永信至诚(688244) - 2025 Q2 - 季度财报

Section I Definitions Definitions of Common Terms This chapter provides definitions of common terms used in the report to ensure consistent understanding of professional terminology, covering company names, related entities, laws, regulations, and core cybersecurity technical concepts - The company's abbreviation "Integrity Tech" refers to Integrity Tech Group Co., Ltd[10] - The reporting period is from January 1, 2025, to June 30, 2025[10] - Core technical concepts include parallel simulation, penetration testing, private cloud, cyber range, and situational awareness[10] Section II Company Profile and Key Financial Indicators I. Company Basic Information This section introduces the basic information of Integrity Tech Group Co., Ltd., including its company name, legal representative, registered and office addresses, company website, and email address - The company's Chinese name is Integrity Tech Group Co., Ltd., abbreviated as Integrity Tech[12] - The legal representative is Cai Jingjing, and the company's registered and office address is at 103, Building 6, No. 9 Fenghao East Road, Haidian District, Beijing[12] - The company's website is http://www.integritytech.com.cn[12](index=12&type=chunk) II. Contact Person and Contact Information This section provides contact information for the company's Board Secretary (domestic representative for information disclosure) and Securities Affairs Representative, facilitating communication for investors and relevant parties - The Board Secretary (domestic representative for information disclosure) is Zhang Heng, and the Securities Affairs Representative is Ding Yifan[13] - The contact number is 010-50866160, and the email address is yxzc@integritytech.com.cn[13] III. Brief Introduction to Changes in Information Disclosure and Document Placement Locations This section explains the company's information disclosure channels and document placement locations for its semi-annual report, ensuring investors can access public company information promptly - The company's selected information disclosure newspapers include "China Securities Journal," "Securities Daily," "Securities Times," and "Shanghai Securities News"[14] - The website address for publishing the semi-annual report is www.sse.com.cn, and the company's semi-annual report is available at the company's Securities Affairs Department[14] IV. Overview of Company Shares/Depositary Receipts This section briefly introduces the company's stock listing status, including stock type, listing exchange and board, stock abbreviation, and code - The company's stock type is A-shares, listed on the STAR Market of the Shanghai Stock Exchange, with the stock abbreviation Integrity Tech and stock code 688244[15] VI. Company's Key Accounting Data and Financial Indicators This section discloses the company's key accounting data and financial indicators for the reporting period, explaining the reasons for changes in some indicators, showing lower-than-expected operating revenue leading to a significant decline in net profit, but a narrowing net cash flow from operating activities (I) Key Accounting Data During this reporting period, the company's operating revenue decreased year-on-year, total profit and net profit attributable to shareholders were both negative and expanded, but net cash flow from operating activities narrowed Key Accounting Data (Jan-Jun 2025 vs. Prior Year Period) | Indicator | Current Reporting Period (Jan-Jun) (CNY) | Prior Year Period (CNY) | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 85,280,070.97 | 100,161,010.72 | -14.86 | | Total Profit | -42,395,983.27 | -21,073,987.53 | Not Applicable | | Net Profit Attributable to Shareholders of Listed Company | -42,052,667.53 | -18,467,087.02 | Not Applicable | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | -45,718,742.27 | -23,578,350.97 | Not Applicable | | Net Cash Flow from Operating Activities | -43,297,439.64 | -67,890,867.49 | Not Applicable | | Period-End Data: | | | | | Net Assets Attributable to Shareholders of Listed Company | 980,669,528.45 | 1,026,520,590.71 | -4.47 | | Total Assets | 1,103,844,829.10 | 1,219,530,171.41 | -9.49 | (II) Key Financial Indicators During this reporting period, the company's basic and diluted earnings per share were negative and decreased year-on-year, the weighted average return on net assets was also negative, and the proportion of R&D investment to operating revenue significantly increased Key Financial Indicators (Jan-Jun 2025 vs. Prior Year Period) | Indicator | Current Reporting Period (Jan-Jun) (CNY/share) | Prior Year Period (CNY/share) | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share | -0.28 | -0.12 | Not Applicable | | Diluted Earnings Per Share | -0.28 | -0.12 | Not Applicable | | Basic Earnings Per Share (Excluding Non-Recurring Gains/Losses) | -0.30 | -0.16 | Not Applicable | | Weighted Average Return on Net Assets (%) | -4.19 | -1.78 | -2.41 | | Weighted Average Return on Net Assets (Excluding Non-Recurring Gains/Losses) (%) | -4.55 | -2.28 | -2.27 | | R&D Investment as % of Operating Revenue | 55.64 | 46.42 | 9.22 | - The decline in total profit, net profit, and earnings per share was mainly due to lower-than-expected operating revenue and increased period expenses[18] - The narrowing of net cash flow from operating activities was primarily due to increased cash received from sales of goods and services and decreased cash paid for purchases of goods and services[19] VIII. Non-Recurring Gains and Losses and Amounts This section lists the company's non-recurring gains and losses and their amounts for the reporting period, primarily including gains/losses from entrusted investments or asset management, government subsidies, and non-current asset disposal gains/losses Non-Recurring Gains and Losses and Amounts | Non-Recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 36,176.57 | | Government Subsidies Included in Current Profit/Loss | 202,257.42 | | Gains/Losses from Entrusted Investments or Asset Management | 3,486,227.60 | | Other Non-Operating Income and Expenses Apart from the Above | -9,754.46 | | Impact of Minority Interests (After Tax) | 48,832.39 | | Total | 3,666,074.74 | IX. Companies with Equity Incentive or Employee Stock Ownership Plans May Choose to Disclose Net Profit After Deducting Share-Based Payment Impact This section discloses the net profit attributable to shareholders of the listed company after deducting the impact of share-based payments, which was negative during the reporting period and showed an expanded loss compared to the prior year period Net Profit After Deducting Share-Based Payment Impact | Indicator | Current Reporting Period (Jan-Jun) (CNY) | Prior Year Period (CNY) | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Share-Based Payment Impact | -40,442,227.69 | -18,467,087.02 | Not Applicable | Section III Management Discussion and Analysis I. Description of the Company's Industry and Main Business During the Reporting Period This section elaborates on the company's leading position in digital security testing and evaluation, its main businesses, products, and services, as well as the macro development overview, policy support, threats, and market opportunities in its industry, analyzing the company's market position in various sub-segments (I) Main Business, Main Products or Services Integrity Tech is a leader in the digital security testing and evaluation sector, focusing on cyber ranges and talent development, offering products and services such as digital wind tunnels and operations, cyber ranges and operations, and security protection and control, aiming to solve security verification, practical capabilities, and proactive protection issues for government and enterprise users in their digital transformation - The company is a leader in the digital security testing and evaluation sector, a leader in cyber ranges and talent development, and a national "Little Giant" enterprise specializing in niche sectors[25] - The company's independently developed core cyber range technology received the First Prize of Beijing Science and Technology Progress Award and the Second Prize of National Science and Technology Progress Award[25] - Main products and services include digital wind tunnels and operations, cyber ranges and operations, and security protection and control[25] (II) Main Business Model The company's profitability primarily comes from selling self-developed digital wind tunnels, cyber ranges, and security protection products and providing services to government and enterprise users, adopting a "standardized R&D + targeted secondary R&D" model, procuring hardware, software, and services, mainly through direct sales supplemented by indirect sales, and serving customers through a "legion-based" management model - Profitability model: Selling self-developed digital wind tunnels, cyber ranges, security protection and control products, and providing corresponding services[28] - R&D model: Adhering to independent R&D, adopting a "standardized R&D + targeted secondary R&D" model, customer-centric, and implementing an IPD development model[29][30] - Sales model: Primarily direct sales, supplemented by indirect sales, serving customers through a "legion-based" management model[34] (III) Analysis of the Company's Industry Position and Changes China's cyber and data security industry continues to develop with national policy support, facing escalating threats from ransomware and specialized attacks, with market size expected to grow. Integrity Tech maintains a leading position in digital security testing and evaluation, cyber ranges, and talent development, and is actively expanding into emerging areas such as AI large model evaluation and industrial security digital wind tunnels - National policies continue to support the healthy development of the industry, with the promulgation of a series of laws and regulations such as the "Cybersecurity Law" and "Data Security Law"[36][37] - The number of ransomware attacks surged, with a 47% increase globally in the first half of 2025, driving sustained demand for "substantive security" from customers[38] - IDC predicts China's cybersecurity market size will grow from $11 billion in 2023 to $17.1 billion in 2028, with a five-year compound annual growth rate of 9.2%[40] - The company leads in the testing and evaluation field, launched the "Digital Wind Tunnel" product system, and won multiple innovation awards[41] - The company holds the number one market share in China's cyber range market (14.3%) and has been ranked first for eight consecutive years in the enterprise-level training service market (13.7%)[42] II. Discussion and Analysis of Operating Conditions During the reporting period, affected by the macro economy, the company's operating revenue decreased by 14.86% year-on-year, and net profit loss expanded by 127.72%. Despite challenges, the company continued to increase R&D investment, build an AI "native security" capability system, expand "digital wind tunnel" application scenarios, and consolidated its leading position in cyber ranges and talent development - In the first half of 2025, the company achieved operating revenue of CNY 85.2801 million, a year-on-year decrease of 14.86%; net profit attributable to shareholders of the listed company was -CNY 42.0527 million, a year-on-year decrease of 127.72%[44] - The "Digital Wind Tunnel" product system continued to gain market recognition, with digital wind tunnel and operations achieving operating revenue of CNY 42.6652 million, a year-on-year increase of 13.49%[44][47] - R&D investment continued to increase, with R&D expenses of CNY 47.4474 million, a year-on-year increase of 2.05%; R&D investment accounted for 55.64% of operating revenue, an increase of 9.22 percentage points year-on-year[44] - The company built an AI "native security" capability system, launched the "Yuanfang" native security large model all-in-one machine, and has helped multiple industries implement AI engineering capabilities[45][46] - The company's cyber range market share continued to rank first domestically, and it has been ranked first in China's enterprise-level training service market for eight consecutive years in the talent development sector[49] III. Analysis of Core Competitiveness During the Reporting Period This section thoroughly analyzes Integrity Tech's core competitiveness in technology, team, product first-mover advantage, ecological synergy, and neutral ecosystem, emphasizing the company's leading edge in hard-tech fields such as cyberspace parallel simulation, offensive and defensive confrontation, digital wind tunnel testing and evaluation, and AI large model security testing and evaluation (I) Core Competitiveness Analysis The company's core competitiveness is multifaceted: it possesses technological advantages in parallel simulation, cyber offensive and defensive, Chunqiu Cloud private cloud, multi-cycle digital wind tunnel testing and evaluation, and adversarial generation-based multi-dimensional large model security testing and evaluation; its core team has long-term deep industry expertise with strong R&D capabilities; its cyber range and digital wind tunnel products have a first-mover advantage; it forms an ecological advantage through industry-academia-research cooperation and business synergy; and it benefits from a neutral ecological advantage as a third-party testing and evaluation institution - Technical advantages: Possesses core technologies such as parallel simulation, cyber offensive and defensive, Chunqiu Cloud private cloud, multi-cycle digital wind tunnel testing and evaluation, and adversarial generation-based multi-dimensional large model security testing and evaluation[51][52][53] - Team advantages: The core team has long been deeply involved in the cyber and data security industry, with 239 R&D personnel, accounting for 56.10% of the total workforce, holding 65 invention patents and 306 software copyrights[54] - Product first-mover advantage: Launched cyber range products in 2015, released the "Digital Wind Tunnel" product system in 2022, and took the lead in creating the "Yuanfang" series of native security large model products and solutions in the first half of 2025[55][56][57] - Synergy advantage: Established industry-academia-research cooperation with multiple universities and institutions, with iChunqiu learning community and event operations collaborating to form an ecosystem for talent selection and technology iteration[58] - Neutral ecological advantage: Leads the digital security testing and evaluation sector from a third-party neutral position, providing independent, professional, and objective testing and evaluation services[59] (III) Core Technologies and R&D Progress The company continues to deeply cultivate core technologies such as cyberspace parallel simulation, cyber offensive and defensive confrontation, multi-cycle digital wind tunnel testing and evaluation, and adversarial generation-based multi-dimensional large model security testing and evaluation. During the reporting period, it released multiple innovative R&D achievements, including the "Yuanfang" native security large model all-in-one machine, rail transit industrial security simulation solution, etc., and continued to increase R&D investment, with R&D expenses accounting for 55.64% of operating revenue - Core technologies include cyberspace parallel simulation technology, cyber offensive and defensive confrontation technology, multi-cycle digital wind tunnel testing and evaluation technology, and adversarial generation-based multi-dimensional large model security testing and evaluation technology[60] - The company's co-declared project, "Key Technologies and System for Ultra-Large Scale Multi-Domain Integrated Federated Cyber Range (Pengcheng Cyber Range)," won the Second Prize of National Science and Technology Progress Award[73] - The company was recognized as a national "Little Giant" enterprise specializing in niche sectors[74] - In the first half of 2025, it released the Yuanfang "Native Security" Large Model All-in-One Platform V1.0, Chunqiu Cloud Cyber Range Rail Transit Industrial Security Simulation Solution V1.0, T&EE Competition Platform V1.0, Chunqiu Cloud AI Cybersecurity Range V1.0, and Industrial Control Experiment Simulation System[75][76][77][78] Intellectual Property (Newly Added During Reporting Period) | Intellectual Property Type | Applications (units) | Grants (units) | | :--- | :--- | :--- | | Invention Patents | 10 | 3 | | Software Copyrights | 6 | 9 | | Other (Copyrights, Trademarks) | 29 | 5 | | Total | 45 | 17 | R&D Investment | Indicator | Current Period (CNY) | Prior Year Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 47,447,354.27 | 46,495,512.53 | 2.05 | | Total R&D Investment | 47,447,354.27 | 46,495,512.53 | 2.05 | | Total R&D Investment as % of Operating Revenue | 55.64 | 46.42 | 9.22 | R&D Projects in Progress (Partial) | No. | Project Name | Estimated Total Investment (CNY 10,000s) | Current Period Investment (CNY 10,000s) | Cumulative Investment (CNY 10,000s) | | :--- | :--- | :--- | :--- | :--- | | 1 | Titan GPU Key Data Cracking Platform | 1,400.00 | 185.86 | 1,337.62 | | 2 | Unified Business Management System | 800.00 | 212.38 | 555.20 | | 3 | Situational Awareness System | 1,650.00 | 639.93 | 1,403.16 | | 9 | Digital Wind Tunnel Testing and Evaluation Platform Asset Full Lifecycle Risk Management R&D Project | 2,000.00 | 946.77 | 1,812.15 | | 10 | Chunqiu AI Evaluation Digital Wind Tunnel Platform | 2,500.00 | 1,482.77 | 1,482.77 | | Total | / | 17,850.00 | 4,744.74 | 12,056.75 | R&D Personnel Information | Indicator | Current Period | Prior Year Period | | :--- | :--- | :--- | | Number of Company R&D Personnel (persons) | 239 | 257 | | R&D Personnel as % of Total Company Staff | 56.10 | 51.71 | | Total R&D Personnel Compensation (CNY 10,000s) | 3,395.96 | 3,603.13 | | Average R&D Personnel Compensation (CNY 10,000s) | 13.75 | 14.47 | | Education Structure: | | | | Master's Degree and Above | 8 persons (3.35%) | | | Bachelor's Degree | 151 persons (63.18%) | | | Junior College and Below | 80 persons (33.47%) | | | Age Structure: | | | | Under 30 years old | 114 persons (47.70%) | | | 30-40 years old | 106 persons (44.35%) | | | 40-50 years old | 17 persons (7.11%) | | | Over 50 years old | 2 persons (0.84%) | | IV. Risk Factors This section details the various risks the company may face in its operations, including performance decline or loss, core competitiveness (technological iteration, talent loss), operations (sales seasonality, market competition), finance (tax incentives, accounts receivable), and industry and macro-environmental risks - Risk of significant performance decline or loss: Net profit loss expanded during the reporting period, affected by macro economy, market demand, technological innovation, and other factors[93] - Core competitiveness risks: Facing technological iteration risks brought by the rapid development of new technologies such as artificial intelligence and quantum computing, as well as the risk of loss of core technical personnel[94][95] - Operational risks: Product sales exhibit seasonality, with a larger proportion of revenue in the second half of the year; market competition is increasingly fierce[96] - Financial risks: Enjoys high-tech enterprise income tax incentives and R&D expense super deduction, which would be affected if policies change or the company no longer meets conditions; accounts receivable are on an upward trend, posing bad debt risks[97] - Industry risks: Government departments account for a high proportion of the customer structure, and their demand is influenced by factors such as informatization investment, security threats, and regulatory requirements, which may lead to demand fluctuations[99] - Macro-environmental risks: Changes in national support policies for cybersecurity enterprises may impact the company's development[100] V. Main Operating Conditions During the Reporting Period This section outlines the company's overall operating performance during the reporting period, provides a detailed analysis of its main business, non-main business, assets and liabilities, and investment status, and discloses the financial situation of its main holding and participating companies - During the reporting period, the company achieved operating revenue of CNY 85.2801 million, a year-on-year decrease of 14.86%; net profit attributable to shareholders of the listed company was -CNY 42.0527 million, with losses increasing by 127.72% year-on-year[101] (I) Main Business Analysis The company's operating revenue decreased by 14.86% year-on-year, mainly due to macro-economic impacts and project delays. Operating costs decreased with revenue, while selling and administrative expenses increased due to market promotion and personnel costs. Financial expenses are not applicable due to reduced interest income, and R&D expenses increased due to higher depreciation and amortization. Net cash flow from operating activities narrowed Financial Statement Related Account Changes Analysis (Current Period vs. Prior Year Period) | Account | Current Period (CNY) | Prior Year Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 85,280,070.97 | 100,161,010.72 | -14.86 | | Operating Cost | 41,352,585.19 | 44,978,533.83 | -8.06 | | Selling Expenses | 30,120,394.52 | 28,238,666.63 | 6.66 | | Administrative Expenses | 17,094,779.39 | 16,645,671.84 | 2.70 | | Financial Expenses | -512,464.60 | -1,402,460.22 | Not Applicable | | R&D Expenses | 47,447,354.27 | 46,495,512.53 | 2.05 | | Net Cash Flow from Operating Activities | -43,297,439.64 | -67,890,867.49 | Not Applicable | | Net Cash Flow from Investing Activities | 52,837,714.37 | -80,050,336.19 | Not Applicable | | Net Cash Flow from Financing Activities | -15,413,420.05 | -46,096,979.10 | Not Applicable | - The decrease in operating revenue was mainly due to factors such as the macro economy, leading to reduced budget allocation by some of the company's customers and delays in project signing, delivery, and acceptance[103] - The narrowing of net cash flow from operating activities was primarily due to increased cash received from sales of goods and services and decreased cash paid for purchases of goods and services[103] (II) Explanation of Significant Changes in Profit Due to Non-Main Business Non-main business significantly impacted profit this period, primarily from investment income and other income such as VAT immediate refund, and these items are sustainable Impact of Non-Main Business on Profit | Item | Amount (CNY) | % of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 2,478,480.88 | -5.85 | Mainly due to income from bank wealth management products received this period | Yes | | Other Income | 4,641,037.29 | -10.95 | Mainly due to VAT immediate refund received this period | Yes | (III) Analysis of Assets and Liabilities At the end of this period, the company's total assets and total liabilities both decreased. Inventory, other current assets, and accounts payable all showed significant reductions, with the decrease in other current assets mainly due to the redemption of matured wealth management products Asset and Liability Status Changes (Current Period End vs. Prior Year End) | Item Name | Current Period End (CNY) | % of Total Assets | Prior Year End (CNY) | % of Total Assets | Change from Prior Year End (%) | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Inventory | 25,086,127.06 | 2.27 | 36,610,458.05 | 3.00 | -31.48 | Mainly due to reduced contract performance costs | | Other Current Assets | 8,484,897.15 | 0.77 | 70,906,208.79 | 5.81 | -88.03 | Mainly due to redemption of wealth management products purchased last year | | Accounts Payable | 95,083,230.73 | 8.61 | 137,900,012.18 | 11.31 | -31.05 | Mainly due to payment of accounts payable from last year | - Overseas assets amounted to CNY 25.4227 million, accounting for 2.30% of total assets[108] (IV) Investment Status Analysis During this period, the company's financial assets measured at fair value primarily consisted of equity investments, while trust products had matured and been redeemed, with no trust product balance at period-end Financial Assets Measured at Fair Value (Period-End) | Asset Category | Beginning Balance (CNY 10,000s) | Amount Purchased This Period (CNY 10,000s) | Amount Sold/Redeemed This Period (CNY 10,000s) | Ending Balance (CNY 10,000s) | | :--- | :--- | :--- | :--- | :--- | | Trust Products | 0.00 | 5,000.00 | 5,000.00 | 0.00 | | Equity Investments | 2,680.00 | 0.00 | 0.00 | 2,680.00 | | Total | 2,680.00 | 5,000.00 | 5,000.00 | 2,680.00 | (VI) Analysis of Major Holding and Participating Companies This section discloses the financial situation of the company's main subsidiary, Beijing Wuyi Jiayu Technology Co., Ltd., which achieved operating revenue of CNY 28.6195 million during the reporting period but recorded negative operating profit and net profit Financial Situation of Major Subsidiary (Beijing Wuyi Jiayu Technology Co., Ltd.) | Company Name | Company Type | Main Business | Registered Capital (CNY 10,000s) | Total Assets (CNY 10,000s) | Net Assets (CNY 10,000s) | Operating Revenue (CNY 10,000s) | Operating Profit (CNY 10,000s) | Net Profit (CNY 10,000s) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Wuyi Jiayu Technology Co., Ltd. | Subsidiary | Technology Development, Technical Services | 19,000.00 | 17,895.92 | 14,599.18 | 2,861.95 | -1,741.89 | -1,738.48 | Section IV Corporate Governance, Environment, and Society II. Profit Distribution or Capital Reserve Conversion Plan During this reporting period, the company's board of directors resolved that there would be "no" profit distribution plan or capital reserve conversion to share capital plan, meaning no profit distribution or capital reserve conversion to share capital will occur - During this semi-annual reporting period, the company has no profit distribution plan or capital reserve conversion to share capital plan[116] III. Information on the Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures and Their Impact During this reporting period, there was no progress or change in the implementation of the equity incentive matters previously disclosed in temporary announcements, and no other new incentive situations were disclosed - There has been no progress or change in the subsequent implementation of equity incentive matters disclosed in temporary announcements[117] Section V Significant Matters I. Fulfillment of Commitments This section details the various commitments made by the company's actual controllers, shareholders, related parties, and the company itself in the context of its initial public offering and equity incentives, including share lock-up, share price stabilization, fraudulent issuance repurchase, compensation liability, dilution of immediate returns, profit distribution policy, regulation of related party transactions, avoidance of horizontal competition, social insurance/housing provident fund, and states that all commitments were timely and strictly fulfilled during the reporting period - Controlling shareholder and actual controller Cai Jingjing and his concerted party Chen Jun committed not to transfer shares within 36 months from the date of the company's listing[120] - The company's directors, supervisors, and senior management committed not to transfer shares within 12 months from the date of the company's listing, and the reduction price shall not be lower than the offering price for two years after the lock-up period expires[124] - The company and its controlling shareholder and actual controller committed to repurchase all new shares and bear legal liabilities if a fraudulent issuance and listing occurs[140] - The company committed that profit distribution may adopt cash, stock, or a combination of both, with cash distribution not less than 10% of the distributable profit for the current year[150] - The controlling shareholder and actual controller committed to avoid and reduce related party transactions, not to use their position and influence to occupy company funds or provide guarantees, and to avoid new horizontal competition[154][156] - All commitments were timely and strictly fulfilled during the reporting period[119] X. Significant Related Party Transactions This section discloses the company's ordinary related party transactions during the reporting period; the company's board of directors has approved an estimated total of CNY 20 million for ordinary related party transactions in 2025 - The company has approved an estimated total of CNY 20 million for ordinary related party transactions in 2025[169] XII. Explanation of Progress in Use of Raised Funds This section details the company's overall use of raised funds, specifics of investment projects, and other uses. As of the end of the reporting period, the cumulative investment progress of raised funds was 79.08%, with some idle raised funds temporarily supplementing working capital, and capital increases and loans provided to wholly-owned subsidiaries to implement investment projects (I) Overall Use of Raised Funds As of the end of the reporting period, the net amount of funds raised from the company's initial public offering was CNY 506.0537 million, with a cumulative investment of CNY 400.1905 million, representing a cumulative investment progress of 79.08% Overall Use of Raised Funds | Indicator | Amount (CNY) | | :--- | :--- | | Total Raised Funds | 575,907,960.94 | | Net Raised Funds | 506,053,665.27 | | Total Committed Investment of Raised Funds in Prospectus or Offering Circular | 847,726,200.00 | | Cumulative Raised Funds Invested as of End of Reporting Period | 400,190,454.90 | | Cumulative Raised Funds Investment Progress as of End of Reporting Period (%) | 79.08 | | Amount Invested This Year | 37,951,905.75 | | % of Amount Invested This Year | 7.50 | (II) Details of Investment Projects The total investment in raised fund projects this period was CNY 37.9519 million, mainly for cyber range and comprehensive verification platform, high-efficiency security service platform R&D and service system construction, and cybersecurity talent training projects. Some projects have been completed, and the remaining funds will permanently supplement working capital Details of Investment Projects (Amount Invested This Year) | Project Name | Planned Total Investment of Raised Funds (1) (CNY) | Amount Invested This Year (CNY) | Cumulative Investment as of End of Reporting Period (CNY) | Investment Progress (%) (3)=(2)/(1) | | :--- | :--- | :--- | :--- | :--- | | Cyber Range and Comprehensive Verification Platform Project Based on Parallel Simulation | 191,284,500.00 | 26,370,134.78 | 139,280,230.58 | 72.81 | | High-Efficiency Security Service Platform R&D and Service System Construction Project Based on Highly Secure and Controllable Technology | 75,575,376.74 | 4,928,284.06 | 54,049,577.19 | 71.52 | | Security Control and Honeypot Research and Development Project | 42,620,357.56 | 0.00 | 33,910,453.80 | 79.56 | | Research Project on Autonomous and Controllable Next-Generation High-Performance Private Cloud Technology and Platform | 52,275,696.00 | 0.00 | 44,154,768.84 | 84.47 | | Cybersecurity Talent Training Project | 54,152,030.64 | 6,653,486.91 | 38,649,720.16 | 71.37 | | Supplement Working Capital | 90,145,704.33 | 0.00 | 90,145,704.33 | 100.00 | | Total | 506,053,665.27 | 37,951,905.75 | 400,190,454.90 | / | - The "Security Control and Honeypot Research and Development Project" and "Research Project on Autonomous and Controllable Next-Generation High-Performance Private Cloud Technology and Platform" were completed in December 2024, with remaining funds totaling CNY 19.1409 million permanently supplementing working capital[175][176] (IV) Other Uses of Raised Funds During the Reporting Period During the reporting period, the company temporarily supplemented working capital with a portion of idle raised funds, with a period-end balance of CNY 81.0143 million. Concurrently, the company increased capital in its wholly-owned subsidiary Wuyi Jiayu by CNY 5 million and provided a loan of CNY 203,426.56 to support the implementation of raised fund projects, and established new special accounts for raised funds - The company used idle raised funds totaling no more than CNY 100 million to temporarily supplement working capital; as of June 30, 2025, the balance was CNY 81.0143 million[178] - The company did not purchase cash management products during the reporting period[180] - The company increased capital in its wholly-owned subsidiary Wuyi Jiayu by CNY 5 million and provided a loan of CNY 203,426.56 to implement the raised fund project "Cybersecurity Talent Training Project"[181][182] Section VI Share Changes and Shareholder Information I. Share Capital Changes During this reporting period, the company's share capital changed due to a capital reserve conversion to share capital plan, increasing the total share capital to 150,961,519 shares, with both restricted and unrestricted circulating shares increasing accordingly 1. Table of Share Changes This period, the company's total shares increased from 102,234,195 shares to 150,961,519 shares, with restricted shares increasing by 25,319,622 shares and unrestricted circulating shares increasing by 23,407,702 shares Table of Share Changes | Share Category | Number Before Change | % Before Change | Increase/Decrease This Change (Capital Reserve Conversion) | Number After Change | % After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 52,749,213 | 51.60 | 25,319,622 | 78,068,835 | 51.71 | | Of which: Shares Held by Domestic Natural Persons | 52,078,950 | 50.94 | 24,997,896 | 77,076,846 | 51.06 | | II. Unrestricted Circulating Shares | 49,484,982 | 48.40 | 23,407,702 | 72,892,684 | 48.29 | | Of which: RMB Ordinary Shares | 49,484,982 | 48.40 | 23,407,702 | 72,892,684 | 48.29 | | III. Total Shares | 102,234,195 | 100.00 | 48,727,324 | 150,961,519 | 100.00 | 2. Explanation of Share Changes On May 20, 2025, the company's annual general meeting approved a plan to convert capital reserves into share capital, distributing 4.8 shares for every 10 shares to all shareholders, resulting in a total increase of 48,727,324 shares and an increase in the company's total share capital - The company implemented the 2024 annual profit distribution and capital reserve conversion to share capital plan, converting capital reserves to distribute 4.8 shares for every 10 shares to all shareholders[187] - A total of 48,727,324 shares were converted, increasing the company's total share capital to 150,961,519 shares[187] - The newly added shares became tradable on June 11, 2025[187] (II) Changes in Restricted Shares During this reporting period, the number of restricted shares held by Cai Jingjing, Chen Jun, and Beijing Xin'an Chunqiu Technology Partnership (Limited Partnership) increased due to capital reserve conversion, but no解除限售 (release from restriction) occurred Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period | Restricted Shares Increased This Period | Restricted Shares at End of Period | Reason for Restriction | Date of Release from Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Cai Jingjing | 35,631,237 | 17,102,994 | 52,734,231 | IPO Restriction | October 19, 2025 | | Chen Jun | 16,447,713 | 7,894,902 | 24,342,615 | IPO Restriction | October 19, 2025 | | Beijing Xin'an Chunqiu Technology Partnership (Limited Partnership) | 670,263 | 321,726 | 991,989 | IPO Restriction | October 19, 2025 | | Total | 52,749,213 | 25,319,622 | 78,068,835 | / | / | II. Shareholder Information This section discloses the total number of shareholders, the top ten shareholders, and the top ten restricted shareholders as of the end of the reporting period, and explains the associated relationships between major shareholders (I) Total Number of Shareholders As of the end of the reporting period, the total number of ordinary shareholders was 6,069 - As of the end of the reporting period, the total number of ordinary shareholders was 6,069[189] (II) Top Ten Shareholders and Top Ten Unrestricted Shareholders as of the End of the Reporting Period As of the end of the reporting period, Cai Jingjing and Chen Jun, as concerted parties, held 34.93% and 16.13% of the company's shares, respectively, making them the company's top two shareholders. Qi'an Venture Capital was the third largest shareholder, holding 8.70% of the shares Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period End | % | Number of Restricted Shares Held | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Cai Jingjing | 52,734,231 | 34.93 | 52,734,231 | Domestic Natural Person | | Chen Jun | 24,342,615 | 16.13 | 24,342,615 | Domestic Natural Person | | Qi'an (Beijing) Investment Management Co., Ltd. - Beijing Qi'an Venture Capital Partnership (Limited Partnership) | 13,129,302 | 8.70 | 0 | Other | | China Construction Bank Co., Ltd. - Boshi Military Industry Theme Stock Fund | 6,144,741 | 4.07 | 0 | Other | | Xu Guoxin | 2,990,627 | 1.98 | 0 | Domestic Natural Person | - Cai Jingjing and Chen Jun are concerted parties; Cai Jingjing directly holds 34.93% of the company's shares, controls 0.66% of the company's shares through Xin'an Chunqiu, and together with Chen Jun, controls Chen Jun's 16.13% of the company's shares through the "Concerted Action Agreement"[193] Top Ten Restricted Shareholders' Shareholding and Restriction Conditions Cai Jingjing, Chen Jun, and Beijing Xin'an Chunqiu Technology Partnership (Limited Partnership) are the company's top three restricted shareholders, whose restricted shares are locked up for 36 months from the listing date and are expected to be tradable on October 19, 2025 Top Ten Restricted Shareholders' Shareholding and Restriction Conditions | No. | Name of Restricted Shareholder | Number of Restricted Shares Held | Tradable Date | Restriction Conditions | | :--- | :--- | :--- | :--- | :--- | | 1 | Cai Jingjing | 52,734,231 | October 19, 2025 | 36 months from listing date | | 2 | Chen Jun | 24,342,615 | October 19, 2025 | 36 months from listing date | | 3 | Beijing Xin'an Chunqiu Technology Partnership (Limited Partnership) | 991,989 | October 19, 2025 | 36 months from listing date | III. Information on Directors, Supervisors, Senior Management, and Core Technical Personnel This section discloses the shareholding changes and equity incentive grants for the company's directors, supervisors, senior management, and core technical personnel, with Cai Jingjing and Chen Jun's shareholdings increasing due to capital reserve conversion, and several senior executives and core technical personnel being granted second-class restricted shares (I) Shareholding Changes of Current and Resigned Directors, Supervisors, Senior Management, and Core Technical Personnel During the Reporting Period During the reporting period, the shareholdings of the company's Chairman Cai Jingjing and Vice Chairman and General Manager Chen Jun significantly increased due to capital reserve conversion Shareholding Changes of Directors, Supervisors, Senior Management, and Core Technical Personnel | Name | Position | Shares Held at Beginning of Period | Shares Held at End of Period | Change in Shares During Reporting Period | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Cai Jingjing | Chairman, Core Technical Personnel | 35,631,237 | 52,734,231 | 17,102,994 | Capital Reserve Conversion | | Chen Jun | Vice Chairman, General Manager, Core Technical Personnel | 16,447,713 | 24,342,615 | 7,894,902 | Capital Reserve Conversion | (II) Equity Incentive Grants to Directors, Supervisors, Senior Management, and Core Technical Personnel During the Reporting Period During the reporting period, several directors, senior management, and core technical personnel were granted second-class restricted shares, with a total of 1.6576 million restricted shares granted at period-end, and no vested or already vested shares this period Second-Class Restricted Stock Grants | Name | Position | Number of Restricted Shares Granted at Beginning of Period (10,000s shares) | Number of Restricted Shares Newly Granted This Period (10,000s shares) | Number of Restricted Shares Granted at End of Period (10,000s shares) | | :--- | :--- | :--- | :--- | :--- | | Zhang Kai | Director, Deputy General Manager, Core Technical Personnel | 29.60 | 0 | 29.60 | | Fu Lei | Deputy General Manager | 29.60 | 0 | 29.60 | | Zhang Li | Deputy General Manager | 17.76 | 0 | 17.76 | | Liu Mingxia | Financial Controller | 17.76 | 0 | 17.76 | | Zhang Heng | Board Secretary | 11.84 | 0 | 11.84 | | Zhang Xuefeng | Core Technical Personnel | 29.60 | 0 | 29.60 | | Zheng Hao | Core Technical Personnel | 29.60 | 0 | 29.60 | | Total | / | 165.76 | 0 | 165.76 | Section VII Bond-Related Information I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments During this reporting period, the company had no outstanding or overdue 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[200] II. Convertible Corporate Bonds During this reporting period, the company had no convertible corporate bonds that were un-converted or converted but not yet completed - The company has no convertible corporate bonds[200] Section VIII Financial Report I. Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[4] II. 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, comprehensively presenting the company's financial position at the end of the reporting period and its operating results, cash flows, and changes in owners' equity during the reporting period Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were CNY 1,103,844,829.10, with total current assets of CNY 860,624,986.19 and total non-current assets of CNY 243,219,842.91. Total liabilities were CNY 125,224,892.25, and total owners' equity was CNY 978,619,936.85 Parent Company Balance Sheet As of June 30, 2025, the company's parent company total assets were CNY 1,261,296,211.07, with total current assets of CNY 784,349,362.68 and total non-current assets of CNY 476,946,848.39. Total liabilities were CNY 221,246,723.26, and total owners' equity was CNY 1,040,049,487.81 Consolidated Income Statement For January-June 2025, the company's consolidated total operating revenue was CNY 85,280,070.97, total operating costs were CNY 135,983,364.94, total profit was -CNY 42,395,983.27, net profit was -CNY 42,591,804.80, and net profit attributable to parent company shareholders was -CNY 42,052,667.53 Parent Company Income Statement For January-June 2025, the company's parent company operating revenue was CNY 57,823,151.03, operating profit was -CNY 19,162,804.94, total profit was -CNY 19,172,559.46, and net profit was -CNY 19,382,281.85 Consolidated Cash Flow Statement For January-June 2025, the company's consolidated net cash flow from operating activities was -CNY 43,297,439.64, net cash flow from investing activities was CNY 52,837,714.37, net cash flow from financing activities was -CNY 15,413,420.05, and the net increase in cash and cash equivalents was -CNY 5,991,027.59 Parent Company Cash Flow Statement For January-June 2025, the company's parent company net cash flow from operating activities was -CNY 9,209,668.29, net cash flow from investing activities was CNY 54,562,635.69, net cash flow from financing activities was -CNY 15,256,067.47, and the net increase in cash and cash equivalents was CNY 30,096,899.93 Consolidated Statement of Changes in Owners' Equity For January-June 2025, the company's consolidated total owners' equity decreased by CNY 46,390,199.53, mainly due to negative comprehensive income and profit distribution, while paid-in capital increased due to capital reserve conversion Parent Company Statement of Changes in Owners' Equity For January-June 2025, the company's parent company total owners' equity decreased by CNY 22,847,604.91, mainly due to negative comprehensive income and profit distribution, while paid-in capital increased due to capital reserve conversion III. Company Basic Information This section introduces Integrity Tech Group Co., Ltd.'s overview, including its establishment date, registration information, registered capital, total shares, and listing status, and clarifies the company's industry and main operating activities - The company was registered with the Beijing Administration for Industry and Commerce on September 2, 2010[233] - The company currently holds a business license with a unified social credit code of 91110108562135265P and a registered capital of CNY 150,961,519.00[233] - The company's shares were listed on the Shanghai Stock Exchange on October 19, 2022, belonging to the software information technology service industry[233] IV. Basis for Preparation of Financial Statements This section states that the company's financial statements are prepared on a going concern basis and confirms that there are no matters or circumstances that raise significant doubt about the company's ability to continue as a going concern for the 12 months from the end of the reporting period - The company's financial statements are prepared on a going concern basis[234] - There are no matters or circumstances that raise significant doubt about the company's ability to continue as a going concern for the 12 months from the end of the reporting period[235] V. Significant Accounting Policies and Accounting Estimates This section details the company's significant accounting policies and estimates for preparing financial statements, including enterprise accounting standards, accounting period, operating cycle, functional currency, materiality criteria, business combinations, consolidated financial statements, joint arrangements, cash and cash equivalents, foreign currency transactions and translation, financial instruments, notes receivable, accounts receivable, other receivables, inventories, contract assets, long-term equity investments, fixed assets, borrowing costs, intangible assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, share-based payments, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases - The company's financial statements comply with enterprise accounting standards and truly and completely reflect its financial position[237] - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, with a short operating cycle, using 12 months as the liquidity classification standard for assets and liabilities[238][239] - The company has formulated specific accounting policies and estimates for transactions or events such as financial instrument impairment, inventory, fixed asset depreciation, intangible assets, and revenue recognition based on its actual production and operation characteristics[236] VI. Taxation This section details the main tax categories and rates for the company and its subsidiaries, including VAT, property tax, urban maintenance and construction tax, education surcharge, local education surcharge, and corporate income tax. It also explains the high-tech enterprise income tax incentives, small and micro-profit enterprise income tax incentives, and software product VAT immediate refund policies enjoyed by the company and some subsidiaries Main Tax Categories and Rates | Tax Category | Taxable Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Revenue from Sales of Goods and Taxable Services | 13%, 6%, Exempt | | VAT (Small-Scale Taxpayer) | Revenue from Sales of Goods and Taxable Services | 3%, 1% | | Property Tax | 1.2% of original value of property after a 30% deduction, or 12% of rental income | 1.2% | | Urban Maintenance and Construction Tax | Actual Amount of Turnover Tax Paid | 7%, 5% | | Education Surcharge | Actual Amount of Turnover Tax Paid | 3% | | Local Education Surcharge | Actual Amount of Turnover Tax Paid | 2% | | Corporate Income Tax | Taxable Income | 25%, 20%, 16.5%, 15%, 8.25% | Taxable Entities with Different Corporate Income Tax Rates | Taxable Entity Name | Income Tax Rate (%) | | :--- | :--- | | The Company | 15 | | Beijing Yongxin Fire Eye Technology Co., Ltd. | 15 | | Wuyi Jiayu | 15 | | Hangzhou Genben Security Technology Co., Ltd. | 15 | | Integrity Tech (Hong Kong) Co., Ltd. | 16.5, 8.25 | | Hong Kong Digital Future International Co., Ltd. | 16.5, 8.25 | | Beijing Jike Dianshi Information Technology Co., Ltd. | 25 | | Beijing Yongxin Zhicheng Information Technology Co., Ltd. | 25 | | Other Taxable Entities Apart from the Above | 20 | - The company, Yongxin Fire Eye, Wuyi Jiayu, and Hangzhou Genben enjoy a 15% preferential income tax rate as high-tech enterprises[315][316] - Some subsidiaries are small and micro-profit enterprises, enjoying a preferential policy of calculating taxable income at 25% and paying corporate income tax at a 20% rate[316] - The company, Yongxin Fire Eye, Wuyi Jiayu, and Hangzhou Genben, as software enterprises, enjoy a VAT immediate refund policy for the portion exceeding a 3% actual tax burden[317] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes to each item in the consolidated financial statements, including monetary funds, notes receivable, accounts receivable, contract assets, other receivables, inventories, other current assets, long-term equity investments, other non-current financial assets, fixed assets, right-of-use assets, intangible assets, long-term deferred expenses, deferred income tax assets/liabilities, other non-current assets, assets with restricted ownership or use rights, short-term borrowings, accounts payable, contract liabilities, employee compensation payable, taxes payable, other payables, non-current liabilities due within one year, other current liabilities, lease liabilities, deferred income, share capital, capital reserves, treasury stock, other comprehensive income, surplus reserves, undistributed profits, operating revenue and costs, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, asset disposal income, credit impairment losses, asset impairment losses, non-operating income, non-operating expenses, income tax expenses, other comprehensive income, cash flow statement items, supplementary cash flow information, notes to owners' equity statement items, foreign currency monetary items, and leases - The period-end balance of monetary funds was CNY 486,523,734.91, of which the total amount deposited overseas was CNY 19,457,094.44[321] - The period-end book value of accounts receivable was CNY 330,058,968.47, with a bad debt provision rate of 17.50%[327][330] - The period-end book value of inventory was CNY 25,086,127.06, mainly comprising raw materials, merchandise inventory, and contract performance costs[359] - Operating revenue for this period was CNY 85,280,070.97, with digital wind tunnel and operations revenue accounting for the highest proportion[432][434] - R&D expenses for this period were CNY 47,447,354.27, mainly consisting of salaries and wages, and depreciation and amortization expenses[439] VIII. R&D Expenses This section details the company's R&D expenses during the reporting period, primarily including salaries and wages, depreciation and amortization, collaborative research expenses, and share-based payments, with all R&D expenses treated as period expenses R&D Expenses by Nature of Expense | Item | Amount Incurred This Period (CNY) | Amount Incurred Last Period (CNY) | | :--- | :--- | :--- | | Salaries and Wages | 33,959,639.03 | 36,031,282.74 | | Depreciation and Amortization | 10,187,162.37 | 8,934,760.02 | | Collaborative Research Expenses | 1,555,849.06 | 483,458.07 | | Share-Based Payment | 579,120.77 | 0.00 | | Host Leasing Fees | 427,665.68 | 245,868.02 | | Local Transportation Expenses | 192,871.77 | 87,831.94 | | Network Communication Fees | 44,534.32 | 66,998.45 | | Office Expenses | 21,722.24 | 42,292.99 | | Business Entertainment Expenses | 12,581.42 | 5,167.20 | | Travel Expenses | 8,815.31 | 8,036.05 | | Other R&D Expenses | 457,392.30 | 589,817.05 | | Total | 47,447,354.27 | 46,495,512.53 | | Of which: Expensed R&D Investment | 47,447,354.27 | 46,495,512.53 | | Capitalized R&D Investment | 0.00 | 0.00 | IX. Changes in Consolidation Scope During this reporting period, the company had no non-same-control business combinations, same-control business combinations, reverse acquisitions, or disposals of subsidiaries leading to loss of control, and thus the consolidation scope remained unchanged - During this reporting period, the company's consolidation scope remained unchanged[476] X. Interests in Other Entities This section discloses the company's interests in subsidiaries and associates; the company includes 14 subsidiaries in its consolidated financial statements and details the main financial information of the important non-wholly-owned subsidiary, Hangzhou Genben - The company includes 14 subsidiaries, such as Wuyi Jiayu, Yongxin Fire Eye, and Jike Dianshi, in its consolidated financial statements[477] - The company holds a 40% stake in both Yongxin Hong Kong and Shuzhi Future, but includes them in the consolidated financial statements by appointing directors to determine their financial and operating decisions[478] Important Non-Wholly-Owned Subsidiary: Hangzhou Genben Security Technology Co., Ltd. | Indicator | Period-End Balance (CNY) | Period-Beginning Balance (CNY) | | :--- | :--- | :--- | | Minority Shareholding (%) | 35.00 | 35.00 | | Profit/Loss Attributable to Minority Shareholders This Period | -539,137.27 | -1,654,648.83 | | Minority Interest Balance at Period-End | -2,049,591.60 | -1,510,454.33 | | Total Assets | 10,206,580.95 | 14,249,904.98 | | Total Liabilities | 12,062,556.96 | 14,565,488.80 | | Operating Revenue | 88,036.82 | 431,378.04 | | Net Profit | -1,540,392.19 | -1,654,648.83 | | Cash Flow from Operating Activities | -3,089,791.19 | 1,663,339.11 | XI. Government Grants This section discloses the government grants recognized by the company at the end of the reporting period based on receivable amounts, liability items involving government grants, and the amount of government grants recognized in current profit or loss Liability Items Involving Government Grants | Financial Statement Item | Beginning Balance (CNY) | Ending Balance (CNY) | Reason for Formation | | :--- | :--- | :--- | :--- | | Deferred Income | 9,323,333.33 | 9,323,333.33 | Income-related government grants | Government Grants Recognized in Current Profit or Loss | Type | Amount Incurred This Period (CNY) | Amount Incurred Last Period (CNY) | | :--- | :--- | :--- | | Asset-Related | 0.00 | 173,500.00 | | Income-Related | 4,641,037.29 | 6,431,940.17 | | Total | 4,641,037.29 | 6,605,440.17 | XII. Risks Related to Financial Instruments This section describes the financial instrument-related risks faced by the company, including credit risk, liquidity risk, and market risk (interest rate risk and foreign exchange risk), and explains the strategies and practices adopted by the company to manage these risks - The company manages credit risk by assessing credit risk, establishing de