安靠智电(300617) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions Important Notes The board and management assure report accuracy; no half-year dividends or bonus shares are planned, and investors should review risk factors - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4] - Investors should pay attention to the risk factors and countermeasures outlined in 'Section III Management Discussion and Analysis, X. Risks Faced by the Company and Countermeasures'[3] Table of Contents This section outlines the report's eight main chapters, providing an overview from important notes to financial statements - The report comprises eight main chapters, covering important notes, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, and financial reports[6] Definitions This section defines abbreviations and professional terms, including company names and power industry concepts, for clear understanding - Defines abbreviations such as Ankura Smart Grid, State Grid, and Southern Grid[10] - Explains professional terms including medium and low voltage, high voltage, extra-high voltage, ultra-high voltage, new power system, GIL, GIS, integrated switch-transformer unit, smart modular substation, and three-phase common enclosure[10] Company Profile and Key Financial Indicators I. Company Profile This section provides basic company information, including stock details and legal representative, clarifying its identity and listing status - Stock abbreviation: Ankura Smart Grid, Stock code: 300617[13] - Stock listed on: Shenzhen Stock Exchange[13] - Legal representative: Chen Xiaoling[13] II. Contact Persons and Information This section provides contact details for the board secretary and securities representative, facilitating investor communication - Board Secretary: Jia Yun[14] - Contact address: No. 100 Tianmu Lake Avenue, Liyang City, Jiangsu Province[14] - Email: stock@ankura.com.cn[14] III. Other Information This section confirms no changes in company contact or registration, and specifies semi-annual report disclosure channels - The company's registered address, office address, website, and email remained unchanged during the reporting period[15] - Information disclosure website: Juchao Information Network (http://www.cninfo.com.cn/)[16](index=16&type=chunk) - The company's registration status remained unchanged during the reporting period[18] IV. Key Accounting Data and Financial Indicators This section presents H1 2025 key financial data, showing decreased revenue and net profit, but positive operating cash flow and slight asset growth Key Financial Data and Indicators (H1 2025 vs. Prior Year Period) | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-over-year change | | :--- | :--- | :--- | :--- | | Operating Revenue | 327,607,031.53 | 484,809,809.70 | -32.43% | | Net Profit Attributable to Shareholders of Listed Company | 66,035,324.68 | 106,816,818.58 | -38.18% | | Net Cash Flow from Operating Activities | 5,353,436.59 | -99,536,895.95 | 105.38% | | Basic Earnings Per Share (yuan/share) | 0.40 | 0.65 | -38.46% | | Weighted Average Return on Net Assets | 2.27% | 3.85% | -1.58% | | End of Current Reporting Period vs. End of Prior Year: | | | | | Total Assets | 3,687,119,598.80 | 3,639,760,301.57 | 1.30% | | Net Assets Attributable to Shareholders of Listed Company | 2,906,431,226.39 | 2,879,764,077.08 | 0.93% | V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards This section confirms no differences in net profit and net assets between Chinese and international/overseas accounting standards for the reporting period - The company's net profit and net assets reported under international accounting standards do not differ from those reported under Chinese accounting standards for the reporting period[20] - The company's net profit and net assets reported under overseas accounting standards do not differ from those reported under Chinese accounting standards for the reporting period[21] VI. Non-Recurring Gains and Losses and Amounts This section details the company's non-recurring gains and losses, totaling $14,358,440.95, with investment income from entrusted asset management being the largest contributor Non-Recurring Gains and Losses and Amounts (Unit: yuan) | Item | Amount | | :--- | :--- | | Disposal gains/losses of non-current assets | -449,973.65 | | Government grants recognized in current profit or loss | 977,041.80 | | Gains/losses from changes in fair value | -7,100,659.75 | | Gains/losses from entrusted investment or asset management | 23,429,491.27 | | Other non-operating income and expenses | 61,738.75 | | Less: Income tax impact | 2,578,778.24 | | Impact on minority interests (after tax) | -19,580.77 | | Total | 14,358,440.95 | Management Discussion and Analysis I. Main Businesses Engaged in by the Company During the Reporting Period The company focuses on cable connection systems, GIL systems, and smart modular substations, offering engineering, design, and construction services to support new power systems and carbon reduction goals - The company is dedicated to the innovative research and development of cable connection systems, GIL systems, and smart modular substation systems centered around "integrated switch-transformer units"[27] - Provides cable transmission, GIL transmission, smart modular substation system services, as well as general contracting, survey, design, and construction services for power engineering[27] (I) Overview of Main Businesses The company specializes in cable connection, GIL systems, and smart modular substations, aiming to support new power systems and carbon reduction through modular, standardized, compact, fully insulated, and underground products - Core products include modular, standardized, compact, fully insulated, and underground GIL and smart modular substations[27] - Holds Grade A qualifications for power engineering design, survey, construction general contracting, and consulting[27] (II) Main Products and Their Uses The company's main products include 1kV-750kV cable connection components, 10kV-1100kV GIL products (including the world's first 220kV three-phase common enclosure GIL), and smart modular substations, widely used in power, urban transmission, new energy, industrial, and data center sectors - Cable connection components: One of the few domestic enterprises capable of producing a full range of 1kV-750kV products, with 750kV ultra-high voltage cable connection components being the first to pass type tests[28] - GIL: International pioneer in 220kV three-phase common enclosure GIL, with full series production capability from 10kV-1100kV, offering approximately 30% lower comprehensive cost than traditional single-phase GIL[29] - Smart modular substations: Centered around the "integrated switch-transformer unit," reducing construction costs by 30%, saving 70% of land area, and shortening construction periods by 80%, applied in urban, emergency, data center, and new energy projects[31] (III) Business Model The company maintains an innovation-driven business model with independent R&D, production, sales, and after-sales service, primarily generating revenue from core product sales and power engineering services, utilizing a build-to-order and direct sales approach - Business philosophy: "Driving high-quality enterprise development through core technological innovation"[32] - Profit model: Selling cable connection components, GIL, smart modular substation products, and undertaking general contracting, survey, design, and construction services for power engineering[32] - R&D model: Independent R&D and customized R&D[32] - Production model: "Build-to-order with appropriate pre-production," with some non-core products outsourced for processing[32] - Sales model: Primarily through bidding, with direct sales dominating the domestic market[33] (IV) Market Position and Competition of Company Products The company holds a leading and first-mover advantage in cable connection components, GIL, and smart modular substations, with many products breaking foreign monopolies or being international firsts, while actively exploring new business models against a few major competitors - Cable connection components: Participates in national standard setting, 500kV products broke foreign monopoly, 750kV ultra-high voltage products were the first to pass type tests, and is one of the few domestic enterprises with 500kV operational experience[34] - GIL: Domestic pioneer in 220kV-1100kV GIL development, with 220kV three-phase common enclosure GIL being an international first, possessing extensive engineering experience and a first-mover advantage[35][36] - Smart modular substations: Centered around the "integrated switch-transformer unit," offering advantages in cost, land use, and construction period, and innovating new business models like leasing[36] (V) Main Performance Drivers The company's performance growth is driven by accelerated ultra-high voltage construction, urban grid upgrades, increased demand for distribution network expansion from new energy vehicles, and data center construction fueled by AI development - Accelerated ultra-high voltage construction: State Grid plans to build 38 ultra-high voltage transmission lines/sections during the "14th Five-Year Plan" period, with national new photovoltaic and wind power installations increasing by 107% and 99% year-on-year respectively in H1 2025[37] - Urban infrastructure construction: The Ministry of Housing and Urban-Rural Development and the National Development and Reform Commission issued the "14th Five-Year Plan for National Urban Infrastructure Construction," explicitly promoting resilient and smart urban power grid construction and distribution network expansion and upgrades[39] - Rapid growth of new energy vehicles: From January to June 2025, China's new energy vehicle production and sales reached 6.968 million and 6.937 million units, respectively, a 41.4% and 40.3% year-on-year increase, boosting demand for distribution network expansion[41] - Explosive growth of AI: Data center construction further increases urban power load, driving demand for high-power, high-density, high-efficiency, and high-reliability power supply, with the company's smart modular substation successfully demonstrated at Tencent Yizheng Data Center[42] II. Analysis of Core Competitiveness The company's core competitiveness lies in its technology, performance, and qualifications, as a national high-tech enterprise and industry champion with international leading ultra-high voltage power equipment technology, extensive project experience, and comprehensive power engineering qualifications - The company is a national high-tech enterprise, recognized by the Ministry of Industry and Information Technology as a single champion in the GIL industry and a national "specialized, refined, unique, and new small giant" enterprise[43] - The company's core competitiveness is primarily reflected in its technological advantages, performance advantages, and qualification advantages[43] 1. Technological Advantages The company possesses multiple internationally leading or pioneering core technologies in ultra-high voltage cable connection components, GIL, and smart modular substations, supported by national and provincial R&D platforms, continuously advancing industry technology - The 500kV cable connection components developed in 2007 broke foreign monopoly, and the 750kV ultra-high voltage cable connection components were the first in China to pass type tests in 2024[43] - In 2015, the company was the first in China to develop 1100kV rigid gas-insulated transmission lines (GIL), with the 220kV three-phase common enclosure GIL product being an international first[43] - Pioneered the industry's smart modular substation centered around the "integrated switch-transformer unit," offering advantages such as 30% lower cost, 70% space saving, and 80% shorter construction period[43] 2. Performance Advantages Leveraging its first-mover advantage and accumulated experience in cable connection components, GIL, and smart modular substations, the company has gained widespread recognition from high-quality clients like State Grid and Southern Grid, securing leading market shares in numerous industry benchmark projects - Cable connection systems have received consistent recognition from high-quality clients such as State Grid, Southern Grid, and China Three Gorges Corporation, holding a leading market share[45] - In the GIL sector, the company holds a leading market share in orders, having provided services for projects like the Sutong GIL Integrated Pipe Gallery, CATL Jiangsu Production Base, and Tencent Yizheng Data Center[45] - Smart modular substations have been successfully applied in various industry projects, including Tencent Yizheng Dongsheng Cloud Computing Data Center and Qinghai Haidong Green Computing Industrial Park Substation[45] 3. Qualification Advantages The company holds Grade B qualifications for power engineering design, engineering survey, and power engineering general contracting, Grade II for power installation (repair, test), and Grade A for power engineering consulting, enabling it to provide comprehensive power system services to clients - Possesses Grade B qualifications for power engineering design (thermal power generation, transmission engineering, substation engineering) and Grade B for engineering survey (engineering measurement)[46] - Holds Grade B qualification for power engineering general contracting and Grade II for power installation (repair, test)[46] - Holds Grade A qualification certificate for power (including thermal power, hydropower, nuclear power, new energy) engineering consulting units[46] III. Analysis of Main Business During the reporting period, the company's main business revenue decreased by 32.43% year-on-year, primarily due to reduced income from GIL products and smart power system services. While the gross margin for 330kV-500kV cable connection products increased by 14.42%, gross margins for GIL products, smart modular substations, and smart power system services all declined Key Financial Data Year-over-Year Changes (Unit: yuan) | Indicator | Current Reporting Period | Prior Year Period | Year-over-year change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 327,607,031.53 | 484,809,809.70 | -32.43% | Primarily due to reduced income from GIL products and system services, and smart power system services compared to the previous period | | Operating Cost | 213,117,465.52 | 290,676,593.29 | -26.68% | | | Selling Expenses | 16,560,584.42 | 22,352,739.87 | -25.91% | | | Administrative Expenses | 29,583,060.97 | 24,731,332.70 | 19.62% | | | Financial Expenses | 1,403,133.20 | 449,021.83 | 212.49% | Primarily due to lower interest income and higher handling fees compared to the previous period | | Income Tax Expense | 8,063,475.04 | 15,259,176.68 | -47.16% | Primarily due to reduced total profit realized compared to the previous period | | R&D Investment | 32,922,228.27 | 19,623,675.21 | 67.77% | Primarily due to increased R&D personnel salaries and R&D material consumption during the reporting period | | Net Cash Flow from Operating Activities | 5,353,436.59 | -99,536,895.95 | 105.38% | Primarily due to increased sales collections during the reporting period | | Net Cash Flow from Investing Activities | -69,556,607.88 | -111,766,418.55 | 37.77% | | | Net Cash Flow from Financing Activities | 138,643,712.88 | 142,853,320.70 | -2.95% | | | Net Increase in Cash and Cash Equivalents | 74,278,601.67 | -68,357,699.17 | 208.66% | Primarily due to increased net cash flow from operating activities during the reporting period | Products or Services Accounting for Over 10% of Revenue (Unit: yuan) | Product or Service | Operating Revenue | Operating Cost | Gross Margin | Year-over-year change in Operating Revenue | Year-over-year change in Operating Cost | Year-over-year change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 110 (66) kV Cable Connection Products | 47,158,092.46 | 33,094,904.46 | 29.82% | -8.27% | -6.64% | -1.23% | | 220kV Cable Connection Products | 23,771,136.64 | 9,161,054.06 | 61.46% | -31.61% | -31.11% | -0.28% | | 330kV-500kV Cable Connection Products | 18,436,707.96 | 10,873,504.76 | 41.02% | -43.49% | -54.59% | 14.42% | | GIL Products and System Services | 69,862,429.12 | 36,259,231.83 | 48.10% | -48.64% | -39.86% | -7.58% | | Smart Modular Substation | 52,531,725.74 | 46,535,009.14 | 11.42% | -39.64% | -31.59% | -10.43% | | Smart Power System Services | 27,930,758.18 | 20,646,927.18 | 26.08% | -61.39% | -57.27% | -7.13% | IV. Analysis of Non-Main Business During the reporting period, non-main business contributed significantly to total profit, with investment income (primarily from wealth management products) accounting for 31.88% and other income (government grants) for 24.05%, though these revenues are not sustainable Impact of Non-Main Business on Total Profit (Unit: yuan) | Item | Amount | Percentage of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 23,863,732.80 | 31.88% | Primarily due to the company's purchase of wealth management products using idle raised funds and own funds during the reporting period | No | | Gains/Losses from Changes in Fair Value | -7,100,659.75 | -9.49% | Primarily due to changes in the fair value of wealth management products purchased by the company using idle raised funds and own funds at the end of the reporting period | No | | Asset Impairment | 10,823,637.93 | 14.46% | Primarily due to reduced provision for bad debts on accounts receivable, contract assets, and other receivables during the reporting period | No | | Non-Operating Income | 143,138.06 | 0.19% | Primarily due to liquidated damages paid by suppliers for quality issues during the reporting period | No | | Non-Operating Expenses | 531,372.96 | 0.71% | Primarily due to the disposal of fixed assets during the reporting period | No | | Other Income | 18,003,785.31 | 24.05% | Primarily due to government grants received by the company during the reporting period | No | V. Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets and net assets attributable to shareholders both slightly increased. In terms of asset composition, cash and construction in progress increased, while accounts receivable and fixed assets decreased; short-term borrowings significantly increased among liabilities Significant Changes in Asset Composition (Unit: yuan) | Item | Amount at End of Current Reporting Period | Percentage of Total Assets | Amount at End of Prior Year | Percentage of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 283,283,391.52 | 7.68% | 211,314,545.13 | 5.81% | 1.87% | | Accounts Receivable | 757,031,304.21 | 20.53% | 864,258,200.55 | 23.74% | -3.21% | | Contract Assets | 64,769,248.15 | 1.76% | 63,236,181.70 | 1.74% | 0.02% | | Inventories | 231,152,959.72 | 6.27% | 243,935,683.68 | 6.70% | -0.43% | | Long-term Equity Investments | 11,553,829.70 | 0.31% | 12,305,464.17 | 0.34% | -0.03% | | Fixed Assets | 188,646,107.43 | 5.12% | 204,968,742.36 | 5.63% | -0.51% | | Construction in Progress | 381,362,101.17 | 10.34% | 321,235,031.41 | 8.83% | 1.51% | | Right-of-Use Assets | 6,675,829.71 | 0.18% | 7,712,621.97 | 0.21% | -0.03% | | Short-term Borrowings | 162,165,250.00 | 4.40% | 57,000,000.00 | 1.57% | 2.83% | | Contract Liabilities | 59,256,312.15 | 1.61% | 94,178,825.90 | 2.59% | -0.98% | | Long-term Borrowings | 4,240,000.00 | 0.11% | 8,575,000.00 | 0.24% | -0.13% | | Lease Liabilities | 5,549,574.73 | 0.15% | 6,004,112.03 | 0.16% | -0.01% | - The company had no significant overseas assets during the reporting period[58] Assets and Liabilities Measured at Fair Value (Unit: yuan) | Item | Beginning Balance | Fair Value Change in Current Period | Ending Balance | | :--- | :--- | :--- | :--- | | Trading Financial Assets | 1,148,705,824.17 | -7,008,968.96 | 1,175,273,751.59 | | Other | 234,273,095.88 | -290,424.65 | 200,424,931.50 | | Total Above | 1,382,978,920.05 | -7,299,393.61 | 1,375,698,683.09 | - At the end of the period, $16,323,675.56 of the company's cash and bank balances were restricted, primarily for bank acceptance bill deposits, letter of guarantee deposits, and letter of credit deposits[61] VI. Analysis of Investment Status During the reporting period, the company had no investments, major equity, or non-equity investments. It managed $1.7688 billion in wealth management products using idle raised funds and own funds, with $1.37105 billion outstanding at period-end. Construction progress for raised fund projects was delayed, and the company addressed non-compliant wealth management purchases through general accounts - Investment amount for the reporting period was $0.00, consistent with the prior year period[62] - The company had no significant equity or non-equity investments during the reporting period[63] Financial Assets Measured at Fair Value (Unit: yuan) | Asset Category | Initial Investment Cost | Amount Purchased in Current Period | Amount Sold in Current Period | Ending Balance | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | | Funds | 452,701,393.93 | 238,800,000.00 | 528,780,843.30 | 162,421,512.11 | Own Funds | | Trust Products | 1,494,785.14 | 460,000,000.00 | 0.00 | 461,494,785.14 | Own Funds | | Funds | 880,159,772.70 | 400,000,000.00 | 1,120,000,000.00 | 150,291,015.98 | Raised Funds | | Other | 50,117,776.44 | 670,000,000.00 | 120,000,000.00 | 601,491,369.86 | Raised Funds | | Total | 1,382,978,920.05 | 1,768,800,000.00 | 1,768,780,843.30 | 1,375,698,683.09 | -- | Overall Utilization of Raised Funds (Unit: yuan) | Fundraising Year | Fundraising Method | Net Raised Funds (1) | Total Raised Funds Used (2) | Cumulative Raised Funds Used at End of Reporting Period (3)=(2)/(1) | Unused Raised Funds | Amount of Raised Funds Idle for Over Two Years | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2021 | Issuance of Shares to Specific Objects | 1,464,437,600.00 | 630,170,700.00 | 43.04% | 943,522,900.00 | 943,522,900.00 | - The completion dates for the "Urban Smart Transmission and Transformation System Construction Project" and "Smart Transmission and Transformation Equipment R&D Center" have been postponed to December 31, 2025, and December 31, 2026, respectively[69] - During the reporting period, the company used idle raised funds to purchase wealth management products through general accounts and then transferred them back to the raised funds account upon maturity; the company has conducted a comprehensive self-inspection, rectification, and strengthened internal management and education[70] Overview of Entrusted Wealth Management (Unit: yuan) | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management Occurred | Unexpired Balance | | :--- | :--- | :--- | :--- | | Brokerage Wealth Management Products | Own Funds | 204,800,000.00 | 151,050,900.00 | | Bank Wealth Management Products | Own Funds | 34,000,000.00 | 10,000,000.00 | | Trust Wealth Management Products | Own Funds | 460,000,000.00 | 460,000,000.00 | | Brokerage Wealth Management Products | Raised Funds | 400,000,000.00 | 150,000,000.00 | | Bank Wealth Management Products | Raised Funds | 670,000,000.00 | 600,000,000.00 | | Total | | 1,768,800,000.00 | 1,371,050,900.00 | VII. Disposal of Major Assets and Equity The company did not dispose of any major assets or equity during the reporting period - The company did not dispose of any major assets during the reporting period[77] - The company did not dispose of any major equity during the reporting period[78] VIII. Analysis of Major Holding and Participating Companies The company's main subsidiaries include Henan Ankura Power Engineering Design Co., Ltd., Jiangsu Lingrui Electric Technology Co., Ltd., and Jiangsu Ankura Smart Power Station Technology Co., Ltd. During the reporting period, the company exited its investment in the controlling subsidiary Jiangsu Ankura Digital Energy Technology Co., Ltd. through a targeted capital reduction to focus on its main business Major Subsidiary Information (Unit: yuan) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Henan Ankura Power Engineering Design Co., Ltd. | Subsidiary | Power engineering survey and design, etc. | 50,000,000.00 | 452,582,282.70 | 80,639,704.62 | 52,236,436.66 | 14,028,008.39 | 12,566,866.54 | | Jiangsu Lingrui Electric Technology Co., Ltd. | Subsidiary | Design, R&D, manufacturing, testing, and sales of medium, high, extra-high, and ultra-high voltage electrical equipment and accessories, components, etc. | 50,000,000.00 | 40,899,031.73 | 30,670,943.08 | 504,346.73 | -2,624,690.09 | -1,879,506.88 | | Jiangsu Ankura Smart Power Station Technology Co., Ltd. | Subsidiary | Production and sales of smart modular substations | 100,000,000.00 | 168,060,975.48 | 15,346,624.10 | 14,888,087.23 | -2,493,817.53 | -3,205,135.10 | - During the reporting period, the company exited its investment in the controlling subsidiary Jiangsu Ankura Digital Energy Technology Co., Ltd. through a targeted capital reduction, no longer holding its equity or including it in the scope of consolidation[80] IX. Information on Structured Entities Controlled by the Company The company had no controlled structured entities during the reporting period - The company had no controlled structured entities during the reporting period[81] X. Risks Faced by the Company and Countermeasures The company faces risks from industry policy changes, market competition, product quality, and loss of core technical personnel, which it plans to address through technological innovation, market expansion, quality management, and talent incentives - Industry policy change risk: Reduced national power construction investment may negatively impact performance. Countermeasures include promoting innovative applications, developing new technologies and products, and strengthening macroeconomic analysis[81] - Market risk: Deviations in customer demand judgment or product functionality/output mismatches may lead to unsuccessful bids and order declines. Countermeasures include strengthening market development, quality management, and refined cost control[82] - Product quality risk: Product quality issues may result in returns, compensation, penalties, and reputational damage. Countermeasures include strict quality inspection processes, advanced equipment, and strengthening quality system construction[84] - Technology leakage and core technical personnel loss risk: Shortage of high-end talent, loss or leakage may affect technical strength and profitability. Countermeasures include optimizing talent development systems, salary incentives, cultivating young teams, and intellectual property protection[85] XI. Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period During the reporting period, the company conducted an online interactive exchange with all investors via the Value Online platform on May 6, 2025 - Reception time: May 06, 2025[86] - Reception method: Online platform interaction[86] - Type of reception object: Other (all investors)[86] XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not disclosed a market value management system or valuation enhancement plan - The company has not formulated a market value management system[87] - The company has not disclosed a valuation enhancement plan[87] XIII. Implementation of "Quality and Return Dual Improvement" Action Plan The company has not disclosed an announcement regarding its "Quality and Return Dual Improvement" action plan - The company has not disclosed an announcement regarding its "Quality and Return Dual Improvement" action plan[88] Corporate Governance, Environment, and Society I. Changes in Directors, Supervisors, and Senior Management of the Company No changes occurred in the company's directors, supervisors, and senior management during the reporting period - The company's directors, supervisors, and senior management did not change during the reporting period[89] II. Profit Distribution and Capital Reserve to Share Capital Conversion During the Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[90] III. Implementation of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[91] IV. Environmental Information Disclosure Neither the listed company nor its major subsidiaries are included in the list of enterprises required to disclose environmental information by law - Neither the listed company nor its major subsidiaries are included in the list of enterprises required to disclose environmental information by law[92] V. Social Responsibility The company actively fulfills its social responsibilities by improving governance, protecting shareholder rights, prioritizing employee well-being, strengthening training, maintaining supplier and customer relationships, and engaging in public welfare activities, thereby achieving a balance between economic and social benefits - The company actively fulfills its social responsibilities, consistently giving back to society and spreading positive energy, achieving an organic unity of economic and social benefits[97] (I) Protection of Shareholder and Creditor Rights The company adheres to laws and regulations, improves corporate governance, ensures shareholder rights, actively implements cash dividend policies, and maintains good investor communication. It also maintains sound financial policies, protects creditor interests, and has no major shareholder fund occupation or external guarantees - Legally convenes general meetings of shareholders and actively adopts online voting and other methods to increase shareholder participation in general meetings[92] - Ensures the realization of shareholders' right to know, participate, and receive dividends, actively implements cash dividend policies, and ensures shareholder investment returns[92] - Communicates with investors through various channels, including online performance briefings, investor hotlines, faxes, emails, and investor relations interactive platforms[92] - During the reporting period, the company had no instances of major shareholders or related parties occupying company funds, nor any situations where funds were directly or indirectly provided to major shareholders or related parties, and the company had no external guarantees of any form[92] (II) Protection of Employee Rights The company prioritizes employee well-being and corporate culture, actively participates in charity, fosters a positive work environment, organizes recreational activities and regular health check-ups, and has established comprehensive internal and external training systems to support employee career development - Focuses on humanistic care, actively participates in charity, organizes recreational activities such as new employee onboarding, parent-child events, and club activities to enhance employee happiness and belonging; regularly organizes employee health check-ups[93] - Established a specialized training system for tiered employee development, combining internal lecturers and external training to formulate training plans based on job requirements[94] (III) Protection of Supplier, Customer, and Consumer Rights The company fosters long-term, close cooperation with suppliers and customers for mutual benefit, promotes ethical operations throughout its supply chain, and maintains strict internal controls to prevent commercial bribery and unfair transactions - Relies on existing suppliers and customers, adopting a market-customer extension strategy to engage in long-term, close cooperation, forming resource sharing, capital complementarity, common market, and close customer relationships to achieve a win-win strategy with suppliers and customers[95] - Actively drives suppliers and outsourced manufacturers to continuously standardize operations through its own standardized operations, guiding upstream and downstream partners' relevant decision-makers to understand the importance of socially responsible operations[96] - Established relevant internal control systems, including the "Internal Audit System" and "Enterprise Internal Control Refined Management System," to strictly monitor and prevent commercial bribery and unfair transaction situations[96] (IV) Fulfillment of Corporate Social Responsibility The company actively gives back to society through university-enterprise collaborations, expanding employment channels, establishing scholarships, organizing family activities, and promoting safety awareness, demonstrating a positive corporate social image - Strengthens university-enterprise collaboration, establishes university student internship and practice bases, expands employment channels, and promotes smooth employment for college graduates[97] - Holds "Dream Scholarship" activities, awarding scholarships to employees' children who achieve academic success[97] - Organizes "Cute Babies Show Talent, Light Up Children's Day" parent-child activities and a safety production month quiz for all employees[97] Significant Matters I. Commitments Fulfilled During the Reporting Period and Overdue Unfulfilled Commitments by Actual Controllers, Shareholders, Related Parties, Acquirers, and the Company The company's actual controllers, shareholders, and senior management fully fulfilled their commitments regarding share lock-up, reduction prices, diluted immediate return compensation, avoidance of horizontal competition, and prevention of fund occupation during the reporting period, with no overdue unfulfilled matters - Chen Xiaohui, Chen Xiaoling, Chen Xiaoming, Tang Hulin, and other committing parties all normally fulfilled their commitments regarding share lock-up and reduction prices[99] - The committing parties all normally fulfilled their commitments regarding compensating for diluted immediate returns[100] - The committing parties all normally fulfilled their commitments to avoid horizontal competition[101] - The committing parties all normally fulfilled their commitments to avoid fund occupation[104] - Commitments fulfilled on time: Yes[110] II. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties of the Listed Company During the reporting period, there was no non-operating fund occupation of the listed company by controlling shareholders or other related parties - During the reporting period, there was no non-operating fund occupation of the listed company by controlling shareholders or other related parties[111] III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[112] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[113] V. Explanation by the Board of Directors, Supervisory Board, and Audit Committee on the "Non-Standard Audit Report" for the Current Reporting Period The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[114] VI. Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[114] VII. 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[115] VIII. Litigation Matters The company had no significant litigation or arbitration matters during the reporting period - The company had no significant litigation or arbitration matters during the reporting period[116] IX. Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[116] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company, its controlling shareholder, and actual controller maintained good integrity during the reporting period, with no inapplicable situations - The company, its controlling shareholder, and actual controller maintained good integrity during the reporting period[117] XI. Significant Related Party Transactions During the reporting period, the company had no significant related party transactions related to daily operations, asset/equity acquisitions/disposals, joint external investments, related party creditor/debtor relationships, or transactions with financial companies - The company had no related party transactions related to daily operations during the reporting period[117] - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[118] - The company had no related party transactions involving joint external investments during the reporting period[119] - The company had no related party creditor or debtor relationships during the reporting period[120] - The company and its related financial companies, or financial companies controlled by the company, had no deposits, loans, credit lines, or other financial business with related parties[121][122] - The company had no other significant related party transactions during the reporting period[123] XII. Significant Contracts and Their Performance The company had no entrustment, contracting, or leasing matters, nor any significant guarantees during the reporting period. Details of significant contracts for daily operations and other significant contracts were not extensively disclosed - The company had no entrustment situations during the reporting period[124] - The company had no contracting situations during the reporting period[125] - The company had no leasing situations during the reporting period[126] - The company had no significant guarantee situations during the reporting period[127] - The company had no other significant contracts during the reporting period[130] XIII. 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[131] XIV. Significant Matters of Company Subsidiaries The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[132] Share Changes and Shareholder Information I. Share Changes During the reporting period, the company's total share capital remained unchanged, with a slight increase in restricted shares and a corresponding decrease in unrestricted shares, primarily due to changes in senior management lock-up shares. Reasons for share changes, approval, transfer, share repurchase progress, and concentrated bidding reductions are all not applicable or did not occur 1. Share Changes During the reporting period, the company's total share capital remained unchanged, with a slight increase in restricted shares and a corresponding decrease in unrestricted shares, primarily due to changes in senior management lock-up shares Share Changes (Unit: shares) | Item | Quantity Before This Change | Proportion Before This Change | Net Increase/Decrease in This Change (＋,－) | Quantity After This Change | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 26,768,520 | 15.99% | 27,045 | 26,795,565 | 16.01% | | II. Unrestricted Shares | 140,591,636 | 84.01% | -27,045 | 140,564,591 | 83.99% | | III. Total Shares | 167,360,156 | 100.00% | 0 | 167,360,156 | 100.00% | - Reasons for share changes, approval status, transfer status, progress of share repurchase implementation, and progress of share repurchase implementation through centralized bidding are all not applicable or did not occur[135] 2. Changes in Restricted Shares At the end of the reporting period, the company's total restricted shares slightly increased, mainly due to changes in senior management lock-up shares, with Chen Xiaoling's restricted shares increasing by 15,795 shares Changes in Restricted Shares (Unit: shares) | Shareholder Name | Restricted Shares at Beginning of Period | Restricted Shares Released in Current Period | Restricted Shares Increased in Current Period | Restricted Shares at End of Period | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Chen Xiaoling | 26,712,270.00 | 0 | 15,795 | 26,728,065 | Senior Management Lock-up Shares | | Other | 56,250 | 0 | 11,250 | 67,500 | Senior Management Lock-up Shares | | Total | 26,768,520 | 0 | 27,045 | 26,795,565 | -- | II. 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[137] III. Company Shareholder Numbers and Shareholding At the end of the reporting period, the total number of common shareholders was 16,708. Among the top ten shareholders, Chen Xiaohui, Chen Xiaoling, and Chen Xiaoming are parties acting in concert, holding a combined 46.91% of shares. The company's repurchase account held 3,326,092 shares, making it the seventh largest shareholder - Total number of common shareholders at the end of the reporting period: 16,708[138] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders (Unit: shares) | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at End of Reporting Period | Number of Restricted Shares Held | Number of Unrestricted Shares Held | Share Status | Quantity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chen Xiaohui | Domestic Natural Person | 22.14% | 37,050,000 | 0 | 37,050,000 | Pledged | 20,460,000 | | Chen Xiaoling | Domestic Natural Person | 21.29% | 35,637,420 | 26,728,065 | 8,909,355 | Pledged | 1,850,000 | | Zhang Xilan | Domestic Natural Person | 4.75% | 7,957,200 | 0 | 7,957,200 | Not Applicable | 0 | | Chen Xiaoming | Domestic Natural Person | 3.48% | 5,825,000 | 0 | 5,825,000 | Not Applicable | 0 | | National Social Security Fund 503 Portfolio | Domestic Non-State-Owned Legal Person | 2.99% | 5,000,000 | 0 | 5,000,000 | Not Applicable | 0 | | Tang Hulin | Domestic Natural Person | 2.33% | 3,900,000 | 0 | 3,900,000 | Not Applicable | 0 | | National Social Security Fund 404 Portfolio | Domestic Non-State-Owned Legal Person | 1.98% | 3,313,910 | 0 | 3,313,910 | Not Applicable | 0 | | Jiangsu Pingling Construction Investment Group Co., Ltd. | State-Owned Legal Person | 1.56% | 2,618,344 | 0 | 2,618,344 | Not Applicable | 0 | | Jiang Guojun | Domestic Natural Person | 1.11% | 1,860,000 | 0 | 1,860,000 | Not Applicable | 0 | | Li Changling | Domestic Natural Person | 1.06% | 1,773,481 | 0 | 1,773,481 | Pledged | 850,000 | - Among the company's top 10 shareholders, Chen Xiaohui, Chen Xiaoling, and Chen Xiaoming are three brothers and parties acting in concert, jointly holding 46.91% of the company's shares[139] - As of June 30, 2025, the company's repurchase special account held 3,326,092 A-shares, making it the company's 7th largest shareholder[140] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management The company's directors, supervisors, and senior management had no changes in their shareholdings during the reporting period - The company's directors, supervisors, and senior management had no changes in their shareholdings during the reporting period[141] V. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[142] - The company's actual controller remained unchanged during the reporting period[142] Bond-Related Information The company had no bond-related information during the reporting period - The company had no bonds during the reporting period[145] Financial Report This section contains the company's unaudited semi-annual financial report, including consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes to the financial statements, outlining the company's basic information, accounting policies, taxes, specific details of various asset, liability, and income/expense items, as well as important information on related party transactions and risk management - The company's semi-annual financial report was unaudited[147] - Includes consolidated and parent company financial statements[148][150][152][154][156][157][158][162] - Provides detailed disclosure of the company's basic information, significant accounting policies and estimates, taxes, and notes to consolidated financial statement items[162][164][166] I. Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[147] II. Financial Statements This section presents the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, reflecting the financial position at period-end and operating results and cash flow changes during the period Consolidated Balance Sheet (End of Period Balance, Unit: yuan) | Item | Amount | | :--- | :--- | | Total Assets | 3,687,119,598.80 | | Total Liabilities | 766,081,429.48 | | Total Owners' Equity | 2,921,038,169.32 | 1. Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were $3.687 billion, total liabilities $766.08 million, and total owners' equity $2.921 billion, reflecting a stable asset-liability structure 2. Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were $3.309 billion, total liabilities $488.98 million, and total owners' equity $2.820 billion, consistent with consolidated trends and maintaining a healthy financial position Parent Company Balance Sheet (End of Period Balance, Unit: yuan) | Item | Amount | | :--- | :--- | | Total Assets | 3,309,150,794.03 | | Total Liabilities | 488,985,431.52 | | Total Owners' Equity | 2,820,165,362.51 | 3. Consolidated Income Statement In H1 2025, the company's consolidated operating revenue was $328 million, net profit $66.7869 million, net profit attributable to parent company shareholders $66.0353 million, and basic earnings per share $0.40, showing a decrease from the prior year period Consolidated Income Statement (Current Period Amount, Unit: yuan) | Item | Amount | | :--- | :--- | | Operating Revenue | 327,607,031.53 | | Operating Profit | 75,238,602.19 | | Total Profit | 74,850,367.29 | | Net Profit | 66,786,892.25 | | Net Profit Attributable to Parent Company Shareholders | 66,035,324.68 | | Basic Earnings Per Share | 0.40 | 4. Parent Company Income Statement In H1 2025, the parent company's operating revenue was $257 million, and net profit was $63.8468 million, reflecting the parent company's operating results Parent Company Income Statement (Current Period Amount, Unit: yuan) | Item | Amount | | :--- | :--- | | Operating Revenue | 257,467,444.39 | | Operating Profit | 72,196,807.47 | | Total Profit | 71,761,813.82 | | Net Profit | 63,846,844.63 | 5. Consolidated Cash Flow Statement In H1 2025, the company's consolidated net cash flow from operating activities was $5.3534 million, net cash flow from investing activities was -$69.5566 million, net cash flow from financing activities was $139 million, and net increase in cash and cash equivalents was $74.2786 million Consolidated Cash Flow Statement (Current Period Amount, Unit: yuan) | Item | Amount | | :--- | :--- | | Net Cash Flow from Operating Activities | 5,353,436.59 | | Net Cash Flow from Investing Activities | -69,556,607.88 | | Net Cash Flow from Financing Activities | 138,643,712.88 | | Net Increase in Cash and Cash Equivalents | 74,278,601.67 | 6. Parent Company Cash Flow Statement In H1 2025, the parent company's net cash flow from operating activities was $3.7648 million, net cash flow from investing activities was -$83.5645 million, net cash flow from financing activities was $160 million, and net increase in cash and cash equivalents was $80.4886 million Parent Company Cash Flow Statement (Current Period Amount, Unit: yuan) | Item | Amount | | :--- | :--- | | Net Cash Flow from Operating Activities | 3,764,847.18 | | Net Cash Flow from Investing Activities | -83,564,450.39 | | Net Cash Flow from Financing Activities | 160,450,134.97 | | Net Increase in Cash and Cash Equivalents | 80,488,591.84 | 7. Consolidated Statement of Changes in Owners' Equity In H1 2025, the company's consolidated total owners' equity increased from $2.897 billion at the beginning of the period to $2.921 billion at the end of the period, primarily due to increased net profit Consolidated Statement of Changes in Owners' Equity (Current Period Amount, Unit: yuan) | Item | Beginning Balance | Amount of Change in Current Period | Ending Balance | | :--- | :--- | :--- | :--- | | Total Owners' Equity | 2,897,285,667.05 | 23,752,502.27 | 2,921,038,169.32 | 8. Parent Company Statement of Changes in Owners' Equity In H1 2025, the parent company's total owners' equity increased from $2.796 billion at the beginning of the period to $2.820 billion at the end of the period, primarily due to increased net profit Parent Company Statement of Changes in Owners' Equity (Current Period Amount, Unit: yuan) | Item | Beginning Balance | Amount of Change in Current Period | Ending Balance | | :--- | :--- | :--- | :--- | | Total Owners' Equity | 2,795,686,693.25 | 24,478,669.26 | 2,820,165,362.51 | [Notes to Financial Statements](index=66&type=section&id=%E8%B4