盛路通信(002446) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions This section provides crucial disclaimers, the report's structural overview, and definitions of key terms used throughout the document Important Notice The board and senior management guarantee the report's accuracy, with no cash dividends or share transfers planned - The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the report content and assume legal responsibility[4] - Company's responsible person Yang Hua, chief accountant Liu Tun, and head of accounting department Wei Huan declare that the financial report is true, accurate, and complete[4] - The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital[4] Table of Contents This section outlines the report's structure, including key sections like company profile, financial analysis, and governance Reference Documents Reference documents include the signed semi-annual report, financial statements, and publicly disclosed company announcements - Reference documents include the semi-annual report and its summary signed by the legal representative[8] - Reference documents include financial statements signed by the chief accountant and head of the accounting department[8] - Reference documents include the originals of all company documents and announcements publicly disclosed in newspapers designated by the China Securities Regulatory Commission during the reporting period[8] Definitions This section defines key terms such as "the Company" and "the Group," and specifies the reporting period from January 1 to June 30, 2025 - "The Company/Company/Parent Company/This Enterprise/Shenglu Telecommunication" refers to Guangdong Shenglu Telecommunication Technology Co., Ltd[10] - "The Group" refers to Guangdong Shenglu Telecommunication Technology Co., Ltd. and its subsidiaries[10] - The reporting period refers to January 1, 2025, to June 30, 2025[10] Part II Company Profile and Key Financial Indicators This section introduces the company's basic information and presents its key financial performance and position for the reporting period 1. Company Profile The company, Shenglu Telecommunication, is listed on the Shenzhen Stock Exchange with stock code 002446, and its legal representative is Yang Hua - Company stock abbreviation: Shenglu Telecommunication, stock code: 002446[12] - Stock exchange for listing: Shenzhen Stock Exchange[12] - Company legal representative: Yang Hua[12] 2. Contact Person and Information The company's Board Secretary is Cai Huiqin, with contact details including address, phone, fax, and email - Board Secretary: Cai Huiqin[13] - Contact phone/fax: 0757-87744984[13] - Email: stock@shenglu.com[13] 3. Other Information The company's registered address, office address, website, and information disclosure locations remained unchanged during the reporting period - The company's contact information remained unchanged during the reporting period and can be found in the 2024 annual report[14] - Information disclosure and storage locations remained unchanged during the reporting period and can be found in the 2024 annual report[15] 4. Key Accounting Data and Financial Indicators For H1 2025, revenue grew 9.10% to 614.08 million yuan, net profit increased 16.02% to 57.55 million yuan, while operating cash flow decreased significantly 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 614,081,198.40 | 562,862,400.59 | 9.10% | | Net Profit Attributable to Shareholders of Listed Company | 57,546,178.18 | 49,600,099.28 | 16.02% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 46,770,498.70 | 44,505,522.01 | 5.09% | | Net Cash Flow from Operating Activities | 51,457,732.52 | 133,693,210.82 | -61.51% | | Basic Earnings Per Share (yuan/share) | 0.06 | 0.05 | 20.00% | | Diluted Earnings Per Share (yuan/share) | 0.06 | 0.05 | 20.00% | | Weighted Average Return on Net Assets | 2.31% | 1.53% | 0.78% | | Indicator | End of Current Reporting Period (yuan) | End of Prior Year (yuan) | Change from End of Prior Year (%) | | :--- | :--- | :--- | :--- | | Total Assets | 3,777,647,342.93 | 3,578,502,513.89 | 5.57% | | Net Assets Attributable to Shareholders of Listed Company | 2,517,272,518.59 | 2,467,291,675.51 | 2.03% | 5. Differences in Accounting Data Under Domestic and International Accounting Standards The company reports no differences in net profit or net assets between domestic and international accounting standards for the reporting period - The company's financial report for the reporting period shows no differences in net profit and net assets disclosed under International Accounting Standards compared to Chinese Accounting Standards[17] - The company's financial report for the reporting period shows no differences in net profit and net assets disclosed under overseas accounting standards compared to Chinese Accounting Standards[18] 6. Non-Recurring Gains and Losses and Amounts Non-recurring gains and losses totaled 10.78 million yuan in H1 2025, primarily from government grants, fair value changes, and entrusted investments 2025 Semi-Annual Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | 253,335.61 | | Government grants recognized in current profit or loss | 6,265,221.06 | | Gains or losses from changes in fair value of financial assets and liabilities, and disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations of non-financial enterprises | 2,453,156.61 | | Gains or losses from entrusted investments or asset management | 2,065,684.55 | | Other non-operating income and expenses apart from the above items | 25,565.03 | | Less: Income tax impact | 283,760.28 | | Minority interest impact (after tax) | 3,523.10 | | Total | 10,775,679.48 | - The company has no other profit and loss items that meet the definition of non-recurring gains and losses[21] - The company has not classified non-recurring gains and losses listed in "Interpretive Announcement No. 1 on Information Disclosure by Companies Issuing Securities to the Public—Non-Recurring Gains and Losses" as recurring gains and losses[22] Part III Management Discussion and Analysis This section provides an in-depth analysis of the company's operations, financial performance, core competencies, and risk factors during the reporting period 1. Principal Business Activities During the Reporting Period The company focuses on civil communication and microwave electronics, advancing in satellite internet and low-altitude economy with intelligent manufacturing - The company deeply collaborates with globally influential communication equipment manufacturers, continuously focusing on civil communication and microwave electronics as its two core businesses[26] - Leveraging over two decades of microwave technology accumulation, the company steadily advances in ultra-wideband up/down conversion systems, millimeter-wave radar, satellite internet, and low-altitude economy[26] - Guided by "new quality productive forces," the company systematically promotes the deep integration of production automation, management informatization, and data-driven decision-making, building an intelligent manufacturing system[26] (I) Industry Development Overview In H1 2025, the civil communication industry saw steady growth driven by 5G/6G and AI, while the microwave electronics sector faced profit pressure despite strong military demand - In the first half of 2025, China's telecommunications business revenue increased by 1% year-on-year, with total telecommunications business volume growing by 9.3%[24] - As of the end of June, the total number of 5G base stations nationwide reached 4.549 million units, accounting for 35.7% of all mobile base stations, a net increase of 298,000 units from the end of last year[24] - 6G technology research and development entered a critical stage, with China being at the forefront of 6G standard setting and key technology reserves internationally[25] - The defense budget for the military industry increased by 7.2% year-on-year, but declining prices for mass production projects and increased R&D investment led to profit pressure[25] (II) Company's Main Business, Products, Applications, and Business Model The company's main businesses are civil communication (antennas, RF devices) and microwave electronics (ultra-wideband systems), both operating on a customized, build-to-order model - The civil communication business primarily focuses on the research, development, production, sales, and service of mobile communication antennas, RF devices, active integrated communication equipment, and overall solutions for vertical industries[27] - Civil communication products cover frequency bands from 1000KHz to 80GHz, holding hundreds of patents, with some performance and technical indicators reaching international advanced levels[27] - The microwave electronics business revolves around ultra-wideband up/down conversion systems, with products mainly applied in radar, electronic countermeasures, remote sensing, and satellite communication fields[28] - The company has over 20 years of technical accumulation in the microwave electronics industry, forming a competitive advantage in ultra-wideband up/down conversion technology[32] (III) Market Position The company holds a leading position in civil communication through partnerships with major operators and in microwave electronics as a core component supplier to military research institutes - In the civil communication sector, the company is deeply tied to China Mobile, China Telecom, and China Unicom, the three core domestic operators, and has established long-term strategic partnerships with internationally renowned communication equipment manufacturers[34] - In the microwave electronics sector, as a core microwave component and module manufacturer, the company has formed differentiated competitive barriers based on years of hardware R&D advantages and accumulated top-tier customer resources[34] - Compared to research institutions and state-owned enterprises, the company demonstrates significant cost control capabilities, efficient decision-making mechanisms, and rapid response speeds in project undertaking[34] (IV) Key Performance Drivers Performance is driven by deep involvement in operator antenna procurement, new base station antenna development, and breakthroughs in SIP micro-packaged RF microwave modules - In the civil communication sector, the company successfully entered the new generation base station antenna resource pool of a leading global equipment manufacturer and engaged in deep technical collaboration and industrialization planning for new generation base station projects and core supporting components[35] - The company independently developed the "4+4+8+8" 700-900/1800/FA/D independent electrical tuning smart antenna, enhancing gain and radiation efficiency, and promoting base station antennas towards fewer cables, lower cost, and higher efficiency[35] - In the microwave communication device field, the company filled the technical gap in "5GHz and 80GHz frequency band large-span compatible communication" and won the 10th Guangdong Patent Award[36] - In the microwave electronics sector, the company achieved breakthroughs in SIP micro-packaged RF microwave modules, innovatively launched SIP harmonic generation and switch filter circuits, and completed small-batch production and delivery of Terahertz W-band frequency conversion channel components[38] 2. Analysis of Core Competencies The company's core strengths lie in advanced technology, digital management, talent development, and strong customer relationships and brand reputation - The company maintains full competitive advantages in technology, management, talent, customers, and brand, ensuring sustainable development[40] 1. Technological Advantages The company boasts 471 patents, leading ultra-wideband up/down conversion technology, active phased array expertise, and a CNAS/CMA certified independent laboratory - As of the first half of 2025, the company has accumulated 471 patent authorizations, with 26 new additions during the current reporting period[40] - The company holds a leading position in China in ultra-wideband up/down conversion technology, which is one of the key core technologies in modern electronic communication systems such as microwave/millimeter-wave communication, radar, electronic countermeasures, and remote sensing[40] - The company possesses an independent third-party laboratory spanning over 6,000 square meters, certified by ISO/17025 and accredited with CNAS and CMA national testing qualifications, capable of comprehensive antenna passive electrical performance testing and wireless RF testing[43] 2. Digital Management Advantages The company has established a comprehensive digital management platform, including SAP S4/HANA ERP and MES, achieving end-to-end data integration and earning "Level 3 Digital Intelligent Demonstration Factory" recognition - The company has built a digital management platform centered on SAP S4/HANA ERP, Windchill PLM, and MES, achieving full-process data collection, quality control, and end-to-end business closure from R&D, procurement, production, sales to service[44] - The company was recognized as one of the first "Level 3 Digital Intelligent Demonstration Factories" in Foshan City, enhancing overall production efficiency and product quality while reducing operating costs and comprehensive energy consumption[44] - The company has successfully introduced fully automated production lines, reducing labor costs by 80% while doubling production capacity, significantly enhancing intelligent manufacturing levels and industry competitive barriers[37][44] 3. Talent Advantages The company fosters talent through industry-academia collaboration platforms, including postdoctoral research stations, and offers diverse incentive mechanisms like equity plans - The company has established a comprehensive talent cultivation and technical collaboration system, relying on 2 national postdoctoral research workstations, 1 provincial postdoctoral workstation, 3 provincial engineering technology research centers, and 3 provincial enterprise technology centers[45] - The company co-established the "Communication Intelligent Manufacturing Innovation Center" with Xi'an University of Electronic Science and Technology Guangzhou Research Institute, focusing on industrial intelligent technology R&D and talent cultivation[47] - The company has built a diversified incentive mechanism, including a special reward system guided by market efficiency and intellectual property, competitive compensation and benefits, equity incentive plans, and career development pathways[47] 4. Customer and Brand Advantages The company maintains strong customer relationships with major domestic and international operators in civil communication and military research institutes in microwave electronics - The civil communication business's core customer base covers the three major domestic basic operators, China Tower, and leading global communication equipment manufacturers, with international market presence in countries such as Mexico, Russia, France, Israel, Italy, and Singapore[47] - The company has established deep collaborative mechanisms with leading communication equipment manufacturers, achieving joint development of technical standards and products in key areas[47] - Customers in the microwave electronics business are primarily military research institutes and downstream complete machine manufacturers, who trust the company for its stable and reliable product quality, unique technical problem-solving, supporting capabilities, risk resistance, and organizational efficiency[48] 3. Analysis of Principal Business In H1 2025, revenue grew 9.10% to 614.08 million yuan, driven by communication equipment and microwave electronics, while operating cash flow and investment cash flow decreased - Operating revenue increased by 9.10% year-on-year, while operating costs increased by 15.39% year-on-year[51] - Financial expenses decreased by 101.03% year-on-year, mainly due to a decrease in foreign exchange losses from exchange rate fluctuations during the reporting period[51] - Net cash flow from operating activities decreased by 61.51% year-on-year, primarily due to a year-on-year decrease in cash received from sales by subsidiaries during the reporting period[51] - Net cash flow from investing activities decreased by 68.83% year-on-year, mainly due to increased investment in the company's industrial park project construction during the reporting period[51] 2025 Semi-Annual Operating Revenue Composition | Item | Amount for Current Period (yuan) | Proportion of Operating Revenue (%) | Amount for Prior Year Period (yuan) | Proportion of Operating Revenue (%) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 614,081,198.40 | 100% | 562,862,400.59 | 100% | 9.10% | | By Industry | | | | | | | Communication Equipment | 326,856,344.41 | 53.23% | 299,508,036.43 | 53.21% | 9.13% | | Microwave Electronics | 287,224,853.99 | 46.77% | 263,354,364.16 | 46.79% | 9.06% | | By Product | | | | | | | Base Station Antennas | 164,675,678.63 | 26.82% | 124,576,692.37 | 22.13% | 32.19% | | Microwave Communication Devices | 81,682,682.92 | 13.30% | 106,808,624.55 | 18.98% | -23.52% | | RF Devices and Equipment | 17,085,452.00 | 2.78% | 16,528,815.93 | 2.94% | 3.37% | | Terminal Antennas | 63,412,530.86 | 10.33% | 51,593,903.58 | 9.17% | 22.91% | | Microwave Electronics | 287,224,853.99 | 46.77% | 263,354,364.16 | 46.79% | 9.06% | | By Region | | | | | | | Domestic Sales | 606,281,097.92 | 98.73% | 544,884,770.41 | 96.81% | 11.27% | | International Sales | 7,800,100.48 | 1.27% | 17,977,630.18 | 3.19% | -56.61% | 4. Analysis of Non-Principal Business Non-principal business activities, including investment income, asset impairment, and government grants, significantly impacted total profit in H1 2025 2025 Semi-Annual Impact of Non-Principal Business on Total Profit | Item | Amount (yuan) | Proportion of Total Profit (%) | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 3,832,484.21 | 6.46% | Primarily investment income from wealth management products and associates | No | | Fair Value Change Gains/Losses | -42,566.50 | -0.07% | Primarily fair value changes of trading financial assets | No | | Asset Impairment | -2,238,614.64 | -3.77% | Primarily impairment losses on inventory | No | | Non-Operating Income | 418,296.14 | 0.70% | Primarily income from breach of contract compensation, asset scrap gains, etc. | No | | Non-Operating Expenses | 458,235.98 | 0.77% | Primarily external donations, breach of contract compensation expenses, asset scrap losses, etc. | No | | Credit Impairment | -18,836,496.15 | -31.73% | Primarily credit impairment provisions for accounts receivable | No | | Other Income | 8,116,539.14 | 13.67% | Primarily government grants and VAT input tax additional deductions, etc. | Except for VAT input tax additional deductions and individual income tax handling fee income, other parts are not sustainable | 5. Analysis of Assets and Liabilities Total assets increased by 5.57% to 3.78 billion yuan, with notable changes in cash, accounts receivable, construction in progress, and short-term borrowings 2025 Semi-Annual 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 | 545,400,243.88 | 14.44% | 790,343,676.94 | 22.09% | -7.65% | Primarily due to a year-on-year decrease in cash received from sales and increased investment in industrial park construction during the reporting period | | Accounts Receivable | 922,576,238.64 | 24.42% | 775,993,531.22 | 21.68% | 2.74% | Primarily due to an increase in accounts receivable not yet due during the reporting period | | Construction in Progress | 413,265,561.77 | 10.94% | 328,166,765.28 | 9.17% | 1.77% | Primarily due to increased investment in subsidiary capacity expansion during the reporting period | | Short-Term Borrowings | 234,448,465.15 | 6.21% | 119,539,344.09 | 3.34% | 2.87% | Primarily due to the company needing to supplement working capital for production and operations through short-term borrowings as self-funded investment in industrial park construction increased during the reporting period | | Trading Financial Assets | 318,449,541.58 | 8.43% | 4,486,551.60 | 0.13% | 8.30% | Primarily due to a year-on-year increase in wealth management products not yet due during the reporting period | | Intangible Assets | 158,291,070.98 | 4.19% | 56,847,556.88 | 1.59% | 2.60% | Primarily due to land acquisition for the industrial park project during the reporting period | - The company had no major overseas assets during the reporting period[61] - The company's asset rights restrictions at the end of the reporting period are detailed in the relevant sections of the financial report[63] 6. Analysis of Investment Status The company had no major equity or non-equity investments, with securities investments totaling 7.02 million yuan and a 96.82% overall utilization of raised funds, though some projects were delayed - The company had no major equity investments or non-equity investments during the reporting period[64] 2025 Semi-Annual Securities Investment Status | Security Type | Security Code | Security Name | Initial Investment Cost (yuan) | Accounting Measurement Model | Book Value at Beginning of Period (yuan) | Fair Value Change Gains/Losses for Current Period (yuan) | Amount Purchased for Current Period (yuan) | Amount Sold for Current Period (yuan) | Gains/Losses for Reporting Period (yuan) | Book Value at End of Period (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic and Foreign Stocks | 688158 | UCloud Technology | 6,856,653.49 | Fair Value Measurement | - | 159,143.09 | 6,856,653.49 | - | 159,143.09 | 7,015,796.58 | | Domestic and Foreign Stocks | 603300 | Hainan Huatie | 5,187,586.13 | Fair Value Measurement | 4,486,551.60 | 319,186.67 | 5,068,873.33 | 11,726,909.61 | 2,171,484.68 | - | | Total | - | - | 12,044,239.62 | - | 4,486,551.60 | 478,329.76 | 11,925,526.82 | 11,726,909.61 | 2,330,627.77 | 7,015,796.58 | - As of June 30, 2025, the company has cumulatively invested 953.7063 million yuan of raised funds directly, with an overall utilization rate of 96.82%[67][68] - The completion dates for the "Nanjing Hengdian Microwave Signal Simulation Technology Center and Environmental Testing and Experiment Center Construction Project" and the "Shenglu Hengda Sci-Tech Industrial Park Phase I Project" have been extended to December 31, 2025[70] 7. 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 major assets during the reporting period[76] - The company did not sell major equity during the reporting period[77] 8. Analysis of Major Holding and Participating Companies Financial data for military-related subsidiaries Nanjing Hengdian and Chengdu Chuangxinda, and key operating data for Guangdong Shenglu, are exempt from disclosure due to national security and competitive risks - The businesses of subsidiaries Nanjing Hengdian Electronics Co., Ltd. and Chengdu Chuangxinda Microwave Electronics Co., Ltd. involve military affairs, and their relevant financial data are classified as state secrets, for which an exemption from disclosure has been legally applied[77] - The core financial data of subsidiary Guangdong Shenglu Telecommunication Co., Ltd. are critical business information, and their disclosure may lead to unfair competition risks, for which an exemption from disclosure has also been legally applied[77] 9. 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[78] 10. Risks Faced by the Company and Countermeasures The company addresses risks of technical talent loss and management challenges through enhanced incentives, knowledge transfer, digital tools, and organizational optimization 1. Risk of Technical Talent Loss and Technology Leakage The company mitigates the risk of technical talent loss and intellectual property leakage through improved incentive systems, internal knowledge transfer, and strengthened confidentiality protocols - The potential loss of core technical personnel could directly weaken technological advantages, even leading to delays in R&D progress or intellectual property leakage[78] - The company needs to further improve its incentive system, enhancing talent retention through long-term binding mechanisms such as equity distribution[79] - The company will build an internal knowledge transfer system, such as regularly organizing technical seminars, establishing experience sharing platforms, and strengthening confidentiality protocols[79] 2. Management Risk Rapid business expansion poses management challenges, which the company addresses by implementing digital tools, optimizing organizational structures, and strengthening its management team - Rapid business expansion leads to complex challenges for the company in resource integration, cross-regional operations, organizational synergy, and technology development management[79] - The company introduces digital management tools, draws on advanced international management systems to improve decision-making efficiency, and continuously optimizes organizational operating mechanisms and structural design[79] - The company strengthens its management team by combining internal cultivation with external recruitment to build a leadership echelon with a forward-looking vision[79] 11. Implementation of Market Value Management System and Valuation Enhancement Plan The company did not establish a market value management system or disclose a valuation enhancement plan during the reporting period - The company did not establish a market value management system during the reporting period[80] - The company did not disclose a valuation enhancement plan during the reporting period[81] 12. Implementation of "Quality and Return Dual Improvement" Action Plan The company did not disclose an action plan for "Quality and Return Dual Improvement" during the reporting period - The company did not disclose an action plan announcement for "Quality and Return Dual Improvement" during the reporting period[81] Part IV Corporate Governance, Environment, and Society This section covers changes in governance, profit distribution, incentive plans, environmental disclosures, and the company's social responsibility initiatives 1. Changes in Directors, Supervisors, and Senior Management There were no changes in directors, supervisors, or senior management during the reporting period, though the supervisory board was abolished in July 2025 - There were no changes in the company's directors, supervisors, and senior management during the reporting period[83] - In July 2025, the company ceased to establish a supervisory board and supervisors, with their functions exercised by the company's Board Audit Committee[83] 2. Profit Distribution and Capital Reserve to Share Capital Conversion for the Reporting Period The company plans no cash dividends, bonus shares, or capital reserve conversions for the semi-annual period - The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital for the semi-annual period[84] 3. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The third exercise period for the 2020 stock option and restricted stock incentive plan is ongoing, with no other employee incentive plans implemented - The company's "2020 Stock Option and Restricted Stock Incentive Plan" for the reserved grant of stock options is currently in its third exercise period[85] - Reserved grantees can independently decide whether to exercise their stock options before September 22, 2025, based on their financial situation and other factors[85] - The company had no implementation of employee stock ownership plans or other employee incentive measures during the reporting period[86] 4. Environmental Information Disclosure The company and its major subsidiaries are not listed among enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[86] 5. Social Responsibility The company integrates social responsibility into its development, focusing on safety, environmental protection, shareholder rights, employee welfare, and community engagement - The company is committed to building a responsibility system that promotes coordinated development of "economic benefits, social benefits, and environmental benefits"[86] - The company continuously enhances governance transparency and compliance by improving its corporate governance structure, strengthening internal control systems, and standardizing information disclosure mechanisms, while actively participating in investor protection publicity activities[86] - Adhering to a "people-oriented" philosophy, the company strictly complies with labor laws and regulations, builds a democratic management system, optimizes performance appraisal and compensation incentive mechanisms, and enhances organizational cohesion through corporate culture activities[87] - Guided by green and low-carbon principles, the company utilizes its own 2MWh energy storage device for green power applications, reducing energy consumption and emission costs, and is equipped with dust and exhaust gas treatment, wastewater treatment, and other facilities[88] - As a corporate citizen, the company actively pays taxes, creates employment opportunities in the first half of 2025, and fulfills its corporate social responsibility through public welfare actions such as donating to the Yueyang Education Foundation and participating in Nanjing City's "Charity Day Donation"[88] Part V Significant Matters This section details significant commitments, related party transactions, litigation, and other material events affecting the company 1. Commitments Fulfilled and Overdue Unfulfilled by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period Performance commitments from the asset restructuring by Luo Jianping and Guo Yiqin remain partially unfulfilled, with 66.74 million yuan due by November 12, 2025 - Luo Jianping and Guo Yiqin's performance compensation for Hezheng Electronics remains partially unpaid[90] - As of now, the company has cumulatively recovered 138.26 million yuan in performance compensation, with 341.74 million yuan still unrecovered (of which 1.737 million yuan is the remaining performance compensation)[92] - According to the enforcement settlement agreement, Luo Jianping and Guo Yiqin still need to repay a total of 66.74 million yuan, which they committed to repay by November 12, 2025[92][98] - The commitments made by controlling shareholder Yang Hua and shareholders Li Zairong and He Yongxing regarding horizontal competition, related party transactions, and fund occupation are being fulfilled normally[91] 2. Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company The company reports no non-operating funds occupied by controlling shareholders or other related parties during the reporting period - The company had no non-operating funds occupied by controlling shareholders or other related parties during the reporting period[93] 3. 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[94] 4. 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[95] 5. Board of Directors' and Supervisory Board's Explanation of "Non-Standard Audit Report" for the Current Period The company did not receive a non-standard audit report for the current reporting period - The company had no non-standard audit report during the reporting period[96] 6. Board of Directors' Explanation of "Non-Standard Audit Report" for the Previous Year The company did not provide an explanation regarding a non-standard audit report for the previous year - The company had no explanation regarding a non-standard audit report for the previous year during the reporting period[96] 7. Bankruptcy and Reorganization Matters The company had no bankruptcy or reorganization matters during the reporting period - The company had no bankruptcy or reorganization matters during the reporting period[97] 8. Litigation Matters A major lawsuit involving 397 million yuan against Luo Jianping and Guo Yiqin for debt repayment is ongoing, with an uncertain outcome despite a settlement agreement - The company filed a lawsuit against Luo Jianping and Guo Yiqin for failing to repay debts as agreed, involving an amount of 397 million yuan[98] - The court has approved an enforcement settlement, but the outcome of its fulfillment remains uncertain, and the impact on the company's post-period profit needs further confirmation based on subsequent progress[98] - The defendants committed to repaying the remaining 66.74 million yuan debt by November 12, 2025[98] - The company had no other litigation matters during the reporting period[99] 9. 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[100] 10. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company, its controlling shareholder, and actual controller maintained good integrity during the reporting period - The company had no integrity issues concerning itself, its controlling shareholder, or its actual controller during the reporting period[101] 11. Significant Related Party Transactions The company reported no significant related party transactions, including those related to daily operations, asset/equity transfers, joint investments, or debt - The company had no related party transactions related to daily operations during the reporting period[101] - The company had no related party transactions involving asset or equity acquisition or disposal during the reporting period[102] - The company had no related party creditor-debtor relationships during the reporting period[104] - The company had no other significant related party transactions during the reporting period[107] 12. Significant Contracts and Their Performance The company has no entrusted management or contracting situations but has leasing activities and significant guarantees for subsidiaries, with 319 million yuan in outstanding guarantees - The company had no entrusted management or contracting situations during the reporting period[108][109] - The company has leasing matters, detailed in the financial report[110] 2025 Semi-Annual Significant Guarantees | Indicator | Amount (million yuan) | | :--- | :--- | | Total approved guarantee limit for subsidiaries during the reporting period (B1) | 1,000 | | Total actual guarantee amount for subsidiaries during the reporting period (B2) | 162.20 | | Total approved guarantee limit for subsidiaries at the end of the reporting period (B3) | 1,300 | | Total actual guarantee balance for subsidiaries at the end of the reporting period (B4) | 319.00 | | Proportion of total actual guarantees (i.e., A4+B4+C4) to the company's net assets | 12.67% | 2025 Semi-Annual Entrusted Wealth Management | Specific Type | Source of Funds | Entrusted Wealth Management Amount (million yuan) | Unexpired Balance (million yuan) | Overdue Unrecovered Amount (million yuan) | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 445.70 | 311.43 | 0 | - The company had no other significant contracts during the reporting period[116] 13. Explanation of Other Significant Matters The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[118] 14. Significant Matters of Company Subsidiaries The company's subsidiaries had no significant matters during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[119] Part VI Share Changes and Shareholder Information This section details changes in share capital, securities issuance, shareholder structure, and holdings of directors, supervisors, and senior management 1. Share Capital Changes The company's total share capital remained 915.32 million shares, with a share repurchase program initiated in January 2025, and 1 million shares repurchased by June 25 2025 Semi-Annual Share Capital Changes | Item | Quantity Before This Change (shares) | Proportion Before This Change (%) | Net Increase/Decrease for This Change (shares) | Quantity After This Change (shares) | Proportion After This Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 67,638,428 | 7.39% | 0 | 67,638,428 | 7.39% | | II. Unrestricted Shares | 847,683,296 | 92.61% | 0 | 847,683,296 | 92.61% | | III. Total Shares | 915,321,724 | 100.00% | 0 | 915,321,724 | 100.00% | - The company approved a share repurchase plan on January 3, 2025, with a planned repurchase amount of no less than 142.90 million yuan and no more than 285.80 million yuan[123] - On June 25, 2025, the company initiated its first share repurchase, buying back 1 million shares, accounting for 0.11% of the total share capital, with a total transaction amount of 7.2603 million yuan[124] 2. 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[126] 3. Number of Shareholders and Shareholding Status As of the end of the reporting period, the company had 78,569 common shareholders, with Yang Hua as the largest shareholder holding 9.78% - The total number of common shareholders at the end of the reporting period was 78,569[127] 2025 Semi-Annual Top 10 Shareholders' Shareholding Status | Shareholder Name | Shareholder Nature | Shareholding Ratio (%) | Number of Shares Held at End of Reporting Period (shares) | Change During Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yang Hua | Domestic Natural Person | 9.78% | 89,484,571 | 0 | 67,113,428 | 22,371,143 | Not Applicable | 0 | | He Yongxing | Domestic Natural Person | 2.54% | 23,276,690 | -6,063,200 | 0 | 23,276,690 | Pledged | 10,000,000 | | China Construction Bank Co., Ltd. - Qianhai Open Source Public Utility Industry Stock Investment Fund | Other | 1.70% | 15,563,523 | -649,500 | 0 | 15,563,523 | Not Applicable | 0 | | Chen Jianyou | Domestic Natural Person | 1.47% | 13,500,000 | 13,500,000 | 0 | 13,500,000 | Not Applicable | 0 | | Industrial and Commercial Bank of China Co., Ltd. - Qianhai Open Source New Economy Flexible Allocation Mixed Securities Investment Fund | Other | 1.28% | 11,702,300 | 0 | 0 | 11,702,300 | Not Applicable | 0 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 1.19% | 10,932,847 | 1,912,167 | 0 | 10,932,847 | Not Applicable | 0 | | Industrial and Commercial Bank of China - GF Jufeng Mixed Securities Investment Fund | Other | 0.94% | 8,566,800 | -832,000 | 0 | 8,566,800 | Not Applicable | 0 | | Sun Xiaohang | Domestic Natural Person | 0.80% | 7,358,975 | 5,182,700 | 0 | 7,358,975 | Not Applicable | 0 | | Xu Lirong | Domestic Natural Person | 0.76% | 7,000,000 | 7,000,000 | 0 | 7,000,000 | Not Applicable | 0 | | Li Zairong | Domestic Natural Person | 0.53% | 4,895,567 | -450,000 | 0 | 4,895,567 | Not Applicable | 0 | 4. Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period, details can be found in the 2024 annual report[130] 5. 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[131] - The company's actual controller remained unchanged during the reporting period[132] 6. Preferred Share Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[133] 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[135] Part VIII Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, and cash flow statements, along with detailed notes 1. Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[137] 2. Financial Statements This section provides the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2025 2025 June 30 Consolidated Balance Sheet Summary | Item | End of Period Balance (yuan) | Beginning of Period Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 3,777,647,342.93 | 3,578,502,513.89 | | Total Liabilities | 1,258,107,203.65 | 1,108,282,817.40 | | Total Owners' Equity | 2,519,540,139.28 | 2,470,219,696.49 | | Monetary Funds | 545,400,243.88 | 790,343,676.94 | | Trading Financial Assets | 318,449,541.58 | 4,486,551.60 | | Accounts Receivable | 922,576,238.64 | 775,993,531.22 | | Inventory | 634,755,765.31 | 658,809,032.69 | | Construction in Progress | 413,265,561.77 | 328,166,765.28 | | Short-Term Borrowings | 234,448,465.15 | 119,539,344.09 | | Long-Term Borrowings | 166,842,034.95 | 156,798,500.00 | 2025 Semi-Annual Consolidated Income Statement Summary | Item | 2025 Semi-Annual (yuan) | 2024 Semi-Annual (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 614,081,198.40 | 562,862,400.59 | | Operating Profit | 59,402,716.86 | 51,070,719.96 | | Total Profit | 59,362,777.02 | 51,087,519.60 | | Net Profit | 56,885,777.89 | 49,362,915.88 | | Net Profit Attributable to Owners of the Parent Company | 57,546,178.18 | 49,600,099.28 | | Basic Earnings Per Share (yuan/share) | 0.06 | 0.05 | | Diluted Earnings Per Share (yuan/share) | 0.06 | 0.05 | 2025 Semi-Annual Consolidated Cash Flow Statement Summary | Item | 2025 Semi-Annual (yuan) | 2024 Semi-Annual (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 51,457,732.52 | 133,693,210.82 | | Net Cash Flow from Investing Activities | -416,279,676.19 | -246,564,993.94 | | Net Cash Flow from Financing Activities | 138,506,286.89 | -6,787,197.23 | | Net Increase in Cash and Cash Equivalents | -224,100,231.21 | -119,727,028.88 | | Cash and Cash Equivalents at End of Period | 506,381,306.39 | 697,074,132.64 | 3. Company Overview Established in 1998 and listed in 2010, Guangdong Shenglu Telecommunication operates in civil communication and microwave electronics, with Yang Hua as its actual controller - Guangdong Shenglu Telecommunication Technology Co., Ltd., formerly Sanshui Shenglu Antenna Co., Ltd., was established on December 23, 1998[171] - The company was listed and traded on the Shenzhen Stock Exchange on July 13, 2010, with stock abbreviation "Shenglu Telecommunication" and stock code "002446"[178] - As of June 30, 2025, the company's cumulative issued share capital totaled 915,321,724.00 shares, with a registered capital of 915,321,724.00 yuan[188] - The company primarily operates in two main businesses: civil communication and microwave electronics, maintaining competitive advantages in key technologies such as ultra-wideband up/down conversion systems, millimeter-wave radar, and low-orbit satellite internet systems[188] - The company's relative actual controller is Yang Hua, and its industry is communication equipment manufacturing[188][190] 4. Basis of Financial Statement Preparation The financial statements are prepared on a going concern basis, adhering to Chinese Accounting Standards and historical cost principles, with no significant uncertainties regarding future operations - The company's financial statements are prepared on a going concern basis, in accordance with the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance and the "Compilation Rules for Information Disclosure by Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports" (Revised in 2023) issued by the China Securities Regulatory Commission[191] - The company's accounting is based on the accrual method, and except for certain financial instruments, all are measured at historical cost[191] - Management believes that there are no significant uncertainties regarding the company's ability to continue as a going concern for at least 12 months from the end of the reporting period[192] 5. Significant Accounting Policies and Estimates This section outlines the company's key accounting policies and estimates, covering areas from revenue recognition and financial instruments to asset impairment and government grants - The financial statements prepared by the company comply with the requirements of Accounting Standards for Business Enterprises, truly and completely reflecting the consolidated and parent company's financial position, operating results, changes in shareholders' equity, and cash flows for the reporting period[193] - The company defines a business cycle as 12 months and uses it as the standard for classifying assets and liabilities as current or non-current[195] - 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 contractual cash flow characteristics of the financial assets[214] - For accounts receivable arising from transactions regulated by revenue standards and lease receivables arising from transactions regulated by lease standards, the company measures loss provisions at an amount equal to the expected credit losses over the entire lifetime[219] - The company recognizes revenue when it has satisfied its performance obligations in the contract, i.e., when the customer obtains control of the relevant goods or services[284] 6. Taxation The company's tax policies include various VAT rates, surcharges, and a preferential 15% corporate income tax rate for high-tech enterprises, along with R&D expense deductions Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Based on sales of goods and taxable services calculated according to tax laws, after deducting input VAT allowed for the current period, the difference is the VAT payable | 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Calculated based on actual VAT and consumption tax paid | 7% | | Education Surcharge | Calculated based on actual VAT and consumption tax paid | 3% | | Local Education Surcharge | Calculated based on actual VAT and consumption tax paid | 2% | Corporate Income Tax Rates for Taxable Entities | Taxable Entity Name | Income Tax Rate | | :--- | :--- | | The Company | 15% | | Nanjing Hengdian Electronics Co., Ltd. | 15% | | Foshan Shenfu Communication Equipment Co., Ltd. | 15% | | Chengdu Chuangxinda Microwave Electronics Co., Ltd. | 15% | | Shenzhen Langsai Microwave Communication Co., Ltd. | 15%, 20% | | Shenzhen Shengyuan Xinchuang Investment Co., Ltd. | 25% | | Guangdong Shenglu Telecommunication Co., Ltd. | 15% | | Dongguan Yilu Electronics Co., Ltd. | 25% | | Chengdu Shenglu Electronic Technology Co., Ltd. | 25% | | Nanjing Shenghengda Intelligent Technology Co., Ltd. | 25% | | Guangdong Shenglu Intelligent Technology Co., Ltd. | 25% | | Guangdong Xingci Testing Technology Research Co., Ltd. | 15% | - The company and several subsidiaries are recognized as high-tech enterprises and are subject to a reduced corporate income tax rate of 15%[307][308][310][311] - Shenzhen Langsai Microwave Communication Co., Ltd. also qualifies as a small and micro-profit enterprise and opts for the preferential tax rate of 20%[310] - The company and some subsidiaries enjoy preferential policies, including a 5% additional deduction for VAT input tax for advanced manufacturing enterprises and a 100% pre-tax additional deduction for R&D expenses[311][312] 7. Notes to Consolidated Financial Statements This section detailed notes on consolidated financial statement items, including cash, financial assets, receivables, inventory, and construction in progress 2025 June 30 Consolidated Financial Statement Key Item Notes Summary | Item | End of Period Balance (yuan) | Beginning of Period Balance (yuan) | | :--- | :--- | :--- | | Monetary Funds | 545,400,243.88 | 790,343,676.94 | | Trading Financial Assets | 318,449,541.58 | 4,486,551.60 | | Accounts Receivable (Book Value) | 922,576,238.64 | 775,993,531.22 | | Inventory (Book Value) | 634,755,765.31 | 658,809,032.69 | | Construction in Progress (Book Value) | 413,265,561.77 | 328,166,765.28 | | Intangible Assets (Book Value) | 158,291,070.98 | 56,847,556.88 | | Goodwill (Original Book Value) | 1,158,861,119.12 | 1,158,861,119.12 | | Short-Term Borrowings | 234,448,465.15 | 119,539,344.09 | | Long-Term Borrowings | 166,842,034.95 | 156,798,500.00 | | Operating Revenue | 614,081,198.40 | 562,862,400.59 | | Operating Cost | 428,112,590.73 | 371,003,123.08 | | Net Profit | 56,885,777.89 | 49,362,915.88 | | Net Cash Flow from Operating Activities | 51,457,732.52 | 133,693,210.82 | - Of the monetary funds at period-end, 39,018,937.49 yuan are restricted funds for acceptance bill deposits and performance bonds[316] - The original book value of goodwill is 1,158,861,119.12 yuan, with a full impairment provision already made[394][396] - The Shenghengda Sci-Tech Industrial Park project has a cumulative investment of 68.55% of its budget, with 3,041,017.04 yuan in capitalized interest for the current period[385] 8. Research and Development Expenses Total R&D investment in H1 2025 was 53.84 million yuan, a 7.17% decrease, with 51.35 million yuan expensed and 2.49 million yuan capitalized 2025 Semi-Annual R&D Expenses | Item | Amount for Current Period (yuan) | Amount for Prior Period (yuan) | | :--- | :--- | :--- | | Personnel Costs | 38,500,759.20 | 37,768,856.80 | | Direct Input | 4,842,605.50 | 8,969,862.64 | | Depreciation Expense | 7,276,275.00 | 6,697,045.51 | | Expensed R&D Expenditure | 51,346,796.19 | 57,013,269.49 | | Capitalized R&D Expenditure | 2,494,932.97 | 986,544.27 | | Total | 53,841,729.16 | 57,999,813.76 | 2025 Semi-Annual R&D Projects Meeting Capitalization Conditions | Project | End of Period Balance (yuan) | Amount Increased in Current Period (Internal Development Expenditure) (yuan) | | :--- | :--- | :--- | | Green and Efficient Base Station Electrically Tuned Antenna | 2,096,787.89 | 1,078,192.01 | | Broadband Integrated Vehicle Antenna | 492,762.26 | 201,421.76 | | Multi-Functional IoT Terminal Antenna | 1,683,249.18 | 659,122.41 | | Multi-Frequency Dual-Polarized Microwave Antenna | 1,253,727.70 | 556,196.79 | | Total | 5,526,527.03 | 2,494,932.97 | 9. Changes in Consolidation Scope The company reported no changes in its consolidation scope due to business combinations, reverse acquisitions, or loss of control over subsidiaries during the period - The company had no business combinations involving entities not under common control during the current period[514] - The company had no business combinations involving entities under common control during the current period[516] - The company had no reverse acquisition matters during the current period[517] - The company had no transactions or events resulting in the loss of control over subsidiaries during the current period[518] - The company had no changes in the scope of consolidation due to other reasons during the current period[518] 10. Interests in Other Entities The company's group includes several wholly-owned subsidiaries and one 54.55% owned subsidiary, with investments in associates totaling 2.04 million yuan 2025 June 30 Summary of Enterprise Group Composition | Subsidiary Name | Registered Capital (yuan) | Business Nature | Direct Shareholding Ratio (%) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | | Foshan Shenfu Communication Equipment Co., Ltd. | 45,000,000.00 | Manufacturing | 100.00% | Establishment | | Shenzhen Langsai Microwave Communication Co., Ltd. | 28,000,000.00 | Military Industry | 100.00% | Business Combination Not Under Common Control | | Nanjing Hengdian Electronics Co., Ltd. | 50,000,000.00 | Military Industry | 100.00% | Business Combination Not Under Common Control | | Nanjing Shenghengda Intelligent Technology Co., Ltd. | 220,000,000.00 | Military Industry | 54.55% | Establishment | 2025 June 30 Summary of Financial Information for Insignificant Joint Ventures and Associates | Item | End of Period Balance/Amount for Current Period (yuan) | | :--- | :--- | | Total Book Value of Investments in Associates | 2,038,454.25 | | Net Profit of Ass