晨丰科技(603685) - 2025 Q2 - 季度财报

Important Notice Important Notice The company's management guarantees the report's authenticity, accuracy, and completeness, noting it is unaudited and contains risk disclaimers for forward-looking statements - The Board of Directors, Board of Supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the report and assume legal responsibility[5] - This semi-annual report is unaudited[5] - Forward-looking statements in the report regarding future plans and development strategies do not constitute substantive commitments, and investors are advised to be aware of investment risks[5] Section 1 Definitions Common Terminology Definitions This section defines common terms used in the report, including company names, regulatory bodies, laws, the reporting period, and abbreviations for key subsidiaries - The reporting period refers to January 1, 2025, to June 30, 2025[10] - It is clarified that "the Company," "this Company," and "Chenfeng Technology" all refer to Zhejiang Chenfeng Technology Co, Ltd[10] - Major subsidiaries and related parties are listed, including Hong Kong Jifei, Hangzhou Hongwo, Jiangxi Chenhang, and Chenfeng India[10] Section 2 Company Profile and Key Financial Indicators I. Company Information This section provides basic company information, including its name, abbreviation, and legal representative, Ding Min - The company's Chinese name is 浙江晨丰科技股份有限公司, abbreviated as 晨丰科技[13] - The company's legal representative is Ding Min[13] II. Contact Person and Methods This section provides the contact information for the Secretary of the Board, Hong Sha - The Secretary of the Board is Hong Sha, with the contact address at No 10, Park 4th Road, Yanguan Town, Haining City, Jiaxing, Zhejiang Province[14] III. Changes in Basic Information This section discloses the historical changes to the company's registered address, with the latest change occurring on February 2, 2024 - The company's registered address was changed on February 2, 2024, from No 4 Xinghua Road to No 8 Tiantong Road, Yanguan Town, Haining City, Jiaxing, Zhejiang Province[15] IV. Information Disclosure and Place of Record This section specifies the designated newspaper and website for information disclosure - The designated newspaper for information disclosure is the "Shanghai Securities News," and the semi-annual report is published on the Shanghai Stock Exchange website (www.sse.com.cn)[16](index=16&type=chunk) V. Company Stock Profile This section provides basic information about the company's A-share stock listed on the Shanghai Stock Exchange - The company's stock is classified as A-share, listed on the Shanghai Stock Exchange under the name "Chenfeng Technology" and stock code "603685"[17] VII. Key Accounting Data and Financial Indicators Operating revenue decreased by 7.31%, but net profit attributable to shareholders grew by 23.70%, driven by the new energy business, with a significant 40.36% increase in operating cash flow Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) (Yuan) | Prior Year Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 580,241,138.96 | 626,018,240.19 | -7.31 | | Total Profit | 9,049,301.49 | 8,485,867.33 | 6.64 | | Net Profit Attributable to Shareholders | 13,866,471.00 | 11,210,162.16 | 23.70 | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) | 9,316,524.25 | 6,575,409.23 | 41.69 | | Net Cash Flow from Operating Activities | 165,614,897.95 | 117,992,974.25 | 40.36 | | Net Assets Attributable to Shareholders (Period-end) | 1,165,157,820.07 | 1,185,428,831.68 | -1.71 | | Total Assets (Period-end) | 3,644,078,966.37 | 3,653,414,314.58 | -0.26 | Key Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 0.08 | 0.07 | 14.29 | | Diluted Earnings Per Share (Yuan/Share) | 0.08 | 0.07 | 14.29 | | Basic EPS (Excl. Non-recurring Items) (Yuan/Share) | 0.06 | 0.04 | 50.00 | | Weighted Average Return on Net Assets (%) | 1.17 | 0.95 | Increase of 0.22 percentage points | | Weighted Average ROE (Excl. Non-recurring Items) (%) | 0.78 | 0.56 | Increase of 0.22 percentage points | - The increase in net profit was primarily due to the expanded scale and increased profitability of the new energy power generation and distribution businesses[21] - The change in net cash flow from operating activities was mainly due to a decrease in cash outflows for purchasing goods[21] IX. Non-recurring Profit and Loss Items and Amounts Non-recurring profit and loss for the period totaled RMB 4.55 million, mainly comprising government subsidies and gains on asset disposal Non-recurring Profit and Loss Items and Amounts for H1 2025 | Non-recurring Profit and Loss Item | Amount (Yuan) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | 1,171,019.63 | | Government Grants Recognized in Current Profit or Loss | 7,405,204.00 | | Reversal of Impairment Provision for Individually Tested Receivables | 173,947.62 | | Net Profit/Loss of Subsidiaries from Beginning of Period to Merger Date under Common Control Combination | -2,328,964.78 | | Other Non-operating Income and Expenses | 213,249.01 | | Less: Income Tax Impact | 2,104,035.84 | | Less: Minority Interest Impact (After Tax) | -19,527.11 | | Total | 4,549,946.75 | Section 3 Management's Discussion and Analysis I. Industry and Principal Business Activities The company operates in lighting components and new energy, focusing on green lighting and clean energy development amid industry trends toward smart technology and carbon neutrality - The company's dual business segments are positioned around low-carbon development and high-efficiency utilization, focusing on green lighting components and clean energy development[27] - In H1 2025, China's LED lighting product exports reached $20.2 billion, accounting for 78% of total exports, a slight decrease of 1.2% year-on-year, with its share further increasing[30] - In H1 2025, China's newly installed wind power capacity reached 51.39 million kW, bringing the cumulative capacity to 573 million kW, a year-on-year increase of 22.7%[33] - In H1 2025, China's newly installed photovoltaic capacity reached 212 million kW, bringing the cumulative capacity to approximately 1.1 billion kW, a year-on-year increase of 54.1%[34] - The company's incremental distribution network business operates on an "integrated generation-distribution-sales" model, supplying power to industrial parks from market transactions and connected new energy stations[35] (I) Company's Industries The company operates in the lighting manufacturing and new energy sectors, capitalizing on trends toward smart lighting and renewable energy growth under national carbon goals - The company's lighting business is classified under "Lighting Fixture Manufacturing (C387)," while its new energy and power services fall under "Wind Power Generation (D4415)," "Solar Power Generation (D4416)," and "Power Supply (D4420)"[28] - In H1 2025, China's LED lighting product exports reached $20.2 billion, accounting for 78% of total exports, a slight decrease of 1.2% year-on-year, with its share further increasing[30] - The integration of smart lighting and IoT technology is expected to be a key development direction for the LED industry[31] - In H1 2025, China's newly installed renewable energy capacity was 268 million kW, a year-on-year increase of 99.3%, accounting for approximately 91.5% of new installations[33] - Incremental distribution networks refer to power distribution networks invested, constructed, and operated by social capital, excluding existing assets of grid companies[34] (II) Principal Business Activities The company's main businesses include lighting components and new energy operations, with distinct production, procurement, and sales models for each segment - The lighting business's main products include LED bulb heat sinks, lamp holders, PCBs, and metal components[38] - The power business's main product is electricity, with customers including state-owned and incremental distribution grid companies[38] - The lighting business employs a procurement-on-demand model, with major raw materials being copper, aluminum, iron, and PC/PA plastics, managed through a strict supplier approval process[38] - The lighting business primarily uses a direct sales model for the domestic market and is a qualified supplier for renowned brands like Signify, Osram, and Opple Lighting[41] - The power business operates an "integrated generation-distribution-sales" model for its incremental distribution network, while power from its wind and photovoltaic stations is fully purchased by grid companies[41][45] II. Discussion and Analysis of Operations During the period, the company advanced its dual-business strategy, achieving profit growth through new energy expansion and entering the electricity-computing integration sector - The company's strategy is a dual-engine growth model, with the traditional lighting business providing a stable foundation and the emerging new energy business driving growth[46] - In the reporting period, the company achieved operating revenue of RMB 580 million, a decrease of 7.31% YoY, and net profit attributable to shareholders of RMB 13.87 million, an increase of 23.70% YoY[46] - The company has established a portfolio of five incremental distribution network projects in key regions like Inner Mongolia and Jilin[46] - The self-operated "Naimanqi Industrial Park Incremental Distribution Pilot Project" has been operational since September 2022, serving 40 enterprises within a 17.11 sq km area[47] - The company has officially entered the electricity-computing integration field by establishing a wholly-owned subsidiary, Zhejiang BeiWang Zhisuan Technology, to develop low-cost, high-green-power computing center solutions[49][50] - The company completed the acquisition of a 94.2752% stake in Liaoning BeiWang XinNeng to optimize governance, reduce related-party transactions, and acquire key qualifications and expertise[50] - The company has received CSRC approval for a private placement of shares and will proceed with the refinancing project to enhance its capital strength and optimize its capital structure[54] III. Analysis of Core Competencies The company possesses strong competencies in both lighting and power sectors, leveraging brand reputation, customer relationships, R&D, and strategic resource advantages - In the lighting components sector, the company has a rich portfolio of high-quality customers, serving as a stable supplier to renowned brands like Signify, Osram, and Opple Lighting[55] - As a national high-tech enterprise, the company holds 164 patents, including 19 invention patents, supported by provincial-level technology centers and research institutes[56] - The new energy business utilizes an "integrated source-grid-load-storage" smart energy system to couple new energy power clusters with smart microgrids, enabling full local consumption of electricity[59] - The company's new energy power stations are primarily located in Inner Mongolia, a region with abundant wind and solar resources, accounting for 57% and 21% of the national technical developable capacity, respectively[61] - The controlling shareholder and actual controller, Mr Ding Min, has cultivated a professional management team with deep expertise across the entire power industry chain since 2016[62] (I) Lighting Industry The company's lighting business thrives on strong brand recognition, a stable high-profile client base, robust R&D capabilities, and advanced manufacturing processes - The company is a stable supplier to internationally renowned enterprises like Signify, Osram, and Opple Lighting, establishing a solid market position[55] - The company holds a total of 164 patents, including 19 invention patents, demonstrating industry-leading technology conversion efficiency and quality[56] - The management team is agile and focused on strengthening the lighting components business, fostering a stable and cohesive workforce[57] - The company is advancing the automation, informatization, and intelligence of its manufacturing processes, with its self-developed automated LED heat sink production line filling a domestic gap[58] (II) Power Industry The company's power sector competitiveness is driven by its "local consumption" model, replicable business integration, strategic location in resource-rich Inner Mongolia, and experienced management - The company's incremental distribution network and power generation businesses utilize an "integrated source-grid-load-storage" smart energy system to achieve full local consumption of new energy[59] - The innovative "integrated generation-distribution-sales" business model for incremental distribution networks has been standardized and is being scaled up in key energy regions like Eastern Inner Mongolia and Northeast China[60] - The company's new energy power stations are primarily located in Inner Mongolia, a region with abundant wind and solar resources, with technical developable capacities accounting for 57% and 21% of the national total, respectively[61] - The controlling shareholder, Mr Ding Min, has cultivated a professional management team with over 8 years of average industry experience covering the entire power chain since 2016[62] IV. Key Operating Performance This section analyzes major financial statement item changes, noting revenue decline from the lighting segment, profit growth from new energy, and significant balance sheet movements Analysis of Financial Statement Item Changes for H1 2025 | Item | Current Period (Yuan) | Prior Year Period (Yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 580,241,138.96 | 626,018,240.19 | -7.31 | Decrease in lighting segment revenue | | Operating Costs | 484,744,252.73 | 520,941,131.77 | -6.95 | Lower cost recognition due to decreased lighting revenue | | Selling Expenses | 4,293,903.16 | 5,639,034.21 | -23.85 | Lower staff costs and sales fees due to decreased lighting revenue | | Administrative Expenses | 31,315,546.12 | 33,181,956.44 | -5.62 | Decrease in depreciation, amortization, and entertainment expenses | | Finance Costs | 30,062,945.25 | 31,479,157.94 | -4.50 | Decrease in bank interest expenses | | R&D Expenses | 16,856,364.10 | 21,797,282.86 | -22.67 | Decrease in R&D expenditures | | Net Cash Flow from Operating Activities | 165,614,897.95 | 117,992,974.25 | 40.36 | Decrease in cash outflows for purchasing goods | | Net Cash Flow from Investing Activities | -28,266,218.35 | -92,606,875.20 | 69.48 | Decrease in cash outflows for acquiring long-term assets | | Net Cash Flow from Financing Activities | -61,656,692.21 | -52,787,716.14 | -16.80 | Payment for acquisition of Liaoning BeiWang XinNeng under common control | Changes in Assets and Liabilities for H1 2025 | Item | Current Period-end (Yuan) | % of Total Assets | Prior Period-end (Yuan) | % of Total Assets | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 246,261,706.01 | 6.76 | 184,802,906.06 | 5.06 | 33.26 | | Prepayments | 15,973,730.59 | 0.44 | 25,692,783.30 | 0.70 | -37.83 | | Other Receivables | 9,441,169.25 | 0.26 | 47,010,769.27 | 1.29 | -79.92 | | Long-term Equity Investments | 12,712,740.45 | 0.35 | 8,083,032.33 | 0.22 | 57.28 | | Long-term Deferred Expenses | 1,272,990.98 | 0.03 | 1,912,101.37 | 0.05 | -33.42 | | Notes Payable | 15,000,000.00 | 0.41 | 29,000,000.00 | 0.79 | -48.28 | | Employee Benefits Payable | 10,947,891.71 | 0.30 | 21,029,349.33 | 0.58 | -47.94 | | Other Current Liabilities | 235,153.60 | 0.01 | 803,685.27 | 0.02 | -70.74 | - Overseas assets amounted to RMB 484,806,328.66, accounting for 13.30% of total assets[71] Major Restricted Assets as of Period-end | Item | Carrying Amount (Yuan) | Book Value (Yuan) | Restriction Type | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 23,336,494.89 | 23,336,494.89 | Pledge | Pledged deposits, land deposits, guarantee deposits, etc | | Fixed Assets | 534,064,850.23 | 439,170,873.52 | Mortgage | Loan collateral | | Intangible Assets | 49,062,128.54 | 43,085,353.88 | Mortgage | Loan collateral | | Accounts Receivable | 73,728,631.96 | 58,992,913.40 | Pledge | Loan collateral | | Construction in Progress | 177,615,529.69 | 177,615,529.69 | Mortgage | Loan collateral | | Total | 857,807,635.31 | 742,201,165.38 | / | / | V. Other Disclosures This section discloses the company's exposure to various market, operational, and financial risks - The lighting business faces risks from raw material price fluctuations, intensified market competition, and high supplier concentration[77][78][79] - The new energy business is exposed to regional concentration risk, delays in renewable energy subsidy payments, and risks of wind and solar power curtailment[79][80] - The company faces control stability risk if the private placement is not completed and the actual controller, Ding Min, and related parties do not fulfill their shareholding commitments[80] - Financial risks include accounts receivable collection risk, rising debt-to-asset ratio, inventory write-down risk, and foreign exchange risk[82][83] Section 4 Corporate Governance, Environmental, and Social Matters I. Changes in Directors, Supervisors, and Senior Management This section discloses changes in the company's board, including the resignation of Ms Tong Xiaoyan and the appointment of Mr Wang Xing - Ms Tong Xiaoyan resigned from her positions as a non-independent director and a member of the Audit Committee of the fourth Board of Directors due to personal work changes[86] - Mr Wang Xing was elected as a non-independent director candidate for the fourth Board of Directors and appointed to the Audit Committee[87] II. Profit Distribution or Capitalization of Capital Reserve Plan This section discloses that the company has no proposed profit distribution or capitalization plan for the semi-annual period - The company's proposed semi-annual profit distribution or capitalization of capital reserve plan is "None"[88] IV. Environmental Information of Listed Companies and Major Subsidiaries Included in the Mandatory Environmental Information Disclosure List This section discloses that the company and its subsidiary, Jingdezhen Hongyi Electronics, are included in the list of enterprises required to disclose environmental information - Zhejiang Chenfeng Technology Co, Ltd and Jingdezhen Hongyi Electronic Technology Co, Ltd are included in the list of enterprises required to disclose environmental information by law[90] Section 5 Important Matters I. Fulfillment of Commitments This section details the strict fulfillment of commitments by the actual controller, shareholders, and senior management regarding non-competition and related-party transactions - The actual controller, Ding Min, has committed to resolving non-competition issues by refraining from engaging in businesses similar to the company's and giving the company priority to acquire any competing businesses[92][93] - The actual controller, Ding Min, has committed to regulating related-party transactions based on principles of objectivity, fairness, and market pricing[93] - The controlling shareholder and actual controller, Ding Min, has committed to a 36-month lock-up period for shares subscribed through this issuance if his shareholding exceeds 30%[93] - During the reporting period, the company, its controlling shareholder, and actual controller had no integrity issues such as unfulfilled court judgments or overdue significant debts[100] X. Material Related-Party Transactions This section discloses related-party transactions, highlighting that target companies under performance commitments achieved 53.55% of their annual profit target in H1 2025 - The seven target companies under performance commitments collectively achieved a net profit of RMB 26.24 million in H1 2025, representing 53.55% of the RMB 49 million annual performance target[103] Section 6 Changes in Share Capital and Shareholders I. Changes in Share Capital The company's total shares increased slightly due to convertible bond conversions, and a significant block of restricted shares held by Ding Min was released from lock-up - During the reporting period, the company's total shares increased by 1,174 due to the conversion of "Chenfeng Convertible Bonds," bringing the total to 169,009,125 shares[112] - 33,800,381 restricted shares held by Ding Min were released from lock-up on February 1, 2025[113] II. Shareholder Information As of the period end, the company had 11,414 shareholders, with Hong Kong Jifei as the largest shareholder and Ding Min as the second largest - As of the end of the reporting period, the total number of common shareholders was 11,414[114] Top Ten Shareholders as of Period-end | Shareholder Name | Shares Held (Shares) | Percentage (%) | Share Status | Quantity (Shares) | Shareholder Type | | :--- | :--- | :--- | :--- | :--- | :--- | | Hong Kong Jifei Industrial Co, Ltd | 39,546,000 | 23.40 | Pledged | 39,523,810 | Foreign Legal Entity | | Ding Min | 33,800,381 | 20.00 | None | 0 | Domestic Individual | | Fang Donghui | 14,130,635 | 8.36 | None | 0 | Domestic Individual | | Hangzhou Hongwo Private Capital Investment Co, Ltd | 12,514,700 | 7.40 | None | 0 | Domestic Non-SOE | | Hangzhou Chonghu Private Fund Management Co, Ltd - Chonghu-Gaoya Private Securities Investment Fund | 9,293,270 | 5.50 | None | 0 | Other | | Wei Yiji | 6,323,368 | 3.74 | Pledged | 742,141 | Domestic Individual | | Pan Weizhi | 2,693,246 | 1.59 | None | 0 | Domestic Individual | | Wang Jun | 2,476,352 | 1.47 | None | 0 | Domestic Individual | | Ying Youqun | 1,316,600 | 0.78 | None | 0 | Domestic Individual | | Jiao Baojun | 1,052,400 | 0.62 | None | 0 | Domestic Individual | - Hong Kong Jifei and Wei Yiji signed a "Voting Rights Waiver Agreement" with Ding Min, waiving the voting rights corresponding to their total shareholdings[117][118] Section 7 Bond-related Matters II. Convertible Corporate Bonds This section details the status of the "Chenfeng Convertible Bond," with a minimal conversion amount during the period and an outstanding balance of RMB 414.88 million - The company issued RMB 415 million of "Chenfeng Convertible Bonds" on August 23, 2021, with a 6-year term, convertible from February 28, 2022[122] - During the reporting period, a cumulative amount of RMB 15,000 of the convertible bonds was converted into 1,174 shares[126] - As of the period-end, the outstanding amount of convertible bonds was RMB 414,882,000, representing 99.9716% of the total issuance[126] Historical Adjustments of Chenfeng Convertible Bond Conversion Price | Adjustment Date | Adjusted Conversion Price (Yuan) | Disclosure Date | | :--- | :--- | :--- | | July 8, 2022 | 12.94 | July 4, 2022 | | May 29, 2024 | 12.79 | May 22, 2024 | | September 26, 2024 | 12.78 | September 19, 2024 | | June 4, 2025 | 12.77 | May 28, 2025 | | Latest Conversion Price as of Period-end | 12.77 | / | - As of the period-end, the company's debt-to-asset ratio was 67.49%, a slight increase from 66.89% at the beginning of the period[129] Section 8 Financial Report I. Audit Report This semi-annual financial report is unaudited - This semi-annual report is unaudited[132] II. Financial Statements This section presents the consolidated and parent company's financial statements for H1 2025, providing a comprehensive view of the company's financial position and performance Key Consolidated Balance Sheet Data (June 30, 2025) | Item | June 30, 2025 (Yuan) | December 31, 2024 (Yuan) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 246,261,706.01 | 184,802,906.06 | | Accounts Receivable | 319,504,625.55 | 347,733,898.62 | | Inventory | 272,940,211.59 | 293,499,656.92 | | Total Assets | 3,644,078,966.37 | 3,653,414,314.58 | | Short-term Borrowings | 286,487,487.45 | 319,791,721.71 | | Accounts Payable | 580,410,323.26 | 508,256,351.87 | | Total Liabilities | 2,459,550,070.61 | 2,443,896,622.45 | | Total Equity Attributable to Parent Company | 1,165,157,820.07 | 1,185,428,831.68 | Key Consolidated Income Statement Data (Jan-Jun 2025) | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 580,241,138.96 | 626,018,240.19 | | Total Operating Costs | 572,108,415.88 | 616,613,837.30 | | Total Profit | 9,049,301.49 | 8,485,867.33 | | Net Profit | 9,147,484.96 | 8,948,324.04 | | Net Profit Attributable to Parent Company Shareholders | 13,866,471.00 | 11,210,162.16 | | Basic Earnings Per Share (Yuan/Share) | 0.08 | 0.07 | Key Consolidated Cash Flow Statement Data (Jan-Jun 2025) | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 165,614,897.95 | 117,992,974.25 | | Net Cash Flow from Investing Activities | -28,266,218.35 | -92,606,875.20 | | Net Cash Flow from Financing Activities | -61,656,692.21 | -52,787,716.14 | | Net Increase in Cash and Cash Equivalents | 77,197,069.78 | -25,831,146.54 | | Cash and Cash Equivalents at End of Period | 222,925,211.12 | 261,498,441.63 | III. Company Basic Information The company, listed on the Shanghai Stock Exchange in 2017, primarily engages in lighting components and new energy power generation and distribution - The company's stock was listed on the Shanghai Stock Exchange on November 27, 2017[162] - The company's principal businesses are the R&D, production, and sale of lighting components, as well as the development and operation of wind and photovoltaic power stations and incremental distribution networks[162] - These financial statements were approved for issuance by the company's fourth Board of Directors at its fifth interim meeting on August 27, 2025[162] IV. Basis of Preparation for Financial Statements The company's financial statements are prepared on a going concern basis, with no material uncertainties identified - These financial statements are prepared on a going concern basis[164] - The company has no events or conditions that cast significant doubt on its ability to continue as a going concern for the next 12 months from the reporting date[165] V. Significant Accounting Policies and Estimates This section details the company's significant accounting policies and estimates for key financial items, all in accordance with corporate accounting standards - The company has formulated specific accounting policies and estimates for transactions such as financial instrument impairment, fixed asset depreciation, construction in progress, intangible assets, and revenue recognition[166] - The company uses a 12-month period as the standard for classifying assets and liabilities as current or non-current[169] - Assets and liabilities acquired in a business combination are measured at their carrying amounts in the ultimate controlling party's consolidated financial statements on the combination date[172] - A financial asset or liability is recognized when the company becomes a party to the contractual provisions of the instrument and is subsequently measured at amortized cost or fair value based on its classification[177][178] - The company assesses impairment for financial assets measured at amortized cost and debt instrument investments measured at FVOCI based on an expected credit loss model[183] - The company's revenue recognition principle involves identifying individual performance obligations within a contract and determining whether they are satisfied over time or at a point in time[225] VI. Taxation This section discloses the company's main taxes and rates, detailing various tax incentives such as VAT refunds and reduced income tax rates for eligible enterprises Main Taxes and Rates | Tax Type | Rate | | :--- | :--- | | Value-Added Tax (VAT) | 1%, 3%, 6%, 13%, 18% | | Urban Maintenance and Construction Tax | 5%, 7% | | Property Tax | 1.2%, 12% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Land Use Tax | 2.4-6.0 Yuan/sqm | Entities with Different Corporate Income Tax Rates | Taxpayer Name | Income Tax Rate (%) | | :--- | :--- | | Guosheng Power Co, Ltd and 20 other subsidiaries | 20% | | The Company, Jiangxi Chenhang, Mingyi Electronics, Hongyi Electronics, Guangxin Power | 15% | | Chenfeng India | 25.17% | | All other entities | 25% | - The company benefits from a 50% VAT refund policy for wind power generation and VAT exemptions for small-scale taxpayers[241] - The company and its subsidiary Hongyi Electronics, as high-tech enterprises, are subject to a 15% corporate income tax rate; Mingyi Electronics and Jiangxi Chenhang are provisionally taxed at 15%[242][243] - Enterprises in encouraged industries located in the western region (such as Guangxin Power) are subject to a reduced corporate income tax rate of 15%[245] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes on consolidated financial statement items, disclosing balances, changes, and specific analyses of significant assets and liabilities - Period-end cash and cash equivalents balance was RMB 246.26 million, including RMB 23.34 million of restricted funds[248] - Period-end accounts receivable book value was RMB 319.50 million, with a bad debt provision of RMB 44.21 million[256] - Period-end inventory book value was RMB 272.94 million, with an inventory write-down provision of RMB 16.39 million[290] - Period-end fixed assets book value was RMB 1.78 billion, with accumulated depreciation of RMB 599.28 million[305] - Period-end construction in progress book value was RMB 425.52 million, primarily for the Naimanqi Industrial Park green power project and the Chifeng Qihang wind power project[312][313] - Period-end bonds payable (convertible corporate bonds) book value was RMB 446.64 million[353] VIII. R&D Expenditures This section presents the company's R&D expenditures for the period, which totaled RMB 16.86 million, with all expenses being expensed R&D Expenditures by Nature for H1 2025 | Item | Current Period (Yuan) | Prior Period (Yuan) | | :--- | :--- | :--- | | Employee Compensation | 9,094,026.57 | 12,626,654.87 | | Material Inputs | 5,458,138.23 | 6,645,907.29 | | Depreciation & Amortization | 1,854,437.28 | 1,951,630.09 | | Other Inputs | 449,762.02 | 573,090.61 | | Total | 16,856,364.10 | 21,797,282.86 | - All R&D expenditures in the current period were expensed, with no capitalized R&D costs[380] IX. Changes in Consolidation Scope This section discloses changes in the consolidation scope, including a business combination under common control and the establishment of three new subsidiaries - A business combination under common control occurred with Liaoning BeiWang XinNeng Power Technology Co, Ltd on May 27, 2025, acquiring a 94.28% equity interest[408] - Three new wholly-owned or controlled subsidiaries were established: BeiWang Technology, BeiWang Zhisuan, and Beijing BeiWang XinNeng Power Supply[413] X. Interests in Other Entities This section lists the composition of the corporate group and discloses key financial information for significant non-wholly-owned subsidiaries and other equity investments - The company has several wholly-owned and controlled subsidiaries operating in the commercial, manufacturing, and power sectors[415][416][417][418][419] Key Financial Information of Significant Non-wholly-owned Subsidiary Hongyi Electronics (H1 2025) | Indicator | Period-end Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Current Assets | 94,084,342.99 | 117,922,125.78 | | Non-current Assets | 101,055,526.65 | 108,237,897.25 | | Total Assets | 195,139,869.64 | 226,160,023.03 | | Current Liabilities | 1,974,527.82 | 227,635,546.37 | | Non-current Liabilities | 206,980,327.96 | 2,103,479.96 | | Total Liabilities | 208,954,855.78 | 229,739,026.33 | | Operating Revenue | 87,041,431.32 | 143,641,509.17 | | Net Profit | -10,235,986.01 | -2,309,163.37 | | Total Comprehensive Income | -10,235,986.01 | -2,309,163.37 | | Cash Flow from Operating Activities | 7,865,159.55 | 19,277,147.55 | - The total book value of investments in non-significant joint ventures and associates was RMB 12.71 million, with a total net profit of RMB 0.63 million for the period[425] XI. Government Grants This section discloses government grants, with a closing balance of RMB 18.83 million in deferred income and RMB 8.47 million recognized in current profit or loss Liabilities Related to Government Grants (H1 2025) | Financial Statement Item | Beginning Balance (Yuan) | Transferred to Other Income (Yuan) | Other Changes (Yuan) | Ending Balance (Yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 19,920,704.70 | 1,064,821.19 | -27,474.54 | 18,828,408.97 | Asset-related | | Total | 19,920,704.70 | 1,064,821.19 | -27,474.54 | 18,828,408.97 | / | Government Grants Recognized in Current Profit or Loss (H1 2025) | Type | Current Period (Yuan) | Prior Period (Yuan) | | :--- | :--- | :--- | | Asset-related | 1,064,821.19 | 1,168,845.58 | | Income-related | 7,405,204.00 | 1,348,969.00 | | Total | 8,470,025.19 | 2,517,814.58 | XII. Financial Instrument Risks This section outlines the company's exposure to credit, liquidity, and market risks from financial instruments and details its risk management strategies - The company's risk management objective is to balance risk and return, minimizing the negative impact of risks on operating performance[430] - Credit risk, mainly from cash and receivables, is managed by depositing funds with high-credit-rated financial institutions and conducting regular customer credit assessments[432] - Liquidity risk is managed through a combination of financing instruments like notes settlement and bank loans, with an appropriate mix of long-term and short-term financing[433] Financial Liabilities by Remaining Maturity (June 30, 2025) | Item | Book Value (Yuan) | Undiscounted Contractual Amount (Yuan) | Within 1 Year (Yuan) | 1-3 Years (Yuan) | Over 3 Years (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Bank Borrowings | 1,304,163,875.00 | 1,345,745,529.90 | 409,285,376.29 | 215,382,359.17 | 721,077,794.44 | | Notes Payable | 15,000,000.00 | 15,000,000.00 | 15,000,000.00 | - | - | | Accounts Payable | 580,410,323.26 | 580,410,323.26 | 580,410,323.26 | - | - | | Other Payables | 37,765,741.69 | 37,765,741.69 | 37,765,741.69 | - | - | | Bonds Payable | 446,635,400.53 | 495,783,990.00 | 17,135,194.93 | 478,648,795.07 | - | | Lease Liabilities | 3,388,503.59 | 4,490,334.07 | 586,511.74 | 309,823.48 | 3,593,998.85 | | Subtotal | 2,387,363,844.07 | 2,479,195,918.92 | 1,060,183,147.91 | 694,340,977.72 | 724,671,793.29 | - Market risk, primarily interest rate and foreign exchange risk, is controlled through appropriate financial instrument portfolios and foreign currency transactions[436][437] XIII. Fair Value Disclosures This section discloses the fair value of assets measured at fair value, which are primarily determined using Level 3 inputs Fair Value of Assets and Liabilities Measured at Fair Value (June 30, 2025) | Item | Level 3 Fair Value Measurement (Yuan) | Total (Yuan) | | :--- | :--- | :--- | | Trading Financial Assets | 7,388,302.00 | 7,388,302.00 | | Receivables Financing | 72,774,269.26 | 72,774,269.26 | | Other Non-current Financial Assets | 101,184,000.00 | 101,184,000.00 | | Total Assets Continuously Measured at Fair Value | 181,346,571.26 | 181,346,571.26 | - The fair value of trading financial assets is determined by estimating future cash flows, receivables financing is based on face value, and other equity investments are valued at cost as a reasonable estimate of fair value[444] XIV. Related Parties and Transactions This section details the company's related parties and transactions, including procurement, sales, guarantees, and fund lending with entities controlled by key personnel - Related parties include entities controlled by the actual controller Ding Min (eg, Jinqilin New Energy) and the former actual controller He Wenjian (eg, Haining Qiu Jing Investment)[446] Related-Party Transactions for Procurement of Goods/Services (H1 2025) | Related Party | Transaction Content | Current Period Amount (Yuan) | Approved Transaction Limit (Yuan) | Exceeded Limit | | :--- | :--- | :--- | :--- | :--- | | Jinqilin New Energy Co, Ltd | O&M Fees | 2,386,305.85 | 5,000,000.00 | No | | Jinqilin New Energy Co, Ltd | Office Services | 107,415.10 | 200,000.00 | No | | Total | 2,493,720.93 | 5,200,000.00 | / | Related-Party Transactions for Sale of Goods/Services (H1 2025) | Related Party | Transaction Content | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | :--- | | Jinqilin New Energy Co, Ltd | Service Fees | 184,257.90 | 196,658.90 | | Total | 184,257.90 | 430,426.52 | - The company has guarantees provided by related parties including Jinqilin New Energy Co, Ltd, Ding Min, and Zhang Rui, with total guaranteed amounts in the hundreds of millions of Yuan[454] - The company has fund lending arrangements with Peng Jintian and He Wenjian, with the amount borrowed from He Wenjian being RMB 26,000,000.00[452] - The seven target companies under performance commitments achieved a combined net profit of RMB 26.24 million in H1 2025, representing 53.55% of the annual performance target[460] XV. Share-based Payments This section discloses that the company had no share-based payment arrangements during the reporting period - The company had no share-based payment arrangements during the reporting period[159] XVI. Commitments and Contingencies This section discloses outstanding commitments for new energy projects totaling over RMB 400 million and issued guarantees exceeding RMB 14 million, with no significant contingencies Partially Unfulfilled Major Engineering Contracts (Selected) | Project | Supplier | Currency | Total Contract Price (Yuan) | Amount Paid (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Chifeng Dongshan Qixin 66KV Substation and Line Project | Jinqilin New Energy Co, Ltd | RMB | 28,301,633.00 | - | | Guangxing Green Power Grid Connection Project | Jinqilin New Energy Co, Ltd | RMB | 45,833,888.00 | 4,500,000.00 | | Naimanqi Industrial Park Incremental Distribution Green Power Project Phase I | Jinqilin New Energy Co, Ltd | RMB | 147,866,600.00 | 112,000,000.00 | | Chifeng Qihang 22.5MW Wind Power Project | Liaoning Luan'ao Power Construction Co, Ltd | RMB | 89,325,000.00 | 8,500,000.00 | - As of June 30, 2025, the company's domestic subsidiaries had issued multiple guarantees totaling RMB 14,460,000.00[463] - The company had no significant contingencies to disclose at the end of the reporting period[464] XVII. Post-Balance Sheet Events This section discloses that there were no significant non-adjusting events, profit distributions, or other material matters after the balance sheet date - There were no significant non-adjusting events, profit distributions, sales returns, or other material matters between the reporting date and the semi-annual report disclosure date[464][465] XVIII. Other Important Matters This section provides segment information, dividing the business into lighting and new energy segments, and includes notes on the parent company's financial statements - The company determines its reportable segments based on business divisions, which are lighting business and new energy business[465] Financial Information by Reportable Segment (H1 2025) | Item | Lighting Business Segment (Yuan) | New Energy Business Segment (Yuan) | Inter-segment Elimination (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 464,030,120.46 | 116,324,848.07 | 113,829.57 | 580,241,138.96 | | Operating Costs | 412,271,847.95 | 72,586,234.35 | 113,829.57 | 484,744,252.73 | | Total Assets | 2,333,259,003.92 | 1,785,819,962.45 | 475,000,000.00 | 3,644,078,966.37 | - The parent company's period-end accounts receivable book value was RMB 154.93 million, with a bad debt provision of RMB 11.75 million[472] - The parent company's period-end other receivables book value was RMB 569.15 million, primarily consisting of amounts due from consolidated related parties[480][486] XIX. Notes to Parent Company Financial Statement Items This section provides detailed notes on the parent company's financial statements, focusing on receivables and long-term equity investments Parent Company Accounts Receivable by Aging (June 30, 2025) | Aging | Period-end Carrying Amount (Yuan) | Beginning Carrying Amount (Yuan) | | :--- | :--- | :--- | | Within 1 year | 160,912,872.19 | 178,587,062.99 | | 1 to 2 years | 849,299.80 | 23,555,020.58 | | 2 to 3 years | 3,182,388.26 | 2,479,591.03 | | Over 3 years | 1,741,407.03 | 1,818,121.01 | | Total | 166,685,967.28 | 206,439,795.61 | Parent Company Other Receivables by Nature (June 30, 2025) | Nature | Period-end Carrying Amount (Yuan) | Beginning Carrying Amount (Yuan) | | :--- | :--- | :--- | | Amounts due from consolidated related parties | 560,923,405.10 | 571,383,309.86 | | Government relocation compensation | 8,090,396.00 | 8,090,396.00 | | Deposits and guarantees | 50,000.00 | 550,000.00 | | Temporary payments and other | 214,045.90 | 231,691.60 | | Total | 569,277,847.00 | 580,255,397.46 | - The parent company's investments in subsidiaries had a period-end book value of RMB 782.82 million, with a new investment of RMB 35,000,000.00 in Liaoning Shenfu Beifang Power Grid Technology Co, Ltd during the period[495][496] XX. Supplementary Information This section provides supplementary data, including a breakdown of non-recurring profit and loss and key return metrics Detailed Breakdown of Non-recurring Profit and Loss for H1 2025 | Item | Amount (Yuan) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | 1,171,019.63 | | Government Grants Recognized in Current Profit or Loss | 7,405,204.00 | | Reversal of Impairment Provision for Individually Tested Receivables | 173,947.62 | | Net Profit/Loss of Subsidiaries from Beginning of Period to Merger Date under Common Control Combination | -2,328,964.78 | | Other Non-operating Income and Expenses | 213,249.01 | | Less: Income Tax Impact | 2,104,035.84 | | Less: Minority Interest Impact (After Tax) | -19,527.11 | | Total | 4,549,946.75 | Return on Net Assets and Earnings Per Share for H1 2025 | Profit for the Period | Weighted Average Return on Net Assets (%) | Earnings Per Share (Yuan/Share) | | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders | 1.17 | 0.08 | | Net Profit Attributable to Common Shareholders (Excl. Non-recurring Items) | 0.78 | 0.06 |