华力创通(300045) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions This section provides crucial disclaimers, a detailed report directory, and definitions of key terms to ensure clarity and understanding for readers Important Notes The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report and its financial statements, advising investors to review risk factors - The company's Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content and assume legal responsibility[3] - The company's principal, chief financial officer, and head of accounting department declare the financial report is true, accurate, and complete[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4] Table of Contents This report's clear table of contents, divided into eight sections, covers important notes, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, and financial reports, facilitating investor review - The report's table of contents includes eight sections, from important notes to financial reports, presenting a complete structure[6] Definitions This section defines common terms, including company names, key subsidiaries, business areas like satellite navigation and integrated circuits, and technical standards, ensuring clear understanding of specialized terminology - "HWACREATE/The Company/Company" refers to Beijing Hwacreate Technology Co., Ltd[9] - "Satellite Navigation" is defined as using artificial satellite signals to determine one's geographical coordinates or direction[9] - "This Reporting Period" refers to January 1, 2025, to June 30, 2025[10] Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and a summary of key financial performance and indicators for the reporting period Company Profile The company's stock abbreviation is "Hwacreate," stock code 300045, listed on the Shenzhen Stock Exchange, with Gao Xiaoli as its legal representative 2025 Company Profile | Stock Abbreviation | Hwacreate | | :--- | :--- | | Stock Code | 300045 | | Stock Exchange | Shenzhen Stock Exchange | | Legal Representative | Gao Xiaoli | Contact Person and Information The company's Board Secretary is Song Long, located in Haidian District, Beijing, with contact number 010-82966393 and email songlong@hwacreate.com.cn Contact Information | | Board Secretary | | :--- | :--- | | Name | Song Long | | Contact Address | No. 18, Block B, No. 8 Courtyard, Dongbeiwang West Road, Haidian District, Beijing | | Phone | 010-82966393 | | Email | songlong@hwacreate.com.cn | Other Information During the reporting period, the company's registered address, office address, website, and email remained unchanged, and its operating period was adjusted to "perpetual existence as a joint-stock company" - The company's registered address, office address, website, and email remained unchanged during the reporting period[14] - The company's operating period was adjusted from "January 29, 2008, to January 28, 2028" to "a perpetually existing joint-stock company"[18] Key Accounting Data and Financial Indicators In the first half of 2025, operating revenue decreased by 9.56% to 332.30 million yuan, while net profit attributable to shareholders increased by 4.93% to 2.97 million yuan, and operating cash flow significantly decreased by 67.03% 2025 Key Accounting Data and Financial Indicators for H1 | Indicator | Current Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 332,302,349.20 | 367,417,067.82 | -9.56% | | Net Profit Attributable to Shareholders of Listed Company | 2,965,879.67 | 2,826,475.43 | 4.93% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 3,000,371.73 | 3,686,020.17 | -18.60% | | Net Cash Flow from Operating Activities | 25,620,271.57 | 77,703,065.32 | -67.03% | | Basic Earnings Per Share (yuan/share) | 0.0045 | 0.0043 | 4.65% | | Diluted Earnings Per Share (yuan/share) | 0.0045 | 0.0043 | 4.65% | | Weighted Average Return on Net Assets | 0.05% | 0.16% | -0.11% | | Indicator | End of Current Period (yuan) | End of Prior Year (yuan) | Change from Prior Year-End | | :--- | :--- | :--- | :--- | | Total Assets | 2,401,907,438.62 | 2,445,399,751.29 | -1.78% | | Net Assets Attributable to Shareholders of Listed Company | 1,599,462,178.31 | 1,596,498,927.61 | 0.19% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under international or overseas accounting standards and Chinese accounting standards - The company reported no differences in net profit and net assets between financial statements disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[20] - The company reported no differences in net profit and net assets between financial statements disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[21] Non-Recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to -34,492.06 yuan, primarily including disposal gains/losses of non-current assets, government subsidies, and fair value changes, with VAT refunds of 1.72 million yuan classified as recurring income 2025 Non-Recurring Gains and Losses for H1 | Item | Amount (yuan) | | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | -37,105.18 | | Government Subsidies Recognized in Current Profit or Loss (Excluding Those with Continuous Impact) | 313,236.53 | | Gains and Losses from Changes in Fair Value of Financial Assets and Liabilities Held by Non-Financial Enterprises and Disposal Gains and Losses | -265,244.87 | | Reversal of Impairment Provisions for Receivables Subject to Individual Impairment Testing | 13,653.08 | | Other Non-Operating Income and Expenses Apart from the Above | -157,511.61 | | Less: Income Tax Impact | -92,721.03 | | Impact on Minority Interests (After Tax) | -5,758.96 | | Total | -34,492.06 | - Value-added tax refunds of 1,722,918.23 yuan were classified as recurring tax refunds[24] Management Discussion and Analysis This section provides an in-depth analysis of the company's main businesses, core competencies, financial performance, investment activities, and risk factors, offering insights into its operational strategies and future outlook Main Businesses Engaged by the Company During the Reporting Period The company has cultivated a complete industry chain from "chips to solutions" in defense and industry informatization for over two decades, focusing on satellite applications, radar signal processing, simulation testing, and unmanned systems, with a dual-track operating model - The company is one of the first joint-stock enterprises in China to obtain defense industry access qualifications, having specialized in defense and industry informatization for over two decades[26] - The company has built a complete industry chain from "chips-modules-terminals-solutions-management platforms-testing instruments" across four core areas: satellite applications, radar signal processing, simulation testing, and unmanned systems[26] - The company implements a "dual-track operating model" of specialized customization and general industrialization, serving both defense and civilian markets[27] 1. Overview of Main Businesses As a qualified defense military enterprise, the company has established a complete industry chain in satellite applications, radar signal processing, simulation testing, and unmanned systems, providing advanced solutions for national defense and transferring technologies to civilian sectors - The company provides R&D support for systems such as precision-guided weapons, electronic countermeasures, and avionics in the defense sector[26] - The company applies advanced defense military technologies to civilian fields such as satellite big data, emergency management, and smart cities[26] 2. Main Operating Model The company adopts a "dual-track operating model" of specialized customization and general industrialization, offering personalized products for defense clients while developing mass-producible, standardized products for the civilian market, achieving synergistic development - The company's core customer base spans defense and civilian markets, forming an operating pattern of "traditional military products as a stable foundation, and civilian business as a growth driver"[27] - Project customization meets professional user needs and builds technological reserves, while industrialization creates mass-producible, replicable general-purpose products[27] 3. Industry Development Status The satellite application, simulation testing, radar signal processing, and defense military sectors are all experiencing rapid growth, driven by technological breakthroughs, expanding market demand, and sustained policy support and defense budget increases - Satellite applications are entering a golden age of rapid development, characterized by strong technological drivers, diverse application scenarios, and vast market potential[28][29] - China's computer simulation market size is expected to exceed 300 billion yuan by 2025[38] - China's defense budget maintains a long-term steady growth trend, further increasing to 1.78 trillion yuan in 2025, providing solid financial support for national defense and military modernization[42] 1. Satellite Application Field The satellite application sector is witnessing continuous technological breakthroughs and accelerated penetration into emerging areas like low-altitude economy and smart transportation, with the Beidou industry's output value reaching 575.8 billion yuan, driven by policy support and low-orbit satellite constellation construction China's Satellite Navigation and Location Services Industry Output Value in 2024 | Indicator | Amount (hundred million yuan) | Year-on-Year Growth | | :--- | :--- | :--- | | Total Output Value | 5,758 | 7.39% | | Core Industry Output Value | 1,699 | 5.46% | | Related Output Value | 4,059 | 8.21% | - The Beidou system continues to deepen its application in agriculture, transportation, electricity, and emergency management, with emerging fields like the low-altitude economy providing vast market space for industry growth[31] Global Satellite Communication Market Size | Year | Market Size (billion US dollars) | CAGR | | :--- | :--- | :--- | | 2023 | 58.13 | - | | 2024 | 63.42 | 9.1% | | 2028 (Estimated) | 92.28 | 9.8% (2024-2028) | - China's low-orbit satellite constellation construction is progressing smoothly, with the Qianfan constellation having 90 satellites in orbit, providing capabilities for global satellite internet commercial services[35] 2. Simulation Testing Simulation technology, a cutting-edge force in industry innovation, is widely applied across aerospace, automotive, and healthcare sectors, significantly reducing costs and shortening R&D cycles, with China's computer simulation market expected to exceed 300 billion yuan by 2025 - Simulation testing creates efficient and safe virtual scenarios for product development and performance verification, ensuring excellent product performance and high reliability[37] China's Computer Simulation Market Size | Year | Market Size (hundred million yuan) | Year-on-Year Growth | | :--- | :--- | :--- | | 2016 | 1,210 | - | | 2021 | 1,960 | 12.4% (Annual Average) | | 2022 | >2,200 | 12.3% | | 2025 (Estimated) | >3,000 | - | 3. Radar Signal Processing Field Radar signal processing, the core of modern radar equipment, supports target detection and anti-interference, with the global military radar market projected to reach 17.4 billion US dollars by 2025, and China's military radar market expected to reach 56.5 billion yuan, holding strategic significance - Radar signal processing is the core of radar equipment and the "smart brain" of radar systems, supporting target detection and anti-interference processing[39] Military Radar Market Size Forecast | Market | 2020 (billion US dollars/hundred million yuan) | 2025 (billion US dollars/hundred million yuan) | CAGR | | :--- | :--- | :--- | :--- | | Global Military Radar | 14.0 (billion US dollars) | 17.4 (billion US dollars) | 4.4% | | China's Military Radar | - | 56.5 (billion yuan) | 11% (2020-2025) | - Radar signal processing technology permeates various civilian fields such as weather monitoring, autonomous driving, and remote sensing, enhancing social productivity[40] 4. Defense Military Field Driven by complex international situations and national security needs, China continues to issue policies to accelerate weapon equipment modernization, with the defense budget steadily growing to 1.78 trillion yuan in 2025, providing solid financial backing for the military industry's development - Both the "14th Five-Year Plan" outline and the 20th National Congress report explicitly propose accelerating the modernization of weapon equipment and promoting equipment upgrades and intelligent development[42] China's National Defense Expenditure Budget | Year | Budget (trillion yuan) | Increase | | :--- | :--- | :--- | | 2023 | 1.55 | - | | 2024 | 1.67 | - | | 2025 | 1.78 | - | - The continuously growing defense budget provides vast development space for the military industry's demand release in technology R&D, equipment production, and system construction[43] Analysis of Core Competencies The company's core competencies include independent R&D capabilities for satellite application core chips, continuous innovation, deep cooperation for industrial closed-loop, diverse qualifications, and a robust talent development mechanism, supporting its leading position and sustainable growth - The company specializes in integrated satellite navigation and communication application technology, successfully launching multiple satellite communication and navigation baseband chips, mastering core technologies, and building a full-chain independent and controllable R&D system[44] - The company allocates approximately 30% of its operating revenue to technology R&D, with its R&D team comprising over 50% of total employees, and undertakes multiple national strategic scientific and technological tasks[45] - As of the end of the reporting period, the company had accumulated 364 authorized patents, 10 integrated circuit layout designs, 129 registered trademarks, and 511 software copyrights, establishing a multi-dimensional intellectual property protection system[46] - The company possesses complete defense military access qualifications, Beidou navigation civilian service qualifications, and Beidou civilian differential service trial qualifications, and has passed AS9100D:2016 aerospace quality management system certification and CTSOA airworthiness certification[49] - The company has established a closed-loop mechanism for "talent selection-attraction-development-retention," fostering an innovative and enterprising talent team through mentorship and innovation contribution incentives[50] Analysis of Main Business In the first half of 2025, operating revenue decreased by 9.56%, but net profit attributable to the parent company increased by 4.93%, driven by progress in satellite applications, simulation testing, radar signal processing, and unmanned systems, with significant growth in electromechanical simulation testing and simulation application integration businesses 2025 Key Financial Data for H1 | Indicator | Amount (ten thousand yuan) | Year-on-Year Change | | :--- | :--- | :--- | | Operating Revenue | 33,230.23 | -9.56% | | Net Profit Attributable to Shareholders of Listed Company | 296.59 | 4.93% | - The company has established an industry structure of "chip+module+terminal+platform+system solutions" in the satellite application field, with products widely used in emergency management, transportation, and defense equipment[52] - In the simulation testing field, the company promotes localization, digitalization, and intelligent transformation, expanding into new sectors like "civil aviation airworthiness + low-altitude economy"[55][56] - In the radar signal processing field, the company achieved technological breakthroughs in target drone jammers, AI intelligent modules, spaceborne boards, and modular radar testers, increasing the proportion of self-developed products[59] - In the unmanned systems field, the company continues to iterate and upgrade UAV products, successfully delivered special medium-speed target drone projects, plans mass production of medium-to-high-speed target drones in the second half of the year, and actively deploys in the low-altitude economy civilian market[60][61] Operating Revenue and Gross Profit Margin by Product or Service for H1 2025 | By Product or Service | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Profit Margin | Operating Revenue Year-on-Year Change | Operating Cost Year-on-Year Change | Gross Profit Margin Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Satellite Applications | 160,559,569.53 | 96,812,468.73 | 39.70% | -33.10% | -32.13% | -0.87% | | Radar Signal Processing | 35,566,380.87 | 18,800,926.99 | 47.14% | -26.67% | -27.96% | 0.95% | | Electromechanical Simulation Testing | 72,782,742.14 | 52,157,812.60 | 28.34% | 73.85% | 73.40% | 0.19% | | Simulation Application Integration | 39,906,396.30 | 31,911,186.77 | 20.03% | 147.27% | 143.71% | 1.16% | | Agency and Others | 19,176,533.07 | 17,272,034.47 | 9.93% | 73.92% | 67.63% | 3.38% | | Rail Transit Applications | 4,310,727.29 | 3,647,048.33 | 15.40% | -56.36% | -61.25% | 10.68% | Analysis of Non-Core Business During the reporting period, non-core business profit contribution primarily stemmed from investment income (23.07%), while fair value changes (-28.89%) and non-operating expenses (4.95%) had negative impacts, with investment income being sustainable Impact of Non-Core Business on Total Profit for H1 2025 | Item | Amount (yuan) | Proportion of Total Profit | Sustainability | | :--- | :--- | :--- | :--- | | Investment Income | 1,052,008.33 | 23.07% | Yes | | Gains and Losses from Changes in Fair Value | -1,317,253.21 | -28.89% | Yes | | Asset Impairment | 6,992.28 | 0.15% | No | | Non-Operating Income | 30,887.59 | 0.68% | No | | Non-Operating Expenses | 225,509.54 | 4.95% | No | Analysis of Assets and Liabilities As of the end of the reporting period, total assets were 2.40 billion yuan, a 1.78% decrease, with reductions in monetary funds, inventories, and contract liabilities, while accounts receivable, fixed assets, and right-of-use assets increased, and restricted monetary funds totaled 3.09 million yuan Changes in Asset and Liability Composition for H1 2025 | Item | End of Current Period (yuan) | Proportion of Total Assets | End of Prior Year (yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 209,458,068.83 | 8.72% | 246,042,337.64 | 10.06% | -1.34% | | Accounts Receivable | 395,616,696.87 | 16.47% | 386,543,305.85 | 15.81% | 0.66% | | Inventories | 565,775,568.20 | 23.56% | 603,527,413.57 | 24.68% | -1.12% | | Fixed Assets | 188,002,351.89 | 7.83% | 178,896,641.81 | 7.32% | 0.51% | | Contract Liabilities | 112,111,959.85 | 4.67% | 155,179,811.87 | 6.35% | -1.68% | | Lease Liabilities | 12,214,991.44 | 0.51% | 5,845,271.56 | 0.24% | 0.27% | - As of the end of the reporting period, the company's restricted monetary funds amounted to 3,088,600.00 yuan, primarily consisting of letter of guarantee deposits and frozen bank deposits[72] Analysis of Investment Status During the reporting period, total investment was 0 yuan, a 100% decrease year-on-year, with financial assets measured at fair value totaling 134 million yuan at period-end, primarily other equity instrument investments and other non-current financial assets, and 43.58 million yuan in unused raised funds Investment Amount During the Reporting Period | Indicator | Amount (yuan) | Change Rate | | :--- | :--- | :--- | | Investment Amount in Current Period | 0.00 | -100.00% | | Investment Amount in Prior Year Period | 1,470,000.00 | - | Fair Value of Financial Assets at Period-End | Asset Category | Amount at Period-End (yuan) | | :--- | :--- | | Other Equity Instrument Investments | 87,466,204.15 | | Other Non-Current Financial Assets | 46,832,425.15 | | Total | 134,298,629.30 | - As of June 30, 2025, the company's raised funds cumulatively invested 201.52 million yuan directly into fundraising projects, 83.89 million yuan supplemented working capital, and 43.58 million yuan remained unused[78] - The "Beidou Airborne Terminal and Ground Data System R&D and Industrialization Project" and "Beidou+5G Integrated Terminal Baseband Chip R&D and Industrialization Project" have been completed, with remaining raised funds totaling 43.58 million yuan permanently transferred to supplement working capital[81][82] - During the reporting period, the company's entrusted wealth management amounted to 93.88 million yuan, with no outstanding balance or overdue unrecovered amounts at period-end[85] Significant Asset and Equity Sales During the reporting period, the company did not engage in any significant asset sales or equity sales - The company did not sell any significant assets during the reporting period[87] - The company had no significant equity sales during the reporting period[88] Analysis of Major Holding and Participating Companies The company's major subsidiaries, including Hong Kong Yijiahang, Hwacreate Ruiyuan, and others, are involved in diverse businesses such as communication/electromagnetic simulation testing, integrated circuit manufacturing, and satellite mobile communication terminals, each impacting the company's net profit Overview of Major Subsidiary Financial Data | Company Name | Main Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hong Kong Yijiahang | Communication/electromagnetic simulation testing and complete solutions for UAVs and countermeasures | 50,000,000 | 45,941,982.78 | 42,358,738.56 | 15,470,488.59 | 6,087,185.84 | | Hwacreate Ruiyuan | Integrated circuit manufacturing, R&D and production of microwave/millimeter-wave components and related products | 3,900,000 | 62,225,304.95 | 35,683,614.49 | 13,842,973.31 | 568,462.81 | | Jiangsu Mingwei | R&D, manufacturing, and sales of rail transit safety doors, regenerative braking energy inversion absorption devices, etc | 50,000,000 | 125,189,089.84 | 97,911,586.91 | 4,310,727.29 | 446,402.65 | | Hwacreate Zhifei | Research on new avionics bus technology and product R&D | 30,000,000 | 159,965,620.31 | 22,570,653.75 | 50,860,435.26 | 652,418.81 | | Hwacreate Zhixin | R&D of satellite application basic chips and serialized module products | 200,000,000 | 227,439,405.98 | 12,957,972.91 | 7,383,412.04 | 2,145,140.32 | | Tianjin Xince | Battery manufacturing, electronic measuring instrument manufacturing, information system integration services, etc | 30,000,000 | 54,464,980.44 | 25,094,793.67 | 1,827,968.15 | 1,970,617.65 | | Shenzhen Chuangtong | R&D and application of ground terminal products in satellite applications (satellite communication, satellite navigation) | 10,000,000 | 41,821,136.81 | 795,532.22 | 10,593,904.85 | 3,917,482.46 | | Chengdu Chuangtong | R&D of Beidou high-precision positioning products, development of communication and navigation simulation testing technology, etc | 80,000,000 | 131,925,203.27 | 37,025,535.81 | 2,245,903.82 | 8,021,385.86 | Information on Structured Entities Controlled by the Company During the reporting period, the company did not control any structured entities - The company reported no controlled structured entities during the reporting period[94] Risks Faced by the Company and Countermeasures The company faces risks such as high customer concentration, potential R&D lags, and intense talent competition, which it addresses by consolidating core customer relationships, expanding civilian markets, dynamically adjusting R&D plans, and improving talent development and incentive mechanisms - The company's customers are primarily research institutions and military enterprises, leading to relatively high customer concentration, where order scale and structure are susceptible to factors like defense budget adjustments[94] - The company strengthens long-term cooperation with existing core customers and actively expands into civilian markets, forming a "military + civilian" cross-domain collaborative customer layout to reduce reliance on single-sector clients[94] - Lagging technology R&D or technological iteration may cause the company's products to lose market competitiveness, and R&D projects face risks such as high technical difficulty, long cycles, and cost overruns[95] - The company continuously tracks industry trends, establishes a sound full-process R&D management system, ensures dynamic matching of input and progress, optimizes resource allocation, and reduces R&D costs and cycles[96] - The company operates in a technology-intensive, rapidly innovating industry, where frequent talent turnover may slow down the pace of technology deployment in emerging fields[97] - The company has built a comprehensive talent development system, precisely recruits high-end technical talent, implements a "mentorship" training model, and establishes an innovation-contribution-oriented incentive mechanism to stabilize its excellent talent team[97] Registration Form for Investor Relations Activities During the Reporting Period On May 7, 2025, the company hosted an online exchange with all investors via the Value Online platform, primarily discussing its 2024 annual performance - On May 7, 2025, the company hosted an online exchange with all investors via the Value Online network platform, discussing its 2024 annual performance[98] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has formulated and approved the "Market Value Management System" on April 16, 2025, to regulate market value management and protect investor rights, but has not disclosed a valuation enhancement plan - The company has formulated the "Market Value Management System," which was approved at the ninth meeting of the sixth Board of Directors on April 16, 2025[100] - The company has not disclosed a valuation enhancement plan[99] Implementation of 'Dual Improvement in Quality and Returns' Action Plan The company did not disclose any announcement regarding the "Dual Improvement in Quality and Returns" action plan during the reporting period - The company did not disclose any announcement regarding the "Dual Improvement in Quality and Returns" action plan during the reporting period[101] Corporate Governance, Environment, and Society This section details changes in the company's directors, supervisors, and senior management, its profit distribution policy, employee incentive plans, environmental information disclosure, and social responsibility initiatives, including technological innovation, quality control, employee welfare, and green development Changes in Directors, Supervisors, and Senior Management During the reporting period, independent director Li Chunsheng resigned due to personal reasons, and supervisors Gao Hong, Yue Dongxue, Zhao Jialun, Ma Haixia, and He Shusheng resigned due to work transfers Changes in Directors, Supervisors, and Senior Management During the Reporting Period | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Li Chunsheng | Independent Director | Resignation | May 19, 2025 | Personal Reasons | | Gao Hong | Supervisor | Resignation | June 30, 2025 | Work Transfer | | Yue Dongxue | Supervisor | Resignation | June 30, 2025 | Work Transfer | | Zhao Jialun | Supervisor | Resignation | June 30, 2025 | Work Transfer | | Ma Haixia | Supervisor | Resignation | June 30, 2025 | Work Transfer | | He Shusheng | Supervisor | Resignation | June 30, 2025 | Work Transfer | Profit Distribution and Capital Reserve Conversion to Share Capital in Current Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[104] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[105] Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[106] Social Responsibility Status The company integrates social responsibility into its operations, actively implements national strategies, innovates in core technologies, ensures quality for stakeholders, prioritizes employee welfare, enhances corporate governance, protects shareholder rights, and promotes green development - The company actively responds to the national "14th Five-Year Plan" by intensifying core technology research in satellite applications, simulation testing, and radar signals, forming a cluster of core technologies with independent intellectual property rights[107] - The company has established a strict quality control system, earning customer recognition with high-quality products and efficient responses, and its subsidiary Hwacreate Zhixin passed the annual quality management surveillance audit[108] - The company has established a scientific and reasonable compensation and incentive system and diversified welfare programs, empowering employee growth through customized training and clear promotion channels[109][110] - The company will no longer have a Supervisory Board, with its functions exercised by the Board of Directors' Audit Committee, and has revised its Articles of Association to enhance corporate governance[111] - The company actively practices green development concepts, promoting paperless office, selecting energy-saving equipment and environmentally friendly materials, optimizing energy systems, and reducing energy consumption[112] Significant Matters This section covers various significant matters, including commitments, non-operating fund occupation, external guarantees, auditor appointments, litigation, penalties, integrity status, related party transactions, major contracts, and other important events, providing a comprehensive overview of key corporate developments Commitments During the reporting period, there were no commitments fulfilled or overdue unfulfilled by the company's controlling shareholder, shareholders, related parties, acquirers, or the company itself - During the reporting period, there were no commitments fulfilled or overdue unfulfilled by the company's actual controller, shareholders, related parties, acquirers, or the company itself[114] Non-Operating Occupation of Funds During the reporting period, there was no non-operating occupation of the listed company's funds by its controlling shareholder or other related parties - The company reported no non-operating occupation of funds by its controlling shareholder or other related parties during the reporting period[115] Illegal External Guarantees During the reporting period, the company had no illegal external guarantees - The company had no illegal external guarantees during the reporting period[116] Appointment and Dismissal of Accounting Firms The company's semi-annual report was not audited - The company's semi-annual report was not audited[117] Explanation by the Board of Directors, Supervisory Board, and Audit Committee on the Accounting Firm's 'Non-Standard Audit Report' for the Current Period During the reporting period, there was no explanation by the Board of Directors, Supervisory Board, or Audit Committee regarding a "non-standard audit report" from the accounting firm for the current period - The company reported no explanation by the Board of Directors, Supervisory Board, or Audit Committee regarding a "non-standard audit report" from the accounting firm for the current period[118] Explanation by the Board of Directors on Matters Related to the Prior Year's 'Non-Standard Audit Report' During the reporting period, there was no explanation by the Board of Directors regarding matters related to the prior year's "non-standard audit report" - The company reported no explanation by the Board of Directors regarding matters related to the prior year's "non-standard audit report"[118] Bankruptcy and Reorganization Matters During the reporting period, the company had no bankruptcy or reorganization matters - The company had no bankruptcy or reorganization matters during the reporting period[118] Litigation Matters During the reporting period, the company had no significant litigation or arbitration matters; other concluded lawsuits involved 221,000 yuan, and pending lawsuits involved 3.79 million yuan, none of which had a significant impact - The company had no significant litigation or arbitration matters during this reporting period[119] Overview of Other Litigation Matters | Basic Information on Litigation (Arbitration) | Amount Involved (ten thousand yuan) | Whether Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | | :--- | :--- | :--- | :--- | :--- | | Other Concluded Lawsuits Not Meeting Significant Litigation Disclosure Standards | 22.1 | No | Concluded | Concluded, no significant impact | | Other Pending Lawsuits Not Meeting Significant Litigation Disclosure Standards | 379 | No | Pending | Under review, no significant impact | Penalties and Rectification During the reporting period, the company had no penalties or rectification matters - The company reported no penalties or rectification matters during the reporting period[121] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the reporting period, the company, its controlling shareholder, and actual controller had no integrity issues - The company reported no integrity issues concerning itself, its controlling shareholder, or actual controller during the reporting period[121] Significant Related Party Transactions During the reporting period, the company engaged in ordinary related party transactions, including selling 61,000 yuan of satellite application products and purchasing 773,100 yuan of satellite application products, both at market prices, with no other significant related party transactions 2025 Ordinary Related Party Transactions for H1 | Related Party | Related Party Transaction Content | Related Party Transaction Price (yuan) | Proportion of Similar Transaction Amount | Approved Transaction Limit (ten thousand yuan) | | :--- | :--- | :--- | :--- | :--- | | Jiangsu Hwacreate Fangyuan Smart Technology Co., Ltd. | Sales of Goods, Provision of Services (Satellite Application Products) | 61,000.00 | 0.02% | 300 | | Shenzhen Huatian Xintong Technology Co., Ltd. | Purchase of Goods, Acceptance of Services (Satellite Application Products) | 773,100.00 | 0.34% | 800 | - The company reported no related party transactions involving asset or equity acquisitions or sales during the reporting period[123] - The company reported no related party creditor-debtor transactions during the reporting period[125] Significant Contracts and Their Performance During the reporting period, the company had no entrustment, contracting, or leasing matters; a 9.6 million yuan guarantee for subsidiary Jiangsu Mingwei Wansheng Technology Co., Ltd. was fulfilled, and a 48.73 million yuan chip product contract with a client was 100% performed and collected - The company reported no entrustment, contracting, or leasing situations during the reporting period[129][130][131] Company Guarantees for Subsidiaries | Name of Guaranteed Party | Guaranteed Amount (ten thousand yuan) | Guarantee Start Date | Guarantee End Date | Whether Guarantee Has Been Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Jiangsu Mingwei Wansheng Technology Co., Ltd. | 960 | April 16, 2024 | January 30, 2025 | Yes | Performance of Significant Contracts in Ordinary Operations | Contract Content | Total Contract Amount (ten thousand yuan) | Contract Performance Progress | Sales Revenue Recognized in Current Period (ten thousand yuan) | Cumulative Sales Revenue Recognized (ten thousand yuan) | Accounts Receivable Collection Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Chip Products (a certain client) | 4,873.17 | 100% | 348.12 | 4,873.17 | Collected | Explanation of Other Significant Matters Independent director Mr. Li Chunsheng passed away, and the company will promptly appoint a replacement; the company approved a 2025 private placement plan to raise up to 370 million yuan for projects including radiation-hardened modules, multi-mode satellite communication SOC chips, and global multi-mode navigation systems, as well as supplementing working capital - Independent director Mr. Li Chunsheng passed away due to illness, and the company will promptly appoint a new independent director[137] - The company approved the 2025 private placement plan for A-shares, intending to raise a total of no more than 370 million yuan[137] Proposed Investment Projects for Raised Funds | No. | Project Name | Amount of Raised Funds to be Used (ten thousand yuan) | | :--- | :--- | :--- | | 1 | R&D and Industrialization Project for Spaceborne Computing and Processing Equipment Based on Radiation-Hardened Modules | 11,300.00 | | 2 | R&D and Industrialization Project for Multi-Mode Satellite Communication SOC Chips | 9,000.00 | | 3 | Global Multi-Mode Navigation System Project | 11,200.00 | | 4 | Supplement Working Capital | 5,500.00 | | Total | | 37,000.00 | Significant Matters of Company Subsidiaries During the reporting period, the company's subsidiaries had no significant matters - The company reported no significant matters concerning its subsidiaries during the reporting period[140] Share Changes and Shareholder Information This section details the company's share capital structure, including changes in restricted and unrestricted shares, securities issuance, shareholder numbers, top shareholders' holdings, and changes in director, supervisor, and senior management shareholdings, as well as any changes in controlling shareholder or actual controller Share Change Status During the reporting period, the company's total share capital remained unchanged at 662,675,236 shares, with no changes in the number or proportion of restricted and unrestricted shares Share Change Status | Share Type | Number Before Change (shares) | Proportion Before Change | Increase/Decrease in Current Change (shares) | Number After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 146,362,060 | 22.09% | 0 | 146,362,060 | 22.09% | | II. Unrestricted Shares | 516,313,176 | 77.91% | 0 | 516,313,176 | 77.91% | | III. Total Shares | 662,675,236 | 100.00% | 0 | 662,675,236 | 100.00% | - During the reporting period, the reasons for share changes, approval status, transfer status, and progress of share repurchase implementation were all not applicable[144] Securities Issuance and Listing Status During the reporting period, the company had no securities issuance or listing activities - The company reported no securities issuance or listing activities during the reporting period[144] Number of Shareholders and Shareholding Status As of the end of the reporting period, the company had 90,081 common shareholders; among the top ten, Gao Xiaoli held 16.43% as the largest shareholder, and Wang Qi held 12.90%, with Wang Qi having previously agreed to waive part of her voting rights - The total number of common shareholders at the end of the reporting period was 90,081 households[145] Top 10 Shareholders' Shareholding Status | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at Period-End (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Gao Xiaoli | Domestic Natural Person | 16.43% | 108,866,400.00 | 81,649,800.00 | 27,216,600.00 | | Wang Qi | Domestic Natural Person | 12.90% | 85,498,664.00 | 64,123,998.00 | 21,374,666.00 | | Xiong Yunhong | Domestic Natural Person | 4.36% | 28,889,315.00 | 0.00 | 28,889,315.00 | - Gao Xiaoli, Wang Qi, and Xiong Yunhong were originally parties acting in concert; their agreement was terminated in 2024, making Gao Xiaoli the single largest voting rights shareholder[147] - Wang Qi committed to waive the voting rights corresponding to 1.4737% of the company's shares she holds, effective from the date of termination of the "Concerted Action Agreement"[147] Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, Vice Chairman and General Manager Wang Wei's shareholding decreased by 168,000 shares, with his period-end holding at 505,500 shares Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Number of Shares Held at Beginning of Period (shares) | Number of Shares Reduced in Current Period (shares) | Number of Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Wei | Vice Chairman and General Manager | Current | 673,500 | 168,000 | 505,500 | Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder did not change during the reporting period[149] - The company's actual controller did not change during the reporting period[149] Preferred Share Information During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[150] Bond Information During the reporting period, the company had no bond-related matters - The company reported no bond-related matters during the reporting period[152] Financial Report This section presents the company's unaudited semi-annual financial statements, including consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, tax items, and financial statement items Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[154] Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, showing total assets of 2.40 billion yuan, total liabilities of 792 million yuan, and net profit of 2.93 million yuan Key Consolidated Balance Sheet Data (June 30, 2025) | Item | Balance at Period-End (yuan) | Balance at Beginning of Period (yuan) | | :--- | :--- | :--- | | Total Assets | 2,401,907,438.62 | 2,445,399,751.29 | | Total Liabilities | 792,370,792.28 | 838,789,492.11 | | Total Equity Attributable to Parent Company Owners | 1,599,462,178.31 | 1,596,498,927.61 | Key Consolidated Income Statement Data (H1 2025) | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 332,302,349.20 | 367,417,067.82 | | Operating Profit | 4,754,947.35 | 3,133,634.34 | | Total Profit | 4,560,325.40 | 3,056,734.66 | | Net Profit | 2,929,016.13 | 2,695,081.63 | | Net Profit Attributable to Parent Company Shareholders | 2,965,879.67 | 2,826,475.43 | | Basic Earnings Per Share | 0.0045 | 0.0043 | Key Consolidated Cash Flow Statement Data (H1 2025) | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 25,620,271.57 | 77,703,065.32 | | Net Cash Flow from Investing Activities | -55,351,698.23 | -54,215,917.62 | | Net Cash Flow from Financing Activities | -6,290,671.05 | -30,163,017.89 | | Net Increase in Cash and Cash Equivalents | -36,077,687.87 | -6,586,851.29 | Company Basic Information Beijing Hwacreate Technology Co., Ltd. was reorganized into a joint-stock company in 2008 and listed in 2010, with a current total share capital of 662,675,236 shares, Gao Xiaoli as legal representative, and a broad business scope, with its consolidated financial statements covering 13 subsidiaries and 4 sub-subsidiaries - The company was listed on the Shenzhen Stock Exchange on January 7, 2010, publicly issuing 17 million RMB common shares[185] - The company's total share capital is 662.675236 million RMB shares[186] - The company's licensed business scope includes R&D and contract manufacturing of satellite navigation and mobile communication equipment, instruments, fiber optic channel equipment, infrared thermal imaging instruments, optical equipment, optoelectronic devices, and electronic products[187] - The scope of consolidated financial statements includes the company and all 13 subsidiaries and 4 sub-subsidiaries[189] Basis of Financial Statement Preparation These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises and relevant regulations, following the China Securities Regulatory Commission's disclosure rules, presented on a going concern basis, using the accrual basis of accounting, and measured at historical cost - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises, their application guidelines, interpretations, and other relevant regulations issued by the Ministry of Finance[191] - These financial statements are presented on a going concern basis, and accounting is based on the accrual method[191][192] Significant Accounting Policies and Accounting Estimates This section details the company's adherence to accounting standards, accounting period, operating cycle, functional currency, materiality, business combinations, consolidated financial statements, cash equivalents, foreign currency transactions, financial instruments, receivables, inventories, long-term equity investments, fixed assets, construction in progress, borrowing costs, intangible assets, long-term asset impairment, long-term deferred expenses, contract liabilities, employee benefits, provisions, share-based payments, revenue, contract costs, government grants, deferred income tax, and leases, with no significant changes during the reporting period - The company's accounting period adopts the calendar year, with an operating cycle of 12 months, and uses RMB as its functional currency[197][198][199] - At initial recognition, the company classifies financial assets into three categories based on the business model for managing financial assets and the contractual cash flow characteristics: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[211] - The company performs impairment accounting and recognizes loss provisions for items such as notes receivable, accounts receivable, and contract assets based on expected credit losses[229] - The company recognizes revenue when it satisfies a performance obligation in a contract, i.e., when the customer obtains control of the related goods or services[293] - The company had no significant changes in accounting policies or significant changes in accounting estimates during the reporting period[194][195] Taxation The company's main taxes include VAT (6%, 9%, 13%), urban maintenance and construction tax (5%, 7%), and corporate income tax (25%), with the company and several subsidiaries enjoying a 15% preferential corporate income tax rate as high-tech enterprises, and also benefiting from VAT refunds for software products and small-profit enterprise income tax concessions for some subsidiaries Main Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 6%、9%、13% | | Urban Maintenance and Construction Tax | 5%、7% | | Corporate Income Tax | 25% | | Education Surcharge | 5% | - The company and several subsidiaries (e.g., Jiangsu Mingwei, Tianjin Xince, Hwacreate Ruiyuan, Beijing Yijiahang, Chengdu Chuangtong, Hwacreate Tianxing, Hwacreate Zhifei, Shenzhen Chuangtong, Yunnan Chuangtong, Hwacreate Zhixin) enjoy a 15% preferential corporate income tax rate as high-tech enterprises[318][320][321] - For self-developed and produced software products, the company receives immediate VAT refunds for the portion exceeding an actual tax burden of 3%[318] - Tianjin Hengda, Chengdu Jiashengtong, Yunnan Guanbai, and Xi'an Hwacreate are small-profit enterprises, eligible for a preferential corporate income tax policy where taxable income is calculated at 25% and tax is paid at a 20% rate[324] Notes to Consolidated Financial Statement Items This section provides detailed notes on consolidated financial statement items, including period-end and period-beginning balances and changes for monetary funds, receivables, inventories, fixed assets, intangible assets, goodwill, deferred income tax assets/liabilities, short-term borrowings, payables, contract liabilities, employee compensation, taxes payable, deferred income, share capital, capital reserves, retained earnings, operating revenue and costs, and various expenses and incomes, with specific details on accounts receivable impairment and goodwill impairment Monetary Funds Balance at Period-End | Item | Balance at Period-End (yuan) | | :--- | :--- | | Cash on Hand | 117,189.44 | | Bank Deposits | 206,252,279.39 | | Other Monetary Funds | 3,088,600.00 | | Total | 209,458,068.83 | | Of which: Total Funds Deposited Overseas | 55,296,079.13 | Accounts Receivable Balance and Impairment Provision at Period-End | Category | Book Balance (yuan) | Impairment Provision (yuan) | Book Value (yuan) | | :--- | :--- | :--- | :--- | | Impairment Provision Accrued Individually | 8,824,322.70 | 8,824,322.70 | 0 | | Impairment Provision Accrued by Portfolio | 526,195,502.47 | 130,578,805.60 | 395,616,696.87 | | Total | 535,019,825.17 | 139,403,128.30 | 395,616,696.87 | Inventory Classification and Impairment Provision Balance at Period-End | Item | Book Balance (yuan) | Inventory Impairment Provision or Contract Performance Cost Impairment Provision (yuan) | Book Value (yuan) | | :--- | :--- | :--- | :--- | | Raw Materials | 205,673,446.39 | 6,901,467.73 | 198,771,978.66 | | Work in Progress | 332,446,048.52 | 0 | 332,446,048.52 | | Finished Goods | 25,996,388.92 | 140,784.21 | 25,855,604.71 | | Contract Performance Costs | 8,701,936.31 | 0 | 8,701,936.31 | | Total | 572,817,820.14 | 7,042,251.94 | 565,775,568.20 | Goodwill Original Book Value and Impairment Provision Balance at Period-End | Name of Investee or Event Leading to Goodwill | Balance at Period-End (yuan) | Impairment Provision Balance at Period-End (yuan) | | :--- | :--- | :--- | | Hwacreate Ruiyuan | 2,620,878.26 | 0 | |