梦网科技(002123) - 2025 Q2 - 季度财报

Section 1 Important Notes, Table of Contents, and Definitions Important Notes The Board of Directors guarantees the authenticity of the report, plans no dividend distribution, and highlights risks in the 5G sector - The company's Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming joint and several legal liability[4] - The company does not plan to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital[9] - The company faces risks related to 5G technology R&D, product innovation, market development, and industry regulation[5][6][8] Table of Contents This section provides a detailed table of contents for the report, outlining its nine main chapters List of Documents for Inspection This section lists the reference documents for the semi-annual report, including the full text and financial statements - Documents for inspection include the 2025 semi-annual report full text and summary, signed by directors and senior management and affixed with the company seal[13] - Documents for inspection include financial reports signed and sealed by the legal representative, chief financial officer, and head of the accounting department[14] Definitions This section defines key terms used in the report, such as company names and technical acronyms like PaaS and SaaS - "The Company," "Montnets Technology," and "this Company" all refer to Montnets Cloud Technology Group Co, Ltd[16] - The "Montnets 5G Rich Media Messaging" solution includes 5G Messaging (Yuexin), 5G Messaging (RCS), 5G Video Messaging, and SMS Service Accounts, providing a comprehensive fallback solution[16] - "PaaS" refers to Platform-as-a-Service; "SaaS" refers to Software-as-a-Service[16] Section 2 Company Profile and Key Financial Indicators I. Company Profile This section provides basic information about the company, including its stock ticker, listing exchange, and legal representative - The company's stock short name is "Montnets Technology," stock code 002123, listed on the Shenzhen Stock Exchange[18] - The company's legal representative is Yu Wensheng[18] II. Contact Persons and Methods This section provides contact information for the company's Board Secretary and Securities Affairs Representative - The Board Secretary is Ma Li, and the Securities Affairs Representative is Gao Yizhen, both located at 2/F, Longtaili Technology Building, Shenzhen[19] III. Other Information This section states that the company's contact details and information disclosure locations remained unchanged during the reporting period - The company's registered address, office address, website, and email address remained unchanged during the reporting period[20] - The company's designated securities exchange website and media for disclosing the semi-annual report remained unchanged during the reporting period[21] IV. Key Accounting Data and Financial Indicators This section discloses key financial data, showing a significant revenue decline but stable net profit attributable to shareholders Key Accounting Data and Financial Indicators (Consolidated) | Indicator | Current Period (CNY) | Prior Year Period (CNY) | Change Y-o-Y | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,539,003,472.56 | 2,327,942,845.92 | -33.89% | | Net Profit Attributable to Shareholders | 9,239,935.86 | 9,235,475.37 | 0.05% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | -20,661,247.22 | -6,451,951.08 | -220.23% | | Net Cash Flow from Operating Activities | 187,311,946.92 | 634,709,322.88 | -70.49% | | Basic Earnings Per Share (CNY/Share) | 0.01 | 0.01 | 0.00% | | Diluted Earnings Per Share (CNY/Share) | 0.01 | 0.01 | 0.00% | | Weighted Average Return on Equity | 0.52% | 0.57% | -0.05% | | Period-End Indicators | End of Current Period (CNY) | End of Prior Year (CNY) | Change vs. Prior Year-End | | Total Assets | 3,563,769,348.74 | 3,955,680,687.88 | -9.91% | | Net Assets Attributable to Shareholders | 1,793,505,905.01 | 1,710,917,349.25 | 4.83% | V. Differences in Accounting Data under Domestic and Foreign Accounting Standards This section confirms no discrepancies in net profit or net assets between Chinese and international accounting standards - The company reports no differences in net profit and net assets between disclosures under IFRS and Chinese Accounting Standards[24] - The company reports no differences in net profit and net assets between disclosures under foreign accounting standards and Chinese Accounting Standards[25] VI. Non-recurring Profit and Loss Items and Amounts This section details non-recurring profit and loss items totaling CNY 29.90 million, mainly from asset disposals and government grants Non-recurring Profit and Loss Items and Amounts | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 17,002,907.91 | | Government Grants Recognized in Current Profit or Loss | 478,971.62 | | Gains/Losses from Fair Value Changes of Financial Assets/Liabilities Held by Non-financial Enterprises | 643,203.20 | | Reversal of Impairment Provision for Individually Tested Receivables | 2,053,939.66 | | Other Non-operating Income and Expenses | 9,786,284.93 | | Less: Income Tax Effect | 63,699.02 | | Less: Minority Interest Effect (After Tax) | 425.22 | | Total | 29,901,183.08 | Section 3 Management Discussion and Analysis I. Principal Business Activities during the Reporting Period The company focuses on AI+communications and 5G messaging while expanding into AI computing, big data, and the metaverse - The company has established a "3+N" strategy, focusing on 5G Yuexin, cloud communications, and international communications, while expanding into AI, big data, and the metaverse[30] - The integration of AI and communications is creating a new blue ocean market for intelligent and diversified information services[30] 1. Company's Main Business The company's main business includes cloud communication, Yuexin platform, and international communication services - Montnets Cloud Communication products include 5G Yuexin, industry SMS, 5G Messaging, 5G Video Messaging, SMS Service Accounts, and voice verification codes[31] - 5G Yuexin holds 6 core patents and nearly 100 related patents, with compatibility on over 80% of domestic smartphones, covering over 1.17 billion devices[46] - International communication services cover 200+ countries with over 1,200 carrier channels and obtained a Mobile Virtual Network Operator (MVNO) license in Hong Kong in August 2024[48][49] 2. 5G Rich Media Messaging Solutions for Various Industries The company offers full-stack 5G rich media messaging solutions to support digital transformation across multiple industries - Provides end-to-end 5G rich media messaging solutions for the financial industry to enhance user experience and support customer acquisition, activation, and conversion[60][61] - Builds efficient communication bridges for the government sector, enabling one-stop government services and enriching public information dissemination channels[61] - Offers 5G rich media messaging solutions for the internet industry to increase revenue, encourage repurchases, improve ROI, and boost user acquisition and retention[61] II. Core Competitiveness Analysis The company's core strengths lie in its first-mover advantage in 5G messaging, R&D capabilities, and extensive partnerships - The company has a first-mover and technological advantage in 5G Video Messaging and 5G Yuexin, with extensive operational experience[62][63] - The company holds 220 patents and 167 software copyrights, with its R&D capabilities recognized by CMMI3.0 and national high-tech enterprise certifications[65][66] - The company maintains stable partnerships with China's three major operators and deep collaborations with terminal manufacturers like Huawei, Xiaomi, OPPO, and vivo, achieving Yuexin coverage on over 1.1 billion devices[69][70][71] - Montnets' international business covers over 220 countries with 1,200+ carrier channels, supported by proprietary platform technology and multiple authoritative licenses[72][73][74] III. Analysis of Principal Business The company's main business sales decreased by 33.89% year-on-year, leading to a sharp drop in revenue and costs Key Financial Data Year-on-Year Changes | Indicator | Current Period (CNY) | Prior Year Period (CNY) | Change Y-o-Y | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,539,003,472.56 | 2,327,942,845.92 | -33.89% | Decrease in main business sales | | Operating Costs | 1,345,466,437.14 | 2,132,376,501.44 | -36.90% | Decrease in main business procurement | | Selling Expenses | 87,963,338.82 | 73,139,644.34 | 20.27% | | | Administrative Expenses | 56,000,411.23 | 46,698,561.05 | 19.92% | | | Finance Costs | 16,153,468.22 | 24,951,004.53 | -35.26% | Decrease in borrowing interest and exchange losses | | Income Tax Expense | 7,213,188.17 | 1,118,715.17 | 544.77% | Increase in total profit | | Net Cash Flow from Operating Activities | 187,311,946.92 | 634,709,322.88 | -70.49% | Decrease in sales collections | | Net Cash Flow from Investing Activities | 175,134,786.09 | -3,267,073.50 | 5,460.60% | Increase in receipts from wealth management products | | Net Cash Flow from Financing Activities | -115,872,674.58 | -609,595,481.87 | 80.99% | Increase in financing compared to the prior period | | Net Increase in Cash and Cash Equivalents | 246,504,013.28 | 19,851,082.66 | 1,141.77% | Combined effect of operating, investing, and financing activities | Operating Revenue Breakdown | Category | Current Period Amount (CNY) | % of Revenue | Prior Year Period Amount (CNY) | % of Revenue | Change Y-o-Y | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,539,003,472.56 | 100% | 2,327,942,845.92 | 100% | -33.89% | | Cloud Communication Services | 1,447,929,997.85 | 94.08% | 2,170,329,020.33 | 93.23% | -33.29% | | Other Cloud Business | 91,073,474.71 | 5.92% | 157,613,825.59 | 6.77% | -42.22% | | Domestic Revenue | 1,011,969,288.28 | 65.75% | 1,861,073,039.99 | 79.94% | -45.62% | | International Revenue | 527,034,184.28 | 34.25% | 466,869,805.93 | 20.06% | 12.89% | - The gross margin for cloud communication services was 13.12%, an increase of 4.33 percentage points year-on-year[84][86] IV. Non-Principal Business Analysis Non-principal business activities, primarily from asset disposals and credit loss reversals, significantly contributed to total profit Impact of Non-Principal Business on Total Profit | Item | Amount (CNY) | % of Total Profit | Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 1,381,741.99 | 4.64% | | No | | Fair Value Change Gains/Losses | -24,732.58 | -0.08% | | No | | Non-operating Income | 9,922,535.72 | 33.33% | Mainly from payables no longer required for power electronics business | No | | Credit Impairment Losses | 13,865,221.05 | 46.57% | Mainly from bad debt write-offs or reversals | No | | Asset Disposal Gains | 16,993,979.68 | 57.08% | Mainly from disposal of other non-current assets | No | V. Asset and Liability Analysis Total assets decreased by 9.91% while net assets attributable to shareholders grew by 4.83% Significant Changes in Asset Composition | Item | End of Current Period (CNY) | % of Total Assets | End of Prior Year (CNY) | % of Total Assets | Change in % | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 1,140,660,936.71 | 32.01% | 1,016,187,560.64 | 25.69% | 6.32% | | Accounts Receivable | 1,139,978,152.14 | 31.99% | 1,605,553,841.60 | 40.59% | -8.60% | | Right-of-use Assets | 9,290,957.60 | 0.26% | 4,895,065.21 | 0.12% | 0.14% | | Short-term Borrowings | 1,051,532,444.41 | 29.51% | 1,180,827,836.42 | 29.85% | -0.34% | | Net Assets Attributable to Shareholders | 1,793,505,905.01 | | 1,710,917,349.25 | | 4.83% | - Montnets International (Hong Kong) Limited has assets of CNY 336.86 million and income of CNY 19.88 million, representing 18.43% of the company's net assets, with no significant impairment risk[92] - As of the reporting date, total restricted assets amounted to CNY 698.65 million, primarily consisting of cash deposits and pledged fixed assets for bank loans[95] VI. Investment Analysis The company's total investment amount decreased significantly by 88.60% year-on-year - The investment amount for the reporting period was CNY 13.55 million, a decrease of 88.60% from CNY 118.82 million in the prior year period[97] Financial Asset Investments | Item | Opening Balance (CNY) | Fair Value Change (CNY) | Amount Sold (CNY) | Closing Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 209,657.52 | -24,732.58 | 0 | 184,924.94 | | Other Equity Instrument Investments | 142,103,497.40 | 0 | 17,553,541.30 | 135,537,687.72 | | Receivables Financing | 2,049,936.05 | 0 | 1,635,536.05 | 414,400.00 | - The company had no significant equity investments, non-equity investments, derivative investments, or use of raised funds during the reporting period[98][100][101] VII. Major Asset and Equity Sales No major asset or equity sales occurred during the reporting period - The company did not sell any major assets during the reporting period[102] - The company did not sell any major equity during the reporting period[103] VIII. Analysis of Major Subsidiaries and Investees The performance of major subsidiaries varied, with some impacted by operator policies or slower-than-expected business development Major Subsidiaries and Investees Affecting Net Profit by over 10% | Company Name | Type | Registered Capital (CNY) | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shenzhen Montnets Technology Development Co, Ltd | Subsidiary | 200,000,000 | 3,466,290,260.54 | 1,686,154,752.75 | 1,081,660,024.46 | 21,973,517.83 | | Montnets International (Hong Kong) Limited | Subsidiary | 76,789,605 | 336,859,625.60 | 77,226,099.48 | 526,803,892.21 | 19,876,901.04 | | Shenzhen Montnets Cloud Create Technology Co, Ltd | Subsidiary | 100,000,000 | 133,001,979.31 | -281,784,945.24 | 12,200,061.27 | -8,379,117.17 | | Anshan Yunshu Technology Development Co, Ltd | Subsidiary | 160,000,000 | 189,487,458.64 | 54,030,942.35 | 105,106,914.44 | 3,078,892.94 | - Shenzhen Montnets Technology Development Co, Ltd's gross profit from domestic mobile information services declined by approximately 28% year-on-year due to operator policy changes[104] - Shenzhen Montnets Cloud Create Technology Co, Ltd's business development was slower than expected, resulting in a current lack of profitability[105] IX. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company had no controlled structured entities during the reporting period[106] X. Risks and Countermeasures The company faces risks in 5G technology R&D, market development, and regulation, which it addresses through innovation and strategic adjustments - The company faces 5G technology R&D risks and has established a technology innovation system, increased R&D investment, and attracted high-end talent to mitigate them[107][108] - To address product innovation and market development risks, the company will strengthen its sales channels and innovate products based on market demand to enhance core competitiveness[109][110] - To manage industry regulatory risks, the company will continuously monitor policy changes and adjust its business strategies accordingly to reduce operational risks[111][112][113] XI. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system or disclosed a valuation enhancement plan - The company has not formulated a market value management system[114] - The company has not disclosed a valuation enhancement plan[114] XII. Implementation of the "Dual Improvement in Quality and Returns" Action Plan The company has not disclosed an announcement regarding a "Dual Improvement in Quality and Returns" action plan - The company has not disclosed an announcement regarding a "Dual Improvement in Quality and Returns" action plan[114] Section 4 Corporate Governance, Environment, and Society I. Changes in Directors, Supervisors, and Senior Management Several changes occurred in the company's board and senior management due to work transfers and elections - Several supervisors, independent directors, and senior vice presidents resigned due to work transfers or term expirations[115] - A new independent director, a director and CFO, and a vice president and board secretary were elected to their positions[115] II. Profit Distribution and Capitalization of Capital Reserve for the Reporting Period The company does not plan to distribute dividends or capitalize its capital reserve for the semi-annual period - The company plans no cash dividend distribution, no bonus share issuance, and no capitalization of capital reserve for the semi-annual period[116] III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company implemented several equity and stock ownership plans to align employee and company interests - The company has granted stock options under its 2021 and 2022 stock option incentive plans, with several tranches having vested and been registered[118][119][120][121][122] - The first-phase employee stock ownership plan involves 15 employees holding 5,911,400 shares (0.73% of total capital), acquired at zero cost from repurchased shares[123] - The long-term employee stock ownership plan involves 34 employees holding 1,000,000 shares (0.12% of total capital), funded by a special incentive fund from 2021-2025[124] - During the reporting period, the long-term employee stock ownership plan sold 4,002,800 shares through centralized bidding, increasing profit by CNY 16.99 million[124][127] IV. Environmental Information Disclosure The company and its main subsidiaries are not listed as enterprises required to disclose environmental information - The listed company and its main subsidiaries are not included in the list of enterprises required to disclose environmental information by law[127] V. Social Responsibility The company actively fulfilled its social responsibilities by ensuring legal compliance, protecting stakeholder rights, and promoting employee welfare - The company adheres to lawful operations, complies with financial regulations, and fulfills its tax obligations[128] - The company continuously improves its corporate governance structure and ensures timely and fair information disclosure to protect investor interests[129] - The company is committed to protecting employee rights, providing a safe work environment, and offering competitive compensation and development opportunities[130] - The company upholds integrity in business, ensures product quality, and protects the legitimate rights of customers and suppliers[131] Section 5 Significant Matters I. Commitments Fulfilled or Overdue by Relevant Parties No commitments were fulfilled or remained overdue by the company's controlling shareholders or other related parties - The company reports no fulfilled or overdue commitments from its actual controller, shareholders, related parties, or acquirers during the reporting period[133] II. Non-operating Fund Occupation by Controlling Shareholder and Other Affiliates There was no non-operating fund occupation by the controlling shareholder or other related parties - The company reports no non-operating fund occupation by its controlling shareholder or other related parties during the reporting period[134] 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[135] IV. Appointment and Dismissal of Accounting Firm The company's semi-annual financial report was not audited - The company's semi-annual report was unaudited[136] V. Explanation on "Non-standard Audit Report" for the Current Period This section is not applicable as the semi-annual report was unaudited - As the semi-annual report was unaudited, there is no explanation regarding a "non-standard audit report" for the current period[137] VI. Explanation on "Non-standard Audit Report" for the Previous Year This section is not applicable as the semi-annual report was unaudited - As the semi-annual report was unaudited, there is no explanation regarding a "non-standard audit report" for the previous year[137] VII. Bankruptcy and Reorganization Matters The company was not involved in any bankruptcy or reorganization matters - The company had no bankruptcy or reorganization matters during the reporting period[137] VIII. Litigation Matters The company had no major litigation but was involved in several minor sales contract disputes - The company had no major litigation or arbitration matters during the reporting period[138] - The total amount involved in other litigation where the company was the plaintiff was CNY 50.92 million, with most cases won or in enforcement[140] - The total amount involved in other litigation where the company was the defendant was CNY 5.13 million, with some cases still pending[140] IX. Penalties and Rectifications The company was not subject to any penalties or rectifications - The company reports no penalties or rectifications during the reporting period[141] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller There were no integrity issues concerning the company or its controlling parties - The company reports no penalties or rectifications during the reporting period[141] XI. Major Related-Party Transactions No major related-party transactions occurred during the reporting period - The company had no related-party transactions related to daily operations[142] - The company had no related-party transactions involving the acquisition or sale of assets or equity[143] - The company had no related-party credit or debt transactions[145] - The company had no deposit, loan, credit, or other financial business with related financial companies[146] XII. Major Contracts and Their Performance The company had no major contracts for custody or wealth management but provided significant guarantees for its subsidiaries - The company had no custody, contracting, or wealth management arrangements during the reporting period[149][150][180] - During the reporting period, the company recognized CNY 7.18 million in depreciation of right-of-use assets and CNY 2.65 million in lease expenses[152] Guarantees for Subsidiaries | Indicator | Amount (CNY 10,000) | | :--- | :--- | | Approved guarantee limit for subsidiaries during the period | 97,750 | | Actual guarantees provided to subsidiaries during the period | 51,800 | | Total approved guarantee limit for subsidiaries at period-end | 146,960 | | Actual outstanding guarantee balance for subsidiaries at period-end | 69,895 | | Total guarantees as a percentage of company's net assets | 51.39% | | Amount of total guarantees exceeding 50% of net assets | 106,055.15 | | Outstanding guarantees for shareholders, actual controllers, and their affiliates | 3,558.4 | XIII. Explanation of Other Significant Matters The company is planning to acquire 100% of Hangzhou Bicheng Digital Technology Co, Ltd through a share issuance and cash payment - The company plans to acquire 100% equity of Hangzhou Bicheng Digital Technology Co, Ltd through a share issuance and cash payment, along with raising supporting funds[182] - This M&A is expected to create synergies, strengthen competitive advantages, optimize the business structure, and enhance risk resilience[183] - The transaction is still subject to necessary internal decision-making procedures and regulatory approvals, carrying significant uncertainty[184] XIV. Significant Matters of Company Subsidiaries No significant matters concerning the company's subsidiaries occurred during the reporting period - The company's subsidiaries had no significant matters to report[185] Section 6 Changes in Share Capital and Shareholders I. Changes in Share Capital The company's total share capital increased due to the exercise of stock options Changes in Share Capital | Share Type | Before Change (Shares) | Change (+, -) (Shares) | After Change (Shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 85,351,072 | 750 | 85,351,822 | | II. Unrestricted Shares | 715,238,900 | 4,829,868 | 720,068,768 | | III. Total Shares | 800,589,972 | 4,830,618 | 805,420,590 | - The change in share capital was primarily due to the exercise of 4,830,618 stock options under the 2022 incentive plans[189] - Based on the year-end share capital of 805,420,590 shares, basic EPS was CNY 0.01, diluted EPS was CNY 0.01, and net assets per share were CNY 2.22[192] II. Securities Issuance and Listing The company issued new A-shares due to the exercise of options under its 2021 and 2022 incentive plans - 233,300 options from the 2022 Second Phase Stock Option Incentive Plan were exercised at a price of CNY 11.29 per share[194][195] - 1,436,750 options from the 2022 Stock Option Incentive Plan were exercised at a price of CNY 15.50 per share[194][196] - 0 options from the 2021 Stock Option Incentive Plan were exercised at a price of CNY 17.48 per share[194][197] III. Number of Shareholders and Shareholdings The company had 183,781 common shareholders at the end of the period, with Yu Wensheng as the controlling shareholder - The total number of common shareholders at the end of the reporting period was 183,781[199] Shareholdings of Top 10 Shareholders or Those Holding Over 5% | Shareholder Name | Nature | Shareholding % | Shares Held at Period-End | Restricted Shares | Unrestricted Shares | Pledged/Marked/Frozen Shares | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yu Wensheng | Domestic Individual | 14.05% | 113,187,375 | 84,890,531 | 28,296,844 | 90,520,000 | | Shenzhen Songhe Venture Capital Co, Ltd | Domestic Non-state-owned Corp | 3.29% | 26,529,809 | 0 | 26,529,809 | 300,000 | | Zhang Yuan | Domestic Individual | 1.44% | 11,599,000 | 0 | 11,599,000 | 0 | - There are no known affiliations or concerted party relationships among the shareholders listed above[200][201] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of directors, supervisors, and senior management remained unchanged during the reporting period - The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period[202] V. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller, Yu Wensheng, remained unchanged - The company's controlling shareholder did not change during the reporting period[203] - The company's actual controller did not change during the reporting period[203] VI. Preferred Shares The company did not have any preferred shares during the reporting period - The company had no preferred shares during the reporting period[204] Section 7 Bond-related Matters Bond-related Matters The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[206] Section 8 Financial Report I. Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was unaudited[208] II. Financial Statements This section presents the company's consolidated and parent company financial statements, including balance sheets and income statements Consolidated Balance Sheet Summary | Item | Closing Balance (CNY) | Opening Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 3,563,769,348.74 | 3,955,680,687.88 | | Total Liabilities | 1,736,479,498.36 | 2,231,164,966.34 | | Total Equity Attributable to Parent Company | 1,793,505,905.01 | 1,710,917,349.25 | Consolidated Income Statement Summary | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 1,539,003,472.56 | 2,327,942,845.92 | | Net Profit | 22,558,905.86 | 14,152,396.33 | | Net Profit Attributable to Parent Company Owners | 9,239,935.86 | 9,235,475.37 | Consolidated Cash Flow Statement Summary | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 187,311,946.92 | 634,709,322.88 | | Net Cash Flow from Investing Activities | 175,134,786.09 | -3,267,073.50 | | Net Cash Flow from Financing Activities | -115,872,674.58 | -609,595,481.87 | III. Company's Basic Information The company, formerly Rongxin Power Electronic, is a software and information technology service provider listed on the Shenzhen Stock Exchange - The company was formerly known as Rongxin Power Electronic Co, Ltd and changed its name to Montnets Cloud Technology Group Co, Ltd on November 16, 2020[242][243] - The company's registered capital is CNY 805,398,690.00, with a total of 805,420,590.00 shares as of June 30[243] - The company and its subsidiaries operate in the software and information technology services industry, focusing on software/hardware development and network information services[243] - The scope of the consolidated financial statements for this period includes 9 subsidiaries (a total of 32 entities including sub-subsidiaries)[244] IV. Basis of Preparation for Financial Statements The financial statements are prepared on a going concern basis in accordance with Chinese Accounting Standards - The financial statements are prepared on a going concern basis and in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance[245] - The company uses the accrual basis of accounting and measures most items at historical cost, except for certain financial instruments[245] - There are no significant events or conditions that cast doubt on the company's ability to continue as a going concern for the next 12 months[246] V. Significant Accounting Policies and Estimates This section details the company's accounting policies for key areas like financial instrument impairment, depreciation, and revenue recognition - The financial statements comply with the requirements of the Enterprise Accounting Standards, fairly presenting the company's financial position as of June 30, 2025[249] - Financial assets are classified at initial recognition into three categories: amortized cost, fair value through other comprehensive income, and fair value through profit or loss[267] - The company recognizes loss allowances for expected credit losses on financial assets measured at amortized cost and certain debt instrument investments[281] - Revenue is recognized when the company satisfies a performance obligation by transferring control of a promised good or service to a customer[342] VI. Tax Items This section outlines the company's main taxes and applicable rates, including various tax incentives enjoyed by the company and its subsidiaries Main Taxes and Rates | Tax Type | Rate | | :--- | :--- | | Value-Added Tax (VAT) | 5%, 6%, 13% | | Urban Maintenance and Construction Tax | 7% | | Corporate Income Tax | 15%, 16.5%, 20%, 22%, 25%, 30% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | - Shenzhen Montnets Technology Development Co, Ltd enjoys a VAT refund policy for self-developed software products, where the tax burden exceeding 3% is refunded[374] - The subsidiary Shenzhen Montnets is subject to a 15% corporate income tax rate as a high-tech enterprise, and several other subsidiaries benefit from preferential tax policies for small and micro enterprises[375][376][377] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes on key items in the consolidated financial statements, including assets, liabilities, income, and expenses - At period-end, cash and cash equivalents totaled CNY 1.14 billion, including CNY 700.10 million in bank deposits and CNY 440.56 million in other monetary funds[379] - The carrying amount of accounts receivable at period-end was CNY 1.14 billion, with a bad debt provision of CNY 381.37 million[393] - Operating revenue for the period was CNY 1.54 billion, and operating costs were CNY 1.35 billion[523] - Net cash flow from operating activities was CNY 187.31 million, from investing activities was CNY 175.13 million, and from financing activities was -CNY 115.87 million[224][225] VIII. R&D Expenditures Total R&D expenditure for the period was CNY 45.25 million, all of which was expensed - Total R&D expenditure for the period was CNY 45.25 million, slightly down from CNY 45.28 million in the prior period[574] - All R&D expenditure for the period was expensed, with zero capitalized R&D expenditure[574] - R&D expenditure primarily consisted of employee compensation (CNY 33.56 million), R&D equipment rental fees (CNY 5.68 million), and depreciation and amortization (CNY 1.71 million)[574] IX. Changes in the Scope of Consolidation No business combinations under common or non-common control, or reverse acquisitions, occurred during the period - The company had no business combinations under non-common control during the reporting period[579] - The company had no business combinations under common control during the reporting period[583] - The company had no reverse acquisitions during the reporting period[586] X. Interests in Other Entities This section discloses the composition of the company's group, including its subsidiaries and associate enterprises - The company has several subsidiaries, including Shenzhen Montnets Technology Development Co, Ltd and Montnets International (Hong Kong) Limited[588] - Hami Rongxin New Energy Co, Ltd is an associate company in which the company holds a 20.00% stake, accounted for using the equity method[594] - Hami Rongxin New Energy Co, Ltd had total assets of CNY 925.22 million and a net profit of CNY 1.25 million for the period[597] XI. Government Grants The company recognized a total of CNY 0.48 million in government grants during the reporting period - The total amount of government grants recognized in current profit or loss was CNY 478,971.62[534] - Asset-related government grants amounted to CNY 1,788.84, related to a 5G exhibition hall project[534][511] - Income-related government grants amounted to CNY 477,182.78, including subsidies for employment expansion and technology innovation projects[534][602] XII. Risks Related to Financial Instruments This section discloses the company's exposure to credit, liquidity, and market risks arising from financial instruments - The company's financial instruments are exposed to various risks, including credit risk, liquidity risk, and market risk[603] - The company did not engage in hedging activities for risk management during the reporting period[605] XIII. Fair Value Disclosure This section discloses the fair value of assets and liabilities measured at fair value, primarily financial assets - The total amount of assets continuously measured at fair value was CNY 136.14 million[608] - The closing balance of trading financial assets was CNY 184,924.94, mainly equity investments valued at closing prices[608][609] - The closing balance of receivables financing was CNY 414,400.00, with fair value determined by face value[608][610] - The closing balance of other equity instrument investments was CNY 135.54 million, with fair value determined by valuation techniques[608][610] XIV. Related Parties and Related-Party Transactions This section details the company's related parties and discloses minor transactions with them during the period - The ultimate controlling party of the enterprise is Yu Wensheng, with a shareholding of 14.05%[610] - The company provided mobile information services to Shenzhen Montnets Intelligent Technology Development Co, Ltd, with a transaction amount of CNY 231,061.17[615] - During the reporting period, the company had no related-party guarantees, fund lending, asset transfers, or debt restructuring[621][623][624] - Compensation for key management personnel during the period amounted to CNY 3.65 million[626] XV. Share-based Payment This section provides an overview of the company's share-based payment plans, including options granted, exercised, and forfeited Overall Share-based Payment Situation | Grantee Category | Granted this Period | Grant Amount (CNY) | Exercised this Period | Exercise Amount (CNY) | Forfeited this Period | Forfeiture Amount (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Employees | 0 | 0 | 4,830,618 | 59,575,012.96 | 3,334,290 | 48,577,998.10 | - At period-end, 17,170,032 stock options were outstanding, with exercise prices ranging from CNY 11.29 to CNY 17.48 per share and remaining contract terms of 1 to 6 months[173] - At period-end, 5,911,400 shares under the employee stock ownership plan were outstanding, acquired at zero cost, with a remaining contract term of 7 months[173] - The company has disclosed the grant and exercise arrangements for its 2019, 2021, and 2022 stock option incentive plans, including performance conditions[173][174][175][176][177][178][179][180][181][182][183] XVI. Commitments and Contingencies The company had no significant commitments or contingencies to disclose at the end of the reporting period - There were no significant commitments as of the balance sheet date[186] - The company has no significant contingencies to disclose[186] XVII. Post-Balance Sheet Events After the reporting period, the company co-established a new subsidiary focused on intelligent computing technology - On August 4, 2025, Shenzhen Montnets Technology Development Co, Ltd co-established Beijing Montnets Cloud Intelligent Computing Technology Co, Ltd[671] - Shenzhen Montnets holds a 51% stake in the new company, which has a registered capital of CNY 10 million and will engage in IT consulting, software development, and data processing services[671] XVIII. Other Significant Matters This section confirms no prior period errors or debt restructurings and provides segment financial information - The company had no prior period accounting error corrections, debt restructurings, annuity plans, or discontinued operations[672][674][677][678] Segment Financial Information | Item | Energy-saving High-power Electronics (CNY) | Mobile Information Services (CNY) | Total (CNY) | | :--- | :--- | :--- | :--- | | Operating Revenue | 0 | 1,539,003,472.56 | 1,539,003,472.56 | | Operating Costs | 0 | 1,345,466,437.14 | 1,345,466,437.14 | | Total Assets | 502,638,713.32 | 3,061,130,635.42 | 3,563,769,348.74 | | Total Liabilities | 134,615,178.66 | 1,601,864,319.70 | 1,736,479,498.36 | XIX. Notes to Parent Company Financial Statement Items This section provides detailed notes on the parent company's key financial statement items, including receivables and long-term investments - The parent company's accounts receivable had a carrying amount of CNY 128.62 million at period-end[685] - The parent company's other receivables had a carrying amount of CNY 405.28 million at period-end[700][718] - The parent company's long-term equity investments had a carrying amount of CNY 3.67 billion at period-end, primarily investments in subsidiaries[726] - The parent company's operating revenue for the period was CNY 97.53 million, and operating costs were CNY 94.81 million[733] - The parent company's investment income for the period was CNY 115,610.56, mainly from dividend income[737] XX. Supplementary Information This section provides a detailed breakdown of non-recurring profit and loss items and calculates ROE and EPS Breakdown of Current Non-recurring Profit and Loss | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 17,002,907.91 | | Government Grants Recognized in Current Profit or Loss | 478,971.62 | | Gains/Losses from Fair Value Changes of Financial Assets/Liabilities Held by Non-financial Enterprises | 643,203.20 | | Reversal of Impairment Provision for Individually Tested Receivables | 2,053,939.66 | | Other Non-operating Income and Expenses | 9,786,284.93 | | Less: Income Tax Effect | 63,699.02 | | Less: Minority Interest Effect (After Tax) | 425.22 | | Total | 29,901,183.08 | Return on Equity (ROE) and Earnings Per Share (EPS) | Profit for the Period | Weighted Average ROE | Basic EPS (CNY/Share) | Diluted EPS (CNY/Share) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders | 0.52% | 0.01 | 0.01 | | Net Profit Attributable to Common Shareholders (Excluding Non-recurring Items) | -1.17% | -0.03 | -0.03 | - The company has no accounting data differences under domestic and foreign accounting standards[741] Section 9 Other Submitted Data I. Other Major Social Security Issues The company and its subsidiaries had no other major social security issues or administrative penalties - The listed company and its subsidiaries have no other major social security issues[743] - No administrative penalties were received during the reporting period[743] II. Record of Investor Relations Activities The company engaged with investors through online meetings to discuss its asset restructuring and annual performance - On January 19, 2025, the company held online meetings with institutions like Morgan Stanley Huaxin Fund and Fullgoal Fund to discuss its asset restructuring plan[743] - On May 15, 2025, the company hosted an online exchange with investors to discuss the 2024 annual report, business operations, and future development plans[744] III. Fund Transfers between the Company and its Controlling Shareholder and Other Affiliates No fund transfers occurred between the company and its controlling shareholder or other related parties - The company had no fund transfers with its controlling shareholder or other related parties[745]