和顺电气(300141) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides an important notice, the structured table of contents, and definitions of key terms to ensure clear understanding of the report's content Important Notice The company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, and declare no cash dividends, bonus shares, or capital increase from capital reserves - Company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions[4] - Company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] - Forward-looking statements regarding future development and operational plans do not constitute substantial commitments to investors and involve uncertainties[4] Table of Contents This section lists the structured table of contents for the report, covering eight main chapters from important notices to financial reports - The report's table of contents includes eight main chapters, from important notices to financial reports, providing the overall structure of the report[7] Definitions This section defines common terms used in the report, including company names, subsidiary names, product acronyms, business types, and abbreviations for financial and regulatory bodies - The report defines key terms such as the company, subsidiaries (e.g., Surong Company, Zhongdao Electric Power, Heshun Investment), and products (e.g., DCC, APF, SVG, charging piles)[11] - Definitions also include business models (e.g., EPC), power units (MW), regulatory bodies (e.g., Stock Exchange, CSRC), and information disclosure platforms (Juchao Information Network)[11] - The reporting period is defined as January 1 to June 30, 2025[11] Company Profile and Key Financial Indicators This section provides an overview of the company, its contact information, and key financial performance indicators for the reporting period Company Profile Suzhou Industrial Park Heshun Electric Co., Ltd. (stock abbreviation: Heshun Electric, stock code: 300141) is listed on the Shenzhen Stock Exchange, with Wang Dong as its legal representative - Company's stock abbreviation is "Heshun Electric", stock code "300141", listed on the Shenzhen Stock Exchange[13] - The legal representative of the company is Wang Dong[13] Contact Person and Information The Board Secretary is Miao Longfei, and the Securities Affairs Representative is Gu Tianyu, both located at No. 8 Heshun Road, Suzhou Industrial Park, with consistent phone and fax numbers, and an email address provided - Board Secretary is Miao Longfei, Securities Affairs Representative is Gu Tianyu[14] - Contact address is No. 8 Heshun Road, Suzhou Industrial Park, phone 0512-62862607, fax 0512-67905060[14] Other Information During the reporting period, there were no changes in the company's registered address, office address, website, email, information disclosure and document storage locations, or registration status - Company's registered address, office address, website, email, and other contact information remained unchanged during the reporting period[15] - Information disclosure and document storage locations remained unchanged during the reporting period[16] - Company's registration status remained unchanged during the reporting period[17] Key Accounting Data and Financial Indicators In the first half of 2025, the company's operating revenue decreased by 33.97% year-on-year, and net profit attributable to shareholders turned from profit to loss, decreasing by 1366.88% year-on-year 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 128,128,435.85 | 194,051,627.90 | -33.97% | | Net Profit Attributable to Shareholders of Listed Company | -22,941,995.44 | 1,810,902.15 | -1,366.88% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | -24,609,111.10 | 239,428.10 | -10,378.29% | | Net Cash Flow from Operating Activities | -62,309,551.46 | 47,673,134.13 | -230.70% | | Basic Earnings Per Share (CNY/share) | -0.0904 | 0.0071 | -1,373.24% | | Diluted Earnings Per Share (CNY/share) | -0.0904 | 0.0071 | -1,373.24% | | Weighted Average Return on Net Assets | -3.57% | 0.27% | -3.84% | | Period-End Indicators | End of Current Reporting Period (CNY) | End of Previous Year (CNY) | Change from End of Previous Year (%) | | Total Assets | 1,021,113,392.57 | 1,069,673,254.79 | -4.54% | | Net Assets Attributable to Shareholders of Listed Company | 638,283,268.33 | 648,248,739.77 | -1.54% | Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial statements disclosed under International Accounting Standards or overseas accounting standards and Chinese Accounting Standards - Company reported no differences in net profit and net assets between financial statements disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[19] - Company reported no differences in net profit and net assets between financial statements disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[20] Non-Recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 1,667,115.66 CNY, primarily from disposal gains/losses of non-current assets, government subsidies, and fair value changes in financial assets and liabilities 2025 Semi-Annual Non-Recurring Gains and Losses and Amounts | Item | Amount (CNY) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 2,172.26 | | Government subsidies recognized in current profit or loss | 320,016.00 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains and losses from disposal of financial assets and liabilities, excluding hedging activities | 1,669,449.75 | | Gains and losses from debt restructuring | -234,700.00 | | Other non-operating income and expenses apart from the above | -89,822.35 | | Total | 1,667,115.66 | - Company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring gains and losses[22] Management Discussion and Analysis This section analyzes the company's principal businesses, core competencies, financial performance, asset and liability status, investment activities, and risks, along with corresponding countermeasures Principal Businesses Engaged in by the Company During the Reporting Period During the reporting period, the company's principal businesses and operating model remained largely unchanged, maintaining its core intelligent grid product manufacturing while actively expanding into new energy integrated businesses - Company's principal businesses and operating model remained largely unchanged, maintaining its core intelligent grid product manufacturing[24] - Actively developing integrated businesses such as energy storage and charging devices and charging station construction and operation, photovoltaic power generation project construction and operation, hydrogen energy power systems, and mobile power integrated systems[24] Power Complete Equipment Business The company specializes in the transmission, distribution, and control equipment manufacturing industry, offering high and low voltage electrical equipment, power filtering, reactive power compensation, and power storage products and solutions - Company's main products include high and low voltage electrical equipment and complete sets, power filtering devices, reactive power compensation devices, and power storage devices[25] - Customers primarily include State Grid, China Southern Power Grid, the five major power generation groups, and their subsidiaries[26] - Operating model is "R&D—Design—Production—Sales—Service", with production based on sales orders[26] New Energy Photovoltaic Power Generation and EPC General Contracting Business Since 2015, the company has engaged in photovoltaic and wind power project investment and EPC general contracting, and began investing in and operating photovoltaic power generation projects in 2018 - Company has engaged in investment, installation, and construction general contracting (EPC) for photovoltaic (including mountain and rooftop) and wind power projects since 2015[27] - Started investing in and operating photovoltaic power generation projects in 2018, focusing on self-consumption distributed photovoltaic projects[27] - Profitability comes from cost control and optimized management of EPC projects, as well as power generation revenue and government subsidies[29] New Energy Storage and Charging Device Business The company possesses technological advantages in charging piles, offering various specifications of AC/DC charging equipment, and actively developing energy storage power product series to form integrated storage and charging solutions - Company has developed and mass-produced various specifications of AC/DC charging equipment, with competitive advantages in high-power fast charging and dynamic power distribution modes[30] - During the reporting period, the company upgraded charging pile technology and expanded its energy storage power product series, forming integrated storage and charging solutions[30] - Actively conducting technical verification and new product development for hydrogen energy power systems, already applied in hydrogen-powered two-wheelers, drones, and range extenders[31] - Actively developing mobile power integrated system business, characterized by rapid deployment, flexible migration, and plug-and-play functionality[31] Analysis of Core Competencies The company's core competencies include technological advantages, synergistic business across the industrial chain, strategic shareholder introduction, brand influence, and talent and management systems Technological Advantages As a national high-tech enterprise, the company has extensive R&D and production experience in the transmission and distribution equipment manufacturing industry, offering complete electric vehicle charging station solutions - Company is a national high-tech enterprise with extensive R&D and production experience in transmission and distribution equipment, offering complete electric vehicle charging station solutions[33] - As of June 2025, the company had obtained 102 authorized patents (21 invention patents, 68 utility model patents) and 13 software copyrights[33] - During the reporting period, 10 new authorized patents (9 utility model patents) and 1 software copyright were obtained[33] Industrial Chain Business Synergy Advantage Building on power complete equipment and power quality products, the company expands into diversified businesses like photovoltaic power generation, charging station operations, and new energy storage and charging devices, forming a closed-loop business model - Company builds on power complete equipment and power quality products (DCC, APF, SVG) as its development foundation, improving the industrial chain[34] - Expanding into various businesses such as photovoltaic power generation, charging station investment, construction and operation, integrated primary and secondary equipment, power sales, and new energy storage and charging devices[34] - Strengthening industrial chain synergy to form a closed-loop business where segments mutually leverage and develop, enhancing the company's comprehensive competitiveness[34] Strategic Shareholder Introduction Advantage In November 2022, Green Pulse Electric became the company's new controlling shareholder, bringing advantageous resources to facilitate business expansion and enhance overall competitiveness - In November 2022, Green Pulse Electric became the company's new controlling shareholder, which is beneficial for the company to introduce advantageous resources and enhance overall competitiveness[35] Brand Advantage The company has years of accumulated technology and experience in intelligent power distribution equipment, new energy photovoltaic power generation, and energy storage and charging devices, familiar with production processes and quality standards - Company has years of accumulated technology and experience in intelligent power distribution equipment, new energy photovoltaic power generation, and new energy storage and charging devices[36] - Capable of providing customized equipment layouts and efficient installation and commissioning services to customers[36] Talent and Management Advantage The company boasts a comprehensive marketing and service system and a high-caliber sales and service team, headquartered in Suzhou with multiple branches and outlets nationwide - Company has a comprehensive marketing and service system and a high-caliber sales and service team, headquartered in Suzhou with multiple branches and outlets nationwide[38] - Continuously strengthening market coverage, increasing product sales, brand value, and customer satisfaction through proactive marketing service strategies and network development[38] Analysis of Principal Business During the reporting period, the company's principal business revenue decreased by 33.97% year-on-year, mainly due to a decline in installation and construction and power complete equipment businesses Overview This overview section directs readers to "I. Principal Businesses Engaged in by the Company During the Reporting Period" for information on the company's main operations - For an overview of principal businesses, please refer to "I. Principal Businesses Engaged in by the Company During the Reporting Period"[39] Year-on-Year Changes in Key Financial Data The company's operating revenue decreased by 33.97% year-on-year, with operating costs decreasing by 29.71% accordingly, while selling and administrative expenses significantly increased Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 128,128,435.85 | 194,051,627.90 | -33.97% | Installation and construction and power complete equipment businesses decreased | | Operating Cost | 106,212,493.63 | 151,107,305.76 | -29.71% | Operating revenue decreased, operating costs decreased accordingly | | Selling Expenses | 12,549,634.14 | 8,999,816.59 | 39.44% | Increased new product market development expenses and accrued equity incentive expenses | | Administrative Expenses | 23,720,549.74 | 14,532,177.89 | 63.23% | Accrued equity incentive expenses | | Financial Expenses | 1,227,159.69 | 759,600.47 | 61.55% | Interest income decreased compared to the prior year period | | Income Tax Expense | -3,781,686.67 | 1,318,772.30 | -386.76% | Accrued deferred income tax assets | | R&D Investment | 15,466,490.36 | 12,727,025.15 | 21.52% | No significant change | | Net Cash Flow from Operating Activities | -62,309,551.46 | 47,673,134.13 | -230.70% | Decreased accounts receivable collection and increased payments to suppliers | | Net Cash Flow from Investing Activities | -44,586,779.13 | 36,711,387.65 | -221.45% | Increased purchases of bank structured deposits | | Net Cash Flow from Financing Activities | 3,738,034.75 | 835,190.32 | 347.57% | No shareholder dividends distributed | | Net Increase in Cash and Cash Equivalents | -103,158,295.84 | 85,219,712.10 | -221.05% | Net cash flow from both operating and investing activities significantly decreased | - Company's profit composition or sources of profit did not undergo significant changes during the reporting period[41] Products or Services Accounting for Over 10% of Revenue Installation and construction business revenue significantly decreased by 78.26% year-on-year, but its gross profit margin increased by 19.24% Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Profit Margin (%) | Year-on-Year Change in Operating Revenue (%) | Year-on-Year Change in Operating Cost (%) | Year-on-Year Change in Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Installation and Construction | 6,830,765.31 | 4,681,520.04 | 31.46% | -78.26% | -83.02% | 19.24% | | Power Complete Equipment | 82,375,319.36 | 72,097,252.49 | 12.48% | -34.56% | -26.16% | -9.96% | | Anti-theft Electricity Metering Devices | 14,672,764.35 | 11,046,817.19 | 24.71% | -19.51% | -29.58% | 10.77% | | Photovoltaic Power Generation | 10,943,017.47 | 8,966,781.43 | 18.06% | -6.00% | 28.35% | -21.93% | | Others | 7,268,861.43 | 3,476,164.59 | 52.18% | 7.83% | 10.95% | -1.34% | Analysis of Non-Principal Businesses The company's non-principal businesses primarily include investment income, non-operating expenses, other income, and credit impairment losses, with investment income being sustainable Non-Principal Business Items and Amounts | Item | Amount (CNY) | Percentage of Total Profit (%) | Explanation of Formation Reason | Is it Sustainable | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 1,882,080.82 | -6.94% | Investment income from Haiyuan project and structured deposits during holding period | Sustainable | | Non-operating Expenses | 91,411.33 | -0.34% | Late fees and liquidated damages paid | No | | Other Income | 1,344,071.79 | -4.96% | Government subsidies received | No | | Credit Impairment Losses | 2,058,500.65 | -7.59% | Accrual of bad debt provisions for accounts receivable and other receivables | No | Analysis of Assets and Liabilities At the end of the reporting period, both the company's total assets and net assets attributable to shareholders decreased, with monetary funds significantly dropping by 9.47% Significant Changes in Asset Composition Monetary funds decreased by 9.47% from the beginning of the period, primarily due to reduced accounts receivable collection, settlement of maturing notes payable, and increased purchases of structured deposits Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (CNY) | Percentage of Total Assets (%) | Amount at End of Previous Year (CNY) | Percentage of Total Assets (%) | Change in Proportion (%) | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 124,422,152.06 | 12.18% | 231,631,403.67 | 21.65% | -9.47% | Decreased accounts receivable collection, settlement of maturing notes payable, increased purchases of structured deposits | | Accounts Receivable | 305,602,612.46 | 29.93% | 310,295,404.52 | 29.01% | 0.92% | | | Inventory | 37,178,628.42 | 3.64% | 24,285,661.71 | 2.27% | 1.37% | Raw materials purchased for production not yet expensed | | Prepayments | 14,175,280.16 | 1.39% | 4,440,249.07 | 0.42% | 0.97% | Increased payments for procurement prepayments | | Other Receivables | 7,218,332.75 | 0.71% | 2,292,909.20 | 0.21% | 0.50% | Bid deposits paid not yet refunded | | Contract Liabilities | 8,936,175.31 | 0.88% | 3,975,411.70 | 0.37% | 0.51% | | | Employee Compensation Payable | 979,220.25 | 0.10% | 5,093,891.27 | 0.48% | -0.38% | Year-end bonuses accrued in prior year paid in current period | | Taxes Payable | 2,214,650.04 | 0.22% | 4,972,578.20 | 0.46% | -0.24% | VAT carried over from prior year paid in current period | Major Overseas Assets The company had no major overseas assets during the reporting period - Company had no major overseas assets during the reporting period[48] Assets and Liabilities Measured at Fair Value The company had no assets and liabilities measured at fair value during the reporting period - Company had no assets and liabilities measured at fair value during the reporting period[48] Asset Restrictions as of the End of the Reporting Period As of the end of the reporting period, the company's total restricted assets amounted to 49,574,711.12 CNY, primarily comprising other monetary funds and long-term equity investments Asset Restrictions as of the End of the Reporting Period | Restriction Category | Amount (CNY) | Remarks | | :--- | :--- | :--- | | Other Monetary Funds | 24,350,349.69 | Bank notes, letter of guarantee deposits | | Long-term Equity Investment | 25,224,361.43 | Pledged collateral | | Total | 49,574,711.12 | | Analysis of Investment Status During the reporting period, the company's investment amount was 0 CNY, a significant 100% decrease from 250,000 CNY in the prior year, with no significant equity investments, non-equity investments, derivative investments, or entrusted loans Overall Situation During the reporting period, the company's investment amount was 0 CNY, a 100% decrease compared to 250,000 CNY in the prior year Overall Investment Situation | Indicator | Amount (CNY) | | :--- | :--- | | Investment Amount in Current Reporting Period | 0.00 | | Investment Amount in Prior Year Period | 250,000.00 | | Change Rate | 100.00% | Significant Equity Investments Acquired During the Reporting Period The company had no significant equity investments during the reporting period - Company had no significant equity investments during the reporting period[50] Significant Non-Equity Investments in Progress During the Reporting Period The company had no significant non-equity investments in progress during the reporting period - Company had no significant non-equity investments in progress during the reporting period[50] Financial Assets Measured at Fair Value The company had no financial assets measured at fair value during the reporting period - Company had no financial assets measured at fair value during the reporting period[50] Use of Raised Funds The company had no use of raised funds during the reporting period - Company had no use of raised funds during the reporting period[50] Entrusted Wealth Management, Derivative Investments, and Entrusted Loans During the reporting period, the company used its own funds for entrusted wealth management in bank wealth management products, with an outstanding balance of 180 million CNY at period-end and no overdue unrecovered amounts Overview of Entrusted Wealth Management During the Reporting Period | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management (CNY 10,000) | Unmatured Balance (CNY 10,000) | Overdue Unrecovered Amount (CNY 10,000) | Impairment Amount Accrued for Overdue Unrecovered Wealth Management (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 20,000 | 18,000 | 0 | 0 | | Total | | 20,000 | 18,000 | 0 | 0 | - Company had no derivative investments during the reporting period[52] - Company had no entrusted loans during the reporting period[53] Significant Asset and Equity Sales The company did not sell significant assets or equity during the reporting period - Company did not sell significant assets during the reporting period[54] - Company did not sell significant equity during the reporting period[55] Analysis of Major Holding and Participating Companies The company's major holding subsidiaries include Suzhou Power Capacitor Co., Ltd., Jiangsu Zhongdao Electric Power Co., Ltd., and several photovoltaic power generation subsidiaries, while four non-operational subsidiaries were deregistered Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Principal Business | Registered Capital (CNY) | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Suzhou Power Capacitor Co., Ltd. | Subsidiary | High and Low Voltage Power Capacitors | 50,000,000 | 39,801,483.53 | 37,092,390.09 | 4,280,101.16 | 1,106,161.96 | 1,106,161.96 | | Jiangsu Zhongdao Electric Power Co., Ltd. | Subsidiary | Power Engineering, Photovoltaic EPC | 73,600,800 | 116,818,333.71 | 97,521,193.40 | 8,656,599.34 | -924,799.48 | -1,375,857.64 | | Suzhou Heshun Energy Investment Development Co., Ltd. | Subsidiary | New Energy Charging Facility Network Planning, Design, Construction, Investment, and Operation | 80,000,000 | 81,368,125.07 | 75,520,703.80 | 3,103,281.67 | -1,571,092.50 | -1,598,231.97 | | Dingtao Sanrui Electric Power Co., Ltd. | Subsidiary | Photovoltaic Power Generation | 2,000,000 | 68,062,068.29 | 10,104,599.88 | 4,266,344.81 | 1,258,449.47 | 876,857.47 | | Jinan Sanrui Electric Power Technology Co., Ltd. | Subsidiary | Photovoltaic Power Generation | 2,000,000 | 82,469,094.38 | -4,640,086.77 | 2,439,954.55 | -647,926.73 | -572,068.90 | | Zaozhuang Leyelüxiao Electric Power Technology Co., Ltd. | Subsidiary | Photovoltaic Power Generation | 5,000,000 | 77,710,806.63 | 7,408,552.49 | 2,747,907.15 | -378,838.81 | -93,383.95 | | Haiyuan County Zhenxing Photovoltaic Power Generation Co., Ltd. | Participating Company | Photovoltaic Power Generation | 50,000,000 | 338,122,338.41 | 105,735,285.24 | 12,954,904.35 | 2,438,663.95 | 1,963,139.20 | - During the reporting period, the company deregistered four subsidiaries with no substantial operations: Yangquan Heyi New Energy Co., Ltd., Pingding Shun Jing New Energy Co., Ltd., Guzhang Heyi New Energy Co., Ltd., and Guzhang Gaofeng Town Heyu New Energy Co., Ltd[57] Structured Entities Controlled by the Company The company had no structured entities under its control during the reporting period - Company had no structured entities under its control during the reporting period[58] Risks Faced by the Company and Countermeasures The company faces policy risks, operating performance fluctuation risks, market competition risks, operational management risks, and technology upgrade risks, and actively responds through various measures Policy Risks The company's principal businesses are influenced by national macroeconomic policies, industrial development, and infrastructure construction, where policy changes may impact production and operations - Company's principal businesses are susceptible to national macroeconomic policies, industrial development, and infrastructure construction factors[58] - Countermeasures include strengthening research and forecasting of national energy policies, power industry, and new energy-related industrial development policies, and adjusting strategic layouts in a timely manner[58] Operating Performance Fluctuation Risks The company's performance is linked to project infrastructure construction progress, with revenue recognition dependent on customer acceptance, potentially leading to extended order execution cycles and risks of uncollectible accounts receivable - Company's principal business products and services are closely related to project infrastructure construction progress, with revenue recognition dependent on customer acceptance[59] - Domestic photovoltaic business policy impacts may lead to extended order execution cycles and bad debt risks from uncollectible accounts receivable[59] - Countermeasures include intensifying accounts receivable assessment, implementing strict credit management systems, and adopting customer performance guarantees[59] Market Competition Risks The company's principal business market is highly competitive, and bidding processes may lead to fierce competition and declining gross profit margins - Company's principal business market is highly competitive, and bidding processes may lead to fierce competition and significant declines in gross profit margins[60] - Countermeasures include establishing and improving market policy and customer demand analysis mechanisms, actively exploring new businesses, and achieving differentiated competition by optimizing technology, improving service quality, and reducing costs and increasing efficiency[61] Operational Management Risks As business and projects increase, the company's management span widens, demanding higher capabilities from management, which the company addresses by improving internal controls and talent development - Increased business and projects lead to a wider management span, demanding higher management and coordination capabilities from the management team[62] - Countermeasures include improving management processes and internal control systems, strengthening risk management capabilities, optimizing human resource allocation, and enhancing talent development and incentives[62] Technology Upgrade Risks Under "new infrastructure" and "carbon neutrality" policies, technical requirements for smart grids and new power systems present uncertainties, exposing the company to technology iteration risks - Under "new infrastructure" and "carbon neutrality" policies, technical requirements for smart grids and new power systems are uncertain, exposing the company to technology iteration risks[63] - Countermeasures include establishing and improving market policy and customer demand analysis mechanisms, increasing R&D efforts, closely following major customer new technology indicator requirements, and enhancing product and service competitive advantages[63] Registration Form for Investor Relations Activities During the Reporting Period On April 22, 2025, the company hosted investors for its 2024 Annual Online Performance Briefing via an online platform, with relevant content disclosed on Juchao Information Network Registration Form for Investor Relations Activities During the Reporting Period | Reception Time | Reception Location | Reception Method | Type of Reception Object | Reception Object | Main Content Discussed and Materials Provided | Index of Basic Survey Information | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2025年04月22日 | Online remote method | Online platform for virtual communication | Other | Investors participating in the 2024 Annual Online Performance Briefing | See investor relations activity record form on Juchao Information Network for details | April 22 Juchao Information Network Investor Relations Activity Record Form (2025-001) | Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system nor disclosed a valuation enhancement plan - Company has not formulated a market value management system[65] - Company has not disclosed a valuation enhancement plan[66] Implementation of "Quality and Return Dual Improvement" Action Plan The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan - Company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan[66] Corporate Governance, Environment, and Society This section covers changes in the company's governance, profit distribution, equity incentive plans, environmental information disclosure, and social responsibility initiatives Changes in Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the company's directors, supervisors, and senior management - Company's directors, supervisors, and senior management did not change during the reporting period[67] Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - Company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[68] Implementation of Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures The company launched a restricted stock incentive plan in 2024, granting 10 million second-class restricted shares to 27 incentive recipients, and adjusted the company-level performance assessment indicators in April 2025 to include net profit - On June 27, 2024, the company approved the "2024 Restricted Stock Incentive Plan (Draft)"[69] - On August 21, 2024, the company agreed to grant 10 million second-class restricted shares to 27 incentive recipients at a price of 3.81 CNY/share[71] - On April 17, 2025, the company adjusted the company-level performance assessment for the 2024 restricted stock incentive plan, adding a net profit assessment indicator to the original operating revenue assessment[71] - Company had no employee stock ownership plans or other employee incentive measures during the reporting period[72] Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - Company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[73] Social Responsibility While pursuing economic benefits, the company actively fulfills its social responsibilities, emphasizing shareholder rights protection, employee rights protection, stakeholder interests, and environmental protection - Company emphasizes shareholder rights protection, improves corporate governance structure, operates in compliance with laws, and fulfills information disclosure obligations in a timely, truthful, accurate, and complete manner[74] - Company emphasizes employee rights protection, strictly adheres to labor laws and regulations, provides social insurance for employees, promotes a "people-oriented" management culture, and continuously implements "safety production standardization" management work[75] - Company adheres to the principle of honesty and trustworthiness, values communication and coordination with customers and suppliers, provides high-quality products, and establishes a comprehensive quality management system[77] - Company focuses on environmental protection and sustainable development, guided by the scientific development concept, building a long-term mechanism for environmental protection and energy saving, and striving to build a resource-saving and environment-friendly enterprise[78] Significant Matters This section details the company's commitments, fund occupation, external guarantees, auditor appointments, audit reports, bankruptcy, litigation, penalties, integrity, related party transactions, and significant contracts Commitments During the reporting period, the company had no unfulfilled commitments by the actual controller, shareholders, related parties, acquirers, or the company itself that were due or overdue as of the end of the reporting period - Company reported no commitments by the actual controller, shareholders, related parties, acquirers, or the company itself that were fulfilled during the reporting period or overdue as of the end of the reporting period[80] Non-Operating Fund Occupation During the reporting period, there was no non-operating occupation of listed company funds by controlling shareholders or other related parties - Company reported no non-operating occupation of listed company funds by controlling shareholders or other related parties during the reporting period[81] Irregular External Guarantees The company had no irregular external guarantees during the reporting period - Company had no irregular external guarantees during the reporting period[82] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was unaudited - Company's semi-annual report was unaudited[83] Explanation of "Non-Standard Audit Report" The company had no "non-standard audit report" issued by an accounting firm during the reporting period - Company had no "non-standard audit report" issued by an accounting firm during the reporting period[84] Explanation of "Non-Standard Audit Report" from Previous Year The company had no "non-standard audit report" related situations from the previous year during the reporting period - Company had no "non-standard audit report" related situations from the previous year during the reporting period[84] Bankruptcy Reorganization Matters The company had no bankruptcy reorganization matters during the reporting period - Company had no bankruptcy reorganization matters during the reporting period[84] Litigation Matters The company had no significant litigation, arbitration, or other litigation matters during the reporting period - Company had no significant litigation or arbitration matters during the current reporting period[85] - Company had no other litigation matters during the reporting period[85] Penalties and Rectification The company had no penalties or rectification situations during the reporting period - Company had no penalties or rectification situations during the reporting period[86] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company had no integrity issues concerning itself, its controlling shareholder, or its actual controller during the reporting period - Company had no integrity issues concerning itself, its controlling shareholder, or its actual controller during the reporting period[87] Significant Related Party Transactions During the reporting period, the company had no related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, related party creditor-debtor relationships, or transactions with financial companies - Company reported no related party transactions related to daily operations during the reporting period[87] - Company reported no related party transactions involving asset or equity acquisitions or disposals during the reporting period[88] - Company reported no related party transactions involving joint external investments during the reporting period[89] - Company reported no related party creditor-debtor relationships during the reporting period[90] - Company and its related financial companies, or financial companies controlled by the company, had no deposits, loans, credit lines, or other financial business with related parties[91][92] - Company reported no other significant related party transactions during the reporting period[93] Significant Contracts and Their Performance During the reporting period, the company had no trusteeship or contracting situations, earned 3,560,729.73 CNY in rental income, incurred 1,059,716.43 CNY in short-term lease expenses, and provided a pledge guarantee of 60 million CNY for its participating company Trusteeship, Contracting, and Leasing Matters The company had no trusteeship or contracting situations during the reporting period, earned 3,560,729.73 CNY in rental income, and incurred 1,059,716.43 CNY in short-term lease expenses - Company had no trusteeship situations during the reporting period[94] - Company had no contracting situations during the reporting period[95] - During the reporting period, the company, as a lessor, earned 3,560,729.73 CNY in rental income, and as a lessee, incurred 1,059,716.43 CNY in short-term lease expenses[96] - Company leased property from Starship Industrial Co., Ltd. for R&D offices for a term of 2 years, totaling 2.316 million CNY, constituting a related party transaction[96] Significant Guarantees The company and its subsidiaries' total external guarantees amounted to 67.4268 million CNY, representing 10.56% of the company's net assets, including a pledge guarantee of 60 million CNY for its participating company External Guarantees by the Company and its Subsidiaries | Name of Guaranteed Party | Guarantee Limit (CNY 10,000) | Actual Guarantee Amount (CNY 10,000) | Guarantee Type | Guarantee Period | Is it Fulfilled | Is it a Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Haiyuan County Zhenxing Photovoltaic Power Generation Co., Ltd. | 13,500 | 6,000 | Pledge | | No | No | | Jiangsu Zhongdao Electric Power Co., Ltd. | 40,000 | 1,758.88 (Fulfilled) | | One year | Yes | No | | Jiangsu Zhongdao Electric Power Co., Ltd. | 40,000 | 742.68 (Not Fulfilled) | | One year | No | No | | Total Actual Guarantee Balance at End of Reporting Period | | 6,742.68 | | | | | | Percentage of Total Actual Guarantee Amount to Company's Net Assets | | 10.56% | | | | | - Company's controlling subsidiary, Zhongdao Electric Power, provided an external guarantee for the acquisition of a 20% equity stake in Haiyuan County Zhenxing Photovoltaic Power Generation Co., Ltd., with the collateral owner now changed to Ningxia Hanguang New Energy Co., Ltd[100][101] Significant Contracts in Daily Operations This section does not disclose specific information on significant contracts in daily operations - This section does not disclose specific information on significant contracts in daily operations[103] Other Significant Contracts The company signed a hydrogen fuel cell system procurement contract with Hunan CRRC Zhixing Technology Co., Ltd. for a total amount of 108.3 million CNY, which is currently being performed Other Significant Contracts | Company Name | Counterparty Name | Subject Matter | Signing Date | Total Contract Amount (CNY 10,000) | Transaction Price Principle | Is it a Related Party Transaction | Performance Status as of End of Reporting Period | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Suzhou Industrial Park Heshun Electric Co., Ltd. | Hunan CRRC Zhixing Technology Co., Ltd. | Hydrogen Fuel Cell System | 2024年03月01日 | 10,830 | Determined through negotiation based on independent transaction principles and market conditions | No | The contract is currently being performed normally. As of the end of the reporting period, some hydrogen fuel cell systems have been delivered, but no sales revenue has been recognized yet. | Explanation of Other Significant Matters The company won the bid for the mobile power integrated system for the "Jingneng Lingjin Dual Carbon Mechanical Electrification Project" and signed an equipment procurement contract on July 10, 2025, with a total tax-inclusive contract price of 195.489 million CNY - On April 23, 2025, the company disclosed its pre-winning bid for the "Jingneng Lingjin Dual Carbon Mechanical Electrification Project"[106] - On April 25, 2025, the company received the bid winning notice, with the winning bid content being the mobile power integrated system[106] - On July 10, 2025, the company signed an "Equipment Procurement Contract" with Shanghai Jingneng Lingjin New Energy Development Co., Ltd., with a total tax-inclusive contract price of 195.489 million CNY[106] Significant Matters of Company Subsidiaries The company had no significant matters of subsidiaries requiring disclosure during the reporting period - Company had no significant matters of subsidiaries requiring disclosure during the reporting period[107] Share Changes and Shareholder Information This section details the company's share capital changes, securities issuance, shareholder numbers, top ten shareholders, and changes in shareholdings of directors, supervisors, and senior management Share Change Situation During the reporting period, the company's total share capital remained unchanged, with the number and proportion of restricted and unrestricted shares also constant Share Change Situation | Item | Quantity Before This Change (Shares) | Proportion Before This Change (%) | Increase/Decrease in This Change (Shares) | Quantity After This Change (Shares) | Proportion After This Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 1,095,840.00 | 0.43% | 0 | 1,095,840.00 | 0.43% | | Of which: Shares held by domestic natural persons | 1,095,840.00 | 0.43% | 0 | 1,095,840.00 | 0.43% | | II. Unrestricted Shares | 252,788,760.00 | 99.57% | 0 | 252,788,760.00 | 99.57% | | Of which: RMB Ordinary Shares | 252,788,760.00 | 99.57% | 0 | 252,788,760.00 | 99.57% | | III. Total Shares | 253,884,600.00 | 100.00% | 0 | 253,884,600.00 | 100.00% | Restricted Share Change Situation | Shareholder Name | Number of Restricted Shares at Beginning of Period (Shares) | Number of Restricted Shares at End of Period (Shares) | Reason for Restriction | Proposed Date for Lifting Restriction | | :--- | :--- | :--- | :--- | :--- | | Xiao Min | 899,250 | 899,250 | Executive Lock-up Shares | 25% of total shares held at year-end are unlocked on the first trading day of each year | | Li Liangren | 89,587 | 89,587 | Executive Lock-up Shares | 25% of total shares held at year-end are unlocked on the first trading day of each year | | Ren Yunya | 87,597 | 87,597 | Executive Lock-up Shares | 25% of total shares held at year-end are unlocked on the first trading day of each year | | Xu Shujie | 19,406 | 19,406 | Executive Lock-up Shares | 25% of total shares held at year-end are unlocked on the first trading day of each year | | Total | 1,095,840 | 1,095,840 | | | Securities Issuance and Listing The company had no securities issuance or listing situations during the reporting period - Company had no securities issuance or listing situations during the reporting period[113] Number of Shareholders and Shareholding At the end of the reporting period, the total number of ordinary shareholders was 17,293, with Yao Jianhua holding 23.85% and Suzhou Green Pulse Electric Holding (Group) Co., Ltd. holding 20.00% - Total number of ordinary shareholders at the end of the reporting period was 17,293[115] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio (%) | Number of Shares Held at End of Reporting Period (Shares) | Number of Unrestricted Shares Held (Shares) | Share Status | Pledged, Marked, or Frozen Quantity (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yao Jianhua | Domestic Natural Person | 23.85% | 60,553,999.00 | 60,553,999.00 | Not applicable | 0 | | Suzhou Green Pulse Electric Holding (Group) Co., Ltd. | Domestic Non-State-Owned Legal Person | 20.00% | 50,776,920.00 | 50,776,920.00 | Pledged | 33,004,998.00 | | Shen Xin | Domestic Natural Person | 7.51% | 19,071,400.00 | 19,071,400.00 | Not applicable | 0 | | BARCLAYS BANK PLC | Overseas Legal Person | 0.89% | 2,265,939.00 | 2,265,939.00 | Not applicable | 0 | | China Minsheng Banking Corp., Ltd. - Jinyuan Shunan Yuanqi Flexible Allocation Mixed Securities Investment Fund | Other | 0.50% | 1,270,000.00 | 1,270,000.00 | Not applicable | 0 | - Yao Jianhua, Qin Yong, and Yao Yao are parties acting in concert; Shen Xin, Shen Sisi, and Du Jie are parties acting in concert[116] - Yao Jianhua irrevocably waived voting rights for his 60,553,999 shares, granting Green Pulse Electric control of Heshun Electric[116] Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period - Company's directors, supervisors, and senior management shareholdings did not change during the reporting period[118] Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller did not change during the reporting period - Company's controlling shareholder did not change during the reporting period[119] - Company's actual controller did not change during the reporting period[119] Preferred Share Information The company had no preferred shares during the reporting period - Company had no preferred shares during the reporting period[120] Bond-Related Information The company had no bond-related information during the reporting period - Company had no bond-related information during the reporting period[122] Financial Report This section presents the company's unaudited financial statements, including balance sheets, income statements, cash flow statements, and detailed notes on accounting policies and financial items Audit Report The company's semi-annual financial report was unaudited - Company's semi-annual financial report was unaudited[124] 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 owner's equity Consolidated Balance Sheet Summary as of June 30, 2025 | Item | Balance at Period-End (CNY) | Balance at Period-Beginning (CNY) | | :--- | :--- | :--- | | Total Current Assets | 670,786,814.81 | 714,115,657.87 | | Total Non-Current Assets | 350,326,577.76 | 355,557,596.92 | | Total Assets | 1,021,113,392.57 | 1,069,673,254.79 | | Total Current Liabilities | 352,420,684.78 | 390,413,922.47 | | Total Non-Current Liabilities | 20,832,120.73 | 21,037,932.61 | | Total Liabilities | 373,252,805.51 | 411,451,855.08 | | Total Owner's Equity Attributable to Parent Company | 638,283,268.33 | 648,248,739.77 | | Minority Interests | 9,577,318.73 | 9,972,659.94 | | Total Owner's Equity | 647,860,587.06 | 658,221,399.71 | Consolidated Income Statement Summary for the First Half of 2025 | Item | First Half of 2025 (CNY) | First Half of 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 128,128,435.85 | 194,051,627.90 | | Total Operating Cost | 160,443,196.36 | 189,113,322.56 | | Operating Profit | -27,027,934.99 | 2,753,336.58 | | T