荣旗科技(301360) - 2025 Q2 - 季度财报

Section 1: Important Notices, Table of Contents, and Definitions Important Notices The board of directors, supervisory committee, and senior management affirm the authenticity, accuracy, and completeness of this semi-annual report and advise investors of potential risks - The company's Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the report's content and advise investors to be aware of the risks[4] - The company does not plan to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the current semi-annual period[5] Table of Contents This section presents the complete table of contents, covering eight main chapters including important notices, company profile, management discussion, and financial reports - The report's table of contents is clearly structured with eight main chapters for easy investor reference[7] Definitions This section provides definitions for frequently used terms in the report, including professional vocabulary and time-related concepts to ensure accurate understanding - The report provides definitions for multiple professional terms, including AI, machine vision, VCM, and VC, to ensure comprehension of the content[10] Section 2: Company Profile and Key Financial Indicators Company Profile Rongcheer Industrial Technology (Suzhou) Co, Ltd, stock code 301360, is listed on the Shenzhen Stock Exchange with Qian Shuguang as the legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Ticker | Rongcheer Tech | | Stock Code | 301360 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | 荣旗工业科技（苏州）股份有限公司 | | Legal Representative | Qian Shuguang | Contact Person and Contact Information The company's Board Secretary is Wang Guijie, with the contact address in Suzhou Industrial Park, Jiangsu Province, and email dongmiban@rongcheer.com Board Secretary Contact Information | Name | Wang Guijie | | :--- | :--- | | Contact Address | No 30, Songbei Road, Suzhou Industrial Park, Jiangsu Province | | Phone | 0512-67630197 | | Email | dongmiban@rongcheer.com | Other Information During the reporting period, there were no changes to the company's registered address, office address, website, or information disclosure locations, with the main change being the sponsor representative - The company's continuous supervision sponsor representative was changed from Wang Bo and Dai Yang to Wang Bo and Xu Linlin, which was disclosed on June 12, 2025[17] Key Accounting Data and Financial Indicators The company's revenue decreased by 10.65% YoY, and net profit attributable to shareholders dropped significantly by 137.13% to a loss due to seasonal equipment acceptance and reduced investment income Key Accounting Data and Financial Indicators (Current Period vs Prior Year Period) | Indicator | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 115,938,690.33 | 129,765,079.02 | -10.65% | | Net Profit Attributable to Shareholders | -5,167,334.12 | 13,918,146.38 | -137.13% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | -7,143,955.48 | 11,490,538.20 | -162.17% | | Net Cash Flow from Operating Activities | -38,537,259.76 | 36,521,043.07 | -205.52% | | Basic Earnings Per Share (CNY/share) | -0.10 | 0.26 | -138.46% | | Diluted Earnings Per Share (CNY/share) | -0.10 | 0.26 | -138.46% | | Weighted Average Return on Equity | -0.44% | 1.20% | -1.64% | Key Financial Indicators (End of Current Period vs End of Prior Year) | Indicator | End of Current Period (CNY) | End of Prior Year (CNY) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 1,489,804,848.13 | 1,415,595,865.41 | 5.24% | | Net Assets Attributable to Shareholders | 1,144,544,586.48 | 1,168,304,243.37 | -2.03% | - The decline in net profit attributable to parent company is mainly due to decreased revenue (seasonal impact on equipment acceptance, fewer projects with lower gross margins) and reduced income from wealth management products (structured deposits maturing in H2)[18][19] - Despite the revenue decrease, overall shipments increased by approximately 40.08% and orders on hand grew by about 135.34% year-over-year[19] - Net cash flow from operating activities decreased significantly by 205.52%, primarily due to increased cash payments for inventory stocking driven by higher shipment volumes[18][19] Differences in Accounting Data under Domestic and Foreign Accounting Standards There were no discrepancies in net profit or net assets between financial reports prepared under Chinese accounting standards and those under international or foreign accounting standards - The company had no discrepancies in accounting data under domestic and foreign accounting standards during the reporting period[20][21] Non-recurring Profit and Loss Items and Amounts Non-recurring profit and loss for the reporting period totaled CNY 1,976,621.36, primarily from government grants and gains on financial assets Non-recurring Profit and Loss Items and Amounts | Item | Amount (CNY) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | -16,378.66 | | Government Grants Recognized in Current Profit or Loss | 2,075,554.93 | | Fair Value Changes and Disposal Gains/Losses on Financial Assets and Liabilities Held by Non-financial Enterprises | 210,620.03 | | Other Non-operating Income and Expenses | 57,588.01 | | Less: Income Tax Impact | 350,762.95 | | Total | 1,976,621.36 | Section 3: Management Discussion and Analysis Principal Business Activities During the Reporting Period The company specializes in the R&D, design, production, and sale of intelligent equipment, focusing on inspection and assembly processes in smart manufacturing - The company's main business is the R&D, design, production, sales, and technical services of intelligent equipment, focusing on inspection and assembly processes in smart manufacturing[26] - The core products are AI-based visual inspection equipment capable of online, real-time intelligent detection of complex surface defects[27] Company's Main Products The company develops three product series—visual inspection, functional testing, and intelligent assembly equipment—to meet high-precision demands in consumer electronics and new energy industries - The company's products are categorized into three series: visual inspection equipment (core is AI appearance inspection), functional testing equipment, and intelligent assembly equipment[27][28] - The AI appearance inspection equipment utilizes self-developed light sources and customized imaging sensors, combined with AI algorithms, to significantly improve detection accuracy[27] Company's Business Model The company operates a closed-loop business model of "demand mining, design, software development, manufacturing, and service," with a flexible, build-to-order production and direct sales approach - The company's business model is a closed loop of "demand mining, institutional design, software development, manufacturing and debugging, and upgrade services"[30] - The R&D model is market-oriented, focusing on serving the consumer electronics and new energy industries, and collaborates with universities on AI technology, publishing papers at CVPR[30][31] - The production model is a flexible "build-to-order" system, managed uniformly through an ERP system[32] - The sales model is direct, having established partnerships with top-tier clients like Apple, META, and CATL[33] Industry Development The intelligent equipment industry is characterized by high technical integration and customization, with the global smart manufacturing market projected to reach $479.17 billion by 2029 - The global smart manufacturing market is projected to grow from $233.33 billion in 2024 to $479.17 billion in 2029, at a CAGR of 15.5%[34] - China's smart manufacturing equipment market reached CNY 3.2 trillion in 2023 and is expected to reach CNY 3.4 trillion in 2024[34] - The deep integration of machine vision and AI technology is a key driver for industrial automation and smart manufacturing, enhancing the precision and efficiency of industrial quality inspection[35] Market Position and Key Performance Drivers The company is a key player in China's smart manufacturing and inspection sectors, holding a leading position in niche markets and maintaining stable partnerships with industry leaders - Several of the company's products have received national or provincial recognition, such as the "Ultra-high-speed Multi-dimensional Sensing New Energy Battery Winding Process and Cell AI Inspection Equipment" being selected for a national innovation product catalog[36] - In H1 2025, the "Industrial Product Surface Defect Detection Large Model" was selected as a "Suzhou Municipal-level Cultivated Artificial Intelligence Large Model"[36] - The company has established strong cooperative relationships with major consumer electronics companies like Apple and Amazon, as well as EMS/new energy enterprises such as Luxshare Precision and CATL[37] - Performance growth is primarily driven by maintaining a leading position in niche markets like consumer electronics wireless charging, VCM, and VC inspection, as well as technological breakthroughs in AI-based quality inspection for new energy lithium batteries[37] Core Competitiveness Analysis The company's core competitiveness lies in its strong R&D capabilities, high-performance products, stable customer base, and efficient customer service Technological R&D Advantages The company prioritizes R&D with 194 personnel, holding 230 patents and 119 software copyrights, and collaborates with top institutions on AI technology applications - As of June 30, 2025, the company had 194 R&D personnel, accounting for 25.70% of the total workforce[38] - In H1 2025, the company obtained 14 new patents (5 invention patents), bringing the cumulative total to 230 patents (77 invention patents) and 119 software copyrights[38] - The "Industrial Product Surface Defect Detection Large Model" was selected as a "Suzhou Municipal-level Cultivated Artificial Intelligence Large Model," and the company co-published two papers on the Real-IAD dataset at CVPR with institutions like Shanghai Jiao Tong University and Tencent Youtu[39][41] - In consumer electronics, the company maintains its position as a core supplier for wireless charging, VCM, and VC heat sink inspection, while expanding its intelligent assembly equipment business; in the new energy sector, orders for lithium battery AI quality inspection equipment continue to grow[40] Product Advantages The company's products offer performance advantages in consistency, stability, and efficiency, with AI-based visual inspection equipment capable of fully replacing manual inspection - The company's products are stable, highly efficient, and accurate, with AI-based visual inspection equipment capable of fully replacing manual inspection for complex surface defects[41] - The company has the ability to respond quickly to customer needs, especially by delivering on-demand before new product launches in the consumer electronics industry, which is crucial for market competitiveness[42] Customer Resource Advantages The company has established a strong market reputation and brand image, fostering long-term, stable partnerships with global consumer electronics leaders and major EMS/new energy enterprises - The company has established long-term, friendly cooperative relationships with global consumer electronics leaders like Apple and META, as well as major EMS/new energy enterprises such as Luxshare Precision, Goertek, and CATL, resulting in strong customer loyalty[42] Service Advantages The company's professional service team provides 724 after-sales support and customized services, enhancing customer satisfaction and guiding future product development - The company provides **724 after-sales support** and customized services, enhancing customer satisfaction and loyalty while guiding pre-research for technology products[43] Analysis of Main Business Operations Revenue decreased by 10.65% YoY due to equipment acceptance timing, while operating cash flow fell sharply by 205.52% from increased inventory stocking Year-on-Year Changes in Key Financial Data Operating revenue declined 10.65% due to project acceptance timing, while financial expenses rose 66.12% from lower interest income, and operating cash flow dropped 205.52% Year-on-Year Changes in Key Financial Data | Item | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 115,938,690.33 | 129,765,079.02 | -10.65% | Impact of equipment acceptance schedule | | Operating Costs | 72,433,336.06 | 67,844,661.54 | 6.76% | - | | Selling Expenses | 22,189,157.82 | 22,560,434.29 | -1.65% | - | | Administrative Expenses | 9,552,765.46 | 10,147,084.71 | -5.86% | - | | Financial Expenses | -3,531,052.66 | -10,422,179.94 | 66.12% | Decrease in interest income | | Income Tax Expense | -4,622,476.19 | -180,334.09 | -2,463.28% | Impact of total profit | | R&D Investment | 27,744,665.41 | 31,145,036.71 | -10.92% | Higher share-based payment expenses in the prior year period | | Net Cash Flow from Operating Activities | -38,537,259.76 | 36,521,043.07 | -205.52% | Increased payments to suppliers due to higher shipment volume | | Net Cash Flow from Investing Activities | -426,182,347.03 | -59,239,126.03 | -619.43% | Increased purchases of structured deposits | | Net Cash Flow from Financing Activities | -9,402,457.23 | -106,884,248.83 | 91.20% | Decreased repayment of bank loans | | Net Increase in Cash and Cash Equivalents | -474,602,893.35 | -129,337,877.98 | -266.95% | Increased purchases of structured deposits | | Credit Impairment Loss | 3,697,643.11 | 1,860,574.26 | 98.74% | Reversal of credit impairment upon receiving customer payments | | Asset Impairment Loss | -3,240,101.64 | -1,029,531.48 | -214.72% | Increased provision for inventory write-down | Products or Services Accounting for Over 10% of Revenue Intelligent equipment revenue fell 19.57% with a 9.24% drop in gross margin, while jigs and accessories revenue grew 122.57% but saw its gross margin decline by 12.99% Products or Services Accounting for Over 10% of Revenue | Product/Service | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Margin | Revenue YoY Change | Cost YoY Change | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Intelligent Equipment | 97,833,512.40 | 59,942,729.02 | 38.73% | -19.57% | -5.29% | -9.24% | | Of which: Intelligent Inspection Equipment | 81,271,569.79 | 50,859,779.52 | 37.42% | -19.71% | -2.44% | -11.08% | | Intelligent Assembly Equipment | 16,561,942.61 | 9,082,949.50 | 45.16% | -18.89% | -18.60% | -0.20% | | Jigs and Accessories | 18,078,643.49 | 12,490,607.04 | 30.91% | 122.57% | 174.12% | -12.99% | | Total | 115,912,155.89 | 72,433,336.06 | 37.51% | -10.68% | 6.76% | -10.21% | - The overall gross margin decreased by 10.21%, primarily because the total revenue recognized from project acceptances was low, making the impact of gross margin fluctuations from individual projects (such as prototypes) more significant[48] Analysis of Non-Main Business Operations The company had no non-main business revenue during the reporting period - The company had no non-main business revenue during the reporting period[49] Analysis of Assets and Liabilities Total assets grew 5.24% while net assets decreased 2.03%, with a significant 34.67% drop in cash and equivalents due to increased investment in structured deposits Significant Changes in Asset Composition Cash and equivalents as a percentage of total assets fell by 34.67% due to structured deposit purchases, while inventory's share rose by 11.94% from increased stocking Significant Changes in Asset Composition | Item | End of Current Period Amount (CNY) | % of Total Assets | End of Prior Year Amount (CNY) | % of Total Assets | Change in Proportion | Reason for Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 389,321,963.73 | 26.13% | 860,733,504.32 | 60.80% | -34.67% | Increased purchases of structured deposits | | Inventory | 320,492,476.83 | 21.51% | 135,528,526.00 | 9.57% | 11.94% | Increased stocking due to higher shipment volume | | Contract Liabilities | 59,818,532.54 | 4.02% | 15,112,239.02 | 1.07% | 2.95% | Increased advance payments for projects not yet recognized as revenue | | Trading Financial Assets | 396,000,000.00 | 26.58% | - | - | 26.58% | Purchase of structured deposits | Assets and Liabilities Measured at Fair Value At the end of the reporting period, financial assets measured at fair value totaled CNY 399,608,379.83, primarily consisting of trading financial assets and notes receivable financing Assets and Liabilities Measured at Fair Value (End of Period) | Item | Opening Balance (CNY) | Purchases During the Period (CNY) | Sales During the Period (CNY) | Closing Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | - | 419,000,000.00 | 23,000,000.00 | 396,000,000.00 | | Notes Receivable Financing | 15,221,687.49 | - | 3,608,379.83 | - | | Total | 15,221,687.49 | 419,000,000.00 | 26,608,379.83 | 399,608,379.83 | Restricted Assets as of the Reporting Period End As of June 30, 2025, CNY 712,015.19 of the company's funds were restricted, representing funds in transit from an overseas subsidiary - As of June 30, 2025, CNY 712,015.19 of the company's funds were restricted, representing funds in transit from an overseas subsidiary[53] Investment Analysis Investment amount surged by 11,705.91% due to increased purchases of structured deposits, with 21.14% of raised funds utilized to date Overall Situation The investment amount for the reporting period was CNY 19,215,324.99, an increase of 11,705.91% compared to the same period last year Investment Amount for the Reporting Period | Indicator | Amount (CNY) | | :--- | :--- | | Investment Amount for the Reporting Period | 19,215,324.99 | | Investment Amount for the Same Period Last Year | 162,760.28 | | Change | 11,705.91% | Financial Assets Measured at Fair Value The company purchased CNY 419,000,000.00 and sold CNY 23,000,000.00 of trading financial assets, resulting in a period-end balance of CNY 396,000,000.00 Financial Assets Measured at Fair Value (Trading Financial Assets) | Indicator | Amount (CNY) | | :--- | :--- | | Initial Investment Cost | 419,000,000.00 | | Purchases During the Period | 419,000,000.00 | | Sales During the Period | 23,000,000.00 | | Cumulative Investment Income | 208,669.03 | | Period-end Amount | 396,000,000.00 | | Source of Funds | Raised funds | Use of Raised Funds As of June 30, 2025, the company had utilized 21.14% of the net proceeds from its IPO, with the majority allocated to the smart measurement and control equipment R&D center Overall Use of Raised Funds | Indicator | Amount (ten thousand CNY) | | :--- | :--- | | Net Raised Funds | 85,860.09 | | Total Raised Funds Used This Period | 254.20 | | Cumulative Raised Funds Used | 18,153.87 | | Raised Funds Utilization Rate at Period-end | 21.14% | | Total Unused Raised Funds | 58,430.09 | Committed Investment Projects for Raised Funds | Committed Investment Project | Adjusted Committed Investment Amount (ten thousand CNY) | Cumulative Investment Amount at Period-end (ten thousand CNY) | Investment Progress at Period-end | | :--- | :--- | :--- | :--- | | Smart Measurement and Control Equipment R&D and Manufacturing Center Project | 23,223.30 | 12,115.31 | 52.17% | | Supplementary Working Capital | 6,000.00 | 6,038.56 | 100.64% | | Subtotal of Committed Investment Projects | 29,223.30 | 18,153.87 | - | | Use of Excess Raised Funds (Unspecified) | 56,636.79 | 0 | 0.00% | - The Smart Measurement and Control Equipment R&D and Manufacturing Center project is currently under construction and has not yet reached its intended operational state[64] - As of June 30, 2025, the balance of idle raised funds (including excess funds) used for cash management was CNY 567.18 million[64] Entrusted Wealth Management, Derivatives Investment, and Entrusted Loans The company engaged in entrusted wealth management with a total amount of CNY 722.07 million, with an outstanding balance of CNY 685.49 million, primarily in bank wealth management products Overview of Entrusted Wealth Management During the Reporting Period | Specific Type | Source of Funds | Amount Incurred (ten thousand CNY) | Outstanding Balance (ten thousand CNY) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Raised funds | 57,717.99 | 56,717.99 | | Bank Wealth Management Products | Own funds | 14,489.32 | 11,831.46 | | Total | - | 72,207.31 | 68,549.45 | - The company had no derivatives investments or entrusted loans[72][73] Sale of Major Assets and Equity The company did not sell any major assets or equity during the reporting period - The company did not sell any major assets or equity during the reporting period[74][75] Analysis of Major Holding and Participating Companies The company's main subsidiary, Suzhou Yousu Software R&D Co, Ltd, reported a net loss of CNY 3,649.61 for the period Major Subsidiaries | Company Name | Company Type | Main Business | Registered Capital (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | | Suzhou Yousu Software R&D Co, Ltd | Subsidiary | Software R&D | 2,000,000.00 | -3,649.61 | - The company did not acquire or dispose of any subsidiaries during the reporting period[76] Risks and Countermeasures The company faces risks in technology innovation, gross margin decline, accounts receivable, customer concentration, and market competition, which are addressed through various strategic measures - Technology Innovation Risk: The rapid iteration of technology in the intelligent equipment industry poses a risk of being replaced or becoming obsolete; the countermeasure is to continuously improve technology and increase R&D investment to maintain advantages in consumer electronics and new energy sectors[76][77] - Gross Margin Decline Risk: The relatively lower gross margins in the new energy power battery intelligent equipment industry and the entry of new competitors may intensify competition; countermeasures include strengthening cost and expense management, consolidating R&D capabilities, and increasing product development and market expansion efforts[77][78] - Accounts Receivable Risk: The large book value of accounts receivable poses a risk of non-payment if customers' financial conditions deteriorate; countermeasures include strengthening the collection of overdue accounts and enhancing customer credit rating to reduce bad debt risk[78][79] - Customer Concentration Risk: Dependence on major customers like Apple and CATL means that fluctuations in their demand or changes in the cooperative relationship could impact performance; the countermeasure is to actively explore new fields and customers to diversify revenue sources79 - Apple Supply Chain Relocation Risk: Apple's production shift to Southeast Asia and India could affect market share; the countermeasure is to accelerate international expansion, with branches already established in Vietnam, the US, and Hong Kong[80] - Market Competition Risk: Intensified competition in niche markets could lead to declines in product prices, revenue, and gross margins; countermeasures include increasing R&D investment, technological innovation, cultivating an independent brand, and actively expanding domestic and international markets to enhance brand influence[81] Record of Investor Relations Activities The company conducted an online investor relations event on April 29, 2025, via the Shenzhen Stock Exchange's "Easy Interaction" platform for its 2024 annual results presentation - The company participated in the 2024 annual results presentation online via the "Easy Interaction" platform on April 29, 2025[82] 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 nor disclosed a valuation enhancement plan[83] Implementation of 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 - The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan[83] Section 4: Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, or senior management during the reporting period - There were no changes in the company's directors, supervisors, or senior management during the reporting period[84] Profit Distribution and Capitalization of Capital Reserves The company does not plan to distribute cash dividends, issue bonus shares, or capitalize capital reserves for the current semi-annual period - The company plans not to distribute cash dividends, issue bonus shares, or capitalize capital reserves for the semi-annual period[85] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentives The company implemented its 2025 Restricted Stock Incentive Plan in May, granting 853,000 shares to 36 participants at a price of CNY 41.99 per share - The company approved and implemented the 2025 Restricted Stock Incentive Plan in May 2025[86][87] - A total of 853,000 restricted shares were granted to 36 incentive participants at a grant price of CNY 41.99 per share, with the grant date being May 28, 2025[88] - This equity incentive will vest in three tranches, with vesting proportions of 40%, 30%, and 30% respectively[132] Environmental Information Disclosure The company and its main subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The company and its main subsidiaries are not included in the list of enterprises required to disclose environmental information by law[90] Social Responsibility The company actively fulfills its social responsibilities, with a management system compliant with SA8000 standards and certifications in environmental management and intellectual property - The company's social responsibility management system complies with the requirements of the SA8000 standard[90] - The company is ISO14001 certified for its environmental management system and improves energy efficiency through its self-built photovoltaic power generation project[91] - The company strictly fulfills its information disclosure obligations and strengthens communication with investors through investor surveys, dedicated phone lines, and online interactive platforms[92] - The company is GB/T29490 certified for its intellectual property management system and has formulated multiple intellectual property management regulations[94] Section 5: Important Matters Commitments All commitments made by the company and its key stakeholders during its IPO are being duly fulfilled, covering share lock-ups, shareholding intentions, and price stabilization measures - The company's actual controllers, Qian Shuguang, Wang Lusheng, and Zhu Wenbing, have committed not to transfer their pre-IPO shares within 36 months of the company's listing and to comply with reduction regulations[96] - The company and its actual controllers, directors, and senior management have all committed to taking measures such as share buybacks and increasing holdings to stabilize the stock price if the conditions for a price stabilization plan are met[100][102] - The company and its actual controllers have committed to initiating a share buyback procedure in the event of fraudulent issuance[104] - The company, its controlling shareholders, actual controllers, directors, and senior management have all committed to taking measures to compensate for diluted immediate returns and to improve operational performance[104][106] - The controlling shareholders and actual controllers, Qian Shuguang, Wang Lusheng, and Zhu Wenbing, have committed to avoiding horizontal competition, regulating related-party transactions, and preventing the misappropriation of funds[110][112] - Commitments related to the 2025 Restricted Stock Incentive Plan are being fulfilled, and the company will not provide financial assistance to the incentive participants[114] Non-operational Use of Funds by Controlling Shareholders and Other Related Parties There was no non-operational use of the company's funds by controlling shareholders or other related parties during the reporting period - There was no non-operational use of the company's funds by controlling shareholders or other related parties during the reporting period[115] 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[116] Appointment and Dismissal of Accounting Firm The company's semi-annual financial report has not been audited - The company's semi-annual financial report has not been audited[117] Explanation of "Non-standard Audit Report" by the Board, Supervisory Committee, and Audit Committee There was no non-standard audit report during the reporting period - There was no non-standard audit report during the reporting period[118] Board's Explanation of "Non-standard Audit Report" from the Previous Year There is no explanation regarding a non-standard audit report from the previous year - There is no explanation regarding a non-standard audit report from the previous year[118] Bankruptcy and Reorganization Matters The company did not undergo any bankruptcy or reorganization during the reporting period - The company did not undergo any bankruptcy or reorganization during the reporting period[118] Litigation Matters The company had no major litigation or arbitration matters during the reporting period - The company had no major litigation or arbitration matters during the reporting period[119] Penalties and Rectifications The company was not subject to any penalties or rectifications during the reporting period - The company was not subject to any penalties or rectifications during the reporting period[119] Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers The company, its controlling shareholders, and actual controllers maintained a good integrity status during the reporting period - The company, its controlling shareholders, and actual controllers maintained a good integrity status during the reporting period[120] Major Related-Party Transactions The company had no major related-party transactions related to daily operations, asset acquisitions or sales, joint investments, or creditor-debtor relationships during the reporting period - The company had no major related-party transactions of any kind during the reporting period, including those related to daily operations, assets/equity, joint investments, creditor-debtor relationships, or transactions with financial companies[121][122][123][124][125][126][127] Major Contracts and Their Performance The company had no major contracts for custody, contracting, guarantees, or other significant agreements during the reporting period - The company had no major contracts for custody, contracting, guarantees, daily operations, or other significant agreements during the reporting period[128][129][130][132][133][134] - The company leases office buildings for operational needs, and the leasing expenses did not have a significant impact on the profit for the reporting period[131] Explanation of Other Major Matters There were no other major matters requiring explanation during the reporting period - There were no other major matters requiring explanation during the reporting period[135] Major Matters of Subsidiaries There were no major matters concerning the company's subsidiaries during the reporting period - There were no major matters concerning the company's subsidiaries during the reporting period[136] Section 6: Share Capital Changes and Shareholder Information Changes in Share Capital The company's total share capital remained unchanged at 53,340,000 shares, with 52.27% being restricted shares and 47.73% being unrestricted shares Changes in Share Capital (Current Reporting Period) | Share Type | Quantity Before Change (shares) | Proportion Before Change | Change (+/-) (shares) | Quantity After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 27,880,000 | 52.27% | 0 | 27,880,000 | 52.27% | | II. Unrestricted Shares | 25,460,000 | 47.73% | 0 | 25,460,000 | 47.73% | | III. Total Shares | 53,340,000 | 100.00% | 0 | 53,340,000 | 100.00% | - During the reporting period, the company's total share capital did not change, and information regarding the reasons for changes, approvals, transfers, buyback progress, and impact on financial indicators is not applicable[139][140] Securities Issuance and Listing The company did not issue or list any securities during the reporting period - The company did not issue or list any securities during the reporting period[140] Number of Shareholders and Shareholding Status At the end of the reporting period, there were 8,243 common shareholders, with the top three shareholders being the company's co-actual controllers - At the end of the reporting period, the total number of common shareholders was 8,243[141] Shareholding of Top 10 Shareholders or Those Holding Over 5% | Shareholder Name | Shareholder Nature | Shareholding Ratio | Shares Held at Period-end (shares) | Change During Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Qian Shuguang | Domestic Natural Person | 17.55% | 9,360,000 | 0 | 9,360,000 | 0 | | Wang Lusheng | Domestic Natural Person | 17.55% | 9,360,000 | 0 | 9,360,000 | 0 | | Zhu Wenbing | Domestic Natural Person | 12.79% | 6,820,000 | 0 | 6,820,000 | 0 | | Liu Hongzhe | Domestic Natural Person | 4.48% | 2,391,700 | -533,300 | 2,193,750 | 197,950 | | Shanghai Tengqi Enterprise Management Consulting Partnership (LP) | Domestic Non-state-owned Legal Entity | 3.07% | 1,636,500 | -530,400 | 0 | 1,636,500 | | Luo Shishuai | Domestic Natural Person | 2.94% | 1,565,957 | -166,100 | 0 | 1,565,957 | - Qian Shuguang, Wang Lusheng, and Zhu Wenbing have signed a "Concerted Action Agreement" and are the co-actual controllers of the company[141] Changes in Shareholdings of Directors, Supervisors, and Senior Management Director Liu Hongzhe reduced his shareholding by 533,300 shares, while other directors, supervisors, and senior management's holdings remained unchanged Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Shares Held at Beginning of Period (shares) | Shares Reduced During Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Qian Shuguang | Chairman, General Manager | 9,360,000 | - | 9,360,000 | | Wang Lusheng | Director, Deputy General Manager | 9,360,000 | - | 9,360,000 | | Zhu Wenbing | Director, Deputy General Manager | 6,820,000 | - | 6,820,000 | | Wang Guijie | Director, Deputy GM, CFO, Board Secretary | 195,000 | - | 195,000 | | Liu Hongzhe | Director | 2,925,000 | 533,300 | 2,391,700 | | Total | - | 28,660,000 | 533,300 | 28,126,700 | Changes in Controlling Shareholder or Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period - There was no change in the company's controlling shareholder during the reporting period[146] - There was no change in the company's actual controller during the reporting period[146] Preferred Stock Information The company had no preferred stock during the reporting period - The company had no preferred stock during the reporting period[147] Section 7: Bond-related Matters Bond-related Matters The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[149] Section 8: Financial Report Audit Report The company's semi-annual financial report has not been audited - The company's semi-annual financial report has not been audited[151] Financial Statements This section provides the consolidated and parent company financial statements for the first half of 2025, detailing the financial position, operating results, and cash flows Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were CNY 1.49 billion, with total liabilities of CNY 345.26 million and total equity of CNY 1.14 billion Key Data from Consolidated Balance Sheet (June 30, 2025) | Item | Closing Balance (CNY) | Opening Balance (CNY) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 389,321,963.73 | 860,733,504.32 | | Trading Financial Assets | 396,000,000.00 | - | | Accounts Receivable | 184,257,873.67 | 233,893,025.77 | | Inventory | 320,492,476.83 | 135,528,526.00 | | Total Assets | 1,489,804,848.13 | 1,415,595,865.41 | | Short-term Borrowings | 20,104,764.03 | 10,100,074.86 | | Contract Liabilities | 59,818,532.54 | 15,112,239.02 | | Total Liabilities | 345,260,261.65 | 247,291,622.04 | | Total Equity Attributable to Parent Company | 1,144,544,586.48 | 1,168,304,243.37 | Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were CNY 1.49 billion, with total liabilities of CNY 388.38 million and total equity of CNY 1.10 billion Key Data from Parent Company Balance Sheet (June 30, 2025) | Item | Closing Balance (CNY) | Opening Balance (CNY) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 374,780,498.30 | 844,437,502.09 | | Trading Financial Assets | 396,000,000.00 | - | | Accounts Receivable | 184,344,063.99 | 233,557,296.73 | | Inventory | 320,718,129.18 | 134,897,155.89 | | Total Assets | 1,488,910,438.01 | 1,410,996,086.22 | | Short-term Borrowings | 20,104,764.03 | 100,074.86 | | Contract Liabilities | 59,818,532.54 | 15,112,239.02 | | Total Liabilities | 388,381,635.07 | 289,305,969.45 | | Total Equity | 1,100,528,802.94 | 1,121,690,116.77 | Consolidated Income Statement For the first half of 2025, the company's consolidated total operating revenue was CNY 115.94 million, a 10.65% YoY decrease, resulting in a net loss of CNY 5.17 million Key Data from Consolidated Income Statement (H1 2025) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 115,938,690.33 | 129,765,079.02 | | Total Operating Costs | 129,379,834.60 | 122,101,829.69 | | Operating Profit | -9,839,365.45 | 13,671,759.21 | | Total Profit | -9,789,810.31 | 13,737,812.29 | | Net Profit | -5,167,334.12 | 13,918,146.38 | | Net Profit Attributable to Parent Company Shareholders | -5,167,334.12 | 13,918,146.38 | | Basic Earnings Per Share (CNY/share) | -0.10 | 0.26 | | Diluted Earnings Per Share (CNY/share) | -0.10 | 0.26 | Parent Company Income Statement For the first half of 2025, the parent company's operating revenue was CNY 113.84 million, a 12.58% YoY decrease, resulting in a net loss of CNY 2.86 million Key Data from Parent Company Income Statement (H1 2025) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Operating Revenue | 113,836,734.28 | 130,219,614.00 | | Operating Costs | 79,639,444.93 | 85,001,025.69 | | Operating Profit | -6,383,927.52 | 6,803,704.59 | | Total Profit | -6,326,760.29 | 6,869,757.67 | | Net Profit | -2,857,778.55 | 7,250,942.71 | Consolidated Cash Flow Statement Net cash flow from operating activities was -CNY 38.54 million, a 205.52% YoY decrease, while net cash flow from investing activities was -CNY 426.18 million Key Data from Consolidated Cash Flow Statement (H1 2025) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -38,537,259.76 | 36,521,043.07 | | Net Cash Flow from Investing Activities | -426,182,347.03 | -59,239,126.03 | | Net Cash Flow from Financing Activities | -9,402,457.23 | -106,884,248.83 | | Net Increase in Cash and Cash Equivalents | -474,602,893.35 | -129,337,877.98 | | Closing Balance of Cash and Cash Equivalents | 384,556,335.16 | 736,686,106.33 | Parent Company Cash Flow Statement The parent company's net cash flow from operating activities was -CNY 46.40 million, a 226.81% YoY decrease, and net cash flow from investing activities was -CNY 427.42 million Key Data from Parent Company Cash Flow Statement (H1 2025) | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -46,402,446.98 | 36,606,400.73 | | Net Cash Flow from Investing Activities | -427,417,296.53 | -57,357,880.36 | | Net Cash Flow from Financing Activities | 1,184,686.53 | -106,623,416.81 | | Net Increase in Cash and Cash Equivalents | -472,848,356.55 | -127,071,999.48 | | Closing Balance of Cash and Cash Equivalents | 370,014,869.73 | 731,828,578.06 | Consolidated Statement of Changes in Equity Consolidated total equity decreased by CNY 23.76 million, primarily due to a comprehensive loss of CNY 5.46 million and profit distribution of CNY 18.67 million Key Data from Consolidated Statement of Changes in Equity (H1 2025) | Item | Opening Balance (CNY) | Change During Period (CNY) | Closing Balance (CNY) | | :--- | :--- | :--- | :--- | | Share Capital | 53,340,000.00 | - | 53,340,000.00 | | Capital Reserve | 877,352,296.83 | 365,464.73 | 877,717,761.56 | | Other Comprehensive Income | -149,247.56 | -288,787.50 | -438,035.06 | | Retained Earnings | 213,886,212.11 | -23,836,334.12 | 190,049,877.99 | | Total Equity Attributable to Parent Company | 1,168,304,243.37 | -23,759,656.89 | 1,144,544,586.48 | Parent Company Statement of Changes in Equity The parent company's total equity decreased by CNY 21.16 million, mainly due to a comprehensive loss of CNY 2.86 million and profit distribution of CNY 18.67 million Key Data from Parent Company Statement of Changes in Equity (H1 2025) | Item | Opening Balance (CNY) | Change During Period (CNY) | Closing Balance (CNY) | | :--- | :--- | :--- | :--- | | Share Capital | 53,340,000.00 | - | 53,340,000.00 | | Capital Reserve | 877,352,296.83 | 365,464.72 | 877,717,761.55 | | Retained Earnings | 167,122,837.95 | -21,526,778.55 | 145,596,059.40 | | Total Equity | 1,121,690,116.77 | -21,161,313.83 | 1,100,528,802.94 | Company Basic Information Rongcheer Industrial Technology (Suzhou) Co, Ltd was established in 2018 and listed on the Shenzhen Stock Exchange's ChiNext board in April 2023 - The company was established on October 30, 2018, and listed on the ChiNext board of the Shenzhen Stock Exchange in April 2023, with a registered capital of CNY 53.34 million[189] - The company is primarily engaged in the R&D, production, and sales of intelligent equipment and jigs, with no changes to its main business operations[190] Basis of Preparation for Financial Statements The financial statements are prepared on a going concern basis in accordance with the Enterprise Accounting Standards issued by the Ministry of Finance - The company prepares its financial statements on a going concern basis in accordance with the Enterprise Accounting Standards[192] - The company has assessed its ability to continue as a going concern for at least 12 months from the end of the reporting period and has found no matters that would affect this ability[193] Significant Accounting Policies and Estimates This section details the company's significant accounting policies and estimates, including revenue recognition, financial instruments, inventory valuation, and fixed assets - The company's financial statements comply with the requirements of the Enterprise Accounting Standards, providing a true and complete reflection of its financial position, operating results, and cash flows[195] - Based on its actual production and operational characteristics, the company has formulated specific accounting policies and estimates for areas such as financial instrument impairment, inventory accounting, fixed asset depreciation, intangible asset amortization, and revenue recognition[194] - For the provision for bad debts on accounts receivable, the company uses the aging analysis method, with a provision rate of 5% for receivables within one year[231][232] - The company's revenue recognition method is as follows: for intelligent equipment, revenue is recognized upon delivery, installation, commissioning, and customer acceptance; for jigs and accessories, revenue is recognized upon customer receipt[290] Taxes The company is subject to VAT, corporate income tax, and other taxes, and benefits from several preferential tax policies, including a reduced 15% income tax rate for high-tech enterprises Main Taxes and Tax Rates | Tax Type | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 13%, 6% | | Urban Maintenance and Construction Tax | 7%, 5% | | Corporate Income Tax | 25% | | Education Surcharge | 5% | - The company and its subsidiaries enjoy a preferential corporate income tax rate of 15% as high-tech enterprises[309] - Subsidiaries Suzhou Coloni Automation Co, Ltd and Yaoqi Technology (Ningde) Co, Ltd are subject to a preferential corporate income tax rate of 5%-20% as small and micro enterprises[309] - From January 1, 2023, to December 31, 2027, the company is eligible for a 5% additional VAT deduction as an advanced manufacturing enterprise[310] - The subsidiary Suzhou Yousu Software R&D Co, Ltd benefits from a VAT refund policy for software products[310] Notes to Consolidated Financial Statement Items This section provides detailed disclosures on various items in the consolidated financial statements, including cash, receivables, inventory, fixed assets, and liabilities - Cash and cash equivalents at period-end were CNY 389 million, with CNY 9.25 million held overseas[312] - Trading financial assets at period-end were CNY 396 million, consisting entirely of structured deposits[314] - Accounts receivable at period-end were CNY 184 million, with a bad debt provision of CNY 13.23 million, representing a provision rate of 6.70%[324] - Inventory at period-end was CNY 320 million, a 136.48% increase from the beginning of the period, primarily due to a significant rise in work-in-progress and finished goods sent out[360] - Long-term equity investments at period-end were CNY 18.00 million, mainly representing an investment in the associate Jiangsu Suzhou Shanshui Junhua Equity Investment Partnership (LP)[373] - Deferred tax assets at period-end were CNY 9.46 million, a 99.22% increase from the beginning of the period, mainly due to un-remedied losses and share-based payments[391][396] - Accounts payable at period-end were CNY 185 million, a 66.19% increase from the beginning of the period, primarily due to increased payables for materials and labor services[408] - Contract liabilities at period-end were CNY 59.82 million, a 296.41% increase from the beginning of the period, mainly due to increased advance payments from customers[417] - R&D expenses for the period were CNY 27.74 million, a 10.92% decrease year-over-year, primarily consisting of employee compensation and material costs[456] Cash and Cash Equivalents The closing balance of cash and cash equivalents was CNY 389.32 million, a significant decrease from the opening balance of CNY 860.73 million Cash and Cash Equivalents | Item | Closing Balance (CNY) | Opening Balance (CNY) | | :--- | :--- | :--- | | Cash on Hand | 45,801.43 | 58,439.59 | | Bank Deposits | 384,510,533.73 | 859,100,788.92 | | Other Cash Equivalents | 4,765,628.57 | 1,574,275.81 | | Total | 389,321,963.73 | 860,733,504.32 | | Of which: Total funds held overseas | 9,247,860.10 | 10,351,903.73 | Trading Financial Assets The closing balance of trading financial assets was CNY 396,000,000.00, consisting entirely of structured deposits measured at fair value through profit or loss Trading Financial Assets | Item | Closing Balance (CNY) | Opening Balance (CNY) | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | 396,000,000.00 | - | | Of which: Structured Deposits | 396,000,000.00 | - | | Total | 396,000,000.00 | - | Notes Receivable The closing balance of notes receivable was CNY 791,623.67, all of which were bank acceptance bills with minimal credit risk Notes Receivable by Category | Item | Closing Balance (CNY) | Opening Balance (CNY) | | :--- | :--- | :--- | | Bank Acceptance Bills | 791,623.67 | 956,658.10 | | Total | 791,623.67 | 956,658.10 | - The credit risk of the bank acceptance bills held by the company is extremely low, and no provision for bad debts has been made[320] Accounts Receivable The closing gross balance of accounts receivable was CNY 197.49 million, with a bad debt provision of CNY 13.23 million, representing a provision rate of 6.70% Accounts Receivable by Aging | Aging | Closing Gross Balance (CNY) | Opening Gross Balance (CNY) | | :--- | :--- | :--- | | Within 1 year (inclusive) | 148,590,468.60 | 180,950,912.19 | | 1 to 2 years | 45,668,600.20 | 66,359,185.02 | | 2 to 3 years | 1,894,567.08 | 2,281,954.73 | | Over 3 years | 1,338,048.73 | 1,338,048.73 | | Total | 197,491,684.61 | 250,930,100.67 | Bad Debt Provision for Accounts Receivable | Category | Closing Gross Balance (CNY) | Bad Debt Provision (CNY) | Provision Rate | | :--- | :--- | :--- | :--- | | Accounts receivable with provision for bad debts on a portfolio basis | 197,491,684.61 | 13,233,810.94 | 6.70% | - The bad debt provision for the current period was -CNY 3,803,263.96 (a reversal)[326] Top Five Debtors for Accounts Receivable and Contract Assets at Period-end | Debtor Name | Closing Balance of Accounts Receivable and Contract Assets (CNY) | Proportion of Total Closing Balance of Accounts Receivable and Contract Assets | | :--- | :--- | :--- | | Company 1 | 43,765,937.81 | 21.08% | | Company 2 | 33,226,763.31 | 16.00% | | Company 3 | 24,594,805.95 | 11.85% | | Company 4 | 11,800,980.00 | 5.68% | | Company 5 | 10,422,555.00 | 5.02% | | Total | 123,811,042.07 | 59.63% | Contract Assets The closing balance of contract assets was CNY 10.13 million, primarily consisting of unexpired warranty retention money, with a bad debt provision of CNY 506,674.66 Contract Assets | Item | Closing Gross Balance (CNY) | Bad Debt Provision (CNY) | Book Value (CNY) | | :--- | :--- | :--- | :--- | | Unexpired Warranty Retention Money | 10,133,493.23 | 506,674.66 | 9,626,818.57 | | Total | 10,133,493.23 | 506,674.66 | 9,626,818.57 | - The bad debt provision for cont