和晶科技(300279) - 2025 Q2 - 季度财报

Section 1 Important Notice, Table of Contents, and Definitions Important Notice The company's board, supervisory board, and senior management assure the report's accuracy and completeness, with no cash dividends or bonus shares planned for this period - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content[3] - Company head Feng Hongtao, chief financial officer Wang Dapeng, and head of accounting department Zhu Ping declare the financial report to be true, accurate, and complete[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4] Table of Contents This report details eight main chapters, providing a comprehensive information index for investors on company profile, management discussion, corporate governance, and financial reports - The report contains eight main chapters, structured clearly for investor review[6] Reference Documents Reference documents include signed and sealed financial statements, original copies of all publicly disclosed company documents and announcements, and the original semi-annual report document signed by the legal representative and sealed by the company, all available at the company's board office - Reference documents include signed and sealed financial statements, original copies of publicly disclosed documents, and the original semi-annual report[8][9][10] - All reference documents are available at the company's board of directors office[12] Definitions This section defines common terms used in the report, including company names, major holding and participating subsidiaries, reporting period, currency units, and regulatory bodies, ensuring accurate understanding of the report content - Key entities such as the Company, controlling shareholder Jingzhou Huihe, wholly-owned subsidiaries Hodgen Smart, Zhongke Xinrui, and Hodgen Hong Kong are clearly defined[15] - The reporting period refers to January 1, 2025, to June 30, 2025[15] Section 2 Company Profile and Key Financial Indicators Company Profile The company's stock ticker and code are Hodgen Technology (300279), listed on the Shenzhen Stock Exchange, with Feng Hongtao as legal representative and Bai Lin as board secretary; no changes occurred in registered address, office address, website, email, information disclosure, or registration during the reporting period Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Hodgen Technology | | Stock Code | 300279 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Wuxi Hodgen Technology Co., Ltd. | | Legal Representative | Feng Hongtao | | Board Secretary | Bai Lin | | Securities Affairs Representative | Wu Fan | - No changes occurred in the company's contact information, information disclosure and placement locations, or registration status during the reporting period, as detailed in the 2024 annual report[19][20][21] Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue decreased by 13.70% year-on-year, while net profit attributable to shareholders increased by 38.53%, and basic earnings per share grew by 38.64%; total assets decreased by 4.28%, but net assets attributable to shareholders increased by 4.52%, with no differences between international/overseas and Chinese accounting standards Key Accounting Data and Financial Indicators (Year-on-Year) | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 920,553,002.04 | 1,066,685,489.14 | -13.70% | | Net Profit Attributable to Shareholders of Listed Company | 43,872,357.83 | 31,668,913.95 | 38.53% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 34,638,685.91 | 30,003,042.56 | 15.45% | | Net Cash Flow from Operating Activities | 114,414,628.87 | 147,333,663.82 | -22.34% | | Basic Earnings Per Share (yuan/share) | 0.0897 | 0.0647 | 38.64% | | Diluted Earnings Per Share (yuan/share) | 0.0897 | 0.0647 | 38.64% | | Weighted Average Return on Net Assets | 4.42% | 3.39% | 1.03% | | End of Current Reporting Period (yuan) | End of Prior Year (yuan) | Change from End of Prior Year to End of Current Reporting Period | | Total Assets | 2,096,450,004.48 | 2,190,153,803.23 | -4.28% | | Net Assets Attributable to Shareholders of Listed Company | 1,014,781,520.40 | 970,909,162.57 | 4.52% | - The company's financial reports show no differences in net profit and net assets between international or overseas accounting standards and Chinese accounting standards during the reporting period[23][24] Non-Recurring Gains and Losses During the reporting period, the company's total non-recurring gains and losses amounted to 9.23 million yuan, primarily from government subsidies, adjusted by non-current asset disposal gains/losses and income tax effects, with no other items meeting the definition of non-recurring gains and losses Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | | :--- | :--- | | Non-current asset disposal gains and losses | -85,921.22 | | Government grants recognized in current profit or loss | 10,954,433.12 | | Other non-operating income and expenses apart from the above | -5,368.47 | | Less: Income tax impact | 1,629,471.51 | | Total | 9,233,671.92 | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor has it classified any non-recurring gains and losses as recurring gains and losses[27] Section 3 Management Discussion and Analysis Principal Business Activities During the Reporting Period During the reporting period, the company's main business scope remained unchanged, focusing on the IoT sector, primarily engaging in R&D, manufacturing, application, and services for IoT hardware and software, including smart controllers and smart information solutions - The company's main business scope remained unchanged, continuously focusing on IoT sector businesses, primarily engaging in R&D, manufacturing, application, and services for IoT hardware and software[29] - Main products include smart controllers (applied in home appliances, automotive electronics, communications, industrial control, emerging consumer electronics, etc.) and smart information solutions (smart city, smart security)[29][30][33] Main Business and Products - Smart Controllers The company's smart controller products, operated by wholly-owned subsidiary Hodgen Smart, are primarily used in home appliances, automotive electronics, and other industries, with product lines expanding and active market penetration in new energy and smart connected vehicles - Smart controller products are primarily applied in home appliances, automotive electronics, and other industries, operated by wholly-owned subsidiary Hodgen Smart[30] - The home appliance product line has expanded from white goods like refrigerators and washing machines to diverse smart home appliances such as dishwashers, ovens, robot vacuum cleaners, and gas water heaters[30] - Automotive electronic products include BMS, power steering system ECUs, electrical fuse boxes, charging guns, various sensors, controllers, and high-power automotive lighting, indirectly supplied to mainstream domestic and international vehicle manufacturers and supporting enterprises like BYD, NIO, Tesla, and Volkswagen[31] - Products in other fields are applied in communication base station power controllers, industrial motor controllers, lottery machines, photovoltaic inverters, facial cleansers, smart locks, etc., with future expansion into high-end intelligent equipment and robotics[32] Main Business and Products - Smart Information Solutions and Services Smart information solutions and services encompass smart city intelligent engineering and smart security businesses, primarily operated by wholly-owned subsidiary Zhongke Xinrui and its controlled subsidiary Jingan Smart, offering customized solutions and IoT monitoring platforms to government, education, medical, and industrial clients - Smart information solutions and services include intelligent engineering business under smart city and smart security business, primarily operated by Zhongke Xinrui and Jingan Smart[33] - Intelligent engineering business provides customized information solutions to government, education, medical, and security industry clients[34] - Smart security business focuses on "production safety + fire safety," serving grassroots government departments and 32 industry sectors including industrial parks, chemical enterprises, schools, and hospitals, offering a "platform + hardware + service" product system[34][35] Key Performance Drivers The company's performance growth is primarily driven by the expansion of the smart controller industry, strategic multi-dimensional布局, high-quality partners, and a "localized + globalized" synergistic production capacity layout, with notable performance in variable frequency refrigerator controllers and new energy vehicle BMS markets - The smart controller industry continues to expand with AIoT integration, edge computing, and scenario diversification driven by green energy saving and personalized interaction[36] - In the home appliance sector, the company leverages its leading technology in variable frequency refrigerator smart controllers, expanding business through a "vertical and horizontal extension" strategy covering domestic and international markets[36] - In the automotive electronics sector, benefiting from the trends of automotive electrification, intelligence, and connectivity, products like BMS are rapidly developing, and the company continues to increase investment[37] - The company has established stable cooperative relationships with leading domestic and international brands such as Haier, Hisense, BSH, GE Appliances, BYD, NIO, Tesla, Nokia, and Ericsson[39] Core Competitiveness Analysis The company's core competitiveness lies in its strong manufacturing capabilities, efficient supply chain management, high-quality customer base, rich product lines, and deep technological advantages, having built a comprehensive service system from R&D to quality management and continuously innovating in smart control technology and software algorithms - The company has built a full-process service system in the smart controller field, possessing stable, efficient, and large-scale manufacturing capabilities, as well as production capacity that combines scale and flexibility[43] - Through MES and ERP systems, the company collaborates closely with upstream suppliers, establishing an efficient supply chain management advantage to ensure high efficiency and stability in production and delivery[44] - The company has established long-term stable strategic cooperative relationships with renowned domestic and international clients such as BSH, GEA, Hisense, Haier, BYD, NIO, Tesla, Nokia, and Ericsson[45] - The product line is rich, having expanded from home appliance smart controllers to non-home appliance fields such as communication base stations, automotive electronics, heavy engineering machinery, industrial, medical, and emerging consumer electronics[46] - The company possesses deep technological accumulation and experience in both smart controllers and smart information solutions and services, particularly in core technologies for variable frequency control, drum washing machine main control solutions, multi-door/side-by-side refrigerator main control solutions, and smart security cloud platforms[47][48] Analysis of Principal Business During the reporting period, operating revenue decreased by 13.70% to 920.55 million yuan, but net profit attributable to shareholders increased by 38.53% to 43.87 million yuan, driven by optimized customer and product structure, improved gross margin, strengthened cost management, and positive investment income; smart manufacturing business faced order fluctuations but maintained profitability, while smart information business generated 23.22 million yuan in revenue - During the reporting period, operating revenue was 920.55 million yuan, a year-on-year decrease of 13.70%; net profit attributable to shareholders of the listed company was 43.87 million yuan, a year-on-year increase of 38.53%[49] - Net profit growth was primarily due to optimizing customer and product structure, increasing the proportion of foreign clients and product gross margin, strengthening lean cost management, and investment income from the exit of Suzhou Kongkong and Suzhou Kongtian from Beijing Fujirei Optoelectronic Technology Co., Ltd[49] - Smart manufacturing business revenue was 897.34 million yuan, with unstable order volumes due to global economic uncertainty, tariff barriers, and price competition, but profitability did not decline through multi-base layout and refined management[50] - Smart information business revenue was 23.22 million yuan, primarily including smart security business (self-developed smart security integrated management platform) and system integration and intelligent engineering business (serving government, education, medical, and other industry clients)[56] Smart Manufacturing Business The smart manufacturing business achieved 897.34 million yuan in operating revenue during the reporting period, with strong performance in home appliances and growing automotive electronics, while other sectors are expanding; the company has established a multi-regional production base layout in Wuxi, Huaibei, and Mexico, with the Huaibei base reaching full production and the Mexico base continuously improving its operational capabilities - The smart manufacturing business achieved operating revenue of 897.34 million yuan during the reporting period[50] - Home appliance sector revenue was 772.05 million yuan, consolidating white goods advantages and extending to other home appliance product lines through technological innovation, product upgrades, and market expansion, with the Mexico base playing a strategic supporting role in overseas market expansion[51][52] - Automotive electronics sector revenue was 64.41 million yuan, in a growth stage, continuously strengthening R&D, sales, supply chain, and management operational capabilities to drive new growth for the smart manufacturing business[53][54] - Other sectors (communications, industrial control, emerging consumer electronics) revenue was 61.29 million yuan, in an expansion stage, with future focus on business deepening and product line enrichment[54] - The company has formed a cross-regional, cross-national production base layout in Wuxi, Huaibei, and Mexico; the Huaibei manufacturing base has put 6 production lines into operation and achieved full production, while the Mexico base achieved operating revenue of 92.45 million yuan and net profit of 9.38 million yuan in this reporting period[55] Year-on-Year Changes in Key Financial Data During the reporting period, operating revenue and cost decreased year-on-year, but financial expenses significantly dropped by 93.27% due to partial bank loan repayment, lower interest rates, and higher USD deposit rates; net cash flow from investing activities increased by 225.25% due to increased investment recovery, while net cash flow from financing activities decreased by 199.80% due to reduced loan scale Key Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 920,553,002.04 | 1,066,685,489.14 | -13.70% | | | Operating Cost | 764,825,290.46 | 889,993,134.33 | -14.06% | | | Selling Expenses | 16,972,867.26 | 15,275,272.57 | 11.11% | | | Administrative Expenses | 40,563,428.03 | 46,600,819.56 | -12.96% | | | Financial Expenses | 560,665.61 | 8,336,441.67 | -93.27% | Primarily due to repayment of some bank loans, lower bank loan interest rates, and higher USD deposit interest rates | | Net Cash Flow from Operating Activities | 114,414,628.87 | 147,333,663.82 | -22.34% | | | Net Cash Flow from Investing Activities | 39,357,258.18 | -31,422,797.72 | 225.25% | Primarily due to increased investment recovery in the current period | | Net Cash Flow from Financing Activities | -36,097,682.75 | 36,170,349.47 | -199.80% | Primarily due to reduced loan scale in the current period | - The company's profit composition or sources of profit did not undergo significant changes during the reporting period[59] Products or Services Accounting for Over 10% of Revenue The company's microcomputer smart controller business generated 897.34 million yuan in revenue, representing the vast majority of total revenue, with a gross margin of 16.58%, a slight year-on-year increase of 0.21%; system integration business revenue was 23.22 million yuan, with a gross margin of 29.92%, a year-on-year increase of 6.77% Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Microcomputer Smart Controller | 897,337,755.91 | 748,555,080.76 | 16.58% | -13.41% | -13.62% | 0.21% | | System Integration | 23,215,246.13 | 16,270,209.70 | 29.92% | -23.65% | -30.37% | 6.77% | Analysis of Non-Principal Business During the reporting period, non-principal businesses significantly impacted total profit, with investment income of 13.39 million yuan (24.58% of total profit) primarily from equity method accounting for associate companies but not sustainable, asset impairment losses of 13.05 million yuan (-23.96% of total profit) mainly from inventory and contract asset impairment, and other income of 11.95 million yuan (21.94% of total profit) primarily from government grants and software VAT refunds, which is sustainable Impact of Non-Principal Business on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 13,388,849.63 | 24.58% | Primarily from equity method accounting for associate companies | No | | Asset Impairment | -13,048,987.66 | -23.96% | Inventory impairment provision and contract asset impairment provision | No | | Other Income | 11,952,596.22 | 21.94% | Primarily from deferred amortization of asset-related government grants and VAT refunds for software products received by Hodgen Information | Yes | | Credit Impairment Losses | -2,872,984.85 | -5.27% | Provision for bad debts | No | Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets were 2.096 billion yuan, a year-on-year decrease of 4.28%; inventory decreased by 4.52% due to sales and lower revenue, and long-term borrowings decreased by 1.72% as some were reclassified to non-current liabilities due within one year; overseas assets, specifically Hodgen Hong Kong, had total assets of 245 million yuan and net assets of 32.73 million yuan, with a net profit of 9.38 million yuan for the period, accounting for 24.11% of the company's net assets, and no assets or liabilities measured at fair value Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (yuan) | Proportion of Total Assets | Amount at End of Prior Year (yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 521,827,772.56 | 24.89% | 512,263,763.72 | 23.39% | 1.50% | | | Accounts Receivable | 538,493,956.36 | 25.69% | 523,403,035.07 | 23.90% | 1.79% | | | Inventory | 277,151,730.41 | 13.22% | 388,445,169.49 | 17.74% | -4.52% | Primarily due to sales of prior year-end inventory and lower sales revenue in the current period | | Long-term Equity Investments | 118,332,992.00 | 5.64% | 141,380,814.86 | 6.46% | -0.82% | | | Short-term Borrowings | 339,160,572.27 | 16.18% | 388,264,427.73 | 17.73% | -1.55% | | | Long-term Borrowings | 20,000,000.00 | 0.95% | 58,562,723.10 | 2.67% | -1.72% | Primarily due to reclassification of some long-term borrowings to non-current liabilities due within one year in the current period | Major Overseas Asset Information | Specific Content of Asset | Reason for Formation | Asset Scale | Location | Operating Model | Profitability | Proportion of Overseas Assets to Company's Net Assets | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hodgen International (Hong Kong) Limited | Investment Establishment | As of the end of the reporting period, total assets 245 million yuan, net assets 32.73 million yuan | Hong Kong | R&D, Production, Sales | Net profit for the current reporting period was 9.38 million yuan | 24.11% | - The company had no assets or liabilities measured at fair value during the reporting period[67] Investment Analysis During the reporting period, the company did not undertake significant equity or non-equity investments, nor did it engage in entrusted wealth management, derivative investments, or entrusted loans, and had no use of raised funds - The company had no use of raised funds during the reporting period[69] - The company did not engage in entrusted wealth management, derivative investments, or entrusted loans during the reporting period[70][71][72] Significant Asset and Equity Disposals During the reporting period, the company did not dispose of any significant assets or equity - The company did not dispose of significant assets during the reporting period[73] - The company did not dispose of significant equity during the reporting period[74] Analysis of Major Holding and Participating Companies The company's major holding subsidiaries, including Wuxi Hodgen Smart Technology Co., Ltd., Jiangsu Zhongke Xinrui Technology Co., Ltd., and Hodgen International (HK) Limited, significantly contributed to operating revenue and net profit in their respective business areas; participating companies Suzhou Kongkong Venture Capital Partnership and Suzhou Zhaorong Kongtian Venture Capital Partnership also achieved considerable net profits Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wuxi Hodgen Smart Technology Co., Ltd. | Subsidiary | R&D and production of electronic smart controllers | 638,414,275.25 | 1,872,621,749.59 | 1,046,561,604.75 | 837,498,376.77 | 60,126,976.15 | 50,083,941.92 | | Jiangsu Zhongke Xinrui Technology Co., Ltd. | Subsidiary | Computer software development and system integration | 24,000,000 | 198,111,102.10 | 47,753,063.44 | 23,215,246.13 | -7,370,766.89 | -7,370,766.08 | | Hodgen International (HK) Limited | Subsidiary | R&D and production of electronic smart controllers | 43,207,246.68 | 244,760,856.29 | 32,729,999.23 | 92,453,391.51 | 9,209,434.30 | 9,381,163.22 | | Suzhou Kongkong Venture Capital Partnership (Limited Partnership) | Associate Company | Venture capital, venture capital consulting, and venture management services for startups | 193,800,000 | 199,539,873.86 | 199,539,873.86 | 0.00 | 13,777,608.52 | 13,777,608.52 | | Suzhou Zhaorong Kongtian Venture Capital Partnership (Limited Partnership) | Associate Company | Venture capital and related consulting services, acting as agent for other venture capital enterprises or individuals in venture capital business, providing venture management services for startups | 51,600,000 | 35,928,511.57 | 35,122,613.91 | 0.00 | 10,125,186.25 | 10,148,137.70 | - The company did not acquire or dispose of any subsidiaries during the reporting period[76] Structured Entities Controlled by the Company During the reporting period, the company did not control any structured entities - The company did not control any structured entities during the reporting period[77] Risks Faced by the Company and Countermeasures The company faces multiple risks including economic uncertainty, exchange rate fluctuations, goodwill impairment, and litigation matters; to address these, it has implemented measures such as optimizing business portfolios, building diversified production bases, refining cost control, timely foreign exchange hedging, intensifying business expansion, and actively responding to legal disputes to enhance operational resilience and long-term competitiveness - Global economic adjustments, geopolitical factors, trade wars, and supply chain restructuring have intensified international market volatility, potentially leading to increased customer order uncertainty, regional shifts, unstable raw material supply, and squeezed profit margins[77] - The company will address economic uncertainty risks by optimizing its domestic and international business portfolio, building a diversified production base network, exploring industrial chain extension, and implementing refined cost control[78] - RMB exchange rate fluctuations have some impact on the company's performance, and the company will manage exchange rate risk through flexible pricing and timely foreign exchange hedging[79] - Zhongke Xinrui's business is affected by tightening fiscal funds and intensified industry competition; the company has made goodwill impairment provisions for it in 2022 and 2024, and there remains a risk of further impairment in the future[80][81] - The company is involved in equity transaction litigation with Shanghai Yishi and business contract dispute litigation with Beifang Chaoneng; some litigation has led to bad debt provisions and impairment losses, and the final judgment and execution may adversely affect the company's profit[82][83][84][85] Record of Investor Relations Activities During the Reporting Period On May 9, 2025, the company hosted an online investor communication session on the Shenzhen Stock Exchange's "Interactive Easy Platform," primarily discussing its 2024 annual performance briefing - On May 9, 2025, the company hosted an online investor communication session on the Shenzhen Stock Exchange's "Interactive Easy Platform," primarily discussing its 2024 annual performance briefing[86] Implementation of Market Value Management System and Valuation Enhancement Plan The company has not established a market value management system nor disclosed a valuation enhancement plan - The company has not established a market value management system[87] - The company has not disclosed a valuation enhancement plan[87] Implementation of 'Quality and Return Enhancement' Action Plan The company has not disclosed an announcement regarding its "Quality and Return Enhancement" action plan - The company has not disclosed an announcement regarding its "Quality and Return Enhancement" action plan[87] Section 4 Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the company's directors, supervisors, and senior management, with details available in the 2024 annual report - The company's directors, supervisors, and senior management did not change during the reporting period[89] Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[90] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures, nor any implementation thereof - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures or their implementation during the reporting period[91] Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[92] Social Responsibility The company prioritizes social responsibility, providing employment, protecting the environment, conserving resources in its operations, and actively participating in party building activities and public welfare initiatives such as visiting disadvantaged households, assisting farmers, and supporting education, with no targeted poverty alleviation efforts during the reporting period - The company prioritizes social responsibility, providing employment, protecting the environment, and conserving resources in its production and operations[92] - During the reporting period, the company actively participated in party building activities and public welfare initiatives, including visiting disadvantaged households, assisting farmers, and supporting education through pairing programs[92] - The company has not undertaken targeted poverty alleviation work during the reporting period, nor does it have subsequent plans for targeted poverty alleviation[92] Section 5 Significant Matters Commitments Fulfilled and Overdue Unfulfilled by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period During the reporting period, there were no commitments fulfilled or overdue unfulfilled by the company's controlling shareholder, shareholders, related parties, acquirers, or the company itself - During the reporting period, there were no commitments fulfilled or overdue unfulfilled by the company's controlling shareholder, shareholders, related parties, acquirers, or the company itself[94] Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties During the reporting period, there were no instances of non-operating funds being occupied by the controlling shareholder or other related parties of the listed company - During the reporting period, there were no instances of non-operating funds being occupied by the controlling shareholder or other related parties of the listed company[95] Irregular External Guarantees During the reporting period, the company had no irregular external guarantees - The company had no irregular external guarantees during the reporting period[96] Appointment and Dismissal of Accounting Firms The company's semi-annual report was not audited - The company's semi-annual report was not audited[97] Board of Directors, Supervisory Board, and Audit Committee's Explanation on 'Non-Standard Audit Report' for the Current Period During the reporting period, the accounting firm did not issue a "non-standard audit report" for the company - During the reporting period, the accounting firm did not issue a "non-standard audit report" for the company[98] Board of Directors' Explanation on 'Non-Standard Audit Report' for the Previous Year During the reporting period, there was no explanation from the board of directors regarding a "non-standard audit report" for the previous year - During the reporting period, there was no explanation from the board of directors regarding a "non-standard audit report" for the previous year[98] Bankruptcy Reorganization Matters During the reporting period, the company did not experience any bankruptcy reorganization matters - The company did not experience any bankruptcy reorganization matters during the reporting period[98] Litigation Matters During the reporting period, the company had no significant litigation or arbitration matters, but other lawsuits exist; the equity transaction litigation with Shanghai Yishi has first and second instance judgments, but execution is suspended due to Shanghai Yishi's bankruptcy liquidation, with bad debt provisions already made; the business contract dispute litigation involving the company and its wholly-owned subsidiary Hodgen Smart with Beifang Chaoneng has not yet reached a final judgment, and Hodgen Smart has made impairment provisions for related receivables and inventory - During the reporting period, the company had no significant litigation or arbitration matters[99] - In the equity transaction litigation between the company and Shanghai Yishi, the first and second instance judgments supported some of the company's claims, but execution is suspended due to Shanghai Yishi's bankruptcy liquidation; the company has made bad debt provisions of 11.76 million yuan, 17.64 million yuan, and 7.35 million yuan in 2020, 2022, and 2023, respectively[100][101] - The business contract dispute litigation involving wholly-owned subsidiary Hodgen Smart and the company with Beifang Chaoneng has not yet reached a final judgment; Hodgen Smart has made full bad debt provisions for accounts receivable related to Beifang Chaoneng and partial impairment losses for related inventory[102][103] Penalties and Rectification During the reporting period, the company had no penalties or rectification situations - The company had no penalties or rectification situations during the reporting period[104] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the reporting period, there were no integrity issues concerning the company, its controlling shareholder, or actual controller - During the reporting period, there were no integrity issues concerning the company, its controlling shareholder, or actual controller[105] Significant Related Party Transactions During the reporting period, the company did not engage in related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, or related party creditor-debtor relationships, nor did it have dealings with affiliated financial companies - The company did not engage in related party transactions related to daily operations during the reporting period[105] - The company did not engage in related party transactions involving asset or equity acquisitions or disposals during the reporting period[106] - The company had no related party creditor-debtor relationships during the reporting period[108] - There were no deposits, loans, credit lines, or other financial transactions between the company and affiliated financial companies, or between financial companies controlled by the company and related parties[109][110] Significant Contracts and Their Performance During the reporting period, the company had no entrustment or contracting situations; its wholly-owned subsidiary Hodgen Hong Kong leased a factory in Mexico, with Hodgen Smart providing a joint liability guarantee of 3.4 million USD; the company has multiple significant guarantees, including for itself and its subsidiaries, with an actual guarantee balance of 432.72 million yuan at period-end, accounting for 42.64% of the company's net assets; while there are no significant daily operating contracts, progress on the smart manufacturing project investment agreement with Huaibei Lieshan District People's Government was disclosed - The company had no entrustment or contracting situations during the reporting period[112][113] - The company's wholly-owned subsidiary Hodgen Hong Kong leased a factory in Mexico for a term of 7 years, with Hodgen Smart providing a joint liability guarantee of 3.4 million USD[114][115] - At the end of the reporting period, the total approved guarantee limit was 825.45 million yuan, and the actual guarantee balance was 432.72 million yuan, accounting for 42.64% of the company's net assets[122] - The company has no significant daily operating contracts, but disclosed progress on the smart manufacturing project investment agreement signed with Huaibei Lieshan District People's Government, with the Huaibei manufacturing base transitional project having put 6 production lines into operation and achieved full production[123][124][128] Explanation of Other Significant Matters The company underwent organizational restructuring, establishing an Investment Operations Department; the Huaibei manufacturing base project adjusted its investment pace based on market and overseas base progress; the Mexico production base continues to enhance operational capabilities with plans for further investment; controlling shareholder Jingzhou Huihe initiated litigation to auction shares held by Mr. Chen Bailin due to a share pledge loan, but company control will not change; the company's co-investments, Suzhou Kongkong and Suzhou Kongtian, exited Beijing Fujirei Optoelectronic Technology Co., Ltd. shares, generating 10.4 million yuan in investment income this period - The company adjusted its organizational structure, renaming the former Securities and Investment Development Department to the Securities Affairs Department and establishing an Investment Operations Department (Hodgen Investment Development) responsible for strategic investment, emerging business incubation, and capital operations[125] - The Huaibei manufacturing base transitional project has been put into production and reached full capacity; the company will proceed with subsequent investments as appropriate based on overall planning and market conditions[128] - The company plans to continue increasing investment in the Mexico production base construction, with an investment scale not exceeding 150 million yuan, to enhance global delivery responsiveness and expand overseas markets[129][130][131] - Controlling shareholder Jingzhou Huihe initiated litigation against Mr. Chen Bailin due to a share pledge loan dispute, requesting the auction of his company shares, but the company's control will not change[132] - Suzhou Kongkong and Suzhou Kongtian, co-invested by the company and professional investment institutions, have exited their shares in Beijing Fujirei Optoelectronic Technology Co., Ltd., generating 10.4 million yuan in investment income this reporting period[135] Significant Matters of Company Subsidiaries After transferring 36% equity in its subsidiary Shenzhen Hodgen Education Technology Co., Ltd. (now Shenzhen Hejin Technology Co., Ltd.), the company's shareholding changed to 24%, and it is no longer included in the consolidated financial statements; the target subsidiary failed to repay intercompany receivables on time, leading the company to file a lawsuit, which has been heard but not yet ruled upon - The company transferred 36% equity in its subsidiary Shenzhen Hodgen Education Technology Co., Ltd. (now Shenzhen Hejin Technology Co., Ltd.), changing its shareholding to 24% and no longer including it in the consolidated financial statements[137] - The target subsidiary failed to repay intercompany receivables on time (remaining 4.5 million yuan), leading the company to file a lawsuit with the Wuxi Xinwu District People's Court, which has held a hearing but has not yet issued a judgment[138][139] Section 6 Share Changes and Shareholder Information Share Capital Changes During the reporting period, the company's restricted shares decreased by 3,833,703 shares, while unrestricted shares increased by 3,833,703 shares, with total share capital remaining unchanged; the share changes were primarily due to the release of restricted shares held by departing directors and supervisors, and there was no progress on share repurchases Share Capital Changes | Share Type | Number Before Change (shares) | Proportion Before Change | Increase/Decrease in Current Change (shares) | Number After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 30,263,738 | 6.19% | -3,833,703 | 26,430,035 | 5.40% | | II. Unrestricted Shares | 458,835,752 | 93.81% | 3,833,703 | 462,669,455 | 94.60% | | III. Total Shares | 489,099,490 | 100.00% | 0 | 489,099,490 | 100.00% | - The share changes were primarily due to the release of 3,833,703 restricted shares held by departing directors and supervisors[144] - The company had no progress on share repurchases during the reporting period[144] Changes in Restricted Shares During the reporting period, Gu Qun and Wu Jian had their restricted shares released due to departure, totaling 3,833,703 shares; restricted shares held by Xu Hongbin and Wang Dapeng, as well as those from asset acquisitions by Huaibei Growth-Oriented SME Fund Co., Ltd., Ningbo Longhuahui Equity Investment Management Co., Ltd. - Anhui Gaoxin Investment New Material Industry Fund Partnership (Limited Partnership), and Huaibei Shengda Construction Investment Co., Ltd., remained unchanged Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period | Restricted Shares Released in Current Period | Restricted Shares Increased in Current Period | Restricted Shares at End of Period | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Gu Qun | 3,343,703 | 3,343,703 | 0 | 0 | Restricted shares for senior management | | Wu Jian | 490,000 | 490,000 | 0 | 0 | Restricted shares for senior management | | Xu Hongbin | 1,575,000 | 0 | 0 | 1,575,000 | Restricted shares for senior management | | Wang Dapeng | 580,288 | 0 | 0 | 580,288 | Restricted shares for senior management | | Huaibei Growth-Oriented SME Fund Co., Ltd. | 10,114,478 | 0 | 0 | 10,114,478 | Commitment regarding share lock-up for asset acquisition through share issuance | | Ningbo Longhuahui Equity Investment Management Co., Ltd. - Anhui Gaoxin Investment New Material Industry Fund Partnership (Limited Partnership) | 10,114,478 | 0 | 0 | 10,114,478 | Commitment regarding share lock-up for asset acquisition through share issuance | | Huaibei Shengda Construction Investment Co., Ltd. | 4,045,791 | 0 | 0 | 4,045,791 | Commitment regarding share lock-up for asset acquisition through share issuance | | Total | 30,263,738 | 3,833,703 | 0 | 26,430,035 | | Issuance and Listing of Securities During the reporting period, the company had no issuance or listing of securities - The company had no issuance or listing of securities during the reporting period[148] Number of Shareholders and Shareholding Structure At the end of the reporting period, the total number of common shareholders was 24,608; controlling shareholder Jingzhou Huihe Equity Investment Partnership (Limited Partnership) held 17.05% of shares, and Mr. Chen Bailin held 9.17%, with all his shares pledged and frozen, and his voting rights entrusted to Jingzhou Huihe; among the top ten shareholders, Ningbo Longhuahui Equity Investment Management Co., Ltd. - Anhui Gaoxin Investment New Material Industry Fund Partnership (Limited Partnership) and Huaibei Growth-Oriented SME Fund Co., Ltd. also held significant proportions of shares - At the end of the reporting period, the total number of common shareholders was 24,608[149] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Pledge, Mark, or Freeze Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jingzhou Huihe Equity Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 17.05% | 83,370,000 | 0 | 83,370,000 | Not applicable | | Chen Bailin | Domestic Natural Person | 9.17% | 44,856,287 | 0 | 44,856,287 | Pledged: 44,856,287 shares; Frozen: 44,856,287 shares | | Ningbo Longhuahui Equity Investment Management Co., Ltd. - Anhui Gaoxin Investment New Material Industry Fund Partnership (Limited Partnership) | Other | 3.15% | 15,387,305 | 10,114,478 | 5,272,827 | Not applicable | | Huaibei Growth-Oriented SME Fund Co., Ltd. | Domestic Non-State-Owned Legal Person | 2.55% | 12,471,678 | 10,114,478 | 2,357,200 | Not applicable | | Chen Xiaohui | Domestic Natural Person | 1.60% | 7,825,880 | 0 | 7,825,880 | Not applicable | | Huaibei Shengda Construction Investment Co., Ltd. | State-Owned Legal Person | 1.42% | 6,935,642 | 4,045,791 | 2,889,851 | Not applicable | | Wen Lidan | Domestic Natural Person | 1.15% | 5,625,900 | 0 | 5,625,900 | Not applicable | | Yu Qiang | Domestic Natural Person | 1.06% | 5,200,000 | 0 | 5,200,000 | Not applicable | | Gu Qun | Domestic Natural Person | 0.86% | 4,218,271 | 0 | 4,218,271 | Not applicable | | Dai Wenping | Domestic Natural Person | 0.52% | 2,558,100 | 0 | 2,558,100 | Not applicable | - Mr. Chen Bailin entrusted all his 44,856,287 shares of the company's voting rights to Jingzhou Huihe, with the entrustment period from March 26, 2023, to March 25, 2026[151] Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, Vice Chairman and General Manager Xu Hongbin reduced his shareholding by 262,500 shares, with an ending balance of 1,837,500 shares; other directors, supervisors, and senior management had no changes in their shareholdings Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Status | Shares Held at Beginning of Period (shares) | Shares Increased in Current Period (shares) | Shares Decreased in Current Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Feng Hongtao | Chairman | Current | 0 | 0 | 0 | 0 | | Xu Hongbin | Vice Chairman, General Manager | Current | 2,100,000 | 0 | 262,500 | 1,837,500 | | Wang Dapeng | Deputy General Manager, CFO | Current | 773,718 | 0 | 0 | 773,718 | | Bai Lin | Deputy General Manager, Board Secretary | Current | 0 | 0 | 0 | 0 | | Total | -- | -- | 2,873,718 | 0 | 262,500 | 2,611,218 | 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[154] - The company's actual controller did not change during the reporting period[154] Preferred Shares Information During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[155] Section 7 Bond Information Bond Information During the reporting period, the company had no bond-related information - The company had no bond-related information during the reporting period[157] Section 8 Financial Report Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[159] 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 the first half of 2025; the consolidated statements show total assets of 2.096 billion yuan, total liabilities of 1.081 billion yuan, and total owners' equity of 1.015 billion yuan at period-end, with a net profit of 43.77 million yuan and net cash flow from operating activities of 114 million yuan for the reporting period Consolidated Balance Sheet (Period-End) | Item | Balance at Period-End (yuan) | | :--- | :--- | | Total Assets | 2,096,450,004.48 | | Total Liabilities | 1,081,443,759.07 | | Total Owners' Equity | 1,015,006,245.41 | Consolidated Income Statement (Current Period) | Item | First Half of 2025 (yuan) | | :--- | :--- | | Total Operating Revenue | 920,553,002.04 | | Operating Profit | 54,529,135.15 | | Total Profit | 54,471,006.10 | | Net Profit | 43,769,187.07 | | Net Profit Attributable to Parent Company Shareholders | 43,872,357.83 | | Basic Earnings Per Share | 0.0897 | Consolidated Cash Flow Statement (Current Period) | Item | First Half of 2025 (yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 114,414,628.87 | | Net Cash Flow from Investing Activities | 39,357,258.18 | | Net Cash Flow from Financing Activities | -36,097,682.75 | | Net Increase in Cash and Cash Equivalents | 118,327,979.79 | Company Basic Information Wuxi Hodgen Technology Co., Ltd., established in 2009, has a current total share capital of 489,099,490 shares and is headquartered in Wuxi, operating in the electronics industry with a business scope covering embedded software development, microcomputer smart controller manufacturing, and various equipment R&D and import/export; its financial report was approved by the board on August 23, 2025 - The company was established in October 2009, and after multiple capital changes, its current total share capital is 489,099,490 shares[194][201] - The company's registered and headquarters address is No. 177 Changjiang East Road, Wuxi City, with departments including the Board Office, Enterprise Management Department, Securities Affairs Department, Financial Management Department, Audit Department, Investment Operations Department (Hodgen Investment Development), Comprehensive Management Department, and subsidiaries such as Hodgen Smart and Zhongke Xinrui[203][204] - The company belongs to the electronics industry, with a business scope including embedded software development, microcomputer smart controller production, R&D and manufacturing of power transmission and distribution equipment, automotive components, communication equipment, and import/export business[205] - The company's financial report was approved by the board of directors on August 23, 2025[206] Basis of Financial Statement Preparation These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission; there are no significant doubts or circumstances regarding the company's ability to continue as a going concern within 12 months from the end of the reporting period - These financial statements are prepared in accordance with the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance and "Information Disclosure Rules for Companies Issuing Securities No. 15 - General Provisions for Financial Reports" by the China Securities Regulatory Commission[207] - There are no significant doubts or circumstances regarding the company's ability to continue as a going concern within 12 months from the end of the reporting period[208] Significant Accounting Policies and Estimates The company adheres to enterprise accounting standards, with an accounting period from January 1 to December 31 and a 12-month operating cycle; this section details important accounting policies and estimates for business combinations, consolidated financial statements, financial instrument classification and measurement, accounts receivable, inventory, long-term equity investments, fixed assets, intangible assets, and revenue recognition, along with materiality standards, with no significant changes in accounting policies or estimates during the reporting period - The company adheres to enterprise accounting standards, with an accounting period from January 1 to December 31 and a 12-month operating cycle[209][210][211] Materiality Standards | Item | Materiality Standard | | :--- | :--- | | Significant individual accounts receivable for which bad debt provisions are made | ≥3 million yuan | | Significant construction in progress | ≥5 million yuan | | Significant investment activities | ≥20 million yuan | | Significant non-wholly-owned subsidiaries | Subsidiary's total assets exceed 5% of consolidated total assets | - Consolidated financial statements are prepared based on control, with subsidiaries adopting uniform accounting policies[215][216] - Financial assets are classified into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in current profit or loss[226] - Revenue recognition principle is to recognize revenue when the customer obtains control of the related goods or services, using different recognition methods based on the type of performance obligation[305][308][309] - There were no significant changes in accounting policies or significant changes in accounting estimates during the reporting period[325] Taxation The company's main taxes include VAT, urban maintenance and construction tax, and corporate income tax; VAT rates vary by business type (13%, 9%, or 6%), and corporate income tax rates differ by taxpayer, with subsidiaries like Wuxi Hodgen Smart, Wuxi Hodgen Information Technology, and Anhui Hodgen Smart enjoying a 15% preferential high-tech enterprise tax rate; additionally, the company and its subsidiaries benefit from "exemption, credit, and refund" policies for export goods and immediate VAT refunds for software products Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales of goods, software revenue, technical services | 13%, 9%, 6% | | Urban Maintenance and Construction Tax | Payable turnover tax | 7% | | Corporate Income Tax | Taxable income | 15%, 20%, 25%, 16.5% | Taxpayers with Different Corporate Income Tax Rates | Taxpayer Name | Income Tax Rate | | :--- | :--- | | Wuxi Hodgen Smart Technology Co., Ltd. | 15% | | Wuxi Hodgen Information Technology Co., Ltd. | 15% | | Anhui Hodgen Smart Technology Co., Ltd. | 15% | | HODGEN INTERNATIONAL (HK)LIM | 16.5% | | Wuxi Hodgen Technology Co., Ltd. | 25% | | Jiangsu Zhongke Xinrui Technology Co., Ltd. | 25% | - The company and its subsidiaries enjoy the "exemption, credit, and refund" method for export goods VAT, with an export tax refund rate of 13%[327] - Subsidiaries Wuxi Hodgen Information Technology Co., Ltd. and Jiangsu Ruijiesi Information Technology Co., Ltd. enjoy an immediate VAT refund policy for self-developed software product sales, for the portion exceeding a 3% actual tax burden[327] Notes to Consolidated Financial Statement Items This section details the period-end and beginning-of-period balances and changes for major consolidated financial statement items; monetary funds totaled 522 million yuan at period-end, including 65.63 million yuan in overseas funds; accounts receivable were 538 million yuan, with 50.40 million yuan in bad debt provisions; inventory was 277 million yuan, with 72.62 million yuan in impairment provisions; long-term equity investments were 118 million yuan; fixed assets had a book value of 205 million yuan; goodwill had an original book value of 190 million yuan, with 52.22 million yuan in impairment provisions; short-term borrowings were 339 million yuan, and non-current liabilities due within one year were 82.08 million yuan; operating revenue was 921 million yuan, operating cost was 765 million yuan, and investment income was 13.39 million yuan; total assets with restricted ownership or use rights amounted to 115 million yuan at period-end Monetary Funds | Item | Balance at Period-End (yuan) | Balance at Beginning of Period (yuan) | | :--- | :--- | :--- | | Total | 521,827,772.56 | 512,263,763.72 | | Of which: Total funds deposited overseas | 65,629,430.77 | 29,924,639.75 | Accounts Receivable | Item | Book Value at Period-End (yuan) | Book Value at Beginning of Period (yuan) | | :--- | :--- | :--- | | Accounts Receivable | 538,493,956.36 | 523,403,035.07 | | Bad Debt Provision | 50,403,137.26 | 47,777,652.58 | Inventory | Item | Book Value at Period-End (yuan) | Book Value at Beginning of Period (yuan) | | :--- | :--- | :--- | | Total | 277,151,730.41 | 388,445,169.49 | | Inventory Impairment Provision and Contract Performance Cost Impairment Provision | 72,621,634.82 | 60,166,431.83 | Goodwill | Item | Balance at Beginning of Period (yuan) | Balance at Period-End (yuan) | | :--- | :--- | :--- | | Total Original Book Value of Goodwill | 190,023,996.51 | 190,023,996.51 | | Total Goodwill Impairment Provision | 52,224,274.95 | 52,224,274.95 | Assets with Restricted Ownership or Use Right