深桑达(000032) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions Important Notice The company's board, supervisors, and senior management guarantee report accuracy and completeness, with financial reports declared true and accurate; no semi-annual cash dividends or share conversions are planned - Company's board, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming individual and joint legal responsibility[4] - Company head Chen Shigang, chief accountant Li Andong, and head of accounting department Zhao Peng declare the financial report in this semi-annual report is true, accurate, and complete[4] - Company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] Table of Contents This section outlines the report's nine main chapters, covering key disclosures from company profile to financial data - The report contains nine main chapters, from important notices to other submitted data, comprehensively covering company operations and financial status[7] Definitions This section defines key terms and company entities, including the company, its shareholders, subsidiaries, and industry technical terms, for clear understanding - Company/This Company/SED refers to Shenzhen SED Industry Co., Ltd[11] - CEC/Group Company refers to China Electronics Corporation[11] - IaaS refers to Infrastructure-as-a-Service, providing IT infrastructure as a service over the network, billed based on actual resource usage[11][12] - AI refers to Artificial Intelligence, a new technical science researching and developing theories, methods, technologies, and application systems to simulate, extend, and expand human intelligence[12] Part II Company Profile and Key Financial Indicators Company Profile The company, Shenzhen SED Industry Co., Ltd. (SED A, 000032), is listed on the Shenzhen Stock Exchange Basic Company Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | SED A | | Stock Code | 000032 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | 深圳市桑达实业股份有限公司 | | Foreign Name | SHENZHEN SED INDUSTRY CO., LTD. | Contact Persons and Information The company's Board Secretary is Li Andong, and Securities Affairs Representative is Zhu Chenxing, both located at 15-17F, SED Technology Building, No. 1 Keji Road, Nanshan District, Shenzhen, with shared phone, fax, and email Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Li Andong | 15-17F, SED Technology Building, No. 1 Keji Road, Nanshan District, Shenzhen | 0755-86316073 | 0755-86316006 | sed@sedind.com | | Securities Affairs Representative | Zhu Chenxing | 15-17F, SED Technology Building, No. 1 Keji Road, Nanshan District, Shenzhen | 0755-86316073 | 0755-86316006 | sed@sedind.com | Other Information During the reporting period, there were no changes in the company's registered address, office address, postal code, website, email, or information disclosure and placement locations, with details available in the 2024 annual report - Company contact information unchanged during the reporting period, refer to 2024 annual report[16] - Information disclosure and placement locations unchanged during the reporting period, refer to 2024 annual report[17] Key Accounting Data and Financial Indicators Operating revenue decreased by 29.52%, net profit attributable to shareholders by 157.29%, and cash outflow increased, primarily due to accounting policy changes Key Accounting Data and Financial Indicators (Current Period vs. Prior Year) | Indicator | Current Period (yuan) | Prior Year Adjusted (yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 23,434,208,172.61 | 33,250,166,315.01 | -29.52% | | Net Profit Attributable to Listed Company Shareholders | -97,489,074.55 | -37,891,360.83 | -157.29% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Gains/Losses) | -113,242,367.84 | -89,448,599.83 | -26.60% | | Net Cash Flow from Operating Activities | -4,458,353,212.89 | -2,841,337,600.80 | Net cash outflow increased by 1,617.0156 million yuan | | Basic Earnings Per Share (yuan/share) | -0.0857 | -0.0333 | -157.36% | | Diluted Earnings Per Share (yuan/share) | -0.0857 | -0.0333 | -157.36% | | Weighted Average Return on Net Assets | -1.52% | -0.59% | Decreased by 0.93 percentage points | | Total Assets (Period-End) | 67,907,205,916.92 | 70,306,974,766.69 | -3.41% | | Net Assets Attributable to Listed Company Shareholders (Period-End) | 6,253,887,925.10 | 6,494,762,605.59 | -3.71% | - Company implemented "Interpretation No. 18 of Accounting Standards for Business Enterprises" regarding guarantee-type quality assurance not constituting a single performance obligation, retrospectively adjusting accounting policies[20] Differences in Accounting Data under Domestic and Overseas Accounting Standards During the reporting period, the company reported no differences in net profit and net assets between financial reports disclosed under International Accounting Standards, overseas accounting standards, and Chinese Accounting Standards - Company reported no differences in net profit and net assets between International Accounting Standards and Chinese Accounting Standards[21] - Company reported no differences in net profit and net assets between overseas accounting standards and Chinese Accounting Standards[22] Non-Recurring Gains and Losses and Amounts The company's total non-recurring gains and losses for the current period amounted to 15,753,293.29 yuan, primarily including government subsidies, reversal of impairment provisions for individually assessed receivables, and other non-operating income/expenses Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains/losses from disposal of non-current assets (including reversal of impairment provisions) | -731,034.45 | | Government grants recognized in current profit or loss (excluding those closely related to normal operations, compliant with national policies, enjoyed by fixed standards, and with continuous impact on company profit/loss) | 25,763,219.46 | | Reversal of impairment provisions for individually assessed receivables | 4,949,496.45 | | Other non-operating income and expenses apart from the above | -5,760,756.03 | | Less: Income tax impact | 2,342,082.84 | | Minority interest impact (after tax) | 6,125,549.30 | | Total | 15,753,293.29 | Part III Management Discussion and Analysis Main Businesses Engaged by the Company During the Reporting Period The company actively implements China Electronics' strategy, focusing on core businesses and R&D in digital and industrial services - Company actively implements China Electronics' strategic mission, focusing on core businesses, continuously advancing technological innovation and product R&D, meeting user needs with self-developed products and services, and promoting industrial innovation and digital transformation[26] - During the reporting period, the company's cleanroom business achieved operating revenue exceeding 20 billion yuan, and overseas business new contract value increased by approximately 300% to 3.3 billion yuan[39][42] Digital and Information Services The company aims to be a leading exclusive cloud and AI solution provider under the "China Electronics Cloud" brand, offering cloud computing, data, and AI products and services, alongside digital terminal products - "China Electronics Cloud" is the sole cloud product and brand of China Electronics, aiming to be a leading exclusive cloud and AI solution provider[27] - During the reporting period, CECSTACK exclusive cloud platform released V5.3, supporting classified and national defense clouds, and supporting key projects like Hebei Provincial Government Cloud and Beijing Financial Asset Exchange's new-generation cloud platform[28] - According to IDC, China Electronics Cloud ranks among Top vendors in the intelligent computing market and Top 5 in the government exclusive cloud PaaS market, also selected as a best practice vendor in China's data space market[29] - Data intelligence platform iterated to V6.1, integrating large model technology into the entire data storage, processing, and circulation chain, and has obtained public data authorization from 20 provinces and cities[31][32] - In AI, the company built a "3+3+N" product service system, forming a full-link AI solution from data, models, applications to services, and reached cooperation intentions with multiple national laboratories and central enterprises for high-quality dataset construction[33][34][35] - SED Wireless's self-developed GSM-R communication terminal products maintain a leading market share in China and secured an order for Tanzania railways, continuously expanding overseas markets[36][37] Industrial Services As a leader in high-tech industrial services, the company provides cleanroom solutions, intelligent operation and maintenance, data center solutions, digital heating and new energy services, precision logistics, and property leasing - Company's cleanroom overall solutions consolidated its leading position in advantageous industries like semiconductors and new displays, achieving operating revenue exceeding 20 billion yuan during the reporting period[39] - Company's overseas business new contract value was approximately 3.3 billion yuan, a year-on-year increase of approximately 300%, actively expanding into "Belt and Road" countries[42] - Intelligent operation and maintenance solutions fully support domestic solutions, with China Electronics Second Construction Co., Ltd. independently developing smart hardware for industrial environment monitoring[43] - Data center overall solution business actively explores collaborative models of joint investment, construction, and operation, and landed a project in a large intelligent computing center for an operator[44] - Digital heating and new energy business heating area reached 118 million square meters, and biomass cogeneration demonstration project cumulatively supplied 253 million kWh of green electricity and 29,000 tons of green industrial steam[45][46] - China Electronics Xingtang Company obtained 5 national invention patents and completed the application for a provincial-level technology innovation center in Hebei Province[46] - Other businesses include precision logistics services featuring "temperature control + shock absorption" and property leasing in Shenzhen's Huaqiangbei and Science Park areas[47][48] Technological Innovation During the reporting period, the company achieved positive results in technological innovation, releasing over ten new products and solutions, including a DeepSeek-based visual reasoning large model and a smart factory operation and maintenance platform - Company released over ten products, including a DeepSeek-based visual reasoning large model, event reasoning all-in-one machine, smart factory operation and maintenance platform, low-altitude management service platform, and solutions like cloud-data integrated trusted data space and new-generation smart photovoltaic operation and maintenance[49] - 23 national and provincial-level R&D projects in progress met their planned milestones, and 1 new special project for computing power strengthening was approved by the Ministry of Industry and Information Technology[49] - Company received 1 Beijing Science and Technology Progress First Prize, 1 Hebei Provincial Technology Invention First Prize, and 3 Social Science and Technology Awards; newly applied for 105 invention patents, obtained 69 authorized invention patents; added 67 software copyrights; and led or participated in the release of 4 national standards and over 30 group standards[49] Core Competitiveness Analysis Core competitiveness stems from aligning with China Electronics' strategy, fulfilling central enterprise mission, supply chain advantages, and market-oriented mechanisms - As a key secondary enterprise of China Electronics, the company aligns with the Group's strategic layout in cloud computing and data businesses, assisting governments and state-owned enterprises in digital transformation with a secure digital foundation, possessing supply chain advantages[50] - All high-tech industrial service subsidiaries have completed mixed-ownership reform and employee stock ownership; China Electronics Cloud Company in the information service sector also completed mixed-ownership reform and introduced core employee stock ownership, establishing market-oriented mechanisms[51] - The company's digital and information services sector has 1,330 technology talents, accounting for 78.8%, with 95% being young technology professionals, and deep cooperation with universities like the University of Electronic Science and Technology of China and Harbin Institute of Technology[52] - The company is a professional provider and leading enterprise in cleanroom overall solutions, holding a domestic technology-leading position in cleanroom engineering for electronics, life sciences, and new energy industries, and has repeatedly won awards like the "Luban Prize"[53] - China Electronics Cloud CECSTACK is a large-scale, highly secure, reliable, and high-performance exclusive cloud product developed based on "cloud-native + AI-native" concepts, providing full-stack cloud services to empower various industries with "AI+"[54] - The company accelerates its layout in high-quality dataset construction, having reached cooperation intentions with multiple national key laboratories and central enterprise groups for dataset construction, striving for a first-mover advantage[55] Main Business Analysis Main business revenue decreased by 29.52% and net profit by 157.29%, driven by reduced high-tech engineering services and increased cash outflow, despite 39.04% overseas revenue growth Year-on-Year Changes in Key Financial Data | Indicator | Current Period (yuan) | Prior Year (yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 23,434,208,172.61 | 33,250,166,315.01 | -29.52% | Mainly due to intense market competition, the company's high-tech industrial engineering services operating revenue decreased compared to the prior year | | Operating Cost | 21,275,048,822.91 | 30,077,676,444.56 | -29.27% | Mainly due to intense market competition, the company's high-tech industrial engineering services operating revenue decreased compared to the prior year, leading to a corresponding decrease in operating costs | | Administrative Expenses | 600,678,594.34 | 901,621,964.96 | -33.38% | Mainly due to decreased operating revenue, the company actively adjusted its operating strategy, strengthened cost reduction and efficiency improvement measures, leading to a year-on-year decrease in period expenses | | Net Profit | 23,329,148.30 | 147,897,138.89 | -84.23% | Mainly due to decreased operating revenue and gross profit margin in the company's high-tech industrial engineering services compared to the prior year, leading to a year-on-year decrease in net profit | | Net Profit Attributable to Parent Company Owners | -97,489,074.55 | -37,891,360.83 | -157.29% | Mainly due to decreased operating revenue and gross profit margin in the company's high-tech industrial engineering services compared to the prior year, leading to a year-on-year decrease in net profit attributable to parent company | | Net Cash Flow from Operating Activities | -4,458,353,212.89 | -2,841,337,600.80 | Net cash outflow increased by 1,617.0156 million yuan | Mainly due to decreased cash received from sales of goods and provision of services as business scale declined in the current period | Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Current Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Amount (yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Digital and Information Services | 529,196,303.58 | 2.26% | 682,382,977.68 | 2.05% | -22.45% | | | Industrial Services | 22,905,011,869.03 | 97.74% | 32,567,783,337.33 | 97.95% | -29.67% | | By Product | Digital and Information Services | 529,196,303.58 | 2.26% | 682,382,977.68 | 2.05% | -22.45% | | | High-Tech Industrial Engineering Services | 21,660,732,089.84 | 92.43% | 31,316,256,464.70 | 94.18% | -30.83% | | | Digital Heating and New Energy Services | 1,102,037,029.69 | 4.70% | 1,112,012,753.73 | 3.34% | -0.90% | | | Other Industrial Services | 142,242,749.50 | 0.61% | 139,514,118.90 | 0.42% | 1.96% | | By Region | Domestic | 22,505,477,845.43 | 96.04% | 32,582,218,340.65 | 97.99% | -30.93% | | | Overseas | 928,730,327.18 | 3.96% | 667,947,974.36 | 2.01% | 39.04% | Main Business Cost Composition | Item | Current Period Amount (yuan) | Proportion of Operating Cost | Prior Year Amount (yuan) | Proportion of Operating Cost | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Equipment and Raw Materials | 9,720,561,031.73 | 45.69% | 12,687,206,428.82 | 42.18% | -23.38% | | Subcontracting Costs | 9,093,080,634.14 | 42.74% | 13,647,876,705.15 | 45.38% | -33.37% | | Labor Costs | 1,251,560,411.98 | 5.88% | 1,655,298,704.81 | 5.50% | -24.39% | | Freight Forwarding Costs | 115,400,073.28 | 0.54% | 87,053,442.10 | 0.29% | 32.56% | | Project Management Costs and Others | 1,094,446,671.78 | 5.15% | 2,000,241,163.68 | 6.65% | -45.28% | | Total | 21,275,048,822.91 | 100.00% | 30,077,676,444.56 | 100.00% | -29.27% | - Company's operating revenue decreased by 29.52% year-on-year, with high-tech industrial engineering services revenue decreasing by 30.83% and digital and information services revenue decreasing by 22.45%, mainly due to reduced overall engineering business scale and slower project settlement[63] - Company's operating cost decreased by 29.27% year-on-year, mainly due to reduced operating revenue, leading to a corresponding decrease in equipment and raw material costs, and subcontracting costs[64] Non-Core Business Analysis The company's non-core businesses negatively impacted total profit, with investment income at -43,589,188.88 yuan, accounting for -18.67% of total profit, primarily from equity method long-term equity investments and disposal of subsidiaries, which are not sustainable Impact of Non-Core Businesses on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -43,589,188.88 | -18.67% | Mainly investment income from long-term equity investments accounted for by the equity method and disposal of subsidiaries | Not sustainable | | Asset Impairment | -10,563,483.23 | -4.53% | Mainly impairment provisions for receivables, contract assets, and long-term equity investments | Not sustainable | | Non-Operating Income | 4,635,443.41 | 1.99% | Mainly gains from disposal of non-current assets, compensation for breach of contract, and income from unpayable payables | Not sustainable | | Non-Operating Expenses | 10,003,327.98 | 4.29% | Mainly losses from disposal of non-current assets, external donations, and late payment fees/penalties | Not sustainable | Analysis of Assets and Liabilities At period-end, total assets were 67.907 billion yuan, a 3.41% decrease; monetary funds decreased by 34.41%, while inventory increased by 44.04%; right-of-use assets and lease liabilities significantly increased due to finance leases; the company is actively managing its high asset-liability ratio Significant Changes in Asset Composition | Item | Current Period-End Amount (yuan) | Proportion of Total Assets | Prior Year-End Adjusted Amount (yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 7,871,355,750.82 | 11.59% | 12,000,998,339.23 | 17.07% | -5.48% | Monetary funds decreased by 34.41% from the beginning of the period, mainly due to increased cash payments for goods and services in the current period | | Inventory | 1,551,443,052.83 | 2.28% | 1,077,124,945.62 | 1.53% | 0.75% | Inventory increased by 44.04% from the beginning of the period, mainly due to increased cost aggregation for digital and information services and high-tech industrial engineering projects under construction in the current period | | Right-of-Use Assets | 450,046,071.49 | 0.66% | 161,900,234.48 | 0.23% | 0.43% | Right-of-use assets increased by 177.98% from the beginning of the period, mainly due to increased finance lease assets for high-tech industrial engineering projects in the current period | | Lease Liabilities | 376,149,511.17 | 0.55% | 119,712,502.88 | 0.17% | 0.38% | Lease liabilities increased by 214.21% from the beginning of the period, mainly due to increased finance lease-related liabilities for high-tech industrial engineering projects in the current period | - Company's asset-liability ratio is relatively high; it will continuously reduce it through setting warning lines, cost reduction and efficiency improvement, strengthening liquidity management, and expanding capital replenishment mechanisms[95] Asset Restrictions as of the End of the Reporting Period | Item | Period-End Book Value (yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 2,003,842,303.73 | Bank acceptance bill deposits, letter of guarantee deposits, time deposits held to maturity, etc | | Notes Receivable | 83,667,804.20 | Endorsed or discounted and not yet due at the balance sheet date | | Accounts Receivable | 1,030,982,329.71 | Pledged for loans | | Fixed Assets | 211,452,568.59 | Mortgaged for loans | | Intangible Assets | 53,188,998.45 | Mortgaged for loans | | Total | 3,383,134,004.68 | | Investment Analysis The company's investment amounted to 194.73 million yuan, a 23.02% year-on-year decrease, primarily in R&D bases and infrastructure, with raised funds mainly for digital city R&D and loan repayment Investment Amount During the Reporting Period | Indicator | Amount (yuan) | | :--- | :--- | | Investment Amount in Current Period | 194,729,672.82 | | Investment Amount in Prior Year | 252,957,048.75 | | Change Percentage | -23.02% | Significant Non-Equity Investments in Progress | Project Name | Investment Method | Fixed Asset Investment | Industry Involved | Current Period Investment Amount (yuan) | Cumulative Actual Investment Amount as of Period-End (yuan) | Funding Source | Project Progress | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | China Electronics Cloud R&D Base Phase I Project | Self-built | Yes | Digital and Information Services | 65,593,352.72 | 200,654,875.62 | Self-raised | 50.00% | | Acquisition of Self-Use R&D Office Space for China Electronics North China Headquarters (Phase I) | Acquisition | Yes | Digital and Information Services | 0.00 | 47,500,000.00 | Self-raised | 50.00% | | China Electronics Intercontinental East-to-West Heating Pipeline Project | Self-built | Yes | Smart Heating | 3,059,976.69 | 201,842,244.44 | Self-raised | 69.62% | Overall Utilization of Raised Funds | Fundraising Year | Fundraising Method | Net Raised Funds (1) (million yuan) | Total Raised Funds Used Cumulatively (2) (million yuan) | Utilization Ratio (3)=(2)/(1) | | :--- | :--- | :--- | :--- | :--- | | 2021 | Issuance of Shares to Acquire Assets and配套募集资金 | 99,983.24 | 86,744.88 | 86.76% | - The Modern Digital City Technology R&D Project aims to build an exclusive R&D and testing environment, improve product systems, and strengthen R&D capabilities based on China System's development plan. Products will be sold through China System and China Electronics Cloud Company's digital and information service projects, not typically sold or serviced separately, thus no separate economic benefit assessment[83] Significant Asset and Equity Sales During the reporting period, the company did not sell any significant assets; its subsidiary China System transferred 80% equity in China Electronics (Zibo) Energy Technology Development Co., Ltd. for 130.1283 million yuan, benefiting core business focus and profit - Company did not sell significant assets during the reporting period[86] Significant Equity Sales | Equity Sold | Transaction Price (million yuan) | Impact on Company | Pricing Principle for Equity Sale | Related Party Transaction | Has all involved equity been transferred | | :--- | :--- | :--- | :--- | :--- | :--- | | China System's 80% equity in China Electronics Zibo | 13,012.83 | Its business has minor overall impact on the company, beneficial for increasing listed company profit | Appraisal value | No | No | - As of June 30, 2025, Zibo Yuesheng Energy Co., Ltd. became the intended transferee of 80% equity in China Electronics Zibo through a property rights exchange listing. This transaction has been completed[87] Analysis of Major Holding and Participating Companies Major subsidiaries like China System and its sub-subsidiaries saw revenue and profit declines due to reduced engineering services, while China Electronics Cloud Company narrowed losses; Digital Guangdong's losses increased, and the company disposed of some subsidiary equity with no significant impact Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (million yuan) | Total Assets (million yuan) | Net Assets (million yuan) | Operating Revenue (million yuan) | Operating Profit (million yuan) | Net Profit (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | China System | Subsidiary | Industrial Services and Digital & Information Services | 100,000.00 | 6,314,575.98 | 1,249,462.23 | 2,308,148.03 | 76,155.12 | 55,348.61 | | China Electronics Second Construction Co., Ltd. | China System's Subsidiary | High-Tech Industrial Engineering Services | 10,000.00 | 2,414,388.59 | 431,004.94 | 999,560.80 | 37,175.81 | 30,381.66 | | China Electronics Fourth Construction Co., Ltd. | China System's Subsidiary | High-Tech Industrial Engineering Services | 10,125.00 | 1,822,443.84 | 429,643.57 | 940,131.73 | 37,951.09 | 28,495.01 | | China Electronics Cloud Company | Subsidiary | Digital and Information Services | 333,333.33 | 301,971.91 | 56,474.24 | 31,214.61 | -47,098.08 | -47,046.24 | | SED Wireless | Subsidiary | Digital and Information Services | 6,660.00 | 29,966.61 | 27,664.39 | 8,065.83 | 4,134.84 | 3,589.84 | | Digital Guangdong | Associate | Digital and Information Services | 58,554.22 | 384,423.97 | 61,496.81 | 72,554.91 | -8,874.47 | -8,872.47 | - China System achieved operating revenue of 2.30814803 billion yuan and net profit of 553.4861 million yuan in the current period, a year-on-year decrease of 29.90% and 28.92% respectively, mainly due to reduced revenue and profit from high-tech industrial engineering services[90] - China Electronics Cloud Company achieved operating revenue of 312.1461 million yuan in the current period, a year-on-year decrease of 29.97%; net profit was -470.4624 million yuan, with losses narrowing by 13.08% year-on-year, indicating improved operational efficiency[90] - Digital Guangdong achieved operating revenue of 725.5491 million yuan in the current period, a year-on-year decrease of 40.12%; net profit was -88.7247 million yuan, with losses increasing by 213.71% year-on-year, mainly due to lower successful bid amounts in 2025 and slower project settlement[91] Acquisition and Disposal of Subsidiaries During the Reporting Period | Company Name | Method of Acquisition and Disposal of Subsidiaries During the Reporting Period | Impact on Overall Production and Operations and Performance | | :--- | :--- | :--- | | Dingzhi China Electronics (Shaoyang) Smart City Technology Co., Ltd. | Partial equity disposal, loss of control | No significant impact | | Lincang Big Data Co., Ltd. | Partial equity disposal, loss of control | No significant impact | Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - Company did not control any structured entities during the reporting period[92] Risks Faced by the Company and Countermeasures The company faces macroeconomic, R&D investment, and financial risks, which it addresses by adjusting business focus, enhancing R&D efficiency, and optimizing financial management - Macroeconomic policy risks: Adjustments in national policies, government investment, or economic slowdown may affect company performance. Countermeasures include strengthening development environment analysis, adjusting business priorities, and actively exploring new business areas[93] - R&D investment impact on overall performance risk: Intense competition and rapid technological updates in cloud computing, data, and AI businesses mean continuous high R&D investment may affect performance. Countermeasures include improving profit margins in digital and information services, increasing business scale and market share, and saving R&D expenses through collaborative innovation[94] - Financial risks: Failure to collect receivables on time may lead to cash flow tightness and bad debt losses; high asset-liability ratio due to the nature of high-tech industrial engineering services. Countermeasures include establishing a special team for receivable collection, linking collection to performance appraisal, setting asset-liability ratio warning lines, cost reduction and efficiency improvement, reasonable control of interest-bearing debt, and expanding multi-channel capital replenishment mechanisms[95] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - Company did not formulate a market value management system during the reporting period[96] - Company did not disclose a valuation enhancement plan during the reporting period[96] Implementation of "Quality and Return Dual Improvement" Action Plan The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan during the reporting period - Company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan during the reporting period[96] Part IV Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management During the reporting period, several directors, supervisors, and senior management personnel changed due to retirement or job transfers Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Si Yuncong | Chairman | Resignation | May 29, 2025 | Retirement | | Chen Shigang | Director | Resignation | June 23, 2025 | Job Transfer | | Chen Shigang | Senior Vice President | Dismissal | June 23, 2025 | Job Transfer | | Xie Qinghua | Director | Resignation | May 29, 2025 | Job Transfer | | Zhang Xianghong | Director | Resignation | May 29, 2025 | Retirement | Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - Company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[99] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period - Company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[100] Environmental Information Disclosure The company and its six major subsidiaries are included in the list of enterprises required to disclose environmental information by law, with provided query indexes for each subsidiary's environmental information disclosure report - Listed company and its major subsidiaries included in the list of enterprises required to disclose environmental information by law: Yes[101] - Number of enterprises included in the list of enterprises required to disclose environmental information by law: 6 companies[101] - Query indexes provided for environmental information disclosure reports of 6 subsidiaries, including China Electronics Wuqiang Heating Co., Ltd., Hebei Yutai Thermal Energy Technology Co., Ltd., Hebei China Electronics Jing'an Energy Saving and Environmental Protection Technology Co., Ltd., China Electronics Xingtang Biomass Energy Cogeneration Co., Ltd., Weifang China Electronics Wanwei Thermal Power Co., Ltd., and China Electronics Intercontinental Environmental Protection Technology Development Co., Ltd. Qiuxian Branch[101] Social Responsibility The company actively fulfills its central enterprise social responsibility, focusing on four key areas: low-carbon environmental protection, rural revitalization, volunteer services, and digital intelligence empowerment - Company actively practices central enterprise responsibility, focusing on four key areas: low-carbon environmental protection, rural revitalization, volunteer services, and digital intelligence empowerment, promoting sustainable development[102] - Deepening low-carbon environmental protection practices: Achieving energy saving, consumption reduction, and carbon reduction through smart heating platforms, zero-carbon agriculture applications, sanitation data mid-end, industrial energy efficiency, and biomass energy substitution[103] - Supporting rural and industrial revitalization: Increasing farmers' income, paying fuel costs, creating new jobs, and contributing to taxes through purchasing Xinjiang Hotan workwear and promoting cogeneration projects[104] - Conducting volunteer services and public welfare activities: Including assisting the elderly and children, supporting education, participating in "Warm Winter Action" during Spring Festival travel, and Shijiazhuang Marathon volunteer services, and commending employees for courageous acts[105] - Digital intelligence empowerment for high-quality development: Building provincial-level water conservancy digital twin platforms, Weixian Museum digitalization projects, agricultural trusted data spaces, national-level pharmaceutical trusted data spaces, and additional donations to support openEuler community development[106] Part V Significant Matters Commitments Fulfilled and Overdue Unfulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period During the reporting period, the company's performance commitments and share lock-up commitments made during the asset restructuring were fulfilled on time; China System achieved its cumulative performance commitment for 2021-2024, and the total equity value of shareholders did not decrease as of December 31, 2024 Commitment Fulfillment Status | Commitment Event | Commitment Type | Commitment Content | Commitment Date | Commitment Period | Fulfillment Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Commitments made during asset restructuring | Performance Commitment and Compensation Arrangement | Commitment regarding profit forecast compensation | January 28, 2021 | December 31, 2024 | Achieved cumulative performance commitment for 2021-2024. This commitment has been fulfilled | | Commitments made during asset restructuring | Share Lock-up Commitment | Commitment regarding share lock-up | May 17, 2021 | Within (i) 36 months from the end of the non-public issuance of SED shares acquired by assets in this transaction and (ii) before China Electronics System Technology Co., Ltd. achieves the committed net profit under the "Profit Forecast Compensation Agreement" and its supplementary agreements or before this enterprise fulfills its profit compensation and period-end impairment compensation obligations (whichever is later) | Achieved cumulative performance commitment for 2021-2024; according to asset appraisal results, China System's total equity value as of December 31, 2024, did not decrease. This commitment has been fulfilled | Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties from the Listed Company During the reporting period, there were no non-operating funds occupied by controlling shareholders and other related parties from the listed company - Company reported no non-operating funds occupied by controlling shareholders and other related parties from the listed company during the reporting period[109] Illegal External Guarantees The company had no illegal external guarantees during the reporting period - Company had no illegal external guarantees during the reporting period[110] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - Company's semi-annual financial report was not audited[187] Board of Directors' and Supervisory Board's Explanation on "Non-Standard Audit Report" for the Current Period The company had no non-standard audit report during the reporting period, thus this explanation is not applicable - Not applicable[111] Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year The company had no non-standard audit report during the reporting period, thus this explanation is not applicable - Not applicable[111] Bankruptcy Reorganization Matters The company had no bankruptcy reorganization matters during the reporting period - Company had no bankruptcy reorganization matters during the reporting period[111] Litigation Matters The company had no significant litigation or arbitration matters during the current reporting period; however, it is involved in multiple previously disclosed cases with a large total amount, which may impact its financial position - Company had no significant litigation or arbitration matters in the current reporting period[112] - Company is involved in multiple previously disclosed litigation and arbitration cases, with a large total amount involved; some cases have reached settlement or entered the enforcement stage, but many cases are still under trial, which may impact the company's financial position[112][113][114][115][116][117][118][119][120][121][122][123][124][125][126][127][128][129][130][131][132][133] - China Electronics System Engineering Fourth Construction Co., Ltd. vs. Wuhai Haibowan District Urban Construction Investment and Financing Co., Ltd. and Wuhai Jingyuntong New Material Technology Co., Ltd. construction project contract dispute case: The Supreme People's Court issued a civil mediation statement, where Wuhai Urban Investment will pay the principal of 210 million yuan in installments to China Electronics Fourth Construction Co., Ltd[112][113] - Other litigations total 534 cases, with a target amount of 642,031,209.17 yuan; 240 cases concluded, 294 cases pending[143] Penalties and Rectifications The company had no penalties or rectifications during the reporting period - Company had no penalties or rectifications during the reporting period[144] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the reporting period, there were no issues regarding the integrity status of the company, its controlling shareholder, or actual controller - No issues regarding the integrity status of the company, its controlling shareholder, or actual controller during the reporting period[145] Significant Related Party Transactions The company engaged in daily operating related party transactions within estimated limits and had financial dealings with China Electronics Finance Co., Ltd., with no asset/equity acquisition/disposal or non-operating related party debt transactions Related Party Transactions Related to Daily Operations (Significant Items) | Related Party | Related Party Transaction Type | Related Party Transaction Content | Pricing Principle | Current Period Transaction Amount (million yuan) | Proportion of Similar Transaction Amount | | :--- | :--- | :--- | :--- | :--- | :--- | | China Great Wall Technology Group Co., Ltd. | Procurement from related party | Procurement of raw materials, goods | Market price | 1,006.28 | 2.81% | | China Electronics International Information Service Co., Ltd. | Procurement from related party | Procurement of raw materials, goods | Market price | 671.77 | 0.03% | | China Electronics International Information Service Co., Ltd. | Acceptance of services from related party | Acceptance of labor, property services | Market price | 306.08 | 2.50% | | China Electronics International Information Service Co., Ltd. | Sales to related party | Sales of products, goods | Market price | 2,750.49 | 5.20% | | China Electronics Industrial Engineering Co., Ltd. | Provision of services to related party | Provision of labor, international freight forwarding services | Market price | 441.78 | 3.11% | | Digital Guangdong Network Construction Co., Ltd. | Provision of services to related party | Provision of cloud platform products and services | Market price | 70.62 | 0.13% | | China Electronics International Information Service Co., Ltd. | Lease of property from related party | Lease of property | Market price | 442.65 | 0.49% | - Company has financial business dealings with China Electronics Finance Co., Ltd., with a period-end deposit balance of 1,662.9075 million yuan, loan balance of 1,585.08 million yuan, total credit line of 7,828.5647 million yuan, and actual amount incurred of 2,059.4686 million yuan[152][153] - Company had no related party transactions involving asset or equity acquisition/disposal, joint external investments, or non-operating related party creditor-debtor relationships during the reporting period[149][150][151] Significant Contracts and Their Fulfillment The company had no trusteeship or contracting situations but leased out some properties; it provided multiple guarantees for subsidiaries, totaling 453.7168 million yuan (7.25% of net assets), and had no entrusted wealth management or other significant contracts - Company had no trusteeship or contracting situations during the reporting period[156][157] - Company leased out some properties, collecting rent based on market prices[158] Company's Total Guarantee Situation | Indicator | Amount (million yuan) | | :--- | :--- | | Total Approved Guarantee Amount in Current Period (A1+B1+C1) | - | | Total Actual Guarantee Amount Incurred in Current Period (A2+B2+C2) | 6,076.89 | | Total Approved Guarantee Amount at Period-End (A3+B3+C3) | 186,500.00 | | Total Actual Guarantee Balance at Period-End (A4+B4+C4) | 45,371.68 | | Proportion of Total Actual Guarantee to Company's Net Assets | 7.25% | | Debt Guarantee Balance Provided Directly or Indirectly for Guaranteed Parties with Asset-Liability Ratio Exceeding 70% (E) | 21,280.00 | | Amount of Guarantees Exceeding 50% of Net Assets (F) | 21,240.89 | | Total of the Above Three Guarantee Amounts (D+E+F) | 42,520.89 | - Company had no entrusted wealth management or other significant contracts during the reporting period[163][164][165] Explanation of Other Significant Matters The company received CSRC approval to issue up to 2.5 billion yuan in A-shares for cloud and R&D projects, which is ongoing; additionally, 40.14% of shares from a major asset restructuring were unrestricted and listed for circulation - Company plans to issue shares to specific targets to raise no more than 2.5 billion yuan for investment in operational cloud projects, distributed storage R&D, China Electronics Cloud R&D Base, etc. Approval from CSRC was received on May 12, 2025, but the process is not yet completed[166] - In the major asset restructuring where the company issued shares to acquire 96.7186% equity in China System, 493,195,423 shares issued to 10 transaction counterparts were unrestricted and listed for circulation on June 13, 2025 (after deducting executive lock-up shares, the actual number of shares listed for circulation was 456,748,821 shares, accounting for 40.14% of the company's total share capital)[167] Significant Matters of Company Subsidiaries A subsidiary's bankruptcy liquidation concluded, another acquired R&D office space, the company transferred 100% equity in China Electronics Digital Innovation Co., Ltd. for 147.0696 million yuan, and China System transferred 80% equity in China Electronics (Zibo) Energy Technology Development Co., Ltd. for 130.1283 million yuan - Bankruptcy liquidation case of holding subsidiary Shenzhen SED International Power Technology Co., Ltd. has concluded, and the administrator is proceeding with industrial and commercial deregistration[168] - Holding subsidiary China Electronics System Technology Co., Ltd. acquired property in Shijiazhuang China Electronics Smart Plaza for self-use R&D office space, with an area of approximately 7,269 square meters and an investment of up to 100 million yuan, currently awaiting completion and delivery[168] - Company transferred 100% equity in China Electronics Digital Innovation Co., Ltd. and related intangible assets (data vault, data safe, data element processing and trading system based on data component concept) to China Electronics Data Industry Group Co., Ltd. for a total of 147.0696 million yuan, with equity and intangible asset transfer and relevant industrial and commercial change registration completed[169] - Company's subsidiary China System publicly listed and transferred 80% equity in China Electronics (Zibo) Energy Technology Development Co., Ltd. for 130.1283 million yuan, with equity transfer and relevant industrial and commercial change registration completed[170] Part VI Share Changes and Shareholder Information Share Change Situation During the reporting period, restricted shares decreased by 444,599,953 shares and unrestricted shares increased by the same amount, while total shares remained unchanged, mainly due to lifting of restrictions on asset acquisition shares and conversion to executive lock-up shares Share Change Situation | Item | Quantity Before Change (shares) | Proportion Before Change | Subtotal of Change (shares) | Quantity After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 493,195,423 | 43.34% | -444,599,953 | 48,595,470 | 4.27% | | II. Unrestricted Shares | 644,763,811 | 56.66% | 444,599,953 | 1,089,363,764 | 95.73% | | III. Total Shares | 1,137,959,234 | 100.00% | 0 | 1,137,959,234 | 100.00% | - Restricted shares related to asset acquisition were unrestricted, with 456,748,821 shares actually available for circulation, accounting for 40.14% of the company's total shares[174] - Due to the resignation of company director and senior management Mr. Chen Shigang, 48,595,470 shares held by him became executive lock-up shares, restricted from transfer for six months from his resignation date, leading to a corresponding increase in executive lock-up shares and restricted shares[175] Changes in Restricted Shares | Shareholder Name | Initial Restricted Shares | Shares Unrestricted in Current Period | Shares Increased in Current Period | Period-End Restricted Shares | Reason for Restriction | Unrestriction Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chen Shigang | 48,595,470 | 0 | 0 | 48,595,470 | Executive Lock-up Shares | 2025/12/23 | | China Electronics | 199,241,427 | 199,241,427 | 0 | 0 | Post-IPO Restricted Shares | 2025/6/13 | | China Electronics Capital Investment | 77,752,752 | 77,752,752 | 0 | 0 | Post-IPO Restricted Shares | 2025/6/13 | | Hongda Jiaye | 30,697,758 | 30,697,758 | 0 | 0 | Post-IPO Restricted Shares | 2025/6/13 | | Honghuan Jiaye | 7,240,725 | 7,240,725 | 0 | 0 | Post-IPO Restricted Shares | 2025/6/13 | | Hongjing Jiaye | 11,162,379 | 11,162,379 | 0 | 0 | Post-IPO Restricted Shares | 2025/6/13 | | Hongwei Jiaye | 27,903,518 | 27,903,518 | 0 | 0 | Post-IPO Restricted Shares | 2025/6/13 | | Hongtu Jiaye | 35,581,603 | 35,581,603 | 0 | 0 | Post-IPO Restricted Shares | 2025/6/13 | | Hongde Jiaye | 35,581,603 | 35,581,603 | 0 | 0 | Post-IPO Restricted Shares | 2025/6/13 | | Ruida Group | 19,438,188 | 19,438,188 | 0 | 0 | Post-IPO Restricted Shares | 2025/6/13 | | Total | 493,195,423 | 444,599,953 | 0.00 | 48,595,470 | -- | -- | Securities Issuance and Listing The company had no securities issuance or listing during the reporting period - Not applicable[177] Number of Shareholders and Shareholding As of period-end, the company had 66,763 common shareholders; major shareholders include China Electronics Information Service, China Electronics, and China Electronics Capital Investment, with Chen Shigang holding 4.27% restricted shares; certain shareholders had related party relationships, with one concerted action relationship terminated - Total number of common shareholders at the end of the reporting period: 66,763[178] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Period-End Shareholding (shares) | Restricted Shares Held (shares) | Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | China Electronics Information Service Co., Ltd. | State-owned Legal Person | 17.81% | 202,650,154 | 0 | 202,650,154 | | China Electronics Corporation | State-owned Legal Person | 17.51% | 199,241,427 | 0 | 199,241,427 | | China Electronics Capital Investment Co., Ltd. | State-owned Legal Person | 6.83% | 77,752,752 | 0 | 77,752,752 | | Chen Shigang | Domestic Natural Person | 4.27% | 48,595,470 | 48,595,470 | 0 | | China Electronics Import & Export Co., Ltd. | State-owned Legal Person | 3.37% | 38,391,238 | 0 | 38,391,238 | | Hongtu Jiaye | Other | 3.13% | 35,581,603 | 0 | 35,581,603 | | Hongde Jiaye | Other | 3.13% | 35,581,603 | 0 | 35,581,603 | | Hongda Jiaye | Other | 2.70% | 30,697,758 | 0 | 30,697,758 | | Hongwei Jiaye | Other | 2.45% | 27,903,518 | 0 | 27,903,518 | | Ruida Group | State-owned Legal Person | 1.71% | 19,438,188 | 0 | 19,438,188 | - China Electronics, China Electronics Information Service, China Electronics Capital Investment, China Electronics Import & Export, and Ruida Group have related party relationships; Chen Shigang, Hongtu Jiaye, and Hongde Jiaye were parties acting in concert, but their concerted action relationship was terminated on August 14, 2025[178][179] Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period, with details available in the 2024 annual report - No changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period, refer to 2024 annual report[181] Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - Company's controlling shareholder remained unchanged during the reporting period[182] - Company's actual controller remained unchanged during the reporting period[182] Preferred Share Information The company had no preferred shares during the reporting period - Company had no preferred shares during the reporting period[183] Part VII Bond-Related Information Bond-Related Information The company had no bond-related information during the reporting period - Not applicable[185] Part VIII Financial Report Audit Report The company's semi-annual financial report was not audited - Company's semi-annual financial report was not audited[187] Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in shareholders' equity for the first half of 2025, presenting the company's financial position at period-end, operating results, and cash flow changes during the reporting period - This section includes 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 shareholders' equity, and parent company statement of changes in shareholders' equity[189][190][191][192][193][194][195][196][197][198][199][200][201][202][203][204][205][206][207][208][209][210][211][212][213][214][215][216] Company Basic Information Shenzhen SED Industry Co., Ltd. (registered capital RMB 1,137,959,234) was established on December 4, 1993, with 1,137,959,234 shares as of June 30, 2025, engaged in communication, IT, and big data services, controlled by China Electronics Corporation, with financial statements approved on August 26, 2025 - Shenzhen SED Industry Co., Ltd. was established on December 4, 1993, and after multiple capital changes and asset restructurings, its total share capital was 1,137,959,234 shares as of June 30, 2025[217][218][219][220][221][222][223][224] - Company's registered capital is RMB 1,137,959,234, registered address and office address: 15-17F, SED Technology Building, No. 1 Keji Road, Nanshan District, Shenzhen[224] - Company's business scope primarily includes R&D, production, and sales of communication equipment, computers and software, electronic information system engineering, building intelligent engineering, electromechanical equipment installation engineering, big data services, software development, and information technology consulting services[225] - The controlling shareholder of the company is China Electronics Information Service Co., Ltd., and the ultimate controlling party is China Electronics Corporation[226] - These financial statements were approved for issuance by the company's Board of Directors on August 26, 2025[227] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, adhering to accounting standards and regulations, using accrual basis accounting and historical cost measurement - Company's financial statements are prepared on a going concern basis, in accordance with the Accounting Standards for Business Enterprises and related regulations issued by the Ministry of Finance[229] - Company's accounting is based on the accrual method. Except for certain investment properties and financial instruments, these financial statements are measured at historical cost[229] - These financial statements are presented on a going concern basis, and the company has the ability to continue as a going concern for at least 12 months from the end of the reporting period[230] Significant Accounting Policies and Estimates The company's financial statements comply with accounting standards, detailing policies for business combinations, financial instruments, assets, revenue, and government grants, with a retrospective adjustment for guarantee-type quality assurance impacting 2024 income statement but not balance sheets - These financial statements comply with the requirements of the Accounting Standards for Business Enterprises issued by the Ministry of Finance, truly and completely reflecting the company's consolidated and parent company financial position as of June 30, 2025, and consolidated and parent company operating results and cash flows for January-June 2025[231][232] - Company's accounting period adopts the calendar year, with 12 months as an operating cycle. The functional currency is RMB, with some