晋亿实业(601002) - 2025 Q2 - 季度财报

Important Notice This section contains critical declarations from the board, supervisors, and management, profit distribution plans, forward-looking statements, and significant risk warnings Board of Directors, Supervisory Board, and Senior Management Declaration The company's board, supervisory board, and senior management declare the truthfulness, accuracy, and completeness of this semi-annual report, which is unaudited - Company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[3] - Company's head, chief accountant, and head of accounting department declare the truthfulness, accuracy, and completeness of the financial report[5] - This semi-annual report is unaudited[5] Profit Distribution Plan The board's resolution for profit distribution or capital reserve conversion to share capital for this reporting period is "none" - No profit distribution plan or capital reserve conversion to share capital plan for this reporting period[6] Risk Statement for Forward-Looking Statements Forward-looking descriptions in this report, such as future plans and development strategies, do not constitute a substantial commitment to investors - Forward-looking descriptions in this report do not constitute a substantial commitment to investors, who should be aware of investment risks[6] Significant Risk Warning The company has detailed potential risks in Section III, Management Discussion and Analysis, advising investors to review them - The company has detailed potential risks in Section III, Management Discussion and Analysis[7] Definitions This section defines common terms used in the report, including company names, currency units, and abbreviations for subsidiaries and affiliates Definitions of Common Terms This section defines common terms used in the report, such as "Company," "Gem-Year Industrial" referring to Gem-Year Industrial Co., Ltd., and "Yuan" referring to RMB Yuan - This section defines common terms used in the report, such as “Company,” “Gem-Year Industrial” referring to Gem-Year Industrial Co., Ltd., and “Yuan” referring to RMB Yuan[15] - Lists abbreviations for several subsidiaries and affiliates, including Taizhan Mould, Litong Technology, Jinzheng Automation, Jinji Auto Parts[15] Company Profile and Key Financial Indicators This section provides the company's basic information, contact details, and key financial performance metrics for the reporting period Company Information This section provides the company's basic registration information, contact details, addresses, information disclosure channels, and stock overview - Company's Chinese name is Gem-Year Industrial Co., Ltd., stock abbreviation Gem-Year Industrial, stock code 601002, legal representative Cai Yonglong[13][19] - Company's registered and office address is No. 8, Gem-Year Avenue, Jiashan Economic Development Zone, Zhejiang Province; company website is www.gem-year.com[17](index=17&type=chunk) - Selected information disclosure newspapers are Shanghai Securities News, China Securities Journal, and the website for semi-annual reports is www.sse.com.cn[18](index=18&type=chunk) Company's Key Accounting Data and Financial Indicators During the reporting period, the company achieved significant growth in operating revenue and net profit, turning losses into gains, but net cash flow from operating activities decreased Major Accounting Data (Jan-Jun 2025 vs. Jan-Jun 2024) | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,183,657,229.71 Yuan | 904,393,439.10 Yuan | 30.88 | | Total Profit | 133,100,866.70 Yuan | -31,374,617.04 Yuan | Not applicable | | Net Profit Attributable to Shareholders of Listed Company | 117,332,737.18 Yuan | -27,079,039.95 Yuan | Not applicable | | Net Cash Flow from Operating Activities | 136,335,183.38 Yuan | 182,257,051.54 Yuan | -25.20 | | Net Assets Attributable to Shareholders of Listed Company (End of Period) | 4,199,766,573.51 Yuan | 4,175,085,453.46 Yuan | 0.59 | | Total Assets (End of Period) | 5,037,340,397.87 Yuan | 5,181,470,875.50 Yuan | -2.78 | Major Financial Indicators (Jan-Jun 2025 vs. Jan-Jun 2024) | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.123 | -0.028 | Not applicable | | Diluted Earnings Per Share (Yuan/share) | 0.123 | -0.028 | Not applicable | | Weighted Average Return on Net Assets (%) | 2.78 | -0.66 | Increased by 3.44 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Gains and Losses) (%) | 2.70 | -0.64 | Increased by 3.34 percentage points | - Company's operating revenue increased by 30.88% year-on-year, and net profit attributable to shareholders of the listed company turned losses into gains[22] - Net cash flow from operating activities decreased by 25.20% year-on-year, primarily due to increased cash payments for goods purchased and services received[22][37] Non-Recurring Gains and Losses Items and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 3.34 million Yuan, mainly from government grants and fair value changes of financial assets Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Gains and losses on disposal of non-current assets | 55,428.94 | | Government grants recognized in current profit or loss | 1,757,301.76 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains and losses from disposal of financial assets and liabilities | 1,425,830.16 | | Other non-operating income and expenses other than the above | 627,626.08 | | Less: Income tax impact | 528,210.82 | | Minority interests impact (after tax) | 77.32 | | Total | 3,337,898.80 | - Total non-recurring gains and losses amounted to 3.34 million Yuan, with a positive impact on net profit[24] Management Discussion and Analysis This section discusses the company's industry, main business, operational performance, core competencies, and financial position during the reporting period Explanation of the Company's Industry and Main Business during the Reporting Period The company primarily operates in the fastener and railway fastener industries, facing market growth, competition, and benefiting from national railway investments - Fasteners are the most widely used basic mechanical parts, extensively applied in automotive, energy, electronics, electrical appliances, and machinery industries[26] - China has become the world's largest fastener producer and consumer, but the industry faces issues such as small enterprise scale, limited R&D, and severe homogenization of low-to-mid-end products[26] - In the first half of 2025, China's fastener export volume increased by 12.9% year-on-year, and export value increased by 7.9% year-on-year[27] - Railway fasteners are critical components for rail transit construction, with strict technical requirements and high entry barriers[28] - In the first half of 2025, national railway fixed asset investment reached 355.9 billion Yuan, a year-on-year increase of 5.5%, providing continuous growth momentum for the railway fastener market[28] - The company is a leading enterprise in China's fastener industry, one of the world's largest fastener manufacturers, and the only domestic enterprise capable of independently producing complete sets of high-speed rail fastener components and assemblies for speeds of 250 km/h and 350 km/h[28] - The company's main business includes research, development, production, and sales of various fasteners, railway fasteners, hardware products, fine wire, and automated warehousing equipment[29] - Company's procurement model involves centralized purchasing and strict supplier screening; production combines planned and order-based manufacturing; sales for fasteners use a combination of direct and distribution channels, while railway fasteners are sold through bidding[30][31][32] Discussion and Analysis of Operating Performance The company maintained good operating performance by focusing on technological innovation, product structure optimization, internal management, and cost reduction amidst a complex international environment - The company continuously promotes technological innovation, optimizes product structure, improves internal management mechanisms, effectively reduces costs, and enhances efficiency, maintaining good overall operating conditions[32] - The company is committed to improving manufacturing processes for mid-to-high-end fasteners, actively expanding product applications in new energy vehicles, power energy, and high-speed rail industries, and establishing long-term cooperation with mainstream domestic manufacturers[33] - In the railway fastener sector, the company enhances product reliability through refined manufacturing processes, actively participates in national railway bidding activities, and explores the high-speed rail fastener maintenance market[33] - The company adheres to an ecological priority concept, phasing out high-pollution equipment, introducing environmental protection devices, promoting production process innovation, and resource recycling to reduce ecological environmental burden[34] Analysis of Core Competencies The company's core competencies include strong brand influence, continuous R&D innovation, leading technical advantages, efficient information management, significant scale effects, and a stable talent team - The company's “CYI” brand is a Zhejiang export famous brand, registered in multiple countries globally, with high market recognition[35] - The company possesses years of fastener manufacturing and R&D experience, operates an R&D center, is a designated railway equipment research and development base for China Railway Corporation, and its laboratory is A2LA and CNAS accredited[35] - The company is a national high-tech enterprise, boasting industry-leading fastener production equipment and technology, certified with ISO9001, IATF16949, and CRCC certification for high-speed rail fastener products[35][36] - The company continuously implements deeply customized ERP, EBS, OA, and other systems to achieve integrated management processes[36] - The company is one of the world's largest fastener manufacturers, offering over twenty-five thousand product types, and operates modern automated warehouses in multiple locations, providing strong product supply advantages[36] - The company has a professional talent pool with years of experience in the fastener industry and an experienced management team, ensuring its sustainable development[36] Major Operating Performance during the Reporting Period During the reporting period, the company's main business revenue significantly increased due to railway fastener sales, but net cash flow from operating activities decreased Analysis of Main Business Operating revenue increased by 30.88% due to higher railway fastener sales, while operating costs rose with sales volume, and selling expenses significantly increased Financial Statement Item Changes (Jan-Jun 2025 vs. Jan-Jun 2024) | Item | Current Period Amount (Yuan) | Prior Year Period Amount (Yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,183,657,229.71 | 904,393,439.10 | 30.88 | Increased sales of complete sets of railway fastener products | | Operating Cost | 911,011,376.95 | 848,060,064.41 | 7.42 | Increased sales volume of railway fastener products | | Selling Expenses | 40,083,120.51 | 11,302,986.85 | 254.62 | Increased sales service fees | | Administrative Expenses | 36,568,377.54 | 43,432,092.49 | -15.80 | Decreased office and business entertainment expenses | | Financial Expenses | -4,025,886.57 | -3,573,705.00 | Not applicable | Decreased interest expenses and increased interest income | | R&D Expenses | 51,448,274.45 | 47,160,292.88 | 9.09 | Increased R&D investment | | Net Cash Flow from Operating Activities | 136,335,183.38 | 182,257,051.54 | -25.20 | Increased cash payments for goods purchased and services received | - Operating revenue increased by 30.88% year-on-year, primarily due to increased sales of complete sets of railway fastener products[37] - Selling expenses significantly increased by 254.62%, mainly due to increased sales service fees[37] - Net cash flow from operating activities decreased by 25.20% year-on-year, primarily due to increased cash payments for goods purchased and services received[37] Analysis of Assets and Liabilities At the end of the reporting period, cash and bank balances and notes receivable significantly increased, while financial assets held for trading and prepayments decreased Asset and Liability Changes (End of Current Period vs. End of Previous Year) | Item Name | Current Period End Amount (Yuan) | Proportion of Total Assets (%) | Prior Year End Amount (Yuan) | Proportion of Total Assets (%) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 692,865,003.73 | 13.75 | 526,570,379.01 | 10.16 | 31.58 | Increased due to redemption of bank wealth management products | | Financial Assets Held for Trading | 126,360,000.00 | 2.51 | 251,380,000.00 | 4.85 | -49.73 | Net decrease in wealth management product investments | | Notes Receivable | 87,703,061.04 | 1.74 | 46,394,908.39 | 0.90 | 89.04 | Increased commercial acceptance bills received | | Prepayments | 64,974,973.78 | 1.29 | 120,548,296.68 | 2.33 | -46.10 | Decreased prepayments for raw materials | | Short-term Borrowings | 30,019,166.67 | 0.60 | - | 0.00 | Not applicable | Increased bank short-term borrowings | | Notes Payable | 403,488,344.25 | 8.01 | 587,797,381.87 | 11.34 | -31.36 | Decreased notes paid for raw material purchases | | Contract Liabilities | 15,089,369.39 | 0.30 | 24,414,747.05 | 0.47 | -38.2 | Decreased advance receipts for goods | - Cash and bank balances at the end of the period increased by 31.58% compared to the end of the previous year, primarily due to the redemption of bank wealth management products[39] - Financial assets held for trading at the end of the period decreased by 49.73%, primarily due to a net decrease in wealth management product investments[39] - Overseas assets at the end of the period amounted to 301.06 million Yuan, accounting for 5.98% of total assets[40] Analysis of Investment Status The company established new investment companies in Hong Kong and Thailand through its wholly-owned subsidiary to expand its overseas market share - To increase the company's overseas market share for fastener products, the company's wholly-owned subsidiary, Quanlianyi Co., Ltd., invested in establishing Quanlianyi International Co., Ltd. in Hong Kong and GEM-YEAR INDUSTRIAL CO., LTD. in Thailand[43][362] Financial Assets Measured at Fair Value (End of Period) | Asset Category | Beginning Balance (Yuan) | Amount Purchased in Current Period (Yuan) | Amount Sold/Redeemed in Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 251,380,000.00 | 458,220,000.00 | 583,240,000.00 | 126,360,000.00 | | Financing for Receivables | 150,714,986.97 | - | - | 117,094,571.92 | | Other Equity Instrument Investments | 70,194,109.46 | - | - | 70,345,762.45 | | Total | 472,289,096.43 | 458,220,000.00 | 583,240,000.00 | 313,800,334.37 | - Total financial assets measured at fair value amounted to 313.80 million Yuan at the end of the period[45] Analysis of Major Holding and Participating Companies The company's major subsidiaries, including Jinji Auto Parts, Jinzheng Automation, and Jinde, contributed significant operating revenue and net profit in their respective fields Financial Data of Major Holding Subsidiaries (Unit: 10,000 Yuan) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jinji Auto Parts | Subsidiary | Automotive fastener production, sales | 26,073.97 | 53,543.89 | 41,788.68 | 21,302.67 | 2,421.49 | 2,109.26 | | Jinzheng Automation | Subsidiary | Automated warehousing equipment manufacturing, sales | 4,822.81 | 9,043.53 | 7,628.41 | 1,787.76 | 914.22 | 745.08 | | Jinde | Subsidiary | Fastener production, sales | 58,578.73 | 56,266.08 | 53,935.71 | 16,189.25 | 559.74 | 524.61 | - Jinji Auto Parts performed outstandingly in automotive fastener production and sales, with operating revenue 213.03 million Yuan, net profit 21.09 million Yuan[46] - Jinzheng Automation focuses on automated warehousing equipment manufacturing, achieving operating revenue 17.88 million Yuan, net profit 7.45 million Yuan[46] Other Disclosure Matters The company identified and disclosed six categories of risks, including macroeconomic fluctuations, industry competition, and environmental risks, along with corresponding mitigation strategies Potential Risks The company faces risks from macroeconomic fluctuations, intensified industry competition, insufficient technological innovation, raw material price volatility, international trade barriers, and stricter environmental requirements - The company's main products, fasteners, are susceptible to macroeconomic and industry cycle changes; the company will promptly adjust product structure, improve quality, and strengthen cost control[47] - The domestic fastener market is highly competitive; the company will continuously increase R&D investment, enhance production intelligence, optimize product structure, and vigorously develop mid-to-high-end fastener products[47] - The company faces risks in technological innovation capability and will strengthen forward-looking technological research to ensure product technical performance remains leading domestically and internationally, while improving its quality assurance system[47][48] - Raw material price fluctuations significantly impact the company's production costs; the company will closely monitor price trends, strengthen inventory management, expand supply channels, and centralize procurement to mitigate negative effects[48] - Fastener product exports face trade barriers; the company will actively explore diversified markets, diversify trade risks, strengthen trademark protection, and increase the technological content and added value of export products[49] - Fastener production involves environmental risks; the company will strictly implement environmental regulations, promote environmental projects, strengthen energy conservation and emission reduction, and ensure pollutant discharge meets standards[50] Corporate Governance, Environment, and Society This section covers the company's profit distribution plans and environmental information disclosure status for the reporting period Profit Distribution or Capital Reserve Conversion Plan The company's semi-annual profit distribution or capital reserve conversion to share capital plan is "no," meaning no distribution or conversion for this reporting period - The company's semi-annual profit distribution or capital reserve conversion to share capital plan is “no”[53] Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law The company and its major subsidiaries, Gem-Year Industrial Co., Ltd. (new plant area) and Jinde Co., Ltd., are included in the list of enterprises required to disclose environmental information - Gem-Year Industrial Co., Ltd., its new plant area, and Jinde Co., Ltd. are all included in the list of enterprises required to disclose environmental information by law[53] - Environmental information disclosure reports can be accessed through the Zhejiang Provincial Department of Ecology and Environment and the Enterprise Environmental Information Disclosure System (Shandong)[53] Significant Matters This section details the fulfillment of commitments, audit status, integrity of the company and its controlling shareholders, significant related-party transactions, and major contracts Fulfillment of Commitments The company's controlling shareholder and actual controller have timely and strictly fulfilled all commitments regarding avoiding horizontal competition, resolving related-party transactions, and other operational matters - The controlling shareholder, Jinzheng Enterprise, and the actual controller have timely and strictly fulfilled their commitments regarding avoiding horizontal competition, resolving related-party transactions, and other matters[56][57] - All directors of the company have timely and strictly fulfilled their commitments regarding the absence of false records in non-public offering application documents[56] - The controlling shareholder and actual controller committed to bearing losses incurred by the company due to violations of labor, social insurance, and housing provident fund laws or failure to obtain property certificates, and these commitments have been timely and strictly fulfilled[57] Semi-Annual Report Audit Status This semi-annual report is unaudited. The company has resolved to continue appointing Tianjian Certified Public Accountants (Special General Partnership) as its 2025 financial auditor - This semi-annual report is unaudited[5] - The company has resolved to continue appointing Tianjian Certified Public Accountants (Special General Partnership) as its financial auditor for 2025[60] Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller during the Reporting Period During the reporting period, neither the company nor its controlling shareholder or actual controller had any records of failing to comply with effective court judgments or large overdue debts - During the reporting period, neither the company nor its actual controller had any records of failing to comply with effective court judgments or large overdue debts[60] Significant Related-Party Transactions The company engaged in daily operational related-party transactions, including purchases and sales of goods and acceptance of services, with several affiliates, all priced fairly - The company engaged in related-party transactions with Jinshunxin, including purchasing fasteners, hardware, and receiving warehousing and transportation services, as well as selling wire rods, fasteners, and hardware, with significant sales amounts[61][62] - The company engaged in related-party transactions with Litong Technology, Taizhan Mould, Jinchun Precision, and other affiliates, including purchasing accessories, software, equipment, and receiving services[63][64] - All related-party transaction pricing policies and bases adhered to fair and equitable principles[61][63] - Asset sales related-party transactions with Jinshunxin amounted to 422,654.86 Yuan in this period[396] Major Contracts and Their Fulfillment The company signed and fulfilled several significant railway engineering sales contracts during the reporting period, demonstrating its market position and business scale in railway fasteners - The company signed a 728 million Yuan sales contract with Jing-Shen Railway Passenger Dedicated Line Liaoning Co., Ltd., with 727 million Yuan (tax inclusive) sales realized by the end of the reporting period[68] - The company signed a 285 million Yuan sales contract with Xi'an-Chengdu Railway Passenger Dedicated Line Shaanxi Co., Ltd., with 133 million Yuan (tax inclusive) sales realized by the end of the reporting period[68] - The company signed a 728 million Yuan sales contract with Chengdu-Dazhou-Wanzhou High-Speed Railway Co., Ltd., with no sales realized by the end of the reporting period[68] - The company signed two sales contracts totaling 653 million Yuan with Jing-Kun High-Speed Railway Xi-Kun Co., Ltd., with no sales realized by the end of the reporting period[69] Share Changes and Shareholder Information This section details the company's share capital changes and shareholder structure, including the total number of shareholders and the top ten shareholders Share Capital Changes During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[71] Shareholder Information As of the end of the reporting period, the company had 49,770 common shareholders, with CHIN CHAMP ENTERPRISE CO., LTD. as the controlling shareholder - As of the end of the reporting period, the total number of common shareholders was 49,770[73] Top Ten Shareholders' Shareholding (Excluding shares lent through securities lending) | Shareholder Name | Number of Shares Held at Period End (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | CHIN CHAMP ENTERPRISE CO., LTD. | 372,064,367 | 38.98 | Overseas Legal Person | | Jinzheng Trading Co., Ltd. | 40,000,000 | 4.19 | Domestic Non-State-Owned Legal Person | | Jinzheng Investment Co., Ltd. | 17,405,060 | 1.82 | Domestic Non-State-Owned Legal Person | | Zhao Yibo | 4,294,600 | 0.45 | Domestic Natural Person | | Zhang Jingshan | 4,078,143 | 0.43 | Domestic Natural Person | | Zhu Lin | 3,870,036 | 0.41 | Domestic Natural Person | | J. P. Morgan Securities PLC－Own Funds | 3,719,470 | 0.39 | Overseas Legal Person | | Pan Qinyu | 3,709,959 | 0.39 | Domestic Natural Person | | Guo Chengliang | 3,590,000 | 0.38 | Domestic Natural Person | | Zhang Ping | 2,950,000 | 0.31 | Domestic Natural Person | - CHIN CHAMP ENTERPRISE CO., LTD., Jinzheng Trading Co., Ltd., and Jinzheng Investment Co., Ltd. are parties acting in concert[73] Bond-Related Information This section confirms the absence of company bonds, enterprise bonds, non-financial enterprise debt financing instruments, and convertible corporate bonds during the reporting period 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 - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[76] Convertible Corporate Bonds During the reporting period, the company had no convertible corporate bonds - The company has no convertible corporate bonds[76] Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[78] Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025 Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 5.04 billion Yuan, slightly down, while net assets attributable to parent company shareholders were 4.20 billion Yuan, slightly up Consolidated Balance Sheet Key Data (June 30, 2025 vs. Dec 31, 2024) | Item | June 30, 2025 (Yuan) | December 31, 2024 (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 5,037,340,397.87 | 5,181,470,875.50 | -2.78 | | Total Liabilities | 826,977,528.12 | 996,426,606.69 | -17.01 | | Total Equity Attributable to Parent Company Owners | 4,199,766,573.51 | 4,175,085,453.46 | 0.59 | - Total current assets amounted to 3.11 billion Yuan, and total non-current assets amounted to 1.93 billion Yuan[78][79] - Total current liabilities amounted to 791 million Yuan, and total non-current liabilities amounted to 35.48 million Yuan[79][80] Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were 5.05 billion Yuan, slightly down, while total owners' equity was 4.08 billion Yuan, slightly down Parent Company Balance Sheet Key Data (June 30, 2025 vs. Dec 31, 2024) | Item | June 30, 2025 (Yuan) | December 31, 2024 (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 5,052,022,652.30 | 5,195,910,782.61 | -2.77 | | Total Liabilities | 967,630,739.40 | 1,099,338,644.63 | -12.00 | | Total Owners' Equity | 4,084,391,912.90 | 4,096,572,137.98 | -0.30 | - Total current assets amounted to 2.19 billion Yuan, and total non-current assets amounted to 2.86 billion Yuan[82] - Total current liabilities amounted to 947 million Yuan, and total non-current liabilities amounted to 20.26 million Yuan[82][83] Consolidated Income Statement In the first half of 2025, the company's consolidated total operating revenue increased by 30.88%, and net profit turned losses into gains, reaching 118 million Yuan Consolidated Income Statement Key Data (Jan-Jun 2025 vs. Jan-Jun 2024) | Item | Jan-Jun 2025 (Yuan) | Jan-Jun 2024 (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,183,657,229.71 | 904,393,439.10 | 30.88 | | Total Operating Cost | 1,049,517,317.85 | 958,737,142.37 | 9.47 | | Total Profit | 133,100,866.70 | -31,374,617.04 | Not applicable | | Net Profit | 117,970,218.07 | -26,320,066.27 | Not applicable | | Net Profit Attributable to Parent Company Shareholders | 117,332,737.18 | -27,079,039.95 | Not applicable | - Total operating revenue increased by 30.88% year-on-year, and net profit turned losses into gains[85][86] - Selling expenses significantly increased by 254.62%, administrative expenses decreased by 15.80%, and R&D expenses increased by 9.09%[85][86] Parent Company Income Statement In the first half of 2025, the parent company's operating revenue increased by 41.38%, and net profit turned losses into gains, reaching 82.05 million Yuan Parent Company Income Statement Key Data (Jan-Jun 2025 vs. Jan-Jun 2024) | Item | Jan-Jun 2025 (Yuan) | Jan-Jun 2024 (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 989,982,555.40 | 700,239,349.14 | 41.38 | | Operating Cost | 789,934,665.15 | 690,082,825.90 | 14.47 | | Total Profit | 91,786,207.72 | -32,674,881.94 | Not applicable | | Net Profit | 82,049,527.96 | -25,096,066.83 | Not applicable | - Parent company operating revenue increased by 41.38% year-on-year, and net profit turned losses into gains[89][90] - Selling expenses significantly increased, R&D expenses increased, and administrative expenses decreased[89] Consolidated Cash Flow Statement In the first half of 2025, net cash flow from operating activities was 136 million Yuan, a 25.20% year-on-year decrease, while net cash flow from investing activities was 93.52 million Yuan Consolidated Cash Flow Statement Key Data (Jan-Jun 2025 vs. Jan-Jun 2024) | Item | Jan-Jun 2025 (Yuan) | Jan-Jun 2024 (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 136,335,183.38 | 182,257,051.54 | -25.20 | | Net Cash Flow from Investing Activities | 93,521,096.57 | 88,796,372.06 | 5.32 | | Net Cash Flow from Financing Activities | -59,747,649.33 | -151,155,247.96 | Not applicable | | Net Increase in Cash and Cash Equivalents | 166,294,624.72 | 122,133,082.93 | 36.16 | - Net cash flow from operating activities decreased by 25.20% year-on-year, primarily due to increased cash payments for goods purchased and services received[37] - Net cash flow from investing activities increased by 5.32% year-on-year, primarily due to increased redemption of bank wealth management products[37] - Net cash outflow from financing activities decreased, primarily due to increased dividend distribution in the current period and repayment of foreign debt in the prior period[37] Parent Company Cash Flow Statement In the first half of 2025, net cash flow from operating activities was 134 million Yuan, a 13.60% year-on-year decrease, while net cash flow from investing activities was a net outflow of 169 million Yuan Parent Company Cash Flow Statement Key Data (Jan-Jun 2025 vs. Jan-Jun 2024) | Item | Jan-Jun 2025 (Yuan) | Jan-Jun 2024 (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 134,410,960.84 | 155,568,631.91 | -13.60 | | Net Cash Flow from Investing Activities | -168,717,235.89 | 50,189,421.44 | Not applicable | | Net Cash Flow from Financing Activities | -61,110,649.33 | -94,208,527.96 | Not applicable | | Net Increase in Cash and Cash Equivalents | -98,935,793.48 | 113,065,440.51 | Not applicable | - Parent company net cash flow from operating activities decreased by 13.60% year-on-year[95] - Net cash flow from investing activities changed from a net inflow to a net outflow, primarily due to increased cash payments for acquiring subsidiaries and other operating units[96] - Net cash outflow from financing activities decreased, primarily due to a decrease in cash received related to financing activities[96] Consolidated Statement of Changes in Owners' Equity As of June 30, 2025, total equity attributable to parent company owners was 4.20 billion Yuan, an increase of 24.68 million Yuan from the beginning of the period - Total equity attributable to parent company owners amounted to 4.20 billion Yuan, an increase of 24.68 million Yuan from the beginning of the period[101] - Total comprehensive income for the period was 118.10 million Yuan, of which 117.47 million Yuan was attributable to parent company owners[101] - Profit distribution resulted in a 95.44 million Yuan decrease in equity attributable to parent company owners[99] Parent Company Statement of Changes in Owners' Equity As of June 30, 2025, parent company owners' equity totaled 4.08 billion Yuan, a decrease of 12.18 million Yuan from the beginning of the period - Parent company owners' equity totaled 4.08 billion Yuan, a decrease of 12.18 million Yuan from the beginning of the period[110] - Total comprehensive income for the period was 81.99 million Yuan[110] - Profit distribution resulted in a 95.44 million Yuan decrease in owners' equity[111] Company Basic Information Gem-Year Industrial Co., Ltd., established in 1995 and listed in 2007, primarily engages in R&D, production, and sales of fastener products and hardware tools - Gem-Year Industrial Co., Ltd., formerly Gem-Year Industrial Co., Ltd., was established on November 17, 1995[112] - The company was wholly restructured on October 28, 2003, and listed on the Shanghai Stock Exchange on January 26, 2007[112] - The company's main business is the research, development, production, and sales of fastener products and hardware tools, belonging to the general equipment manufacturing industry[112] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, with no significant doubts about its ability to continue as a going concern for the next 12 months - The company's financial statements are prepared on a going concern basis[113] - There are no matters or circumstances that cause significant doubt about the company's ability to continue as a going concern for the 12 months from the end of the reporting period[114] Significant Accounting Policies and Estimates This section details the company's specific accounting policies and estimates for financial instrument impairment, inventories, fixed assets, and revenue recognition, ensuring compliance with accounting standards - The company has formulated specific accounting policies and estimates for financial instrument impairment, inventories, fixed asset depreciation, construction in progress, intangible assets, and revenue recognition based on its actual production and operation characteristics[115] - The company's financial statements comply with enterprise accounting standards, accurately and completely reflecting the company's financial position and operating results[116] - The company's operating cycle is short, using 12 months as the liquidity classification standard for assets and liabilities[118] - The company follows detailed accounting treatments for financial instrument classification, recognition, measurement, and derecognition, and accrues impairment provisions based on expected credit losses[126][132] - The company's revenue recognition principle is based on the fulfillment of performance obligations, with revenue from fastener sales recognized at a point in time, and revenue from automated warehousing engineering services recognized over a period based on progress[176][178][180] Taxation The company's main taxes include VAT, property tax, urban maintenance and construction tax, education surcharges, and corporate income tax, with some subsidiaries enjoying a 15% preferential tax rate Major Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales of goods and taxable services income | 13%, 9%, 6%, 5%, export tax refund rate 13% | | Property Tax | Original value of property or rental income | 1.2%, 12% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 5%, 7% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | | Corporate Income Tax | Taxable income | 15%, 16.5%, 20%, 25% | - Gem-Year Industrial Co., Ltd., Zhejiang Jinji Auto Parts Co., Ltd., and Zhejiang Jinzheng Automation Engineering Co., Ltd. are recognized as high-tech enterprises, subject to a 15% corporate income tax rate[197] Notes to Consolidated Financial Statement Items This section provides detailed explanations of the ending balances, beginning balances, and changes in major consolidated financial statement items, including assets, liabilities, equity, revenue, and cash flows Cash and Bank Balances At the end of the reporting period, the company's total cash and bank balances were 693 million Yuan, a 31.58% increase, with a significant portion held overseas Composition of Cash and Bank Balances (Unit: Yuan) | Item | Ending Balance | Beginning Balance | | :--- | :--- | :--- | | Cash on hand | 151,268.17 | 192,280.20 | | Bank deposits | 692,650,581.31 | 525,805,267.98 | | Other cash and bank balances | 63,154.25 | 572,830.83 | | Total | 692,865,003.73 | 526,570,379.01 | | Including: Total funds held overseas | 283,829,333.65 | - | - Total cash and bank balances at the end of the period were 692.87 million Yuan, an increase of 31.58% from the beginning of the period[39][199] - Total funds held overseas amounted to 283.83 million Yuan[199] Financial Assets Held for Trading At the end of the reporting period, the company's financial assets held for trading were 126 million Yuan, a 49.73% decrease, mainly due to a net reduction in wealth management product investments Composition of Financial Assets Held for Trading (Unit: Yuan) | Item | Ending Balance | Beginning Balance | | :--- | :--- | :--- | | Financial assets measured at fair value with changes recognized in current profit or loss | 126,360,000.00 | 251,380,000.00 | | Including: Wealth management products | 126,360,000.00 | 251,380,000.00 | | Total | 126,360,000.00 | 251,380,000.00 | - Financial assets held for trading at the end of the period were 126.36 million Yuan, a decrease of 49.73% from the beginning of the period[39][201] - Primarily due to a net decrease in wealth management product investments[39] Notes Receivable At the end of the reporting period, the company's notes receivable balance was 87.70 million Yuan, an 89.04% increase, mainly due to an increase in commercial acceptance bills Classification of Notes Receivable (Unit: Yuan) | Item | Ending Balance | Beginning Balance | | :--- | :--- | :--- | | Commercial acceptance bills | 87,703,061.04 | 46,394,908.39 | | Total | 87,703,061.04 | 46,394,908.39 | - Notes receivable balance at the end of the period was 87.70 million Yuan, an increase of 89.04% from the beginning of the period, primarily due to an increase in commercial acceptance bills received[39][203] - Commercial acceptance bills endorsed or discounted and not yet due at the end of the period amounted to 43.16 million Yuan[205] - Bad debt provision accrued by portfolio was 1.79 million Yuan, with an accrual rate of 2.00%[206] Accounts Receivable At the end of the reporting period, the company's accounts receivable book value was 655 million Yuan, an increase from the beginning of the period, with a bad debt provision of 32.66 million Yuan Accounts Receivable by Age (Unit: Yuan) | Age | Ending Book Balance | Beginning Book Balance | | :--- | :--- | :--- | | Within 1 year | 603,276,825.34 | 556,137,413.31 | | 1-2 years | 73,777,789.81 | 97,786,947.14 | | 2-3 years | 5,710,006.98 | 1,700,229.65 | | Over 3 years | 4,913,608.53 | 9,556,315.26 | | Total | 687,678,230.66 | 665,180,905.36 | - Accounts receivable book value at the end of the period was 655.02 million Yuan, with a bad debt provision of 32.66 million Yuan[211] - The top five debtors accounted for 53.01% of the total accounts receivable and contract assets at the end of the period[217] Contract Assets At the end of the reporting period, the company's contract assets book value was 58.53 million Yuan, mainly comprising quality assurance deposits and automated warehousing project payments Contract Assets (Unit: Yuan) | Item | Ending Book Value | Beginning Book Value | | :--- | :--- | :--- | | Quality assurance deposits | 53,897,682.25 | 51,658,371.93 | | Automated warehousing projects | 4,631,527.06 | 13,179,680.73 | | Total | 58,529,209.31 | 64,838,052.66 | - Contract assets book value at the end of the period was 58.53 million Yuan, with a bad debt provision of 9.64 million Yuan[219][220] - Quality assurance deposits accounted for 93.01% of contract assets, and automated warehousing projects accounted for 6.99%[220] Financing for Receivables At the end of the reporting period, the company's financing for receivables balance was 117 million Yuan, consisting of bank acceptance bills and accounts receivable vouchers Classification of Financing for Receivables (Unit: Yuan) | Item | Ending Balance | Beginning Balance | | :--- | :--- | :--- | | Bank acceptance bills | 101,117,183.63 | 74,540,736.16 | | Accounts receivable [Note] | 15,977,388.29 | 76,174,250.81 | | Total | 117,094,571.92 | 150,714,986.97 | - Financing for receivables balance at the end of the period was 117.09 million Yuan, a decrease of 22.31% from the beginning of the period[226] - Bank acceptance bills endorsed or discounted and not yet due at the end of the period amounted to 164.03 million Yuan[227] - Bad debt provision accrued by portfolio was 326,069.15 Yuan, with an accrual rate of 2.00%[229] Prepayments At the end of the reporting period, the company's prepayments were 64.98 million Yuan, a 46.10% decrease, mainly due to a reduction in prepayments for raw materials Prepayments by Age (Unit: Yuan) | Age | Ending Balance | Proportion (%) | Beginning Balance | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Within 1 year | 52,687,604.41 | 81.09 | 116,130,551.78 | 96.34 | | 1 to 2 years | 11,974,907.39 | 18.43 | 3,807,803.39 | 3.16 | | 2 to 3 years | 49,085.58 | 0.08 | 24,463.99 | 0.02 | | Over 3 years | 263,376.40 | 0.41 | 585,477.52 | 0.49 | | Total | 64,974,973.78 | 100.00 | 120,548,296.68 | 100.00 | - Prepayments at the end of the period were 64.97 million Yuan, a decrease of 46.10% from the beginning of the period, primarily due to a reduction in prepayments for raw materials[39][234] - The top five prepayments totaled 53.98 million Yuan, accounting for 83.08% of the total prepayments at the end of the period[236] Other Receivables At the end of the reporting period, the company's other receivables were 3.07 million Yuan, slightly up, mainly comprising deposits, temporary payments, and petty cash Other Receivables by Age (Unit: Yuan) | Age | Ending Book Balance | Beginning Book Balance | | :--- | :--- | :--- | | Within 1 year | 2,111,439.57 | 2,195,888.34 | | 1 to 2 years | 561,202.02 | 155,810.59 | | 2 to 3 years | 163,880.64 | 163,880.64 | | Over 3 years | 237,321.08 | 489,676.39 | | Total | 3,073,843.31 | 3,005,255.96 | Other Receivables by Nature of Payment (Unit: Yuan) | Nature of Payment | Ending Book Balance | Beginning Book Balance | | :--- | :--- | :--- | | Deposits and guarantees | 2,057,776.34 | 1,799,860.00 | | Temporary receivables | 570,021.82 | 561,899.30 | | Petty cash | 118,753.13 | 248,318.02 | | Fixed asset disposal proceeds | 65,748.40 | 106,852.00 | | Other | 261,543.62 | 288,326.64 | | Total | 3,073,843.31 | 3,005,255.96 | - Other receivables at the end of the period were 3.07 million Yuan, a slight increase from the beginning of the period[238] - The top five other receivables totaled 1.85 million Yuan, accounting for 60.19% of the total other receivables at the end of the period[246] Inventories At the end of the reporting period, the company's inventories book value was 1.30 billion Yuan, a decrease from the beginning of the period, with an inventory impairment provision of 118 million Yuan Inventory Classification (Unit: Yuan) | Item | Ending Book Value | Beginning Book Value | | :--- | :--- | :--- | | Raw materials | 424,015,692.28 | 433,464,031.31 | | Work in progress | 238,003,389.01 | 247,726,002.03 | | Finished goods | 639,519,901.61 | 728,368,009.48 | | Total | 1,301,538,982.90 | 1,409,558,042.82 | Changes in Inventory Impairment Provision and Contract Performance Cost Impairment Provision (Unit: Yuan) | Item | Beginning Balance | Amount Increased in Current Period (Accrual) | Amount Decreased in Current Period (Reversal or Write-off) | Ending Balance | | :--- | :--- | :--- | :--- | :--- | | Raw materials | 145,191.48 | 24,166.06 | 145,191.48 | 24,166.06 | | Work in progress | 11,016,843.94 | 5,064,141.15 | 5,514,067.97 | 10,566,917.12 | | Finished goods | 111,428,288.32 | 20,771,285.30 | 24,765,091.54 | 107,434,482.08 | | Total | 122,590,323.74 | 25,859,592.51 | 30,424,350.99 | 118,025,565.26 | - Inventory book value at the end of the period was 1.30 billion Yuan, a decrease of 7.66% from the beginning of the period[248] - Inventory impairment provision of 25.86 million Yuan was accrued in the current period, and 30.42 million Yuan was reversed or written off[250] Long-term Equity Investments At the end of the reporting period, the company's long-term equity investments book value was 444 million Yuan, slightly up, mainly due to increased investment income from associates Long-term Equity Investments (Unit: Yuan) | Investee | Beginning Balance (Book Value) | Changes in Current Period (Investment Income Recognized under Equity Method) | Ending Balance (Book Value) | | :--- | :--- | :--- | :--- | | Jinshunxin | 419,388,789.67 | 2,458,132.49 | 421,846,922.16 | | Jiashan Litong | 22,097,746.81 | 254,927.89 | 22,352,674.70 | | Subtotal | 441,486,536.48 | 2,713,060.38 | 444,199,596.86 | | Total | 441,486,536.48 | 2,713,060.38 | 444,199,596.86 | - Long-term equity investments book value at the end of the period was 444.20 million Yuan, an increase of 2.71 million Yuan from the beginning of the period[256] - Primarily due to increased investment income from associates Jinshunxin and Jiashan Litong, accounted for using the equity method[256] Other Equity Instrument Investments At the end of the reporting period, the company's other equity instrument investments balance was 70.35 million Yuan, mainly comprising investments in Jinshang Consulting, Jinsheng Consulting, Jinwang Consulting, and Chuangmai Group Other Equity Instrument Investments (Unit: Yuan) | Item | Beginning Balance | Changes in Current Period | Ending Balance | | :--- | :--- | :--- | :--- | | Jinshang Consulting | 42,243,351.37 | 118,961.46 | 42,362,312.83 | | Jinsheng Consulting | 11,237,074.61 | 75,675.57 | 11,312,750.18 | | Jinwang Consulting | 5,046,711.76 | 31,366.17 | 5,078,077.93 | | Chuangmai Group | 11,666,971.72 | -74,350.21 | 11,592,621.51 | | Total | 70,194,109.46 | 151,652.99 | 70,345,762.45 | - Other equity instrument investments balance at the end of the period was 70.35 million Yuan, a slight increase from the beginning of the period[259] Investment Properties At the end of the reporting period, the company's investment properties measured at cost had a book value of 93.94 million Yuan, mainly consisting of buildings and land use rights Book Value of Investment Properties (Unit: Yuan) | Item | Ending Book Value | Beginning Book Value | | :--- | :--- | :--- | | Buildings and structures | 72,895,623.38 | 74,455,399.01 | | Land use rights | 21,047,370.18 | 21,354,848.34 | | Total | 93,942,993.56 | 95,810,247.35 | - Investment properties book value at the end of the period was 93.94 million Yuan, a slight decrease from the beginning of the period[261] - Depreciation and amortization accrued in the current period amounted to 1.87 million Yuan[261] Fixed Assets At the end of the reporting period, the company's fixed assets book value was 1.20 billion Yuan, a 3.99% decrease, with additions of 28.11 million Yuan and depreciation of 77.69 million Yuan Book Value of Fixed Assets (Unit: Yuan) | Item | Ending Book Value | Beginning Book Value | | :--- | :--- | :--- | | Buildings and structures | 506,587,606.94 | 529,794,262.46 | | General equipment | 25,491,398.05 | 26,305,222.26 | | Special equipment | 661,381,080.26 | 685,867,233.26 | | Transportation vehicles | 2,058,491.39 | 3,343,931.22 | | Total | 1,195,518,576.64 | 1,245,310,649.20 | - Fixed assets book value at the end of the period was 1.20 billion Yuan, a decrease of 3.99% from the beginning of the period[265] - Fixed assets increased by 28.11 million Yuan in the current period, primarily due to purchases and transfers from construction in progress[265] - Depreciation accrued in the current period amounted to 77.69 million Yuan[265] - Book value of buildings and structures leased out under operating leases at the end of the period was 13.19 million Yuan[268] - Some factory buildings and shops had not completed property title certificates, with a total book value of 9.18 million Yuan[269] Construction in Progress At the end of the reporting period, the company's construction in progress book value was 5.61 million Yuan, a 64.13% decrease, mainly due to the completion and transfer of workshop equipment installation to fixed assets Construction in Progress (Unit: Yuan) | Item | Ending Book Value | Beginning Book Value | | :--- | :--- | :--- | | Smart factory system construction project | 1,412,197.02 | 1,412,197.02 | | Jinde automated packaging system | 501,390.90 | 501,390.90 | | New energy vehicle fastener technology upgrade project | 265,690.70 | - | | Equipment installation | 3,430,111.72 | 13,725,422.57 | | Total | 5,609,390.34 | 15,639,010.49 | - Construction in progress book value at the end of the period was 5.61 million Yuan, a decrease of 64.13% from the beginning of the period[39][274] - Primarily due to the completion and transfer of workshop equipment installation to fixed assets[39] - The new energy vehicle fastener technology upgrade project increased by 265,690.70 Yuan in the current period[275] Intangible Assets At the end of the reporting period, the company's intangible assets book value was 90.34 million Yuan, slightly down, mainly comprising land use rights and software Book Value of Intangible Assets (Unit: Yuan) | Item | Ending Book Value | Beginning Book Value | | :--- | :--- | :--- | | Land use rights | 78,956,708.12 | 80,062,865.54 | | Software | 11,379,049.43 | 12,392,565.00 | | Total | 90,335,757.55 | 92,455,430.54 | - Intangible assets book value at the end of the period was 90.34 million Yuan, a decrease of 2.29% from the beginning of the period[279] - Amortization increased by 2.04 million Yuan in the current period[278] Goodwill At the end of the reporting period, the company's goodwill original book value was 5.37 million Yuan, primarily from the business combinations of Jinji Auto Parts and Zhejiang Jinzheng Goodwill Original Book Value (Unit: Yuan) | Name of Investee or Event Leading to Goodwill | Beginning Balance | Ending Balance | | :--- | :--- | :--- | | Jinji Auto Parts Co. | 5,114,163.17 | 5,114,163.17 | | Zhejiang Jinzheng Co. | 251,237.67 | 251,237.67 | | Total | 5,365,400.84 | 5,365,400.84 | - Goodwill original book value at the end of the period was 5.37 million Yuan, with no change[280] - Goodwill primarily originated from the business combinations of Jinji Auto Parts and Zhejiang Jinzheng[280] - The company performed impairment tests on goodwill, and the recoverable amount was higher than the book value, so no impairment provision was accrued[281] [Long-term Deferred Expenses](index=98&type=section&id=28%E3%80%81%E9%95%BF%E6%9C%9F%E5%BE%85%E6%BB%A9%E8%B4%B9