慧辰股份(688500) - 2025 Q2 - 季度财报

Glossary This section defines common terms used throughout the report, including company names, stock types, regulatory bodies, reporting periods, and key industry and technology terms Definitions of Common Terms This chapter provides definitions of common terms used in the report, including company names, stock types, regulatory bodies, reporting periods, and industry/technology terms such as TMT, AI, data intelligence, big data, cloud computing, IoT, unstructured data, CRM, data science technology, NLP, XMfactory, DMengine, and AIGC - The reporting period is from January 1, 2025, to June 30, 2025[11] - The company's full name is Beijing HCR Zidao Information Co., Ltd., abbreviated as HCR Co., Ltd./HCR[11][14] - TMT is an acronym for Technology, Media, and Telecom[11] - Artificial Intelligence refers to a new technical discipline that studies and develops theories, methods, technologies, and application systems for simulating, extending, and expanding human intelligence[11] - AIGC is an abbreviation for AI Generated Content, which means content generated using artificial intelligence[12] Company Profile and Key Financial Indicators Overview of the company's basic information, contact details, stock profile, and key financial performance metrics for the reporting period Company Basic Information HCR Co., Ltd.'s legal representative is Zhao Long, with its registered address in Haidian District, Beijing, and office address in Chaoyang District, Beijing - The company's legal representative is Zhao Long[14] - The company's registered address was changed to Room 510, 5th Floor, Building 2, No. 25, North 3rd Ring Road West, Haidian District, Beijing on August 14, 2023[15] Contacts and Contact Information The company's Board Secretary (domestic representative for information disclosure) is He Dongjiong, and the Securities Affairs Representative is Liu Hongni, with contact phone number 010-52027122 and email dmb.hcr@hcr.com.cn - The Board Secretary is He Dongjiong, and the Securities Affairs Representative is Liu Hongni[16] - The contact phone number is 010-52027122, and the email address is dmb.hcr@hcr.com.cn[16] Information Disclosure and Document Storage Locations The company's designated information disclosure newspapers are "Shanghai Securities News" and "Securities Daily," with the semi-annual report published on the Shanghai Stock Exchange website (www.sse.com.cn), and the report stored at the company's Board Secretary Office - Information disclosure newspapers: "Shanghai Securities News" and "Securities Daily"[17] - Report website: Shanghai Stock Exchange website (www.sse.com.cn)[17](index=17&type=chunk) Company Stock Profile The company's A-shares are listed on the STAR Market of the Shanghai Stock Exchange, with stock abbreviation HCR and stock code 688500 - Stock type: A-shares, Listing exchange: STAR Market of Shanghai Stock Exchange, Stock abbreviation: HCR Co., Ltd., Stock code: 688500[18] Key Accounting Data and Financial Indicators In H1 2025, revenue grew by 14.79% to CNY 201.61 million, net loss attributable to shareholders narrowed to CNY 32.03 million, and operating cash flow significantly improved 2025 H1 Key Accounting Data | Indicator | Current Reporting Period (Jan-Jun) (CNY) | Prior Year Period (CNY) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 201,612,398.97 | 175,629,569.10 | 14.79 | | Total Profit | -31,710,882.06 | -44,113,248.72 | Not applicable | | Net Profit Attributable to Shareholders of Listed Company | -32,025,061.50 | -36,028,043.82 | Not applicable | | Net Cash Flow from Operating Activities | -9,052,410.94 | -47,266,090.13 | Not applicable | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 713,770,606.57 | 741,417,234.50 | -3.73 | | Total Assets (Period-end) | 990,387,349.26 | 1,043,802,965.08 | -5.12 | 2025 H1 Key Financial Indicators | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | -0.44 | -0.49 | Not applicable | | Diluted Earnings Per Share (CNY/share) | -0.44 | -0.49 | Not applicable | | Weighted Average Return on Net Assets (%) | -4.40 | -4.64 | Increased by 0.24 percentage points | | R&D Investment as % of Operating Revenue (%) | 5.97 | 11.67 | Decreased by 5.70 percentage points | - The increase in net profit attributable to shareholders of the listed company was mainly due to increased operating revenue and reduced period expenses[21] - The change in net cash flow from operating activities was mainly due to increased sales revenue and corresponding increase in operating cash collection, as well as intensified efforts to collect accounts receivable, leading to increased cash recovery[22] Non-recurring Gains and Losses Items and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to CNY 2.35 million, primarily from non-current asset disposal, government grants, and fair value changes of financial assets/liabilities 2025 H1 Non-recurring Gains and Losses Items | Non-recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -1,325,297.39 | | Government grants recognized in current profit or loss | 1,011,685.52 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains and losses from disposal of financial assets and liabilities | 2,765,079.70 | | Other non-operating income and expenses | 331,438.10 | | Less: Income tax impact | 431,620.15 | | Total | 2,351,285.78 | Net Profit After Deducting Share-based Payment Impact After deducting the impact of share-based payments, the company's net loss for H1 2025 was CNY 27.55 million, a 22.12% year-on-year reduction in loss Net Profit After Deducting Share-based Payment Impact | Indicator | Current Reporting Period (Jan-Jun) (CNY) | Prior Year Period (CNY) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Net profit after deducting share-based payment impact | -27,545,580.99 | -34,958,730.57 | Not applicable | Management Discussion and Analysis Discussion and analysis of the company's industry, main business, operating performance, core competitiveness, and risk factors Industry and Main Business The company is deeply rooted in the data elements industry, focusing on data collection, analysis, mining, operations, and AI-related businesses, implementing an "ALL IN AI" strategy Main Business, Products, and Services The company aims to achieve "AI-driven value realization of data elements," building a business system centered on "data, algorithms, and computing power," with data acquisition costs accounting for 66.54% of revenue - The company's corporate vision is "AI-driven value realization of data elements," dedicated to researching and developing intelligent technologies for data analysis, data mining, data operations, and applications[31] - During the reporting period, the company continued to increase data investment, with data collection and procurement costs accounting for 66.54% of revenue in the first half of the year[32] - The company's multiple self-developed algorithm models have passed national cyberspace administration备案, covering text large models, voice large models, and digital human large models, and has developed products such as "AIGC+Insight Innovation" and "HCR AI Digital Employee" for commercial consumption and marketing scenarios[32] - The company is deploying and building an intelligent computing cloud platform for SMEs to easily access computing power and AI tools by developing a "Converged Computing Power Management Service Platform"[32] Main Business Model The company's business model revolves around data acquisition, integration, analysis, and application, primarily securing contracts through direct sales, with profitability derived from data-based business analysis services and solutions - The company's production model revolves around data acquisition, data integration, data analysis, and data application, with data acquisition channels including customer provision, supplier procurement, and self-collection[39] - The company primarily uses a direct sales model to sell its products, services, and solutions to customers, obtaining business contracts by entering customer supplier procurement lists and participating in bids[41] - The company achieves profitability by selling data-based business analysis services, application products, and industry application solutions to enterprise-level customers[44] Industry Development and Trends The data analysis industry, a key component of the data elements market, benefits from national "Data Elements ×" and "AI+" strategies, facing high technical barriers and surging demand for intelligent computing power - The data analysis industry is an important part of the data elements market, driven by national policies for rapid development, with the data industry scale expected to grow at an average annual compound rate of over 15% by 2029[47] - Artificial intelligence technology is developing rapidly and has become an important component of new quality productive forces, with "AI+" first written into the government work report in 2024[48][55] - Demand for intelligent computing power is surging, with China's intelligent computing power scale expected to reach 1460.3 EFLOPS by 2026, double that of 2024[49] - The technical barriers in the data analysis industry include professional data analysis algorithm models that deeply integrate AI, data science technology, and industry knowledge, as well as a professional technical system for data analysis and application[49] - As a leading professional consulting service provider in the data intelligence analysis industry in China, the company has maintained and enhanced its market position by expanding productized, intelligent, and diversified service models, and by strategically deploying AI computing power services[50][51] Operating Performance Analysis In H1 2025, HCR achieved revenue and net profit growth, with total operating revenue of CNY 201.61 million (up 14.79%) and a narrowed net loss attributable to shareholders (down 11.11%), driven by AI technology and market expansion - In H1 2025, the company's total operating revenue was CNY 201.61 million, a year-on-year increase of 14.79%; net profit attributable to shareholders of the listed company was -CNY 32.03 million, a year-on-year increase of 11.11% (indicating a narrowed loss)[61] - After deducting the impact of share-based payments, net profit attributable to shareholders of the listed company was -CNY 28.06 million, a year-on-year increase of 22.12% (indicating a narrowed loss)[61] - The company's net operating cash flow increased by 80.85% year-on-year, and accounts receivable balance over 3 years decreased by 19.73% year-on-year[61] - AI technology and industry application-related products and services are strategic priorities for the company's innovative business, having already generated multiple orders, with strong future demand expected to drive revenue and gross margin improvements[62] - The company's semi-annual revenue per capita increased by 29.97% year-on-year[62] - The company's self-developed AI application products, such as "HCR AI Intelligent Application Platform" and "ChatBI Data Analysis Intelligent Agent," have secured customer orders and been delivered[62] - Leveraging its self-developed converged computing power management service platform, the company signed an "AI Public Computing Power Platform Software" project, achieving commercialization[63] - The company achieved stable revenue growth in the TMT and consumer industries, maintaining long-term partnerships with leading clients such as China Mobile, Huawei, and Coca-Cola, and actively expanding AI application orders[64] - The company optimized its internal control system, revised its Articles of Association and supporting regulations, abolished the Supervisory Board, and transferred its functions to the Audit Committee, enhancing governance efficiency and scientific decision-making[64][65] - The company implemented an equity incentive plan to improve its medium- and long-term incentive mechanism, boost market confidence, and enhance employee identification and belonging[65] - The company was selected for the "2025 China Data Intelligence Industry Map 1.0," receiving authoritative recognition in the two core dimensions of big data analysis platforms and user behavior analysis[66] Core Competitiveness Analysis The company's core competitiveness lies in the deep integration of data science, AI technology, and vertical industry-specific data models, forming data analysis capabilities driven by proprietary models and technical systems Core Competitiveness Analysis The company's core competitiveness is the deep integration of data science, AI technology, and vertical industry-specific data models, forming data analysis capabilities driven by proprietary models and technical systems, with a "data + algorithm + computing power" advantage - The company's core competitiveness is the integration of data science and AI technology with vertical industry-specific data models, forming data analysis capabilities driven by proprietary industry models and technical systems[68] - The company's technical team masters cutting-edge technologies such as machine learning, deep learning, NLP, large model fine-tuning, and training; its self-developed AI analysis and recognition models have obtained multiple patents, and in 2024, it completed the research and development of core algorithms for industry-specific generative large models based on AIGC, which passed the national cyberspace administration algorithm filing[68] - The company has built a competitive advantage of "data + algorithm + computing power," providing full lifecycle management from automated data labeling, model training and optimization, to computing power scheduling and application deployment[68] - The company possesses comprehensive analysis and application technical capabilities for multi-dimensional data (internal and external big data combined with traditional consumer experience small data) and heterogeneous data (structured and unstructured data)[69] - The company has high-quality customer resources, primarily serving Fortune 500 companies, large and medium-sized state-owned enterprises, and government/public institutions, which validates its technical strength and business level[70] - The company has a first-mover advantage in transformation, having initiated data business service model development in 2012, accelerated AI technology integration in 2018, and in 2023, developed industry-specific AIGC generative large model technology and launched the "HCR AI Digital Employee All-in-One Solution"[70][71] - The company's competitive disadvantages include the need to further enhance its talent pool in AI and data science, as well as industry product R&D technical personnel, and to expand its business service scope to mid-tier SMEs and other unserved industries[71][72] Core Technologies and R&D Progress The company possesses four core technologies, including 21 sub-items, added 1 invention patent and 12 software copyrights, with total R&D investment of CNY 12.04 million (down 41.27%) due to scope adjustments and project completion, and a significant increase in capitalized R&D - The company has 4 core technologies: data analysis technology for commercial consumer services, personalized user analysis and intelligent application technology, business operation efficiency analysis and application optimization technology, and data analysis and governance technology for ecological environment protection, comprising 21 core technology sub-items[73][74] - During the reporting period, the company added 1 invention patent and 12 software copyrights; as of June 30, 2025, the company holds 16 invention patents and 229 software copyrights[75] R&D Investment | Indicator | Current Period (CNY) | Prior Year Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 6,998,520.25 | 20,496,412.06 | -65.85 | | Capitalized R&D Investment | 5,039,667.24 | - | Not applicable | | Total R&D Investment | 12,038,187.49 | 20,496,412.06 | -41.27 | | Total R&D Investment as % of Operating Revenue (%) | 5.97 | 11.67 | Decreased by 5.70 percentage points | | Capitalized R&D Investment as % of Total R&D Investment (%) | 41.86 | - | Increased by 41.86 percentage points | - The decrease in total R&D investment was mainly due to the adjustment of the consolidated financial statement scope (subsidiary Liruihang no longer included) and the nearing completion of the IPO fundraising project "Intelligent Analysis Platform Based on Multi-dimensional Data"[79] - The significant increase in the proportion of capitalized R&D investment was mainly because the new R&D project "Enterprise AI Application Support Platform R&D," launched in July 2024, entered the development phase and met capitalization conditions[80] R&D Project Status (Partial) | No. | Project Name | Estimated Total Investment (CNY) | Current Period Investment (CNY) | Cumulative Investment (CNY) | Progress or Phased Achievements | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Commercial Circle Map Intelligent Product R&D | 13,060,000.00 | 2,875,768.99 | 5,835,393.82 | Project completed by end of June 2025, 2 software copyrights and 1 invention patent are being applied for | | 2 | Enterprise AI Application Support Platform R&D | 27,465,000.00 | 5,039,667.24 | 10,791,683.41 | R&D in progress, partial enterprise application scenario R&D results completed, and preliminary market application has begun | | 5 | AI-based Digital Platform for Cigarette Retail Terminals | 3,010,000.00 | 1,575,166.51 | 1,575,166.51 | Project R&D in progress, digital literacy improvement platform for tobacco retail marketing terminal personnel completed; digital human assistant platform for terminal personnel is under development | R&D Personnel | Indicator | Current Period | Prior Year Period | | :--- | :--- | :--- | | Number of company R&D personnel (people) | 58 | 77 | | R&D personnel as % of total company personnel (%) | 12.37 | 14.50 | | Total R&D personnel compensation (CNY in ten thousands) | 1,249.81 | 1,426.87 | | Average R&D personnel compensation (CNY in ten thousands) | 18.93 | 17.10 | | Proportion of PhD students (%) | 3.45 | - | | Proportion of Master's students (%) | 18.97 | - | | Proportion of Bachelor's degree holders (%) | 70.69 | - | - The decrease in the number of company R&D personnel was mainly due to changes in the consolidated financial statement scope resulting from the sale of some subsidiary equity, as well as the nearing completion of some R&D projects and optimization of the R&D team structure[88] Risk Factors The company faces various risks including macroeconomic environment, intensified industry competition, sustained losses, customer churn, talent resources, data compliance, core competitiveness, and changes in tax preferential policies - Macroeconomic environment risk: Significant changes in market demand, or a slowdown in overall market growth or failure to identify new growth points, will adversely affect performance[89] - Industry risk: The development of the digital economy and AI industry brings more market opportunities, but intensified industry competition may lead to price reductions for products and services and a decline in gross profit margins[89] - Risk of significant performance decline or loss: The company is currently still in a loss-making state, and if downstream demand recovery is insufficient or competition intensifies, it may continue to adversely affect operating performance[90] - Operating risks: Including customer churn or reduced payment ability, loss or insufficient recruitment of talent resources, and data compliance risks and data security risks in the process of data collection, processing, and analysis[91][92] - Core competitiveness risk: Data analysis application technology is developing rapidly, and the company needs continuous R&D and innovation to adapt to market requirements, otherwise it may fall behind competitors[93] - Risk of changes in tax preferential policies: The company enjoys a 15% corporate income tax rate preferential treatment as a high-tech enterprise; failure to pass re-evaluation will affect net profit in subsequent years[93] Key Operating Performance In H1 2025, the company achieved CNY 201.61 million in revenue (up 14.79%) and a net loss attributable to shareholders of CNY 32.03 million, with significant changes in financial statement items reflecting revenue growth, cost increases, and improved operating cash flow - In H1 2025, the company achieved operating revenue of CNY 201.61 million, a year-on-year increase of 14.79%; net profit attributable to owners of the parent company was -CNY 32.03 million[94] Financial Statement Item Variation Analysis | Item | Current Period (CNY) | Prior Year Period (CNY) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 201,612,398.97 | 175,629,569.10 | 14.79 | Mainly due to the company's further expansion of its main business | | Operating Cost | 155,223,667.94 | 124,749,291.07 | 24.43 | Mainly due to the increase in the company's operating revenue, operating costs increased accordingly | | Selling Expenses | 46,591,107.87 | 54,244,396.63 | -14.11 | Mainly due to reduced personnel expenses | | Administrative Expenses | 29,303,140.22 | 27,502,370.92 | 6.55 | Mainly due to the implementation of equity incentives in the current period, increasing share-based payment costs | | R&D Expenses | 6,998,520.25 | 20,496,412.06 | -65.85 | Mainly due to changes in the consolidation scope and the nearing completion of IPO fundraising projects, leading to a corresponding reduction in R&D investment | | Net Cash Flow from Operating Activities | -9,052,410.94 | -47,266,090.13 | Not applicable | Mainly due to increased sales revenue and corresponding increase in operating cash collection, as well as intensified efforts to collect accounts receivable | | Net Cash Flow from Investing Activities | 40,842,614.56 | 113,926,832.89 | -64.15 | Mainly due to the redemption of some wealth management products in the prior year period | | Net Cash Flow from Financing Activities | 29,084,503.21 | -5,325,378.13 | 646.15 | Mainly due to the grant of restricted shares to employees in the current period, receiving employee equity incentive subscription payments | Asset and Liability Status Changes (Partial) | Item Name | Current Period-end (CNY) | Prior Year Period-end (CNY) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Contract Assets | 7,932,602.35 | 12,992,968.83 | -38.95 | Contract assets met collection conditions and were reclassified to accounts receivable in the current period | | Other Current Assets | 3,059,199.36 | 1,413,797.89 | 116.38 | Increased due to reclassification of negative tax liabilities in the current period | | Right-of-Use Assets | 7,436,077.55 | 13,670,649.23 | -45.61 | Due to expiration of some company lease contracts and reduction in remaining lease terms of unexpired lease contracts | | Development Expenditures | 9,163,565.68 | 4,123,898.44 | 122.21 | Due to capitalization of some R&D projects in the current period | | Notes Payable | - | 6,740,571.20 | -100.00 | All prior period notes payable have matured and been honored | | Employee Benefits Payable | 6,427,556.93 | 11,426,134.36 | -43.75 | Due to payment of accrued salaries for 2024 in the current period | | Other Payables | 40,888,854.62 | 10,818,064.22 | 277.97 | Due to receipt of employee equity incentive subscription payments | | Long-term Borrowings | 3,000,000.00 | - | Not applicable | Due to new long-term borrowings in the reporting period | | Lease Liabilities | 2,628,491.44 | 7,800,429.39 | -66.30 | Due to expiration of some company lease contracts and reduction in remaining lease terms of unexpired lease contracts | - Overseas assets amounted to CNY 26.43 million, accounting for 2.67% of total assets[100] Major Asset Restrictions | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Bank acceptance bill deposits | 63.12 | 2,393,346.73 | | Letter of guarantee deposits | 2,751,751.35 | 3,645,077.56 | | Total | 2,751,814.47 | 36,038,424.29 | Investment Status Analysis The company's financial assets measured at fair value primarily consist of structured deposits and equity investments, with balances of CNY 356.16 million and CNY 0.89 million, respectively, at the end of the reporting period Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (CNY) | Amount Purchased in Current Period (CNY) | Amount Sold/Redeemed in Current Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Structured deposits | 365,114,758.41 | 895,000,000.00 | 903,951,893.50 | 356,162,864.91 | | Equity investments | 888,072.65 | - | - | 888,072.65 | | Total | 366,002,831.06 | 895,000,000.00 | 903,951,893.50 | 357,050,937.56 | Analysis of Major Holding and Participating Companies During the reporting period, the company deregistered Shanghai HCR Shuju Media Technology Co., Ltd., which had no significant impact on overall operations or performance - During the reporting period, the company deregistered Shanghai HCR Shuju Media Technology Co., Ltd., which had no significant impact on overall production, operations, and performance[106] Corporate Governance, Environment, and Society Information on changes in directors, supervisors, senior management, and core technical personnel, as well as profit distribution plans and the impact of equity incentive plans Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel During the reporting period, Xie Jiang and Liu Songlin resigned as Vice General Managers, Ma Liang resigned as a non-independent director but remains a core technical personnel, Ren Shuang resigned as an independent director, while Yang Lei and Xu Tong were elected as employee representative director and independent director, respectively - Xie Jiang and Liu Songlin resigned as Vice General Managers[108] - Ma Liang resigned as a non-independent director but remains a core technical personnel of the company[108] - Yang Lei was elected as an employee representative director, and Xu Tong was elected as an independent director[108] Profit Distribution Plan No profit distribution or capital reserve capitalization plan is applicable for this semi-annual period - The profit distribution plan or capital reserve capitalization plan for this semi-annual period is not applicable[109] Equity Incentive Plan and Its Impact The company approved and implemented the "2025 Restricted Stock Incentive Plan (Draft)" in April and May 2025, receiving CNY 31.65 million from 64 grantees for 1.88 million shares, aiming to enhance long-term incentives and market confidence - The company's board of directors convened on April 25, 2025, and approved the "2025 Restricted Stock Incentive Plan (Draft)" and related proposals[110] - On May 16, 2025, the company's general meeting of shareholders reviewed and approved the incentive plan[111] - As of June 13, 2025, the company actually received a total of CNY 31,653,864 in subscription payments for restricted shares from 64 grantees in cash, subscribing for 1,880,800 shares[111] - This plan aims to further improve the company's medium- and long-term incentive mechanism, enhance market confidence in the company's strategic goals and performance growth, and fully mobilize the subjective initiative of employees[65] Significant Matters Details on the fulfillment of commitments, major lawsuits and arbitrations, significant related party transactions, and the progress of raised funds utilization Fulfillment of Commitments The company's controlling shareholder, actual controller, employee shareholding platforms, directors, supervisors, senior management, and core technical personnel have strictly fulfilled various commitments related to initial public offering, share repurchase, immediate return dilution, profit distribution, prospectus authenticity, and avoiding related party transactions - The controlling shareholder, actual controller, employee shareholding platforms, directors, supervisors, senior management, and core technical personnel all committed to strictly abide by share lock-up and reduction regulations, and to ensure that the reduction price is not lower than the issue price (or net assets per share) within two years after the lock-up period expires[116][117][119][120][122][123][125][126][127][128][130][131][133][134] - The company and related parties committed that there are no fraudulent issuance circumstances, and if such circumstances occur, they will initiate share repurchase procedures and bear civil compensation liabilities[136][137][138] - The company committed to implement measures to mitigate the dilution of immediate returns by expanding markets, accelerating IPO fundraising projects, strengthening management of raised funds, improving profit distribution policies, and enhancing corporate governance[139][140][141] - The company committed to prioritize cash dividends when profit distribution conditions are met, with annual cash dividends generally not less than 10% of the distributable profit for the year[147][149] - The company and its related parties committed to avoid fund occupation, horizontal competition, and irregular related party transactions, and to bear compensation liabilities for lease and social security deficiencies[168][171][173][180] - The first tranche of restricted shares granted under the 2025 equity incentive plan has lock-up periods of 12 months and 24 months, and shares that do not meet the unlocking conditions will be repurchased and cancelled by the company[186] Major Lawsuits and Arbitrations The company is involved in multiple major lawsuits and arbitrations, including arbitration and enforcement applications for performance compensation against He Kanchen, Shanghai Bingfan, and Shanghai Huiqing, and civil lawsuits from 208 small and medium investors for securities misrepresentation, totaling CNY 28.34 million - The company initiated arbitration against He Kanchen, Shanghai Bingfan, and Shanghai Huiqing for performance compensation/damages, and applied for compulsory enforcement, which has been accepted for filing[188] - The company received civil lawsuits from 208 small and medium investors on the grounds of securities misrepresentation liability disputes, involving an amount of CNY 28,335,951.44[190] - Among the lawsuits from 208 investors, 46 have withdrawn their claims, 9 have received first-instance judgments (totaling CNY 437,926.71), 3 have reached mediation/settlement (totaling CNY 13,980.08), and 150 are still awaiting judgment or mediation/settlement (claimed amount CNY 27,483,609.67)[190] Significant Related Party Transactions During the reporting period, the company received services from related party Shanghai Liruihang Information Technology Co., Ltd., with an actual amount of CNY 3.38 million, which did not exceed the annual estimated transaction limit of CNY 7.4 million 2025 H1 Services Received from Related Parties | Related Party | Related Transaction Type | 2025 Annual Estimated Amount (CNY in ten thousands) | 2025 Jan-Jun Actual Amount (CNY in ten thousands) | | :--- | :--- | :--- | :--- | | Shanghai Liruihang Information Technology Co., Ltd. | Receiving services from related parties | 740 | 337.87 | Progress of Raised Funds Utilization The company's IPO raised CNY 635.23 million, with CNY 194.94 million cumulatively invested (34.79% progress); the AIOT project's fund usage was below expectations, while the "Intelligent Analysis Platform" project is complete, with CNY 58.52 million in surplus funds to be used for working capital Overall Use of Raised Funds | Source of Raised Funds | Total Raised Funds (CNY) | Total Committed Investment of Raised Funds (CNY) | Cumulative Investment of Raised Funds as of Period-end (CNY) | Investment Progress as of Period-end (%) | | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | 635,232,763.88 | 532,582,700.00 | 194,941,454.31 | 34.79 | | Over-allotment Funds | 27,820,063.88 | 27,820,063.88 | 27,989,493.37 | 100.61 | - The utilization of raised funds for the AIOT project was lower than planned, mainly due to market uncertainties, a cautious investment approach for non-core R&D expenditures, and strategic adjustments in product R&D leading to savings in facility, software, and hardware costs[200] - The IPO fundraising project "Intelligent Analysis Platform Based on Multi-dimensional Data" has been fully completed, achieving its goals for upgrading the basic data management system, developing intelligent analysis capabilities, and deploying standardized products; the remaining raised funds of CNY 58.52 million will be permanently used to supplement working capital[201] Cash Management of Idle Raised Funds | Board of Directors Review Date | Approved Limit for Cash Management of Raised Funds (CNY in ten thousands) | Cash Management Balance at Period-end (CNY in ten thousands) | Balance Exceeded Approved Limit | | :--- | :--- | :--- | :--- | | July 25, 2024 | 42,000 | 35,000 | No | Share Changes and Shareholder Information Overview of changes in share capital, shareholder structure, and shareholdings of directors, supervisors, senior management, and core technical personnel Share Capital Changes During the reporting period, the company's total ordinary share capital and structure remained unchanged, but after the period, the implementation of the 2025 restricted stock incentive plan increased total share capital from 74.27 million to 75.20 million shares, affecting net assets per share - During the reporting period, the company's total ordinary share capital and share structure remained unchanged[214] - After the reporting period and up to the disclosure date of the semi-annual report, the company completed the initial grant registration for the 2025 Restricted Stock Incentive Plan, increasing the total share capital from 74,274,510 shares to 75,196,710 shares[215] Impact of Share Capital Changes on Financial Indicators | Indicator | As of June 30, 2025 | As of Report Disclosure Date | | :--- | :--- | :--- | | Earnings Per Share (CNY/share) | -0.44 | -0.44 | | Net Assets Per Share (CNY) | 9.61 | 9.49 | Shareholder Information As of the end of the reporting period, the company had 4,544 ordinary shareholders, with Hainan Liangzhi Zhengde Enterprise Management Consulting Co., Ltd. as the controlling shareholder (22.62% stake), and the company's buyback account holding 2.99% of total shares - As of the end of the reporting period, the total number of ordinary shareholders was 4,544 households[217] - Among the top ten shareholders, Hainan Liangzhi Zhengde Enterprise Management Consulting Co., Ltd. held 16,803,750 shares, accounting for 22.62%, making it the controlling shareholder[220] - Shenzhen Junying Investment Management Co., Ltd. - Junying Huitong Huying Value Growth No. 1 Private Securities Investment Fund held a total of 1,029,885 shares through ordinary securities accounts and credit securities accounts[218][221] - The company's dedicated securities account for share repurchases held 2,220,951 shares, accounting for 2.99% of the total share capital[222] - The ultimate controlling party of Hainan Liangzhi Zhengde Enterprise Management Consulting Co., Ltd., Juxingzhi (Tianjin) Enterprise Management Consulting Center (Limited Partnership), and Chenghao (Tianjin) Enterprise Management Consulting Center (Limited Partnership) is Zhao Long[222] Changes in Shareholdings of Directors, Supervisors, Senior Management, and Core Technical Personnel During the reporting period, Vice Chairman and Vice General Manager He Wei indirectly reduced his holdings by 1.42 million shares, while the company granted 180,000 Class I and 130,000 Class II restricted shares to senior management and core technical personnel - Vice Chairman and Vice General Manager He Wei indirectly reduced his company shares by 1,416,500 shares through Zhuopu Management[225] Class I Restricted Shares Granted to Directors, Supervisors, Senior Management, and Core Technical Personnel | Name | Position | Number of Newly Granted Restricted Shares in Reporting Period (shares) | | :--- | :--- | :--- | | He Dongjiong | Board Secretary | 50,000 | | Han Ding | Vice General Manager | 60,000 | | Ma Liang | Core Technical Personnel | 70,000 | | Total | / | 180,000 | Class II Restricted Shares Granted to Directors, Supervisors, Senior Management, and Core Technical Personnel | Name | Position | Number of Newly Granted Restricted Shares in Reporting Period (shares) | Number of Restricted Shares Granted as of Period-end (shares) | | :--- | :--- | :--- | :--- | | Han Ding | Vice General Manager | 75,000 | 75,000 | | Ma Liang | Core Technical Personnel | 45,000 | 45,000 | | Wang Chi | Core Technical Personnel | 10,000 | 10,000 | | Total | / | 130,000 | 130,000 | Bond-Related Information Information regarding the company's corporate bonds, non-financial enterprise debt financing instruments, and convertible corporate bonds Corporate Bonds and 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 - Information on corporate bonds and non-financial enterprise debt financing instruments is not applicable[231] Convertible Corporate Bonds During the reporting period, the company had no convertible corporate bonds - Information on convertible corporate bonds is not applicable[231] Financial Report Comprehensive financial statements including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with notes on accounting policies and significant items Audit Report This semi-annual report has not been audited - This semi-annual report has not been audited[5] Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2025, providing a comprehensive view of its financial position, operating results, and cash flows Consolidated Balance Sheet Summary (June 30, 2025) | Item | Period-end Balance (CNY) | Period-beginning Balance (CNY) | | :--- | :--- | :--- | | Cash and cash equivalents | 315,087,788.03 | 287,711,363.99 | | Trading financial assets | 356,162,864.91 | 365,114,758.41 | | Accounts receivable | 168,227,026.57 | 227,664,374.23 | | Contract assets | 7,932,602.35 | 12,992,968.83 | | Total current assets | 885,689,762.93 | 931,520,561.33 | | Fixed assets | 23,656,764.02 | 27,123,688.77 | | Development expenditures | 9,163,565.68 | 4,123,898.44 | | Total assets | 990,387,349.26 | 1,043,802,965.08 | | Accounts payable | 133,103,053.24 | 167,743,878.56 | | Other payables | 40,888,854.62 | 10,818,064.22 | | Total liabilities | 268,710,450.16 | 294,986,689.11 | | Total owners' equity attributable to parent company | 713,770,606.57 | 741,417,234.50 | | Total liabilities and owners' equity | 990,387,349.26 | 1,043,802,965.08 | Consolidated Income Statement Summary (Jan-Jun 2025) | Item | 2025 H1 (CNY) | 2024 H1 (CNY) | | :--- | :--- | :--- | | Total operating revenue | 201,612,398.97 | 175,629,569.10 | | Total operating costs | 238,000,727.39 | 226,838,693.58 | | Operating profit | -31,735,462.24 | -44,072,832.74 | | Total profit | -31,710,882.06 | -44,113,248.72 | | Net profit | -31,512,956.46 | -34,958,730.57 | | Net profit attributable to parent company shareholders | -32,025,061.50 | -36,028,043.82 | | Basic earnings per share (CNY/share) | -0.44 | -0.49 | Consolidated Cash Flow Statement Summary (Jan-Jun 2025) | Item | 2025 H1 (CNY) | 2024 H1 (CNY) | | :--- | :--- | :--- | | Net cash flow from operating activities | -9,052,410.94 | -47,266,090.13 | | Net cash flow from investing activities | 40,842,614.56 | 113,926,832.89 | | Net cash flow from financing activities | 29,084,503.21 | -5,325,378.13 | | Net increase in cash and cash equivalents | 60,483,266.74 | 61,497,280.62 | | Cash and cash equivalents at period-end | 311,755,494.11 | 299,109,930.78 | Company Basic Information Beijing HCR Zidao Information Co., Ltd., established on November 14, 2008, and listed on the Shanghai Stock Exchange on July 16, 2020, with a registered capital of CNY 74.27 million, specializes in data analysis-based digital products and services, and its financial statements were approved on August 28, 2025 - The company was established on November 14, 2008, and listed on the Shanghai Stock Exchange on July 16, 2020[267] - The company's registered capital is CNY 74.27 million, primarily providing digital products and services based on data analysis[267] - These financial statements were approved for issuance by the company's board of directors on August 28, 2025[268] Basis of Financial Statement Preparation The company's financial statements are prepared in accordance with accounting standards issued by the Ministry of Finance and relevant CSRC regulations, based on a going concern assumption, with no significant doubts about its ability to continue as a going concern - The company's financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and the China Securities Regulatory Commission's "Information Disclosure Rules for Companies Issuing Securities No. 15 - General Provisions for Financial Reports (Revised in 2023)"[269] - The company evaluated its ability to continue as a going concern for 12 months from the end of the reporting period and found no significant doubts or circumstances regarding its ability to continue as a going concern[270] Significant Accounting Policies and Accounting Estimates This section details the company's adherence to accounting standards, accounting period, operating cycle, functional currency, materiality criteria, business combination accounting, consolidated financial statement preparation, cash and cash equivalents, foreign currency transactions, financial instrument classification, receivables, inventories, contract assets, long-term equity investments, fixed assets, borrowing costs, intangible assets, long-term deferred expenses, contract liabilities, employee compensation, provisions, share-based payments, revenue, government grants, deferred income tax assets/liabilities, and leases - The company adheres to the Accounting Standards for Business Enterprises, accurately and completely reflecting financial information[272] - The company uses a 12-month operating cycle and adopts Renminbi as its functional currency[273][274][275] - Financial assets are classified into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[293] - The company performs impairment accounting for financial assets measured at amortized cost and financial assets classified as measured at fair value through other comprehensive income based on expected credit losses[306] - Fixed assets are depreciated using the straight-line method, with office furniture depreciated over 3-5 years and electronic equipment over 3-5 years[341] - Intangible assets include software, software copyrights, patent rights, and non-patent technologies; intangible assets with finite useful lives are amortized using the straight-line method, with software copyrights having an estimated useful life of 10 years and software 3-10 years[346][347] - The company recognizes revenue when the customer obtains control of the related goods or services, primarily providing data analysis and customized industry analysis application solutions services[365] - Government grants are classified as asset-related or income-related based on the grant object; asset-related grants reduce the carrying amount of the asset or are recognized as deferred income, while income-related grants are recognized in current profit or loss or reduce related costs[366][367][368] - Share-based payments are classified as equity-settled or cash-settled; equity-settled share-based payments are measured at the fair value of the equity instruments granted to employees[361][362] Taxation The company's main taxes include VAT (13%, 9%, 6%), urban maintenance and construction tax (7%, 5%), and corporate income tax (25%, 16.5%, 20%, 15%), with the company and several subsidiaries enjoying a 15% high-tech enterprise income tax preferential rate, and some subsidiaries benefiting from small and micro-profit enterprise tax incentives Main Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-added tax | 13%, 9%, 6% | | Urban maintenance and construction tax | 7%, 5% | | Corporate income tax | 25%, 16.5%, 20%, 15% | | Education surcharge | 3% | | Local education surcharge | 2%, 1.5%, 1% | - The company and its subsidiaries Wuhan HCR, HCR Zhishu, and Huihechen have obtained high-tech enterprise certificates and enjoy a 15% corporate income tax preferential rate[379][380] - Subsidiaries HCR Zhinong, HCR Information, etc., meet the criteria for small and micro-profit enterprises, enjoying a reduced corporate income tax rate calculated at 25% of taxable income and paid at a 20% tax rate, with the policy extended until December 31, 2027[381] Notes to Consolidated Financial Statement Items This section provides detailed notes on various consolidated financial statement items, including cash, financial assets, receivables, inventories, fixed assets, intangible assets, goodwill, deferred tax assets/liabilities, payables, contract liabilities, employee compensation, long-term borrowings, lease liabilities, provisions, share capital, capital reserves, treasury stock, retained earnings, revenue, costs, expenses, other income, investment income, fair value changes, asset disposal gains/losses, credit impairment losses, asset impairment losses, non-operating income/expenses, income tax expenses, and cash flow items, with top five receivables and contract assets accounting for 19.01% of the total, and provisions mainly for small shareholder lawsuits Composition of Cash and Cash Equivalents | Item | Period-end Balance (CNY) | Period-beginning Balance (CNY) | | :--- | :--- | :--- | | Bank deposits | 261,754,763.33 | 210,271,496.59 | | Other cash and cash equivalents | 53,333,024.70 | 77,439,867.40 | | Total | 315,087,788.03 | 287,711,363.99 | | Of which: Total funds deposited overseas | 25,858,991.08 | 24,439,736.86 | - Trading financial assets primarily consist of principal-protected structured deposits, with an ending balance of CNY 356.16 million[383] Accounts Receivable Aging Distribution | Aging | Period-end Book Balance (CNY) | Period-beginning Book Balance (CNY) | | :--- | :--- | :--- | | Within 1 year (inclusive) | 176,792,246.31 | 260,265,897.44 | | 1 to 2 years | 32,774,574.75 | 13,512,819.55 | | Over 3 years | 9,851,288.84 | 12,273,153.18 | | Total | 230,398,124.59 | 293,355,049.77 | - The top five accounts receivable and contract assets at period-end collectively accounted for 19.01% of the total accounts receivable and contract assets at period-end[390] - Other receivables include CNY 62.14 million in performance compensation receivables and CNY 34.10 million in compensation receivables[404] - The provision for liabilities balance is CNY 55.39 million, mainly related to lawsuits from small and medium shareholders[477] - Share-based payment of CNY 4.73 million was recognized in capital reserves for the current period[480] - Retained earnings at period-end were -CNY 239.44 million, compared to -CNY 207.41 million at the beginning of the period, indicating an expanded loss[486] - Selling expenses for the current period were CNY 46.59 million, a year-on-year decrease of 14.11%, mainly due to reduced personnel expenses[96][493] - Administrative expenses for the current period were CNY 29.30 million, a year-on-year increase of 6.55%, mainly due to the implementation of equity incentives in the current period, increasing share-based payment costs[96][494] - R&D expenses for the current period were CNY 6.99 million, a year-on-year decrease of 65.85%, mainly due to changes in the consolidation scope and the nearing completion of IPO fundraising projects[96][494] R&D Expenses The company's total R&D expenditure for the period was CNY 12.04 million, of which CNY 6.99 million was expensed and CNY 5.04 million was capitalized. The significant capitalized R&D project is "Enterprise AI Application Support Platform R&D," with an estimated total investment of CNY 27.47 million, a current period investment of CNY 5.04 million, and has completed partial enterprise AI application scenario R&D results, with preliminary market application underway R&D Expenses by Nature | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Employee compensation | 9,463,895.19 | 13,311,558.91 | | System development | 1,604,419.38 | 4,520,407.53 | | Rent and property fees | 387,943.44 | 627,255.60 | | Depreciation and amortization | 464,058.49 | 1,507,460.76 | | Office expenses | 42,582.07 | 45,886.21 | | Other | 75,288.92 | 483,843.05 | | Total | 12,038,187.49 | 20,496,412.06 | | Of which: Expensed R&D expenditure | 6,998,520.25 | 20,496,412.06 | | Capitalized R&D expenditure | 5,039,667.24 | - | Significant Capitalized R&D Projects | Project | Estimated Total Investment (CNY) | Current Period Investment (CNY) | Cumulative Investment (CNY) | R&D Progress | | :--- | :--- | :--- | :--- | :--- | | Enterprise AI Application Support Platform R&D | 27,465,000.00 | 5,039,667.24 | 9,163,565.68 | R&D in progress, partial enterprise AI application scenario R&D results completed, and preliminary market application has begun | Changes in Consolidation Scope During the reporting period, the company deregistered Shanghai HCR Shuju Media Technology Co., Ltd., Zhejiang Zhixing Shuxi Technology Co., Ltd. Huzhou Branch, and Shanghai Huizhi Yide Enterprise Management Consulting Co., Ltd. Guangzhou Branch, resulting in changes to the consolidation scope - The company deregistered Shanghai HCR Shuju Media Technology Co., Ltd., Zhejiang Zhixing Shuxi Technology Co., Ltd. Huzhou Branch, and Shanghai Huizhi Yide Enterprise Management Consulting Co., Ltd. Guangzhou Branch[106][527] Interests in Other Entities The company holds interests in several wholly-owned or controlled subsidiaries, primarily in the service industry, with registered capital ranging from HKD 2 million to CNY 50 million, and also holds an interest in associate Qianchen Yunhai, recognizing an investment loss of CNY 562.34 for the period Major Subsidiary Information (Partial) | Subsidiary Name | Main Operating Location | Registered Capital | Business Nature | Shareholding Ratio (%) | | :--- | :--- | :--- | :--- | :--- | | Shanghai HCR | Shanghai | 10,010,000 | Services | 100 | | Wuhan HCR | Wuhan | 10,000,000 | Services | 100 | | Huihechen | Shanghai | 5,000,000 | Services | 100 | | HCR Zhishu | Wuhan | 50,000,000 | Services | 100 | | HCR Zhixin | Beijing | 50,000,000 | Services | 70 | | Chengdu Zhihuilian | Chengdu | 10,000,000 | Services | 49 (Indirect Control) | - The company holds 70% equity in Beijing HCR Zhixin Digital Technology Co., Ltd., and controls Chengdu Zhihuilian Digital Technology Co., Ltd. through it[531] Summary Financial Information of Insignificant Associates | Item | Period-end Balance/Current Period Amount (CNY) | | :--- | :--- | | Total carrying amount of investments | 18,099,928.57 | | Net profit | 295,736.57 | | Total comprehensive income | 295,736.57 | Government Grants During the reporting period, the company recognized government grants totaling CNY 1.20 million in current profit or loss, primarily consisting of income-related fiscal support funds, employment stabilization subsidies, and handling fee refunds for individual income tax withholding Government Grants Recognized in Current Profit or Loss | Type | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Income-related | 1,202,786.95 | 1,495,850.87 | | Total | 1,202,786.95 | 1,495,850.87 | - Fiscal support funds amounted to CNY 900,000, employment stabilization subsidies to CNY 99,200, and handling fee refunds for individual income tax withholding to CNY 191,100[495] Financial Instrument Risks The company faces credit risk, liquidity risk, and market risk (primarily exchange rate risk), managed through credit policies, continuous monitoring of receivables and bank deposits, cash flow forecasting, financing agreements, and potential hedging for foreign currency exposures - The company faces credit risk, liquidity risk, and market risk (exchange rate risk)[536] - Credit risk is managed by transacting with creditworthy counterparties, assessing customer creditworthiness, continuously monitoring accounts receivable, and making provisions for expected credit losses[537] Credit Risk Asset Book Balance and Impairment Provisions | Item | Book Balance (CNY) | Impairment Provisions (CNY) | | :--- | :--- | :--- | | Accounts receivable | 230,398,124.59 | 62,171,098.02 | | Other receivables | 115,960,677.23 | 98,371,046.25 | | Total | 346,358,801.82 | 160,542,144.27 | - Liquidity risk is managed by continuously monitoring funding needs and securing commitments for backup funding, as well as entering into credit line agreements with major banking partners[539][540] - Exchange rate risk primarily arises from foreign currency-denominated assets and liabilities in USD, EUR, HKD, and GBP; the company's treasury department is responsible for monitoring and may use forward foreign exchange contr