旷达科技(002516) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides crucial preliminary information, the report's structural overview, and definitions of key terms Important Notice The Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content - The company's Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[4] - In the first half of 2025, domestic automobile production and sales increased by 12.50% and 11.40% year-on-year, respectively, with new energy vehicle production and sales significantly increasing by 41.40% and 40.30%, reaching 44.30% of total sales[6] - The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital[8] Table of Contents This section lists the report's overall chapter structure, including important notice, company profile, MD&A, corporate governance, significant matters, share changes, bond information, financial report, and other submitted data List of Documents for Inspection This section lists the documents available for inspection during the reporting period, including signed financial statements and publicly disclosed company files - Documents for inspection include the 2025 semi-annual financial statements signed and sealed by the legal representative, the chief financial officer, and the head of the accounting department[13] - Documents for inspection also include the originals of all company documents and announcements publicly disclosed during the reporting period[14] Definitions This section provides definitions for common terms and company names used throughout the report, clarifying references to "the Company" and its major subsidiaries - "The Company," "Company," and "Kuangda Technology" all refer to Kuangda Technology Group Co., Ltd[16] - Lists abbreviations for several subsidiaries, including Kuangda Interior, Kuangda New Energy, and Kuangda Fiber, and their respective references[16] Company Profile and Key Financial Indicators This section provides the company's basic information and a summary of its key financial performance and position I. Company Profile This section provides the company's fundamental information, including its stock ticker, code, listing exchange, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Kuangda Technology | | Stock Code | 002516 | | Stock Exchange | Shenzhen Stock Exchange | | Company's Chinese Name | 旷达科技集团股份有限公司 | | Company's Legal Representative | Gong Xudong | II. Contact Person and Contact Information This section discloses the contact details for the company's Board Secretary and Securities Affairs Representative for investor communication Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Chen Yan | No. 1 Kuangda Road, Xueyan Town, Wujin District, Changzhou City, Jiangsu Province | 0519-86159358 | 0519-86549358 | yan.chen@kuangdacn.com | III. Other Information This section confirms that the company's contact details, information disclosure, and document storage locations remained unchanged during the reporting period - The company's registered address, office address, website, and email remained unchanged during the reporting period[20] - Information disclosure and document storage locations remained unchanged during the reporting period, as detailed in the 2024 annual report[21] IV. Key Accounting Data and Financial Indicators This section presents the company's key accounting data and financial indicators for the first half of 2025, highlighting year-on-year changes in revenue, net profit, and cash flow Key Accounting Data and Financial Indicators (Year-on-Year Change) | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,066,120,667.23 | 995,540,689.33 | 7.09% | | Net Profit Attributable to Shareholders of Listed Company | 76,773,860.00 | 71,742,096.71 | 7.01% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 71,901,768.18 | 59,347,163.90 | 21.15% | | Net Cash Flow from Operating Activities | 70,468,980.92 | 23,734,328.79 | 196.91% | | Basic Earnings Per Share (yuan/share) | 0.0522 | 0.0488 | 6.97% | | Diluted Earnings Per Share (yuan/share) | 0.0518 | 0.0488 | 6.15% | | Weighted Average Return on Net Assets | 2.09% | 1.99% | 0.10% | | End of Current Reporting Period (yuan) | End of Prior Year (yuan) | Change from Prior Year-End | | Total Assets | 4,459,918,687.21 | 4,558,717,928.94 | -2.17% | | Net Assets Attributable to Shareholders of Listed Company | 3,646,421,449.94 | 3,672,353,193.39 | -0.71% | V. Differences in Accounting Data under Domestic and Overseas Accounting Standards This section confirms that there are no material differences in net profit and net assets when comparing financial reports prepared under international or overseas accounting standards with those under Chinese accounting standards - The company's financial reports for the reporting period show no differences in net profit and net assets when disclosed under international accounting standards versus Chinese accounting standards[24] - The company's financial reports for the reporting period show no differences in net profit and net assets when disclosed under overseas accounting standards versus Chinese accounting standards[25] VI. Non-Recurring Gains and Losses and Amounts This section itemizes the company's non-recurring gains and losses for the reporting period, totaling 4.87 million yuan, primarily from government subsidies and fair value changes Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | Explanation | | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets | -73,711.73 | | | Government grants recognized in current profit or loss (excluding those closely related to the company's ordinary operations, compliant with national policies, enjoyed at fixed standards, and with a continuous impact on the company's profit or loss) | 1,500,376.78 | VAT input credit and tax reductions are government grants related to the company's ordinary operations and are recognized as recurring gains in other income | | Gains or losses from changes in fair value of financial assets and liabilities, and investment gains or losses from disposal of financial assets and liabilities, excluding effective hedging activities related to the company's ordinary operations | 6,349,823.89 | | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 170,000.00 | | | Gains or losses from debt restructuring | -4,140,000.00 | | | Other non-operating income and expenses apart from the above | 1,369,274.14 | | | Other gains and losses that meet the definition of non-recurring gains and losses | 695,186.30 | This represents the portion calculated based on the company's share of non-recurring gains and losses from joint ventures | | Less: Income tax impact | 1,675,057.56 | | | Less: Impact on minority interests (after tax) | -676,200.00 | | | Total | 4,872,091.82 | | Management Discussion and Analysis This section provides an in-depth analysis of the company's operations, financial performance, core competencies, and risk factors during the reporting period I. Principal Businesses Engaged in by the Company During the Reporting Period The company's main businesses include the R&D, production, and sales of automotive interior materials and components, as well as the investment and operation of photovoltaic power stations, with a strategic entry into RF front-end filters through a joint venture - The company's principal businesses are the research, development, production, and sale of automotive interior materials and components, and the investment and operation of photovoltaic power stations[30] - The company has entered the radio frequency front-end filter field through its investment in the joint venture Xintouwei[30] 1. Automotive Interior Components Business The company's automotive interior components business, a benchmark in the industry, focuses on R&D, production, and sales of diverse interior materials and components, actively expanding into the new energy vehicle market - The company's automotive interior business focuses on the research, development, production, and sales of automotive interior products, strengthening cooperation with traditional automakers and actively expanding into the new energy vehicle interior market[31] - Main products include woven fabrics, eco-friendly synthetic leather, microfiber suede, and related interior components, widely used in automotive seats, headliners, and door panels, with some high-end products also applied in high-speed rail and bullet trains[31][37] - The company adopts a "produce-to-order" production philosophy and a "direct sales" model, serving as a Tier-2 supplier to automotive OEMs[38] 2. New Energy Business The company's new energy business encompasses photovoltaic power generation and filter technology, with PV facing operational challenges and the filter business in early-stage production and market development - The photovoltaic power generation business is affected by curtailment, market-based transactions, and time-of-use pricing policies, leading to an 18.82% decrease in power generation and a decline in average electricity prices in the first half of the year, resulting in significant performance fluctuations[33][35] - As of the end of June 2025, the company owns 7 photovoltaic power stations with a total installed capacity of 200MW, having cumulatively sold 111.9608 million kWh of electricity[35] - The filter business, through the joint venture Xintouwei, is engaged in small-batch production of some products, with a focus on improving yield rates and expanding customer base, targeting the domestic mid-to-high-end market[33] II. Analysis of Core Competitiveness The company's core competitiveness stems from its comprehensive automotive interior industry chain, robust R&D capabilities, strong brand, stable customer base, and agile market response, further bolstered by its strategic entry into the RF filter sector - The company's automotive interior components business possesses a complete industry chain from raw materials to finished products, offering advantages in cost control, quality management, and supply chain stability[40] - The company continuously invests in research and development, maintaining technological leadership in automotive interior material innovation and collaborating deeply with renowned domestic and international research institutions[40] - Through its joint venture Xintouwei's acquisition of Japan's NSD company, the business successfully entered the radio frequency front-end filter field, establishing a comprehensive patent and intellectual property layout for future development[41] III. Analysis of Principal Business Analysis of the company's principal business reveals a 7.09% increase in operating revenue, primarily driven by the automotive products sector, while the electricity sector experienced a decline Key Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,066,120,667.23 | 995,540,689.33 | 7.09% | | Operating Cost | 809,393,917.80 | 771,112,371.87 | 4.96% | | Selling Expenses | 9,933,665.88 | 12,168,632.64 | -18.37% | | Administrative Expenses | 68,901,933.49 | 60,899,152.57 | 13.14% | | Financial Expenses | 1,783,439.13 | 1,814,296.80 | -1.70% | | Income Tax Expenses | 24,041,799.23 | 16,270,526.53 | 47.76% | | R&D Investment | 28,647,919.64 | 33,162,743.44 | -13.61% | | Net Cash Flow from Operating Activities | 70,468,980.92 | 23,734,328.79 | 196.91% | | Net Cash Flow from Investing Activities | -1,731,109.00 | 71,773,233.27 | -102.41% | | Net Cash Flow from Financing Activities | -145,886,429.27 | -95,402,190.20 | -52.92% | | Net Increase in Cash and Cash Equivalents | -77,008,846.67 | 40,887.07 | -188,445.23% | Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Current Reporting Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Period Amount (yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Automotive Products Industry | 988,644,112.51 | 92.73% | 900,304,136.83 | 90.43% | 9.81% | | | Power Industry | 77,476,554.72 | 7.27% | 95,236,552.50 | 9.57% | -18.65% | | By Product | Fabric | 392,957,704.88 | 36.86% | 315,413,087.77 | 31.68% | 24.59% | | | Synthetic Leather | 302,332,440.11 | 28.36% | 283,727,783.45 | 28.50% | 6.56% | | | Seat Covers | 167,627,423.19 | 15.72% | 166,982,674.74 | 16.77% | 0.39% | | | Electricity | 77,454,903.34 | 7.27% | 90,717,159.69 | 9.11% | -14.62% | | By Region | Domestic | 1,061,102,999.02 | 99.53% | 990,038,556.17 | 99.45% | 7.18% | | | International | 5,017,668.21 | 0.47% | 5,502,133.16 | 0.55% | -8.81% | Industry, Product, or Region Accounting for Over 10% of Company's Operating Revenue or Operating Profit | Category | Item | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Automotive Products Industry | 988,644,112.51 | 765,635,395.80 | 22.56% | 9.81% | 5.52% | 3.15% | | | Power Industry | 77,476,554.72 | 43,758,522.00 | 43.52% | -18.65% | -3.94% | -8.65% | | By Product | Fabric | 392,957,704.88 | 297,641,028.28 | 24.26% | 24.59% | 21.91% | 1.67% | | | Synthetic Leather | 302,332,440.11 | 230,509,820.65 | 23.76% | 6.56% | -1.60% | 6.32% | | | Seat Covers | 167,627,423.19 | 144,927,969.52 | 13.54% | 0.39% | -1.99% | 2.09% | | | Electricity | 77,454,903.34 | 43,741,664.31 | 43.53% | -14.62% | 0.76% | -8.62% | | By Region | Domestic | 1,061,102,999.02 | 805,972,574.30 | 24.04% | 7.18% | 5.14% | 1.47% | 1. Capacity Situation During the reporting period, the company's automotive interior business saw a general increase in capacity utilization, particularly for woven fabrics and seat covers Company's Own Capacity Status | Product Category | Unit | Total Capacity Current Period | Capacity Utilization Current Period | Total Capacity Prior Year Period | Capacity Utilization Prior Year Period | YoY Change in Capacity Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yarn (Colored Yarn) | Tons | 6,025 | 56% | 5,750 | 49% | 7% | | Woven Fabric | 10,000 meters | 1,092.32 | 63% | 1,066.49 | 52% | 11% | | Seat Covers | 10,000 sets | 66.86 | 79% | 80 | 65% | 14% | | Synthetic Leather | 10,000 meters | 606.50 | 72% | 513.65 | 63% | 9% | | Microfiber Products | 10,000 meters | 89.86 | 18% | 60 | 20% | -2% | - Woven fabric capacity utilization increased by 11%, primarily due to increased production of fly-knit fabrics and expanding market demand[49] - Seat cover capacity utilization increased by 14%, mainly due to the company's optimization of project selection, adjustment of product structure, and upgrades to the seat cover workshop, enhancing production efficiency[49] 2. Sales Model and Channel Situation The company employs a dual sales model for its colored differentiated fiber products and a direct sales approach for its interior components business, targeting automotive OEMs or their Tier-1 suppliers - The company's colored differentiated fiber products adopt a sales model combining export and domestic sales, with exports targeting finished product manufacturers and domestic sales providing raw materials to the company's downstream industry chain[50] - The company's interior components business primarily uses a "direct sales" model for its final products, serving as a Tier-2 supplier to automakers and selling directly to OEMs or their Tier-1 suppliers[50] 3. Selling Expenses and Composition During the reporting period, the company's selling expenses totaled 9.93 million yuan, a year-on-year decrease of 18.37%, with employee compensation and warehousing fees as major components Selling Expense Composition | Item | Amount Current Period (yuan) | Amount Prior Period (yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Employee Compensation | 5,411,730.02 | 5,272,676.73 | 2.64% | | Warehousing Fees | 1,775,599.05 | 1,755,720.47 | 1.13% | | Business Entertainment Expenses | 878,861.59 | 1,055,643.71 | -16.75% | | Office Expenses and Others | 1,328,682.11 | 1,254,538.03 | 5.91% | | Travel Expenses | 383,768.11 | 351,122.41 | 9.30% | | Equity Incentive Expenses | 155,025.00 | 0 | 100.00% | | Product Quality Assurance Losses | 0 | 2,478,931.29 | -100.00% | | Total | 9,933,665.88 | 12,168,632.64 | -18.37% | 7. Inventory Situation During the reporting period, the company's inventory turnover was 98 days, with the inventory balance decreasing by 3.10% year-on-year, and an impairment provision of 55.49 million yuan recorded at period-end - During the reporting period, the company's inventory turnover days were 98 days, and the inventory balance decreased by 3.10% year-on-year[54] - As of June 30, 2025, the book balance of inventory impairment provision was 55,489,638.33 yuan[56] - The company generally calculates inventory impairment provisions on an item-by-item basis, but for numerous low-unit-price inventories, it calculates them by inventory category[56] V. Analysis of Non-Principal Business This section analyzes the impact of the company's non-principal business activities on total profit, noting that most of these items are non-recurring and stem from various financial and operational adjustments Impact of Non-Principal Business on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -15,388,706.68 | -15.41% | Investment income from principal-protected wealth management products, losses from equity investments and debt restructuring | No | | Gains or Losses from Changes in Fair Value | 4,638,793.94 | 4.65% | Investment income from principal-protected wealth management products | No | | Asset Impairment | 16,832,875.62 | 16.86% | Inventory impairment losses | No | | Non-Operating Income | 2,774,635.76 | 2.78% | Insurance claims and quality claims | No | | Non-Operating Expenses | 1,460,291.60 | 1.46% | Public welfare donations, disposal of non-current assets | No | | Other Income | 4,015,289.73 | 4.02% | Government grants, VAT input credit, and individual income tax handling fee refunds | No | | Credit Impairment Losses | 14,617,639.77 | 14.64% | Provision for bad debts on accounts receivable and notes receivable | No | | Asset Disposal Income | -18,781.75 | -0.02% | Losses from disposal of fixed assets | No | VI. Analysis of Assets and Liabilities The company's asset and liability status at the end of the reporting period shows a slight decrease in total assets and net assets attributable to shareholders, with internal structural adjustments in asset composition Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (yuan) | Proportion of Total Assets | Amount at End of Prior Year (yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 235,380,692.62 | 5.28% | 312,389,539.29 | 6.85% | -1.57% | | Accounts Receivable | 1,069,731,545.55 | 23.99% | 1,003,425,913.46 | 22.01% | 1.98% | | Inventory | 356,783,467.08 | 8.00% | 378,551,028.04 | 8.30% | -0.30% | | Long-term Equity Investments | 520,885,339.48 | 11.68% | 530,893,689.72 | 11.65% | 0.03% | | Fixed Assets | 1,044,477,810.10 | 23.42% | 1,082,266,341.09 | 23.74% | -0.32% | | Construction in Progress | 38,965,054.37 | 0.87% | 20,364,460.88 | 0.45% | 0.42% | | Lease Liabilities | 52,566,421.53 | 1.18% | 76,301,724.29 | 1.67% | -0.49% | - As of the end of the reporting period, there were no restrictions on the company's asset rights[59] VII. Analysis of Investment Status During the reporting period, the company's investment amount significantly increased by 100%, with no securities, derivative, or major equity/non-equity investments, nor any use of raised funds Investment Amount During Reporting Period | Investment Amount Current Period (yuan) | Investment Amount Prior Year Period (yuan) | Change Rate | | :--- | :--- | :--- | | 10,000,000.00 | 0.00 | 100.00% | - The company had no securities investments or derivative investments during the reporting period[61][62] - The company had no use of raised funds during the reporting period[63] VIII. Significant Asset and Equity Disposals This section confirms that the company did not undertake any significant asset or equity disposals during the reporting period - The company did not dispose of any significant assets during the reporting period[64] - The company did not dispose of any significant equity during the reporting period[65] IX. Analysis of Major Holding and Participating Companies This section presents the financial data of the company's major holding and participating companies, highlighting the significant performance decline of Kuangda New Energy Investment Co., Ltd Major Subsidiaries and Associates with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Principal Business | Registered Capital (yuan) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Kuangda Interior | Subsidiary | Automotive Interior | 692,000,000 | 1,506,132,044.79 | 908,420,012.00 | 507,731,971.80 | 33,448,122.22 | 28,549,621.38 | | Kuangda Fiber | Subsidiary | Automotive Interior | 100,000,000 | 159,586,487.48 | 129,643,584.59 | 82,066,064.70 | 7,739,203.57 | 7,845,405.55 | | Kuangda Textile | Subsidiary | Automotive Interior | 200,000,000 | 409,174,245.37 | 260,336,201.32 | 201,011,873.72 | 14,650,721.47 | 12,200,952.89 | | Tianjin Kuangda | Subsidiary | Automotive Interior | 50,000,000 | 148,986,221.79 | 50,128,122.54 | 152,653,048.91 | 11,315,661.21 | 8,239,430.96 | | Changchun Kuangda | Subsidiary | Automotive Interior | 20,000,000 | 178,108,691.13 | 84,029,681.32 | 179,173,997.21 | 16,131,014.05 | 11,882,751.32 | | Yulin Kuangda | Subsidiary | Photovoltaic Power Generation | 150,000,000 | 375,466,941.15 | 207,775,103.56 | 31,033,438.24 | 15,123,122.39 | 12,476,444.61 | | Kuangda Lanchen | Subsidiary | Business Services | 250,000,000 | 353,693,206.78 | 353,693,206.78 | 0 | -8,631,808.23 | -8,631,808.23 | - The performance of subsidiary Kuangda New Energy Investment Co., Ltd. significantly declined year-on-year, primarily due to photovoltaic power generation curtailment, market-based transactions, and time-of-use pricing policies, as well as the filter project's capacity ramp-up and investment cycle[67] X. Structured Entities Controlled by the Company This section states that the company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[68] XI. Risks Faced by the Company and Countermeasures The company faces risks including intense market competition in automotive interiors, evolving new energy vehicle interior demands, photovoltaic power curtailment, marketization risks, and potential underperformance in the filter project's market expansion - The automotive interior components business faces fierce market competition and challenges from upgrading new energy vehicle interior demands[68][39] - The photovoltaic power generation business faces risks of income volatility due to curtailment, market-based transactions, and time-of-use pricing policies[72] - The filter project investment carries risks of market expansion falling short of expectations and investment management challenges[73] - The company's countermeasures include introducing MES systems, intelligent upgrades, strengthening design and R&D platforms, expanding into new environmentally friendly products and fields, optimizing power station operations, and closely monitoring the progress of the filter project[68][69][70][71][72][73] XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan This section states that the company has not formulated a market value management system nor disclosed a valuation enhancement plan - The company has not formulated a market value management system[74] - The company has not disclosed a valuation enhancement plan[74] XIII. Implementation of "Dual Improvement in Quality and Returns" Action Plan This section states that the company has not disclosed an announcement regarding its "Dual Improvement in Quality and Returns" action plan - The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan[74] Corporate Governance, Environment, and Society This section covers changes in the company's governance structure, profit distribution, employee incentives, environmental disclosures, and social responsibility initiatives I. Changes in Directors, Supervisors, and Senior Management This section confirms that 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[76] II. Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period This section states the company's plan not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital for the half-year period - The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital for the half-year period[77] III. Implementation of Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures The company actively implemented its equity incentive and employee stock ownership plans, with the 2024 restricted stock incentive plan's first lifting of restrictions approved and the employee stock ownership plan's first unlocking period matured - The 2024 restricted stock incentive plan has completed its grant registration and was listed on July 12, 2024[80] - On June 27, 2025, the company approved the resolution for the first lifting of restrictions under the 2024 restricted stock incentive plan, with 5.24 million shares eligible for release[80] - The first unlocking period for the company's 2024 employee stock ownership plan matured on July 8, 2025, corresponding to 4.6706 million shares eligible for unlocking[83] IV. Environmental Information Disclosure The company and its major subsidiaries are listed as enterprises required to disclose environmental information, with reports accessible online, and no environmental accidents occurred during the reporting period - The listed company and its major subsidiaries (Kuangda Technology, Kuangda Automotive Interior Systems, Changzhou Kuangda Textile Technology Development Co., Ltd.) have been included in the list of enterprises required to disclose environmental information by law[84][85] - The company's photovoltaic power generation business is classified as a green power development energy project[86] - No environmental accidents occurred at the company or its subsidiaries during the reporting period[87][88] V. Social Responsibility The company actively fulfills its social responsibilities by engaging in public welfare, promoting green and environmentally friendly product development, and adhering to a "safety first" management policy - The company adheres to its mission of "being an industry expert and an industry supporting role" and practices its corporate vision of "leading China, serving the world"[89] - During the reporting period, the company donated 1 million yuan to the Xueyan Town Chamber of Commerce Education and Health Fund and participated in public welfare activities such as "A Bag of Milk Walkathon"[90] - The company adheres to a "green, healthy, safe, high-quality, personalized" technology R&D roadmap, develops a circular economy, and implements a "safety first, prevention-oriented" safety management policy[90] Significant Matters This section details important events and disclosures, including commitments, related party transactions, litigation, and other material information I. Commitments Fulfilled and Overdue Unfulfilled by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period This section states that no commitments by the company or related parties were fulfilled or overdue unfulfilled during or as of the end of the reporting period - The company reports no commitments by its actual controller, shareholders, related parties, acquirers, or the company itself that were fulfilled during the reporting period or overdue unfulfilled as of the end of the reporting period[92] II. Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company This section confirms that there were no non-operating funds occupied by the controlling shareholder or other related parties from the listed company during the reporting period - The company reports no non-operating funds occupied by the controlling shareholder or other related parties from the listed company during the reporting period[93] III. Irregular External Guarantees This section states that the company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[94] IV. Appointment and Dismissal of Accounting Firms This section states that the company's semi-annual report is unaudited - The company's semi-annual report is unaudited[95] V. Board of Directors' and Supervisory Board's Explanation on "Non-Standard Audit Report" for the Current Reporting Period This section states that there was no non-standard audit report for the current reporting period - There was no non-standard audit report for the company during the reporting period[96] VI. Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year This section states that there was no non-standard audit report for the previous year - There was no non-standard audit report for the company for the previous year during the reporting period[96] VII. Bankruptcy Reorganization Matters This section states that no bankruptcy reorganization matters occurred for the company during the reporting period - No bankruptcy reorganization matters occurred for the company during the reporting period[96] VIII. Litigation Matters The company had no significant litigation or arbitration matters during the reporting period, though a prior lawsuit by Kuangda New Energy for 28.06 million yuan in performance compensation remains procedurally terminated due to lack of executable assets - The company had no significant litigation or arbitration matters during this reporting period[97] Other Litigation Matters | Basic Information of Litigation (Arbitration) | Amount Involved (10,000 yuan) | Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Enforcement Status of Litigation (Arbitration) Judgment | | :--- | :--- | :--- | :--- | :--- | :--- | | Kuangda New Energy sued Wang Guoguang to enforce relevant terms of the "Joint Venture Agreement" and demand payment of performance compensation and interest for 2016 and 2017 | 2,806 | No | Second instance judgment rendered | Ruled to preserve Wang Guoguang's Guoguang Animal Husbandry equity valued at 28.06 million yuan, and ordered Wang Guoguang to pay performance compensation, case acceptance fees, and preservation fees; the final judgment upheld the original verdict | No executable assets currently, procedurally terminated | IX. Penalties and Rectification This section states that the company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[99] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller This section states that there were no integrity issues concerning the company, its controlling shareholder, or actual controller during the reporting period - There were no integrity issues concerning the company, its controlling shareholder, or actual controller during the reporting period[100] XI. Significant Related Party Transactions During the reporting period, the company engaged in daily operating-related procurement and leasing transactions with related parties, all at fair market prices and within approved limits, with no other significant related party transactions Related Party Transactions Related to Ordinary Operations (Procurement and Leasing) | Related Party | Related Party Relationship | Type of Related Party Transaction | Content of Related Party Transaction | Pricing Principle | Related Party Transaction Price | Amount (10,000 yuan) | Proportion of Similar Transactions | Approved Transaction Limit (10,000 yuan) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Kuangji Auto Parts Co., Ltd. | Enterprise controlled by actual controller's relatives | Procurement | Base fabric, processing fees | Fair pricing | Market price | 946.47 | 5.47% | 2,300 | No | | Changzhou Langyuehang Trading Co., Ltd. | Enterprise controlled by actual controller, company director, and senior management's relatives | Procurement | Felt, non-woven fabric, accessories | Fair pricing | Market price | 150.75 | 0.87% | 450 | No | | Anhui Autefu Automotive Interior Technology Co., Ltd. | Enterprise controlled by actual controller's relatives | Procurement | Sponge, processing | Fair pricing | Market price | 37.46 | 0.22% | 350 | No | | Jiangsu Kuangda Plastic Technology Co., Ltd. | Enterprise controlled by the same ultimate controlling party | Leasing | Property | Fair pricing | Market price | 660.6 | - | 1,450 | No | | Kuangda Holding Group Co., Ltd. | Enterprise controlled by the same ultimate controlling party | Leasing | Property | Fair pricing | Market price | 321.1 | - | 700 | No | | Jiangsu Kuangda Plastic Technology Co., Ltd. | Enterprise controlled by the same ultimate controlling party | Acceptance of Services | Landscaping maintenance | Fair pricing | Market price | 0 | - | 50 | No | | Total | | | | | | 2,116.38 | | 5,300 | | - The company had no related party transactions involving the acquisition or disposal of assets or equity during the reporting period[102] - The company had no non-operating related party receivables or payables during the reporting period[104] XII. Significant Contracts and Their Performance The company had no trusteeship or contracting arrangements, but engaged in various property and equipment leases as a lessee, with approved guarantee limits for subsidiaries totaling 1.73 billion yuan, and 615 million yuan in outstanding bank wealth management products - The company had no trusteeship or contracting situations during the reporting period[108][109] - The company, as a lessee, entered into multiple property and equipment lease contracts involving subsidiaries such as Kuangda Interior, Kuangda Fiber, Kuangda Textile, Guangzhou Kuangda, Foshan Kuangda, Liuzhou Kuangda, Tianjin Kuangda, and Xi'an Kuangda[110][111][112][113][114][115][116][117][118][119] Company's Guarantees for Subsidiaries | Name of Guaranteed Party | Date of Guarantee Limit Disclosure | Guarantee Limit (10,000 yuan) | Total Approved Guarantee Limit for Subsidiaries Current Period (10,000 yuan) | Total Actual Guarantees for Subsidiaries Current Period (10,000 yuan) | | :--- | :--- | :--- | :--- | :--- | | Kuangda Interior | March 22, 2025 | 10,000 | 173,000 | 0 | | Kuangda Interior | March 22, 2025 | 30,000 | | | | Kuangda Interior | March 22, 2025 | 5,000 | | | | Kuangda Interior | March 22, 2025 | 10,000 | | | | Kuangda Interior | March 22, 2025 | 3,000 | | | | Kuangda Interior | March 22, 2025 | 20,000 | | | | Yulin Kuangda | March 22, 2025 | 25,000 | | | | Ruoqiang Guoxin | March 22, 2025 | 5,000 | | | | Heze Longxing | March 22, 2025 | 5,000 | | | | Tonghai Kuangda | March 22, 2025 | 15,000 | | | | Zhangjiakou Kuangda | March 22, 2025 | 15,000 | | | | Wenquan Guosheng | March 22, 2025 | 15,000 | | | | Fuyun Guolian | March 22, 2025 | 15,000 | | | Wealth Management Situation | Specific Type | Source of Wealth Management Funds | Amount of Wealth Management Transactions (10,000 yuan) | Outstanding Balance (10,000 yuan) | Overdue Unrecovered Amount (10,000 yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 68,000 | 61,500 | 0 | | Total | | 68,000 | 61,500 | 0 | XIII. Explanation of Other Significant Matters This section discloses the maturity of the employee stock ownership plan's first unlocking period and the approval of the first lifting of restrictions for the 2024 restricted stock incentive plan, with related shares now listed - The first unlocking period for the employee stock ownership plan matured on July 8, 2025, corresponding to 4.6706 million shares eligible for unlocking[128] - The conditions for the first lifting of restrictions under the 2024 restricted stock incentive plan were met, with 5.24 million shares eligible for release, and these shares were listed for trading on July 14, 2025[128] XIV. Significant Matters of Company Subsidiaries This section states that there were no significant matters concerning the company's subsidiaries during the reporting period - There were no significant matters concerning the company's subsidiaries during the reporting period[129] Share Changes and Shareholder Information This section details changes in the company's share capital, shareholder structure, and the shareholdings of directors, supervisors, and senior management I. Share Change Situation During the reporting period, the company's total share capital remained unchanged, while restricted shares decreased by 1.46 million shares due to annual calculations for directors and senior management, leading to a corresponding increase in unrestricted shares Share Change Situation | Category | Quantity Before This Change | Proportion Before This Change | Increase/Decrease (+, -) This Change | Quantity After This Change | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 16,595,000 | 1.13% | -1,460,000 | 15,135,000 | 1.03% | | II. Unrestricted Shares | 1,454,243,682 | 98.87% | +1,460,000 | 1,455,703,682 | 98.97% | | III. Total Shares | 1,470,838,682 | 100.00% | 0 | 1,470,838,682 | 100.00% | - The decrease in restricted shares was primarily due to the comprehensive calculation of annual restricted shares for the company's directors and senior management[131] 2. Changes in Restricted Shares During the reporting period, the total restricted shares held by the company's directors and senior management decreased by 1.46 million shares, primarily due to the comprehensive annual calculation of restricted shares Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Shares Released This Period (shares) | Shares Increased This Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | Date of Release | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wu Kai | 5,150,000 | 150,000 | 0 | 5,000,000 | Equity Incentive Restricted Shares | Executed according to relevant rules | | Gong Xudong | 5,687,500 | 1,000,000 | 0 | 4,687,500 | Senior Management Locked Shares & Equity Incentive Restricted Shares | Executed according to relevant rules | | Chen Lele | 1,660,000 | 60,000 | 0 | 1,600,000 | Equity Incentive Restricted Shares | Executed according to relevant rules | | Wu Shuangquan | 875,000 | 75,000 | 0 | 800,000 | Equity Incentive Restricted Shares | Executed according to relevant rules | | Chen Yan | 1,465,000 | 175,000 | 0 | 1,290,000 | Senior Management Locked Shares & Equity Incentive Restricted Shares | Executed according to relevant rules | | Other Directors, Supervisors, and Senior Management | 1,757,500 | 0 | 0 | 1,757,500 | Senior Management Locked Shares & Equity Incentive Restricted Shares | Executed according to relevant rules | | Total | 16,595,000 | 1,460,000 | 0 | 15,135,000 | -- | -- | - The change in the number of restricted shares held by directors and senior management was due to the comprehensive calculation of annual restricted shares[134] II. Securities Issuance and Listing This section states that the company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[135] III. Number of Shareholders and Shareholding Status At the end of the reporting period, the company had 39,677 ordinary shareholders, with the controlling shareholder Mr. Shen Jieliang holding 46.63% of shares, of which 213.45 million shares were pledged - The total number of ordinary shareholders at the end of the reporting period was 39,677[136] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at End of Reporting Period (shares) | Change During Reporting Period | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shen Jieliang | Domestic Natural Person | 46.63% | 685,821,524 | 0 | 0 | 685,821,524 | Pledged | 213,450,000 | | Jiangsu Kuangda Venture Capital Co., Ltd. | Domestic Non-State-Owned Legal Person | 3.09% | 45,433,890 | 0 | 0 | 45,433,890 | Not Applicable | 0 | | Changzhou Industrial Investment Group Co., Ltd. | State-Owned Legal Person | 1.56% | 23,006,134 | 0 | 0 | 23,006,134 | Not Applicable | 0 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.95% | 14,009,011 | +4,626,055 | 0 | 14,009,011 | Not Applicable | 0 | | Nomura Orient International Securities - Shanghai Textile (Group) Co., Ltd. - Nomura Orient International Sunrise East No. 1 Single Asset Management Plan | Other | 0.82% | 12,000,000 | 0 | 0 | 12,000,000 | Not Applicable | 0 | | Kuangda Technology Group Co., Ltd. - 2024 Employee Stock Ownership Plan | Other | 0.79% | 11,676,500 | 0 | 0 | 11,676,500 | Not Applicable | 0 | | J. P. Morgan Securities PLC - Proprietary Funds | Overseas Legal Person | 0.67% | 9,787,834 | +4,711,500 | 0 | 9,787,834 | Not Applicable | 0 | | Ma Shuihua | Domestic Natural Person | 0.49% | 7,273,800 | 0 | 0 | 7,273,800 | Not Applicable | 0 | | Kuangda Holding Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 0.49% | 7,260,000 | 0 | 0 | 7,260,000 | Not Applicable | 0 | | China Merchants Bank Co., Ltd. - Southern CSI 1000 ETF | Other | 0.46% | 6,810,172 | +735,600 | 0 | 6,810,172 | Not Applicable | 0 | - Jiangsu Kuangda Venture Capital Co., Ltd. and Kuangda Holding Group Co., Ltd. are enterprises actually controlled by Mr. Shen Jieliang, the company's controlling shareholder and actual controller, and are concerted parties of Mr. Shen Jieliang[137][138] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management This section states that there were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[139] V. Changes in Controlling Shareholder or Actual Controller This section states that 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[140] - The company's actual controller did not change during the reporting period[140] VI. Preferred Share Information This section states that the company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[141] Bond-Related Information This section confirms that there is no bond-related information to report for the company during the reporting period Bond-Related Information This section states that the company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[143] Financial Report This section presents the company's financial statements, including balance sheets, income statements, cash flow statements, and notes to the financial statements I. Audit Report This section states that the company's semi-annual financial report is unaudited - The company's semi-annual financial report is unaudited[145] II. Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025 Consolidated Balance Sheet Key Data (Period-End) | Item | Period-End Balance (yuan) | | :--- | :--- | | Total Assets | 4,459,918,687.21 | | Total Liabilities | 813,162,035.22 | | Total Owners' Equity Attributable to Parent Company | 3,646,421,449.94 | | Total Owners' Equity | 3,646,756,651.99 | Consolidated Income Statement Key Data (Current Period) | Item | H1 2025 (yuan) | | :--- | :--- | | Total Operating Revenue | 1,066,120,667.23 | | Operating Profit | 98,516,771.66 | | Total Profit | 99,831,115.82 | | Net Profit | 75,789,316.59 | | Net Profit Attributable to Parent Company Shareholders | 76,773,860.00 | Consolidated Cash Flow Statement Key Data (Current Period) | Item | H1 2025 (yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 70,468,980.92 | | Net Cash Flow from Investing Activities | -1,731,109.00 | | Net Cash Flow from Financing Activities | -145,886,429.27 | | Net Increase in Cash and Cash Equivalents | -77,008,846.67 | III. Company Basic Information The company, formerly Jiangsu Kuangda Automotive Fabric Group Co., Ltd., was listed on the Shenzhen Stock Exchange on December 7, 2010, with a registered capital of 1.471 billion yuan and a broad business scope - The company's shares were listed and traded on the Shenzhen Stock Exchange on December 7, 2010[185] - The company's registered capital is 1.471 billion yuan, and its legal representative is Gong Xudong[185] - The company's main businesses include automotive interior fabric and power sectors, and it has entered the radio frequency front-end filter field through its investment in the joint venture Xintouwei[185] IV. Basis of Financial Statement Preparation The company's financial statements are prepared in accordance with Chinese Accounting Standards and relevant regulations, using the accrual basis of accounting and historical cost measurement under the going concern assumption - These financial statements are prepared in accordance with the Enterprise Accounting Standards issued by the Ministry of Finance, their application guidelines, interpretations, and other relevant regulations[187] - The company's accounting is based on the accrual method, and, except for certain financial instruments, all items are measured at historical cost[187] - These financial statements are presented on a going concern basis[188] V. Significant Accounting Policies and Accounting Estimates This section details the significant accounting policies and estimates used in preparing the company's financial statements, covering areas such as business combinations, financial instruments, and revenue recognition - The company's financial statements comply with the requirements of the Enterprise Accounting Standards, truthfully and completely reflecting its financial position, operating results, and cash flows[190] - The company classifies financial assets at initial recognition into those measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss, based on the business model for managing the financial assets and their contractual cash flow characteristics[209] - The company's revenue primarily derives from the sale of goods, including automotive textiles and electricity, and is generally recognized when the goods are delivered to the customer[312][313][314] VI. Taxation This section outlines the company's main tax categories and rates, along with various tax incentives enjoyed, such as high-tech enterprise status, R&D expense super deductions, and western development tax benefits Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Value-Added Amount | 13%, 9%, 6%, 5% | | Urban Maintenance and Construction Tax | Actual Amount of Turnover Tax Paid | 7%, 5%, 1% | | Corporate Income Tax | Taxable Income | 25%, 20%, 15%, 12.5%, 5% | - Kuangda Interior and Kuangda Fiber enjoy a 15% corporate income tax preferential rate as high-tech enterprises[355] - The company and its subsidiaries benefit from the R&D expense super deduction policy, allowing R&D expenses not forming intangible assets to be deducted at 100% of the actual amount incurred before tax[356] - The company's wholly-owned subsidiaries in the power business enjoy the Western Development corporate income tax policy, with a reduced tax rate of 15%[358] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes on the various asset, liability, owners' equity, and income statement items within the consolidated financial statements Monetary Funds | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Cash on Hand | 219,938.09 | 198,572.14 | | Bank Deposits | 235,160,754.53 | 312,190,967.15 | | Total | 235,380,692.62 | 312,389,539.29 | Trading Financial Assets | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Financial assets measured at fair value through profit or loss | 617,423,602.65 | 583,170,285.09 | | Of which: Wealth management products | 617,423,602.65 | 583,170,285.09 | | Total | 617,423,602.65 | 583,170,285.09 | Accounts Receivable by Age | Age | Period-End Book Balance (yuan) | Period-Beginning Book Balance (yuan) | | :--- | :--- | :--- | | Within 1 year (inclusive) | 670,508,016.01 | 690,383,535.61 | | 1 to 2 years | 151,827,728.95 | 81,694,590.61 | | 2 to 3 years | 43,472,695.48 | 24,679,461.52 | | Over 3 years | 268,170,284.41 | 255,921,512.05 | | Total | 1,133,978,724.85 | 1,052,679,099.79 | Operating Revenue and Operating Cost | Item | Current Period Revenue (yuan) | Current Period Cost (yuan) | Prior Period Revenue (yuan) | Prior Period Cost (yuan) | | :--- | :--- | :--- | :--- | :--- | | Principal Business | 1,059,078,741.76 | 803,458,594.62 | 987,421,764.99 | 766,638,358.43 | | Other Businesses | 7,041,925.47 | 5,935,323.18 | 8,118,924.34 | 4,474,013.44 | | Total | 1,066,120,667.23 | 809,393,917.80 | 995,540,689.33 | 771,112,371.87 | VIII. R&D Expenses During the reporting period, the company's total R&D expenses were 28.65 million yuan, a 13.61% year-on-year decrease, entirely expensed, with labor and material costs as primary components R&D Expense Composition | Item | Amount Current Period (yuan) | Amount Prior Period (yuan) | | :--- | :--- | :--- | | Labor Costs | 12,905,196.20 | 14,070,870.28 | | Material Costs | 9,102,727.09 | 8,376,040.96 | | Testing Fees | 2,210,998.49 | 933,147.70 | | Depreciation Expenses | 1,619,669.52 | 1,818,165.56 | | Travel Expenses | 471,964.73 | 993,246.96 | | Other | 1,483,376.11 | 6,931,763.66 | | Equity Incentive Expenses | 853,987.50 | 0 | | Amortization of Intangible Assets | 0 | 24,508.32 | | Consulting Fees | 0 | 15,000.00 | | Total | 28,647,919.64 | 33,162,743.44 | | Of which: Expensed R&D Expenditures | 28,647,919.64 | 33,162,743.44 | IX. Changes in Consolidation Scope During the reporting period, the company's consolidation scope changed due to the establishment of a new subsidiary, Xi'an Kuangda Automotive Seat Cover Co., Ltd., with no other types of business combinations occurring - The company had no non-same control business combinations, same control business combinations, or reverse acquisitions during the reporting period[120][121] - The new subsidiary, Xi'an Kuangda Automotive Seat Cover Co., Ltd., was established on February 21, 2025, with a registered capital of 10 million yuan, primarily engaged in automotive parts and accessories manufacturing[121] X. Interests in Other Entities The company holds interests in 27 subsidiaries across diverse business sectors, mostly with 100% ownership, and also maintains equity interests in two important joint ventures accounted for using the equity method - The company owns 27 subsidiaries with diverse business natures, including automotive interior components, new energy, and textiles, with most having a 100% shareholding ratio[122] - The company holds a 50% equity interest in Jiaxing Jiawang Investment Partnership (Limited Partnership) and a 30.41% equity interest in Xintouwei Microelectronics Technology (Anhui) Co., Ltd., both accounted for using the equity method[123] Key Financial Information of Important Joint Ventures (Period-End Balance/Current Period Amount) | Item | Jiaxing Jiawang (yuan) | Xintouwei (Anhui) (yuan) | | :--- | :--- | :--- | | Current Assets | 348,020,581.75 | 347,547,916.03 | | Non-Current Assets | 1,066,781,124.83 | 1,066,781,124.83 | | Total Assets | 1,414,801,706.58 | 1,414,329,040.86 | | Total Liabilities | 193,670,366.48 | 193,670,366.48 | | Owners' Equity Attributable to Parent Company | 335,598,495.77 | 1,157,957,509.65 | | Net Asset Share Calculated by Shareholding Ratio | 167,799,247.89 | 353,086,091.59 | | Operating Revenue | 43,209,751.62 | 43,209,751.62 | | Net Profit | -34,812,087.10 | -34,836,199.98 | XI. Government Grants During the reporting period, the company recognized 1.50 million yuan in government grants in profit or loss, comprising both asset-related and income-related subsidies for various industrial development, technological innovation, and employment support initiatives Government Grants Recognized in Current Profit or Loss | Accounting Account | Amount Current Period (yuan) | Amount Prior Period (yuan) | | :--- | :--- | :--- | | Government grants related to assets | 60,911.16 | 60,911.16 | | Government grants related to income | 1,439,465.62 | 1,201,299.02 | | Total | 1,500,376.78 | 1,262,210.18 | - Government grants related to assets primarily include industrial development funds and industrial economic commission technological transformation subsidies, amortized annually[576] - Government grants related to income include various items such as special funds for scientific and technological innovation development, stable employment subsidies, employment subsidies, awards for advanced units, vocational skills training subsidies, digital transformation project rewards for pilot digital transformation enterprises, and production increase and capacity expansion rewards for industrial enterpr