汇洲智能(002122) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions This section provides crucial disclaimers, lists reference documents, and defines key terms used throughout the report for clarity Important Notice The company's board, supervisory board, and senior management guarantee the accuracy and completeness of the semi-annual report, with no plans for cash dividends or bonus shares - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[3] - Company head Wu Jianfei, chief accountant Jiang Xueqian, and head of accounting Chen Yingying declare the financial report is true, accurate, and complete[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4] Catalog of Reference Documents Reference documents include signed financial statements and original announcements of all publicly disclosed company files during the reporting period - Reference documents include financial statements signed and sealed by the company head, chief accountant, and head of accounting[8] - Originals of all company documents and announcements publicly disclosed during the reporting period are also available for reference[9] Definitions This section defines common terms used in the report, including company names, reporting periods, and major shareholders, to ensure clear understanding - “The Company”, “Company”, and “Huizhou Intelligent” all refer to Huizhou Intelligent Technology Group Co., Ltd[10] - “Reporting Period”, “This Reporting Period”, and “Current Period” refer to January 1, 2025, to June 30, 2025[10] - “Controlling Shareholder” and “Sihe Julu” refer to Sihe Julu Information Technology Group Co., Ltd[10] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and key financial performance metrics for the reporting period I. Company Profile Huizhou Intelligent Technology Group Co., Ltd., stock code 002122, is listed on the Shenzhen Stock Exchange, with Wu Jianfei as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Huizhou Intelligent | | Stock Code | 002122 | | Listing Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | Huizhou Intelligent Technology Group Co., Ltd. | | Legal Representative | Wu Jianfei | II. Contact Persons and Information The company's board secretary is Wu Ning and securities affairs representative is Zhang Li, both reachable at the Beijing address, phone 010-85660012, and email dsh@hzitg.com Company Contact Information | Position | Name | Contact Address | Phone/Fax | Email | | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Wu Ning | No. 18, Zhichun Road A, Haidian District, Beijing | 010-85660012 | dsh@hzitg.com | | Securities Affairs Representative | Zhang Li | No. 18, Zhichun Road A, Haidian District, Beijing | 010-85660012 | dsh@hzitg.com | III. Other Information The company's registered address changed to Quzhou, Zhejiang in July 2025, with other contact details and information disclosure locations remaining unchanged - The company's registered address changed to Room 401, Unit 1, Building 2, Tongxin Road 135, Jinchuan Street, Changshan County, Quzhou City, Zhejiang Province in July 2025, and industrial and commercial change registration has been completed[14] - The company's office address, website, and email address remained unchanged during the reporting period[14] - Information disclosure and placement locations remained unchanged during the reporting period, as detailed in the 2024 annual report[15] IV. Key Accounting Data and Financial Indicators The company reported a 19.28% revenue increase to 547.98 million yuan, while net profit attributable to shareholders decreased by 66.81% to 18.99 million yuan, with operating cash flow improving by 35.33% Key Accounting Data and Financial Indicators (Year-on-Year) | Indicator | Current Period (RMB) | Prior Period (Adjusted) (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 547.98 million | 459.41 million | 19.28% | | Net Profit Attributable to Shareholders of Listed Company | 18.99 million | 57.21 million | -66.81% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 17.86 million | 52.02 million | -65.66% | | Net Cash Flow from Operating Activities | -43.27 million | -66.91 million | 35.33% | | Basic Earnings Per Share (RMB/share) | 0.0095 | 0.0286 | -66.78% | | Diluted Earnings Per Share (RMB/share) | 0.0095 | 0.0286 | -66.78% | | Weighted Average Return on Net Assets | 0.93% | 2.48% | -1.55% | | Total Assets (Period End) | 3.643 billion | 3.327 billion | 9.49% | | Net Assets Attributable to Shareholders of Listed Company (Period End) | 2.147 billion | 1.904 billion | 12.76% | - The company corrected errors in its consolidated financial statements for 2019 and 2020, and made corresponding corrections to the affected consolidated financial statements for 2021-2023 and the first half of 2024[16] V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between Chinese and international or overseas accounting standards during the reporting period - During the reporting period, the company reported no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[17] - During the reporting period, the company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards[18] VI. Non-Recurring Gains and Losses Items and Amounts Total non-recurring gains and losses for the period amounted to 1.13 million yuan, primarily from non-current asset disposal, government grants, and reversal of impairment provisions, with certain financial asset gains classified as recurring Non-Recurring Gains and Losses Items and Amounts | Item | Amount (RMB) | Description | | :--- | :--- | :--- | | Gains/losses on disposal of non-current assets | 0.70 million | | | Government grants recognized in current profit/loss | 1.21 million | Mainly government grants received by subsidiaries | | Reversal of impairment provisions for receivables subject to individual impairment testing | 0.42 million | Mainly recovery of receivables for which individual bad debt provisions were made in prior periods | | Other non-operating income and expenses apart from the above | -1.17 million | | | Less: Income tax impact | 0.00 million | | | Impact on minority interests (after tax) | 0.02 million | | | Total | 1.13 million | | - The company classifies fair value changes and disposal gains/losses from financial assets and liabilities in its venture capital and asset management business as recurring gains and losses, as they reflect the company's phased investment results and normal profitability[21] Section III Management Discussion and Analysis This section analyzes the company's main business operations, core competencies, financial performance, investment activities, and risks during the reporting period I. Principal Businesses Engaged in by the Company During the Reporting Period The company's main businesses include high-end equipment manufacturing, large model data services, venture capital, and media, with significant growth in manufacturing and data services, while media business is being considered for divestiture (I) High-End Equipment Manufacturing Business In H1 2025, high-end equipment manufacturing revenue grew by 18.94% to 491.11 million yuan, enhancing competitiveness through the acquisition of Shanghai Yigeng and expanding product categories - In the first half of 2025, the high-end equipment manufacturing business segment achieved operating revenue of 491.11 million yuan, a year-on-year increase of 18.94%[23] - The company acquired control of Shanghai Yigeng Precision Machine Tool Co., Ltd. through public auction, expanding its high-end five-axis machining center product category and further enhancing its core competitiveness[23] - The company's high-end equipment manufacturing business primarily focuses on the R&D, production, and sales of CNC machine tools, with products widely used in transportation, energy, metallurgy, machinery, shipbuilding, automotive, and other industries, and some high-end products exported to over 30 countries and regions including Europe, America, Japan, and South Korea[23] - The company's independently developed high-end new product, the DVTG250×25/20B—NC double-column vertical turning and grinding machining center, was awarded the 'Top Ten Independent Innovations' by the China Machine Tool & Tool Builders' Association, improving efficiency by approximately 600%[25] (II) Large Model Data Services In H1 2025, Hot Hot Data's large model data services revenue grew by 52.41% to 36.46 million yuan, with a new Wuhan base enhancing delivery capabilities and reducing losses - In the first half of 2025, Hot Hot Data achieved operating revenue of 36.46 million yuan, a year-on-year increase of 52.41%, with a further narrowing of losses[32] - In June 2025, the company's Wuhan base opened as an L4-level annotation base primarily for large model and ecosystem-related annotation services, with plans to expand to hundreds of people within the year to enhance delivery capabilities for high-quality large model data annotation clients[32] - Hot Hot Data's services cover image, text, voice, video, large model, map data annotation, and road data collection scenarios, with its independently developed Enable AI intelligent annotation platform significantly improving data quality and annotation efficiency[32] (III) Venture Capital and Asset Management The company focuses on hard tech investments, with China's private equity market showing signs of recovery in H1 2025, leading to successful exits and investment gains in some projects - The company's venture capital and asset management business primarily focuses on high-end equipment manufacturing, semiconductors, information technology application innovation, new energy, and other fields, adopting a 'fundraising, investment, management, and exit' business model[34] - In the first half of 2025, the number of fundraising rounds in China's private equity market reached 2,172, a year-on-year increase of 12.1%; the amount raised was 728.33 billion yuan, a year-on-year increase of 12.0%. The number of investment cases was 5,612, a year-on-year increase of 21.9%; the disclosed amount was 338.92 billion yuan, a year-on-year increase of 1.6%[35] - Hard tech fields became investment hotspots, with significant growth in investment numbers in IT, semiconductors and electronic equipment, biotechnology/pharmaceutical health, machinery manufacturing, and clean technology[35] - Among the company's invested projects, Kylinsoft Co., Ltd. completed a new round of financing, and Zhejiang Haisheng Pharmaceutical Co., Ltd., Shanghai Silang Technology Co., Ltd., and Guangdong Aikesi Technology Co., Ltd. successfully exited and realized investment gains[36] (IV) Media Business The company's media business, primarily focused on educational book publishing, is facing industry decline and market competition, leading to reduced investment and consideration for divestiture - The company's media business is conducted by its controlled subsidiary, Zhongke Huashi, primarily focusing on book distribution and content development for the domestic education market, serving primary and secondary school students and preschool teachers and children[37] - Facing a continuously weakening industry and intense market competition, the company has steadily reduced resource allocation to its media business segment, leading to a shrinking business scale[37] - The company is considering gradually divesting its media business to further focus on high-end equipment manufacturing and large model data services[37] II. Analysis of Core Competencies The company's core competencies span high-end equipment manufacturing, enhanced by the Shanghai Yigeng acquisition, advanced large model data services, and a robust venture capital and asset management system (I) High-End Equipment Manufacturing Business The company's high-end equipment manufacturing business boasts strong market competitiveness in heavy-duty machine tools, significant R&D capabilities, extensive product lines, and prominent brand advantages like "Qi Yi" and "Shanghai Yigeng" - Following the successful acquisition of Shanghai Yigeng, the company possesses strong market competitiveness in heavy-duty lathes, horizontal machining centers, five-axis linkage machining centers, and other fields, significantly enhancing its comprehensive strength and industry position[38] - The company has established a '4+3+N' scientific research and innovation system, featuring 4 national-level technological innovation platforms, fostering 3 scientific innovation teams, and collaborating with multiple research institutes and enterprises[39][40] - The company is a national inspection standard-setting unit for CNC heavy-duty horizontal lathes, heavy-duty deep hole drilling and boring machines, and CNC heavy-duty vertical lathes, having accumulated 395 patent authorizations, including 51 invention patents[40] - The company's CNC machine tool products are diverse and complete in specifications, mastering multiple key core technologies, with product processing diameters ranging from 0.5 meters to 25 meters, and over 400 products filling domestic gaps[42] - The 'Qi Yi' brand CNC machine tools are recognized as China's famous brand products and well-known trademarks, with a market share of 40%-50% for CNC heavy-duty lathes and 100% for heavy-duty deep hole drilling and boring machines[43] (II) Large Model Data Services Hot Hot Data's core competitiveness in large model data services stems from its Enable AI platform for human-machine collaboration, extensive annotation bases, and strong partnerships with hundreds of industry-leading clients - Hot Hot Data, through its human-machine collaborative Enable AI intelligent annotation platform, has generally achieved individual efficiency improvements ranging from 50% to 100%, and implemented a 'annotate-while-training' strategy to enhance data production efficiency and model performance[46] - The company has established annotation bases in multiple cities nationwide, covering over a thousand high-end annotation personnel, and collaborates with thousands of small and medium-sized suppliers across the country, integrating over ten thousand personnel to ensure high-precision annotation for complex scenarios and multi-modal data[47] - Hot Hot Data has established cooperative relationships with hundreds of industry-leading enterprises, accumulating rich data experience and operational management capabilities for large-scale projects, human resources, and data, becoming a core supplier for many top internet companies[47] (III) Venture Capital and Asset Management The company's venture capital and asset management business features a comprehensive investment management system, robust risk control, a professional team, and strategic focus on high-growth, state-supported sectors - The company has established a complete set of standardized and rigorous investment management systems covering fundraising, investment, management, and exit, possessing a comprehensive network for acquiring target information and thorough due diligence procedures for projects[48] - The company places high importance on risk control, having established complete risk control processes and mechanisms, and a systematic post-investment management system to provide value-added services to invested enterprises, effectively controlling post-investment risks[48] - The company has cultivated and introduced a professional investment management team, with most members originating from industry or professional service institutions, possessing rich practical experience and theoretical foundations[49] - The company's venture capital and asset management business focuses on high-end equipment manufacturing, semiconductors, information technology application innovation, new energy, and other fields with significant future development prospects and strong national encouragement, having cumulatively invested in nearly one hundred enterprises through direct investments and fund investments[50] III. Analysis of Principal Business The company's operating revenue increased by 19.28% to 547.98 million yuan, driven by high-end equipment manufacturing and large model data services, while R&D investment doubled and investment cash flow significantly decreased Year-on-Year Changes in Key Financial Data | Indicator | Current Period (RMB) | Prior Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 547.98 million | 459.41 million | 19.28% | | | Operating Costs | 397.99 million | 363.15 million | 9.60% | | | R&D Investment | 38.90 million | 19.39 million | 100.59% | Mainly due to increased project completion costs and labor costs for subsidiary R&D projects in the current period | | Net Cash Flow from Operating Activities | -43.27 million | -66.91 million | 35.33% | | | Net Cash Flow from Investing Activities | -156.37 million | 12.52 million | -1,348.59% | Mainly due to higher expenditures for acquiring subsidiaries and financial asset investments in the current period | | Net Cash Flow from Financing Activities | 197.11 million | 92.63 million | 112.80% | Mainly due to higher proceeds from treasury stock disposal in the current period | | Investment Income | 8.60 million | 1.85 million | 365.20% | Mainly due to higher investment income from disposal of trading financial assets in the current period | | Fair Value Change Income | 0.81 million | 61.46 million | -98.69% | Mainly due to significant appreciation of non-current financial assets in the prior period | Operating Revenue Composition (By Industry) | Industry Segment | Current Period Amount (RMB) | Proportion of Operating Revenue | Prior Period Amount (RMB) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | High-End Equipment Manufacturing | 491.11 million | 89.62% | 412.90 million | 89.88% | 18.94% | | Large Model Data Services | 37.80 million | 6.90% | 23.92 million | 5.21% | 58.00% | | Media Business | 19.07 million | 3.48% | 21.48 million | 4.68% | -11.24% | Changes in Gross Profit Margin by Principal Business Segment | Industry Segment | Current Period Gross Profit Margin | Prior Period Gross Profit Margin | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | | High-End Equipment Manufacturing | 27.80% | 20.60% | 7.20% | | Large Model Data Services | 19.95% | 31.35% | -11.40% | | Media Business | 30.97% | 17.78% | 13.19% | IV. Analysis of Non-Principal Businesses Non-principal businesses, primarily other income from tax deductions and credit impairment losses from bad debt provisions, significantly impacted total profit, with most items being non-sustainable Impact of Non-Principal Businesses on Total Profit | Item | Amount (RMB) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Non-operating income | 0.47 million | 3.56% | Mainly compensation income received by subsidiaries | No | | Non-operating expenses | 1.64 million | 12.49% | Mainly compensation and late payment fees paid by subsidiaries | No | | Other income | 7.06 million | 53.70% | Mainly due to subsidiaries enjoying additional input tax deductions in the current period | No | | Credit impairment losses | -14.36 million | -109.25% | Mainly due to bad debt provisions for receivables in the current period | No | | Asset impairment losses | -1.51 million | -11.51% | Mainly due to impairment losses on intangible assets recognized by subsidiaries in the current period | No | | Gains on asset disposal | 0.70 million | 5.30% | Mainly due to disposal of fixed assets by subsidiaries in the current period | No | V. Analysis of Assets and Liabilities Total assets increased by 9.49% to 3.64 billion yuan, with net assets attributable to shareholders rising by 12.76% to 2.15 billion yuan, while trading financial assets significantly grew and some assets remain restricted Significant Changes in Asset Composition | Item | Amount at End of Current Period (RMB) | Proportion of Total Assets | Amount at End of Prior Year (RMB) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 3.643 billion | 100% | 3.327 billion | 100% | 9.49% | | | Net Assets Attributable to Shareholders of Listed Company | 2.147 billion | 59.00% | 1.904 billion | 57.23% | 12.76% | | | Trading Financial Assets | 174.83 million | 4.80% | 71.11 million | 2.14% | 2.66% | Mainly due to increased investments by the company in the current period | | Contract Liabilities | 481.37 million | 13.21% | 527.16 million | 15.84% | -2.63% | Mainly due to subsidiaries accelerating product acceptance in the current period | | Other Non-Current Financial Assets | 616.01 million | 16.91% | 635.19 million | 19.09% | -2.18% | Mainly due to the company's disposal of financial assets in the current period | Assets and Liabilities Measured at Fair Value | Item | Opening Balance (RMB) | Fair Value Change P&L for Current Period (RMB) | Amount Purchased in Current Period (RMB) | Amount Sold in Current Period (RMB) | Closing Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 71.11 million | 1.14 million | 201.35 million | 102.17 million | 174.83 million | | Other Non-Current Financial Assets | 635.19 million | -0.33 million | 55.67 million | 74.56 million | 616.01 million | | Total | 707.30 million | 0.81 million | 257.02 million | 176.73 million | 791.84 million | - As of June 30, 2025, the company's restricted cash was 3.16 million yuan, including the balance in the reorganization administrator's account and funds frozen in subsidiary bank accounts due to litigation[63] - The company's subsidiaries, Xuzhou Rongjin and Xuzhou Hejue, borrowed funds from securities companies through margin financing and securities lending, with corresponding pledged stock book value of 40.53 million yuan[63] VI. Analysis of Investment Status Total investments for the period reached 161.41 million yuan, a 198.59% increase, including a 50 million yuan new semiconductor partnership and a 101.41 million yuan acquisition of Shanghai Yigeng, alongside various securities investments Investment Amount During the Reporting Period | Indicator | Amount (RMB) | | :--- | :--- | | Investment amount for the reporting period | 161.41 million | | Investment amount for the prior period | 54.06 million | | Change Rate | 198.59% | Significant Equity Investments Acquired During the Reporting Period | Investee Company Name | Principal Business | Investment Method | Investment Amount (RMB) | Shareholding Ratio | Source of Funds | Investment P&L for Current Period (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Quzhou Zhihui Semiconductor Partnership (Limited Partnership) | Venture Equity Investment | New Establishment | 50.00 million | 16.67% | Self-raised | 0.00 | | Shanghai Yigeng Precision Machine Tool Co., Ltd. | R&D, production, and application promotion of high-end intelligent manufacturing equipment and system solutions | Acquisition | 101.41 million | 75.00% | Self-raised | 0.15 million | Securities Investment Status | Security Abbreviation | Initial Investment Cost (RMB) | Book Value at Period End (RMB) | P&L for Reporting Period (RMB) | | :--- | :--- | :--- | :--- | | Weining-Tianma No. 1 Private Securities Investment Fund | 10.29 million | 12.80 million | 1.90 million | | Weining-Tianma No. 2 Private Securities Investment Fund | 21.34 million | 10.38 million | 1.65 million | | Cambricon | 24.59 million | 22.15 million | 2.11 million | | Focuslight Technologies | 24.29 million | 21.85 million | -2.45 million | | Zhenxin Technology | 6.94 million | 6.85 million | -0.09 million | | Yuanheng Optoelectronics | 0.61 million | 0.81 million | 0.09 million | | ICBC | 475.00 | 759.00 | 67.00 | | Other securities investments held at period end | 50.76 million | 5.56 million | 2.17 million | | Total | 88.07 million | 74.83 million | 4.55 million | VII. Significant Asset and Equity Disposals The company did not dispose of any significant assets but sold 100% equity of Jiaxing Lingben Chenya for 58.02 million yuan, contributing -0.36 million yuan to net profit - The company did not dispose of any significant assets during the reporting period[71] Significant Equity Disposals | Equity Disposed | Transaction Price on Disposal Date (RMB in 10,000s) | Disposal Proportion | Contribution to Company's Net Profit (RMB in 10,000s) | Proportion of Net Profit Contribution to Total Profit | | :--- | :--- | :--- | :--- | :--- | | Jiaxing Lingben Chenya Equity Investment Partnership (Limited Partnership) | 5,801.76 | 100.00% | -36.13 | 1.20% | VIII. Analysis of Major Controlled and Investee Companies Key subsidiaries include Qiqihar CNC (high-end equipment), Hot Hot Data (large model data services), and Zhongke Huashi (book publishing), with Qiqihar CNC being profitable while the latter two incurred losses Major Subsidiaries and Investee Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Principal Business | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Qiqihar CNC | Subsidiary | High-End Equipment Manufacturing | 544.60 million | 1.921 billion | 826.53 million | 467.32 million | 62.05 million | 60.01 million | | Hot Hot Data | Subsidiary | Large Model Data Services | 102.50 million | 338.88 million | 192.07 million | 36.46 million | -8.16 million | -4.95 million | | Zhongke Huashi | Subsidiary | Book Distribution | 12.20 million | 117.59 million | 30.92 million | 19.07 million | -5.39 million | -4.85 million | | Hainan Qiji | Associate Company | Wholesale and retail of goods, technology development, technical services, etc. | 361.58 million | 536.14 million | 502.31 million | | -0.28 million | -0.40 million | Acquisition and Disposal of Subsidiaries During the Reporting Period | Company Name | Method of Acquisition/Disposal During Reporting Period | Impact on Overall Production, Operations, and Performance | | :--- | :--- | :--- | | Shanghai Yigeng | Equity Acquisition | No significant impact | | Wuhan Hot Hot Data | New Establishment | No significant impact | | Jiaxing Lingben Chenya | Share Transfer | No significant impact | | Zhongke Huizhou (Quzhou) Digital Merchant Technology Co., Ltd. | Deregistration | No significant impact | IX. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[77] X. Risks Faced by the Company and Countermeasures The company faces market, management, investment exit, and liquidity risks, addressing them through R&D investment, core competency focus, enhanced risk control, and tailored exit strategies - The high-end CNC machine tool industry faces opportunities for domestic substitution, requiring the company to increase R&D investment to stabilize its industry position[77] - The large model data annotation industry has a fragmented competitive landscape, and the company will maintain its core competitiveness and increase R&D investment[77] - The venture capital market faces increasing fundraising difficulties and narrow exit channels; the company will strengthen risk control awareness and management, conduct in-depth industry research, optimize due diligence processes, and enhance post-investment management for timely exits[78] - The company's expanding scale brings management risks and increased labor costs; in the future, the company will strengthen its management team, and improve corporate governance and operational management mechanisms[78][79] - Investment projects carry exit risks, and the company will formulate personalized exit strategies and specific implementation plans for each project, including independent listing, equity transfer, and overall enterprise M&A exits[79] XI. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company did not formulate a market value management system during the reporting period[80] - The company did not disclose a valuation enhancement plan during the reporting period[80] XII. Implementation of 'Quality and Return Dual Enhancement' Action Plan The company did not disclose any announcement regarding the "Quality and Return Dual Enhancement" action plan during the reporting period - The company did not disclose any announcement regarding the 'Quality and Return Dual Enhancement' action plan during the reporting period[80] Section IV Corporate Governance, Environment, and Society This section covers changes in the company's governance, profit distribution, employee incentives, environmental disclosures, and social responsibility initiatives I. Changes in Company Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, or senior management during the reporting period - There were no changes in the company's directors, supervisors, or senior management during the reporting period[82] II. Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[83] III. Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures in place or implemented during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures in place or implemented during the reporting period[84] IV. Environmental Information Disclosure Neither the listed company nor its major subsidiaries are included in the list of enterprises required to disclose environmental information by law - Neither the listed company nor its major subsidiaries are included in the list of enterprises required to disclose environmental information by law[85] V. Social Responsibility The company actively fulfills its corporate social responsibilities by creating shareholder value, safeguarding stakeholder rights, ensuring transparent governance, and prioritizing employee well-being and customer-centric partnerships - The company actively fulfills its corporate citizen obligations, undertakes social responsibilities, and pays attention to shareholders, employees, customers, suppliers, and government departments[85] - The company focuses on improving its governance structure, standardizing company operations, and ensuring all shareholders enjoy their legitimate rights and interests as stipulated by laws, regulations, and rules[85] - The company interacts with investors through performance briefings, investor relations interactive platforms, and email to enhance understanding and actively protect shareholder rights[85] - The company adheres to a people-oriented approach, complies with labor laws and regulations, respects and protects employee rights, and promotes employee development through training[86] - The company adheres to a customer-centric approach, innovating technology and products based on customer needs, and establishing equal, mutually beneficial, and win-win cooperative relationships with customers and suppliers[86] Section V Significant Matters This section details significant events including shareholder commitments, related party transactions, legal proceedings, regulatory actions, and other material developments affecting the company I. Fulfilled and Overdue Unfulfilled Commitments by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period The controlling shareholder's subsidiary and some directors/senior management committed to increasing shareholdings by at least 29.2 million yuan, currently being fulfilled, while Xuzhou Mude Information Technology Co., Ltd. completed its 41.44 million yuan performance compensation - The wholly-owned subsidiary of the company's controlling shareholder and some directors and senior management (Wu Jianfei, Wu Changxia, Jiang Xueqian, Sun Bin, Su Li, Hou Xuefeng, Sun Wei, Wang Junfeng, Wu Ning, Chen Yingying) committed to increasing their total shareholding in the company by no less than 29.2 million yuan between May 1, 2025, and November 1, 2025, which is currently being fulfilled[88] - Xuzhou Mude Information Technology Co., Ltd. has fulfilled its performance commitment, paying 41.44 million yuan in cash compensation to the company due to Hot Hot Data and Zhongke Huashi failing to meet performance targets[88][89] II. Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company During the reporting period, there were no instances of non-operating funds being occupied by the controlling shareholder or other related parties from the listed company - During the reporting period, there were no instances of non-operating funds being occupied by the controlling shareholder or other related parties from the listed company[90] III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[91] 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[92] V. Board of Directors' and Supervisory Board's Explanations on the 'Non-Standard Audit Report' for the Current Period The company did not receive a "non-standard audit report" from its accounting firm during the reporting period - The company did not receive a 'non-standard audit report' from its accounting firm during the reporting period[93] VI. Board of Directors' Explanations on Matters Related to the 'Non-Standard Audit Report' for the Prior Year The company had no explanations regarding matters related to the "non-standard audit report" for the prior year during the reporting period - The company had no explanations regarding matters related to the 'non-standard audit report' for the prior year during the reporting period[94] VII. Matters Related to Bankruptcy Reorganization The company had no matters related to bankruptcy reorganization during the reporting period - The company had no matters related to bankruptcy reorganization during the reporting period[94] VIII. Litigation Matters The company is involved in multiple lawsuits, including a 183.81 million yuan contract dispute in execution and a 70 million yuan loan dispute in retrial, with other subsidiary litigations not expected to have a significant adverse impact - The contract dispute case between Tianrong Dingkun (Wuhan) Investment Center (Limited Partnership) and Liu Erqiang, Chongqing Landscape Architecture Engineering (Group) Co., Ltd., involving 183.81 million yuan, has an effective first-instance court judgment and has entered the enforcement stage[95][96] - The loan contract dispute case filed by Beijing Xiangyun Microfinance Co., Ltd. against Huizhou Intelligent and other entities, involving 70 million yuan, saw the first-instance judgment rejecting Xiangyun Microfinance's claims, the second-instance upholding the original judgment, and Xiangyun Microfinance's application for retrial is currently in progress[96][97] - Other lawsuits where the company's subsidiaries are plaintiffs involve 10.27 million yuan, with some already concluded or settled through mediation, and others still in progress, none of which are expected to have a significant adverse impact on the company[97] - Other lawsuits where the company's subsidiaries are defendants involve 29.00 million yuan, with some already concluded or settled through mediation, and others still in progress, none of which are expected to have a significant adverse impact on the company[97] IX. Penalties and Rectification The company received an administrative supervisory measure decision and an investigation notice from the CSRC in April 2025 for alleged information disclosure violations, and is cooperating with the investigation - In April 2025, the company received an 'Administrative Supervisory Measure Decision' from the Zhejiang Regulatory Bureau of the China Securities Regulatory Commission and a 'Notice of Case Filing' from the China Securities Regulatory Commission, initiating an investigation into alleged information disclosure violations[98][99] - As of now, the company has not received relevant documents, and all production and operational activities are proceeding normally; the company will actively cooperate with the investigation and strictly fulfill its information disclosure obligations[98][99] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company and its controlling shareholder maintain good integrity, with no unfulfilled court/arbitration documents or overdue large debts - The company and its controlling shareholder maintain good integrity, with no unfulfilled effective court or arbitration documents, nor any large overdue debts[100] XI. Significant Related Party Transactions The company had no significant related party transactions concerning daily operations, asset/equity acquisition/disposal, or joint external investments, but reported related party receivables and payables, and received 41.44 million yuan in performance compensation - During the reporting period, the company had no related party transactions related to daily operations, asset or equity acquisition/disposal, or joint external investments[101][102][103] Related Party Receivables and Payables | Item Name | Related Party | Closing Book Balance (RMB) | Opening Book Balance (RMB) | | :--- | :--- | :--- | :--- | | Receivable Items: | | | | | Other receivables | Xinhao Runcheng | 89.88 million | 89.88 million | | Payable Items: | | | | | Other payables | Hainan Qiji | 79.13 million | 94.23 million | | Other payables | Beijing Ruilin Jishi | 10.50 million | 10.50 million | - Xuzhou Deyu, a wholly-owned subsidiary of the company, continued to acquire shares in Lianli Zhaoli Fund, constituting a joint investment with a related party[108] - The company received 41.44 million yuan in performance compensation from Xuzhou Mude Information Technology Co., Ltd., the original shareholder of Xuzhou Huizhou, with all obligations fulfilled[109] XII. Significant Contracts and Their Performance The company had no entrustment, contracting, or leasing matters, but reported significant guarantees totaling 37 million yuan (1.72% of net assets) and 100 million yuan in outstanding wealth management products - The company had no entrustment, contracting, or leasing arrangements during the reporting period[112][113][114] Total Company Guarantees | Indicator | Amount (RMB in 10,000s) | | :--- | :--- | | Total approved guarantee limit during the reporting period | 3,300 | | Total actual guarantees incurred during the reporting period | 3,000 | | Total approved guarantee limit at the end of the reporting period | 4,000 | | Total actual guarantee balance at the end of the reporting period | 3,700 | | Proportion of total actual guarantees to the company's net assets | 1.72% | Wealth Management Product Status | Specific Type | Wealth Management Products Incurred (RMB in 10,000s) | Outstanding Balance (RMB in 10,000s) | | :--- | :--- | :--- | | Bank wealth management products | 8,600 | 7,600 | | Trust wealth management products | 3,000 | 0 | | Other categories | 2,400 | 2,400 | | Total | 14,000 | 10,000 | - The company had no other significant contracts during the reporting period[121] XIII. Explanations of Other Significant Matters Significant matters include providing an 8 million yuan guarantee for Beijing Rere Culture, acquiring Shanghai Aerospace Yigeng's 75% equity for 101.41 million yuan, a CSRC investigation into information disclosure, a 29.2 million yuan share increase plan by the controlling shareholder and management, and pledged shares of the controlling shareholder - The company provided a guarantee of up to 8 million yuan for its controlled subsidiary, Beijing Rere Culture Technology Co., Ltd[122] - The company successfully bid 101.41 million yuan to acquire 75% equity of Shanghai Aerospace Yigeng Intelligent Technology Co., Ltd[122] - The company received an 'Administrative Supervisory Measure Decision' from the Zhejiang Regulatory Bureau of the China Securities Regulatory Commission and a 'Notice of Case Filing' from the China Securities Regulatory Commission, initiating an investigation into alleged information disclosure violations[123] - The company's controlling shareholder and some directors and senior management plan to increase their total shareholding in the company by no less than 29.2 million yuan between May 1, 2025, and November 1, 2025[124] - The controlling shareholder, Sihe Julu Information Technology Group Co., Ltd., pledged 3,595,669 shares of the company, accounting for 1.4762% of its shareholding[125] XIV. Significant Matters of Company Subsidiaries Xuzhou Deyu, a wholly-owned subsidiary, increased its stake in Lianli Zhaoli Fund to 24.0964%, and Qiqihar CNC provided a 20 million yuan guarantee for the company's bank loan - Xuzhou Deyu, a wholly-owned subsidiary of the company, continued to acquire shares in Lianli Zhaoli Fund, holding a total of 140 million partnership units (approximately 24.0964% of the total scale) in Lianli Zhaoli Fund[126] - The company's controlled subsidiary, Qiqihar CNC, provided a joint and several liability guarantee for the company's 20 million yuan loan application from Industrial Bank[127] Section VI Share Changes and Shareholder Information This section details changes in the company's share capital, including restricted and unrestricted shares, and provides an overview of shareholder structure and management's shareholding I. Share Change Status Restricted shares increased by 233,775 due to senior management's share purchases, with unrestricted shares decreasing by the same amount, while total share capital remained unchanged Share Change Status | Share Type | Quantity Before Change (Shares) | Increase/Decrease in This Change (Shares) | Quantity After Change (Shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 13,047,712 | 233,775 | 13,281,487 | | II. Unrestricted Shares | 1,988,452,863 | -233,775 | 1,988,219,088 | | III. Total Shares | 2,001,500,575 | 0 | 2,001,500,575 | - The main reason for the share change is that some senior management personnel increased their shareholdings during the reporting period according to the share increase plan, with 75% of their newly acquired unrestricted shares automatically locked[131] II. Securities Issuance and Listing The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[133] III. Number of Shareholders and Shareholding Status As of the reporting period end, the company had 173,386 common shareholders, with the top three being Sihe Julu (12.17%), Quzhou Zhizao Qijue (10.99%), and Bohou Mingjiu (9.96%), and the controlling shareholder's shares are partially pledged - As of the end of the reporting period, the total number of common shareholders was 173,386[134] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held at Period End (Shares) | Number of Unrestricted Shares Held (Shares) | Pledged, Marked, or Frozen Status (Quantity) | | :--- | :--- | :--- | :--- | :--- | :--- | | Sihe Julu Information Technology Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 12.17% | 243,568,669 | 243,568,669 | 103,595,669 (Pledged) | | Quzhou Zhizao Qijue Enterprise Management Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 10.99% | 220,000,000 | 220,000,000 | 0 (N/A) | | Bohou Mingjiu (Quzhou) Enterprise Management Consulting Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 9.96% | 199,300,000 | 199,300,000 | 0 (N/A) | - The controlling shareholder, Sihe Julu Information Technology Group Co., Ltd., holds 139,973,000 shares through a client credit trading guarantee securities account at Huatai Securities Co., Ltd[135] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, some directors and senior management, including Wu Ning, Sun Wei, and others, collectively increased their shareholdings by 461,700 shares, reaching a total of 4,901,900 shares Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Opening Shareholding (Shares) | Shares Increased in Current Period (Shares) | Closing Shareholding (Shares) | | :--- | :--- | :--- | :--- | :--- | | Wu Ning | Board Secretary | 498,600 | 79,000 | 577,600 | | Sun Wei | Deputy General Manager | 876,800 | 77,000 | 953,800 | | Sun Bin | Director | 0 | 74,000 | 74,000 | | Jiang Xueqian | Director | 1,998,000 | 78,000 | 2,076,000 | | Su Li | Director | 0 | 73,700 | 73,700 | | Wang Junfeng | Deputy General Manager | 1,066,800 | 80,000 | 1,146,800 | | Total | -- | 4,440,200 | 461,700 | 4,901,900 | V. Changes in Controlling Shareholder or Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[138] - The company's actual controller did not change during the reporting period[138] VI. Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[139] Section VII Bond Information This section confirms that the company had no bond-related matters during the reporting period Bond Information The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[141] Section VIII Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with accounting policies and notes I. Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[143] II. Financial Statements The financial statements show total assets of 3.64 billion yuan, net assets attributable to the parent company of 2.15 billion yuan, net profit of 17.33 million yuan, and negative operating cash flow of 43.27 million yuan Key Data from Consolidated Balance Sheet | Item | Closing Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 3.643 billion | 3.327 billion | | Total Liabilities | 1.310 billion | 1.247 billion | | Total Equity Attributable to Owners of the Parent Company | 2.147 billion | 1.904 billion | | Total Equity | 2.333 billion | 2.080 billion | Key Data from Consolidated Income Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 547.98 million | 459.41 million | | Operating Profit | 14.32 million | 48.82 million | | Total Profit | 13.14 million | 47.16 million | | Net Profit | 17.33 million | 50.94 million | | Net Profit Attributable to Shareholders of the Parent Company | 18.99 million | 57.21 million | | Basic Earnings Per Share (RMB/share) | 0.0095 | 0.0286 | Key Data from Consolidated Cash Flow Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net cash flow from operating activities | -43.27 million | -66.91 million | | Net cash flow from investing activities | -156.37 million | 12.52 million | | Net cash flow from financing activities | 197.11 million | 92.63 million | | Net increase in cash and cash equivalents | -2.40 million | 38.38 million | III. Company Overview Huizhou Intelligent Technology Group Co., Ltd., established in 2002 and listed in 2007, with Sihe Julu as its controlling shareholder, operates in high-end equipment manufacturing, venture capital, large model data services, and media - Huizhou Intelligent Technology Group Co., Ltd. was established on November 18, 2002, and listed on the Shenzhen Stock Exchange on March 28, 2007[177] - The company's controlling shareholder is Sihe Julu Information Technology Group Co., Ltd[177] - As of June 30, 2025, the company's total share capital was 2.002 billion yuan, with a par value of 1 yuan per share[177] - The company's business scope includes AI basic software development, CNC machine tool manufacturing, and investment activities with its own funds, primarily engaging in high-end equipment manufacturing, venture capital and asset management, large model data services, and media businesses[178] IV. Basis of Financial Statement Preparation The financial statements are prepared on a going concern basis, adhering to Chinese Accounting Standards, using the accrual basis of accounting and historical cost measurement, with no significant doubts about the company's ability to continue as a going concern - The company's financial statements are prepared on a going concern basis, in accordance with 'Enterprise Accounting Standards' and relevant regulations[179] - Accounting is based on the accrual basis, and except for certain financial instruments, all items are measured at historical cost[179] - The company's management has assessed that there are no significant doubts about the company's ability to continue as a going concern for at least 12 months from the end of the reporting period[180] V. Significant Accounting Policies and Estimates This section outlines the company's adherence to Enterprise Accounting Standards, covering accounting periods, business cycles, functional currency, materiality, business combinations, consolidation, joint arrangements, cash equivalents, foreign currency translation, financial instruments, receivables, inventories, long-term investments, fixed assets, intangible assets, impairment, contract liabilities, employee benefits, revenue recognition, government grants, deferred taxes, and leases - The company's financial statements comply with the requirements of Enterprise Accounting Standards, truthfully and completely reflecting the company's financial position, operating results, and cash flows[182] - The company defines 12 months as an operating cycle and uses it as the criterion for classifying assets and liabilities as current or non-current[184] - The company performs impairment accounting for financial instruments based on expected credit losses and recognizes loss provisions according to a three-stage model[208][210] - The company's revenue recognition principle is to recognize revenue when performance obligations in the contract are satisfied, i.e., when the customer obtains control of the related goods or services[275] - Government grants related to assets are recognized as deferred income and amortized into profit or loss over the useful life of the related assets; government grants related to income are recognized directly in current profit or loss when compensating for expenses already incurred, and as deferred income when compensating for expenses in future periods[284][285] VI. Taxation This section details the company's main tax types and rates, including VAT (13%, 9%, 6%, 3%), urban maintenance and construction tax (5%, 7%), and corporate income tax (15%, 20%, 25%), with several subsidiaries enjoying a 15% high-tech enterprise tax rate Major Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | VAT payable is the balance of output tax less deductible input tax | 13.00%、9.00%、6.00%、3.00% | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | 5.00%、7.00% | | Corporate Income Tax | Taxable income | 15.00%、20.00%、25.00% | | Education Surcharge | Amount of turnover tax payable | 3.00% | | Local Education Surcharge | Amount of turnover tax payable | 2.00% | - Multiple subsidiaries, including Qiqihar CNC, Qiqihar Casting, Heilongjiang Qiyi Intelligent Machine Tool Research Institute Co., Ltd., Qiqihar No. 1 Machine Tool Plant Co., Ltd., Hot Hot Data, Chengdu Hot Hot, and Shanghai Yigeng, are eligible for a reduced corporate income tax rate of 15.00% due to their qualification as high-tech enterprises[302][303][304][305] - The company benefits from a policy allowing small low-profit enterprises to calculate taxable income at 25% and pay corporate income tax at a 20% rate, extended until December 31, 2027[305] - The VAT exemption policy for book wholesale and retail continues until December 31, 2027[305] - Small-scale VAT taxpayers with monthly sales below 100,000 yuan are exempt from VAT, and those subject to a 3% levy rate are taxed at 1%, with this policy effective until December 31, 2027[306] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes on consolidated financial statement items, including cash and cash equivalents (478 million yuan with 3.16 million yuan restricted), trading financial assets (175 million yuan), receivables (198 million yuan net), inventories (769 million yuan net), and key income statement figures Composition and Restricted Status of Cash and Cash Equivalents | Item | Closing Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Cash on hand | 0.00 million | 0.16 million | | Bank deposits | 426.50 million | 440.35 million | | Other cash and cash equivalents | 51.51 million | 40.25 million | | Total | 478.01 million | 480.75 million | | Restricted Cash and Cash Equivalents: | | | | Margin deposits | 0.00 | 1.20 million | | Administrator account balance | 2.31 million | 2.31 million | | Account freeze | 0.86 million | 0.00 | | Total restricted funds | 3.16 million | 3.50 million | Composition of Trading Financial Assets | Item | Closing Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Equity investment instruments | 74.83 million | 71.11 million | | Structured dep