凤形股份(002760) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions This section provides important notices regarding the report's accuracy and future plans, along with definitions of key terms for clarity Important Notice The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, while also highlighting risks associated with future plans and performance forecasts, with no interim cash dividends, bonus shares, or capital reserve conversions planned - The company's board of directors, supervisory board, and senior management commit to the truthfulness, accuracy, and completeness of the report content[4] - Content related to future plans and performance forecasts in the report does not constitute a substantive commitment, and investors should be aware of investment risks[5] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[6] Definitions This section provides definitions for common terms used in the report, including company abbreviations, subsidiary names, laws and regulations, and the reporting period, to ensure clear understanding of the content Key Definitions | Term | Definition | | :--- | :--- | | Fengxing Shares/Company/This Company | Fengxing Co., Ltd. | | Kangfu Technology | Kangfu Technology Co., Ltd. | | Fengxing New Materials | Anhui Fengxing New Materials Technology Co., Ltd. | | Jinan Jimeile | Jinan Jimeile Power Technology Co., Ltd. | | Western Indium Industry | Qinghai Western Indium Industry Co., Ltd. | | Reporting Period/This Reporting Period/This Period | January 1, 2025 to June 30, 2025 | Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information and presents key accounting data and financial indicators for the reporting period Company Profile Fengxing Co., Ltd., stock ticker 'Fengxing Shares' (002760), is listed on the Shenzhen Stock Exchange, with Zhou Zhenghua as its legal representative and registered and operational addresses in Nanchang, Jiangxi Province Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Fengxing Shares | | Stock Code | 002760 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Zhou Zhenghua | | Company Registered Address | No. 1888, Jinsha Third Road, Xiaolan Economic and Technological Development Zone, Nanchang County, Nanchang City, Jiangxi Province | | Company Office Address | Units 1501-1504, Building B1, Shanglian Center, No. 99 Jinjiang Road, Honggutan District, Nanchang City, Jiangxi Province | Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue decreased by 2.46% year-on-year, and net profit attributable to shareholders significantly dropped by 44.18%, while net profit excluding non-recurring gains and losses increased by 385.43%, with operating cash flow turning positive and slight changes in total assets and net assets attributable to shareholders Key Accounting Data and Financial Indicators (Current Period vs. Prior Year) | Indicator | Current Period (CNY) | Prior Year (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 293,749,016.77 | 301,146,421.01 | -2.46% | | Net Profit Attributable to Shareholders of Listed Company | 7,280,726.60 | 13,044,316.21 | -44.18% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | 2,853,009.32 | 587,724.86 | 385.43% | | Net Cash Flow from Operating Activities | 99,347.16 | -33,063,274.30 | 100.30% | | Basic Earnings Per Share | 0.07 | 0.12 | -41.67% | | Weighted Average Return on Net Assets | 0.89% | 1.44% | -0.55% | | Total Assets (Period-end) | 1,220,182,952.95 | 1,267,157,401.58 | -3.71% | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 817,136,986.69 | 809,884,587.09 | 0.90% | Non-recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to CNY 4,427,717.28, primarily from government subsidies and fair value changes of financial assets, significantly contributing to net profit after tax impact Non-recurring Gains and Losses and Amounts | Item | Amount (CNY) | Explanation | | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -4,555.84 | | | Government Subsidies Included in Current Period's Profit/Loss | 4,237,504.50 | Primarily government subsidies and awards received in the current period | | Gains/Losses from Fair Value Changes of Financial Assets and Liabilities Held by Non-financial Enterprises, and Gains/Losses from Disposal of Financial Assets and Liabilities | 351,505.57 | | | Other Non-operating Income and Expenses Apart from the Above | -28,767.63 | | | Less: Income Tax Impact | 127,969.32 | | | Total | 4,427,717.28 | | Section III Management Discussion and Analysis This section provides an in-depth analysis of the company's main businesses, core competencies, financial performance, asset and liability status, investment activities, and risk management strategies Main Businesses During the Reporting Period The company's main businesses include wear-resistant materials and marine electrical system solutions and special motors, with wear-resistant materials primarily high-chrome grinding media for mining and cement, and marine electrical systems for shipbuilding and military, both operating on a make-to-order and direct sales model - The company's main businesses are wear-resistant materials and marine electrical system solutions and special motors[26] - The wear-resistant materials business primarily offers “Fengxing” brand high-chrome grinding media, ultra-high chrome grinding media, medium-low chrome grinding media, and liners, mainly high-chrome grinding media, used in metallurgy, mining, building materials, cement, and thermal power industries[26] - The marine electrical system solutions and special motors business, primarily undertaken by Kangfu Technology, has products widely used in ships, military, communication facilities, shopping malls, hospitals, and other venues and fields[27] Core Competitiveness Analysis The company's core competitiveness lies in continuous technological innovation, brand and channel advantages, and market leadership, with advanced production processes in wear-resistant materials and proprietary R&D in marine electrical systems, securing multiple patents and provincial technical center certifications for energy efficiency and new energy vessel applications, establishing a strong brand and stable customer base through reliable quality and rapid response - The wear-resistant materials business possesses advanced domestic production equipment such as iron mold sand-coated casting ball production lines and vertical parting flaskless molding lines, employing industry-leading processes like melting, constant temperature pouring, and heat treatment[30] - The marine electrical system solutions and special motors business adheres to independent R&D, being one of the few domestic pioneers in providing marine electrical system solutions, possessing self-developed technologies such as constant frequency and constant voltage systems and DC propulsion systems, participating in the formulation and revision of 20 national standards, and holding a cumulative total of 148 valid patents[31] - The company has established a brand advantage in the wear-resistant castings industry and the marine equipment and special fields, boasting well-known domestic and international clients such as China Railway Resources, Huaxin Cement, and IMPALA Mining Group[32] Main Business Analysis During the reporting period, the company's operating revenue decreased by 2.46% year-on-year, yet marine electrical system solutions and special motor business revenue grew by 40.07% with a 3.02% increase in gross margin, while mining sector revenue rose by 3.65% and international sales surged by 93.23%, with increased selling and administrative expenses offset by a significant decrease in financial expenses due to loan repayments and increased wealth management interest income Key Financial Data Year-on-Year Changes | Indicator | Current Period (CNY) | Prior Year (CNY) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 293,749,016.77 | 301,146,421.01 | -2.46% | | | Selling Expenses | 18,578,821.19 | 17,301,428.55 | 7.38% | Primarily due to increased marketing and other expenses | | Administrative Expenses | 27,370,513.46 | 25,602,556.41 | 6.91% | Primarily due to increased depreciation, amortization, and payroll expenses | | Financial Expenses | -2,322,819.00 | 2,186,038.17 | -206.26% | Primarily due to loan repayments and increased interest income from wealth management | | Income Tax Expense | 2,547,551.23 | 34,262.99 | 7,335.29% | Primarily due to prepaid income tax and deferred income tax impact | | Net Cash Flow from Operating Activities | 99,347.16 | -33,063,274.30 | 100.30% | Primarily due to reduced cash outflow for procurement settlements | | Net Cash Flow from Investing Activities | -152,325,968.92 | -22,528,346.55 | -576.15% | Primarily due to increased investment in wealth management | | Net Cash Flow from Financing Activities | -23,049,372.57 | -61,599,356.23 | 62.58% | Primarily due to reduced loan repayments and share repurchases | Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Current Period Amount (CNY) | % of Operating Revenue | Prior Year Amount (CNY) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Cement | 34,062,018.26 | 11.60% | 44,029,712.23 | 14.62% | -22.64% | | | Mining | 133,124,532.16 | 45.32% | 128,435,467.01 | 42.65% | 3.65% | | | Marine Equipment and Other Special Fields | 97,276,963.54 | 33.12% | 69,446,938.96 | 23.06% | 40.07% | | By Product | High-Chrome Wear-Resistant Products | 191,497,727.78 | 65.19% | 224,271,715.88 | 74.47% | -14.61% | | | Marine Electrical System Solutions and Special Motors | 97,276,963.54 | 33.12% | 69,446,938.96 | 23.06% | 40.07% | | By Region | Domestic Sales | 253,678,674.73 | 86.36% | 280,409,505.79 | 93.11% | -9.53% | | | International Sales | 40,070,342.04 | 13.64% | 20,736,915.22 | 6.89% | 93.23% | Non-Core Business Analysis The company's non-core businesses significantly impacted total profit, with investment income and credit impairment losses being major contributors, while other income, primarily government subsidy amortization, accounted for a substantial 147%, serving as a key source of profit for the current period Impact of Non-Core Businesses on Total Profit | Item | Amount (CNY) | % of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 1,439,885.59 | 14.65% | Primarily investment income from associates | Yes | | Fair Value Change Gains/Losses | 133,054.24 | 1.35% | Primarily changes in financial assets held for trading | No | | Asset Impairment | -338,340.37 | -3.44% | Primarily inventory write-downs | No | | Other Income | 14,448,046.42 | 147.00% | Primarily amortization of deferred income and government subsidies recognized in the current period | No | | Credit Impairment Losses | 1,075,526.96 | 10.94% | Primarily bad debt provisions for accounts receivable | No | Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets decreased by 3.71% year-on-year, with cash and cash equivalents significantly down by 13.02% due to wealth management product purchases and loan repayments, while financial assets held for trading increased by 12.30% due to wealth management product purchases, and both long-term and short-term borrowings decreased, indicating debt structure optimization Significant Changes in Asset Composition | Item | Amount at End of Current Period (CNY) | % of Total Assets | Amount at End of Prior Year (CNY) | % of Total Assets | % Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 155,140,165.08 | 12.71% | 326,016,857.17 | 25.73% | -13.02% | Primarily due to purchases of wealth management products and loan repayments | | Financial Assets Held for Trading | 150,133,054.24 | 12.30% | 0.00 | 0.00% | 12.30% | Primarily due to purchases of wealth management products | | Short-term Borrowings | 5,004,682.78 | 0.41% | 10,006,641.82 | 0.79% | -0.38% | No significant change | | Long-term Borrowings | 20,000,000.00 | 1.64% | 30,000,000.00 | 2.37% | -0.73% | No significant change | - Other cash and cash equivalents of CNY 18,706,810.61 at period-end represent bill payment deposits and letter of guarantee deposits, and CNY 27,345.16 represents funds in a securities repurchase special account, both with usage restrictions[47] Investment Analysis During the reporting period, the company's investment amount increased by 68.69% year-on-year, primarily due to increased wealth management investments, with no significant equity, non-equity, securities, or derivative investments, nor any use of raised funds Changes in Investment Amount During the Reporting Period | Indicator | Current Period (CNY) | Prior Year (CNY) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount During Reporting Period | 213,174,220.25 | 126,372,303.00 | 68.69% | - The company had no securities investments, derivative investments, or use of raised funds during the reporting period[49][50][51] Analysis of Major Controlled and Invested Companies The company's major controlled subsidiaries, Fengxing New Materials and Kangfu Technology, both achieved profitability during the reporting period, with Fengxing New Materials, specializing in wear-resistant materials, reporting a net profit of CNY 8.21 million, and Kangfu Technology, focusing on marine electrical systems and special motors, reporting a net profit of CNY 7.98 million Financial Data of Major Subsidiaries | Company Name | Main Business | Registered Capital (CNY) | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Anhui Fengxing New Materials Technology Co., Ltd. | R&D, production, sales, and service of wear-resistant materials | 50,000,000.00 | 774,931,269.57 | 551,995,482.26 | 194,666,479.76 | 8,334,648.20 | 8,213,460.66 | | Kangfu Technology Co., Ltd. | Design, production, and sales of marine electrical system solutions and special motors | 100,000,000.00 | 308,300,578.33 | 175,025,788.22 | 89,739,993.17 | 10,067,253.51 | 7,975,531.24 | Company Risks and Countermeasures The company faces risks from cyclical product procurement fluctuations, volatile raw material prices, and intensifying market competition, which it plans to address by actively developing new products, implementing flexible sales and credit policies, optimizing supply chain management, adjusting product structure, and continuously strengthening sales channels and technological innovation to enhance customer loyalty - Risk one: Cyclical fluctuations in product procurement, where a slower-than-expected recovery in downstream industries (cement and building materials, metallurgy and mining, shipping market) may impact market demand[56] - Countermeasures: Actively develop new products to expand market position; adopt flexible sales, credit, and inventory management policies to enhance adaptability and risk resistance[56] - Risk two: Price fluctuations of major raw materials (scrap steel, high-carbon ferrochrome, silicon steel sheets, cold-rolled plates, enameled wire, etc.) may affect production budgets and cost control[56][57] - Countermeasures: Continuously monitor raw material prices, optimize supply chain management, adjust product structure, and timely adjust product selling prices to mitigate the impact of price fluctuations[57] - Risk three: Low concentration in the wear-resistant materials industry intensifies market competition; technological advancements and increased strength of domestic manufacturers in the marine electrical system and special motor industry also heighten competition[58] - Countermeasures: Strengthen sales channel development and establish strategic partnerships; form a comprehensive intellectual property system and unique technological advantages; provide personalized customization and after-sales service to enhance customer loyalty[58] Section IV Corporate Governance, Environment, and Society This section details changes in the company's governance structure, profit distribution plans, employee incentive measures, and social responsibility initiatives during the reporting period Changes in Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the company's directors, supervisors, or senior management - There were no changes in the company's directors, supervisors, and senior management during the reporting period[61] Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[62] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures, nor any implementation thereof - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures, nor any implementation thereof during the reporting period[63] Social Responsibility The company actively fulfills its social responsibilities, including protecting shareholder rights through improved governance and minority shareholder participation, safeguarding employee rights by adhering to labor laws and prioritizing health and talent development, ensuring supplier and customer rights through integrity and strategic partnerships, and engaging in public welfare activities such as blood donation and employee welfare programs - The company strictly adheres to laws and regulations, improves its corporate governance structure, safeguards the legitimate rights and interests of shareholders, especially minority shareholders, and communicates with shareholders through various channels[64] - The company complies with labor laws, ensures employee occupational safety and social security, prioritizes employee health, and values talent development and training[65] - The company adheres to honest operation, establishes strategic partnerships with suppliers and customers, and respects and protects the legitimate rights and interests of all parties[65] - The company's Party Committee and labor union regularly organize employees to participate in public welfare activities such as voluntary blood donation and visiting employees in need, and provide scholarship subsidies for employees' children admitted to higher education institutions[66] Section V Significant Matters This section covers significant matters including commitments, non-operating fund occupation, illegal external guarantees, auditor appointments, litigation, related party transactions, and major contracts Commitments During the reporting period, there were no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself that were either fulfilled or overdue and unfulfilled as of the end of the reporting period - During the reporting period, the company had no commitments from its actual controller, shareholders, related parties, acquirers, or the company itself that were either fulfilled or overdue and unfulfilled as of the end of the reporting period[68] Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the listed company - During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the listed company[69] Illegal External Guarantees During the reporting period, the company had no illegal external guarantees - The company had no illegal external guarantees during the reporting period[70] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was unaudited - The company's semi-annual report was unaudited[71] Litigation Matters The company had no significant litigation or arbitration matters during the current reporting period - The company had no significant litigation or arbitration matters during the current reporting period[73] Significant Related Party Transactions During the reporting period, the company engaged in ordinary course related party transactions with Baiyin Huaxin Jiuhe Renewable Resources Co., Ltd., selling wear-resistant materials and generator-related products for CNY 370,000, which did not exceed the approved limit, and had no other significant related party transactions such as asset or equity acquisitions/disposals, joint external investments, or related party debt/credit Related Party Transactions in Ordinary Course of Business | Related Party | Type of Related Party Transaction | Content of Related Party Transaction | Amount of Related Party Transaction (CNY 10,000) | % of Similar Transactions | Approved Transaction Limit (CNY 10,000) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Baiyin Huaxin Jiuhe Renewable Resources Co., Ltd. | Sale of Goods | Wear-resistant materials, generator-related products | 37 | 0.13% | 550 | No | - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[77] - The company had no related party debt or credit transactions during the reporting period[79] Significant Contracts and Their Performance During the reporting period, the company had no entrustment, contracting, or leasing matters, but provided several joint liability guarantees for subsidiaries Kangfu Technology, Fengxing New Materials, and Jinan Jimeile Power Technology Co., Ltd., with a total actual guarantee balance of CNY 473.4 million at period-end, representing 60.99% of the company's net assets, and no entrusted wealth management or other significant contracts - The company had no entrustment, contracting, or leasing situations during the reporting period[83][84][85] Company Guarantees for Subsidiaries | Name of Guaranteed Party | Type of Guarantee | Guarantee Limit (CNY 10,000) | Actual Guarantee Amount (CNY 10,000) | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Kangfu Technology Co., Ltd. | Joint and Several Liability Guarantee | 3,000 | 3,000 | 36 months | No | | Kangfu Technology Co., Ltd. | Joint and Several Liability Guarantee | 1,500 | 1,500 | 36 months | No | | Kangfu Technology Co., Ltd. | Joint and Several Liability Guarantee | 3,000 | 3,000 | 36 months | No | | Kangfu Technology Co., Ltd. | Joint and Several Liability Guarantee | 2,400 | 2,400 | 36 months | No | | Kangfu Technology Co., Ltd. | Joint and Several Liability Guarantee | 2,600 | 2,600 | 36 months | No | | Anhui Fengxing New Materials Technology Co., Ltd. | Joint and Several Liability Guarantee | 6,000 | 6,000 | 60 months | No | | Anhui Fengxing New Materials Technology Co., Ltd. | Joint and Several Liability Guarantee | 1,000 | 1,000 | 48 months | No | | Anhui Fengxing New Materials Technology Co., Ltd. | Joint and Several Liability Guarantee | 15,000 | 15,000 | 48 months | No | | Anhui Fengxing New Materials Technology Co., Ltd. | Joint and Several Liability Guarantee | 3,000 | 3,000 | 36 months | No | | Anhui Fengxing New Materials Technology Co., Ltd. | Joint and Several Liability Guarantee | 3,840 | 3,840 | 36 months | No | | Anhui Fengxing New Materials Technology Co., Ltd. | Joint and Several Liability Guarantee | 5,000 | 5,000 | 36 months | No | | Jinan Jimeile Power Technology Co., Ltd. | Joint and Several Liability Guarantee | 1,000 | 1,000 | 36 months | No | - At the end of the reporting period, the total actual guarantee balance for subsidiaries was CNY 498.4 million, accounting for 60.99% of the company's net assets[88] - The company had no entrusted wealth management or other significant contracts during the reporting period[89][90] Section VI Share Changes and Shareholder Information This section details the company's share capital changes, shareholder structure, and any changes in controlling shareholders or actual controllers during the reporting period Share Change Information During the reporting period, the company's total share capital remained unchanged at 107,988,706 shares, having completed a share repurchase plan on February 20, 2025, accumulating 1,652,000 shares, representing 1.55% of the total share capital, with a total transaction amount of CNY 25,022,595 Changes in Total Share Capital | Item | Quantity Before This Change | % Before This Change | Increase/Decrease in This Change (+, -) | Quantity After This Change | % After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Shares | 107,988,706 | 100.00% | 0 | 107,988,706 | 100.00% | - The company completed its share repurchase plan on February 20, 2025, having repurchased a cumulative total of 1,652,000 shares, accounting for 1.55% of the company's total share capital, with a total transaction amount of CNY 25,022,595[96] Shareholder Numbers and Shareholding Information At the end of the reporting period, the total number of common shareholders was 14,344, with Qinghai Western Indium Industry Co., Ltd. being the largest shareholder holding 23.28% of shares, some of which are pledged, and Jiangxi Taihao Technology Development Co., Ltd. holding 4.54% Total Number of Common Shareholders at Period-End | Indicator | Quantity | | :--- | :--- | | Total Number of Common Shareholders at Period-End | 14,344 | Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held | Number of Unrestricted Shares Held | Share Status | Quantity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Qinghai Western Indium Industry Co., Ltd. | Domestic Non-State-Owned Legal Person | 23.28% | 25,142,857 | 25,142,857 | Pledged | 11,900,000 | | Jiangxi Taihao Technology Development Co., Ltd. | Domestic Non-State-Owned Legal Person | 4.54% | 4,899,406 | 4,899,406 | Not Applicable | 0 | Changes in Controlling Shareholder or Actual Controller During the reporting period, neither the company's controlling shareholder nor its actual controller changed - The company's controlling shareholder did not change during the reporting period[101] - The company's actual controller did not change during the reporting period[101] Section VII Bond-Related Information During the reporting period, the company had no bond-related information - The company had no bond-related information during the reporting period[104] Section VIII Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed notes on accounting policies, taxes, and financial statement items Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[106] Financial Statements This section provides the company's 2025 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity, comprehensively presenting the financial position at period-end and operating results, cash flows, and changes in owners' equity during the reporting period - The financial statements include the consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[107][111][114][117][119][122][123][134] Company Basic Information Fengxing Co., Ltd. was listed on the Shenzhen Stock Exchange main board in June 2015 under stock code 002760, with a total share capital of CNY 107,988,706.00 as of June 30, 2025, and its main businesses are high-chrome wear-resistant products and special motors and their integrated products - Fengxing Co., Ltd. was listed on the Shenzhen Stock Exchange main board in June 2015, with stock abbreviation 'Fengxing Shares' and stock code '002760'[141] - As of June 30, 2025, the company's total share capital was CNY 107,988,706.00[141] - The company's main businesses are high-chrome wear-resistant products and special motors and their integrated products, making it a professional supplier of wear-resistant materials in China[141] Basis of Financial Statement Preparation The company prepares its financial statements on a going concern basis, in accordance with enterprise accounting standards, their application guidelines, and interpretations, and complies with the information disclosure requirements of the China Securities Regulatory Commission, assessing its going concern ability to be good for 12 months from the end of the reporting period - The company prepares its financial statements on a going concern basis, recognizing and measuring transactions and events in accordance with enterprise accounting standards, their application guidelines, and interpretations[143] - The company assessed its going concern ability for 12 months from the end of the reporting period and found no matters affecting its ability to continue as a going concern[144] Significant Accounting Policies and Estimates This section details the company's significant accounting policies and estimates used in preparing financial statements, covering specific treatment methods for business combinations, consolidated financial statements, cash and cash equivalents, financial instruments, inventories, long-term equity investments, fixed assets, intangible assets, employee compensation, revenue recognition, government grants, deferred tax assets/liabilities, and leases - The company adheres to enterprise accounting standards to truthfully and completely reflect its financial position, operating results, changes in owners' equity, and cash flows[146] - Financial assets are classified as those measured at amortized cost, at fair value through profit or loss, or at fair value through other comprehensive income[168] - Revenue recognition principles involve recognizing revenue when customers obtain control of related goods, distinguishing between recognition over time or at a point in time based on the type of performance obligation[221][222][223] Taxation The company's main taxes include VAT, urban maintenance and construction tax, enterprise income tax, and education surcharge, with several subsidiaries enjoying a 15% preferential income tax rate as high-tech enterprises, and some qualifying as small low-profit enterprises benefiting from a 20% income tax rate Main Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 13%, 6%, 5% | | Urban Maintenance and Construction Tax | 7% | | Enterprise Income Tax | 15%, 25%, 20% | | Education Surcharge | 3%, 2% | - Anhui Fengxing New Materials Technology Co., Ltd., Kangfu Technology Co., Ltd., and Jinan Jimeile Power Technology Co., Ltd. are recognized as high-tech enterprises, enjoying a preferential enterprise income tax rate of 15%[244][245] - Shanghai Guofeng Investment Development Co., Ltd. and several other subsidiaries qualify as small low-profit enterprises, enjoying a preferential enterprise income tax rate of 20%[246] Notes to Consolidated Financial Statement Items This section provides detailed notes on consolidated financial statement items, including cash and cash equivalents, financial assets held for trading, notes receivable, accounts receivable, contract assets, other receivables, inventories, long-term equity investments, fixed assets, intangible assets, goodwill, long-term prepaid expenses, deferred tax assets/liabilities, short-term borrowings, notes payable, accounts payable, other payables, contract liabilities, employee benefits payable, taxes payable, non-current liabilities due within one year, other current liabilities, long-term borrowings, lease liabilities, deferred income, share capital, treasury shares, operating revenue and costs, various expenses, other income, investment income, credit impairment losses, asset impairment losses, asset disposal gains/losses, non-operating income/expenses, income tax expense, and cash flow statement items Composition of Cash and Cash Equivalents | Item | Period-end Balance (CNY) | Period-start Balance (CNY) | | :--- | :--- | :--- | | Cash on hand | 35,475.51 | 33,674.47 | | Bank deposits | 136,370,533.80 | 311,814,155.04 | | Other cash and cash equivalents | 18,734,155.77 | 14,169,027.66 | | Total | 155,140,165.08 | 326,016,857.17 | Financial Assets Held for Trading | Item | Period-end Balance (CNY) | | :--- | :--- | | Financial assets measured at fair value through profit or loss | 150,133,054.24 | | Of which: Purchases of bank structured deposits | 100,000,000.00 | | Purchases of bank wealth management products | 50,133,054.24 | Operating Revenue and Operating Costs | Item | Current Period Revenue (CNY) | Current Period Cost (CNY) | Prior Period Revenue (CNY) | Prior Period Cost (CNY) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 288,774,691.32 | 237,374,982.54 | 293,718,654.84 | 236,939,332.26 | | Other Business | 4,974,325.45 | 3,660,596.54 | 7,427,766.17 | 6,857,145.36 | | Total | 293,749,016.77 | 241,035,579.08 | 301,146,421.01 | 243,796,477.62 | Research and Development Expenses During the reporting period, the company's total R&D investment was CNY 16,039,603.03, with CNY 14,896,361.17 expensed and CNY 1,143,241.86 capitalized, focusing on projects such as marine distributed management and monitoring systems, electric propulsion vessel power generation systems, and high-efficiency intelligent generator sets Composition of Research and Development Expenses | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Employee compensation | 6,499,463.83 | 7,663,491.95 | | Material costs | 5,179,750.14 | 4,515,977.86 | | Electricity expenses | 2,603,574.65 | 2,054,370.63 | | Depreciation expenses | 686,604.98 | 157,380.02 | | Other expenses | 1,070,209.43 | 1,759,108.42 | | Total | 16,039,603.03 | 16,150,328.88 | | Of which: Expensed R&D | 14,896,361.17 | 14,455,003.37 | | Capitalized R&D | 1,143,241.86 | 1,695,325.51 | - The company has several R&D projects that meet capitalization criteria, such as the application and industrialization of LNG fuel-powered marine distributed management and monitoring systems, and research on 100KW-1500KW electric propulsion vessel power generation systems[485][486] Changes in Consolidation Scope During the reporting period, there were no changes in the consolidation scope due to business combinations not under common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries - The company had no business combinations not under common control during the reporting period[490] - The company had no business combinations under common control during the reporting period[494] - The company had no transactions or events resulting in the loss of control over subsidiaries during the reporting period[496] Interests in Other Entities The company owns several wholly-owned subsidiaries primarily engaged in wear-resistant materials, marine electrical systems, and special motors, and holds investments in non-significant associates with a total carrying value of CNY 68,052,613.48, recognizing a net profit of CNY 591,634.26 from them in the current period Composition of the Enterprise Group (Partial Subsidiaries) | Subsidiary Name | Business Nature | Shareholding Ratio (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | | Anhui Fengxing New Materials Technology Co., Ltd. | R&D, production, sales, and service of wear-resistant materials | 100.00% | Establishment | | Kangfu Technology Co., Ltd. | Design, production, and sales of special motors and their integrated products | 100.00% | Business combination not under common control | | Jinan Jimeile Power Technology Co., Ltd. | Sales of special motor-related products | 100.00% | Business combination not under common control | Summary Financial Information of Non-Significant Associates | Item | Period-end Balance/Current Period Amount (CNY) | Period-start Balance/Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Carrying Value of Investments | 68,052,613.48 | 67,302,881.73 | | Net Profit | 591,634.26 | 702,830.51 | | Total Comprehensive Income | 591,634.26 | 702,830.51 | Government Grants At the end of the reporting period, the balance of government grants in the company's deferred income was CNY 133,869,057.31, with CNY 9,299,865.18 recognized as other income in the current period, primarily related to assets such as the Fengxing Industrial Park relocation, construction projects, and equipment upgrades Liability Items Involving Government Grants | Accounting Account | Period-start Balance (CNY) | Amount Recognized in Other Income for Current Period (CNY) | Period-end Balance (CNY) | Related to Assets/Income | | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 143,168,922.49 | 9,299,865.18 | 133,869,057.31 | Related to assets | Government Grants Recognized in Current Period Profit/Loss | Accounting Account | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Government grants in other income | 4,237,504.50 | 4,873,227.54 | Risks Related to Financial Instruments The company faces credit, liquidity, and market risks, managed through deposits with high-credit financial institutions, monitoring customer credit records, and regularly assessing liquidity needs, with no hedging activities or hedge accounting applied during the reporting period - The company faces credit risk, liquidity risk, and market risk, with management responsible for formulating risk management objectives and policies[514] - Credit risk is controlled by depositing funds with highly reputable commercial banks, assessing customer creditworthiness, regularly monitoring credit records, and adopting flexible sales policies[514][515] - Liquidity risk is managed by regularly monitoring short-term and long-term liquidity needs, ensuring sufficient cash reserves and readily marketable securities[516] - The company did not engage in hedging activities or apply hedge accounting during the reporting period[518][519] Disclosure of Fair Value At the end of the reporting period, the company's assets measured at fair value primarily included financial assets held for trading and notes receivable financing, totaling CNY 194,617,091.60, all classified as Level 3 fair value measurements Fair Value of Assets Measured at Fair Value at Period-End | Item | Level 3 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | | Financial assets held for trading | 150,133,054.24 | 150,133,054.24 | | Notes receivable financing | 44,484,037.36 | 44,484,037.36 | | Total | 194,617,091.60 | 194,617,091.60 | Related Parties and Related Party Transactions The company's parent company is Qinghai Western Indium Industry Co., Ltd., with Xu Maohua as the ultimate controlling party; during the reporting period, the company engaged in goods sales with related party Baiyin Huaxin Jiuhe Renewable Resources Co., Ltd. and received guarantees from Taihao Group Co., Ltd., with key management personnel compensation totaling CNY 2,552,944.66 - The company's parent company is Qinghai Western Indium Industry Co., Ltd., and the ultimate controlling party is Xu Maohua[526] Sales of Goods/Provision of Services | Related Party | Content of Related Party Transaction | Current Period Amount (CNY) | | :--- | :--- | :--- | | Baiyin Huaxin Jiuhe Renewable Resources Co., Ltd. | Sales of high-chrome wear-resistant products | 369,951.33 | The Company as a Guaranteed Party | Guarantor | Guarantee Amount (CNY) | Guarantee Start Date | Guarantee End Date | Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Taihao Group Co., Ltd. | 10,000,000.00 | 2022 年 06 月 20 日 | 2025 年 08 月 28 日 | No | | Taihao Group Co., Ltd. | 10,000,000.00 | 2022 年 06 月 20 日 | 2026 年 02 月 28 日 | No | | Taihao Group Co., Ltd. | 10,000,000.00 | 2022 年 06 月 20 日 | 2026 年 08 月 28 日 | No | | Taihao Group Co., Ltd. | 10,000,000.00 | 2022 年 06 月 20 日 | 2027 年 03 月 01 日 | No | Key Management Personnel Compensation | Item | Current Period Amount (CNY) | | :--- | :--- | | Key management personnel compensation | 2,552,944.66 | Commitments and Contingencies The company has no significant commitments or contingencies requiring disclosure - The company has no significant contingencies requiring disclosure[548] Notes to Parent Company Financial Statement Major Items This section provides detailed notes on the parent company's major financial statement items, including accounts receivable, other receivables, long-term equity investments, operating revenue and costs, and investment income, with accounts receivable at period-end totaling CNY 96,715.82, long-term equity investments at CNY 1,070,172,155.83, and current period investment income of CNY 15,000,000.00 Parent Company Accounts Receivable by Age | Age | Period-end Book Balance (CNY) | | :--- | :--- | | Within 1 year (inclusive) | 0 | | 1 to 2 years | 0 | | 2 to 3 years | 87,144.00 | | Over 3 years | 47,859.09 | | Total | 135,003.09 | Parent Company Long-term Equity Investments | Item | Period-end Book Value (CNY) | | :--- | :--- | | Investments in subsidiaries | 1,070,172,155.83 | | Total | 1,070,172,155.83 | Parent Company Investment Income | Item | Current Period Amount (CNY) | | :--- | :--- | | Investment income from long-term equity investments accounted for using the cost method | 15,000,000.00 | | Total | 15,000,000.00 | Section IX Other Submitted Data This section includes information on other significant social safety issues, records of investor engagement activities, and details of fund movements between the listed company and its controlling shareholders and other related parties Other Significant Social Safety Issues Neither the listed company nor its subsidiaries had other significant social safety issues or received administrative penalties during the reporting period - Neither the listed company nor its subsidiaries had other significant social safety issues[619] - No administrative penalties were received during the reporting period[619] Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period During the reporting period, on May 21, 2025, the company held an online performance briefing via a network platform, engaging with institutional and individual investors primarily to discuss the 2024 annual performance Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period | Reception Time | Reception Location | Reception Method | Type of Reception Object | Reception Object | Main Content Discussed and Materials Provided | | :--- | :--- | :--- | :--- | :--- | :--- | | May 21, 2025 | Online performance briefing | Online platform communication | Other | Institutions, individuals | 2024 Annual Online Performance Briefing | Fund Movements Between Listed Company and Controlling Shareholders and Other Related Parties The company has operating and non-operating fund movements with controlling shareholders and other related parties, with a total period-end balance of CNY 61.34 million, all occurring as per business needs, approved through company procedures, and with controllable fund safety risks Fund Movements Between Listed Company and Controlling Shareholders and Other Related Parties | Name of Counterparty | Nature of Movement | Period-start Balance (CNY 10,000) | Amount During Reporting Period (CNY 10,000) | Repaid Amount During Reporting Period (CNY 10,000) | Period-end Balance (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Baiyin Huaxin Jiuhe Renewable Resources Co., Ltd. | Operating movement | 0 | 41.8 | 34.28 | 7.52 | | Kangfu Technology Co., Ltd. | Operating movement | 8.71 | 0 | 0 | 8.71 | | Jiangxi Fengxing Property Management Co., Ltd. | Non-operating movement | 1,673.38 | 4 | 0 | 1,677.38 | | Nanchang Kangfu New Energy Technology Co., Ltd. | Non-operating movement | 1,523.11 | 0 | 0 | 1,523.11 | | Jinan Jimeile Power Technology Co., Ltd. | Non-operating movement | 1,950 | 615.5 | 315.5 | 2,250 | | Shanghai Guofeng Investment Development Co., Ltd. | Non-operating movement | 532.82 | 134 | 0 | 666.82 | | Total | -- | 5,688.02 | 795.3 | 349.78 | 6,133.54 | - All fund movements occurred as per business needs, were approved through company procedures, and have controllable fund safety risks[621]