金杨股份(301210) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions This section provides important notes, the table of contents, and definitions of key terms to ensure clarity and understanding of the report content Important Notes The board, supervisory board, and senior management guarantee the report's truthfulness, accuracy, and completeness, with no cash dividends or bonus shares planned - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming individual and joint legal responsibility[5] - Company's responsible person Yang Jianlin, head of accounting affairs Guo Zuwei, and head of accounting department (accounting manager) Guo Zuwei declare that the financial report in this semi-annual report is true, accurate, and complete[5] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[6] Table of Contents The report's table of contents covers company profile, management discussion, corporate governance, significant matters, share changes, bond information, and financial reports - The report's table of contents includes Sections II to VIII, covering company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, and financial reports[8] List of Documents for Inspection Documents for inspection include signed financial statements and originals of all publicly disclosed company files and announcements from the reporting period - Documents for inspection include financial statements signed and sealed by the legal representative, head of accounting affairs, and head of accounting department[10] - Documents for inspection also include originals of all company documents and announcements publicly disclosed during the reporting period[10] Definitions This section defines common terms used in the report, including company names, currency units, reporting periods, industry bodies, and major customer names - "Company," "the Company," and "Jinyang Shares" refer to Wuxi Jinyang New Material Co., Ltd[11] - "Reporting Period" refers to January 1, 2025, to June 30, 2025[11] - Key customers include LG Energy Solution, Panasonic, Samsung SDI, BYD, CATL, EVE Energy, and others[11] Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and key financial performance metrics and indicators for the reporting period Company Profile Wuxi Jinyang New Material Co., Ltd. (stock code: 301210) is listed on the Shenzhen Stock Exchange, with Yang Jianlin as its legal representative - The company's stock abbreviation is "Jinyang Shares," stock code "301210," listed on the Shenzhen Stock Exchange[13] - The company's Chinese name is "Wuxi Jinyang New Material Co., Ltd.," and its legal representative is Yang Jianlin[13] Contact Person and Information The company's Board Secretary Yang Hao and Securities Affairs Representative Yao Yun share the same contact address, phone/fax, and email - The Board Secretary is Yang Hao, and the Securities Affairs Representative is Yao Yun[14] - Contact address: No 168, Zhangmaqiao Road, Ehu Town, Xishan District, Wuxi City, Jiangsu Province[14] - Phone/Fax: 0510-88756729, Email: dshbgs@wx-jy.com[14] Other Information The company's contact details and registration status remained unchanged, while total share capital increased to 114,614,334 shares after a capital reserve conversion - The company's registered address, office address, website, email, information disclosure and storage locations, and registration status remained unchanged during the reporting period[15][16][17] - The company completed its 2024 equity distribution on May 28, 2025, converting capital reserves into 3.9 shares for every 10 shares held by all shareholders, totaling 32,157,978 shares[18] - After the conversion, the company's total share capital is 114,614,334 shares[18] Key Accounting Data and Financial Indicators Operating revenue increased by 18.13%, but net profit attributable to shareholders decreased by 28.15%, while net cash flow from operating activities significantly grew by 124.59% Key Accounting Data and Financial Indicators (Year-on-Year) | Indicator | Current Period (CNY) | Prior Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 737,425,968.31 | 624,238,868.68 | 18.13% | | Net Profit Attributable to Shareholders of Listed Company | 19,263,253.65 | 26,808,766.46 | -28.15% | | Net Profit Excluding Non-recurring Gains and Losses | 13,613,645.84 | 23,891,541.28 | -43.02% | | Net Cash Flow from Operating Activities | 61,217,765.72 | 27,258,086.68 | 124.59% | | Basic Earnings Per Share (CNY/share) | 0.17 | 0.33 | -48.48% | | Diluted Earnings Per Share (CNY/share) | 0.17 | 0.33 | -48.48% | | Weighted Average Return on Net Assets | 1.05% | 1.47% | -0.42% | Key Accounting Data and Financial Indicators (Period-End) | Indicator | Period-End (CNY) | Prior Year-End (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 2,626,803,967.90 | 2,514,541,996.94 | 4.46% | | Net Assets Attributable to Shareholders of Listed Company | 1,825,487,688.95 | 1,817,986,873.31 | 0.41% | - Fully diluted earnings per share calculated with the latest share capital is CNY 0.1681/share[19] Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company's financial reports show no differences in net profit and net assets between international or overseas accounting standards and Chinese accounting standards - The company's financial reports for the reporting period show no differences in net profit and net assets between International Accounting Standards and Chinese Accounting Standards[20] - The company's financial reports for the reporting period show no differences in net profit and net assets between overseas accounting standards and Chinese Accounting Standards[21] Non-recurring Gains and Losses Items and Amounts Total non-recurring gains and losses for the period amounted to CNY 5,649,607.81, primarily from asset disposal, government grants, and fair value changes Non-recurring Gains and Losses Items and Amounts | Item | Amount (CNY) | | :--- | :--- | | Gains or losses from disposal of non-current assets | 693,006.71 | | Government grants recognized in current profit or loss | 783,500.00 | | Fair value changes and disposal gains/losses from financial assets/liabilities held by non-financial enterprises | 329,831.08 | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 5,249,311.27 | | Other non-operating income and expenses | -8,713.93 | | Other items defined as non-recurring gains and losses | 43,998.36 | | Less: Income tax impact | 1,176,122.37 | | Minority interest impact (after tax) | 265,203.31 | | Total | 5,649,607.81 | - The company does not classify any non-recurring gains and losses items listed in "Interpretive Announcement No 1 on Information Disclosure by Companies Issuing Securities to the Public - Non-recurring Gains and Losses" as recurring gains and losses[24] Management Discussion and Analysis This section provides an in-depth analysis of the company's principal businesses, core competencies, financial performance, investment activities, and risk management strategies Principal Businesses Engaged in by the Company During the Reporting Period The company focuses on R&D, production, and sales of battery precision structural components and materials, with a new strategic entry into the humanoid robot sector - The company's main business is the R&D, production, and sales of battery precision structural components and materials, with primary products being battery casing, safety valves, and nickel-based conductor materials[26] - In the first half of 2025, the company initially ventured into the humanoid robot sector, acquiring stakes in Guohua Intelligent and Zhili Sensing, and ordering high-end processing centers and precision testing equipment to provide precision metal components and six-axis force sensor elastomers for humanoid robots[27] - The company adopts a "procurement based on production, reasonable inventory" purchasing model and a "production based on sales, reasonable inventory" production model, primarily using direct sales, and a customer-oriented R&D model combined with independent R&D and external cooperation[31][32][33][34] Principal Businesses Engaged in by the Company The company specializes in battery precision structural components and materials, including casings, safety valves, and nickel-based conductors, expanding into humanoid robot components - The company's main products include battery casing (cylindrical steel shells and prismatic aluminum shells), safety valves (cylindrical caps and prismatic cover plates), and nickel-based conductor materials[26][29] - Products are ultimately applied in electric tools, electric light vehicles, consumer electronics, new energy vehicles, new energy storage, and other fields[29] - In the first half of 2025, the company invested in Guohua Intelligent (precision transmission components for humanoid robots) and Zhili Sensing (six-axis force sensors), and invested in equipment to provide precision metal components for humanoid robots[27] Main Business Models The company operates with "procurement based on production" and "production based on sales" models, primarily using direct sales and customer-oriented R&D - The procurement model is "procurement based on production, reasonable inventory," with main raw materials being bulk commodities such as steel, aluminum, and nickel[31] - The production model is "production based on sales, reasonable inventory," primarily self-produced, with some processes outsourced[32] - Sales adopt a direct sales model, expanding business through proactive engagement and seeking cooperation with customers[33] - The R&D model is primarily customer-oriented, with multi-departmental collaboration on product design, mold development, trial production, and sample delivery, as well as independent R&D of new equipment and processes, and cooperation with universities[34] Company's Market Position The company is a pioneer in China's lithium battery precision structural components, holding a full-产业链 competitive advantage in cylindrical lithium battery components - The company is a pioneer in China's lithium battery precision structural components sector, focusing on R&D innovation and manufacturing of high-performance battery precision structural components[35] - The company has built a full-process, large-scale production, full-产业链 competitive advantage in the cylindrical lithium battery precision structural components sector, with products highly recognized by well-known domestic and international lithium battery manufacturers[35] Main Performance Drivers Performance is driven by lithium battery industry growth, with strong demand from new energy vehicles and energy storage boosting prismatic and cylindrical battery component revenue - The company's operating performance is closely related to the development of the lithium battery industry and end applications such as new energy vehicles, consumer electronics, and energy storage[35] - In the first half of 2025, rapid growth in demand from new energy vehicles and energy storage markets drove rapid revenue growth for prismatic battery precision structural components[35] - The gradual ramp-up of full-tab small cylindrical products drove company cylindrical battery precision structural components revenue growth; production and sales volume and revenue of nickel-based conductor materials also increased, with gross profit margin remaining relatively stable overall[35] Analysis of Core Competencies The company's core strengths lie in its strong customer base, advanced R&D capabilities, diversified product portfolio, and efficient, high-quality production advantages - The company's key customers include global renowned lithium battery manufacturers such as LG Energy Solution, Panasonic, Samsung SDI, BYD, CATL/ATL[36] - The company holds 40 invention patents, 140 utility model patents, has independently drafted and compiled 4 industry standards, and masters 6 core technologies[38] - The company's product system includes lithium battery precision structural components and nickel-based conductor materials, with technology routes covering both cylindrical and prismatic battery precision structural components, forming a multi-level product diversification advantage[40] - The company possesses full-process large-scale production, advanced mold design and manufacturing processes, a mature quality control system, and a complete production chain from raw material procurement to product assembly and inspection, earning S-grade product quality ratings and "Gold Supplier" honors from customers[41][42][43] Customer Resource Advantage The company maintains long-term, stable partnerships with global leading lithium battery manufacturers, providing a significant information advantage in market trends - The company's key customers include global renowned lithium battery manufacturers such as LG Energy Solution, Panasonic, Samsung SDI, BYD, CATL/ATL[36] - The cooperation and certification cycle with international first-tier battery manufacturers is long (1-3 years), and once a supply relationship is confirmed, it is relatively stable[37] - Long-term cooperation enables the company to continuously and stably access cutting-edge product design and manufacturing trends, providing an information advantage in market outlook judgment and process technology improvement directions[37] Technology R&D Advantage The company boasts a stable technical team, numerous patents, industry standards, and core technologies, recognized as a high-tech and "Little Giant" enterprise - The company possesses a long-term stable technical team with rich theoretical knowledge and years of practical development experience, forming deep technological expertise[38] - The company and its subsidiaries are recognized as high-tech enterprises and the fifth batch of "Little Giant" enterprises by the Ministry of Industry and Information Technology, and have established provincial engineering technology research centers[38] - The company has developed 40 invention patents, 140 utility model patents, independently drafted and compiled 4 industry standards, and masters 6 core technologies[38] Product Advantage The company offers outstanding product technical levels across cylindrical and prismatic battery components and nickel-based conductor materials, ensuring high precision and performance Main Product Technical Levels | Product Type | Sub-product | Company's Technical Level | | :--- | :--- | :--- | | Casing | Cylindrical Casing | Shell wall thickness uniformity can reach ±0.015 mm, inner and outer diameter tolerance can reach ±0.03 mm, height tolerance can reach ±0.05 mm; negative electrode explosion-proof scribe line setting, residual thickness of scribe groove can be as low as 2.9±0.2 mm, burst pressure can reach 0.08 MPa | | | Prismatic Casing | Dimensional and appearance precision is industry-competitive, meeting customer requirements from CATL, BYD, Lishen Battery, etc. | | Safety Valve | | Cut-off pressure range can reach 1.1±0.2 MPa, explosion-proof pressure range can reach 2.1±0.2 MPa | | Nickel-based Conductor Material | | Nickel foil resistivity can reach 8.0-8.3 micro-ohm/meter, thickness can reach 0.01-0.05 mm, tensile strength can reach 580-630 MPa, elongation (hard state) can reach 4-5 times, elongation (soft state) can reach 32-35 times | - The company's product system includes lithium battery precision structural components and nickel-based conductor materials, jointly covering the downstream lithium battery industry and achieving channel synergy advantages[40] - The company's product technology roadmap includes both cylindrical and prismatic battery precision structural components, providing the company's business with broader market space and risk resistance capabilities, forming a product complementarity advantage[40] Production Advantage The company possesses large-scale, high-quality production capabilities with advanced mold design and a complete production chain, earning high customer recognition - The company is one of the leading manufacturers of battery precision structural components and materials in the industry, having formed a large production scale capable of meeting the multi-category and large-scale demands of numerous well-known domestic and international customers[41] - Leveraging advanced mold design and manufacturing processes and a mature quality control system, the company has established an excellent process control advantage, ensuring high product quality stability, and has been rated S-grade for product quality by LG Energy Solution and awarded "Gold Supplier" and other honors[42] - The company has established a complete production chain for battery precision structural components, from raw material procurement to stamping, surface treatment, product assembly, and inspection, as well as full-process processing capabilities for high-performance pure nickel strips, possessing full-process quality control and flexible production scheduling capabilities[43] Analysis of Main Business Operating revenue increased by 18.13%, but net profit declined due to higher operating costs and a significant rise in administrative expenses, while cash flow from operations improved Year-on-Year Changes in Key Financial Data | Indicator | Current Period (CNY) | Prior Period (CNY) | YoY Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 737,425,968.31 | 624,238,868.68 | 18.13% | | | Operating Cost | 648,392,466.51 | 540,823,860.03 | 19.89% | | | Selling Expenses | 3,497,484.00 | 3,709,954.23 | -5.73% | | | Administrative Expenses | 35,126,788.72 | 21,545,221.49 | 63.04% | Primarily due to share-based payments, salaries, depreciation, and amortization | | Financial Expenses | -5,452,621.38 | -7,087,767.72 | 23.07% | | | Income Tax Expense | 2,711,385.10 | 2,218,897.14 | 22.20% | | | R&D Investment | 25,097,760.71 | 25,180,690.45 | -0.33% | | | Net Cash Flow from Operating Activities | 61,217,765.72 | 27,258,086.68 | 124.59% | Primarily due to increased sales collections | | Net Cash Flow from Investing Activities | -166,374,862.41 | -95,180,025.93 | -74.80% | Primarily due to increased cash outflow for fixed assets and intangible assets investment | | Net Cash Flow from Financing Activities | 58,360,105.41 | 8,459,215.43 | 589.90% | Primarily due to increased borrowings | | Net Increase in Cash and Cash Equivalents | -47,253,386.94 | -60,757,476.50 | 22.23% | | Products or Services Accounting for Over 10% | Product or Service | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Profit Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Operating Cost (%) | YoY Change in Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Battery Precision Structural Components | 465,461,561.20 | 416,778,147.90 | 10.46% | 21.55% | 23.48% | -1.40% | | Nickel-based Conductor Materials | 211,744,990.61 | 175,293,015.84 | 17.22% | 8.18% | 8.19% | -0.01% | | Other Businesses | 60,219,416.50 | 56,321,302.77 | 6.47% | 32.18% | 36.45% | -2.93% | | By Industry: Battery Precision Structural Components and Materials | 677,206,551.81 | 592,071,163.74 | 12.57% | 17.03% | 18.52% | -1.10% | | By Region: Domestic Sales | 717,394,898.46 | 635,664,923.91 | 11.39% | 18.07% | 19.84% | -1.31% | | By Region: Export Sales | 20,031,069.85 | 12,727,542.60 | 36.46% | 20.39% | 22.35% | -1.02% | Analysis of Non-Principal Businesses Non-principal businesses negatively impacted total profit, primarily due to investment losses, asset impairment from inventory write-downs, and credit impairment reversals Non-Principal Business Gains and Losses | Item | Amount (CNY) | Proportion of Total Profit (%) | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -1,246,371.99 | -4.34% | Primarily due to accounts receivable financing discount | No | | Asset Impairment | -5,358,345.11 | -18.65% | Primarily due to inventory impairment provision | No | | Non-operating Income | 19,401.91 | 0.07% | | No | | Non-operating Expenses | 28,115.84 | 0.10% | | No | | Credit Impairment Loss | 3,214,391.80 | 11.19% | Primarily due to reversal of bad debt provision for accounts receivable | No | Analysis of Assets and Liabilities Total assets grew by 4.46%, driven by increased construction in progress and long-term borrowings, while other current assets decreased due to maturing large-denomination certificates of deposit Significant Changes in Asset Composition | Item | Period-End Amount (CNY) | Proportion of Total Assets (%) | Prior Year-End Amount (CNY) | Proportion of Total Assets (%) | Change in Proportion (%) | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 169,139,086.08 | 6.44% | 201,707,473.02 | 8.02% | -1.58% | No significant change | | Construction in Progress | 251,713,323.86 | 9.58% | 105,204,008.92 | 4.18% | 5.40% | Primarily due to increased new factory construction | | Long-term Borrowings | 109,617,755.14 | 4.17% | 43,632,232.43 | 1.74% | 2.43% | Primarily due to increased loans for new factory projects | | Other Current Assets | 24,801,604.09 | 0.94% | 64,038,256.83 | 2.55% | -1.61% | Primarily due to maturity of large-denomination certificates of deposit | - The company's financial assets measured at fair value totaled CNY 156,223,867.66 at period-end, primarily comprising investments in other equity instruments and accounts receivable financing[53] Asset Restriction Status | Item | Book Balance (CNY) | Book Value (CNY) | Restriction Type | Restriction Details | | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 30,320,003.51 | 30,320,003.51 | Margin Deposit | Margin Deposit | | Notes Receivable | 2,297,606.39 | 2,297,606.39 | Pledge | Pledged Notes | | Fixed Assets | 70,842,125.45 | 69,159,706.07 | Mortgage | Mortgage | | Intangible Assets | 45,558,630.40 | 44,999,048.39 | Mortgage | Mortgage | | Total | 149,018,365.75 | 146,776,364.36 | — | — | Analysis of Investment Status Total investments slightly decreased, with significant non-equity investments in progress for new production lines and facilities, and raised funds being utilized and managed Investment Amount During the Reporting Period | Indicator | Amount (CNY) | | :--- | :--- | | Investment Amount During Reporting Period | 233,763,725.93 | | Investment Amount in Prior Period | 241,355,697.44 | | Change (%) | -3.15% | Significant Non-Equity Investments in Progress During the Reporting Period | Project Name | Investment Method | Fixed Asset Investment | Industry Involved | Current Period Investment (CNY) | Cumulative Actual Investment (CNY) | Funding Source | Project Progress (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Nickel Strip and Nickel Alloy Composite Strip Production Line Construction Project | Self-built | Yes | Nickel-based Conductor Materials | 18,767,969.43 | 84,981,957.47 | Own Funds | 28.33% | | Hubei Jinyang Precision Manufacturing Co., Ltd. Lithium Battery Precision Structural Components Project | Self-built | Yes | Power Lithium Battery Precision Structural Components | 40,279,661.74 | 118,947,768.78 | Own Funds, Bank Financing | 39.65% | | High-Safety Energy-Type Power Battery Special Material R&D, Manufacturing, and New Factory Project | Self-built | Yes | Power Lithium Battery Precision Structural Components | 20,153,834.50 | 619,392,651.10 | Own Funds, Raised Funds | 88.48% | | Wuhan Jinyang Precision Manufacturing Co., Ltd. Lithium Battery Precision Structural Components Project | Self-built | Yes | Power Lithium Battery Precision Structural Components | 72,642,215.43 | 132,323,415.80 | Own Funds, Bank Financing | 16.54% | | Xiamen Jinyang Precision Manufacturing Co., Ltd. Lithium Battery Precision Structural Components Project | Self-built | Yes | Power Lithium Battery Precision Structural Components | 8,013.52 | 2,513.52 | Own Funds, Bank Financing | 9.44% | - As of June 30, 2025, the company had actually invested a total of CNY 788.94 million in related projects from raised funds, with a remaining balance of CNY 295.29 million, and a portion of unused raised funds is being managed as cash[60] - Wealth management transactions during the reporting period amounted to CNY 44.56 million, with an outstanding balance of CNY 0 and no overdue unrecovered amounts; the company had no derivative investments or entrusted loans during the reporting period[67][68] Significant Asset and Equity Sales 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[69] - The company did not sell significant equity during the reporting period[70] Analysis of Major Holding and Participating Companies Major subsidiaries, Wuxi Dongyang New Material and Wuxi Jinyang Marui Electronics, were profitable, and new subsidiaries were established with no significant impact on overall performance Financial Data of Major Subsidiaries | Company Name | Company Type | Main Business | Registered Capital (CNY) | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wuxi Dongyang New Material Co., Ltd. | Subsidiary | R&D, production, and sales of nickel-based conductor materials | 31,150,000 | 318,671,109.98 | 278,228,560.10 | 211,767,417.92 | 21,837,276.62 | 19,048,603.73 | | Wuxi Jinyang Marui Electronics Co., Ltd. | Subsidiary | R&D, production, and sales of battery casing | 50,000,000 | 175,767,373.67 | 77,824,704.09 | 119,970,654.86 | 5,357,668.73 | 4,246,054.35 | - During the reporting period, the company newly established Wuxi Hesheng Precision Manufacturing Co., Ltd., JINYANG PRECISION INTERNATIONAL PTE. LTD., and Jinyang Precision Malaysia Sdn.Bhd., which had no significant impact on overall production, operations, and performance[71] Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company had no structured entities under its control during the reporting period[72] Risks Faced by the Company and Countermeasures The company addresses macroeconomic, market competition, raw material, technology iteration, and expansion risks through market diversification, R&D, and internal control improvements - The company faces macroeconomic and market fluctuation risks, such as slowing macroeconomic growth and trade restrictions, particularly in the electric tools, electric light vehicles, and consumer electronics sectors[72] - Countermeasures include increasing market expansion in new energy vehicles and energy storage, focusing on prismatic battery precision structural components and 46-series structural components, and developing full-tab series structural components[72][73] - The company faces intensified market competition risk in lithium battery structural components, with countermeasures including continuous increase in R&D investment, attracting top talent, improving production efficiency, reducing costs, and deepening relationships with customers and suppliers[74] - The company faces risks of raw material price fluctuations and supply, with countermeasures including diversifying procurement methods, signing long-term framework agreements, centralized procurement, flexible inventory adjustments, and developing new suppliers[75] - The company faces product and technology iteration risks, with countermeasures including maintaining attention to cutting-edge lithium battery technologies, participating in joint development with customers, enriching product types, and increasing R&D efforts[76] - The company faces risks associated with scale expansion, with countermeasures including improving internal control systems, strengthening organizational structure, optimizing incentive mechanisms, enhancing financial control, and internal training and communication[77] Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period The company engaged with institutional and individual investors through conference calls and online platforms to discuss business and industry outlook - On April 25, 2025, the company hosted institutional investors via conference call to discuss company business, industry outlook, and other topics[78] - On April 29, 2025, the company hosted institutional and individual investors via the Value Online interactive platform to discuss company business, industry outlook, and other topics[78] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system nor disclosed a valuation enhancement plan - The company has not formulated a market value management system[79] - The company has not disclosed a valuation enhancement plan[79] Implementation of "Dual Improvement in Quality and Returns" Action Plan The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan - The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan[79] Corporate Governance, Environment, and Society This section details changes in the company's governance structure, profit distribution plans, employee incentives, environmental disclosures, and social responsibility initiatives Changes in Directors, Supervisors, and Senior Management During the reporting period, the company saw the departure of its Supervisory Board Chairman, a supervisor, and an employee supervisor due to work reassignments Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Hua Jian | Chairman of Supervisory Board | Departure | June 23, 2025 | Work reassignment | | Xue Lingfeng | Supervisor | Departure | June 23, 2025 | Work reassignment | | Hua Xing | Employee Supervisor | Departure | June 23, 2025 | Work reassignment | Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period The company plans no cash dividends, bonus shares, or capital reserve conversions 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[81] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company approved a restricted stock incentive plan in February 2025, granting 1.199 million shares to 67 recipients, with future actions adapting to organizational restructuring - On February 11, 2025, the company's board of directors and supervisory board convened to review and approve the "2025 Restricted Stock Incentive Plan (Draft)" and its summary[82] - On February 27, 2025, the company set the initial grant date, granting 1.199 million Class II restricted shares to 67 incentive recipients at a grant price of CNY 20.98/share[84] - Given the company's organizational restructuring in June 2025, which abolished the supervisory board, subsequent matters will be handled in accordance with new laws and regulations[86] Environmental Information Disclosure The company and its main subsidiaries are listed as enterprises required to disclose environmental information, with reports available on the Jiangsu Provincial Department of Ecology and Environment website - The listed company and its main subsidiaries Wuxi Jinyang New Material Co., Ltd. and Wuxi Jinyang Marui Electronics Co., Ltd. are both included in the list of enterprises required to disclose environmental information by law[88] - Environmental information disclosure reports can be found on the website of the Jiangsu Provincial Department of Ecology and Environment[88] Social Responsibility The company upholds integrity, protects shareholder and employee rights, and ensures fair transactions with suppliers and customers while providing high-quality products - The company utilizes the SZSE "Interactive Easy" platform for daily interactive communication with investors, promptly answers investor service calls, and regularly hosts investor research visits[90] - The company strictly adheres to labor laws and regulations, respects and protects employees' individual rights, focuses on employee health, safety, and satisfaction, and provides reasonable compensation and training development opportunities[91] - The company insists on fair and transparent transactions with suppliers, establishes long-term and stable cooperative relationships, and is committed to providing high-quality products and services, protecting customer rights and information security[92] Significant Matters This section addresses various significant corporate matters, including commitments, fund occupation, guarantees, auditor appointments, litigation, penalties, related party transactions, and major contracts Commitments Fulfilled and Overdue Unfulfilled by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period No commitments by the controlling shareholder, shareholders, related parties, acquirers, or the company were fulfilled or overdue unfulfilled during the reporting period - During the reporting period, there were no commitments fulfilled or overdue unfulfilled by the company's controlling shareholder, shareholders, related parties, acquirers, or the company[94] Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties 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[95] 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[96] Appointment and Dismissal of Accounting Firms The company's semi-annual report was unaudited - The company's semi-annual report is unaudited[97] Explanations by the Board of Directors, Supervisory Board, and Audit Committee on the Accounting Firm's "Non-Standard Audit Report" for the Current Period No explanations were provided by the board, supervisory board, or audit committee regarding a "non-standard audit report" for the current period - During the reporting period, there were no explanations by the board of directors, supervisory board, or audit committee regarding the accounting firm's "non-standard audit report" for the current period[98] Explanations by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year No explanations were provided by the board of directors regarding a "non-standard audit report" for the previous year - During the reporting period, there were no explanations by the board of directors regarding the "non-standard audit report" for the previous year[98] Bankruptcy and Reorganization Matters The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[98] Litigation Matters The company had no significant litigation, arbitration, or other litigation matters during the reporting period - The company had no significant litigation or arbitration matters during the reporting period[99] - The company had no other litigation matters during the reporting period[99] Penalties and Rectification The company had no penalties or rectification during the reporting period - The company had no penalties or rectification during the reporting period[100] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company, its controlling shareholder, and actual controller maintained good integrity status during the reporting period - During the reporting period, there were no integrity issues concerning the company, its controlling shareholder, or actual controller[101] Significant Related Party Transactions The company had no significant related party transactions, including those related to daily operations, asset/equity acquisition/disposal, or creditor-debtor relationships - The company had no related party transactions related to daily operations during the reporting period[101] - The company had no related party transactions involving asset or equity acquisition/disposal during the reporting period[102] - The company had no related party creditor-debtor relationships during the reporting period[104] - The company had no other significant related party transactions during the reporting period[107] Significant Contracts and Their Performance The company had no entrustment or contracting situations, but engaged in several property lease contracts, with no single lease significantly impacting total profit - The company had no entrustment situations during the reporting period[108] - The company had no contracting situations during the reporting period[109] - The company signed multiple property lease contracts with Wuxi Aiju Housing Leasing Co., Ltd. and Wuxi Hongshun Real Estate Co., Ltd., leasing out properties and sites[110][111][112][113] - During the reporting period, there were no lease projects that generated profits or losses exceeding 10% of the company's total profit for the period[113] - The company had no significant guarantee situations during the reporting period[114] - The company had no other significant contracts during the reporting period[117] Explanation of Other Significant Matters The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[118] Significant Matters of Company Subsidiaries The company's subsidiaries had no significant matters during the reporting period - The company's subsidiaries had no significant matters during the reporting period[119] Share Changes and Shareholder Information This section details changes in the company's share capital, shareholder structure, and shareholdings of directors, supervisors, and senior management Share Change Status The company's total share capital increased to 114,614,334 shares due to a capital reserve conversion, impacting per-share earnings and net assets Share Change Status | Item | Number Before Change (shares) | Proportion Before Change (%) | Increase/Decrease Due to Capital Reserve Conversion (shares) | Number After Change (shares) | Proportion After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 51,187,350 | 62.08% | 19,963,066 | 71,150,416 | 62.08% | | II. Unrestricted Shares | 31,269,006 | 37.92% | 12,194,912 | 43,463,918 | 37.92% | | III. Total Shares | 82,456,356 | 100.00% | 32,157,978 | 114,614,334 | 100.00% | - The company's 2024 profit distribution plan was: based on the total share capital of 82,456,356 shares as of December 31, 2024, a cash dividend of CNY 1.50 (tax inclusive) per 10 shares was distributed to all shareholders, and capital reserves were converted into 3.9 shares for every 10 shares, totaling 32,157,978 converted shares[123] - This share capital change resulted in a decrease in basic earnings per share from CNY 0.2336 to CNY 0.1681, and a decrease in net assets per share attributable to ordinary shareholders from CNY 22.1388 to CNY 15.9272[125] Securities Issuance and Listing The company had no securities issuance or listing during the reporting period - The company had no securities issuance or listing during the reporting period[128] Number of Shareholders and Shareholding Status The company had 11,619 ordinary shareholders at period-end, with key shareholders forming a concerted action group holding a significant stake - The total number of ordinary shareholders at the end of the reporting period was 11,619[129] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio (%) | Number of Shares Held at Period-End (shares) | Change During Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yang Jianlin | Domestic Natural Person | 26.85% | 30,774,600 | 8,634,600 | 30,774,600 | 0 | | Hua Yueqing | Domestic Natural Person | 17.90% | 20,516,400 | 5,756,400 | 20,516,400 | 0 | | Wuxi Muyi Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 10.19% | 11,676,000 | 3,276,000 | 11,676,000 | 0 | | Wuxi Muqing Investment Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 6.37% | 7,297,500 | 2,047,500 | 7,297,500 | 0 | | China Construction Bank Co., Ltd. - Yongying Advanced Manufacturing Smart Selection Mixed Initiated Securities Investment Fund | Other | 2.29% | 2,624,326 | 2,624,326 | 0 | 2,624,326 | - Yang Jianlin, Hua Yueqing, Yang Hao, Wuxi Muyi Investment Partnership (Limited Partnership), and Wuxi Muqing Investment Partnership (Limited Partnership) jointly signed a concerted action agreement[130] Changes in Shareholdings of Directors, Supervisors, and Senior Management Shareholdings of the Chairman and Board Secretary increased due to capital reserve conversion, while restricted stock grants remained unchanged Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Shares Held at Beginning of Period (shares) | Shares Increased During Period (shares) | Shares Held at End of Period (shares) | Restricted Shares Granted at Beginning of Period (shares) | Restricted Shares Granted During Period (shares) | Restricted Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yang Jianlin | Chairman, General Manager | Current | 22,140,000 | 8,634,600 | 30,774,600 | 0 | 0 | 0 | | Yang Hao | Board Secretary, Deputy General Manager | Current | 637,350 | 248,566 | 885,916 | 0 | 0 | 0 | | Total | -- | -- | 22,777,350 | 8,883,166 | 31,660,516 | 0 | 0 | 0 | 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[133] - The company's actual controller did not change during the reporting period[133] Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[134] Bond-Related Information The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[136] Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report is unaudited[138] Financial Statements This section provides the company's consolidated and parent company financial statements for the first half of 2025, detailing financial position, operating results, and cash flows - This section includes the consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[139][143][148][151][155][158][160][166] Company Basic Information Wuxi Jinyang New Material Co., Ltd., with a registered capital of CNY 114,614,334.00, specializes in R&D, production, and sales of battery precision structural components and materials - Wuxi Jinyang New Material Co., Ltd. was established through the overall conversion of Wuxi Jinyang New Power Co., Ltd[172] - The company's registered capital is CNY 114,614,334.00, and its total share capital is CNY 114,614,334.00[173] - The main business of the company and its subsidiaries is the R&D, production, and sales of battery precision structural components and materials, with primary products being battery casing, safety valves, and nickel-based conductor materials[174] Basis of Financial Statement Preparation The financial statements are prepared on a going concern basis, adhering to Enterprise Accounting Standards and CSRC disclosure rules, with no identified going concern issues - The company prepares its financial statements on a going concern basis, recognizing and measuring transactions and events in accordance with Enterprise Accounting Standards, their application guidelines, and interpretations[176] - The company also discloses relevant financial information in accordance with the China Securities Regulatory Commission's "Reporting Rules for Information Disclosure by Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports" (Revised 2023)[176] - The company assessed its ability to continue as a going concern for 12 months from the end of the reporting period and found no matters affecting its going concern ability[177] Significant Accounting Policies and Estimates This section details the company's key accounting policies and estimates, including financial instrument classification, expected credit loss measurement, and deferred tax asset recognition - The financial statements prepared by the company comply with Enterprise Accounting Standards, accurately and completely reflecting the company's financial position, operating results, changes in owners' equity, and cash flows[179] - At initial recognition, the company classifies financial assets based on the business model for managing financial assets and the contractual cash flow characteristics of the financial assets into: financial assets measured at amortized cost, financial assets measured at fair value through profit or loss, and financial assets measured at fair value through other comprehensive income[212] - Significant judgments involved in determining the classification of financial assets include the analysis of business models and contractual cash flow characteristics[360] - The company calculates expected credit losses for accounts receivable based on exposure to default risk and expected credit loss rates, determining the expected credit loss rate based on probability of default and loss given default[361] - Deferred tax assets should be recognized for all unused tax losses to the extent that it is probable that taxable profit will be available against which the unused tax losses can be utilized[363] Taxes This section outlines the company's main tax categories and rates, along with various tax incentives enjoyed by the company and its subsidiaries Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Income | 5%, 9%, 13% | | Urban Maintenance and Construction Tax | Payable Turnover Tax | 7% | | Corporate Income Tax | Taxable Income | 25%, 20%, 15%, 17%, 24% | | Education Surcharge | Payable Turnover Tax | 3% | | Local Education Surcharge | Payable Turnover Tax | 2% | - The company and its subsidiary Dongyang New Material, as high-tech enterprises, are subject to corporate income tax at a reduced rate of 15% from January to June 2025 until 2026[366] - Subsidiary Lide Packaging enjoys preferential policies for small and micro-profit enterprises, paying corporate income tax at a rate of 20%[366] - Advanced manufacturing enterprises can deduct an additional 5% of current deductible input VAT from their payable VAT[366] - R&D expenses that do not form intangible assets and are recognized in current profit or loss can be additionally deducted at 100% of the actual amount before tax; if they form intangible assets, they can be amortized at 200% of the intangible asset cost before tax[367] Notes to Consolidated Financial Statement Items This section provides detailed notes on consolidated financial statement items, highlighting significant changes in construction in progress, long-term borrowings, and impairment provisions Cash and Bank Balances | Item | Period-End Balance (CNY) | Period-Beginning Balance (CNY) | | :--- | :--- | :--- | | Cash on Hand | 65,111.42 | 62,347.33 | | Bank Deposits | 138,753,971.15 | 186,010,122.18 | | Other Cash and Bank Balances | 30,320,003.51 | 15,635,003.51 | | Total | 169,139,086.08 | 201,707,473.02 | Accounts Receivable | Category | Period-End Book Balance (CNY) | Period-End Impairment Provision (CNY) | Period-End Book Value (CNY) | | :--- | :--- | :--- | :--- | | Accounts Receivable for which Impairment Provision is Individually Assessed | 61,337,844.07 | 18,347,413.57 | 42,990,430.50 | | Accounts Receivable for which Impairment Provision is Assessed by Portfolio | 405,233,400.03 | 21,158,628.68 | 384,074,771.35 | | Total | 466,571,244.10 | 39,506,042.25 | 427,065,201.85 | - The amount of bad debt provision for accounts receivable recovered or reversed in this period was CNY 5,249,311.27, primarily due to the recovery of payments from Zhengzhou BAK Battery Co., Ltd. and Jiangsu Zhihang New Energy Co., Ltd[392][393] Inventories | Item | Period-End Book Balance (CNY) | Period-End Inventory Impairment Provision (CNY) | Period-End Book Value (CNY) | | :--- | :--- | :--- | :--- | | Raw Materials | 112,025,868.48 | 215,074.05 | 111,810,794.43 | | Work in Progress | 65,283,064.95 | 398,962.55 | 64,884,102.40 | | Finished Goods | 36,118,990.92 | 4,725,478.83 | 31,393,512.09 | | Revolving Materials | 17,913,865.53 | 235,343.46 | 17,678,522.07 | | Goods in Transit | 87,802,699.49 | 3,999,031.35 | 83,803,668.14 | | Consigned Processing Materials | 195,834.29 | 0 | 195,834.29 | | Total | 319,340,323.66 | 9,573,890.24 | 309,766,433.42 | Construction in Progress | Item | Period-End Book Balance (CNY) | Period-End Book Value (CNY) | | :--- | :--- | :--- | | Equipment Under Installation | 85,728,852.75 | 85,728,852.75 | | Wuhan Jinyang New Factory Building | 120,333,142.01 | 120,333,142.01 | | Xiamen Jinyang New Factory Building | 36,254,570.07 | 36,254,570.07 | | Hubei Jinyang New Factory Building Renovation Project | 8,293,240.59 | 8,293,240.59 | | Equipment Modification | 838,024.28 | 838,024.28 | | Workshop Renovation Project | 265,494.16 | 265,494.16 | | Total | 251,713,323.86 | 251,713,323.86 | Operating Revenue and Operating Cost | Item | Current Period Revenue (CNY) | Current Period Cost (CNY) | Prior Period Revenue (CNY) | Prior Period Cost (CNY) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 677,206,551.81 | 592,071,163.74 | 578,678,860.47 | 499,547,881.82 | | Other Businesses | 60,219,416.50 | 56,321,302.77 | 45,560,008.21 | 41,275,978.21 | | Total | 737,425,968.31 | 648,392,466.51 | 624,238,868.68 | 540,823,860.03 | Administrative Expenses | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Employee Compensation | 9,917,793.40 | 7,929,368.56 | | Depreciation and Amortization | 8,913,532.92 | 5,597,982.19 | | Business Entertainment Expenses | 2,651,557.81 | 2,591,045.69 | | Intermediary Service Fees | 2,108,486.14 | 2,113,878.37 | | Travel Expenses | 640,555.04 | 752,687.12 | | Office Expenses | 667,606.41 | 397,323.26 | | Share-based Payment | 8,905,653.88 | 910,719.84 | | Repair and Maintenance Fees | 160,662.64 | 80,224.08 | | Other | 1,160,940.48 | 1,171,992.38 | | Total | 35,126,788.72 | 21,545,221.49 | Financial Expenses | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Interest Expense | 960,487.79 | 310,849.59 | | Less: Interest Income | 5,231,137.43 | 7,146,916.03 | | Net Interest Expense | -4,270,649.64 | -6,836,066.44 | | Exchange Loss | 456,395.66 | 1,380,465.03 | | Less: Exchange Gain | 0 | 85,712.35 | | Net Exchange Loss | 456,395.66 | 1,294,752.68 | | Bank Charges | 457,714.25 | 233,647.74 | | Discount Interest | 72,994.47 | 92,570.72 | | Cash Discount | -2,169,076.12 | -1,872,672.42 | | Total | -5,452,621.38 | -7,087,767.72 | R&D Expenses Total R&D expenses for the period were CNY 25,097,760.71, primarily comprising employee compensation, material costs, and depreciation/amortization Composition of R&D Expenses | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Employee Compensation | 13,444,693.36 | 11,029,675.72 | | Material Costs | 9,063,442.21 | 11,441,770.42 | | Depreciation and Amortization | 2,254,464.04 | 2,108,377.18 | | Other | 335,161.10 | 600,867.13 | | Total | 25,097,760.71 | 25,180,690.45 | | Of which: Expensed R&D Expenditure | 25,097,760.71 | 25,180,690.45 | Changes in Consolidation Scope The company's consolidation scope changed due to the establishment of three new subsidiaries during the reporting period - On March 19, 2025, the company established Wuxi Hesheng Precision Manufacturing Co., Ltd. as a subsidiary, with a registered capital of CNY 30 million and a shareholding ratio of 60.00%[146] - On April 8, 2025, the company established JINYANG PRECISION INTERNATIONAL PTE. LTD. as a subsidiary, with a registered capital of SGD 30,000 and a shareholding ratio of 100.00%[146] - On May 16, 2025, the company established Jinyang Precision Malaysia Sdn.Bhd. as a subsidiary, with a registered capital of MYR 3 million and a shareholding ratio of 100.00%[146] Interests in Other Entities This section details the company's equity interests in subsidiaries, including significant non-wholly owned subsidiary Wuxi Dongyang New Material, with no changes in control or significant joint ventures Composition of the Enterprise Group | Subsidiary Name | Main Operating Location | Registered Location | Business Nature | Direct Shareholding Ratio (%) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Wuxi Jinyang Marui Electronics Co., Ltd. | Wuxi | Wuxi | R&D, production, and sales of lithium battery precision structural components | 100.00% | Est