日盈电子(603286) - 2025 Q2 - 季度财报

Section I Definitions This section defines key terms used throughout the report, ensuring clarity and consistency in communication Definitions of Common Terms This chapter defines key terms used in the report, including company names, controlling shareholders, ultimate controllers, major subsidiaries, and important automotive industry clients, ensuring clarity and consistency - The Company and 'this Company' refer to Jiangsu Riying Electronics Co., Ltd.[15] - The controlling shareholder is Shi Rongzhu, and the ultimate controllers are Shi Rongzhu and Lu Peng[15] - Major subsidiaries include Jiangmen Rongyu, Changchun Riying, Shanghai Riying, Hong Kong Riying, Riying Software, Hong Kong Zhuozhi, Huichang Sensor, Richeng Technology, and Riying Electronics North America Inc.[15] - Key automotive clients include FAW-Volkswagen, SAIC Volkswagen, SAIC-GM, Beijing Benz, Audi, Volvo, BYD, and NIO[15] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, stock profile, and key financial performance metrics for the reporting period I. Company Information This section provides the company's basic registration information, including its Chinese name, abbreviation, foreign name and its abbreviation, and legal representative - The company's Chinese name is Jiangsu Riying Electronics Co., Ltd., abbreviated as Riying Electronics[13] - The legal representative is Shi Rongzhu[13] II. Contact Persons and Information This section lists the contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, telephone numbers, fax numbers, and email addresses - The Board Secretary is Mao Jiabao, and the Securities Affairs Representative is Zhou Zhiwen[14] - The contact address for both is No. 2788 Luhong Road, Economic Development Zone, Changzhou City, Jiangsu Province[14] - The email address is zqtzb@riyingcorp.com[16] III. Brief Introduction to Changes in Basic Information This section describes the change in the company's registered address during the reporting period and provides the relevant announcement inquiry index - The company's registered address changed on July 30, 2025, from 'Fangmao Village, Hengshanqiao, Wujin District, Changzhou City, Jiangsu Province' to 'No. 2788 Luhong Road, Economic Development Zone, Changzhou City, Jiangsu Province'[17] - The related change announcement number is 2025-060[17] IV. Brief Introduction to Changes in Information Disclosure and Document Custody Locations This section specifies the company's designated newspaper for information disclosure, website address, and location for semi-annual report custody, noting no changes during the reporting period - The company's selected newspaper for information disclosure is China Securities Journal[18] - The website address for publishing the semi-annual report is **www.sse.com.cn**[18](index=18&type=chunk) - The company's semi-annual report is available at the Board of Directors' Office[18] V. Company Stock Profile This section provides basic information about the company's stock, including stock type, listing exchange, stock abbreviation, and code - The stock type is A-shares, listed on the Shanghai Stock Exchange[19] - The stock abbreviation is Riying Electronics, and the stock code is 603286[19] VII. Company's Key Accounting Data and Financial Indicators This section discloses the company's key accounting data and financial indicators for the first half of 2025, showing year-on-year revenue growth, but a significant decline in total profit and net profit attributable to the parent company, while net cash flow from operating activities increased substantially Key Accounting Data for H1 2025 | Key Accounting Data | Current Period (Jan-Jun) (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 509,093,802.11 | 450,424,675.01 | 13.03 | | Total Profit | -14,556,013.50 | 10,915,449.85 | -233.35 | | Net Profit Attributable to Shareholders of Listed Company | -17,498,440.45 | 7,575,982.51 | -330.97 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses | -20,973,156.07 | 6,599,429.27 | -417.80 | | Net Cash Flow from Operating Activities | 44,829,078.86 | 19,377,659.93 | 131.34 | | Net Assets Attributable to Shareholders of Listed Company (Period-End) | 830,171,364.31 | 873,123,323.97 | -4.92 | | Total Assets (Period-End) | 1,982,348,170.62 | 1,835,569,140.70 | 8.00 | Key Financial Indicators for H1 2025 | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | -0.15 | 0.07 | -314.29 | | Diluted Earnings Per Share (RMB/share) | -0.15 | 0.07 | -314.29 | | Basic Earnings Per Share After Deducting Non-recurring Gains and Losses (RMB/share) | -0.18 | 0.06 | -400.00 | | Weighted Average Return on Net Assets (%) | -2.02 | 0.88 | Decrease of 2.9 percentage points | | Weighted Average Return on Net Assets After Deducting Non-recurring Gains and Losses (%) | -2.42 | 0.77 | Decrease of 3.19 percentage points | - The decline in total profit, net profit, and earnings per share was primarily due to a decrease in product gross margin and an increase in period expenses such as depreciation and amortization from new factory operations, R&D investment in new projects, and share-based payment amortization[23] - The increase in net cash flow from operating activities was mainly due to the company's continuous optimization of operational management and an increase in payments to suppliers via bank acceptance bills[24] IX. Non-recurring Gains and Losses Items and Amounts This section lists the company's non-recurring gains and losses items and their amounts for the reporting period, totaling RMB 3,474,715.62 Non-recurring Gains and Losses Items and Amounts for H1 2025 | Non-recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Gains or losses on disposal of non-current assets | -31,576.60 | | Government grants recognized in profit or loss for the current period | 1,428,079.89 | | Gains or losses from entrusted investments or asset management | 2,131,131.02 | | Other non-operating income and expenses apart from the above | 274,833.26 | | Less: Income tax impact | 324,617.70 | | Minority interests impact (after tax) | 3,134.25 | | Total | 3,474,715.62 | X. Companies with Equity Incentive or Employee Stock Ownership Plans May Choose to Disclose Net Profit After Deducting Share-based Payment Impact This section discloses the company's net profit after deducting the impact of share-based payments, showing a significant year-on-year decrease Net Profit After Deducting Share-based Payment Impact | Key Accounting Data | Current Period (Jan-Jun) (RMB) | Prior Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Share-based Payment Impact | -8,027,443.16 | 9,162,784.36 | -187.61 | Section III Management Discussion and Analysis This section provides an in-depth analysis of the company's industry, business operations, core competencies, and financial performance during the reporting period I. Explanation of the Company's Industry and Main Business Operations During the Reporting Period This section details the automotive parts industry, including H1 2025 automotive production and sales data, and comprehensively introduces the company's main business, key products, their applications, and new products under development, highlighting its presence in sensing, transmission, control, execution, and precision injection molding - The company operates in the C3670 automotive parts and accessories manufacturing sector, a sub-segment of the C36 automotive manufacturing industry[31] Automotive Production and Sales Data for Jan-Jun 2025 | Indicator | Production/Sales Volume (10,000 units) | YoY Growth (%) | | :--- | :--- | :--- | | Automotive Production and Sales | 1,562.1 / 1,565.3 | 12.5 / 11.4 | | Passenger Vehicle Production and Sales | 1,352.2 / 1,353.1 | 13.8 / 13 | | Commercial Vehicle Production and Sales | 209.9 / 212.2 | 4.7 / 2.6 | | New Energy Vehicle Production and Sales | 696.8 / 693.7 | 41.4 / 40.3 | | Share of New Energy Vehicle Sales in New Vehicle Sales | 44.3% | - | - The company's main business revolves around a series of products formed by 'sensing-transmission-control-execution,' including various sensors, automotive wiring harnesses, sunroof controllers, washing systems, and precision injection molded products[33] - Key products under development include air quality management systems, fragrance generators, and HVAC damper actuators, aiming to enhance automotive intelligence and driving experience[42][43] II. Discussion and Analysis of Operations This section discusses the company's operational strategies and progress amidst complex economic conditions, including client stabilization, new product development, cost reduction and efficiency improvements, advancement of the US factory construction, and increased investment in embodied AI, emphasizing that the embodied AI business is in its early stages and will not generate revenue in the short term - During the reporting period, the company secured multiple project orders from clients including FAW-Volkswagen, SAIC Volkswagen, BAIC, Hongqi, Hyundai, and Yutian Guanjia[45] - The flexible tactile anti-pinch sensor product successfully secured a designated project, achieving a 'breakthrough from zero' and marking its entry into the industrialization phase[45] - The company deepened its cost reduction and efficiency improvement initiatives across the entire business chain, enhancing competitiveness through R&D design, production process improvements, equipment automation, and digital management[46] - Riying Electronics North America Inc.'s US factory has entered the equipment installation phase, with planned smooth production in the second half of the year to achieve localized supply and expand overseas markets[46][47] - Increased investment in the new field of embodied AI, successfully developing electronic skin samples and applying for patents, collaborating with universities on research topics, and actively confirming customer requirements and providing samples[47][48] - The new business in the embodied AI industry is still in its early stages, with related products and technologies under development or iteration, and has not yet generated operating revenue[48] III. Analysis of Core Competencies During the Reporting Period This section analyzes the company's core competencies, including significant patent advantages, a broad base of high-quality clients, strong R&D capabilities (synchronous development, mold development, new product R&D), efficient production management and cost control, and a rapid response service system - During the reporting period, the company and its subsidiaries added 3 invention patents, 15 utility model patents, and 3 design patents, accumulating a total of 231 patents[49] - The company is a leading domestic supplier of automotive washing system products, with clients including renowned domestic and international brands such as FAW-Volkswagen, SAIC Volkswagen, Beijing Benz, BYD, and NIO, and has expanded into the motorcycle and short-distance transportation sectors[50] - The company possesses synchronous development capabilities, mold development capabilities, and new product R&D capabilities, enabling it to provide comprehensive automotive electronic product solutions to clients[51][52] - The company adopts a lean production model, achieving production management and cost advantages by increasing automation, reducing defect rates, and shortening production cycles[52] - The company has established a multi-departmental rapid response mechanism, ensuring quick responses to customer needs across product design, procurement, production, logistics, and after-sales service[53] IV. Key Operating Performance During the Reporting Period This section provides a detailed analysis of the company's key operating performance during the reporting period, including changes in main business financial accounts, asset and liability status, investment activities, and the operating performance of major controlled and invested companies, revealing that while revenue grew, profits were impacted by rising costs and expenses, with the company responding to market challenges through operational optimization and strategic investments Analysis of Changes in Financial Statement Items | Item | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 509,093,802.11 | 450,424,675.01 | 13.03 | | Operating Cost | 424,652,807.75 | 362,862,763.87 | 17.03 | | Selling Expenses | 12,258,428.40 | 8,749,645.35 | 40.10 | | Administrative Expenses | 50,068,452.09 | 37,024,815.04 | 35.23 | | R&D Expenses | 28,673,586.46 | 22,464,098.79 | 27.64 | | Financial Expenses | 5,412,342.95 | 4,278,844.07 | 26.49 | | Net Cash Flow from Operating Activities | 44,829,078.86 | 19,377,659.93 | 131.34 | | Net Cash Flow from Investing Activities | -142,900,421.57 | -72,786,627.01 | N/A | | Net Cash Flow from Financing Activities | 71,695,039.69 | -5,033,202.94 | N/A | - The increase in selling expenses was mainly due to higher employee compensation; the increase in administrative expenses was primarily due to increased share-based payment expenses, depreciation, and amortization expenses[55] - The increase in net cash flow from operating activities was mainly due to optimized operational management and an increase in payments to suppliers via bank acceptance bills[57] - The change in net cash flow from investing activities was mainly due to the purchase of wealth management products; the change in net cash flow from financing activities was primarily due to an increase in cash received from borrowings[57] Major Changes in Asset and Liability Status | Item Name | Current Period End (RMB) | Change from Prior Year End (%) | Explanation | | :--- | :--- | :--- | :--- | | Financial assets held for trading | 30,000,000.00 | -40.00 | Decrease in wealth management products classified as financial assets held for trading | | Notes receivable financing | 38,262,498.57 | 42.01 | Increase in bank acceptance bills classified as notes receivable financing | | Prepayments | 3,148,731.04 | 42.80 | Increase in prepayments to suppliers | | Other current assets | 174,006,484.32 | 113.29 | Increase in large-denomination certificates of deposit held | | Construction in progress | 36,616,939.19 | -40.90 | Partial completion of 5G intelligent automotive parts manufacturing project, transferred to fixed assets and long-term deferred expenses | | Notes payable | 204,140,534.05 | 320.75 | Increase in supplier settlements via bank acceptance bills | | Contract liabilities | 13,714,737.80 | 347.93 | Increase in advances from customers | | Other payables | 71,189,957.55 | 139.77 | Partial unpaid equity acquisition payment for Huichang Sensor Co. minority shareholders, and increased restricted stock repurchase payment | | Long-term borrowings | 60,029,200.00 | 99.79 | Increase in long-term borrowings | - Overseas assets amounted to RMB 65,594,824.48, accounting for 3.31% of total assets[62] - At period-end, major restricted assets included RMB 41,329,731.60 in monetary funds pledged as collateral for bank acceptance bills and letters of guarantee[63] - Significant equity investment: RMB 63,726,444.62 was used to acquire a 20% stake in Huichang Sensor Co., making it a wholly-owned subsidiary[65][66] - Significant non-equity investment: The 5G intelligent automotive parts manufacturing project has accumulated an investment of RMB 687.60 million, successfully relocating to the new factory and commencing production[67] - Financial assets measured at fair value totaled RMB 251,389,375.26 at period-end[69] - Among major subsidiaries, Changzhou Huichang Sensor Co., Ltd. reported main business revenue of RMB 71.71 million and main business profit of RMB 29.83 million[73] - During the reporting period, Richeng Technology (Changzhou) Co., Ltd. was added as a new subsidiary[74] V. Other Disclosures This section details significant risks the company may face, including macroeconomic and automotive industry cyclical fluctuations, dual pressures from vehicle competition-driven price reductions and rising raw material costs, product price decline risk, large-scale automotive recall and compensation risk, and new product development and commercialization risks, particularly the early-stage uncertainties of the embodied AI business - The company's operating performance is closely linked to macroeconomic conditions and automotive industry development, facing risks of declining production and sales volumes and intensified competition[75] - The company faces dual pressures from price reduction demands due to vehicle competition and rising raw material costs (plastic particles, copper wire, copper strip, rubber hoses, etc.), which may lead to a decline in gross profit margin[76] - The automotive parts industry has an annual price adjustment practice; if product prices continue to fall and cost control does not improve synchronously, it will adversely impact performance[76] - Product quality issues could lead to large-scale automotive recalls, exposing the company to significant customer compensation claims[77] - New product development and commercialization carry risks, with long certification cycles and high uncertainty; the embodied AI industry is still in its early stages and has not yet generated operating revenue[77] Section IV Corporate Governance, Environment and Society This section covers changes in the company's directors and senior management, profit distribution plans, and the status and impact of equity incentive and employee stock ownership plans I. Changes in Company Directors and Senior Management This section discloses changes in the company's directors and senior management during the reporting period, including the resignation and election of independent directors and directors - Independent Director Wang Wenkai resigned, and Chen Laipeng was elected as an independent director[80] - Director and Executive General Manager Hao Xiaoyi resigned, and Lu Xiangxiang was elected as a director[80][81] II. Profit Distribution or Capital Reserve Conversion Plan This section states that the company will not undertake profit distribution or capital reserve conversion into share capital for the semi-annual period - The company's proposed semi-annual profit distribution or capital reserve conversion plan is 'none'[82] III. Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures This section outlines the progress of the company's equity incentive plan, including the grant of reserved restricted shares and stock options, the fulfillment of exercise conditions, and related price adjustments and lifting of sales restrictions - On March 11, 2025, the company approved the proposal to grant reserved restricted shares and stock options to incentive recipients[83] - On April 28, 2025, the exercise conditions for the first exercise period of the initial grant of stock options under the 2024 Restricted Stock and Stock Option Incentive Plan were met[83] - On May 9, 2025, the company approved the proposal to adjust the relevant prices of the 2024 Restricted Stock and Stock Option Incentive Plan[84] - On June 30, 2025, the conditions for lifting the sales restriction for the first lifting period of the initial grant of restricted shares under the 2024 Restricted Stock and Stock Option Incentive Plan were met[84] Section V Significant Matters This section details the fulfillment of commitments, absence of related party fund occupation or illegal guarantees, integrity status, and progress in the use of raised funds I. Fulfillment of Commitments This section details the fulfillment of various commitments by the company's ultimate controllers, shareholders, and senior management during or continuing into the reporting period, including share lock-up, resolution of horizontal competition, and compensation measures, with all commitments strictly fulfilled - Ultimate controllers Shi Rongzhu and Lu Peng committed to share lock-up, not transferring shares within 36 months after listing, and ensuring that the reduction price is not lower than the offering price within two years after the lock-up period expires[87][88] - Ultimate controllers Shi Rongzhu and Lu Peng committed to resolve horizontal competition, not directly or indirectly engaging in businesses competing with the company[90][91] - The controlling shareholder, ultimate controllers, and the company's directors and senior management committed to support the effective implementation of the company's compensation measures, including linking to remuneration systems, equity incentive exercise conditions, and cash dividend plans[91][92] - All commitments have been timely and strictly fulfilled[87][88][89][90][91][92] II. Non-operating Fund Occupation by Controlling Shareholders and Other Related Parties During the Reporting Period This section confirms that there was no non-operating occupation of company funds by controlling shareholders or other related parties during the reporting period - During the reporting period, there was no non-operating occupation of funds by controlling shareholders or other related parties[7] III. Irregular Guarantees This section confirms that there were no external guarantees provided in violation of prescribed decision-making procedures during the reporting period - During the reporting period, there were no external guarantees provided in violation of prescribed decision-making procedures[8] IX. Explanation of the Integrity Status of the Company, its Controlling Shareholders, and Ultimate Controllers During the Reporting Period This section states that the company, its controlling shareholders, and ultimate controllers operated with integrity and in compliance during the reporting period, strictly fulfilling commitments and exhibiting no dishonest behavior - During the reporting period, the company operated with integrity and in compliance, and the controlling shareholders and ultimate controllers were honest and trustworthy, strictly fulfilling all commitments, with no instances of dishonest behavior[94] XII. Explanation of Progress in the Use of Raised Funds This section details the overall use of the company's raised funds and the specifics of investment projects, including the progress of the 'Automotive Intelligent Cockpit Electronic Products Capacity Expansion Project' and the completion of working capital replenishment/loan repayment projects, as well as the cash management of idle raised funds Overall Use of Raised Funds (As of Report Period End) | Indicator | Amount (RMB) | | :--- | :--- | | Total Raised Funds | 398,140,000.00 | | Net Raised Funds | 390,199,500.00 | | Cumulative Investment of Raised Funds as of Report Period End | 183,200,900.00 | | Investment Progress (%) as of Report Period End | 46.95 | Details of Raised Fund Investment Projects (As of Report Period End) | Project Name | Planned Total Investment (RMB) | Cumulative Investment as of Report Period End (RMB) | Investment Progress (%) | | :--- | :--- | :--- | :--- | | Automotive Intelligent Cockpit Electronic Products Capacity Expansion Project | 340,140,000.00 | 130,642,900.00 | 38.41 | | Working Capital Replenishment and Bank Loan Repayment Project | 50,059,500.00 | 52,558,000.00 | 104.99 | - The company manages idle raised funds through cash management, with a board-approved limit of RMB 270 million; the cash management balance at the end of the reporting period was RMB 200 million[105] Section VI Share Changes and Shareholder Information This section details changes in the company's share capital, including restricted stock grants, repurchases, and stock option exercises, along with shareholder information and restricted share conditions I. Changes in Share Capital This section details changes in the company's share capital during the reporting period, including the grant, repurchase and cancellation of restricted shares, and the exercise of stock options, leading to an increase in total shares Table of Share Changes | Share Class | Quantity Before Change (shares) | Change (+,-) (shares) | Quantity After Change (shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 2,321,000 | +367,000 | 2,688,000 | | II. Unrestricted Tradable Shares | 114,303,931 | +432,000 | 114,735,931 | | III. Total Shares | 116,624,931 | +799,000 | 117,423,931 | - During the reporting period, the company granted 425,000 reserved restricted shares to incentive recipients[111] - The company repurchased and cancelled 58,000 restricted shares from resigned employees[111] - The exercise conditions for the first exercise period of the company's initial grant of stock options were met, with a total of 432,000 shares listed for circulation on June 6, 2025[111] - At period-end, total restricted shares amounted to 2,688,000 shares, comprising 2,263,000 restricted shares from the initial equity incentive grant and 425,000 reserved restricted shares[113] - The first unlocking date for initially granted restricted shares is July 9, 2025, with an unlocking ratio of 30%[114] II. Shareholder Information This section discloses the total number of shareholders, the top ten shareholders, and the top ten shareholders of unrestricted tradable shares as of the end of the reporting period, along with the number of shares held by restricted shareholders and their restriction conditions - As of the end of the reporting period, the total number of common shareholders was 17,203[115] Top Ten Shareholders' Holdings as of Report Period End | Shareholder Name | Holdings at Period End (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Shi Rongzhu | 21,675,000 | 18.46 | Domestic Natural Person | | Lu Peng | 17,500,000 | 14.90 | Domestic Natural Person | | Jiangsu Rihuan Investment Co., Ltd. | 2,550,000 | 2.17 | Domestic Non-state-owned Legal Person | | Zheshang Bank Co., Ltd. - Qianhai Open Source Jiaxin Flexible Allocation Mixed Securities Investment Fund | 1,703,600 | 1.45 | Other | | China Merchants Bank Co., Ltd. - Penghua Carbon Neutral Theme Mixed Securities Investment Fund | 1,587,100 | 1.35 | Other | | Lin Yongsheng | 1,405,800 | 1.20 | Domestic Natural Person | | China Construction Bank Co., Ltd. - Huafu Technology Momentum Mixed Securities Investment Fund | 950,000 | 0.81 | Other | | Zhu Wenyi | 917,800 | 0.78 | Domestic Natural Person | | Wu Chixian | 761,200 | 0.65 | Domestic Natural Person | | Lin Chu Chu | 750,000 | 0.64 | Domestic Natural Person | - Shi Rongzhu and Lu Peng are mother and son, and Shi Rongzhu holds 94.12% equity in Jiangsu Rihuan Investment Co., Ltd.[118] Top Ten Restricted Shareholders' Holdings and Restriction Conditions | No. | Restricted Shareholder Name | Number of Restricted Shares Held (shares) | Tradable Date | Newly Tradable Shares (shares) | Restriction Conditions | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Zhou Huiming | 650,000 | 2025年7月9日 | 195,000 | See Note 1 | | 2 | Zheng Jiahong | 480,000 | 2025年7月9日 | 144,000 | See Note 1 | | 3 | Zheng Ke | 215,000 | / | / | See Note 2 | | 4 | Zhuang Xiaoli | 100,000 | 2025年7月9日 | 30,000 | See Note 1 | | 5 | Mei Liming | 55,000 | 2025年7月9日 | 16,500 | See Note 1 | | 6 | Mao Jiabao | 50,000 | / | / | See Note 2 | | 7 | Wu Qi | 40,000 | 2025年7月9日 | 12,000 | See Note 1 | | 8 | Chen Longting | 40,000 | 2025年7月9日 | 12,000 | See Note 1 | | 9 | Sun Linjie | 40,000 | 2025年7月9日 | 12,000 | See Note 1 | | 10 | Zhao Chao | 40,000 | 2025年7月9日 | 12,000 | See Note 1 | III. Directors and Senior Management Information This section discloses changes in shareholdings of current and resigned directors and senior management during the reporting period, as well as their equity incentive grants - Board Secretary Mao Jiabao held 50,000 shares at period-end, an increase of 50,000 shares during the reporting period due to the reserved grant of equity incentives[123] - Mao Jiabao was granted 50,000 restricted shares, with 50,000 shares remaining unvested at period-end[124] Section VII Bond-Related Information This section confirms that the company does not have any corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds I. Corporate Bonds (Including Enterprise Bonds) and Non-financial Enterprise Debt Financing Instruments This section states that the company does not have corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[127] II. Convertible Corporate Bonds This section states that the company does not have convertible corporate bonds - The company has no convertible corporate bonds[127] Section VIII Financial Report This section presents the company's unaudited financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, taxes, and financial risks I. Audit Report This section states that the company's semi-annual report is unaudited - This semi-annual report is unaudited[5] II. Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the company's financial position and operating results Consolidated Balance Sheet (June 30, 2025) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Assets | 1,982,348,170.62 | 1,835,569,140.70 | | Total Liabilities | 1,152,176,806.31 | 943,202,541.41 | | Total Owners' Equity | 830,171,364.31 | 892,366,599.29 | Consolidated Income Statement (Jan-Jun 2025) | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 509,093,802.11 | 450,424,675.01 | | Total Profit | -14,556,013.50 | 10,915,449.85 | | Net Profit | -14,331,371.37 | 10,658,966.06 | | Net Profit Attributable to Parent Company Shareholders | -17,498,440.45 | 7,575,982.51 | Consolidated Cash Flow Statement (Jan-Jun 2025) | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 44,829,078.86 | 19,377,659.93 | | Net Cash Flow from Investing Activities | -142,900,421.57 | -72,786,627.01 | | Net Cash Flow from Financing Activities | 71,695,039.69 | -5,033,202.94 | III. Company Basic Information This section outlines Jiangsu Riying Electronics Co., Ltd.'s historical evolution, registration information, share capital structure, and main business scope, clarifying the company's position in the automotive parts industry - The company's predecessor was Jiangsu Riying Electrical Appliance Co., Ltd., which was restructured into a joint-stock company in 2012[164] - The company's registered capital is RMB 117,423,931.00, and its shares were listed on the Shanghai Stock Exchange on June 27, 2017[164] - The company's main business involves the R&D, production, and sales of automotive parts, motorcycle and balance vehicle short-distance transportation parts, and smart home sensors[165] IV. Basis of Financial Statement Preparation This section states that the company's financial statements are prepared on a going concern basis, comply with enterprise accounting standards and relevant CSRC regulations, and its ability to continue as a going concern has been assessed - The financial statements are prepared on a going concern basis, in compliance with Enterprise Accounting Standards and their application guidelines and interpretations[167] - The company has assessed its ability to continue as a going concern for 12 months from the end of the reporting period, finding no matters affecting this ability[168] V. Significant Accounting Policies and Estimates This section elaborates on the significant accounting policies and estimates followed by the company in preparing its financial statements, covering key areas such as financial instrument classification and measurement, revenue recognition, government grants, deferred tax assets/liabilities, and share-based payments, clarifying the principles and methods of each accounting treatment - The company adheres to Enterprise Accounting Standards, with the accounting year running from January 1 to December 31 of the Gregorian calendar, and the recording currency being RMB[170][171][173] - Financial assets are classified based on business model and contractual cash flow characteristics as measured at amortized cost, at fair value through profit or loss, or at fair value through other comprehensive income[214] - Revenue is recognized when the customer obtains control of the related goods, and for contracts with multiple performance obligations, the transaction price is allocated based on the proportion of standalone selling prices[336] - Government grants are categorized as asset-related or income-related, recognized as deferred income or directly in profit or loss, respectively[358][359] - Deferred tax assets and liabilities are recognized and measured based on temporary differences between the carrying amounts of assets and liabilities and their tax bases[365] - Share-based payments include cash-settled and equity-settled, with costs and expenses and liabilities/capital reserves recognized based on the fair value or best estimate at the grant date[327][331][332] - Significant accounting judgments and estimates include financial asset classification, measurement of expected credit losses on accounts receivable, goodwill impairment, and recognition of deferred tax assets[392][393][394][395] VI. Taxes This section details the main tax types, rates, and tax preferential policies applicable to the company and its subsidiaries, including income tax incentives for high-tech enterprises and small low-profit enterprises, and VAT additional deduction policies for advanced manufacturing enterprises Main Tax Types and Rates | Tax Type | Tax Rate | | :--- | :--- | | Value-Added Tax | 6%, 13%, Export tax refund rate is 13% | | Property Tax | 1.2%, 12% | | Urban Maintenance and Construction Tax | 7%, 5% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Enterprise Income Tax | 15%, 20%, 25% | - The company and Huichang Sensor Co., as high-tech enterprises, enjoy an Enterprise Income Tax rate of 15%[398] - Henan Huifeng Sensor Manufacturing Co., Ltd., meeting the criteria for small low-profit enterprises, enjoys an Enterprise Income Tax rate of 20%[398] - The company and Huichang Sensor Co., as advanced manufacturing enterprises, benefit from a preferential policy allowing an additional 5% VAT deduction from payable VAT[399] - Hong Kong Riying Company, Zhuozhi (Hong Kong) Electronics Technology Co., Ltd., and R&Y Electronics North America Inc. pay taxes according to the tax policies of their respective registration locations[401] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes for each item in the consolidated financial statements, including period-end balances, changes, and explanations for monetary funds, financial assets, various receivables, inventories, fixed assets, intangible assets, goodwill, deferred tax assets/liabilities, and various liabilities and owners' equity, comprehensively revealing the specific composition and reasons for changes in the company's asset and liability structure - Monetary funds at period-end totaled RMB 226,464,653.20, of which RMB 41,329,731.60 were restricted funds (bank acceptance bill deposits, letter of guarantee deposits)[403][488] - Financial assets held for trading at period-end totaled RMB 30,000,000.00, primarily consisting of wealth management products[403] - Accounts receivable had a carrying amount of RMB 322,604,640.04 at period-end, with an allowance for doubtful accounts of RMB 21,464,029.91; the top five debtors accounted for 35.41% of the total period-end balance of accounts receivable and contract assets[406][412] - Notes receivable financing at period-end totaled RMB 38,262,498.57, primarily consisting of bank acceptance bills; the amount endorsed or discounted and not yet due at period-end was RMB 198,587,013.82[415][418][423] - Inventories had a carrying amount of RMB 203,838,005.53 at period-end, with an inventory impairment provision of RMB 8,305,704.23[440][442] - Fixed assets had a carrying amount of RMB 648,186,734.34 at period-end, with an increase of RMB 90,032,125.17 during the current period, including RMB 43,831,927.01 transferred from construction in progress[457] - Construction in progress had a carrying amount of RMB 36,616,939.19 at period-end, primarily for the 5G intelligent automotive parts manufacturing project[466] - Intangible assets had a carrying amount of RMB 69,696,002.85 at period-end, including land use rights, patent rights, and software[473] - Goodwill had a carrying amount of RMB 50,241,324.46 at period-end, related to Huichang Sensor Co.[474] - Deferred tax assets at period-end totaled RMB 36,616,736.00, and deferred tax liabilities totaled RMB 1,965,386.24[482] - Short-term borrowings at period-end totaled RMB 422,685,934.18, primarily consisting of credit borrowings[490] - Notes payable at period-end totaled RMB 204,140,534.05, primarily consisting of bank acceptance bills[492] - Accounts payable at period-end totaled RMB 269,373,481.77, primarily consisting of payments due for materials[493] - Other payables at period-end totaled RMB 71,189,957.55, mainly including equity acquisition payments and restricted stock repurchase payments[502] - Long-term borrowings at period-end totaled RMB 60,029,200.00 (after deducting the portion due within one year)[506] - Share capital at period-end totaled RMB 117,423,931.00, with an increase of 832,000 shares during the current period[511] - Capital reserve at period-end totaled RMB 568,455,139.46, with increases and decreases during the current period due to equity incentives and the acquisition of minority equity interests[513][514] - Retained earnings at period-end totaled RMB 135,808,253.07[519] - Operating revenue for the current period was RMB 509,093,802.11, and operating cost was RMB 424,652,807.75[521] - R&D expenses for the current period amounted to RMB 28,673,586.46, all of which were expensed[527] - Investment income for the current period was RMB 2,807,377.12, primarily from long-term equity investment income accounted for using the equity method and wealth management income[528] - Net cash flow from operating activities was RMB 44,829,078.86[549] VIII. R&D Expenses This section lists the composition of the company's R&D expenses during the reporting period, primarily including employee compensation, direct input, depreciation and amortization, and share-based payment expenses, with all R&D expenditures expensed R&D Expenses by Nature of Expense | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Employee Compensation | 16,097,696.65 | 13,930,877.66 | | Direct Input | 4,446,367.02 | 3,655,277.12 | | Depreciation and Amortization of Intangible Assets | 2,466,944.91 | 3,357,686.43 | | Share-based Payment Expenses | 1,541,943.79 | 246,047.18 | | Other | 4,120,634.09 | 1,274,210.40 | | Total | 28,673,586.46 | 22,464,098.79 | | Of which: Expensed R&D Expenditures | 28,673,586.46 | 22,464,098.79 | - All R&D expenditures for the current period have been expensed and not capitalized[527] IX. Changes in Consolidation Scope This section describes changes in the company's consolidation scope during the reporting period, primarily due to the establishment of a new subsidiary, Richeng Technology (Changzhou) Co., Ltd - During the reporting period, the company established a new subsidiary, Richeng Technology (Changzhou) Co., Ltd., with a registered capital of RMB 20 million and a 100.00% equity stake[564] X. Interests in Other Entities This section details the company's interests in subsidiaries, joint ventures, and associates, including the composition of the enterprise group, shareholding percentages, key financial information, and changes in subsidiary owners' equity, particularly the acquisition of a minority stake in Huichang Sensor Co - The company owns 9 subsidiaries, including Huichang Sensor Co., Jiangmen Rongyu Electronics Co., Ltd., and Riying Automotive Electronics (Shanghai) Co., Ltd.[567] - During the reporting period, the company acquired a 20% equity stake in Huichang Sensor Co., increasing its shareholding from 80% to 100%, making it a wholly-owned subsidiary, with an acquisition cost of RMB 63,726,444.62[569][571] - The company's significant associates include EMS Elektromechanische Schaltsensoren GmbH and MST Mikroschalttechnik GmbH, both with a 49.00% equity stake and accounted for using the equity method[573] Key Financial Information of Significant Associates (Period-End Balances) | Item | EMS GmbH (RMB) | MST GmbH (RMB) | | :--- | :--- | :--- | | Total Assets | 70,723,125.16 | 28,924,508.81 | | Total Liabilities | 49,053,048.06 | 13,712,311.79 | | Equity Attributable to Parent Company Shareholders | 21,670,077.10 | 15,212,197.02 | | Operating Revenue | 90,028,580.16 | 25,469,989.98 | | Net Profit | 535,412.73 | -276,982.97 | | Total Comprehensive Income | 1,628,881.83 | 508,229.52 | XI. Government Grants This section discloses the recognition and measurement of government grants during the company's reporting period, including asset-related government grants recognized as deferred income and government grants recognized in profit or loss for the current period Liability Items Involving Government Grants (Deferred Income) | Financial Statement Item | Beginning Balance (RMB) | New Grants in Current Period (RMB) | Transferred to Other Income in Current Period (RMB) | Ending Balance (RMB) | Reason for Formation | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 19,640,513.83 | 1,579,200.00 | 1,115,175.53 | 20,104,538.30 | Asset-related | Government Grants Recognized in Profit or Loss for the Current Period | Type | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Asset-related | 1,115,175.53 | 1,004,733.18 | | Income-related | 312,904.36 | 388,955.99 | | Total | 1,428,079.89 | 1,393,689.17 | XII. Risks Related to Financial Instruments This section elaborates on the financial instrument-related risks faced by the company, including credit risk, liquidity risk, and market risk (foreign exchange risk and interest rate risk), and describes the company's objectives and policies for managing these risks - The company faces credit risk, liquidity risk, and market risk (foreign exchange risk and interest rate risk)[580] - Credit risk primarily arises from monetary funds, notes receivable, accounts receivable, notes receivable financing, and other receivables, controlled by assessing customer creditworthiness and regular monitoring[582] - The top five accounts receivable customers account for 35.42% of the total, and the top five other receivables companies account for 65.73% of the total[587] - Liquidity risk is managed by coordinating cash management across subsidiaries and regularly monitoring short-term and long-term liquidity needs[588] - Foreign exchange risk primarily stems from USD-denominated borrowings and foreign currency settlements by overseas subsidiaries; the company currently has not taken measures to hedge this risk[590][591] - Interest rate risk primarily arises from long-term bank borrowings; floating-rate bank borrowings amount to RMB 198,156,334.20, and a 50 basis point change in interest rates would not significantly impact total profit and shareholders' equity[592][593] XIII. Disclosure of Fair Value This section discloses the period-end fair values of the company's assets and liabilities measured at fair value, classified by fair value hierarchy, and explains the main valuation methods for Level 3 fair value measurement items Period-End Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 3 Fair Value Measurement (RMB) | Total (RMB) | | :--- | :--- | :--- | | (I) Financial Assets Held for Trading | 30,000,000.00 | 30,000,000.00 | | Short-term Bank Wealth Management Products | 30,000,000.00 | 30,000,000.00 | | (III) Other Equity Instrument Investments | 10,000,000.00 | 10,000,000.00 | | (VI) Notes Receivable Financing | 38,262,498.57 | 38,262,498.57 | | (VII) Other Current Assets | 173,126,876.69 | 173,126,876.69 | | Total Assets Continuously Measured at Fair Value | 251,389,375.26 | 251,389,375.26 | - For Level 3 fair value measurement items, notes receivable financing, financial assets held for trading, and other current assets (large-denomination certificates of deposit) have carrying amounts close to their fair values due to their short remaining maturities[598] - The fair value of other equity instrument investments (unlisted equity) is determined by considering whether the investee's equity has undergone external transactions or net asset changes during the current period[598] XIV. Related Parties and Related Party Transactions This section identifies the company's related parties, including subsidiaries, associates, and entities controlled by relatives of the ultimate controllers, and details various related party transactions during the reporting period, such as goods purchases and sales, provision and receipt of services, leases, and key management personnel compensation - Related parties include associates Changzhou IMS Automotive Electronic Sensor (Changzhou) Co., Ltd. and Changchun Zhongding Technology Co., Ltd., as well as Changzhou Tianxuan Fenglei Construction Engineering Co., Ltd., controlled by Shi Zhenlin, brother of ultimate controller Shi Rongzhu[601] Related Party Transactions for Goods Purchase/Sale, and Provision/Receipt of Services | Related Party | Related Transaction Content | Current Period Amount (RMB) | | :--- | :--- | :--- | | Changzhou IMS Company | Material Procurement | 5,684.58 | | Changzhou IMS Company | Product Sales | 1,756,323.38 | | Changzhou IMS Company | Service Fees | 48,764.15 | | Changzhou IMS Company | Utilities | 32,663.54 | Related Party Lease Information | Role | Related Party | Type of Leased Asset | Current Period Amount (RMB) | | :--- | :--- | :--- | :--- | | Lessor | Changzhou IMS Company | Factory Building | 45,238.10 | | Lessee | Changzhou Tianxuan Fenglei | Factory Building | 168,800.00 | - Key management personnel compensation for the current period amounted to RMB 2.51 million[608] - Accounts receivable from related party Changzhou IMS Company totaled RMB 1,659,255.67[610] XV. Share-based Payments This section discloses the company's equity-settled share-based payment information under its equity incentive plan, including the number and amount of equity instruments granted, exercised, and forfeited, information on outstanding stock options at period-end, and share-based payment expenses recognized in the current period Details of Equity Instruments | Grantee Category | Number Granted in Current Period (shares) | Amount Granted in Current Period (RMB) | Number Exercised in Current Period (shares) | Amount Exercised in Current Period (RMB) | Number Forfeited in Current Period (shares) | Amount Forfeited in Current Period (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sales Personnel | 15,000.00 | 134,325.00 | 41,700.00 | 663,447.00 | - | - | | Management Personnel | 777,500.00 | 7,300,600.00 | 237,300.00 | 3,775,443.00 | - | - | | R&D Personnel | 95,000.00 | 850,725.00 | 87,000.00 | 1,384,170.00 | - | - | | Production Personnel | 12,500.00 | 171,600.00 | 66,000.00 | 1,050,060.00 | 50,000.00 | 645,750.00 | | Total | 900,000.00 | 8,457,250.00 | 432,000.00 | 6,873,120.00 | 50,000.00 | 645,750.00 | - Outstanding stock options at period-end have an exercise price range of RMB 15.91/share, with remaining contractual terms of 11 months and 23 months[614] - The cumulative amount of equity-settled share-based payments recognized in capital reserve for the current period was RMB 19,329,159.75[615] - Total share-based payment expenses for the current period amounted to RMB 10,772,032.13, primarily incurred by management personnel (RMB 7,627,879.95) and R&D personnel (RMB 1,541,943.79)[617] XVI. Commitments and Contingencies This section states that the company had no significant commitments or contingencies requiring disclosure as of the balance sheet date - The company has no significant commitments requiring disclosure[618] - The company has no significant contingencies requiring disclosure[618] XVII. Events After the Balance Sheet Date This section states that the company had no significant non-adjusting events, profit distribution, or sales returns requiring disclosure after the balance sheet date - The company has no significant non-adjusting events[617] - The company has no profit distribution[617] - The company has no sales returns[617] XVIII. Other Significant Matters This section states that the company has no prior period accounting error corrections, significant debt restructurings, asset exchanges, or annuity plans, and does not disclose segment information as its main business is managed and assessed as a whole - The company has no prior period accounting error corrections, significant debt restructurings, asset exchanges, or annuity plans[618] - The company does not disclose segment information because its main businesses (automotive parts, motorcycle and balance vehicle short-distance transportation parts, and smart home sensors) are managed and evaluated as a whole[618][619] XIX. Notes to Parent Company Financial Statement Items This section provides detailed notes for the parent company's main financial statement items, including period-end balances of accounts receivable, other receivables, and long-term equity investments, aging analysis, provision for doubtful accounts, and investment details in subsidiaries and associates, reflecting the parent company's asset quality and investment structure - Parent company accounts receivable had a carrying amount of RMB 274,776,341.15 at period-end, with an allowance for doubtful accounts of RMB 18,814,336.77; the top five debtors accounted for 36.17% of the total period-end balance of accounts receivable and contract assets[623][630] - Parent company other receivables had a carrying amount of RMB 10,240,668.66 at period-end, with an allowance for doubtful accounts of RMB 698,448.17, primarily consisting of intercompany loans and current accounts[638][642] - Parent company long-term equity investments had a carrying amount of RMB 360,720,307.14 at period-end, including RMB 355,590,996.88 in investments in subsidiaries and RMB 5,129,310.26 in investments in associates and joint ventures[647] - Parent company operating revenue for the current period was RMB 408,572,622.63, and operating cost was RMB 363,430,224.32[651] - Parent company investment income for the current period was RMB 2,672,988.13, primarily from long-term equity investment income accounted for using the equity method and wealth management income[655] XX. Supplementary Information This section provides supplementary financial information for the company, including a detailed statement of non-recurring gains and losses and calculations of return on net assets and earnings per share, offering investors more comprehensive financial analysis data Detailed Statement of Non-recurring Gains and Losses for the Current Period | Item | Amount (RMB) | | :--- | :--- | | Gains or losses on disposal of non-current assets | -31,576.60 | | Government grants recognized in profit or loss for the current period | 1,428,079.89 | | Gains or losses from entrusted investments or asset management | 2,131,131.02 | | Other non-operating income and expenses apart from the above | 274,833.26 | | Less: Income tax impact | 324,617.70 | | Minority interests impact (after tax) | 3,134.25 | | Total | 3,474,715.62 | Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share | Diluted Earnings Per Share | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders of the Company | -2.02 | -0.15 | -0.15 | | Net Profit Attributable to Common Shareholders of the Company After Deducting Non-recurring Gains and Losses | -2.42 | -0.18 | -0.18 |