东港股份(002117) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions Important Notice The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, while facing risks from a shrinking traditional ticket printing market, intensified competition, and rapid technological iteration, with no plans for interim dividend distribution or capital increase from reserves - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[4] - The company faces risks including a shrinking overall market for traditional ticket printing, intensified market competition, and accelerated technological iteration due to the emergence of new technologies and products[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4] Table of Contents The report's clear table of contents comprises nine main chapters covering company profile, financial indicators, management discussion and analysis, corporate governance, significant matters, share changes, bond information, financial reports, and other submitted data - The report contains nine main chapters, presenting a complete structure[6] Definitions This section defines key terms such as the reporting period, yuan/ten thousand yuan, and the Company/this Company, clarifying the report's timeframe from January 1 to June 30, 2025 Key Term Definitions | Term | Refers to | Definition | | :--- | :--- | :--- | | Reporting Period | Refers to | January 1, 2025 to June 30, 2025 | | Yuan, Ten Thousand Yuan | Refers to | RMB Yuan, RMB Ten Thousand Yuan | | Company, This Company | Refers to | Tungkong Co., Ltd | Section II Company Profile and Key Financial Indicators I. Company Profile Tungkong Co., Ltd., with stock abbreviation 'Tungkong Shares' and stock code 002117, is listed on the Shenzhen Stock Exchange, and its legal representative is Shi Jianzhong Company Basic Information | Stock Abbreviation | Tungkong Shares | | :--- | :--- | | Stock Code | 002117 | | Stock Exchange | Shenzhen Stock Exchange | | Company's Chinese Name | Tungkong Co., Ltd | | Legal Representative | Shi Jianzhong | II. Contact Persons and Information The company's Board Secretary is Qi Liguo and Securities Affairs Representative is Ruan Yongcheng, both located at No. 23 Shanda North Road, Jinan, with corresponding phone, fax, and email provided Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Qi Liguo | No. 23 Shanda North Road, Jinan | 0531-88904590 | 0531-82672218 | Qi-liguo@tungkong.com.cn | | Securities Affairs Representative | Ruan Yongcheng | No. 23 Shanda North Road, Jinan | 0531-82672212 | 0531-82672218 | Ruan-yongcheng@tungkong.com.cn | III. Other Information During the reporting period, there were no changes to the company's registered address, office address, website, email, information disclosure website and media, or the location for semi-annual report availability, with details available in the 2024 annual report - The company's contact information, information disclosure, and report availability locations, among other relevant details, remained unchanged during the reporting period[15][16][17] IV. Key Accounting Data and Financial Indicators In the first half of 2025, the company's operating revenue slightly increased by 0.28% year-on-year, net profit attributable to shareholders grew by 10.87%, and non-recurring net profit increased by 17.86%, while net cash flow from operating activities decreased by 104.66%, and total assets and net assets attributable to shareholders both declined Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (yuan) | Prior Period (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 581,387,133.38 | 579,759,210.21 | 0.28% | | Net Profit Attributable to Shareholders | 78,495,668.11 | 70,796,631.68 | 10.87% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 75,971,284.76 | 64,457,319.22 | 17.86% | | Net Cash Flow from Operating Activities | -109,584,689.08 | -53,544,196.98 | -104.66% | | Basic Earnings Per Share (yuan/share) | 0.1499 | 0.1297 | 15.57% | | Diluted Earnings Per Share (yuan/share) | 0.1499 | 0.1297 | 15.57% | | Weighted Average Return on Net Assets | 5.53% | 4.56% | 0.97% | | Period-end Indicators | Current Period-end (yuan) | Prior Year-end (yuan) | Change from Prior Year-end | | Total Assets | 1,897,028,756.47 | 2,025,970,129.93 | -6.36% | | Net Assets Attributable to Shareholders | 1,366,264,521.48 | 1,397,750,253.92 | -2.25% | V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under International or overseas accounting standards and those under Chinese accounting standards - The company reported no differences in accounting data under domestic and overseas accounting standards during the reporting period[19][20] VI. Non-recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 2.52 million yuan, primarily comprising government subsidies, entrusted investment income, and non-current asset disposal gains and losses Non-recurring Gains and Losses Items and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains/losses from disposal of non-current assets (including the reversal of impairment provisions) | -1,871,013.78 | | Government subsidies recognized in current profit or loss (excluding those closely related to normal business operations, compliant with national policies, enjoyed under fixed standards, and having a continuous impact on company's profit or loss) | 3,928,620.38 | | Gains/losses from entrusted investment or asset management | 1,565,863.50 | | Other non-recurring gains and losses items | -650,578.26 | | Less: Income tax impact | 448,508.49 | | Total | 2,524,383.35 | - The company has no other items defined as non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring gains and losses[23] Section III Management Discussion and Analysis I. Principal Businesses Engaged in by the Company During the Reporting Period The company's main businesses are categorized into printing, composite, and technical services, encompassing commercial documents, smart cards, RFID tags, archive storage and digitization, electronic documents, and AI and robotics technical services, with composite product revenue growing by 133.81% and AI and robotics achieving sales and project implementation, while printing and technical service revenues declined - The company's principal businesses are categorized into printing, composite, and technical services, also involving robotics and AI technical services[25][26][27] - Revenue from composite products increased by 133.81% year-on-year, with stable gross profit margins and rapid growth in market share and orders[34] - The AI and robotics business, driven by 'practical application,' has developed full-scenario products covering government affairs, party building, trade unions, office, and education sectors, achieving sales revenue and successfully delivering projects to clients such as Beijing Yizhuang National Tax Bureau, Beijing Vehicle Management Office, and the National Museum[35] - Revenue from printing products decreased by 21.28% year-on-year, but gross profit margin increased by 3.37%; technical service product revenue declined by 7.09%, primarily due to adjustments in electronic invoice policies[34] (I) Principal Business and Main Products The company's principal businesses include printing (commercial documents, data processing, personalized color printing, commercial labels), composite (smart cards, RFID smart tags), and technical services (archive storage and digitization, electronic documents, robotics and AI technical services), along with other operations like factory leasing - Printing businesses include commercial document printing, data processing, printing and mailing, personalized color printing, and commercial label printing[25] - Composite businesses include smart card manufacturing and personalization, and RFID smart tags[26] - Technical service businesses include archive storage and digitization, electronic document services (based on blockchain technology), and robotics and AI technical services (government affairs robots, party building robots, government digital humans, education robots)[26][27] (II) Business Model The company primarily serves financial, government, and large enterprise clients, integrating sales, R&D, and production resources through a unified information system and operating platform, with a nationwide sales network, production bases in key cities, archive management centers in 18 central cities, and a procurement platform leveraging group advantages to reduce costs - The company's main clients include financial institutions such as banks and insurance companies, government entities like fiscal and tax authorities, and large enterprises, with overlapping customer bases[28] - The company has established a nationwide sales network and production bases in key cities such as Jinan, Beijing, Shanghai, and Guangzhou, implementing an ERP system to enhance management efficiency[28] - Archive storage and digitization businesses have established archive information management centers/repositories in 18 central cities nationwide, and are committed to developing blockchain-based digital archive services[29] (III) R&D Capabilities The company operates R&D centers in Beijing, Shanghai, and Jinan, achieving significant advancements in printing and composite technologies, artificial intelligence, and blockchain, holding multiple patents and software copyrights, and obtaining certifications from the National Cyberspace Administration - The company has invested significant resources in anti-counterfeiting technology, information technology, and smart label technology, achieving CMMI-5 certification and possessing numerous patents and software copyrights[29] - In artificial intelligence technology, the company successfully developed the 'Tungkong-Generative Synthesis Algorithm,' obtained National Cyberspace Administration备案, and made key breakthroughs in large language models, visual recognition, and natural language processing[30] - In blockchain technology, the company possesses four National Cyberspace Administration-registered products: TK-BaaS-E platform, electronic bill blockchain, electronic invoice blockchain, and electronic certificate blockchain[30] (IV) Industry Position The company holds a leading position in printing, composite, archive storage and digitization, electronic documents, and AI and robotics, serving as a long-term supplier to numerous financial institutions and government agencies, while successfully expanding into new business markets - In the printing business, the company is a long-term service provider for numerous national financial enterprises and government fiscal and tax departments, possessing competitive advantages in service coverage, product sales, and operating performance[30] - In the composite business, the company provides third-generation social security card services to 12 provinces, municipalities, and autonomous regions in China, and is one of the very few domestic suppliers simultaneously approved by the five major state-owned commercial banks for financial IC cards[31] - In the archive storage and digitization business, the company and its controlled subsidiaries have become one of the leading enterprises in domestic archive storage, building an integrated multimedia archive management platform[31][32] - In the electronic document business, the company is a well-known digital e-invoice service provider in China, offering efficient services to tens of thousands of enterprises[32] - In the AI and robotics sector, the company has launched products such as government affairs robots, party building robots, and government digital humans, successfully implementing them and enhancing its industry influence[33] (V) Business Development During the Reporting Period During the reporting period, the company maintained stable operating revenue, with net profit attributable to parent company shareholders increasing by 10.87% and non-recurring net profit by 17.86%; composite product revenue surged by 133.81%, and AI and robotics businesses generated sales and gained user recognition, while printing product revenue decreased by 21.28% (though gross margin improved) and technical service revenue declined by 7.09% due to policy adjustments Key Financial Performance During the Reporting Period | Indicator | Amount (hundred million yuan) | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 5.81 | Essentially flat | | Net Profit Attributable to Shareholders | 0.784957 | 10.87% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 0.759713 | 17.86% | Changes in Revenue and Gross Profit Margin by Product Category During the Reporting Period | Product Category | YoY Change in Operating Revenue | Change in Gross Profit Margin | | :--- | :--- | :--- | | Printing Products | Decreased by 21.28% | Increased by 3.37% | | Composite Products | Increased by 133.81% | Remained stable | | Technical Service Products | Decreased by 7.09% | - | - The company's robotics and large model business focuses on breakthroughs in core technologies for embodied intelligent robots, having developed full-scenario products covering government affairs, party building, trade unions, office, and education, achieving sales revenue, with successful implementation of education robots and government/guidance robot projects[35] II. Analysis of Core Competencies The company's core competencies lie in business innovation, management mechanisms, market presence, and technology, transitioning from traditional manufacturing to information technology services through continuous innovation, establishing efficient management and incentive systems, possessing a nationwide sales network and high-quality client base, and demonstrating industry-leading R&D capabilities in anti-counterfeiting, information, smart labels, blockchain, and AI large models - Through business innovation, the company evolved from a single ticket printing product to an integrated product system encompassing tickets, data processing, RFID tags, and smart cards, expanding into data outsourcing, system integration, software development, and information services, and since 2023, has applied AI technology to products and R&D, achieving a transformation into an information technology service provider[36][37] - The company has established a market-adaptive management system, implemented performance-oriented compensation management and management shareholding, forming a highly efficient execution team[37] - The company has built a nationwide sales and production service network, with 30 sales outlets and multiple controlled subsidiaries, establishing stable cooperative relationships with major national financial, insurance, fiscal, tax, and government ministry clients[38] - The company has R&D centers in Beijing, Shanghai, and Jinan, investing significant resources in anti-counterfeiting technology, information technology, smart label technology, blockchain technology, archive storage, and AI large models, positioning its R&D strength and technical service capabilities as industry-leading[38] III. Analysis of Principal Business During the reporting period, the company's operating revenue slightly increased by 0.28% year-on-year, operating costs decreased by 3.29%, and financial expenses significantly dropped by 109.19% due to loan repayment; by product category, composite product revenue grew by 133.81%, printing product revenue decreased by 21.28%, and technical service revenue declined by 7.09% Year-on-Year Changes in Key Financial Data | Indicator | Current Period (yuan) | Prior Period (yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 581,387,133.38 | 579,759,210.21 | 0.28% | - | | Operating Cost | 379,888,074.63 | 392,799,371.26 | -3.29% | - | | Selling Expenses | 24,365,732.22 | 22,388,926.63 | 8.83% | - | | Administrative Expenses | 38,437,978.10 | 42,386,590.39 | -9.32% | - | | Financial Expenses | -30,159.07 | 328,248.95 | -109.19% | Loan interest expenses in the prior period, loans fully repaid by the beginning of this reporting period | | Income Tax Expense | 16,811,363.99 | 11,739,401.50 | 43.20% | Primarily due to increased total profit, leading to higher income tax expense | | R&D Investment | 27,468,801.36 | 28,028,728.00 | -2.00% | - | | Net Cash Flow from Operating Activities | -109,584,689.08 | -53,544,196.98 | -104.66% | Due to increased payments for goods | | Net Cash Flow from Investing Activities | 20,456,802.17 | -405,811,875.50 | 105.04% | Due to reduced purchases of wealth management products during the reporting period | | Net Cash Flow from Financing Activities | -108,462,278.74 | -263,561,941.69 | 58.85% | The company implemented a share repurchase plan in the prior period, leading to increased financing expenditures | | Net Increase in Cash and Cash Equivalents | -197,589,105.94 | -722,918,085.20 | 72.67% | Due to reduced expenditures on wealth management products and decreased financing expenditures during the reporting period | Operating Revenue Composition (by Product) | Product Category | Current Period Amount (yuan) | Share of Operating Revenue | Prior Period Amount (yuan) | Share of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Printing Products | 298,718,844.60 | 51.38% | 379,452,806.71 | 65.45% | -21.28% | | Composite Products | 162,191,747.60 | 27.90% | 69,368,942.54 | 11.97% | 133.81% | | Technical Services | 110,389,882.77 | 18.99% | 118,818,302.26 | 20.49% | -7.09% | | Other | 10,086,658.41 | 1.73% | 12,119,158.70 | 2.09% | -16.77% | | Total | 581,387,133.38 | 100% | 579,759,210.21 | 100% | 0.28% | Year-on-Year Changes in Gross Profit Margin of Principal Business | Category | Gross Profit Margin | Change in Gross Profit Margin YoY | | :--- | :--- | :--- | | Printing Industry | 32.11% | 0.77% | | Service Industry | 43.02% | 11.48% | | Printing Products | 35.85% | 3.37% | | Composite Products | 25.23% | 0.10% | | Technical Services | 43.02% | 11.48% | | Southern Region | 25.55% | 1.26% | | Northern Region | 37.11% | 3.20% | IV. Analysis of Non-Principal Business The company's non-principal businesses primarily include investment income, asset impairment, non-operating income, and non-operating expenses, with investment income mainly from wealth management products, asset impairment from contract asset provisions, and non-operating income/expenses involving subsidies, quality compensation, and lease termination penalties, none of which are sustainable Non-Principal Business Analysis | Item | Amount (yuan) | Share of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 1,565,863.50 | 1.64% | Utilizing own funds to purchase wealth management products | No | | Asset Impairment | -1,823,929.15 | -1.91% | Provision for impairment of contract assets | No | | Non-operating Income | 274,447.32 | 0.29% | Subsidies received and quality compensation, etc | No | | Non-operating Expenses | 925,025.58 | 0.97% | Lease termination penalties, etc | No | V. Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets decreased by 6.36% year-on-year, and net assets attributable to shareholders decreased by 2.25%; monetary funds significantly declined by 9.74%, while accounts receivable and contract assets notably increased, and inventories decreased, with restricted assets primarily comprising bank acceptance bill and letter of guarantee deposits Significant Changes in Asset Composition | Item | Current Period-end Amount (yuan) | Share of Total Assets | Prior Year-end Amount (yuan) | Share of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 97,579,414.62 | 5.14% | 301,373,775.51 | 14.88% | -9.74% | | Accounts Receivable | 344,669,410.56 | 18.17% | 228,396,637.85 | 11.27% | 6.90% | | Contract Assets | 49,920,696.35 | 2.63% | 15,729,638.43 | 0.78% | 1.85% | | Inventories | 93,185,296.46 | 4.91% | 147,996,162.53 | 7.30% | -2.39% | | Total Assets | 1,897,028,756.47 | - | 2,025,970,129.93 | - | -6.36% | | Net Assets Attributable to Shareholders | 1,366,264,521.48 | - | 1,397,750,253.92 | - | -2.25% | Asset Restriction Status | Item | Year-end Book Value (yuan) | Reason for Restriction | | :--- | :--- | :--- | | Other Monetary Funds | 40,118,012.92 | Bank acceptance bill deposits, letter of guarantee deposits | | Total | 40,118,012.92 | — | - During the reporting period, the company had no major overseas assets or assets and liabilities measured at fair value[48] VI. Analysis of Investment Status During the reporting period, the company had no significant equity investments, non-equity investments, securities investments, or derivative investments, nor any use of raised funds, primarily investing in financial assets through wealth management products purchased with its own funds - The company reported no securities investments, derivative investments, significant equity investments, significant non-equity investments, or use of raised funds during the reporting period[50][51][52] VII. Significant Asset and Equity Sales During the reporting period, the company did not engage in any significant asset or equity sales - The company did not sell any significant assets or equity during the reporting period[53][54] VIII. Analysis of Major Controlled and Invested Companies Beijing Tungkong Jiahua Security Information Technology Co., Ltd. is one of the company's major subsidiaries, with businesses including archive storage and electronic documents, reporting total assets of 337.85 million yuan, net assets of 148.83 million yuan, and net profit of 23.26 million yuan at the end of the reporting period Financial Data of Major Subsidiaries | Company Name | Company Type | Principal 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) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Tungkong Jiahua Security Information Technology Co., Ltd. | Subsidiary | Archive storage, electronic documents, etc. | 4,892.68 | 33,785.47 | 14,882.71 | 2,735.04 | 2,325.76 | 2,325.76 | - The company neither acquired nor disposed of any subsidiaries during the reporting period[56] 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[56] X. Risks Faced by the Company and Countermeasures The company faces risks from a shrinking traditional ticket printing market, intensified competition leading to reduced profitability, and the need for continuous technological upgrades due to rapid iteration of new technologies, which it addresses by expanding market share, reducing costs, pursuing differentiated competition, and continuously developing new products and technologies - Risk: The overall market size for traditional ticket printing business is shrinking[56] - Countermeasure: Expand market share, leverage competitive advantages, broaden product coverage; simultaneously increase market development in technical services, high-end color printing, and smart card manufacturing[56] - Risk: Intensified market competition, leading to reduced product profitability[56] - Countermeasure: Reduce production and operating costs, improve production efficiency; enhance product profitability by offering high-quality, personalized services through differentiated competition[56] - Risk: Continuous emergence of new technologies and products, accelerating technological iteration, requiring constant technical upgrades for the company's products[57] - Countermeasure: Guided by market demand, focus on new technology trends, continuously develop new products and services, and promote the company's business development[57] XI. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system nor disclosed any valuation enhancement plan - The company has not formulated a market value management system nor disclosed any valuation enhancement plan[58] XII. Implementation of 'Dual Improvement in Quality and Returns' Action Plan The company has not disclosed any announcement regarding the 'Dual Improvement in Quality and Returns' action plan - The company has not disclosed any announcement regarding the 'Dual Improvement in Quality and Returns' action plan[58] Section IV Corporate Governance, Environment, and Society I. Changes in Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the company's directors, supervisors, or senior management, with specific details available in the 2024 annual report - The company's directors, supervisors, and senior management experienced no changes during the reporting period[60] II. Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting 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[61] III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures, nor any implementation thereof - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures, nor any implementation thereof, during the reporting period[62] IV. Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The company and its major subsidiaries are not included in the list of enterprises legally required to disclose environmental information[63] V. Social Responsibility The company values corporate social responsibility by protecting shareholder rights through improved governance, timely disclosure, and active cash dividends; adheres to a 'people-oriented' philosophy, complying with labor laws to ensure employee health and safety; fosters strategic partnerships with suppliers and clients based on 'equality and mutual benefit'; and prioritizes production safety and environmental protection, strictly implementing the ISO14001 environmental management system - The company has established a sound corporate governance structure and internal control system, communicates with investors through various channels, safeguards the legitimate rights and interests of all shareholders, and has consistently implemented cash dividends for many years, with a dividend payout ratio exceeding 40% of net profit attributable to the parent company[63] - Adhering to a 'people-oriented' management philosophy, the company has established a GB/T28001-2001 occupational health and safety management system, strictly complying with labor laws and regulations to protect employee rights, health, and safety[64] - The company adheres to the principle of 'equality and mutual benefit,' actively building strategic partnerships with suppliers and clients, emphasizing communication and coordination, and fulfilling its social responsibilities[64][65] - The company places high importance on production safety, establishing and improving responsibility systems, strengthening training, and has not experienced any major safety accidents for many years; it strictly implements the ISO14001 environmental management system, effectively treating wastewater, exhaust gas, and solid waste[65] Section V Significant Matters I. Commitments Fulfilled and Overdue Unfulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and Other Committed Parties During and as of the End of the Reporting Period During the reporting period, the company reported no commitments fulfilled or overdue unfulfilled by its actual controller, shareholders, related parties, acquirers, or other committed parties - The company reported no overdue unfulfilled commitments by relevant parties during the reporting period[67] II. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties from the Listed Company During the reporting period, there were no instances of non-operating funds being occupied by controlling shareholders or other related parties from the listed company - The company reported no non-operating funds occupied by controlling shareholders or other related parties from the listed company during the reporting period[68] III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company reported no irregular external guarantees during the reporting period[69] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was unaudited - The company's semi-annual report was unaudited[70] V. Board of Directors' and Supervisory Board's Explanations on the Accounting Firm's 'Non-Standard Audit Report' for This Reporting Period During the reporting period, there were no explanations from the board of directors or supervisory board regarding the accounting firm's 'non-standard audit report' for this period - The company reported no explanations related to 'non-standard audit reports' during the reporting period[71] VI. Board of Directors' Explanations on the 'Non-Standard Audit Report' for the Prior Year During the reporting period, there were no explanations from the board of directors regarding the 'non-standard audit report' for the prior year - The company reported no explanations related to the prior year's 'non-standard audit report' during the reporting period[71] VII. Bankruptcy and Reorganization Matters The company had no bankruptcy and reorganization matters during the reporting period - The company reported no bankruptcy and reorganization matters during the reporting period[71] VIII. Litigation Matters The company had no significant litigation, arbitration, or other litigation matters during this reporting period - The company reported no significant litigation or arbitration matters during this reporting period[72] IX. Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company reported no penalties or rectification situations during the reporting period[73] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the reporting period, there were no issues concerning the integrity status of the company, its controlling shareholder, or actual controller - The company reported no issues concerning the integrity status of the company, its controlling shareholder, or actual controller during the reporting period[74] XI. Significant Related Party Transactions During the reporting period, the company had no related party transactions concerning daily operations, asset or equity acquisitions/disposals, joint external investments, related party debts, or financial business with affiliated finance companies, nor any other significant related party transactions - The company reported no related party transactions related to daily operations during the reporting period[74] - The company reported no related party transactions involving asset or equity acquisitions or sales during the reporting period[75] - The company reported no related party creditor-debtor relationships during the reporting period[77] - There were no deposit, loan, credit, or other financial transactions between the company and affiliated finance companies, or between the company's controlled finance companies and related parties[78][79] XII. Significant Contracts and Their Performance During the reporting period, the company had no entrustment, contracting, or leasing matters, nor any significant guarantees; for entrusted wealth management, the outstanding balance at period-end was 361 million yuan, with no overdue unrecovered amounts, and no other significant contracts - The company reported no entrustment, contracting, or leasing matters during the reporting period[81][82][83] - The company reported no significant guarantee situations during the reporting period[84] Entrusted Wealth Management Status | Specific Type | Source of Entrusted Funds | Amount of Entrusted Wealth Management (ten thousand yuan) | Outstanding Balance (ten thousand yuan) | Overdue Unrecovered Amount (ten thousand yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 69,700 | 36,100 | 0 | | Total | | 69,700 | 36,100 | 0 | - The company reported no other significant contracts during the reporting period[86] XIII. Explanation of Other Significant Matters The company reported no other significant matters requiring explanation during the reporting period - The company reported no other significant matters requiring explanation during the reporting period[87] XIV. Significant Matters of Company Subsidiaries The company reported no significant matters concerning its subsidiaries during the reporting period - The company reported no significant matters concerning its subsidiaries during the reporting period[88] Section VI Share Changes and Shareholder Information I. Share Change Status At the end of the reporting period, the company's total share capital remained unchanged at 523,720,955 shares, comprising 166,275 restricted shares and 523,554,680 unrestricted shares, with no changes in share structure Share Change Status | Share Type | Quantity Before Change (shares) | Proportion Before Change | Net Change (+, -) (shares) | Quantity After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 166,275 | 0.03% | 0 | 166,275 | 0.03% | | II. Unrestricted Shares | 523,554,680 | 99.97% | 0 | 523,554,680 | 99.97% | | III. Total Shares | 523,720,955 | 100.00% | 0 | 523,720,955 | 100.00% | - During the reporting period, there were no changes or applicability regarding the reasons for share changes, approval status, transfer status, progress of share repurchase implementation, or impact on financial indicators[91][92] II. Securities Issuance and Listing The company had no securities issuance or listing during the reporting period - The company reported no securities issuance or listing during the reporting period[92] III. Number of Shareholders and Shareholding Status At the end of the reporting period, the total number of common shareholders was 39,429; the top three shareholders were Beijing Zhongjiahua Information Technology Co., Ltd. (11.64%), Hong Kong Xiduolai Group Co., Ltd. (9.73%), and Jinan Development State-owned Industrial Asset Management Co., Ltd. (9.47%), with some shares of the latter being frozen - At the end of the reporting period, the total number of common shareholders was 39,429[93] Top 10 Shareholders' Shareholding Status | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at Period-end (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Zhongjiahua Information Technology Co., Ltd. | Domestic Non-State-owned Legal Person | 11.64% | 60,961,650.00 | 60,961,650.00 | N/A | 0 | | Hong Kong Xiduolai Group Co., Ltd. | Overseas Legal Person | 9.73% | 50,948,000.00 | 50,948,000.00 | N/A | 0 | | Jinan Development State-owned Industrial Asset Management Co., Ltd. | State-owned Legal Person | 9.47% | 49,593,600.00 | 49,593,600.00 | Frozen | 4,980,703.00 | | Fei Zhanjun | Domestic Natural Person | 3.93% | 20,600,000.00 | 20,600,000.00 | N/A | 0 | | Shi Ting | Domestic Natural Person | 1.08% | 5,632,700.00 | 5,632,700.00 | N/A | 0 | | Wu Kang | Domestic Natural Person | 0.57% | 3,000,000.00 | 3,000,000.00 | N/A | 0 | | Wu Lei | Domestic Natural Person | 0.52% | 2,715,150.00 | 2,715,150.00 | N/A | 0 | | Shenzhen Tairun Haiji Asset Management Co., Ltd. - Tairun Jianfa No. 1 Securities Investment Private Fund | Other | 0.50% | 2,644,600.00 | 2,644,600.00 | N/A | 0 | | Xintian Technology Co., Ltd. | Domestic Non-State-owned Legal Person | 0.36% | 1,880,000.00 | 1,880,000.00 | N/A | 0 | | Li Liping | Domestic Natural Person | 0.35% | 1,829,100.00 | 1,829,100.00 | N/A | 0 | - Shareholder Fei Zhanjun and Xintian Technology Co., Ltd. are parties acting in concert[94] - Some of the top 10 unrestricted shareholders hold shares through margin accounts[94] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period, with details available in the 2024 annual report - The shareholdings of the company's directors, supervisors, and senior management experienced no changes during the reporting period[95] V. Changes in Controlling Shareholder or Actual Controller Neither the company's controlling shareholder nor its actual controller changed during the reporting period - The company's controlling shareholder did not change during the reporting period[96] - The company's actual controller did not change during the reporting period[97] VI. Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[99] Section VII Bond-Related Information Bond-Related Information The company had no bond-related information during the reporting period - The company reported no bond-related information during the reporting period[101] Section VIII Financial Report I. Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[103] II. Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the financial position, operating results, and cash flow at the end of the reporting period 1. Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 1,897.03 million yuan, a 6.36% decrease from the beginning of the period, with total current assets of 1,026.85 million yuan, total non-current assets of 870.18 million yuan, total liabilities of 530.76 million yuan, and total owners' equity of 1,366.26 million yuan Key Data from Consolidated Balance Sheet | Item | Period-end Balance (yuan) | Period-beginning Balance (yuan) | | :--- | :--- | :--- | | Monetary Funds | 97,579,414.62 | 301,373,775.51 | | Financial Assets Held for Trading | 361,000,000.00 | 416,000,000.00 | | Accounts Receivable | 344,669,410.56 | 228,396,637.85 | | Inventories | 93,185,296.46 | 147,996,162.53 | | Contract Assets | 49,920,696.35 | 15,729,638.43 | | Fixed Assets | 679,197,960.22 | 682,045,144.80 | | Total Assets | 1,897,028,756.47 | 2,025,970,129.93 | | Total Liabilities | 530,764,234.99 | 628,219,876.01 | | Total Owners' Equity | 1,366,264,521.48 | 1,397,750,253.92 | 2. Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were 1,881.40 million yuan, a decrease from the beginning of the period, with total current assets of 848.90 million yuan, total non-current assets of 1,032.50 million yuan, total liabilities of 564.26 million yuan, and total owners' equity of 1,317.14 million yuan Key Data from Parent Company Balance Sheet | Item | Period-end Balance (yuan) | Period-beginning Balance (yuan) | | :--- | :--- | :--- | | Monetary Funds | 79,584,402.52 | 269,322,048.31 | | Financial Assets Held for Trading | 361,000,000.00 | 416,000,000.00 | | Accounts Receivable | 295,028,506.27 | 176,591,693.69 | | Inventories | 70,591,172.65 | 118,694,630.07 | | Long-term Equity Investments | 516,824,427.00 | 556,824,427.00 | | Total Assets | 1,881,398,099.62 | 2,084,032,854.77 | | Total Liabilities | 564,255,548.25 | 761,872,594.02 | | Total Owners' Equity | 1,317,142,551.37 | 1,322,160,260.75 | 3. Consolidated Income Statement In the first half of 2025, the company achieved total operating revenue of 581.39 million yuan, net profit of 78.50 million yuan, net profit attributable to parent company shareholders of 78.50 million yuan, and basic earnings per share of 0.1499 yuan/share Key Data from Consolidated Income Statement | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 581,387,133.38 | 579,759,210.21 | | Total Operating Cost | 478,442,288.31 | 493,673,903.05 | | Operating Profit | 95,957,610.36 | 82,555,896.06 | | Total Profit | 95,307,032.10 | 82,536,033.18 | | Net Profit | 78,495,668.11 | 70,796,631.68 | | Net Profit Attributable to Parent Company Shareholders | 78,495,668.11 | 70,796,631.68 | | Basic Earnings Per Share (yuan/share) | 0.1499 | 0.1297 | | Diluted Earnings Per Share (yuan/share) | 0.1499 | 0.1297 | 4. Parent Company Income Statement In the first half of 2025, the parent company achieved operating revenue of 471.10 million yuan, net profit of 104.96 million yuan, and basic earnings per share of 0.2004 yuan/share Key Data from Parent Company Income Statement | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Operating Revenue | 471,103,080.43 | 455,011,465.28 | | Operating Cost | 334,276,295.96 | 331,512,179.72 | | Operating Profit | 116,096,136.57 | 138,298,932.34 | | Total Profit | 116,188,496.60 | 138,319,779.92 | | Net Profit | 104,963,691.17 | 127,962,196.72 | | Basic Earnings Per Share (yuan/share) | 0.2004 | 0.2345 | | Diluted Earnings Per Share (yuan/share) | 0.2004 | 0.2345 | 5. Consolidated Cash Flow Statement In the first half of 2025, the company's net cash flow from operating activities was -109.58 million yuan, net cash flow from investing activities was 20.46 million yuan, and net cash flow from financing activities was -108.46 million yuan, resulting in a net increase in cash and cash equivalents of -197.59 million yuan Key Data from Consolidated Cash Flow Statement | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -109,584,689.08 | -53,544,196.98 | | Net Cash Flow from Investing Activities | 20,456,802.17 | -405,811,875.50 | | Net Cash Flow from Financing Activities | -108,462,278.74 | -263,561,941.69 | | Net Increase in Cash and Cash Equivalents | -197,589,105.94 | -722,918,085.20 | | Period-end Balance of Cash and Cash Equivalents | 57,461,401.70 | 58,078,954.33 | 6. Parent Company Cash Flow Statement In the first half of 2025, the parent company's net cash flow from operating activities was -199.56 million yuan, net cash flow from investing activities was 121.59 million yuan, and net cash flow from financing activities was -105.95 million yuan, resulting in a net increase in cash and cash equivalents of -183.91 million yuan Key Data from Parent Company Cash Flow Statement | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -199,562,218.00 | -117,171,266.87 | | Net Cash Flow from Investing Activities | 121,593,634.05 | -348,200,317.70 | | Net Cash Flow from Financing Activities | -105,946,768.73 | -255,415,445.86 | | Net Increase in Cash and Cash Equivalents | -183,914,292.97 | -720,787,101.46 | | Period-end Balance of Cash and Cash Equivalents | 40,543,491.85 | 40,129,711.81 | 7. Consolidated Statement of Changes in Owners' Equity As of June 30, 2025, the company's consolidated total owners' equity was 1,366.26 million yuan, a decrease of 31.49 million yuan from the beginning of the period, with total comprehensive income of 78.50 million yuan and profit distribution decreasing by 109.98 million yuan Changes in Consolidated Owners' Equity | Item | Share Capital (yuan) | Capital Reserve (yuan) | Surplus Reserve (yuan) | Retained Earnings (yuan) | Total Owners' Equity Attributable to Parent Company (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Balance at Prior Year-end | 523,720,955.00 | 108,812,598.19 | 370,052,378.93 | 395,164,321.80 | 1,397,750,253.92 | | III. Amount of Changes in Current Period | 0 | 0 | 10,496,369.12 | -41,982,101.56 | -31,485,732.44 | | (I) Total Comprehensive Income | - | - | - | 78,495,668.11 | 78,495,668.11 | | (III) Profit Distribution | - | - | 10,496,369.12 | -120,477,769.67 | -109,981,400.55 | | IV. Balance at Current Period-end | 523,720,955.00 | 108,812,598.19 | 380,548,748.05 | 353,182,220.24 | 1,366,264,521.48 | 8. Parent Company Statement of Changes in Owners' Equity As of June 30, 2025, the parent company's total owners' equity was 1,317.14 million yuan, a decrease of 5.02 million yuan from the beginning of the period, with total comprehensive income of 104.96 million yuan and profit distribution decreasing by 109.98 million yuan Changes in Parent Company Owners' Equity | Item | Share Capital (yuan) | Capital Reserve (yuan) | Surplus Reserve (yuan) | Retained Earnings (yuan) | Total Owners' Equity (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Balance at Prior Year-end | 523,720,955.00 | 236,548,589.30 | 370,052,378.93 | 191,838,337.52 | 1,322,160,260.75 | | III. Amount of Changes in Current Period | 0 | 0 | 10,496,369.12 | -15,514,078.50 | -5,017,709.38 | | (I) Total Comprehensive Income | - | - | - | 104,963,691.17 | 104,963,691.17 | | (III) Profit Distribution | - | - | 10,496,369.12 | -120,477,769.67 | -109,981,400.55 | | IV. Balance at Current Period-end | 523,720,955.00 | 236,548,589.30 | 380,548,748.05 | 176,324,259.02 | 1,317,142,551.37 | III. Company Overview Tungkong Co., Ltd., established in 1996 and listed in 2007, has a registered capital of 523.72 million yuan; its principal businesses include printing of publications, packaging, and office paper, anti-counterfeiting documents, smart cards, RFID tags, information system integration, data processing, archive storage and digitization, electronic documents, commercial cryptographic product development and sales, self-service terminals, logistics, and signage production - The company's registered address is Jinan, Shandong Province, with a registered capital of RMB 523.72 million yuan, and its legal representative is Shi Jianzhong[135] - The company's business scope is extensive, covering printing, composite, and technical service businesses, such as commercial document printing, smart card manufacturing, RFID smart tags, archive storage and digitization, electronic document services, and robotics and AI technical services[136][137] IV. Basis of Financial Statement Preparation The company's financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance, their application guidelines, interpretations, and other relevant regulations, as well as the China Securities Regulatory Commission's 'No. 15 Rules for Information Disclosure by Companies Issuing Securities to the Public—General Provisions on Financial Reports' (2023 Revision), and on a going concern basis - The company's financial statements are prepared in accordance with the Accounting Standards for Business Enterprises and relevant CSRC regulations[138] - The company's board of directors believes that the company has sufficient working capital to continue as a going concern, thus preparing the financial statements on a going concern basis[139] V. Significant Accounting Policies and Estimates This section details the company's specific accounting policies and estimates for financial statement preparation, covering enterprise accounting standards, accounting period, operating cycle, functional currency, materiality, business combinations, consolidated financial statements, joint arrangements, cash and cash equivalents, foreign currency transactions, financial instruments, various receivables, inventories, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee compensation, provisions, share-based payments, preferred/perpetual bonds, revenue, contract costs, government grants, deferred tax assets/liabilities, and leases, with no significant changes in accounting policies or estimates during the reporting period - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, accurately and completely reflecting the company's financial position, operating results, and cash flows[141] - The company defines a 12-month period as an operating cycle and uses it as the criterion for classifying assets and liabilities as current or non-current[143] - The company has established detailed accounting policies and estimation methods for financial instrument classification and measurement, expected credit loss assessment, and revenue recognition[159][166][222] - There were no significant changes in accounting policies and estimates during this reporting period[238][239] VI. Taxation The company's main taxes include Value-Added Tax (13%, 9%, 6%), Urban Maintenance and Construction Tax (5%, 7%), Enterprise Income Tax (25%), and Education Surcharge (3%, 2%); the company and several wholly-owned subsidiaries, having obtained high-tech enterprise certificates, paid enterprise income tax at a reduced rate of 15% during this reporting period Major Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Output tax calculated at 13%, 9%, 6% on taxable income, and VAT paid on the difference after deducting input tax allowed for the current period | 13%, 9%, 6% | | Urban Maintenance and Construction Tax | Calculated at 5%, 7% of the actually paid turnover tax | 5%, 7% | | Enterprise Income Tax | Calculated at 25% of taxable income | 25% | | Education Surcharge | Calculated at 3% and 2% of the actually paid turnover tax | 3%, 2% | - The company and its wholly-owned subsidiaries, Shanghai Tungkong Data Processing Co., Ltd., Beijing Ruihong Embodied Intelligent Robot Technology Co., Ltd., and Tungkong Ruiyun Data Technology Co., Ltd., all obtained high-tech enterprise certificates and paid enterprise income tax at a reduced rate of 15% during this reporting period[241] VII. Notes to Consolidated Financial Statement Items This section details the period-end balances, period-beginning balances, and changes for each item in the consolidated financial statements, including monetary funds, financial assets held for trading, accounts receivable, contract assets, inventories, fixed assets, intangible assets, goodwill, deferred tax assets/liabilities, accounts payable, contract liabilities, employee compensation, operating revenue and costs, and various expenses and incomes; notably, monetary funds significantly decreased, accounts receivable and contract assets substantially increased, and composite product revenue grew significantly Changes in Consolidated Monetary Funds | Item | Period-end Balance (yuan) | Period-beginning Balance (yuan) | | :--- | :--- | :--- | | Cash on Hand | 325,327.65 | 257,326.20 | | Bank Deposits | 56,751,048.76 | 251,450,928.11 | | Other Monetary Funds | 40,503,038.21 | 49,665,521.20 | | Total | 97,579,414.62 | 301,373,775.51 | Aging Structure of Consolidated Accounts Receivable | Aging | Period-end Book Balance (yuan) | Period-beginning Book Balance (yuan) | | :--- | :--- | :--- | | Within 1 year (inclusive) | 326,159,850.88 | 210,261,192.13 | | 1 to 2 years | 22,922,990.68 | 19,125,164.10 | | 2 to 3 years | 10,611,735.07 | 9,496,176.33 | | Over 3 years | 11,392,273.08 | 7,677,833.15 | | Total | 371,086,849.71 | 246,560,365.71 | Consolidated Operating Revenue and Operating Cost | Item | Current Period Revenue (yuan) | Current Period Cost (yuan) | Prior Period Revenue (yuan) | Prior Period Cost (yuan) | | :--- | :--- | :--- | :--- | :--- | | Principal Business | 571,466,408.93 | 375,819,728.81 | 571,364,454.97 | 390,919,304.71 | | Other Businesses | 9,920,724.45 | 4,068,345.82 | 8,394,755.24 | 1,880,066.55 | | Total | 581,387,133.38 | 379,888,074.63 | 579,759,210.21 | 392,799,371.26 | Composition of Consolidated R&D Expenses | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Direct Input Expenses | 7,640,311.97 | 7,309,373.67 | | Personnel Expenses | 15,042,297.71 | 16,504,567.99 | | Depreciation and Amortization | 4,140,466.82 | 3,962,558.73 | | Other Related Expenses | 645,724.86 | 252,227.61 | | Total | 27,468,801.36 | 28,028,728.00 | VIII. R&D Expenditures The company's total R&D expenditures for this period amounted to 27.47 million yuan, a slight decrease of 2.00% from the prior period, all expensed, with personnel expenses being the largest component at 15.04 million yuan R&D Expenditure Details | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Personnel Expenses | 15,042,297.71 | 7,309,373.67 | | Direct Input Expenses | 7,640,311.97 | 16,504,567.99 | | Depreciation and Amortization | 4,140,466.82 | 3,962,558.73 | | Other Related Expenses | 645,724.86 | 252,227.61 | | Total | 27,468,801.36 | 28,028,728.00 | | Of which: Expensed R&D Expenditures | 27,468,801.36 | 28,028,728.00 | IX. Interests in Other Entities The company's interests in subsidiaries primarily include Beijing Tungkong Security Printing Co., Ltd., Zhengzhou Tungkong Security Printing Co., Ltd., Beijing Tungkong Jiahua Security Information Technology Co., Ltd., Guangzhou Tungkong Security Printing Co., Ltd., Shanghai Tungkong Ruitai Security Technology Co., Ltd., and Shanghai Tungkong Data Processing Co., Ltd., with shareholding ratios of 100% or controlling interests Composition of Major Subsidiaries | Subsidiary Name | Registered Capital (yuan) | Principal Place of Business | Registered Place | Nature of Business | Shareholding Proportion (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Tungkong Security Printing Co., Ltd. | 80,000,000.00 | Beijing | Beijing | Manufacturing | 100.00% | Establishment | | Zhengzhou Tungkong Security Printing Co., Ltd. | 5,000,000.00 | Zhengzhou | Zhengzhou | Manufacturing | 100.00% | Establishment | | Beijing Tungkong Jiahua Security Information Technology Co., Ltd. | 48,926,762.50 | Beijing | Beijing | Technology | 100.00% | Establishment | | Guangzhou Tungkong Security Printing Co., Ltd. | 20,000,000.00 | Guangzhou | Guangzhou | Manufacturing | 100.00% | Establishment | | Shanghai Tungkong Ruitai Security Technology Co., Ltd. | 80,000,000.00 | Shanghai | Shanghai | Manufacturing | 100.00% | Establishment | | Shanghai Tungkong Data Processing Co., Ltd. | 150,000,000.00 | Shanghai | Shanghai | Manufacturing | 86.67% | Establishment | | Shandong Tungkong Caiyi Network Technology Co., Ltd. | 20,000,000.00 | Jinan | Jinan | Technology | 100.00% | Acquisition | X. Government Grants At the end of the reporting period, the company's deferred income included 0.58 million yuan in asset-related government grants; total government grants recognized in current profit or loss for the period amounted to 3.93 million yuan, primarily comprising tax refunds, project grants, expense subsidies, and employment stabilization subsidies Liability Items Involving Government Grants | Account Title | Period-beginning Balance (yuan) | New Grants Added in Current Period (yuan) | Amount Recognized in Non-operating Income in Current Period (yuan) | Amount Transferred to Other Income in Current Period (yuan) | Period-end Balance (yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 1,217,056.32 | 0 | 0 | 639,018.50 | 578,037.82 | Asset-related | Government Grants Recognized in Current Profit or Loss | Account Title | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Expense Subsidies | 261,070.23 | 734,666.66 | | Employment Stabilization Subsidies | 160,764.91 | 0 | | Project Grants | 983,580.22 | 926,512.25 | | Tax Refunds | 2,352,116.05 | 3,411,881.57 | | Handling Fee Refunds | 171,088.97 | 222,657.55 | - At the end of the reporting period, the company did not recognize government grants based