瑞晟智能(688215) - 2025 Q2 - 季度财报

Definitions This section defines key terminology, company names, and technical acronyms used throughout the report - Defines "the Company" and "Ruisheng Intelligence" as Zhejiang Ruisheng Intelligent Technology Co, Ltd, and the "Reporting Period" as January 1 to June 30, 2025[9] - Explains core product concepts such as intelligent hanging production systems, intelligent hanging storage and sorting systems, and comprehensive intelligent logistics systems[9] - Lists and defines key technical acronyms including RFID, MES, WMS, AGV, OPC, ERP, PLC, and AIoT[9][10] Company Profile and Key Financial Indicators This section outlines the company's basic information, stock profile, and key financial data for the first half of 2025 Company Information Zhejiang Ruisheng Intelligent Technology Co, Ltd, led by legal representative Yuan Feng, specializes in intelligent factory solutions - The company's full name is Zhejiang Ruisheng Intelligent Technology Co, Ltd, abbreviated as Ruisheng Intelligence, with Yuan Feng as the legal representative[13] - The company is registered at Room 701, Building 016, No 17, 18, 19, 20, Lane 299, Guanghua Road, High-tech Zone, Ningbo City, Zhejiang Province[13] Contact Persons and Methods This section provides contact details for the Board Secretary, Lv Meng, and the Securities Affairs Representative, Huang Yaqing - The Board Secretary is Lv Meng and the Securities Affairs Representative is Huang Yaqing, both located at 215 Yuanfeng North Road, Yuelin Street, Fenghua District, Ningbo City, Zhejiang Province[14] Information Disclosure and Place of Document Preparation The company discloses information through designated newspapers and the Shanghai Stock Exchange website - Information is disclosed in the "Securities Times" and "China Securities Journal", and on the Shanghai Stock Exchange website (http://wwwssecomcn)[15](index=15&type=chunk) Company Stock/Depositary Receipt Profile The company's A-shares are listed on the Sci-Tech Innovation Board of the Shanghai Stock Exchange under the stock code 688215 - The company's A-shares are listed on the Sci-Tech Innovation Board of the Shanghai Stock Exchange with the stock name "Ruisheng Intelligence" and code 688215[16] Key Accounting Data and Financial Indicators In H1 2025, revenue grew slightly while net profit declined due to reduced government grants, but net profit excluding non-recurring items surged Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) (RMB) | Same Period Last Year (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 185,044,034.63 | 183,191,799.19 | 1.01 | | Total Profit | 5,429,079.35 | 7,985,967.78 | -32.02 | | Net Profit Attributable to Shareholders of the Parent Company | 3,739,421.37 | 5,138,454.27 | -27.23 | | Net Profit Attributable to Shareholders of the Parent Company (Excluding Non-recurring Items) | 2,220,693.30 | 1,069,262.12 | 107.68 | | Net Cash Flow from Operating Activities | -31,816,699.01 | -14,473,168.12 | N/A | | Net Assets Attributable to Shareholders of the Parent Company (End of Period) | 453,478,703.82 | 464,059,014.67 | -2.28 | | Total Assets (End of Period) | 851,645,509.17 | 807,576,643.44 | 5.46 | Key Financial Indicators for H1 2025 | Key Financial Indicator | Current Period (Jan-Jun) | Same Period Last Year | Change from Same Period Last Year (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/Share) | 0.07 | 0.13 | -46.15 | | Diluted Earnings Per Share (RMB/Share) | 0.07 | 0.13 | -46.15 | | Basic Earnings Per Share (Excluding Non-recurring Items) (RMB/Share) | 0.04 | 0.03 | 33.33 | | Weighted Average Return on Equity (%) | 0.80 | 1.13 | Decreased by 0.33 percentage points | | Weighted Average Return on Equity (Excluding Non-recurring Items) (%) | 0.48 | 0.24 | Increased by 0.24 percentage points | | R&D Expenditure as a Percentage of Operating Revenue (%) | 5.96 | 6.39 | Decreased by 0.43 percentage points | - Total profit decreased by 32.02% year-on-year, primarily due to a reduction in government grants received during the reporting period[19] - Net profit excluding non-recurring items increased by 107.68% year-on-year, mainly driven by an increase in gross profit[20] - Net cash flow from operating activities decreased, mainly due to increased cash outflows for material procurement for project inventory[20] Non-recurring Profit and Loss Items and Amounts Non-recurring profit and loss totaled RMB 1,518,728.07, mainly from government grants and asset disposal gains Non-recurring Profit and Loss Items and Amounts for H1 2025 | Non-recurring Profit and Loss Item | Amount (RMB) | | :--- | :--- | | Gains and losses on disposal of non-current assets | 102,566.86 | | Government grants included in current profit or loss (non-recurring) | 2,017,441.98 | | Other non-operating income and expenses | -196,498.79 | | Less: Income tax effects | 196,772.01 | | Less: Minority interest effects (after tax) | 208,009.97 | | Total | 1,518,728.07 | - Items such as VAT refunds for software products and subsidies for technological transformation are considered recurring due to their continuous nature[24] Management's Discussion and Analysis This section details the company's operating performance, core competitiveness, R&D progress, and risk factors for the first half of 2025 Industry and Business Overview for the Reporting Period The company provides intelligent factory solutions, focusing on material handling and fire safety systems for the sewing industry and other sectors - The company's main business is providing intelligent factory solutions, focusing on the R&D, production, and sales of intelligent material transport, storage, sorting systems, and intelligent fire smoke extraction and ventilation systems[26] - Downstream customers are primarily in the apparel, home textiles, and home furnishing industries, with expansion into automotive parts, laundry, and express delivery sectors[26] - Intelligent manufacturing is a key component of the national strategic emerging industries, aiming for widespread digitalization in manufacturing enterprises by 2025[49] - The market for intelligent fire smoke extraction and ventilation systems is expected to experience rapid growth due to the implementation of mandatory national standards[50] Principal Business Activities The company offers intelligent factory equipment, including various intelligent logistics systems and intelligent fire safety systems - The company's intelligent factory equipment primarily includes intelligent logistics system products and intelligent fire smoke extraction and ventilation system products[27] - Intelligent logistics systems cover intelligent hanging production systems, various storage and sorting systems, and production management information software like MES and WMS[27][34][36] - Intelligent fire smoke extraction and ventilation systems include various types of skylight systems and corresponding software and control systems[27] Main Operating Models The company employs a modular production model, direct sales strategy, and market-driven R&D approach - The production model combines in-house processing, external procurement, and commissioned processing, with final assembly and software installation at the customer's site[44] - The sales model is primarily direct sales, with a nationwide network and expansion into Southeast Asia, South Asia, Europe, and North America[47] - The R&D model is market-demand oriented, with projects initiated and executed by the R&D center after evaluation and research[48] Industry Landscape The intelligent manufacturing sector is rapidly advancing, driven by policy support and strong demand for automation and digitalization - Intelligent manufacturing is a key focus of the "14th Five-Year Plan," aiming for widespread digitalization in manufacturing by 2025[49] - The sewing industry shows strong demand for intelligent upgrades, with leading companies integrating factory-wide logistics systems[50] - The market for intelligent fire smoke extraction and ventilation systems is poised for rapid growth, driven by new technical standards[50] - The industry has high technical barriers, requiring multidisciplinary talent and system integration capabilities[53] - The company is one of the few providers of complete intelligent factory solutions, with long-term partnerships with major brands like Nike, adidas, Anta, and HLA[54] Discussion and Analysis of Operations The company achieved steady growth in its core business through technological innovation and market expansion, though net profit was impacted by non-recurring items - In H1 2025, the company achieved revenue of RMB 185.04 million, a YoY increase of 1.01%; net profit attributable to shareholders was RMB 3.74 million, a YoY decrease of 32.02%; net profit excluding non-recurring items was RMB 2.22 million, a YoY increase of 107.68%[56] - The company continued to provide solutions to strategic domestic and international clients in intelligent logistics systems, expanding into new application areas like eyewear and power tools[57] - The company maintained strong R&D investment, holding 97 core technologies, 625 intellectual property rights, and 29 ongoing R&D projects[58][63] - The company established Ningbo Ruisheng Zhiyan Artificial Intelligence Technology Co, Ltd to develop AI software and hardware integration, fostering new quality productive forces[62] Core Competitiveness Analysis for the Reporting Period The company's core strengths lie in its integrated technology, deep industry experience, comprehensive product offerings, and strong client relationships - The company possesses 97 core technologies and 625 intellectual property rights (including 81 invention patents), with another 133 invention patents pending[63] - With extensive experience in the sewing industry, the company is expanding into automotive interiors, home manufacturing, and safety seats, focusing on standardizing process platforms[65] - As a leading domestic intelligent systems provider, the company offers key equipment for the entire production and logistics chain, from raw material intake to finished product dispatch[66] - The R&D team comprises 117 employees, accounting for 20.56% of the total workforce, with expertise across software, mechanical, electronic, and automation fields[69] Core Competitiveness Analysis The company's competitive edge is built on superior technology, extensive industry experience, a full-chain product portfolio, rapid solution delivery, and a strong customer base - The company has a complete, self-developed technology chain covering core hardware, software, and system integration, with 97 core technologies and 625 intellectual property rights as of the reporting period's end[63] - With deep expertise in the textile, apparel, and home furnishing sectors, the company has expanded into automotive interiors and accessories, leveraging rich industry experience[65] - The company provides key equipment for the entire production and logistics process, from raw material warehousing to finished product dispatch, and continuously innovates its intelligent fire safety systems[66] - The R&D team of 117 people, representing 20.56% of the total workforce, drives innovation across multiple professional domains[69] - The company maintains long-term, stable partnerships with the supply chains of renowned brands like Nike, adidas, Anta, and HLA, benefiting from excellent customer resources and brand reputation[70] Core Technologies and R&D Progress The company's core technologies span four major areas, with 12 new technologies added and 29 R&D projects underway during the period - The company's core technologies cover four main areas: automatic control and algorithms, mechanical structures, network communication and electronic components, and information management software[71] - During the reporting period, 12 new core technologies were added, including a "shortest distance selection algorithm for multi-path hanging bridges" and a "multi-functional telescopic hanger"[80] - The company has 29 ongoing R&D projects, such as the "intelligent multi-dimensional dynamic rail control system" and a "SaaS-based WeChat mini-program system"[82][89][91][93][95][97][99][101] Intellectual Property Applications and Grants in H1 2025 | IP Type | Applications This Period (Count) | Grants This Period (Count) | Cumulative Applications (Count) | Cumulative Grants (Count) | | :--- | :--- | :--- | :--- | :--- | | Invention Patent | 1 | 8 | 133 | 81 | | Utility Model Patent | 7 | 11 | 404 | 387 | | Design Patent | 0 | 0 | 97 | 97 | | Software Copyright | 2 | 1 | 35 | 34 | | Other | 0 | 0 | 30 | 26 | | Total | 10 | 20 | 699 | 625 | R&D Investment in H1 2025 | Indicator | Current Period (RMB) | Same Period Last Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 11,033,945.72 | 11,709,295.88 | -5.77 | | Total R&D Investment | 11,033,945.72 | 11,709,295.88 | -5.77 | | R&D Investment as a Percentage of Operating Revenue (%) | 5.96 | 6.39 | Decreased by 0.43 percentage points | R&D Personnel in H1 2025 | Indicator | Current Period | Same Period Last Year | | :--- | :--- | :--- | | Number of R&D Personnel (persons) | 117 | 110 | | R&D Personnel as a Percentage of Total Employees (%) | 20.56 | 17.66 | | Total R&D Personnel Compensation (RMB 10,000) | 905.70 | 902.07 | | Average R&D Personnel Compensation (RMB 10,000) | 7.74 | 8.20 | Risk Factors The company faces risks related to technology development, talent retention, business concentration, operational fluctuations, and market competition - There is a risk of failure in technology upgrades and new product development, especially concerning the impact of AI large models on intelligent manufacturing[107] - The company faces the risk of losing R&D personnel, which could disrupt technology development plans and capabilities[108] - The company's product and business areas are relatively concentrated, with a high dependence on the sewing industry, posing a risk of reliance on a single sector's demand[110] - The company's main business exhibits seasonal characteristics, which may lead to significant quarterly performance fluctuations or even losses[111] - Overseas sales are subject to risks from policy changes, geopolitical situations, and exchange rate fluctuations[112] - A high balance of accounts receivable poses a risk of bad debt or liquidity issues[114] - The comprehensive gross profit margin shows a downward trend, indicating a risk of further decline in the future[116] Key Operating Activities for the Reporting Period Core business revenue grew, but profits were affected by non-recurring items, while inventory and short-term borrowings increased Analysis of Main Business Operating revenue grew 1.01% due to market expansion, while administrative and finance costs rose and R&D expenses declined Analysis of Changes in Financial Statement Items for H1 2025 | Item | Current Period (RMB) | Same Period Last Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 185,044,034.63 | 183,191,799.19 | 1.01 | | Operating Costs | 136,252,401.51 | 136,426,076.94 | -0.13 | | Selling Expenses | 15,648,267.92 | 15,496,953.67 | 0.98 | | Administrative Expenses | 11,941,238.77 | 10,545,332.95 | 13.24 | | Finance Expenses | 117,595.81 | -694,336.07 | N/A | | R&D Expenses | 11,033,945.72 | 11,709,295.88 | -5.77 | | Net Cash Flow from Operating Activities | -31,816,699.01 | -14,473,168.12 | N/A | | Net Cash Flow from Investing Activities | -6,961,303.34 | -3,709,523.79 | N/A | | Net Cash Flow from Financing Activities | 23,197,883.39 | 41,134,564.15 | -43.60 | - The increase in administrative expenses was mainly due to higher service fees from intermediary agencies[122] - The change in finance expenses was primarily due to increased interest expenses from bank loans[122] - The decrease in R&D expenses was mainly due to reduced investment in materials and outsourced R&D for projects during the period[122] Explanation of Significant Changes in Profit from Non-core Business Non-core business activities, particularly government grants, had a significant impact on total profit Impact of Non-core Business on Total Profit | Item | Amount (RMB) | Percentage of Total Profit (%) | Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Other Income | 2,017,441.98 | 37.16 | Mainly from government grants | No | | Other Income | 1,439,179.67 | 26.51 | Mainly from government grants | Yes | Analysis of Assets and Liabilities Total assets grew 5.46%, while net assets decreased 2.28%, with notable changes in inventory, short-term borrowings, and lease liabilities Changes in Assets and Liabilities as of H1 2025 | Item | End of Current Period (RMB) | % of Total Assets | End of Previous Year (RMB) | % of Total Assets | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 49,717,553.28 | 5.84 | 67,305,231.05 | 8.33 | -26.13 | | Notes Receivable | 2,589,279.05 | 0.30 | 11,694,663.58 | 1.45 | -77.86 | | Accounts Receivable Financing | 24,220.04 | - | 3,774,171.54 | 0.47 | -99.36 | | Other Receivables | 6,791,647.45 | 0.80 | 4,202,406.18 | 0.52 | 61.61 | | Inventories | 238,504,082.63 | 28.01 | 171,120,395.42 | 21.19 | 39.38 | | Construction in Progress | - | - | 202,287.57 | 0.03 | -100 | | Right-of-use Assets | 5,335,132.11 | 0.63 | 2,358,502.95 | 0.29 | 126.21 | | Long-term Prepaid Expenses | 530,862.83 | 0.06 | 395,121.43 | 0.05 | 34.35 | | Deferred Tax Assets | 12,231,674.72 | 1.44 | 10,249,225.02 | 1.27 | 19.34 | | Short-term Borrowings | 136,881,906.92 | 16.07 | 101,026,541.87 | 12.51 | 35.49 | | Advances from Customers | 298,996.22 | 0.04 | 1,155,948.61 | 0.14 | -74.13 | | Contract Liabilities | 101,580,536.97 | 11.93 | 76,492,629.81 | 9.47 | 32.8 | | Taxes Payable | 2,851,742.38 | 0.33 | 4,663,961.07 | 0.58 | -38.86 | | Other Current Liabilities | 4,603,156.43 | 0.54 | 14,078,438.31 | 1.74 | -67.3 | | Lease Liabilities | 2,916,189.00 | 0.34 | 195,631.70 | 0.02 | 1390.65 | | Deferred Tax Liabilities | 748,028.04 | 0.09 | 383,102.36 | 0.05 | 95.26 | - Inventories increased by 39.38% due to increased stock preparation and investment in unaccepted work-in-progress projects[126] - Short-term borrowings increased by 35.49% due to an increase in bank loans and accounts receivable factoring[127] - Lease liabilities increased by 1390.65% due to the re-signing of operating lease contracts under the new lease standard, leading to higher lease payables[127] Major Restricted Assets as of H1 2025 | Item | Carrying Amount (RMB) | Book Value (RMB) | Restriction Type | Restriction Details | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,014,579.67 | 2,014,579.67 | Security Deposit | Notes deposit | | Accounts Receivable | 20,142,953.89 | 19,947,239.12 | Pledge | Accounts receivable factoring | | Total | 22,157,533.56 | 21,961,818.79 | / | / | Investment Status Analysis The company had no significant equity or non-equity investments during the period, with financial assets at fair value remaining stable - There were no significant equity or non-equity investments during the reporting period[132] Financial Assets Measured at Fair Value as of H1 2025 | Asset Class | Beginning Balance (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | | Other Equity Instrument Investments | 2,500,001.00 | 2,500,001.00 | | Total | 2,500,001.00 | 2,500,001.00 | Analysis of Major Subsidiaries and Investees The performance of the company's major subsidiaries varied, with some experiencing profit declines while others saw growth Operating Performance of Major Subsidiaries and Investees in H1 2025 (Unit: RMB 10,000) | Company Name | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Ningbo Sunrisetech Industrial Automation Co, Ltd | 500.00 | 39,334.35 | 13,489.94 | 12,797.92 | 575.93 | 520.95 | | Zhejiang Ruifeng Intelligent IoT Technology Co, Ltd | 13,446.20 | 32,482.90 | 25,446.43 | 1,210.94 | -638.50 | -637.11 | | Shenyang Ruisheng Intelligent Equipment Co, Ltd | 500.00 | 5,472.27 | -2,795.44 | 1,404.45 | -109.89 | -108.26 | | Beijing Sunrisetech Intelligent Technology Development Co, Ltd | 500.00 | 4,497.64 | 4,239.28 | 956.35 | 98.35 | 104.71 | | Ningbo O-ce Intelligent Technology Co, Ltd | 5,000.00 | 16,926.09 | 5,204.76 | 5,412.43 | 93.44 | 101.14 | | Ningbo Ruisheng Zhiyan Artificial Intelligence Technology Co, Ltd | 1,000.00 | 98.38 | 85.40 | - | -14.60 | -14.60 | - The decrease in operating profit and net profit for Ningbo Sunrisetech Industrial Automation Co, Ltd was mainly due to increased credit impairment losses on accounts receivable[136] - The decrease in operating revenue and net profit for Zhejiang Ruifeng Intelligent IoT Technology Co, Ltd was primarily due to reduced revenue recognition and lower gross profit[136] - During the reporting period, the company established Ningbo Ruisheng Zhiyan Artificial Intelligence Technology Co, Ltd and its subsidiary to engage in AI software development and hardware integration[137] Corporate Governance, Environment, and Society This section covers corporate governance matters, including management stability, profit distribution plans, and social responsibility initiatives Changes in Directors, Senior Management, and Core Technical Staff There were no changes in the company's directors, senior management, or core technical personnel during the reporting period - There were no changes in the company's directors, senior management, or core technical staff during the reporting period[139] Profit Distribution or Capitalization of Capital Reserve Plan The company has no profit distribution or capitalization of capital reserve plan for the first half of the year - The company has no profit distribution or capitalization of capital reserve plan for this semi-annual period[139] Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company did not have any equity incentive plans, employee stock ownership plans, or other employee incentive measures in place - During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures[140] Poverty Alleviation and Rural Revitalization Efforts The company donated RMB 200,000 to support earthquake relief efforts in Tibet as part of its social responsibility initiatives - In January 2025, the company donated RMB 200,000 to the Ningbo Fenghua District Charity Federation for an earthquake relief project in Tibet[140] Significant Matters This section details the fulfillment of commitments, litigation status, related-party transactions, and major contracts during the reporting period Fulfillment of Commitments All commitments made by the company and its key stakeholders in relation to the initial public offering have been strictly fulfilled - The company, its controlling shareholders, actual controllers, directors, and senior management have strictly fulfilled all commitments related to the initial public offering[142] - Commitments cover areas such as share price stability, prospectus accuracy, compensation for diluted returns, avoidance of competition, and regulation of related-party transactions[143][145][148][150][151][153][155][157][158][159][161][162][163][165][166][167] Major Litigation and Arbitration Matters The company was not involved in any major litigation or arbitration matters during the reporting period - The company had no major litigation or arbitration matters during the reporting period[168] Major Related-Party Transactions The company engaged in purchase and sales transactions with related parties and received several guarantees from them Related-Party Transactions for Goods/Services in H1 2025 | Related Party | Transaction Content | Current Period Amount (RMB) | Approved Transaction Limit (RMB) | Exceeded Limit | Previous Period Amount (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Ningbo Dongpurui Industrial Automation Co, Ltd | Purchase of goods | 4,293,523.48 | 12,000,000.00 | No | 1,225,322.64 | | Ningbo O-ce Energy Saving Technology Co, Ltd | Sale of goods | 2,960,710.28 | - | - | 0.00 | Guarantees Received by the Company in H1 2025 (Partial) | Guarantor | Guarantee Amount (RMB) | Start Date | End Date | Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Ningbo O-ce Energy Saving Technology Co, Ltd | 4,800,000.00 | May 9, 2022 | Three years from the debt maturity date under the agreement period ending May 9, 2025 | No | | Yuan Feng | 28,000,000.00 | March 1, 2023 | Three years from the maturity date of each credit facility under the agreement period ending March 1, 2028 | No | | Yuan Feng | 10,000,000.00 | June 18, 2024 | Three years from the day after the maturity of the main contract under the agreement period ending June 14, 2026 | No | | Yuan Feng | 40,000,000.00 | August 6, 2024 | Three years plus the maturity date of each loan under the credit agreement | No | Major Contracts and Their Performance The company's subsidiary signed sales contracts totaling $10.77 million for intelligent logistics systems, which are currently being executed - The company's wholly-owned subsidiary, Sunrisetech Automation, signed three sales contracts with SHINKI APPAREL (CAMBODIA) CO, LTD for a total of $10,767,361 to provide intelligent logistics systems, with the contracts currently in progress[178] Guarantees Provided by the Company and its Subsidiaries to Subsidiaries in H1 2025 (Partial) | Guarantor | Guaranteed Party | Guarantee Amount (RMB) | Start Date | End Date | | :--- | :--- | :--- | :--- | :--- | | Zhejiang Ruisheng Intelligent Technology Co, Ltd | Ningbo Sunrisetech Industrial Automation Co, Ltd | 28,000,000.00 | 2023/5/31 | 2032/3/1 | | Zhejiang Ruisheng Intelligent Technology Co, Ltd | Ningbo O-ce Intelligent Technology Co, Ltd | 5,200,000.00 | 2023/11/15 | 2029/11/15 | | Zhejiang Ruisheng Intelligent Technology Co, Ltd | Zhejiang Ruifeng Intelligent IoT Technology Co, Ltd | 10,000,000.00 | 2023/5/22 | 2036/3/16 | | Zhejiang Ruisheng Intelligent Technology Co, Ltd | Ningbo Sunrisetech Industrial Automation Co, Ltd | 10,000,000.00 | 2025/5/6 | 2029/5/22 | - At the end of the reporting period, the total outstanding balance of guarantees provided to subsidiaries was RMB 115,009,581.43, representing 23.62% of the company's net assets[176] Changes in Share Capital and Shareholders This section details changes in the company's share capital and provides an overview of its shareholder structure Changes in Share Capital The company's share capital structure remained unchanged during the period but increased after the period due to an equity distribution - During the reporting period, the total number of common shares and the share capital structure remained unchanged[180] - After the reporting period, the company completed its 2024 equity distribution, increasing the total share capital from 52,052,000 shares to 62,423,269 shares[181] - After the implementation of the share conversion plan, the basic earnings per share for the reporting period, calculated based on the new total share capital, is RMB 0.06, and the net assets per share is RMB 7.31[181] Shareholder Information As of the period end, the company had 2,974 common shareholders, with Yuan Feng being the largest shareholder - As of the end of the reporting period, the total number of common shareholders was 2,974[182] Top Ten Shareholders as of H1 2025 | Shareholder Name | Number of Shares Held (Shares) | Percentage (%) | Shareholder Type | | :--- | :--- | :--- | :--- | | Yuan Feng | 20,573,536 | 39.52 | Domestic Individual | | Ningbo Ruihesheng Venture Capital Partnership (Limited Partnership) | 9,033,073 | 17.35 | Domestic Non-state-owned Legal Entity | | Yuan Zuolin | 1,734,464 | 3.33 | Domestic Individual | | Huang Fucai | 724,843 | 1.39 | Domestic Individual | | Ningbo Liangli Investment Management Co, Ltd - Liangli Tianwang No 1 Private Equity Fund | 660,000 | 1.27 | Domestic Non-state-owned Legal Entity | | Zhuang Jiaqi | 650,642 | 1.25 | Domestic Individual | | Ma Lixiong | 650,642 | 1.25 | Domestic Individual | | Zhu Muqing | 580,300 | 1.11 | Domestic Individual | | Xu Hui | 500,000 | 0.96 | Domestic Individual | | Zhejiang Junhong Asset Management Co, Ltd - Junhong Qianjiang No 28 Private Equity Fund | 366,742 | 0.70 | Domestic Non-state-owned Legal Entity | - Yuan Feng is the company's controlling shareholder and actual controller, the actual controller of Ningbo Ruihesheng Venture Capital Partnership (Limited Partnership), and the father of Yuan Zuolin[186] Information on Directors, Senior Management, and Core Technical Staff There were no changes in shareholdings or equity incentives granted to directors, senior management, and core technical staff - Information regarding changes in shareholdings of directors, senior management, and core technical staff is not applicable for the reporting period[188] - Information regarding equity incentives granted to directors, senior management, and core technical staff is not applicable for the reporting period[188] Bond-related Matters This section confirms the absence of any corporate bonds, enterprise bonds, or other debt financing instruments during the period - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[190] - The company has no convertible corporate bonds[190] Financial Report This section presents the unaudited semi-annual financial statements and accompanying notes for 2025 Audit Report This semi-annual financial report has not been audited - This semi-annual report is unaudited[4][192] Financial Statements This section contains the consolidated and parent company financial statements for the first half of 2025 - Provides the Consolidated Balance Sheet, Parent Company Balance Sheet, Consolidated Income Statement, Parent Company Income Statement, Consolidated Cash Flow Statement, Parent Company Cash Flow Statement, Consolidated Statement of Changes in Equity, and Parent Company Statement of Changes in Equity[192][196][200][204][207][210][214][221] Consolidated Balance Sheet As of June 30, 2025, the company's total consolidated assets were RMB 851.65 million, with total liabilities of RMB 364.78 million Key Data from Consolidated Balance Sheet as of June 30, 2025 | Item | Amount (RMB) | | :--- | :--- | | Total Current Assets | 595,856,825.78 | | Total Non-current Assets | 255,788,683.39 | | Total Assets | 851,645,509.17 | | Total Current Liabilities | 348,629,111.88 | | Total Non-current Liabilities | 16,147,843.24 | | Total Liabilities | 364,776,955.12 | | Total Equity Attributable to Parent Company | 453,478,703.82 | | Minority Interests | 33,389,850.23 | | Total Equity | 486,868,554.05 | Consolidated Income Statement For the six months ended June 30, 2025, the company generated total revenue of RMB 185.04 million and a net profit of RMB 4.36 million Key Data from Consolidated Income Statement for Jan-Jun 2025 | Item | Amount (RMB) | | :--- | :--- | | Total Operating Revenue | 185,044,034.63 | | Total Operating Costs | 176,564,001.57 | | Total Profit | 5,429,079.35 | | Net Profit | 4,362,750.42 | | Net Profit Attributable to Parent Company Shareholders | 3,739,421.37 | | Basic Earnings Per Share (RMB/Share) | 0.07 | | Diluted Earnings Per Share (RMB/Share) | 0.07 | Consolidated Cash Flow Statement For the six months ended June 30, 2025, net cash outflow from operating activities was RMB 31.82 million Key Data from Consolidated Cash Flow Statement for Jan-Jun 2025 | Item | Amount (RMB) | | :--- | :--- | | Subtotal of Cash Inflows from Operating Activities | 198,475,795.58 | | Subtotal of Cash Outflows from Operating Activities | 230,292,494.59 | | Net Cash Flow from Operating Activities | -31,816,699.01 | | Subtotal of Cash Inflows from Investing Activities | 1,000.00 | | Subtotal of Cash Outflows from Investing Activities | 6,961,303.34 | | Net Cash Flow from Investing Activities | -6,961,303.34 | | Subtotal of Cash Inflows from Financing Activities | 95,620,000.00 | | Subtotal of Cash Outflows from Financing Activities | 72,422,116.61 | | Net Cash Flow from Financing Activities | 23,197,883.39 | | Closing Balance of Cash and Cash Equivalents | 47,702,973.61 | Company Basic Information Zhejiang Ruisheng Intelligent Technology Co, Ltd is a publicly listed company on the Shanghai Stock Exchange STAR Market - The company is a joint-stock limited company publicly listed on the Sci-Tech Innovation Board (STAR Market) of the Shanghai Stock Exchange[225] - The company is primarily engaged in the production, sales, and R&D of intelligent logistics systems and intelligent fire smoke extraction and ventilation systems[225] - This financial report was approved for issuance on August 27, 2025[225] Basis of Preparation of Financial Statements The financial statements are prepared on a going concern basis, with the company's ability to continue operations assessed as sound - The company's financial statements are prepared on a going concern basis[225] - An assessment confirms that the company has a strong ability to continue as a going concern for the next 12 months from the end of the reporting period[226] Significant Accounting Policies and Estimates This section details the key accounting policies and estimates applied in preparing the financial statements, including a retrospective adjustment for warranty provisions - The company's financial statements comply with the requirements of the Enterprise Accounting Standards, presenting a true and complete view of its financial position[228] - The company's fiscal year runs from January 1 to December 31, with a normal operating cycle of one year[229][230] - Financial assets are classified into three categories based on business model and contractual cash flow characteristics: amortized cost, fair value through other comprehensive income, and fair value through profit or loss[257] - The company retrospectively adjusted its accounting for assurance-type warranties in accordance with a new interpretation, resulting in a reclassification of RMB 4,270,175.61 from selling expenses to cost of sales for H1 2024[392] Taxes This section outlines the main taxes applicable to the company, including preferential tax treatments for high-tech enterprises and software products Main Taxes and Tax Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable value-added amount | 6%, 9%, 13% (VAT on software products is refunded on the portion exceeding a 3% tax burden) | | Urban Maintenance and Construction Tax | VAT and consumption tax payable | 7%, 5% | | Education Surcharge | VAT and consumption tax payable | 3% | | Local Education Surcharge | VAT and consumption tax payable | 2% | | Corporate Income Tax | Taxable income | See details below (15% or 25%) | | Property Tax | Assessed value / Rental income | 1.2%, 12% | | Urban Land Use Tax | Land area | 6 RMB/square meter | - The company and several of its subsidiaries are recognized as high-tech enterprises, qualifying for a reduced corporate income tax rate of 15%[395][396] - The company and its subsidiary, Beijing Sunrisetech Intelligent Technology Development Co, Ltd, benefit from a VAT refund policy for software products[398] - The company is eligible for an additional 5% input VAT deduction as an advanced manufacturing enterprise[398] Notes to Consolidated Financial Statement Items This section provides detailed notes on individual items in the consolidated financial statements, such as assets, liabilities, equity, and income statement accounts - As of June 30, 2025, restricted cash and cash equivalents amounted to RMB 2,014,579.67, primarily for note deposits[399] - At the end of the reporting period, the gross carrying amount of accounts receivable was RMB 312,181,537.94, with a provision for bad debts of RMB 54,664,286.99[414] - At the end of the reporting period, the book value of inventories was RMB 238,504,082.63, mainly comprising raw materials and work-in-progress[449] - At the end of the reporting period, the balance of short-term borrowings was RMB 136,881,906.92, consisting of guaranteed loans, credit loans, letters of credit, and accounts receivable factoring[493] - For H1 2025, operating revenue was RMB 185,044,034.63, and the cost of sales was RMB 136,252,401.51[530] - For H1 2025, R&D expenses were RMB 11,033,945.72, a year-on-year decrease of 5.77%[537] R&D Expenditures Total R&D expenditure for H1 2025 was RMB 11.03 million, all of which was expensed, marking a 5.77% decrease from the previous year R&D Expenditure by Nature for H1 2025 | Item | Current Period Amount (RMB) | Previous Period Amount (RMB) | | :--- | :--- | :--- | | Materials and Fuel | 451,184.39 | 993,106.00 | | Personnel Costs | 9,057,027.56 | 9,020,674.00 | | Other | 1,525,733.77 | 1,695,515.88 | | Total | 11,033,945.72 | 11,709,295.88 | | Of which: Expensed R&D | 11,033,945.72 | 11,709,295.88 | - Total R&D expenditure decreased by 5.77% year-on-year, mainly due to reduced investment in materials and outsourced R&D for projects[122][567] Changes in Consolidation Scope The consolidation scope changed with the addition of a new majority-owned subsidiary, Ningbo Ruisheng Zhiyan Artificial Intelligence Technology Co, Ltd - On April 15, 2025, the company established Ningbo Ruisheng Zhiyan Artificial Intelligence Technology Co, Ltd, holding a 51% stake with a subscribed capital of RMB 5.1 million, and included it in the consolidation scope[568][569] Interests in Other Entities This section discloses the company's interests in its subsidiaries, including financial information for its significant non-wholly-owned subsidiary - The company has several subsidiaries, including Ningbo Sunrisetech Industrial Automation, Beijing Sunrisetech, Shenyang Ruisheng, Zhejiang Ruifeng, Ningbo O-ce, and Ningbo Ruisheng Zhiyan[570][571] Financial Information of Significant Non-wholly-owned Subsidiary (Ningbo O-ce Intelligent Technology Co, Ltd) for H1 2025 | Item | Closing Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Minority Interest Percentage (%) | 48% | 48% | | Profit/Loss Attributable to Minority Interests for the Period | 485,455.48 | 1,161,637.02 | | Closing Balance of Minority Interests | 24,982,833.48 | 24,497,377.99 | | Operating Revenue | 54,124,299.27 | 44,044,229.23 | | Net Profit | 1,011,365.59 | 2,420,077.13 | | Cash Flow from Operating Activities | -15,029,830.18 | -3,085,743.74 | Government Grants The company recognized a total of RMB 3.46 million in government grants in the current period's profit and loss Government Grants Recognized in Current Profit and Loss for H1 2025 | Type | Current Period Amount (RMB) | Previous Period Amount (RMB) | | :--- | :--- | :--- | | Related to Income | 3,341,151.81 | 6,035,925.52 | | Related to Assets | 115,469.84 | 110,061.22 | | Total | 3,456,621.65 | 6,145,986.74 | Liability Items Involving Government Grants (Deferred Income) for H1 2025 | Financial Statement Item | Opening Balance (RMB) | Decrease this Period (RMB) | Closing Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 1,516,142.15 | 115,469.84 | 1,400,672.31 | Asset-related | Financial Instrument Risks The company actively manages credit, liquidity, and market risks associated with its financial instruments - The company's main financial instruments include cash, bank deposits, notes receivable, accounts receivable, other receivables, short-term borrowings, and accounts payable[580] - Credit risk, primarily from bank deposits and receivables, is managed by selecting highly-rated financial institutions and conducting customer credit assessments[582] - Liquidity risk is managed by maintaining sufficient cash reserves and backup credit facilities[583] - Market risk, including interest rate risk from borrowings and currency risk from USD-denominated assets, is managed by matching foreign currency revenues and expenses and potentially using forward contracts[585][586][587] Transferred Financial Assets with Continuing Involvement in H1 2025 | Item | Asset Transfer Method | Amount of Assets with Continuing Involvement (RMB) | Amount of Liabilities with Continuing Involvement (RMB) | | :--- | :--- | :--- | :--- | | Accounts receivable, short-term borrowings, and long-term borrowings | Accounts receivable factoring | 20,142,953.89 | 20,142,953.89 | Fair Value Disclosures The company's assets measured at fair value totaled RMB 2.52 million, primarily consisting of Level 3 fair value measurements Assets and Liabilities Measured at Fair Value as of H1 2025 | Item | Level 3 Fair Value Measurement (RMB) | Total (RMB) | | :--- | :--- | :--- | | I. Continuous Fair Value Measurement | | | | (VI) Assets at FVTOCI | 2,524,221.04 | 2,524,221.04 | | 1. Accounts Receivable Financing | 24,220.04 | 24,220.04 | | 2. Other Equity Instrument Investments | 2,500,001.00 | 2,500,001.00 | | Total Assets at Continuous Fair Value | 2,524,221.04 | 2,524,221.04 | - Other equity instrument investments are measured using their investment cost as a reasonable estimate of fair value[593] Related Parties and Transactions This section discloses the company's related parties and details transactions involving purchases, sales, and guarantees - Related parties include the spouse of the actual controller, companies under common control, and companies controlled by related individuals[596] Related-Party Transactions for Goods/Services in H1 2025 | Related Party | Transaction Content | Current Period Amount (RMB) | Previous Period Amount (RMB) | | :--- | :--- | :--- | :--- | | Ningbo Dongpurui Industrial Automation Co, Ltd | Purchase of goods | 4,293,523.48 | 1,225,322.64 | | Ningbo O-ce Energy Saving Technology Co, Ltd | Sale of goods | 2,960,710.28 | 0.00 | Related-Party Guarantees Received by the Company in H1 2025 (Partial) | Guarantor | Guarantee Amount (RMB) | Start Date | End Date | | :--- | :--- | :--- | :--- | | Ningbo O-ce Energy Saving Technology Co, Ltd | 4,800,000.00 | May 9, 2022 | Three years from the debt maturity date under the agreement period ending May 9, 2025 | | Yuan Feng | 28,000,000.00 | March 1, 2023 | Three years from the maturity date of each credit facility under the agreement period ending March 1, 2028 | | Yuan Shida, Yuan Ke | 10,000,000.00 | December 12, 2022 | Two years from the debt maturity date under the agreement period ending December 12, 2032 | Outstanding Balances with Related Parties as of H1 2025 | Item | Related Party | Closing Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | :--- | | Contract Assets | Ningbo O-ce Energy Saving Technology Co, Ltd | 208,707.84 | 111,892.61 | | Contract Liabilities | Ningbo O-ce Energy Saving Technology Co, Ltd | 1,728,985.68 | 4,586,359.83 | | Accounts Payable | Ningbo Dongpurui Industrial Automation Co, Ltd | 2,522,644.39 | 1,756,876.16 | Share-based Payment The company had no share-based payment arrangements during the reporting period - During the reporting period, the company had no equity instruments, equity-settled share-based payments, cash-settled share-based payments, or related expenses[609][610] Commitments and Contingencies The company had no significant commitments or contingencies to disclose for the reporting period - The company had no significant commitments during the reporting period[610] - The company had no significant contingencies to disclose during the reporting period[610] Subsequent Events After the reporting period, the company invested in establishing a new associated company, Zhejiang Tianji Intelligent Control System Co, Ltd - After the reporting period, on July 18, 2025, the company invested in establishing Zhejiang Tianji Intelligent Control System Co, Ltd, holding a 45% stake with a subscribed capital of RMB 4.5 million[610] Other Significant Matters The company's operations are managed as two reportable segments: intelligent logistics systems and intelligent fire safety systems - Management considers the company's operations to consist of two segments: the intelligent logistics systems business and the intelligent fire smoke extraction and ventilation systems business[612] Segment Financial Information for H1 2025 | Item | Intelligent Logistics Systems (RMB) | Intelligent Fire Safety Systems (RMB) | Inter-segment Elimination (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | :--- | | Current Assets | 445,304,352.20 | 150,563,337.71 | 10,864.13 | 595,856,825.78 | | Non-current Assets | 237,091,082.49 | 18,697,600.90 | - | 255,788,683.39 | | Current Liabilities | 235,898,221.35 | 112,741,754.66 | 10,864.13 | 348,629,111.88 | | Non-current Liabilities | 11,676,229.04 | 4,471,614.20 | - | 16,147,843.24 | | Operating Revenue | 131,542,261.06 | 54,124,299.27 | 622,525.70 | 185,044,034.63 | | Operating Profit | 4,743,363.39 | 934,392.62 | 52,177.87 | 5,625,578.14 | | Net Profit | 3,395,736.02 | 1,011,365.59 | 44,351.19 | 4,362,750.42 | Notes to Parent Company Financial Statement Items This section provides detailed notes on key items in the parent company's financial statements, including receivables and long-term investments Parent Company Accounts Receivable by Aging as of H1 2025 | Aging | Closing Balance (RMB) | Opening Balance (RMB) | | :--- | :--- | :--- | | Within 1 year | 5,446,981.36 | 21,308,760.14 | | 1 to 2 years | 6,161,639.73 | 14,407,670.98 | | 2 to 3 years | 4,839,025.51 | 3,405,614.90 | | 3 to 4 years | 1,182,296.97 | 1,226,118.95 | | 4 to 5 years | 294,780.00 | 345,134.80 | | Over 5 years | 3,539,592.36 | 3,464,667.56 | | Total | 21,464,315.93 | 44,157,967.33 | Parent Company Long-term Equity Investments as of H1 2025 | Item | Closing Book Value (RMB) | Opening Book Value (RMB) | | :--- | :--- | :--- | | Investments in Subsidiaries | 324,500,000.00 | 323,500,000.00 | | Total | 324,500,000.00 | 323,500,000.00 | Parent Company Operating Revenue and Costs for H1 2025 | Item | Current Period Revenue (RMB) | Current Period Cost (RMB) | Previous Period Revenue (RMB) | Previous Period Cost (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 13,855,439.99 | 3,127,690.12 | 30,362,017.51 | 21,120,514.88 | | Other Business | 243,192.54 | 456.23 | 520,390.54 | 6,792.02 | | Total | 14,098,632.53 | 3,128,146.35 | 30,882,408.05 | 21,127,306.90 | Supplementary Information This section provides a detailed breakdown of non-recurring profit and loss items and calculates the return on equity and earnings per share Detailed Breakdown of Non-recurring Profit and Loss for H1 2025 | Item | Amount (RMB) | | :--- | :--- | | Gains and losses on disposal of non-current assets | 102,566.86 | | Government grants included in current profit or loss (non-recurring) | 2,017,441.98 | | Other non-operating income and expenses | -196,498.79 | | Less: Income tax effects | 196,772.01 | | Less: Minority interest effects (after tax) | 208,009.97 | | Total | 1,518,728.07 | Return on Equity and Earnings Per Share for H1 2025 | Profit for the Period | Weighted Average ROE (%) | Basic EPS | Diluted EPS | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders | 0.80 | 0.07 | 0.07 | | Net profit attributable to common shareholders (excluding non-recurring items) | 0.48 | 0.04 | 0.04 |