科翔股份(300903) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides important notices, the report's structure, and definitions of key terms to ensure accurate interpretation Important Notice The company's board and senior management affirm the half-yearly report's truthfulness, accuracy, and completeness, while also noting no cash dividends, bonus shares, or capital reserve conversions are planned - The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the half-yearly report, with no false records, misleading statements, or major omissions[3] - Company head Zheng Xiaorong, chief accountant Liu Tao, and head of accounting Huang Zhenping declare the financial report is true, accurate, and complete[3] - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital[4] Table of Contents This section outlines the report's eight main chapters, covering company profile, financial indicators, management discussion, corporate governance, significant events, share changes, bond information, and financial statements - The report comprises eight main chapters, from important notices to financial statements, comprehensively covering the company's half-yearly operational status[7] Definitions This section defines common terms used in the report, including company and subsidiary names, key financial dates, and specialized terms related to the Printed Circuit Board (PCB) industry - The reporting period refers to January 1, 2025, to June 30, 2025[11] - PCB (Printed Circuit Board) is the substrate for assembling electronic components and the physical carrier for achieving functional integration in electronic products[13] - HDI (High-Density Interconnect Board) refers to high-density printed circuit boards with fine lines, micro-vias, and thin dielectric layers[13] Company Profile and Key Financial Indicators This section provides an overview of the company, its contact information, and a summary of key financial data and indicators for the reporting period Company Profile The company's stock abbreviation is "Kexiang Shares," stock code 300903, listed on the Shenzhen Stock Exchange, with Zheng Xiaorong as its legal representative - Company stock abbreviation: Kexiang Shares, stock code: 300903, listed on: Shenzhen Stock Exchange[15] - The company's legal representative is Zheng Xiaorong[15] Contact Person and Information The company's board secretary is Zheng Haitao, with contact phone and fax at 0752-5181019, and email at zqb@kxkjpcb.com - Board Secretary is Zheng Haitao, contact number: 0752-5181019, email: zqb@kxkjpcb.com[16] Other Information There were no changes in the company's contact information, information disclosure, or registration during the reporting period, with details available in the 2024 annual report - The company's registered address, office address, website, and email address remained unchanged during the reporting period[17] - Information disclosure and storage locations remained unchanged during the reporting period[18] - The company's registration status remained unchanged during the reporting period[19] Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue increased by 16.04%, net loss attributable to shareholders narrowed by 36.96%, and net cash flow from operating activities significantly grew by 315.70%, while total assets and net assets attributable to shareholders slightly decreased Key Accounting Data and Financial Indicators (H1 2025 vs. Prior Year Period) | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,805,826,594.41 | 1,556,251,814.49 | 16.04 | | Net Profit Attributable to Shareholders of Listed Company | -62,034,150.38 | -98,404,823.34 | 36.96 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | -72,404,029.32 | -114,493,224.18 | 36.76 | | Net Cash Flow from Operating Activities | 117,285,963.92 | 28,213,865.13 | 315.70 | | Basic Earnings Per Share (Yuan/share) | -0.1498 | -0.2375 | 36.93 | | Diluted Earnings Per Share (Yuan/share) | -0.1498 | -0.2375 | 36.93 | | Weighted Average Return on Net Assets | -3.41 | -4.58 | 1.17 | | End of Reporting Period vs. End of Prior Year | | | | | Total Assets | 7,041,303,537.29 | 7,350,593,212.93 | -4.21 | | Net Assets Attributable to Shareholders of Listed Company | 1,780,989,281.32 | 1,854,262,828.59 | -3.95 | Differences in Accounting Data under Domestic and International Accounting Standards During the reporting period, there were no differences in net profit and net assets between financial reports prepared under international or overseas accounting standards and Chinese accounting standards - The company's reporting period showed no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[21] - The company's reporting period showed no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards[22] Non-Recurring Gains and Losses Items and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 10.37 million Yuan, primarily from disposal of non-current assets, government subsidies, fair value changes of financial assets, and reversal of impairment provisions for receivables Non-Recurring Gains and Losses Items and Amounts | Item | Amount (Yuan) | Explanation | | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets | -7,670,111.62 | See "Section VIII, VII.50. Asset Disposal Income", "Section VIII, VII.52. Non-Operating Expenses" | | Government subsidies included in current profit and loss | 6,385,665.00 | See "Section VIII, VII.45. Other Income" | | Gains or losses from changes in fair value of financial assets and liabilities, and disposal of financial assets and liabilities (excluding effective hedging related to normal business operations) | 523,025.03 | See "Section VIII, VII.47. Investment Income", "Section VIII, VII.46. Gains from Changes in Fair Value" | | Capital occupation fees charged to non-financial enterprises included in current profit and loss | 2,340,568.63 | | | Reversal of impairment provisions for receivables subject to separate impairment testing | 11,272,461.49 | See "Section VIII, VII.4. Accounts Receivable", "Section VIII, VII.6. Other Receivables" | | Other non-operating income and expenses apart from the above | -1,615,912.11 | See "Section VIII, VII.51. Non-Operating Income", "Section VIII, VII.52. Non-Operating Expenses" | | Less: Income tax impact | 2,841,618.24 | | | Impact on minority interests (after tax) | -1,975,800.76 | | | Total | 10,369,878.94 | | Management Discussion and Analysis This section analyzes the company's main business, core competitiveness, financial performance, investment activities, and risks, along with management's responses Main Business Activities During the Reporting Period The company primarily engages in R&D, production, and sales of high-density Printed Circuit Boards (PCBs) for automotive electronics, new energy, and network communication, maintaining a strong industry position with competitive procurement, order-based production, and direct sales models - The company is a high-tech enterprise specializing in R&D, production, and sales of high-density Printed Circuit Boards (PCBs), offering products such as double-layer boards, multi-layer boards, HDI, thick copper boards, high-frequency/high-speed boards, metal substrates, ceramic substrates, IC substrates, and flexible circuit boards[31] - PCB products are widely applied in automotive electronics, new energy, network communication, consumer electronics, industrial control and security, smart terminals, medical electronics, and military aerospace sectors[31] - Prismark forecasts the global PCB industry scale to reach $78.56 billion in 2025, an increase of approximately 5.2% from 2024, with mainland China's output value expected to reach $43.73 billion, accounting for 55.6% of the global total[29] - The company ranked 28th in the 2024 comprehensive PCB Top 100 and 15th in the domestic PCB Top 100[30] - The company's main operating models include competitive inquiry procurement, order-based production, and direct sales[32][38][42] Industry Development Status The Printed Circuit Board (PCB) industry, vital for electronic product integration, is experiencing continuous growth driven by strong demand from AI and consumer electronics, with mainland China maintaining its leading global production position - PCB is the electrical connection support system for electronic components, carrying critical tasks such as signal transmission, power supply, and RF microwave signal processing, earning it the moniker "mother of electronic products"[28] - Since 2024, strong demand from the artificial intelligence and consumer electronics markets has driven continuous growth in global PCB output value[29] - Prismark forecasts the global PCB industry scale to reach $78.56 billion in 2025, an increase of approximately 5.2% from 2024, with mainland China's output value expected to reach $43.73 billion in 2025, accounting for 55.6% of the global total[29] Company's Industry Position The company holds a prominent position in the domestic PCB industry, ranking 28th in the 2024 comprehensive PCB Top 100 and 15th among domestic PCB manufacturers - The company ranked 28th in the 2024 comprehensive PCB Top 100 and 15th in the domestic PCB Top 100[30] Company's Main Business and Application Areas The company specializes in R&D, production, and sales of high-density PCBs, offering a full range of products for automotive electronics, new energy, network communication, and consumer electronics, with no significant changes in its main business or products during the reporting period - The company offers a full range of PCB products, including double-layer boards, multi-layer boards, HDI, thick copper boards, high-frequency/high-speed boards, metal substrates, ceramic substrates, IC substrates, and flexible circuit boards[31] - Products are primarily applied in automotive electronics, new energy, network communication, consumer electronics, industrial control and security, smart terminals, medical electronics, and military aerospace sectors[31] - During the reporting period, there were no significant changes in the company's main business or products[31] Company's Main Operating Model The company operates with a competitive inquiry procurement model, order-based production coordinated by an operations center, and a direct sales model managed by its market center - Procurement Model: Adopts competitive inquiry procurement, with a centralized procurement center responsible for selecting qualified suppliers, inquiries, and placing orders[32][34] - Production Model: Adopts an order-based production model, organizing production according to sales orders, with a centralized operations center coordinating various production bases[38][39] - Sales Model: Adopts a direct sales model, with the market center directly engaging with customers for对接, negotiation, review, and signing sales contracts or orders[42][43] Core Competitiveness Analysis The company's core competitiveness stems from its strong customer base, continuous high R&D investment in critical technologies, integrated intelligent manufacturing platform for efficiency, and diversified product strategy with specialized production bases catering to high-end market demands - The company has cultivated the PCB industry for over two decades, establishing a high-quality customer ecosystem centered on leading domestic and international brands, with a focus on major client sales strategies in automotive electronics, high-end HDI, new energy, and communication equipment sectors[45][46] - From January to June 2025, the company's R&D investment amounted to 100 million Yuan, a 8.75% year-on-year increase, accounting for 5.56% of operating revenue, with a strategic focus on technical fields such as servers, millimeter-wave radar, high-end HDI, optical modules, secondary power supplies, ceramic substrates, and semiconductor packaging[48][49][50][51][52][53][54] - The company has built an integrated intelligent manufacturing platform by integrating ERP, PDM, MES, QMS, WMS, EM, and EAP systems, achieving full-process digital closed-loop management, enhancing production efficiency, and reducing costs[56] - Leveraging its comprehensive product portfolio and one-stop service capabilities, the company continuously promotes specialized upgrades of its production bases, with each base focusing on different high-end PCB product areas to achieve synergistic effects[58] Customer Advantage With over two decades in the PCB industry, the company has cultivated a premium customer ecosystem centered on leading domestic and international brands, serving key clients in automotive electronics, high-end HDI, new energy, and communication equipment, thereby establishing strong market recognition and customer trust - The company has cultivated the PCB industry for over two decades, establishing a high-quality customer ecosystem centered on leading domestic and international brands[45] - Key customers include BYD, Aptiv (automotive electronics), Emdoor Information, Huaqin Technology (high-end HDI), Sungrow Power Supply, Ginlong Technologies (new energy), Ruijie Networks, and ZTE (communication equipment)[45] - Renowned enterprises have stringent certification for PCB suppliers, and once a partnership is established, it is typically long-term and stable; the company quickly gains new customer trust through its accumulation of high-quality clients[46] Technological Advantage During the reporting period, the company's R&D investment reached 100 million Yuan, a 8.75% increase, accounting for 5.56% of operating revenue, achieving breakthroughs in high-end technical fields such as servers, millimeter-wave radar, high-end HDI, optical modules, secondary power supplies, ceramic substrates, and semiconductor packaging, thereby strengthening its competitive moat in high-end manufacturing - From January to June 2025, the company's R&D investment amounted to 100 million Yuan, a 8.75% year-on-year increase, with R&D investment accounting for 5.56% of operating revenue[48] - In the server domain, breakthroughs were made in ultra-thick board processing and high-speed signal transmission technologies, mastering core processes such as 2.6mm ultra-thick board back-drilling tolerance of ±0.15mm, plating aspect ratio of 18:1, impedance control accuracy of ±7%, and applying 35/35μm ultra-precision circuit technology to AI servers[48] - In the optical module domain, 200G and 400G optical module technologies have been mastered and are in small-batch production, with future plans to develop 800G optical module technology[51] - In the ceramic substrate domain, the focus is on advanced materials and processes such as Aluminum Nitride (AlN) and AMB, enhancing substrate thermal conductivity, reliability, and integration to meet the demands of 5G, AI, and high-power devices[53] Intelligent Manufacturing Advantage The company has established an integrated intelligent manufacturing platform by integrating ERP, PDM, MES, QMS, WMS, EM, and EAP systems, achieving full-process digital closed-loop management, significantly improving production efficiency, reducing costs, and enhancing quotation accuracy through an intelligent engineering system and standardized pre-approval - The company has built an integrated intelligent manufacturing platform by integrating ERP, PDM, MES, QMS, WMS, EM, and EAP systems, achieving full-process digital closed-loop management[56] - The PDM system unifies product data across all group factories, creating an intelligent engineering system through intelligent processes, automatic blanking, automatic stacking, automatic impedance calculation, intelligent error-proofing, and automatic BOM generation[56] - The PCB industry's standardized pre-approval and quotation management system covers 80% of the Guangdong base and 50% of other bases, significantly improving the accuracy of quotation benchmarks and estimated order gross profit[57] Diversification Advantage The company strengthens customer relationships through one-stop solutions and a diversified product strategy, with specialized production bases focusing on different high-end PCB products, achieving resource integration and synergistic effects to optimize production costs - The company provides one-stop solutions to meet immediate customer needs and strengthen cooperative relationships[58] - Each production base specializes: Guangdong Kexiang headquarters focuses on high-end HDI, Zhien Electronics specializes in high-multilayer boards, Jiangxi Ganzhou base targets new energy, Jiangxi Jiujiang base focuses on mobile phone HDI and high-end servers, and Jiangxi Shangrao base makes breakthroughs in rigid-flex board processes[58] - By integrating resources such as procurement channels, customer channels, production technologies, and management experience, the company fully leverages the synergistic effects of its factories to optimize production costs[58] Main Business Analysis During the reporting period, the company's main business revenue increased by 16.04%, but financial expenses surged by 52.55% due to increased interest; PCB manufacturing accounted for over 90% of revenue with a gross margin of -1.69%, an increase of 2.57%, and domestic sales grew by 17.36%, comprising over 90% of total revenue Key Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | YoY Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,805,826,594.41 | 1,556,251,814.49 | 16.04 | | | Operating Cost | 1,669,040,369.13 | 1,478,919,411.82 | 12.86 | | | Selling Expenses | 29,368,823.90 | 32,683,922.03 | -10.14 | | | Administrative Expenses | 65,363,795.01 | 80,201,273.89 | -18.50 | | | Financial Expenses | 20,560,715.93 | 13,478,015.16 | 52.55 | Primarily due to increased interest expenses during the reporting period | | Income Tax Expense | -12,281,263.05 | -37,668,760.99 | 67.40 | Primarily due to reduced losses during the reporting period | | R&D Investment | 100,494,237.27 | 92,408,293.70 | 8.75 | | | Net Cash Flow from Operating Activities | 117,285,963.92 | 28,213,865.13 | 315.70 | Primarily due to increased cash received from sales of goods and provision of services during the reporting period | | Net Cash Flow from Financing Activities | -143,704,572.36 | 191,766,555.40 | -174.94 | Primarily due to increased repayment of bank loans during the reporting period | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Operating Cost (%) | YoY Change in Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | PCB Manufacturing | 1,635,282,668.42 | 1,662,849,091.91 | -1.69 | 15.56 | 12.71 | 2.57 | | Other Business Income | 169,575,983.51 | 4,888,086.26 | 97.12 | 20.12 | 37.90 | -0.37 | | By Region | | | | | | | | Domestic Sales | 1,668,026,601.08 | 1,541,644,322.17 | 7.58 | 17.36 | 13.48 | 3.17 | | Export Sales | 137,799,993.33 | 127,396,046.96 | 7.55 | 2.06 | 5.84 | -3.31 | Non-Core Business Analysis The company's non-core businesses impacted total profit, with asset impairment losses accounting for 11.09% and other income (government subsidies and VAT super deduction) for -18.53%; investment income and fair value changes primarily stemmed from structured deposits, while credit impairment losses were mainly due to the recovery of previously provisioned receivables Non-Core Business Analysis | Item | Amount (Yuan) | % of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 118,777.22 | -0.14 | Primarily from structured deposits and discounted interest on accounts receivable financing during the reporting period | No | | Gains/Losses from Changes in Fair Value | 232,706.28 | -0.28 | Primarily from structured deposits during the reporting period | No | | Asset Impairment | -9,343,112.10 | 11.09 | Primarily from inventory impairment provisions during the reporting period | No | | Non-Operating Income | 70,889.73 | -0.08 | | No | | Non-Operating Expenses | 1,968,586.21 | -2.34 | Primarily due to provisions for estimated liabilities during the reporting period | No | | Credit Impairment Losses | 6,538,036.98 | -7.76 | Primarily due to recovery of previously provisioned credit impairment losses during the reporting period | No | | Other Income | 15,604,824.95 | -18.53 | Primarily from government subsidies and VAT super deduction for advanced manufacturing enterprises during the reporting period | No | Analysis of Assets and Liabilities At the end of the reporting period, both the company's total assets and net assets attributable to shareholders decreased; monetary funds decreased by 4.16%, while accounts receivable and fixed assets increased their proportion; construction in progress decreased by 1.13%, and long-term borrowings decreased by 0.70%, with no differences under overseas accounting standards, but some assets are restricted Significant Changes in Asset Composition | Item | End of Current Reporting Period (Yuan) | % of Total Assets | End of Prior Year (Yuan) | % of Total Assets | % Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 510,595,097.63 | 7.25 | 838,662,628.63 | 11.41 | -4.16 | | | Accounts Receivable | 1,828,801,876.36 | 25.97 | 1,762,980,616.63 | 23.98 | 1.99 | | | Inventories | 514,919,518.84 | 7.31 | 475,959,642.82 | 6.48 | 0.83 | | | Fixed Assets | 2,659,326,952.13 | 37.77 | 2,629,892,558.70 | 35.78 | 1.99 | | | Construction in Progress | 298,133,452.40 | 4.23 | 394,169,628.68 | 5.36 | -1.13 | | | Short-term Borrowings | 1,126,781,297.13 | 16.00 | 1,121,747,581.25 | 15.26 | 0.74 | | | Long-term Borrowings | 202,737,400.00 | 2.88 | 262,933,200.00 | 3.58 | -0.70 | | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (Yuan) | Current Period Fair Value Change Gain/Loss (Yuan) | Current Period Purchase Amount (Yuan) | Current Period Sale Amount (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 88,070,015.94 | 232,706.28 | 702,000,000.00 | 771,201,544.92 | 19,101,177.30 | | Accounts Receivable Financing | 240,835,692.77 | | 205,897,290.51 | 240,835,692.77 | 205,897,290.51 | | Total Above | 328,905,708.71 | 232,706.28 | 907,897,290.51 | 1,012,037,237.69 | 224,998,467.81 | Asset Rights Restricted as of the End of the Reporting Period | Item | Ending Book Value (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 88,963,972.06 | Margin for issuing bills and funds frozen due to litigation | | Accounts Receivable Financing | 5,000,000.00 | Used for financing pledge | | Other Current Assets | 187,243,860.70 | Used for financing pledge | | Fixed Assets | 586,921,828.79 | Used for financing mortgage and pledge | | Land use rights, houses, and buildings of Ganzhou Kexiang Factory 1 | 24,015,084.47 | Partially restricted due to ongoing litigation seizure/freeze and unreleased portions from concluded litigation | | Total | 892,144,746.02 | | Investment Status Analysis During the reporting period, the company's total investment decreased by 21.92%; all fundraising projects from stock issuances in April and August 2022 have been completed, with remaining funds transferred to permanent working capital or settlement accounts; some fundraising projects were terminated due to market changes and their funds reallocated; the company engaged in wealth management with a total transaction amount of 316 million Yuan, with an outstanding balance of 162.01 million Yuan at period-end, and no derivative investments or entrusted loans Investment Amount During the Reporting Period | Indicator | Investment Amount in Reporting Period (Yuan) | Investment Amount in Prior Year Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Investment Amount | 1,064,567,598.03 | 1,363,472,988.33 | -21.92 | Financial Assets Measured at Fair Value | Asset Category | Initial Investment Cost (Yuan) | Current Period Fair Value Change Gain/Loss (Yuan) | Current Period Purchase Amount (Yuan) | Current Period Sale Amount (Yuan) | Ending Balance (Yuan) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Other (Structured Deposits/Wealth Management Products) | 88,070,015.94 | 232,706.28 | 702,000,000.00 | 771,201,544.92 | 19,101,177.30 | Own Funds/Raised Funds | | Other (Accounts Receivable Financing) | 240,835,692.77 | | 205,897,290.51 | 240,835,692.77 | 205,897,290.51 | Own Bills | | Total | 328,905,708.71 | 232,706.28 | 907,897,290.51 | 1,012,037,237.69 | 224,998,467.81 | | - The fundraising project from the stock issuance to specific targets in April 2022 has been completed, with remaining raised funds of 61.45 million Yuan permanently transferred to working capital and the special account closed[80] - The fundraising project "Annual Production of 2.4 Million Square Meters of High-Multilayer Circuit Boards" from the simplified stock issuance to specific targets in August 2022 was completed in March 2025, with remaining raised funds of 14,600 Yuan transferred to the settlement account and the special account closed[81] - The company terminated the "Jiangxi Kexiang Mini LED PCB Production Line Construction Project" and reallocated the remaining funds to the "Annual Production of 2.4 Million Square Meters of High-Multilayer Circuit Boards Project" to enhance production capacity for thick copper boards, aluminum substrates, and automotive electronics PCBs[84] Overview of Entrusted Wealth Management | Specific Type | Source of Entrusted Wealth Management Funds | Amount of Entrusted Wealth Management (10,000 Yuan) | Unexpired Balance (10,000 Yuan) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 23,900 | 14,900.58 | | Brokerage Wealth Management Products | Own Funds | 5,000 | 1,300 | | Bank Wealth Management Products | Raised Funds | 2,700 | 0 | | Total | | 31,600 | 16,200.58 | Significant Asset and Equity Sales During the reporting period, the company did not engage in any significant asset or equity sales - The company did not sell any significant assets during the reporting period[92] - The company did not sell any significant equity during the reporting period[93] Analysis of Major Holding and Participating Companies The company's major subsidiaries include Zhien Electronics, Daya Bay Kexiang, Jiangxi Kexiang, Ganzhou Kexiang, Ganzhou Kexiang Factory 2, and Shangrao Kexiang Electronics; Zhien Electronics' net profit increased by 2516.91%, Daya Bay Kexiang narrowed its losses through business transformation, Jiangxi Kexiang saw revenue growth and reduced losses, Ganzhou Kexiang experienced revenue growth but decreased net profit, and Shangrao Kexiang Electronics reported revenue growth but a decline in net profit Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (10,000 Yuan) | Total Assets (10,000 Yuan) | Net Assets (10,000 Yuan) | Operating Revenue (10,000 Yuan) | Operating Profit (10,000 Yuan) | Net Profit (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Daya Bay Kexiang | Subsidiary | PCB Manufacturing | 2,581.83 | 47,556.55 | -74.07 | 2,182.67 | -862.81 | -864.54 | | Jiangxi Kexiang | Subsidiary | PCB Manufacturing | 40,000.00 | 292,824.58 | 123,624.10 | 61,551.30 | -3,797.64 | -2,901.37 | | Zhien Electronics | Subsidiary | PCB Manufacturing | 10,000.00 | 179,128.80 | 24,773.93 | 71,358.53 | 1,196.00 | 1,202.76 | | Ganzhou Kexiang | Subsidiary | PCB Manufacturing | 30,000.00 | 183,930.95 | 33,509.31 | 48,991.59 | 1,095.12 | 1,163.30 | | Ganzhou Kexiang Factory 2 | Subsidiary | PCB Manufacturing | 1,000.00 | 69,649.93 | 205.81 | 13,398.56 | -2,355.95 | -2,445.44 | | Shangrao Kexiang Electronics | Subsidiary | PCB Manufacturing | 10,000.00 | 34,809.64 | 8,222.42 | 3,816.66 | -2,185.86 | -2,186.53 | - Zhien Electronics' sales revenue decreased by 12.26%, but net profit increased by 2516.91%, primarily benefiting from higher product unit prices[94] - Daya Bay Kexiang's sales revenue decreased by 76.18%, while net profit increased by 56.38%, mainly due to divesting low-value businesses and transforming into a processing center[95][96] - Ganzhou Kexiang's operating revenue increased by 37.02%, but net profit decreased by 17.46%, primarily due to capacity release and higher product unit prices, offset by increased fixed amortization costs[97] - Shangrao Kexiang Electronics' sales revenue increased by 86.93%, while net profit decreased by 27.45%, mainly due to increased order volume but higher fixed costs leading to a decline in gross profit[99] Structured Entities Controlled by the Company During the reporting period, the company did not control any structured entities - The company did not control any structured entities during the reporting period[100] Risks Faced by the Company and Countermeasures The company faces risks from macroeconomic fluctuations, raw material price volatility, and intensified market competition; to mitigate these, it plans to optimize business and technology strategies, launch high-tech and high-value-added products, monitor raw material prices, diversify supply sources, and enhance internal operational efficiency to improve overall competitiveness and risk resilience - Macroeconomic fluctuation risk: The PCB industry's prosperity is closely linked to the macroeconomic environment, and economic deterioration may lead to a slowdown or decline in main business revenue and net profit growth[100] - Raw material price fluctuation risk: Prices of key raw materials such as copper clad laminates, copper foil, copper balls, and gold salt are highly affected by metal price fluctuations, potentially leading to increased procurement costs and decreased gross profit[101] - Intensified market competition risk: The PCB industry has numerous enterprises and low market concentration, and capacity expansion and environmental policies may intensify competition, leading to a decline in operating performance[102] - Countermeasures: Continuously optimize business and technology strategies, launch high-tech and high-value-added products; closely monitor raw material prices, increase safety stock, and diversify supply sources; strengthen internal production and operational efficiency to enhance overall competitiveness and risk resilience[100][101][104] Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period On May 16, 2025, the company participated in the 2024 annual and Q1 2025 earnings briefing via the Value Online platform, engaging with investors on performance and other concerns - On May 16, 2025, the company participated online in the 2024 annual and Q1 2025 earnings briefing via the Value Online platform, engaging with all investors[105] Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system nor disclosed a valuation enhancement plan - The company has not formulated a market value management system[106] - The company has not disclosed a valuation enhancement plan[106] Implementation of "Dual Improvement in Quality and Returns" Action Plan The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan - The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan[106] Corporate Governance, Environment, and Society This section details changes in the company's directors, supervisors, and senior management, profit distribution plans, equity incentive implementation, environmental information disclosure, and social responsibility initiatives Changes in Company Directors, Supervisors, and Senior Management During the reporting period, the company experienced multiple changes in its directors, supervisors, and senior management, including the election of Kang Guofeng and Chen Qiufeng as directors, and the departure or election of several others due to term expiration or personal reasons - Kang Guofeng was elected as an employee representative director, and Chen Qiufeng was elected as an independent director, both with appointment dates of May 15, 2025[107] - Zheng Haitao, Chen Xi, Lu Jiqiang, Zhang Jin, Jin Kui, and Wang Lei resigned due to term expiration; Liu Dong and Wang Dongyang resigned due to personal reasons; Qin Yuanguo resigned due to term expiration[107][108] - Zhang Juhui was elected as a supervisor, and Wei Zhenguang was appointed as a senior executive[108] Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for this half-year period - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the half-year period[109] Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures On February 26, 2025, the company granted 2.84 million restricted shares to 58 incentive recipients at 3.39 Yuan/share; concurrently, the first vesting period conditions for the 2024 restricted stock incentive plan were not met, resulting in the cancellation of 7.763 million restricted shares, with no employee stock ownership plans or other incentive measures during the reporting period - On February 26, 2025, the company granted 2.84 million restricted shares to 58 incentive recipients at a grant price of 3.39 Yuan/share[110] - The first vesting period conditions for the 2024 restricted stock incentive plan were not met, resulting in the cancellation of 7.763 million restricted shares that had been granted but not yet vested[110] - The company had no employee stock ownership plans or other employee incentive measures during the reporting period[111] Environmental Information Disclosure The company and its seven major subsidiaries are all listed as enterprises required to disclose environmental information by law and have done so on designated websites, demonstrating their commitment to environmental protection and compliance - The company and its 7 major subsidiaries are all included in the list of enterprises required to disclose environmental information by law[114] - Environmental information disclosure reports for each subsidiary can be found on the designated websites of the Guangdong Provincial Department of Ecology and Environment and the Jiangxi Provincial Department of Ecology and Environment[114] Social Responsibility Status During the reporting period, the company actively fulfilled its social responsibilities by operating legally and compliantly, fostering corporate culture and employee care, safeguarding the rights of investors and suppliers, adhering to a green and sustainable development strategy, and participating in social welfare initiatives - The company strictly adheres to laws and regulations, operates legally and compliantly, focuses on the joint development of economic and social benefits, actively pays taxes, and creates employment opportunities[112] - The company implements humanized management, provides a safe and healthy working environment through ISO45001 certification, establishes facilities such as libraries and gyms, offers career guidance and skills training, and protects employees' legitimate rights and interests[113][114][115] - The company provides reasonable returns to shareholders, safeguards their rights to information, participation, and voting; strengthens internal controls to ensure financial stability, and considers the interests of creditors[116] - The company establishes internal control mechanisms to prevent commercial bribery, implements management systems such as ISO9001 and IATF16949, adheres to the philosophy of "win-win cooperation and sustainable operation," and protects the rights and interests of suppliers and customers[117] - The company practices a green and sustainable development strategy, complies with environmental laws and regulations, achieves low pollution emissions through efficient resource utilization and recycling, implements ISO14001, RoHS, and UL standards, and produces green products[118] - The company actively responds to local government poverty alleviation requirements and participates in targeted poverty alleviation and social welfare initiatives[119] Significant Matters This section covers commitments, non-operating fund occupation, illegal external guarantees, auditor appointments, non-standard audit reports, bankruptcy reorganization, litigation, penalties, integrity status, related party transactions, major contracts, and other significant matters Commitments Fulfilled and Overdue Unfulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period During the reporting period, there were no commitments fulfilled or overdue unfulfilled by the company's actual controller, shareholders, related parties, acquirers, or the company - During the reporting period, there were no commitments fulfilled or overdue unfulfilled by the company's actual controller, shareholders, related parties, acquirers, or the company[122] Non-Operating Occupation of Funds by Controlling Shareholders and Other Related Parties of the Listed Company During the reporting period, there was no non-operating occupation of funds by controlling shareholders or other related parties of the listed company - During the reporting period, there was no non-operating occupation of funds by controlling shareholders or other related parties of the listed company[123] Illegal External Guarantees During the reporting period, the company had no illegal external guarantees - The company had no illegal external guarantees during the reporting period[124] Appointment and Dismissal of Accounting Firms The company's half-yearly financial report was not audited - The company's half-yearly report was not audited[125] Explanation by the Board of Directors, Supervisory Board, and Audit Committee on the Accounting Firm's "Non-Standard Audit Report" for This Reporting Period The company did not have a "non-standard audit report" for this reporting period - The company did not have a "non-standard audit report" for this reporting period[126] Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year The company did not have a "non-standard audit report" for the previous year - The company did not have a "non-standard audit report" for the previous year[126] Bankruptcy Reorganization Matters During the reporting period, the company did not experience any bankruptcy reorganization matters - The company did not experience any bankruptcy reorganization matters during the reporting period[127] Litigation Matters During the reporting period, the company had no major litigation or arbitration matters, but was involved in multiple other lawsuits totaling 45.61 million Yuan, for which full bad debt provisions have been made, with some cases still in enforcement or trial - The company had no major litigation or arbitration matters in this reporting period[127] Other Litigation Matters | Basic Information of Litigation (Arbitration) | Amount Involved (10,000 Yuan) | Provision for Estimated Liabilities | Litigation (Arbitration) Progress | Outcome and Impact of Litigation (Arbitration) | Enforcement Status of Litigation (Arbitration) Judgment | | :--- | :--- | :--- | :--- | :--- | :--- | | Other cases involving the company that do not meet the criteria for major litigation | 4,561.13 | No | Awaiting judgment/execution | No significant impact | In execution | - The total amount of outstanding accounts receivable litigation and disputes where the company is the plaintiff is 45.61 million Yuan, for which full bad debt provisions have been made[144] - Litigation cases where the company is the defendant include private lending disputes with Lai Hongzhong and Li Hong, a lease contract dispute with Ganzhou Xinlianxing, and product liability or contract disputes with Suzhou Handing Energy Saving Technology Co., Ltd., Jiangsu Shenhaiyang Electronics Co., Ltd., and Suzhou Ruiyi Electronic Technology Co., Ltd., with some cases having effective judgments or still being under trial[147][148][149] Penalties and Rectification Status During the reporting period, the company had no penalties or rectification situations - The company had no penalties or rectification situations during the reporting period[129] Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers During the reporting period, the company, its controlling shareholders, and actual controllers did not have any unfulfilled effective court judgments or large overdue debts - During the reporting period, the company had no unfulfilled effective court judgments or large overdue debts that were not repaid upon maturity[130] Significant Related Party Transactions During the reporting period, the company had no related party transactions concerning daily operations, asset/equity acquisitions or disposals, joint external investments, or related party creditor/debtor relationships, nor did it engage with affiliated financial companies; however, there were minor related party leases, primarily for factory buildings and land from the actual controller - During the reporting period, the company had no related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, or related party creditor/debtor relationships[130][131][132][133] - There were no deposits, loans, credit lines, or other financial transactions between the company and affiliated financial companies, or between the company's controlled financial companies and related parties[134][135] - As a lessee, the company leased factory buildings, land, and above-ground attachments from Zheng Xiaorong, with total rent paid in this period amounting to 129,303.60 Yuan[138] Major Contracts and Their Performance During the reporting period, the company had no trusteeship or contracting arrangements but was involved in multiple lease contracts for factory buildings, warehouses, dormitories, and equipment; the total external guarantees by the company and its subsidiaries amounted to 1,552.76 million Yuan, representing 87.19% of net assets, with 1,107.25 million Yuan provided for guaranteed entities with a debt-to-asset ratio exceeding 70%; there were no other major operating or significant contracts - The company had no trusteeship or contracting arrangements during the reporting period[137][138] - The company has multiple lease contracts for factory buildings, warehouses, and dormitories, with most lease terms ranging from 1 to 5 years[139][140] - The company has multiple lease contracts for circuit board production equipment, with most lease terms ranging from 3 to 5 years[141] Total Company Guarantees | Indicator | Amount (10,000 Yuan) | | :--- | :--- | | Total approved guarantee limit for subsidiaries at end of reporting period (B3) | 458,500 | | Total actual guarantee balance for subsidiaries at end of reporting period (B4) | 155,275.94 | | Ratio of total actual guarantees (i.e., A4+B4+C4) to company's net assets | 87.19% | | Of which: Guarantees provided for shareholders, actual controllers, and their related parties (D) | 0 | | Debt guarantee balance provided directly or indirectly for guaranteed entities with a debt-to-asset ratio exceeding 70% (E) | 110,724.7 | | Amount of total guarantees exceeding 50% of net assets (F) | 66,226.48 | | Total of the above three guarantee amounts (D+E+F) | 176,951.18 | - The company had no major contracts related to daily operations or other significant contracts during the reporting period[153][154] Explanation of Other Significant Matters During the reporting period, the company had no other significant matters requiring explanation - The company had no other significant matters requiring explanation during the reporting period[154] Significant Matters of Company Subsidiaries During the reporting period, the company's subsidiaries had no significant matters - The company's subsidiaries had no significant matters during the reporting period[155] Share Changes and Shareholder Information This section details changes in the company's share capital, securities issuance, shareholder numbers, and holdings, as well as changes in director, supervisor, and senior management shareholdings, and any changes in controlling shareholders or actual controllers Share Change Status During the reporting period, the company's restricted shares decreased by 4,749 shares, while unrestricted shares increased by 4,749 shares, primarily due to the release of locked shares from former senior management and the locking of shares held by former directors and senior management, with the total share capital remaining unchanged Share Change Status | Category | Number Before This Change (Shares) | % Before This Change | Increase/Decrease in This Change (Shares) | Number After This Change (Shares) | % After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 86,373,978 | 20.83 | -4,749 | 86,369,229 | 20.83 | | 3. Other Domestic Holdings | 86,373,978 | 20.83 | -4,749 | 86,369,229 | 20.83 | | Domestic Natural Person Holdings | 86,373,978 | 20.83 | -4,749 | 86,369,229 | 20.83 | | II. Unrestricted Shares | 328,320,444 | 79.17 | 4,749 | 328,325,193 | 79.17 | | 1. RMB Ordinary Shares | 328,320,444 | 79.17 | 4,749 | 328,325,193 | 79.17 | | III. Total Shares | 414,694,422 | 100.00 | 0 | 414,694,422 | 100.00 | - The reason for share changes is that former senior executive Mr. Cheng Jian and former Supervisory Board Chairman Mr. Wang Yanli, having left for over 6 months, had 25% of their shares unlocked; former director Ms. Liu Dong and former senior executive Mr. Qin Yuanguo, upon leaving, had 100% of their shares locked[159] Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (Shares) | Shares Released from Restriction in Current Period (Shares) | Shares Increased in Restriction in Current Period (Shares) | Restricted Shares at End of Period (Shares) | Reason for Restriction | Proposed Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zheng Xiaorong | 46,692,923 | | | 46,692,923 | Senior Executive Locked Shares | Annual transferable shares calculated as 25% of total holdings at end of previous year during tenure | | Tan Dong | 36,078,562 | | | 36,078,562 | Senior Executive Locked Shares | Annual transferable shares calculated as 25% of total holdings at end of previous year during tenure | | Wang Yanli | 410,504 | 102,626 | | 307,878 | Senior Executive Locked Shares | Resigned as Chairman of the Supervisory Board in August 2024, will not transfer shares within six months of resignation; after six months of resignation until six months after the original term expires, annual transferable shares shall not exceed 25% of total company shares held | | Cheng Jian | 950,300 | 237,575 | | 712,725 | Senior Executive Locked Shares | Resigned in August 2024, will not transfer shares within six months of resignation; after six months of resignation until six months after the original term expires, annual transferable shares shall not exceed 25% of total company shares held | | Qin Yuanguo | 797,529 | | 265,843 | 1,063,372 | Senior Executive Locked Shares | Resigned as senior executive in May 2025, will not transfer shares within six months of resignation; after six months of resignation until six months after the original term expires, annual transferable shares shall not exceed 25% of total company shares held | | Liu Dong | 208,826 | | 69,609 | 278,435 | Senior Executive Locked Shares | Resigned in January 2025, will not transfer shares within six months of resignation; after six months of resignation until six months after the original term expires, annual transferable shares shall not exceed 25% of total company shares held | | Total | 86,373,978 | 340,201 | 335,452 | 86,369,229 | | | Securities Issuance and Listing Status During the reporting period, the company had no securities issuance or listing activities - The company had no securities issuance or listing activities during the reporting period[162] Company Shareholder Numbers and Shareholding Status At the end of the reporting period, the company had 49,879 ordinary shareholders; among the top ten shareholders, Zheng Xiaorong held 15.01%, Tan Dong held 11.60%, and Shenzhen Kexiang Capital Management Co., Ltd. held 4.44%; Zheng Xiaorong, Tan Dong, and Kexiang Capital are related, and Tan Dong is also a general partner of Kexiang Fuhong; the company's special repurchase securities account held 2,711,520 shares, accounting for 0.65% of total share capital - Total number of ordinary shareholders at the end of the reporting period was 49,879[164] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio (%) | Number of Shares Held at End of Reporting Period (Shares) | Number of Restricted Shares Held (Shares) | Number of Unrestricted Shares Held (Shares) | Share Status | Number Pledged, Marked, or Frozen (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zheng Xiaorong | Domestic Natural Person | 15.01 | 62,257,231 | 46,692,923 | 15,564,308 | Pledged | 39,050,000 | | Tan Dong | Domestic Natural Person | 11.60 | 48,104,750 | 36,078,562 | 12,026,188 | Pledged | 1,000,000 | | Shenzhen Kexiang Capital Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 4.44 | 18,396,614 | 0 | 18,396,614 | Pledged | 18,390,000 | | Zhuhai Hengqin Kexiang Fuhong Electronic Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 2.17 | 9,000,000 | 0 | 9,000,000 | Not Applicable | 0 | | Shenzhen Chuangdongfang Investment Co., Ltd. - Jiujiang City Two Big Two New Private Equity Investment Center (Limited Partnership) | Other | 1.65 | 6,854,531 | 0 | 6,854,531 | Not Applicable | 0 | | Chen Huanxian | Domestic Natural Person | 1.36 | 5,649,299 | 0 | 5,649,299 | Not Applicable | 0 | | Zhang Xinhua | Domestic Natural Person | 1.14 | 4,730,562 | 0 | 4,730,562 | Not Applicable | 0 | | Industrial and Commercial Bank of China Co., Ltd. - Dacheng CSI 360 Internet+ Big Data 100 Index Securities Investment Fund | Other | 0.39 | 1,635,960 | 0 | 1,635,960 | Not Applicable | 0 | | Qin Yuanguo | Domestic Natural Person | 0.26 | 1,063,372 | 1,063,372 | 0 | Not Applicable | 0 | | Xu Yuanyuan | Domestic Natural Person | 0.23 | 966,200 | 0 | 966,200 | Not Applicable | 0 | - Shareholder Ms. Zheng Xiaorong and Shareholder Mr. Tan Dong are a married couple; Shareholder Kexiang Capital is an enterprise jointly invested by them; Shareholder Mr. Tan Dong is the general partner of Shareholder Kexiang Fuhong and serves as its executive partner, holding 99.00% of its shares[165] - As of June 30, 2025, the company's special repurchase securities account held 2,711,520 shares, accounting for 0.65% of the company's current total share capital[165] Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the shareholdings of the company's directors, supervisors, and senior management, as detailed in the 2024 annual report - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period, with details available in the 2024 annual report[167] Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder did not change during the reporting period[168] - The company's actual controller did not change during the reporting period[168] Bond-Related Information This section confirms that there were no bond-related matters for the company during the reporting period Bond-Related Information During the reporting period, the company had no bond-related matters - The company had no bond-related matters during the reporting period[171] Financial Report This section presents the company's unaudited half-yearly financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with notes on accounting policies, taxes, and other significant financial details Audit Report The company's half-yearly financial report was not audited - The company's half-yearly financial report was not audited[173] 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 its financial position, operating results, and cash flow - Financial statements include the consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[174][178][182][186][190][193][196][203] Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 7.041 billion Yuan, a 4.21% decrease from the beginning of the period; total liabilities were 5.244 billion Yuan, a 4.29% decrease; and total owners' equity was 1.797 billion Yuan, a 3.92% decrease, with total current assets at 3.549 billion Yuan and total non-current assets at 3.492 billion Yuan Key Data from Consolidated Balance Sheet | Item | Ending Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 7,041,303,537.29 | 7,350,593,212.93 | | Total Liabilities | 5,244,058,734.10 | 5,479,919,949.20 | | Total Owners' Equity | 1,797,244,803.19 | 1,870,673,263.73 | | Total Current Assets | 3,548,834,068.67 | 3,774,039,227.10 | | Total Non-Current Assets | 3,492,469,468.62 | 3,576,553,985.83 | | Total Current Liabilities | 4,677,173,969.92 | 4,787,530,340.48 | | Total Non-Current Liabilities | 566,884,764.18 | 692,389,608.72 | Parent Company Balance Sheet As of June 30, 2025, the parent company's total as