欧科亿(688308) - 2025 Q2 - 季度财报

Section I Definitions Definitions of Common Terms This chapter defines common terms, including company entities and specialized industry terminology, to facilitate accurate understanding of the report content - The company's full Chinese name is Zhuzhou OKE CNC Precision Tool Co., Ltd., abbreviated as OKE[10] - Controlled subsidiaries include Zhuzhou OKE Cutting Tool Co., Ltd. (wholly-owned) and Zhuzhou OKE New Energy Co., Ltd. (controlled)[10] - The report provides detailed definitions of cemented carbide tool industry terms, such as CNC tools, cemented carbide products, and PVD/CVD coating technologies[10] Section II Company Profile and Key Financial Indicators I. Company's Basic Information This section introduces the company's basic information, including its Chinese name, abbreviation, English name, legal representative, registered address, and website - The company's full Chinese name is Zhuzhou OKE CNC Precision Tool Co., Ltd., abbreviated as OKE[13] - The legal representative is Yuan Meihe, and the company's registered address is in the Small and Medium-sized Enterprise Incubation Park, Yanling County, Zhuzhou City, Hunan Province[13] II. Contact Persons and Information This section provides contact details for the company's Board Secretary (domestic information disclosure representative) and Securities Affairs Representative - The Board Secretary is Han Hongtao, and the Securities Affairs Representative is Xu Ying, both with contact number 0731-22673899[14] III. Information Disclosure and Document Custody Location Changes This section outlines the company's designated information disclosure newspapers, website for semi-annual reports, and document custody location, confirming no changes during the reporting period - The company's designated information disclosure newspapers are Shanghai Securities News, Securities Times, China Securities Journal, and Securities Daily[15] - The semi-annual report is published on the company's official website http://www.oke-carbide.com and kept at the company's Securities Legal Department[15] IV. Overview of Company Shares/Depositary Receipts This section briefly introduces the company's stock information, including its type, listing exchange, and code, confirming the absence of depositary receipts (I) Overview of Company Shares (II) Overview of Company Depositary Receipts - The company's shares are A-shares, listed on the STAR Market of the Shanghai Stock Exchange, with stock abbreviation OKE and stock code 688308[16] - The company has no depositary receipts[17] VI. Key Accounting Data and Financial Indicators This section discloses the company's key accounting data and financial indicators for the current reporting period, explaining the significant decline in net profit (I) Key Accounting Data (II) Key Financial Indicators Key Accounting Data (January-June 2025 vs. January-June 2024) (CNY) | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | Change (%) from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 603,478,961.65 | 579,309,409.45 | 4.17 | | Total Profit | -8,549,206.38 | 67,027,477.23 | N/A | | Net Profit Attributable to Shareholders of Listed Company | 775,353.97 | 60,094,162.67 | -98.71 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | -19,147,209.52 | 37,776,350.58 | N/A | | Net Cash Flow from Operating Activities | -129,929,205.91 | -106,549,390.38 | N/A | | As of Current Period End vs. Prior Year End | | | | | Net Assets Attributable to Shareholders of Listed Company | 2,550,848,275.72 | 2,548,169,494.65 | 0.11 | | Total Assets | 3,942,583,021.62 | 3,959,655,725.47 | -0.43 | Key Financial Indicators (January-June 2025 vs. January-June 2024) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change (%) from Prior Year Period | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 0.00 | 0.38 | -98.70 | | Diluted Earnings Per Share (CNY/share) | 0.00 | 0.38 | -98.70 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (CNY/share) | -0.12 | 0.24 | N/A | | Weighted Average Return on Net Assets (%) | 0.03 | 2.32 | decreased by 2.29 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | -0.75 | 1.46 | decreased by 2.21 percentage points | | R&D Investment as Percentage of Operating Revenue (%) | 6.37 | 6.86 | decreased by 0.49 percentage points | - Net profit attributable to shareholders of the listed company decreased by 98.71% year-on-year, primarily due to low capacity utilization of the CNC tool industrial park project, increased fixed asset depreciation, significantly higher material costs leading to a decline in gross profit margin, and an increase in period expense ratio[18] VIII. Non-Recurring Gains and Losses Items and Amounts This section details the company's non-recurring gains and losses items and their amounts for the reporting period, totaling CNY 19,922,563.49, with government subsidies as the main contributor Non-Recurring Gains and Losses Items and Amounts (CNY) | Non-Recurring Gains and Losses Item | Amount | | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | -391,854.65 | | Government Subsidies Included in Current Period Profit and Loss | 20,542,268.31 | | Gains and Losses from Fair Value Changes and Disposal of Financial Assets | 3,345,575.64 | | Other Non-Operating Income and Expenses | -43,083.36 | | Less: Income Tax Impact | 3,530,058.43 | | Impact on Minority Shareholders' Equity (After Tax) | 284.02 | | Total | 19,922,563.49 | Section III Management Discussion and Analysis I. Industry and Main Business Overview During the Reporting Period This section details the company's main business, products, operating model, and industry characteristics, highlighting its focus on CNC tools and cemented carbide products (I) Main Business, Products, or Services (II) Main Operating Model (III) Industry Situation - The company's main business involves the R&D, production, and sales of CNC tool products and cemented carbide products, operating as a high-tech enterprise[24] - CNC tool products, including CNC inserts and solid carbide tools, are widely used in general machinery, automotive, mold, and aerospace industries[25] - Cemented carbide products primarily consist of saw blades, rods, and round blanks, with saw blades recognized as a national manufacturing single champion product[25] - The company adopts a 'production-based procurement' model and a 'sales-driven production with moderate inventory' model, with sales primarily through direct channels supplemented by distribution[29][30][32] - Cemented carbide tools dominate the global tool market, accounting for over 60%, with domestic output value gradually increasing to approximately 53%[33][34] - Significant potential exists for increasing the CNC penetration rate in domestic machine tools, driving continuous growth in demand for CNC tools[34] - The import substitution of domestic CNC tools is accelerating, with tool customs import value decreasing by 2.66% year-on-year in 2024[34] - The company holds the largest production scale for saw blade products in China, with its CNC insert products achieving advanced industry performance and multiple 'Golden Edge Award' and 'Ringier Technology Innovation Award' recognitions[35] - Future industry trends include adjustments in tool consumption structure, enhanced CNC tool processing efficiency, accelerated import substitution, increased market concentration, and continuous improvement in domestic tool enterprises' comprehensive service capabilities[36][37][38] II. Discussion and Analysis of Operations During the reporting period, the company pursued a "market-driven, technology-first" strategy, achieving stable operating revenue growth but a significant decline in net profit attributable to the parent company 2025 Semi-Annual Operating Performance (CNY 10,000s) | Indicator | Amount (CNY 10,000s) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Operating Revenue | 60,347.90 | 4.17 | | Net Profit Attributable to Shareholders of Listed Company | 77.54 | -98.71 | | Operating Revenue from CNC Tool Products | 30,611.39 | -4.69 | | Operating Revenue from Cemented Carbide Products | 28,307.01 | 11.25 | - The company focuses on high-end tool import substitution, launching high-performance milling inserts (e.g., R6 blade processing milling inserts) and developing RHD-G/RHD-Mn series crown drills and OMT/OMS series milling cutters for titanium/superalloys[39] - In superhard tools, the company developed H25/H15 series PCBN inserts, optimized PCD irregular edge laser processing technology, and enhanced tool performance for new energy battery aluminum shell processing[39] - Strengthened direct sales team, opened nearly 30 domestic and international operation centers, and promoted comprehensive tool solutions for fuel vehicles, new energy vehicles, aerospace, rail transit, energy, and military industries[41] - Added over 2,700 new types of solid carbide tools and CNC tool bodies and over 1,500 new types of CNC inserts[41] - Filed 82 new patent applications, obtained 15 new authorized patents (including 3 invention patents), accumulating 202 authorized domestic patents[41] - Overcame challenges in coating grain growth and size control, launched high-performance coating processes specifically for steel and cast iron turning, and developed multiple customized coatings[41] - Improved corporate governance, advanced lean production and digital transformation, optimized ERP-MES system integration, and enhanced operational efficiency[42] III. Analysis of Core Competencies During the Reporting Period This section analyzes the company's core competencies, including technological R&D advantages, product performance stability, extensive product series, integrated tool technology, and brand influence (I) Core Competency Analysis (III) Core Technologies and R&D Progress - The company possesses comprehensive core technologies and a well-structured talent pool, having established a multidisciplinary technical team and independently developed a process technology system spanning cemented carbide manufacturing, tool manufacturing, and integrated applications[43] - The company's enterprise technology center was recognized as a 'Hunan Provincial Enterprise Technology Center', approved to establish a National Postdoctoral Research Workstation, and actively engages in industry-university-research cooperation with universities[45] - The company boasts comprehensive R&D facilities and advanced testing instruments, ensuring continuous and efficient R&D activities[45] - The company has established a quality control system covering the entire product lifecycle, from design to after-sales service, ensuring stable product performance and consistent precision[46] - The company offers a comprehensive range of turning, milling, and drilling CNC inserts, along with dozens of grades and thousands of specifications of saw blade products, meeting diverse customer needs[47] - The company has mastered the entire process technology system for cemented carbide manufacturing, tool manufacturing, and integrated applications, enabling it to provide customized cutting processing solutions to clients[48] - The company's 'OKE' brand has twice received the 'User Satisfied Brand' award and established strategic partnerships with renowned domestic and international customers, continuously enhancing its brand influence[48][49] - The company core technologies are categorized into four segments: substrate material design and preparation, insert structure design, insert precision and consistency control, and coating design and preparation[50] - During the reporting period, the company obtained 15 new authorized domestic patents and filed 82 new patent applications, accumulating 202 authorized domestic patents (including 32 invention patents)[53][54] R&D Investment (CNY) | Indicator | Current Period Amount | Prior Year Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 38,453,454.13 | 39,733,439.38 | -3.22 | | Total R&D Investment | 38,453,454.13 | 39,733,439.38 | -3.22 | | Total R&D Investment as Percentage of Operating Revenue (%) | 6.37 | 6.86 | decreased by 0.49 percentage points | - The company's ongoing R&D projects include CVD steel turning groove development, second-generation stainless steel turning groove research, independent series grooving tool development, and high-hard steel milling product development, encompassing 37 projects with an estimated total investment of CNY 65.7 million[59][60][61][63] R&D Personnel (persons) | Indicator | Current Period Amount | Prior Year Period Amount | | :--- | :--- | :--- | | Number of Company R&D Personnel | 254 | 244 | | R&D Personnel as Percentage of Total Company Staff (%) | 18.1 | 19.15 | | Total R&D Personnel Compensation (CNY 10,000s) | 1,507.17 | 1,458.57 | | Average R&D Personnel Compensation (CNY 10,000s) | 5.93 | 5.98 | IV. Risk Factors This section details the company's main risks, including intensified market competition, management risks from rapid expansion, R&D personnel turnover, and raw material price fluctuations - The company faces intense competition from domestic and international enterprises in the CNC tool manufacturing sector, with high-end markets still dominated by imported brands[66] - Company expansion may lead to reduced management efficiency and increased management expenses, posing risks of insufficient management capabilities[67] - The loss of core technical personnel and R&D talent could result in technology leakage, adversely affecting the company's production and operations[68] - The company's products are primarily used in general machinery, automotive, and mold industries, making them highly susceptible to changes in industry policies and demand[69] - Prices of key raw materials, tungsten carbide and cobalt powder, are highly volatile, potentially impacting the company's operating performance[70] - Factors such as market competition, production and sales scale, new product releases, product structure, and raw material price fluctuations may cause volatility in the company's gross profit margin from its main business[70] - The rapid growth in accounts receivable may increase the company's working capital pressure and pose risks of non-payment at maturity[70] - Low capacity utilization of the CNC tool industrial park project, rising costs, increased expenses, and higher credit impairment provisions have led to a decline in profit levels, posing risks of further performance decline or losses[71] V. Key Operating Performance During the Reporting Period This section analyzes the company's key operating performance, including financial statement item changes, asset and liability status, investment, and subsidiary operations (I) Main Business Analysis (III) Analysis of Assets and Liabilities (IV) Analysis of Investment Status (VI) Analysis of Major Controlled and Invested Companies Analysis of Changes in Financial Statement Items (CNY) | Item | Current Period Amount | Prior Year Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 603,478,961.65 | 579,309,409.45 | 4.17 | | Operating Cost | 510,639,555.35 | 427,854,118.21 | 19.35 | | Selling Expenses | 24,884,213.73 | 19,731,393.52 | 26.11 | | Administrative Expenses | 29,888,703.52 | 20,480,348.19 | 45.94 | | Financial Expenses | 7,163,113.57 | 7,655,259.00 | -6.43 | | R&D Expenses | 38,453,454.13 | 39,733,439.38 | -3.22 | | Net Cash Flow from Operating Activities | -129,929,205.91 | -106,549,390.38 | N/A | | Net Cash Flow from Investing Activities | 57,123,162.83 | -83,250,987.82 | N/A | | Net Cash Flow from Financing Activities | 241,087,030.40 | -97,170,681.05 | N/A | - Operating revenue growth was primarily driven by an increase in cemented carbide product revenue; operating cost growth was mainly due to higher raw material costs and increased fixed asset depreciation[74][76] - Selling expenses increased primarily due to higher employee compensation for sales personnel; administrative expenses increased mainly due to higher consulting service fees[76] - Net cash flow from operating activities decreased primarily due to reduced input tax refunds; net cash flow from investing activities increased mainly due to lower cash payments for investments[76] - Net cash flow from financing activities increased primarily due to new working capital loans[76] Changes in Assets and Liabilities (CNY) | Item Name | Current Period End Balance | Percentage of Total Assets at Current Period End (%) | Prior Year End Balance | Percentage of Total Assets at Prior Year End (%) | Change (%) from Prior Year End Balance | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 415,410,795.94 | 10.54 | 300,014,865.67 | 7.58 | 38.46 | Matured wealth management products recovered | | Financial Assets Held for Trading | 180,891,122.12 | 4.59 | 371,776,120.34 | 9.39 | -51.34 | Decrease in purchased wealth management products | | Notes Receivable | 146,430,824.32 | 3.71 | 228,229,114.50 | 5.76 | -35.84 | Some notes receivable matured and derecognized | | Other Receivables | 1,703,130.52 | 0.04 | 3,564,091.99 | 0.09 | -52.21 | Deposits recovered | | Construction in Progress | 50,379,995.10 | 1.28 | 151,414,141.80 | 3.82 | -66.73 | Some machinery and equipment transferred to fixed assets | | Deferred Income Tax Assets | 34,949,273.14 | 0.89 | 23,531,412.86 | 0.59 | 48.52 | Increase in impairment provisions and deductible losses | | Short-Term Borrowings | 752,460,011.49 | 19.09 | 466,282,094.45 | 11.78 | 61.37 | Increase in working capital loans | | Notes Payable | 61,440,639.10 | 1.56 | 324,762,418.05 | 8.20 | -81.08 | Some notes payable matured and settled | | Contract Liabilities | 7,659,401.06 | 0.19 | 14,458,671.88 | 0.37 | -47.03 | Decrease in advance receipts for goods | | Employee Benefits Payable | 10,876,334.69 | 0.28 | 35,866,432.87 | 0.91 | -69.68 | Year-end bonuses accrued at prior year-end disbursed | | Taxes Payable | 669,206.63 | 0.02 | 5,968,909.93 | 0.15 | -88.79 | Decrease in corporate income tax payable | | Other Payables | 4,985,747.30 | 0.13 | 7,713,290.95 | 0.19 | -35.36 | Expenses accrued at prior year-end reimbursed | | Non-Current Liabilities Due Within One Year | 32,912,380.75 | 0.83 | 62,432,823.71 | 1.58 | -47.28 | Partial repayment of long-term borrowings | - Restricted cash and bank balances totaled CNY 58,978,129.11 at period-end, mainly comprising bank acceptance bill deposits, domestic letter of credit deposits, and structured deposit guarantees[79] - During the reporting period, the company established a new controlled subsidiary, OKE (Shandong) New Energy Technology Co., Ltd., with a registered capital of CNY 30 million and a 60% equity stake, which has completed establishment and industrial and commercial registration[82] Financial Information of Major Controlled and Invested Companies (CNY 10,000s) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhuzhou OKE Cutting Tool Co., Ltd. | Subsidiary | R&D, processing, and sales of cemented carbide inserts, CNC inserts, etc. | 70,000 | 167,589.05 | 66,725.65 | 17,261.20 | -3,294.11 | -2,546.44 | | Zhuzhou OKE Intelligent Technology Co., Ltd. | Subsidiary | Engineering and technical research and experimental development; technical services, etc. | 5,000 | 4,165.74 | -149.24 | 1,245.81 | 166.62 | 124.90 | | Zhuzhou OKE New Energy Co., Ltd. | Subsidiary | Manufacturing and sales of metal wire ropes and their products; new material technology R&D, etc. | 5,000 | 18,760.43 | 208.43 | 1,302.73 | -974.04 | -578.40 | Section IV Corporate Governance, Environment, and Society I. Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel During the reporting period, there were no changes in the company's directors, supervisors, senior management, or core technical personnel - During the reporting period, there were no changes in the company's directors, supervisors, senior management, or core technical personnel[88] II. Profit Distribution or Capital Reserve Conversion Plan The company's board of directors resolved that there is no profit distribution or capital reserve conversion plan for the current reporting period - The company has no profit distribution plan or capital reserve conversion plan for the current reporting period[88] III. Status and Impact of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures This section discloses that the third vesting period of the company's 2022 restricted stock incentive plan was canceled due to unmet performance targets (I) Equity Incentive Matters Disclosed in Interim Announcements with No Subsequent Progress or Changes - The third vesting period of the company's 2022 restricted stock incentive plan did not meet the company-level performance assessment requirements, resulting in the cancellation and invalidation of all granted but unvested restricted shares[89] V. Specifics of Consolidating Poverty Alleviation Achievements and Rural Revitalization Efforts The company actively supports national poverty alleviation and rural revitalization by locating its headquarters in a former poverty-stricken county, contributing significantly through tax payments and job creation - The company's headquarters is located in Yanling County, a former national poverty-stricken county, contributing nearly CNY 100 million in annual taxes[91] - The company provides over 400 employment opportunities in Yanling County, including over 10 positions for people with disabilities, actively supporting local poverty alleviation and rural revitalization[91] Section V Significant Matters I. Fulfillment of Commitments This section details the fulfillment of various commitments made by the company, its controlling shareholders, and other related parties during the reporting period, all of which were strictly adhered to (I) Commitments by the Company's Actual Controllers, Shareholders, Related Parties, Acquirers, and the Company During or Continuing into the Reporting Period - Controlling shareholders and actual controllers, Yuan Meihe and Tan Wenqing, committed to resolving horizontal competition and related party transactions, and have strictly fulfilled these commitments[93][94] - The company committed to adhering to its profit distribution policy and has strictly fulfilled this commitment[94] - The company, its controlling shareholders and actual controllers, directors, supervisors, senior management, and other shareholders have all strictly fulfilled commitments regarding share repurchase for fraudulent issuance, diluted immediate return compensation, share repurchase, and legal liability for compensation during the reporting period[94][95][96][97][98][99] II. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties During the Reporting Period During the reporting period, there was no non-operating occupation of funds by controlling shareholders or other related parties - During the reporting period, the company had no non-operating fund occupation by controlling shareholders or other related parties[100] III. Irregular Guarantees During the reporting period, the company did not provide any external guarantees in violation of prescribed decision-making procedures - During the reporting period, the company had no external guarantees provided in violation of prescribed decision-making procedures[100] IV. Semi-Annual Report Audit Status This semi-annual report has not been audited - This semi-annual report is unaudited[4] VII. Major Litigation and Arbitration Matters The company had no major litigation or arbitration matters during the current reporting period - The company had no major litigation or arbitration matters during the current reporting period[101] IX. Explanation of the Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers During the Reporting Period During the reporting period, the company, its controlling shareholders, and actual controllers maintained good integrity, with no unfulfilled court judgments or significant overdue debts - During the reporting period, the company, its controlling shareholders, and actual controllers maintained good integrity, with no unfulfilled court judgments or significant overdue debts[101] X. Significant Related Party Transactions This section discloses significant related party transactions, including the purchase of tungsten carbide and cobalt powder from a Greenmei subsidiary and a joint investment in a new energy technology company (I) Related Party Transactions Related to Daily Operations (III) Significant Related Party Transactions for Joint External Investments - During the reporting period, the company purchased tungsten carbide and cobalt powder from Greenmei subsidiaries Hubei Green Tungsten Resource Recycling Co., Ltd. and Jingmen Greenmei New Materials Co., Ltd., totaling CNY 29.3244 million (excluding tax), accounting for 8.91% of similar transactions[102] - The company's controlled subsidiary, OKE New Energy, jointly invested with a related party to establish OKE (Shandong) New Energy Technology Co., Ltd., with a registered capital of CNY 50 million, and OKE New Energy holding 60% equity[104] XI. Major Contracts and Their Fulfillment This section discloses the company's significant guarantees for its subsidiaries, totaling CNY 75.3933 million, representing 2.96% of the company's net assets (II) Major Guarantees Performed and Not Yet Fulfilled During the Reporting Period Company and Subsidiary Guarantees for Subsidiaries (CNY 10,000s) | Guarantor | Guaranteed Party | Guaranteed Amount | Guarantee Start Date | Guarantee End Date | Guarantee Type | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhuzhou OKE CNC Precision Tool Co., Ltd. | Zhuzhou OKE Cutting Tool Co., Ltd. | 2,800 | 2024/11/27 | 2027/11/27 | Joint and Several Liability Guarantee | No | | Zhuzhou OKE CNC Precision Tool Co., Ltd. | Zhuzhou OKE New Energy Co., Ltd. | 1,360 | 2024/12/23 | 2025/12/22 | Joint and Several Liability Guarantee | No | | Zhuzhou OKE CNC Precision Tool Co., Ltd. | Zhuzhou OKE New Energy Co., Ltd. | 272 | 2024/12/31 | 2025/12/29 | Joint and Several Liability Guarantee | No | | Zhuzhou OKE CNC Precision Tool Co., Ltd. | Zhuzhou OKE New Energy Co., Ltd. | 5,000 | 2025/6/30 | 2028/6/30 | Joint and Several Liability Guarantee | No | Total Company Guarantees (Including Guarantees for Subsidiaries) (CNY 10,000s) | Indicator | Amount | | :--- | :--- | | Total Guarantees (A+B) | 7,539.33 | | Total Guarantees as Percentage of Company Net Assets (%) | 2.96 | | Debt Guarantees Provided Directly or Indirectly for Guaranteed Parties with Asset-Liability Ratio Exceeding 70% (D) | 6,069.47 | Section VI Share Changes and Shareholder Information I. Share Capital Changes During the reporting period, there were no changes in the company's total ordinary share capital or share capital structure 1. Table of Share Changes 2. Explanation of Share Changes - During the reporting period, there were no changes in the company's total ordinary share capital or share capital structure[111] II. Shareholder Information As of the end of the reporting period, the company had 6,756 ordinary shareholders, with Yuan Meihe, Greenmei Co., Ltd., and Tan Wenqing among the top three (I) Total Number of Shareholders (II) Top Ten Shareholders and Top Ten Shareholders with Unlimited Conditions as of the End of the Reporting Period - As of the end of the reporting period, the company had a total of 6,756 ordinary shareholders[112] Top Ten Shareholders as of the End of the Reporting Period (Excluding Shares Lent via Securities Refinancing) | Shareholder Name (Full Name) | Change During Reporting Period | Number of Shares Held at Period End | Percentage (%) | Number of Restricted Shares Held | Number of Restricted Shares Including Those Lent via Securities Refinancing | Pledge, Mark, or Freeze Status | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yuan Meihe | 1,886,076 | 27,170,076 | 17.11 | 0 | 0 | None | Domestic Natural Person | | Greenmei Co., Ltd. | 0 | 16,523,500 | 10.41 | 0 | 0 | None | Domestic Non-State-Owned Legal Person | | Tan Wenqing | 0 | 14,346,360 | 9.04 | 0 | 0 | None | Domestic Natural Person | | Yueqing Dehui Equity Investment Partnership (Limited Partnership) | 0 | 9,374,121 | 5.90 | 0 | 0 | None | Domestic Non-State-Owned Legal Person | | Genertec Venture Capital Co., Ltd. - Genertec High-End Equipment Industry Equity Investment (Tongxiang) Partnership (Limited Partnership) | 0 | 4,415,706 | 2.78 | 0 | 0 | None | Other | | Guangdong Yueke Zongheng Rongtong Venture Capital Partnership (Limited Partnership) | 0 | 3,059,224 | 1.93 | 0 | 0 | None | Other | | Ma Huaiyi | 0 | 2,463,632 | 1.55 | 0 | 0 | None | Domestic Natural Person | | Zhuzhou State-owned Assets Investment Holding Group Co., Ltd. | 0 | 1,301,000 | 0.82 | 0 | 0 | None | Other | | Jinjiang Heming Asset Management Co., Ltd. - Heming Value Discovery No. 2 Private Securities Investment Fund | -716,312 | 1,250,441 | 0.79 | 0 | 0 | None | Other | | Zhuzhou OKE CNC Precision Tool Co., Ltd. Repurchase Special Securities Account | 0 | 1,250,000 | 0.79 | 0 | 0 | None | RMB Ordinary Shares | - Yuan Meihe and Tan Wenqing are the company's actual controllers and parties acting in concert[115] III. Directors, Supervisors, Senior Management, and Core Technical Personnel This section discloses changes in shareholdings of directors, supervisors, senior management, and core technical personnel, noting non-trade transfers and the cancellation of restricted stock vesting due to unmet performance conditions (I) Shareholding Changes of Current and Resigned Directors, Supervisors, Senior Management, and Core Technical Personnel During the Reporting Period (II) Equity Incentives Granted to Directors, Supervisors, Senior Management, and Core Technical Personnel During the Reporting Period Shareholding Changes of Current and Resigned Directors, Supervisors, Senior Management, and Core Technical Personnel During the Reporting Period (shares) | Name | Position | Number of Shares Held at Beginning of Period | Number of Shares Held at End of Period | Change in Shares During Reporting Period | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Yuan Meihe | Director | 25,284,000 | 27,170,076 | 1,886,076 | Non-trade transfer | | Zhang Yi | Supervisor | 0 | 121,196 | 121,196 | Non-trade transfer | | Han Hongtao | Senior Management | 11,200 | 617,163 | 605,963 | Non-trade transfer | | Liang Baoyu | Senior Management | 11,200 | 283,883 | 272,683 | Non-trade transfer | | Li Shuqiang | Core Technical Personnel | 0 | 212,088 | 212,088 | Non-trade transfer | | Su Zhenhua | Core Technical Personnel | 6,200 | 289,636 | 283,436 | Share reduction, non-trade transfer | | Luo Lijun | Core Technical Personnel | 3,400 | 151,493 | 148,093 | Share reduction, non-trade transfer | | Liu Gang | Core Technical Personnel | 0 | 45,446 | 45,446 | Non-trade transfer | | Chen Xinzh | Core Technical Personnel | 1,300 | 23,746 | 22,446 | Share reduction, non-trade transfer | - On August 6, 2025, company director Mu Menggang resigned, all company supervisors resigned, Gu Jianguo was elected as a director, and Su Zhenhua was elected as an employee director; the board of supervisors has been abolished[118] - The third vesting period of the company's 2022 restricted stock incentive plan did not meet the company-level vesting conditions, resulting in the cancellation and invalidation of 34,440 restricted shares granted but unvested to directors, senior management, and core technical personnel for that period[119] Section VII Bond-Related Information I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[122] II. Convertible Corporate Bonds During the reporting period, the company had no convertible corporate bonds - During the reporting period, the company had no convertible corporate bonds[122] Section VIII Financial Report I. Audit Report This semi-annual report has not been audited - This semi-annual report is unaudited[4] II. Financial Statements This section provides the company's 2025 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity 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 Owners' Equity Parent Company Statement of Changes in Owners' Equity - The consolidated balance sheet shows that as of June 30, 2025, the company's total assets were CNY 3,942,583,021.62, and total equity attributable to parent company owners was CNY 2,550,848,275.72[125][126] - The consolidated income statement shows that for the first half of 2025, operating revenue was CNY 603,478,961.65, and net profit attributable to parent company shareholders was CNY 775,353.97[131][133] - The consolidated cash flow statement shows that for the first half of 2025, net cash flow from operating activities was -CNY 129,929,205.91, net cash flow from investing activities was CNY 57,123,162.83, and net cash flow from financing activities was CNY 241,087,030.40[138][139] III. Company's Basic Information This section outlines the company's history, registered capital, address, legal representative, and main business, emphasizing its specialization in the cemented carbide tool industry - The company, formerly Zhuzhou Jingcheng Industrial Co., Ltd., was established on January 23, 1996, and restructured into a joint-stock company in July 2017[154] - The company was listed on the STAR Market of the Shanghai Stock Exchange on December 10, 2020, with a registered capital of CNY 158,781,708[154] - The company's main business is the R&D, production, and sales of cemented carbide products and CNC tool products, operating within the cemented carbide tool industry[154] IV. Basis of Financial Statement Preparation This section states that the financial statements are prepared on a going concern basis, adhering to enterprise accounting standards and historical cost measurement, with no identified issues affecting going concern - The company's financial statements are prepared on a going concern basis, adhering to Enterprise Accounting Standards and relevant regulations of the China Securities Regulatory Commission[155] - Accounting is based on the accrual method, and except for certain financial instruments, all items are measured at historical cost[155] - The company assessed its ability to continue as a going concern for 12 months from the end of the reporting period and found no matters affecting its going concern ability[156] V. Significant Accounting Policies and Estimates This section details the company's significant accounting policies and estimates for financial instruments, inventory, fixed assets, intangible assets, revenue recognition, government grants, deferred taxes, and leases 11. Financial Instruments 16. Inventories 21. Fixed Assets 22. Construction in Progress 26. Intangible Assets 34. Revenue 36. Government Grants 37. Deferred Income Tax Assets/Liabilities 38. Leases - The company classifies financial assets into three categories based on its business model for managing financial assets and contractual cash flow characteristics: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[171] - For notes receivable, accounts receivable, and contract assets, the company measures loss provisions at an amount equal to the expected credit losses over the entire lifetime, regardless of the presence of a significant financing component[186] - Inventories are categorized into raw materials, revolving materials, consigned processing materials, work-in-progress, finished goods, and goods in transit, valued using the weighted average method upon issuance, and managed under a perpetual inventory system[195][193] - Fixed assets are depreciated using the straight-line method over their useful lives: buildings 20-30 years, machinery and equipment 3-10 years, transportation equipment 8 years, and office equipment 3-5 years[202] - Intangible assets, including land use rights, software, and patent rights, are amortized using the straight-line method over their finite useful lives: land use rights 50 years, software 5 years, and patent rights 10 years[207] - The company recognizes revenue when the customer obtains control of the related goods or services; for domestic sales, this is upon customer confirmation of the reconciliation statement, and for export sales, upon customs declaration, departure from port, and receipt of bill of lading[223][225] - Government grants are classified as asset-related or income-related; asset-related grants are recognized as deferred income and amortized into profit or loss over the asset's useful life, while income-related grants compensating for incurred costs are recognized in current profit or loss[232] - The company recognizes right-of-use assets and lease liabilities for all leases, except for short-term and low-value asset leases, and amortizes them using the straight-line method into the cost of related assets or current profit or loss[236][237][238] VI. Taxation This section lists the company's main tax categories and rates, and explains the high-tech enterprise income tax preferential policies enjoyed by the company and its subsidiaries Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Calculated based on sales of goods and taxable services as stipulated by tax law, with output tax minus deductible input tax as VAT payable | 13%, 9%, 6% | | Urban Maintenance and Construction Tax | Based on actual turnover tax paid | 5%, 7% | | Corporate Income Tax | Based on taxable income | 15%, 25% | | Education Surcharge | Based on actual turnover tax paid | 3% | | Local Education Surcharge | Based on actual turnover tax paid | 2% | - The company and its subsidiary, Zhuzhou OKE Cutting Tool Co., Ltd., are both recognized as high-tech enterprises, enjoying a 15% corporate income tax preferential rate[248] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes for various consolidated financial statement items, explaining their period-end balances, changes, and relevant circumstances 1. Cash and Bank Balances Cash and Bank Balances (CNY) | Item | Period-End Balance | Period-Beginning Balance | | :--- | :--- | :--- | | Bank Deposits | 356,432,666.83 | 187,057,974.06 | | Other Cash and Bank Balances | 58,978,129.11 | 112,956,891.61 | | Total | 415,410,795.94 | 300,014,865.67 | - Restricted other cash and bank balances totaled CNY 58,978,129.11 at period-end, mainly comprising bill deposits, domestic letter of credit deposits, and structured deposit guarantees[250] 2. Financial Assets Held for Trading Financial Assets Held for Trading (CNY) | Item | Period-End Balance | Period-Beginning Balance | | :--- | :--- | :--- | | Large-Denomination Certificates of Deposit | 160,718,984.61 | 289,467,539.31 | | Other Wealth Management Products | 20,172,137.51 | 82,308,581.03 | | Total | 180,891,122.12 | 371,776,120.34 | 4. Notes Receivable Notes Receivable (CNY) | Item | Period-End Balance | Period-Beginning Balance | | :--- | :--- | :--- | | Bank Acceptance Bills | 131,585,285.44 | 217,399,364.65 | | Commercial Acceptance Bills | 14,845,538.88 | 10,829,749.85 | | Total | 146,430,824.32 | 228,229,114.50 | - Notes receivable endorsed or discounted and not yet due totaled CNY 112,194,206.35 at period-end[256] 5. Accounts Receivable Accounts Receivable (CNY) | Aging | Period-End Book Balance | | :--- | :--- | | Within 1 year (inclusive) | 470,291,530.04 | | 1 to 2 years | 45,147,248.09 | | 2 to 3 years | 6,010,581.25 | | 3 to 4 years | 1,344,792.40 | | Total | 522,794,151.78 | - The period-end balance of accounts receivable impairment provision was CNY 33,616,600.17, including CNY 2,754,990.97 for individually assessed provisions and CNY 30,861,609.20 for collectively assessed provisions[263] 7. Financing for Receivables 8. Prepayments 9. Other Receivables 10. Inventories Inventory Classification (CNY) | Item | Period-End Book Value | | :--- | :--- | | Raw Materials | 122,784,800.42 | | Work-in-Progress | 190,033,940.60 | | Finished Goods | 264,182,320.42 | | Revolving Materials | 9,641,144.64 | | Goods in Transit | 62,408,505.32 | | Consigned Processing Materials | 6,647,638.13 | | Total | 655,698,349.53 | - The period-end balance of inventory impairment provision was CNY 23,820,093.49, with CNY 9,674,346.37 recognized in the current period[292] [13. Other Current Assets](index=105&type=section&id=13.%20Other%20Current