精研科技(300709) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions Important Notice The company's board and management assure report accuracy, cautioning investors on forward-looking statement risks, and plan no half-year dividends or bonus shares - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content[4] - Forward-looking statements in the report may differ significantly from actual results, and investors should be aware of investment risks[4] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5] Table of Contents This section lists the report's overall structure, including eight main chapters such as important notices, company profile, management discussion and analysis, and financial reports Definitions This section defines key terms and company abbreviations used in the report, including company names, major subsidiaries, controlling shareholders, and core MIM (Metal Injection Molding) technology - MIM (Metal Injection Molding) is a near-net-shape technology combining powder metallurgy and plastic injection molding techniques[13] - The company's controlling shareholders and actual controllers are Wang Mingxi and Huang Yichao (father-daughter relationship)[13] Part II Company Profile and Key Financial Indicators I. Company Profile This section introduces the basic information of Jiangsu Gian Technology Co., Ltd., including stock abbreviation, code, listing exchange, Chinese and English names, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Gian Technology | | Stock Code | 300709 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Jiangsu Gian Technology Co., Ltd. | | Legal Representative | Wang Mingxi | II. Contact Person and Contact Information This section provides contact details for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, faxes, and email addresses Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Huang Yichao | No. 59 Palm Road, Zhonglou Economic Development Zone, Changzhou City, Jiangsu Province | 0519-69890866 | 0519-69890860 | huangyichao@jsgian.com | | Securities Affairs Representative | Wang Tao | No. 59 Palm Road, Zhonglou Economic Development Zone, Changzhou City, Jiangsu Province | 0519-69890866 | 0519-69890860 | wangtao@jsgian.com | III. Other Information During the reporting period, there were no changes in the company's contact information, information disclosure, storage locations, or registration, with details available in the 2024 annual report - The company's registered address, office address, website, and email address remained unchanged during the reporting period[19] - Information disclosure and storage locations remained unchanged during the reporting period[20] - The company's registration status remained unchanged during the reporting period[21] IV. Key Accounting Data and Financial Indicators The company achieved significant growth in operating revenue and net profit this period, but net cash flow from operating activities sharply declined, with prior-year data retrospectively adjusted due to a change in accounting treatment for controlling shareholder performance compensation Key Accounting Data and Financial Indicators (Current Period vs. Prior Year) | Indicator | Current Period (Yuan) | Prior Year (Adjusted) (Yuan) | Change from Prior Year | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,414,566,400.19 | 1,001,908,338.30 | 41.19% | | Net Profit Attributable to Shareholders of Listed Company | 80,749,793.59 | 59,212,576.46 | 36.37% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | 74,122,899.78 | 51,082,155.34 | 45.11% | | Net Cash Flow from Operating Activities | -216,710,625.36 | 9,160,747.02 | -2,465.64% | | Basic Earnings Per Share (Yuan/share) | 0.43 | 0.32 | 34.38% | | Diluted Earnings Per Share (Yuan/share) | 0.43 | 0.32 | 34.38% | | Weighted Average Return on Net Assets | 3.68% | 2.84% | Increased by 0.84 percentage points | Key Accounting Data and Financial Indicators (End of Current Period vs. End of Prior Year) | Indicator | End of Current Period (Yuan) | End of Prior Year (Adjusted) (Yuan) | Change from End of Prior Year | | :--- | :--- | :--- | :--- | | Total Assets | 3,788,596,230.90 | 3,250,931,157.15 | 16.54% | | Net Assets Attributable to Shareholders of Listed Company | 2,223,016,013.10 | 2,098,218,724.43 | 5.95% | - Accounting error correction reason: The performance compensation amount from the controlling shareholder and its income tax impact were adjusted to capital reserves using retrospective adjustment[22] V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards or overseas accounting standards and Chinese Accounting Standards - The company's financial reports for the reporting period show no differences in net profit and net assets between International Accounting Standards and Chinese Accounting Standards[24] - The company's financial reports for the reporting period show no differences in net profit and net assets between overseas accounting standards and Chinese Accounting Standards[25] VI. Non-Recurring Gains and Losses and Amounts The company's total non-recurring gains and losses for this reporting period amounted to 6.63 million Yuan, primarily comprising government subsidies, fair value change gains and losses, and VAT input tax deductions Non-Recurring Gains and Losses and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -502,001.56 | | Government subsidies recognized in current profit or loss | 4,507,131.79 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises and disposal gains and losses | 690,968.63 | | Other non-operating income and expenses | -2,062,639.65 | | Other items that meet the definition of non-recurring gains and losses | 5,406,763.27 | | Less: Income tax impact | 1,254,467.06 | | Impact on minority interests (after tax) | 158,861.61 | | Total | 6,626,893.81 | - Other items that meet the definition of non-recurring gains and losses primarily consist of VAT input tax deductions[27] Part III Management Discussion and Analysis I. Main Businesses Engaged by the Company During the Reporting Period The company primarily engages in precision metal parts and components, expanding into six business segments: power, precision plastics, thermal management, intelligent manufacturing services, and electronic manufacturing, achieving significant revenue and profit growth by responding to consumer electronics and smart home demands (I) Industry Development Overview The company closely monitors trends in consumer electronics, automotive, and smart home sectors, noting the mature smartphone market's shift to foldable and AI phones, intense competition in wearables, rapid growth in new energy vehicles driving demand for precision plastic interiors and "three-electric" components, and continuous innovation in smart home appliances - The smartphone market has entered a mature phase, with foldable phones and AI phones being key innovation drivers, and the Chinese market serving as the core driver for the foldable phone industry[30][31] - The wearable device market requires innovative, differentiated products for growth, with health monitoring and lightweight design as trends for smartwatches, and rapid growth in the AI glasses market[33][34] H1 2025 Automotive Industry Production and Sales | Indicator | Production and Sales (10,000 units) | Year-on-Year Growth | | :--- | :--- | :--- | | Automobiles | 1,562.1 / 1,565.3 | 12.5% / 11.4% | | New Energy Vehicles | 696.8 / 693.7 | 41.4% / 40.3% | - The market share of new energy vehicles continues to increase, with industry chain restructuring driving cost reduction and core component upgrades for upstream suppliers, leading to increased demand for precision plastic interior parts[36][37][38] - The smart home market is projected to grow at a CAGR of 5.6% from 2024-2028, with increased shipments in the cleaning appliance market and technological innovation driving higher penetration rates[39][40] (II) Company's Main Businesses The company has established six major business segments: metal manufacturing (MIM, CNC, 3D printing), power (precision transmission and rotation mechanisms), precision plastics, thermal management products (liquid/air cooling modules), intelligent manufacturing services (automation control and information system integration), and electronic manufacturing (smart earphones, speakers), achieving diversified development across multiple fields - The company primarily focuses on MIM parts and component manufacturing, offering one-stop, full-process production of precision metal structural parts[41] - The power segment provides mass-produced precision transmission and rotation mechanism products for consumer electronics and smart homes[42] - The precision plastics segment is mainly engaged in the R&D, design, production, and manufacturing of precision plastic parts and their components, applied in automotive, consumer electronics, and other fields[42] - The thermal management products segment offers liquid cooling modules, liquid cooling plates, and air cooling modules, applied in edge computing servers, energy storage, and other fields[42] - The intelligent manufacturing services segment, through its subsidiary Changzhou Boyan, provides automation control and information system integration solutions[42] - The electronic manufacturing segment, through its subsidiary Antixin, is dedicated to smart earphone and smart speaker businesses[42] (III) Company's Main Products, Uses, and Market Position As one of the global MIM leaders, the company provides highly complex and precise MIM components for consumer electronics and automotive sectors, with its power business holding a first-mover advantage in foldable screen hinges and motor gearboxes, offering customized thermal management solutions, and producing smart earphones and speakers as terminal products, while precision plastic parts are widely used in automotive and consumer electronics - The company is the first listed MIM industry company in China and one of the global MIM leaders, with products widely used in consumer electronics (top brands in North America, South Korea, and China) and automotive (globally renowned brands) sectors[47][48] - The power business segment is primarily engaged in the R&D, design, manufacturing, and mass production of precision rotation structural components (foldable phone hinges) and precision transmission structural components (motor gearboxes), and has been successfully recognized as a high-tech enterprise[48][49] - The thermal management products segment provides liquid cooling modules, liquid cooling plates, and air cooling modules, applied in edge computing servers, energy storage, and other fields, and collaborates with key domestic university laboratories[50][51] - The terminal products segment possesses full-process manufacturing capabilities from R&D to mass production, with main products including smart earphones and smart speakers, and its subsidiary Antixin is a complete solution provider for TWS earphones[51] - Precision plastic parts are widely used in automotive (interior parts) and consumer electronics (smart band frames, earphone casings, etc.) fields, and have entered the first and second-tier supplier lists for some automotive clients[51][52] (IV) Business Model The company's business model remained largely unchanged, primarily adopting a "procurement based on production" model and a "production based on sales" model, while using a direct sales approach for market promotion and customer maintenance to meet diverse customer needs - The company primarily implements a "procurement based on production" model, ensuring production stability through dynamic supplier management[53] - The company primarily implements a "production based on sales" model, arranging production through a combination of in-house manufacturing and outsourced processing[53] - The company adopts a direct sales model, promoting its products through various channels such as exhibitions and customer demand exploration to enhance market responsiveness[53] (V) Analysis of Company's Operating Performance In the first half of 2025, the company's operating revenue increased by 41.19% to 1.415 billion Yuan, driven by increased demand for MIM products (smartphones, wearables) and expansion in the power segment (motor gearboxes), with net profit attributable to shareholders growing by 36.37% and non-recurring net profit by 45.11%, while operating cash flow was negative due to sales collection cycles, increased bill settlements, and higher employee compensation payments H1 2025 Operating Performance | Indicator | Amount (billion Yuan) | Year-on-Year Growth | | :--- | :--- | :--- | | Operating Revenue | 1.415 | 41.19% | | Net Profit Attributable to Shareholders of Listed Company | 0.08075 | 36.37% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | 0.07412 | 45.11% | - Revenue from MIM parts and components increased by 194 million Yuan, a year-on-year growth of 30.19%, primarily due to increased demand for MIM products in smartphones and wearable devices, and the expansion into new application scenarios[55] - Revenue from transmission, thermal management components, and others increased by 151 million Yuan, a year-on-year growth of 70.27%, mainly benefiting from the development of the power segment, especially the expansion of motor gearbox business[55] - Operating cash flow was negative, primarily due to lower sales collections in the first half, a significant increase in bill acceptances, and higher employee compensation payments[56] II. Core Competitiveness Analysis The company's core competitiveness lies in its cultural and organizational advantages centered on "sincerity, diligence, perfection, collective wisdom, innovation, and progress," its continuous investment in and breakthroughs in new materials, technologies, and processes, its full-process control enhancing production efficiency and yield, its rapid response to customer needs, its shared customer resources across business segments, and its integrated innovation through cross-application of technologies to upgrade products - The company adheres to the core values of "sincerity, diligence, perfection, collective wisdom, innovation, and progress," building a stable and long-term positive cultural and organizational structure[57] - The company and its subsidiaries are recognized as high-tech enterprises, having received the National Technology Invention Second Prize and being designated as a National Manufacturing Single Champion Demonstration Enterprise, with the Gian Research Institute established for strategic planning and technological innovation[58] - The company enhances production efficiency and yield by establishing a full-process control system and introducing in-house processes such as CNC, PVD, and heat treatment, also empowering other business segments[59] - The company demonstrates excellent rapid response capabilities in product design changes, sample delivery, and mass production, improving flexible manufacturing levels[60][61] - The company's various business segments rapidly expand their multi-field customer base through shared, complementary, and penetrating customer resources, such as foldable screen hinge business and thermal management module business sharing consumer electronics customer resources[62] - The company achieves product upgrades through synergy across business segments, cross-application of technologies, and integrated innovation, developing more complex and higher-performance innovative products, such as the mass production of foldable phone hinges by combining MIM and transmission segments[63] III. Main Business Analysis The company's main business revenue increased by 41.19% this reporting period, primarily due to increased customer demand and concentrated ramp-up of new projects, with operating costs increasing by 42.96%, and MIM parts and components and transmission/thermal management components being the main revenue sources, where MIM business gross margin slightly decreased while transmission/thermal management components gross margin slightly increased Year-on-Year Changes in Key Financial Data | Indicator | Current Period (Yuan) | Prior Year (Yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,414,566,400.19 | 1,001,908,338.30 | 41.19% | Increased customer demand, concentrated ramp-up of new projects | | Operating Cost | 954,477,486.08 | 667,659,480.99 | 42.96% | Increased sales volume | | Income Tax Expense | -533,674.87 | -9,156,324.06 | -94.17% | Change in deferred income tax | | R&D Investment | 128,259,117.76 | 90,839,933.22 | 41.19% | Increased operating revenue, synchronous increase in R&D investment | | Net Cash Flow from Operating Activities | -216,710,625.36 | 9,160,747.02 | -2,465.64% | Decreased collections, increased bill acceptances, increased employee compensation | | Net Cash Flow from Investing Activities | -60,354,969.93 | -166,987,930.70 | -63.86% | Redemption of wealth management products | | Net Cash Flow from Financing Activities | 84,892,713.64 | -54,223,747.87 | -256.56% | Increased short-term bank borrowings | | Credit Impairment Loss | -19,419,731.79 | -5,423,113.44 | 258.09% | Increased revenue, increased accounts receivable balance leading to higher provisions | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | Year-on-Year Change in Operating Revenue | Year-on-Year Change in Operating Cost | Year-on-Year Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | MIM Parts and Components | 838,013,890.07 | 497,271,395.55 | 40.66% | 30.19% | 32.94% | -1.23% | | Transmission, Thermal Management Components, and Others | 364,792,446.80 | 307,192,414.80 | 15.79% | 70.27% | 69.47% | 0.40% | IV. Non-Main Business Analysis This reporting period, the company's non-main businesses significantly impacted total profit, with asset impairment losses reaching -89.34 million Yuan, accounting for -90.06% of total profit, mainly due to inventory depreciation provisions, while investment income, non-operating income, and government subsidies also contributed to total profit Non-Main Business Items and Amounts | Item | Amount (Yuan) | Proportion of Total Profit | Explanation of Formation Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 190,617.75 | 0.19% | Purchase of wealth management products and forward hedging business | Yes | | Asset Impairment | -89,341,141.71 | -90.06% | Provision for inventory depreciation | Yes | | Non-Operating Income | 261,588.04 | 0.26% | Received liquidated damages | No | | Non-Operating Expenses | 2,328,985.39 | 2.35% | Quality compensation payments | No | | Other Income | 9,913,895.06 | 9.99% | Government subsidies and VAT tax incentives | No | | Asset Disposal Income | -497,243.86 | -0.50% | Disposal of non-current assets | No | V. Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets increased by 16.54% year-on-year, and net assets attributable to shareholders increased by 5.95%, with significant increases in accounts receivable and inventory, a decrease in monetary funds, and substantial increases in short-term borrowings and accounts payable, while major overseas assets are located in the US and Hong Kong, operating under trade, R&D, investment, and service models Significant Changes in Asset Composition | Item | Amount at End of Current Period (Yuan) | Proportion of Total Assets | Amount at End of Prior Year (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 587,750,873.18 | 15.51% | 765,587,552.76 | 23.28% | -7.77% | | | Accounts Receivable | 1,069,968,918.16 | 28.24% | 609,973,279.05 | 18.55% | 9.69% | Increased operating revenue | | Inventories | 530,334,420.83 | 14.00% | 396,685,831.07 | 12.06% | 1.94% | Increased inventory preparation | | Short-Term Borrowings | 149,396,581.77 | 3.94% | 39,104,953.23 | 1.19% | 2.75% | New bank borrowings | | Accounts Payable | 800,140,925.77 | 21.12% | 450,821,754.15 | 13.71% | 7.41% | Increased material purchases | Major Overseas Assets | Specific Asset Content | Asset Scale (Yuan) | Location | Operating Model | Profit Status (Yuan) | Proportion of Overseas Assets to Company's Net Assets | | :--- | :--- | :--- | :--- | :--- | :--- | | GIAN TECH. AMERICA, INC | 17,961,357.97 | USA | Trade, R&D, Investment, and Services | 1,815,464.08 | 0.80% | | Gian (Hong Kong) Technology Development Co., Ltd. | 185,995,584.95 | Hong Kong | Trade and Services | 5,796,286.77 | 8.33% | Asset Rights Restricted as of the End of the Reporting Period | Item | Ending Balance (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 16,408,960.00 | Bank acceptance bill margin | | Monetary Funds | 547,100.00 | Letter of guarantee margin | | Monetary Funds | 5,901,422.98 | Frozen | | Total | 22,857,482.98 | | VI. Investment Status Analysis During the reporting period, the company's investment amount increased by 11.11%, primarily in new high-precision transmission system components and efficient thermal management components production projects, with 547 million Yuan in entrusted wealth management, 50 million Yuan of which remains outstanding at period-end, and forward foreign exchange derivative investments for hedging purposes effectively mitigating foreign exchange market risks Investment Amount During the Reporting Period | Indicator | Amount (Yuan) | Amount in Prior Year (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount During the Reporting Period | 8,000,000.00 | 7,200,000.00 | 11.11% | - No significant equity investments were made during the reporting period[81] Significant Non-Equity Investments in Progress | Project Name | Investment Method | Industry Involved in Investment Project | Amount Invested in Current Period (Yuan) | Cumulative Actual Investment Amount as of End of Reporting Period (Yuan) | | :--- | :--- | :--- | :--- | :--- | | New High-Precision, High-Performance Transmission System Components Production Project | Self-built | Computer, Communication and Other Electronic Equipment Manufacturing | 4,892,070.00 | 36,675,309.14 | | New High-Efficiency Thermal Management Components Production Project | Self-built | Computer, Communication and Other Electronic Equipment Manufacturing | 0.00 | 31,661,378.43 | Overview of Entrusted Wealth Management | Specific Type | Entrusted Wealth Management Amount (10,000 Yuan) | Outstanding Balance (10,000 Yuan) | | :--- | :--- | :--- | | Brokerage Wealth Management Products | 20,000 | 5,000 | | Bank Wealth Management Products | 34,700 | 0 | | Total | 54,700 | 5,000 | - The company engaged in forward foreign exchange derivative investments for hedging purposes, with an investment amount of 201.76 million Yuan at period-end, accounting for 9.08% of the company's net assets at the end of the reporting period[89] - Funds for derivative investments come from the company's own capital, and the company has established internal control systems, selecting simple, liquid, and controllable financial derivative instruments to effectively mitigate foreign exchange market risks[89] 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 during the reporting period[93] - The company did not sell any major equity during the reporting period[94] VIII. Analysis of Major Holding and Participating Companies This section lists the company's major holding subsidiaries, including Gian (Hong Kong) Technology Development Co., Ltd. and Guangdong Gian Technology Development Co., Ltd., and discloses their key financial data, with no acquisitions or disposals of subsidiaries during the reporting period Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Gian (Hong Kong) Technology Development Co., Ltd. | Subsidiary | Trade and Services | 809,930.00 | 185,995,584.95 | 46,577,551.53 | 78,745,657.02 | 5,796,286.77 | | Guangdong Gian Technology Development Co., Ltd. | Subsidiary | Manufacturing and sales of forgings and powder metallurgy products; vacuum coating processing | 30,000,000.00 | 180,795,336.81 | 25,004,739.78 | 98,560,312.29 | 9,024,882.97 | - There were no acquisitions or disposals of subsidiaries during the reporting period[96] IX. Information on Structured Entities Controlled by the Company The company had no controlled structured entities during the reporting period - The company had no controlled structured entities during the reporting period[96] X. Risks Faced by the Company and Countermeasures The company faces risks from global macroeconomic fluctuations, market competition, single process and technology substitution, new business expansion falling short of expectations, declining gross margins, management risks, supply chain relocation under deglobalization, exchange rate fluctuations, and international trade tariffs, which it addresses by enhancing R&D, expanding customers and business areas, strengthening cost control, optimizing management processes, and actively responding to supply chain and exchange rate challenges - Risk: Global macroeconomic fluctuations and declining customer demand, with the consumer electronics industry generally sluggish, and lower-than-expected sales from end customers potentially impacting the company[96] - Countermeasure: Closely monitor macroeconomic and industry trends, enhance R&D and innovation capabilities, deepen relationships with existing customers and expand to new ones, and broaden industry and business areas[97] - Risk: Low concentration in the MIM industry and entry of new competitors; if the company fails to maintain its advantages in technology, processes, production management, and product quality, its market share may decline[97] - Countermeasure: Increase R&D investment, enrich technology reserves, improve product quality and production efficiency, and explore new fields, markets, and businesses[97] - Risk: Single process (primarily MIM technology), limited application scenarios and scope, leading to weaker overall risk resistance, and MIM technology facing competition and substitution from other manufacturing processes[97][98] - Countermeasure: Closely monitor market dynamics and technological changes, increase R&D investment and talent acquisition, reserve new technologies, processes, and materials, and strengthen cost control[98] - Risk: New business segments such as transmission, thermal management, precision plastics, and terminal products may not expand as expected[98][99] - Countermeasure: Promote standardized operation and management of subsidiaries, track new business developments, and rationally utilize strategic, financial, technological, market, and operational management resources[99] - Risk: Declining gross margins due to industry competition, reduced customer profits, and rising costs[99] - Countermeasure: Develop high-value-added new products guided by market demand, strengthen supplier management, improve automation levels and product yield, and reduce production costs[99] - Risk: Management risks, as business diversification increases the need for management synergy and integration, which could be adversely affected if management capabilities do not keep pace[100] - Countermeasure: Optimize operational and management processes, leverage business synergies, strengthen integrated management, and attract excellent management and technical talent[100] - Risk: Supply chain relocation under deglobalization, with some major North American customers potentially requiring domestic component suppliers to relocate overseas[100] - Countermeasure: Actively explore domestic customers and demand, develop business segments such as transmission, thermal management, and automation equipment, broaden product application areas, improve product and customer structure, and have already established a grandchild company in Vietnam[101] - Risk: Exchange rate fluctuations, as the company's overseas revenue is settled in foreign currencies, and RMB exchange rate fluctuations affect profitability[101] - Countermeasure: Increase efforts to expand the domestic market, boost domestic sales revenue, closely monitor foreign exchange market fluctuations, and use financial derivatives to mitigate exchange rate risks[101] - Risk: Frequent changes in international trade tariff policies, bringing uncertainty to product exports[102] - Countermeasure: Effectively communicate with customers to hedge risks, develop six major business segments to reduce single market and geopolitical risks, vigorously develop domestic customers, optimize supply chain costs, and jointly develop high-value-added products[102] XI. Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period During the reporting period, the company hosted multiple institutional investors via online platforms and phone calls, discussing performance, tariff impacts, capacity utilization, Vietnam operations, key customers, MIM industry trends, order backlog, thermal management progress, profit growth drivers, domestic substitution advantages, investment and strategic planning, and automotive-related businesses - On April 30, 2025, the company hosted investors via an online platform, discussing tariff impacts, capacity utilization, the situation of the Vietnam company, key customers, profitability, MIM industry development trends, order backlog, thermal management business progress, profit growth drivers, domestic substitution advantages, 2024 and Q1 2025 performance, investment and strategic planning, automotive-related businesses, and thermal management business order backlog[103] - On May 7, 2025, the company hosted institutional investors including Bosera Asset Management, HSBC Jintrust Fund, and CITIC Securities via phone, discussing 2024 and Q1 2025 performance, business changes and highlights, tariff issues, foldable screen hinge orders, motor and gearbox business revenue outlook, recent status of the Vietnam subsidiary, and Q1 MIM component revenue[103] XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company did not formulate a market value management system[104] - The company did not disclose a valuation enhancement plan[104] XIII. Implementation of "Quality and Return Dual Improvement" Action Plan The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan during the reporting period - The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan[104] Part IV Corporate Governance, Environment, and Society I. Changes in Directors, Supervisors, and Senior Management of the Company During the reporting period, there were no changes in the company's directors, supervisors, and senior management, with specific details available in the 2024 annual report - There were no changes in the company's directors, supervisors, and senior management during the reporting period[106] II. Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year[107] III. Implementation of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company initiated and implemented the 2025 Restricted Stock Incentive Plan, which was reviewed by the board and supervisory board, publicly disclosed to incentive recipients, approved by the general meeting of shareholders, and involved adjustments to the grant price and initial grant of restricted stock - On June 5, 2025, the company's board of directors and supervisory board convened and approved the "2025 Restricted Stock Incentive Plan (Draft)" and its summary, along with the implementation and assessment management measures[108] - From June 6 to 15, 2025, the company publicly disclosed the list of incentive recipients and received no objections[109] - On June 23, 2025, the company's general meeting of shareholders approved the incentive plan and authorized the board of directors to handle related matters[109] - On June 23, 2025, the company's board of directors and supervisory board approved the proposals to adjust the grant price and make the initial grant of restricted stock[110] IV. Environmental Information Disclosure The company and its major subsidiaries are included in the list of enterprises required to disclose environmental information, and the environmental information of Jiangsu Gian Technology Co., Ltd. (A Park) can be found on the National Pollutant Discharge Permit Management Information Platform - The company and its major subsidiaries are included in the list of enterprises required to disclose environmental information in accordance with the law[112] Enterprises Included in the List of Enterprises Required to Disclose Environmental Information | No. | Enterprise Name | Query Index for Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Jiangsu Gian Technology Co., Ltd. (A Park) | National Pollutant Discharge Permit Management Information Platform - Public Access (https://permit.mee.gov.cn/permitExt/defaults/defaultIndex!getInformation.action) | V. Social Responsibility Performance The company adheres to its core values, committing to legal and ethical operations, protecting the rights of shareholders, employees, suppliers, customers, and consumers, and actively fulfilling social responsibilities through standardized management, information disclosure, employee welfare and training, and win-win cooperation to achieve sustainable development and maximize long-term value - The company consistently regards legal and ethical operations as its foundation for survival, strictly adhering to laws and regulations, standardizing corporate management, and paying taxes in accordance with the law[113] - The company strictly adheres to laws, regulations, and institutional requirements, disclosing information truthfully, accurately, completely, timely, and fairly, and communicates with investors through various channels to protect shareholder rights[113] - The company upholds a "people-oriented" talent philosophy, respects employee rights, complies with labor laws, provides social security and housing provident funds, and offers welfare and training opportunities to achieve common growth for employees and the enterprise[114] - The company emphasizes win-win cooperation with suppliers and customers, establishing a sound supply chain cooperation mechanism, providing excellent products and services to customers, and fulfilling its social responsibilities to customers and consumers[114] Part V Important Matters I. Commitments Made by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company, etc., that were Fulfilled During the Reporting Period or Overdue and Unfulfilled as of the End of the Reporting Period All commitments made by the company, its controlling shareholders, actual controllers, directors, supervisors, and senior management during the initial public offering or refinancing are being fulfilled; however, the performance compensation commitments from the original shareholders of subsidiary Antixin are overdue and unfulfilled, leading the company to file a lawsuit and apply for enforcement, with the case currently in the retrial acceptance stage and the outcome of enforcement uncertain - Commitments made by the company, controlling shareholders, actual controllers, directors, supervisors, and senior management during the initial public offering (e.g., truthfulness of prospectus, share reduction price, avoidance of horizontal competition) are all being fulfilled[116][117][118] - The performance commitments (2020-2022) made by the original shareholders of subsidiary Antixin, Xu Mingqiang, Chen Mingfang, Yan Weijun, and He Lang, were not met, and their compensation obligations are overdue and unfulfilled[119][120][121] - The company has filed a lawsuit against Chen Mingfang and Zheng Yilin regarding the Antixin performance compensation dispute, which has been finally adjudicated, ruling for the auction or sale of Chen Mingfang's 10% equity in Antixin, but the case is currently in the retrial acceptance stage, and the outcome of enforcement is uncertain[121] II. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties of the Listed Company During the reporting period, there were no instances of non-operating funds of the listed company being occupied by controlling shareholders or other related parties - During the reporting period, there were no instances of non-operating funds of the listed company being occupied by controlling shareholders or other related parties[122] III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[123] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[124] V. Board of Directors, Supervisory Board, and Audit Committee's Explanation on the Accounting Firm's "Non-Standard Audit Report" for the Current Reporting Period The company had no non-standard audit report during the reporting period - The company had no non-standard audit report during the reporting period[125] VI. Board of Directors' Explanation on the "Non-Standard Audit Report" for the Prior Year The company had no explanation regarding a non-standard audit report for the prior year during the reporting period - The company had no explanation regarding a non-standard audit report for the prior year during the reporting period[125] VII. Matters Related to Bankruptcy and Reorganization The company had no matters related to bankruptcy and reorganization during the reporting period - The company had no matters related to bankruptcy and reorganization during the reporting period[125] VIII. Litigation Matters During the reporting period, the company had no major litigation or arbitration matters, but other litigation matters existed, including the performance compensation dispute with Antixin's original shareholders (finally adjudicated but still in enforcement and subject to retrial application) and a contract dispute with Changshu Changchun Auto Parts Co., Ltd. (concluded) - The company had no major litigation or arbitration matters during the reporting period[126] - The company's performance compensation dispute with Ms. Chen Mingfang and Mr. Zheng Yilin, involving 92.71 million Yuan, has been adjudicated in the second instance, is still in enforcement, and Chen Mingfang and Zheng Yilin have applied for retrial[126] - The company's contract dispute with Changshu Changchun Auto Parts Co., Ltd., involving 2.26 million Yuan, was concluded in July 2025, with the second instance upholding the original judgment[126] IX. Penalties and Rectification Status The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[127] X. Integrity Status of the Company and its Controlling Shareholders and Actual Controllers During the reporting period, there were no issues regarding the integrity status of the company, its controlling shareholders, or actual controllers - During the reporting period, there were no issues regarding the integrity status of the company, its controlling shareholders, or actual controllers[128] XI. Major Related Party Transactions During the reporting period, the company had no major related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, or related party creditor-debtor relationships, but did have minor related party transactions involving goods purchases and sales and leasing - The company had no related party transactions related to daily operations during the reporting period[129] - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[130] - The company had no related party transactions involving joint external investments during the reporting period[131] - The company had no related party creditor-debtor relationships during the reporting period[132] - The company had related party transactions involving sales of goods with Changzhou Haoyan Intelligent Technology Co., Ltd. and purchases and sales of goods with Guangdong Supai Drive Technology Co., Ltd.[139] - The company leased property to Changzhou Chuangyan Investment Consulting Co., Ltd., recognizing rental income of 5,504.59 Yuan in the current period[140] XII. Major Contracts and Their Performance The company had no major entrustment, contracting, leasing, guarantee, daily operation, or other significant contracts during the reporting period - The company had no entrustment situations during the reporting period[136] - The company had no contracting situations during the reporting period[137] - The company had no major leasing situations during the reporting period[138] - The company had no major guarantee situations during the reporting period[139] - The company had no major contracts related to daily operations during the reporting period[140] - The company had no other major contracts during the reporting period[140] XIII. Explanation of Other Major Matters During the reporting period, the company implemented its 2024 profit distribution plan and continued to advance litigation regarding the Antixin original shareholders' performance compensation, additionally approving a proposal to issue convertible corporate bonds to unspecified objects and deciding to increase board seats and revise the "Articles of Association" to improve corporate governance structure - The company implemented its 2024 profit distribution plan, distributing a cash dividend of 1.10 Yuan (including tax) per 10 shares to all shareholders, totaling 20.47 million Yuan[141] - The Antixin original shareholders' performance compensation matter continues to progress, with the company receiving court rulings to suspend enforcement, to auction Chen Mingfang's 10% equity in Antixin, and with Chen Mingfang and Zheng Yilin having applied for retrial[141][142] - The company approved proposals related to the issuance of convertible corporate bonds to unspecified objects[142][143] - The company decided to increase board seats from 7 to 9, adding one non-independent director and one employee representative director, and revised the "Articles of Association"[144] XIV. Major Matters of Company Subsidiaries During the reporting period, subsidiary Changzhou Ruidian Precision Technology Co., Ltd. changed its name to Jiangsu Gian Zhixing System Co., Ltd., while Jiangsu Gian Power System Co., Ltd. and Guangdong Gian Technology Development Co., Ltd. obtained "High-Tech Enterprise Certificates," and Gian Power and Gian Thermal completed capital increases, slightly diluting the company's shareholding but retaining control, with Gian Power establishing a new subsidiary, Changzhou Lingyan Drive Technology Co., Ltd. - Changzhou Ruidian Precision Technology Co., Ltd. changed its name to Jiangsu Gian Zhixing System Co., Ltd.[146] - Jiangsu Gian Power System Co., Ltd. and Guangdong Gian Technology Development Co., Ltd. obtained "High-Tech Enterprise Certificates"[146] - Gian Power completed a capital increase, diluting the company's shareholding from 69.7% to 66.21501%, but it remains its parent company[146] - Gian Thermal completed a capital increase, diluting the company's shareholding from 65.6% to 62.976%, but it remains its parent company[147] - Gian Power established a subsidiary, Changzhou Lingyan Drive Technology Co., Ltd., with a 75% shareholding, which is included in the company's consolidated financial statements[147] Part VI Changes in Shares and Shareholder Information I. Changes in Shares During the reporting period, the company's restricted shares decreased by 463,320 shares, unrestricted shares increased by 463,320 shares, and total share capital remained unchanged, primarily because former supervisor Mr. Shi Jun's shares were fully unrestricted after six months of his departure Changes in Shares | Share Class | Number Before This Change (shares) | Proportion Before This Change | Increase/Decrease in This Change (shares) | Number After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 37,256,940 | 20.02% | -463,320 | 36,793,620 | 19.77% | | II. Unrestricted Shares | 148,819,741 | 79.98% | 463,320 | 149,283,061 | 80.23% | | III. Total Shares | 186,076,681 | 100.00% | 0 | 186,076,681 | 100.00% | - The change in shares was due to the full release of restrictions on shares held by former supervisor Mr. Shi Jun after six months of his departure[151] Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Released in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Shi Jun | 463,320 | 463,320 | 0 | Restricted shares for directors, supervisors, and senior management, released after 6 months of departure | II. Issuance and Listing of Securities The company had no issuance or listing of securities during the reporting period - The company had no issuance or listing of securities during the reporting period[154] III. Company Shareholder Numbers and Shareholding Status At the end of the reporting period, the total number of common shareholders was 27,820, with Wang Mingxi holding 19.43%, Huang Yichao holding 4.90%, and Changzhou Chuangyan Investment Consulting Co., Ltd. holding 3.55% among the top ten shareholders, and Wang Mingxi and Huang Yichao being father and daughter, with Huang Yichao holding 59.50% of Changzhou Chuangyan Investment Consulting Co., Ltd. - The total number of common shareholders at the end of the reporting period was 27,820[154] 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) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Mingxi | Domestic Natural Person | 19.43% | 36,161,200 | 27,120,900 | 9,040,300 | | Huang Yichao | Domestic Natural Person | 4.90% | 9,110,724 | 6,833,043 | 2,277,681 | | Changzhou Chuangyan Investment Consulting Co., Ltd. | Domestic Non-State-Owned Legal Person | 3.55% | 6,608,959 | 0 | 6,608,959 | | Wu Junwen | Domestic Natural Person | 1.99% | 3,700,126 | 2,775,094 | 925,032 | | Industrial and Commercial Bank of China Co., Ltd. - Huaan Media Internet Mixed Securities Investment Fund | Other | 1.82% | 3,382,513 | 0 | 3,382,513 | | Shanghai Yicun Investment Management Co., Ltd. - Yicun Jishi No. 6 Private Securities Investment Fund | Other | 1.61% | 2,995,200 | 0 | 2,995,200 | | Zhuhai Abama Private Equity Investment Management Co., Ltd. - Abama Yuanxiang Hongli No. 5 Private Securities Investment Fund | Other | 1.45% | 2,696,320 | 0 | 2,696,320 | | Shanghai Chengrui Investment Management Co., Ltd. - Chengrui Wenjin No. 1 Private Securities Investment Fund | Other | 1.44% | 2,673,769 | 0 | 2,673,769 | | Bank of China Co., Ltd. - Huaxia Industry Prosperity Mixed Securities Investment Fund | Other | 1.41% | 2,629,300 | 0 | 2,629,300 | | Liu Ying | Domestic Natural Person | 1.21% | 2,242,700 | 0 | 2,242,700 | - The company's actual controllers, Wang Mingxi and Huang Yichao, are father and daughter; Huang Yichao holds 59.50% equity in Changzhou Chuangyan Investment Consulting Co., Ltd.[156] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management The shareholding status of the company's directors, supervisors, and senior management remained unchanged during the reporting period, as detailed in the 2024 annual report - The shareholding status of the company's directors, supervisors, and senior management remained unchanged during the reporting period[158] 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[159] - The company's actual controller remained unchanged during the reporting period[159] VI. Information on Preferred Shares The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[160] Part VII 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[162] Part VIII Financial Report I. Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[164] 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, comprehensively reflecting the company's financial position at the end of the reporting period and its operating results and cash flows during the reporting period Major Data from Consolidated Balance Sheet (Ending Balance) | Item | Amount (Yuan) | | :--- | :--- | | Monetary Funds | 587,750,873.18 | | Accounts Receivable | 1,069,968,918.16 | | Inventories | 530,334,420.83 | | Total Current Assets | 2,372,787,360.15 | | Fixed Assets | 1,066,606,650.53 | | Total Assets | 3,788,596,230.90 | | Short-Term Borrowings | 149,396,581.77 | | Accounts Payable | 800,140,925.77 | | Total Current Liabilities | 1,442,220,302.83 | | Total Liabilities | 1,555,906,427.74 | | Total Owners' Equity Attributable to Parent Company | 2,223,016,013.10 | | Total Owners' Equity | 2,232,689,803.16 | Major Data from Consolidated Income Statement (Current Period) | Item | Amount (Yuan) | | :--- | :--- | | Total Operating Revenue | 1,414,566,400.19 | | Total Operating Costs | 1,214,145,294.87 | | Operating Profit | 101,267,500.77 | | Total Profit | 99,200,103.42 | | Net Profit | 99,733,778.29 | | Net Profit Attributable to Parent Company Shareholders | 80,749,793.59 | | Basic Earnings Per Share (Yuan/share) | 0.43 | | Diluted Earnings Per Share (Yuan/share) | 0.43 | Major Data from Consolidated Cash Flow Statement (Current Period) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -216,710,625.36 | | Net Cash Flow from Investing Activities | -60,354,969.93 | | Net Cash Flow from Financing Activities | 84,892,713.64 | | Net Increase in Cash and Cash Equivalents | -190,159,965.78 | | Cash and Cash Equivalents at End of Period | 564,893,390.20 | III. Company Profile The company, formerly Changzhou Gian Technology Co., Ltd., was listed on the ChiNext board of the Shenzhen Stock Exchange on October 19, 2017, with a total share capital and registered capital of 186,076,681 shares and 186,076,681 Yuan respectively as of June 30, 2025, primarily engaged in metal injection molding for core electronic product components, controlled by Wang Mingxi and Huang Yichao, and its financial statements were approved by the board on August 28, 2025, with a consolidated scope including 15 subsidiaries - The company was listed on the ChiNext board of the Shenzhen Stock Exchange on October 19, 2017[198] - As of June 30, 2025, the company's total issued share capital was 186,076,681 shares, and its registered capital was 186,076,681 Yuan[198] - The company primarily operates in the metal injection molding industry for core electronic product components, with main products being structural parts and metal parts for consumer electronics[198] - The actual controllers are Mr. Wang Mingxi and Ms. Huang Yichao (father-daughter relationship)[198] - As of June 30, 2025, the company's consolidated scope included a total of 15 subsidiaries[199] IV. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and relevant regulations of the China Securities Regulatory Commission, using the accrual basis of accounting, and measured at historical cost except for certain financial instruments - The company's financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and the China Securities Regulatory Commission's "Information Disclosure Rules for Companies Issuing Securities No. 15 - General Provisions for Financial Reports (Revised 2023)"[200] - Accounting is based on the accrual method, and except for certain financial instruments, all are measured at historical cost[200] - The company has the ability to continue as a going concern for at least 12 months from the end of the reporting period[201] V. Significant Accounting Policies and Accounting Estimates This section details the company's specific accounting policies and estimates for financial instruments, inventories, fixed assets, intangible assets, revenue recognition, and government subsidies, including financial asset classification, impairment provision, inventory valuation, depreciation and amortization methods, and capitalization criteria for R&D expenditures, also explaining the determination method for materiality standards - The company classifies financial assets into those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss, based on the business model for managing financial assets and the characteristics of contractual cash flows[231] - The company makes impairment provisions for financial assets such as notes receivable, accounts receivable, and other receivables based on expected credit losses[242] - Inventories are initially measured at cost upon acquisition, valued using the weighted average method at month-end upon issuance, and provisions for inventory depreciation are made at the lower of cost or net realizable value at period-end[253][254] - Fixed assets are depreciated using the