金证股份(600446) - 2025 Q2 - 季度财报

Definitions This section provides definitions for key terms used throughout the report Common Terms | Common Terms | Definition | | :--- | :--- | | Yuan, Ten Thousand Yuan | Refers to RMB Yuan, RMB Ten Thousand Yuan | | Reporting Period | Refers to January 1, 2025 to June 30, 2025 | Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and key financial performance indicators for the reporting period Company Basic Information This section discloses basic information about Shenzhen Kingdom Technology Co., Ltd., including its Chinese name, abbreviation, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Company's Chinese Name | Shenzhen Kingdom Technology Co., Ltd. | | Company's Chinese Abbreviation | Kingdom Technology | | Company's Legal Representative | Li Jieyi | Contact Information This section provides detailed contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, fax numbers, and email addresses Contact Information | Position | Board Secretary | Securities Affairs Representative | | :--- | :--- | :--- | | Name | Yin Ming | Chen Zhisheng | | Phone | 0755-86393989 | 0755-86393989 | | Email | yinming1@szkingdom.com | chenzhisheng@szkingdom.com | Changes in Basic Information This section outlines the company's basic information, such as its registered and office addresses, noting no historical changes during the reporting period - The company's registered and office addresses remained unchanged during the reporting period[16] Information Disclosure This section discloses the company's designated newspapers for information disclosure, the website address for its semi-annual report, and the location where the report is available for inspection - The company's designated newspapers for information disclosure are China Securities Journal, Shanghai Securities News, and Securities Times, with the report available on http://www.sse.com.cn[17](index=17&type=chunk) Stock Information This section provides brief information on the company's stock, including stock type, listing exchange, stock abbreviation, and stock code Company Stock Overview | Stock Type | Stock Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | Kingdom Technology | 600446 | Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue decreased by 48.55% year-on-year to 1.208 billion Yuan, primarily due to the scaling back of non-financial IT business, while net loss attributable to shareholders narrowed due to effective cost and expense control Key Accounting Data (January-June 2025) | Key Accounting Data | Current Reporting Period (Jan-Jun) (Yuan) | Prior Year Period (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,207,760,835.73 | 2,347,310,768.26 | -48.55 | | Total Profit | -33,802,114.27 | -97,320,886.34 | Not Applicable | | Net Profit Attributable to Shareholders of the Listed Company | -38,833,778.30 | -80,816,658.30 | Not Applicable | | Net Cash Flow from Operating Activities | -43,484,468.94 | -211,190,739.95 | Not Applicable | | Net Assets Attributable to Shareholders of the Listed Company (End of Period) | 3,687,498,611.39 | 3,647,916,401.79 | 1.09 | | Total Assets (End of Period) | 5,282,337,717.01 | 5,778,493,064.17 | -8.59 | Key Financial Indicators (January-June 2025) | Key Financial Indicators | Current Reporting Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic EPS (Yuan/share) | -0.0410 | -0.0854 | Not Applicable | | Diluted EPS (Yuan/share) | -0.0410 | -0.0854 | Not Applicable | | Weighted Average ROE (%) | -1.07 | -2.09 | Increased by 1.02 percentage points | - Operating revenue decreased by 48.55% year-on-year, primarily due to the company's focus on its core financial technology business, leading to a reduction in non-financial IT business scale and a decline in related revenue[20] - Net loss attributable to shareholders of the listed company narrowed year-on-year, attributed to the company's effective cost and expense control measures[20] Non-recurring Gains and Losses During the reporting period, the company's total non-recurring gains and losses amounted to 19,086,824.25 Yuan, primarily from fair value changes and disposal gains of financial assets, government grants, and reversal of impairment provisions for receivables Non-recurring Gains and Losses Items and Amounts | Non-recurring Gains and Losses Item | Amount (Yuan) | Notes (if applicable) | | :--- | :--- | :--- | | Gains and losses from disposal of non-current assets | 777,255.29 | | | Government grants recognized in current profit or loss | 3,955,496.43 | Primarily due to government grants received | | Gains and losses from changes in fair value and disposal of financial assets and liabilities | 19,612,563.51 | Primarily due to changes in fair value of trading financial assets held by the company and gains from disposal of trading financial assets | | Reversal of impairment provisions for receivables subject to separate impairment testing | 2,127,871.44 | | | Other non-operating income and expenses apart from the above | -1,971,389.39 | | | Less: Income tax impact | 4,048,414.96 | | | Impact on minority interests (after tax) | 1,366,558.07 | | | Total | 19,086,824.25 | | Management Discussion and Analysis This section provides management's discussion and analysis of the company's operations, financial condition, and future outlook, covering industry trends, business performance, core competencies, and risk factors Industry and Main Business Overview The company's core business deeply focuses on financial technology, offering full-stack and full-product-line solutions, holding a leading position in wealth and investment technology, while the industry undergoes comprehensive upgrades and transformation driven by national innovation strategies, AI, and accelerated adoption of emerging technologies in cross-border payments - The company's core business is deeply focused on financial technology, expanding its presence in wealth and investment technology to provide fundamental technology platforms, application software products, and information technology services for financial institutions including securities firms, funds, and banks[25] - The national innovation strategy accelerates the localization process in the financial industry, driving profound changes in financial IT architecture and emphasizing independent control over core technology systems[26][27] - New technologies such as artificial intelligence, generative AI, and large models are reshaping the financial industry landscape, upgrading from instrumental assistance to strategic support, helping FinTech companies enhance product quality and service efficiency[28][29] - Emerging technologies, including blockchain and distributed ledgers, are rapidly being applied in cross-border payments, driving the development of central bank digital currencies and stablecoins, and reshaping traditional payment systems[30] Operating Performance Analysis During the reporting period, the company's operating revenue decreased by 48.55% year-on-year, while net loss narrowed, primarily due to focusing on its core financial technology business, scaling back non-financial IT operations, and effective cost control; the company also continued to advance technological innovation, including upgrading core products for domestic innovation, expanding proprietary technology businesses, and accelerating AI large model application deployment - During the reporting period, the company achieved operating revenue of 1.208 billion Yuan, a year-on-year decrease of 48.55%; net profit attributable to shareholders of the listed company was -39 million Yuan, with losses narrowing year-on-year[30] - The company focused on its core financial technology business, scaled back non-financial IT operations, optimized business management, and enhanced product reusability and overall operational efficiency[31][36] - Adhering to technological innovation, the company promoted the domestic innovation upgrade of its new generation core products; based on the KOCA platform, the FS2.5 core trading system and A8 new generation investment trading system are steadily progressing with implementation at brokers such as CICC Wealth Securities and Guotou Securities[32][33] - Actively expanding its proprietary technology business, the company integrated investment management, investment research, and investment risk control products, strengthening core capabilities in investment management, and won a bid for a new generation proprietary fixed-income trading system project for a certain brokerage[34][40] - Accelerating the deployment of AI large models in applications, the company developed the KOCA AI platform to provide intelligent products for advisory, marketing, customer service, and risk control business scenarios, and independently developed the code large model K-CODE[35] - Wealth Technology (Securities IT) business continuously optimized products and services, focusing on the domestic innovation of new generation core systems, business innovation, and policy hot spots, with the FS2.5 core trading system steadily progressing at brokers such as CICC Wealth Securities and Guotou Securities[37][38] - Investment Technology (Asset Management IT, Proprietary Trading IT) business fully integrated R&D, product, and market systems, promoting the launch of the A8 new generation investment trading system at key clients, and winning the Bosera Fund IBOR platform project[39][40] - Other financial software and customized services business achieved an integrated payment platform upgrade in the banking sector and signed with Bank of Beijing, while customized services business solidified cornerstone clients and won multiple projects from the Shanghai Stock Exchange[41] - In other innovative businesses, associate company Jinzhiwei launched the new generation enterprise-level intelligent agent Ki-AgentS, Kingdom Smart upgraded its 'Smart Document' and 'Smart Agent' platforms, and StarNet Xintong added intelligent products such as an AI algorithm scheduling platform[42] - Non-financial businesses adopted a stable development strategy, continuously focusing on new business opportunities in artificial intelligence and large model fields[43] Analysis of Core Competencies As a key software enterprise within national strategic planning, the company has cultivated the financial technology sector for over two decades, establishing a leading industry position through continuous technological innovation, a rich product line, and strong brand reputation, with sustained high R&D investment and a complete technology platform ecosystem, particularly achieving significant progress in artificial intelligence - The company is a key software enterprise within national strategic planning, a Shenzhen high-tech enterprise, holding CMMI5 highest-level certification, maintaining high standards in process organization, software R&D, and quality management capabilities[44] - The company holds over 1,300 registered software copyrights, with R&D personnel accounting for over 70% of its total workforce, and invested 244 million Yuan in R&D during the first half of 2025, establishing the Kingdom Open Cloud Native Architecture (KOCA) platform[45] - In artificial intelligence, the company independently developed the financial domain-specific large language model K-GPT, the code large model K-CODE, and a development application platform, driving dual empowerment of technological and business innovation[45] - The company provides comprehensive, front-to-back office integrated solutions for financial institution clients, with core trading systems, investment management systems, and TA systems enjoying a strong customer base[46] - With over 20 years of experience in business system development and services in the financial sector, the company's products are stable, quality control is strict, and development processes are standardized, earning a strong brand reputation and widespread market recognition in the industry[46] Key Operating Performance This section details the company's key operating performance during the reporting period, including changes in financial statement items, segmented main business performance, asset-liability structure, external investment status, and operating results of major subsidiaries and associates; operating revenue and costs significantly decreased due to the scaling back of IT equipment distribution business, but gross profit margin in the financial industry improved, and the company terminated the transaction to sell equity in an associate Main Business Financial Analysis During the reporting period, both operating revenue and operating costs significantly decreased, primarily due to the reduction in IT equipment distribution business scale; financial expenses notably declined, and net cash flow from operating activities saw reduced losses, with gross profit margins generally improving across the financial industry and a substantial increase in the non-financial industry Analysis of Changes in Financial Statement Items (January-June 2025) | Item | Current Period Amount (Yuan) | Prior Year Period Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,207,760,835.73 | 2,347,310,768.26 | -48.55 | | Operating Cost | 755,348,025.79 | 1,887,341,567.88 | -59.98 | | Selling Expenses | 71,101,976.67 | 82,340,816.89 | -13.65 | | Administrative Expenses | 168,785,936.40 | 191,002,685.48 | -11.63 | | Financial Expenses | -4,589,053.43 | 3,712,646.98 | -223.61 | | R&D Expenses | 243,615,032.16 | 269,262,511.52 | -9.53 | | Net Cash Flow from Operating Activities | -43,484,468.94 | -211,190,739.95 | Not Applicable | | Net Cash Flow from Investing Activities | -61,748,049.72 | -87,884,720.90 | Not Applicable | | Net Cash Flow from Financing Activities | -266,198,670.98 | -25,897,300.16 | Not Applicable | - Changes in operating revenue and operating costs were primarily due to the reduction in the scale of IT equipment distribution business during the current period[48] - The change in financial expenses was mainly due to reduced financing needs and lower interest expenses in the current period[48] - The change in net cash flow from operating activities was primarily due to a decrease in cash paid for goods purchased and a reduction in employee compensation paid by the company during the current period[48] Main Business by Industry (January-June 2025) | By Industry | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Profit Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Operating Cost (%) | YoY Change in Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Industry | 881,351,708.07 | 505,245,667.72 | 42.67 | -5.84 | -9.88 | Increased by 2.56 percentage points | | Of which: Securities Brokerage Software Business | 249,154,878.38 | 28,480,363.50 | 88.57 | 3.32 | -25.03 | Increased by 4.32 percentage points | | Asset Management Software Business | 74,105,737.40 | 23,218,328.44 | 68.67 | -13.08 | -16.47 | Increased by 1.28 percentage points | | Banking Software Business | 75,092,011.15 | 54,998,937.77 | 26.76 | -54.92 | -63.48 | Increased by 17.18 percentage points | | Integrated Financial Software Business | 20,879,974.75 | 14,868,776.54 | 28.79 | 151.08 | 171.49 | Decreased by 5.35 percentage points | | Customized Services Business | 462,119,106.39 | 383,679,261.47 | 16.97 | 6.29 | 13.26 | Decreased by 5.11 percentage points | | Non-financial Industry | 326,278,999.42 | 250,102,358.07 | 23.35 | -76.74 | -81.03 | Increased by 17.33 percentage points | | Of which: Digital Economy Business | 106,677,693.08 | 78,300,492.71 | 26.60 | 18.60 | 0.57 | Increased by 13.15 percentage points | | IT Equipment Distribution Business | 181,128,009.97 | 158,549,291.07 | 12.47 | -85.77 | -87.06 | Increased by 8.72 percentage points | | Science Park Leasing Business | 38,473,296.37 | 13,252,574.29 | 65.55 | -5.06 | -16.21 | Increased by 4.58 percentage points | | Total | 1,207,630,707.49 | 755,348,025.79 | 37.45 | -48.37 | -59.80 | Increased by 17.79 percentage points | Main Business by Product (January-June 2025) | By Product | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Profit Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Operating Cost (%) | YoY Change in Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Software Business | 441,454,918.42 | 131,164,744.36 | 70.29 | -17.02 | -46.94 | Increased by 16.76 percentage points | | Hardware Business | 181,128,009.97 | 158,549,291.07 | 12.47 | -85.77 | -87.06 | Increased by 8.72 percentage points | | Customization and System Integration Services Business | 546,574,482.73 | 452,381,416.07 | 17.23 | 10.64 | 15.62 | Decreased by 3.56 percentage points | | Science Park Leasing Business | 38,473,296.37 | 13,252,574.29 | 65.55 | -5.06 | -16.21 | Increased by 4.58 percentage points | | Total | 1,207,630,707.49 | 755,348,025.79 | 37.45 | -48.37 | -59.80 | Increased by 17.79 percentage points | Assets and Liabilities Analysis At the end of the reporting period, total assets decreased by 8.59% year-on-year, while net assets attributable to shareholders of the listed company increased by 1.09%; monetary capital, accounts receivable, notes receivable financing, and inventory all significantly declined, while other non-current financial assets substantially increased, with overseas assets accounting for 2.30% of total assets, and some monetary capital restricted due to deposits and asset preservation Analysis of Changes in Assets and Liabilities (June 30, 2025) | Item Name | Current Period End Amount (Yuan) | % of Total Assets at Current Period End | Prior Year End Amount (Yuan) | % of Total Assets at Prior Year End | Change from Prior Year End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Capital | 1,254,543,400.23 | 23.75 | 1,618,964,347.86 | 28.02 | -22.51 | Primarily due to debt repayment and interest payments in the current period | | Accounts Receivable | 311,449,860.31 | 5.90 | 425,424,732.46 | 7.36 | -26.79 | Primarily due to collection of some accounts receivable in the current period | | Notes Receivable Financing | 5,918,852.73 | 0.11 | 36,036,599.66 | 0.62 | -83.58 | Primarily due to discounting of bank acceptance bills held in the current period | | Other Receivables | 47,290,743.19 | 0.90 | 87,074,861.92 | 1.51 | -45.69 | Primarily due to a decrease in intercompany balances in the current period | | Inventory | 415,343,632.43 | 7.86 | 531,079,202.89 | 9.19 | -21.79 | Primarily due to the impact of scaling back IT equipment distribution business | | Other Non-current Financial Assets | 350,615,788.66 | 6.64 | 89,707,599.62 | 1.55 | 290.84 | Primarily due to increased purchases of wealth management products in the current period | | Short-term Borrowings | 496,482,186.05 | 9.40 | 762,638,125.58 | 13.20 | -34.90 | Primarily due to loan repayments in the current period | | Notes Payable | 12,367,000.00 | 0.23 | 45,365,528.24 | 0.79 | -72.74 | Primarily due to maturity and settlement of notes payable in the current period | | Accounts Payable | 268,047,311.09 | 5.07 | 438,654,822.26 | 7.59 | -38.89 | Primarily due to the impact of scaling back IT equipment distribution business | - Overseas assets amounted to 121,613,113.16 Yuan, accounting for 2.30% of total assets[54] Major Restricted Assets at Period End | Item | Period End Balance (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Capital | 3,710,100.00 | Bank acceptance bill deposit | | Monetary Capital | 22,723,493.13 | Performance and letter of guarantee deposits | | Monetary Capital | 4,197,931.00 | Bank deposits frozen due to asset preservation application | | Total | 30,631,524.13 | | Investment Status Analysis At period-end, the company's non-trading equity instrument investments totaled 49,392,942.45 Yuan, and trading equity instrument investments totaled 58,204,900.99 Yuan; the long-term equity investment balance was 602,092,781.93 Yuan, primarily investments in associates, and the company continued to hold 50 million Yuan in Century Hongjin No. 2 Private Securities Investment Fund shares Non-trading Equity Instrument Investments (Period End) | Item | Period End Balance (Yuan) | | :--- | :--- | | Shenzhen United Imaging Medical Data Services Co., Ltd. | 7,609,277.06 | | Hebei Xinchuangda IoT Technology Co., Ltd. | 431,464.57 | | ZhengTong Co., Ltd. | 41,352,200.82 | | Total | 49,392,942.45 | Trading Equity Instrument Investments (Period End) | Item | Period End Balance (Yuan) | | :--- | :--- | | Shanghai Junhao Hongshi Venture Capital Center (Limited Partnership) | 50,150,608.70 | | Shenzhen Kingdom Cornerstone Industry Technology Co., Ltd. | 19,648.68 | | Shenzhen Xinglian Renju Technology Co., Ltd. | 126,651.85 | | Shanghai Guojun Venture Capital Zhengjun No. 1 Equity Investment Partnership (Limited Partnership) | 4,657,950.09 | | Shanxi Tongren Equity Investment Partnership (Limited Partnership) | 2,855,000.00 | | Qinglan Technology Media (Shenzhen) Co., Ltd. | 395,041.67 | | Total | 58,204,900.99 | - The company's long-term equity investment balance at period-end was 602,092,781.93 Yuan, primarily consisting of investments in associates[60] - The company continues to hold 50 million Yuan in Century Hongjin No. 2 Private Securities Investment Fund shares[62] Significant Asset and Equity Disposals The company terminated the transaction to sell its entire 14.4 million shares of Shenzhen StarNet Xintong Technology Co., Ltd. to Bangyan Technology Co., Ltd., with this termination having no material impact on the company's financial position - The company terminated the transaction to sell its entire 14.4 million shares of Shenzhen StarNet Xintong Technology Co., Ltd. to Bangyan Technology Co., Ltd.[63] - The termination of this transaction will not have a material impact on the company or its financial position[63] Analysis of Major Holding and Associate Companies This section presents financial data for the company's major subsidiaries and associates, including registered capital, total assets, net assets, operating revenue, operating profit, and net profit, highlighting the higher net profits of Shenzhen Qipusheng Technology Co., Ltd. and Kingdom Wealth Nanjing Technology Co., Ltd Situations where Net Profit of a Single Subsidiary or Investment Income from a Single Associate Exceeds 10% of Consolidated Net Profit (January-June 2025) | Company Name | Main Business | Registered Capital (Ten Thousand Yuan) | Total Assets (Ten Thousand Yuan) | Net Assets (Ten Thousand Yuan) | Operating Revenue (Ten Thousand Yuan) | Operating Profit (Ten Thousand Yuan) | Net Profit (Ten Thousand Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shenzhen Qipusheng Technology Co., Ltd. | Information Technology | 25,000.00 | 62,643.39 | 53,483.30 | 18,123.68 | 1,396.23 | 1,144.52 | | Kingdom Wealth Nanjing Technology Co., Ltd. | Information Technology | 3,716.47 | 50,327.48 | 19,584.09 | 4,034.78 | 1,145.14 | 1,145.78 | | Kingdom Financial Technology (Beijing) Co., Ltd. | Information Technology | 30,000.00 | 26,628.81 | 19,741.62 | 11,301.49 | -192.42 | -451.60 | | Nanjing Kingdom Information Technology Co., Ltd. | Information Technology | 13,605.00 | 38,061.02 | 13,171.30 | 2,198.42 | 520.37 | 520.63 | | Rengu Technology (Beijing) Co., Ltd. | Information Technology | 5,000.00 | 5,868.57 | 2,264.20 | 891.80 | -559.05 | -572.04 | | Hangzhou Kingdom Engine Technology Co., Ltd. | Information Technology | 3,000.00 | 10,305.42 | -124.19 | 1,038.22 | -394.60 | -495.31 | Other Disclosure Matters The company disclosed potential risks including industry technology upgrades, rising labor costs, and cyclical risks in downstream industries, outlining corresponding mitigation measures; concurrently, it actively implemented the 'Quality Improvement, Efficiency Enhancement, and Investor Returns' action plan, focusing on its core financial technology business, increasing investment in technological innovation, enhancing investor returns through share cancellation, and strengthening investor communication and standardized operations Risk Warning The company faces risks such as industry technology upgrades, rising labor costs, and cyclical fluctuations in the downstream securities industry; to mitigate these, the company plans to increase R&D investment, optimize human resource management, and expand into the broader financial IT sector - The company faces industry technology upgrade risks, requiring timely tracking of technological developments and the creation of new products that meet market demand, with the response being increased investment in fundamental technology and product development[67] - The company faces rising labor cost risks and will continuously optimize human resource management and implement talent incentive measures[67] - The company's core business is securities IT, facing cyclical risks in the downstream industry, which will be addressed by expanding into the broader financial IT sector and diversifying product lines[67] “Quality Improvement, Efficiency Enhancement, and Investor Returns” Action Plan The company actively implemented the 'Quality Improvement, Efficiency Enhancement, and Investor Returns' action plan, focusing on its core financial technology business, strengthening core technological and product competitiveness, and deepening its AI deployment; concurrently, the company highly values investor returns, enhancing shareholder value through the cancellation of repurchased shares, strengthening information disclosure and investor communication, and continuously improving its corporate governance structure - The company deeply focused on its core financial technology business, strengthening core technological and product competitiveness, and scaled back non-financial business lines to achieve sustainable development and reduce operating costs[68][69] - The company is committed to technological innovation, leveraging its self-developed KOCA platform to enable domestic innovation support for the new generation securities business integrated service platform FS2.5 and the new generation investment trading system A8, while deepening the R&D and application of AI large models K-CODE and K-GPT[70] - The company highly values investor returns, having approved the 'Proposal on Changing the Use of Repurchased Shares and Cancelling Them to Reduce Registered Capital,' planning to cancel 5,007,526 repurchased shares[71] - The company strengthened investor communication by improving the quality of information disclosure, regularly holding performance briefings, and utilizing diversified communication channels to enhance investor understanding and recognition[72][73] - The company adheres to standardized operations, improved its corporate governance structure by abolishing the supervisory board and revising relevant management systems, thereby enhancing internal control and risk management levels[74][75] Corporate Governance, Environment, and Society This section covers the company's corporate governance practices, environmental initiatives, social responsibilities, and profit distribution plans Profit Distribution Plan The company's board of directors resolved not to proceed with profit distribution or capital reserve capitalization for the first half of 2025 - The company will not carry out profit distribution or capital reserve capitalization for the first half of 2025[77] Significant Matters This section details significant matters including the fulfillment of commitments, major litigation, related party transactions, contract performance, and the use of raised funds Fulfillment of Commitments The company disclosed the fulfillment of its refinancing and other commitments, specifically noting strict adherence to the pledge not to directly or indirectly use raised funds for quasi-financial businesses, and Mr. Zhao Jian's commitment regarding share reduction activities Fulfillment of Commitments | Commitment Background | Commitment Type | Promisor | Commitment Content | Commitment Date | Fulfilled | Commitment Period | Timely and Strictly Fulfilled | If not timely fulfilled, explain specific reasons for non-fulfillment | If not timely fulfilled, explain next steps | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Commitments related to refinancing | Other | Kingdom Technology | Not to directly or indirectly use raised funds for quasi-financial businesses, and not to make new capital investments in quasi-financial businesses before the raised funds are fully utilized or within 36 months of the funds being in place | 2020/8/25 | Yes | 2020/8/25 to full utilization of raised funds | Yes | Not Applicable | Not Applicable | | Other commitments | Other | Zhao Jian | Due to share reduction during a blackout period, committed to remitting the differential gain of 336,732 Yuan, significantly reducing the scale of share reduction, promptly concluding the share reduction plan, and initiating a share repurchase plan as soon as possible after the statutory short-swing profit period, with no further share reductions for 12 months from the end of the repurchase plan | 2023/3/21 | Yes | 2023/3/21 to 2025/5/9 | Yes | Not Applicable | Not Applicable | Major Litigation and Arbitration During the reporting period, the company had no significant litigation or arbitration matters - The company had no significant litigation or arbitration matters during the reporting period[82] Significant Related Party Transactions During the reporting period, the company had no significant related party transactions concerning daily operations, asset or equity acquisitions/disposals, joint external investments, or related party creditor-debtor relationships - The company had no significant related party transactions during the reporting period[83][84][85] Fulfillment of Significant Contracts During the reporting period, the company's external guarantees (excluding those for subsidiaries) had zero occurrence and zero balance; total guarantees for subsidiaries amounted to 1,144 million Yuan in occurrences and 630 million Yuan in period-end balance, representing 17.08% of the company's net assets Company's External Guarantees (Excluding Guarantees for Subsidiaries) | Indicator | Amount (Ten Thousand Yuan) | | :--- | :--- | | Total Guarantee Occurrences in Reporting Period | 0 | | Total Guarantee Balance at Period End (A) | 0 | Company's Guarantees for Subsidiaries | Indicator | Amount (Ten Thousand Yuan) | | :--- | :--- | | Total Guarantee Occurrences for Subsidiaries in Reporting Period | 114,400.00 | | Total Guarantee Balance for Subsidiaries at Period End (B) | 63,000.00 | Company's Total Guarantees (Including Guarantees for Subsidiaries) | Indicator | Amount (Ten Thousand Yuan) | | :--- | :--- | | Total Guarantees (A+B) | 63,000.00 | | % of Total Guarantees to Company's Net Assets | 17.08 | Progress of Raised Funds Utilization The company's 2020 non-public offering raised net funds of 998.6734 million Yuan, with cumulative investment reaching 989.4642 million Yuan by the end of the reporting period, representing a 99.08% progress; the original fundraising projects were changed to six new projects in 2022 due to market fluctuations, and these projects have reached their intended usable state and been closed, with remaining funds permanently supplementing working capital Overall Utilization of Raised Funds (As of Period End) | Source of Raised Funds | Net Amount of Raised Funds (Ten Thousand Yuan) | Total Committed Investment of Raised Funds (Ten Thousand Yuan) | Total Cumulative Investment of Raised Funds as of Period End (Ten Thousand Yuan) | Cumulative Investment Progress of Raised Funds as of Period End (%) | Amount Invested This Year (Ten Thousand Yuan) | % of Amount Invested This Year | Total Amount of Raised Funds with Changed Use (Ten Thousand Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Issuance of shares to specific targets | 99,867.34 | 99,867.34 | 98,946.42 | 99.08 | 10,567.28 | 10.58 | 75,968.47 | | Total | 99,867.34 | 99,867.34 | 98,946.42 | / | 10,567.28 | / | 75,968.47 | - The original fundraising projects were changed to six new projects, including the 'Securities Domestic Innovation Project,' in 2022 due to market environment fluctuations[92] - The fundraising projects have reached their intended usable state, and the board of directors approved their closure, with the remaining raised funds permanently supplementing working capital[89] Detailed Utilization of Fundraising Projects (As of Period End) | Source of Raised Funds | Project Name | Project Nature | Is it a committed investment project in the prospectus | Involves change in investment direction | Planned Total Investment of Raised Funds (Ten Thousand Yuan) | Amount Invested This Year (Ten Thousand Yuan) | Total Cumulative Investment of Raised Funds as of Period End (Ten Thousand Yuan) | Investment Progress (%) | Date Project Reached Intended Usable State | Is it closed | Remaining Amount (Ten Thousand Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Issuance of shares to specific targets | Securities Domestic Innovation Project | R&D | No | Yes, this project is new | 51,091.62 | 6,896.95 | 50,475.97 | 98.80 | 2025年6月 | Yes | 615.65 | | Issuance of shares to specific targets | Open Cloud Native Microservices Platform Project | R&D | No | Yes, this project is new | 6,717.16 | 879.47 | 6,619.08 | 98.54 | 2025年6月 | Yes | 98.08 | | Issuance of shares to specific targets | Low-Code Development Platform Project | R&D | No | Yes, this project is new | 3,653.06 | 522.85 | 3,635.21 | 99.51 | 2025年6月 | Yes | 17.85 | | Issuance of shares to specific targets | Industry Chain Digital Service Platform Project | R&D | No | Yes, this project is new | 7,905.14 | 1,165.84 | 7,829.14 | 99.04 | 2025年6月 | Yes | 76.00 | | Issuance of shares to specific targets | Blockchain Innovation Platform Project | R&D | No | Yes, this project is new | 3,050.73 | 467.40 | 2,997.20 | 98.25 | 2025年6月 | Yes | 53.53 | | Issuance of shares to specific targets | Integrated Bank Wealth Management Services Project | R&D | No | Yes, this project is new | 3,550.76 | 634.78 | 3,490.96 | 98.32 | 2025年6月 | Yes | 59.80 | | Total | / | / | / | / | 99,867.34 | 10,567.28 | 98,946.42 | / | / | / | 920.92 | Share Changes and Shareholder Information This section outlines changes in the company's share capital and provides details on its shareholder structure, including major shareholders and their holdings Changes in Share Capital During the reporting period, the company's total share capital and equity structure remained unchanged; however, subsequent to the reporting period, the company approved the cancellation of 5,007,526 repurchased but unsold shares from 2022, which will reduce the total share capital but has no impact on financial indicators such as EPS and net assets per share for the reporting period - During the reporting period, the company's total share capital and equity structure remained unchanged[95] - Subsequent to the reporting period, the company plans to cancel 5,007,526 repurchased but unsold shares from 2022, reducing the company's total share capital from 946,275,005 shares to 941,267,479 shares[96][97] - The aforementioned cancellation of repurchased shares has no impact on the company's financial indicators such as earnings per share and net assets per share for the reporting period[97] Shareholder Information As of the end of the reporting period, the company had 90,581 common shareholders; among the top ten shareholders, Li Jieyi, Du Xuan, Zhao Jian, and Xu Minbo were the top four, all with a portion of their shares pledged - As of the end of the reporting period, the total number of common shareholders was 90,581[98] Top Ten Shareholders' Shareholdings (Excluding Shares Lent via Securities Refinancing) | Shareholder Name | Increase/Decrease During Reporting Period | Number of Shares Held at Period End | Proportion (%) | Number of Restricted Shares Held | Share Status | Number of Pledged, Marked, or Frozen Shares | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Li Jieyi | 0 | 84,566,270 | 8.94 | 0 | Pledged | 25,000,000 | | Du Xuan | 0 | 76,116,433 | 8.04 | 0 | Pledged | 6,562,500 | | Zhao Jian | 0 | 71,028,638 | 7.51 | 0 | Pledged | 48,620,000 | | Xu Minbo | 0 | 44,562,621 | 4.71 | 0 | Pledged | 24,372,000 | | Hong Kong Securities Clearing Company Limited | -584,811 | 19,174,017 | 2.03 | 0 | None | 0 | | Xuan Yuan Private Equity Investment Management (Guangdong) Co., Ltd. - Xuan Yuan Kexin No. 119 Private Securities Investment Fund | 0 | 9,245,800 | 0.98 | 0 | None | 0 | | Zhang Wu | 8,470,000 | 8,470,000 | 0.90 | 0 | None | 0 | | China Merchants Bank Co., Ltd. - Southern CSI 1000 ETF | 640,300 | 6,121,542 | 0.65 | 0 | None | 0 | | China Construction Bank Co., Ltd. - Hwabao CSI Financial Technology Theme ETF | 204,266 | 5,723,442 | 0.60 | 0 | None | 0 | | National Social Security Fund 604 Portfolio | 5,537,400 | 5,537,400 | 0.59 | 0 | None | 0 | - At the end of the reporting period, the company's special securities account for share repurchases held 7,201,126 shares, accounting for 0.76% of the company's total share capital at the end of the reporting period[101] Bond-Related Information This section confirms that the company had no outstanding corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds during the reporting period - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[104] - During the reporting period, the company had no convertible corporate bonds[104] Financial Report This section presents the company's unaudited financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed notes on accounting policies, tax information, and specific financial items Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[106] Financial Statements This section includes the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity for the first half of 2025, comprehensively reflecting the financial position at period-end, operating results, and cash flows during the reporting period Company Basic Information Shenzhen Kingdom Technology Co., Ltd. was established in October 2000, listed on the Shanghai Stock Exchange in December 2003, with a registered capital of 946,275,005.00 Yuan; the company's main business is software and information technology services with a broad scope, and as of June 30, 2025, 33 subsidiaries were included in its consolidated financial statements - Shenzhen Kingdom Technology Co., Ltd. was established in October 2000 and listed on the Shanghai Stock Exchange on December 24, 2003[138] - As of June 30, 2025, the company's total issued share capital was 946,275,005.00 shares, with a registered capital of 946,275,005.00 Yuan[138] - The company's main business belongs to the software and information technology services industry, with a business scope including technology development, production, and sales of computer application systems and supporting equipment[139] - A total of 33 subsidiaries were included in the scope of consolidated financial statements for the current period[140] Basis of Financial Statement Preparation These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission, on a going concern basis; the company assessed its ability to continue as a going concern for 12 months from the end of the reporting period and found no significant doubts - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and the relevant provisions of the China Securities Regulatory Commission's 'No. 15 Rules for Information Disclosure by Companies Issuing Securities to the Public - General Provisions on Financial Reports'[143] - These financial statements are prepared on a going concern basis; the company assessed its ability to continue as a going concern for 12 months from the end of the reporting period and found no significant doubts or circumstances regarding its going concern ability[144] Significant Accounting Policies and Estimates This section details the company's specific accounting policies and estimates for business combinations, financial instruments, revenue recognition, government grants, deferred tax assets/liabilities, and other areas, ensuring that the financial statements accurately and completely reflect the company's financial position - The company has formulated specific accounting policies and estimates for transactions and matters such as impairment provisions for receivables, depreciation of fixed assets, amortization of intangible assets, and revenue recognition, based on its actual production and operating characteristics[145] - Regarding financial instruments, the company classifies financial assets into three categories based on business models and contractual cash flow characteristics: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in current profit or loss[166] - For revenue recognition, the company recognizes revenue when it satisfies a performance obligation in a contract, meaning when the customer obtains control of the related goods or services, and applies different recognition principles based on the nature of the performance obligation[240][241][242][244][245] Taxation The company's main taxes include VAT, urban maintenance and construction tax, education surcharge, local education surcharge, corporate income tax, and property tax; the company and several subsidiaries benefit from high-tech enterprise or small-profit enterprise income tax preferential policies, with some subsidiaries also enjoying regional income tax incentives and VAT immediate refund policies Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Domestic sales; provision of processing, repair and maintenance services, etc. | 13%, 9%, 6%, 5%, 3% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7%, 5% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | | Corporate Income Tax | Taxable Income | 25%, 20%, 16.5%, 15% | | Property Tax | 70% of original property value or rental income | 1.2% or 12% | - The company and several of its subsidiaries are recognized as high-tech enterprises, and for the 2025 fiscal year, their corporate income tax is calculated at a reduced rate of 15%[265][267][268][269] - Some subsidiaries are eligible for small-profit enterprise income tax preferential policies, where the portion of annual taxable income not exceeding 1 million Yuan is included in taxable income at 25% and taxed at a rate of 20%[266] - Zhuhai Qipusheng Technology Co., Ltd. and Shenzhen Jinweilan Technology Co., Ltd. enjoy regional corporate income tax preferential policies, with corporate income tax levied at a reduced rate of 15%[267][269] - The company and its eligible subsidiaries enjoy VAT 'immediate refund' preferential treatment for income from self-developed and produced software products, where VAT is levied at the statutory rate of 13.00%, and the portion of the actual tax burden exceeding 3.00% is immediately refunded[270] Notes to Consolidated Financial Statements This section provides detailed notes and explanations for key items in the consolidated financial statements, including monetary capital, trading financial assets, accounts receivable, inventory, long-term equity investments, investment properties, fixed assets, right-of-use assets, intangible assets, long-term deferred expenses, deferred tax assets/liabilities, short-term borrowings, notes payable, accounts payable, contract liabilities, employee compensation payable, taxes payable, other payables, non-current liabilities due within one year, other current liabilities, lease liabilities, provisions, deferred income, share capital, capital reserves, treasury stock, other comprehensive income, surplus reserves, undistributed profits, operating revenue and costs, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, fair value change gains, credit impairment losses, asset impairment losses, asset disposal gains, non-operating income, non-operating expenses, income tax expenses, and cash flow statement items Monetary Capital (Period End Balance) | Item | Period End Balance (Yuan) | | :--- | :--- | | Cash on hand | 89,526.53 | | Bank deposits | 1,223,598,450.59 | | Other monetary capital | 30,855,423.11 | | Total | 1,254,543,400.23 | Trading Financial Assets (Period End Balance) | Item | Period End Balance (Yuan) | | :--- | :--- | | Structured deposits and wealth management product investments | 692,688,493.62 | | Private equity funds | 50,931,961.62 | | Total | 743,620,455.24 | Top Five Accounts Receivable and Contract Assets at Period End | Entity Name | Accounts Receivable Period End Balance (Yuan) | Contract Assets Period End Balance (Yuan) | Accounts Receivable and Contract Assets Period End Balance (Yuan) | % of Total Accounts Receivable and Contract Assets Period End Balance | Impairment Provision Period End Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | First | 0 | 151,002,793.88 | 151,002,793.88 | 12.21 | 70,967,532.70 | | Second | 14,134,017.91 | 23,961,557.73 | 38,095,575.64 | 3.08 | 2,271,228.74 | | Third | 7,674,636.00 | 29,188,293.02 | 36,862,929.02 | 2.98 | 2,868,375.42 | | Fourth | 5,499,815.01 | 31,247,900.34 | 36,747,715.35 | 2.97 | 3,329,727.32 | | Fifth | 3,815,453.75 | 19,530,736.73 | 23,346,190.48 | 1.89 | 1,542,814.11 | | Total | 31,123,922.67 | 254,931,281.70 | 286,055,204.37 | 23.13 | 80,979,678.30 | Inventory Classification (Period End Balance) | Item | Book Balance (Yuan) | Inventory Impairment Provision/Contract Performance Cost Impairment Provision (Yuan) | Book Value (Yuan) | | :--- | :--- | :--- | :--- | | Merchandise inventory | 6,083,018.85 | 371,311.49 | 5,711,707.36 | | Goods in transit | 50,784,328.08 | 0 | 50,784,328.08 | | Contract performance costs | 370,105,293.83 | 11,257,696.84 | 358,847,596.99 | | Total | 426,972,640.76 | 11,629,008.33 | 415,343,632.43 | Long-term Equity Investments (Period End Balance) | Investee | Period End Balance (Book Value) (Yuan) | Impairment Provision Period End Balance (Yuan) | | :--- | :--- | :--- | | Shenzhen Lihai Hongjin Technology Co., Ltd. | 2,929,398.74 | 2,126,457.87 | | Guangzhou Jiashida Software Co., Ltd. | 6,985,334.46 | 0 | | Shenzhen StarNet Xintong Technology Co., Ltd. | 75,260,442.38 | 0 | | Shenzhen Kingdom Culture & Sports Technology Co., Ltd. | 2,388,218.42 | 0 | | Wuhan Wireless Flying Technology Co., Ltd. | 6,612,765.69 | 0 | | Shenzhen Youpin Holdings Co., Ltd. | 100,053,292.27 | 0 | | Shenzhen Kingdom Smart Technology Co., Ltd. | 12,787,445.71 | 3,899,028.13 | | Gangrong Technology Co., Ltd. | 125,069,862.47 | 0 | | Wuhan Youpin Chuding Technology Co., Ltd. | 2,715,762.58 | 0 | | Zhuhai Jinzhiwei Information Technology Co., Ltd. | 129,946,063.81 | 0 | | Shenzhen Kedun Technology Co., Ltd. | 1,810,664.37 | 2,477,432.95 | | Shanghai Bokewei Industrial Co., Ltd. | 3,147,235.23 | 0 | | Shenzhen Kingdom Digital Technology Co., Ltd. | 6,571,092.29 | 0 | | Sichuan Tuotuodi Technology Co., Ltd. | 4,636,559.22 | 0 | | Jieli Tradingbao Financial Technology Co., Ltd. | 61,395,306.11 | 0 | | Yiku Software (Shenzhen) Co., Ltd. | 2,598,488.03 | 13,164,793.53 | | Hong Kong Zhuoxin Technology Co., Ltd. | 59,993,471.38 | 0 | | Beijing Kingdom Engine Technology Co., Ltd. | 464,433.75 | 0 | | Shenzhen Taojin Zhitou Technology Co., Ltd. | 3,387,902.14 | 0 | | Shenzhen Kingdom Silk Road Digital Technology Co., Ltd. | 167,375.07 | 0 | | Sichuan Kingdom Smart Tax Technology Co., Ltd. | 157,002.27 | 0 | | Guangdong Smart City Financial Services Technology Co., Ltd. | 152,592.58 | 0 | | Shenzhen Taigu Computer System Co., Ltd. | 2,626,773.23 | 0 | | Guangdong Suxiaoman Technology Co., Ltd. | 1,956,836.63 | 0 | | Hangzhou Kingdom Smart Payment Technology Co., Ltd. | 1,369,152.26 | 0 | | Guizhou Jiuyinqing Technology Co., Ltd. | 6,367,104.32 | 0 | | Shenzhen Kingdom Taoche Technology Co., Ltd. | 1,179,776.56 | 0 | | Fujian Hairong Haisi E-commerce Co., Ltd. | 5,773,126.11 | 0 | | Hangzhou Kingdom Engine International Technology Co., Ltd. | 72,811.22 | 0 | | Guizhou Zhongrongxin Accounts Receivable Trading Center Co., Ltd. | 4,277,129.19 | 0 | | Subtotal | 602,092,781.93 | 52,428,349.04 | Operating Revenue and Operating Cost (January-June 2025) | Item | Revenue (Yuan) | Cost (Yuan) | | :--- | :--- | :--- | | Main Business | 1,207,630,707.49 | 755,348,025.79 | | Other Business | 130,128.24 | 0 | | Total | 1,207,760,835.73 | 755,348,025.79 | Investment Income (January-June 2025) | Item | Amount Incurred This Period (Yuan) | | :--- | :--- | | Investment income from long-term equity investments accounted for using the equity method | 2,841,606.71 | | Investment income from disposal of long-term equity investments | 10,576.24 | | Investment income from trading financial assets during holding period | 4,076,768.79 | | Investment income from disposal of trading financial assets | 2,733,516.24 | | Total | 9,662,467.98 | R&D Expenses During the reporting period, the company's total R&D expenditure was 248,084,776.24 Yuan, comprising 243,615,032.16 Yuan in expensed R&D and 4,469,744.08 Yuan in capitalized R&D, with the Kingdom New Generation Digital Investment Banking Integrated Business Platform being a significant capitalized R&D project R&D Expenses by Nature of Expense (January-June 2025) | Item | Amount Incurred This Period (Yuan) | | :--- | :--- | | Employee compensation | 212,518,502.47 | | Service fees | 22,386,946.24 | | Expensed R&D | 243,615,032.16 | | Capitalized R&D | 4,469,744.08 | | Total | 248,084,776.24 | Development Expenditures for R&D Projects Meeting Capitalization Criteria (Period End Balance) | Item | Beginning Balance (Yuan) | Amount Increased This Period - Internal Development Expenditure (Yuan) | Period End Balance (Yuan) | | :--- | :--- | :--- | :--- | | Kingdom New Generation Digital Investment Banking Integrated Business Platform | 13,028,419.86 | 4,469,744.08 | 17,498,163.94 | | Total | 13,028,419.86 | 4,469,744.08 | 17,498,163.94 | Changes in Consolidation Scope During the reporting period, the company experienced no business combinations not under common control, business combinations under common control, reverse acquisitions, or disposals of subsidiaries leading to loss of control, thus no significant changes occurred in the scope of consolidation - During the reporting period, the company experienced no business combinations not under common control, reverse acquisitions, or disposals of subsidiaries leading to loss of control[446] Interests in Other Entities This section discloses the company's interests in subsidiaries, joint ventures, and associates; although the company holds less than half of the shares in Shenzhen Jinweilan Technology Co., Ltd., it maintains control by appointing more than half of the directors, with significant non-wholly owned subsidiaries including Rengu Technology (Beijing) Co., Ltd. and Hangzhou Kingdom Engine Technology Co., Ltd - The company holds a 47.25% equity interest in Shenzhen Jinweilan Technology Co., Ltd., but retains control by appointing more than half of the total directors, thus including it in the scope of consolidation[449] Significant Non-wholly Owned Subsidiaries (Period End Balance) | Subsidiary Name | Minority Shareholding (%) | Profit/Loss Attributable to Minority Shareholders This Period (Yuan) | Dividends Declared to Minority Shareholders This Period (Yuan) | Minority Interests Balance at Period End (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Rengu Technology (Beijing) Co., Ltd. | 10.00 | -572,044.77 | 0 | 2,264,197.04 | | Hangzhou Kingdom Engine Technology Co., Ltd. | 47.00 | -2,327,399.23 | 0 | -522,870.26 | Summary Financial Information of Associates (Period End Balance/Amount Incurred This Period) | Item | Period End Balance/Amount Incurred This Period (Yuan) | | :--- | :--- | | Total Investment Book Value | 602,092,781.93 | | --Net Profit | 2,852,182.95 | | --Other Comprehensive Income | 846,983.98 | | --Total Comprehensive Income | 3,699,166.93 | Government Grants During the reporting period, the company's deferred income related to government grants had a period-end balance of 2,685,926.24 Yuan, decreasing by 943,365.84 Yuan in the current period; total government grants recognized in current profit or loss amounted to 3,955,496.43 Yuan, all of which were income-related Liability Items Involving Government Grants (Period End Balance) | Financial Statement Item | Beginning Balance (Yuan) | New Grants Added This Period (Yuan) | Amount Recognized in Non-operating Income This Period (Yuan) | Amount Transferred to Other Income This Period (Yuan) | Other Changes This Period (Yuan) | Period End Balance (Yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 3,629,292.08 | 0 | 0 | 943,365.84 | 0 | 2,685,926.24 | Income Related | | Total | 3,629,292.08 | 0 | 0 | 943,365.84 | 0 | 2,685,926.24 | / | Government Grants Recognized in Current Profit or Loss (January-June 2025) | Type | Amount Incurred This Period (Yuan) | | :--- | :--- | | Income Related | 3,955,496.43 | | Total | 3,955,496.43 | Risks Related to Financial Instruments The company faces credit risk, liquidity risk, and market risk (including interest rate risk, foreign currency risk, and other price risks) in its operations; risk management is achieved by depositing funds with highly-rated financial institutions, regularly assessing customer credit, monitoring cash balances, and foreign currency exposures - The company faces credit risk, primarily from monetary capital and receivables, managed by depositing funds with highly-rated financial institutions and regularly assessing customer credit[458] - The company faces liquidity risk, managed by monitoring cash balances, marketable securities, and 12-month cash flow forecasts to ensure sufficient funds for debt repayment[459] - The company faces market risk, including interest rate risk (managed by determining the proportion of fixed vs. floating rate instruments) and foreign currency risk (primarily from HKD-denominated financial assets and liabilities, managed by buying and selling foreign currencies to maintain net exposure)[460] Fair Value Disclosure This section discloses the company's period-end assets and liabilities measured at fair value, totaling 1,273,186,504.84 Yuan, primarily comprising trading financial assets, other equity instrument investments, notes receivable financing, other non-current financial assets, and non-current assets due within one year, with most measured using Level 2 fair value Period End Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 1 Fair Value Measurement (Yuan) | Level 2 Fair Value Measurement (Yuan) | Level 3 Fair Value Measurement (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | :--- | | I. Recurring Fair Value Measurements | | | | | | (I) Trading financial assets | 0 | 743,620,455.24 | 0 | 743,620,455.24 | | (III) Other equity instrument investments | 0 | 49,392,942.45 | 0 | 49,392,942.45 | | (VI) Notes receivable financing | 0 | 5,918,852.73 | 0 | 5,918,852.73 | | (VII) Other non-current financial assets | 0 | 292,410,887.67 | 58,204,900.99 | 350,615,788.66 | | (VIII) Non-current assets due within one year | 0 | 123,638,465.76 | 0 | 123,638,465.76 | | Total assets measured at fair value on a recurring basis | 0 | 1,214,981,603.85 | 58,204,900.99 | 1,273,186,504.84 | - Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date[469] - Level 2 inputs are inputs other than quoted prices included within Leve