松霖科技(603992) - 2025 Q2 - 季度财报

Important Notice This section emphasizes the company's board of directors and senior management's assurance of the semi-annual report's truthfulness, accuracy, and completeness, stating the report is unaudited. The company has approved a profit distribution plan to pay a cash dividend of $1.10 (tax inclusive) per 10 shares to all shareholders. It also includes a risk statement for forward-looking statements and confirms no non-operating fund occupation by controlling shareholders or related parties, nor any unauthorized external guarantees - The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report and assume legal responsibility[4] - This semi-annual report is unaudited[6] - The company plans to distribute a cash dividend of $1.10 (tax inclusive) per 10 shares to all shareholders based on the total share capital on the equity registration date of the profit distribution plan, without requiring shareholder meeting approval[7] - Forward-looking statements in this report regarding the company's future plans and development strategies do not constitute a substantive commitment to investors[8] - There is no non-operating occupation of funds by controlling shareholders or other related parties, nor any unauthorized external guarantees in violation of decision-making procedures[9] Section I Definitions This section provides definitions for common terms used in the report, including the company itself, major subsidiaries (e.g., Zhangzhou Soling, Hong Kong Soling, Vietnam Soling, Soling Robotics, Vidis, Soling Great Health), and the key reporting period (January 1 to June 30, 2025), ensuring clear understanding of the report's content - "The Company," "Company," or "Soling Technology" refers to Xiamen Soling Technology Co., Ltd. and its subsidiaries[14] - The report lists several subsidiaries, including Zhangzhou Soling Company, Hong Kong Soling Company, Vietnam Soling Company, Italy Soling Company, Beijiete Company, Huaying Industrial Company, Soling Great Health Company, Soling Robotics Company, and Vidis Company[14] - "The Reporting Period" or "This Period" refers to January 1 to June 30, 2025[14] Section II Company Profile and Key Financial Indicators This section outlines the company's basic information, contact details, registered and office addresses, and discloses key accounting data and financial indicators for the first half of 2025. During the reporting period, the company's operating revenue and net profit significantly decreased year-on-year, while net assets attributable to shareholders slightly increased. Non-recurring gains and losses contributed to net profit, and net profit after deducting share-based payment impacts also showed a downward trend - The company's Chinese name is Xiamen Soling Technology Co., Ltd., with stock abbreviation Soling Technology and stock code 603992, listed on the Shanghai Stock Exchange[16][20] Key Accounting Data for H1 2025 (YoY) | Key Accounting Data | Current Period (Jan-Jun) ($) | Prior Period ($) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,140,172,608.33 | 1,447,519,151.97 | -21.23 | | Total Profit | 94,249,421.23 | 245,375,500.85 | -61.59 | | Net Profit Attributable to Shareholders of Listed Company | 93,087,255.10 | 221,239,179.98 | -57.92 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses | 70,988,915.90 | 205,256,579.42 | -65.41 | | Net Cash Flow from Operating Activities | 130,316,920.83 | 192,661,104.74 | -32.36 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 3,230,828,459.47 | 3,174,455,666.73 | 1.78 | | Total Assets (Period-end) | 4,288,477,044.33 | 4,364,103,578.46 | -1.73 | Key Financial Indicators for H1 2025 (YoY) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | YoY Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share ($/share) | 0.22 | 0.55 | -60.00% | | Diluted Earnings Per Share ($/share) | 0.22 | 0.55 | -60.00% | | Basic EPS After Deducting Non-recurring Gains and Losses ($/share) | 0.16 | 0.51 | -68.63% | | Weighted Average Return on Net Assets (%) | 2.87 | 8.22 | Decrease of 5.35 percentage points | | Weighted Average Return on Net Assets After Deducting Non-recurring Gains and Losses (%) | 2.19 | 7.63 | Decrease of 5.44 percentage points | - Total non-recurring gains and losses amounted to $22,098,339.20[26] - Net profit after deducting the impact of share-based payments was $105,282,709.42, a year-on-year decrease of 56.15%[27] Section III Management Discussion and Analysis This section details the company's operating performance in the first half of 2025, covering its industry, main business, operating model, financial performance, core competitiveness, and risks. The company actively addresses global economic challenges, focusing on robotics, great health software and hardware, and smart kitchen and bathroom sectors, striving for high-quality development through organic growth, external expansion, technological innovation, and internationalization. Despite year-on-year declines in revenue and profit, significant progress has been made in R&D investment and new business expansion I. Description of the Company's Industry and Main Business During the Reporting Period The company's business is positioned into two main categories: "SOLEX Robot Systems" and "IDM Business," integrating R&D innovation and industrial design into products and system integration solutions through excellent product development and user demand understanding. SOLEX Robot Systems focus on nursing and logistics services, sold under a proprietary brand model, while IDM business targets the consumer market, offering AI companion robots, great health software and hardware, and smart kitchen and bathroom products (I) Main Business and Products The company's main businesses include SOLEX Robot Systems and IDM business. SOLEX Robot Systems cover nursing service robots and logistics service robots, sold under a proprietary brand model, with active investment in R&D and pursuit of external expansion. IDM business includes AI companion robots, great health software and hardware (beauty, sleep, sports, and drinking water health), and smart kitchen and bathroom products, aiming to provide intelligent, digital, and diversified solutions - The company's business is positioned into two main categories: "SOLEX Robot Systems" and "IDM Business"[29] - SOLEX Robot Systems primarily include nursing service robot systems and logistics service robot systems, both sold directly to the end market under a proprietary brand model, focusing on fostering internal growth (increased R&D investment, technology accumulation) and external expansion (acquisition of Vidis Company, external collaborations)[30][31] - IDM business covers AI companion robots (multi-scenario, multi-modal interaction), great health software and hardware (smart skin analyzers, beauty devices, hair removal devices, smart yoga mats, health water dispensers, etc.), and smart kitchen and bathroom products (showerheads, care faucets, smart toilets, kitchen faucets, etc.)[32][33] (II) Operating Model The company adopts a dual-track operating system of "IDM Model + Proprietary Brand Model." The IDM model, centered on R&D innovation, provides products with independent intellectual property rights to consumer market clients. The SOLEX Robot System uses a proprietary brand model, targeting B-end professional service scenarios. Both models emphasize market-driven approaches, achieving product innovation and market expansion through internal R&D and external resource collaboration - The company implements strategic segmentation for different customer groups, building a dual-track operating system of "IDM Model + Proprietary Brand Model"[35] - The IDM (Innovation Design Manufacturer) model is an upgrade of the traditional ODM model, where the company independently completes technology R&D innovation, product creative design, and product manufacturing, providing higher value-added products to downstream customers[36] - R&D Model: Each product business unit establishes independent professional R&D departments, supported by a smart electronics technology R&D center, utilizing big data technology to determine new product R&D directions[37][38] - Production Model: Primarily adopts a market-oriented, "order-based" production model where production is determined by sales, with most products being non-standardized and customized[40] - SOLEX Robot Systems operate under a proprietary brand model, focusing on nursing service robot systems and logistics service robot systems, targeting B-end scenarios such as enterprises, public institutions, medical institutions, and elderly care facilities[42] II. Discussion and Analysis of Operations In the first half of 2025, the company's operating revenue decreased by 21.23% year-on-year, and non-recurring net profit decreased by 65.41%, primarily due to complex domestic and international economic conditions. Despite this, the company continued to increase R&D investment in robotics, great health software and hardware, and smart kitchen and bathroom sectors, achieving multiple technological breakthroughs and patent authorizations, and actively advancing its internationalization strategy, with the Vietnam production base successfully shipping its first order. The company is committed to leading industrial upgrading by leveraging AIoT technology, industrial design, and precision manufacturing as its underlying shared platforms 1. Official Entry into Robotics, Pursuing Both Organic Growth and External Expansion The company officially entered the robotics sector through its wholly-owned subsidiary, Soling Robotics Technology Co., Ltd., establishing it as the third growth pole. Its business covers nursing services, logistics services, AI companion, and humanoid robots, adopting a strategy of both organic R&D and external M&A (e.g., acquiring Vidis Company). During the reporting period, substantial technological progress was made in motion control, scenario-based voice interaction, and emotional experience - The company officially entered the robotics sector, establishing Soling Robotics Technology Co., Ltd. as its wholly-owned subsidiary and the third growth pole for Soling Technology[46] - The robotics business includes nursing service robot systems, logistics service robot systems, AI companion robots, and humanoid robots, all sold to the end market under a proprietary brand model[46] - The company focuses on fostering internal growth (increasing R&D team investment, leveraging AI smart hardware and software algorithm technology accumulation) and external expansion opportunities (integrating Vidis Company's technological capabilities through M&A, collaborating with outstanding industry enterprises)[46] - Soling Robotics achieved substantial technological progress, including motion control based on deep reinforcement learning, scenario-based voice interaction with full-array microphone systems and offline voice engines, and emotional experience based on facial expression and voice dual-modal emotional interaction[47] 2. Comprehensive Layout in Great Health Software and Hardware, Innovation-Driven Diversified Development The company continuously increases R&D investment, comprehensively deploying its great health software and hardware business, integrating sub-scenarios such as beauty, sleep, sports, and drinking water health, to provide intelligent detection and precise care solutions. During the reporting period, the beauty and health category achieved breakthroughs in algorithm technology, visual intelligent detection, and 3D reconstruction technology, while actively expanding diverse clients and obtaining multiple domestic and international product certifications - The company continuously increases R&D investment, promoting the integration and technological innovation of its great health software and hardware business, integrating sub-scenarios such as beauty, sleep, sports, and drinking water health[48] - The beauty and health category achieved multiple technological breakthroughs, such as tooth recognition and lesion localization algorithms based on oral images, visual intelligent detection technology for real-time skin condition assessment, and 3D reconstruction technology for full-face scanning[48] - The drinking water health category launched a multi-functional temperature-controlled direct drinking smart device, integrating core functional modules such as soda water preparation, iced water refrigeration, rapid hot water heating, and water purification, and operates a 100,000-grade clean beverage factory[49] - Actively expanded diverse clients and obtained multiple domestic and international certifications, such as FCC and FDA in the US, CE in the EU, CSA in Canada, SGS ISO 13485 system, and successfully passed the MDSAP medical device five-country certification audit[50] 3. Continuous Upgrade of Smart Kitchen and Bathroom, Leading a New Trend in Smart Living The company's kitchen and bathroom category focuses on intelligence, integration, and green initiatives as its upgrade direction, committed to providing innovative, value-added healthy living solutions. Through technological accumulation, it continuously upgrades areas such as showerheads, faucets, and smart toilets, achieving new breakthroughs in electronic micro-bubble, electronic control showering, ultra-water-saving shower spray, and ozone micro-bubble technologies, aiming to create a smart kitchen and bathroom system integrating intelligent control, efficient synergy, and energy efficiency - The company's kitchen and bathroom category starts with intelligence, integration, and green initiatives, providing optimal innovative healthy living solutions for kitchen and bathroom spaces[52] - Achieved new breakthroughs in electronic micro-bubble technology, electronic control showering technology, ultra-water-saving shower spray technology, and ozone micro-bubble technology, successfully applied to existing product upgrades and new product expansion[52] - The company's subsequent key innovation direction is to build a smart kitchen and bathroom system integrating intelligent control, efficient synergy, and energy efficiency[52] 4. Intensifying AIoT Technology Sharing to Empower Category Expansion The company's Smart Electronics Business Unit serves as a foundational technology support platform, providing AIoT technology support and application innovation for various product categories. During the reporting period, this unit strengthened its AI algorithm team, enriched algorithms for human health detection, posture capture, and sleep analysis, enhanced technology reserves for robot motion control, voice interaction, and emotional experience, promoted IoT technology internationalization and MFI image transmission technology development, and deepened industry-academia-research cooperation - The company's Smart Electronics Business Unit provides foundational technology support and application innovation for various product categories in smart technology and spatial interconnection integration[53] - Increased efforts in building a professional AI algorithm team, enriching algorithms related to health detection for human body parts such as face, oral cavity, and scalp, human posture capture, and sleep analysis[53] - Strengthened technology reserves in robot motion control, voice interaction, and emotional experience, focusing on the R&D and implementation of IoT technology, achieving MFI image transmission technology development[53] - Co-established research center platforms with several renowned universities in Fujian Province, conducting课题研究 (topic research), jointly cultivating talent, deepening industry-university cooperation, and promoting the integration of industry, academia, and research[53] 5. Actively Advancing International Layout to Enhance Global Market Competitiveness The company is actively advancing its international layout, with the investment and construction of its Vietnam production base being a crucial step in its "going global" strategy. This base has successfully achieved its first shipment, aiming to enhance product delivery and supply capabilities, meet overseas business expansion needs, boost global sales capabilities, and increase the company's flexibility in responding to macroeconomic fluctuations and changes in the international trade landscape - The company invested in and built a production base in Vietnam, officially extending its industrial layout overseas and advancing its internationalization strategy[54] - The Vietnam production base will enhance the company's product delivery and supply capabilities, facilitating further satisfaction of overseas business expansion needs and improving global sales capabilities[54] - The Vietnam production base successfully achieved its first shipment during the reporting period[54] III. Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness lies in empowering product innovation with AIoT technology, establishing an innovative R&D system, driving industrial design updates, sharing a foundational manufacturing platform, possessing a global customer base, and focusing on talent pipeline development. These advantages collectively build the company's full-chain competitive edge in robotics, great health software and hardware, and smart kitchen and bathroom sectors, supporting its high-quality sustainable development 1. Empowering Product Innovation with AIoT Technology The company adheres to intelligent, healthy, and green concepts, empowering product innovation and R&D through AIoT technology. It established a Smart Electronics Business Unit to provide a foundational technology sharing platform for robotics, great health software and hardware, and smart kitchen and bathroom products, supporting the upgrade and iteration of various product categories and the realization of multi-category product interaction scenarios - The company consistently adheres to empowering technological innovation and product R&D with intelligence, health, and green concepts, upholding the principle of technology sharing[57] - The company established a Smart Electronics Business Unit to provide a foundational technology sharing platform for robotics, great health software and hardware, and smart kitchen and bathroom products, supporting the upgrade and iteration of various product categories and the realization of multi-category product interaction scenarios[57] 2. Innovative R&D System Enhances Company's R&D Effectiveness The company established a unique customer-demand-oriented R&D model with R&D and sales linkage, ensuring the conversion rate of R&D achievements. Each business unit has an independent R&D team and has been recognized as a "National Enterprise Technology Center" and a "National Intellectual Property Demonstration Unit." As of the end of the reporting period, the company had 847 technical personnel and 1,317 valid authorized patents, and it leverages big data technology to monitor global consumer trends in real-time, guiding product R&D directions - The company has formed a unique customer-demand-oriented R&D model with R&D and sales linkage, ensuring the conversion rate of R&D achievements[58] - The company has been recognized as a "National Enterprise Technology Center" and a "National Intellectual Property Demonstration Unit"[58] - As of the end of the reporting period, the company had 847 technical personnel and held 1,317 valid authorized patents domestically and internationally, including 465 invention patents[58] - The company utilizes big data technology to monitor global consumer trends in real-time, ensuring its product R&D solutions are at the forefront of the industry[58] 3. Industrial Design System Drives Product Updates The company established independent creative design centers in each business unit and focuses on cross-disciplinary integrated design teams, building a strong brand image in the industry with its excellent product design capabilities. The company's designed products have cumulatively received 172 domestic and international design awards, including top international accolades such as "IF Design Award," "Red Dot Award," "IDEA," and "G-Mark," and the company has been recognized as a "National Industrial Design Center" - The company established independent creative design centers in each business unit, leading the promotion of their respective creative design projects, while also focusing on cross-disciplinary integrated design teams[59] - Products such as showerheads, faucets, smart toilets, and oral irrigators designed by the company's design team have repeatedly won top international industrial design awards, including the "IF Design Award," "Red Dot Award," "IDEA," and "G-Mark," accumulating 172 domestic and international design awards[59] - The company has been recognized as a "National Industrial Design Center"[59] 4. Sharing Foundational Manufacturing Platform to Amplify Company's Scale Effect The company builds high-quality, high-efficiency, flexible, digital, and transparent intelligent manufacturing capabilities by integrating systems like CRM, PLM, SAP, OA, MES, SRM, and introducing automated equipment. To address the characteristics of multi-variety, small-batch orders, the company established multiple "foundational manufacturing shared platforms," including mold manufacturing, plastic processing, hardware processing, diverse surface treatments, and smart electronics, achieving manufacturing scale advantages and rapid market response. The company also obtained laboratory accreditations such as CNAS, IAPMO, and CSA, and has been recognized as a "National Green Factory" - The company builds high-quality, high-efficiency, flexible, digital, and transparent intelligent manufacturing capabilities through the full integration of systems such as CRM, PLM, SAP, OA, MES, SRM, and the development and introduction of automated equipment[60] - The company has built multiple "foundational manufacturing shared platforms," including mold manufacturing, plastic processing, hardware processing, diverse surface treatments, and smart electronics, serving different product categories and achieving manufacturing scale advantages[61] - The company has obtained multiple product-related quality certifications recognized by various countries and professional bodies globally, including Europe, North America, and Japan, as well as laboratory accreditations such as CNAS, IAPMO, and CSA[61] - The company has been recognized as "Fujian Province's First Batch of Green Supply Chain Enterprises" and a "National Green Factory"[61] 5. Global Customer Base Promotes Multi-Category Development The company possesses a diversified customer base covering over 50 countries and regions globally, including the United States, Europe, Japan, and Australia, primarily serving large international brand owners, chain retailers, and brand e-commerce platforms. This global customer foundation enables the company to quickly understand cutting-edge market technologies and demand hotspots, drive technological and product updates, and promote synergistic development of multi-category businesses through a shared customer resource platform - The company's customer base is geographically diversified, covering over 50 countries and regions globally, including the United States, Europe, Japan, and Australia, with major clients being large comprehensive or category-specific brand owners, chain retailers, and brand e-commerce platforms worldwide[62] - Through open communication and information sharing with clients, the company can quickly understand the most cutting-edge technologies and designs in various global regions, grasping product innovation directions and market demand hotspots at the earliest opportunity[62] - The company has established a unified customer resource sharing platform, allowing customer development for existing or new categories to fully leverage existing customer base resources, with cross-coverage of different customer groups generating synergistic effects[62] 6. Focusing on Talent Pipeline System Construction to Stimulate Innovation Vitality The company highly values human resources, utilizing various incentive mechanisms, including equity incentives, to fully mobilize the enthusiasm of directors, senior management, core technical personnel, and other employees. The company established diversified career development paths and a talent pipeline system, cultivating high-quality R&D engineers and management teams through mentorship, project experience, company training, and advanced studies at universities, and built a well-configured, synergistically complementary management team to stimulate talent innovation vitality - The company enhances operational efficiency through various incentive mechanisms, including equity incentives, fully mobilizing the enthusiasm of directors, senior management, core technical personnel, and other employees, stabilizing the core team while increasing its attractiveness to outstanding talent[63] - The company established a talent pipeline system, building diversified career development paths, emphasizing the cultivation of high-quality R&D engineers and R&D managers, employing mentorship, project experience, irregular company training, and advanced studies at universities as development methods[63] - Each business unit established a well-configured, advantageous, and synergistically complementary management team covering technology R&D, production management, and market sales, effectively promoting the construction of a modular, functional organizational talent pool[63] IV. Major Operating Performance During the Reporting Period This section provides a detailed analysis of the changes in the company's financial statement items for the first half of 2025. Operating revenue, total profit, net profit, and net cash flow from operating activities all significantly decreased year-on-year, primarily due to volatile international trade policies and macroeconomic conditions. However, investment income substantially increased due to higher structured deposits, and asset disposal gains and non-operating income also saw significant improvements. Financial expenses changed due to reduced exchange gains, and income tax expenses sharply declined due to lower total profit Analysis of Major Financial Statement Item Changes for H1 2025 | Item | Current Period Amount ($) | Prior Period Amount ($) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,140,172,608.33 | 1,447,519,151.97 | -21.23 | Affected by volatile international trade policies and macroeconomic conditions, revenue in the company's main sales regions declined year-on-year | | Operating Cost | 758,097,342.66 | 937,203,626.46 | -19.11 | | | Selling Expenses | 38,452,443.06 | 40,947,433.89 | -6.09 | | | Administrative Expenses | 153,908,328.29 | 135,783,798.74 | 13.35 | | | Financial Expenses | -8,942,590.20 | -15,891,979.13 | Not applicable | Primarily due to a year-on-year decrease in exchange gains from spot settlement of foreign currency cash this period | | R&D Expenses | 116,338,121.40 | 106,570,593.99 | 9.17 | | | Investment Income | 12,545,439.61 | 7,452,092.46 | 68.35 | Primarily due to a year-on-year increase in investment income from structured deposits this period | | Gains from Changes in Fair Value | 136,115.90 | 2,264,505.32 | -93.99 | Primarily due to a decrease in interest from unexpired structured deposits at period-end | | Credit Impairment Losses | 7,102,526.00 | 935,868.28 | 658.92 | Primarily due to a decrease in accounts receivable balance | | Gains on Disposal of Assets | 576,451.91 | 127,792.32 | 351.08 | Primarily due to an increase in gains on disposal of fixed assets this period | | Non-operating Income | 2,472,522.01 | 372,412.15 | 563.92 | Primarily due to the settlement of an outstanding lawsuit from the prior year-end after the current period, where actual losses incurred were less than the estimated liabilities at the prior year-end, resulting in a gain | | Non-operating Expenses | 1,204,269.64 | 472,146.22 | 155.06 | Primarily due to increased losses on disposal of fixed assets and donation expenses | | Income Tax Expense | 1,162,166.13 | 24,136,320.87 | -95.18 | Primarily due to a decrease in total profit this period | | Net Cash Flow from Operating Activities | 130,316,920.83 | 192,661,104.74 | -32.36 | Primarily due to decreased operating revenue | | Net Cash Flow from Investing Activities | 345,236,302.38 | -316,792,781.95 | Not applicable | Primarily due to an increase in matured structured deposit redemptions | | Net Cash Flow from Financing Activities | -115,684,404.53 | -172,192,384.10 | Not applicable | Primarily due to a year-on-year decrease in other cash payments related to financing activities; the prior period included payment for the acquisition of Beijiete's minority equity | (III) Analysis of Assets and Liabilities This section analyzes the changes in the company's period-end assets and liabilities. Monetary funds significantly increased due to structured deposit redemptions, while financial assets held for trading, notes receivable, and accounts receivable financing substantially decreased. Inventory grew, and new short-term borrowings were incurred. Contract liabilities rose due to increased advance receipts for goods, while taxes payable and estimated liabilities significantly decreased. Exchange differences from foreign currency financial statements of overseas subsidiaries led to a substantial change in other comprehensive income. Overseas assets accounted for 9.39% of total assets Analysis of Asset and Liability Changes (Period-end vs. Prior Year-end) | Item Name | Current Period-end Amount ($) | Prior Year-end Amount ($) | Change from Prior Year-end (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 866,111,530.95 | 500,125,771.55 | 73.18 | Primarily due to an increase in matured structured deposit redemptions | | Financial Assets Held for Trading | 780,852,747.96 | 1,262,716,632.06 | -38.16 | Due to a decrease in structured deposit balance | | Notes Receivable | 13,762,077.95 | 30,730,184.87 | -55.22 | Due to a decrease in the balance of commercial acceptance bills receivable | | Accounts Receivable Financing | 806,296.07 | 10,825,488.22 | -92.55 | Due to a decrease in the balance of bank acceptance bills receivable | | Other Receivables | 8,974,976.93 | 14,352,775.07 | -37.47 | Primarily due to a decrease in the balance of export tax rebates receivable | | Inventories | 345,108,322.64 | 289,655,342.60 | 19.14 | | | Short-term Borrowings | 1,000,000.00 | 0.00 | 100.00 | Period-end balance is from a technology innovation fund syndicated loan | | Notes Payable | 18,584,516.95 | 42,500,526.90 | -56.27 | Due to a decrease in the balance of bank acceptance bills payable | | Contract Liabilities | 54,668,240.29 | 39,135,043.74 | 39.69 | Primarily due to an increase in advance receipts for goods | | Taxes Payable | 15,927,739.53 | 37,079,215.32 | -57.04 | Primarily due to a decrease in the balance of corporate income tax payable | | Estimated Liabilities | 0.00 | 3,676,640.11 | -100.00 | An outstanding lawsuit from the prior year-end was settled after the current period, confirming the actual payment obligation | | Other Comprehensive Income | -13,112,064.20 | -1,552,940.61 | 744.34 | Primarily due to an increase in foreign currency financial statement translation differences generated by overseas subsidiaries this period | - Overseas assets amounted to $402,895,217.88, accounting for 9.39% of total assets[71] (IV) Analysis of Investment Status During the reporting period, the company actively engaged in external equity investments, establishing two wholly-owned subsidiaries, Xiamen Soling Robotics Technology Co., Ltd. and Xiamen Soling Great Health Technology Co., Ltd., and acquiring 100% equity in Xiamen Vidis Smart Motion System Co., Ltd. Regarding financial assets measured at fair value, there were significant purchases and redemptions of structured deposits, leading to a decrease in the period-end balance - During the reporting period, the company established subsidiaries Xiamen Soling Robotics Technology Co., Ltd. (registered capital CNY 100 million, established February 2025) and Xiamen Soling Great Health Technology Co., Ltd. (registered capital CNY 100 million, established April 2025)[73] - The company acquired 100% equity in Xiamen Vidis Smart Motion System Co., Ltd. (registered capital CNY 20 million, industrial and commercial change in March 2025)[73] Changes in Financial Assets Measured at Fair Value | Asset Category | Beginning Balance ($) | Purchases This Period ($) | Sales/Redemptions This Period ($) | Period-end Balance ($) | | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable Financing | 10,825,488.22 | 29,911,556.73 | 39,930,748.88 | 806,296.07 | | Structured Deposits | 1,262,716,632.06 | 1,688,000,000.00 | 2,170,000,000.00 | 780,852,747.96 | | Total | 1,273,542,120.28 | 1,717,911,556.73 | 2,209,930,748.88 | 781,659,044.03 | (VI) Analysis of Major Holding and Participating Companies This section lists the financial status of the company's major holding subsidiaries, including Zhangzhou Soling Company and Beijiete Company. Zhangzhou Soling Company reported negative operating profit and net profit during the reporting period, while Beijiete Company achieved profitability. During the reporting period, the company expanded its consolidation scope by establishing Soling Great Health Company and Soling Robotics Company, and through a non-same-control business combination with Vidis Company Financial Data of Major Subsidiaries (H1 2025) | Company Name | Company Type | Main Business | Registered Capital (CNY 10,000) | Total Assets (CNY 10,000) | Net Assets (CNY 10,000) | Operating Revenue (CNY 10,000) | Operating Profit (CNY 10,000) | Net Profit (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhangzhou Soling Company | Subsidiary | Manufacturing | 55,000.00 | 122,130.23 | 68,800.98 | 39,493.45 | -889.73 | -226.95 | | Beijiete Company | Subsidiary | Manufacturing | 2,868.81 | 51,645.61 | 42,035.08 | 22,116.72 | 1,860.15 | 1,654.81 | - During the reporting period, the company expanded its consolidation scope by establishing Soling Great Health Company and Soling Robotics Company, and through a non-same-control business combination with Vidis Company[78] V. Other Disclosures This section details the significant risks the company may face, including raw material price fluctuations, exchange rate volatility, global macroeconomic fluctuations, international trade frictions, geopolitical risks such as the Russia-Ukraine war and the Israeli-Palestinian conflict, and risks associated with new business development. The company is actively addressing these challenges by strengthening supply chain management, enhancing product competitiveness, and promoting the construction of overseas production bases (I) Potential Risks The company faces multiple risks, including raw material price fluctuations potentially impacting profitability; significant USD exchange rate volatility possibly leading to exchange losses; global macroeconomic fluctuations potentially affecting product exports; international trade frictions possibly resulting in increased tariffs or reduced customer demand; geopolitical risks like the Russia-Ukraine war and the Israeli-Palestinian conflict potentially affecting production costs and supply chain stability; and new business development possibly facing market demand changes and intensified competition - Raw material price fluctuations: Prices of raw materials such as plastic pellets, copper-zinc alloys, hardware components, and rubber components are influenced by international crude oil prices, copper prices, and supply-demand relationships, which may lead to a decrease in the company's gross profit margin[78] - Exchange rate fluctuation risk: The company's main export destinations are North America, Europe, and other regions, with the primary settlement currency being the US dollar; significant exchange rate fluctuations may lead to substantial exchange losses and a decrease in net profit margin[80] - Global macroeconomic fluctuation risk: Intensified global macroeconomic fluctuations may lead to local consumers reducing spending on kitchen and bathroom and great health software and hardware products, adversely affecting the company's export business[81] - International trade friction risk: The company's products are primarily exported to developed countries or regions such as the United States and Europe; intensified trade frictions and tariff impacts may lead the company to face risks such as reduced procurement prices, decreased overseas customer demand, or relocation[82] - Risk of adverse impact from the Russia-Ukraine war and Israeli-Palestinian conflict on the company's production and operations: Geopolitical risks may lead to rising prices of energy and other commodities, affecting production costs and supply chain stability, and eroding investor and consumer confidence[83] - Risks related to new business development: Market demand for new businesses may change, new competitors may emerge, and imitation of innovative products occurs frequently, which may lead to profitability not meeting expectations[84] Section IV Corporate Governance, Environment, and Society This section discloses changes in the company's corporate governance structure, including the abolition of the supervisory board and the establishment of employee directors. The company has approved a semi-annual profit distribution plan, proposing a dividend of $1.10 (tax inclusive) per 10 shares. Furthermore, as an enterprise legally required to disclose environmental information, the company has publicly disclosed environmental information as required and benefited 221 individuals through employment-based poverty alleviation in rural revitalization efforts - The company's general meeting of shareholders on May 21, 2025, approved the abolition of the supervisory board and the establishment of employee directors, leading to the departure of three supervisors[87] - The proposed semi-annual profit distribution plan is a dividend of $1.10 (tax inclusive) per 10 shares, with no bonus shares or capitalization of capital reserves[88] - The company has been included in the list of enterprises legally required to disclose environmental information and has disclosed environmental information in the designated system[88] - The company benefited 221 individuals through employment-based poverty alleviation, consolidating and expanding achievements in poverty eradication and rural revitalization[89] Section V Significant Matters This section details the company's significant matters during the reporting period, including the fulfillment of commitments, major related-party transactions, significant guarantees, and the progress of raised funds utilization. All company commitments were strictly fulfilled, and related-party transactions and guarantees complied with regulations. Raised funds were primarily invested in beauty and health and showerhead expansion and technical upgrade projects, and the Vietnam production base construction project, with the beauty and health project completed and generating benefits, while the Vietnam base construction is ongoing I. Fulfillment of Commitments All commitments made by the company's actual controllers, controlling shareholders, directors, supervisors, and senior management, whether during or continuing into the reporting period, were strictly fulfilled. These commitments cover various aspects such as share lock-up, avoidance of horizontal competition, regulation of related-party transactions, non-occupation of company funds, and social insurance and housing provident fund contributions, ensuring corporate governance compliance and investor interest protection - All company directors, supervisors, and senior management committed not to transfer more than 25% of their total shares annually during their tenure, not to transfer shares within six months after resignation, and not to abandon fulfillment due to changes in position or resignation[91] - The company's controlling shareholders and shareholders holding 5% or more of shares committed to disclose share reductions in advance after the lock-up period expires and to fulfill relevant obligations in accordance with laws and regulations[91] - The company, its controlling shareholders and actual controllers, directors, supervisors, and senior management all committed that if they fail to fulfill relevant commitments disclosed in public offering and listing documents, they will publicly explain the reasons, apologize, and bear compensation liability according to law[93][94][95] - The company's controlling shareholders, actual controllers, and other related parties committed to minimize related-party transactions with the issuer and its controlled subsidiaries, and if necessary related-party transactions occur, they will strictly adhere to the recusal system and sign agreements based on fair principles[97] - The company's controlling shareholders, actual controllers, and other related parties committed not to engage in businesses identical or similar to those of the issuer and its controlled subsidiaries, ensuring no horizontal competition, and committed to cede business opportunities to the issuer[97] X. Major Related-Party Transactions This section discloses the company's ordinary course related-party transactions during the reporting period, including purchases of goods/acceptance of services and sales of goods/provision of services, as well as asset acquisition related-party transactions. The company conducted multiple transactions with related parties such as Berlang Jiayuan Company, Soling Home Furnishing Company, Living Space Company, Xiaojingxi Company, and Zhangzhou Building Materials Company, and acquired 11.91% equity in Vidis Company from Soling Innovation Company, with the transaction price based on appraised value - The company held a board meeting on December 16, 2024, to forecast ordinary course related-party transactions for 2025[101] Related-Party Transactions for Purchase/Sale of Goods and Acceptance of Services (H1 2025) | Related Party | Related Transaction Content | Amount Incurred This Period ($) | Approved Transaction Limit ($) | Exceeded Limit | | :--- | :--- | :--- | :--- | :--- | | Berlang Jiayuan Company | Acceptance of Services | 0 | 2,000,000 | No | | Soling Home Furnishing Company (incl. subsidiaries) | Purchase of Goods | 37,468.34 | 2,000,000 | No | | Soling Home Furnishing Company (incl. subsidiaries) | Processing Services | 777,437.11 | 1,300,000 | No | | Living Space Company | Entertainment Services | 1,596,523.14 | 2,500,000 | No | Related-Party Transactions for Sale of Goods/Provision of Services (H1 2025) | Related Party | Related Transaction Content | Amount Incurred This Period ($) | | :--- | :--- | :--- | | Xiaojingxi Company | Sale of Goods | 3,046.42 | | Zhangzhou Building Materials Company | Provision of Services | 53,841.24 | | Soling Home Furnishing Company | Sale of Goods | 3,582.79 | | Soling Home Furnishing Company | Provision of Services | 181,279.54 | - The company acquired 11.91% equity in Vidis Company from Soling Innovation Company for a transfer price of $0.79 million, with the pricing based on appraised value[103] XI. Major Contracts and Their Fulfillment This section primarily discloses the company's significant guarantees fulfilled during the reporting period. All guarantees during the reporting period were for controlled subsidiaries, with no other external guarantees. The total guarantee balance for subsidiaries at the end of the reporting period was $18.50 million, accounting for 0.57% of the company's net assets - All company guarantees during the reporting period were for controlled subsidiaries, with no other external guarantees[106] Total Company Guarantees (Including Guarantees for Subsidiaries) | Indicator | Amount (CNY 10,000) | | :--- | :--- | | Total Guarantees for Subsidiaries Incurred This Period | 1,850.41 | | Total Guarantees for Subsidiaries Outstanding at Period-end (B) | 1,850.41 | | Total Guarantees (A+B) | 1,850.41 | | Ratio of Total Guarantees to Company's Net Assets (%) | 0.57 | XII. Progress Report on Use of Raised Funds This section details the overall utilization of the company's convertible bond raised funds and the specifics of investment projects. As of the end of the reporting period, cumulative investment of raised funds amounted to $334.26 million, with an investment progress of 55.63%. The beauty and health and showerhead expansion and technical upgrade project has completed investment and generated benefits, while the Vietnam production base Phase I construction project is ongoing. The company also utilized idle raised funds for cash management Overall Use of Raised Funds (Convertible Bonds) | Source of Raised Funds | Date Funds Received | Total Raised Funds (CNY 10,000) | Net Raised Funds (CNY 10,000) | Total Committed Investment of Raised Funds in Prospectus or Offering Circular (CNY 10,000) | Cumulative Investment of Raised Funds as of Period-end (CNY 10,000) | Cumulative Investment Progress of Raised Funds as of Period-end (%) | Amount Invested This Year (CNY 10,000) | Percentage of Amount Invested This Year (%) | Total Raised Funds with Changed Use (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Issuance of Convertible Bonds | July 26, 2022 | 61,000.00 | 60,080.80 | 60,080.80 | 33,425.80 | 55.63 | 6,885.63 | 11.46 | 35,392.66 | Detailed Use of Raised Fund Investment Projects (H1 2025) | Source of Raised Funds | Project Name | Project Nature | Is it a Committed Investment Project in the Prospectus or Offering Circular | Involves Change in Investment Direction | Planned Total Investment of Raised Funds (CNY 10,000) | Amount Invested This Year (CNY 10,000) | Cumulative Investment of Raised Funds as of Period-end (CNY 10,000) | Cumulative Investment Progress as of Period-end (%) | Benefits Achieved This Year (CNY 10,000) | Has Project Feasibility Undergone Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Issuance of Convertible Bonds | Beauty and Health and Showerhead Expansion and Technical Upgrade Project | Production and Construction | Yes | Yes, adjusted total raised funds investment | 26,540.17 | 0 | 26,540.17 | 100 | 2,048.95 | Yes, due to changes in the global economic landscape and increased uncertainty, the company decided to flexibly adjust its strategic deployment | | Issuance of Convertible Bonds | Vietnam Production Base Phase I Construction Project | Production and Construction | No | No | 35,392.66 | 6,885.63 | 6,885.63 | 19.45 | Not applicable | No | - The company manages idle raised funds as cash, with a period-end balance of $141 million[111] Section VI Share Changes and Shareholder Information This section details the company's share capital changes and shareholder holdings. During the reporting period, the company's total shares increased due to convertible bond conversions and the grant/cancellation of restricted shares. It also lists the top ten shareholders' holdings as of the end of the reporting period, showing a high combined shareholding ratio for controlling shareholder Soling Group Investment Co., Ltd. and actual controllers Mr. Zhou Huasong, Ms. Wu Wenli, and their related parties I. Share Capital Changes During the reporting period, the company's total shares increased from 427,293,610 shares to 432,895,283 shares, primarily due to the conversion of convertible bonds approved by the China Securities Regulatory Commission, the completion of registration for restricted shares granted under the reserved portion of the 2023 Restricted Stock Incentive Plan, and the cancellation of some restricted shares due to the departure of incentive recipients Table of Share Changes | | Number Before Change (shares) | Percentage Before Change (%) | Change (+,-) Issuance of New Shares (shares) | Change (+,-) Other (shares) | Change (+,-) Subtotal (shares) | Number After Change (shares) | Percentage After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 6,975,000 | 1.63 | 1,179,000 | -10,000 | 1,169,000 | 8,144,000 | 1.88 | | II. Unrestricted Tradable Shares | 420,318,610 | 98.37 | 0 | 4,432,673 | 4,432,673 | 424,751,283 | 98.12 | | III. Total Shares | 427,293,610 | 100 | 1,179,000 | 4,422,673 | 5,601,673 | 432,895,283 | 100 | - Share changes were primarily due to the conversion of "Soling Convertible Bonds" (4,432,673 shares), the completion of registration for restricted shares granted under the reserved portion of the 2023 Restricted Stock Incentive Plan (1,179,000 shares), and the cancellation of restricted shares (10,000 shares) due to the resignation of one incentive recipient[115][116] - As of August 25, 2025, the company's share capital increased from 432,895,283 shares to 432,899,688 shares, with basic earnings per share and net assets per share attributable to ordinary shareholders being diluted accordingly[117] II. Shareholder Information As of the end of the reporting period, the total number of ordinary shareholders was 6,713. Among the top ten shareholders, Soling Group Investment Co., Ltd. is the controlling shareholder, and Mr. Zhou Huasong, Xiamen Soling Investment Management Co., Ltd., Ms. Wu Wenli, and other related parties collectively hold a high proportion of shares. Mr. Zhou Huasong and Ms. Wu Wenli are spouses and the actual controllers of the company. The top ten restricted shareholders are all incentive recipients of the 2023 Restricted Stock Incentive Plan, including company executives, middle management, and core personnel - As of the end of the reporting period, the total number of ordinary shareholders was 6,713[120] Top Ten Shareholders' Holdings (As of Period-end) | Shareholder Name | Period-end Holding (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Soling Group Investment Co., Ltd. | 124,751,108 | 28.82 | Overseas Legal Person | | Zhou Huasong | 89,736,506 | 20.73 | Domestic Natural Person | | Xiamen Soling Investment Management Co., Ltd. | 88,965,300 | 20.55 | Domestic Non-state-owned Legal Person | | Wu Wenli | 31,243,380 | 7.22 | Domestic Natural Person | | National Social Security Fund 604 Portfolio | 6,389,990 | 1.48 | Other | | Zhou Huabai | 5,940,376 |