中元股份(300018) - 2025 Q2 - 季度财报

Section 1 Important Notices, Table of Contents, and Definitions Important Notices The company's management guarantees the report's authenticity and legal liability, with no plans for profit distribution - The Board of Directors, Supervisory Committee, and senior management guarantee the semi-annual report's content is true, accurate, and complete, and they bear individual and joint legal liability[4] - Company head Yin Jian, accounting head Lu Chunming, and accounting department head Huang Weibing affirm the financial report's truthfulness, accuracy, and completeness[4] - The company plans no cash dividends, bonus shares, or capitalization of public reserves[5] Table of Contents The report's directory outlines eight main sections, providing a comprehensive index for investors - The report's table of contents includes eight main sections, from important notices to the financial report, presenting a clear structure[7] Directory of Documents for Inspection Reference documents, including signed financial statements and original announcements, are available at the company's Board Office - Documents for inspection include signed financial statements, original public disclosures, and the original semi-annual report signed by the legal representative[9][10] - All documents for inspection are kept at the company's Board of Directors Office[11] Definitions This section defines key terms used in the report, including company names and industry-specific terminology - In the report, "the Company," "this Company," and "the Issuer" all refer to Wuhan Zhongyuan Huadian Technology Co, Ltd[12] - The actual controllers are eight parties acting in concert: Yin Jian, Lu Chunming, Deng Zhigang, Wang Yongye, Zhang Xiaobo, Liu Yi, Yin Liguang, and Chen Zhibing[12] - The report defines multiple power industry terms such as secondary equipment, UHV, smart substation, power fault recorder, and time synchronization system, as well as medical informatization[12][13] Section 2 Company Profile and Key Financial Indicators I. Company Profile The company, Wuhan Zhongyuan Huadian Technology Co, Ltd, is listed on the Shenzhen Stock Exchange under the stock code 300018 Company Basic Information | Item | Content | | :--- | :--- | | Stock Name | Zhongyuan Co, Ltd | | Stock Code | 300018 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | 武汉中元华电科技股份有限公司 | | Legal Representative | Yin Jian | II. Contact Persons and Methods The company's Board Secretary is Huang Weibing and the Securities Affairs Representative is Lei Ziyun Company Contact Information | Position | Name | Contact Address | Telephone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Huang Weibing | No 6, Liulu Road, Huazhong University of Science and Technology Park, East Lake High-tech Development Zone, Wuhan, Hubei, China | 027-87180718 | 027-87180719 | stock@zyhd.com.cn | | Securities Affairs Representative | Lei Ziyun | No 6, Liulu Road, Huazhong University of Science and Technology Park, East Lake High-tech Development Zone, Wuhan, Hubei, China | 027-87180718 | 027-87180719 | stock@zyhd.com.cn | III. Other Information No changes occurred in the company's contact information, information disclosure, or registration during the reporting period - The company's contact information, including registered address, office address, website, and email, remained unchanged during the reporting period[17] - The location for information disclosure and document inspection remained unchanged during the reporting period[18] - The company's registration details remained unchanged during the reporting period[19] IV. Key Accounting Data and Financial Indicators The company achieved significant growth in H1 2025, with revenue up 17.56% and net profit attributable to parent up 78.63% Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 237,135,964.23 | 201,719,655.89 | 17.56% | | Net Profit Attributable to Shareholders | 58,404,956.07 | 32,696,064.22 | 78.63% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 57,626,324.70 | 35,166,565.43 | 63.87% | | Net Cash Flow from Operating Activities | 40,600,459.80 | 29,174,424.87 | 39.16% | | Basic Earnings Per Share (Yuan/Share) | 0.12 | 0.07 | 71.43% | | Diluted Earnings Per Share (Yuan/Share) | 0.12 | 0.07 | 71.43% | | Weighted Average Return on Equity | 4.47% | 2.64% | 1.83% | | Indicator | End of Current Period (Yuan) | End of Prior Year (Yuan) | Change from Prior Year-End | | :--- | :--- | :--- | :--- | | Total Assets | 1,533,327,877.24 | 1,515,710,439.10 | 1.16% | | Net Assets Attributable to Shareholders | 1,328,463,794.62 | 1,287,085,090.86 | 3.21% | V. Differences in Accounting Data under Domestic and Foreign Accounting Standards There were no discrepancies in net profit or net assets between Chinese and international or foreign accounting standards - The company had no differences in net profit or net assets between financial reports prepared under IFRS and Chinese Accounting Standards during the reporting period[21] - The company had no differences in net profit or net assets between financial reports prepared under foreign accounting standards and Chinese Accounting Standards during the reporting period[22] VI. Non-recurring Profit and Loss Items and Amounts Non-recurring profit and loss totaled ¥0.78 million, mainly from government grants and investment gains, offset by fair value losses Non-recurring Profit and Loss Items and Amounts for H1 2025 | Item | Amount (Yuan) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | -3,543.05 | | Government Grants Recognized in Current Profit/Loss (Excluding Continuous Impact) | 1,093,537.78 | | Fair Value Gains/Losses from Financial Assets/Liabilities Held by Non-financial Enterprises | -4,064,268.04 | | Gains/Losses from Entrusted Investments or Asset Management | 4,745,472.86 | | Other Non-operating Income and Expenses | -170,862.91 | | Less: Income Tax Impact | 821,705.27 | | Total | 778,631.37 | - The company did not reclassify any non-recurring profit and loss items listed in "Explanatory Announcement No 1 on Information Disclosure for Companies Offering Securities to the Public — Non-recurring Profit and Loss" as recurring items[25] Section 3 Management Discussion and Analysis I. Principal Business Activities during the Reporting Period The company specializes in intelligent power system products and services, with a leading position in key market segments - The company's main business includes the R&D, manufacturing, sales, and service of intelligent power system recording analysis, time synchronization, and distribution network automation products[27] - Core products such as power fault recorders and time synchronization devices hold a leading position in their respective market segments[27] - The company operates on an "order-based production" model, securing orders through bidding, followed by on-site installation, commissioning, and delivery[27] - National policies, such as the "New Power System Development Blue Book" and increased investment from State Grid and China Southern Power Grid, create significant market opportunities for the company's smart grid products[28][29][30][31][32] II. Core Competitiveness Analysis The company's core competitiveness is driven by active standards participation, continuous technological innovation, and numerous qualifications - As of the end of the reporting period, the company had participated in 39 national, industry, corporate, and group standards that have been published and implemented, with 3 new standards implemented during the period[33] - During the reporting period, the company and its subsidiaries applied for 5 invention patents and 1 utility model patent, and were granted 5 utility model patents[33] - As of the end of the reporting period, the company and its subsidiaries held 74 invention patents, 45 utility model patents, and 1 design patent[33] - During the reporting period, the company and its subsidiaries registered 8 new software copyrights, bringing the cumulative total to 300[33] - The company and its subsidiaries have obtained multiple qualifications and honors, including AAA Credit Enterprise, Hubei Province "Specialized, Refined, Unique, and New" SME, ISO20000, and ISO27001 certifications[35] III. Main Business Analysis The company achieved strong performance by focusing on the smart grid sector, resulting in significant growth in revenue and net profit Key Operating Indicators for H1 2025 | Indicator | Amount (Yuan) | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 237,135,964.23 | 17.56% | | Operating Profit | 64,468,442.27 | 74.36% | | Total Profit | 64,314,964.50 | 69.41% | | Net Profit Attributable to Shareholders | 58,404,956.07 | 78.63% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 57,626,324.70 | 63.87% | | Basic Earnings Per Share | 0.12 | 71.43% | - The company signed contracts totaling ¥455.65 million, a year-on-year increase of 29.98%; smart grid business contracts amounted to ¥450.95 million, a significant increase of 34.00%[37] - The company won bids for several key projects, including the Shaanbei-Anhui ±800 kV UHV DC transmission project and the Guangdong Lianjiang Nuclear Power Project[38][39][40] - During the reporting period, the company had 17 major R&D projects, with several products like the multi-module communication management machine already in production and new products based on the Power Hongmeng OS under development[40][41][42] YoY Changes in Key Financial Data for H1 2025 | Item | Current Period (Yuan) | Prior Year Period (Yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 237,135,964.23 | 201,719,655.89 | 17.56% | N/A | | Operating Costs | 115,158,389.61 | 106,223,993.06 | 8.41% | N/A | | Selling Expenses | 21,012,155.49 | 21,710,135.38 | -3.21% | N/A | | Administrative Expenses | 17,524,101.30 | 19,183,573.33 | -8.65% | N/A | | Finance Expenses | -5,123,065.31 | -8,026,608.60 | -36.17% | Mainly due to a decrease in interest income received this period | | Income Tax Expense | 5,910,008.43 | 4,334,392.95 | 36.35% | Mainly due to an increase in total profit this period | | R&D Investment | 27,623,847.35 | 26,904,983.48 | 2.67% | N/A | | Net Cash Flow from Operating Activities | 40,600,459.80 | 29,174,424.87 | 39.16% | Mainly due to increased sales collections from sales growth | | Net Cash Flow from Investing Activities | -9,616,420.83 | 196,123,880.00 | -104.90% | Mainly due to more purchases and fewer maturities of bank wealth management products and large CDs | | Net Cash Flow from Financing Activities | -20,834,584.66 | -24,095,576.80 | -13.53% | N/A | | Net Increase in Cash and Cash Equivalents | 10,149,454.31 | 201,202,728.07 | -94.96% | | Products or Services Accounting for Over 10% of Revenue: | Product/Service | Operating Revenue (Yuan) | Operating Costs (Yuan) | Gross Margin | YoY Revenue Change | YoY Cost Change | YoY Gross Margin Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Power Fault Recorder | 76,749,852.23 | 32,446,095.84 | 57.72% | 5.74% | 2.63% | 1.28% | | Time Synchronization Device | 42,883,578.17 | 22,056,447.66 | 48.57% | 43.45% | 48.49% | -1.75% | Operating Revenue by Region: | Region | Operating Revenue (Yuan) | Operating Costs (Yuan) | Gross Margin | YoY Revenue Change | YoY Cost Change | YoY Gross Margin Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | East China | 56,193,529.95 | 25,227,588.68 | 55.11% | 23.86% | 25.62% | -0.63% | | Southwest China | 53,998,115.70 | 32,463,430.29 | 39.88% | 1.47% | -21.40% | 17.49% | | North China | 46,812,824.59 | 21,083,942.96 | 54.96% | 33.22% | 30.65% | 0.89% | | Central China | 31,227,729.63 | 13,223,828.34 | 57.65% | 77.21% | 109.42% | -6.51% | | South China | 27,783,534.33 | 12,859,577.90 | 53.72% | -29.83% | -27.65% | -1.40% | Operating Revenue by Industry: | Industry | Operating Revenue (Yuan) | Operating Costs (Yuan) | Gross Margin | YoY Revenue Change | YoY Cost Change | YoY Gross Margin Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Power Transmission, Distribution & Control Equipment Manufacturing | 226,220,333.24 | 108,868,084.22 | 51.88% | 18.50% | 17.59% | 0.37% | IV. Non-core Business Analysis Non-core business impact on profit was driven by investment income and negative fair value changes from fund investments Impact of Non-core Business on Total Profit for H1 2025 | Item | Amount (Yuan) | % of Total Profit | Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 4,323,506.44 | 6.72% | Mainly from bank wealth management products | No | | Fair Value Change Gains/Losses | -3,601,819.65 | -5.60% | From fair value changes of invested funds | No | | Non-operating Income | 56,864.74 | 0.09% | Miscellaneous non-operating income | No | | Non-operating Expenses | 210,342.51 | 0.33% | Miscellaneous non-operating expenses | No | V. Analysis of Assets and Liabilities Total assets grew slightly, with significant shifts from trading financial assets to debt investments due to large CD purchases Major Changes in Asset Composition for H1 2025 | Item | End of Period Amount (Yuan) | % of Total Assets | Prior Year-End Amount (Yuan) | % of Total Assets | Change in % | Reason for Major Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 133,572,253.34 | 8.71% | 123,675,712.23 | 8.16% | 0.55% | | | Accounts Receivable | 171,236,694.45 | 11.17% | 209,105,265.64 | 13.80% | -2.63% | | | Inventories | 181,294,092.45 | 11.82% | 143,257,300.80 | 9.45% | 2.37% | Mainly due to increased stock for a higher volume of contracts | | Trading Financial Assets | 284,000,000.00 | 18.52% | 435,000,000.00 | 28.70% | -10.18% | Mainly due to maturing bank wealth products being reinvested into large CDs | | Debt Investments | 475,000,000.00 | 30.98% | 305,474,472.22 | 20.15% | 10.83% | Mainly due to the purchase of large-denomination bank certificates of deposit | | Contract Liabilities | 76,556,572.18 | 4.99% | 56,289,410.14 | 3.71% | 1.28% | | Assets and Liabilities Measured at Fair Value for H1 2025 | Item | Opening Balance (Yuan) | Fair Value Change P/L (Yuan) | Purchases (Yuan) | Sales (Yuan) | Closing Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 435,000,000.00 | 0.00 | 682,000,000.00 | 833,000,000.00 | 284,000,000.00 | | Other Non-current Financial Assets | 77,884,973.62 | -3,601,819.65 | 0.00 | 12,644,797.58 | 61,638,356.39 | | Other Non-current Assets | 72,047,712.78 | -462,448.39 | 0.00 | 4,914,000.00 | 66,671,264.39 | | Total | 584,932,686.40 | -4,064,268.04 | 682,000,000.00 | 850,558,797.58 | 412,309,620.78 | Restricted Assets as of H1 2025 | Item | Year-End Book Value (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Other Monetary Funds | 1,536,489.95 | Letter of guarantee deposits, performance bonds | | Total | 1,536,489.95 | | VI. Investment Analysis Total investment increased by 16.80% to ¥862 million, primarily in financial assets measured at fair value Total Investment for H1 2025 | Indicator | Investment Amount (Yuan) | Prior Year Period Investment (Yuan) | Change | | :--- | :--- | :--- | :--- | | Total Investment | 862,013,547.95 | 738,000,000.00 | 16.80% | Financial Assets Measured at Fair Value for H1 2025 | Asset Class | Initial Investment Cost (Yuan) | Fair Value Change P/L (Yuan) | Cumulative Investment Income (Yuan) | Closing Amount (Yuan) | Funding Source | | :--- | :--- | :--- | :--- | :--- | :--- | | Other | 5,000,000.00 | 0.00 | 3,685,600.00 | 8,685,600.00 | Own funds | | Funds | 43,422,174.73 | -4,064,268.03 | 17,558,797.58 | 119,624,020.78 | Own funds | | Total | 48,422,174.73 | -4,064,268.03 | 21,244,397.58 | 128,309,620.78 | -- | - The company had no use of raised funds, entrusted wealth management, derivative investments, or entrusted loans during the reporting period[58][59][60][61] VII. Major Asset and Equity Sales No major sales of assets or equity occurred during the reporting period - The company did not sell any major assets during the reporting period[62] - The company did not sell any major equity during the reporting period[63] VIII. Analysis of Major Subsidiaries and Investees The company's main subsidiaries operate in software, equipment, and medical information, with varied profitability Major Subsidiaries and Investees for H1 2025 | Company Name | Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Software Company | Subsidiary | Software | 10,000,000.00 | 84,823,842.63 | 81,983,486.48 | 21,571,313.28 | 16,103,663.48 | 13,483,716.58 | | Equipment Company | Subsidiary | Power T&D & Control Equipment | 30,000,000.00 | 78,478,981.38 | 59,591,997.42 | 14,820,138.97 | 2,272,306.85 | 2,113,155.62 | | Chengdu Zhida | Subsidiary | Power T&D & Control Equipment | 50,000,000.00 | 131,233,215.20 | 108,030,256.71 | 28,734,689.32 | 4,849,937.72 | 2,969,790.85 | | Shixuan Technology | Subsidiary | Medical Information | 46,000,000.00 | 94,835,393.89 | 72,863,849.35 | 10,915,630.99 | 553,100.42 | 553,100.42 | | Zhongyuan Hui | Subsidiary | Non-securities Investment | 200,000,000.00 | 183,472,648.13 | 176,267,119.45 | 0.00 | -4,301,487.66 | -4,301,487.66 | - There were no acquisitions or disposals of subsidiaries during the reporting period[65] IX. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[67] X. Company Risks and Countermeasures The company faces risks from policy changes, market competition, and technology updates, which it addresses with proactive strategies - Industry Risk: The power industry is highly influenced by macroeconomic and national policies; changes could impact growth. Countermeasures include monitoring policies, enhancing core technologies, and expanding product lines[67][68] - Market Risk: Market changes in power construction and healthcare services intensify competition in technology, cost, and sales. Countermeasures include strengthening user communication, improving technology, managing costs, and exploring new markets[68][69] - Technology Risk: Rapid technological advancements in the power sector require the company to anticipate trends in smart grids and new energy. Countermeasures include refining R&D processes, increasing R&D investment, and collaborating with grid companies[69] - M&A Risk: External expansion carries risks of poor target selection or integration failure. Countermeasures include careful selection, diligent investigation, and robust post-merger integration management[69][70] - Talent Drain Risk: Loss of key personnel could affect the company's sustainable development. Countermeasures include improving talent acquisition, optimizing incentive systems, and establishing multi-level training programs[70] XI. Record of Investor Relations Activities The company engaged with online investors to discuss corporate strategy and business operations during the reporting period Investor Relations Activities in H1 2025 | Date | Location | Method | Type of Participant | Main Topics Discussed | | :--- | :--- | :--- | :--- | :--- | | 2025-04-02 | Value Online (https://www.ir-online.cn/) | Online Platform | Other (Online Investors) | Company strategy and business operations | | 2025-06-12 | Panorama Network IR Platform (https://ir.p5w.net) | Online Platform | Other (Online Investors) | Company strategy and business operations | XII. Formulation and Implementation of Market Value Management System and Value Enhancement Plan The company has not formulated a market value management system or disclosed a value enhancement plan - The company has not formulated a market value management system[73] - The company has not disclosed a value enhancement plan[73] XIII. Implementation of the "Dual Improvement in Quality and Returns" Action Plan The company has not disclosed an action plan for "Dual Improvement in Quality and Returns" - The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan[73] Section 4 Corporate Governance, Environment, and Society I. Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, or senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period[75] II. Profit Distribution and Capitalization of Capital Reserve for the Reporting Period The company does not plan to distribute profits or capitalize reserves for the first half of the year - The company plans no cash dividends, bonus shares, or capitalization of public reserves for the semi-annual period[76] III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company completed the first vesting period of its 2024 restricted stock incentive plan, vesting 4.5 million shares - On May 28, 2025, the company completed the vesting for the first period of its 2024 restricted stock incentive plan[77] - The number of vested shares was 4,504,000 for 103 individuals, at an adjusted grant price of ¥2.87 per share[77] - The company had no employee stock ownership plans or other employee incentive measures during the reporting period[78] IV. Environmental Information Disclosure The company and its main subsidiaries are not designated as enterprises required to disclose environmental information - The listed company and its main subsidiaries are not included in the list of enterprises required to disclose environmental information by law[79] V. Social Responsibility The company adheres to legal compliance, transparent investor communication, and employee-centric management practices - The company strictly complies with laws and regulations such as the "Company Law" and "Shenzhen Stock Exchange GEM Stock Listing Rules" to regulate information disclosure and improve its internal control system[79] - The company communicates with investors through various channels, including site visits, phone calls, emails, and an online investor relations platform, to enhance transparency[79] - The company adheres to a people-oriented talent philosophy, complies with labor laws, implements a fair compensation and performance system, and provides occupational health and safety training[79] Section 5 Important Matters I. Commitments Fulfilled or Outstanding by Relevant Parties The actual controllers have consistently fulfilled their long-term commitments regarding company independence and related-party transactions - The eight parties acting in concert, led by Yin Jian, have committed to ensuring the listed company's independence in personnel, assets, finance, organization, and business[81] - The actual controllers have pledged to minimize related-party transactions and to follow fair and lawful procedures for any unavoidable transactions[82] - The actual controllers have committed not to seek improper benefits or engage in business that competes with the company's main operations[82] - Several directors, supervisors, and senior management members have duly fulfilled their share lock-up commitments[82][83] II. Non-operational Fund Occupation by Controlling Shareholders and Other Affiliates There was no non-operational fund occupation by controlling shareholders or other affiliates during the reporting period - The company had no instances of non-operational fund occupation by controlling shareholders or other related parties during the reporting period[84] III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[85] IV. Appointment and Dismissal of Accounting Firm The company's semi-annual financial report has not been audited - The company's semi-annual report has not been audited[86] V. Explanation on "Non-standard Audit Report" for the Current Period No non-standard audit report was issued for the reporting period - The company did not receive a non-standard audit report for the reporting period[87] VI. Explanation on "Non-standard Audit Report" from the Previous Year No non-standard audit report was issued for the reporting period - The company did not receive a non-standard audit report for the reporting period[87] VII. Bankruptcy and Reorganization Matters No bankruptcy or reorganization matters occurred during the reporting period - No bankruptcy or reorganization matters occurred during the reporting period[87] VIII. Litigation Matters The company was not involved in any major litigation or arbitration during the reporting period - The company had no major litigation or arbitration matters during this reporting period[88] - The company had no other litigation matters during this reporting period[88] IX. Penalties and Rectifications No penalties or rectifications occurred during the reporting period - The company was not subject to any penalties or rectifications during the reporting period[89] X. Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers The company and its controllers maintained a good integrity record during the reporting period - The company, its controlling shareholders, and actual controllers had no integrity issues during the reporting period[90] XI. Major Related-Party Transactions No major related-party transactions related to daily operations, asset transfers, or financing occurred during the reporting period - The company had no related-party transactions associated with daily operations during the reporting period[90] - The company had no related-party transactions involving the acquisition or sale of assets or equity during the reporting period[91] - There were no related-party credit or debt transactions during the reporting period[93] - There were no deposits, loans, credit lines, or other financial services between the company and any related financial companies[94][95] XII. Major Contracts and Their Performance No major contracts concerning custody, contracting, leasing, or guarantees were active during the reporting period - The company had no custody arrangements during the reporting period[97] - The company had no contracting arrangements during the reporting period[98] - The company had no leasing arrangements during the reporting period[99] - The company had no major guarantees during the reporting period[100] - The company had no other major contracts during the reporting period[104] XIII. Explanation of Other Major Matters The company disclosed several key announcements, including its annual performance forecast and equity incentive vesting, on designated platforms - All company announcements were disclosed on designated information disclosure websites such as Cninfo, Cfi, Cnstock, Stcn, and Securities Daily[105] - Disclosures during the period included the 2024 annual performance forecast, internal control self-assessment report, annual profit distribution plan, board resolutions, and equity incentive vesting announcements[105][106] XIV. Major Matters Concerning Subsidiaries There were no major matters concerning the company's subsidiaries during the reporting period - The company had no major matters concerning its subsidiaries during the reporting period[107] Section 6 Share Capital Changes and Shareholder Information I. Share Capital Changes Total shares increased to 485.34 million due to the vesting of 4.50 million shares under the restricted stock incentive plan Share Capital Changes in H1 2025 | Share Class | Pre-Change Quantity (Shares) | Pre-Change Ratio | Change (+/- Shares) | Post-Change Quantity (Shares) | Post-Change Ratio | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 99,759,997 | 20.75% | -63,736,712 | 36,023,285 | 7.42% | | 3. Other Domestic Shares | 99,759,997 | 20.75% | -63,736,712 | 36,023,285 | 7.42% | | Domestic Natural Persons | 99,759,997 | 20.75% | -63,736,712 | 36,023,285 | 7.42% | | II. Unrestricted Shares | 381,071,539 | 79.25% | 68,240,712 | 449,312,251 | 92.58% | | 1. RMB Ordinary Shares | 381,071,539 | 79.25% | 68,240,712 | 449,312,251 | 92.58% | | III. Total Shares | 480,831,536 | 100.00% | 4,504,000 | 485,335,536 | 100.00% | - The restriction on 99,759,997 shares held by the actual controllers was lifted 18 months after they gained control, with 35,204,285 shares remaining under executive lock-up[110] - The first vesting period of the 2024 restricted stock incentive plan was completed, resulting in 4,504,000 newly listed shares, of which 819,000 are under executive lock-up[112] Changes in Restricted Shares in H1 2025 | Shareholder Name | Opening Restricted Shares | Shares Released | Shares Added | Closing Restricted Shares | Reason for Restriction | Planned Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yin Jian | 8,532,900 | 8,532,900 | 6,567,675 | 6,567,675 | Executive Lock-up | 25% of total shares held at year-end released annually | | Lu Chunming | 11,225,000 | 11,225,000 | 8,631,750 | 8,631,750 | Executive Lock-up | 25% of total shares held at year-end released annually | | Deng Zhigang | 20,570,100 | 20,570,100 | 15,607,575 | 15,607,575 | Executive Lock-up | 25% of total shares held at year-end released annually | | Wang Yongye | 21,511,300 | 21,511,300 | 0 | 0 | Lock-up Period Expired | 18 months post-control acquisition | | Zhang Xiaobo | 21,250,350 | 21,250,350 | 0 | 0 | Lock-up Period Expired | 18 months post-control acquisition | | Liu Yi | 10,059,300 | 10,059,300 | 0 | 0 | Lock-up Period Expired | 18 months post-control acquisition | | Yin Liguang | 6,328,000 | 6,328,000 | 4,746,000 | 4,746,000 | Executive Lock-up | 25% of total shares held at year-end released annually | | Chen Zhibing | 283,047 | 283,047 | 212,285 | 212,285 | Executive Lock-up | 25% of total shares held at year-end released annually | | Huang Weibing | 0 | 0 | 78,000 | 78,000 | Executive Lock-up | 25% of total shares held at year-end released annually | | Xiong Jinmei | 0 | 0 | 75,000 | 75,000 | Executive Lock-up | 25% of total shares held at year-end released annually | | Zheng Junlin | 0 | 0 | 105,000 | 105,000 | Executive Lock-up | 25% of total shares held at year-end released annually | | Total | 99,759,997 | 99,759,997 | 36,023,285 | 36,023,285 | -- | -- | II. Securities Issuance and Listing The company listed 4.50 million new restricted shares on May 28, 2025, from its 2024 incentive plan Securities Issuance and Listing in H1 2025 | Security Name | Issue Date | Issue Price (or Rate) | Issue Quantity (Shares) | Listing Date | Approved Listing Quantity (Shares) | Disclosure Index | Disclosure Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Restricted Shares from First Vesting of 2024 Incentive Plan | 2025-05-28 | 2.87 Yuan/Share | 4,504,000 | 2025-05-28 | 4,504,000 | http://www.cninfo.com.cn | 2025-05-26 | - The number of vested shares was 4,504,000 for 103 individuals, at an adjusted grant price of ¥2.87 per share[117] III. Number of Shareholders and Shareholdings At the end of the period, the company had 26,347 ordinary shareholders, with the top eight acting in concert holding 20.71% - The total number of ordinary shareholders at the end of the reporting period was 26,347[119] Top 10 Shareholders or Shareholders with >5% Holding as of H1 2025 | Shareholder Name | Shareholder Type | Shareholding Ratio | Shares Held at Period-End | Change During Period (Shares) | Restricted Shares Held | Unrestricted Shares Held | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Yongye | Domestic Natural Person | 4.43% | 21,511,300 | 0 | 0 | 21,511,300 | | Zhang Xiaobo | Domestic Natural Person | 4.38% | 21,250,350 | 0 | 0 | 21,250,350 | | Deng Zhigang | Domestic Natural Person | 4.29% | 20,810,100 | 240,000 | 15,607,575 | 5,202,525 | | Zhu Mengqian | Domestic Natural Person | 3.17% | 15,368,000 | 15,368,000 | 0 | 15,368,000 | | Zhang Fan | Domestic Natural Person | 3.09% | 15,000,000 | -188,800 | 0 | 15,000,000 | | Lu Chunming | Domestic Natural Person | 2.37% | 11,509,000 | 284,000 | 8,631,750 | 2,877,250 | | Pan Xiaoren | Domestic Natural Person | 2.08% | 10,080,000 | 0 | 0 | 10,080,000 | | Liu Yi | Domestic Natural Person | 2.07% | 10,059,300 | 0 | 0 | 10,059,300 | | Luoyang Huashi New Energy Technology Co, Ltd | Domestic Non-state-owned Corp | 1.98% | 9,616,000 | 0 | 0 | 9,616,000 | | Yin Jian | Domestic Natural Person | 1.80% | 8,756,900 | 224,000 | 6,567,675 | 2,189,225 | - Yin Jian, Lu Chunming, Deng Zhigang, Wang Yongye, Zhang Xiaobo, and Liu Yi are parties acting in concert; relationships among other shareholders are unknown[119] Top 10 Unrestricted Shareholders as of H1 2025 | Shareholder Name | Unrestricted Shares Held at Period-End | Share Class | Quantity (Shares) | | :--- | :--- | :--- | :--- | | Wang Yongye | 21,511,300 | RMB Ordinary Share | 21,511,300 | | Zhang Xiaobo | 21,250,350 | RMB Ordinary Share | 21,250,350 | | Zhu Mengqian | 15,368,000 | RMB Ordinary Share | 15,368,000 | | Zhang Fan | 15,000,000 | RMB Ordinary Share | 15,000,000 | | Pan Xiaoren | 10,080,000 | RMB Ordinary Share | 10,080,000 | | Liu Yi | 10,059,300 | RMB Ordinary Share | 10,059,300 | | Luoyang Huashi New Energy Technology Co, Ltd | 9,616,000 | RMB Ordinary Share | 9,616,000 | | Lu Qiuyan | 8,200,015 | RMB Ordinary Share | 8,200,015 | | Deng Zhigang | 5,202,525 | RMB Ordinary Share | 5,202,525 | | Wan Chunyan | 4,000,000 | RMB Ordinary Share | 4,000,000 | IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management Several directors and senior managers increased their shareholdings due to the vesting of the equity incentive plan Shareholding Changes of Directors, Supervisors, and Senior Management in H1 2025 | Name | Position | Opening Shares | Shares Increased | Closing Shares | Restricted Shares Granted at Period-End | | :--- | :--- | :--- | :--- | :--- | :--- | | Yin Jian | Chairman | 8,532,900 | 224,000 | 8,756,900 | 336,000 | | Lu Chunming | Vice Chairman, President | 11,225,000 | 284,000 | 11,509,000 | 426,000 | | Deng Zhigang | Director | 20,570,100 | 240,000 | 20,810,100 | 360,000 | | Huang Weibing | CFO & Board Secretary | 0 | 104,000 | 104,000 | 156,000 | | Xiong Jinmei | Vice President | 0 | 100,000 | 100,000 | 150,000 | | Zheng Junlin | Chief Engineer | 0 | 140,000 | 140,000 | 210,000 | | Total | -- | 46,939,047 | 1,092,000 | 48,031,047 | 1,638,000 | V. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder did not change during the reporting period[122] - The company's actual controller did not change during the reporting period[123] VI. Preferred Shares Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[124] Section 7 Bond-related Matters Bond-related Matters The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[126] Section 8 Financial Report I. Audit Report The company's semi-annual financial report has not been audited - The company's semi-annual financial report has not been audited[128] II. Financial Statements This section presents the consolidated and parent company financial statements for the first half of 2025 1. Consolidated Balance Sheet As of June 30, 2025, consolidated total assets were ¥1.53 billion, with total liabilities of ¥205 million - At period-end, consolidated total assets were ¥1,533.33 million, an increase of 1.16% from the beginning of the period[131] - Total current assets were ¥807.19 million, and total non-current assets were ¥726.13 million[130][131] - Total current liabilities were ¥197.66 million, total non-current liabilities were ¥7.20 million, and total liabilities were ¥204.86 million[131] - Total equity attributable to parent company shareholders was ¥1,328.46 million[131] 2. Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were ¥1.66 billion, with total liabilities of ¥283 million - At period-end, the parent company's total assets were ¥1,660.18 million, an increase of 3.76% from the beginning of the period[134] - Total current assets were ¥604.44 million, and total non-current assets were ¥1,055.74 million[134] - Total current liabilities were ¥283.18 million, and total liabilities were ¥283.18 million[135] - Total equity was ¥1,376.99 million[135] 3. Consolidated Income Statement For H1 2025, consolidated revenue was ¥237 million, and net profit attributable to parent was ¥58.40 million - For H1 2025, consolidated total operating revenue was ¥237.14 million, a year-on-year increase of 17.56%[137] - Consolidated operating profit was ¥64.47 million, a year-on-year increase of 74.36%[138] - Net profit attributable to parent company shareholders was ¥58.40 million, a year-on-year increase of 78.63%[138] - Basic earnings per share was ¥0.12, and diluted earnings per share was ¥0.12[139] 4. Parent Company Income Statement For H1 2025, the parent company's revenue was ¥185 million, and net profit was ¥42.08 million - For H1 2025, the parent company's operating revenue was ¥184.56 million, a year-on-year increase of 27.14%[140] - The parent company's operating profit was ¥43.20 million, a year-on-year increase of 85.69%[140] - The parent company's net profit was ¥42.08 million, a year-on-year increase of 74.50%[141] 5. Consolidated Cash Flow Statement For H1 2025, net cash flow from operating activities was ¥40.60 million, an increase of 39.16% - Net cash flow from operating activities was ¥40.60 million, a year-on-year increase of 39.16%[144] - Net cash flow from investing activities was -¥9.62 million, mainly due to increased purchases of bank wealth management products and large CDs[144] - Net cash flow from financing activities was -¥20.83 million[145] - The net increase in cash and cash equivalents was ¥10.15 million[145] 6. Parent Company Cash Flow Statement For H1 2025, the parent company's net cash flow from operating activities was ¥47.20 million - Net cash flow from operating activities was ¥47.20 million, a year-on-year increase of 12.24%[146] - Net cash flow from investing activities was -¥31.69 million[147] - Net cash flow from financing activities was -¥20.73 million[147] - The net increase in cash and cash equivalents was -¥5.22 million[147] 7. Consolidated Statement of Changes in Owners' Equity Consolidated owners' equity increased by ¥41.38 million, driven by net income and capital contributions - The net change in total owners' equity for the period was an increase of ¥41,378,703.76[149] - Total comprehensive income for the period was ¥58,404,956.07[149] - Capital contributions from owners increased by ¥16,631,955.21, including ¥4,504,000.00 from share issuance and ¥12,127,955.21 from share-based payments[149][150] - Profit distribution decreased equity by ¥33,658,207.52[150] 8. Parent Company Statement of Changes in Owners' Equity The parent company's owners' equity increased by ¥25.05 million, driven by net income and capital contributions - The net change in total owners' equity for the period was an increase of ¥25,051,332.29[159] - Total comprehensive income for the period was ¥42,077,584.61[159] - Capital contributions from owners increased by ¥16,631,955.20, including ¥4,504,000.00 from share issuance and ¥12,127,955.20 from share-based payments[159][160] - Profit distribution decreased equity by ¥33,658,207.52[160] III. Company Basic Information Wuhan Zhongyuan Huadian Technology Co, Ltd, established in 2001 and listed in 2009, specializes in power control equipment manufacturing - Wuhan Zhongyuan Huadian Technology Co, Ltd was founded on November 16, 2001, restructured into a joint-stock company on September 19, 2008, and listed on October 13, 2009[167][168] - After several changes, the company's registered capital increased to ¥485,335,536.00 as of May 28, 2025[168][169][170][171][172][173][175] - The company's business scope includes manufacturing of power transmission, distribution, and control equipment, software development, and information system integration services[176] - The consolidated financial statements include 5 first-tier subsidiaries and 1 second-tier subsidiary, with no change in the consolidation scope from the previous year[176] IV. Basis of Preparation for Financial Statements The financial statements are prepared in accordance with Chinese Accounting Standards and on a going concern basis - These financial statements are prepared in accordance with the "Enterprise Accounting Standards" and related regulations issued by the Ministry of Finance[178] - The Board of Directors believes the company has sufficient working capital to continue as a going concern for at least 12 months from the approval date of these financial statements[180] V. Significant Accounting Policies and Estimates This section details the accounting policies and estimates applied, covering areas like financial instruments, revenue, and assets - The financial statements comply with Enterprise Accounting Standards, presenting a true, accurate, and complete view of the company's financial position, performance, and cash flows[182] - The company uses a 12-month operating cycle to classify assets and liabilities as current or non-current[184] - The company has disclosed detailed accounting policies for the recognition, classification, measurement, and impairment of financial instruments[197][198][199][200][201][202][203][204][205][206][207][208][209] - Revenue from goods is recognized upon customer acceptance, while revenue from technical services is recognized based on the progress of performance or when control is transferred to the customer[256][257][258][259] - There were no significant changes in accounting policies or estimates during the reporting period[279] VI. Taxation The company and several subsidiaries benefit from a reduced 15% corporate income tax rate as high-tech enterprises Main Taxes and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable income is subject to output tax at rates of 13%, 9%, 6%, 5%, with the net amount payable after deducting input tax | 13%, 9%, 6%, 5% | | Urban Maintenance and Construction Tax | Calculated at 7% or 5% of the actual turnover tax paid | 7%, 5% | | Corporate Income Tax | Calculated at 15% or 25% of the taxable income | 15%, 25% | | Education Surcharge | Calculated at 3% or 2% of the actual turnover tax paid for education and local education surcharges | 3%, 2% | - Wuhan Zhongyuan Huadian Technology Co, Ltd and its key subsidiaries are certified as high-tech enterprises and are subject to a 15% corporate income tax rate[285] - Wuhan Zhongyuan Huadian Software Co, Ltd and Jiangsu Shixuan Technology Co, Ltd benefit from a VAT refund policy for software products where the tax burden exceeds 3%[286] - The company is exempt from VAT for technology transfer, development, and related consulting and technical services[287] VII. Notes to Consolidated Financial Statement Items This section provides detailed breakdowns of items in the consolidated financial statements, from cash to revenue and expenses - Cash and cash equivalents at period-end were ¥134 million, of which ¥1.54 million was restricted[289] - Trading financial assets at period-end were ¥284 million, a decrease of 34.60% from the beginning of the period[291] - Accounts receivable at period-end were ¥171 million, a decrease of 18.11% from the beginning of the period, with a bad debt provision ratio of 24.39%[303] - Inventories at period-end were ¥181 million, an increase of 26.55% due to increased stock for contracts[330] - Debt investments at period-end were ¥475 million, an increase of 55.50% due to purchases of large-denomination bank CDs[342] - Share capital at period-end was ¥485 million, an increase of 4.50 million shares due to the vesting of restricted stock[418] - Operating revenue was ¥237 million and operating cost was ¥115 million, resulting in a gross margin of 51.44%[428] - R&D expenses were ¥27.62 million, a year-on-year increase of 2.67%[437] - Net cash flow from operating activities was ¥40.60 million, a year-on-year increase of 39.16%[463] VIII. R&D Expenditures Total R&D expenditure for the period was ¥27.62 million, all of which was expensed and related to internal projects R&D Expenditures for H1 2025 | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Internal R&D Projects | 27,623,847.35 | 26,904,983.48 | | Total | 27,623,847.35 | 26,904,983.48 | | Of which: Expensed R&D | 27,623,847.35 | 26,904,983.48 | IX. Changes in Consolidation Scope There were no changes to the company's consolidation scope during this reporting period - There were no changes in the consolidation scope during this period[471] X. Interests in Other Entities The company holds interests in several subsidiaries and two key associate investment funds accounted for using the equity method Corporate Group Structure as of H1 2025 | Subsidiary Name | Registered Capital (Yuan) | Main Place of Business | Business Nature | Ownership (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Wuhan Zhongyuan Huadian Software Co, Ltd | 10,000,000.00 | Wuhan | Software Development | 100.00% | Establishment | | Wuhan Zhongyuan Huadian Power Equipment Co, Ltd | 30,000,000.00 | Wuhan | Power Equipment Manufacturing | 100.00% | Establishment | | Zhongyuan Hui (Wuhan) Industrial Investment Co, Ltd | 200,000,000.00 | Wuhan | Non-securities Investment | 100.00% | Establishment | | Chengdu Zhida Power Automatic Control Co, Ltd | 50,000,000.00 | Chengdu | Power Equipment Manufacturing | 100.00% | Acquisition | | Chengdu Jizhong Software Co, Ltd | 1,000,000.00 | Chengdu | Software Development | 0.00% | Establishment | | Jiangsu Shixuan Technology Co, Ltd | 46,000,000.00 | Changzhou | Medical Software | 99.00% | Acquisition | Key Joint Ventures or Associates as of H1 2025 | JV or Associate Name | Main Place of Business | Business Nature | Ownership (Direct) | Accounting Method | | :--- | :--- | :--- | :--- | :--- | | Wuhan Zhongyuan Jiupai Industrial Investment Management Co, Ltd | Wuhan | Non-securities Investment | 30.00% | Equity Method | | Hubei Zhongyuan Jiupai Industrial Investment Fund Partnership (LP) | Wuhan | Non-securities Investment | 37.80% | Equity Method | - Chengdu Jizhong Software Co, Ltd is a wholly-owned subsidiary established by Chengdu Zhida Power Automatic Control Co, Ltd[473] XI. Government Grants The company recognized ¥1.09 million in government grants during the period, primarily from VAT refunds and various subsidies Government Grants Recognized in P/L for H1 2025 | Account | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Other Income | 1,078,537.78 | 221,707.65 | | Non-operating Income | 15,000.00 | 857,000.00 | XII. Risks Related to Financial Instruments The company manages credit risk through reputable banks and debtor assessments, and maintains sufficient liquidity to meet obligations - The company's credit risk arises mainly from bank deposits and receivables, which is managed by using reputable banks and assessing debtor creditworthiness[483] - The company manages liquidity risk by maintaining and monitoring sufficient cash and cash equivalents[485] - As of year-end, ¥5.74 million in endorsed bank acceptance bills that were not yet due have been derecognized, as the credit risk is considered extremely low due to the high credit rating of the accepting banks[485] XIII. Fair Value Disclosure Assets measured at fair value totaled ¥64.12 million, primarily comprising receivables financing and other non-current financial assets Fair Value of Assets and Liabilities at Period-End for H1 2025 | Item | Level 3 Fair Value Measurement (Yuan) | Total (Yuan) | | :--- | :--- | :--- | | (I) Receivables Financing | 2,482,607.53 | 2,482,607.53 | | (II) Other Non-current Financial Assets | 61,638,356.39 | 61,638,356.39 | | Total Assets at Fair Value | 64,120,963.92 | 64,120,963.92 | - The company's Level 3 fair value items include other equity instrument investments and receivables financing[488] - Other equity instrument investments are valued using a market comparable company model, with inputs including P/E ratios, net profit, and a discount for lack of liquidity[488] - The fair value of receivables financing is recognized at its face value due to its short remaining term[488] XIV. Related Parties and Transactions The company's ultimate controllers are eight parties acting in concert holding 20.71%, with key management personnel compensation totaling ¥2.68 million - The ultimate controlling parties of the enterprise are eight individuals acting in concert, holding a combined 20.71% of the shares[489][491] Key Management Personnel Compensation for H1 2025 | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Executive Compensation | 2,679,184.65 | 2,497,667.42 | XV. Share-based Payments The company recognized ¥3.71 million in expenses for its equity-settled share-based payment plan during the period Share-based Payment Overview for H1 2025 | Grantee Category | Shares Exercised (Shares) | Value of Shares Exercised (Yuan) | | :--- | :--- | :--- | | Directors, Senior Management | 1,092,000.00 | 3,134,040.00 | | Core Business & Technical Staff | 3,412,000.00 | 9,792,440.00 | - The fair value of equity instruments on the grant date was determined using the Black-Scholes model[499] - The total expense recognized for equity-settled share-based payments in the current period was ¥3,705,475.21[499][501] XVI. Commitments and Contingencies As of June 30, 2025, the company had no significant commitments or contingencies to disclose - As of June 30, 2025, the company had no significant commitments to disclose[502] - As of June 30, 2025, the company had no significant contingencies to disclose[503][504] XVII. Subsequent Events There were no other subsequent events requiring disclosure as of June 30, 2025 - As of June 30, 2025, the company had no other subsequent events requiring disclosure[505] XVIII. Other Important Matters The company does not have separate operating segments, thus no segment information is disclosed - The company's business is not divided into operating segments, so no segment information based on operating segments is disclosed[506] XIX. Notes to Parent Company Financial Statement Items This section details key items from the parent company's financial statements, including receivables, investments, and revenue - The parent company's accounts receivable balance at period-end was ¥105 million, a decrease of 3.67% from the beginning of the period[512] - The parent company's other receivables balance at period-end was ¥19.14 million, an increase of 13.38% from the beginning of the period[520] - The parent company's long-term equity investments had a book value of ¥531 million, including ¥996 million in subsidiary investments and ¥465 million in impairment provisions[532] - The parent company's operating revenue was ¥185 million, with operating costs of ¥107 million[536] - The parent company's investment income was ¥4.48 million, primarily from trading financial assets[541] XX. Supplementary Information This section provides details on non-recurring items and return on equity, with a weighted average ROE of 4.47% Details of Non-recurring Profit and Loss for H1 2025 | Item | Amount (Yuan) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | -3,543.05 | | Government Grants Recognized in Current Profit/Loss (Excluding Continuous Impact) | 1,093,537.78 | | Fair Value Gains/Losses from Financial Assets/Liabilities Held by Non-financial Enterprises | -4,064,268.04 | | Gains/Losses from Entrusted Investments or Asset Management | 4,745,472.86 | | Other Non-operating Income and Expenses | -170,862.91 | | Less: Income Tax Impact | 821,705.27 | | Total | 778,631.37 | Return on Equity and Earnings Per Share for H1 2025 | Profit for the Period