深赛格(000058) - 2025 Q2 - 季度财报

Section I Important Notice, Table of Contents, and Definitions This section provides essential disclaimers, a structured report directory, a list of reference documents, and definitions of key terms for clarity Important Notice The company's board, supervisory board, and senior management guarantee the accuracy of the semi-annual report, and the company plans no cash dividends or share transfers from capital reserves - Company's board, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[4] - Company's responsible person Liu Qing, chief accountant Xiao Jun, and head of accounting department Xu Zhongyang declare the financial report is true, accurate, and complete[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] Table of Contents This report's clear table of contents outlines nine main chapters, guiding investors through important notices, company profile, management discussion, corporate governance, significant matters, share changes, bond information, financial reports, and other data - The report contains nine main chapters, from important notices to financial reports and supplementary data[7] List of Reference Documents Reference documents include signed and sealed financial statements, original copies of all company documents publicly disclosed on the CSRC-designated website during the reporting period, and other relevant materials - Reference documents include signed and sealed financial statements, original copies of publicly disclosed company documents, and other materials[9][10][11] Definitions This section defines common terms used in the report, including the company, major subsidiaries, related parties, and regulatory bodies, ensuring accurate understanding, with the reporting period from January 1 to June 30, 2025 - The reporting period refers to January 1, 2025, to June 30, 2025[14] - Key definitions include "the Company", "SEG Group", and "SEG Baohua"[14] Section II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and a summary of its key financial performance and asset/liability status for the reporting period I. Company Profile Shenzhen SEG Co., Ltd. is listed on the Shenzhen Stock Exchange under stock codes 000058 and 200058, with Liu Qing as its legal representative - Company stock abbreviations: SEG, SEG B; stock codes: 000058, 200058[16] - Company's legal representative is Liu Qing[16] II. Contact Persons and Information The company's board secretary is Xiao Jun and securities affairs representative is Xiang Qianxi, both located at 31st Floor, Block A, Qunxing Plaza, Huaqiangbei Road, Futian District, Shenzhen - Board Secretary: Xiao Jun; Securities Affairs Representative: Xiang Qianxi[17] - Contact address: 31st Floor, Block A, Qunxing Plaza, Huaqiangbei Road, Futian District, Shenzhen[17] III. Other Information The company's registered address, office address, website, email, and information disclosure locations remained unchanged during the reporting period, as detailed in the 2024 annual report - Company contact information, information disclosure, and storage locations remained unchanged during the reporting period[18][19] IV. Key Accounting Data and Financial Indicators In the first half of 2025, the company's operating revenue decreased by 6.32% to 751.34 million yuan, and net profit attributable to shareholders decreased by 7.04% to 47.35 million yuan, while net cash flow from operating activities significantly increased by 103.53% to 73.80 million yuan 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 751,336,543.24 | 802,063,183.35 | -6.32% | | Net Profit Attributable to Shareholders of Listed Company | 47,345,638.67 | 50,929,722.07 | -7.04% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-recurring Gains and Losses | 55,694,205.05 | 52,760,733.00 | 5.56% | | Net Cash Flow from Operating Activities | 73,799,128.49 | 36,260,033.88 | 103.53% | | Basic Earnings Per Share (yuan/share) | 0.0385 | 0.0414 | -7.00% | | Diluted Earnings Per Share (yuan/share) | 0.0385 | 0.0414 | -7.00% | | Weighted Average Return on Net Assets | 2.34% | 2.51% | -0.17% | | End of Current Reporting Period | End of Prior Year | Change from End of Prior Year | | Total Assets | 5,107,763,710.47 | 5,065,402,435.76 | 0.84% | | Net Assets Attributable to Shareholders of Listed Company | 2,035,977,477.93 | 2,007,073,603.17 | 1.44% | V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards during the reporting period - The company reported no differences in accounting data under domestic and overseas accounting standards during the reporting period[22][23] VI. Non-recurring Gains and Losses Items and Amounts Non-recurring gains and losses totaled -8.35 million yuan for the reporting period, primarily due to non-current asset disposal losses, government grants, entrusted investment gains, entrusted operation management fee income, other non-operating income/expenses, and the share of non-recurring gains/losses from Huakong SEG 2025 Semi-Annual Non-recurring Gains and Losses Items and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 289,654.30 | | Government grants recognized in current profit or loss | 526,992.85 | | Gains and losses from entrusted investment or asset management | 812,941.96 | | Income from entrusted operation management fees | 457,788.14 | | Other non-operating income and expenses apart from the above | -4,441,005.27 | | Other gains and losses items that meet the definition of non-recurring gains and losses | -7,119,011.35 | | Less: Income tax impact | -624,872.43 | | Minority interest impact (after tax) | -499,200.56 | | Total | -8,348,566.38 | - Other gains and losses items meeting the definition of non-recurring gains and losses primarily represent the share of non-recurring gains and losses from Huakong SEG, amounting to -7.12 million yuan[26] Section III Management Discussion and Analysis This section provides a comprehensive analysis of the company's main business operations, core competencies, financial performance, investment activities, and risk management strategies during the reporting period I. Main Businesses Engaged by the Company During the Reporting Period The company's main businesses include electronic market circulation, inspection and testing certification, property operation and urban services, and new energy, with a strategic focus on consolidating existing businesses and developing new growth areas - Company's main businesses include electronic market circulation, inspection and testing certification, property operation and urban services, and new energy[28] - In the first half of 2025, the company's operating revenue was 751.34 million yuan, a 6.32% decrease year-on-year, mainly due to a decline in property operation and urban services[43] - Total profit was 96.23 million yuan, a 6.62% decrease year-on-year, primarily due to reduced investment income from Huakong SEG[43] (I) Main Businesses and Business Models The company's core businesses encompass electronic professional market circulation, inspection and testing certification, property operation and management, and new energy, guided by its "14th Five-Year Plan" to strengthen existing and grow new segments - Company's main businesses cover electronic market circulation, inspection and testing certification, urban services, and new energy[28] - The first half strategy focused on consolidating existing businesses (electronic market, property management) and developing incremental businesses (inspection and testing, new energy)[28] (II) Development Status of the Company's Main Industries The electronic market is growing with AI hardware integration, inspection and testing is expanding with specialization, property management is slowing but has broad market space, and new energy, particularly solar, is rapidly expanding due to policy support - In the first half of 2025, China's GDP grew by 5.3% year-on-year, total retail sales of consumer goods grew by 5.0%, and retail sales of communication equipment increased by 24.1%[29] - China's smartphone market shipments are expected to grow by 1.4% year-on-year, and smart glasses market shipments by 116.1%[30] - As of the end of 2024, China's inspection and testing institutions' operating revenue reached 487.60 billion yuan, a 4.41% increase year-on-year[31] - In 2024, the average operating revenue of top 100 property management enterprises grew by 3.52% year-on-year, indicating a slowdown[33] - In the first half of 2025, national solar power new installed capacity was approximately 212 million kW, a 107% increase year-on-year; cumulative solar power generation was 559.1 billion kWh, a 42.9% increase year-on-year[36] (III) Company's Industry Position The company is a pioneer in electronic market operations with a national chain, a strong technical player in niche inspection and testing, a top-tier property management provider, and an integrated, innovative leader in the new energy sector - The company is the founder of China's electronic professional market business model, having established a national electronic market chain centered in Shenzhen[38] - In inspection and testing certification, the company specializes in rail transit, marine, construction machinery, nuclear power, and wind power, with its technical capabilities and service quality repeatedly recognized nationally[39][40] - The company owns two national first-class property management enterprises and has received multiple industry honors, including "2025 China Property Service Enterprises Top 500 Comprehensive Strength"[41] - The new energy business has formed an integrated industry chain covering investment, construction, operation, and component R&D and production, with cumulative power generation exceeding 100 million kWh[42][48] (IV) Discussion and Analysis of Operations Operating revenue decreased by 6.32% to 751 million yuan due to a decline in property management, while total profit decreased by 6.62% due to reduced investment income from Huakong SEG, despite strategic optimizations across all business segments - Company's operating revenue was 751.34 million yuan, a 6.32% decrease year-on-year, primarily due to a decline in property operation and urban services[43] - Total profit was 96.23 million yuan, a 6.62% decrease year-on-year, primarily due to reduced investment income from Huakong SEG[43] - The new energy cluster's cumulative power generation has exceeded 100 million kWh, with current period power generation showing multi-fold growth year-on-year, continuous optimization of revenue structure, and significantly improved gross profit margin[48] - Electronic market circulation business strengthened its industry position through optimizing business environment, deepening advantageous formats, focusing on industry hotspots, and accelerating informatization construction[44] - Inspection and testing certification business has established a "one headquarters, four bases, and over ten branches" layout, covering rail transit, marine, and nuclear power sectors[45] (V) Disclosure Requirements for the Real Estate Industry under Shenzhen Stock Exchange Self-Regulatory Guidelines No. 3 for Listed Companies – Industry Information Disclosure National real estate investment, completion, and sales declined in H1 2025, with the company's projects in Shenzhen showing recovery, Huizhou growing, and Nantong facing destocking pressure, while the company has no new land reserves and maintains bank loan financing of 441.83 million yuan - From January to June 2025, national real estate development investment decreased by 11.2% year-on-year, housing completion area decreased by 14.8%, and new commercial housing sales decreased by 5.5%[49] - Shenzhen's new commercial residential online sales increased by 41% year-on-year; Huizhou's commercial housing online sales increased by 5.4% year-on-year; Nantong urban area's new home destocking cycle is approximately 24 months[50] - The company has no new land reserve projects or cumulative land reserves[51] Key Project Development Status | City/Region | Project Name | Project Type | Equity Ratio | Development Progress | Land Area (sqm) | Planned GFA (sqm) | Estimated Total Investment (ten thousand yuan) | Cumulative Total Investment (ten thousand yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huizhou | Huizhou SEG Holiday Plaza Phase II Project | Commercial, Apartment | 69.54% | Under Construction | 8,225 | 23,030 | 29,266 | 28,473 | Financing Channels | Financing Channel | Financing Balance at Period End (ten thousand yuan) | Financing Cost Range/Average Financing Cost | | :--- | :--- | :--- | | Bank Loans | 44,182.86 | 3.2%-4.2% | | Total | 44,182.86 | 3.2%-4.2% | - The company provides joint liability guarantees for bank mortgage loans to homebuyers of SEG New City, Nantong SEG, and Huizhou SEG Holiday Plaza Phase II[58] II. Analysis of Core Competencies The company maintains a strong reputation, brand, talent, credit, and industry resources, evidenced by recent awards, and demonstrates distinct core competencies across its electronic market, inspection and testing, property management, and new energy segments - The company was awarded "Leading Enterprise in Quality City Construction" and "Clean Energy Cross-border Carbon Reduction Model Award," continuously enhancing its strength, competitiveness, and influence[62][65] - Electronic market circulation business has built a mature operation and management system based on over 30 years of experience and the geographical advantage of the Huaqiangbei business district, also receiving the "Industry Standard Contribution Award"[65] - Core competitiveness in inspection and testing certification lies in the synergistic development of "equipment + services," advantages in large-scale testing equipment (e.g., 600kN ultra-large thrust vibration table), and continuous innovation capabilities, with R&D investment accounting for no less than 6% of this segment's operating revenue[66][68] - Property operation and urban services hold national first-class property management qualifications, have received multiple industry honors, and are committed to deepening their presence in the third-party market[67] - The new energy sector has formed an integrated industry chain covering investment, construction, operation, and photovoltaic component R&D and production, actively promoting cutting-edge technologies like "optical storage direct flexibility," with cadmium telluride power generation glass achieving breakthroughs in BIPV applications[70][72] III. Analysis of Main Business The company's overall operating revenue decreased by 6.32%, but the profit structure remained stable, with electronic market and inspection/testing showing revenue growth, while new energy's gross profit margin significantly improved despite a revenue decline Year-on-Year Changes in Key Financial Data for Main Business | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 751,336,543.24 | 802,063,183.35 | -6.32% | | Operating Cost | 546,434,239.63 | 598,849,328.66 | -8.75% | | Net Cash Flow from Operating Activities | 73,799,128.49 | 36,260,033.88 | 103.53% | | Net Cash Flow from Investing Activities | -170,276,905.79 | 66,791,563.11 | -354.94% | | Net Cash Flow from Financing Activities | -38,083,624.45 | -272,764,995.12 | 86.04% | - Net cash flow from operating activities increased by 103.53% year-on-year, mainly due to cost reduction and efficiency improvement in property management and optimized structure in new energy business, leading to a year-on-year decrease in cash outflow[73] - Net cash flow from investing activities decreased by 354.94% year-on-year, mainly due to a year-on-year decrease in redemption of bank wealth management products and an increase in investment in power station construction[73] Operating Revenue Composition (by Industry) | Segment | Current Reporting Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Period Amount (yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Electronic Market Circulation | 274,613,761.97 | 36.55% | 270,997,999.50 | 33.79% | 1.33% | | Inspection and Testing Certification | 46,994,986.85 | 6.25% | 45,188,949.81 | 5.63% | 4.00% | | Property Operation and Urban Services | 397,649,804.93 | 52.93% | 448,615,440.20 | 55.93% | -11.36% | | New Energy | 29,320,305.68 | 3.90% | 34,782,790.03 | 4.34% | -15.70% | | Real Estate Development | 2,757,683.81 | 0.37% | 2,478,003.81 | 0.31% | 11.29% | Operating Revenue, Cost, Gross Profit Margin (by Industry) | Segment | Operating Revenue | Operating Cost | Gross Profit Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Electronic Market Circulation | 274,613,761.97 | 116,590,287.67 | 57.54% | 1.33% | -2.24% | 1.55% | | Inspection and Testing Certification | 46,994,986.85 | 35,409,684.65 | 24.65% | 4.00% | 22.32% | -11.29% | | Property Operation and Urban Services | 397,649,804.93 | 371,071,322.05 | 6.68% | -11.36% | -11.65% | 0.31% | | New Energy | 29,320,305.68 | 20,549,438.42 | 29.91% | -15.70% | -28.17% | 12.16% | | Real Estate Development | 2,757,683.81 | 2,813,506.84 | -2.02% | 11.29% | 40.21% | -21.04% | IV. Analysis of Non-Core Business Non-core businesses negatively impacted total profit, with investment losses of 11.31 million yuan (11.75% of total profit) primarily from adjustments to associate earnings and wealth management, and credit impairment losses of 1.47 million yuan (1.53% of total profit) from bad debt provisions Non-Core Business Items and Amounts | Item | Amount (yuan) | Proportion of Total Profit | Explanation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -11,305,524.92 | -11.75% | Mainly due to adjustments to the company's share of profits/losses from associates and wealth management income during the reporting period | Not sustainable | | Asset Impairment | 8,527.66 | 0.01% | Mainly due to the company's reversal of contract asset impairment provisions during the reporting period | Not sustainable | | Non-operating Income | 1,521,839.38 | 1.58% | Mainly due to liquidated damages received by the company during the reporting period | Not sustainable | | Non-operating Expenses | 6,016,912.02 | 6.25% | Mainly due to late payment fees accrued and fines paid by the company during the reporting period | Not sustainable | | Other Income | 911,045.26 | 0.95% | Mainly due to government grants received by the company during the reporting period | Not sustainable | | Credit Impairment Losses | -1,473,251.32 | -1.53% | Mainly due to the company's provision for bad debts on accounts receivable during the reporting period | Not sustainable | V. Analysis of Assets and Liabilities Total assets increased by 0.84% to 5.11 billion yuan, with fixed assets growing significantly by 4.37% to 577 million yuan, while long-term borrowings increased by 1.01% to 570 million yuan, and restricted assets totaled 1.26 billion yuan 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 | 886,104,474.79 | 17.35% | 1,013,767,043.88 | 20.01% | -2.66% | | Accounts Receivable | 314,726,643.23 | 6.16% | 281,974,498.93 | 5.57% | 0.59% | | Inventories | 1,534,075,068.07 | 30.03% | 1,522,788,361.58 | 30.06% | -0.03% | | Investment Properties | 845,819,230.68 | 16.56% | 870,476,018.35 | 17.18% | -0.62% | | Fixed Assets | 576,704,463.60 | 11.29% | 350,583,125.99 | 6.92% | 4.37% | | Construction in Progress | 22,435,844.39 | 0.44% | 117,599,812.50 | 2.32% | -1.88% | | Long-term Borrowings | 569,541,365.52 | 11.15% | 513,608,232.78 | 10.14% | 1.01% | Assets and Liabilities Measured at Fair Value | Item | Amount at Period End (yuan) | | :--- | :--- | | Trading Financial Assets | 68,500,000.00 | | Other Equity Instrument Investments | 24,117,157.54 | | Subtotal Financial Assets | 92,617,157.54 | Asset Rights Restricted at the End of the Reporting Period | Item | Amount (yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 16,685,233.99 | Margin deposits, regulatory funds, and judicial freezing | | Accounts Receivable | 14,728,793.86 | Pledge of collection rights | | Inventories | 1,227,967,001.87 | Loan collateral and judicial freezing | | Investment Properties | 3,295,835.32 | Loan collateral | | Fixed Assets | 38,000.00 | Loan collateral | | Total | 1,262,714,865.04 | | VI. Analysis of Investment Status The company's total investment for the reporting period was 143.33 million yuan, a 410.85% increase year-on-year, with securities investments totaling 134.29 million yuan, including a 130.45 million yuan long-term equity investment in Huakong SEG, which incurred a loss of 12.43 million yuan Investment Amount for the Reporting Period | Investment Amount for Reporting Period (yuan) | Investment Amount for Prior Year Period (yuan) | Change Rate | | :--- | :--- | :--- | | 143,326,605.76 | 28,056,449.81 | 410.85% | Securities Investment Status | Security Abbreviation | Book Value at Period End (yuan) | Gains/Losses for Reporting Period (yuan) | | :--- | :--- | :--- | | Youhao Group | 387,157.54 | 0.00 | | Huakong SEG | 130,454,940.64 | -12,429,428.79 | | SEG Navigation | 3,450,000.00 | 0.00 | | Total | 134,292,098.18 | -12,429,428.79 | VII. Major Asset and Equity Sales The company did not engage in any major asset or equity sales during the reporting period - The company did not sell any major assets or equity during the reporting period[91][92] VIII. Analysis of Major Holding and Associate Companies SEG Chuangyehui and SEG Kangle saw increased revenue and net profit, while SEG Baohua, SEG Property Management, and Nantong SEG experienced declines due to market conditions and competition, and associate Huakong SEG reported a net loss Financial Data of Major Holding and Associate Companies | Company Name | Company Type | Operating Revenue (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | | SEG Chuangyehui | Subsidiary | 99,961,935.47 | 43,251,914.16 | | SEG Kangle | Subsidiary | 37,815,287.27 | 17,542,658.90 | | SEG Baohua | Subsidiary | 31,943,444.95 | 15,520,114.49 | | SEG Property Development | Subsidiary | 31,027,805.67 | 6,156,608.34 | | SEG Property Management | Subsidiary | 130,732,085.31 | 7,374,606.96 | | SEG Real Estate | Subsidiary | 36,941,150.94 | 17,690,309.54 | | Nantong SEG | Subsidiary | 1,786,916.76 | -11,317,100.28 | | Huakong SEG | Associate | 326,155,031.03 | -87,589,580.72 | - SEG Chuangyehui and SEG Kangle's operating revenue and net profit increased year-on-year, mainly due to strengthened business development and cost control[94] - SEG Baohua's operating revenue and net profit decreased year-on-year, mainly due to market environment renovation and rental concessions to merchants[94] - Nantong SEG's operating revenue and net profit decreased year-on-year, mainly due to lower occupancy rates[94] IX. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[95] X. Risks Faced by the Company and Countermeasures The company faces risks from macroeconomic policies, intensified market competition, and real estate liquidity, which it plans to address through policy monitoring, innovation, differentiated services, and asset revitalization strategies - The company faces macroeconomic policy risks, with countermeasures including strengthening policy research, developing contingency plans, adjusting business strategies, and increasing innovation and R&D[95] - The company faces intensified market competition risks, with countermeasures including closely following industry trends, offering differentiated services, improving internal management, strengthening brand building, and exploring new areas and models[96] - The real estate sector faces liquidity risks, with countermeasures including promoting asset revitalization and monetization through a combination of leasing and sales, debt reduction, and increased financing[97][98] XI. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan 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 nor disclosed a valuation enhancement plan[99] XII. Implementation of the '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 - The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan[99] Section IV Corporate Governance, Environment, and Society This section details changes in the company's board and management, profit distribution plans, employee incentive measures, environmental disclosures, and social responsibility initiatives during the reporting period I. Changes in Company Directors, Supervisors, and Senior Management During the reporting period, Supervisor Yang Chaoxin retired, Chairman Zhang Liang resigned, and Liu Qing was elected as the new Chairman and Director - Supervisor Yang Chaoxin resigned due to retirement on March 1, 2025[101] - Chairman Zhang Liang resigned due to work arrangements on February 8, 2025[101] - Liu Qing was elected as Chairman and Director on February 27, 2025[101] II. Profit Distribution and Capital Reserve to Share Capital Conversion for the Current Reporting Period The company plans no cash dividends, bonus shares, or capital reserve to share capital conversion for the semi-annual period - The company plans no cash dividends, bonus shares, or capital reserve to share capital conversion for the semi-annual period[102] III. Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures in place or implemented during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[103] IV. Environmental Information Disclosure Neither the listed company nor its major subsidiaries are included in the list of enterprises required to disclose environmental information by law - Neither the listed company nor its major subsidiaries are included in the list of enterprises required to disclose environmental information by law[104] V. Social Responsibility The company actively fulfills its social responsibilities through public welfare activities, promotes clean energy with significant carbon emission reductions, and supports employment and employee welfare, demonstrating its commitment as a state-owned enterprise - The company organizes employees to participate in public welfare activities such as voluntary blood donation, tree planting, environmental cleaning, and policy promotion[104] - The company actively develops the solar photovoltaic industry, with photovoltaic power generation equivalent to reducing carbon dioxide emissions by over 27,201 tons, and was awarded the "Clean Energy Cross-border Carbon Reduction Model Award"[105][106] - In the first half of 2025, the company created nearly 100 core employment positions in key business segments like new energy and inspection/testing, achieving a 100% return-to-work rate for parental leave[107] Section V Significant Matters This section covers the fulfillment of commitments by related parties, absence of non-operating fund occupation, major litigation, penalties, related party transactions, significant contracts, and other important events during the reporting period I. Fulfillment of Commitments by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period and Overdue Unfulfilled Commitments as of the End of the Reporting Period SEG Group's three-year performance commitment for temporary building renewal is complete, but the permit is overdue, and subsidiary Shanghai Maqu Testing Technology Co., Ltd. failed its performance commitment, leading to an arbitration award - SEG Group's commitment regarding the renewal of temporary buildings, including a three-year performance commitment, has been fulfilled, but the temporary building planning permit has expired, and the extension application has not yet been approved[109] - Subsidiary Shanghai Maqu Testing Technology Co., Ltd. failed to meet its cumulative performance commitment targets for 2021-2023, and the company has submitted an arbitration application and received an award[111][112] II. Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties The company reported no non-operating fund occupation by its controlling shareholder or other related parties during the reporting period - The company reported no non-operating fund occupation by its controlling shareholder or other related parties during the reporting period[113] III. Irregular External Guarantees The company reported no irregular external guarantees during the reporting period - The company reported no irregular external guarantees during the reporting period[114] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual report was not audited - The company's semi-annual report was not audited[115] V. Board of Directors' and Supervisory Board's Explanation of the Accounting Firm's 'Non-Standard Audit Report' for the Current Reporting Period The company's board of directors and supervisory board did not provide an explanation for a "non-standard audit report" from the accounting firm for the current reporting period - The company reported no explanation for a "non-standard audit report" during the reporting period[116] VI. Board of Directors' Explanation of Matters Related to the 'Non-Standard Audit Report' for the Previous Year The company's board of directors did not provide an explanation for matters related to the "non-standard audit report" for the previous year - The company reported no explanation for matters related to the "non-standard audit report" for the previous year[116] VII. Bankruptcy and Reorganization Matters The company did not experience any bankruptcy or reorganization matters during the reporting period - The company did not experience any bankruptcy or reorganization matters during the reporting period[116] VIII. Litigation Matters The company is involved in several significant lawsuits and arbitrations, including construction contract disputes, property sales disputes, and equity repurchase arbitrations, with total claims as plaintiff/applicant of 91.89 million yuan and as defendant/respondent of 39.98 million yuan - The construction contract dispute between China Huaxi Enterprise Co., Ltd. and SEG New City involves 207.73 million yuan, concluded and in execution[117] - The property sales contract dispute between Huang Zhihui and others and SEG New City involves 99.12 million yuan, concluded and in execution[117] - The property sales contract dispute between Shenzhen Henghui Trading Co., Ltd., Huang Zhihui, and Huang Xianzheng and SEG New City involves 304.46 million yuan, concluded and in execution[119] - The contract dispute between Shenzhen Yihuidai Industrial Co., Ltd. and New City involves 122.36 million yuan, currently in the retrial stage[119] - SEG and Suzhou Test initiated arbitration against Huang Zhiyong, Zhu Haibin, and Shanghai Maqu for an equity repurchase dispute, involving 37.14 million yuan, currently in the arbitration hearing stage[119] - The housing lease contract dispute between Nantong SEG and Red Star Macalline Home Group Co., Ltd. involves 153.07 million yuan, currently in the arbitration hearing stage[121] - The company and its subsidiaries are plaintiffs or applicants in 11 cases totaling 91.89 million yuan, and defendants or respondents in 68 cases totaling 39.98 million yuan[121] IX. Penalties and Rectification Subsidiary Wujiang SEG Market Management Co., Ltd. was fined 20,000 yuan by the Wujiang District Fire Rescue Brigade for fire safety hazards and has completed rectification - Subsidiary Wujiang SEG Market Management Co., Ltd. was fined 20,000 yuan by the Wujiang District Fire Rescue Brigade for fire safety hazards and has completed rectification[447] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company reported no issues regarding the integrity status of itself, its controlling shareholder, or its actual controller during the reporting period - The company reported no issues regarding the integrity status of itself, its controlling shareholder, or its actual controller during the reporting period[123] XI. Significant Related Party Transactions The company engaged in routine related party transactions totaling 15.50 million yuan, including providing and receiving services, property leasing, and goods sales, all within approved limits, and has an outstanding related party debt of 27.02 million yuan to its controlling shareholder Related Party Transactions Related to Daily Operations | Related Transaction Type | Related Party | Related Transaction Content | Transaction Amount (ten thousand yuan) | Proportion of Similar Transactions | Approved Transaction Limit (ten thousand yuan) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Providing services, property leasing, and selling goods to related parties | Shenzhen Investment Holdings Co., Ltd. and its controlled subsidiaries, SEG Group and its controlled subsidiaries | Property lease fees; property management fees; electricity fees; meal fees, etc. | 765 | 1.02% | 1,970 | No | | Receiving services, property leasing, and purchasing goods from related parties | Shenzhen Investment Holdings Co., Ltd. and its controlled subsidiaries, SEG Group and its controlled subsidiaries | Property lease fees; security service fees, etc. | 785 | 1.44% | 1,900 | No | | Total | | | 1,550 | | 3,870 | | Debts Payable to Related Parties | Related Party | Related Relationship | Reason for Formation | Balance at Period End (ten thousand yuan) | | :--- | :--- | :--- | :--- | | Shenzhen SEG Group Co., Ltd. | Controlling Shareholder | Funds collected on behalf | 2,701.72 | - The company reported no related party transactions involving asset or equity acquisition/disposal, or joint external investments during the reporting period[124][125] XII. Significant Contracts and Their Fulfillment The company had no entrustment or contracting arrangements, but subsidiary Nantong SEG's lease contract with Red Star Macalline entered arbitration due to early termination. The company's total external guarantees amounted to 87.60 million yuan (4.30% of net assets), and it held 68.50 million yuan in outstanding bank wealth management products - The company reported no entrustment or contracting arrangements during the reporting period[130][131] - Wholly-owned subsidiary Nantong SEG's "Housing Lease Contract" with Red Star Macalline Home Group Co., Ltd. entered arbitration due to the latter's unilateral early termination and refusal to pay rent[132] External Guarantees by the Company and its Subsidiaries | Name of Guaranteed Party | Guaranteed Amount (ten thousand yuan) | Actual Guaranteed Amount (ten thousand yuan) | Type of Guarantee | Fulfilled | | :--- | :--- | :--- | :--- | :--- | | SEG New City Homebuyers (Bank of Communications) | 30,000 | 67.7 | Joint and Several Liability Guarantee | No | | Nantong SEG Homebuyers (Rural Commercial Bank) | 1,000 | 41 | Joint and Several Liability Guarantee | No | | Nantong SEG Homebuyers (SPD Bank) | 7,000 | 151 | Joint and Several Liability Guarantee | No | | Nantong SEG Homebuyers (Industrial Bank) | 700 | 0 | Joint and Several Liability Guarantee | No | | Huizhou SEG Holiday Plaza Phase II Homebuyers (Bank of Communications) | 5,000 | 0 | Joint and Several Liability Guarantee | No | | Huizhou SEG Holiday Plaza Phase II Homebuyers (China Construction Bank) | Not exceeding the cumulative sum of individual housing (commercial property) loan balances | 0 | Joint and Several Liability Guarantee | No | | Huizhou Qunxing Real Estate Development Co., Ltd. | 15,000 | 8,500 | Joint and Several Liability Guarantee | No | | Total | 58,700 | 8,759.7 | | | - The total actual guarantee amount is 87.60 million yuan, accounting for 4.30% of the company's net assets[137] Entrusted Wealth Management | Specific Type | Amount of Entrusted Wealth Management (ten thousand yuan) | Unexpired Balance (ten thousand yuan) | | :--- | :--- | :--- | | Bank Wealth Management Products | 8,600 | 6,850 | | Total | 8,600 | 6,850 | XIII. Explanation of Other Significant Matters During the reporting period, the company disclosed its 2024 annual performance forecast, changes in directors and chairman, adjustments to board committee members, supervisor resignation, use of idle funds for wealth management, provision for asset impairment, and the 2024 equity distribution plan - The company disclosed its 2024 annual performance forecast[140] - The company conducted elections for directors and chairman, and adjusted members of the board's special committees[140] - A company supervisor resigned[140] - The company used idle self-owned funds to purchase wealth management products[140] - The company made provisions for various asset impairment losses for 2024[140] - The 2024 equity distribution plan is to distribute a cash dividend of 0.125 yuan (tax inclusive) per 10 shares based on a total share capital of 1,231,200,672 shares, with no bonus shares or capital reserve to share capital conversion[140] XIV. Significant Matters of Company Subsidiaries A holding subsidiary fulfilled guarantee obligations by repaying 4.70 million yuan, another subsidiary's performance commitment failure led to arbitration, a lease contract dispute entered arbitration, the company provided financial assistance to an associate, and subsidiaries were involved in multiple lawsuits - Holding subsidiary SEG Real Estate bore joint and several guarantee liability for Huizhou Qunxing's failure to timely repay loan principal and interest, repaying a total of 4.70 million yuan in guaranteed funds[427] - Subsidiary Shanghai Maqu Testing Technology Co., Ltd. failed to meet its performance commitment, and the company has submitted an arbitration application[142] - Subsidiary Nantong SEG's lease contract performance entered arbitration due to Red Star Macalline's unilateral early termination[142] - The company provided financial assistance to an associated company[142] - Subsidiaries are involved in multiple litigation matters[143] Section VI Share Changes and Shareholder Information This section details the company's share capital changes, securities issuance, shareholder structure, and changes in holdings of directors, supervisors, and senior management, as well as any changes in controlling shareholder or actual controller I. Share Change Status The company's total share capital remained unchanged at 1,231,200,672 shares, with restricted shares increasing by 36,475 to 145,900 shares, primarily due to increased holdings by domestic natural persons, and corresponding decrease in unrestricted shares Share Change Status | Share Type | Number Before This Change (shares) | Increase/Decrease in This Change (＋,－) (shares) | Number After This Change (shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 109,425 | 36,475 | 145,900 | | Of which: Shares held by domestic natural persons | 109,425 | 36,475 | 145,900 | | II. Unrestricted Shares | 1,231,091,247 | -36,475 | 1,231,054,772 | | III. Total Shares | 1,231,200,672 | 0 | 1,231,200,672 | Restricted Share Change Status | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Increased in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Zhang Liang | 27,750 | 9,250 | 37,000 | Senior Management Lock-up Shares | | Yang Chaoxin | 81,675 | 27,225 | 108,900 | Senior Management Lock-up Shares | | Total | 109,425 | 36,475 | 145,900 | | II. Securities Issuance and Listing 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[149] III. Number of Shareholders and Shareholding Status As of the end of the reporting period, the company had 62,828 common shareholders, with Shenzhen SEG Group Co., Ltd. as the controlling shareholder holding 56.54% of shares, and no associated relationship or concerted action among SEG Group and other major shareholders - The total number of common shareholders at the end of the reporting period was 62,828[150] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held at End of Reporting Period (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | | Shenzhen SEG Group Co., Ltd. | State-owned Legal Person | 56.54% | 696,163,182 | 696,163,182 | | LISHERYNZ HANMING | Overseas Natural Person | 0.65% | 8,031,115 | 8,031,115 | | Liu Guocheng | Domestic Natural Person | 0.62% | 7,675,702 | 7,675,702 | | HKSCC Nominees Limited | Overseas Legal Person | 0.61% | 7,464,531 | 7,464,531 | | Liu Guohong | Domestic Natural Person | 0.32% | 3,893,846 | 3,893,846 | | Gong Qianhua | Overseas Natural Person | 0.24% | 2,940,000 | 2,940,000 | | China Merchants Bank Co., Ltd. - Southern CSI 1000 ETF | Other | 0.22% | 2,721,500 | 2,721,500 | | Lu Xiaowang | Domestic Natural Person | 0.18% | 2,207,200 | 2,207,200 | | Wang Jinjun | Domestic Natural Person | 0.17% | 2,100,000 | 2,100,000 | | Zhao Shangxin | Domestic Natural Person | 0.17% | 2,080,000 | 2,080,000 | - SEG Group has no associated relationship with other shareholders, nor does it constitute a concerted party as defined by the "Measures for the Administration of the Acquisition of Listed Companies"[151] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period, as detailed in the 2024 annual report - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period[153] V. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[154] - The company's actual controller remained unchanged during the reporting period[155] VI. Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[156] Section VII Bond-Related Information This section confirms that the company had no bond-related activities or outstanding bonds during the reporting period Bond-Related Information The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[158] Section VIII Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, taxes, and financial items I. Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[160] 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, offering a comprehensive view of its financial position, operating results, and cash flows - This section includes consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity[161][165][168][170][172][175][177][184] Major Consolidated Balance Sheet Items at Period End | Item | Amount at Period End (yuan) | | :--- | :--- | | Monetary Funds | 886,104,474.79 | | Trading Financial Assets | 68,500,000.00 | | Accounts Receivable | 314,726,643.23 | | Inventories | 1,534,075,068.07 | | Long-term Equity Investments | 260,551,311.51 | | Fixed Assets | 576,704,463.60 | | Long-term Borrowings | 569,541,365.52 | | Total Liabilities | 2,624,208,020.38 | | Total Owners' Equity | 2,483,555,690.09 | Major Consolidated Income Statement Items for Current Period | Item | Current Period Amount (yuan) | | :--- | :--- | | Total Operating Revenue | 751,336,543.24 | | Total Operating Cost | 638,752,066.13 | | Total Profit | 96,230,201.15 | | Net Profit | 56,677,580.61 | | Net Profit Attributable to Parent Company Shareholders | 47,345,638.67 | Major Consolidated Cash Flow Statement Items for Current Period | Item | Current Period Amount (yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 73,799,128.49 | | Net Cash Flow from Investing Activities | -170,276,905.79 | | Net Cash Flow from Financing Activities | -38,083,624.45 | | Net Increase in Cash and Cash Equivalents | -134,561,401.75 | - Of the monetary funds at period end, 16.69 million yuan are restricted as margin deposits, regulatory funds, and judicially frozen funds[314][353] - During the reporting period, the company's lease income was 274.61 million yuan[379] (I) Notes to Consolidated Balance Sheet Items This section details consolidated balance sheet items, including monetary funds (886.10 million yuan, 16.69 million yuan restricted), trading financial assets (68.50 million yuan), accounts receivable (314.73 million yuan with 61.82 million yuan bad debt provision), inventories (1.53 billion yuan), long-term equity investments (260.55 million yuan), fixed assets (576.70 million yuan), and long-term borrowings (569.54 million yuan), with total restricted assets of 1.26 billion yuan Details of Monetary Funds | Item | Amount at Period End (yuan) | Amount at Beginning of Period (yuan) | | :--- | :--- | :--- | | Cash on Hand | 24,590.85 | 49,766.16 | | Bank Deposits | 875,645,076.14 | 1,005,746,221.46 | | Other Monetary Funds | 10,434,807.80 | 7,971,056.26 | | Total | 886,104,474.79 | 1,013,767,043.88 | - At period end, bank deposits included 6.17 million yuan in regulatory funds and 85,294.36 yuan in judicially frozen funds; other monetary funds included 3.71 million yuan in performance bond deposits, 1.05 million yuan in mortgage deposits, and 5.67 million yuan in pledged deposits, all restricted in use[314] Aging of Accounts Receivable | Aging | Amount at Period End (yuan) | Amount at Beginning of Period (yuan) | | :--- | :--- | :--- | | Within 1 year | 247,164,932.28 | 221,755,706.79 | | 1-2 years | 56,690,795.00 | 51,136,861.98 | | 2-3 years | 13,877,392.37 | 10,690,906.09 | | Over 3 years | 58,813,479.36 | 64,292,319.43 | | Total Book Balance | 376,546,599.01 | 347,875,794.29 | | Less: Bad Debt Provision | 61,819,955.78 | 65,901,295.36 | | Total Book Value | 314,726,643.23 | 281,974,498.93 | Details of Inventories | Item | Book Value at Period End (yuan) | Book Value at Beginning of Period (yuan) | | :--- | :--- | :--- | | Raw Materials | 6,096,721.49 | 6,684,329.03 | | Work in Progress | 11,803,087.51 | | | Development Costs | 163,969,828.87 | 161,586,969.00 | | Finished Goods | 31,093,322.32 | 30,289,503.33 | | Development Products | 1,315,327,037.11 | 1,318,203,624.67 | | Goods in Transit | 996,618.29 | 3,031,696.64 | | Other Revolving Materials | 4,788,452.48 | 2,674,576.91 | | Total | 1,534,075,068.07 | 1,522,788,361.58 | Details of Long-term Borrowings | Item | Amount at Period End (yuan) | Amount at Beginning of Period (yuan) | | :--- | :--- | :--- | | Pledged Loans | 182,884,221.52 | 111,865,374.78 | | Mortgaged Loans | 386,657,144.00 | 401,742,858.00 | | Total | 569,541,365.52 | 513,608,232.78 | - Pledged loans were obtained by subsidiaries pledging photovoltaic power station collection rights[360] (II) Notes to Consolidated Income Statement Items This section details consolidated income statement items, including operating revenue (751.34 million yuan), operating costs (546.43 million yuan), taxes and surcharges (15.13 million yuan), selling expenses (9.18 million yuan), administrative expenses (46.80 million yuan), R&D expenses (5.89 million yuan), financial expenses (15.32 million yuan), other income (0.91 million yuan), investment income (-11.31 million yuan), credit impairment losses (-1.47 million yuan), total profit (96.23 million yuan), income tax expense (39.55 million yuan), and net profit (56.68 million yuan) Details of Operating Revenue/Operating Cost | Item | Current Period Revenue (yuan) | Current Period Cost (yuan) | Prior Year Period Revenue (yuan) | Prior Year Period Cost (yuan) | | :--- | :--- | :--- | :--- | :--- | | Main Business Revenue | 738,326,144.14 | 535,133,032.62 | 793,178,344.79 | 591,918,045.92 | | Other Business Revenue | 13,010,399.10 | 11,301,207.01 | 8,884,838.56 | 6,931,282.74 | | Total | 751,336,543.24 | 546,434,239.63 | 802,063,183.35 | 598,849,328.66 | Details of Various Expenses | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | | :--- | :--- | :--- | | Taxes and Surcharges | 15,131,434.10 | 14,076,357.71 | | Selling Expenses | 9,177,410.13 | 10,033,141.35 | | Administrative Expenses | 46,804,543.04 | 46,398,897.91 | | R&D Expenses | 5,888,807.53 | 5,937,367.33 | | Financial Expenses | 15,315,631.70 | 14,576,630.78 | Details of Investment Income | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | | :--- | :--- | :--- | | Investment income from long-term equity investments accounted for using equity method | -12,346,693.85 | -7,235,747.04 | | Investment income from disposal of long-term equity investments | 228,226.97 | | | Investment income from trading financial assets during holding period | 812,941.96 | 1,225,140.93 | | Total | -11,305,524.92 | -6,010,606.11 | (III) Notes to Consolidated Cash Flow Statement Items This section details consolidated cash flow items, showing net cash flow from operating activities at 73.80 million yuan (up 103.53%), net cash flow from investing activities at -170.28 million yuan (due to reduced wealth management redemptions and increased power station investment), and net cash flow from financing activities at -38.08 million yuan, with cash and cash equivalents totaling 869.42 million yuan at period end Cash Received or Paid for Significant Investing Activities | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | | :--- | :--- | :--- | | Redemption of wealth management products | 97,879,433.73 | 263,700,852.31 | | Investment in power station construction and other long-term assets | 136,281,516.70 | 27,882,401.91 | | Payment for wealth management products | 132,800,000.00 | 174,500,000.00 | Supplementary Information to Cash Flow Statement (Reconciliation of Net Profit to Operating Cash Flow) | Supplementary Information | Current Period Amount (yuan) | | :--- | :--- | | Net Profit | 56,677,580.61 | | Add: Asset impairment provisions | -8,527.66 | | Credit impairment provisions | 1,473,251.32 | | Depreciation of fixed assets, depreciation of right-of-use assets, depletion of oil and gas assets, depreciation of productive biological assets | 59,921,701.70 | | Amortization of intangible assets | 909,594.99 | | Amortization of long-term deferred expenses | 3,778,926.52 | | Losses (gains indicated by "－") on disposal of fixed assets, intangible assets, and other long-term assets | 289,654.30 | | Financial expenses (gains indicated by "－") | 21,181,045.00 | | Investment losses (gains indicated by "－") | 11,305,524.92 | | Net cash flow from operating activities | 73,799,128.49 | - Cash and cash equivalents at period end totaled 869.42 million yuan[376] - Cash and cash equivalents with restricted use held by the company amounted to 16.69 million yuan[376] (IV) Other As a lessee, the company incurred 16.07 million yuan in short-term lease expenses, and as a lessor, it generated 274.61 million yuan in operating lease income, with operating lease assets (investment properties) valued at 845.82 million yuan and future undiscounted lease receivables totaling 331 million yuan Short-term Lease Expenses | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | | :--- | :--- | :--- | | Short-term lease expenses | 16,069,779.83 | 14,064,163.70 | | Total | 16,069,779.83 | 14,064,163.70 | Operating Lease Income | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | | :--- | :--- | :--- | | Lease income | 274,613,761.97 | 270,997,999.50 | | Of which: Income related to variable lease payments not included in lease receivables measurement | 18,642,462.12 | 20,580,932.12 | Operating Lease Assets | Item | Amount at Period End (yuan) | Amount at Prior Year End (yuan) | | :--- | :--- | :--- | | Investment Properties | 845,819,230.68 | 870,476,018.35 | | Subtotal | 845,819,230.68 | 870,476,018.35 | III. Company Basic Information Shenzhen SEG Co., Ltd., established on July 16, 1996, with a registered capital of 1.23 billion yuan, is listed on the Shenzhen Stock Exchange and primarily engages in electronic market operations, property management, new energy, inspection and testing, and real estate development - Shenzhen SEG Co., Ltd. was registered on July 16, 1996, with a registered capital of 1,231.20 million yuan and a total of 1,231,200,672 shares[190] - The company's main businesses are operating and managing electronic markets, property operation and urban services, new energy, inspection and testing, and real estate development[190] IV. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, with no significant doubts about its ability to continue as a going concern for the next 12 months from the end of the reporting period - The company's financial statements are prepared on a going concern basis[192] - There are no matters or circumstances that would cause significant doubt about the company's ability to continue as a going concern for the next 12 months from the end of the reporting period[193] V. Significant Accounting Policies and Accounting Estimates This section details the company's adherence to enterprise accounting standards, accounting period, operating cycle, functional currency, and materiality criteria, along with comprehensive policies for business combinations, financial instruments, impairment, inventories, long-term investments, fixed assets, revenue recognition, and government grants - The company's financial statements comply with enterprise accounting standards, accurately and completely reflecting its financial position[195] - The operating cycle for the real estate industry is generally longer than 12 months, used as the liquidity classification standard for assets and liabilities[197] - The company defines materiality as items exceeding 0.5% or 5% of total assets[198] - The company's revenue recognition principles are based on identifying performance obligations, distinguishing between obligations fulfilled over time and at a point in