超声电子(000823) - 2025 Q2 - 季度财报

Important Notes, Table of Contents, and Definitions Important Notes The company's management guarantees the report's accuracy, notes that forward-looking statements are not commitments, and confirms no semi-annual dividend distribution is planned - The Board of Directors, Board of Supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or material omissions[3] - The company does not plan to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[4] - Forward-looking statements in this report regarding future plans do not constitute substantive commitments to investors, who should maintain sufficient risk awareness[3] Table of Contents This section lists the detailed table of contents for the semi-annual report, covering nine main chapters and a list of reference documents - The report's table of contents includes nine main chapters covering key areas such as company profile, MD&A, corporate governance, and financial reports[6] - The list of reference documents includes signed financial statements and originals of all publicly disclosed documents during the reporting period[8] Definitions This section defines frequently used terms in the report, including company names, legal regulations, and industry-specific acronyms like PCB, HDI, and LCD - The reporting period refers to January 1, 2025, to June 30, 2025[9] - Key industry terms include Printed Circuit Board (PCB), High Density Interconnect (HDI), Liquid Crystal Display (LCD), Liquid Crystal Module (LCM), Capacitive Touch Panel (CTP), and Copper Clad Laminate (CCL)[9] Company Profile and Key Financial Indicators Company Profile Guangdong Shantou Ultrasonic Electronics Co, Ltd (stock code: 000823) is listed on the Shenzhen Stock Exchange, with no changes to its contact information during the period - The company's stock short name is "CSEC," stock code is "000823," and it is listed on the Shenzhen Stock Exchange[11] - The company's legal representative is Mo Yibin[11] - The company's registered address, office address, website, email, and information disclosure location remained unchanged during the reporting period[13][14] Key Accounting Data and Financial Indicators The company's H1 2025 results show significant growth in revenue, net profit, and operating cash flow, alongside a slight increase in total assets Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (RMB) | Prior Year Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,045,421,377.63 | 2,688,978,969.52 | 13.26% | | Net Profit Attributable to Shareholders | 114,820,468.02 | 74,745,577.23 | 53.62% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 113,428,576.12 | 66,904,833.48 | 69.54% | | Net Cash Flow from Operating Activities | 291,492,359.90 | 193,178,499.62 | 50.89% | | Basic Earnings Per Share (RMB/Share) | 0.2138 | 0.1392 | 53.59% | | Diluted Earnings Per Share (RMB/Share) | 0.2138 | 0.1392 | 53.59% | | Weighted Average Return on Equity | 2.39% | 1.60% | 0.79% | | As of End of Current Period | As of Prior Year-End | Change from Prior Year-End | | | Total Assets | 8,336,122,303.61 | 8,274,620,834.86 | 0.74% | | Net Assets Attributable to Shareholders | 4,786,276,833.28 | 4,652,899,261.12 | 2.87% | Differences in Accounting Data under Domestic and Foreign Accounting Standards The company reports no discrepancies in net profit or net assets between Chinese accounting standards and international or foreign accounting standards - The company reports no discrepancies in net profit and net assets between financial reports disclosed under IFRS and Chinese Accounting Standards[17] - The company reports no discrepancies in net profit and net assets between financial reports disclosed under foreign accounting standards and Chinese Accounting Standards[18] Non-recurring Profit and Loss Items and Amounts The company's non-recurring profit and loss for the period totaled RMB 1,391,891.90, primarily from asset disposals, government grants, and fair value changes Non-recurring Profit and Loss Items and Amounts | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -3,526,871.55 | | Government Grants Recognized in Current Profit or Loss | 120,621.90 | | Fair Value Gains/Losses from Financial Assets and Liabilities | 5,575,693.47 | | Other Non-operating Income and Expenses | -1,813,411.69 | | Less: Income Tax Impact | -424,818.62 | | Less: Impact on Minority Interests (After Tax) | -611,041.15 | | Total | 1,391,891.90 | Management Discussion and Analysis Overview of Major Businesses The company develops, produces, and sells PCBs, LCDs, touch screens, and CCLs for high-tech applications, operating primarily on a make-to-order basis - The company's main products include Printed Circuit Boards (PCBs), LCDs and touch screens, Copper Clad Laminates (CCLs) and prepregs, and ultrasonic electronic instruments[23] - PCB products are widely used in communications, automotive electronics, radar, industrial automation, and medical devices[23] - The company's business model is primarily "make-to-order" and utilizes a direct sales approach[24] - China's PCB output value exceeds 50% of the global total, and the company is consistently ranked among the top 100 global PCB enterprises[25][27] - In H1 2025, two of the company's subsidiaries were included in the "2024 List of Major Enterprises in China's Electronic Circuit Industry"[28] Core Competitiveness The company's core competitiveness lies in its technological innovation, quality management, and comprehensive customer service system, supported by extensive R&D and patents - The company is driven by technological innovation, supported by provincial-level research centers and a national postdoctoral research station[29] - The company has mastered several industry-leading core technologies, with 653 patents granted (including 185 invention patents), and is recognized as a national innovative enterprise[29] - During the reporting period, the company conducted 130 R&D projects on new products, processes, and materials, and was granted 31 new patents[30] - The company has obtained multiple certifications, including ISO9001, ISO14001, and IATF16949, by implementing advanced management methods like 6σ and TQM[31] - The company has established a global sales and service network with offices in the US, Europe, and Japan, fostering long-term partnerships with renowned international clients[32] Analysis of Main Business Operations The company achieved significant growth in revenue and net profit by capitalizing on AI server and smart mobility markets while optimizing costs and production - The company has deeply explored potential in niche markets such as AI servers, optical modules, smart mobility, smart homes, and industrial control[33] - The company implemented cost-saving measures by optimizing production processes and material costs to enhance market competitiveness[33] YoY Changes in Key Financial Data | Indicator | Current Period (RMB) | Prior Year Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 3,045,421,377.63 | 2,688,978,969.52 | 13.26% | | | Operating Costs | 2,519,984,446.09 | 2,246,106,602.00 | 12.19% | | | Administrative Expenses | 134,233,356.45 | 142,022,019.04 | -5.48% | | | Financial Expenses | 10,825,891.41 | -4,479,574.26 | 341.67% | Decrease in foreign exchange gains and interest income compared to the prior year | | Net Cash Flow from Operating Activities | 291,492,359.90 | 193,178,499.62 | 50.89% | Increased cash collection from sales | | Net Cash Flow from Investing Activities | -66,552,160.78 | -513,014,673.58 | 87.03% | Significant decrease in holdings of structured deposits at period-end | | Net Increase in Cash and Cash Equivalents | 23,057,516.98 | -555,921,480.71 | 104.15% | Significant decrease in holdings of structured deposits at period-end | Operating Revenue Breakdown (by Product) | Product | Current Period Amount (RMB) | % of Operating Revenue | Prior Year Period Amount (RMB) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Printed Circuit Boards | 1,542,233,364.05 | 50.64% | 1,248,454,361.34 | 46.43% | 23.53% | | Liquid Crystal Displays | 848,646,182.33 | 27.87% | 813,587,354.55 | 30.26% | 4.31% | | Copper Clad Laminates | 514,841,681.84 | 16.91% | 506,794,242.36 | 18.85% | 1.59% | | Ultrasonic Instruments & Others | 139,700,149.41 | 4.59% | 120,143,011.27 | 4.47% | 16.28% | Gross Margin of Main Business by Product | Product | Operating Revenue | Operating Costs | Gross Margin | YoY Change in Revenue | YoY Change in Costs | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Printed Circuit Boards | 1,542,233,364.05 | 1,261,645,587.02 | 18.19% | 23.53% | 20.54% | 2.02% | | Liquid Crystal Displays | 848,646,182.33 | 719,497,207.53 | 15.22% | 4.31% | 5.51% | -0.97% | | Copper Clad Laminates | 514,841,681.84 | 469,853,790.14 | 8.74% | 1.59% | 3.56% | -1.73% | Analysis of Non-Core Business The company had no non-core business revenue or profit during the reporting period - The company reports no non-core business analysis for the period[38] Analysis of Assets and Liabilities The company's total assets and net assets attributable to shareholders grew slightly, with a stable asset structure and some assets restricted for loan collateral Significant Changes in Asset Composition (Period-End vs. Beginning of Period) | Item | Period-End Amount (RMB) | % of Total Assets | Beginning of Period Amount (RMB) | % of Total Assets | Change in % | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 1,791,779,267.35 | 21.49% | 1,774,711,220.61 | 21.09% | 0.40% | | Accounts Receivable | 1,722,067,883.17 | 20.66% | 1,730,846,170.37 | 20.56% | 0.10% | | Inventory | 1,072,424,603.76 | 12.86% | 1,030,429,799.76 | 12.24% | 0.62% | | Fixed Assets | 2,836,759,924.12 | 34.03% | 2,952,002,708.42 | 35.07% | -1.04% | | Short-term Borrowings | 178,626,331.70 | 2.14% | 251,220,213.89 | 2.98% | -0.84% | | Long-term Borrowings | 338,239,229.75 | 4.06% | 325,104,880.23 | 3.86% | 0.20% | Restricted Assets as of the Reporting Period-End | Item | Period-End Book Balance (RMB) | Restriction Type | Reason for Restriction | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 15,584,412.06 | Pledge | Margin for bank acceptance bills and letters of credit | | Notes Receivable | 159,335,454.89 | Endorsed or Discounted | Notes endorsed or discounted but not yet matured | | Fixed Assets | 588,848,714.77 | Mortgage | Collateral for borrowings | | Intangible Assets | 35,020,000.00 | Mortgage | Collateral for borrowings | | Total | 798,788,581.72 | | | Investment Analysis The company made no major equity investments but holds shares in Bank of Communications and uses derivatives for hedging foreign exchange risk - The company had no securities investments, major equity investments, or non-equity investments during the reporting period[45] Holdings in Other Listed Companies | Company Name | Company Type | Initial Investment Cost (RMB) | Shares Held at Period-End | Shareholding Ratio at Period-End | Book Value at Period-End (RMB) | P&L for the Period (RMB) | Accounting Method | Source of Shares | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Bank of Communications | Commercial Bank | 21,795,739.00 | 15,737,632 | 0.03% | 125,901,056.00 | 5,964,562.52 | Other Equity Instrument Investment | Initial subscription and rights issue | Derivative Investments for Hedging Purposes during the Reporting Period | Derivative Type | Amount at Period-End (RMB 10,000) | Ratio to Net Assets at Period-End | Actual P&L for the Period | Hedging Effectiveness | | :--- | :--- | :--- | :--- | :--- | | T+1 FX Settlement | 0 | 0.00% | The settled derivatives generated a gain of RMB 2.1775 million | Using FX derivatives effectively balances foreign exchange risk | | Forward FX Contracts | 2.15756 | 0.02% | The settled derivatives generated a gain of RMB 2.1775 million | Using FX derivatives effectively balances foreign exchange risk | - As of June 30, 2025, the total outstanding forward FX contracts amounted to USD 3 million, with an unrealized loss of RMB 57,900 measured at fair value[47] Sale of Major Assets and Equity The company did not engage in the sale of any major assets or equity during the reporting period - The company did not sell any major assets during the reporting period[51] - The company did not sell any major equity stakes during the reporting period[52] Analysis of Major Subsidiaries and Investees Several PCB subsidiaries showed strong performance, while the display and CCL segments faced challenges from market demand and rising material costs Performance of Major Subsidiaries and Investees (H1 2025) | Company Name | Company Type | Operating Revenue (RMB) | Operating Profit (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | | Shantou Ultrasonic PCB (Plant II) Co, Ltd | Subsidiary | 1,005,534,324.79 | 86,173,758.87 | 77,998,547.14 | | Shantou Ultrasonic PCB Company | Subsidiary | 468,177,019.09 | 16,636,162.95 | 16,116,874.81 | | Shantou Ultrasonic PCB (Plant III) Co, Ltd | Subsidiary | 323,366,977.27 | 19,273,965.26 | 19,273,965.26 | | Shantou Ultrasonic Display (Plant II) Co, Ltd | Subsidiary | 314,045,075.20 | 18,913,116.74 | 17,757,228.16 | | Shantou Ultrasonic Display Technology Co, Ltd | Subsidiary | 565,428,306.20 | 12,003,960.77 | 13,557,877.81 | | Shantou Ultrasonic Display Co, Ltd | Subsidiary | 78,468,056.77 | 1,294,227.55 | 1,441,259.80 | | Shantou Ultrasonic CCL Technology Co, Ltd | Subsidiary | 536,232,371.48 | -4,976,600.30 | -1,045,998.61 | - Shantou Ultrasonic PCB (Plant III) Co, Ltd achieved revenue of RMB 323.37 million, a YoY increase of 99.72%, and a net profit of RMB 19.27 million, achieving a turnaround to profitability[54] - Shantou Ultrasonic Display Co, Ltd's revenue and net profit decreased by 22.62% and 80.32% YoY, respectively, due to weakened market demand and rising costs[55] - Shantou Ultrasonic CCL Technology Co, Ltd reported a net loss of RMB 1.05 million, primarily due to rising raw material prices which decreased product gross margins[55] Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not have any controlled structured entities during the reporting period[56] Risks and Countermeasures The company faces risks from economic volatility, market competition, and price fluctuations, which it addresses through product diversification, R&D, and risk management - The company's main future risks include macroeconomic fluctuations, intense market competition, exchange rate volatility, and raw material price fluctuations[56] - The company will actively respond by adjusting its product structure, increasing market development for high-end products, managing exchange rate risks with forward contracts, and optimizing its supply chain[57] Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system or disclosed a valuation enhancement plan - The company has not formulated a market value management system[58] - The company has not disclosed a valuation enhancement plan[58] "Dual Improvement in Quality and Returns" Action Plan The company has not disclosed an action plan for "Dual Improvement in Quality and Returns" - The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan[58] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, or senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period; refer to the 2024 annual report for details[60] Profit Distribution and Capitalization of Capital Reserves The company does not plan to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[61] Equity Incentive and Employee Stock Ownership Plans The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[62] Environmental Information Disclosure The company and its six main subsidiaries are included in the list of enterprises required to disclose environmental information and have provided relevant report indexes - The number of listed companies and their main subsidiaries included in the list of enterprises required to disclose environmental information is six[63] - The company has disclosed the query indexes for the environmental information disclosure reports of its six subsidiaries[63] Social Responsibility The company actively fulfills its social responsibilities by protecting stakeholder interests, focusing on environmental protection, and participating in public welfare - The company maintains a sound governance structure, adheres to information disclosure obligations, and communicates with investors to protect shareholder rights[64] - The company adheres to labor laws, signs employment contracts with all employees, and provides social insurance to protect employee welfare[65] - The company operates with integrity, fostering long-term, stable relationships with high-quality suppliers and customers[65] - The company actively responds to national environmental policies, emphasizes energy conservation, promotes green production, and participates in social welfare activities[65] Significant Events Fulfillment of Commitments The controlling shareholder and management are fulfilling their commitments regarding non-competition and measures to mitigate the impact of diluted earnings - The controlling shareholder, Shantou Ultrasonic Electronics (Group) Co, has committed to avoiding competition with the listed company[67] - The controlling shareholder and all directors and senior management have committed not to interfere with the company's operations and to ensure the implementation of measures to mitigate the impact of diluted earnings[67][68] - All commitments were fulfilled on time, with no overdue commitments as of the end of the reporting period[68] Non-operational Use of Funds by Related Parties There was no non-operational use of the company's funds by its controlling shareholder or other related parties during the reporting period - The company reports no non-operational use of funds by its controlling shareholder or other related parties during the period[69] 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[70] Appointment of Accounting Firm The company's semi-annual financial report has not been audited - The company's semi-annual financial report is unaudited[71] Explanation of Non-standard Audit Report The company did not receive a non-standard audit report for the period - The company did not have a non-standard audit report for the reporting period[72] Explanation of Prior Year's Non-standard Audit Report The company did not have a non-standard audit report in the previous year - The company did not have a non-standard audit report in the previous year[72] Bankruptcy and Reorganization The company was not involved in any bankruptcy or reorganization matters during the reporting period - The company had no bankruptcy or reorganization matters during the reporting period[73] Litigation The company had no major litigation or arbitration matters during the reporting period - The company had no major litigation or arbitration matters during this reporting period[74] Penalties and Rectifications The company was not subject to any penalties or rectifications during the reporting period - The company had no penalties or rectifications during the reporting period[74] Integrity Status There were no integrity issues concerning the company, its controlling shareholder, or its actual controller during the reporting period - The company reports no integrity issues during the period[75] Major Related-Party Transactions The company engaged in minor, routine related-party transactions for comprehensive services with its controlling shareholder, all within approved limits Related-Party Transactions in the Ordinary Course of Business | Related Party | Transaction Type | Transaction Content | Transaction Amount (RMB 10,000) | Approved Limit (RMB 10,000) | Exceeded Limit | | :--- | :--- | :--- | :--- | :--- | :--- | | Shantou Ultrasonic Electronics (Group) Co, Ltd | Receiving services from controlling shareholder | Comprehensive services | 30.51 | 61.02 | No | | Shantou Ultrasonic Property Services Co, Ltd | Receiving services from related party | Comprehensive services | 8.24 | 18 | No | | Total | | | 38.75 | 79.02 | | - The company had no related-party transactions involving the acquisition or sale of assets or equity during the reporting period[77] - The company had no related-party credit or debt transactions during the reporting period[79] - There were no deposits, loans, credit lines, or other financial services between the company and any related finance companies[80] Performance of Major Contracts The company fulfilled its leasing agreements with its controlling shareholder, provided guarantees for subsidiaries, and engaged in wealth management activities - The company paid RMB 970,316.84 in leasing fees to its controlling shareholder for property and land use rights during the period[86] Guarantees Provided to Subsidiaries (Selected) | Guaranteed Party | Guarantee Limit (RMB 10,000) | Actual Guarantee Amount (RMB 10,000) | Guarantee Type | Counter-guarantee | Guarantee Period | Fulfilled | Related-Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sichuan Ultrasonic PCB Co, Ltd | 1,600 | 600 | | Other shareholder pledged its equity as counter-guarantee | 2025.04.30-2026.02.06 | No | No | | Shantou Ultrasonic Display Co, Ltd | 3,000 | 100 | | Other shareholder pledged its equity as counter-guarantee | 2025.03.31-2026.03.31 | No | No | | Shantou Ultrasonic PCB (Plant III) Co, Ltd | 49,000 | 2,000 | Mortgage | Other shareholder pledged its equity as counter-guarantee | 2025.06.26-2026.06.26 | No | No | | Shantou Ultrasonic PCB (Plant II) Co, Ltd | 33,000 | 3,000 | | Other shareholder pledged its equity as counter-guarantee | 2025.04.27-2026.04.27 | No | No | Total Guarantees | Indicator | Amount (RMB 10,000) | | :--- | :--- | | Total approved guarantee limit during the period | 117,000 | | Total actual guarantees provided during the period | 21,955.07 | | Total approved guarantee limit at period-end | 221,300 | | Total outstanding guarantee balance at period-end | 66,637.26 | | Ratio of total actual guarantees to company's net assets | 13.92% | Entrusted Wealth Management | Product Type | Source of Funds | Amount (RMB 10,000) | Outstanding Balance (RMB 10,000) | Overdue Amount (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own funds | 49,000 | 500 | 0 | Other Significant Events The Board decided not to revise the conversion price of the "CSEC Convertible Bond" downwards for the next three months starting from April 23, 2025 - The Board of Directors resolved on April 23, 2025, not to revise the conversion price of the "CSEC Convertible Bond" downwards[101] - For the three months following the decision (April 23, 2025, to July 22, 2025), no downward revision will be proposed even if the conditions are met again[101] - The company will re-evaluate the need for a downward revision if the trigger conditions are met again starting from July 23, 2025[101] Significant Events of Subsidiaries There were no other significant events concerning the company's subsidiaries during the reporting period - The company reports no significant events of its subsidiaries during the period[102] Share Capital Changes and Shareholder Information Changes in Share Capital The company's total share capital increased slightly due to convertible bond conversions, with a minimal impact on financial indicators Changes in Share Capital | Share Type | Before Change (Shares) | Before Change (%) | Change (+/- Shares) | After Change (Shares) | After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 45,488 | 0.01% | -22,744 | 22,744 | 0.00% | | II. Unrestricted Shares | 536,945,538 | 99.99% | 23,226 | 536,968,764 | 100.00% | | III. Total Shares | 536,991,026 | 100.00% | 482 | 536,991,508 | 100.00% | - The change in share capital was caused by the conversion of 482 shares from the "CSEC Convertible Bond"[106] - Due to the minimal number of converted shares, there was no impact on the company's basic and diluted EPS or net assets per share[106] Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period | Restricted Shares Released | Restricted Shares Added | Restricted Shares at End of Period | Reason for Restriction | Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Lin Shibiao | 22,744 | 22,744 | 0 | 0 | Share lock-up release for former director | April 18, 2025 | Securities Issuance and Listing The company did not issue or list any new securities during the reporting period - The company had no securities issuance or listing activities during the reporting period[109] Number of Shareholders and Shareholdings The company had 52,580 common shareholders at period-end, with the controlling shareholder holding 30.49% and having pledged 80 million shares - The total number of common shareholders at the end of the reporting period was 52,580[110] Shareholdings of Top 10 Shareholders and Those Holding Over 5% | Shareholder Name | Shareholder Type | Shareholding Ratio | Shares Held at Period-End | Change During Period (+/- Shares) | Unrestricted Shares Held | Share Status | Quantity (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shantou Ultrasonic Electronics (Group) Co, Ltd | State-owned legal entity | 30.49% | 163,727,300 | 985,500 | 163,727,300 | Pledged | 80,000,000 | | Central Huijin Asset Management Ltd | State-owned legal entity | 3.15% | 16,931,100 | 0 | 16,931,100 | N/A | 0 | | Hong Kong Securities Clearing Company Ltd | Foreign legal entity | 0.72% | 3,849,162 | -3,129,890 | 3,849,162 | N/A | 0 | - The controlling shareholder, Shantou Ultrasonic Electronics (Group) Co, Ltd, increased its shareholding by 985,500 shares[111] - Several of the top 10 common shareholders hold shares through both regular and margin trading accounts and participate in securities margin financing[112] Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, or 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; refer to the 2024 annual report for details[113] 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[114] - The company's actual controller did not change during the reporting period[114] Preferred Shares The company did not have any preferred shares during the reporting period - The company had no preferred shares during the reporting period[115] Bond-Related Information Corporate Bonds The company had no enterprise bonds during the reporting period - The company had no enterprise bonds during the reporting period[117] Company Bonds The company had no company bonds during the reporting period - The company had no company bonds during the reporting period[118] Non-financial Enterprise Debt Financing Instruments The company had no non-financial enterprise debt financing instruments during the reporting period - The company had no non-financial enterprise debt financing instruments during the reporting period[119] Convertible Corporate Bonds The company's RMB 700 million "CSEC Convertible Bond" issued in 2020 had a minimal number of conversions during the period, with the latest conversion price at RMB 12.22 per share - On December 8, 2020, the company publicly issued 7 million convertible bonds with a face value of RMB 100 each, for a total issuance of RMB 700 million[120] - The initial conversion price of the "CSEC Convertible Bond" was RMB 12.85/share, which was adjusted to RMB 12.22/share as of April 22, 2025, after several dividend distributions[120][127] Top Ten Convertible Bondholders (Selected) | No | Holder Name | Holder Type | Quantity Held at Period-End (Units) | Amount Held at Period-End (RMB) | Percentage of Total | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | MERRILL LYNCH INTERNATIONAL | Foreign legal entity | 629,994 | 62,999,400.00 | 9.00% | | 2 | China Merchants Bank - Bosera CSI Convertible Bond & Exchangeable Bond ETF | Other | 307,138 | 30,713,800.00 | 4.39% | Changes in Convertible Bonds During the Period | Convertible Bond Name | Before Change (RMB) | Change (Conversion) (RMB) | After Change (RMB) | | :--- | :--- | :--- | :--- | | CSEC Convertible Bond | 699,681,100.00 | 6,000.00 | 699,675,100.00 | Cumulative Conversion Status | Convertible Bond Name | Total Issued (Units) | Total Issuance Amount (RMB) | Cumulative Converted Amount (RMB) | Cumulative Converted Shares | Unconverted Amount (RMB) | Unconverted Ratio | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | CSEC Convertible Bond | 7,000,000 | 700,000,000.00 | 324,900.00 | 25,508 | 699,675,100.00 | 99.95% | Consolidated Losses Exceeding 10% of Prior Year-End Net Assets The company's consolidated losses did not exceed 10% of its net assets at the end of the previous year - The company's consolidated losses did not exceed 10% of its net assets at the end of the previous year during the reporting period[129] Key Accounting Data and Financial Indicators for the Last Two Years The company's key financial indicators over the past two years show improved liquidity and profitability, with a slightly lower debt-to-asset ratio Key Accounting Data and Financial Indicators for the Last Two Years | Item | End of Current Period | End of Prior Year | Change from Prior Year-End | | :--- | :--- | :--- | :--- | | Current Ratio | 2.64 | 2.44 | 8.20% | | Debt-to-Asset Ratio | 35.43% | 36.57% | -1.14% | | Quick Ratio | 2.07 | 1.93 | 7.25% | | Item | Current Period | Prior Year Period | Change from Prior Year Period | | Net Profit after Non-recurring Items | 113.43 million RMB | 66.90 million RMB | 69.54% | | EBITDA to Total Debt Ratio | 10.53% | 8.88% | 1.65% | | Interest Coverage Ratio | 5.29 | 3.45 | 53.33% | | Cash Interest Coverage Ratio | 10.89 | 6.33 | 72.04% | | EBITDA Interest Coverage Ratio | 11.62 | 8.85 | 31.30% | | Loan Repayment Rate | 100.00% | 100.00% | 0.00% | Financial Report Audit Report The company's semi-annual financial report has not been audited - The company's semi-annual financial report is unaudited[133] Financial Statements This section presents the company's consolidated and parent company financial statements for the first half of 2025, including balance sheets and income statements - This section includes the Consolidated Balance Sheet, Parent Company Balance Sheet, Consolidated Income Statement, Parent Company Income Statement, Consolidated Cash Flow Statement, Parent Company Cash Flow Statement, Consolidated Statement of Changes in Equity, and Parent Company Statement of Changes in Equity[134][139][142][145][148][151][153][160] Company Profile Established in 1997, the company specializes in the R&D, production, and sale of PCBs, LCDs, touch screens, CCLs, and ultrasonic electronic instruments - Guangdong Shantou Ultrasonic Electronics Co, Ltd was established in 1997 through a public offering initiated solely by Shantou Ultrasonic Electronics (Group) Co, Ltd[167] - The company operates in the computer, communication, and other electronic equipment manufacturing industry, focusing on PCBs, LCDs, touch screens, CCLs, and ultrasonic instruments[167] - As of June 30, 2025, the company's total share capital was 536,991,508 shares[167] Basis of Preparation for Financial Statements The company's financial statements are prepared on a going concern basis, with no material uncertainties affecting its continuing operations - The company's financial statements are prepared on a going concern basis[169] - There are no events or conditions that cast significant doubt on the company's ability to continue as a going concern for the next 12 months[170] Significant Accounting Policies and Estimates This section details the company's accounting policies for key areas such as financial instrument impairment, inventory, depreciation, and revenue recognition - The financial statements are prepared in compliance with Chinese Accounting Standards, providing a true and fair view of the company's financial position and performance[172] - The accounting year is from January 1 to December 31, and the company uses a 12-month period to classify assets and liabilities as current or non-current[173][174] - The company uses appropriate valuation techniques supported by sufficient data to determine the fair value of financial assets and liabilities[198] - Fixed assets are depreciated using the straight-line method over their estimated useful lives, such as 14.00-35.00 years for buildings and 14.00 years for machinery[226][227] - Revenue is recognized when performance obligations in a contract are satisfied, either over time or at a point in time[255] Taxes This section outlines the company's main taxes and rates, noting that several subsidiaries benefit from a reduced 15% corporate income tax rate as certified high-tech enterprises Main Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales revenue and taxable service income, net of deductible input tax | 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Actual turnover tax paid | 7% | | Corporate Income Tax | Taxable income | 15%, 25% | | Property Tax | 1.2% of the residual value (original value less 30%) or 12% of rental income | 1.2%, 12% | | Education Surcharge | Actual turnover tax paid | 3% | | Local Education Surcharge | Actual turnover tax paid | 2% | Entities with Different Corporate Income Tax Rates | Taxpayer Name | Income Tax Rate | | :--- | :--- | | Shantou Ultrasonic PCB Company | 15% | | Shantou Ultrasonic PCB (Plant II) Co, Ltd | 15% | | Shantou Ultrasonic PCB (Plant III) Co, Ltd | 15% | | Shantou Ultrasonic Display (Plant II) Co, Ltd | 15% | | Shantou Ultrasonic Display Technology Co, Ltd | 15% | | Sichuan Ultrasonic PCB Co, Ltd | 15% | | All other entities | 25% | - Several of the company's subsidiaries are certified as high-tech enterprises and are eligible for a preferential 15% corporate income tax rate in 2025[282][283][284] Notes to Consolidated Financial Statements This section provides detailed notes on items in the consolidated financial statements, including assets, liabilities, equity, income, expenses, and cash flows - The period-end balance of cash and cash equivalents was RMB 1.79 billion, of which RMB 15.58 million was restricted as margin for bank acceptance bills[286] - The period-end balance of accounts receivable was RMB 1.72 billion, with a provision for bad debts of RMB 106.40 million[299] - The period-end book value of inventory was RMB 1.07 billion, with a provision for inventory write-down of RMB 48.85 million[334] - The period-end book value of fixed assets was RMB 2.84 billion, with property ownership certificates for assets worth RMB 11.94 million still pending[348][350] - The period-end balance of short-term borrowings was RMB 178.63 million, a decrease from the beginning of the period[379] - Operating revenue for the period was RMB 3.05 billion, and operating costs were RMB 2.52 billion[430] - Financial expenses for the period were RMB 10.83 million, compared to a gain of RMB 4.48 million in the prior period, mainly due to increased foreign exchange losses[439] - Net cash flow from operating activities was RMB 291.49 million, a YoY increase of 50.89% from RMB 193.18 million[460] R&D Expenses The company's total R&D expenditure for the period was RMB 147.56 million, with the majority being expensed and primarily allocated to personnel and materials R&D Expenses | Item | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | | Salaries and Benefits | 101,731,926.70 | 98,106,228.89 | | Materials | 30,611,029.30 | 28,400,443.32 | | Depreciation and Amortization | 12,424,327.82 | 14,608,233.39 | | External R&D Fees | 724,034.72 | 0.00 | | Other Expenses | 2,070,597.09 | 2,435,426.99 | | Total | 147,561,915.63 | 143,550,332.59 | | Of which: Expensed R&D | 147,451,995.63 | 143,325,222.59 | | Capitalized R&D | 109,920.00 | 225,110.00 | - Capitalized R&D projects mainly consist of patent application fees[470] Interests in Other Entities This section discloses the company's ownership in its main subsidiaries and provides key financial information for its significant non-wholly-owned subsidiaries Composition of the Corporate Group (Selected) | Subsidiary Name | Registered Capital | Business Nature | Shareholding Ratio (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | | Shantou Ultrasonic PCB Company | 159,902,117.37 | Manufacturing | 75.00% | Business combination under common control | | Shantou Ultrasonic PCB (Plant II) Co, Ltd | 537,001,724.87 | Manufacturing | 75.00% | Establishment | | Shantou Ultrasonic PCB (Plant III) Co, Ltd | 500,000,000.00 | Manufacturing | 75.00% | Establishment | | Shantou Ultrasonic Display Technology Co, Ltd | 594,000,000.00 | Manufacturing | 100.00% | Establishment | | Shantou Ultrasonic CCL Technology Co, Ltd | 380,000,000.00 | Manufacturing | 100.00% | Establishment | | Sichuan Ultrasonic PCB Co, Ltd | 26,500,000.00 | Manufacturing | 62.00% | Establishment | Key Financial Information of Significant Non-wholly-owned Subsidiaries (H1 2025) | Subsidiary Name | Minority Interest Ratio | P&L Attributable to Minority Interests (RMB) | Minority Equity Balance at Period-End (RMB) | | :--- | :--- | :--- | :--- | | Shantou Ultrasonic PCB Company | 25.00% | 4,029,218.71 | 98,047,848.94 | | Shantou Ultrasonic PCB (Plant II) Co, Ltd | 25.00% | 19,499,636.79 | 252,759,930.20 | - The total book value of the company's investments in associates is RMB 3,421,927.69[478] Government Grants The company recognized government grants related to both assets and income, with RMB 3.65 million recorded in other income during the period Liabilities Related to Government Grants | Account | Beginning Balance (RMB) | New Grants (RMB) | Transferred to Other Income (RMB) | Ending Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 28,150,549.03 | 3,680,157.00 | 3,528,876.28 | 35,359,582.31 | Asset-related | - The total amount of government grants recognized in other income during the period was RMB 3,649,498.18[482] Risks Related to Financial Instruments The company manages credit, liquidity, and market risks through prudent financial practices, including credit assessments, diverse financing, and foreign exchange management - The company is exposed to various financial instrument risks in its daily operations, primarily including credit risk, liquidity risk, and market risk[482] - The company's credit risk mainly arises from cash deposits and receivables, which is managed by using highly-rated financial institutions and conducting regular credit assessments of customers[488][489][490] - To manage liquidity risk, the company utilizes a mix of financing methods, including notes settlement and bank loans, and optimizes its financing structure with a combination of long-term and short-term financing[493] - The company's interest rate risk is mainly related to floating-rate bank borrowings; a hypothetical 50 basis point change in interest rates would not have a material impact on profit or equity[496] - The company's foreign exchange risk is related to its foreign currency assets and liabilities, which is managed by maintaining net exposure at an acceptable level[497] Fair Value Disclosure This section discloses the fair value of assets and liabilities, including equity investments and receivables financing, determined by market prices and valuation techniques Period-End Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 1 Fair Value (RMB) | Level 3 Fair Value (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | | (III) Other Equity Instrument Investments | 125,901,056.00 | | 125,901,056.00 | | (VI) Receivables Financing | | 70,239,335.58 | 70,239,335.58 | | Total Assets at Fair Value on a Recurring Basis | 125,901,056.00 | 70,239,335.58 | 196,140,391.58 | | (VI) Trading Financial Liabilities | 57,876.66 | | 57,876.66 | | Total Liabilities at Fair Value on a Recurring Basis | 57,876.66 | | 57,876.66 | - The fair value of the company's investment in Bank of Communications A-shares is determined by the closing price on the stock exchange at period-end[501] - The fair value of the company's derivative financial liabilities (forward FX contracts) is determined by the prices of similar products from banks at period-end[502] - The company's trading financial assets (structured bank deposits) are short-term with stable expected returns, and their fair value is reasonably estimated based on their book value[503] Related Parties and Transactions This section details the company's related parties and transactions, including services received from and leasing arrangements with its parent company - The ultimate controlling party of the company is the State-owned Assets Supervision and Administration Commission of Shantou Municipal People's Government[505] - Other related parties include Shantou Ultrasonic Property Services Co, Ltd, which is also controlled by the parent company[506] Purchases of Goods/Services | Related Party | Transaction Content | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | :--- | | Shantou Ultrasonic Property Services Co, Ltd | Property management fees | 82,420.20 | 82,420.20 | | Shantou Ultrasonic Electronics (Group) Co, Ltd | Comprehensive service fees | 305,094.34 | 305,094.34 | Company as Lessee (Related-Party Lease with Controlling Shareholder) | Lessor Name | Leased Asset Type | Rent Paid (RMB) | Interest Expense Recognized (RMB) | | :--- | :--- | :--- | :--- | | Shantou Ultrasonic Electronics (Group) Co, Ltd | Buildings and land use rights | 920,063.34 | 50,253.50 | - Compensation for key management personnel during the period amounted to RMB 3,895,642.00[514] Commitments and Contingencies As of the balance sheet date, the company had no significant commitments or contingencies to disclose - As of the balance sheet date, the company had no significant commitments or material contingencies to disclose[515] Post-Balance Sheet Events The company has no significant post-balance sheet events to disclose - The company has no significant post-balance sheet events to disclose[516] Other Significant Events The company reports its financial information by industry segments and notes that its controlling shareholder has pledged 80 million company shares - The company determines its reportable segments based on its internal organizational structure and management requirements, with performance assessed by industry segments: PCBs, LCDs, and CCLs[517] Financial Information by Reportable Segment (H1 2025) | Item | PCB Segment (RMB) | LCD Segment (RMB) | CCL Segment (RMB) | Other (RMB) | Inter-segment Elimination (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,589,638,627.22 | 850,075,779.22 | 536,232,371.48 | 119,622,283.91 | 50,147,684.20 | 3,045,421,377.63 | | Operating Costs | 1,286,856,129.66 | 725,161,432.42 | 482,683,937.52 | 63,849,940.96 | 38,566,994.47 | 2,519,984,446.09 | | Total Assets | 3,575,597,412.52 | 1,509,799,406.99 | 1,268,207,881.57 | 4,853,491,709.77 | 2,870,974,107.24 | 8,336,122,303.61 | | Total Liabilities | 1,666,873,512.68 | 391,957,232.75 | 705,129,639.00 | 808,173,056.15 | 618,836,995.77 | 2,953,296,444.81 | - On December 5, 2018, the controlling shareholder pledged 80 million shares of the company (14.90% of total share capital) to the Bank of China, Shantou Branch, and this pledge remains active[521] Notes to Parent Company Financial Statements This section provides detailed notes on the parent company's financial statement items, including receivables, long-term equity investments, and investment income - The parent company's accounts receivable had a book value of RMB 37.78 million at period-end[525] - The parent company's other receivables had a book value of RMB 555.19 million at period-end, primarily consisting of amounts due from consolidated subsidiaries[539][541] - The parent company's long-term investments in subsidiaries had a period-end balance of RMB 2.35 billion[547][550] - The parent company's operating revenue for the period was RMB 69.99 million, with operating costs of RMB 30.03 million[552] - The parent company's investment income for the period was RMB 14.21 million, mainly from long-term equity investments and disposal of trading financial assets[556] Supplementary Information This section provides supplementary details on non-recurring profit and loss items and calculations for return on equity and earnings per share Details of Current Non-recurring Profit and Loss | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | -3,526,871.55 | | Government Grants Recognized in Current Profit or Loss | 120,621.90 | | Fair Value Gains/Losses from Financial Assets and Liabilities | 5,575,693.47 | | Other Non-operating Income and Expenses | -1,813,411.69 | | Less: Income Tax Impact | -424,818.62 | | Less: Impact on Minority Interests (After Tax) | -611,041.15 | | Total | 1,391,891.90 | Return on Equity and Earnings Per Share | Profit for the Period | Weighted Average ROE | Basic EPS (RMB/Share) | Diluted EPS (RMB/Share) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders | 2.39% | 0.2138 | 0.2138 | | Net Profit Attributable to Common Shareholders (Excluding Non-recurring Items) | 2.36% | 0.2112 | 0.2112 | Other Submitted Data Other Major Social Safety Issues The company and its subsidiaries had no other major social safety issues and received no administrative penalties during the reporting period - The listed company and its subsidiaries have no other major social safety issues[562] - The company was not subject to any administrative penalties during the reporting period[562] Investor Relations Activities The company engaged with investors primarily through telephone communications and the Shenzhen Stock Exchange's "Easy IR" online platform - From January 1 to June 30, 2025, the company communicated with individual investors via telephone regarding its business operations[562] - On March 28, 2025, the company held its 2024 annual results presentation for online investors via the Shenzhen Stock Exchange's "Easy IR" platform[562] Fund Transactions with Controlling Shareholder and Other Related Parties There were no fund transactions between the company and its controlling shareholder or other related parties during the reporting period - The company had no fund transactions with its controlling shareholder or other related parties[563]