北方股份(600262) - 2025 Q2 - 季度财报

Section I Definitions 1.1 Definitions of Common Terms This chapter defines common terms used in the report, ensuring consistent understanding of professional terminology Common Term Definitions | Common Term | Meaning | | :--- | :--- | | Company, the Company, North Hauler | Inner Mongolia North Hauler Joint Stock Co., Ltd | | SSE, Exchange | Shanghai Stock Exchange | | CSRC | China Securities Regulatory Commission | | Norinco Group | China North Industries Group Corporation Limited | | Norinco Finance | Norinco Finance Co., Ltd | | North Heavy Industries Group | Inner Mongolia North Heavy Industries Group Co., Ltd | | Tewo Shanghai | Tewo (Shanghai) Enterprise Management Consulting Co., Ltd | | North Mining | Inner Mongolia North Smart Mining Machinery Co., Ltd | | Auditor, Lixin | Lixin Certified Public Accountants (Special General Partnership) | | Yuan | RMB Yuan | | Mining Truck, Off-highway Mining Dump Truck | Off-highway mining dump truck | Section II Company Profile and Key Financial Indicators 2.1 Company Information This chapter outlines the company's basic registration, contact details, disclosure channels, stock overview, and auditor information - Company full name: Inner Mongolia North Hauler Joint Stock Co., Ltd., abbreviated as North Hauler, legal representative: Wang Zhanshan[15] - Company shares listed on Shanghai Stock Exchange, stock code: 600262[20] - Auditor: Lixin Certified Public Accountants (Special General Partnership)[21] 2.2 Key Accounting Data and Financial Indicators This chapter presents key accounting data and financial indicators, including revenue, net profit, and EPS, with year-on-year comparisons and non-recurring items Key Accounting Data (Jan-Jun) | Key Accounting Data | This Reporting Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,689,946,117.22 | 1,366,234,149.29 | 23.69 | | Total Profit | 133,220,605.65 | 115,677,254.24 | 15.17 | | Net Profit Attributable to Shareholders of Listed Company | 99,794,885.86 | 74,898,028.50 | 33.24 | | Net Profit Attributable to Shareholders of Listed Company (excluding non-recurring gains and losses) | 95,867,003.98 | 65,500,091.66 | 46.36 | | Net Cash Flow from Operating Activities | 611,016,573.19 | -12,047,834.19 | Not Applicable | | Net Assets Attributable to Shareholders of Listed Company (end of period) | 1,677,817,425.69 | 1,630,090,229.99 | 2.93 | | Total Assets (end of period) | 5,067,663,173.50 | 4,219,483,621.76 | 20.10 | Key Financial Indicators (Jan-Jun) | Key Financial Indicators | This Reporting Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.59 | 0.44 | 34.09 | | Diluted Earnings Per Share (RMB/share) | 0.59 | 0.44 | 34.09 | | Basic Earnings Per Share (excluding non-recurring gains and losses) (RMB/share) | 0.56 | 0.39 | 43.59 | | Weighted Average Return on Net Assets (%) | 5.93 | 4.91 | Increase 1.02 percentage points | | Weighted Average Return on Net Assets (excluding non-recurring gains and losses) (%) | 5.70 | 4.29 | Increase 1.41 percentage points | Non-recurring Gains and Losses Items | Non-recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Government grants included in current profit/loss (excluding those with continuous impact) | 4,630,428.82 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 361,052.72 | | Other non-operating income and expenses apart from the above | -371,163.03 | | Less: Income tax impact | 692,918.91 | | Minority interest impact (after tax) | -482.28 | | Total | 3,927,881.88 | Section III Management Discussion and Analysis 3.1 Industry and Main Business Overview during the Reporting Period This chapter details the company's industry overview, competitive landscape, market demand changes, and main business scope and revenue sources 3.1.1 Industry Overview The mining truck industry, influenced by bulk commodities and infrastructure, faces domestic demand shifts and international complexities - The mining truck industry features "large products, small market" with high demands for reliability and durability, serving primarily large resource enterprises[28] - The global mining truck industry exhibits a "5+7+N" competitive landscape, with international markets as key future battlegrounds, facing complex international situations, supply chain restructuring, and rising/delayed key component supplies[29] - The company maintains specialized operations, tackling "bottleneck" issues through technological innovation, increasing localization of components, and expanding into aftermarket and EPC fields[29] 3.1.2 Main Business Operations The company's main business is R&D, production, sales, and service of 28-400 ton mining trucks, with revenue from vehicle/spare parts sales and maintenance - The company's main business is the R&D, production, sales, and service of mining trucks, covering a full range from 28 to 400 tons, including mechanical drive, electric drive, pure electric, and hydrogen energy types[30] - During the reporting period, the company's main business revenue primarily derived from sales of mining trucks and spare parts, maintenance contracts, and labor services[30] 3.2 Discussion and Analysis of Operations The company achieved significant revenue and net profit growth through innovation and reform, focusing on orders, cost reduction, and tech innovation - During the reporting period, the company achieved consolidated operating revenue of 1.69 billion RMB, a 23.69% year-on-year increase[31] - Net profit attributable to shareholders of the listed company was 99.79 million RMB, a 33.24% year-on-year increase[31] - In the second half, the company will focus on securing orders, ensuring fulfillment and delivery, and striving to meet annual operating targets through cost reduction, efficiency improvement, and technological innovation[31] 3.3 Analysis of Core Competencies during the Reporting Period As China's largest mining truck R&D and production base, the company leverages advanced management, tech innovation, industry standards, and a global service network - The company is China's largest mining truck R&D and production base, capable of providing comprehensive mining transportation system solutions[33] - The company's product technology consistently maintains domestic leadership and international advanced levels, continuously leading in autonomous driving and new energy mining trucks[33] - The company serves as the chairman unit of the Engineering Transportation Machinery Branch of the China Construction Machinery Industry Association, a lead drafter of national mining truck standards, and a manufacturing single champion demonstration enterprise[33] - The company boasts a comprehensive service network across China and globally, offering customized, intelligent, energy-saving, and environmentally friendly full-range mining truck products[34] 3.4 Key Operating Performance during the Reporting Period This chapter analyzes changes in financial statement items, asset/liability status, investment activities, and subsidiary performance 3.4.1 Main Business Analysis Operating revenue and cost increased, sales expenses stable, administrative expenses decreased, financial expenses reduced, R&D intensified, and cash flow improved Financial Statement Item Variation Analysis | Item | Current Period Amount (RMB) | Prior Year Period Amount (RMB) | Change Ratio (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,689,946,117.22 | 1,366,234,149.29 | 23.69 | | Operating Cost | 1,368,635,263.81 | 1,082,510,758.53 | 26.43 | | Sales Expenses | 15,266,674.58 | 14,590,882.95 | 4.63 | | Administrative Expenses | 29,601,305.27 | 42,471,080.97 | -30.30 | | Financial Expenses | -5,203,448.35 | -480,233.22 | Not Applicable | | R&D Expenses | 51,069,553.54 | 49,240,116.29 | 3.72 | | Net Cash Flow from Operating Activities | 611,016,573.19 | -12,047,834.19 | Not Applicable | | Net Cash Flow from Investing Activities | -6,583,559.51 | 2,344,053.33 | -380.86 | | Net Cash Flow from Financing Activities | -121,128,617.20 | -134,127,748.20 | Not Applicable | | Credit Impairment Losses | -80,363,201.53 | -19,428,107.18 | -313.64 | | Asset Impairment Losses | -20,565,508.62 | -54,444,317.77 | Not Applicable | - Operating revenue growth primarily attributed to increased sales of complete mining trucks, with a corresponding increase in operating costs[36] - The decrease in administrative expenses was mainly due to departmental function and division of labor changes in the second half of 2024, reclassifying some employee compensation to manufacturing costs and operating costs[38] - Net cash flow from operating activities significantly increased, primarily due to a year-on-year increase in operating cash receipts during the reporting period[38] 3.4.2 Analysis of Assets and Liabilities Monetary funds, receivables, contract assets, accounts payable, and contract liabilities grew, reflecting increased sales and customer prepayments Asset and Liability Status Changes | Item Name | Current Period End Amount (RMB) | Current Period End % of Total Assets | Prior Year End Amount (RMB) | Prior Year End % of Total Assets | Change from Prior Year End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 1,371,966,135.58 | 27.07 | 869,207,140.03 | 20.60 | 57.84 | Received customer prepayments during the reporting period | | Notes Receivable | 26,252,773.30 | 0.52 | 152,514,676.03 | 3.61 | -82.79 | Due to maturity of notes during the reporting period | | Receivables | 721,490,306.60 | 14.24 | 369,844,950.32 | 8.77 | 95.08 | Increase in receivables within contract period with realization of sales revenue during the reporting period | | Prepayments | 429,974,991.68 | 8.48 | 692,232,738.66 | 16.41 | -37.89 | Due to settlement of prepaid materials upon arrival during the reporting period | | Contract Assets | 73,653,576.06 | 1.45 | 47,610,191.19 | 1.13 | 54.70 | Increase in product quality assurance funds stipulated in contracts with realization of sales revenue during the reporting period | | Other Current Assets | 141,469,234.55 | 2.79 | 79,145,443.69 | 1.88 | 78.75 | Increase in reclassified input VAT to be deducted at the end of the reporting period | | Short-term Borrowings | 0.00 | 0.00 | 100,069,361.10 | 2.37 | -100.00 | Due to repayment of loans during the reporting period | | Accounts Payable | 1,027,089,715.65 | 20.27 | 698,538,157.94 | 16.56 | 47.03 | Increase in procurement of production materials and accounts payable within supplier credit period during the reporting period | | Contract Liabilities | 1,134,939,917.75 | 22.40 | 569,516,883.17 | 13.50 | 99.28 | Increase in prepayments for goods received according to sales contracts during the reporting period | | Employee Benefits Payable | 16,567,261.39 | 0.33 | 36,817,752.86 | 0.87 | -55.00 | Due to payment of employee annual bonuses during the reporting period | | Other Payables | 137,014,234.44 | 2.70 | 72,390,095.75 | 1.72 | 89.27 | Due to declared dividend distribution for 2024 during the reporting period | | Total Current Liabilities | 2,979,120,466.91 | 58.79 | 2,201,041,484.61 | 52.16 | 35.35 | Mainly due to increase in accounts payable and contract liabilities at the end of the reporting period | | Total Liabilities | 3,254,715,019.08 | 64.23 | 2,454,866,089.25 | 58.18 | 32.58 | Mainly due to increase in accounts payable and contract liabilities at the end of the reporting period | - At the end of the reporting period, the company's main restricted assets included 35,216,306.11 RMB for bank acceptance bill deposits[42] 3.4.3 Analysis of Investment Status Investments involved long-term equity in an Australian JV and other equity instruments, including one in bankruptcy liquidation - The company's controlled subsidiary, North Mining, established an associate joint venture in Australia, with North Mining holding 45% equity and having invested 900,000 AUD[44] - Other equity instrument investments include Northern United Aluminum (Shenzhen) Co., Ltd. (2.4 million RMB, now in bankruptcy liquidation) and Guoneng Baorixile Energy Co., Ltd. (5.35 million RMB)[44] 3.4.4 Analysis of Major Controlled and Associate Companies This chapter discloses financial information for Inner Mongolia North Smart Mining Machinery Co., Ltd., a key subsidiary in electric wheel mining trucks Financial Information of Major Subsidiaries | Company Name | Company Type | Main Business | Registered Capital (million RMB) | Total Assets (million RMB) | Net Assets (million RMB) | Operating Revenue (million RMB) | Operating Profit (million RMB) | Net Profit (million RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Inner Mongolia North Smart Mining Machinery Co., Ltd | Subsidiary | Sales and services of electric wheel mining trucks and spare parts | 50.00 | 339.02 | 270.80 | 161.43 | 25.10 | 18.42 | 3.5 Other Disclosure Matters This chapter details the company's potential significant risks and corresponding mitigation measures, covering industry, market, technology, international environment, exchange rate, raw material price fluctuations, and receivables/inventory occupation 3.5.1 Potential Risks The company faces industry, market, technology, international, exchange rate, raw material, and working capital risks, addressed by strategic adjustments - Industry Risk: The mining truck industry is cyclical, linked to bulk commodities and infrastructure investment, with macroeconomic policy changes affecting downstream demand[47] - Market Risk: The mining truck industry is highly competitive, with imperfect domestic market access standards and wide-body trucks replacing traditional mining trucks[48] - Risk of Insufficient Technological Leadership: Sustaining leadership in technology R&D and product updates faces challenges amidst fierce market competition[48] - International Environment Risk: Dependence on imported components and product exports to multiple countries mean international political, economic, and trade environment changes could impact operations[49] - Exchange Rate Risk: Import and export businesses settled in foreign currencies like USD, significant exchange rate fluctuations could lead to additional gains or losses[49] - Raw Material Price Volatility Risk: Raw material and component costs are influenced by market supply and demand, potentially pressuring production and operations[50] - Receivables and Inventory Occupancy Risk: Long-term large-scale occupancy could lead to credit impairment losses and asset impairment losses[50] Section IV Corporate Governance, Environment, and Society 4.1 Changes in Directors and Senior Management Vice General Manager Ba Gen resigned, and Dong Guojun and Zhao Xinchun were appointed as Vice General Managers - Vice General Manager Ba Gen resigned on February 10, 2025, due to work changes[55] - The Board of Directors appointed Dong Guojun and Zhao Xinchun as Vice General Managers[55] 4.2 Profit Distribution or Capital Reserve Conversion Plan The Board resolved not to distribute profits or convert capital reserves into share capital for the half-year period - The company will not conduct profit distribution or capital reserve conversion into share capital for the half-year period[6][56] 4.3 Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information The company is on the environmental disclosure list, with report access via a designated website - Inner Mongolia North Hauler Joint Stock Co., Ltd. is included in the list of enterprises required to disclose environmental information[58] - The environmental information disclosure report can be accessed via the designated website[58] Section V Significant Matters 5.1 Fulfillment of Commitments No unfulfilled commitments existed from the company, actual controller, shareholders, or related parties during the reporting period - During the reporting period, the company and related parties had no unfulfilled commitments[60] 5.2 Non-operating Fund Occupation by Controlling Shareholders and Other Related Parties during the Reporting Period No non-operating occupation of company funds by controlling shareholders or other related parties occurred - During the reporting period, there was no non-operating occupation of funds by controlling shareholders or other related parties[8][60] 5.3 Irregular Guarantees The company did not provide external guarantees in violation of prescribed decision-making procedures during the reporting period - During the reporting period, there were no external guarantees provided in violation of prescribed decision-making procedures[8][60] 5.4 Major Litigation and Arbitration Matters The company had no major litigation or arbitration matters during the reporting period - The company had no major litigation or arbitration matters during this reporting period[61] 5.5 Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller during the Reporting Period The company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled judgments or overdue large debts - During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled effective court judgments or overdue large debts[61] 5.6 Significant Related Party Transactions This chapter details daily operating related party transactions and financial dealings, including procurement, sales, deposits, and credit facilities 5.6.1 Related Party Transactions Related to Daily Operations Daily operating transactions with related parties include procurement and sales; 2025 estimates approved. Beishan Company did not purchase mining trucks - The estimated related party transactions for 2025 have been approved by the Board of Directors and submitted to the 2024 Annual General Meeting of Shareholders for approval[63] - During the reporting period, Beishan Company did not purchase mining trucks from the company, indicating a delay in this significant contract[62] Daily Related Party Transaction Amounts | Related Party | Related Relationship | Related Transaction Type | Related Transaction Content | Related Transaction Amount (RMB) | | :--- | :--- | :--- | :--- | :--- | | Inner Mongolia North Heavy Industries Group Co., Ltd. and its subsidiaries | Controlling Shareholder | Purchase of goods | Materials,配套, consulting, transportation services, etc | 8,918,198.83 | | China North Industries Group Corporation Limited and its subsidiaries | Group Brother Company | Purchase of goods | Materials,配套, consulting, transportation services, etc | 118,100,107.38 | | Inner Mongolia North Heavy Industries Group Co., Ltd. and its subsidiaries | Controlling Shareholder | Sales of goods | Materials, spare parts, etc | 61,500.00 | | China North Industries Group Corporation Limited and its subsidiaries | Group Brother Company | Sales of goods | Complete vehicles and spare parts, etc | 15,184,284.82 | | Total | / | / | / | 142,264,091.03 | 5.6.2 Financial Business between the Company and Related Financial Companies, and between the Company's Controlled Financial Company and Related Parties The company has deposit and credit facility business with Norinco Finance Co., Ltd., with significant period-end balances and utilized amounts Deposit Business Overview | Related Party | Related Relationship | Daily Maximum Deposit Limit (RMB) | Deposit Interest Rate Range | Beginning Balance (RMB) | Total Deposits This Period (RMB) | Total Withdrawals This Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Norinco Finance Co., Ltd | Same actual controller | 2,000,000,000.00 | 0.37%-1.21% | 849,484,763.60 | 3,203,182,596.26 | 2,724,885,536.20 | 1,327,781,823.66 | Credit and Other Financial Business Overview | Related Party | Related Relationship | Business Type | Total Amount (RMB) | Actual Amount Utilized (RMB) | | :--- | :--- | :--- | :--- | :--- | | Norinco Finance Co., Ltd | Same actual controller | Credit (Bills) | 2,500,000,000.00 | 389,447,517.87 | | Norinco Finance Co., Ltd | Same actual controller | Credit (Guarantees) | / | 1,593,700.00 | 5.7 Significant Contracts and Their Fulfillment The mining truck procurement contract with Walkworth Mining Co., Ltd. was fulfilled, but subsequent independent orders remain uncertain - The first batch contract (approximately 64.5 million USD) for mining truck procurement between the company and Walkworth Mining Co., Ltd. was fully delivered and accepted by December 2022, with payments received[74] - Subsequent independent orders for phased procurement, as stipulated in the contract, will be determined based on the buyer's operational needs, introducing uncertainty[74] Section VI Share Changes and Shareholder Information 6.1 Share Capital Changes Total share capital and equity structure remained unchanged, but Tewo Shanghai reduced its stake from 20.16% to 14.26%, with further reductions planned - During the reporting period, the company's total share capital and equity structure remained unchanged[76] - Tewo (Shanghai) Enterprise Management Consulting Co., Ltd. reduced its stake multiple times during the reporting period, with its shareholding proportion decreasing from 20.16% to 14.26%[77][79][80][81] - Tewo Shanghai plans to reduce its holdings by a total of no more than 5.1 million shares (3% of total share capital) through centralized bidding and/or block trading between August 22, 2025, and November 21, 2025[82] 6.2 Shareholder Information As of period-end, the company had 16,433 common shareholders; top ten listed, with North Heavy Industries as largest and Tewo Shanghai's stake decreasing - As of the end of the reporting period, the total number of common shareholders was 16,433[83] Top Ten Shareholders' Holdings | Shareholder Name | Change during Reporting Period (shares) | Ending Shareholding (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Inner Mongolia North Heavy Industries Group Co., Ltd | 0 | 46,341,499 | 27.26 | State-owned legal person | | Tewo (Shanghai) Enterprise Management Consulting Co., Ltd | -8,500,000 | 24,250,000 | 14.26 | Domestic non-state-owned legal person | | Norinco Investment Management Co., Ltd | 0 | 5,100,000 | 3.00 | State-owned legal person | | UBS AG | 3,740,687 | 3,855,908 | 2.27 | Other | | Huarong Guoxin Trust Co., Ltd. - Huarong Trust · Wocheng No. 1 Collective Fund Trust Plan | 3,400,000 | 3,400,000 | 2.00 | Other | | Ai Wanfen | 1,439,200 | 1,439,200 | 0.85 | Domestic natural person | | MORGAN STANLEY & CO. INTERNATIONAL PLC | 1,228,667 | 1,390,264 | 0.82 | Other | | Goldman Sachs Co., Ltd | 1,069,205 | 1,156,345 | 0.68 | Other | | Zhou Limin | -185,100 | 1,138,200 | 0.67 | Domestic natural person | | Bank of China Co., Ltd. - Huashang Selected Return Mixed Securities Investment Fund | 929,200 | 929,200 | 0.55 | Other | - Inner Mongolia North Heavy Industries Group Co., Ltd. and Norinco Investment Management Co., Ltd. are under the same actual controller, China North Industries Group Corporation Limited, and are considered parties acting in concert[86] Section VII Bond-Related Matters 7.1 Corporate Bonds (including Enterprise Bonds) and Non-financial Enterprise Debt Financing Instruments The company had no corporate bonds or non-financial enterprise debt financing instruments during the reporting period - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[89] 7.2 Convertible Corporate Bonds The company had no convertible corporate bonds during the reporting period - The company has no convertible corporate bonds[89] Section VIII Financial Report 8.1 Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[5][91] 8.2 Financial Statements This chapter provides consolidated and parent company financial statements, comprehensively presenting financial position, operating results, and cash flow 8.2.1 Consolidated Balance Sheet As of June 30, 2025, consolidated total assets increased by 20.10% to 5.07 billion RMB; total liabilities were 3.25 billion RMB, and owners' equity 1.81 billion RMB - As of June 30, 2025, consolidated total assets were 5,067,663,173.50 RMB, a 20.10% increase from December 31, 2024[23][93] - Consolidated total liabilities were 3,254,715,019.08 RMB, a 32.58% increase from December 31, 2024[40][94] - Total owners' equity attributable to the parent company was 1,677,817,425.69 RMB, a 2.93% increase from December 31, 2024[23][95] 8.2.2 Parent Company Balance Sheet As of June 30, 2025, parent company total assets were 4.84 billion RMB, total liabilities 3.21 billion RMB, and total owners' equity 1.63 billion RMB - As of June 30, 2025, parent company total assets were 4,841,920,463.83 RMB, a 20.59% increase from December 31, 2024[97] - Parent company total liabilities were 3,213,705,481.32 RMB, a 31.84% increase from December 31, 2024[98] - Parent company total owners' equity was 1,628,214,982.51 RMB, a 3.22% increase from December 31, 2024[98] 8.2.3 Consolidated Income Statement From Jan-Jun 2025, consolidated operating revenue grew 23.69% to 1.69 billion RMB; net profit attributable to parent shareholders increased 33.24% to 99.79 million RMB - Consolidated total operating revenue for the first half of 2025 was 1,689,946,117.22 RMB, compared to 1,366,234,149.29 RMB in the same period last year, a 23.69% year-on-year increase[100] - Net profit attributable to parent company shareholders was 99,794,885.86 RMB, compared to 74,898,028.50 RMB in the same period last year, a 33.24% year-on-year increase[102] - Basic and diluted earnings per share were both 0.59 RMB/share, compared to 0.44 RMB/share in the same period last year, a 34.09% year-on-year increase[24][103] 8.2.4 Parent Company Income Statement From Jan-Jun 2025, parent company operating revenue was 1.59 billion RMB, and net profit was 102.92 million RMB, showing significant growth - Parent company operating revenue for the first half of 2025 was 1,588,979,696.39 RMB, compared to 1,194,734,635.62 RMB in the same period last year, a 32.99% year-on-year increase[104] - Parent company net profit was 102,917,485.04 RMB, compared to 63,033,195.47 RMB in the same period last year, a 63.27% year-on-year increase[105] 8.2.5 Consolidated Cash Flow Statement Net cash flow from operating activities significantly improved to 611.02 million RMB; investing activities were -6.58 million RMB; financing activities were -121.13 million RMB - Net cash flow from operating activities was 611,016,573.19 RMB, compared to -12,047,834.19 RMB in the same period last year, primarily due to increased operating cash receipts[23][38][108] - Net cash flow from investing activities was -6,583,559.51 RMB, compared to 2,344,053.33 RMB in the same period last year, primarily due to investment income received in the prior period[23][38][108] - Net cash flow from financing activities was -121,128,617.20 RMB, compared to -134,127,748.20 RMB in the same period last year, primarily due to a year-on-year decrease in bank acceptance bill deposits paid[23][38][108] 8.2.6 Parent Company Cash Flow Statement Parent company net cash flow from operating activities was 665.29 million RMB, investing activities -6.12 million RMB, and financing activities -121.13 million RMB - Parent company net cash flow from operating activities was 665,290,995.41 RMB, compared to 17,405,514.95 RMB in the same period last year[111] - Parent company net cash flow from investing activities was -6,120,159.51 RMB, compared to 2,809,453.33 RMB in the same period last year[111] - Parent company net cash flow from financing activities was -121,128,617.20 RMB, compared to -134,127,748.20 RMB in the same period last year[111] 8.2.7 Consolidated Statement of Changes in Owners' Equity Consolidated total owners' equity increased by 48.33 million RMB, mainly due to increased net profit and special reserves - Consolidated total owners' equity for the first half of 2025 was 1,812,948,154.42 RMB, an increase of 48,330,621.91 RMB from the beginning of the period[113][118] - Total owners' equity attributable to the parent company increased by 47,727,195.70 RMB, primarily comprising 99,794,885.86 RMB in net profit and 53,720,000.00 RMB in profit distribution[113][115] 8.2.8 Parent Company Statement of Changes in Owners' Equity Parent company total owners' equity increased by 50.85 million RMB, mainly due to increased net profit and profit distribution - Parent company total owners' equity for the first half of 2025 was 1,628,214,982.51 RMB, an increase of 50,849,794.88 RMB from the beginning of the period[124][127] - Parent company net profit was 102,917,485.04 RMB, with profit distribution of 53,720,000.00 RMB[124] 8.3 Company Basic Information This chapter details the company's history, equity changes, registration, and main business, with Norinco Group as the ultimate controlling party - The company was established in 1988, restructured into a joint-stock company on June 9, 2000, and listed on the Shanghai Stock Exchange with stock code 600262[129][130] - The company's equity structure underwent multiple changes, with Tewo (Shanghai) Enterprise Management Consulting Co., Ltd.'s shareholding decreasing several times; as of June 30, 2025, North Heavy Industries held 27.26% and Tewo Shanghai held 14.26%[130][131][132][133][134] - The company's main business is the R&D, manufacturing, sales, and service of off-highway dump trucks and other construction machinery, with China North Industries Group Corporation Limited as the ultimate controlling party[135] 8.4 Basis for Preparation of Financial Statements Financial statements are prepared according to Accounting Standards for Business Enterprises and CSRC rules, on a going concern basis - Financial statements are prepared in accordance with the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance and "No. 15 Rules for Information Disclosure by Companies Issuing Securities to the Public - General Provisions on Financial Reports" by the China Securities Regulatory Commission[137] - These financial statements are prepared on a going concern basis[138] 8.5 Significant Accounting Policies and Estimates This chapter details policies for financial instruments, revenue, government grants, and the implementation of "Interpretation No. 18" - The company classifies financial assets as measured at amortized cost, fair value through other comprehensive income, or fair value through profit or loss, based on the business model for managing financial assets and contractual cash flow characteristics[153] - Revenue is recognized when performance obligations are satisfied, i.e., when the customer obtains control of the related goods or services, with specific recognition criteria for business types (complete vehicle sales, spare parts sales, service provision)[204][207] - Government grants are classified as asset-related or income-related, either reducing the carrying amount of assets or recognized as deferred income, and then recognized in profit or loss over the asset's useful life or during the period when related costs/expenses are incurred[211] - The company implemented "Interpretation No. 18 of Accounting Standards for Business Enterprises" from 2024, reclassifying guarantee-type quality assurance expenses into operating costs and retrospectively adjusting comparable period financial statements, resulting in a 30,704,848.39 RMB increase in operating costs and a 30,704,848.39 RMB decrease in sales expenses[223][224] 8.6 Taxation This chapter lists main tax categories and rates, and details tax incentives, including high-tech enterprise status and export/manufacturing benefits Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | VAT | Sales of goods and taxable services income | 13.00% | | Land Use Tax | Local standards | 9.60 RMB/㎡ | | Property Tax | 70% of property original value or rental income | 1.20%; 12.00% | | Urban Maintenance and Construction Tax | Actual VAT paid | 7.00% | | Corporate Income Tax | Taxable income | 15.00%, 25.00% | | Education Surcharge | Actual VAT paid | 3.00% | | Local Education Surcharge | Actual VAT paid | 2.00% | - As a high-tech enterprise, the company applies a 15.00% corporate income tax rate for 2025[232] - The company benefits from VAT "exemption, credit, refund" policy for export products and exemption from import duties and VAT for key components imported for major technical equipment production[233][234] - The company enjoys an immediate VAT refund policy for embedded software products where the actual tax burden exceeds 3%, and an additional VAT deduction policy for advanced manufacturing enterprises (5% deduction from January 1, 2023, to December 31, 2027)[234] 8.7 Notes to Consolidated Financial Statement Items This chapter provides detailed notes for all consolidated financial statement items, explaining significant changes and balances - Monetary funds balance at period-end was 1,371,966,135.58 RMB, of which 35,216,306.11 RMB were restricted funds for bank acceptance bill deposits[236] - Accounts receivable balance at period-end was 721,490,306.60 RMB, with bad debt provisions of 131,957,203.69 RMB, primarily due to increased receivables from sales revenue[39][246] - Inventories carrying amount at period-end was 1,700,948,492.56 RMB, with total inventory impairment provisions and contract performance cost impairment provisions of 341,374,502.55 RMB[287] - Fixed assets carrying amount at period-end was 297,555,678.32 RMB, including leased equipment with a carrying amount of 3,959,659.13 RMB[310][312] - Contract liabilities balance at period-end was 1,134,939,917.75 RMB, a 99.28% increase from the beginning of the period, mainly due to increased prepayments for goods[39][332] - Provisions balance at period-end was 163,773,909.38 RMB, primarily for product quality guarantees within the warranty period for complete vehicle sales[355] 8.8 R&D Expenses This chapter lists R&D expenses, all expensed, primarily for materials, personnel, and trial production tooling R&D Expenses by Nature | Item | Amount This Period (RMB) | Amount Last Period (RMB) | | :--- | :--- | :--- | | R&D Materials | 21,878,393.12 | 17,352,926.41 | | R&D Personnel Salaries and Subsidies | 15,011,442.68 | 18,276,968.82 | | R&D Trial Production Tooling and Molds | 7,090,946.25 | 566,371.68 | | R&D Instruments and Equipment Depreciation and Leasing | 1,395,952.94 | 2,183,470.95 | | R&D Fuel and Power Costs | 220,410.29 | 397,489.93 | | R&D Intangible Asset Amortization | 649,449.24 | 616,504.30 | | R&D Achievement Demonstration, Appraisal, Review, Acceptance Fees | 391,470.65 | 755,017.04 | | New Product Design Fees | 392,168.91 | 1,671,087.37 | | Other | 4,039,319.46 | 7,420,279.79 | | Total | 51,069,553.54 | 49,240,116.29 | | Of which: Expensed R&D expenditure | 51,069,553.54 | 49,240,116.29 | - All R&D expenses for this period were expensed and not capitalized[398] 8.9 Changes in Consolidation Scope No changes in the company's consolidation scope occurred during the reporting period due to business combinations or disposals - During the reporting period, there were no changes in the company's consolidation scope[400] 8.10 Interests in Other Entities This chapter discloses interests in subsidiaries and associates, including financial information for the controlled subsidiary and an associate Composition of the Enterprise Group | Subsidiary Name | Main Operating Place | Registered Capital | Registered Place | Business Nature | Shareholding Ratio (%) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | North Mining | Baotou, Inner Mongolia | 50.00 million RMB | Baotou Rare Earth High-tech Industrial Development Zone | Machinery manufacturing | 50.10 | Business combination not under common control | Key Financial Information of Significant Associates | Item | Ending Balance/Amount This Period (RMB) | Beginning Balance/Amount Last Period (RMB) | | :--- | :--- | :--- | | Aorui Beizhong Mining Co., Ltd. Current Assets | 23,633,531.76 | 20,496,399.03 | | Aorui Beizhong Mining Co., Ltd. Non-current Assets | 4,837,324.77 | 4,507,951.88 | | Aorui Beizhong Mining Co., Ltd. Total Assets | 28,470,856.53 | 25,004,350.91 | | Aorui Beizhong Mining Co., Ltd. Current Liabilities | 23,536,307.09 | 20,618,989.07 | | Aorui Beizhong Mining Co., Ltd. Non-current Liabilities | 3,354,786.32 | 3,323,984.25 | | Aorui Beizhong Mining Co., Ltd. Total Liabilities | 26,891,093.41 | 23,942,973.32 | | Aorui Beizhong Mining Co., Ltd. Owners' Equity | 1,579,763.12 | 1,061,377.59 | | Net Asset Share Calculated by Shareholding Ratio | 710,893.40 | 477,619.92 | | Operating Revenue | 18,269,476.95 | 18,845,111.04 | | Net Profit | 1,026,777.23 | -2,216,626.80 | | Other Comprehensive Income | -975,940.73 | -3,142,388.73 | | Total Comprehensive Income | 50,836.50 | -5,359,015.53 | 8.11 Government Grants This chapter discloses the government grants received by the company during the reporting period, including asset-related and income-related grants, and their impact on the financial statements Liability Items Involving Government Grants | Financial Statement Item | Beginning Balance (RMB) | Transferred to Other Income This Period (RMB) | Ending Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 40,089,928.98 | 1,232,232.00 | 38,857,696.98 | Asset-related | | Deferred Income | 28,540,000.00 | 0.00 | 28,540,000.00 | Income-related | | Total | 68,629,928.98 | 1,232,232.00 | 67,397,696.98 | / | Government Grants Included in Current Profit or Loss | Type | Amount This Period (RMB) | Amount Last Period (RMB) | | :--- | :--- | :--- | | Asset-related | 1,232,232.00 | 2,640,573.55 | | Income-related | 9,093,956.96 | 9,869,778.12 | | Total | 10,326,188.96 | 12,510,351.67 | 8.12 Risks Related to Financial Instruments The company faces credit, liquidity, and market risks, managed through diversified investments, credit monitoring, cash flow forecasts, and foreign currency strategies - The company faces credit risk (primarily from monetary funds, notes receivable, accounts receivable, etc.), liquidity risk, and market risk (exchange rate risk, interest rate risk)[410][411][415] - The company controls credit risk by assessing customer creditworthiness and regularly monitoring credit records[412] - The company manages liquidity risk by monitoring cash balances and rolling cash flow forecasts to ensure sufficient funds for debt repayment[413] - The company continuously monitors foreign currency transactions and the scale of foreign currency assets and liabilities to reduce exchange rate risk, and may enter into forward foreign exchange contracts[415] - As of June 30, 2025, a 10% appreciation or depreciation of the RMB against the USD would impact net profit by 1,414,176.65 RMB; a 10% appreciation or depreciation against the GBP would impact net profit by 3,519.62 RMB[416][417] 8.13 Disclosure of Fair Value This chapter discloses the fair value of financial assets, primarily notes receivable financing and other equity investments, classified by measurement levels Fair Value of Assets Measured at Fair Value at Period-End | Item | Fair Value Measurement at Level 2 (RMB) | Total (RMB) | | :--- | :--- | :--- | | Notes Receivable Financing | 12,910,000.00 | 12,910,000.00 | | Other Equity Instrument Investments | 5,350,000.00 | 5,350,000.00 | | Total | 18,260,000.00 | 18,260,000.00 | - Input values used for fair value measurement are classified into three levels, with the company's disclosed fair value measurement items primarily belonging to Level 2[421] 8.14 Related Parties and Related Party Transactions This chapter lists related parties and details various transactions, including purchases, sales, services, interest, and acceptance bills - The company's parent company is Inner Mongolia North Heavy Industries Group Co., Ltd., and the ultimate controlling party is China North Industries Group Corporation Limited[144] Related Party Transactions for Purchase of Goods/Acceptance of Services | Related Party | Related Transaction Content | Amount This Period (RMB) | Amount Last Period (RMB) | | :--- | :--- | :--- | :--- | | China North Industries Group Materials Co., Ltd. and its subsidiaries | Raw materials/equipment | 108,376,603.80 | 67,476,920.15 | | North Heavy Industries and its subsidiaries | Raw materials/processing/transportation services/testing services, etc | 8,918,198.83 | 9,667,476.16 | | Inner Mongolia First Machinery Group Co., Ltd. and its subsidiaries | Raw materials/transportation services/testing services, etc | 6,297,753.31 | 5,086,848.45 | | China North Industries Corporation and its subsidiaries | Transportation services | 3,285,194.36 | 4,702,770.55 | | Total | / | 127,018,306.21 | 87,119,767.54 | Related Party Transactions for Sale of Goods/Provision of Services | Related Party | Related Transaction Content | Amount This Period (RMB) | Amount Last Period (RMB) | | :--- | :--- | :--- | :--- | | North Special Energy Group Co., Ltd. and its subsidiaries | Complete vehicles and spare parts | 14,589,043.74 | 14,189,238.77 | | Aorui Beizhong Mining Co., Ltd | Spare parts | 3,645,221.18 | 4,103,829.52 | | Norinco Energy Saving and Environmental Protection Group Co., Ltd. and its subsidiaries | Complete vehicles and spare parts | 595,241.08 | 86,939,727.30 | | North Heavy Industries and its subsidiaries | Spare parts | 61,500.00 | 0.00 | | Total | / | 18,891,006.00 | 109,553,216.36 | - The company collected 5,648,998.90 RMB in deposit interest from Norinco Finance Co., Ltd. and had an ending balance of 389,447,517.87 RMB in issued acceptance bills[431] 8.15 Commitments and Contingencies No significant commitments or contingencies, but outstanding letters of guarantee and credit totaled approximately 999 million RMB - There were no significant commitments or contingencies requiring disclosure in this reporting period[439] - As of June 30, 2025, the company's unused amount of issued letters of credit was 423,615,290.04 RMB, and the outstanding amount of issued letters of guarantee was 575,929,543.34 RMB[440] 8.16 Post-Balance Sheet Events Significant post-balance sheet events include the 2024 profit distribution, a major shareholder's further share reduction plan, and cash dividends from an associate - The company's 2024 profit distribution plan was implemented on July 11, 2025, distributing a cash dividend of 3.16 RMB (tax inclusive) per 10 shares to all shareholders, totaling 53,720,000.00 RMB[442] - Major shareholder Tewo (Shanghai) Enterprise Management Consulting Co., Ltd. plans to reduce its holdings by a total of no more than 5.1 million shares (3% of total share capital) between August 22, 2025, and November 21, 2025[443] - The company will receive a cash dividend of 12.9247 million RMB from Guoneng Baorixile Energy Co., Ltd[444] 8.17 Notes to Parent Company Financial Statement Major Items This chapter provides detailed notes for parent company financial statement items, including receivables, long-term equity investments, revenue, cost, and investment income - Parent company accounts receivable balance at period-end was 636,709,244.27 RMB, with bad debt provisions of 129,275,794.49 RMB[154][156] - Parent company other receivables balance at period-end was 28,878,720.33 RMB, including 8,621,624.09 RMB in dividends receivable[157] - Parent company investment in subsidiaries carrying amount at period-end was 81,265,779.34 RMB, primarily for investment in North Mining[163][477] - Parent company operating revenue for this period was 1,588,979,696.39 RMB, and operating cost was 1,298,088,128.22 RMB[480] - Parent company investment income for this period was 8,621,624.09 RMB, primarily from long-term equity investments accounted for using the cost method[483] 8.18 Supplementary Information This chapter provides supplementary financial information, including non-recurring gains and losses details, and key financial indicators like return on net assets and EPS Detailed Statement of Non-recurring Gains and Losses for the Current Period | Item | Amount (RMB) | | :--- | :--- | | Government grants included in current profit/loss (excluding those with continuous impact) | 4,630,428.82 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 361,052.72 | | Other non-operating income and expenses apart from the above | -371,163.03 | | Less: Income tax impact | 692,918.91 | | Minority interest impact (after tax) | -482.28 | | Total | 3,927,881.88 | Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (RMB) | Diluted Earnings Per Share (RMB) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders of the company | 5.93 | 0.59 | 0.59 | | Net profit attributable to common shareholders of the company after deducting non-recurring gains and losses | 5.70 | 0.56 | 0.56 |