春兴精工(002547) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions Important Notice The company's board, senior management, and accounting officer declare the semi-annual report's truthfulness, accuracy, and completeness, noting future plans are not commitments and no dividends or capital increases are planned - The company's board of directors and senior management guarantee the report's truthfulness, accuracy, and completeness[4] - Company head Yuan Jing, chief accounting officer Wu Yongzhong, and head of accounting department Wu Yongzhong declare the financial report is true, accurate, and complete[4] - The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital[5] Table of Contents This section lists the report's nine main chapters and their starting page numbers, covering company operations, finance, governance, and significant matters - The report contains nine main chapters, covering comprehensive information on company operations, finance, governance, and significant matters[7] Definitions This section defines common terms used in the report, including company abbreviations, reporting period, prior year period, and names of major subsidiaries - The reporting period refers to January 1, 2025, to June 30, 2025, and the prior year period refers to January 1, 2024, to June 30, 2024[12] - Major subsidiary abbreviations are listed, including Jinhai Chunxing, Yuansheng Zhihui, and Suzhou Kahn Lian Te[12] Section II Company Profile and Key Financial Indicators I. Company Profile The company, Chunxing Precision Manufacturing, stock code 002547, is listed on the Shenzhen Stock Exchange, with Yuan Jing as legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Chunxing Precision Manufacturing | | Stock Code | 002547 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Suzhou Chunxing Precision Manufacturing Co., Ltd. | | Legal Representative | Yuan Jing | II. Contact Person and Information The company's Board Secretary is Wu Yongzhong, with contact address, phone, and email disclosed in Suzhou Industrial Park Contact Information | Position | Name | Contact Address | Phone | Email | | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Wu Yongzhong | No. 120 Jinling East Road, Weiting Town, Suzhou Industrial Park, Jiangsu Province | 0512-62625328 | cxjg@chunxing-group.com | III. Other Information No changes in the company's registered address, office address, website, email, or information disclosure locations during the reporting period - The company's contact information and information disclosure locations remained unchanged during the reporting period[16][17] IV. Key Accounting Data and Financial Indicators The company's H1 2025 operating revenue同比下降3.00%，net profit attributable to shareholders was negative, down 1.42%，and net cash flow from operating activities significantly decreased by 144.53%. Total assets slightly decreased, and net assets attributable to shareholders turned negative, down 267.69% Key Accounting Data and Financial Indicators (Consolidated Statements) | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 977,350,623.16 | 1,007,542,093.57 | -3.00% | | Net Profit Attributable to Shareholders of Listed Company | -128,978,326.26 | -127,178,355.50 | -1.42% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | -125,344,614.13 | -152,959,613.20 | 18.05% | | Net Cash Flow from Operating Activities | -34,108,469.87 | 76,595,209.54 | -144.53% | | Basic Earnings Per Share (yuan/share) | -0.1143 | -0.1127 | -1.42% | | Indicator | Period-End (yuan) | Prior Year-End (yuan) | Period-End vs. Prior Year-End Change | | Total Assets | 4,892,695,095.41 | 4,900,336,833.07 | -0.16% | | Net Assets Attributable to Shareholders of Listed Company | -81,554,256.52 | 48,634,906.69 | -267.69% | - Due to losses during the reporting period and negative weighted average net assets, the weighted average return on net assets is not applicable[19][20] V. Differences in Accounting Data under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards during the reporting period - The company reported no differences in accounting data under domestic and overseas accounting standards during the reporting period[21][22] VI. Non-Recurring Gains and Losses and Amounts The company's non-recurring gains and losses totaled -3,633,712.13 yuan, primarily from non-current asset disposal, government grants, fair value changes, reversal of impairment provisions, and provisions for pending litigation Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | Explanation | | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets | 800,557.56 | | | Government grants recognized in current profit or loss | 8,514,410.34 | | | Gains or losses from changes in fair value of financial assets and liabilities, and disposal gains or losses | 780,872.64 | | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 15,198,160.54 | | | Gains or losses from contingent events unrelated to normal operating activities | -24,435,609.56 | Provision for pending litigation | | Other non-operating income and expenses apart from the above | -2,151,575.45 | | | Less: Income tax impact | 2,900,260.47 | | | Minority interest impact (after tax) | -559,732.27 | | | Total | -3,633,712.13 | | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor has it classified non-recurring gains and losses as recurring items[25] Section III Management Discussion and Analysis I. Principal Businesses During the Reporting Period The company's main businesses are mobile communication (RF components, precision light metal structures) and automotive parts (precision aluminum alloy structures, sheet metal parts), with stable operating models - Global 5G base station deployment reached 6.579 million units by the end of Q2 2025, a 14% YoY increase, with China accounting for 4.549 million units[27] - The company's mobile communication business provides a full range of RF components, structural parts, and solutions for wireless RF base stations, including antennas, filters, and duplexers[28] - In H1 2025, China's new energy vehicle production and sales reached 6.968 million and 6.937 million units respectively, growing 41.4% and 40.3% YoY, with NEVs accounting for 44.3% of new car sales[28] - The company's automotive parts business includes exhaust gas recirculation system housings, engine side covers, and engine filter bases, and has entered the supply chain of several mainstream domestic new energy vehicle clients, with steady growth in orders and sales revenue[29] - The company's primary operating model is direct sales, with procurement based on production plans; mobile communication business operates on a make-to-order basis, while automotive parts business organizes development and production according to customer demand[30] II. Analysis of Core Competencies The company's core competencies include industry-leading scale, vertical integration, advanced technology with multiple patents and engineering centers, and long-term relationships with key domestic and international clients - The company's communication structural parts and RF device business holds a leading position in the industry, with a vertically integrated, one-stop full business process layout covering die-casting/stamping, CNC precision machining, electroplating, assembly, and debugging[31] - The company and several subsidiaries are recognized as high-tech enterprises, possessing provincial engineering technology centers and enterprise technology centers, with multiple patented technologies in mold design, casting processes, and CNC precision machining[32] - The company maintains long-term stable cooperative relationships with many leading domestic and international clients, which helps sustain revenue and expand market share[33] III. Analysis of Principal Business Operating revenue decreased by 3.00% YoY, but principal business revenue increased by 4.21%, driven by growth in automotive parts and precision aluminum alloy structural parts, while mobile communication RF devices slightly declined. Net cash flow from operating activities significantly decreased due to increased cash payments for goods Key Financial Data YoY Changes | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 977,350,623.16 | 1,007,542,093.57 | -3.00% | | | Operating Cost | 908,066,318.02 | 928,627,615.76 | -2.21% | | | Selling Expenses | 12,484,476.08 | 15,725,488.06 | -20.61% | | | Administrative Expenses | 99,316,053.12 | 105,764,965.96 | -6.10% | | | Financial Expenses | 35,295,656.86 | 34,684,120.84 | 1.76% | | | Income Tax Expense | -17,981,271.00 | -21,243,065.19 | 15.35% | | | R&D Investment | 63,798,520.91 | 59,033,185.15 | 8.07% | | | Net Cash Flow from Operating Activities | -34,108,469.87 | 76,595,209.54 | -144.53% | Primarily due to increased cash payments for goods in the current period | | Net Cash Flow from Investing Activities | -75,538,798.97 | -157,312,901.20 | 51.98% | Primarily due to decreased payments for fixed asset construction and acquisition of subsidiary equity in the current period | | Net Cash Flow from Financing Activities | 94,424,859.33 | 18,605,471.36 | 407.51% | Primarily due to decreased cash payments for debt repayment in the current period | | Net Increase in Cash and Cash Equivalents | -13,619,189.23 | -58,497,749.77 | 76.72% | Primarily due to increased net cash flow from financing activities in the current period | Operating Revenue Composition | Category | Current Reporting Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Period Amount (yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 977,350,623.16 | 100% | 1,007,542,093.57 | 100% | -3.00% | | Principal Business | 899,907,787.63 | 92.08% | 863,519,928.22 | 85.71% | 4.21% | | Other Businesses | 77,442,835.53 | 7.92% | 144,022,165.35 | 14.29% | -46.23% | | Precision Aluminum Alloy Structural Parts | 246,318,737.04 | 25.20% | 218,421,398.19 | 21.68% | 12.77% | | Mobile Communication RF Devices | 213,787,385.06 | 21.87% | 223,644,683.94 | 22.20% | -4.41% | | Automotive Parts | 437,716,630.87 | 44.79% | 407,702,562.12 | 40.47% | 7.36% | | Domestic Revenue | 585,075,483.04 | 59.86% | 638,986,839.54 | 63.42% | -8.44% | | International Revenue | 392,275,140.12 | 40.14% | 368,555,254.03 | 36.58% | 6.44% | Gross Profit Margin by Product/Region | Category | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Profit Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Precision Aluminum Alloy Structural Parts | 246,318,737.04 | 225,099,689.63 | 8.61% | 12.77% | 18.56% | -4.46% | | Mobile Communication RF Devices | 213,787,385.06 | 169,564,372.81 | 20.69% | -4.41% | -1.22% | -2.56% | | Automotive Parts | 437,716,630.87 | 441,851,828.20 | -0.94% | 7.36% | 5.69% | 1.59% | | Domestic | 585,075,483.04 | 564,224,814.60 | 3.56% | -8.44% | -8.32% | -0.12% | | International | 392,275,140.12 | 343,841,503.42 | 12.35% | 6.44% | 9.80% | -2.68% | IV. Analysis of Non-Principal Business Non-principal businesses negatively impacted total profit, mainly due to asset impairment losses and non-operating expenses (litigation provisions), partially offset by government grants and credit impairment reversals, with these items being non-recurring Impact of Non-Principal Business on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -929,281.72 | -0.60% | Primarily long-term equity investment income in the current period | No | | Gains or Losses from Fair Value Changes | 697,250.00 | 0.45% | Primarily fair value change gains from futures in the current period | No | | Asset Impairment | -10,963,522.89 | -7.04% | Primarily provision for inventory depreciation in the current period | No | | Non-Operating Income | 817,399.83 | 0.52% | Primarily from clearing unpayable amounts in the current period | No | | Non-Operating Expenses | 29,806,318.65 | 19.13% | Primarily provision for pending litigation by a subsidiary in the current period | No | | Other Income | 19,083,908.17 | 12.25% | Primarily government grants recognized in the current period | No | | Credit Impairment Losses | 11,996,607.16 | 7.70% | Primarily due to reversal of bad debt provision upon receipt of repayment from Suzhou Kahn Lian Te in the current period | No | V. Analysis of Assets and Liabilities Total assets slightly decreased, and net assets attributable to shareholders turned negative. Significant changes include increases in prepayments, other non-current assets, construction in progress, and long-term borrowings, while notes receivable, financing receivables, and long-term receivables decreased. Liabilities saw increases in contract liabilities, taxes payable, other payables, long-term borrowings, and provisions for litigation Significant Changes in Asset Composition | Item | Period-End Amount (yuan) | Proportion of Total Assets | Prior Year-End Amount (yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 375,204,809.34 | 7.67% | 381,121,364.88 | 7.78% | -0.11% | | | Accounts Receivable | 595,799,850.68 | 12.18% | 660,313,627.23 | 13.47% | -1.29% | | | Inventories | 461,832,855.41 | 9.44% | 448,855,560.23 | 9.16% | 0.28% | | | Prepayments | 95,043,173.57 | 1.94% | 24,175,976.64 | 0.49% | 1.45% | Primarily due to increased prepayments for goods in the current period | | Long-Term Receivables | 6,666,666.67 | 0.14% | 57,058,166.67 | 1.16% | -1.02% | Primarily due to reclassification of long-term receivables to non-current assets due within one year | | Other Non-Current Assets | 112,728,557.98 | 2.30% | 61,858,979.69 | 1.26% | 1.04% | Primarily due to increased prepayments for engineering equipment in the current period | | Construction in Progress | 315,745,858.47 | 6.45% | 294,503,649.77 | 6.01% | 0.44% | | | Short-Term Borrowings | 1,687,065,194.95 | 34.48% | 1,763,352,900.05 | 35.98% | -1.50% | | | Contract Liabilities | 16,182,866.10 | 0.33% | 5,249,274.35 | 0.11% | 0.22% | Primarily due to increased prepayments for goods in the current period | | Taxes Payable | 26,328,237.81 | 0.54% | 18,670,831.29 | 0.38% | 0.16% | Primarily due to increased property and land use taxes payable but not yet paid in the current period | | Other Payables | 226,528,892.34 | 4.63% | 116,730,920.09 | 2.38% | 2.25% | Primarily due to increased non-related party payables in the current period | | Long-Term Borrowings | 310,201,459.73 | 6.34% | 176,621,105.46 | 3.60% | 2.74% | Primarily due to two new long-term borrowings in the current period | | Provisions | 31,048,412.96 | 0.63% | 6,117,884.42 | 0.12% | 0.51% | Primarily due to increased provisions for litigation by a subsidiary in the current period | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (yuan) | Fair Value Change Gains/Losses in Current Period (yuan) | Purchases in Current Period (yuan) | Sales in Current Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 0 | 0 | 8,000,000.00 | 2,000,000.00 | 6,000,000.00 | | Derivative Financial Assets | 3,611,061.12 | 697,250.00 | 2,000,000.00 | 6,116,868.94 | 191,442.18 | | Other Equity Instrument Investments | 50,000,093.20 | 0 | 0 | 0 | 50,000,093.20 | | Total | 53,611,154.32 | 697,250.00 | 10,000,000.00 | 8,116,868.94 | 56,191,535.38 | Restricted Asset Status | Item | Period-End Book Value (yuan) | Type of Restriction | Restriction Details | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 349,725,996.19 | Pledge, Guarantee | Pledged time deposits, bank acceptance bill deposits, letter of credit deposits, frozen funds, long-dormant accounts | | Fixed Assets | 807,332,554.45 | Mortgage | Mortgaged for borrowings | | Intangible Assets | 110,766,803.28 | Mortgage | Mortgaged for borrowings | | Accounts Receivable | 98,421,422.97 | Pledge | Pledged accounts receivable | | Non-Current Assets Due Within One Year | 399,686,202.66 | Guarantee | Sale-leaseback guarantee deposit | VI. Analysis of Investment Status Total investment decreased by 15.27% YoY. The company's main financial asset investments include futures hedging to mitigate raw material price volatility, with a small profit from futures delivery this period. No significant equity, non-equity, securities, or speculative derivative investments, nor use of raised funds Investment Amount During the Reporting Period | Indicator | Amount (yuan) | | :--- | :--- | | Investment Amount in Current Period | 157,064,109.88 | | Investment Amount in Prior Year Period | 185,371,172.79 | | Change Rate | -15.27% | - The company had no securities investments, significant equity investments, significant non-equity investments, or speculative derivative investments during the reporting period[50][53] - The company conducted futures hedging to mitigate raw material price fluctuations, generating a profit of 83,600 yuan from futures delivery in the current period, effectively reducing the impact of raw material price volatility on product costs[51] VII. Disposal of Significant Assets and Equity The company did not dispose of any significant assets or equity during the reporting period - The company did not dispose of significant assets during the reporting period[55] - The company did not dispose of significant equity during the reporting period[56] VIII. Analysis of Major Holding and Participating Companies Major subsidiaries Jinhai Chunxing Precision Manufacturing Co., Ltd. and Xianyou Yuansheng Zhihui Technology Co., Ltd. both reported losses. Jinhai Chunxing's loss was due to high initial investment and capacity ramp-up in NEV parts, while Yuansheng Zhihui's continued losses were due to intense competition in consumer electronics and stalled new business, with its bank accounts frozen Financial Status of Major Subsidiaries | Company Name | Company Type | Registered Capital (RMB 10,000) | Total Assets (RMB 10,000) | Net Assets (RMB 10,000) | Operating Revenue (RMB 10,000) | Operating Profit (RMB 10,000) | Net Profit (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jinhai Chunxing Precision Manufacturing Co., Ltd. | Subsidiary | 25,000 | 160,517.37 | 6,962.51 | 68,582.60 | -6,097.62 | -4,993.81 | | Xianyou Yuansheng Zhihui Technology Co., Ltd. | Subsidiary | 25,000 | 131,749.76 | 34,847.11 | 231.29 | -3,611.91 | -4,100.99 | | Huizhou Chunxing Precision Manufacturing Co., Ltd. | Subsidiary | 60,000 | 11,025.94 | 36,406.67 | 0.00 | 490.28 | -1,610.60 | - Jinhai Chunxing's new energy vehicle parts business is in the capacity ramp-up phase, with significant initial investment and unachieved economies of scale, leading to losses[58] - Yuansheng Zhihui continues to incur losses due to intense competition and low product profit margins in the consumer electronics industry, coupled with the failure to successfully launch new businesses, resulting in 6.0307 million yuan of its bank accounts being judicially frozen[59] - The company deregistered its wholly-owned subsidiary Wuxi Xingdi Technology Co., Ltd. during the reporting period, which had no significant impact on overall production, operations, or performance[58] IX. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[60] X. Risks Faced by the Company and Countermeasures The company faces nine major risks: intensified industry competition, customer concentration, stricter environmental policies, exchange rate fluctuations, internal management issues, negative net assets, liquidity risks, Yuansheng Zhihui's sale-leaseback and repurchase issues, and control stability. The company has implemented various countermeasures, including R&D investment, customer expansion, environmental management, forward foreign exchange, internal management optimization, profitability improvement, accounts receivable management, asset disposal, and litigation task forces - The company faces risks including intensified industry competition, rapid technological updates, high customer concentration, stricter environmental policies, exchange rate fluctuations, internal management, negative net assets, liquidity, Yuansheng Zhihui's sale-leaseback and repurchase issues, and control stability[60][61][62][63][64][66] - As of June 30, 2025, the company's net assets attributable to the parent company were -81.5543 million yuan, posing a risk of being subject to delisting risk warnings[62] - The company's asset-liability ratio is 101.36%, with current liabilities accounting for 89.41% of total liabilities, indicating liquidity risk, and 8.2923 million yuan of its bank accounts are judicially frozen[63] - Controlling subsidiary Yuansheng Zhihui failed to repurchase land use rights and buildings as agreed and faces arbitration, which may trigger the company's counter-guarantee liability and significantly impact performance[64][65][66] - The controlling shareholder Mr. Sun Jiexiao's partial shares were judicially auctioned and failed to sell, with subsequent judicial procedures uncertain, potentially affecting the company's control stability[66] XI. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system or disclosed a valuation enhancement plan - The company has not formulated a market value management system, nor has it disclosed a valuation enhancement plan[68] XII. Implementation of "Quality and Return Dual Improvement" Action Plan The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan - The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan[68] Section IV Corporate Governance, Environment, and Society I. Changes in Directors and Senior Management During the reporting period, Director, Deputy General Manager, and CFO Dong Zuotian resigned for personal reasons, Li Fang was elected as an employee representative director, and Zhang Weimin was appointed Board Secretary Changes in Directors and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Dong Zuotian | Director, Deputy General Manager, CFO | Resignation | May 30, 2025 | Personal reasons | | Li Fang | Employee Representative Director | Election | June 06, 2025 | Job transfer | | Zhang Weimin | Board Secretary | Appointment | March 18, 2025 | Job transfer | II. Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the semi-annual period - The company plans no profit distribution or capital reserve conversion to share capital for the semi-annual period[70] III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[71] IV. Environmental Information Disclosure The company and its major subsidiary, Jinhai Chunxing Precision Manufacturing Co., Ltd., are included in the list of enterprises required to disclose environmental information, with reports available on the Anhui Provincial Department of Ecology and Environment website - The company and its subsidiary Jinhai Chunxing Precision Manufacturing Co., Ltd. are included in the list of enterprises required to disclose environmental information by law[72] - Jinhai Chunxing Precision Manufacturing Co., Ltd.'s environmental information disclosure report can be found on the website of the Anhui Provincial Department of Ecology and Environment[72] V. Social Responsibility The company protects shareholder rights through governance and disclosure, prioritizes employee welfare with training and development, fosters win-win supplier relationships, and implements ISO14001 environmental management through innovation and pollution control - The company effectively protects the rights and interests of all shareholders by optimizing governance, improving systems, and fulfilling information disclosure obligations[73] - The company adheres to a "people-oriented" approach, complies with labor laws and regulations, provides training and development opportunities, and enhances cohesion through employee activities[73] - The company aims for win-win cooperation, improves procurement processes, strictly fulfills contracts, and protects the legitimate rights and interests of suppliers[74] - The company carries out environmental protection work through technological innovation, lean management, and the construction of pollution control facilities, in accordance with ISO14001 environmental management system standards[74] Section V Significant Matters I. Commitments Fulfilled and Overdue Unfulfilled by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period The company's controlling shareholder Sun Jiexiao and related party Suzhou Kahn Lian Te's commitments regarding equity transfer payments and intercompany receivables remain unfulfilled as of the reporting period end Overdue Unfulfilled Commitments | Commitment Reason | Promisor | Commitment Type | Commitment Content | Commitment Date | Commitment Period | Fulfillment Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Other Commitments | Suzhou Kahn Lian Te, Sun Jiexiao | Other Commitments | Mr. Sun Jiexiao and the debtor to complete payment of remaining equity transfer funds and related intercompany receivables by December 31, 2023 | April 25, 2023 | December 31, 2023 | Not yet fulfilled | - The equity transfer payments and intercompany receivables owed to the company by Suzhou Kahn Lian Te and Sun Jiexiao have not yet been fulfilled; specific reasons and next steps are detailed in "XIII. Explanation of Other Significant Matters" in this report[76] II. Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties The company reported no non-operating funds occupied by controlling shareholders or other related parties during the reporting period - The company reported no non-operating funds occupied by controlling shareholders or other related parties during the reporting period[78] III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[79] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual financial report was unaudited[80] V. Board of Directors' and Supervisory Board's Explanation on "Non-Standard Audit Report" for the Current Period The company reported no "non-standard audit report" issued by the accounting firm during the reporting period - The company reported no "non-standard audit report" issued by the accounting firm during the reporting period[81] VI. Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year Zhongxinghua Certified Public Accountants issued an unqualified audit opinion with an emphasis of matter paragraph for the company's 2024 annual financial statements, which the Board and Supervisory Board have specifically addressed - Zhongxinghua Certified Public Accountants issued an unqualified audit opinion with an emphasis of matter paragraph for the company's 2024 annual financial statements[81] - The company's Board of Directors and Supervisory Board have provided a specific explanation regarding the emphasis of matter paragraph[81] VII. Bankruptcy Reorganization Matters The company had no bankruptcy reorganization matters during the reporting period - The company had no bankruptcy reorganization matters during the reporting period[82] VIII. Litigation Matters The company is involved in multiple significant litigations and arbitrations, including a completed property rights dispute, a first-instance victory in an equity transfer payment lawsuit against Suzhou Kahn Lian Te (with execution uncertainty), ongoing contract disputes with Chongqing Xinrunxing (provision of 21 million yuan), ongoing arbitration with Xianyou Dingsheng Investment regarding rent/taxes (provision of 3.42 million yuan), ongoing equity transfer dispute with Fuzhou Oriental Equipment Technology, and ongoing arbitration with Xianyou Dingsheng Investment regarding Yuansheng Zhihui's industrial park repurchase. Other minor litigations are also ongoing or concluded Significant Litigation and Arbitration Matters | Basic Information of Litigation (Arbitration) | Amount Involved (RMB 10,000) | Provision for Contingent Liability | Litigation (Arbitration) Progress | Outcome and Impact of Litigation (Arbitration) | | :--- | :--- | :--- | :--- | :--- | | Huizhou Andong Hardware Plastic Electronics Co., Ltd. vs. Suzhou Chunxing Precision Manufacturing Co., Ltd. and Huizhou Chunxing Precision Manufacturing Co., Ltd. for property rights protection dispute | 6,182.79 | No | Concluded | Fully executed | | Company vs. Suzhou Industrial Park Kahn Lian Te Technology Co., Ltd. and Mr. Sun Jiexiao for outstanding equity transfer payments | 11,553.93 | No | First-instance judgment, subsequent progress and execution status are uncertain | First-instance judgment ordered defendant Suzhou Kahn Lian Te to pay equity transfer funds of 108 million yuan plus interest, with Sun Jiexiao bearing joint and several liability | | Chongqing Xinrunxing Technology Co., Ltd. vs. Huizhou Chunxing Precision Manufacturing Co., Ltd. for sales contract dispute | 3,800 | Yes (2,100.88 million yuan) | Ongoing | | | Xianyou Dingsheng Investment Co., Ltd. applied for arbitration against Yuansheng Zhihui regarding rent, land use tax, and property tax to Fuzhou Arbitration Commission | 4,589.05 | Yes (342.68 million yuan) | Ongoing | | | Company vs. Fuzhou Oriental Equipment Technology Co., Ltd. for equity transfer dispute | 5,607.13 | No | Ongoing | | | Xianyou Dingsheng Investment Co., Ltd. applied for arbitration against Yuansheng Zhihui regarding the repurchase of Yuansheng Zhihui Industrial Park to Fuzhou Arbitration Commission | 80,600 | No | Ongoing | | Other Litigation Matters | Basic Information of Litigation (Arbitration) | Amount Involved (RMB 10,000) | Provision for Contingent Liability | Litigation (Arbitration) Progress | Outcome and Impact of Litigation (Arbitration) | | :--- | :--- | :--- | :--- | :--- | | Litigations initiated by the company as plaintiff before the reporting period, not yet concluded | 14,018.27 | No | 2 cases ongoing | No significant impact on the company | | Litigations initiated against the company as defendant before the reporting period, not yet concluded | 3,685.58 | Yes (2.58 million yuan provided in current period) | 2 cases ongoing | No significant impact on the company | | New litigations initiated by the company as plaintiff during the reporting period | 2,910.55 | No | 6 cases ongoing | No significant impact on the company | | New litigations initiated against the company as defendant during the reporting period | 775.03 | No | 4 cases ongoing | No significant impact on the company | IX. Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[88] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller As of the reporting period end, Suzhou Kahn Lian Te and Huizhou Zehong Technology owe the company a total of 397.3755 million yuan, with controlling shareholder Sun Jiexiao providing joint liability guarantee. Sun Jiexiao is involved in multiple lawsuits for contract and equity transfer disputes, leading to judicial freezing and rotation freezing of his shares, with some shares failing judicial auction. The company is unaware of other significant overdue debts or defaults by Sun Jiexiao - As of the end of the reporting period, Suzhou Kahn Lian Te still owes the company 316.45 million yuan in equity transfer payments, and Huizhou Zehong Technology owes 80.9255 million yuan in business intercompany receivables, totaling 397.3755 million yuan, with cumulative bad debt provisions of 343.3084 million yuan[89][179][721] - Mr. Sun Jiexiao is involved in multiple lawsuits concerning contract disputes and equity transfer disputes, with significant amounts involved, leading to judicial freezing and rotation freezing of his shares in the company[90][91] - Mr. Sun Jiexiao's partial shares (154,199,995 shares and 15,535,008 shares) failed judicial auction in July 2025, and subsequent judicial procedures remain uncertain[92] XI. Significant Related Party Transactions The company had no related party transactions concerning daily operations, asset/equity acquisition/disposal, joint investments, related party debt, or financial services with related finance companies. The company accepted gratuitous guarantees from controlling shareholder Sun Jiexiao and his concerted action party Yuan Jing, with an estimated guarantee limit of 2.3 billion yuan - The company had no related party transactions related to daily operations, asset or equity acquisition/disposal, joint external investments, related party debt, or transactions with related finance companies during the reporting period[93][94][95][96][97][98] - The company accepted gratuitous guarantees from controlling shareholder and actual controller Mr. Sun Jiexiao and his concerted action party Ms. Yuan Jing for the company's and its subsidiaries' financing, with an estimated guarantee limit not exceeding 2.3 billion yuan for 2025[99] XII. Significant Contracts and Their Performance The company had no entrustment, contracting, leasing, or other significant contracts. It has multiple external and subsidiary guarantees, with a total external guarantee balance of 1,305.6146 million yuan and subsidiary guarantee balance of 923.5179 million yuan, representing -2,938.27% of the company's net assets (due to negative net assets). Guarantees for entities with an asset-liability ratio exceeding 70% totaled 1,103.2025 million yuan - The company had no entrustment, contracting, leasing, or other significant contracts during the reporting period[100][101][102][116] External Guarantees by the Company and its Subsidiaries | Guarantor Name | Guarantee Limit (RMB 10,000) | Actual Guarantee Amount (RMB 10,000) | Guarantee Type | Fulfilled | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | | Xianyou Xiancai State-owned Assets Investment and Operation Co., Ltd. | 80,000 | 40,000 | Joint and several liability guarantee | No | No | | Xianyou Xiancai State-owned Assets Investment and Operation Co., Ltd. | 89,600 | 84,126 | Joint and several liability guarantee | No | No | | Anhui Jinyuan Asset Operation Management Co., Ltd. | 1,000 | 1,000 | Joint and several liability guarantee | Yes | No | | Anhui Jinyuan Asset Operation Management Co., Ltd. | 2,300 | 2,300 | Joint and several liability guarantee | No | No | | Anhui Jinyuan Asset Operation Management Co., Ltd. | 1,000 | 600 | Joint and several liability guarantee | No | No | | Wuhu Jinfan Financing Guarantee Co., Ltd. | 2,000 | 1,000 | Joint and several liability guarantee | Yes | No | | Xuancheng Kaisheng Financing Guarantee Co., Ltd. | 500 | 500 | Joint and several liability guarantee | Yes | No | | Xuancheng Kaisheng Financing Guarantee Co., Ltd. | 1,000 | 1,000 | Joint and several liability guarantee | No | No | | Total | 195,900 | 130,561.46 | | | | Guarantees Provided by the Company for its Subsidiaries | Guarantor Name | Guarantee Limit (RMB 10,000) | Actual Guarantee Amount (RMB 10,000) | Guarantee Type | Fulfilled | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | | Mait Communication Equipment (Suzhou) Co., Ltd. | 90,000 | 2,900 | Joint and several liability guarantee | No | No | | Jinhai Chunxing Precision Manufacturing Co., Ltd. | 20,000 | 1,336.86 | Joint and several liability guarantee | No | No | | Chunxing Precision Manufacturing (Wuhu Fanchang) Co., Ltd. | 3,000 | 1,000 | Joint and several liability guarantee | No | No | | Shenzhen Fuchang Electronic Technology Co., Ltd. | 16,000 | 10,000 | Pledge | No | No | | Total | 218,460.44 | 92,351.79 | | | | - As of the end of the reporting period, the company's net assets were negative, and the actual total guarantee amount accounted for -2,938.27% of the company's net assets[113][114] - The balance of guarantees provided for shareholders, actual controllers, and their related parties was 15.3546 million yuan[114] - The balance of debt guarantees provided directly or indirectly for guaranteed entities with an asset-liability ratio exceeding 70% was 1,103.2025 million yuan[114] XIII. Explanation of Other Significant Matters The company's controlling shareholder and related parties have outstanding equity transfer payments and intercompany receivables totaling 397.3755 million yuan, with a 108 million yuan equity transfer lawsuit won in the first instance, but execution remains uncertain. Controlling subsidiary Yuansheng Zhihui is involved in real estate sale-leaseback, repurchase, and guarantee matters, failing to repurchase land/buildings as agreed and facing arbitration, potentially triggering the company's counter-guarantee liability and significantly impacting performance - As of June 30, 2025, Suzhou Kahn Lian Te still owes the company 316.45 million yuan in equity transfer payments, and Huizhou Zehong Technology owes 80.9255 million yuan in business intercompany receivables, totaling 397.3755 million yuan, with cumulative bad debt provisions of 343.3084 million yuan[179][721] - The company filed a lawsuit for 108 million yuan in equity transfer payments and won in the first instance in August 2025, with the judgment ordering defendant Suzhou Kahn Lian Te to pay the amount plus interest, and Sun Jiexiao to bear joint and several liability, but subsequent execution remains uncertain[122][179][722] - Controlling subsidiary Yuansheng Zhihui failed to repurchase the industrial park's land use rights and buildings by the agreed date of July 13, 2025, and faces arbitration from Dingsheng Investment, which may trigger the company's counter-guarantee liability, involving repurchase funds of 806 million yuan and rent/taxes[124][125][126][175][694][695] - Yuansheng Zhihui has made provisions for the corresponding repurchase funds, rent, land use tax, and property tax in its financial statements, but has not yet received the 399 million yuan deposit[125][695] XIV. Significant Matters of Company Subsidiaries The company had no other significant subsidiary matters during the reporting period - The company had no other significant subsidiary matters during the reporting period[127] Section VI Share Changes and Shareholder Information I. Share Change Status During the reporting period, the company's total share capital, restricted shares, and unrestricted shares remained unchanged. No reasons for changes, approvals, transfers, share repurchases, or progress on repurchase implementation Share Change Status | Share Type | Number Before Change (shares) | Proportion Before Change | Increase/Decrease in Current Change (＋,－) | Number After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 23,250,002 | 2.06% | 0 | 23,250,002 | 2.06% | | II. Unrestricted Shares | 1,104,807,166 | 97.94% | 0 | 1,104,807,166 | 97.94% | | III. Total Shares | 1,128,057,168 | 100.00% | 0 | 1,128,057,168 | 100.00% | - The company's total share capital, restricted shares, and unrestricted shares remained unchanged during the reporting period[130][131] II. Securities Issuance and Listing The company had no securities issuance or listing during the reporting period - The company had no securities issuance or listing during the reporting period[131] III. Number of Shareholders and Shareholding Status As of the reporting period end, the company had 155,893 common shareholders. Controlling shareholder Sun Jiexiao holds 26.91%, with most shares pledged, marked, or frozen. Chairman Yuan Jing holds 2.75%, with some shares pledged. Sun Jiexiao and Yuan Jing are a married couple and concerted action parties - The total number of common shareholders at the end of the reporting period was 155,893[132] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Number (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sun Jiexiao | Domestic Natural Person | 26.91% | 303,560,000 | 0 | 303,560,000 | Pledged | 288,024,992 | | | | | | | | Marked | 288,024,992 | | | | | | | | Frozen | 15,535,008 | | Yuan Jing | Domestic Natural Person | 2.75% | 31,000,003 | 23,250,002 | 7,750,001 | Pledged | 31,000,000 | | Jing Jie | Domestic Natural Person | 0.39% | 4,403,100 | 0 | 4,403,100 | Not Applicable | 0 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.37% | 4,229,940 | 0 | 4,229,940 | Not Applicable | 0 | | BARCLAYS BANK PLC | Overseas Legal Person | 0.32% | 3,562,400 | 0 | 3,562,400 | Not Applicable | 0 | - Mr. Sun Jiexiao is the actual controller of the company, and Ms. Yuan Jing is the company's chairman; they are a married couple, indicating an associated relationship or concerted action[133] - 303,090,400 shares held by Mr. Sun Jiexiao are subject to rotation freezing[134] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period[135] V. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[136] - The company's actual controller remained unchanged during the reporting period[136] VI. Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[137] Section VII Bond Information Bond Information The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[139] Section VIII Financial Report I. Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[141] II. Financial Statements This section presents the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity. Consolidated statements show negative net assets, increased current liabilities and long-term borrowings, and negative net cash flow from operating activities. Parent company statements show positive net profit but large amounts of other receivables and long-term equity investments Consolidated Balance Sheet Key Data | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 4,892,695,095.41 | 4,900,336,833.07 | | Total Liabilities | 4,959,158,190.17 | 4,827,743,075.56 | | Total Owners' Equity Attributable to Parent Company | -81,554,256.52 | 48,634,906.69 | | Total Owners' Equity | -66,463,094.76 | 72,593,757.51 | | Short-Term Borrowings | 1,687,065,194.95 | 1,763,352,900.05 | | Long-Term Borrowings | 310,201,459.73 | 176,621,105.46 | Consolidated Income Statement Key Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 977,350,623.16 | 1,007,542,093.57 | | Operating Profit | -126,838,367.50 | -151,386,543.38 | | Total Profit | -155,827,286.32 | -154,084,286.97 | | Net Profit | -137,846,015.32 | -132,841,221.78 | | Net Profit Attributable to Parent Company Shareholders | -128,978,326.26 | -127,178,355.50 | | Basic Earnings Per Share | -0.1143 | -0.1127 | Consolidated Cash Flow Statement Key Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -34,108,469.87 | 76,595,209.54 | | Net Cash Flow from Investing Activities | -75,538,798.97 | -157,312,901.20 | | Net Cash Flow from Financing Activities | 94,424,859.33 | 18,605,471.36 | | Net Increase in Cash and Cash Equivalents | -13,619,189.23 | -58,497,749.77 | III. Company Basic Information Suzhou Chunxing Precision Manufacturing Co., Ltd. was established on December 19, 2008, with a registered capital of 1,128.057168 million yuan, and Yuan Jing as its legal representative. Its business includes R&D, manufacturing, sales, and import/export of communication system equipment, automotive precision aluminum alloy components, and other precision parts, as well as property leasing - The company's registered capital is RMB 1,128.057168 million, and its legal representative is Yuan Jing[171] - The company's business scope includes R&D, manufacturing, sales, and services for communication system equipment, automotive precision aluminum alloy components, and various precision parts, as well as import/export business and self-owned property leasing[171] IV. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance, using the accrual basis of accounting and historical cost measurement, except for specific financial instruments - The company's financial statements are prepared on a going concern basis, in accordance with the Accounting Standards for Business Enterprises and relevant regulations[172] - Accounting is performed on an accrual basis, and all items are measured at historical cost, except for certain financial instruments[172] - The company's management believes the company has the ability to continue as a going concern for at least 12 months from the end of the reporting period[173] V. Significant Accounting Policies and Accounting Estimates This section details the company's declarations of compliance with accounting standards, accounting period, operating cycle, functional currency, materiality, business combinations, consolidated financial statements, joint arrangements, cash and cash equivalents, foreign currency transactions, financial instruments, various receivables, inventories, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, revenue recognition, contract costs, government grants, deferred tax assets/liabilities, and leases. No significant changes in accounting policies or estimates during the reporting period - The company's financial statements comply with the requirements of the Accounting Standards for Business Enterprises, accurately and completely reflecting its financial position and operating results[175] - The company's accounting year adopts the calendar year, with 12 months as an operating cycle[176][177] - The company and its domestic subsidiaries use RMB as their functional currency, while overseas subsidiaries determine their functional currency based on their operating environment[178] - The company classifies, recognizes, and measures financial assets and financial liabilities, and recognizes loss provisions based on expected credit losses[205][207][215] - The company recognizes revenue when performance obligations are fulfilled, meaning the customer obtains control of the related goods, using different recognition methods for domestic and export sales[281][282] - The company applies simplified treatment for short-term leases and leases of low-value assets, not recognizing right-of-use assets and lease liabilities[305] - There were no significant changes in the company's accounting policies and accounting estimates during the reporting period[311] VI. Taxation This section discloses the company's main tax categories and rates, including VAT, urban maintenance and construction tax, corporate income tax, and education surcharge. The company and several subsidiaries enjoy high-tech enterprise tax incentives at a 15% income tax rate. Some subsidiaries also benefit from small and micro-enterprise income tax preferential policies or VAT immediate refund policies Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Output tax - deductible input tax | 13%, 9%, 6%, 23%, 5%/2% | | Urban Maintenance and Construction Tax | Amount of turnover tax paid | 7% | | Corporate Income Tax | Taxable income | 25%, 20%, 15% | | Education Surcharge | Amount of turnover tax paid | 5% | Taxpayers with Different Corporate Income Tax Rates | Taxpayer Name | Income Tax Rate | | :--- | :--- | | Suzhou Chunxing Precision Manufacturing Co., Ltd. | 15% | | Mait Communication Equipment (Suzhou) Co., Ltd. | 15% | | Jinhai Chunxing Precision Manufacturing Co., Ltd. | 15% | | Nanjing Chunrui Precision Machinery Co., Ltd. | 15% | | Chunxing Casting (Suzhou Industrial Park) Co., Ltd. | 15% | | Chunxing Precision Manufacturing (Macheng) Co., Ltd. | 15% | | Anhui Chunxing Light Alloy Technology Co., Ltd. | 15% | | Vietnam Mait Communication Equipment Co., Ltd. | 20% | | Suzhou Industrial Park Yongda Technology Co., Ltd. | 20% | | Shanghai Wei Wu Communication Technology Co., Ltd. | 20% | | Chunxing Precision Manufacturing (India) Co., Ltd. | 33% | | HK WEISHUN INTL CO,LIMITED | 16.50% | | HK Weixing International Limited | 16.50% | | HK Weide International Limited | 16.50% | - The company and several subsidiaries (e.g., Mait Communication Equipment, Jinhai Chunxing, Nanjing Chunrui) enjoy a 15% corporate income tax preferential rate due to their high-tech enterprise qualifications[313][314] - Subsidiary Chunxing Financial Leasing Co., Ltd. enjoys a VAT immediate refund policy[314] - Some small and micro-enterprise subsidiaries enjoy preferential income tax policies, where the portion of annual taxable income not exceeding 1 million yuan is subject to a 25% reduction in taxable income and a 20% tax rate[315] VII. Notes to Consolidated Financial Statement Items This section detailed the consolidated financial statement items' period-end and period-beginning balances and changes. Key highlights include a high proportion of restricted cash, decreased accounts and notes receivable (with significant bad debt provisions), increased prepayments and long-term borrowings, a substantial increase in provisions for litigation, and negative net assets attributable to the parent company. Operating revenue and cost structures remained stable, but operating cash outflow increased. Foreign currency monetary items involve USD, EUR, INR, etc Cash and Bank Balances Composition | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Cash on Hand | 3.93 | 3.93 | | Bank Deposits | 210,968,550.57 | 198,617,255.32 | | Other Cash and Bank Balances | 164,236,254.84 | 182,504,105.63 | | Total | 375,204,809.34 | 381,121,364.88 | | Of which: Total Funds Deposited Overseas | 28,561,934.32 | 25,328,323.08 | Restricted Cash and Bank Balances | Item | Period-End Balance (yuan) | | :--- | :--- | | Bank Acceptance Bill Deposits | 166,223,062.18 | | Pledged Time Deposits | 163,388,813.86 | | Other Deposits | 1,784,588.45 | | Frozen Funds | 8,292,300.17 | | Long-Dormant Funds | 124,474.39 | | Total | 339,813,239.05 | - Accounts receivable period-end balance was 1,001,634,670.36 yuan, with bad debt provisions of 405,834,819.68 yuan, resulting in a book value of 595,799,850.68 yuan[337] - Other receivables period-end balance was 398,797,956.07 yuan, with bad debt provisions of 339,361,761.83 yuan, resulting in a book value of 59,436,194.24 yuan, including 317,227,500.00 yuan in equity transfer payments[378][382] - Inventory period-end book value was 461,832,855.41 yuan, with inventory depreciation provisions of 28,987,695.26 yuan[396][400] - Fixed assets period