方正科技(600601) - 2025 Q2 - 季度财报

Important Notice This section confirms the report's truthfulness, states its unaudited status, and warns investors about forward-looking statements and risks Overview of Important Notice This overview confirms the semi-annual report's truthfulness, states its unaudited status, and warns investors about forward-looking statements - The board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, with no false records, misleading statements, or major omissions, and bear individual and joint legal responsibility[3] - This semi-annual report is unaudited[5] - Company head Chen Hongliang, chief accountant Zhou Lin, and accounting department head Zhou Lin declare: they guarantee the truthfulness, accuracy, and completeness of the financial report in the semi-annual report[5] - Forward-looking descriptions in this report, such as future plans and development strategies, do not constitute a substantial commitment by the company to investors; investors are advised to be aware of investment risks[6] - The company has no non-operating fund occupation by controlling shareholders or other related parties, nor does it provide external guarantees in violation of prescribed decision-making procedures[7] Section I Definitions This section defines common terms, including company names, related parties, regulatory bodies, reporting period, and key technical terms Definitions of Common Terms This section defines common terms, including company names, related parties, regulatory bodies, reporting period, and key technical terms - Defines "Founder Technology," "the Company," and "Company" as Founder Technology Group Co., Ltd[12] - Lists major related parties, such as Huanxin Fangke, Huafa Technology, Huafa Group, Shenghong Technology, Xianghong Real Estate, Founder Group, and China Ping An[12] - Explains PCB industry technical terms, including PCB (Printed Circuit Board), HDI (High-Density Interconnect Board), AI (Artificial Intelligence), FVS (Founder Via Segmentation Technology), Z-axis interconnection, UHD (Ultra-High-Density Interconnection Technology), Cavity (local depression), and mSAP (Modified Semi-Additive Process)[12][13] Section II Company Profile and Key Financial Indicators This section provides company information, contact details, stock overview, and key financial data and indicators Company Information This section provides the company's Chinese name, abbreviation, foreign name, and legal representative information - Company Chinese name: 方正科技集团股份有限公司 (Founder Technology Group Co., Ltd.), Abbreviation: 方正科技 (Founder Technology)[15] - Legal Representative: Chen Hongliang[15] Contact Person and Information This section provides contact details for the Board Secretary and Securities Affairs Representative - Board Secretary: Liang Jiaqing, Securities Affairs Representative: Dai Jidong[16] - Contact Address: 9th Floor, K Block, Huamin Han Zun International Building, 726 Yan'an West Road, Changning District, Shanghai[16] - Email: IR@foundertech.com[16] Brief Introduction to Changes in Basic Information This section discloses the company's registered and office addresses, stating no changes occurred during the reporting period - Company Registered Address: 9th Floor, Kerry Business Center, 1515 Nanjing West Road, Shanghai[17] - Company Office Address: 9th Floor, K Block, Huamin Han Zun International Building, 726 Yan'an West Road, Changning District, Shanghai[17] Brief Introduction to Changes in Information Disclosure and Document Storage Locations This section lists selected newspapers for information disclosure, the website for semi-annual reports, and report availability location - Company's selected newspapers for information disclosure: "Shanghai Securities News," "China Securities Journal," "Securities Times"[18] - Website for semi-annual report: www.sse.com.cn[18](index=18&type=chunk) Company Stock Profile This section provides information on the company's A-share listing exchange, stock abbreviation, and stock code - Stock Type: A-share, Listing Exchange: Shanghai Stock Exchange, Stock Abbreviation: Founder Technology, Stock Code: 600601[19] Company's Key Accounting Data and Financial Indicators This section details key accounting data and financial indicators, showing revenue and net profit growth but decreased operating cash flow 2025 Semi-Annual Key Accounting Data | Indicator | Current Period (Jan-Jun) (Yuan) | Prior Period (Yuan) | Period-on-Period Change (%) | | :--------------------------------- | :------------------- | :------------------- | :------------- | | Operating Revenue | 2,140,036,332.30 | 1,578,154,991.82 | 35.60 | | Total Profit | 195,783,665.40 | 163,284,875.81 | 19.90 | | Net Profit Attributable to Shareholders of Listed Company | 172,565,377.28 | 149,679,526.86 | 15.29 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses | 164,666,547.67 | 114,528,483.93 | 43.78 | | Net Cash Flow from Operating Activities | 174,021,623.96 | 449,183,970.42 | -61.26 | | Net Assets Attributable to Shareholders of Listed Company (End of Period) | 4,281,074,889.60 | 4,116,096,545.51 | 4.01 | | Total Assets (End of Period) | 8,029,090,266.94 | 7,069,108,924.48 | 13.58 | 2025 Semi-Annual Key Financial Indicators | Indicator | Current Period (Jan-Jun) | Prior Period | Period-on-Period Change (%) | | :--------------------------------- | :--------------- | :--------------- | :----------------- | | Basic Earnings Per Share (Yuan/share) | 0.0414 | 0.0359 | 15.32 | | Diluted Earnings Per Share (Yuan/share) | 0.0414 | 0.0359 | 15.32 | | Basic Earnings Per Share After Deducting Non-recurring Gains and Losses (Yuan/share) | 0.0395 | 0.0275 | 43.64 | | Weighted Average Return on Net Assets (%) | 4.1101 | 3.8158 | Increase of 0.2943 percentage points | | Weighted Average Return on Net Assets After Deducting Non-recurring Gains and Losses (%) | 3.9220 | 2.9197 | Increase of 1.0023 percentage points | - Non-recurring gains and losses totaled 7,898,829.61 yuan, primarily including non-current asset disposal gains/losses, government subsidies, fair value changes and disposal gains/losses of financial assets and liabilities, and debt restructuring gains/losses[22][23] Section III Management Discussion and Analysis This section discusses the company's industry, main business, operational performance, core competitiveness, and significant operational changes and risks Explanation of the Company's Industry and Main Business During the Reporting Period This section describes the company's PCB business, its applications, industry importance, and structural growth driven by AI technology - Company's main business is PCB product design, R&D, manufacturing, and sales, including HDI, multi-layer boards, rigid-flex boards, and other customized PCBs[26] - Company's PCB products are widely applied in communication equipment, consumer electronics, optical modules, servers and data storage, automotive electronics, digital energy, and industrial control medical fields[26] - According to CPCA's "2024 China Electronic Circuit Industry Key Enterprise Revenue" ranking, the company's PCB business ranks 29th in the comprehensive PCB100 list and 16th in the domestic PCB100 list[26] - PCB is known as the "mother of electronic system products," and its industry development level is a key indicator of a country's or region's electronic information industry development speed and technical standard[26] - Deep innovation in artificial intelligence technology drives the scaled expansion of computing infrastructure, leading to a surge in demand for high-performance PCBs in data centers, pushing the global PCB industry towards high-frequency, high-speed, high-density, and high-multi-layer directions[26] - According to Prismark's forecast, the PCB market will see a 7.6% year-on-year growth in 2025, with a projected compound annual growth rate of 5.2% for global PCB output value from 2024-2029[27] - From a product structure perspective, high-multi-layer boards of 18 layers and above, HDI boards, and packaging substrates are expected to maintain relatively high growth rates, with projected average annual compound growth rates of 15.7%, 6.4%, and 7.4% respectively over the next five years[27] - AI computing clusters, optical communication systems, new-generation communication equipment, and smart terminals are forming long-term growth engines for the PCB industry[29] Discussion and Analysis of Operations The company capitalized on AI market opportunities, achieved high-value PCB breakthroughs, strengthened its team, and launched a Thailand base, driving revenue and net profit growth - The company seized market opportunities arising from technological innovation in artificial intelligence-related fields, focusing on application areas such as AI servers, optical modules, and switches, and cultivating businesses like autonomous driving, robotics, and satellite communication[30] - The company plans to invest in the "Artificial Intelligence and Computing High-Density Interconnection Circuit Board Industrial Base Project" to accelerate entry into high-value-added markets and promote technological upgrades[31] - The company achieved technological breakthroughs in Z-axis interconnection, mass production of ≥40-layer ultra-high-layer boards, UHD high-density interconnection, FVS fine line processing, multi-stage Cavity, and mSAP processes, consolidating its technological leadership[31] - The company strengthened its core team through equity incentives, enhanced cost control, and promoted the operation of its Thailand production base, improving global delivery capabilities and risk hedging abilities[31] - During the reporting period, the company achieved operating revenue of 2.14 billion yuan, a year-on-year increase of 35.60%; net profit attributable to company shareholders was 173 million yuan, a year-on-year increase of 15.29%[31] Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness stems from leading technology, strong customer relationships, efficient production management, and recognized brand service - The company has long focused on high-multi-layer and HDI board technology, possessing industry-leading R&D and manufacturing capabilities, especially ranking among the top in China for HDI products[32] - The company successfully developed FVS technology (significantly increasing wiring density and effectively reducing signal loss) and Z-axis interconnection technology (achieving multi-PCB stack interconnection)[32] - The company has achieved mass production capabilities for UHD, Cavity, mSAP, stepped gold fingers, special heat dissipation, energy thick copper, and high-end optical modules[32] - The company's PCB business has a strong customer base, primarily serving mid-to-high-end customers in global PCB downstream application fields, with stable and long-term cooperative relationships[33] - The company established mature production bases in Zhuhai and Chongqing, and invested in the Founder Technology (Thailand) Smart Manufacturing Base Project, which has entered trial production, enhancing global delivery and risk resistance capabilities[33] - The company significantly improved production process visualization and management efficiency through optimizing intelligent manufacturing systems like ERP, APS, MES, QMS, WMS, EM, and EAP, and achieved automated logistics connections[34] - The company has long focused on R&D and manufacturing of high-multi-layer and HDI products, accumulating a brand foundation in communication equipment and smart terminals, and establishing a comprehensive customer service system[34][35] Main Operating Conditions During the Reporting Period This section analyzes main operating conditions, including financial statement variations, asset-liability changes, and investment progress - Operating revenue increased by 35.60% year-on-year, mainly due to improved PCB business structure leading to higher revenue[37] - Net cash flow from operating activities decreased by 61.26% year-on-year, primarily due to increased payments to suppliers in the current period[37] - Net cash flow from investing activities was -674,045,341.34 yuan, mainly due to increased cash payments for the acquisition of fixed assets, intangible assets, and other long-term assets[37] - Net cash flow from financing activities increased by 168.42% year-on-year, mainly due to reduced cash payments for debt repayment compared to the same period last year[37] - End-of-period notes receivable balance increased by 88.66% year-on-year, mainly due to increased bill settlements[38] - End-of-period inventory balance increased by 35.48% year-on-year, mainly due to increased raw materials and work-in-progress[38] - End-of-period construction in progress balance increased by 45.85% year-on-year, mainly due to the Thailand project[38] - End-of-period long-term borrowings balance increased by 59.44% year-on-year, mainly due to new borrowings for normal operations[38] - Overseas assets totaled 1.053 billion yuan, accounting for 13.11% of total assets[39] - During the reporting period, capital injections into wholly-owned subsidiaries totaled 324 million yuan, including Zhuhai Multi-layer, Zhuhai Chijing, IFOUND PCB (THAILAND) CO.,LTD., and Zhuhai Huanxin[42] - Significant non-equity investments include Zhuhai Founder PCB High-end Intelligent Industrial Base Phase II High-end HDI Project (invested 627 million yuan), Thailand Production Base Project (total investment 1.223 billion yuan, invested 602 million yuan), and AI and Computing High-Density Interconnection Circuit Board Industrial Base Project (estimated total investment 2.131 billion yuan, invested 910,000 yuan)[43] - Foreign exchange hedging settled in the current period resulted in an investment loss of 610,184.50 yuan, fair value change gain of 55,307.03 yuan, totaling a loss of 554,877.47 yuan[46] - During the reporting period, Founder Technology (Singapore) Co., Ltd. was legally deregistered in Singapore[48] Other Disclosures This section discloses six major risks, including macroeconomic, competitive, exchange rate, raw material, technology, and overseas operation risks - The company faces macroeconomic cycle risks, as global economic challenges may reduce demand for electronic products, affecting PCB business[48] - Intensified industry competition risk, with new entrants and accelerated expansion by leading enterprises; failure to implement effective differentiated competition or cost control may adversely affect performance[48] - Exchange rate fluctuation risk, as the company's PCB business revenue is sensitive to the USD/RMB exchange rate, directly impacting raw material costs and export product prices, leading to exchange gains or losses[49] - Raw material supply tension and price fluctuation risk, as copper clad laminates, chemicals, and copper account for a high proportion of product costs, price fluctuations may lead to decreased profitability[50] - Technological innovation risk, as the PCB industry experiences rapid technological updates; failure to keep up with technological developments and increase R&D investment will lead to a market competitive disadvantage[50] - Overseas factory operation risk, as the Thailand production base faces management, operational, and market risks related to laws and regulations, industrial policies, tax systems, labor standards, business practices, and cultural customs[50] Section IV Corporate Governance, Environment and Society This section covers changes in management, profit distribution, equity incentives, and environmental information disclosure Changes in Directors, Supervisors, and Senior Management This section discloses changes in the board of directors, with one director resigning and another elected - Company Director Mr. Qi Zixin resigned from his position on March 7, 2025[53] - Mr. Xu Chengjie was elected as a non-independent director of the 13th Board of Directors after nomination and approval by the shareholders' meeting[53] Profit Distribution or Capital Reserve Conversion Plan This section states that the company's proposed semi-annual profit distribution or capital reserve conversion plan is not applicable - The proposed semi-annual profit distribution or capital reserve conversion plan is not applicable[54] Status and Impact of Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures The company implemented the 2025 Restricted Stock Incentive Plan, approved by Zhuhai SASAC and shareholders, with grant registration completed - The company approved the "2025 Restricted Stock Incentive Plan (Draft)" on June 10, 2025, and it was approved by the shareholders' meeting on July 29, 2025[55] - Zhuhai SASAC has approved the company's implementation of the 2025 Restricted Stock Incentive Plan[55] - On July 29, 2025, the company granted 103.4496 million restricted shares to 225 incentive recipients, with registration completed on August 5, 2025, at China Securities Depository and Clearing Corporation Limited Shanghai Branch[56] Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law This section discloses that three major subsidiaries are included in the list of enterprises required to disclose environmental information by law - Three subsidiaries of the company are included in the list of enterprises required to disclose environmental information by law[57] - Subsidiaries included are Zhuhai Founder Technology High-Density Electronics Co., Ltd., Zhuhai Founder Technology Multi-layer Circuit Board Co., Ltd., and Chongqing Founder High-Density Electronics Co., Ltd[57] Section V Significant Matters This section covers the fulfillment of commitments, significant related party transactions, and major contracts, including guarantees for subsidiaries Fulfillment of Commitments This section details the fulfillment of various commitments by the company, its controlling shareholder, and related parties, all strictly adhered to - Huafa Group, Huafa Technology, Huanxin Fangke, Shenghong Technology, Xianghong Real Estate, and their actual controller Mr. Xu Gangzhang committed to ensuring the independence of the listed company's business, assets, finance, personnel, and organization, and have strictly fulfilled these commitments[60][61] - The aforementioned related parties committed to resolving horizontal competition, not directly or indirectly engaging in businesses identical or similar to the listed company, and prioritizing commercial opportunities for the listed company, which has been strictly fulfilled[61][62][63] - Related parties committed to reducing and regulating related party transactions with the listed company, adhering to market fairness principles, and fulfilling decision-making procedures and information disclosure obligations according to law, which has been strictly fulfilled[62][64] - Huanxin Fangke, Shenghong Technology, and Xianghong Real Estate committed to acting in concert in the company's operation and management, which has been strictly fulfilled[62][63] - Huanxin Fangke committed that the lock-up period for shares subscribed in this issuance is 18 months from the registration date of the new shares under its name[65] - Company directors and senior management committed not to overstep authority in company operations, not to infringe on company interests, and to link compensation systems with return-filling measures, which has been strictly fulfilled[65][66] - Founder Group committed to licensing the company to use "Founder" and "FOUNDER" trademarks indefinitely and free of charge, which has been strictly fulfilled[66] Significant Related Party Transactions This section discloses daily related party transactions and a proposed private placement of A-shares to a related party, awaiting regulatory review - During the reporting period, the company had daily related party transactions with Huafa Group and its affiliates, and Ping An Insurance (Group) Company of China, Ltd. and its affiliates, including purchasing products or services, leasing properties, selling products or providing services, and providing park services[69] - The company has deposit and comprehensive credit line businesses with Zhuhai Huafa Group Finance Co., Ltd., with an end-of-period deposit balance of 737.414 million yuan and a total comprehensive credit line of 510 million yuan[76][78] - The company plans to issue A-shares to specific targets, with controlling shareholder Huanxin Fangke committing to subscribe in cash, with a subscription quantity not exceeding 23.50% of the actual issuance quantity and a subscription amount not exceeding 465 million yuan[79][80] - This private placement constitutes a related party transaction, approved by the company's 2025 First Extraordinary General Meeting on June 27, 2025, and is subject to review by the Shanghai Stock Exchange and approval for registration by the China Securities Regulatory Commission[80][81] Major Contracts and Their Fulfillment This section discloses significant guarantees provided by the company to its subsidiaries, with a substantial total guarantee balance - Total guarantee amount for subsidiaries during the reporting period was 1,152,305,847.22 yuan[84] - Total guarantee balance for subsidiaries at the end of the reporting period was 1,820,416,307.34 yuan, accounting for 42.52% of the company's net assets[84] - Among these, debt guarantees provided directly or indirectly to guaranteed entities with a debt-to-asset ratio exceeding 70% amounted to 446,826,259.69 yuan[84] Section VI Share Changes and Shareholder Information This section details changes in share capital and shareholder structure, including restricted stock incentives and top ten shareholders Changes in Share Capital The company's share capital remained unchanged during the reporting period but increased afterward due to restricted stock grants, slightly diluting per-share metrics - During the reporting period, the company's total share capital and capital structure remained unchanged[86] - On August 5, 2025, the company completed the grant registration of the 2025 Restricted Stock Incentive Plan, increasing the company's total share capital by 103,449,600 shares, which will slightly dilute earnings per share and net assets per share[87] Shareholder Information This section lists top ten shareholders' holdings, including quantity, proportion, lock-up, pledge status, and concerted action relationships - Total number of common shareholders at the end of the reporting period: 216,571 households[88] Top Ten Shareholders' Holdings (Excluding Shares Lent Through Securities Lending) | Shareholder Name (Full Name) | Change During Reporting Period | Shares Held at End of Period | Proportion (%) | Restricted Shares Held | Share Status | Quantity | | :--------------------------------- | :----------- | :----------- | :------- | :----------------------- | :------- | :----- | | Zhuhai Huashi Huanxin Fangke Investment Enterprise (Limited Partnership) | 0 | 980,018,922 | 23.50 | 0 | None | 0 | | Founder Information Industry Co., Ltd. | 0 | 276,333,368 | 6.63 | 0 | None | 0 | | Shenghong Technology (Huizhou) Co., Ltd. | 0 | 228,949,101 | 5.49 | 0 | Pledged | 228,949,101 | | New Founder Holdings Development Co., Ltd. | -7,626,400 | 94,511,991 | 2.27 | 0 | None | 0 | | Founder Technology Group Co., Ltd. Bankruptcy Enterprise Property Disposal Special Account | 0 | 83,023,608 | 1.99 | 0 | None | 0 | | Beijing Founder Interconnect Technology Co., Ltd. | 0 | 46,183,986 | 1.11 | 0 | Pledged | 46,183,986 | | Hunan Xianghong Real Estate Co., Ltd. | 0 | 41,702,933 | 1.00 | 0 | Pledged | 41,702,933 | | China Merchants Bank Co., Ltd. - Southern CSI 1000 ETF Securities Investment Fund | 6,253,000 | 26,939,500 | 0.65 | 0 | Unknown | - | | Hong Kong Securities Clearing Company Limited | -5,872,495 | 26,692,808 | 0.64 | 0 | Unknown | - | | Gao Wenren | -629,884 | 24,927,016 | 0.60 | 0 | Unknown | - | - Zhuhai Huashi Huanxin Fangke Investment Enterprise (Limited Partnership), Shenghong Technology (Huizhou) Co., Ltd., and Hunan Xianghong Real Estate Co., Ltd. are parties acting in concert, collectively holding 1,250,670,956 shares, accounting for 29.99% of the company's total share capital at the end of the reporting period[92] - Founder Information Industry Co., Ltd., New Founder Holdings Development Co., Ltd., and Beijing Founder Interconnect Technology Co., Ltd. are parties acting in concert, collectively holding 417,029,345 shares, accounting for 10.00% of the company's total share capital at the end of the reporting period[92] - 46,183,986 shares of the company held by Beijing Founder Interconnect Technology Co., Ltd. are pledged and frozen, and have entered bankruptcy liquidation proceedings[93] - New Founder Holdings Development Co., Ltd. plans to reduce its holdings by no more than 94,511,991 shares, representing no more than 2.27% of the company's total share capital[94] Section VII Bond-Related Information This section clarifies that the company had no corporate bonds, enterprise bonds, debt financing instruments, or convertible bonds during the reporting period Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments This section states that the company had no corporate bonds or non-financial enterprise debt financing instruments during the reporting period - The company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during the reporting period[98] Convertible Corporate Bonds This section states that the company had no convertible corporate bonds during the reporting period - The company had no convertible corporate bonds during the reporting period[98] Section VIII Financial Report This section presents the company's unaudited semi-annual consolidated and parent company financial statements and detailed notes Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[5][100] Financial Statements This section provides the company's 2025 semi-annual consolidated and parent company financial statements, showing financial position, operating results, and cash flows - Consolidated balance sheet shows that as of June 30, 2025, total assets were 8,029,090,266.94 yuan, total liabilities were 3,748,015,377.34 yuan, and total owner's equity attributable to the parent company was 4,281,074,889.60 yuan[101][102] - Consolidated income statement shows that for the first half of 2025, total operating revenue was 2,140,036,332.30 yuan, total profit was 195,783,665.40 yuan, net profit was 172,565,377.28 yuan, net profit attributable to parent company shareholders was 172,565,377.28 yuan, and basic earnings per share was 0.0414 yuan/share[108][109][110] - Consolidated cash flow statement shows that for the first half of 2025, net cash flow from operating activities was 174,021,623.96 yuan, net cash flow from investing activities was -674,045,341.34 yuan, net cash flow from financing activities was 449,023,048.03 yuan, and net increase in cash and cash equivalents was -51,509,837.07 yuan[116][117] Company Basic Information This section introduces Founder Technology Group Co., Ltd.'s establishment, capital, legal representative, address, business, and consolidated subsidiaries - Founder Technology Group Co., Ltd. was established on January 2, 1985, through public offering approval[129] - Company's registered capital is 4,170,293,287 yuan, increasing to 4,273,742,887 yuan after the reporting period due to equity incentives[129] - Legal Representative: Chen Hongliang, Registered Address: 9th Floor, Kerry Business Center, 1515 Nanjing West Road, Shanghai[129] - The company belongs to the printed circuit board manufacturing industry, with main operating activities being the production and sales of PCB products[130] - As of June 30, 2025, the company had 19 subsidiaries included in the scope of consolidation[130] Basis of Financial Statement Preparation This section states that the company's financial statements are prepared on a going concern basis, in accordance with accounting standards and historical cost - Company financial statements are prepared on a going concern basis, based on actual transactions and events, in accordance with "Accounting Standards for Business Enterprises" issued by the Ministry of Finance and disclosure requirements of CSRC "Information Disclosure Rules for Companies Issuing Securities No. 15 – General Provisions for Financial Reports (Revised 2023)"[131] - Company's accounting is based on the accrual method, and except for certain financial instruments, these financial statements are measured at historical cost[131] - The company has the ability to continue as a going concern for at least 12 months from the end of the reporting period, with no significant matters affecting its going concern ability[132] Significant Accounting Policies and Accounting Estimates This section details the company's significant accounting policies and estimates for business combinations, financial instruments, revenue, inventories, and fixed assets - Financial statements prepared by the company comply with the requirements of enterprise accounting standards, truly and completely reflecting the company's financial position, operating results, changes in shareholders' equity, and cash flows[134] - Company's accounting year runs from January 1 to December 31 of the Gregorian calendar, with 12 months as one operating cycle[135][136] - The company classifies financial assets into three categories based on the business model for managing financial assets and their contractual cash flow characteristics: measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[151] - The company recognizes revenue when customers obtain control of the related goods and determines the progress of performance obligations using the input method or output method based on the nature of the performance obligation[207][208] - Inventories are initially measured at actual cost, and subsequently measured at FIFO or weighted average method when consumed or issued, and at the lower of cost and net realizable value, with provision for inventory impairment[171][172] - Fixed assets are depreciated using the straight-line method: buildings 15-40 years, machinery and equipment 5-15.5 years, electronic and other equipment 2-10 years, transportation equipment 5-10 years[187] - Intangible assets include land use rights, patented technology, non-patented technology, computer software and copyrights, data resources, trademark use rights, and franchise rights, amortized using the straight-line method[194] - The company assesses fixed assets, construction in progress, right-of-use assets, intangible assets with finite useful lives, and other non-current non-financial assets for impairment indicators at the balance sheet date and conducts impairment tests[197] - Government grants are classified as asset-related or income-related, recognized as deferred income and amortized into profit or loss over the asset's useful life, or directly recognized in profit or loss[214][216] Taxes This section lists the company's main tax types and rates, detailing corporate income tax preferential policies for subsidiaries Main Tax Types and Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | VAT | Taxable Value Added | 13.00%, 9.00%, 6.00%, 5.00%, 3.00%, 1.00% (export goods subject to "exemption, credit, refund" policy); Hong Kong and US subsidiaries have no VAT; Thailand subsidiary applies 7% rate | | Urban Maintenance and Construction Tax | Amount of Turnover Tax Payable | 7.00%, 5.00%, 1.00% | | Education Surcharge | Amount of Turnover Tax Payable | 3.00% | | Local Education Surcharge | Amount of Turnover Tax Payable | 2.00%, 1.00% | | Property Tax | House Balance or Rental Income | 1.2% or 12% | | Land Use Tax | Based on Actual Usage Area | 10 yuan/m², 8 yuan/m², 4 yuan/m², 1 yuan/m² | | Corporate Income Tax | Taxable Income | 25.00%, 20.00%, 8.25%, 16.50%, 15.00%, 8.84%, 21% | - Zhuhai Founder Technology High-Density Electronics Co., Ltd., Zhuhai Founder Technology Multi-layer Circuit Board Co., Ltd., Chongqing Founder High-Density Electronics Co., Ltd., and Zhuhai Huanxin Founder Technology Co., Ltd. enjoy a 15% corporate income tax rate preference[233][234] - IFOUND PCB (THAILAND) CO.,LTD. obtained a BOI certificate from the Thailand Board of Investment, qualifying for corporate income tax exemption for up to eight years[235] - Jiangxi Xinlongjia Communication Service Co., Ltd., Shanghai Yanzhong Office Supplies Industrial Co., Ltd., and Shanghai Founder Yanzhong Office Supplies Co., Ltd. enjoy a 20% corporate income tax rate policy for small and micro enterprises[234] Notes to Consolidated Financial Statement Items This section provides detailed notes for each item in the consolidated financial statements, covering cash, receivables, inventories, construction in progress, borrowings, revenue, and costs - End-of-period cash and cash equivalents balance was 1,280,465,842.20 yuan, of which restricted cash was 366,675,393.04 yuan[237][330][412] - End-of-period book value of accounts receivable was 1,247,584,440.70 yuan, with bad debt provision of 453,114,465.15 yuan[252] - End-of-period inventory book value was 820,918,475.59 yuan, with inventory impairment provision of 91,707,284.52 yuan[283] - End-of-period construction in progress book value was 584,039,085.62 yuan, mainly including equipment purchases, renovation projects, Founder Technology (Thailand) Smart Manufacturing Base, and AI and Computing High-Density Interconnection Circuit Board Industrial Base Project[309] - End-of-period long-term borrowings balance was 1,343,393,483.00 yuan, an increase of 59.44% from the beginning of the period[359] - Current period operating revenue was 2,140,036,332.30 yuan, a 35.60% year-on-year increase; operating cost was 1,663,295,100.95 yuan, a 33.14% year-on-year increase[377] - Current period R&D expenses were 89,624,405.28 yuan, a 4.77% year-on-year increase[382] - Current period financial expenses were 3,644,643.38 yuan, compared to -8,341,538.54 yuan in the prior period, mainly due to increased interest expenses year-on-year[383] - Current period asset impairment losses were -40,710,423.56 yuan, compared to 11,276,877.57 yuan in the prior period, mainly due to increased inventory impairment losses and fixed asset impairment losses[391] R&D Expenses This section discloses the company's R&D expenditures, with amounts expensed and capitalized, listing significant capitalized R&D projects - Total R&D expenditure for the current period was 101,474,759.93 yuan, of which expensed R&D expenditure was 89,624,405.28 yuan, and capitalized R&D expenditure was 11,850,354.65 yuan[420] - Significant capitalized R&D projects include Thermalbar new technology development for micro-heat dissipation structures (end-of-period balance 9,712,630.10 yuan) and key technology development and industrialization of high-end communication optical module printed circuit boards (R&D progress: small batch verification, expected completion December 2025, end-of-period balance 10,438,208.64 yuan)[421] Changes in Consolidation Scope This section explains the change in the company's consolidation scope due to the legal deregistration of one subsidiary - During the reporting period, Founder Technology (Singapore) Co., Ltd. was legally deregistered in Singapore[423] Interests in Other Entities This section details the company's enterprise group structure, listing 19 subsidiaries and summarized financial information for associates - The company has 19 subsidiaries, including Zhuhai Founder Technology High-Density Electronics Co., Ltd., Chongqing Founder High-Density Electronics Co., Ltd., Zhuhai Huanxin Founder Technology Co., Ltd., IFOUND PCB (THAILAND) CO., LTD., etc., with direct and indirect shareholdings[426] - Associate Huaxia Zhicheng Co., Ltd. has accumulated unrecognized prior period losses of -1,035,253.34 yuan, unrecognized losses for the current period of -413,660.10 yuan, and accumulated unrecognized losses at the end of the current period of -1,448,913.44 yuan[431] Government Grants This section discloses the company's government grant liability items and grants recognized in profit or loss for the reporting period - Deferred income opening balance was 72,542,305.11 yuan, current period new grants amounted to 4,027,900.00 yuan, current period transferred to other income was 6,161,850.28 yuan, and end-of-period balance was 70,408,354.83 yuan[434] - Total government grants recognized in profit or loss for the current period were 7,548,826.66 yuan, of which 6,147,123.34 yuan were asset-related and 1,401,703.32 yuan were income-related[434] Risks Related to Financial Instruments This section outlines the company's exposure to market, credit, and liquidity risks, and the policies adopted to manage them - The company faces transactional exchange rate risk, managed by entering into forward foreign exchange contracts with financial institutions for hedging[435] - Interest rate risk primarily arises from long-term interest-bearing debts like bank loans; the company determines the relative proportion of fixed-rate and floating-rate contracts based on market conditions[435] - The company's credit risk mainly stems from cash and cash equivalents, and receivables; non-cash monetary funds are primarily deposited with reputable financial institutions, and receivables undergo credit review and aging analysis[436] - As of the end of the period, the total book value of notes receivable, accounts receivable, receivables financing, and other receivables was 29.60% of total assets, mostly within one year, indicating the company does not face significant credit risk[436] - The company has established internal control systems for fund management, regularly prepares rolling cash budgets, and monitors short-term and long-term liquidity needs in real-time, aiming to balance financing continuity and flexibility through bank loans and commercial credit[437] Disclosure of Fair Value This section discloses the fair value of the company's assets and liabilities measured at fair value, categorized by hierarchy levels - Total assets continuously measured at fair value were 35,227,131.99 yuan, including financial assets held for trading of 78,430.00 yuan (Level 1), other equity instrument investments of 125,000.00 yuan (Level 3), and receivables financing of 35,023,701.99 yuan (Level 2)[440] - Total liabilities continuously measured at fair value were 23,122.97 yuan, representing financial liabilities held for trading (Level 1)[441] - Level 1 fair value measurement for items is determined by public quotes from unexpired forward foreign exchange contracts signed with banks[442] - Level 2 fair value measurement for items (bank acceptance bills) uses face value to determine fair value[443] - Level 3 fair value measurement for items (other equity instrument investments) measures Shanghai Baoding Investment Co., Ltd. at investment cost, and Founder Yanzhong Media Co., Ltd. and Tongling Shoukang Urban Cooperative Bank at zero yuan[444] Related Parties and Related Party Transactions This section details the company's related parties and lists related party transactions, including purchases, sales, services, and outstanding balances - The ultimate controlling party of the enterprise is Zhuhai Municipal People's Government State-owned Assets Supervision and Administration Commission; the parent company is Zhuhai Huashi Huanxin Fangke Investment Enterprise (Limited Partnership), holding 23.50% of shares at the end of the reporting period (diluted to 22.93% after the reporting period)[446][129] - Other related parties include indirect controlling shareholder Zhuhai Huafa Technology Industry Group Co., Ltd., controlling shareholder's parent company Zhuhai Huafa Group Co., Ltd., and shareholders and parties acting in concert with the controlling shareholder, Shenghong Technology (Huizhou) Co., Ltd. and Hunan Xianghong Real Estate Co., Ltd[448] - Current period purchases of products or services from Huafa Group and its affiliates totaled 1,806,607.29 yuan, and from Ping An Insurance (Group) Company of China, Ltd. and its affiliates totaled 14,427,358.71 yuan[452] - Current period sales of products or services to Ping An Insurance (Group) Company of China, Ltd. and its affiliates totaled 190,449.36 yuan, and provision of park services totaled 2,134,459.34 yuan[454] - Current period compensation for key management personnel amounted to 4.3792 million yuan[459] - End-of-period bank deposit balance at Zhuhai Huafa Group Finance Co., Ltd. was 737,414,020.50 yuan, and at Ping An Bank Co., Ltd. was 25,623,255.98 yuan[466] Share-based Payment This section states that the company had no share-based payment expenses, modifications, or terminations during the reporting period - No share-based payment expenses during the reporting period[140] - No modifications or terminations of share-based payment during the reporting period[140] Commitments and Contingencies This section discloses significant commitments, primarily the company's role as guarantor for subsidiaries' borrowings, with a substantial total - The company, as guarantor, provided multiple guarantees for subsidiaries including IFOUND PCB (THAILAND) CO., LTD., Chongqing Founder High-Density Electronics Co., Ltd., Zhuhai Founder Technology Multi-layer Circuit Board Co., Ltd., Zhuhai Founder Technology High-Density Electronics Co., Ltd., and Zhuhai Founder Printed Circuit Board Development Co., Ltd., with guarantee start dates ranging from 2023 to 2025 and maturity dates as late as 2032[468][469][470][471] - At the end of the reporting period, the total guarantee balance for subsidiaries was 1,820,416,307.34 yuan[84] Events After the Balance Sheet Date This section discloses non-adjusting events after the reporting period, including restricted stock grant registration and an ongoing private placement - On July 29, 2025, the company received 248,279,040.00 yuan in subscription funds from incentive recipients, and completed the grant registration of the 2025 Restricted Stock Incentive Plan on August 5, 2025, increasing the company's share capital from 4,170,293,287 yuan to 4,273,742,887 yuan[473] - The company's 2025 private placement of A-shares was approved by the Board of Directors on June 10, 2025, and by the Extraordinary General Meeting on June 27, 2025; the project is currently ongoing[474] Other Significant Matters This section discloses the handling of undeclared claims under the "Restructuring Plan" and the company's operating business segments - According to the main terms of Founder Technology's 2022 "Restructuring Plan," undeclared claims cannot be exercised during the plan's execution but can be exercised according to the repayment conditions for similar claims after completion; no repayments have occurred as of 2025[475] - The company's operating business is divided into PCB business and integrated communication and other businesses as two reporting segments[477] Financial Information by Reporting Segment | Item | PCB Business (Yuan) | Integrated Communication and Other Businesses (Yuan) | Inter-segment Elimination (Yuan) | Total (Yuan) | | :--------- | :------------------ | :---------------------- | :-------------- | :------------------- | | Operating Revenue | 2,104,751,780.98 | 35,284,551.32 | | 2,140,036,332.30 | | Operating Cost | 1,642,931,250.77 | 20,363,850.18 | | 1,663,295,100.95 | Notes to Parent Company Financial Statement Major Items This section provides detailed notes for major items in the parent company's financial statements, including receivables, long-term equity investments, and investment income - Parent company's end-of-period book value of accounts receivable was 1,701,000.00 yuan, with bad debt provision of 113,920.00 yuan[481] - Parent company's end-of-period other receivables balance was 1,251,410,382.54 yuan, with bad debt provision of 551,889,354.74 yuan[492][493][496] - Parent company's other receivables primarily include amounts due from consolidated entities of 697,169,954.47 yuan and payments made for guarantee obligations of 446,831,179.72 yuan[491] - Parent company's end-of-period book value of long-term equity investments was 2,114,575,151.69 yuan, with impairment provision of 744,865,115.38 yuan[503] - Current period parent company capital injections: 74,609,600.00 yuan into Zhuhai Founder Technology Multi-layer Circuit Board Co., Ltd., and 60,000,000.00 yuan into Zhuhai Huanxin Founder Technology Co., Ltd[502] - Parent company's current period investment income was 129,643,251.74 yuan, mainly including dividend income from long-term equity investments in subsidiaries of 130,575,600.00 yuan[508] Supplementary Information This section provides supplementary information, including non-recurring gains and losses, net asset return, and earnings per share - Current period non-recurring gains and losses totaled 7,898,829.61 yuan, mainly including non-current asset disposal gains/losses of 9,410,297.29 yuan, government grants recognized in profit or loss of 7,548,826.66 yuan, fair value changes of financial assets and liabilities of -554,877.47 yuan, debt restructuring gains/losses of -988,963.54 yuan, and other non-operating income and expenses of -5,599,649.10 yuan[510][511] Net Asset Return and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Earnings Per Share | | :--------------------------------- | :---------------------- | :----------- | | Net Profit Attributable to Common Shareholders of the Company | 4.1101 | Basic Earnings Per Share: 0.0414 | | Net Profit Attributable to Common Shareholders of the Company After Deducting Non-recurring Gains and Losses | 3.9220 | Basic Earnings Per Share: 0.0395 |