嘉环科技(603206) - 2025 Q2 - 季度财报

Definitions This section provides definitions for common terms used in the report, including company identification and key industry acronyms Common Term Definitions | Common Term | Definition | | :--- | :--- | | Company, The Company, Jiahuan Technology | Jiahuan Technology Co., Ltd | | Reporting Period | January 1, 2025 to June 30, 2025 | | ICT | Information and Communications Technology, covering all communication equipment or application software and related services | | 5G | Fifth-generation mobile communication technology | | AI | Artificial Intelligence, theories, methods, technologies, and application systems that simulate, extend, and expand human intelligence | Company Profile and Key Financial Indicators This section provides an overview of Jiahuan Technology Co., Ltd., including its basic information, contact details, and key financial performance metrics for the reporting period Company Information This section provides Jiahuan Technology Co., Ltd.'s basic registration information, including its company name, abbreviation, and legal representative Company Basic Information | Metric | Content | | :--- | :--- | | Chinese Name | Jiahuan Technology Co., Ltd | | Chinese Abbreviation | Jiahuan Technology | | Legal Representative | Zong Yan | Contact Persons and Contact Information This section lists the contact information for the company's Board Secretary and Securities Affairs Representative, facilitating investor communication Contact Persons and Information | Position | Name | Contact Address | Phone | Email | | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Ren Hongjun | Building 10, No. 19 Ningshuang Road, Yuhuatai District, Nanjing | 025-84804818-891 | IR@bestlink.com.cn | | Securities Affairs Representative | Qiao Jihu | Building 10, No. 19 Ningshuang Road, Yuhuatai District, Nanjing | 025-84804818-891 | IR@bestlink.com.cn | Brief Introduction to Changes in Basic Information This section states that the company's registered and office addresses remained unchanged during the reporting period - The company's registered address and office address remained unchanged during the reporting period, both located at Building 10, No. 19 Ningshuang Road, Yuhuatai District, Nanjing[17][18] Brief Introduction to Changes in Information Disclosure and Document Custody Locations This section introduces the company's designated information disclosure newspapers and website, confirming no changes in information disclosure or document custody locations during the reporting period - The company's designated information disclosure newspapers are China Securities Journal, Shanghai Securities News, Securities Times, and Securities Daily, with the semi-annual report published on www.sse.com.cn, and no changes occurred during the reporting period[19] Brief Introduction to Company Stock This section provides basic information about the company's stock, including its listing exchange, abbreviation, and code Company Stock Information | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | Jiahuan Technology | 603206 | Company's Main Accounting Data and Financial Indicators In H1 2025, the company experienced year-over-year declines in operating revenue, total profit, and net profit attributable to shareholders, mainly due to increased expenses and reduced government subsidies, despite an improvement in net cash flow from operating activities Main Accounting Data for H1 2025 | Metric | Current Period (Jan-Jun) (RMB) | Prior Period (RMB) | Period-over-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,919,557,641.04 | 2,051,064,328.08 | -6.41 | | Total Profit | 41,553,770.58 | 61,637,706.10 | -32.58 | | Net Profit Attributable to Shareholders of Listed Company | 45,192,171.58 | 61,383,221.66 | -26.38 | | Net Cash Flow from Operating Activities | -829,607,364.65 | -1,218,173,111.16 | Not Applicable | | Net Assets Attributable to Shareholders of Listed Company (End of Period) | 2,258,718,247.78 | 2,213,217,019.28 | 2.06 | | Total Assets (End of Period) | 7,799,620,637.44 | 7,177,709,501.47 | 8.66 | Main Financial Indicators for H1 2025 | Main Financial Indicator | Current Period (Jan-Jun) | Prior Period | Change from Prior Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.15 | 0.20 | -25.00 | | Diluted Earnings Per Share (RMB/share) | 0.15 | 0.20 | -25.00 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (RMB/share) | 0.12 | 0.18 | -33.33 | | Weighted Average Return on Net Assets (%) | 2.02 | 2.76 | Decrease of 0.74 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 1.63 | 2.42 | Decrease of 0.79 percentage points | - The year-over-year decrease in net profit is primarily due to increased employee compensation in management departments, higher R&D investment, increased short-term bank borrowings for working capital leading to higher financial expenses, and reduced government subsidies and tax incentives[23] - The change in net cash flow from operating activities is mainly attributed to increased sales collections in the current period[23] Non-Recurring Gains and Losses Items and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 8.66 million RMB, primarily including gains/losses from disposal of non-current assets, government grants, fair value changes of financial assets, and reversal of impairment provisions for receivables Non-Recurring Gains and Losses Items for H1 2025 | Non-Recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Gains or losses from disposal of non-current assets, including the write-back of impairment provisions already made | 19,570.77 | | Government grants recognized in current profit or loss, excluding those closely related to the company's ordinary business activities, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on the company's profit or loss | 1,395,177.89 | | Gains or losses from changes in fair value of financial assets and financial liabilities held by non-financial enterprises, and gains or losses from disposal of financial assets and financial liabilities, excluding those related to effective hedging activities in the company's ordinary business | 2,605,530.63 | | Reversal of impairment provisions for receivables for which impairment tests are conducted individually | 5,929,657.95 | | Other non-operating income and expenses apart from the above items | -444,098.48 | | Other profit or loss items that meet the definition of non-recurring gains and losses | 668,590.53 | | Less: Income tax impact | 1,514,611.47 | | Impact on minority interests (after tax) | 0.14 | | Total | 8,659,817.68 | Management Discussion and Analysis This section provides an in-depth analysis of the company's industry, main business operations, financial performance, core competencies, and potential risks during the reporting period Company's Industry and Main Business Operations During the Reporting Period Jiahuan Technology, an ICT service high-tech enterprise, focuses on network construction, O&M, software debugging, optimization, ICT education, and intelligent government/enterprise services, leveraging a nationwide platform and benefiting from stable industry growth and digital transformation initiatives Main Business The company is a high-tech enterprise specializing in information and communication technology services, with its main business covering network construction, operation and maintenance, software debugging, optimization, ICT education, and intelligent services for government and enterprise sectors - The company is a high-tech enterprise specializing in information and communication technology services, with its main business including network construction services, network operation and maintenance services, information and communication system software debugging services, network optimization services, ICT education and training business, and intelligent services for government and enterprise sectors[29] - The company has initially established a "nationwide" comprehensive information and communication technology service platform, covering 31 provinces across the country, with major clients including operators like China Mobile, China Telecom, China Unicom, and China Tower, mainstream communication equipment vendors, as well as government, power energy, and transportation sector clients[29] Main Service Content This section details the company's core service offerings, including network construction, operation and maintenance, software debugging, optimization, ICT education, and intelligent services for government and enterprise sectors - Network Construction Services: Involves construction according to network planning and design documents, primarily covering core network, transmission network, wireless access network, wired access network, communication infrastructure, and data center equipment construction[30] - Network Operation and Maintenance Services: Provides support and maintenance for information and communication equipment, network, and system operations, including daily inspections, maintenance, overhauls, and fault handling; the company was rated as a Class A supplier in China Mobile's primary centralized procurement for the fifth consecutive year[30] - Information and Communication System Software Debugging Services: Engages in multi-product project delivery and technical support services across core networks, wireless networks, data communication networks, transmission networks, access networks, and IT (big data, cloud computing, server products and services)[31] - Network Optimization Services: Utilizes network optimization tools and information systems to conduct professional tests on various network business indicators, and to analyze and evaluate test results before proposing and implementing network parameter adjustments, system equipment adjustments, and optimization solutions[31] - ICT Education and Training: Offers ICT training services to operators, communication equipment vendors, government and enterprise sectors, and universities, cultivating application-oriented innovative technical talents for industrial upgrading[32] - Intelligent Services for Government and Enterprise Sectors: Leverages network construction, optimization, operation and maintenance, and information and communication system software debugging capabilities, combined with new technologies like 5G, cloud computing, and artificial intelligence, to empower digital transformation in sectors such as power energy, smart transportation, smart homes, smart campuses, smart parks, and smart water management[32] Operating Model This section outlines the company's sales, procurement, and service models, emphasizing its matrix management structure and IT system support - Sales Model: Primarily achieved through participating in client-organized bidding and negotiation processes[33] - Procurement Model: Procurement content mainly includes materials and labor for business operations and daily activities, with material procurement based on inquiry-comparison or catalog prices[33] - Service Model: Adopts a matrix-style management organizational structure for TMO (Technical Management Office) and PMO (Project Management Office) business management, possessing end-to-end IT system support capabilities and resource sharing capabilities[33] Company's Market Position The company, established in 1998, is one of the earliest information and communication technology service providers in China, with over two decades of experience, high-level qualifications, and a strategic focus on expanding intelligent services for government and enterprise sectors - Established in 1998, the company is one of the earliest suppliers of information and communication technology services to mainstream communication equipment vendors and operators in China, with over two decades of deep cultivation in the field[35] - The company holds high-level qualifications, including Grade A General Contractor for Communication Engineering Construction, Grade A Professional Contractor for Electronic and Intelligent Engineering, and CMMI Level 5 capability maturity model integration[36] - In the future, the company will continue to maintain and iterate its nationwide integrated service capabilities in the information and communication technology service industry, consolidate and expand its market position, and deeply explore new business areas such as government, universities, power, transportation, real estate, finance, and industry, promoting the rapid development of intelligent comprehensive services for government and enterprise sectors[36] Industry Development Status In the first half of 2025, the communication industry maintained stable operations with growth in telecom services and orderly advancement of new infrastructure, including 5G deployment, while national policies emphasize accelerating digital China construction and "AI+" initiatives, providing strategic opportunities for the company's intelligent services - In the first half of 2025, the communication industry operated generally stable, with telecom business volume and revenue maintaining growth, and new infrastructure construction progressing in an orderly manner, with the total number of 5G base stations reaching 4.549 million, accounting for 35.7% of total mobile base stations[37][38] - The "Government Work Report" proposes accelerating digital China construction, deeply advancing information and communication network construction, expanding large-scale 5G applications, accelerating innovative development of industrial internet, optimizing national computing power resource allocation, building internationally competitive digital industry clusters, and continuously promoting the "AI+" action[39] - The company aims to achieve stable growth in traditional information and communication technology service businesses while vigorously expanding intelligent services for government and enterprise sectors, combining new technologies such as 5G, cloud computing, and artificial intelligence to empower digital transformation in areas like power energy, smart transportation, and smart homes[41] Discussion and Analysis of Operating Results In H1 2025, the company optimized its business structure, leading to short-term revenue and profit declines, while increasing R&D, enhancing digital platforms, and expanding into AI computing and intelligent government/enterprise services - During the reporting period, the company achieved operating revenue of 1.92 billion RMB, a year-over-year decrease of 6.41%; net profit attributable to shareholders of the listed company was 45 million RMB, a year-over-year decrease of 26.38%; the company actively optimized its business structure, focusing on strategic industries and core client groups to promote high-quality, sustainable business development[42] Operating Revenue and Year-over-Year Change by Business Segment for H1 2025 | Business Segment | Current Period Operating Revenue (RMB) | Prior Period Operating Revenue (RMB) | Year-over-Year Growth Rate | | :--- | :--- | :--- | :--- | | Intelligent Services for Government and Enterprise Sectors | 620,818,940.49 | 693,815,930.23 | -10.52% | | Network Construction Services | 565,633,658.77 | 612,336,445.57 | -7.63% | | Network Operation and Maintenance Services | 259,360,279.45 | 268,554,344.25 | -3.42% | | Information and Communication System Software Debugging Services | 267,689,876.64 | 255,424,650.18 | 4.80% | | Network Optimization Services | 180,489,964.81 | 196,711,037.22 | -8.25% | | ICT Education and Training | 20,883,596.52 | 18,187,281.04 | 14.83% | | Other Business Revenue | 4,681,324.36 | 6,034,639.59 | -22.43% | | Total | 1,919,557,641.04 | 2,051,064,328.08 | -6.41% | - The company's R&D expenditure in the first half of 2025 reached 73.05 million RMB, a year-over-year increase of 3.85%; based on its independently developed five digital intelligence platform products (IoT, data enablement, application enablement, intelligent operation center, and Xiao Jia AI), the company built a computing power scheduling platform and the Yijia Cloud™ DeepSeek training-inference integrated machine, and signed a comprehensive cooperation agreement with Huawei Cloud to jointly release a dual-carbon management platform[44][45] - As of June 30, 2025, the company had 5.44 billion RMB in outstanding orders; in traditional business, it won bids for China Mobile's 2025-2026 communication engineering construction service (equipment installation) centralized procurement project worth 958 million RMB and (transmission pipeline) centralized procurement project worth 2.19 billion RMB; in new business, it successfully signed communication system integration and renovation projects for Shenyang Metro and Chengdu Metro, and launched AI intelligent computing centers and AI+ government cloud construction and operation services in multiple provinces and cities including Nanjing, Hefei, Qingdao, and Wuxi[46][47] Analysis of Core Competencies During the Reporting Period The company's core competitiveness is demonstrated by its comprehensive business and technology coverage, nationwide integrated service capabilities, professional and excellent talent pool, strong brand and reputation, continuous technological R&D advantages, and robust ability to expand intelligent service businesses - Comprehensive business and technology coverage with nationwide integrated service capabilities: The company holds high-level qualifications such as Grade A General Contractor for Communication Engineering Construction, Grade A Professional Contractor for Electronic and Intelligent Engineering, and CMMI Level 5 capability maturity model integration, with business covering 31 provinces nationwide, providing integrated services across network construction, maintenance and optimization, system software debugging, and ICT education and training[48] - Professional talent team advantage: Possesses a lean and efficient professional technical team, including over 1,000 senior engineers certified by national and communication equipment vendors, and has established a comprehensive talent development system and incentive mechanism, managing talent through TMO (Technical Management Office) and PMO (Project Management Office) models[49] - Brand and strong reputation advantage: The company has over 20 years of deep cultivation in the information and communication technology service sector, with rich project experience and high service quality, establishing long-term stable cooperative relationships with China Mobile, ZTE, China Telecom, and other major players, and has received multiple industry awards[50] - Technological R&D advantage: The company consistently tracks the development of emerging technologies, actively engages in R&D and innovation, masters multiple core technologies including intelligent work order dispatch management, network equipment configuration collection and processing, and rapid identification of communication network hidden dangers and faults, promoting the integration of cutting-edge technologies with industries such as communication, transportation, power, and smart homes[51] - Intelligent service business expansion capability: Against the backdrop of digital transformation across various industries, the company's intelligent services for government and enterprise sectors have achieved rapid growth, offering scenario-based solutions to clients in smart homes, smart communities, smart campuses, smart factories, power, transportation, and other fields[51] Main Operating Conditions During the Reporting Period This section analyzes changes in key financial statement items, including financial expenses, cash flows, and asset/liability conditions, detailing period-end balances, variations, restricted assets, and fair value financial investments Main Business Analysis This section analyzes the company's main business performance, highlighting the reasons for changes in financial expenses, net cash flow from operating activities, and net cash flow from investing activities - Financial expenses for the current reporting period amounted to 16.07 million RMB, an increase of 32.41% compared to the prior period, primarily due to increased short-term bank borrowings driven by higher working capital demands[53] - The change in net cash flow from operating activities is mainly attributed to increased sales collections in the current period[53] - The change in net cash flow from investing activities is primarily due to the company's use of idle raised funds to purchase cash management products[53] Analysis of Assets and Liabilities This section provides a detailed analysis of the company's asset and liability situation, including significant changes in key accounts and information on restricted assets Main Asset and Liability Changes (H1 2025) | Item Name | Current Period End Balance (RMB) | Current Period End Balance as % of Total Assets | Prior Year End Balance (RMB) | Prior Year End Balance as % of Total Assets | Change from Prior Year End (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 234,788,848.59 | 3.01 | 504,088,695.50 | 7.02 | -53.42 | Primarily due to increased working capital demands during the reporting period | | Notes Receivable Financing | 43,187,430.78 | 0.55 | 71,556,784.33 | 1.00 | -39.65 | Primarily due to the maturity and payment of bank acceptance bills received during the reporting period | | Notes Receivable | 92,298,608.01 | 1.18 | 69,888,928.91 | 0.97 | 32.06 | Primarily due to an increase in acceptance bills received during the reporting period | | Prepayments | 177,340,129.91 | 2.27 | 108,018,248.90 | 1.50 | 64.18 | Primarily due to increased procurement payments corresponding to higher outstanding orders during the reporting period | | Short-term Borrowings | 1,695,637,389.00 | 21.74 | 1,013,370,010.58 | 14.12 | 67.33 | Primarily due to increased working capital demands during the reporting period | | Notes Payable | 166,059,387.53 | 2.13 | 553,723,905.00 | 7.71 | -70.01 | Primarily due to the maturity and payment of notes during the reporting period | | Contract Liabilities | 959,531,563.98 | 12.30 | 639,667,481.19 | 8.91 | 50.00 | Primarily due to increased contract liabilities corresponding to higher outstanding orders during the reporting period | - As of the end of the reporting period, details of the company's restricted assets are provided in "Section VIII Financial Report," "VII. Notes to Consolidated Financial Statement Items," "31. Assets with Restricted Ownership or Use Rights" of this report[56] Analysis of Investment Status This section analyzes the company's investment activities, focusing on changes in financial assets measured at fair value Changes in Financial Assets Measured at Fair Value | Asset Class | Beginning of Period Balance (RMB) | Fair Value Change Gain/Loss for Current Period (RMB) | Amount Purchased This Period (RMB) | Amount Sold/Redeemed This Period (RMB) | End of Period Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 351,661,714.61 | 40,841.55 | 825,000,000.00 | 798,000,000.00 | 378,702,556.16 | | Notes Receivable Financing | 71,556,784.33 | | 136,929,899.68 | 165,299,253.23 | 43,187,430.78 | | Total | 423,218,498.94 | 40,841.55 | 961,929,899.68 | 963,299,253.23 | 421,889,986.94 | Analysis of Major Holding and Investee Companies This section provides financial information for the company's major subsidiaries, including their type, main business, registered capital, total assets, net assets, main business revenue, and net profit Major Subsidiary Financial Information (H1 2025) | Company Name | Company Type | Main Business | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Main Business Revenue (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Nanjing Jiahuan Network Communication Technology Co., Ltd. | Subsidiary | Communication Technology Services | 30,010,000 | 1,376,738,158.23 | 56,419,849.79 | 184,434,373.86 | 5,303,902.88 | | Nanjing Ninglian Information Technology Co., Ltd. | Subsidiary | Information Technology Services | 5,000,000 | 166,874,658.57 | 40,680,989.00 | 89,619,542.44 | 5,743,528.35 | | Nanjing Xingshengze Information Technology Co., Ltd. | Subsidiary | Information Technology Services | 20,000,000 | 136,296,936.34 | 51,710,129.71 | 119,676,175.21 | 5,455,265.90 | Other Disclosure Matters The company faces multiple risks, including intense market competition, rapid technological iteration, high customer concentration, large scale of accounts receivable and inventory potentially affecting cash flow and leading to impairment risks, and uncertainties in the implementation of raised fund investment projects Potential Risks This section outlines the various risks the company may face, including market competition, technological changes, customer concentration, and financial risks related to receivables and inventory - Market competition risk: The information and communication technology service industry has many participants and intense competition; if the company cannot continuously enhance its competitive strength, it may face the risk of declining market share[60] - Technology risk: Mobile communication technology is constantly iterating; if the company cannot continuously improve its R&D capabilities and promptly enhance its application capabilities for mainstream communication technologies, it may fail to meet client and market development needs[60] - Risk of high customer concentration: Major clients are large operators and communication equipment vendors; if there are significant adverse changes in the investment plans, policies, or operating conditions of these major clients, it may lead to a substantial decline in the company's operating performance[61] - Risk of high accounts receivable and inventory: As of June 30, 2025, the book value of the company's accounts receivable was 2.42 billion RMB, and inventory book value was 3.92 billion RMB; if these cannot be collected or managed effectively, it may affect working capital efficiency or lead to inventory impairment[62] - Risk of raised fund investment project implementation: Raised fund investment projects may face uncertainties due to macroeconomic conditions, market environment, and industrial policies, potentially leading to extended construction periods or failure to generate expected benefits, or actual benefits falling short of expectations, after completion[62] Corporate Governance, Environment and Society This section details changes in the company's directors, supervisors, and senior management, as well as information on profit distribution plans and equity incentive measures Changes in Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the company's directors, supervisors, or senior management - There were no changes in the company's directors, supervisors, or senior management during the reporting period[65] Profit Distribution or Capital Reserve to Share Capital Plan The company's semi-annual report does not include any profit distribution or capital reserve to share capital plan - The proposed semi-annual profit distribution plan or capital reserve to share capital plan is "No," involving no bonus shares, cash dividends, or capital increase from reserves[65] Equity Incentive and Employee Incentive Measures During the reporting period, the company did not disclose or have any subsequent progress regarding equity incentive plans, employee stock ownership plans, or other employee incentive measures - During the reporting period, there was no progress or change in the company's equity incentive plans, employee stock ownership plans, or other employee incentive measures[66] Significant Matters This section covers the fulfillment of commitments, non-operating fund occupation by controlling shareholders, illegal guarantees, integrity status, significant contracts, progress of raised fund utilization, and post-balance sheet events Fulfillment of Commitments The company and its key stakeholders strictly fulfilled all IPO commitments during the reporting period, covering share lock-up, price stabilization, disclosure compliance, and related party matters - The company's controlling shareholders and actual controllers, Zong Yan and Qin Weizhong, and the shareholders they control, committed not to transfer shares within 36 months from the listing date, and set extended lock-up periods and minimum transfer prices not below the offering price if the share price falls below the offering price; all commitments were strictly fulfilled during the reporting period[70][71] - Directors, supervisors, and senior management indirectly holding company shares committed not to transfer shares within 12 months from the listing date, and set extended lock-up periods and minimum transfer prices not below the offering price if the share price falls below the offering price; all commitments were strictly fulfilled during the reporting period[72] - The company, controlling shareholders, directors, and senior management committed to initiating share price stabilization measures, including share repurchases, share increase, and profit distribution, if the company's stock closing price falls below the audited net asset value per share for 20 consecutive trading days within the share price stabilization plan's validity period (three years from listing date); all commitments were strictly fulfilled during the reporting period[74][75][76][77][78][79][80][81][82][83][84] - The company and relevant responsible parties committed to compensating investors for losses or repurchasing new shares if the prospectus contains false records, misleading statements, or major omissions; all commitments were strictly fulfilled during the reporting period[85][86][87][88][89][90][91] - The controlling shareholders and actual controllers committed to avoiding horizontal competition and reducing non-standard related party transactions; all commitments were strictly fulfilled during the reporting period[115][116][117][118] Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties During the reporting period, the company was not subject to non-operating fund occupation by controlling shareholders or other related parties - During the reporting period, the company was not subject to non-operating fund occupation by controlling shareholders or other related parties[123] Illegal Guarantees During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures - During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures[123] Integrity Status of the Company and Controlling Shareholders, Actual Controllers During the reporting period, the company and its controlling shareholders and actual controllers maintained good integrity, with no instances of dishonesty or outstanding debts - During the reporting period, the company and its controlling shareholders and actual controllers had no instances of dishonesty, nor did they fail to fulfill effective court judgments or repay large outstanding debts[124] Significant Contracts and Their Fulfillment In the reporting period, the company's total subsidiary guarantee balance was 244.08 million RMB (10.81% of net assets), including 239.08 million RMB for high debt-to-asset ratio entities, and secured a 2.19 billion RMB China Mobile project Significant Guarantees This section details the company's significant guarantees, including the total amount, its proportion to net assets, and guarantees provided for high debt-to-asset ratio entities Company Guarantee Summary (H1 2025) | Metric | Amount (10,000 RMB) | | :--- | :--- | | Total Guarantees for Subsidiaries Incurred in Current Period | 0 | | Total Guarantees for Subsidiaries Outstanding at Period End (B) | 24,408.35 | | Total Guarantees (A+B) | 24,408.35 | | Total Guarantees as % of Company's Net Assets | 10.81 | | Debt Guarantees Provided Directly or Indirectly for Guaranteed Entities with Debt-to-Asset Ratio Exceeding 70% (D) | 23,908.35 | | Total of Above Three Guarantee Amounts (C+D+E) | 23,908.35 | - The guaranteed companies are currently developing well, and no situations have been found where the company might bear joint and several liability[128] Other Significant Contracts This section highlights other significant contracts, specifically the company's successful bid for a major China Mobile communication engineering construction service project - The company won a bid for China Mobile's 2025-2026 communication engineering construction service (transmission pipeline) centralized procurement project, with a total winning bid amount of 2.19 billion RMB (including tax); relevant contracts have been signed and are being successively fulfilled[129] Progress of Raised Funds Utilization As of period-end, cumulative raised fund investment was 569.05 million RMB (55.06% of total); some projects are delayed due to macroeconomic factors and cautious investment, leading to a 432.84 million RMB reallocation to a China Mobile project and use of idle funds for working capital and cash management Overall Utilization of Raised Funds This section provides an overview of the company's overall utilization of raised funds, including total amounts, cumulative investment, and progress Overall Utilization of Raised Funds (As of Period End) | Metric | Amount (10,000 RMB) | | :--- | :--- | | Total Raised Funds | 110,863.90 | | Net Raised Funds | 103,357.20 | | Total Investment Pledged in Prospectus | 103,357.20 | | Cumulative Raised Funds Invested as of Period End | 56,905.15 | | Cumulative Investment Progress as of Period End (%) | 55.06 | | Amount Invested This Year | 2,681.98 | | Percentage of Total Invested This Year (%) | 2.59 | - The company has reallocated 432.84 million RMB of raised funds (including cumulative idle raised funds' cash management income and interest income) to the new raised fund investment project "China Mobile 2025-2026 Communication Engineering Construction Service Centralized Procurement Project," which was approved by the shareholders' meeting on August 8, 2025[130][136][144] Details of Raised Fund Investment Projects This section provides a detailed breakdown of the company's raised fund investment projects, including planned investment, cumulative investment, and progress Raised Fund Investment Project Status (As of Period End) | Project Name | Planned Total Investment of Raised Funds (10,000 RMB) | Cumulative Raised Funds Invested as of Period End (10,000 RMB) | Cumulative Investment Progress as of Period End (%) | | :--- | :--- | :--- | :--- | | Regional Service Network Construction Project | 40,078.21 | 17,407.39 | 43.43 | | R&D and Training Center Construction Project | 25,071.10 | 3,592.11 | 14.33 | | Information System Upgrade Project | 2,437.75 | 135.51 | 5.56 | | Supplementary Working Capital Project | 35,770.14 | 35,770.14 | 100.00 | - Regional Service Network Construction Project: Progress delay primarily due to macroeconomic conditions, lower-than-expected 5G investment, and changes in the real estate market, leading the company to adopt a cautious approach to long-term asset investment and slow down plans for acquiring office premises[134] - R&D and Training Center Construction Project: Progress behind schedule mainly due to macroeconomic expectations and cyclical fluctuations in the real estate market, causing the company to slow down plans for purchasing land to construct R&D and training center buildings[135] - Information System Upgrade Project: Slow progress because the company's existing information systems have deep interdependencies, and various business segments have customized and personalized demands for information system upgrades, requiring the company to consider comprehensively and implement cautiously[135] Other Uses of Raised Funds During the Reporting Period This section details other uses of raised funds, including temporary replenishment of working capital and cash management activities - On March 13, 2025, the company returned 100 million RMB of idle raised funds to the special raised funds account and, on March 14, 2025, again approved the use of idle raised funds not exceeding **1