte. Ltd. | 2,609.14 | In May 2025, the company applied for arbitration. In June 2025, the company reached a settlement with the defendant, and the arbitration center agreed to the company's withdrawal of arbitration. | Settlement and withdrawal of arbitration, cumulative recovery of RMB 14.38 million | | Company subsidiary Xiamen Xindeco Smart IoT Technology Service Co., Ltd. v. China Construction Fourth Engineering Bureau Co., Ltd. for sales contract dispute | 1,152.70 | In May 2025, after pre-litigation mediation, both parties signed a settlement agreement. In July 2025, the court ruled to allow the company to withdraw the lawsuit. | Settlement and withdrawal of lawsuit, cumulative recovery of RMB 5.56 million | Significant Related Party Transactions The company engaged in routine related party transactions with its controlling shareholder and subsidiaries, including sales, services, and procurement, all within approved limits, alongside asset acquisitions and disposals Related Party Transactions for Purchase and Sale of Goods, Provision and Acceptance of Services | Related Party | Type of Related Party Transaction | Amount for Current Period (RMB 10,000) | Approved Transaction Limit (RMB 10,000) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | | ITG Holding Group Co., Ltd. and its subsidiaries | Sales of goods, provision of services, and property leasing to related parties | 3,498.69 | 73,430 | No | | ITG Holding Group Co., Ltd. and its subsidiaries | Purchase of products, acceptance of services, and property leasing from related parties | 22,350.84 | 25,970 | No | | Total | -- | 25,849.53 | 99,400 | -- | Related Party Transactions for Acquisition and Disposal of Assets or Equity | Related Party | Content of Related Party Transaction | Transfer Price (RMB 10,000) | Transaction Gain/Loss (RMB 10,000) | | :--- | :--- | :--- | :--- | | Xiamen ITG Group Co., Ltd., Xiamen ITG Bay Investment Development Co., Ltd. | Purchase of 100% equity of Xiamen ITG Digital Technology Co., Ltd. | 6,168.63 | 0.00 | | Xiamen ITG Holding Group Co., Ltd. | Transfer of 100% equity of Xiamen Xindeco Investment Management Co., Ltd. | 8,666.55 | 108.65 | Transactions with Related Financial Companies (Deposit Business) | Related Party | Maximum Daily Deposit Limit (RMB 10,000) | Period-beginning Balance (RMB 10,000) | Period-end Balance (RMB 10,000) | | :--- | :--- | :--- | :--- | | Xiamen ITG Holding Group Finance Co., Ltd. | 210,000.00 | 45,320.27 | 162,624.63 | Transactions with Related Financial Companies (Loan Business) | Related Party | Loan Limit (RMB 10,000) | Period-beginning Balance (RMB 10,000) | Period-end Balance (RMB 10,000) | | :--- | :--- | :--- | :--- | | Xiamen ITG Holding Group Finance Co., Ltd. | 500,000.00 | 7,081.22 | 2,901.80 | - As of June 30, 2025, the company and its controlling subsidiaries had deposit balances of RMB 55.99 million and utilized credit lines of RMB 794.16 million at Xiamen International Bank Co., Ltd[148] Significant Contracts and Their Performance The company has no trust or contracting arrangements, but engages in significant operating leases, provides substantial guarantees for subsidiaries, and invests in bank wealth management products - The carrying amount of the company's operating lease-out buildings and machinery and equipment was RMB 373.89 million as of June 2025, generating RMB 14.72 million in rental income from January to June 2025[157] - The company paid RMB 52.11 million in rent from January to June 2025 for operating lease-in buildings and land used for daily office space and 4S store showrooms[157] - The company's total guarantees for subsidiaries (actual guarantee balance) amounted to RMB 6.18 billion, representing 252.20% of the company's net assets[179] Entrusted Wealth Management Status | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management (RMB 10,000) | Unexpired Balance (RMB 10,000) | Overdue Unrecovered Amount (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own funds | 120,000 | 50,000 | 0 | | Total | | 120,000 | 50,000 | 0 | Explanation of Other Significant Matters The company's board approved the transfer of its 100% equity in Xiamen Xindeco Investment Management Co., Ltd. to its controlling shareholder for RMB 86.67 million - The company transferred its 100% equity in Xiamen Xindeco Investment Management Co., Ltd. to its controlling shareholder, ITG Holding, for RMB 86.67 million[189] - This transaction facilitates resource integration and promotes the high-quality development of the company's main business, aligning with its strategic plan[189] Significant Matters of Company Subsidiaries The company's wholly-owned subsidiary, Xiamen Xindeco Digital Intelligence Technology Co., Ltd., acquired 100% equity in Xiamen ITG Digital Technology Co., Ltd. for RMB 61.69 million - The company's wholly-owned subsidiary, Xiamen Xindeco Digital Intelligence Technology Co., Ltd., acquired 99% equity in Xiamen ITG Digital Technology Co., Ltd. from Xiamen ITG Group Co., Ltd. for RMB 60.22 million and 1% equity from Xiamen ITG Bay Investment Development Co., Ltd. for RMB 0.61 million using its own funds[190] - This acquisition helps to complete the company's strategic layout in the digital intelligence technology segment and aligns with its future strategic planning[190] Share Changes and Shareholder Information Share Changes The company's total share capital remained unchanged, but restricted shares increased by 257,000 shares, while unrestricted shares decreased by the same amount Share Changes | Item | Number Before Change (shares) | Proportion Before Change | Net Increase/Decrease in Current Change (shares) | Number After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 7,946,550 | 1.18% | 257,000 | 8,203,550 | 1.21% | | 3. Other Domestic Shares | 7,925,550 | 1.17% | 257,000 | 8,182,550 | 1.21% | | Domestic Natural Person Shares | 7,925,550 | 1.17% | 257,000 | 8,182,550 | 1.21% | | II. Unrestricted Shares | 667,860,556 | 98.82% | -257,000 | 667,603,556 | 98.79% | | 1. RMB Ordinary Shares | 667,860,556 | 98.82% | -257,000 | 667,603,556 | 98.79% | | III. Total Shares | 675,807,106 | 100.00% | 0 | 675,807,106 | 100.00% | - Shares held by directors, supervisors, and senior management were released from restriction by 25% of their total holdings on the first trading day of 2025[194] - During the reporting period, some directors, supervisors, and senior management changed, leading to corresponding changes in their locked-up shares according to relevant laws and regulations[195] Changes in Restricted Shares | Shareholder Name | Period-beginning Restricted Shares (shares) | Increase in Restricted Shares for Current Period (shares) | Period-end Restricted Shares (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Wang Mingcheng | 221,250 | 82,500 | 303,750 | Restricted shares from equity incentive plan; locked-up shares for directors, supervisors, and senior management are re-determined annually at 75% of their total holdings at the beginning of the year | | Jiang Feng | 176,250 | 143,750 | 320,000 | Restricted shares from equity incentive plan; locked-up shares for resigning directors, supervisors, and senior management | | Wang Xiaoshun | 135,000 | 8,250 | 143,250 | Restricted shares from equity incentive plan; locked-up shares for directors, supervisors, and senior management are re-determined annually at 75% of their total holdings at the beginning of the year | | Other Restricted Shareholders | 6,078,000 | 22,500 | 6,100,500 | Restricted shares from equity incentive plan; locked-up shares for directors, supervisors, and senior management are determined at 75% of their total holdings | | Total | 7,946,550 | 257,000 | 8,203,550 | -- | Securities Issuance and Listing During the reporting period, the company issued two tranches of non-public perpetual corporate bonds to professional investors in 2025, each for RMB 300 million Corporate Bond Issuance Status | Bond Abbreviation | Issuance Date | Issuance Price (RMB/100 face value) | Issuance Amount (RMB 100 million) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | | 25 Xindeco Y1 | January 16, 2025 | 100 | 3 | 3.35% | | 25 Xindeco Y2 | April 14, 2025 | 100 | 3 | 3.29% | - These bonds remain outstanding until redeemed by the issuer in accordance with the issuance terms, and interest is paid annually unless the issuer exercises its right to defer interest payments[201][203][204] Shareholder Count and Shareholding As of the reporting period end, the company had 66,409 ordinary shareholders, with Xiamen ITG Holding Group Co., Ltd. as the largest shareholder with 39.93% - The total number of ordinary shareholders at the end of the reporting period was 66,409[205] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Period-end Shareholding (shares) | Change in Reporting Period (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Xiamen ITG Holding Group Co., Ltd. | State-owned Legal Person | 39.93% | 269,867,236 | 0 | 269,867,236 | | Shen Yongfu | Domestic Natural Person | 0.73% | 4,930,000 | -15,000 | 4,930,000 | | Aladdin Automobile Co., Ltd. | Domestic Non-state-owned Legal Person | 0.67% | 4,500,000 | 0 | 4,500,000 | | Bai Rujing | Domestic Natural Person | 0.48% | 3,220,000 | 3,220,000 | 3,220,000 | | Li Jianhui | Domestic Natural Person | 0.40% | 2,710,900 | 2,710,900 | 2,710,900 | | MORGAN STANLEY & CO. INTERNATIONAL PLC. | Overseas Legal Person | 0.30% | 2,054,051 | 305,154 | 2,054,051 | | Wang Nan | Domestic Natural Person | 0.28% | 1,905,800 | -1,836,700 | 1,905,800 | | Liu Guoxing | Domestic Natural Person | 0.27% | 1,832,900 | -517,100 | 1,832,900 | | Hu Wen | Domestic Natural Person | 0.26% | 1,789,835 | 948,000 | 1,789,835 | | Shi Qiang | Domestic Natural Person | 0.26% | 1,770,000 | 570,000 | 1,770,000 | - Xiamen ITG Holding Group Co., Ltd. holds shares on behalf of the state and has no associated relationship or concerted action with the other 9 shareholders as defined by the "Measures for the Administration of the Acquisition of Listed Companies"[208][209] Shareholding Changes of Directors, Supervisors, and Senior Management During the reporting period, the total shareholding of the company's directors, supervisors, and senior management remained unchanged, but some individuals' restricted stock numbers were adjusted Shareholding Changes of Directors, Supervisors, and Senior Management | Name | Position | Period-beginning Shareholding (shares) | Period-end Shareholding (shares) | Period-beginning Restricted Stock Granted (shares) | Period-end Restricted Stock Granted (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Mingcheng | Chairman | 405,000 | 405,000 | 180,000 | 180,000 | | Chen Hong | Director, General Manager | 30,000 | 30,000 | 0 | 0 | | Wu Xiaoqiang | Director | 135,000 | 135,000 | 135,000 | 135,000 | | Lin Weiqing | Deputy General Manager, CFO | 135,000 | 135,000 | 135,000 | 135,000 | | Wang Xiaoshun | Deputy General Manager, Board Secretary | 191,000 | 191,000 | 135,000 | 135,000 | | Jiang Feng | Deputy General Manager | 320,000 | 320,000 | 135,000 | 135,000 | | Total | -- | 1,216,000 | 1,216,000 | 720,000 | 720,000 | Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder did not change during the reporting period[215] - The company's actual controller did not change during the reporting period[216] Bond-Related Information Corporate Bonds The company issued perpetual corporate bonds in 2024 and 2025 to professional investors, totaling RMB 1 billion with interest rates between 3.13% and 3.35% Corporate Bond Basic Information | Bond Name | Bond Abbreviation | Bond Code | Bond Balance (RMB 10,000) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | | Xiamen Xindeco Co., Ltd. 2024 Non-public Issuance of Perpetual Corporate Bonds to Professional Investors (Tranche 1) | 24 Xindeco Y1 | 134134.SZ | 40,000 | 3.13% | | Xiamen Xindeco Co., Ltd. 2025 Non-public Issuance of Perpetual Corporate Bonds to Professional Investors (Tranche 1) | 25 Xindeco Y1 | 133916.SZ | 30,000 | 3.35% | | Xiamen Xindeco Co., Ltd. 2025 Non-public Issuance of Perpetual Corporate Bonds to Professional Investors (Tranche 2) | 25 Xindeco Y2 | 134210.SZ | 30,000 | 3.29% | - All corporate bonds have no explicit principal repayment date; the issuer may repay principal and all accrued interest on the redemption date and pays interest annually if the deferral option is not exercised[220] Non-financial Enterprise Debt Financing Instruments The company issued two tranches of medium-term notes in 2023 and 2024, each for RMB 500 million, with interest rates of 4.27% and 3.65% respectively Non-financial Enterprise Debt Financing Instruments Basic Information | Bond Name | Bond Abbreviation | Bond Code | Bond Balance (RMB 10,000) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | | Xiamen Xindeco Co., Ltd. 2023 First Tranche Medium-Term Notes | 23 Xindeco MTN001 | 102383417 | 50,000 | 4.27% | | Xiamen Xindeco Co., Ltd. 2024 First Tranche Medium-Term Notes | 24 Xindeco MTN001 | 102480289 | 50,000 | 3.65% | - These bonds remain outstanding until redeemed by the issuer in accordance with the issuance terms, and interest is paid annually[222] Key Accounting Data and Financial Indicators for the Last Two Years as of the End of the Reporting Period The company's liquidity and quick ratios improved, while the asset-liability ratio increased by 4.99%, and net profit excluding non-recurring items decreased by 25.17% Key Accounting Data and Financial Indicators for the Last Two Years | Indicator | Current Reporting Period | Prior Period | Year-on-year Change | | :--- | :--- | :--- | :--- | | Current Ratio | 1.08 | 0.97 | 11.34% | | Asset-Liability Ratio | 80.61% | 75.62% | 4.99% | | Quick Ratio | 0.87 | 0.80 | 8.75% | | Net Profit Excluding Non-recurring Gains and Losses (RMB 10,000) | -13,846.68 | -11,061.89 | -25.17% | | EBITDA to Total Debt Ratio | 1.87% | 2.63% | -0.76% | | Interest Coverage Ratio | 0.89 | 0.45 | 97.78% | | Cash Interest Coverage Ratio | 2.96 | -9.20 | -132.17% | | EBITDA Interest Coverage Ratio | 2.17 | 1.40 | 55.00% | | Loan Repayment Rate | 100.00% | 100.00% | 0.00% | | Interest Payment Rate | 100.00% | 100.00% | 0.00% | - During the reporting period, the company's wholly-owned subsidiary, Xiamen Xindeco Digital Intelligence Technology Co., Ltd., acquired equity in Xiamen ITG Digital Technology Co., Ltd., constituting a business combination under common control, leading to retrospective adjustments to the prior period's financial data[227] Financial Report Audit Report The company's 2025 semi-annual financial report is unaudited - The company's semi-annual financial report is unaudited[229] Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2025 1. Consolidated Balance Sheet As of June 30, 2025, consolidated total assets were RMB 17.93 billion, total liabilities RMB 14.46 billion, and total owners' equity RMB 3.48 billion Consolidated Balance Sheet Key Data | Item | Period-end Balance (RMB Yuan) | Period-beginning Balance (RMB Yuan) | | :--- | :--- | :--- | | Current Assets | | | | Cash and Bank Balances | 3,145,790,266.40 | 2,138,962,615.09 | | Accounts Receivable | 2,574,939,505.66 | 1,772,513,597.82 | | Inventories | 2,433,597,858.29 | 1,352,543,365.67 | | Other Current Assets | 2,718,359,956.58 | 493,192,781.03 | | Non-current Assets | | | | Long-term Equity Investments | 2,130,502,128.11 | 2,044,589,200.18 | | Total Assets | 17,934,570,761.54 | 12,942,568,291.21 | | Current Liabilities | | | | Short-term Borrowings | 4,611,830,978.38 | 1,974,732,717.80 | | Notes Payable | 4,160,877,208.35 | 2,355,726,368.57 | | Non-current Liabilities Due Within One Year | 1,042,514,515.71 | 1,758,860,925.57 | | Non-current Liabilities | | | | Long-term Borrowings | 2,269,778,549.85 | 1,542,178,360.18 | | Total Liabilities | 14,457,659,793.04 | 9,787,735,635.64 | | Owners' Equity | | | | Total Owners' Equity Attributable to Parent Company | 2,450,658,917.78 | 2,040,565,228.01 | | Minority Interests | 1,026,252,050.72 | 1,114,267,427.56 | | Total Owners' Equity | 3,476,910,968.50 | 3,154,832,655.57 | 3. Consolidated Income Statement In H1 2025, total operating revenue was RMB 16.32 billion, resulting in an operating loss of RMB 13.69 million and a net loss of RMB 39.01 million Consolidated Income Statement Key Data | Item | H1 2025 (RMB Yuan) | H1 2024 (RMB Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 16,324,349,022.03 | 25,154,733,909.72 | | Total Operating Cost | 16,412,173,865.64 | 25,235,638,150.20 | | Operating Profit | -13,694,415.03 | -128,802,553.21 | | Total Profit | -13,196,087.34 | -101,655,443.36 | | Net Profit | -39,011,687.56 | -104,695,748.39 | | Net Profit Attributable to Parent Company Shareholders | -55,961,713.75 | -77,308,078.15 | | Minority Interest Income/Loss | 16,950,026.19 | -27,387,670.24 | | Basic Earnings Per Share | -0.1750 | -0.2079 | | Diluted Earnings Per Share | -0.1750 | -0.2079 | - For business combinations under common control occurring in the current period, the net profit of the combined entity from the beginning of the period to the consolidation date was RMB 1,502,378.59, and for the prior period, it was RMB -19,572,873.53[241] 5. Consolidated Cash Flow Statement In H1 2025, net cash flow from operating activities significantly increased by 121.70% to RMB 368.23 million, with period-end cash and cash equivalents at RMB 2.64 billion Consolidated Cash Flow Statement Key Data | Item | H1 2025 (RMB Yuan) | H1 2024 (RMB Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 368,230,678.45 | -1,696,859,513.86 | | Net Cash Flow from Investing Activities | -2,184,652,175.01 | -3,905,435,620.65 | | Net Cash Flow from Financing Activities | 2,942,621,203.98 | 6,942,800,833.81 | | Net Increase in Cash and Cash Equivalents | 1,123,019,410.97 | 1,340,879,831.35 | | Period-end Cash and Cash Equivalents Balance | 2,644,073,504.45 | 3,077,441,892.55 | Company Basic Information Xiamen Xindeco Co., Ltd., established in 1992 and listed in 1997, primarily operates in digital intelligence technology, electronic technology, supply chain, and automobile distribution - Xiamen Xindeco Co., Ltd. was established in November 1992 and listed on the Shenzhen Stock Exchange in January 1997[265] - As of June 30, 2025, the company's total issued share capital was 668,313,106 shares, with a registered capital of RMB 668,313,106[266] - The company primarily engages in the operation and sales of Digital Intelligence Technology, Electronic Technology, Supply Chain, and Automobile Distribution businesses[266] - The Group's controlling shareholder is Xiamen ITG Holding Group Co., Ltd., and the ultimate controlling party is Xiamen Municipal People's Government State-owned Assets Supervision and Administration Commission[266] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, adhering to Enterprise Accounting Standards and relevant disclosure rules, primarily using historical cost measurement - The Group's financial statements are prepared on a going concern basis, in accordance with actual transactions and events, and the disclosure requirements of the "Enterprise Accounting Standards" issued by the Ministry of Finance and the "Reporting Rules for Information Disclosure by Companies Issuing Securities to the Public No. 15 – General Provisions for Financial Reports (Revised 2023)" issued by the China Securities Regulatory Commission[268] - The Group's accounting is based on the accrual basis, and except for certain financial instruments, all items are measured at historical cost[268] - The Group assessed its ability to continue as a going concern for 12 months from the end of the reporting period and found no matters affecting this ability, thus preparing the financial statements on a going concern basis is reasonable[269] Significant Accounting Policies and Estimates This section details the company's accounting policies and estimates for financial statement preparation, covering areas like financial instruments, impairment, revenue recognition, and various assumptions - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, truthfully and completely reflecting the financial position of the company and the Group as of June 30, 2025, and the operating results and cash flows for the first half of 2025[271] - The company classifies financial assets into those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss, based on the business model for managing financial assets and their contractual cash flow characteristics[299] - The company recognizes impairment provisions and credit impairment losses for financial assets such as notes receivable, accounts receivable, contract assets, other receivables, and long-term receivables based on expected credit losses[315] - The company recognizes revenue when control of the related goods is transferred to the customer, provided specific conditions in the contract with the customer are met, and revenue is recognized based on the progress of performance or at a specific point in time[400][401][402] - In applying accounting policies, the company makes judgments, estimates, and assumptions for financial statement items that cannot be accurately measured (such as leases, financial asset impairment, inventory write-downs, fair value of financial instruments, long-term asset impairment provisions, depreciation and amortization, estimated liabilities, deferred income tax assets, and income tax), and reviews them regularly[426][427][428][429][430][431][432][433][434][435][436][437][438][439] Taxation The company's main taxes include VAT, consumption tax, urban maintenance and construction tax, and corporate income tax, with varying rates based on entity type and high-tech/small-profit enterprise status Main Tax Categories and Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable income is calculated at 0%, 3%, 5%, 6%, 9%, 13% for output tax, and VAT is paid on the difference after deducting deductible input tax for the current period | 0%, 3%, 5%, 6%, 9%, 13% | | Consumption Tax | Calculated at a proportional tax rate based on taxable sales revenue | Proportional tax rate | | Urban Maintenance and Construction Tax | Calculated at 5%, 7% of the actual turnover tax paid | 5%, 7% | | Corporate Income Tax | See table below | See table below | - Xiamen Xindeco IoT Technology Co., Ltd., Xiamen Xindeco Optoelectronics Technology Co., Ltd., Shandong Xindeco IoT Application Technology Co., Ltd., and Xiamen ITG Digital Technology Co., Ltd. are high-tech enterprises, subject to a corporate income tax rate of 15%[442] - For small-profit enterprises, the portion of annual taxable income not exceeding RMB 1 million is subject to a 20% corporate income tax rate after being reduced by 75%; the portion exceeding RMB 1 million but not exceeding RMB 3 million is subject to a 20% corporate income tax rate after being reduced by 50%; some of the company's subsidiaries are eligible for this preferential policy in 2025[442] R&D Expenses Total R&D expenses for the reporting period were RMB 30.52 million, primarily comprising personnel costs, direct input, and depreciation, all expensed in the current period R&D Expense Composition | Item | Amount for Current Period (RMB Yuan) | Amount for Prior Period (RMB Yuan) | | :--- | :--- | :--- | | Personnel Costs | 23,460,379.88 | 25,708,298.27 | | Direct Input Costs | 2,462,774.36 | 2,987,528.78 | | Depreciation and Amortization | 3,341,623.70 | 4,249,464.32 | | Other | 1,255,472.65 | 889,738.30 | | Total | 30,520,250.59 | 33,835,029.67 | | Of which: Expensed R&D Expenditures | 30,520,250.59 | 33,835,029.67 | Changes in Consolidation Scope The company expanded its digital intelligence technology business by acquiring Xiamen ITG Digital Technology Co., Ltd. and Xiamen Haie Industrial Internet Co., Ltd. through common control business combinations Business Combinations Under Common Control Occurring in the Current Period | Name of Combined Entity | Equity Acquired in Business Combination | Consolidation Date | Net Profit of Combined Entity from Beginning of Current Period to Consolidation Date (RMB Yuan) | | :--- | :--- | :--- | :--- | | Xiamen ITG Digital Technology Co., Ltd. | 100.00% | March 26, 2025 | 945,553.83 | | Xiamen Haie Industrial Internet Co., Ltd. | 100.00% | March 25, 2025 | 556,824.76 | - Xiamen ITG Digital Technology Co., Ltd. holds 60% equity in Xiamen ITG JD Digital Technology Co., Ltd., which is also included in the scope of consolidation[679] Disposal of Subsidiaries | Subsidiary Name | Date of Loss of Control | Disposal Percentage | Disposal Method | Disposal Price (RMB Yuan) | | :--- | :--- | :--- | :--- | :--- | | Xiamen Xindeco Investment Management Co., Ltd. | June 30, 2025 | 100.00% | Agreement transfer | 86,665,500.00 | - Newly established subsidiaries included in the scope of consolidation for the current period are Xiamen Xindeco Industrial Investment Co., Ltd. and ITG AUTO (THAILAND) CO.,LTD[686] - Subsidiaries deregistered and no longer included in the scope of consolidation for the current period are Xiamen Xindeco Jianlong Supply Chain Management Co., Ltd[687] Interests in Other Entities The company holds interests in numerous subsidiaries across various sectors and significant associate companies, exercising control through direct/indirect shareholding or board representation - The company owns numerous subsidiaries, covering various business areas such as trade, automobile agency, manufacturing, technology services, and development[689][691][693][695][697][699] - Wholly-owned subsidiary Xiamen Xindeco International Trade Co., Ltd. controls Xiamen Xindeco Zhongtian Network Technology Co., Ltd. through shareholding, which in turn controls Xiamen Fans Network Technology Co., Ltd. and Xiamen Hi-Point Animation Co., Ltd[699] - Wholly-owned subsidiary Xiamen Xindeco ITG Auto Group Co., Ltd. controls Xiamen Zhong Sheng Toyota Automobile Sales and Service Co., Ltd. through articles of association and controls Kunming Poly Toyota Automobile Sales