万隆光电(300710) - 2025 Q2 - 季度财报

Section I Important Notes, Table of Contents, and Definitions Important Notes and Risk Disclosures The Board of Directors, Supervisory Board, and senior management guarantee the accuracy and completeness of the semi-annual report, which includes forward-looking statements and outlines risks such as market competition and exchange rate fluctuations - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content and assume legal responsibility[3] - Forward-looking statements regarding development strategies and operating plans do not constitute substantive commitments, and investors should be aware of the risks[3] - The company faces risks including intensified industry market competition, exchange rate fluctuations, and accounts receivable bad debts[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for this semi-annual period[4] List of Reference Documents This section lists the company's semi-annual report reference documents, including signed financial statements and publicly disclosed company filings - Reference documents include signed and sealed financial statements, original publicly disclosed documents, and the original semi-annual report text[8] Definitions This section defines common terms used in the report, covering company names, organizational structures, reporting periods, and industry-specific technical terms - The report defines basic concepts such as the company, the Group, Articles of Association, Shareholders' Meeting, Board of Directors, and Supervisory Board[9] - The reporting period is specified as January to June 2025, with monetary units in yuan and ten thousand yuan[9] - Broadcasting and communication technical terms such as Cable Television (CATV), Fiber to the Home (FTTH), Passive Optical Network (PON), and its technical standards (GPON, EPON) are explained[9] Section II Company Profile and Key Financial Indicators Company Basic Information The company's stock abbreviation is 'Wanlong Optoelectronics' (stock code 300710), listed on the Shenzhen Stock Exchange Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Wanlong Optoelectronics | | Stock Code | 300710 | | Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | Hangzhou Wanlong Optoelectronic Equipment Co., Ltd. | | Legal Representative | Fu Xiaotong | Contact Information This section provides contact details for the Board Secretary and Securities Affairs Representative, including address, phone, fax, and email Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Li Xin | Building 2, No. 11809 Jianshe Fourth Road, Guali Town, Xiaoshan District, Hangzhou, Zhejiang Province | 0571-82150729 | 0571-82565300 | prevail@prevail-catv.com | | Securities Affairs Representative | Li Xin | Building 2, No. 11809 Jianshe Fourth Road, Guali Town, Xiaoshan District, Hangzhou, Zhejiang Province | 0571-82150729 | 0571-82565300 | prevail@prevail-catv.com | Other Explanations The company's registered address, office address, website, and information disclosure locations remained unchanged during the reporting period - The company's contact information, information disclosure and placement locations, and registration status remained unchanged during the reporting period; specific details can be found in the 2024 annual report[13][14][15] Key Accounting Data and Financial Indicators In the first half of 2025, operating revenue decreased by 28.55% to 125 million yuan, and net profit attributable to shareholders turned into a loss of 14 million yuan 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 124,928,497.17 | 174,849,771.69 | -28.55% | | Net Profit Attributable to Shareholders of the Listed Company | -14,002,643.24 | 8,735,993.04 | -260.29% | | Net Profit Attributable to Shareholders of the Listed Company Excluding Non-Recurring Gains and Losses | -11,766,411.52 | 2,455,948.98 | -579.10% | | Net Cash Flow from Operating Activities | 27,168,955.65 | 44,866,449.66 | -39.44% | | Basic Earnings Per Share (yuan/share) | -0.1407 | 0.0878 | -260.25% | | Diluted Earnings Per Share (yuan/share) | -0.1407 | 0.0878 | -260.25% | | Weighted Average Return on Net Assets | -3.01% | 1.32% | -4.33% | | Indicator | End of Current Reporting Period (yuan) | End of Prior Year (yuan) | Change from End of Prior Year | | :--- | :--- | :--- | :--- | | Total Assets | 623,989,117.20 | 678,732,444.07 | -8.07% | | Net Assets Attributable to Shareholders of the Listed Company | 458,626,551.07 | 472,629,194.31 | -2.96% | Differences in Domestic and Overseas Accounting Standards The company reported no differences in net profit or net assets between international/overseas accounting standards and Chinese accounting standards - The company reported no differences in accounting data under domestic and overseas accounting standards during the reporting period[17][18] Non-Recurring Gains and Losses Items and Amounts Total non-recurring gains and losses amounted to -2.24 million yuan, primarily due to fair value changes in financial assets and government subsidies Non-Recurring Gains and Losses Items and Amounts | Item | Amount (yuan) | Explanation | | :--- | :--- | :--- | | Gains and losses from disposal of non-current assets | -8,470.47 | | | Government grants recognized in current profit or loss (excluding those continuously affecting) | 423,434.87 | | | Gains and losses from changes in fair value and disposal of financial assets (excluding hedging activities) | -3,339,114.63 | | | Other non-operating income and expenses | 30,794.25 | | | Less: Income tax impact | -752,697.34 | | | Impact on minority interests (after tax) | 95,573.08 | | | Total | -2,236,231.72 | | - Software VAT refunds of 649,216.53 yuan are classified as recurring gains and losses that comply with national policies and are continuously enjoyed[21] Section III Management Discussion and Analysis Industry Overview In H1 2025, China's broadcasting and communication equipment industries achieved significant breakthroughs in technology, market expansion, and innovation, while addressing international competition Broadcasting Industry Analysis In H1 2025, China's broadcasting industry achieved over 70% technology self-sufficiency, with 5G user growth and a thriving innovation ecosystem - Technological self-sufficiency and security system construction achieved milestone progress: domestic content rate exceeded 70%, core codec chip domestic substitution rate for ultra-high-definition OB vans exceeded 85%, and smart terminal independent operating system installations increased by 40% year-on-year[23] - Security system strengthened: Yunnan Province achieved "zero-second" seamless switching for core programs; AI audit systems covered 95% of provincial institutions, 4K program audit efficiency increased 3 times, and sensitive information recognition accuracy reached 99.2%[23] - User market and government-enterprise services flourished: national broadcasting 5G user scale exceeded 50 million, government private networks covered 23 central ministries, and Jilin and Zhejiang broadcasting government cloud business revenue grew over 30% year-on-year[23] - Innovation ecosystem thrived: "Guangdian Sou+" platform's daily average visits exceeded 20 million, creating a new "large screen + search" interactive model[23] Communication Equipment Industry Analysis In H1 2024, China's communication equipment industry advanced in network construction, technology leadership, and 5G integration with vertical sectors, while enhancing innovation - Digital infrastructure fully upgraded: "14th Five-Year Plan" targets of over 4.55 million 5G base stations and over 60 million gigabit users were completed ahead of schedule[24] - Technology leads globally: OTN equipment accounts for over 85% of the global market share, 25G high-speed optical module shipments account for 60%, and mid-to-high-end base station main control chips are fully self-developed[24] - 5G integration with vertical industries deepened: Shanxi Province built the world's largest coal mine 5G private network, improving accident response efficiency for underground 4K monitoring and remote control by 70%; Shenzhen Airport's surrounding 50-kilometer airspace achieved 5G-A full coverage, increasing flight material transportation efficiency by 40%[26] - Enhanced technological innovation: domestic terahertz communication technology achieved a 200Gbps transmission rate in the 0.3THz band, setting a world record; 6G R&D entered a critical stage, but core standard contribution rate remains below 30%[26] Company Business Details The company's main businesses are broadcasting network equipment and data communication systems, and value-added telecom services for operators, with strong brand influence and R&D focus Main Products and Business Model The company's core businesses include R&D, production, and sales of broadcasting network equipment, and value-added telecom services, primarily focusing on video ringtones - Broadcasting network equipment and data communication systems: focused on R&D, production, sales, and technical support, with products covering cable TV optical fiber transmission equipment, cable transmission equipment, head-end systems, and PON architecture data communication systems[27] - Products are widely applied: already entered over 20 provincial broadcasting platforms nationwide and multiple countries and regions overseas[28] Company Main Products and Services | Product Category | Main Products | Main Functions | | :--- | :--- | :--- | | Cable TV Optical Fiber Transmission Equipment | Optical transmitters, optical receivers, optical amplifiers, optical workstations, and optical platforms | Transmit cable TV signals from the head-end room to user terminals via optical fiber | | Cable TV Cable Transmission Equipment | RF amplifiers, splitters, RF equipment, etc. | Transmit cable TV signals and broadband data from the head-end room to user homes via coaxial cable | | Data Communication Systems | G/EPON equipment (OLT, ONU), 10G/EPON equipment (OLT, ONU), FTTH optical network terminals (two-in-one, three-in-one), WIFI6 routers, etc. | Provide data access services for users in broadcasting networks | - Business model: sales models include direct sales and distribution, with domestic sales primarily direct, and international sales primarily direct with some distribution; production follows a "make-to-order" model; procurement follows a "purchase-to-order" model[31][32][33] - Value-added telecom services: controlled subsidiary Xinwang Zhuoxin provides operation, content, and marketing services, primarily targeting the three major operators and general communication users[34] - Xinwang Zhuoxin's business strategy: focuses on video ringtone services, enhancing user experience and stickiness through self-produced and procured high-quality short video content; actively explores emerging online channel models and increases R&D investment in self-developed operation platforms to reduce costs and increase efficiency[36][37][38] Company's Industry Position The company is a comprehensive solution provider in broadcasting network equipment, known for its R&D, full product line, and strong brand influence in the domestic market - The company is a comprehensive solution provider in the domestic broadcasting network equipment and data communication systems sector, with products covering optical fiber transmission equipment, cable transmission equipment, head-end systems, and PON access equipment[41] - The company continuously provides customized solutions for broadcasting operators and government-enterprise clients during the "National One Network" integration, "Smart Broadcasting" construction, and "Dual Gigabit Broadband" implementation, possessing strong brand influence and market position[41] - Independent R&D is a core strategy: R&D centers in Hangzhou and Chengdu house professional technical teams covering software, hardware, system architecture, and embedded platforms[41] - Quality system certification: obtained ISO9001, ISO14001, and ISO45001 quality management system certifications, with product technical performance leading in domestic niche markets[42] Core Competitiveness Analysis The company's core strengths lie in robust R&D, extensive marketing networks, sound management systems, and a strong brand reputation in the optical communication equipment sector Product R&D and Technological Advantages The company possesses strong R&D capabilities, enabling timely response to market demands and providing comprehensive broadcasting network and communication system solutions - R&D team: As of June 30, 2025, there are 98 technical R&D personnel, accounting for 23.84% of the total employees[43] - Intellectual property: accumulated 122 intellectual property rights, including 15 invention patents, 18 utility model patents, and 89 software copyrights[43] - Technology reserves: possesses multiple core technologies in broadcasting network and communication fields, with rich technical reserves[43] Marketing Advantages With over two decades of experience, the company has established a nationwide marketing network, combining direct sales and regional distributors to enhance market reach and customer service - Marketing network: established a marketing and service network covering over 20 provinces and cities nationwide, forming a sales system that combines direct sales teams with regional distributors[44] - Market reach capability: continuously optimizes sales organizational structure to enhance perception and response speed to market dynamics[44] Management Advantages The company maintains robust management and internal control systems, leveraging integrated ERP, OA, and MES systems for efficient operations and risk prevention - Management system: possesses sound and standardized operational management and internal control systems, accumulating experience in capital management, information management, and quality management[45] - Digital management: ERP, OA, and MES systems are effectively integrated, enabling cross-departmental information sharing and control, thereby improving production and operational efficiency[45] Brand Advantages With over twenty years in the industry, the company has built a strong brand reputation for technology, product quality, and end-to-end solutions, expanding into new application areas - Industry reputation: cultivated a strong brand reputation in the cable TV and optical communication equipment manufacturing sector for over 20 years, relying on technological accumulation, product quality, and delivery capabilities[46] - Market positioning: one of the few domestic equipment suppliers capable of providing end-to-end transmission solutions for the broadcasting industry[46] - Brand extension: with the launch of new products such as automotive lidar optical amplifiers and PON access equipment, the brand is extending towards integrated development in "broadcasting + data + new applications"[46] Main Business Analysis Operating revenue decreased by 28.55% to 125 million yuan, with significant changes in financial and income tax expenses, and a substantial increase in net cash flow from investing activities Overview This section provides an overview of the company's main business operations - An overview of the main business operations can be found in the relevant content of "I. Main Businesses Engaged in by the Company During the Reporting Period"[48] Year-on-Year Changes in Key Financial Data Operating revenue decreased by 28.55%, while financial expenses and income tax expenses significantly declined, and net cash flow from investing activities substantially increased Key Financial Data Year-on-Year Change | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 124,928,497.17 | 174,849,771.69 | -28.55% | | | Operating Cost | 87,026,091.25 | 123,971,603.64 | -29.80% | | | Selling Expenses | 4,909,804.84 | 5,991,069.89 | -18.05% | | | Administrative Expenses | 21,629,808.24 | 19,972,466.35 | 8.30% | | | Financial Expenses | 597,442.15 | 2,028,347.82 | -70.55% | Primarily due to a decrease in interest expenses in the current period | | Income Tax Expenses | 1,415,145.17 | 4,313,184.11 | -67.19% | Primarily due to a decrease in profit in the current period | | R&D Investment | 10,822,036.81 | 11,386,015.50 | -4.95% | | | Net Cash Flow from Operating Activities | 27,168,955.65 | 44,866,449.66 | -39.44% | Primarily due to an increase in payments for goods in the current period | | Net Cash Flow from Investing Activities | 9,628,653.17 | -65,522,804.68 | 114.70% | Primarily due to an increase in cash from the return of principal and dividends from other equity instruments, as well as a decrease in cash paid for the construction of fixed assets and the purchase of wealth management products in the current period | | Net Cash Flow from Financing Activities | -11,028,915.18 | -18,948,442.11 | 41.80% | Primarily due to a decrease in borrowings and dividends in the current reporting period | | Net Increase in Cash and Cash Equivalents | 26,046,194.23 | -38,837,111.00 | 167.07% | Primarily due to an increase in cash from the return of principal and dividends from other equity instruments, as well as a decrease in cash paid for the construction of fixed assets and the purchase of wealth management products in the current period | - There were no significant changes in the company's profit composition or sources of profit during the reporting period[49] Products or Services Accounting for Over 10% of Revenue Optical fiber transmission equipment and telecom value-added services remain primary revenue sources, both experiencing revenue declines, though telecom services saw improved gross margin Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cable TV Optical Fiber Transmission Equipment | 62,170,569.15 | 43,874,575.96 | 29.43% | -23.39% | -22.91% | -0.44% | | Cable TV Cable Transmission Equipment | 16,718,860.73 | 11,245,117.68 | 32.74% | -41.15% | -37.09% | -4.34% | | Intelligent Monitoring Equipment | 1,292,145.04 | 41,077.95 | 96.82% | 33.38% | 61.03% | -0.55% | | Telecom Value-Added Services | 30,840,074.06 | 22,106,831.99 | 28.32% | -34.05% | -40.70% | 8.04% | Non-Core Business Analysis Non-core operations significantly impacted total profit, primarily due to fair value losses on financial assets and substantial asset impairment provisions Non-Core Business Profit and Loss | Item | Amount (yuan) | Percentage of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment income | 15,849.57 | -0.13% | Gains from trading financial assets in the current period | No | | Gains and losses from changes in fair value | -3,354,964.20 | 27.91% | Losses from trading financial assets in the current period | No | | Asset impairment | -8,488,931.86 | 70.61% | Provision for bad debts and inventory depreciation in the current period | No | | Non-operating income | 57,940.04 | -0.48% | Primarily due to transfer of accounts payable that do not need to be paid | No | | Non-operating expenses | 27,145.79 | -0.23% | Primarily compensation payments in the current period | No | | Other income | 1,094,489.81 | -9.10% | Includes software VAT refunds and other government grants related to daily operations | Software VAT refunds are sustainable, government grants are not | Analysis of Assets and Liabilities Total assets decreased by 8.07% to 624 million yuan, with shifts in the composition of monetary funds, accounts receivable, and inventories, and no restricted assets Significant Changes in Asset Composition Total assets decreased by 8.07%, with monetary funds increasing, accounts receivable decreasing, and changes in other asset and liability proportions Significant Changes in Asset Composition | Item | End of Current Reporting Period (yuan) | Percentage of Total Assets | End of Prior Year (yuan) | Percentage of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 114,194,353.00 | 18.30% | 88,148,158.77 | 12.99% | 5.31% | | | Accounts Receivable | 173,069,988.08 | 27.74% | 230,355,541.24 | 33.94% | -6.20% | | | Inventories | 44,274,821.17 | 7.10% | 39,698,296.36 | 5.85% | 1.25% | | | Long-term Equity Investments | 4,320,913.56 | 0.69% | 4,328,352.17 | 0.64% | 0.05% | | | Fixed Assets | 132,026,825.16 | 21.16% | 137,095,125.63 | 20.20% | 0.96% | | | Right-of-Use Assets | 386,310.65 | 0.06% | 772,621.33 | 0.11% | -0.05% | Primarily due to amortization of right-of-use assets in the current period | | Short-term Borrowings | 41,234,266.66 | 6.61% | 51,237,923.55 | 7.55% | -0.94% | | | Contract Liabilities | 3,087,221.39 | 0.49% | 2,342,861.41 | 0.35% | 0.14% | | Major Overseas Assets The company had no major overseas assets during the reporting period - The company had no major overseas assets during the reporting period[56] Assets and Liabilities Measured at Fair Value At period-end, financial assets measured at fair value totaled 59.56 million yuan, including trading financial assets and other equity instrument investments Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (yuan) | Fair Value Change Gains/Losses for the Period (yuan) | Cumulative Fair Value Changes Included in Equity (yuan) | Amount Purchased During the Period (yuan) | Amount Sold During the Period (yuan) | Other Changes (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 1. Trading Financial Assets | 11,372,770.00 | -3,354,964.20 | | | 10.00 | | 8,017,795.80 | | 4. Other Equity Instrument Investments | 67,842,018.18 | | 41,832,018.18 | | | -16,297,967.54 | 51,544,050.64 | | Subtotal of Financial Assets | 79,214,788.18 | -3,354,964.20 | 41,832,018.18 | | 10.00 | -16,297,967.54 | 59,561,846.44 | | Total Above | 79,214,788.18 | -3,354,964.20 | 41,832,018.18 | | 10.00 | -16,297,967.54 | 59,561,846.44 | - Other changes represent the profit distribution received from the partial exit of investment projects by Hangzhou Xingrui Wanjia Equity Investment Partnership (Limited Partnership)[57] - There were no significant changes in the measurement attributes of the company's major assets during the reporting period[58] Asset Restriction Status As of the end of the reporting period, the company had no restricted assets - As of the end of the reporting period, the company had no restricted assets[58] Investment Analysis The company had no significant equity or non-equity investments, or use of raised funds, but reported fair value changes in financial assets and entrusted wealth management activities Overall Investment Status The company had no significant overall investment activities during the reporting period - The company had no overall investment activities during the reporting period[58] Significant Equity Investments The company did not acquire any significant equity investments during the reporting period - The company did not acquire any significant equity investments during the reporting period[58] Significant Non-Equity Investments The company had no ongoing significant non-equity investments during the reporting period - The company had no ongoing significant non-equity investments during the reporting period[58] Financial Assets Measured at Fair Value At period-end, financial assets measured at fair value, primarily stocks, totaled 8.02 million yuan, with a fair value change loss of 3.35 million yuan Financial Assets Measured at Fair Value | Asset Category | Initial Investment Cost (yuan) | Fair Value Change Gains/Losses for the Period (yuan) | Cumulative Fair Value Changes Included in Equity (yuan) | Amount Purchased During the Period (yuan) | Amount Sold During the Period (yuan) | Cumulative Investment Income (yuan) | Other Changes (yuan) | Ending Balance (yuan) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Stocks | 13,332,766.00 | -3,354,964.20 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 8,017,795.80 | Idle self-owned funds | | Total | 13,332,766.00 | -3,354,964.20 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 8,017,795.80 | -- | Use of Raised Funds The company had no use of raised funds during the reporting period - The company had no use of raised funds during the reporting period[60] Entrusted Wealth Management, Derivative Investments, and Entrusted Loans The company engaged in 58 million yuan of entrusted wealth management, with no outstanding or overdue amounts, and no derivative investments or entrusted loans Overview of Entrusted Wealth Management During the Reporting Period | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management (ten thousand yuan) | Undue Balance (ten thousand yuan) | Overdue Unrecovered Amount (ten thousand yuan) | Impairment Provision for Overdue Unrecovered Wealth Management (ten thousand yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Bank wealth management products | Self-owned funds | 5,800 | 0 | 0 | 0 | | Total | | 5,800 | 0 | 0 | 0 | - The company had no derivative investments during the reporting period[62] - The company had no entrusted loans during the reporting period[63] Significant Asset and Equity Disposals The company did not dispose of any significant assets or equity during the reporting period - The company did not dispose of significant assets during the reporting period[64] - The company did not dispose of significant equity during the reporting period[65] Analysis of Major Controlled and Associate Companies Key subsidiaries include Hangzhou Wanlong Communication Technology, Hangzhou Longsheng Investment, and Zhejiang Xinwang Zhuoxin, with varying revenue and profit contributions Major Subsidiaries and Associate Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hangzhou Wanlong Communication Technology Co., Ltd. | Subsidiary | R&D, production, sales, and technical services for broadcasting network equipment and data communication systems | 50,000,000.00 | 240,595,308.81 | 126,344,204.04 | 93,875,331.13 | 5,431,778.06 | 4,101,626.82 | | Hangzhou Longsheng Investment Co., Ltd. | Subsidiary | Investment management, industrial investment, investment consulting | 10,000,000.00 | 66,853,247.39 | 32,785,237.84 | | -3,347,175.47 | -3,340,697.82 | | Zhejiang Xinwang Zhuoxin Technology Co., Ltd. | Subsidiary | Comprehensive operation services for value-added telecom services, including operation and content services for telecom operators | 50,000,000.00 | 65,658,886.37 | 56,962,324.84 | 30,840,074.06 | 1,502,569.76 | 1,414,237.42 | - There were no acquisitions or disposals of subsidiaries during the reporting period[66] Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[67] Risks Faced by the Company and Countermeasures The company addresses market destocking, intense competition, exchange rate fluctuations, bad debt risks, and investment risks through R&D, market expansion, and financial controls Market Destocking and Demand Saturation Risk The company faces risks from market destocking, overcapacity, and reduced demand, which it addresses through continuous R&D and market-oriented product development - Risk: Domestic and international markets are undergoing destocking, leading to overcapacity and inventory accumulation due to raw material shortages and chip scarcity; economic downturn and reduced actual demand create uncertainty for future sales and operations[67] - Countermeasures: continuous R&D investment, close monitoring of the macroeconomic environment, market-oriented product development, introduction of advanced technologies and high-end talent, and thorough evaluation of product development and technological upgrades[68] Increased Industry Market Competition Risk The company faces intense competition in a consolidating broadcasting industry, but sees opportunities in smart broadcasting and new technologies, responding with R&D and market expansion - Risk: The "National One Network" integration in the broadcasting industry leads to resource concentration, shifting the market from high growth to upgrading existing capacity, with lower product technical barriers and fierce price competition; internet TV and other new broadcasting models squeeze traditional cable TV user numbers, making broadcasting operators more cautious in investment; overseas markets face uncertainties due to geopolitical and trade policies[69] - Opportunities: Smart broadcasting, cultural digitalization, emergency broadcasting system construction, and "Xueliang Project" bring new growth opportunities; the integration of cloud computing, AI, big data, PON+WiFi6, and 5G fixed wireless access technologies provides transformation opportunities[69] - Countermeasures: continuously enhance core technology R&D capabilities, promote product upgrades towards high performance, low cost, and localization; expand production capacity and optimize the supply chain; accelerate overseas market expansion and develop "Belt and Road" customers; strengthen internal collaboration and cost control[70] Exchange Rate Fluctuation Risk The company faces risks from exchange rate and tariff fluctuations impacting export business, managed through financial risk control and foreign exchange hedging - Risk: Global trade policy uncertainties and international geopolitical fluctuations may lead to changes in tariff rates and exchange rates, adversely affecting the company's export business[71] - Countermeasures: closely monitor tariff policy changes, strengthen financial risk management, and mitigate adverse impacts of exchange rate fluctuations by engaging in RMB foreign exchange currency hedging derivative transactions[71] Accounts Receivable Bad Debt Risk The company faces significant bad debt risk due to large accounts receivable, mitigated by enhanced credit assessment, monitoring, and differentiated credit policies - Risk: The company has a large amount of accounts receivable, primarily due to the settlement characteristics of the broadcasting industry; although most customers have state-owned backgrounds and good credit, changes in customer credit status could lead to uncollectible or delayed collection of accounts receivable, impacting operating performance[72] - Countermeasures: strengthen customer credit risk assessment and ongoing management, enhance pre-approval, in-process control, and post-supervision of accounts receivable, improve sales personnel performance evaluation systems, and implement differentiated credit policies for various customers[74] External Investment Risk External investments carry operational risks influenced by macroeconomic factors and investment specifics, managed by closely monitoring subsidiaries and controlling systemic risks - Risk: External investments, aimed at enhancing comprehensive strength and competitive advantage, may be affected by macroeconomic conditions, industry cycles, investment targets, and transaction plans, thus posing operational risks[75] - Countermeasures: closely monitor the operational and management status of associate and controlled subsidiaries, control systemic risks, and ensure the safety and maximization of returns from external investments[75] Investor Relations Activities During the Reporting Period On May 13, 2025, the company held an online performance briefing via Panorama Network, engaging with investors and addressing their concerns Record of Investor Relations Activities During the Reporting Period | Reception Date | Reception Location | Reception Method | Type of Reception Object | Reception Object | Main Content Discussed and Materials Provided | Index of Basic Survey Information | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | May 13, 2025 | Panorama Network "Investor Relations Interactive Platform" | Online communication | Other | Investors participating in the company's 2024 annual online performance briefing | The company interacted with investors on the 2024 annual report and responded to their concerns via the online platform | Juchao Information Network "Investor Relations Activity Record Form" (2025-001) | Market Value Management and Valuation Enhancement Plan The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company did not formulate a market value management system[77] - The company did not disclose a valuation enhancement plan[77] "Dual Improvement in Quality and Returns" Action Plan The company did not disclose a "Dual Improvement in Quality and Returns" action plan announcement during the reporting period - The company did not disclose a "Dual Improvement in Quality and Returns" action plan announcement[77] Section IV Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, or senior management during the reporting period - There were no changes in the company's directors, supervisors, or senior management during the reporting period[79] Profit Distribution and Capital Reserve Conversion to Share Capital The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the semi-annual period - The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the semi-annual period[80] Equity Incentives and Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures or their implementation during the reporting period[81] Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[82] Social Responsibility The company adheres to legal operations, prioritizes economic and social benefits, fulfills tax obligations, promotes employment, and maintains transparent information disclosure - The company adheres to legal operations, fulfills tax obligations, and promotes employment through open recruitment[82] - Established long-term stable cooperative relationships with major suppliers to ensure production supply[82] - Strictly adheres to information disclosure regulations, ensuring all shareholders have equal access to information and jointly promoting the company's sustained and healthy development[82] Section V Significant Matters Fulfillment of Commitments The company had no unfulfilled or overdue commitments from controlling shareholders, related parties, or the company itself during the reporting period - The company had no commitments that were fulfilled or overdue during the reporting period[84] Fund Occupation by Controlling Shareholders and Related Parties There was no non-operating occupation of listed company funds by controlling shareholders or other related parties during the reporting period - There was no non-operating occupation of listed company funds by controlling shareholders or other related parties during the reporting period[85] Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[86] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[87] Board of Directors, Supervisory Board, and Audit Committee Explanations on "Non-Standard Audit Reports" The company's Board, Supervisory Board, and Audit Committee provided no explanations regarding "non-standard audit reports" for the current period - The company's Board of Directors, Supervisory Board, and Audit Committee provided no explanations regarding "non-standard audit reports" for the current period[88] Board of Directors' Explanation on "Non-Standard Audit Report" for the Prior Year The company's Board of Directors provided no explanations regarding "non-standard audit reports" for the prior year - The company's Board of Directors provided no explanations regarding "non-standard audit reports" for the prior year[88] Bankruptcy and Reorganization Matters The company had no bankruptcy or reorganization matters during the reporting period - The company had no bankruptcy or reorganization matters during the reporting period[88] Litigation Matters The company had no significant litigation, arbitration, or other litigation matters during the reporting period - The company had no significant litigation or arbitration matters during the current reporting period[89] - The company had no other litigation matters during the current reporting period[89] Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[90] Integrity Status of the Company, Controlling Shareholders, and Actual Controllers There were no integrity issues concerning the company, its controlling shareholders, or actual controllers during the reporting period - There were no integrity issues concerning the company, its controlling shareholders, or actual controllers during the reporting period[91] Significant Related Party Transactions The company had no significant related party transactions, including those related to daily operations, asset/equity transfers, joint investments, or intercompany debt - The company had no related party transactions related to daily operations during the reporting period[91] - The company had no related party transactions involving asset or equity acquisitions/disposals during the reporting period[92] - The company had no related party transactions involving joint external investments during the reporting period[93] - The company had no related party creditor-debtor transactions during the reporting period[94] - The company and its controlled financial companies had no deposits, loans, credit lines, or other financial business with related parties[95][96] - The company had no other significant related party transactions during the reporting period[97] Significant Contracts and Their Performance The company had no entrustment, contracting, or leasing matters, but provided guarantees totaling 41.2 million yuan for a subsidiary, representing 8.98% of net assets Entrustment, Contracting, and Leasing Matters The company had no entrustment, contracting, or leasing situations during the reporting period - The company had no entrustment situations during the reporting period[98] - The company had no contracting situations during the reporting period[99] - The company had no leasing situations during the reporting period[100] Significant Guarantees The company provided multiple joint liability guarantees totaling 41.2 million yuan for its subsidiary, Hangzhou Wanlong Communication Technology Co., Ltd. Company Guarantees for Subsidiaries | Name of Guaranteed Party | Announcement Date of Guarantee Limit | Guarantee Limit (ten thousand yuan) | Actual Occurrence Date | Actual Guarantee Amount (ten thousand yuan) | Guarantee Type | Collateral (if any) | Counter-guarantee (if any) | Guarantee Period | Fulfilled | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hangzhou Wanlong Communication Technology Co., Ltd. | April 29, 2025 | 10,000 | October 30, 2024 | 1,000 | Joint and several liability guarantee | | | Three years from the day after the loan term under the contract expires | No | No | | Hangzhou Wanlong Communication Technology Co., Ltd. | April 29, 2025 | 10,000 | November 11, 2024 | 1,000 | Joint and several liability guarantee | | | Three years from the day after the loan term under the contract expires | No | No | | Hangzhou Wanlong Communication Technology Co., Ltd. | April 29, 2025 | 10,000 | December 06, 2024 | 1,000 | Joint and several liability guarantee | | | Three years from the day after the loan term under the contract expires | No | No | | Hangzhou Wanlong Communication Technology Co., Ltd. | April 29, 2025 | 10,000 | December 19, 2024 | 1,000 | Joint and several liability guarantee | | | Three years from the day after the loan term under the contract expires | No | No | | Hangzhou Wanlong Communication Technology Co., Ltd. | April 29, 2025 | 10,000 | December 12, 2024 | 20 | Joint and several liability guarantee | | | Three years from the date of maturity of this debt | No | No | | Hangzhou Wanlong Communication Technology Co., Ltd. | April 29, 2025 | 10,000 | January 14, 2025 | 100 | Joint and several liability guarantee | | | Three years from the date of maturity of the debt under this financing | No | No | | Zhejiang Wanlong Communication Equipment Co., Ltd. | April 29, 2025 | 6,000 | | | | | | | | | | Zhejiang Xinwang Zhuoxin Technology Co., Ltd. | April 29, 2025 | 4,000 | | | | | | | | | | Total approved guarantee limit for subsidiaries during the reporting period (B1) | | 20,000 | Total actual guarantee amount for subsidiaries during the reporting period (B2) | | 100 | | Total approved guarantee limit for subsidiaries at the end of the reporting period (B3) | | 20,000 | Total actual guarantee balance for subsidiaries at the end of the reporting period (B4) | | 4,120 | | Ratio of total actual guarantee amount (A4+B4+C4) to company's net assets | | 8.98% | | | | | | | | | Significant Contracts in Ordinary Course of Business The company had no significant contracts in the ordinary course of business during the reporting period - The company had no significant contracts in the ordinary course of business during the reporting period[104] Other Significant Contracts The company had no other significant contracts during the reporting period - The company had no other significant contracts during the reporting period[104] Other Significant Matters Explanation The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[105] Significant Matters of Company Subsidiaries There were no significant matters concerning the company's subsidiaries during the reporting period - There were no significant matters concerning the company's subsidiaries during the reporting period[106] Section VI Share Changes and Shareholder Information Share Changes Restricted shares decreased by 3,451,704, while unrestricted shares increased by the same amount, with total share capital remaining unchanged due to executive share release Overall Share Change Status Restricted shares decreased by 3,451,704, while unrestricted shares increased by the same amount, with total share capital remaining unchanged Share Changes | | Before This Change | | | Increase/Decrease in This Change (＋, －) | | | After This Change | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | Quantity | Proportion | Other | Subtotal | Quantity | Proportion | | I. Restricted Shares | 28,361,991.00 | 28.51% | -3,451,704.00 | -3,451,704.00 | 24,910,287.00 | 25.04% | | 3. Other Domestic Holdings | 28,361,991.00 | 28.51% | -3,451,704.00 | -3,451,704.00 | 24,910,287.00 | 25.04% | | Domestic Natural Person Holdings | 28,361,991.00 | 28.51% | -3,451,704.00 | -3,451,704.00 | 24,910,287.00 | 25.04% | | II. Unrestricted Shares | 71,128,309.00 | 71.49% | 3,451,704.00 | 3,451,704.00 | 74,580,013.00 | 74.96% | | 1. RMB Ordinary Shares | 71,128,309.00 | 71.49% | 3,451,704.00 | 3,451,704.00 | 74,580,013.00 | 74.96% | | III. Total Shares | 99,490,300.00 | 100.00% | 0.00 | 0.00 | 99,490,300.00 | 100.00% | - The reasons for share changes, approval status, transfer status, and progress of share repurchases are all not applicable[110] Changes in Restricted Shares Restricted shares held by Xu Quanhai decreased by 3,451,704 due to the release of executive lock-up shares, while Fu Xiaotong's restricted shares remained unchanged Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period | Restricted Shares Released During Period | Restricted Shares Increased During Period | Restricted Shares at End of Period | Reason for Restriction | Proposed Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Fu Xiaotong | 14,555,175 | 0 | 0 | 14,555,175 | Restricted commitment in equity change report | Released according to voluntary lock-up commitment and executive lock-up share release regulations | | Xu Quanhai | 13,806,816 | 3,451,704 | 0 | 10,355,112 | Executive lock-up shares | Released according to voluntary lock-up commitment and executive lock-up share release regulations | | Total | 28,361,991 | 3,451,704 | 0 | 24,910,287 | -- | -- | Securities Issuance and Listing The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[112] Shareholder Numbers and Shareholding As of the reporting period end, there were 9,776 common shareholders, with key shareholders including Fu Xiaotong and Xu Quanhai, some holding shares via margin accounts - The total number of common shareholders at the end of the reporting period was 9,776[113] Top 10 Shareholders' Shareholding | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at End of Reporting Period | Change in Shareholding During Reporting Period | Number of Restricted Shares Held | Number of Unrestricted Shares Held | Share Status | Quantity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Fu Xiaotong | Domestic Natural Person | 14.63% | 14,555,175 | 0 | 14,555,175 | 0 | Not applicable | 0 | | Xu Quanhai | Domestic Natural Person | 13.88% | 13,806,816 | 0 | 10,355,112 | 3,451,704 | Not applicable | 0 | | Lin Wendan | Domestic Natural Person | 1.75% | 1,745,600 | 1,255,220 | 0 | 1,745,600 | Not applicable | 0 | | Li Gang | Domestic Natural Person | 1.16% | 1,151,700 | 919,700 | 0 | 1,151,700 | Not applicable | 0 | | CITIC Securities Asset Management (Hong Kong) Limited - Client Funds | Overseas Legal Person | 1.04% | 1,038,758 | 884,540 | 0 | 1,038,758 | Not applicable | 0 | | BARCLAYS BANK PLC | Overseas Legal Person | 1.01% | 1,004,264 | 772,945 | 0 | 1,004,264 | Not applicable | 0 | | Zhang Shao | Domestic Natural Person | 0.80% | 800,000 | 800,000 | 0 | 800,000 | Not applicable | 0 | | Mao Chengyu | Domestic Natural Person | 0.76% | 755,800 | -408,900 | 0 | 755,800 | Not applicable | 0 | | He Qunying | Domestic Natural Person | 0.72% | 717,500 | 23,800 | 0 | 717,500 | Not applicable | 0 | | Man Ruhai | Domestic Natural Person | 0.71% | 706,500 | 505,300 | 0 | 706,500 | Not applicable | 0 | - It is unknown whether the above shareholders have any associated relationships or acted in concert[114] - Some of the top 10 common shareholders participated in margin trading and securities lending, holding shares through credit trading guarantee securities accounts[115] Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, or senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, or senior management during the reporting period[116] Changes in Controlling Shareholder or Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[117] - The company's actual controller did not change during the reporting period[117] Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[118] Section VII Bond-Related Information Bond-Related Information The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[120] Section VIII Financial Report Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[122] Financial Statements This section presents the company's consolidated and parent company financial statements for H1 2025, showing decreased revenue, a net loss, and shifts in cash flows Consolidated Balance Sheet As of June 30, 2025, consolidated total assets were 624 million yuan, a 8.07% decrease, with increases in monetary funds and decreases in accounts receivable and financial assets - Consolidated total assets at period-end were 623,989,117.20 yuan, a 8.07% decrease from the beginning of the period[125] - Monetary funds at period-end were 114,194,353.00 yuan, an increase from the beginning of the period[124] - Accounts receivable at period-end were 173,069,988.08 yuan, a decrease from the beginning of the period[124] - Total equity attributable to parent company owners was 458,626,551.07 yuan, a 2.96% decrease from the beginning of the period[126] Parent Company Balance Sheet As of June 30, 2025, parent company total assets were 396 million yuan, a 6.31% decrease, with reduced accounts receivable and short-term borrowings - Parent company total assets at period-end were 395,753,299.60 yuan, a 6.31% decrease from the beginning of the period[128] - Accounts receivable at period-end were 70,784,514.36 yuan, a decrease from the beginning of the period[128] - Short-term borrowings at period-end were 0 yuan, compared to 11,001,024.66 yuan at the beginning of the period[129] - Total owners' equity was 361,876,365.11 yuan, a 3.79% decrease from the beginning of the period[129] Consolidated Income Statement For H1 2025, consolidated operating revenue was 125 million yuan, a 28.55% decrease, resulting in a net loss of 14.00 million yuan attributable to parent company shareholders - Total operating revenue was 124,928,497.17 yuan, a 28.55% decrease year-on-year[132] - Net profit attributable to parent company shareholders was -14,002,643.24 yuan, compared to 8,735,993.04 yuan in the prior year period, turning from profit to loss[133] - Basic earnings per share were -0.1407 yuan/share, compared to 0.0878 yuan/share in the prior year period[134] Parent Company Income Statement For H1 2025, parent company operating revenue significantly decreased to 2.30 million yuan, with a net loss of 14.25 million yuan, an expanded loss year-on-year - Operating revenue was 2,295,504.42 yuan, compared to 13,818,160.28 yuan in the prior year period, a significant year-on-year decrease[135] - Net profit was -14,246,157.89 yuan, compared to -1,060,561.06 yuan in the prior year period, indicating an expanded loss year-on-year[135] Consolidated Cash Flow Statement Net cash flow from operating activities decreased by 39.44% to 27.17 million yuan, while net cash flow from investing activities turned positive to 9.63 million yuan - Net cash flow from operating activities was 27,168,955.65 yuan, a 39.44% decrease year-on-year[138] - Net cash flow from investing activities was 9,628,653.17 yuan, compared to -65,522,804.68 yuan in the prior year period, turning from negative to positive[138] - Net cash flow from financing activities was -11,028,915.18 yuan, a year-on-year narrowing of the outflow[138] - Net increase in cash and cash equivalents was 26,046,194.23 yuan[138] Parent Company Cash Flow Statement Net cash flow from operating activities significantly decreased to 0.70 million yuan, while net cash flow from investing activities turned positive to 11.51 million yuan - Net cash flow from operating activities was 699,353.14 yuan, compared to 18,419,880.18 yuan in the prior year period, a significant year-on-year decrease[141] - Net cash flow from investing activities was 11,507,837.41 yuan, compared to -34,558,187.96 yuan in the prior year period, turning from negative to positive[141] - Net cash flow from financing activities was -11,007,749.99 yuan, a year-on-year narrowing of the outflow[141] - Cash and cash equivalents at period-end were 18,990,555.89 yuan[141] Consolidated Statement of Changes in Owners' Equity Consolidated owners' equity decreased by 2.71% to 481 million yuan, with parent company owners' equity decreasing by 2.96% due to the net loss - Consolidated owners' equity at period-end totaled 481,411,481.01 yuan, a 2.71% decrease from the beginning of the period[145] - Equity attributable to parent company owners totaled 458,626,551.07 yuan, a 2.96% decrease from the beginning of the period[145] - Net profit attributable to parent company owners for the current period was -14,002,643.24 yuan[145] [Paren