琏升科技(300051) - 2025 Q2 - 季度财报

Section 1 Important Notice, Table of Contents, and Definitions Important Notice The company's board, supervisory board, and senior management guarantee the semi-annual report's truthfulness and completeness, with no plans for cash dividends, bonus shares, or capital reserve conversions - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming individual and joint legal responsibility[4] - Company head Huang Mingliang, chief accountant Yang Ping, and head of accounting Ye Yixin declare the financial report in this semi-annual report is true, accurate, and complete[4] - The company plans no cash dividends, bonus shares, or capital reserve conversions into share capital[5] Table of Contents This report's clear table of contents is divided into eight sections, covering company profile, financial indicators, management discussion and analysis, corporate governance, significant matters, share changes, bond information, and financial reports Reference Documents Catalog Reference documents include signed and sealed financial statements, original audit reports, disclosed company documents, and the legal representative's signed semi-annual report - Reference documents include financial statements signed and sealed by the company head, chief accountant, and head of accounting[10] - Reference documents include original audit reports sealed by the accounting firm and signed by certified public accountants[10] - Reference documents include originals of all company documents and announcements disclosed during the reporting period[10] Definitions This section defines common terms used in the report, including company names, key subsidiaries, photovoltaic cell technologies (e.g., HJT, TOPCon, PERC), and related effects (LID, PID), ensuring accurate understanding - Liansheng Technology, the company, or the listed company refers to Liansheng Technology Co., Ltd., the listed entity[11] - HJT refers to Hetero Junction Technology, an efficient crystalline silicon solar cell structure[11] - TOPCon refers to Tunnel Oxide Passivating Contacts technology, which improves cell photoelectric conversion efficiency through specific structures[11] Section 2 Company Profile and Key Financial Indicators I. Company Profile Liansheng Technology Co., Ltd. (stock code: 300051) is listed on the Shenzhen Stock Exchange, with Huang Mingliang as its legal representative - The company's stock abbreviation is "Liansheng Technology", stock code 300051, listed on the Shenzhen Stock Exchange[16] - The company's legal representative is Huang Mingliang[16] II. Contact Person and Contact Information The company's board secretary is Wu Yanlan, and the securities affairs representative is Chen Silei, with consistent contact address and phone number, and email zqb@leasdgrp.cn - The board secretary is Wu Yanlan, and the securities affairs representative is Chen Silei[17] - The contact address is No. 8 Guanri Road, Xiamen Software Park Phase II, and the telephone number is 0592-2950819[17] - The email address is zqb@leasdgrp.cn[17] III. Other Information The company's registered address, office address, website, and email changed during the reporting period, with the registered address moving to Nantong High-tech Industrial Development Zone and website/email domains changing to .cn - The company's registered address changed to No. 66 Tongjia East Road, Nantong High-tech Industrial Development Zone[18] - The company's website changed from www.leasdgrp.com to https://www.leasdgrp.cn starting from July 17, 2025[18] - The company's email address changed from zqb@leasdgrp.com to zqb@leasdgrp.cn starting from July 17, 2025[18] IV. Key Accounting Data and Financial Indicators The company's operating revenue increased by 35.90% year-on-year, but net profit attributable to shareholders decreased by 18.24%, and net cash flow from operating activities significantly dropped by 139.55% Key Accounting Data and Financial Indicators (Year-on-Year Change) | Indicator | Current Reporting Period (yuan) | Prior Year Adjusted (yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 209,441,046.07 | 154,111,472.37 | 35.90% | | Net Profit Attributable to Listed Company Shareholders | -50,161,902.15 | -42,422,451.45 | -18.24% | | Net Profit Attributable to Listed Company Shareholders Excluding Non-Recurring Gains and Losses | -58,456,700.27 | -60,905,649.35 | 4.02% | | Net Cash Flow from Operating Activities | -28,229,578.46 | 71,379,190.53 | -139.55% | | Basic Earnings Per Share (yuan/share) | -0.13 | -0.12 | -8.33% | | Diluted Earnings Per Share (yuan/share) | -0.13 | -0.12 | -8.33% | | Weighted Average Return on Net Assets | -23.09% | -13.92% | -9.17% | | Total Assets (period-end) | 3,030,831,947.05 | 3,304,265,575.79 | -8.28% | | Net Assets Attributable to Listed Company Shareholders (period-end) | 193,784,657.10 | 241,842,814.58 | -19.87% | - The company adjusted the revenue recognition method for its network domain name business from gross to net, resulting in a simultaneous reduction of 9,991,419.48 yuan in consolidated operating revenue and operating costs for January-June 2024[22] V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under international or overseas accounting standards and those under Chinese accounting standards - The company reported no differences in net profit and net assets between financial statements disclosed under international accounting standards and those under Chinese accounting standards during the reporting period[25] - The company reported no differences in net profit and net assets between financial statements disclosed under overseas accounting standards and those under Chinese accounting standards during the reporting period[26] VI. Non-Recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 8,294,798.12 yuan, primarily comprising government subsidies, reversal of impairment provisions for receivables, and other non-operating income Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -320.27 | | Government subsidies recognized in current profit or loss | 12,118,085.22 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 1,348,892.05 | | Other non-operating income and expenses apart from the above | 703,179.72 | | Other profit and loss items conforming to the definition of non-recurring gains and losses | 11,384,023.55 | | Less: Income tax impact | 230,888.94 | | Impact on minority interests (after tax) | 17,028,173.21 | | Total | 8,294,798.12 | - The company has no other specific situations conforming to the definition of non-recurring gains and losses[29] Section 3 Management Discussion and Analysis I. Main Businesses Engaged by the Company During the Reporting Period The company's main businesses include photovoltaic cells, mobile communication resale, and property leasing, with the PV sector experiencing growth but facing oversupply and competition, while the company focuses on capacity expansion and technological innovation (I) Industry Overview During the Reporting Period The photovoltaic industry is crucial for global energy transition, with China's market growing 107% in H1 2025, despite facing oversupply and competition, as national policies guide towards high-quality development and large-scale renewable energy bases - China's photovoltaic market continued to grow in the first half of 2025, with installation forecasts revised upwards from 215-255 GW to 270-300 GW[31] - Domestic photovoltaic new installations reached 212.21 GW from January to June, a 107% year-on-year increase, with monthly peak installations growing 388% and setting a new historical high of 92.92 GW[31] - The state has intensively introduced a series of policies to promote expanded local consumption of new energy power, encourage the improvement of commercial models like "solar-plus-storage," and plan for an additional 253 million kilowatts of photovoltaic installations by 2030[32] (II) Company Business Overview and Main Products The company's core businesses are photovoltaic cells, mobile communication resale, and property leasing, with significant investments in high-efficiency HJT battery production, a growing mobile user base, and a thriving technology park - As of the end of the reporting period, the company's Meishan Danleng base has an installed standard capacity of 3.8 GW for heterojunction cells, and the Jiangsu Nantong base's first phase 3 GW high-efficiency heterojunction cell project is under construction[34] - The company's jointly developed G12 large-size crystalline silicon heterojunction perovskite tandem cell achieved a breakthrough in photoelectric conversion efficiency, certified by the National Photovoltaic Product Quality Supervision and Inspection Center to reach 32.99%[36] - As of June 30, 2025, the company's mobile communication resale active users reached 2.5484 million, including 714,000 China Telecom users and 1.8344 million China Mobile users[41] - As of June 30, 2025, Tianjin Liansheng Technology Park has attracted over 200 enterprises, primarily targeting the biomedical, internet, inspection and testing, and smart technology industries[42] (III) Main Operating Model The company's photovoltaic cell business operates on a self-production and self-sales model, while mobile communication resale combines direct and agency sales, with procurement driven by orders and R&D focused on independent innovation and collaboration - The photovoltaic cell business primarily adopts a self-production and self-sales model, emphasizing customer service[43] - The mobile communication resale business employs a marketing model combining direct sales and agency sales[44] - The procurement model is primarily based on customer orders, ensuring raw material supply through medium- and long-term agreements, and maintaining safety stock for common or critical raw materials[45] - The R&D model is primarily based on independent research and innovation, collaborating with universities and research institutes[48] (IV) Company's Operating Performance During the Reporting Period During the reporting period, the company's operating revenue increased by 35.90% to 209.441 million yuan, driven by solar cell business growth, but net profit attributable to parent company owners decreased by 18.24% to -50.1619 million yuan due to reduced government subsidies - During the reporting period, the company achieved operating revenue of 209.441 million yuan, a 35.90% increase year-on-year, primarily due to increased solar cell operating revenue[50] - Net profit attributable to parent company owners was -50.1619 million yuan, a 18.24% decrease year-on-year, mainly due to reduced government subsidies received during the period[50] - The company will adhere to a high-efficiency, differentiated competition strategy, accelerating technological upgrades to further improve HJT cell product conversion efficiency and reduce production costs[50] II. Analysis of Core Competitiveness The company's core competitiveness lies in its stable product quality, high-efficiency components, leading N-type heterojunction (HJT) technology, continuous cost reduction, experienced management team, and clear industrial layout and strategic positioning (I) Photovoltaic Cell Business The company's photovoltaic cell business focuses on N-type heterojunction (HJT) cells, boasting high conversion efficiency (over 26% average mass production efficiency), low degradation, low temperature coefficient, and high bifaciality, supported by continuous R&D and an experienced management team - The company's N-type heterojunction (HJT) cell mass production conversion efficiency can reach over 26% on average, and its independently developed high-efficiency HJT 0BB module power has reached a maximum of 781.97 W[51] - The company is actively focusing on silicon wafer thinning, silver-coated copper technology, 0BB technology, and indium-free target material technology, having completed mass production process development for 100 µm thick silicon wafer cells and using low-silver content paste (27%)[52][53] - The company possesses a professional management team with many years of experience in the solar photovoltaic industry, deeply understanding global PV technology development and business trends[54] - The company has invested in two heterojunction cell production bases: Meishan Danleng (3.8 GW) and Jiangsu Nantong (Phase I 3 GW under construction), with products positioned for the 210 mm size market, giving it a first-mover advantage[56] III. Main Business Analysis The company's operating revenue increased by 35.90% year-on-year, primarily due to an 83.87% surge in solar cell business revenue, while operating costs rose by 53.07%, and net cash flow from operating activities decreased by 139.55% due to increased cash payments for goods and services Main Financial Data Year-on-Year Change | Indicator | Current Reporting Period (yuan) | Prior Year (yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 209,441,046.07 | 154,111,472.37 | 35.90% | Increase in solar cell business operating revenue | | Operating Cost | 244,711,119.07 | 159,868,466.85 | 53.07% | Increase in solar cell business operating cost | | Selling Expenses | 5,273,222.17 | 14,306,706.84 | -63.14% | Disposal of subsidiary Sanwu Information | | Income Tax Expense | 3,310,641.57 | -28,312,870.32 | 111.69% | Decrease in deferred income tax assets recognized | | R&D Investment | 9,484,537.78 | 15,656,943.78 | -39.42% | Disposal of subsidiary Sanwu Information | | Net Cash Flow from Operating Activities | -28,229,578.46 | 71,379,190.53 | -139.55% | Increase in cash paid for goods and services | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin | Year-on-Year Change in Operating Revenue | | :--- | :--- | :--- | :--- | :--- | | Solar Cells and Modules | 154,655,672.01 | 213,640,398.12 | -38.14% | 83.87% | | Mobile Communication Resale Products | 33,665,304.73 | 18,565,552.75 | 44.85% | 26.98% | | Property Leasing | 20,216,369.34 | 12,484,759.27 | 38.24% | 3.57% | - This period's export operating revenue, operating cost, and gross margin increased by 2346.16%, 1432.60%, and 62.43% respectively year-on-year, primarily due to increased overseas sales of the company's solar cells[64] Production and Sales by Technology Category | Technology Category | Sales Volume | Sales Revenue (yuan) | Gross Margin | Production Capacity | Production Volume | Under Construction Capacity | Planned Capacity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Solar Cells | 345.38 MW | 144,889,180.35 | -40.83% | 2.8 GW | 365.80 MW | 4 GW | 20 GW | IV. Non-Core Business Analysis The company's non-core businesses impacted total profit, with negative investment income, significant asset impairment losses, and other income primarily from government subsidies and liquidated damages Impact of Non-Core Businesses on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -72,151.06 | 0.05% | Recognition of investment income from associates accounted for using equity method | Depends on company's future investment situation | | Asset Impairment | -18,574,034.19 | 13.81% | Provision for inventory depreciation | Depends on future impairment testing of inventory, contract assets, and fixed assets | | Non-Operating Income | 909,836.20 | -0.68% | Liquidated damages received | No | | Other Income | 12,224,275.44 | -9.09% | Government subsidies recognized during the reporting period | Depends on future government subsidies received | V. Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets and net assets attributable to listed company shareholders both decreased, with significant changes in various asset and liability items, and some assets subject to rights restrictions 1. Significant Changes in Asset Composition At the end of the reporting period, monetary funds decreased by 65.08% year-on-year due to increased cash payments for fixed asset construction, while accounts receivable decreased by 32.16% due to collections by subsidiary Meishan Liansheng, and construction in progress decreased by 44.26% as projects were transferred to fixed assets Significant Changes in Asset Composition | Item | End of Current Reporting Period (yuan) | Proportion of Total Assets | End of Prior Year Adjusted (yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 87,261,805.18 | 2.88% | 249,903,509.44 | 7.56% | -4.68% | Increase in cash paid for construction of fixed assets, intangible assets, and other long-term assets | | Accounts Receivable | 28,435,035.54 | 0.94% | 41,914,059.33 | 1.27% | -0.33% | Subsidiary Meishan Liansheng collected accounts receivable | | Prepayments | 8,930,561.24 | 0.29% | 29,284,925.66 | 0.89% | -0.60% | Decrease in prepaid material costs | | Long-term Equity Investments | 4,324,461.36 | 0.14% | 2,105,059.08 | 0.06% | 0.08% | Paid-in capital for investment in associates completed | | Fixed Assets | 1,695,057,024.86 | 55.93% | 1,430,453,261.71 | 43.29% | 12.64% | - | | Construction in Progress | 406,001,240.23 | 13.40% | 728,448,561.16 | 22.05% | -8.65% | Some construction in progress transferred to fixed assets | 2. Significant Changes in Liability Composition At the end of the reporting period, notes payable decreased by 61.25% year-on-year due to maturity and payment by subsidiary Meishan Liansheng, while non-current liabilities due within one year increased by 131.31% due to increased bank borrowings Significant Changes in Liability Composition | Item | End of Current Reporting Period (yuan) | Proportion of Total Assets | End of Prior Year (yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Notes Payable | 65,538,393.10 | 2.16% | 169,112,803.35 | 5.12% | -2.96% | Subsidiary Meishan Liansheng's notes payable matured and were settled | | Non-current Liabilities Due Within One Year | 108,211,429.54 | 3.57% | 46,782,711.52 | 1.42% | 2.15% | Increase in bank borrowings due within one year | | Other Current Liabilities | 43,218,712.48 | 1.43% | 32,374,652.32 | 0.98% | 0.45% | Increase in borrowings during the current period | | Other Non-current Liabilities | 24,771,182.00 | 0.82% | 16,073,826.00 | 0.49% | 0.33% | Interest-free loan obtained from controlling shareholder Hainan Liansheng during the current period | 3. Major Overseas Assets The company had no major overseas assets during the reporting period - The company reported no major overseas assets during the reporting period[77] 4. Assets and Liabilities Measured at Fair Value At period-end, the company's financial assets measured at fair value totaled 306,085.71 yuan, primarily comprising other equity instrument investments and accounts receivable financing, with cumulative fair value changes in other equity instrument investments recorded in equity amounting to -10,273,544.99 yuan Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | | Other Equity Instrument Investments | 27,154.93 | 26,455.01 | | Accounts Receivable Financing | 7,374,848.34 | 279,630.70 | | Total Above | 7,402,003.27 | 306,085.71 | - The cumulative fair value change of other equity instrument investments recognized in equity is -10,273,544.99 yuan, with the current year's fair value change being -699.92 yuan[79] 5. Asset Rights Restricted as of the End of the Reporting Period At the end of the reporting period, the company's monetary funds, inventories, fixed assets, and intangible assets were subject to rights restrictions, totaling 455,740,216.55 yuan in book value, primarily due to bank acceptance bill deposits, frozen funds, and mortgage/floating charge guarantees Asset Rights Restricted | Item | Period-End Book Balance (yuan) | Period-End Book Value (yuan) | Type of Restriction | | :--- | :--- | :--- | :--- | | Monetary Funds | 41,320,112.11 | 41,320,112.11 | Bank acceptance bill deposits, frozen funds | | Inventories | 29,329,568.38 | 16,395,436.84 | Floating charge guarantee | | Fixed Assets | 490,406,497.68 | 373,767,833.86 | Mortgage guarantee | | Intangible Assets | 34,261,003.75 | 24,256,833.74 | Mortgage guarantee | | Total | 595,317,181.92 | 455,740,216.55 | - | - Subsidiary Tianjin Liansheng provided mortgage guarantees for 170 million yuan in fixed asset loans using its own land use rights and buildings[82] - Subsidiary Meishan Liansheng provided floating charge guarantees for procurement framework contracts with inventories valued at 10 million yuan and 50 million yuan[82] VI. Investment Analysis During the reporting period, the company's investment decreased significantly by 76.29% year-on-year, with major non-equity investment projects in Meishan and Nantong for HJT cell production currently under construction, and no significant equity investments, raised capital usage, entrusted wealth management, derivative investments, or entrusted loans Investment Amount During the Reporting Period | Indicator | Investment Amount in Current Reporting Period (yuan) | Investment Amount in Prior Year (yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 145,932,804.03 | 615,400,796.97 | -76.29% | Significant Non-Equity Investments in Progress | Project Name | Investment Method | Fixed Asset Investment | Industry | Amount Invested in Current Reporting Period (yuan) | Cumulative Actual Investment as of Period-End (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Meishan New Energy 8GW HJT Cell Project | Self-built | Yes | New Energy Photovoltaic | 6,033,492.29 | 1,330,507,908.65 | | Nantong New Energy 12GW HJT Cell Project—Phase I 3GW | Self-built | Yes | New Energy Photovoltaic | 480,943.40 | 18,180,032.55 | - The company reported no entrusted wealth management, derivative investments, or entrusted loans during the reporting period[89][90][91] VII. Major Asset and Equity Sales The company did not undertake any major asset or equity sales during the reporting period - The company did not sell any major assets during the reporting period[92] - The company did not sell any major equity during the reporting period[93] VIII. Analysis of Major Holding and Associate Companies The company's major subsidiaries include Tianjin Liansheng (consolidated), Meishan Liansheng (consolidated), Jiangsu Liansheng, and Sanwu Digital; while Tianjin Liansheng and Meishan Liansheng saw significant revenue growth, their net profits were negative, but Sanwu Digital's net profit increased by 33.31% Major Subsidiaries and Associate Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Operating Revenue (yuan) | Net Profit (yuan) | Period-End Total Assets (yuan) | Period-End Net Assets (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Tianjin Liansheng (Consolidated) | Subsidiary | 173,653,151.37 | -134,594,989.62 | 2,921,380,908.99 | 741,138,609.48 | | Meishan Liansheng (Consolidated) | Subsidiary | 155,559,372.00 | -127,220,240.89 | 2,270,322,580.07 | 439,271,547.27 | | Jiangsu Liansheng | Subsidiary | 1,962,264.16 | -5,582,251.95 | 468,708,427.15 | 283,005,544.55 | | Sanwu Digital | Subsidiary | 18,124,666.75 | 7,573,678.51 | 53,540,851.61 | 28,441,654.37 | - This period's operating revenue increased by 69.45% year-on-year, primarily due to increased operating revenue from Meishan Liansheng's solar cell business[95] - Sanwu Digital's net profit increased by 33.31% year-on-year, mainly due to increased product gross profit[96] - During the reporting period, Anhui Liansheng New Energy Co., Ltd. was established as a subsidiary, with a net profit of 605.45 yuan[95] IX. Structured Entities Controlled by the Company The company reported no structured entities under its control during the reporting period - The company reported no structured entities under its control during the reporting period[97] X. Risks Faced by the Company and Countermeasures The company primarily faces policy, market competition, and raw material price fluctuation risks in the photovoltaic cell industry, which it addresses through policy monitoring, continuous R&D, cost reduction, enhanced customer service, talent acquisition, and optimized supply chain management (I) Photovoltaic Cell Industry Risks The photovoltaic cell industry faces risks from policy adjustments, intensified market competition, and volatile raw material prices, which the company addresses through strategic adjustments, continuous R&D, cost reduction, improved customer service, talent acquisition, and optimized supply chain management - Policy risk: The photovoltaic industry benefits from national industrial policies, and significant future policy adjustments could impact the industry[97] - Market risk: The industry has numerous competitors and rapid capacity expansion, potentially leading to intensified competition and periodic product price fluctuations[98] - Risk of significant raw material price fluctuations: Prices of major raw materials such as silicon wafers, silver paste, and other chemicals are prone to significant fluctuations[99] - Countermeasures include continuously advancing R&D and process upgrades for cost reduction and efficiency improvement, enhancing product performance and photoelectric conversion efficiency, and implementing an efficient supply chain management mechanism[98][99] XI. Registration Form for Investor Relations Activities During the Reporting Period On May 16, 2025, the company engaged with investors via an online platform, discussing content related to its investor relations activities on that date - The reception time was May 16, 2025, and the reception venue was the Value Online (https://www.ir-online.cn/) online platform for interactive communication[100] - The reception method was online platform communication, and the type of reception object was other investors' online questions[100] - The main content discussed and materials provided are detailed in the company's investor relations activity record table dated May 16, 2025[100] XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not disclosed a market value management system or a valuation enhancement plan - The company has not formulated a market value management system[101] - The company has not disclosed a valuation enhancement plan[101] 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[101] Section 4 Corporate Governance, Environment, and Society I. Changes in Directors, Supervisors, and Senior Management No changes occurred in the company's directors, supervisors, or senior management during the reporting period - No changes occurred in the company's directors, supervisors, or senior management during the reporting period[103] II. Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period The company plans no cash dividends, bonus shares, or capital reserve conversions into share capital for the semi-annual period - The company plans no cash dividends, bonus shares, or capital reserve conversions into share capital for the semi-annual period[104] III. Implementation of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company's 2024 restricted stock incentive plan is ongoing, with initial, partial reserved, and remaining reserved grants totaling 5.438 million restricted shares registered for 63 incentive recipients - On August 7, 2024, the company completed the initial grant registration for its 2024 restricted stock incentive plan, granting 5.228 million restricted shares to 51 incentive recipients[105] - On November 12, 2024, the company completed the partial reserved restricted stock grant registration for its 2024 restricted stock incentive plan, granting 1.05 million restricted shares to 9 incentive recipients[106] - On July 29, 2025, the company completed the remaining reserved restricted stock grant registration for its 2024 restricted stock incentive plan, granting 160,000 restricted shares to 3 incentive recipients[106] IV. Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[110] V. Social Responsibility The company adheres to a "win-win development, harmonious sharing, focused efficiency" philosophy, aiming to be a world-class high-efficiency solar enterprise through technological innovation and green development, while acknowledging areas for improvement in social responsibility fulfillment - The company adheres to a "win-win development, harmonious sharing, focused efficiency" value philosophy, with the vision of "becoming a world-class high-efficiency solar enterprise," deeply cultivating high-efficiency heterojunction (HJT) cell technology development[110] - The company further improves its governance structure, fully respects and safeguards the legitimate rights and interests of all shareholders, especially small and medium shareholders, and creditors, maintaining effective communication with shareholders through its official website, public accounts, phone, email, and interactive platforms[111] - The company strictly complies with labor laws and regulations, legally protecting employees' legitimate rights and interests, with all employees signing labor contracts in accordance with national and local laws and regulations, and providing "five insurances and one housing fund" welfare benefits[112] - During the reporting period, the company still had certain gaps in fulfilling its social responsibilities compared to relevant requirements, especially in areas such as "consolidating and expanding poverty alleviation achievements and rural revitalization work," where no work was carried out[114] Section 5 Significant Matters I. Commitments Fulfilled During the Reporting Period and Overdue Unfulfilled Commitments as of the End of the Reporting Period by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and Other Committed Parties During the reporting period, all commitments made by the company's controlling shareholder Hainan Liansheng Technology Co., Ltd. and its concerted parties, as well as the company's directors and senior management, including share lock-up and return compensation measures, were fulfilled - Hainan Liansheng committed to participating in this subscription with legal self-owned or self-raised funds, ensuring legal and compliant funding sources, with no external fundraising, nominee holdings, structured arrangements, or direct/indirect use of funds from the issuer, its controlling subsidiaries, or associate companies for this subscription[117] - The shares subscribed by Hainan Liansheng are restricted from transfer for 36 months from the end of the issuance, which has been fulfilled[117] - The company's controlling shareholder and concerted parties, and actual controller, have made commitments to ensure the effective implementation of the company's return compensation measures in accordance with relevant CSRC regulations, which have been fulfilled[118] - The company's directors and senior management committed to faithfully and diligently performing their duties, safeguarding the legitimate rights and interests of the company and all shareholders, and have made commitments to ensure the effective implementation of the company's immediate return compensation measures in accordance with relevant CSRC regulations, which have been fulfilled[119] II. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties The company reported no non-operating fund occupation by controlling shareholders or other related parties during the reporting period - The company reported no non-operating fund occupation by controlling shareholders or other related parties during the reporting period[121] III. Irregular External Guarantees The company reported no irregular external guarantees during the reporting period - The company reported no irregular external guarantees during the reporting period[122] 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[123] V. Explanation by the Board of Directors, Supervisory Board, and Audit Committee on the Accounting Firm's "Non-Standard Audit Report" for the Current Reporting Period The company reported no non-standard audit report during the reporting period - The company reported no non-standard audit report during the reporting period[124] VI. Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year The company reported no explanation regarding a non-standard audit report for the previous year during the reporting period - The company reported no explanation regarding a non-standard audit report for the previous year during the reporting period[124] VII. Bankruptcy and Reorganization Matters The company reported no bankruptcy and reorganization matters during the reporting period - The company reported no bankruptcy and reorganization matters during the reporting period[124] VIII. Litigation Matters The company is involved in significant litigation and arbitration, including a contract dispute with Nanjing Xingwangmeng Enterprise Management Partnership (Limited Partnership) where a settlement was reached but payments are overdue, leading to enforcement applications, and a domain name and trademark dispute with Facebook, Inc. and Instagram, LLC, resulting in a $5,461,851.20 judgment against the company, which has been appealed - The company's contract dispute with Nanjing Xingwangmeng Enterprise Management Partnership (Limited Partnership) has a final ruling that is effective, with the company winning, but some payments were not received on time, leading the company to file a lawsuit and apply for compulsory enforcement[125] - The company was sued by Facebook, Inc. and Instagram, LLC for domain name and trademark infringement, ordered to pay $5,461,851.20, and the company has filed an appeal[126] - The company's other minor lawsuits have a cumulative involved amount of 26.2453 million yuan, with some cases concluded or ongoing, causing no significant impact on the company[126] IX. Penalties and Rectification The company, Huang Mingliang, and Yang Ping received warning letters from the Jiangsu Securities Regulatory Bureau and regulatory letters from the Shenzhen Stock Exchange due to improper accounting for network domain name business and incorrect amortization of rent-free periods for industrial park leasing, leading to inaccurate financial statements in the 2023 annual report, with the company actively implementing rectifications - The company used the gross method for network domain name business accounting and amortized the rent-free period for some industrial park leasing businesses within the first lease year of the contract, rather than over the entire lease term[128] - These accounting treatments did not comply with relevant regulations, leading to inaccurate reporting of operating revenue, operating costs, and other accounting items in the company's 2023 annual report financial statements[128] - The Jiangsu Securities Regulatory Bureau issued administrative warning letters to the parties involved, which were recorded in their securities and futures market integrity files; the Shenzhen Stock Exchange issued regulatory letters to the company and relevant parties[128] - The company and relevant personnel have strictly followed the requirements of the Jiangsu Securities Regulatory Bureau, thoroughly reviewed the issues, actively rectified them, and submitted written reports within the specified deadline[129] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company reported no integrity issues concerning itself, its controlling shareholder, or its actual controller during the reporting period - The company reported no integrity issues concerning itself, its controlling shareholder, or its actual controller during the reporting period[130] XI. Significant Related Party Transactions The company reported no related party transactions concerning daily operations, asset/equity acquisitions/disposals, or joint external investments during the reporting period, but did have related party debt and credit transactions, including interest-free loans from its controlling shareholder Hainan Liansheng, and plans for a major asset reorganization involving share issuance and cash payment to acquire 69.71% of Xingshu Century's shares, which constitutes a related party transaction - The company reported no related party transactions concerning daily operations, asset or equity acquisitions/disposals, or joint external investments during the reporting period[130][131][133] Debts Payable to Related Parties | Related Party | Relationship | Reason for Formation | Beginning Balance (10,000 yuan) | Amount Added in Current Period (10,000 yuan) | Amount Repaid in Current Period (10,000 yuan) | Ending Balance (10,000 yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hainan Liansheng Technology Co., Ltd. | Controlling Shareholder | Shareholder Loan | 0 | 1,260 | 370 | 890 | - The company plans to acquire 69.71% of Xingshu Century's shares from 38 counterparties through a share issuance and cash payment, and simultaneously raise supporting funds from its controlling shareholder Hainan Liansheng, which constitutes a related party transaction[137] - The company's controlling subsidiary accepted an interest-free loan totaling no more than 140 million yuan from its controlling shareholder Hainan Liansheng Technology Co., Ltd., which constitutes a related party transaction[138] - The company and its controlling subsidiary Tianjin Liansheng provided full joint and several liability guarantees for its controlling sub-subsidiary Meishan Liansheng's loan application from Bank of China Co., Ltd., with the company's actual controllers Huang Mingliang and Ouyang Ping, and company directors Wang Xin and Wu Zirong, also providing full joint and several liability guarantees, constituting a related party transaction[139] XII. Major Contracts and Their Performance The company reported no trusteeship or contracting arrangements during the reporting period; its leasing operations include Tianjin Liansheng Industrial Park's external leasing, parent company office rentals, and a factory construction and leasing agreement between subsidiary Meishan Liansheng and Danleng Industrial Investment; the company has multiple significant guarantees, primarily for subsidiary loans, and has entered into several major operating and other significant contracts, such as solar cell production line procurement and HJT project construction contracts - The company reported no trusteeship or contracting arrangements during the reporting period[144][145] - Controlling subsidiary Tianjin Liansheng Industrial Park is open for external leasing, and the parent company leases out vacant office buildings[146] - Controlling sub-subsidiary Meishan Liansheng signed a factory construction and leasing agreement with Danleng County Industrial Investment Co., Ltd., where Danleng Industrial Investment will customize a factory for the "Phase I New Energy 8GW High-Efficiency Heterojunction Cell Project" with a 15-year lease term[146] Company's Guarantees for Subsidiaries | Name of Guaranteed Party | Guarantee Limit (10,000 yuan) | Actual Guarantee Amount (10,000 yuan) | Type of Guarantee | Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Meishan Liansheng Photovoltaic Technology Co., Ltd. | 55,000 | 48,096.3 | Joint and Several Liability Guarantee | No | | Meishan Liansheng Photovoltaic Technology Co., Ltd. | 20,000 | 5,665 | Joint and Several Liability Guarantee | No | | Xiamen Sanwu Digital Technology Co., Ltd. | 500 | 500 | Joint and Several Liability Guarantee | No | | Xiamen Sanwu Digital Technology Co., Ltd. | 1,000 | 9 | Joint and Several Liability Guarantee | No | | Tianjin Liansheng Technology Co., Ltd. | 20,000 | 16,700 | Joint and Several Liability Guarantee | No | | Xiamen Sanwu Digital Technology Co., Ltd. | 2,281.11 | 2,281.11 | Joint and Several Liability Guarantee | No | | Meishan Liansheng Photovoltaic Technology Co., Ltd. | 6,000 | 6,000 | Joint and Several Liability Guarantee | No | - The company signed a major operating contract with Suzhou Maxwell Technology Co., Ltd. for 2 solar cell production lines, each with a capacity of 1 GW/line, totaling 2 GW capacity[157][158] - The company's controlling sub-subsidiary Jiangsu Liansheng signed a construction contract for the heterojunction (HJT) solar cell production project with Emeishan Rongji Construction Co., Ltd.[159] XIII. Explanation of Other Significant Matters During the reporting period, the company experienced changes in registered capital and articles of association, disclosed its annual performance forecast, terminated a private placement of shares, and underwent a major asset reorganization, while its 2024 restricted stock incentive plan continued to progress - The company's registered capital and articles of association changed, with disclosure dates on January 6, January 21, and January 23, 2025[160] - The company disclosed its annual performance forecast on January 22, 2025[160] - The company terminated its private placement of shares, with disclosure dates on March 8 and April 21, 2025[160] - The company underwent a major asset reorganization, with disclosure dates on April 7, April 11, April 21, May 12, May 16, and June 16, 2025[160][161] - The company's 2024 restricted stock incentive plan continued to progress, with a disclosure date on June 24, 2025[161] XIV. Significant Matters of Company Subsidiaries During the reporting period, the company's controlling sub-subsidiary received government subsidies - The controlling sub-subsidiary received government subsidies, with a disclosure date on April 22, 2025[162] Section 6 Share Changes and Shareholder Information I. Share Changes During the reporting period, the company's total share capital remained unchanged at 371,976,690 shares, with the proportions of restricted and unrestricted shares also remaining constant, and no share repurchases or concentrated bidding reductions of repurchased shares Share Changes | Item | Number Before This Change (shares) | Proportion Before This Change | Net Increase/Decrease in This Change (shares) | Number After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 6,309,275 | 1.70% | 0 | 6,309,275 | 1.70% | | II. Unrestricted Shares | 365,667,415 | 98.30% | 0 | 365,667,415 | 98.30% | | III. Total Shares | 371,976,690 | 100.00% | 0 | 371,976,690 | 100.00% | - The reasons for share changes, approval status, transfer status, progress of share repurchase implementation, and progress of concentrated bidding reduction of repurchased shares are all not applicable or unchanged during the reporting period[166] II. Securities Issuance and Listing The company's 2024 restricted stock incentive plan continued to advance, with the registration of the remaining reserved restricted shares for 3 incentive recipients, totaling 160,000 shares, completed on July 29, 2025, and listed on August 1, 2025 Securities Issuance During the Reporting Period | Name of Stock and Derivative Securities | Issuance Date | Issuance Price (or Interest Rate) | Issuance Quantity (shares) | Listing Date | Quantity Approved for Listing (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | RMB Ordinary Shares (Restricted Stock) | July 31, 2025 | 4.33 yuan/share | 160,000 | August 1, 2025 | 160,000 | - On July 29, 2025, the company completed the registration of the remaining reserved restricted shares for its 2024 restricted stock incentive plan, granting a total of 160,000 restricted shares to 3 incentive recipients, with the listing date for these reserved restricted shares being August 1, 2025[167][168] III. Company Shareholder Numbers and Shareholding At the end of the reporting period, the total number of ordinary shareholders was 23,068, with controlling shareholder Hainan Liansheng Technology Co., Ltd. holding 13.87% and Wan Jiugen holding 5.69% as a concerted party; Wan Jiugen's shares among the top ten shareholders are pledged - At the end of the reporting period, the total number of ordinary shareholders was 23,068[170] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-End (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Number of Pledged Shares (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hainan Liansheng Technology Co., Ltd. | Domestic Non-State-Owned Legal Person | 13.87% | 51,601,566 | 51,601,566 | Not Applicable | 0 | | Wan Jiugen | Domestic Natural Person | 5.69% | 21,175,200 | 21,175,200 | Pledged | 21,175,200 | | Caida Securities - China Merchants Bank - Caida Securities No. 5 Collective Asset Management Plan for Securities Industry Support for Private Enterprises Development Series | Other | 4.91% | 18,246,300 | 18,246,300 | Not Applicable | 0 | | Liang Chunyan | Domestic Natural Person | 4.71% | 17,513,000 | 17,513,000 | Not Applicable | 0 | | Jiang Guoxiang | Domestic Natural Person | 4.55% | 16,940,108 | 16,940,108 | Not Applicable | 0 | - Wan Jiugen is the spouse of Huang Mingliang's sister, the actual controller of Hainan Liansheng, constituting a concerted party; Wan Jiugen has entrusted his voting rights in the company's shares to Hainan Liansheng Technology Co., Ltd.[172] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, the shareholdings of the company's directors, vice chairman, general manager, CFO, vice general managers, and board secretary remained unchanged from the beginning to the end of the period, and all held granted restricted shares Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Beginning Balance of Shares Held (shares) | Ending Balance of Shares Held (shares) | Number of Restricted Shares Granted at Period-End (shares) | | :--- | :--- | :--- | :--- | :--- | | Wang Xin | Director | 800,000 | 800,000 | 800,000 | | Zhu Jiang | Director, Vice Chairman | 600,000 | 600,000 | 600,000 | | Yang Ping | Director, General Manager, CFO | 450,000 | 450,000 | 450,000 | | Ye Mao | Vice General Manager | 400,000 | 400,000 | 400,000 | | Wu Yanlan | Board Secretary | 250,000 | 250,000 | 250,000 | | Zhang Weiwei | Vice General Manager | 215,000 | 215,000 | 200,000 | | Tang Jinglei | Vice General Manager | 226,700 | 226,700 | 200,000 | | Total | -- | 2,941,700 | 2,941,700 | 2,900,000 | 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[174] - The company's actual controller remained unchanged during the reporting period[174] VI. Preferred Shares The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[175] Section 7 Bond-Related Information The company reported no bond-related information during the reporting period - The company reported no bond-related information during the reporting period[177] Section 8 Financial Report I. Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[179] II. Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, providing a comprehensive overview of its financial position, operating results, and cash flows 1. Consolidated Balance Sheet](index=55&type=section&id=1%E3%80%81Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's consolidated total assets amounted to 3.03 billion yuan, total liabilities to 2.324 billion yuan, and total owners' equity attributable to the parent company to 193.78 million yuan Consolidated Balance Sheet Key Data | Item | Ending Balance (yuan) | Beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 3,030,831,947.05 | 3,304,265,575.79 | | Total Liabilities | 2,324,418,075.38 | 2,457,361,951.67 | | Total Owners' Equity Attributable to Parent Company | 193,784,657.10 | 241,842,814.58 | 2. Parent Company Balance Sheet](index=57&type=section&id=2%E3%80%81Parent%20Company%20Balance%20Sheet) As of June 30, 2025, the parent company's total assets amounted to 600.13 million yuan, total liabilities to 185.77 million yuan, and total owners' equity to 414.37 million yuan Parent Company Balance Sheet Key Data | Item | Ending Balance (yuan) | Beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 600,134,259.80 | 629,031,679.44 | | Total Liabilities | 185,767,685.48 | 213,953,871.30 | | Total Owners' Equity | 414,366,574.32 | 415,077,808.14 | 3. Consolidated Income Statement](index=60&type=section&id=3%E3%80%81Consolidated%20Income%20Statement) For the first half of 2025, the company's consolidated total operating revenue was 209.441 million yuan, net profit was -137.818 million yuan, and net profit attributable to parent company shareholders was -50.1619 million yuan Consolidated Income Statement Key Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 209,441,046.07 | 154,111,472.37 | | Operating Profit | -135,210,873.60 | -189,557,485.34 | | Net Profit | -137,818,655.72 | -145,151,204.83 | | Net Profit Attributable to Parent Company Shareholders | -50,161,902.15 | -42,422,451.45 | | Basic Earnings Per Share | -0.13 | -0.12 | 4. Parent Company Income Statement](index=62&type=section&id=4%E3%80%81Parent%20Company%20Income%20Statement) For the first half of 2025, the parent company's operating revenue was 32.845 million yuan, and net profit was -4.064 million yuan Parent Company Income Statement Key Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Operating Revenue | 32,844,960.10 | 33,478,408.00 | | Operating Profit | -3,996,809.07 | -993,982.72 | | Net Profit | -4,064,073.28 | 14,017,704.05 | 5. Consolidated Cash Flow Statement](index=63&type=section&id=5%E3%80%81Consolidated%20Cash%20Flow%20Statement) For the first half of 2025, the company's consolidated net cash flow from operating activities was -28.23 million yuan, from investing activities was -147.55 million yuan, from financing activities was 63.17 million yuan, and the net increase in cash and cash equivalents was -112.22 million yuan Consolidated Cash Flow Statement Key Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -28,229,578.46 | 71,379,190.53 | | Net Cash Flow from Investing Activities | -147,550,437.49 | -603,439,846.97 | | Net Cash Flow from Financing Activities | 63,169,986.98 | 328,833,484.46 | | Net Increase in Cash and Cash Equivalents | -112,220,758.88 | -203,204,005.85 | 6. Parent Company Cash Flow Statement](index=64&type=section&id=6%E3%80%81Parent%20Company%20Cash%20Flow%20Statement) For the first half of 2025, the parent company's net cash flow from operating activities was -28.87 million yuan, from investing activities was 7.47 million yuan, from financing activities was -2.08 million yuan, and the net increase in cash and cash equivalents was -23.48 million yuan Parent Company Cash Flow Statement Key Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -28,870,407.03 | -5,075,205.84 | | Net Cash Flow from Investing Activities | 7,472,600.17 | 8,574,599.27 | | Net Cash Flow from Financing Activities | -2,084,143.32 | 7,791,055.41 | | Net Increase in Cash and Cash Equivalents | -23,482,869.43 | 11,277,999.08 | 7. Consolidated Statement of Changes in Owners' Equity](index=65&type=section&id=7%E3%80%81Consolidated%20Statement%20of%20Changes%20in%20Owners%27%20Equity) For the first half of 2025, the company's consolidated total owners' equity decreased by 140.49 million yuan, primarily due to net profit losses and changes in minority interests Consolidated Statement of Changes in Owners' Equity | Item | Beginning Balance (yuan) | Amount of Change in Current Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | | Total Owners' Equity Attributable to Parent Company | 241,842,814.58 | -48,058,157.48 | 193,784,657.10 | | Minority Interests | 605,060,809.54 | -92,431,594.97 | 512,629,214.57 | | Total Owners' Equity | 846,903,624.12 | -140,489,752.45 | 706,413,871.67 | 8. Parent Company Statement of Changes in Owners' Equity](index=69&type=section&id=8%E3%80%81Parent%20Company%20Statement%20of%20Changes%20in%20Owners%27%20Equity) For the first half of 2025, the parent company's total owners' equity decreased by 711,233.82 yuan, mainly due to net profit losses and the impact of share-based payments recognized in owners' equity Parent Company Statement of Changes in Owners' Equity | Item | Beginning Balance (yuan) | Amount of Change in Current Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | | Total Owners' Equity | 415,077,808.14 | -711,233.82 | 414,366,574.32 | | Capital Reserve | 571,993,816.52 | 3,353,434.38 | 575,347,250.90 | | Retained Earnings | -511,491,313.51 | -4,064,073.28 | -515,555,386.79 | III. Company Basic Information Liansheng Technology Co., Ltd., formerly Xiamen Sanwu Internet Technology Co., Ltd., was listed on the Shenzhen Stock Exchange on February 11, 2010, changed its name to Liansheng Technology Co., Ltd. on September 5, 2023, and relocated its registered office to Nantong on February 26, 2024, primarily engaging in photovoltaic cell and mobile communication resale businesses, with its consolidated financial statements for this period including ten companies such as Tianjin Liansheng Technology Co., Ltd. and Xiamen Sanwu Digital Technology Co., Ltd. - The company, formerly Xiamen Sanwu Internet Technology Co., Ltd., was listed on the Shenzhen Stock Exchange on February 11, 2010[