格力博(301260) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions Important Notice The board, supervisory board, and senior management guarantee the report's truthfulness and completeness, advising investors of risks - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming individual and joint legal responsibility[4] - Company head Chen Yin, chief accountant Xu Youtao, and head of accounting department Wang Fan declare that the financial report in this semi-annual report is true, accurate, and complete[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[6] Table of Contents This section lists the detailed chapter structure of the semi-annual report, including eight main chapters and their starting page numbers - The report's table of contents includes eight main chapters covering important notices, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond-related information, and financial reports[8] - The list of reference documents includes the original report text signed and sealed by the legal representative, financial statements, original drafts of publicly disclosed documents, and other relevant materials[10][11][12] Definitions This section defines common terms used in the report, ensuring clear understanding of the content - "Company," "the Company," or "Greenworks" refers to Greenworks (Jiangsu) Co., Ltd[15] - "Reporting Period" refers to January 1, 2025, to June 30, 2025[15] - "ODM" refers to Original Design Manufacture, meaning independent design and manufacturing, with products sold under the client's brand[15] Company Profile and Key Financial Indicators Company Profile This section introduces Greenworks (Jiangsu) Co., Ltd.'s basic information, including stock ticker, code, listing exchange, and legal representative - The company's stock ticker is "Greenworks," stock code "301260," listed on the Shenzhen Stock Exchange[18] - The company's Chinese name is Greenworks (Jiangsu) Co., Ltd., and its legal representative is Chen Yin[18] Contact Persons and Information This section provides contact details for the company's board secretary and securities affairs representative - The Board Secretary is Xu Youtao, and the Securities Affairs Representative is Wang Qing[19] - The company's contact address is No. 65-6 Xinggang Road, Zhonglou Economic Development Zone, Changzhou City, and its email is ir@globetools.com[19] Other Information This section notes no changes in company contact or disclosure information, but total share capital decreased due to share repurchase and cancellation - The company's registered address, office address, website, and email address remained unchanged during the reporting period[20] - During the reporting period, the company completed the cancellation of 7,835,100 repurchased shares, reducing total share capital from 490,292,174 shares to 482,457,074 shares[23] - The company will amend its registered capital, revise the Articles of Association, and complete industrial and commercial change registration and filing in accordance with relevant regulations[23] Key Accounting Data and Financial Indicators This section presents the company's key accounting data and financial indicators, showing a slight revenue decrease but growth in net profit and total assets Key Accounting Data and Financial Indicators (Current Period vs. Prior Year) | Indicator | Current Period (RMB) | Prior Year (RMB) | Change from Prior Year | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,976,741,010.96 | 2,991,504,281.67 | -0.49% | | Net Profit Attributable to Shareholders of Listed Company | 132,697,706.29 | 121,187,407.88 | 9.50% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | 158,466,935.38 | 120,129,835.34 | 31.91% | | Net Cash Flow from Operating Activities | 224,944,787.59 | 490,673,577.71 | -54.16% | | Basic Earnings Per Share (RMB/share) | 0.27 | 0.25 | 8.00% | | Diluted Earnings Per Share (RMB/share) | 0.27 | 0.25 | 8.00% | | Weighted Average Return on Net Assets | 2.92% | 2.65% | 0.27% | | Current Period End vs. Prior Year End: | | | | | Total Assets (RMB) | 10,359,721,615.94 | 9,403,298,316.92 | 10.17% | | Net Assets Attributable to Shareholders of Listed Company (RMB) | 4,736,719,760.75 | 4,376,945,850.14 | 8.22% | Differences in Accounting Data Under Domestic and International Accounting Standards This section states that there are no differences in net profit and net assets between Chinese and international accounting standards for the reporting period - The company's net profit and net assets for the reporting period show no differences when disclosed under International Accounting Standards compared to Chinese Accounting Standards[25] - The company's net profit and net assets for the reporting period show no differences when disclosed under overseas accounting standards compared to Chinese Accounting Standards[26] Non-recurring Gains and Losses and Amounts This section details non-recurring gains and losses for the reporting period, totaling -25,769,229.09 RMB, primarily influenced by fair value changes and non-operating income/expenses Non-recurring Gains and Losses and Amounts | Item | Amount (RMB) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -486,819.47 | | Government grants recognized in current profit or loss (excluding those continuously related to the company's business) | 3,512,958.83 | | Gains or losses from changes in fair value of financial assets and liabilities, and investment income from disposal of financial assets and liabilities (excluding hedging activities) | -29,333,387.01 | | Other non-operating income and expenses apart from the above | -3,705,259.59 | | Less: Income tax impact | -4,243,278.15 | | Total | -25,769,229.09 | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring ones[29] Management Discussion and Analysis Principal Business Activities During the Reporting Period The company primarily engages in R&D, design, manufacturing, and sales of new energy garden machinery, strengthening core competitiveness through global production and digital supply chain - The company primarily engages in the research, design, manufacturing, and sales of new energy garden machinery, mainly through its own brands, and also provides ODM services[31] - The company's product portfolio exceeds 1,500 SKUs, covering outdoor, garage, living room, leisure, travel, and professional landscaping needs[31] - During the reporting period, sales of lawnmowers and string trimmers showed stable growth, while zero-turn mowers, robotic lawnmowers, and power tools maintained rapid growth[31] Accelerating Construction of Vietnam Manufacturing Base to Actively Respond to US Tariffs To counter US tariffs, the company is accelerating its Vietnam manufacturing base, forming a strategic synergy with its China and US bases, with Phase I operational and Phase II underway - The company has established three major manufacturing bases in China, Vietnam, and the US, achieving strategic synergy to address US tariffs on Chinese goods[33] - The Vietnam base produces a wide range of products, including string trimmers, blowers, lawnmowers, and go-karts, achieving deep local manufacturing to meet US customer demand[33] - The company has accelerated the design and planning of Phase II of its Thai Binh production base in Vietnam, with groundbreaking in July this year[33] Comprehensively Promoting Digital Supply Chain Construction The company initiated digital supply chain construction, upgrading supplier and procurement management systems to enhance overall efficiency and transparency, with future plans to integrate AI - The company has begun promoting digital supply chain construction, upgrading supplier and procurement management systems to enhance overall supply chain efficiency[36] - The goal is to achieve a transparent and efficient supply chain system, deeply integrating AI technology to drive five core transformations[36] Expanding Intelligent Industry Layout and Opening New Intelligent Industry Tracks The company is actively expanding into embodied AI, collaborating with Zhiyuan Innovation and investing in its subsidiaries, and establishing an industry investment fund to accelerate its AI and robotics strategy - The company is in strategic cooperation discussions with Zhiyuan Innovation and has invested in its subsidiaries, Zhejiang Zhiding and Annu Intelligent[37] - The company signed a cooperation agreement with Zhejiang Zhiding, leveraging its advantages to provide industrialization support and overseas channel expansion for commercial cleaning robots[37] - The company, in partnership with Hengtai Huasheng, established Greenworks Industrial Investment (Changzhou) Partnership to accelerate its expansion into the embodied AI field centered on "robotics and artificial intelligence"[37] Collaboration with Embodied AI Industry Leaders The company is collaborating with Zhiyuan Innovation, investing in its subsidiaries, to jointly develop the global robotics market and support commercial cleaning robots - The company has completed equity investments in Zhejiang Zhiding and Annu Intelligent, both subsidiaries of Zhiyuan Innovation[37] - The collaboration aims to jointly explore the global robotics market, leveraging respective strengths in product development, intelligent manufacturing, and channel building[37] - The company will utilize its Vietnam production base and overseas channel resources to provide industrialization support and assist in expanding overseas sales for Zhejiang Zhiding's commercial cleaning robots[37] Establishment of Industry Investment Fund In August 2025, the company co-established an industry investment fund with Hengtai Huasheng to accelerate its expansion into embodied AI and invest in synergistic AI enterprises - In August 2025, the company, in partnership with Hengtai Huasheng, established Greenworks Industrial Investment (Changzhou) Partnership[37] - The fund aims to accelerate the company's expansion into the embodied AI field, centered on "robotics and artificial intelligence," through capital empowerment[37] - The fund will leverage the company's industrial chain advantages and global market network to identify and invest in high-quality AI enterprises with technological synergy[37] Strengthening the Development of Principal Business The company continues to strengthen its new energy garden machinery business, with stable growth in lawnmowers and significant increases in zero-turn mowers, power tools, and robotic lawnmowers - The company's lawnmower product line features a 24V-82V full voltage matrix, achieving 787 million RMB in sales from January to June 2025, a year-on-year increase of 5.95%[39] - The zero-turn mower business grew rapidly, achieving 175 million RMB in sales from January to June 2025, a year-on-year increase of 63.02%[44] - Power tools achieved 120 million RMB in sales, a year-on-year increase of 72.95%, with the product line expanded to over 100 models[48] - The third-generation robotic lawnmower, launched in Europe, utilizes RTK centimeter-level high-precision satellite positioning and visual obstacle avoidance technology, with sales revenue increasing by 68.92% year-on-year[51] Main Products The company's main products include lawnmowers, zero-turn mowers, power tools, and robotic lawnmowers, all showing robust sales performance and technological advancements - Lawnmower products achieved 787 million RMB in sales from January to June 2025, a year-on-year increase of 5.95%[39] - Zero-turn mower business grew rapidly, achieving 175 million RMB in sales from January to June 2025, a year-on-year increase of 63.02%[44] - Power tools achieved 120 million RMB in sales from January to June 2025, a year-on-year increase of 72.95%[48] - The third-generation robotic lawnmower launched in Europe, with sales revenue increasing by 68.92% year-on-year[51] Omnichannel Sales Model The company employs an omnichannel sales model covering supermarkets, e-commerce, and distributors, maintaining a leading position on major e-commerce platforms and expanding its own-brand sales - The company has established an "omnichannel sales model" covering supermarkets, e-commerce, and distributors, with products sold in over 12,000 stores globally[54] - The company maintains a long-term leading market share in its product categories on mainstream e-commerce platforms like Amazon and enhances online sales through its official website[54] - From January to June 2025, e-commerce channel sales revenue totaled 1.2 billion RMB, a year-on-year increase of 14%, accounting for 40.6% of the company's main business revenue during the period[56] Core Competitiveness Analysis The company's core competitiveness stems from its global intelligent manufacturing, omnichannel sales, strong brands, global operations, innovative R&D, and diverse product ecosystem - The company has built a globally leading intelligent manufacturing and supply chain system with three major manufacturing bases in China, Vietnam, and the US, mastering independent design and manufacturing capabilities for over 80% of core components[57] - The company adopts an omnichannel sales model, establishing long-term stable cooperative relationships with large chain supermarkets, mainstream e-commerce platforms, and professional distributors in North America and Europe[58] - The company has successfully built a globally influential own-brand system, with the Greenworks brand being well-known in the North American market and its lawnmowers consistently ranking as the top seller on Amazon[59] - The company has established a global R&D and innovation system with three R&D centers in China, the US, and Sweden, accumulating 2,071 domestic and international patents (including 458 invention patents)[61] - The company has innovatively developed multiple battery power platforms (24V, 40V, 60V, 80V, and 82V), building an intelligent ecosystem centered on battery packs and a diversified product matrix of 1,500 SKUs[62] Analysis of Principal Business Operating revenue slightly decreased by 0.49%, but operating costs fell by 5.11% due to product mix optimization, while net cash flow from operating activities decreased significantly Major Financial Data Year-on-Year Changes | Indicator | Current Period (RMB) | Prior Year (RMB) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,976,741,010.96 | 2,991,504,281.67 | -0.49% | No significant change | | Operating Cost | 2,072,544,824.10 | 2,184,057,307.53 | -5.11% | Primarily due to changes in product portfolio structure | | Selling Expenses | 422,059,448.78 | 355,896,498.96 | 18.59% | Primarily due to increased salaries and warehousing/rental expenses | | Administrative Expenses | 267,953,008.85 | 245,325,550.05 | 9.22% | Primarily due to increased salaries for Taiping factory management, office expenses, and security fees | | Financial Expenses | -108,161,198.16 | -41,991,672.86 | -157.58% | Primarily due to increased fixed deposit interest income and exchange gains | | Income Tax Expense | 4,658,723.77 | 2,253,778.72 | 106.71% | Primarily due to increased tax rates for some subsidiaries and higher profit growth for high-tax-rate subsidiaries | | R&D Investment | 125,289,369.98 | 135,963,958.37 | -7.85% | Primarily due to decreased R&D material procurement and travel expenses | | Net Cash Flow from Operating Activities | 224,944,787.59 | 490,673,577.71 | -54.16% | Primarily due to increased payments for purchases and taxes | Product or Service Breakdown (Year-on-Year Change for items > 10% of revenue) | Product or Service | Operating Revenue Year-on-Year Change | Operating Cost Year-on-Year Change | Gross Margin Year-on-Year Change | | :--- | :--- | :--- | :--- | | New Energy Garden Machinery | 0.80% | -2.39% | 2.28% | | AC Garden Machinery | -13.52% | -24.03% | 9.19% | | Other | 6.08% | -0.41% | 4.50% | | By Region | | | | | Overseas | -0.50% | -5.29% | 3.50% | | Domestic | -30.33% | -23.57% | -8.48% | - There were no significant changes in the company's profit composition or sources of profit during the reporting period[65] Analysis of Non-Principal Business Non-principal business significantly impacted total profit, with investment income from wealth management, negative fair value changes from foreign exchange derivatives, and increased asset impairment from inventory Impact of Non-Principal Business on Total Profit | Item | Amount (RMB) | Proportion of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Investment Income | 12,778,556.36 | 9.29% | Primarily from wealth management product investment income | | Gains or Losses from Changes in Fair Value | -42,111,943.37 | -30.62% | Primarily due to changes in fair value of foreign exchange derivative financial instruments | | Asset Impairment | -29,073,699.15 | -21.14% | Primarily due to increased inventory balance, leading to increased provision for inventory depreciation | | Non-operating Income | 1,146,324.11 | 0.83% | Primarily from insurance claims and write-off of unpayable amounts | | Non-operating Expenses | -6,049,849.73 | -4.40% | Primarily due to donation expenses and asset write-offs | | Credit Impairment Losses | 7,321,590.02 | 5.32% | Primarily due to reversal from decreased long-aged accounts receivable and decreased accounts receivable financing | Analysis of Assets and Liabilities Total assets increased by 10.17% and net assets by 8.22%, with significant increases in cash and accounts receivable, and a substantial rise in short-term borrowings Significant Changes in Asset Composition | Item | Amount at End of Current Period (RMB) | Proportion of Total Assets | Amount at End of Prior Year (RMB) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 3,617,512,646.37 | 34.92% | 2,653,495,384.90 | 28.22% | 6.70% | Primarily due to cash inflows from financing and operating activities | | Accounts Receivable | 1,653,846,217.39 | 15.96% | 1,316,558,698.46 | 14.00% | 1.96% | Primarily due to increased sales at period-end | | Inventories | 2,432,677,872.55 | 23.48% | 2,220,087,969.14 | 23.61% | -0.13% | No significant change | | Short-term Borrowings | 1,893,214,503.12 | 18.27% | 1,073,120,303.39 | 11.41% | 6.86% | Primarily due to new borrowings in the current period | | Long-term Borrowings | 443,652,657.53 | 4.28% | 779,103,670.54 | 8.29% | -4.01% | Primarily due to repayment of long-term borrowings in the current period | - As of the end of the reporting period, the company's total assets amounted to 10,359,721,615.94 RMB, and net assets attributable to shareholders of the listed company were 4,736,719,760.75 RMB[24] - As of the end of the reporting period, cash and bank balances with restricted ownership or usage rights amounted to 1,057,615,884.83 RMB, primarily used for deposits, pledged borrowings, export tax refund accounts, and judicial freezes[76] Investment Analysis Total investment increased by 65.93%, involving the use of raised funds and derivative investments, with some projects delayed and idle funds used for cash management and temporary working capital - Total investment for the reporting period was 1,774,391,531.95 RMB, a 65.93% increase compared to the same period last year[77] - As of June 30, 2025, the company had cumulatively used 1,933.0254 million RMB of raised funds, with 1,708.4070 million RMB remaining unused[83] - The expected usable dates for some fundraising projects (annual production of 5 million new energy garden machinery intelligent manufacturing base project, annual production of 30,000 new energy autonomous lawnmowers and 50,000 robotic lawnmowers manufacturing project, new energy intelligent garden machinery R&D center project) have been extended to December 31, 2025[86] - The company used a portion of idle raised funds to temporarily supplement working capital, with a balance of 1,375,000,000.00 RMB as of June 30, 2025[88] - The company's derivative investments for hedging purposes resulted in a total actual loss of 9.5232 million RMB during the reporting period[95] 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[99] - The company did not dispose of significant equity during the reporting period[100] Analysis of Major Holding and Participating Companies This section presents financial data for Aegis (Hong Kong) Limited, a major subsidiary, and notes the establishment of GREENWORKS TRADING DEVELOPMENT COMPANY LIMITED Major Subsidiary Financial Data (Aegis (Hong Kong) Limited) | Indicator | Amount (RMB 10,000) | | :--- | :--- | | Total Assets | 35,559.58 | | Net Profit | 1,385.63 | - During the reporting period, the company invested in and established GREENWORKS TRADING DEVELOPMENT COMPANY LIMITED[102] Information on 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[102] Risks Faced by the Company and Countermeasures The company faces risks from exchange rate fluctuations, raw material prices, trade friction, and inventory, addressed by global expansion, supply chain optimization, and risk hedging - The company faces exchange rate fluctuation risks and will strengthen overseas layout and settlement control to hedge and mitigate the impact[102] - The company faces trade friction risks and has built a global production synergy network (US + Vietnam + China), established a professional policy research team, increased R&D investment, and formed strategic cooperation mechanisms with core customers[103][104] - The company faces risks of large inventory scale and inventory impairment and will optimize sales forecasts, improve production-demand matching, monitor inventory through digital systems, and promptly dispose of slow-moving items[107][108] - The company faces risks of slowing operating performance growth and will continue to increase R&D investment, keep pace with industry technological changes, strengthen industry-academia-research cooperation, and optimize production capacity layout[108] Registration Form for Research, Communication, and Interview Activities During the Reporting Period During the reporting period, the company engaged in online investor communication activities, discussing business development and disclosing relevant records - On May 15, 2025, the company participated in an online investor communication event via Panorama Network's "Investor Relations Interactive Platform," discussing the company's business development[111] - On May 26, 2025, the company hosted institutional investors, including Guojin Securities and CICC, through an online platform, discussing the company's business development[111] 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 during the reporting period - The company has not formulated a market value management system[112] - The company has not disclosed a valuation enhancement plan[112] Implementation of "Quality and Return Dual Enhancement" Action Plan The company actively implements its "Quality and Return Dual Enhancement" action plan, focusing on core business, standardized operations, improved information disclosure, and shareholder returns, including share repurchases - The company has disclosed its "Announcement on the 'Quality and Return Dual Enhancement' Action Plan," focusing on core business, standardized operations, information disclosure, and investor returns[113] - The company strengthens communication with investors through diversified channels such as general meetings, online performance briefings, and SZSE Interactive Easy, enhancing understanding and recognition[114] - The company completed the repurchase and cancellation of 7,835,100 shares, with a total repurchase amount of 102,336,952.05 RMB, changing the total share capital from 490,292,174 shares to 482,457,074 shares[115] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, and senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period[118] Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period The company plans no cash dividend distribution, bonus shares, or capital reserve conversion to share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[119] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company continues to implement 2020 and 2024 stock option incentive plans, with some 2020 options canceled and 2024 options newly granted; no other employee incentive measures were in place - The second tranche of the 2020 stock option incentive plan involved 1.032631 million shares, listed on December 6, 2024[123] - A total of 4.810608 million stock options from the 2020 plan were canceled due to employee departures, unexercised options, and failure to meet company-level performance targets[124][125] - The 2024 stock option incentive plan initially granted 9.202580 million stock options at an exercise price of 12.25 RMB/share to 192 registered individuals[127] Environmental Information Disclosure The company and its key subsidiaries are listed as legally required environmental information disclosure enterprises, with reports available on the designated system - The company and its main subsidiaries, Greenworks (Jiangsu) Co., Ltd. and Changzhou Bokang Electronic Technology Co., Ltd., have been included in the list of enterprises required to disclose environmental information by law[129] - Enterprise environmental information disclosure reports can be queried on the "Enterprise Environmental Information Disclosure System (Jiangsu)"[129] Social Responsibility The company actively fulfills social responsibilities by protecting shareholder rights, ensuring employee welfare, promoting environmental protection, and achieving ISO 14001 and ISO 50001 certifications - The company strictly adheres to laws and regulations, operates compliantly, effectively safeguards the legitimate rights and interests of all shareholders, especially small and medium-sized shareholders, and strictly fulfills information disclosure obligations[130] - The company upholds a "people-oriented" philosophy, continuously optimizing its compensation and benefits system and career development pathways, strengthening safety production standards, and ensuring employee occupational health[130] - The company adheres to a green and low-carbon development philosophy, actively promoting energy conservation, emission reduction, clean production, and circular utilization, and holds ISO 14001 environmental management system certification and ISO 50001 energy management system certification[131] Significant Matters Fulfillment of Commitments by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period and Overdue Unfulfilled Commitments at Period-End All commitments by the company's actual controller, shareholders, related parties, acquirers, and the company were fulfilled during the reporting period, with no overdue unfulfilled commitments - During the reporting period, there were no unfulfilled commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself, nor any overdue unfulfilled commitments at the end of the reporting period[133] Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties There was no non-operating fund occupation by controlling shareholders or other related parties of the listed company during the reporting period - During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the listed company[134] 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[135] Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[136] Board of Directors, Supervisory Board, and Audit Committee's Explanation of "Non-Standard Audit Report" for This Reporting Period As there was no non-standard audit report for this period, the board, supervisory board, and audit committee have no explanation to provide - There was no non-standard audit report for the company during the reporting period[137] Board of Directors' Explanation of "Non-Standard Audit Report" for the Previous Year As there was no non-standard audit report for the previous year, the board of directors has no explanation to provide - There was no non-standard audit report for the company in the previous year[137] Bankruptcy and Reorganization Matters The company had no bankruptcy or reorganization matters during the reporting period - The company had no bankruptcy or reorganization matters during the reporting period[137] Litigation Matters Reports indicate no significant litigation or arbitration, but the company was involved in intellectual property lawsuits as plaintiff and other lawsuits as defendant - The company had no significant litigation or arbitration matters during this reporting period[138] - As a plaintiff, the company was involved in 8 domestic and 10 European intellectual property lawsuits, with a total amount involved of 184.377 million RMB[139] - As a defendant, the company was involved in 24 domestic and 21 US other lawsuits or arbitrations, with a total amount involved of 83.707 million RMB[139] 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[140] Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers The company, its controlling shareholders, and actual controllers had no integrity issues, such as unfulfilled court judgments or overdue large debts, during the reporting period - During the reporting period, the company, its controlling shareholders, and actual controllers had no integrity issues, such as unfulfilled effective court judgments or overdue large debts[141] Significant Related Party Transactions The company engaged in daily related party transactions with STIHL Holding AG & Co. KG controlled entities, totaling 47.004 million RMB, within the approved annual limit, with no other major related party transactions Daily Related Party Transactions (Current Period Amount) | Related Party | Type of Related Party Transaction | Current Period Transaction Amount (RMB 10,000) | Approved Transaction Limit (RMB 10,000) | | :--- | :--- | :--- | :--- | | STIHL Incorporated | Sales to related party | 544.47 | 3,500 | | STIHL Tirol GmbH | Sales to related party | 4,036.52 | 5,500 | | ANDREAS STIHL AG & Co. KG | Sales to related party | 92.06 | 850 | | Andreas Stihl Power Tools (Qingdao) Co., Ltd. | Sales to related party | 17.44 | 60 | | STIHL Tirol GmbH, STIHL Incorporated | Provision of data services to related party | 0 | 200 | | ANDREAS STIHL AG & Co. KG | Purchase of goods from related party | 9.4 | 15 | | STIHL Tirol GmbH | Purchase of goods from related party | 0 | 5 | | Andreas Stihl Power Tools (Qingdao) Co., Ltd. | Purchase of goods from related party | 0.51 | 5 | | Total | | 4,700.40 | 10,135.00 | - The company had no related party transactions involving asset or equity acquisition/disposal during the reporting period[146] - The company had no non-operating related party creditor-debtor transactions during the reporting period[148] Significant Contracts and Their Performance The company had no significant entrustment, contracting, leasing, or guarantee matters during the reporting period, and its daily operating contracts were performed normally without major risks - The company had no entrustment, contracting, or leasing situations during the reporting period[152][153][154] - The company and its subsidiaries had zero external guarantees and zero guarantees for subsidiaries[156][157] - The company had no other significant contracts during the reporting period[160] Explanation of Other Significant Matters The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[161] Significant Matters of Company Subsidiaries The company's subsidiaries had no significant matters during the reporting period - The company's subsidiaries had no significant matters during the reporting period[162] Share Changes and Shareholder Information Share Change Situation The company's total share capital decreased by 7,835,100 shares due to repurchase and cancellation, changing from 490,292,174 to 482,457,074 shares Share Change Situation (Before vs. After This Change) | Item | Quantity Before This Change (shares) | Proportion | Increase/Decrease in This Change (shares) | Quantity After This Change (shares) | Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 278,021,304 | 56.71% | 0 | 278,021,304 | 57.63% | | II. Unrestricted Shares | 212,270,870 | 43.29% | -7,835,100 | 204,435,770 | 42.37% | | III. Total Shares | 490,292,174 | 100.00% | -7,835,100 | 482,457,074 | 100.00% | - The reason for the share change was the company's cumulative repurchase and cancellation of 7,835,100 shares on May 22, 2025, and May 28, 2025, respectively[167][169] - After the cancellation of these repurchased shares, the company's total share capital changed from 490,292,174 shares to 482,457,074 shares, and unrestricted shares changed from 212,270,870 shares to 204,435,770 shares[168][169] 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[174] Number of Shareholders and Shareholding Structure At period-end, the company had 28,550 common shareholders. Controlling shareholder GLOBE HOLDINGS (HONG KONG) CO., LIMITED held 52.98%, and actual controller Chen Yin held 57.10% directly and indirectly - At the end of the reporting period, the total number of common shareholders was 28,550[176] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-End (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | GLOBE HOLDINGS (HONG KONG) CO., LIMITED | Overseas Legal Person | 52.98% | 255,598,466 | 255,598,466 | 0 | | JUNMA ENTERPRISE LIMITED | Overseas Legal Person | 18.82% | 90,790,870 | 0 | 90,790,870 | | Chen Yin | Domestic Natural Person | 3.92% | 18,932,632 | 18,232,632 | 700,000 | - As of the end of the reporting period, Mr. Chen Yin is the company's actual controller, chairman, and general manager, directly holding 3.92% of the company's shares and indirectly holding 53.18% through related parties, totaling 57.10% of the shares[177] Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's 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 during the reporting period[178] Changes in Controlling Shareholder or Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[179] - The company's actual controller did not change during the reporting period[179] Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[180] Bond-Related Information Bond-Related Information The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[182] Financial Report Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[184] Financial Statements This section presents the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity as of June 30, 2025 Consolidated Balance Sheet (Period-End Balance) | Item | Amount (RMB) | | :--- | :--- | | Cash and Bank Balances | 3,617,512,646.37 | | Trading Financial Assets | 0.00 | | Derivative Financial Assets | 2,335,180.00 | | Accounts Receivable | 1,653,846,217.39 | | Inventories | 2,432,677,872.55 | | Total Current Assets | 8,148,538,763.58 | | Fixed Assets | 1,071,734,132.56 | | Total Assets | 10,359,721,615.94 | | Short-term Borrowings | 1,893,214,503.12 | | Derivative Financial Liabilities | 1,845,920.76 | | Notes Payable | 577,478,972.50 | | Total Liabilities | 5,623,471,509.12 | | Share Capital | 482,457,074.00 | | Total Equity Attributable to Parent Company Shareholders | 4,736,719,760.75 | | Total Liabilities and Equity | 10,359,721,615.94 | Consolidated Income Statement (First Half of 2025) | Item | Amount (RMB) | | :--- | :--- | | I. Total Operating Revenue | 2,976,741,010.96 | | II. Total Operating Costs | 2,787,444,308.03 | | III. Operating Profit | 142,435,612.18 | | IV. Total Profit | 137,532,086.56 | | V. Net Profit | 132,873,362.79 | | Net Profit Attributable to Parent Company Shareholders | 132,697,706.29 | | VI. Net Other Comprehensive Income After Tax | 233,384,620.18 | | VII. Total Comprehensive Income | 366,257,982.97 | | VIII. Earnings Per Share (Basic/Diluted) | 0.27 | Consolidated Cash Flow Statement (First Half of 2025) | Item | Amount (RMB) | | :--- | :--- | | I. Net Cash Flow from Operating Activities | 224,944,787.59 | | II. Net Cash Flow from Investing Activities | -382,315,224.64 | | III. Net Cash Flow from Financing Activities | 241,315,411.66 | | IV. Effect of Exchange Rate Changes on Cash and Cash Equivalents | 163,762,727.55 | | V. Net Increase in Cash and Cash Equivalents | 247,707,702.16 | | VI. Cash and Cash Equivalents at Period-End | 2,183,676,432.40 | Company Basic Information Greenworks (Jiangsu) Co., Ltd., established in 2002 and listed in 2023, manufactures and sells power tools and garden tools, with Chen Yin as the actual controller - Greenworks (Jiangsu) Co., Ltd. was established on July 2, 2002, and listed on the ChiNext board of the Shenzhen Stock Exchange on February 8, 2023[220] - On May 28, 2025, the company completed the cancellation of 7,835,100 repurchased shares, changing its total share capital to 482,457,074.00 RMB[221] - The company and its subsidiaries primarily engage in the manufacturing and sales of power tools, hand tools, garden tools, air compressors, cleaning machines, generators, off-road vehicles, and home appliance accessories[222] - The actual controller of the Group is Mr. Chen Yin[223] Basis of Financial Statement Preparation These financial statements are prepared in accordance with Chinese Accounting Standards and relevant disclosure rules, presented on a going concern basis - These financial statements are prepared in accordance with the "Enterprise Accounting Standards" promulgated by the Ministry of Finance and "Information Disclosure and Compilation Rules for Companies Issuing Securities No. 15"[225] - These financial statements are presented on a going concern basis[226] Significant Accounting Policies and Accounting Estimates This section details the company's accounting policies and estimates for financial instruments, inventory, fixed assets, revenue recognition, and other areas, highlighting management's key judgments and uncertainties - The Group has formulated specific accounting policies and estimates based on its actual production and operation characteristics, mainly reflected in bad debt provisions for receivables, inventory valuation methods, depreciation of fixed assets, amortization of intangible assets, and revenue recognition and measurement[227] - Financial assets are classified at initial recognition based on the business model for managing financial assets and contractual cash flow characteristics as measured at amortized cost, fair value through other comprehensive income, or fair value through profit or loss[248] - The Group recognizes revenue when it satisfies a performance obligation in the contract, i.e., when the customer obtains control of the related goods or services, including domestic sales, export sales, and overseas warehouse delivery sales models[302][303][304][305][306] - Management makes significant judgments and estimates regarding contingent liabilities, business models, contractual cash flow characteristics, lease terms, impairment of financial instruments, impairment of non-current assets, fair value of financial instruments, development expenditures, deferred income tax assets, inventory depreciation provisions, quality assurance, and lessee incremental borrowing rates[321][322][323][324][327][328][329][330][331][332][333][334] Taxes This section discloses the company's main tax types and rates, including VAT and corporate income tax, with various preferential tax policies for high-tech enterprises and overseas subsidiaries Main Tax Types and Rates | Tax Type | Tax Rate | | :--- | :--- | | Value-Added Tax | 13%, 6%, 0%, 25%, 19%, 22%, 20%, 7%, 5%, 13%-15%, 10% | | Urban Maintenance and Construction Tax | 7% | | Corporate Income Tax | 15%, 25%, 20%, 21%, 20.6%, 15.825%, 27%, 16.5%, 27.9%, 17% | - As a high-tech enterprise, the company is subject to a corporate income tax rate of 15% from 2024 to 2026[347] - Vietnamese subsidiaries like GREENWORKS (VIETNAM) COMPANY LIMITED enjoy a reduced corporate income tax rate of 10% for 15 years, coupled with a "four-year exemption, five-year half reduction" preferential policy[348] - Hong Kong subsidiaries Hong Kong Sun Rise Trading Limited and Aegis (Hong Kong) Limited enjoy Hong Kong profits tax exemption for qualifying offshore business profits[349] Notes to Consolidated Financial Statement Items This section provides detailed notes on consolidated financial statement items, including cash, receivables, inventory, fixed assets, borrowings, share capital, and capital reserves, explaining period-end balances and changes - Cash and bank balances at period-end amounted to 3,617,512,646.37 RMB, of which 1,057,615,884.83 RMB were restricted[351] - Accounts receivable book value at period-end was 1,653,846,217.39 RMB, with a bad debt provision of 51,643,277.19 RMB[359] - Inventory book value at period-end was 2,432,677,872.55 RMB, with an inventory depreciation provision of 177,873,376.12 RMB[402] - Fixed assets book value at period-end was 1,071,734,132.56 RMB[411] - Short-term borrowings at period-end were 1,893,214,503.12 RMB, and long-term borrowings were 443,652,657.53 RMB[439][469] - Share capital at period-end was 482,457,074.00 RMB, reduced by 7,835,100 shares due to share repurchase and cancellation[476] - Operating revenue for the first half of 2025 was 2,976,741,010.96 RMB, and operating cost was 2,072,544,824.10 RMB[489] - Financial expenses for the first half of 2025 were -108,161,198.16 RMB, primarily due to increased fixed deposit interest income and exchange gains[500] Research and Development Expenses Total R&D expenses for the reporting period were 125,289,369.98 RMB, entirely expensed, primarily comprising personnel, direct input, and consulting service fees - Total R&D expenses for the current period were 125,289,369.98 RMB[536] - All R&D expenses were expensed, with zero capitalized R&D expenses[536] R&D Expense Composition (Current Period Amount) | Item | Amount (RMB) | | :--- | :--- | | Personnel Costs | 86,640,099.65 | | Direct Input Costs | 16,040,049.11 | | Consulting Service Fees | 10,258,419.28 | | Depreciation and Amortization Expenses | 5,491,257.32 | | Other Expenses | 6,408,555.42 | Changes in Consolidation Scope The consolidation scope changed due to the investment and establishment of GREENWORKS TRADING DEVELOPMENT COMPANY LIMITED during the reporting period - GREENWORKS TRADING DEVELOPMENT COMPANY LIMITED was established in Thai Binh, Vietnam, on April 26, 2025, leading to a change in the consolidation scope[537] Interests in Other Entities This section lists the company's major subsidiaries, including their registered capital, principal place of business, nature of business, and 100% direct or indirect shareholding - The company owns Changzhou Bokang Electronic Technology Co., Ltd., GREENWORKS (VIETNAM) COMPANY LIMITED, GREENWORKS (THAI BINH) COMPANY LIMITED, and other domestic and overseas subsidiaries[539][540] - The company holds 100% direct or indirect equity in all listed subsidiaries[539][540] Government Grants Total government grants for the reporting period were 3,512,958.83 RMB, with asset-related grants of 83,333.34 RMB and income-related grants of 3,429,625.49 RMB recognized in other income - Total government grants recognized in current profit or loss for this period amounted to 3,512,958.83 RMB[501] Government Grants Recognized in Current Profit or Loss | Accounting Item | Current Period Amount (RMB) | | :--- | :--- | | Asset-related government grants recognized in other income | 83,333.34 | | Income-related government grants recognized in other income | 3,429,625.49 | Risks Related to Financial Instruments The company manages credit, liquidity, and market risks (interest rate, exchange rate) through credit limits, monitoring, diversified investments, interest rate swaps, and forward foreign exchange contracts - The Group faces credit risk, liquidity risk, and market risk (interest rate risk, exchange rate risk) in its daily activities[544] - Credit risk management measures include transacting only with reputable third parties, setting customer credit exposure limits, continuously monitoring accounts receivable balances, and entering into short-term export credit insurance contracts[546][549] - Liquidity risk is managed by utilizing various financing methods to maintain a balance between financing continuity and flexibility[554] - Interest rate risk is managed by closely monitoring interest rate changes and using interest rate swaps, with approximately 86.36% of interest-bearing borrowings bearing fixed interest rates[557] - Exchange rate risk is hedged by entering into forward foreign exchange contracts and foreign exchange option contracts[559] Disclosure of Fair Value This section discloses the fair value of assets and liabilities measured at fair value at period-end, primarily derivative financial instruments, and the valuation techniques and parameters used Fair Value of Assets and Liabilities Measured at Fair Value at Period-End | Item | Fair Value at Period-End (RMB) | | :--- | :--- | | (I) Trading Financial Assets | 2,335,180.00 | | (3) Derivative Financial Assets | 2,335,180.00 | | (VI) Trading Financial Liabilities | 1,845,920.76 | | Derivative Financial Liabilities | 1,845,920.76 | - For financial instruments not traded in an active market, the Group uses valuation techniques such as the discounted cash flow model to determine their fair value, with key inputs including risk-free rates, discount rates, and forward exchange rates[566] Related Parties and Related Party Transactions The company's parent is GLOBE HOLDINGS (HONG KONG) CO., LTD., with Chen Yin as the ultimate controlling party. Related party transactions with STIHL entities totaled 47.004 million RMB, and key management personnel compensation was 3,379,631.71 RMB - The Group's parent company is GLOBE HOLDINGS (HONG KONG) CO., LTD., and the ultimate controlling party is Mr. Chen Yin[568] Related Party Transactions for Purchase and Sale of Goods, Provision and Acceptance of Services (Current Period Amount) | Related Party | Related Party Transaction Content | Current Period Amount (RMB) | | :--- | :--- | :--- | | Stihl Tirol GMBH | Garden Machinery | 40,365,199.62 | | STIHL Incorporated | Garden Machinery | 5,444,691.84 | | ANDREAS STIHL AG & Co. KG | Garden Machinery | 920,573.42 | | Andreas Stihl Power Tools (Qingdao) Co., Ltd. | Garden Machinery | 174,391.93 | | ANDREAS STIHL AG & Co. KG | Purchase of component raw materials | 94,000.00 | | Andreas Stihl Power Tools (Qingdao) Co., Ltd. | Purchase of component raw materials | 5,100.00 | - Key management personnel compensation for the current period amounted to 3,379,631.71 RMB[575] Share-Based Payment The company implements 2020 and 2024 stock option plans, with 4.810608 million 2020 options canceled and 9.202580 million 2024 options granted. Equity-settled share-based payment expenses totaled 5,158,954.68 RMB - The company implements the 2020 and 2024 stock option incentive plans[582][584]