东方通(300379) - 2025 Q2 - 季度财报

Part I Important Notes, Table of Contents, and Definitions This section provides important disclaimers, outlines the report's structure, and defines key terms used throughout the document Important Notes The company's board, supervisory board, and senior management guarantee the semi-annual report's truthfulness, accuracy, and completeness, but independent directors abstained due to an ongoing investigation into alleged financial misstatements and adverse audit opinions on the 2024 financial and internal control reports - Independent directors Cheng Xianquan and Niu Zhongdang abstained from voting on the company's 2025 semi-annual report and its summary, citing an ongoing CSRC investigation into alleged financial misstatements in periodic reports, a disclaimer of opinion on the 2024 financial statements, an adverse opinion on the internal control report, and a qualified opinion on related party fund occupation, which prevented them from verifying the semi-annual report's truthfulness, accuracy, and completeness[4] - The company faces significant mandatory delisting risk due to an ongoing CSRC investigation initiated on April 14, 2025, for alleged financial misstatements in periodic reports[7] - The company faces financial delisting risk compounded by other risk warnings, as the 2024 audit report received a disclaimer of opinion and the internal control audit report received an adverse opinion[8] - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the period[9] Table of Contents This section outlines the report's overall structure, comprising eight main chapters covering important notes, financial indicators, management discussion and analysis, corporate governance, significant events, share changes, bond information, and financial reports Definitions This section defines key terms and acronyms used in the report, including company names, reporting periods, laws, regulations, regulatory bodies, accounting firms, subsidiaries, and various technology and industry concepts such as middleware, cybersecurity, AI, cloud computing, and industrial internet Part II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and a summary of its key financial performance and position for the reporting period I. Company Profile The company's stock abbreviation changed from 'Tongtech' to '*ST Tongtech', while the stock code remains 300379, with Huang Yongjun as the legal representative, listed on the Shenzhen Stock Exchange - The company's stock abbreviation has changed from 'Tongtech' to 'ST Tongtech', with the stock code remaining 300379[19][25] - The company's legal representative is Huang Yongjun[19] II. Contacts and Contact Information The Board Secretary is Xu Shaopu and the Securities Affairs Representative is Han Jing, both located at 20th Floor, Yinke Building, No. 38 Haidian Street, Haidian District, Beijing, with consistent phone/fax numbers and email tongtech@tongtech.com - The Board Secretary is Xu Shaopu, and the Securities Affairs Representative is Han Jing[20] - The company's contact address is 20th Floor, Yinke Building, No. 38 Haidian Street, Haidian District, Beijing, and the email is tongtech@tongtech.com[20][21] III. Other Information The company's registered address changed to Room 311, Main Building, No. 139 Fengtailukou, Fengtai District, Beijing, while the office address remains 20th Floor, Yinke Building, No. 38 Haidian Street, Haidian District, Beijing; during the reporting period, the stock abbreviation changed to '*ST Tongtech' due to delisting risk and other risk warnings - The company's registered address is Room 311, Main Building, No. 139 Fengtailukou, Fengtai District, Beijing, and its office address is 20th Floor, Yinke Building, No. 38 Haidian Street, Haidian District, Beijing[21] - Effective May 6, 2025, the company's stock was subject to 'delisting risk warning' and 'other risk warnings', changing its abbreviation from 'Tongtech' to 'ST Tongtech'[25] IV. Key Accounting Data and Financial Indicators In the first half of 2025, the company's operating revenue grew by 48.85% to CNY 240 million, net loss attributable to shareholders narrowed by 66.80% to CNY -55.16 million, net cash flow from operating activities turned positive, while total assets and net assets attributable to shareholders slightly decreased Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (CNY) | Prior Year Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 239,929,168.10 | 161,184,732.53 | 48.85% | | Net Profit Attributable to Shareholders | -55,158,035.97 | -166,134,971.77 | 66.80% | | Net Profit Attributable to Shareholders Excluding Non-recurring Gains and Losses | -78,398,895.75 | -186,528,490.02 | 57.97% | | Net Cash Flow from Operating Activities | 22,949,517.56 | -178,984,131.50 | 112.82% | | Basic Earnings Per Share (CNY/share) | -0.0989 | -0.2965 | 66.64% | | Diluted Earnings Per Share (CNY/share) | -0.0989 | -0.2965 | 66.64% | | Weighted Average Return on Net Assets | -1.78% | -4.57% | 2.79% | | Period-End Indicators | Current Period-End (CNY) | Prior Year-End (CNY) | Change (%) | | Total Assets | 3,425,016,771.29 | 3,566,712,035.79 | -3.97% | | Net Assets Attributable to Shareholders | 3,081,458,377.34 | 3,123,830,256.43 | -1.36% | V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under International or overseas accounting standards and those prepared under Chinese accounting standards - The 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[27] - The 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[28] VI. Non-recurring Gains and Losses and Amounts The company's total non-recurring gains and losses for H1 2025 amounted to CNY 23.24 million, primarily from government grants and gains on disposal of financial assets, while non-current asset disposals and non-operating income/expenses had a negative contribution Non-recurring Gains and Losses for H1 2025 | Item | Amount (CNY) | | :--- | :--- | | Gains and Losses on Disposal of Non-current Assets | -26,328.17 | | Government Grants Recognized in Current Profit and Loss | 23,655,226.29 | | Fair Value Changes and Disposal Gains/Losses on Financial Assets and Liabilities Held by Non-financial Enterprises (excluding effective hedging related to normal business operations) | 5,115,168.25 | | Other Non-operating Income and Expenses Apart from the Above | -1,388,155.62 | | Less: Income Tax Impact | 4,115,050.97 | | Total | 23,240,859.78 | Part III Management Discussion and Analysis This section provides an in-depth analysis of the company's main operations, core competencies, financial performance, investment activities, and risks during the reporting period I. Main Businesses During the Reporting Period Tongtech, a leader in the middleware industry, primarily offers basic software middleware, network information security, and industry digital products, solutions, and services; during the period, the company accelerated towards 'cloud-native + AI' in basic software, focused on full-lifecycle monitoring and intelligent handling in network information security, and expanded digital transformation into smart energy, public safety, smart emergency, and military informatization - The company's main businesses include basic software middleware, network information security, and industry digital products, solutions, and services[32] - The company's middleware product system is accelerating towards 'cloud-native + AI', focusing on developing intelligent capabilities for middleware products based on large model technology and building an intelligent agent platform[35] - Network and information security business covers full-lifecycle information security monitoring, including 'monitoring, analysis, early warning, and disposal', and applies AI large model technology to enhance the effectiveness of combating telecom network fraud[37][39][42] - Digital transformation business covers areas such as smart energy, public safety, smart emergency response, and military informatization, providing full-stack digital intelligence solutions[44][45][46][47][48] (I) Main Businesses Engaged In Tongtech, as a pioneer and leader in China's middleware industry and a leading provider of comprehensive security and industry informatization solutions, offers advanced basic software middleware, network information security, and industry digital products, solutions, and services - Tongtech is a pioneer and leader in China's middleware industry, providing basic software middleware, network information security, and industry digital products, solutions, and services[32] (II) Main Products and Their Applications The company's product portfolio spans three core areas: basic software middleware, network information security, and digital transformation; middleware products are accelerating towards 'cloud-native + AI', network information security products leverage DPI, big data, and AI for full-lifecycle monitoring and governance, while digital transformation provides intelligent solutions for energy, public safety, military, and emergency management sectors - Basic software middleware continues to enhance competitiveness in the Xinchuang market, undergoes cloud-native technology upgrades, and focuses on developing intelligent capabilities for middleware products based on large model technology in the AI direction, building an intelligent agent platform[35] - Network and information security products leverage DPI deep packet inspection and full traffic analysis capabilities, combined with big data, AI, and natural language understanding technologies, to achieve precise identification of network traffic and content, forming full-lifecycle information security monitoring products covering 'monitoring, analysis, early warning, and disposal'[37] - In telecom network fraud governance, the company continues to invest in AI technology applications, launching its self-developed 'Xuanwu Lake Anti-Fraud Large Model' to achieve intelligent and automated upgrades in anti-fraud operations[42] - Digital transformation business covers areas such as smart energy, public safety, national defense military informatization, and smart emergency response, providing stable, efficient, and reliable digital transformation solutions[44] (III) Competitive Position in the Industry Tongtech has maintained the top market share in middleware for 16 consecutive years, is a major player in cybersecurity leveraging its technological expertise and operator service experience, and has become a significant supplier in niche digital transformation sectors - The company has ranked first in market share among domestic middleware vendors for 16 consecutive years[49] - In the cybersecurity domain, the company, with its long-term technological accumulation and extensive operator service experience, highlights differentiated competitive advantages, providing stable services to the three major operators and standing as one of the main participants in the industry[50] - In the digital transformation domain, the company, leveraging its technological accumulation and deep understanding of industry business, is gradually becoming a significant supplier for public safety, smart energy, military informatization, and other businesses[51] II. Core Competitiveness Analysis Tongtech's core competitiveness lies in its strong independent R&D capabilities, continuous leadership in middleware and cybersecurity technological innovation, active construction of a multi-dimensional ecosystem, deep integration of industry-academia-research, and an extensive training and technical service system - During the reporting period, the company added 10 software copyrights and 2 invention patents, accumulating over 260 software copyrights and over 100 invention patents in the middleware domain[52] - The company leads or participates in the formulation of multiple national, group, and industry standards for middleware, and promotes the construction of the 'Middleware + AI' capability framework[52] - The company actively builds the 'Tongtech Ecosystem Alliance', adding 47 new members during the reporting period for a total of 364 members, deepening compatibility and adaptation with mainstream domestic basic software and hardware vendors such as chips, databases, operating systems, and cloud platforms, with 8,568 cumulative completions and 1,037 new additions in the current period[56][57] - The project 'Research and Application of Multi-modal Information Perception and Analysis System for Complex Scenarios', jointly completed by the company with Beijing University of Posts and Telecommunications and Beihang University, has reached international advanced levels, with some technologies in a leading international position[59] - The company has deployed service outlets in over 30 provincial regions nationwide, and has been awarded 'No. 1 in Middleware User Satisfaction' by Chinese IT users for 14 consecutive years[60] III. Analysis of Main Business In H1 2025, the company's operating revenue increased by 48.85%, and net loss narrowed by 66.80%, primarily driven by Xinchuang industry development and market demand recovery; the company achieved market expansion in basic software, network information security, and digital transformation, continuously enhancing product capabilities and widely applying AI technology to empower its businesses, with high gross margins in basic software and security products, and significant revenue growth in digital transformation - In the first half of 2025, the company achieved operating revenue of CNY 239.93 million, a year-on-year increase of 48.85%; net profit attributable to shareholders was CNY -55.16 million, with the loss narrowing by 66.80% year-on-year[61] - The basic software middleware business continued to deepen its presence in the government and enterprise market, successfully entering the Southern Power Grid market for the first time[62] - The network information security business successfully won the bid for a certain operator's information security smart portal platform R&D and procurement project, and launched the 'Tongtech Xuanwu Lake Anti-Fraud Large Model' to expand into multiple market segments[63] - The company released the Tongtech Intelligent Agent Platform (TongAgentPlatform), helping to solve the 'last mile' challenge of AI applications, and continued R&D work on its fundraising projects[65] - The company has fully integrated large model capabilities across its middleware, network information security, and digital transformation businesses, achieving intelligent upgrades[68][74][79] Year-on-Year Changes in Key Financial Data for H1 2025 | Indicator | Current Period (CNY) | Prior Year Period (CNY) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 239,929,168.10 | 161,184,732.53 | 48.85% | Development of Xinchuang industry, recovery in customer demand, growth across all business segments | | Net Profit Attributable to Shareholders | -55,158,035.97 | -166,134,971.77 | 66.80% | Loss narrowed | | Net Cash Flow from Operating Activities | 22,949,517.56 | -178,984,131.50 | 112.82% | Significant increase in sales collection | | R&D Investment | 82,804,705.08 | 126,747,435.10 | -34.67% | Optimized some R&D personnel | | Financial Expenses | -3,188,087.38 | -8,938,640.53 | 64.33% | Decrease in deposit interest income | | Income Tax Expense | 714,324.46 | -15,058,602.95 | 104.74% | Increase in current income tax expense and decrease in deferred income tax expense recognized for losses | Breakdown by Product or Service for H1 2025 | Product or Service | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Margin (%) | Operating Revenue Year-on-Year Change (%) | Operating Cost Year-on-Year Change (%) | Gross Margin Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Basic Software | 132,846,359.61 | 1,634,899.25 | 98.77% | 44.05% | -47.78% | 2.16% | | Security Products | 60,707,638.95 | 22,045,509.95 | 63.69% | 60.57% | 25.04% | 10.33% | | Digital Transformation | 46,375,169.54 | 28,999,966.65 | 37.47% | 48.86% | 21.65% | 13.99% | Composition of Main Business Costs for H1 2025 | Cost Component | Current Period Amount (CNY) | Proportion of Operating Cost (%) | Prior Year Period Amount (CNY) | Proportion of Operating Cost (%) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Purchased Software and Hardware | 8,504,099.54 | 16.14% | 6,672,041.07 | 14.96% | 27.46% | | Labor Costs | 33,952,319.38 | 64.45% | 24,294,713.70 | 54.47% | 39.75% | | Outsourced Services | 10,223,956.93 | 19.41% | 13,634,146.58 | 30.57% | -25.01% | | Total | 52,680,375.85 | 100.00% | 44,600,901.35 | 100.00% | 18.12% | IV. Analysis of Non-Main Business The company had no non-main business analysis during the reporting period V. Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets and net assets attributable to shareholders both decreased; monetary funds decreased by 14.54% primarily due to purchases of structured deposits and repayment of bank loans; accounts receivable decreased by 2.47% mainly due to increased sales collection; inventories increased by 2.64% primarily due to increased goods issued and labor costs not yet recognized as revenue; short-term borrowings decreased by 1.64% mainly due to repayment of bank loans Significant Changes in Asset Composition | Item | Current Period-End Amount (CNY) | Proportion of Total Assets (%) | Prior Year-End Amount (CNY) | Proportion Change (%) | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 1,081,871,748.17 | 31.59% | 1,645,287,699.34 | -14.54% | Purchase of structured deposits and repayment of bank loans | | Accounts Receivable | 587,600,140.80 | 17.16% | 700,107,070.95 | -2.47% | Increase in sales collection | | Inventories | 246,150,522.50 | 7.19% | 162,313,716.27 | 2.64% | Increase in goods issued and labor costs not yet recognized as revenue | | Short-term Borrowings | 11,532,150.34 | 0.34% | 70,611,865.91 | -1.64% | Repayment of bank loans | - At the end of the reporting period, some of the company's assets, including monetary funds and fixed assets, were restricted, primarily comprising restricted funds for performance bonds, letters of guarantee, and fixed assets pledged as collateral[89] VI. Analysis of Investment Status During the reporting period, the company's total investment decreased by 12.04% year-on-year, with primary investment activities being the purchase and sale of financial assets measured at fair value; the overall utilization rate of raised funds was 23.68%, with a change in use for some funds, reducing the investment scale for the 'AI-based Next-Generation Sustainable Operations Security Product Development Project' and reallocating funds to implement the new 'TongJDK and Industrial IoT Middleware Development Project' Changes in Total Investment | Indicator | Investment Amount in Current Period (CNY) | Investment Amount in Prior Year Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Total Investment | 1,609,588,314.61 | 1,830,000,000.00 | -12.04% | Financial Assets Measured at Fair Value | Asset Category | Period-End Amount (CNY) | Source of Funds | | :--- | :--- | :--- | | Structured Deposits | 630,000,000.00 | Own Funds, Raised Funds | Overall Utilization of Raised Funds | Year of Fundraising | Total Raised Funds (CNY 10,000) | Net Raised Funds (CNY 10,000) | Total Raised Funds Cumulatively Used (CNY 10,000) | Utilization Rate of Raised Funds at Period-End (%) | Total Raised Funds with Changed Use (CNY 10,000) | Proportion of Total Raised Funds with Changed Use (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2023 | 220,000 | 216,922.07 | 51,374.72 | 23.68% | 28,331.89 | 13.06% | - The company reduced the investment scale for the 'AI-based Next-Generation Sustainable Operations Security Product Development Project' and reallocated CNY 283.32 million of raised funds to implement the new 'TongJDK and Industrial IoT Middleware Development Project'[105] VII. Disposal of Significant Assets and Equity During the reporting period, the company did not dispose of significant assets but sold its equity in Shanghai Tongban Information Service Co., Ltd. for CNY 109.94 million, which helped replenish working capital and aligned with the company's development strategy Disposal of Significant Equity | Equity Disposed Of | Disposal Date | Transaction Price (CNY 10,000) | Impact of Disposal on the Company | | :--- | :--- | :--- | :--- | | Shanghai Tongban Information Service Co., Ltd. | 2025/03/14 | 10,993.88 | Beneficial for replenishing the company's working capital, aligning with the company's development strategy and business plan, and positively impacting the company's cash flow and net assets | VIII. Analysis of Major Holding and Participating Companies The company's major subsidiaries include Beijing Tongtech Network Security Technology Co., Ltd. and Beijing Tongtech Software Co., Ltd.; Beijing Tongtech Network Security Technology Co., Ltd. achieved operating revenue of CNY 86.93 million and net profit of CNY 4.04 million during the period, while Beijing Tongtech Software Co., Ltd. achieved operating revenue of CNY 23.73 million and a net loss of CNY -36.81 million Financial Performance of Major Subsidiaries | Company Name | Company Type | Main Business | Registered Capital (CNY) | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Tongtech Network Security Technology Co., Ltd. | Subsidiary | Security Products | 500,000,000 | 978,457,146.01 | 682,350,585.82 | 86,933,791.67 | 6,073,141.87 | 4,043,509.59 | | Beijing Tongtech Software Co., Ltd. | Subsidiary | Basic Software | 100,000,000 | 123,169,593.41 | -176,354,223.12 | 23,730,308.65 | -36,478,269.47 | -36,808,591.98 | IX. Information on Structured Entities Controlled by the Company The company had no controlled structured entities during the reporting period X. Risks Faced by the Company and Countermeasures The company faces multiple risks, including mandatory delisting risk due to a CSRC investigation, financial delisting risk compounded by other risk warnings from a disclaimer of opinion and adverse internal control report, macroeconomic changes, intensified industry competition, loss of key technical personnel, R&D uncertainties, management challenges from business expansion, seasonal performance fluctuations, goodwill impairment, and control stability risks; the company has implemented measures such as active cooperation with investigations, strengthening internal controls, monitoring policies, enhancing innovation, and talent incentives to address these - The company faces significant mandatory delisting risk due to an ongoing CSRC investigation for alleged financial misstatements in periodic reports[113] - The company has been subject to delisting risk warnings and other risk warnings because the 2024 audit report received a disclaimer of opinion and the internal control audit report received an adverse opinion[114] - The company faces risks such as macroeconomic changes, intensified industry competition, loss of key technical personnel, R&D uncertainties, management risks due to business expansion, seasonal performance fluctuations, goodwill impairment, and company control stability[8][116][117][118][119][121][122][123][124] - The company will actively cooperate with the CSRC investigation, strengthen internal control construction, continuously innovate independently, expand markets, and optimize talent incentive mechanisms to mitigate risks[113][115][116][117][118][119][121][122][123][124] XI. Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period On March 6, 2025, the company hosted 27 institutional investor representatives, including Guosen Securities, Essence Fund, and Bosera Asset Management, via online conference, discussing the 2024 annual performance forecast, company operations, business development, and the TongAgentPlatform intelligent agent platform - On March 6, 2025, the company hosted 27 institutional investors via online conference, discussing the 2024 annual performance forecast, company operations and business development, and the TongAgentPlatform intelligent agent platform[125][126] XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has formulated the 'Market Value Management System', approved by the board on April 29, 2025, to regulate market value management and protect the legitimate rights of the company and investors; the company has not disclosed a valuation enhancement plan - The company has formulated the 'Market Value Management System', which was approved by the board on April 29, 2025[127] - The company has not disclosed a valuation enhancement plan[127] XIII. Implementation of 'Dual Improvement in Quality and Returns' Action Plan The company has not disclosed an announcement regarding the 'Dual Improvement in Quality and Returns' action plan - The company has not disclosed an announcement regarding the 'Dual Improvement in Quality and Returns' action plan[128] Part IV Corporate Governance, Environment, and Society This section details changes in the company's directors, supervisors, and senior management, profit distribution plans, employee incentive schemes, environmental disclosures, and social responsibility initiatives I. Changes in Directors, Supervisors, and Senior Management During the reporting period, changes occurred in the company's senior management: Huang Yongjun resigned as General Manager on January 23, 2025, due to job relocation, and Sun Jiming resigned as Chief Financial Officer on April 29, 2025, for personal reasons Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Huang Yongjun | General Manager | Resignation | 2025年01月23日 | Job Relocation | | Sun Jiming | Chief Financial Officer | Resignation | 2025年04月29日 | Personal Reasons | II. Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Period The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[130] III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company's 2023 stock option incentive plan was terminated and all remaining stock options cancelled on May 7, 2025, due to unfulfilled exercise conditions; the 2025 stock option incentive plan was also terminated and all stock options cancelled on July 4, 2025, as the 2024 audit report received a non-standard opinion, rendering it unsuitable for continued implementation; the company pledges not to review or disclose any equity incentive plans within three months from the date the termination of this plan is approved by the shareholders' meeting - The 2023 stock option incentive plan had some stock options cancelled on May 23, 2025, due to unfulfilled exercise conditions for the first exercise period, and the remaining stock options were fully cancelled and the plan self-terminated on May 7, 2025, as conditions for the second exercise period were not met[134][135] - The 2025 stock option incentive plan was terminated and all stock options cancelled on July 4, 2025, as the company's 2024 audit report received a disclaimer of opinion and the internal control audit report received an adverse opinion, rendering it unsuitable for continued implementation[138][139] - The company pledges not to review or disclose any equity incentive plans within three months from the date the termination of this incentive plan is approved by the shareholders' meeting[138] IV. Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[141] V. Social Responsibility The company actively fulfills its social responsibilities, including timely, accurate, truthful, and complete information disclosure, valuing reasonable investor returns, adhering to a people-oriented talent philosophy, respecting and safeguarding employee rights, and consistently operating lawfully, actively paying taxes, and supporting local economic development - The company strictly adheres to legal and regulatory requirements for information disclosure and communicates with investors through various channels to enhance transparency and integrity[141] - The company values reasonable investor returns and has formulated relatively stable profit distribution policies and dividend plans[141] - The company adheres to a people-oriented talent philosophy, complies with labor laws and regulations, focuses on employee health, safety, and satisfaction, and enhances employee skills through training[141] - The company consistently operates lawfully, actively pays taxes, creates employment opportunities, and supports local economic development[141] Part V Significant Matters This section covers significant events including commitments, related party transactions, legal proceedings, penalties, and other material developments affecting the company I. Commitments Fulfilled and Overdue Unfulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and Other Committed Parties During and as of the End of the Reporting Period During the reporting period, there were no commitments fulfilled or overdue unfulfilled by the company's actual controller, shareholders, related parties, acquirers, or other committed parties - During the reporting period, there were no commitments fulfilled or overdue unfulfilled by the company's actual controller, shareholders, related parties, acquirers, or other committed parties[143] II. 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 - During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the listed company[144] III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[145] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[148] V. Explanation by the Board of Directors, Supervisory Board, and Audit Committee Regarding the Accounting Firm's 'Non-Standard Audit Report' for the Current Period During the reporting period, there was no explanation by the Board of Directors, Supervisory Board, or Audit Committee regarding the accounting firm's 'non-standard audit report' for the current period VI. Board of Directors' Explanation Regarding the Prior Year's 'Non-Standard Audit Report' The company's board respects the disclaimer of opinion issued by the audit firm for the 2024 annual report and highly values its implications; the company will actively cooperate with the CSRC investigation, strengthen internal control, optimize financial reporting systems, enhance management training, and continuously innovate and expand markets to mitigate adverse factors and protect company and investor interests - The company's board respects the disclaimer of opinion issued by the audit firm for the 2024 annual report and is actively taking measures to mitigate the impact of related matters[146] - The company will actively cooperate with the CSRC investigation, strengthen internal control construction, optimize financial reporting systems and processes, and enhance supervision and inspection of operations such as fund management and significant contracts[146][147] - The company will strengthen training for management personnel on laws, regulations, and company rules, enhancing the level of standardized operations[149] - The company will continue to adhere to independent innovation, based on the 'Security+', 'Data+', and 'Intelligence+' product systems, continuously improving its layout in basic software, network information security, and AI intelligence, and expanding into emerging markets[149] VII. Bankruptcy and Reorganization Matters The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[150] VIII. Litigation Matters The company had no significant litigation or arbitration matters in the current reporting period - The company had no significant litigation or arbitration matters in the current reporting period[151] IX. Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[151] X. Integrity Status of the Company, its Controlling Shareholders, and Actual Controller During the reporting period, there were no integrity issues concerning the company, its controlling shareholders, or actual controller - During the reporting period, there were no integrity issues concerning the company, its controlling shareholders, or actual controller[152] XI. Significant Related Party Transactions During the reporting period, the company engaged in related party transactions involving purchases/sales of goods, acceptance/provision of services, and related party guarantees; the company purchased services of CNY 2.47 million from Guangzhou Ruifan Technology Co., Ltd., provided services of CNY 0.40 million to Shanghai Xinfang Smart System Co., Ltd., and provided guarantees totaling CNY 150 million for Beijing Taice Technology Co., Ltd. and Beijing Tongtech Network Security Technology Co., Ltd. Table of Purchases/Sales of Goods and Acceptance/Provision of Services | Related Party | Related Transaction Content | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | :--- | | Guangzhou Ruifan Technology Co., Ltd. | Purchase of Services | 2,472,726.13 | 15,018.11 | | Guangzhou Ruifan Technology Co., Ltd. | Purchase of Products | | 1,268,867.26 | | Beijing Honglian Technology Co., Ltd. | Purchase of Services | | 20,500.00 | Table of Sales of Goods/Provision of Services | Related Party | Related Transaction Content | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | :--- | | Shanghai Xinfang Smart System Co., Ltd. | Provision of Services | 398,160.00 | | Related Party Guarantees | Guaranteed Party | Guaranteed Amount (CNY) | Guarantee Start Date | Guarantee End Date | Is Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Beijing Taice Technology Co., Ltd. | 50,000,000.00 | 2024年08月27日 | 2025年08月27日 | No | | Beijing Tongtech Network Security Technology Co., Ltd. | 50,000,000.00 | 2024年08月27日 | 2025年08月27日 | No | | Beijing Tongtech Network Security Technology Co., Ltd. | 50,000,000.00 | 2024年09月23日 | 2026年05月08日 | No | XII. Significant Contracts and Their Performance During the reporting period, the company had no entrustment, contracting, or leasing matters, nor any significant guarantees or major contracts in ordinary operations - The company had no entrustment, contracting, or leasing situations during the reporting period[159][160][161] - The company had no significant guarantee situations during the reporting period[162] - The company had no major contracts in ordinary operations during the reporting period[163] XIII. Explanation of Other Significant Matters On April 14, 2025, the company was investigated by the CSRC for alleged financial misstatements in periodic reports, posing a significant mandatory delisting risk; additionally, on August 6, 2025, the company's actual controller and chairman, Mr. Huang Yongjun, was also investigated by the CSRC for alleged information disclosure violations - On April 14, 2025, the company was investigated by the CSRC for alleged financial misstatements in periodic reports, posing a significant mandatory delisting risk[165] - The company's actual controller and chairman, Mr. Huang Yongjun, was also investigated by the CSRC on August 6, 2025, for alleged information disclosure violations[165] XIV. Significant Matters of Company Subsidiaries The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[166] Part VI Share Changes and Shareholder Information This section details changes in the company's share capital, securities issuance, shareholder structure, and holdings of directors, supervisors, and senior management I. Share Change Information During the reporting period, the company's total share capital remained unchanged at 557,922,828 shares; the proportions of restricted and unrestricted shares also remained constant at 5.61% and 94.39%, respectively Share Change Information | Share Type | 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 | 31,285,264 | 5.61% | 0 | 31,285,264 | 5.61% | | II. Unrestricted Shares | 526,637,564 | 94.39% | 0 | 526,637,564 | 94.39% | | III. Total Shares | 557,922,828 | 100.00% | 0 | 557,922,828 | 100.00% | II. Securities Issuance and Listing The company had no securities issuance or listing during the reporting period III. Number of Shareholders and Shareholding Information At the end of the reporting period, the company had 55,684 common shareholders; among the top ten shareholders, the actual controller Huang Yongjun held 7.35% of shares, with 19,600,000 shares pledged, and Chengdu Qinxueshansi Education Technology Co., Ltd. was the second largest shareholder with 2.62% ownership - At the end of the reporting period, the total number of common shareholders was 55,684[172] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion (%) | Number of Shares Held at Period-End (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huang Yongjun | Domestic Natural Person | 7.35% | 41,008,323.00 | 30,756,242.00 | 10,252,081.00 | Pledged | 19,600,000 | | Chengdu Qinxueshansi Education Technology Co., Ltd. | Domestic Non-State-Owned Legal Person | 2.62% | 14,629,800.00 | 0.00 | 14,629,800.00 | N/A | 0 | IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[174] V. Changes in Controlling Shareholder or Actual Controller Neither the company's controlling shareholder nor its actual controller changed during the reporting period - The company's controlling shareholder did not change during the reporting period[175] - The company's actual controller did not change during the reporting period[175] VI. Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[176] Part VII Bond-Related Information This section provides details on the company's bond-related activities and status during the reporting period Bond-Related Information The company had no bond-related information during the reporting period Part 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 owners' equity, along with detailed notes and supplementary information I. Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[180] II. Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2025, comprehensively illustrating the company's financial position, operating results, and cash flow 1. Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were CNY 3.425 billion, a 3.97% decrease from the beginning of the period; total current assets were CNY 2.632 billion, total non-current assets were CNY 0.793 billion; total liabilities were CNY 0.342 billion, and total owners' equity was CNY 3.083 billion, with monetary funds and accounts receivable decreasing, while inventories and contract liabilities increased Key Data from Consolidated Balance Sheet (Period-End Balances) | Item | Period-End Balance (CNY) | Period-Beginning Balance (CNY) | | :--- | :--- | :--- | | Monetary Funds | 1,081,871,748.17 | 1,645,287,699.34 | | Financial Assets Held for Trading | 631,384,657.54 | | | Accounts Receivable | 587,600,140.80 | 700,107,070.95 | | Inventories | 246,150,522.50 | 162,313,716.27 | | Total Current Assets | 2,631,856,743.00 | 2,647,712,255.05 | | Total Non-current Assets | 793,160,028.29 | 918,999,780.74 | | Total Assets | 3,425,016,771.29 | 3,566,712,035.79 | | Short-term Borrowings | 11,532,150.34 | 70,611,865.91 | | Contract Liabilities | 110,906,980.68 | 81,654,266.65 | | Total Current Liabilities | 290,050,836.94 | 377,831,024.58 | | Total Non-current Liabilities | 52,007,200.74 | 63,550,804.78 | | Total Liabilities | 342,058,037.68 | 441,381,829.36 | | Total Owners' Equity Attributable to Parent Company | 3,081,458,377.34 | 3,123,830,256.43 | | Total Owners' Equity | 3,082,958,733.61 | 3,125,330,206.43 | 3. Consolidated Income Statement In H1 2025, the company achieved total operating revenue of CNY 240 million, a 48.85% year-on-year increase; operating profit was a loss of CNY 53.03 million, net profit was a loss of CNY 55.16 million, and net profit attributable to parent company shareholders was a loss of CNY 55.16 million, with losses significantly narrowing year-on-year; basic earnings per share were CNY -0.0989 Key Data from Consolidated Income Statement | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 239,929,168.10 | 161,184,732.53 | | Total Operating Costs | 340,344,640.06 | 376,343,452.93 | | Operating Profit | -53,034,858.15 | -179,806,410.04 | | Total Profit | -54,443,305.24 | -181,193,635.59 | | Net Profit | -55,157,629.70 | -166,135,032.64 | | Net Profit Attributable to Parent Company Shareholders | -55,158,035.97 | -166,134,971.77 | | Basic Earnings Per Share | -0.0989 | -0.2965 | | Diluted Earnings Per Share | -0.0989 | -0.2965 | 5. Consolidated Cash Flow Statement In H1 2025, the company's net cash flow from operating activities was CNY 22.95 million, turning positive primarily due to a significant increase in sales collection; net cash flow from investing activities was CNY -522 million, and net cash flow from financing activities was CNY -66.70 million; the net increase in cash and cash equivalents was CNY -566 million Key Data from Consolidated Cash Flow Statement | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 22,949,517.56 | -178,984,131.50 | | Net Cash Flow from Investing Activities | -522,260,806.58 | -700,778,672.49 | | Net Cash Flow from Financing Activities | -66,704,907.68 | -142,568,434.36 | | Net Increase in Cash and Cash Equivalents | -566,010,593.92 | -1,022,339,237.37 | | Period-End Balance of Cash and Cash Equivalents | 1,068,172,118.42 | 1,023,709,369.53 | III. Company Basic Information Beijing Tongtech Co., Ltd. was listed on the Shenzhen Stock Exchange on January 28, 2014, with a registered capital of CNY 557,922,828.00, and its actual controller is Huang Yongjun; the company's main businesses cover basic software, information security, cybersecurity, and government/enterprise digital transformation, with 23 subsidiaries included in the scope of consolidation for the current period - The company was listed on the Shenzhen Stock Exchange on January 28, 2014, with a registered capital of CNY 557,922,828.00, and its actual controller is Huang Yongjun[216] - The company's main businesses cover basic software, information security, cybersecurity, and government/enterprise digital transformation[216] - A total of 23 subsidiaries were included in the scope of consolidation for the current period[217] VII. Notes to Consolidated Financial Statement Items This section provides detailed disclosures for each item in the consolidated financial statements, including monetary funds, financial assets held for trading, accounts receivable, inventories, goodwill, deferred tax assets/liabilities, short-term borrowings, contract liabilities, operating revenue and costs, various expenses, investment income, impairment losses, non-operating income/expenses, income tax expense, and supplementary cash flow information Period-End Balance of Monetary Funds | Item | Period-End Balance (CNY) | | :--- | :--- | | Cash on Hand | 17,961.57 | | Bank Deposits | 1,068,154,156.85 | | Other Monetary Funds | 13,699,629.75 | | Total | 1,081,871,748.17 | Period-End Balance of Financial Assets Held for Trading | Item | Period-End Balance (CNY) | | :--- | :--- | | Structured Deposits | 631,384,657.54 | | Total | 631,384,657.54 | Aging Analysis of Accounts Receivable (Period-End Book Balance) | Aging | Period-End Book Balance (CNY) | | :--- | :--- | | Within 1 year (inclusive) | 419,261,168.08 | | 1 to 2 years | 66,848,524.78 | | 2 to 3 years | 111,815,668.60 | | Over 3 years | 257,024,972.42 | | Total | 854,950,333.88 | Inventory Classification (Period-End Book Value) | Item | Book Value (CNY) | | :--- | :--- | | Merchandise Inventory | 1,010,821.51 | | Goods in Transit | 46,440,593.52 | | Labor Costs | 198,699,107.47 | | Total | 246,150,522.50 | Goodwill Original Book Value (Period-End Balance) | Name of Investee or Event Leading to Goodwill | Period-End Balance (CNY) | | :--- | :--- | | Beijing Huijielang Technology Co., Ltd. | 363,369,417.11 | | Beijing Tongde Yixin Technology Co., Ltd. | 29,607,378.92 | | Beijing Digital Heaven Information Technology Co., Ltd. | 34,847,082.00 | | Beijing Tongtech Network Security Technology Co., Ltd. | 479,175,592.37 | | Beijing Taice Technology Co., Ltd. | 554,871,440.00 | | Total | 1,461,870,910.40 | Operating Revenue and Operating Costs | Item | Current Period Revenue (CNY) | Current Period Cost (CNY) | Prior Period Revenue (CNY) | Prior Period Cost (CNY) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 237,791,381.31 | 52,680,375.85 | 161,182,323.47 | 44,600,901.35 | | Other Businesses | 2,137,786.79 | | 2,409.06 | | | Total | 239,929,168.10 | 52,680,375.85 | 161,184,732.53 | 44,600,901.35 | R&D Expenses | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Employee Compensation | 56,910,211.47 | 90,680,608.87 | | Outsourced Development Fees | 1,510,091.92 | 1,919,969.95 | | Testing Fees | 8,248,682.81 | 14,756,513.72 | | Total | 82,804,705.08 | 126,747,435.10 | Financial Expenses | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Interest Expense | 1,105,705.77 | 1,499,793.34 | | Less: Interest Income | 4,352,589.41 | 10,488,261.29 | | Bank Charges | 58,796.26 | 49,827.42 | | Total | -3,188,087.38 | -8,938,640.53 | Investment Income | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Investment Income from Long-term Equity Investments Accounted for Using Equity Method | -1,834,081.07 | 380,211.15 | | Investment Income from Financial Assets Held for Trading During Holding Period | 1,384,657.54 | 2,496,937.18 | | Investment Income from Disposal of Financial Assets Held for Trading | 3,730,510.71 | 4,595,404.41 | | Total | 3,281,087.18 | 7,472,552.74 | Credit Impairment Losses | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Bad Debt Loss on Notes Receivable | 15,201.19 | 363,992.65 | | Bad Debt Loss on Accounts Receivable | 4,686,371.71 | -2,903,738.05 | | Bad Debt Loss on Other Receivables | 998,689.72 | | | Total | 5,700,262.62 | -2,539,745.40 | VIII. R&D Expenditures In H1 2025, the company's total R&D expenditures amounted to CNY 82.80 million, a year-on-year decrease of 34.67%, primarily comprising employee compensation, testing fees, intangible asset amortization, and depreciation; all R&D expenditures were expensed R&D Expenditure Details | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Employee Compensation | 56,910,211.47 | 90,680,608.87 | | Outsourced Development Fees | 1,510,091.92 | 1,919,969.95 | | Depreciation Expense | 6,197,395.74 | 6,461,252.54 | | Intangible Asset Amortization | 6,967,535.00 | 7,719,167.10 | | Testing Fees | 8,248,682.81 | 14,756,513.72 | | Total | 82,804,705.08 | 126,747,435.10 | | Of which: Expensed R&D Expenditures | 82,804,705.08 | 126,747,435.10 | IX. Changes in Consolidation Scope During the reporting period, the company's scope of consolidation changed; a new subsidiary, Beijing Tongtech Zhixin Technology Co., Ltd., was established with a 55% shareholding, and Liaoning Taice Technology Co., Ltd. was deregistered in June 2025 - A new subsidiary, Beijing Tongtech Zhixin Technology Co., Ltd., was established with a 55% shareholding[494] - Liaoning Taice Technology Co., Ltd. was deregistered in June 2025[494] X. Interests in Other Entities This section discloses the company's interests in subsidiaries and joint ventures; the company has 23 subsidiaries, with Beijing Tongtech Network Security Technology Co., Ltd. and Beijing Taice Technology Co., Ltd. being significant ones; the company holds a 99.00% stake in the joint venture Hangzhou Qingxiang Investment Management Partnership (Limited Partnership), accounted for using the equity method - A total of 23 subsidiaries were included in the scope of consolidation for the current period[217] Shareholding in Significant Subsidiaries | Subsidiary Name | Registered Capital (CNY) | Shareholding Proportion (Direct) | | :--- | :--- | :--- | | Beijing Tongtech Network Security Technology Co., Ltd. | 500,000,000.00 | 100.00% | | Beijing Taice Technology Co., Ltd. | 50,000,000.00 | 100.00% | | Beijing Tongtech Software Co., Ltd. | 100,000,000.00 | 100.00% | Information on Significant Joint Ventures | Joint Venture Name | Business Nature | Shareholding Proportion (Direct) | Accounting Method | | :--- | :--- | :--- | :--- | | Hangzhou Qingxiang Investment Management Partnership (Limited Partnership) | Investment Management | 99.00% | Equity Method | - The company's investment in the joint venture Hangzhou Qingxiang Investment Management Partnership (Limited Partnership) had a book value of CNY 201.89 million, with its share of net profit for the current year calculated at CNY -1.83 million[500] XI. Government Grants During the reporting period, the company received new government grants of CNY 25.16 million, with CNY 21.51 million recognized in other income for the current period; the period-end balance of government grants in deferred income was CNY 30.83 million, primarily categorized as asset-related and income-related subsidies Liability Items Involving Government Grants | Accounting Account | Period-Beginning Balance (CNY) | New Grant Amount in Current Period (CNY) | Amount Recognized in Other Income in Current Period (CNY) | Period-End Balance (CNY) | Asset-related/Income-related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 15,182,324.77 | 20,910,245.14 | 11,914,422.21 | 24,178,147.70 | Asset-related | | Deferred Income | 12,000,218.94 | 4,245,854.86 | 9,598,802.73 | 6,647,271.07 | Income-related | | Total | 27,182,543.71 | 25,156,100.00 | 21,513,224.94 | 30,825,418.77 | | Government Grants Recognized in Current Profit and Loss | Accounting Account | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Other Income | 36,554,359.01 | 30,587,847.94 | XII. Disclosure of Fair Value In fair value measurement, the company's other equity instrument investments are valued using valuation techniques, with a period-end balance of CNY 47.11 million, primarily using investment cost as the best estimate Recurring and Non-recurring Level 3 Fair Value Measurement Items | Item | Fair Value as of June 30, 2025 (CNY) | Valuation Technique | Significant Unobservable Inputs | | :--- | :--- | :--- | :--- | | Other Equity Instrument Investments | 47,114,503.85 | Best Estimate of Fair Value | Investment Cost | XIII. Related Parties and Related Party Transactions The company's actual controller is Huang Yongjun, with 23 subsidiaries and 1 joint venture; during the reporting period, the company engaged in transactions such as purchases/sales of goods and provision of services with related parties including Guangzhou Ruifan Technology Co., Ltd. and Shanghai Xinfang Smart System Co., Ltd., and provided guarantees totaling CNY 150 million for subsidiaries Beijing Taice Technology Co., Ltd. and Beijing Tongtech Network Security Technology Co., Ltd. - The ultimate controlling party of the enterprise is Huang Yongjun[509] Related Party Transactions for Purchases/Sales of Goods and Acceptance/Provision of Services | Related Party | Related Transaction Content | Current Period Amount (CNY) | | :--- | :--- | :--- | | Guangzhou Ruifan Technology Co., Ltd. | Purchase of Services | 2,472,726.13 | | Shanghai Xinfang Smart System Co., Ltd. | Provision of Services | 398,160.00 | Related Party Guarantees | Guaranteed Party | Guaranteed Amount (CNY) | Guarantee Start Date | Guarantee End Date | | :--- | :--- | :--- | | Beijing Taice Technology Co., Ltd. | 50,000,000.00 | 2024年08