四威科技(01202) - 2025 - 中期业绩

Summary The Group's total turnover for the first half of 2025 slightly decreased by 0.84% to RMB 142.73 million, while profit attributable to shareholders significantly dropped by 81.43% to RMB 0.42 million, with no interim dividend recommended Summary Financial Performance | Indicator | Current Period (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Turnover | 142,730,025.78 | 143,945,328.65 | -0.84 | | Sales of Copper Cable, Optical Cable, Optical Fiber & Related Products | 121,457,675.18 | - | -0.74 | | Optical Fiber Sales (Chengdu Zhongzhu) | 78,879,068.35 | - | +7.77 | | Profit Attributable to Company Shareholders | 420,906.88 | 2,264,382.85 | -81.43 | | Profit Attributable to Minority Shareholders | 590,116.63 | -1,784,416.22 | Turned loss into profit | - The Board recommends no interim dividend for the six months ended June 30, 2025[4] Financial Statements This section presents the unaudited consolidated financial statements for the six months ended June 30, 2025, including the consolidated balance sheet, income statement, cash flow statement, and statement of changes in equity, providing a comprehensive overview of the Group's financial position, operating results, and cash flows Consolidated Balance Sheet As of June 30, 2025, the Group's total assets were RMB 1,028.56 million, a 2.37% increase from the end of the previous year, with current assets accounting for 76.70% and total liabilities rising to 15.56% of total assets Consolidated Balance Sheet Highlights | Indicator | Period-end (RMB) | Prior Year-end (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,028,563,487.81 | 1,004,717,519.26 | +2.37 | | Total Current Assets | 788,912,072.25 | 762,450,955.52 | +3.47 | | Total Non-current Assets | 239,651,415.56 | 242,266,563.74 | -1.08 | | Total Liabilities | 160,021,947.74 | 137,858,801.05 | +16.08 | | Liabilities to Total Assets Ratio | 15.56% | 13.72% | +1.84pp | | Total Equity Attributable to Parent Company Owners | 779,315,128.23 | 778,336,316.29 | +0.13 | | Minority Interests | 89,226,411.84 | 88,522,401.92 | +0.80 | Consolidated Income Statement The Group's total operating revenue for the period was RMB 142.73 million, a slight decrease of 0.84% year-on-year, while net profit attributable to parent company owners significantly declined by 81.43% to RMB 0.42 million, and minority shareholder profit turned from loss to gain Consolidated Income Statement Highlights | Indicator | Current Period (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 142,730,025.78 | 143,945,328.65 | -0.84 | | Total Operating Cost | 142,661,447.04 | 145,903,814.15 | -2.22 | | Operating Profit | 425,888.37 | 475,365.22 | -10.41 | | Total Profit | 1,012,556.83 | 479,966.63 | +110.95 | | Net Profit | 1,011,023.51 | 479,966.63 | +110.64 | | Net Profit Attributable to Parent Company Owners | 420,906.88 | 2,264,382.85 | -81.43 | | Minority Shareholder Profit/Loss | 590,116.63 | -1,784,416.22 | Turned loss into profit | | Basic Earnings Per Share | 0.0011 | 0.0057 | -80.70 | Consolidated Cash Flow Statement Net cash flow from operating activities for the period significantly decreased by 95.94% to RMB 4.18 million, with net cash outflow from investing activities at RMB 3.49 million and from financing activities at RMB 4.07 million, resulting in a period-end cash and cash equivalents balance of RMB 431.80 million, down 8.67% year-on-year Consolidated Cash Flow Statement Highlights | Indicator | Current Period (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 4,178,674.72 | 103,007,492.33 | -95.94 | | Net Cash Flow from Investing Activities | -3,493,304.26 | -9,099,257.81 | Improved | | Net Cash Flow from Financing Activities | -4,074,284.00 | -270,513.96 | Increased outflow | | Net Increase in Cash and Cash Equivalents | -8,994,867.09 | 99,243,674.11 | Significant decrease | | Period-end Cash and Cash Equivalents Balance | 431,796,032.36 | 472,771,617.31 | -8.67 | Consolidated Statement of Changes in Equity The total equity attributable to parent company owners slightly increased to RMB 779.32 million from the end of the previous year, with minority interests also rising, reflecting the overall stability of the Group's equity Consolidated Statement of Changes in Equity Highlights | Indicator | Period-end (RMB) | Prior Year-end (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Parent Company Owners | 779,315,128.23 | 778,336,316.29 | +0.13 | | Minority Interests | 89,226,411.84 | 88,522,401.92 | +0.80 | | Total Equity | 868,541,540.07 | 866,858,718.21 | +0.19 | Notes to Financial Statements This section details key items in the Group's financial statements, including notes receivable, accounts receivable, financing for receivables, accounts payable, operating revenue and cost, taxes and surcharges, and financial expenses, providing insights into asset quality, operating efficiency, and cost structure Notes Receivable Period-end notes receivable totaled RMB 0.86 million, a significant decrease of 98.54% from the previous year-end, with the provision for bad debts rising to 10.29% due to increased provisions for commercial acceptance bills Notes Receivable Highlights | Indicator | Period-end (RMB) | Prior Year-end (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Notes Receivable | 859,682.56 | 58,717,569.49 | -98.54 | | Provision for Bad Debts | 98,567.28 | 284,208.76 | -65.25 | | Provision for Bad Debts Ratio | 10.29% | 0.48% | +9.81pp | Accounts Receivable Period-end accounts receivable balance was RMB 193.69 million, a 25.43% increase from the previous year-end, with total bad debt provision at RMB 35.17 million (18.16% of the total), and the top five accounts receivable accounting for 61.12% Accounts Receivable Highlights | Indicator | Period-end (RMB) | Prior Year-end (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Accounts Receivable Book Balance | 193,687,840.50 | 154,422,197.72 | +25.43 | | Total Provision for Bad Debts | 35,167,510.70 | 34,265,049.71 | +2.63 | | Provision for Bad Debts Ratio | 18.16% | 22.19% | -4.03pp | Top Five Accounts Receivable by Entity | Entity Name | Period-end Book Balance (RMB) | Share of Total Accounts Receivable (%) | Provision for Bad Debts (RMB) | | :--- | :--- | :--- | :--- | | Chengdu Siwei High-tech Industrial Park Co., Ltd. | 98,340,121.13 | 50.77 | 491,700.61 | | Zhongtian Technology Optical Fiber Co., Ltd. | 8,445,931.30 | 4.36 | 42,229.66 | | Zhuzhou CRRC Times Electric Co., Ltd. | 4,696,017.78 | 2.42 | 239,966.51 | | Maanshan Xindi Youwei Optical Fiber & Cable Co., Ltd. | 3,675,760.00 | 1.90 | 18,378.80 | | Chengdu Guoguang Electric Co., Ltd. | 3,243,312.00 | 1.67 | 202,724.96 | | Subtotal | 118,401,142.21 | 61.12 | 995,000.54 | Financing for Receivables Period-end financing for receivables totaled RMB 58.21 million, primarily bank acceptance bills, representing a 21.96% increase from the previous year-end, with RMB 8.39 million in endorsed or discounted but unexpired bank acceptance bills derecognized due to high creditworthiness of acceptors Financing for Receivables Highlights | Indicator | Period-end (RMB) | Prior Year-end (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Financing for Receivables | 58,207,632.93 | 47,730,010.46 | +21.96 | | Period-end Endorsed or Discounted Unexpired Bank Acceptance Bills | 8,391,552.16 | - | - | Accounts Payable Period-end accounts payable totaled RMB 77.31 million, a significant increase of 74.99% from the previous year-end, with major accounts payable over one year old, including Beijing Zhongpuda Technology Co., Ltd. and Deyang Xinfangyuan Nonferrous Metals Co., Ltd., remaining unsettled Accounts Payable Highlights | Indicator | Period-end (RMB) | Prior Year-end (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Accounts Payable | 77,307,915.81 | 44,177,929.28 | +74.99 | Significant Accounts Payable Over One Year Old | Entity Name | Period-end (RMB) | Reason for Unsettled Balance | | :--- | :--- | :--- | | Beijing Zhongpuda Technology Co., Ltd. | 1,407,100.00 | Unsettled | | Deyang Xinfangyuan Nonferrous Metals Co., Ltd. | 270,961.37 | Unsettled | | Subtotal | 1,678,061.37 | - | Operating Revenue and Operating Cost Total operating revenue for the period was RMB 142.73 million, with operating cost at RMB 114.64 million; main business revenue decreased by 2.47% year-on-year, while other business revenue increased by 8.54%, and optical fiber product revenue grew by 6.53% Operating Revenue and Cost Breakdown | Item | Current Period Revenue (RMB) | Current Period Cost (RMB) | Prior Period Revenue (RMB) | Prior Period Cost (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 119,700,667.17 | 106,727,752.71 | 122,727,160.01 | 108,571,653.72 | | Other Business | 23,029,358.61 | 7,916,722.37 | 21,218,168.64 | 7,012,779.20 | | Total | 142,730,025.78 | 114,644,475.08 | 143,945,328.65 | 115,584,432.92 | Revenue by Product/Service Type | Product/Service Type | Current Period (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Optical Fiber Products | 77,384,671.41 | 72,640,496.52 | +6.53 | | Railway Cables | 9,021,280.57 | 15,479,817.76 | -41.72 | | Optical Cable Components | 29,163,235.01 | 31,398,250.27 | -7.12 | Taxes and Surcharges Total taxes and surcharges for the period amounted to RMB 3.83 million, a slight decrease of 0.66% year-on-year, primarily comprising property tax, land use tax, stamp duty, urban maintenance and construction tax, and education surcharges Taxes and Surcharges Breakdown | Item | Current Period (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Property Tax | 2,426,981.05 | 2,352,043.96 | +3.19 | | Land Use Tax | 1,198,082.30 | 1,198,082.30 | 0.00 | | Stamp Duty | 94,691.06 | 86,858.95 | +9.02 | | Urban Maintenance and Construction Tax | 64,628.94 | 127,872.78 | -49.46 | | Education Surcharge | 27,698.14 | 54,802.63 | -49.45 | | Total | 3,834,143.40 | 3,859,764.57 | -0.66 | Financial Expenses Financial expenses for the period were negative RMB 3.64 million, primarily due to interest income of RMB 3.76 million, which increased by RMB 0.27 million year-on-year, effectively offsetting interest expenses and exchange losses Financial Expenses Breakdown | Item | Current Period (RMB) | Prior Period (RMB) | YoY Change (RMB) | | :--- | :--- | :--- | :--- | | Interest Expense | 22,068.83 | 34,368.28 | -12,299.45 | | Interest Income | 3,761,203.06 | 3,493,378.70 | +267,824.36 | | Exchange Gains/Losses | 79,431.65 | -100,275.25 | Turned loss into profit | | Bank Charges | 20,013.40 | 12,210.61 | +7,802.79 | | Total | -3,639,689.18 | -3,547,075.06 | -92,614.12 | Interests in Other Entities This section discloses the Group's main subsidiaries and associates, including their composition and key financial information, highlighting Chengdu Zhongzhu Optical Fiber Co., Ltd. as a significant non-wholly owned subsidiary with improved assets, liabilities, net profit, and comprehensive income Composition of the Enterprise Group The Group's main subsidiaries include Chengdu Zhongzhu Optical Fiber Co., Ltd. (60% stake) and Chengdu Putian New Material Co., Ltd. (100% stake), both engaged in manufacturing and acquired through business combinations not under common control Key Subsidiaries | Subsidiary Name | Registered Capital | Nature of Business | Shareholding (%) | | :--- | :--- | :--- | :--- | | Chengdu Zhongzhu Optical Fiber Co., Ltd. | US$17 million | Manufacturing | 60.00 | | Chengdu Putian New Material Co., Ltd. | RMB 59.82 million | Manufacturing | 100.00 | - The company includes Chengdu Zhongzhu Optical Fiber Co., Ltd. and 2 other subsidiaries in its consolidated financial statements[49] Significant Non-Wholly Owned Subsidiaries Chengdu Zhongzhu Optical Fiber Co., Ltd. is a significant non-wholly owned subsidiary with a 40% minority interest, reporting RMB 0.59 million in profit attributable to minority shareholders for the period and a period-end minority interest balance of RMB 89.23 million, with significant improvements in operating revenue, net profit, and operating cash flow Chengdu Zhongzhu Optical Fiber Co., Ltd. - Minority Interests | Subsidiary Name | Minority Shareholding (%) | Current Period Profit Attributable to Minority Shareholders (RMB) | Period-end Minority Interests Balance (RMB) | | :--- | :--- | :--- | :--- | | Chengdu Zhongzhu Optical Fiber Co., Ltd. | 40.00 | 590,116.63 | 89,226,411.84 | Chengdu Zhongzhu Optical Fiber Co., Ltd. - Financial Performance | Indicator | Current Period (RMB) | Prior Period (RMB) | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 79,143,826.67 | 73,188,849.36 | Growth | | Net Profit | 1,475,291.57 | -4,461,040.56 | Turned loss into profit | | Total Comprehensive Income | 1,475,291.57 | -4,461,040.56 | Turned loss into profit | | Operating Cash Flow | 8,893,851.94 | 29,145,939.65 | Decrease | Significant Associates Putian Farsun Optical Communication Co., Ltd. is a significant associate with a 10.00% stake, accounted for using the equity method, reporting operating revenue of RMB 92.45 million for the period and a net loss of RMB 1.85 million, a significant reduction in loss from the prior period Putian Farsun Optical Communication Co., Ltd. - Overview | Associate Name | Nature of Business | Shareholding (%) | Accounting Method | | :--- | :--- | :--- | :--- | | Putian Farsun Optical Communication Co., Ltd. | Manufacturing | 10.00 | Equity method | Putian Farsun Optical Communication Co., Ltd. - Financial Performance | Indicator | Current Period (RMB) | Prior Period (RMB) | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 92,449,174.18 | 69,348,778.47 | Growth | | Net Profit | -1,852,040.88 | -11,711,330.66 | Loss narrowed | | Total Comprehensive Income | -1,852,040.88 | -11,711,330.66 | Loss narrowed | Other Significant Matters and Supplementary Information This section covers the Group's segment information, leases, non-recurring gains and losses, and detailed calculations of return on net assets and earnings per share, indicating that non-recurring gains and losses had a negative impact on net profit attributable to parent company shareholders, and both EPS and ROE declined Segment Information The Group identifies reporting segments based on copper cable, cable assembly related products, optical communication products, and park operations businesses, with optical communication products contributing the highest operating revenue and copper cable, cable assembly related products having the highest total assets - The company determines reporting segments based on internal organizational structure, management requirements, and internal reporting systems, evaluating performance for copper cable, cable assembly related products, optical communication products, and park operations businesses[55] Segment Financial Data | Business Segment | Operating Revenue (RMB) | Operating Cost (RMB) | Total Assets (RMB) | Total Liabilities (RMB) | | :--- | :--- | :--- | :--- | :--- | | Copper Cable, Cable Assembly Related Products | 60,082,664.63 | 42,990,462.43 | 804,617,788.43 | 101,007,893.90 | | Optical Communication Products | 79,143,826.67 | 70,519,424.19 | 250,058,908.40 | 26,980,368.42 | | Park Operations | 4,855,502.12 | 2,065,252.12 | 88,274,676.47 | 42,662,250.29 | | Total | 142,730,025.78 | 114,644,475.08 | 1,028,563,487.81 | 160,021,947.74 | Leases The company's lease income as a lessor for the period was RMB 14.42 million, a slight decrease of 2.05% from the prior period Lease Income | Item | Current Period (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Lease Income | 14,424,234.66 | 14,726,388.94 | -2.05 | Non-Recurring Gains and Losses Net non-recurring gains and losses for the period amounted to RMB 1.97 million, primarily from government subsidies and other non-operating income, with net non-recurring gains and losses attributable to parent company owners being RMB 1.90 million after tax and minority interest impacts Non-Recurring Gains and Losses Breakdown | Item | Amount (RMB) | | :--- | :--- | | Government Subsidies Included in Current Profit/Loss | 1,396,789.60 | | Debt Restructuring Gains/Losses | -11,613.00 | | Other Non-operating Income and Expenses | 586,668.46 | | Subtotal | 1,971,845.06 | | Less: Income Tax Impact | - | | Less: Minority Interests Impact | 69,310.55 | | Net Non-Recurring Gains and Losses Attributable to Parent Company Owners | 1,902,534.51 | Return on Net Assets and Earnings Per Share The weighted average return on net assets attributable to ordinary shareholders for the period was 0.05%, with basic earnings per share at RMB 0.0011/share; after deducting non-recurring gains and losses, these figures were -0.19% and -RMB 0.0037/share, respectively, indicating a significant positive impact of non-recurring gains and losses on profitability Return on Net Assets and Earnings Per Share | Indicator | Return on Net Assets (%) | Basic EPS (RMB/share) | Diluted EPS (RMB/share) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Ordinary Shareholders | 0.05 | 0.0011 | 0.0011 | | Net Profit Attributable to Ordinary Shareholders After Deducting Non-Recurring Gains and Losses | -0.19 | -0.0037 | -0.0037 | - The calculation process for diluted earnings per share is the same as for basic earnings per share[62] Management Discussion and Analysis Management discusses the Group's operating performance, key business progress, internal management, and financial position for the first half of 2025, noting a slight decrease in turnover but growth in optical fiber sales, active strategic adjustments, and increased total assets and liabilities despite a significant drop in operating cash flow Performance Analysis The Group's total turnover for the period was RMB 142.73 million, a 0.84% decrease year-on-year, with cable business revenue down 27.1% and cable assembly business revenue down 6.41% due to market decline and delayed tenders, while optical fiber sales by Chengdu Zhongzhu increased by 7.77% Revenue by Business Type | Business Type | Operating Revenue (RMB) | YoY Change (%) | | :--- | :--- | :--- | | Group Total Turnover | 142,730,025.78 | -0.84 | | Cable Business | 13,521,422.71 | -27.1 | | Cable Assembly Business | 29,516,295.21 | -6.41 | | Optical Fiber Sales (Chengdu Zhongzhu) | 78,879,068.35 | +7.77 | - The primary reason for the decrease in main business revenue is the market downturn in the cable business and delayed tenders from major customers[64] Key Business Review The Group actively adjusted its production and operation strategies to adapt to market changes, focusing on new product development, digital transformation, business expansion, and cost reduction across its cable, cable assembly, optoelectronic, and optical fiber businesses Cable Business Facing a significant decline in railway transportation market demand, the company actively developed new products such as silicone rubber cables, photovoltaic cables, and air conditioning wires, and advanced sample verification for fluoroplastic cables and tether cables to enter the market - Accelerated new product development, adding new products such as silicone rubber cables, photovoltaic cables, and air conditioning wires, which have entered the bidding and quotation stage[65] - Continuously tracked customer demand, with samples of fluoroplastic cables and tether cables provided to customers for verification, awaiting market sales and production delivery stages[65] Cable Assembly Business Through digital workshop construction and management improvements, the cable assembly business achieved a 32% year-on-year increase in man-hour output and sales exceeding RMB 60 million, securing market orders for micro-fine cable assemblies, 67GHz semi-rigid cable assemblies, and chassis assembly, while also developing phase-stable and polarization-maintaining optical cable assemblies - Through digital workshop construction and management improvements, the cable assembly business's man-hour output increased by 32% year-on-year compared to 2024, with sales exceeding RMB 60 million[66] - Multiple assembly businesses achieved breakthroughs, with the micro-fine cable assembly R&D project results, 67GHz semi-rigid cable assemblies, and chassis assembly businesses all securing market orders[66] Optoelectronic Business The optoelectronic business, driven by market demand, actively promoted delay rings, hydrophone rings, and polarization-maintaining rings, establishing long-term partnerships with multiple military research institutes and enterprises for mass production, and successfully incubating and selling new products like wavelength division multiplexers and optical modules - Actively promoted delay rings, hydrophone rings, and polarization-maintaining rings, establishing long-term partnerships with multiple military research institutes and enterprises for mass production[67] - New products such as wavelength division multiplexers and optical modules have completed incubation and achieved order sales in the market[67] Optical Fiber Business Facing structural overcapacity and low prices in the optical fiber market, the company maintained a market-oriented approach, accelerated new optical fiber R&D, increased the sales proportion of small-diameter and high-margin optical fibers, and continuously reduced costs and enhanced efficiency through production process innovation and refined management - Adhered to market demand, accelerating new optical fiber R&D to enhance product competitiveness and improve the product matrix[68] - Focused on niche markets, increasing the sales proportion of small-diameter and high-margin optical fibers to expand revenue and optimize profit structure[68] - Continuously promoted cost reduction and efficiency improvement, driven by production process innovation and refined management, to continuously enhance production efficiency and reduce overall costs[68] Internal Management Initiatives The Group undertook various initiatives in Party, labor union, and youth league building, human resources, finance, asset, supply chain, quality, information technology, safety management, and risk control, including deepening Party building integration, strengthening talent development, enhancing cost control, optimizing asset allocation, improving supply chain resilience, refining quality management, upgrading ERP systems, implementing safety production responsibilities, and strengthening risk screening and internal control Party, Labor Union, and Youth League Building The company's Party Committee deepened the integration of Party building with core work, conducting learning education, democratic life meetings, and integrity education to ensure the implementation of ideological responsibility, while the labor union strengthened information disclosure, organized cultural and sports activities, and provided care to enhance employee well-being and promote democratic management - Promoted deep integration of Party building with core work, diligently carrying out learning education and organizing democratic life meetings for the leadership team and comprehensive strict Party governance work meetings[69] - Strengthened information disclosure, publishing hot issues of concern to employees through WeChat official accounts and factory affairs public bulletin boards, guiding employees to participate in democratic management and supervision[70] Human Resources Management The company advanced talent pipeline construction, conducted talent inventory and identification, established a core backbone talent pool, strengthened sales and R&D capabilities, adjusted cadre teams, and focused on employee professional knowledge training and position level adjustments - Promoted talent pipeline construction, conducting talent inventory and identification to establish core and backbone talent pools for various categories within the company, ensuring talent reserves[71] - Strengthened sales and R&D capabilities, selecting and adjusting corresponding cadre team configurations, with a focus on enhancing employee professional knowledge training[71] Financial Management The company strengthened fundamental financial management, formulated cost planning schemes, provided cost control suggestions by delving into business operations, conducted cost data analysis, completed business budget decomposition, tracking, and fluctuation warnings, and advanced the construction of an integrated cost system - Formulated cost planning schemes, delving into business operations to provide reasonable cost control suggestions, and conducting cost data analysis and disclosure[72] - Enhanced integrated and penetrative cost control methods, accelerated the construction of an integrated cost system, and completed the initial information data cleanup[72] Asset Management The company carried out annual fixed asset investment work, prioritizing support for optoelectronic device capability building, cable assembly digital capability enhancement, and cable production capacity supplementation, while also conducting disposal of fixed assets without use value to reduce management costs and risks - Conducted annual fixed asset investment work based on prioritizing support for optoelectronic device capability building, enhancing the digital capabilities of assemblies, and appropriately supplementing cable production capacity[73] - Carried out asset write-off and disposal work for fixed assets without use value, effectively reducing the company's asset management costs and risks[73] Supply Chain Management The company strengthened supply chain management to enhance resilience in responding to market changes, collaborated on penetrative task management, promoted refined warehouse management and batch management, strengthened project plan management, formulated and monitored the execution of annual R&D project plans, and improved the accuracy of plan execution - Strengthened supply chain management to enhance resilience in responding to market changes, coordinating penetrative task management according to business development plans[74] - Promoted refined warehouse management, strengthened batch management principles, implemented material card management, and reinforced project plan management by formulating annual R&D project plans[74] Quality Management The company continuously improved its quality management system, revised the "QEOHS Management Manual" and procedural documents, strengthened management system operation inspections, enhanced qualification management, and obtained energy management system and dual-carbon certifications for the first time, resulting in a 48.23% year-on-year reduction in low-level quality issues for cable assembly products and nearly 20% improvement in inspection efficiency through special rectification - Continuously improved the quality management system, completing the revision and review of the "QEOHS Management Manual" and procedural documents, and management methods[75] - Obtained energy management system and dual-carbon certification for the first time, clarifying energy benchmarks, greenhouse gas emissions, and product carbon footprint baselines[75] - Low-level quality issues for cable assembly products decreased by 48.23% year-on-year, with inspection capacity reaching over 600,000 man-hours/year and inspection efficiency improving by nearly 20%[75] Information Technology Development The company initiated ERP system re-upgrade work to strengthen the financial management system with the goal of business-finance integration, streamlined internal R&D processes to blueprint the R&D management information system, and established an operational dashboard to provide visual support for business decisions - Initiated ERP system re-upgrade work, aiming for business-finance integration to strengthen the company's financial management system[76] - Established an operational dashboard to display key operational data, providing visual support for the company's business decisions[76] Safety Management The company strengthened safety production management objectives and indicators control, launched the "Foundation Strengthening Year" implementation plan, revised safety management system regulations and operating procedures, reinforced "penetrative" management to implement safety production responsibilities, and reported no safety, environmental, fire, or security incidents during the period - Strengthened safety production management objectives and indicators control, launching the "Foundation Strengthening Year" phase implementation plan[77] - The Group experienced no safety, environmental, fire, or security incidents, with the company's overall safety production situation remaining under control[77] Risk Control The company strengthened risk management and control, conducted full-level risk screening, identified 10 key enterprise risks for 2025, and tracked and warned through 38 monitoring thresholds, while continuously enhancing internal control management and completing the rectification of 8 internal control deficiencies identified in the 2024 self-assessment - Conducted full-level risk screening, identifying 10 key enterprise risks for 2025 and tracking and warning through 38 monitoring thresholds[78] - Continuously enhanced internal control management and supervision, completing the rectification of 8 internal control deficiencies identified in the 2024 internal control self-assessment[78] Financial Analysis The Group's total assets increased by 2.37% for the period, with current assets accounting for 76.70%; net cash flow from operating activities significantly decreased by 95.94%, and bank balances and cash decreased by 2.04%; total liabilities increased by 16.08%, raising the liabilities to total assets ratio by 1.84 percentage points; sales expenses increased by 27.25%, while administrative and R&D expenses decreased, and financial expenses improved due to increased interest income, with the average gross profit margin slightly down by 0.02 percentage points Key Financial Indicators | Indicator | Current Period (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,028,563,487.81 | 1,004,717,519.26 | +2.37 | | Net Cash Flow from Operating Activities | 4,178,674.72 | 103,007,492.33 | -95.94 | | Bank Balances and Cash | 431,796,032.36 | 440,790,899.45 | -2.04 | | Total Liabilities | 160,021,947.74 | 137,858,801.05 | +16.08 | | Liabilities to Total Assets Ratio | 15.56% | 13.72% | +1.84pp | | Selling Expenses | 3,319,061.96 | 2,608,259.24 | +27.25 | | Administrative Expenses | 18,106,519.45 | 20,601,215.58 | -12.11 | | R&D Expenses | 6,396,936.33 | 6,797,216.90 | -5.89 | | Financial Expenses | -3,639,689.18 | -3,547,075.06 | Interest income increased by RMB 267,824.36 | | Average Gross Profit Margin | 19.68% | 19.70% | -0.02pp | Liquidity Analysis As of June 30, 2025, the Group's current ratio was approximately 7.29 and quick ratio was approximately 6.02, demonstrating strong short-term solvency Liquidity Ratios | Indicator | Value | | :--- | :--- | | Current Ratio | 7.29 | | Quick Ratio | 6.02 | Financial Resources Analysis As of June 30, 2025, the Group had no long-term borrowings and bank deposits and cash amounted to RMB 431.80 million, indicating a low short-term debt risk - The Group has no long-term borrowings, and bank deposits and cash amounted to RMB 431,796,032.36, indicating a low short-term debt risk[84] Group Capital Structure The Group's funding sources include bank loans and proceeds from share issuance, managed under strict financial management policies, with no improper conduct such as overdue debts or unfulfilled obligations during the period, and the Group will enhance fund allocation and management to maximize fund utilization - The Group's funding sources are bank loans and proceeds from the company's share issuance[85] - During the period, there were no improper acts such as overdue debt repayment or unfulfilled obligations[85] Contingent Liabilities As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities (December 31, 2024: Nil)[86] Business Outlook Looking ahead to the second half of 2025, the company will focus on industrial development, continuous cost reduction and efficiency improvement, and internal control optimization to achieve annual operating targets, including strengthening market expansion, new product R&D, digital workshop construction, high-value-added market penetration, and overall enhancement of internal management Operating Environment and Measures Taken The company will strengthen market expansion and new product R&D for its cable business, accelerate the implementation of digital workshops and expand product lines for cable assembly, enhance market promotion and production capacity for optoelectronic business, and focus on niche areas, new product R&D, and overseas market expansion for optical fiber business Cable Business In the second half, the cable business will strengthen market expansion, identify new orders and customers, accelerate new product R&D, optimize production processes, reduce production costs, and enhance core product competitiveness - Strengthened market development efforts, identifying new orders from existing customers and actively developing new customers, participating in bidding and quotations on major platforms[88] - Accelerated new product R&D progress, optimized production processes, reduced production costs, enhanced core product competitiveness, and aimed to secure market orders as soon as possible[88] Cable Assembly Business The cable assembly business will accelerate the implementation of digital workshops and plan for a second phase, optimizing production processes through automation equipment to reduce manufacturing costs, while expanding harness business through chassis business, developing new products and customers to gain market competitive advantages - Accelerated the implementation of digital workshops and promoted the planning of a second phase, ensuring simultaneous improvement in business capacity and quality, continuously optimizing production processes, and reducing manufacturing costs[89] - Expanded internal harness business through chassis business, developed new products to expand product lines, and developed new customers while tapping the potential of existing customers[89] Optoelectronic Business The optoelectronic business will strengthen market expansion, promote mature products such as optical fiber rings and wavelength division multiplexers, increase production capacity, and focus on accelerating R&D for products like optical modules to gain market share - Strengthened market development efforts, promoting mature products such as optical fiber rings and wavelength division multiplexers, and increasing related production capacity construction[90] - Focused on accelerating R&D for products like optical modules, conducting product trials and testing, and submitting them to users for trial as quickly as possible to compete for market share[90] Optical Fiber Business Facing structural overcapacity in the optical fiber market, the optical fiber business will focus on niche areas, deeply cultivate high-value-added markets, continuously advance new product R&D, ensure production management and equipment maintenance, and actively explore overseas markets - Focused on niche areas, avoiding fierce competition, and continuously cultivating high-value-added optical fiber markets[91] - Continuously advanced new product R&D, explored new optical fiber markets, and actively expanded into overseas markets[91] Management Enhancement The company will comprehensively enhance the Group's operational and management levels by strengthening Party, labor union, and youth league building, optimizing human resource management, deepening financial cost control, improving asset management efficiency, perfecting supply chain assurance, reinforcing quality management systems, advancing information technology development, implementing safety production responsibilities, and deepening risk control Party, Labor Union, and Youth League Building Continuously deepened the integration of Party building with business, optimized grassroots Party building mechanisms, and implemented "one post, dual responsibilities"; strengthened labor union construction, organized condolences, innovative activities, and skill competitions to enhance employee comprehensive quality and welfare - Persistently used Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era to inspire and educate, effectively organizing ideological and theoretical learning for all employees at different levels[92] - Continuously strengthened labor union construction, actively mobilizing and organizing applications for Chengdu Craftsman and innovation studios, and regularly carrying out various condolence activities to improve employee welfare and well-being[92] Human Resources Management Guided by "attracting talent, strengthening training, and serving well," the company will develop annual recruitment plans, strengthen talent pipeline construction and core backbone cultivation, optimize remuneration and welfare schemes, and enhance the application of performance appraisals to stimulate employee enthusiasm - Diligently carried out human resources management services guided by "attracting talent, strengthening training, and serving well," developing the company's annual recruitment plan and completing various personnel recruitment tasks[92] - Increased efforts in cultivating middle-level cadres and core backbones, further optimizing and adjusting the configuration of middle-level management personnel, and enhancing sales and market capabilities[92] Financial Management Strengthened internal management, continuously advanced the construction of an "integrated penetrative" cost management system to achieve business-finance data convergence, followed up on strict cost control, monitored expense execution, effectively controlled expense amounts, and continued to promote "two funds" reduction to improve asset quality - Continuously advanced the construction of an "integrated penetrative" cost management system, achieving the convergence of sales, procurement, production, and cost full-process business and financial data[93] - Followed up on strict cost control, monitored expense execution, effectively controlled expense amounts, and continued to promote the reduction of "two funds" (accounts receivable and inventory) to improve asset quality[93] Asset Management Systematically advanced the inventory and management enhancement of "3 major categories and 7 sub-categories" of physical assets, achieving "clear responsibilities, consistent accounts and physicals, and controlled recovery" in physical asset management; strengthened fixed asset management, strictly implemented investment plans as scheduled, and carried out annual inventory and application for asset write-off plans - Systematically advanced the inventory and management enhancement of "3 major categories and 7 sub-categories" of physical assets, achieving "clear responsibilities, consistent accounts and physicals, and controlled recovery" in physical asset management[94] - Strengthened fixed asset management, strictly implemented fixed asset investment plans as scheduled, and carried out annual fixed asset inventory and application for asset write-off plans[94] Supply Chain Management Continuously improved the supply chain management system to enhance integrated supply chain assurance capabilities, strengthened planning rigidity around core business output to fully ensure the completion of scientific research and production tasks, and enhanced comprehensive supply chain coordination, monitoring, and support to ensure smooth order delivery - Continuously improved the supply chain management system to enhance integrated supply chain assurance capabilities[95] - Focused on core business output, strengthened planning rigidity, and fully ensured the completion of scientific research and production tasks[95] Quality Management Based on the annual quality work plan, promoted the implementation of optical communication product quality improvement plans and special rectification of low-level quality issues, enhancing execution driven by problems, development, and results to support and ensure industrial and scientific research work - Based on the annual quality work plan, promoted the implementation of optical communication product quality improvement plans, special rectification of low-level quality issues, quality issue tracking and resolution, and quality issue review and summary activities[96] Information Technology Development Further enhanced enterprise informatization, completed the core functional upgrade of the ERP system to achieve preliminary business-finance integration, promoted the launch of the R&D management information system to boost R&D system capabilities, and improved the operational dashboard functions to enable automatic data capture and dynamic updates - Completed the core functional upgrade of the ERP system to achieve preliminary business-finance integration, and promoted the launch of the R&D management information system to boost the company's R&D system capabilities[97] - Improved the operational dashboard functions to enable automatic data capture and dynamic updates[97] Safety Management Continuously advanced the three-level standardization construction of safety production, completed the "Foundation Strengthening Year" objectives, established "one post, one checklist" and implemented "penetrative" management to reinforce safety production responsibilities at all levels, strengthened basic management and safety training, enhanced supervision and inspection, and ensured closed-loop management of dynamic hidden hazard databases - Continuously advanced the three-level standardization construction of safety production, completing the "Foundation Strengthening Year" objectives of the three-year action plan for safety production fundamental improvement[98] - Established "one post, one checklist" and implemented "penetrative" management to reinforce safety production responsibilities at all levels, strengthened basic management, and improved safety management system regulations and safety operating procedures[98] Risk Control Deepened the construction of a comprehensive supervision and risk control system, promoted coordinated supervision across various types, improved information, resources, capabilities, and means sharing mechanisms, strengthened risk policy dissemination, and cultivated cadres and employees' risk prevention and compliance awareness to ensure early prevention, detection, and disposal of major risks - Deepened the requirements for comprehensive supervision and risk control, promoting coordinated supervision across various types, and improving mechanisms for sharing information, resources, capabilities, and means to enhance supervision effectiveness and control capabilities[99] - Strengthened risk policy dissemination, cultivating cadres and employees' awareness of risk prevention and compliance, and management capabilities to ensure early prevention, early detection, and early disposal of major risks[99] Other Important Information This section provides detailed information on the Group's overdue time deposits, income tax incentives, asset pledges, employee and remuneration plans, and risk management, noting no overdue time deposits or asset pledges, slight changes in employee numbers and remuneration, and identified strategies for managing "two funds," quality, market, technology, and human resources risks Overdue Time Deposits As of June 30, 2025, the Group had no overdue time deposits or other time deposits that could not be recovered upon maturity - As of June 30, 2025, the Group had no other deposits placed with non-bank financial institutions or entrusted deposits, nor any other time deposits that could not be recovered upon maturity[100] Income Tax Subsidiary Chengdu Zhongzhu Optical Fiber Co., Ltd. obtained a High-tech Enterprise Certificate in 2023, valid until 2025, entitling it to a preferential corporate income tax rate of 15% - Subsidiary Chengdu Zhongzhu Optical Fiber Co., Ltd. obtained a High-tech Enterprise Certificate on October 16, 2023, valid for three years from 2023 to 2025, enjoying a preferential corporate income tax rate of 15%[101] Asset Pledges As of June 30, 2025, the Group had not pledged any assets for bank loans - As of June 30, 2025, the Group had not pledged any assets for bank loans (December 31, 2024: Nil)[102] Group Employees and Remuneration Plan As of June 30, 2025, the Group's employee count increased to 463 from 436 at the previous year-end, with employee remuneration for the period at RMB 29.17 million, slightly lower than the prior period, and the Group determines remuneration based on performance, experience, and industry practice, offering retirement, medical, and housing provident fund benefits, as well as technical training opportunities Employee Statistics and Remuneration | Indicator | 2025年6月30日 | 2024年12月31日 | Change | | :--- | :--- | :--- | :--- | | Number of Employees | 463人 | 436人 | +27人 | | Employee Remuneration (Current Period) | 29,169,959.48元 | 30,607,471.88元 (Prior Period) | -4.69% | - Other benefits provided to employees include retirement benefit plans, medical benefit plans, and housing provident fund plans, and the Group also provides technical training opportunities to employees[103] Risk Management The Group adheres to the philosophy that risk management serves its strategy, strengthening risk classification and daily management to balance risk and return, minimizing impact on operating performance, and has identified and formulated strategies for "two funds" management, quality, market, technology, and human resources risks - The Group adheres to the philosophy that risk management must be subordinate to and serve the Group's strategy, strengthening risk classification and daily management to make risk management a routine practice[104] - The objective of risk management is to achieve a balance between risk and return, minimizing the impact of risks on the Group's operating performance and maximizing the interests of shareholders and other equity investors[104] "Two Funds" Management Risk The Group faces the risk of high proportions of accounts receivable and inventory in current assets and will manage this through clearing long-aged accounts receivable, legal collection, regular reconciliation, reasonable safety stock settings, and liquidating long-aged inventory - The "two funds" management risk faced by the Group refers to the risk of accounts receivable and inventory accounting for an excessively high proportion of current assets[105] - Will continue to clear long-aged accounts receivable; collect accounts receivable through various means, resorting to legal action if necessary; reasonably set safety stock levels, closely monitor actual inventory quantities and production plans to avoid excessive inventory; and continuously promote the liquidation of long-aged inventory[105] Quality Risk The Group faces risks of non-conforming products being delivered without risk assessment or user permission, severe quality issues, and major quality incidents, which will be managed by strengthening training, clarifying quality control requirements, strict process execution, timely reporting and disposal of quality issues, experience summation, and quality responsibility accountability and incentives - The quality risks faced by the Group include the risk of non-conforming products being delivered without risk assessment and corresponding disposal or user permission; the risk of severe product quality issues leading to zero tolerance; and the risk of major quality incidents[106] - Will strengthen job-specific business knowledge and operational skills training to improve employee professional quality and capabilities; clarify quality control requirements for the entire product realization process and product quality issue disposal requirements in policies; and strictly pursue quality responsibilities and dishonest behaviors in accordance with the "Quality Responsibility Accountability and Incentive Management Measures"[106] Market Risk The Group faces market risks such as low market share, low on-time payment rates for customer accounts payable, and collection risks from delayed customer payments, which will be addressed by maintaining close ties with existing customers, developing new products, acquiring new customers, and strengthening market development to increase market share - The market risks faced by the Group refer to the risks of low product market share leading to weak bargaining power, low on-time payment rates for customer accounts payable affecting fund recovery, and collection risks arising from delayed customer payments[107] - Will actively and effectively maintain close ties with existing customers to secure orders for old products as much as possible, follow customer trends to develop new products for existing customers, develop new customers based on existing products, and strengthen market development to continuously increase market share[107] Technology Risk The Group faces the risk of outdated product technology or inability to meet customer needs, which will be mitigated by strengthening demand research, timely responding to customer needs, executing and managing R&D projects according to plans, confirming key new product R&D plans, and increasing self-funded investment to enhance technical capabilities - The technology risks faced by the Group refer to the risk of outdated product technology or inability to meet customer needs[108] - Will strengthen demand research, timely respond to customer needs, execute and manage R&D projects according to R&D project plans; confirm key new product R&D plans annually based on business planning, increasing new product categories; and increase self-funded investment to steadily boost R&D expenditure[108] Human Resources Risk The Group faces human resources risks including a portion of idle personnel and a weak R&D technical team, which will be addressed by controlling the increase in idle personnel, timely processing retirements, promoting re-employment, and formulating annual recruitment plans to fill personnel gaps - The human resources risks faced by the Group refer to the company having a portion of idle personnel, while the R&D technical team is weak, and R&D technical capabilities lag behind market expectations to some extent[109] - Will control the increase in idle personnel, timely process retirements for eligible idle personnel, actively promote re-employment for qualified individuals; and formulate annual recruitment plans to supplement missing personnel through campus recruitment and social recruitment channels[109] Shareholders and Corporate Governance This section details the Group's shareholding, equity structure changes, directors' and supervisors' shareholdings, public float, listed securities transactions, convertible securities, interim dividend policy, Audit Committee composition and responsibilities, compliance with corporate governance code, and post-reporting period events, confirming stable share capital, concentrated major shareholdings, no interim dividend recommendation, and compliance with governance codes Shareholding and Changes in Equity Structure During the period, the company did not arrange any bonus issues, rights issues, capital increases, or new share offerings, maintaining a stable total share capital and equity structure of RMB 400 million, with domestic state-owned legal person shares accounting for 60% and H-shares for 40%, and major shareholders including Chengdu Siwei High-tech Industrial Park Co., Ltd. (34%) and Chengdu Siwei Electronics Co., Ltd. (26%) - The company did not arrange any bonus issues, rights issues, or capital increases, nor did it issue any new shares during the period, with no changes in the company's total share capital and equity structure[110] Shareholding Structure | Shareholder Type | Number of Shares | Percentage of Issued Share Capital (%) | | :--- | :--- | :--- | | Domestic State-owned Legal Person Shares | 240,000,000 | 60 | | Overseas Issued Shares (H-shares) | 160,000,000 | 40 | | Total | 400,000,000 | 100 | Major Shareholders | Major Shareholder | Number of Shares Held | Percentage of Issued Share Capital (%) | | :--- | :--- | :--- | | Chengdu Siwei High-tech Industrial Park Co., Ltd. | 136,000,000 | 34 | | Chengdu Siwei Electronics Co., Ltd. | 104,000,000 | 26 | | HKSCC Nominees Limited (H-shares) | 158,176,999 | 39.54 | Shareholdings of Directors and Supervisors As of June 30, 2025, none of the company's directors, supervisors, or chief executive had any disclosable interests or short positions in the shares, underlying shares, and debentures of the company or its associated corporations - As of June 30, 2025, none of the company's directors, supervisors, or chief executive had any interests or short positions in the shares, underlying shares, and debentures of the company or its associated corporations that are required to be recorded in the register under Section 352 of the Securities and Futures Ordinance[115] Sufficient Public Float Based on publicly available information and the best knowledge of the Board, the company confirms that its public float was sufficient during the period and up to the date of this announcement - Based on publicly available information and to the best knowledge of the directors, the company confirms that its public float was sufficient during the period and up to the date of this announcement[116] Purchase, Sale or Redemption of the Company's Listed Securities During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[118] Convertible Securities, Share Options, Warrants or Related Rights During the period, the company did not issue any convertible securities, share options, warrants, or related rights - The company did not issue any convertible securities, share options, warrants, or related rights during the period[119] Interim Dividend The Board recommends no interim dividend for the six months ended June 30, 2025 - The Board recommends no interim dividend for the six months ended June 30, 2025 (no interim dividend was declared for the six months ended June 30, 2024)[120] Audit Committee The company's Audit Committee comprises Ms. Fu Wenjie (Chairperson), Mr. Kang Yiguo, and Mr. Li Shaorong, all independent non-executive directors, responsible for internal control, financial reporting, and reporting matters, and has reviewed the unaudited interim consolidated financial statements and interim results for the period, deeming them compliant with applicable accounting standards and legal requirements - The Audit Committee members are Ms. Fu Wenjie (Chairperson), Mr. Kang Yiguo, and Mr. Li Shaorong, all of whom are independent non-executive directors of the company[121] - The Audit Committee has reviewed the Group's unaudited interim consolidated financial statements and interim results for the six months ended June 30, 2025, deeming them compliant with applicable accounting standards and legal requirements, with appropriate disclosures made[121] Corporate Governance Code The company believes that good corporate governance improves corporate performance and accountability and confirms its continuous compliance with the code provisions of the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules during the period from January 1, 2025, to June 30, 2025 - The Board believes that the company has continuously complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules during the period from January 1, 2025, to June 30, 2025[122] Compliance with Model Code The company has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors and supervisors in securities transactions and confirms that all directors and supervisors have fully complied with the code during the period - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for the company's directors and supervisors in securities transactions[123] - The Board is pleased to confirm that all directors and supervisors have confirmed their full compliance with the Model Code during the period[123] Post-Reporting Period Events After the reporting period, Tianjian Certified Public Accountants was appointed as the company's auditor for 2025 on August 12, 2025, with no other matters likely to significantly impact the company's operations and financial performance up to the date of this announcement - Tianjian Certified Public Accountants was appointed as the company's auditor for 2025 at the first extraordinary general meeting held on August 12, 2025[124] - Other than the above, no other matters that could significantly impact the company's operations and financial performance have occurred after June 30, 2025, and up to the date of this announcement, requiring disclosure[124] [Publication of Interim Results Announcement an