华盛昌(002980) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions This section provides essential disclaimers, lists reference documents, and defines key terms used throughout the report Important Notes The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false statements, misleading representations, or major omissions, and assume individual and joint legal responsibility[3] - Company principal Yuan Jianmin, head of accounting Liu Haiqin, and head of accounting department Chen Lijuan declare that the financial report in this semi-annual 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] Catalogue of Reference Documents This section lists the company's semi-annual report reference documents, including signed financial statements and publicly disclosed company files - Reference documents include financial statements signed and sealed by the company principal, head of accounting, and head of accounting department[8] - Reference documents include originals of all company files and announcements publicly disclosed on the CSRC-designated website during the reporting period[8] - Reference documents include the signed and sealed 2025 semi-annual report summary and full text by the company's legal representative[8] Definitions This section defines common terms and company entities for the reporting period, from January 1 to June 30, 2025 - The reporting period refers to January 1, 2025, to June 30, 2025[9] - Huashengchang, the Company, or this Company refers to Shenzhen Everbest Machinery Industry Co., Ltd[9] - Lists the company's main subsidiaries and partnerships, including Huaju Enterprise, Huahang Enterprise, Zhiyi Investment, Huazhihui, Beijing Xinxiang, Shanghai Kaiyu, Bazhong Zhuochuang, Huizhou Huashengchang, Huashengchang Software, Xi'an Haige, Shanghai Huashengchang, Huashengchang Biomedical, Shendu Gancce, Shenjing Zhinen, Huashengchang New Energy, Jiangxi Huashengchang, Hong Kong Huashengchang, Russia Huashengchang, Germany Huashengchang, Chuangte Technology Co., Ltd., Vietnam Huashengchang, and Uzbekistan Huashengchang[9] Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and key financial performance metrics for the reporting period Company Profile This section provides the company's basic information, including stock ticker, code, exchange, names, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Huashengchang | | Stock Code | 002980 | | Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | Shenzhen Everbest Machinery Industry Co., Ltd. | | Foreign Name | Shenzhen Everbest Machinery Industry Co., Ltd. | | Legal Representative | Yuan Jianmin | Contact Persons and Contact Information This section provides contact information for the company's Board Secretary and Securities Affairs Representative Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Ji Hong | Building 19, Block 5, Baiwangxin Industrial Park, Songbai Road, Baimang, Xili, Nanshan District, Shenzhen | 0755-27353188 | 0755-27652253 | jihong@cem-instruments.com | | Securities Affairs Representative | Chen Biying | Building 19, Block 5, Baiwangxin Industrial Park, Songbai Road, Baimang, Xili, Nanshan District, Shenzhen | 0755-27353188 | 0755-27652253 | chenbiying@cem-instruments.com | Other Information This section states that the company's contact information, disclosure, and document storage locations remained unchanged during the reporting period - The company's registered address, office address, postal code, website, and email address remained unchanged during the reporting period, as detailed in the 2024 annual report[13] - The securities exchange website and media names/URLs for the company's semi-annual report disclosure, and the report's storage location, remained unchanged during the reporting period, as detailed in the 2024 annual report[14] Key Accounting Data and Financial Indicators This section presents the company's key accounting data and financial indicators for H1 2025, showing revenue growth but a significant decline in net profit attributable to shareholders Key Accounting Data and Financial Indicators (Current Period vs. Prior Year) | Indicator | Current Period (CNY) | Prior Year (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 349,399,360.85 | 333,050,691.77 | 4.91% | | Net Profit Attributable to Shareholders of Listed Company | 43,473,946.64 | 64,196,502.47 | -32.28% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | 41,218,087.74 | 59,927,469.34 | -31.22% | | Net Cash Flow from Operating Activities | 74,890,850.46 | 83,197,996.78 | -9.98% | | Basic Earnings Per Share (CNY/share) | 0.23 | 0.47 | -51.06% | | Diluted Earnings Per Share (CNY/share) | 0.23 | 0.47 | -51.06% | | Weighted Average Return on Net Assets | 3.89% | 5.97% | -2.08% | Key Accounting Data and Financial Indicators (Current Period End vs. Prior Year End) | Indicator | Current Period End (CNY) | Prior Year End (CNY) | Change from Prior Year End | | :--- | :--- | :--- | :--- | | Total Assets | 1,436,424,433.86 | 1,521,375,238.03 | -5.58% | | Net Assets Attributable to Shareholders of Listed Company | 1,057,748,477.92 | 1,094,647,789.16 | -3.37% | - Net profit after deducting the impact of share-based payments was CNY 60,517,093.21[16] Differences in Accounting Data under Domestic and International Accounting Standards This section states no differences exist in net profit and net assets between financial reports disclosed under international/overseas accounting standards and Chinese accounting standards - During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[17] - During the reporting period, there were no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards[18] Non-recurring Gains and Losses and Amounts This section details non-recurring gains and losses for the period, totaling CNY 2.26 million, primarily from government subsidies and financial asset fair value changes Non-recurring Gains and Losses and Amounts | Item | Amount (CNY) | Explanation | | :--- | :--- | :--- | | Government subsidies recognized in current profit/loss (excluding recurring ones) | 586,829.25 | Mainly various government subsidies received | | Fair value changes and investment income from transactional financial assets | 1,884,210.01 | Fair value changes and investment income from transactional financial assets | | Other non-operating income and expenses apart from the above | 200,653.69 | | | Less: Income tax impact | 405,231.98 | | | Impact on minority interests (after tax) | 10,602.07 | | | Total | 2,255,858.90 | | Items Defined as Recurring Gains and Losses | Item | Amount Involved (CNY) | Reason | | :--- | :--- | :--- | | Other income | 405,871.02 | Government subsidies with a continuous impact on company profit/loss | | Other income | 88,354.90 | VAT software tax refund | | Other income | 11,848.12 | Additional VAT input tax deduction | | Total | 506,074.04 | | Management Discussion and Analysis This section provides a comprehensive review of the company's operations, financial performance, and strategic initiatives during the reporting period Main Business Activities of the Company During the Reporting Period The company focuses on R&D, production, and sales of measurement and testing instruments, actively responding to trade policy changes, investing in overseas production, and innovating with AI in various product lines Industry Development Overview The instrument and meter manufacturing industry is rapidly intelligentizing, with China's manufacturing sector globalizing due to US-China tariffs, and domestic high-end instrument demand growing at a 10.11% CAGR (2023-2030) - In H1 2025, the US imposed multiple rounds of tariffs on Chinese exporters, reaching up to 145%, resulting in a 27.8% decrease in China's exports to the US in April-May 2025 compared to the prior year[24] - Domestic demand for high-end instruments and meters continues to grow, with R&D investment accounting for 2.68% of GDP in 2024, and the high-end instrument market is projected to grow at a CAGR of 10.11% from 2023-2030, reaching CNY 352.9 billion by 2030[25] - Policies are driving the substitution of imported high-end instruments with domestic ones, with government procurement of domestic equipment increasing to over 50% by 2025 and offering a 20% price deduction, while special R&D investment from the Ministry of Science and Technology has increased by 150% compared to the "13th Five-Year Plan" period[26] Company's Main Business The company expanded its Vietnam production to mitigate tariff risks, launched new products in power quality, solar, ultrasonic thickness, and AI arc detection, and advanced in smart home health, new energy, biomedical, and AI sensing - To mitigate US-China tariff fluctuation risks, the company increased investment in its Vietnam production base, introducing automation, enhancing employee training, and implementing advanced management systems, leading to monthly capacity increases and large-scale product delivery[27][28] - Launched a comprehensive power quality detection solution covering "monitoring-analysis-governance-verification," centered on the DT-7760 high-end power quality analyzer and AI-7760 intelligent power quality analyzer, empowering new power systems[32][33] - Recently released the DT-1500PV multi-function photovoltaic I-V curve tester, integrating I-V curve measurement analysis with power station safety regulation testing to enhance PV plant operation and safety efficiency[35] - Introduced the DT-1580 handheld professional ultrasonic thickness gauge, with a thickness range of 0.08 mm to 635 mm, suitable for corrosion monitoring, manufacturing quality inspection, and equipment maintenance[37] - Released a new generation of edge AI arc detection products, including AFD-80, AFD-74, AFD-60, AFG-1000, featuring CNN deep learning algorithms with over 99% fault detection accuracy, redefining safety standards for solar charging and storage[39] - Achieved breakthroughs in smart home medical devices, adding HarmonyOS ecosystem 4G blood pressure monitors (BP-108H, BP-106A) and the HX-660 bi-level ventilator, optimizing product performance with AI large models[41] - Subsidiary Jiangxi Huashengchang New Energy Technology Co., Ltd. completed its production base construction, establishing a 2 GW annual production capacity for energy storage products, including industrial/commercial storage, home storage, and DC/AC charging piles[67][69] - Shenzhen Everbest Biomedical Technology Co., Ltd. expanded into IVD in-vitro diagnostics, building two core technology platforms: molecular diagnostics and immunochromatography, with a product matrix covering fully automatic integrated analyzers, real-time fluorescence quantitative PCR analyzers, gold standard AI visual interpretation instruments, and home medical devices[73][74] - Wholly-owned subsidiary Shenzhen Shendu Gancce Technology Co., Ltd. focuses on "AI+sensor" integrated equipment and industrial measurement solutions, co-established the Hunan Provincial Key Laboratory of Energy Artificial Intelligence, and formed a controlling subsidiary focused on AI glasses[75][76] Analysis of Main Business In H1 2025, operating revenue grew 4.91% to CNY 349.40 million, with net profit (excluding share-based payments) stable, and core high-end product segments growing 13.85% to 58.00% of revenue Key Financial Data for Main Business (Jan-Jun 2025) | Indicator | Amount (CNY million) | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 349.40 | 4.91% | | Net Profit after Share-based Payment Impact | 60.52 | Basically flat | | R&D Expenses | 41.00 | 18.73% | Core Product Segment Revenue and Proportion | Product Segment | Sales Revenue (CNY million) | YoY Growth | Revenue Proportion | | :--- | :--- | :--- | :--- | | Professional Instruments | 157.56 | 12.11% | 45.09% | | Professional Testing Instruments | 40.72 | 16.42% | 11.65% | | Medical Diagnostic Equipment | 4.36 | 76.68% | 1.25% | | Total for Three Segments | 202.64 | 13.85% | 58.00% | - The company's electrical power products successfully entered domestic power generation-side central state-owned enterprise procurement platforms, gaining authoritative recognition from the national power system[85] - The 4G blood pressure monitor, as the world's first HarmonyOS ecosystem blood pressure monitor, successfully entered operator channels, and the HX-660 bi-level ventilator achieved large-scale sales[86] - To counter escalating US-China trade war tariffs, the company increased investment in its Vietnam production base, achieving large-volume shipments in July 2025, significantly enhancing its trade competitiveness with the US[88] - In 2024, the company launched a restricted stock incentive plan and an employee stock ownership plan, granting 1.904 million restricted shares to 155 individuals and 1.3 million employee shares to 59 individuals, with CNY 17.0431 million in share-based payment expenses recognized this period[89] Analysis of Core Competencies The company's core competencies include AI-driven product upgrades, a multidisciplinary talent pool, continuous technological advancements, comprehensive technical platforms, a strategic shift to high-end instruments, reliable product quality, and a robust global multi-brand distribution network - The company established a dedicated AI technology department, deeply integrating vertical domain large model technology, AI computing chips, and industry knowledge graphs to create intelligent detection equipment, fostering new quality productive forces[90] - Possesses a high-caliber, interdisciplinary R&D talent team with an average of over 10 years of industry experience, with R&D investment accounting for 11.73% of revenue in H1 2025[91] - Continuously achieves breakthroughs in the four core dimensions of "accuracy, reliability, adaptability, and intelligence," building full-chain technological barriers across R&D, manufacturing, and application[92] - Has established five major technology platforms: power electronics, infrared thermal imaging and temperature measurement, environmental detection, non-destructive testing, and life sciences, making it one of the domestic instrument and meter companies with the most comprehensive measurement technology platforms[93] - Comprehensive product portfolio covering general instruments, professional instruments, scientific analysis instruments, and life science instruments, gradually advancing into the high-end instrument and meter sector[94] - Strengthens its global sales network through long-term cooperation with overseas clients, achieving international market coverage across all product lines, and actively cultivating its own brands, "Huashengchang" and "CEM"[96][97] Analysis of Main Business This section analyzes the company's main business financial performance, noting a 4.91% increase in operating revenue, an 8.70% rise in operating costs, and a 67.85% surge in administrative expenses, while international business revenue grew 8.10% and medical diagnostic instruments saw 76.68% growth Key Financial Data Year-over-Year Changes | Indicator | Current Period (CNY) | Prior Year (CNY) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 349,399,360.85 | 333,050,691.77 | 4.91% | | | Operating Cost | 197,670,081.09 | 181,845,762.62 | 8.70% | | | Selling Expenses | 33,362,658.85 | 30,533,368.44 | 9.27% | | | Administrative Expenses | 32,116,031.81 | 19,133,879.36 | 67.85% | Mainly due to increased share-based payments and human resource investment during the reporting period | | Financial Expenses | -5,059,129.17 | -5,338,266.70 | 5.23% | | | Income Tax Expense | 3,433,897.81 | 5,917,573.55 | -41.97% | Mainly due to a decrease in total profit during the reporting period | | R&D Investment | 40,999,558.41 | 34,532,477.49 | 18.73% | | | Net Cash Flow from Operating Activities | 74,890,850.46 | 83,197,996.78 | -9.98% | | | Net Cash Flow from Investing Activities | 27,194,214.31 | 33,753,970.04 | -19.43% | | | Net Cash Flow from Financing Activities | -127,792,915.06 | -175,196,223.91 | 27.06% | Mainly due to a decrease in cash outflow from financing activities during the reporting period | | Net Increase in Cash and Cash Equivalents | -20,797,965.60 | -57,850,270.68 | 64.05% | Mainly due to a decrease in cash outflow from financing activities during the reporting period | Operating Revenue Composition (by Product) | Product Category | Current Period Amount (CNY) | Proportion of Operating Revenue | Prior Year Amount (CNY) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Professional Instruments | 157,559,444.76 | 45.09% | 140,540,029.99 | 42.20% | 12.11% | | General Instruments | 131,898,004.80 | 37.75% | 132,386,569.92 | 39.75% | -0.37% | | Professional Testing and Scientific Analysis Instruments | 40,715,842.39 | 11.65% | 34,972,286.52 | 10.50% | 16.42% | | Medical Diagnostic and Life Science Analysis Instruments | 4,364,661.45 | 1.25% | 2,470,325.16 | 0.74% | 76.68% | | New Energy Products | 9,017,688.01 | 2.58% | 11,891,389.17 | 3.57% | -24.17% | | Other Businesses | 5,843,719.44 | 1.67% | 10,790,091.01 | 3.24% | -45.84% | Operating Revenue Composition (by Region) | Region | Current Period Amount (CNY) | Proportion of Operating Revenue | Prior Year Amount (CNY) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic | 26,629,695.11 | 7.62% | 29,068,972.39 | 8.73% | -8.39% | | International | 316,925,946.30 | 90.71% | 293,191,628.37 | 88.03% | 8.10% | | Other Businesses | 5,843,719.44 | 1.67% | 10,790,091.01 | 3.24% | -45.84% | Gross Profit Margin Changes for Main Business | Category | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | | Main Business | 6.61% | 9.72% | -1.61% | | Professional Instruments | 12.11% | 17.51% | -2.44% | | General Instruments | -0.37% | 3.02% | -2.07% | | Professional Testing and Scientific Analysis Instruments | 16.42% | 17.41% | -0.42% | | International Business | 8.10% | 12.14% | -2.07% | Analysis of Non-Main Business This section analyzes the impact of non-main business activities on total profit, noting positive contributions from investment and fair value changes, but negative impacts from asset and credit impairment losses, with asset impairment being the largest at -13.72% Impact of Non-Main Business on Total Profit | Item | Amount (CNY) | Proportion of Total Profit | Reason for Formation | Is it Sustainable | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 733,204.74 | 1.57% | Investment income from disposal of transactional financial assets | No | | Fair Value Change Gains/Losses | 1,151,005.27 | 2.47% | Fair value change gains from transactional financial assets | No | | Asset Impairment | -6,388,386.26 | -13.72% | Provision for inventory impairment based on "Enterprise Accounting Standards" and company accounting policies | No | | Non-operating Income | 249,135.60 | 0.53% | | No | | Non-operating Expenses | 48,481.91 | 0.10% | | No | | Other Income | 1,092,903.29 | 2.35% | Mainly government subsidies | Individual income tax refunds and immediate VAT refunds are sustainable, other government subsidies are not | | Credit Impairment Losses | 2,523,001.65 | 5.42% | Provision for bad debts on receivables based on "Enterprise Accounting Standards" and company accounting policies | No | Analysis of Assets and Liabilities This section analyzes the company's asset and liability structure and changes, showing a decrease in total assets and net assets attributable to shareholders, with a 4.28% increase in share capital due to capital reserve conversion Significant Changes in Asset Composition | Item | Current Period End Amount (CNY) | Proportion of Total Assets | Prior Year End Amount (CNY) | Proportion of Total Assets | Proportion Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 216,591,605.92 | 15.08% | 237,395,625.09 | 15.60% | -0.52% | | | Accounts Receivable | 145,129,469.45 | 10.10% | 198,843,321.04 | 13.07% | -2.97% | | | Inventories | 293,850,036.97 | 20.46% | 285,879,691.52 | 18.79% | 1.67% | | | Long-term Equity Investments | 9,000,000.00 | 0.63% | | | 0.63% | Due to increased equity investments during the reporting period | | Fixed Assets | 89,216,010.03 | 6.21% | 89,184,860.59 | 5.86% | 0.35% | | | Construction in Progress | 286,947,018.86 | 19.98% | 281,675,843.65 | 18.51% | 1.47% | | | Right-of-use Assets | 39,878,355.22 | 2.78% | 32,329,264.39 | 2.13% | 0.65% | | | Short-term Borrowings | 28,947,951.84 | 2.02% | 32,724,696.19 | 2.15% | -0.13% | | | Contract Liabilities | 7,741,223.76 | 0.54% | 8,905,668.76 | 0.59% | -0.05% | | | Long-term Borrowings | 26,446,198.72 | 1.84% | 17,393,493.74 | 1.14% | 0.70% | Due to increased borrowings during the reporting period | | Lease Liabilities | 26,542,514.87 | 1.85% | 21,563,047.39 | 1.42% | 0.43% | | | Prepayments | 28,805,809.08 | 2.01% | 16,529,253.85 | 1.09% | 0.92% | Due to increased material purchases and project prepayments during the reporting period | | Other Non-current Assets | 5,237,724.95 | 0.36% | 3,672,645.65 | 0.24% | 0.12% | Due to increased prepayments for equipment during the reporting period | | Employee Benefits Payable | 14,564,822.21 | 1.01% | 28,875,328.87 | 1.90% | -0.89% | Due to bonus payments during the reporting period | | Non-current Liabilities Due Within One Year | 23,036,656.92 | 1.60% | 13,494,677.53 | 0.89% | 0.71% | Due to increased lease liabilities during the reporting period | | Deferred Income | 2,121,660.40 | 0.15% | 1,039,300.34 | 0.07% | 0.08% | Due to government subsidies related to assets received during the reporting period | | Share Capital | 189,141,160.00 | 13.17% | 135,237,400.00 | 8.89% | 4.28% | Due to conversion of capital reserves into share capital during the reporting period | | Other Comprehensive Income | -1,594,898.47 | -0.11% | -7,730,535.53 | -0.51% | 0.40% | Due to foreign currency translation differences arising from exchange rate fluctuations during the reporting period | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (CNY) | Fair Value Change Gains/Losses for the Period (CNY) | Amount Purchased This Period (CNY) | Amount Sold This Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Transactional Financial Assets | 228,885,280.59 | 1,151,005.27 | 555,000,000.00 | 616,930,350.68 | 168,105,935.18 | | Total | 228,885,280.59 | 1,151,005.27 | 555,000,000.00 | 616,930,350.68 | 168,105,935.18 | Analysis of Investment Status This section summarizes the company's investment activities, with total investments of CNY 590.60 million, a 5.58% YoY decrease, and a 83.26% utilization rate for raised funds, with some projects delayed or terminated Investment Amount During the Reporting Period | Indicator | Amount (CNY) | Change Rate | | :--- | :--- | :--- | | Investment Amount During the Reporting Period | 590,597,719.84 | -5.58% | | Investment Amount in Prior Year | 625,523,782.57 | | Securities Investment Status | Security Code | Security Abbreviation | Initial Investment Cost (CNY) | Beginning Book Value (CNY) | Fair Value Change Gains/Losses for the Period (CNY) | Ending Book Value (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | 002157 | Zhengbang Technology | 692,010.84 | 753,981.96 | -49,060.47 | 704,921.49 | | Total | | 692,010.84 | 753,981.96 | -49,060.47 | 704,921.49 | Overall Utilization of Raised Funds | Fundraising Year | Total Raised Funds (CNY million) | Net Raised Funds (CNY million) | Total Raised Funds Used Cumulatively (CNY million) | Utilization Rate of Raised Funds at Period End | Total Raised Funds with Changed Use Cumulatively (CNY million) | Total Unused Raised Funds (CNY million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2020 | 496.33 | 454.27 | 378.21 | 83.26% | 196.73 | 76.06 | - The "Huashengchang Instrument and Meter Bazhong Production Base Construction Project" was delayed until December 31, 2022, due to objective reasons, and cumulative benefits have not yet met expectations[123] - The "Headquarters and R&D Center Construction Project" was delayed until June 30, 2027, due to high prices and limited availability of suitable office space[123] - The "Domestic Operations and Marketing Network Construction Project" has been terminated, with remaining raised funds reallocated to the "Huashengchang Intelligent Sensing Measurement Instrument R&D and Production Project"[123] - The "Huashengchang Intelligent Sensing Measurement Instrument R&D and Production Project" has completed its committed investment using raised funds, with subsequent investments to be made from own funds or other financing methods[124] Significant Asset and Equity Sales This section states that the company did not engage in any significant asset or equity sales during the reporting period - The company did not sell significant assets during the reporting period[127] - The company did not sell significant equity during the reporting period[128] Analysis of Major Holding and Participating Companies This section lists the company's acquisitions and disposals of subsidiaries during the reporting period, including the establishment of Hunan Huazhihong, Shenzhen Everbest Import & Export, Shenzhen Shendu Gancce, and Shenzhen Shenjing Zhinen Acquisition and Disposal of Subsidiaries During the Reporting Period | Company Name | Method of Acquisition/Disposal of Subsidiaries During the Reporting Period | Impact on Overall Production, Operations, and Performance | | :--- | :--- | :--- | | Hunan Huazhihong Intelligent Technology Co., Ltd. | Newly established | | | Shenzhen Everbest Import & Export Trading Co., Ltd. | Newly established | | | Shenzhen Shendu Gancce Technology Co., Ltd. | Newly established | | | Shenzhen Shenjing Zhinen Technology Co., Ltd. | Newly established, invested by Shenzhen Shendu Gancce Technology Co., Ltd. | | Information on Structured Entities Controlled by the Company This section states that the company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[129] Risks Faced by the Company and Countermeasures The company addresses risks from international trade policies, exchange rate fluctuations, raw material prices, and market competition by monitoring policies, expanding market share, optimizing supply chains, and enhancing product value and quality - International trade policy and exchange rate fluctuation risks: The company's overseas business is significantly affected by international trade policies and business environments, with exchange rate fluctuations creating uncertainty for operating performance[129] - Countermeasures: Closely monitor policy changes, increase market share in emerging countries and the domestic market, enhance product value, improve financial and foreign exchange business capabilities, and mitigate exchange rate fluctuation risks through financial instruments[130] - Raw material price fluctuation risk: Rising upstream raw material prices may adversely affect product manufacturing costs[131] - Countermeasures: Optimize supply chain resources, rationally plan material procurement and inventory, and reduce costs through technological upgrades, strict cost control, and enhanced economies of scale[131] - Market competition risk: The instrument and meter industry is highly competitive with numerous similar enterprises[132] - Countermeasures: Closely monitor market policy changes, promptly adjust business strategies, continuously explore new markets, and consistently improve product quality, technical levels, and management efficiency to maintain customer loyalty[133] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan This section states that the company has not formulated a market value management system or disclosed a valuation enhancement plan - The company has not formulated a market value management system[134] - The company has not disclosed a valuation enhancement plan[134] Implementation of "Quality and Return Dual Enhancement" Action Plan This section states that the company has not disclosed an announcement regarding the "Quality and Return Dual Enhancement" action plan - The company has not disclosed an announcement regarding the "Quality and Return Dual Enhancement" action plan[134] Corporate Governance, Environment, and Society This section covers changes in company leadership, profit distribution, employee incentives, environmental disclosures, and social responsibility initiatives Changes in Directors, Supervisors, and Senior Management This section states that 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, as detailed in the 2024 annual report[136] Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period This section states that the company plans no cash dividends, bonus shares, or capital reserve conversions to 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[137] Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company implemented a 2024 restricted stock incentive plan, granting 1,904,000 shares to 155 individuals, and an employee stock ownership plan holding 1,820,000 shares (0.96% of total share capital), establishing long-term incentive mechanisms - The 2024 Restricted Stock Incentive Plan has completed its initial grant registration, with 1,904,000 shares initially granted[140] - The 2024 Employee Stock Ownership Plan holds a total of 1,820,000 shares, accounting for 0.96% of the listed company's total share capital[142] - The funding sources for the employee stock ownership plan include employees' legal remuneration, self-raised funds, and other methods permitted by laws and regulations[142] - During the reporting period, the company's 2024 annual profit distribution and capital reserve conversion to share capital were completed, and the number of shares held by each participant in the employee stock ownership plan increased accordingly[142] Environmental Information Disclosure This section states that the listed company and its main subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its main subsidiaries are not included in the list of enterprises required to disclose environmental information by law[144] Social Responsibility The company actively fulfills its social responsibilities by enhancing corporate governance, protecting shareholder and employee rights, fostering talent, and building strategic partnerships with customers and suppliers for mutual benefit - The company strictly adheres to laws and regulations, improves its corporate governance structure, safeguards the legitimate rights and interests of shareholders, especially minority shareholders, and ensures timely, truthful, accurate, and complete information disclosure[145] - The company adheres to a people-oriented approach, strictly implements national employment, labor protection, and social security systems, and prioritizes employee career development planning and talent cultivation[146] - The company values communication and coordination with customers and suppliers, establishing strategic partnerships to share information, promote technological exchange and progress, and maximize mutual benefits[147] Significant Matters This section details various important events, including shareholder commitments, related party transactions, legal proceedings, and other material disclosures Commitments Fulfilled and Unfulfilled by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period This section confirms that share reduction commitments made by the company's actual controller, shareholders, and related parties during IPO or refinancing have been fulfilled on time, with no overdue unfulfilled commitments at period-end - The share reduction commitments made by the company's controlling shareholder, actual controller, Chairman and General Manager Yuan Jianmin, company shareholder, Vice Chairman and Deputy General Manager Che Haixia, and company shareholders Huaju Enterprise, Huahang Enterprise, and Zhiyi Investment during the initial public offering have been fulfilled on time[149] - The commitment period was within two years after the lock-up period expired[149] Non-operating Fund Occupation by Controlling Shareholder and Other Related Parties of the Listed Company This section states that there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company during the reporting period - During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company[150] Illegal External Guarantees This section states that the company had no illegal external guarantees during the reporting period - The company had no illegal external guarantees during the reporting period[151] Appointment and Dismissal of Accounting Firms This section states that the company's semi-annual report was not audited - The company's semi-annual report was not audited[152] Explanation by the Board of Directors and Supervisory Board on the Accounting Firm's "Non-Standard Audit Report" for This Period This section states that there is no explanation from the Board of Directors or Supervisory Board regarding a "non-standard audit report" for this period - During the reporting period, there was no explanation from the Board of Directors or Supervisory Board regarding a "non-standard audit report" from the accounting firm for this period[153] Explanation by the Board of Directors on Matters Related to the Prior Year's "Non-Standard Audit Report" This section states that there is no explanation from the Board of Directors regarding matters related to the prior year's "non-standard audit report" - During the reporting period, there was no explanation from the Board of Directors regarding matters related to the prior year's "non-standard audit report"[153] Bankruptcy and Reorganization Matters This section states that the company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[154] Litigation Matters This section discloses the company's litigation matters, with no major lawsuits, but minor cases as defendant (CNY 0.91 million) and plaintiff (CNY 5.60 million), neither having a significant impact - The company had no significant litigation or arbitration matters during this reporting period[155] Other Litigation Matters | Basic Information on Litigation (Arbitration) | Amount Involved (CNY million) | Whether a Provision for Liabilities is Formed | Litigation (Arbitration) Progress | Impact of Litigation (Arbitration) | | :--- | :--- | :--- | :--- | :--- | | Litigation where