爱科科技(688092) - 2025 Q2 - 季度财报

Part I Definitions Definitions of Common Terms This chapter provides definitions of common terms used in the report, covering company names, financial units, related parties, and intelligent cutting industry technical terms, ensuring accurate understanding of the report content - Defines basic terms such as the Company, IECHO Technology, and units of Yuan, million Yuan, and billion Yuan[11] - Explains related party names including IECHO Computer, Huaruan Venture, Ruibu Investment, Qilin Investment, Ruisong Investment, and Beijing Huaruan[11] - Elaborates on core technology and product terms such as industrial software, CNC technology, intelligent cutting equipment, industrial robots, artificial intelligence, machine vision, and CAD/CAM[11][12] Part II Company Profile and Key Financial Indicators I. Company Basic Information This section outlines the company's basic registration information, including legal name, abbreviation, legal representative, registered address, and contact details, providing an overview for investors - The company's Chinese name is Hangzhou IECHO Technology Co., Ltd., abbreviated as IECHO Technology[14] - The company's legal representative is Fang Yunke, and its registered address is Building 1, No. 1 Weiye Road, Binjiang District, Hangzhou[14] II. Contact Person and Contact Information This section provides detailed contact information for the company's Board Secretary and Securities Affairs Representative, facilitating information inquiries and communication for investors - The Board Secretary is Shi Xin, and the Securities Affairs Representative is Lin Jingjing[16] - Contact number is 0571-86609578, and email is office@iechosoft.com[16] III. Information Disclosure and Document Storage Location Changes This section explains the company's information disclosure channels and document storage location for its semi-annual report, ensuring investors can access public information promptly - The company's selected information disclosure newspapers are Shanghai Securities News, Securities Times, and Securities Daily[17] - The website for the semi-annual report is www.sse.com.cn, and the report storage location is the company's Securities Department[17] IV. Company Shares/Depositary Receipts Overview This section introduces the company's stock listing status, including share type, exchange, board, stock abbreviation, and code, confirming no depositary receipts (I) Company Shares Overview The company's shares are RMB ordinary shares (A-shares), listed on the STAR Market of the Shanghai Stock Exchange, with stock abbreviation IECHO Technology and code 688092 - The company's share type is RMB ordinary shares (A-shares), listed on the STAR Market of the Shanghai Stock Exchange[18] - Stock abbreviation is IECHO Technology, stock code is 688092[18] (II) Company Depositary Receipts Overview The company has no depositary receipts - The company has no depositary receipts[19] VI. Company's Key Accounting Data and Financial Indicators This section presents the company's key accounting data and financial indicators for the first half of 2025, showing a significant year-on-year decrease in net profit but a substantial increase in net cash flow from operating activities, primarily due to increased R&D investment and the acquisition of ARISTO Germany (I) Key Accounting Data Current period operating revenue slightly decreased, but net profit and total profit significantly declined, while net cash flow from operating activities substantially increased, and total assets and net assets steadily grew Key Accounting Data (H1 2025 vs H1 2024) | Indicator | Current Period (Jan-Jun) (Yuan) | Prior Year Period (Yuan) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 213,895,978.91 | 214,088,545.64 | -0.09 | | Total Profit | 28,692,800.23 | 46,124,884.74 | -37.79 | | Net Profit Attributable to Shareholders of Listed Company | 26,110,575.17 | 42,094,735.99 | -37.97 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses | 25,249,084.85 | 41,260,642.31 | -38.81 | | Net Cash Flow from Operating Activities | 37,901,953.36 | 15,892,391.92 | 138.49 | | Indicator | End of Current Period (Yuan) | End of Prior Year (Yuan) | Period-end Change (%) | | Net Assets Attributable to Shareholders of Listed Company | 645,540,362.04 | 629,671,975.65 | 2.52 | | Total Assets | 811,746,904.05 | 758,345,576.72 | 7.04 | (II) Key Financial Indicators Basic earnings per share and return on net assets both significantly decreased in the current period, but the proportion of R&D investment to operating revenue increased, reflecting the company's continued R&D investment despite profit pressure Key Financial Indicators (H1 2025 vs H1 2024) | Indicator | Current Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.32 | 0.51 | -37.25 | | Diluted Earnings Per Share (Yuan/share) | 0.32 | 0.51 | -37.25 | | Basic Earnings Per Share After Deducting Non-recurring Gains and Losses (Yuan/share) | 0.31 | 0.50 | -38.00 | | Weighted Average Return on Net Assets (%) | 4.06 | 6.97 | Decrease of 2.91 percentage points | | Weighted Average Return on Net Assets After Deducting Non-recurring Gains and Losses (%) | 3.93 | 6.84 | Decrease of 2.91 percentage points | | Proportion of R&D Investment to Operating Revenue (%) | 8.20 | 6.52 | Increase of 1.68 percentage points | - Basic earnings per share and basic earnings per share after deducting non-recurring gains and losses both decreased by over 37% year-on-year, primarily due to the decrease in net profit in the current period[23] - Net profit attributable to shareholders of the listed company decreased by 37.97% year-on-year, mainly due to a slowdown in operating revenue growth, increased R&D investment, and an increase in management personnel following the acquisition of ARISTO Germany[22] - Net cash flow from operating activities increased by 138.49% year-on-year, primarily due to increased cash received from sales of goods and provision of services[23] VII. Differences in Accounting Data under Domestic and Overseas Accounting Standards This section states that there are no differences in accounting data under domestic and overseas accounting standards for the company - The company has no differences in accounting data under domestic and overseas accounting standards[24] VIII. Non-recurring Gains and Losses Items and Amounts This section details the non-recurring gains and losses items and their amounts for the reporting period, explaining why some items related to normal operating activities were not classified as non-recurring Non-recurring Gains and Losses Items | Non-recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Disposal gains and losses of non-current assets | -8,208.85 | | Government grants recognized in profit or loss for the current period | 300,194.56 | | Gains and losses from entrusted investment or asset management | 704,966.70 | | Reversal of impairment provision for accounts receivable subject to separate impairment testing | 19,099.87 | | Other non-operating income and expenses apart from the above | -2,534.26 | | Less: Income tax impact | 152,027.70 | | Total | 861,490.32 | Items Not Listed but Defined as Recurring Gains and Losses | Item | Amount Involved (Yuan) | Reason | | :--- | :--- | :--- | | VAT immediate refund | 2,929,349.52 | Directly related to the company's normal operating activities and recurring | | Handling fee refunds for three types of taxes | 70,640.10 | Directly related to the company's normal operating activities and recurring | | Additional input tax deductions | 471,349.86 | Directly related to the company's normal operating activities and recurring | IX. Companies with Equity Incentive or Employee Stock Ownership Plans May Choose to Disclose Net Profit After Deducting Share-based Payment Impact This section discloses the net profit after deducting the impact of share-based payments, showing a year-on-year decrease of 35.59% Net Profit After Deducting Share-based Payment Impact | Indicator | Current Period (Jan-Jun) (Yuan) | Prior Year Period (Yuan) | Current Period vs Prior Year Period Change (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Share-based Payment Impact | 27,114,771.63 | 42,094,735.99 | -35.59 | X. Explanation of Non-GAAP Performance Indicators This section states that the company has no non-GAAP performance indicators requiring explanation - The company has no non-GAAP performance indicators requiring explanation[30] Part III Management Discussion and Analysis I. Overview of the Company's Industry and Main Business During the Reporting Period This section elaborates on the company's main business, products, operating model, and the development stage, technical characteristics, and future trends of the intelligent cutting industry, highlighting the company's efforts in technological innovation and market expansion (I) Main Business, Products or Services The company's main business is providing intelligent cutting equipment and integrated solutions, with products widely used in composite materials, automotive interiors, advertising printing, and other industries, continuously focusing on technical research and innovation in non-metallic material precision intelligent cutting processes - The company's main business is providing intelligent cutting equipment to customers, offering integrated intelligent cutting solutions based on independently developed intelligent cutting CNC industrial software systems and precision motion control systems[32] - Main products are intelligent cutting equipment, falling within the scope of intelligent cutting industrial robots, serving numerous industries such as composite materials, automotive interiors, advertising printing, and textile and apparel[33] - The company's technological research involves multiple disciplines including industrial software, algorithm optimization, precision motion control, cutting manufacturing, machine vision, IoT, and artificial intelligence, and is increasing promotion in emerging industries such as new energy, aerospace, and low-altitude economy[35] (II) Main Operating Model The company adopts a "hardware + software + motion control + service" profit model, primarily procuring general raw materials, implementing "production based on sales," with domestic sales combining direct sales and distribution, and overseas sales mainly through distribution, with pricing considering multiple factors - The profit model is "hardware + software + motion control + service," with main business revenue derived from the sale of intelligent cutting equipment[37] - The procurement model involves three parts: planning, pricing, and procurement; raw materials are mostly general models, with some special components designed in-house and outsourced for processing[38] - The production model is "production based on sales," with key steps including custom solution configuration, algorithm burning, software development, and component and complete machine assembly[39] - The sales model is primarily direct sales domestically with an increasing proportion of distributors, and mainly distribution overseas; pricing considers factors such as cost, technical requirements, innovation level, and market competition[40] (III) Industry Overview The intelligent cutting industry is a sub-segment of intelligent equipment encouraged by national policies; China started late but is gradually narrowing the technological gap with developed countries. The industry has high entry barriers, and future trends include integrating IoT, AI, and big data, moving towards integrated, customized, and intelligent production lines - The intelligent cutting industry, where the company operates, is a sub-segment of intelligent equipment, supported by national "14th Five-Year Plan" policies, with broad market prospects[41][42] - China's non-metallic material intelligent cutting industry started late and is in its initial stage, but companies like IECHO Technology are gradually narrowing the gap with foreign counterparts through independent R&D of core technologies[43] - The industry has high technical barriers, mainly reflected in multi-disciplinary talent reserves, deep integration of industry and professional knowledge, design of personalized and customized solutions, and differences in technical service levels[44][45] - Future development trends include integrating IoT, artificial intelligence, and big data, expanding new material applications (such as new energy, low-altitude economy), meeting personalized customization needs, and developing towards integrated solutions and smart factory construction[48][49] II. Discussion and Analysis of Operations During the reporting period, the company actively responded to global economic challenges by continuously increasing R&D investment, deepening its global strategic layout, expanding into emerging application scenarios, and enhancing organizational efficiency, achieving steady growth in downstream users and transforming into an industry solution provider - The company firmly implemented an innovation-driven development strategy, with R&D investment of 17.53 million Yuan in the reporting period, accounting for 8.20% of operating revenue, a year-on-year increase of 25.64%[50] - The company deepened its global strategic layout, building a global business network with Germany and Southeast Asia as strategic strongholds, and launched a hybrid marketing system of "online digital platform + offline localized services" and a "2-hour rapid response" service commitment[51] - The company actively seized opportunities in strategic emerging fields such as low-altitude economy and humanoid robots, developing specialized composite material cutting solutions for high-end applications like drone structural parts and robot casings[52] - The company continued to deepen its talent development strategy, cultivating composite talents through "IECHO Cloud Classroom" and "Multi-dimensional Growth Program," and optimizing its governance system to enhance organizational efficiency[54] III. Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness lies in strong core technological advantages, a first-mover advantage from its CAD software origins, extensive downstream application coverage, rich product types, international operational capabilities, independently developed digital platforms, and a stable professional talent team with excellent brand service (I) Analysis of Core Competitiveness The company possesses unique advantages in precision motion control and cutting process algorithm libraries, backed by 73 invention patents and 147 software copyrights; it has a first-mover advantage from its CAD software origins; its products are widely used in composite materials, advertising printing, and other industries, with a rich product line; it achieves international operations through acquisitions like ARISTO Germany; it independently developed the "Digital IECHO" platform to improve service efficiency; it has a stable core technical team and a comprehensive talent development system; and it has established a strong brand image and a "2-hour rapid response" service advantage - The company holds 73 authorized invention patents and 147 software copyrights, mastering core technologies such as equipment hardware design, core motion control software, and cutting process algorithm libraries[55] - Starting with CAD software, the company leveraged early technological accumulation and strategic layout to become one of the first enterprises in China to enter the intelligent cutting field, with product technical parameters comparable to international levels, some even leading[57][58] - The company's products are widely used in various industries including composite materials, advertising printing, automotive interiors, and home textiles, capable of efficiently cutting diverse materials such as carbon fiber, glass fiber, and PVC[59] - The company offers a rich product line, covering single-layer and multi-layer intelligent cutting equipment series, and actively researches and develops new high-speed automatic cutting systems, such as flexible blade die-cutting machines and laser die-cutting machines[60] - The company's products are sold in over 100 countries and regions worldwide, deepening international operations through acquisitions like ARISTO Germany to expand brand influence and market recognition[61] - Independently developed the "Digital IECHO" platform, achieving digital business management and product lifecycle, with AI-powered intelligent assistant "IECHO-Support" providing global, time-zone-independent, efficient, and precise services[63] - The company's core technical team is stable, led by Chairman Mr. Fang Xiaowei, who focuses on underlying core technologies, and ensures sustainable human resource development through attracting high-end talents and equity incentives[64] - The company's intelligent cutting equipment has gained recognition from numerous domestic and international customers, establishing a strong brand image and leading market position, and implements "BY YOUR SIDE" and "2-hour rapid response" strategies to provide high-quality after-sales service[65] (III) Core Technologies and R&D Progress The company continuously innovates in core technologies such as precision motion control, CAD/CAM, cutting manufacturing, intelligent cutting industrial robots, AI algorithms, and enterprise digital platforms, with R&D investment increasing by 25.64% year-on-year in the reporting period, achieving multiple patents and software copyrights, and steadily advancing several ongoing R&D projects - In precision motion control technology, the company integrates new processes such as laser cutting, intelligent tracking algorithms, and five-axis ultrasonic cutting to expand application space and enhance equipment sensing and response speed[68] - In CAD/CAM technology, the company optimizes its material expert database, updates material adaptability algorithms, and uses numerical differentiation technology to achieve precise control of machine head tools, improving processing accuracy and efficiency[69] - In cutting manufacturing technology, the company develops flexible blade die-cutting integrated equipment with dual magnetic rollers, five-axis CNC ultrasonic knife cutting technology, laser knife cutting automatic production line systems, and has established efficient multi-functional loading/unloading systems and multi-process automatic tool change technology[70] - The company successfully developed intelligent cutting industrial robots integrating robot technology, cutting processes, and intelligent control systems, achieving unmanned operation, applied in digital printing, textile industry, and composite materials industry[71][72] - The company is committed to applying AI technology in the non-metallic material intelligent cutting industry, including establishing a non-metallic material expert database, developing cutting image machine vision and automated cutting robots, and has launched a multi-line array camera application mode[73] - The "Digital IECHO" platform interfaces with mainstream large data models, with AI-powered intelligent assistant "IECHO-Support" initiating the deep integration of AI technology with the company's digital platform[74] R&D Investment (H1 2025 vs H1 2024) | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 17,529,198.02 | 13,951,409.47 | 25.64 | | Total R&D Investment | 17,529,198.02 | 13,951,409.47 | 25.64 | | Proportion of Total R&D Investment to Operating Revenue (%) | 8.20 | 6.52 | 1.68 | R&D Projects (H1 2025) | No. | Project Name | Estimated Total Investment (million Yuan) | Current Period Investment (million Yuan) | Cumulative Investment (million Yuan) | Progress or Phased Achievements | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Research and Implementation of IECHO Digital Platform | 16.00 | 0.83 | 11.11 | Application development stage, entering sub-system design stage | | 2 | Research and Implementation of Cutting and Other Processing Solutions for High-end New Materials | 23.00 | 1.25 | 18.38 | Application development stage, entering sub-system design stage | | 3 | Research and Implementation of Motion Control System Based on High-speed High-performance Bus and Vision Technology | 20.00 | 4.39 | 16.16 | Application development stage, entering sub-system design stage | | 4 | Research and Implementation of New High-speed Automatic Cutting System | 20.00 | 4.16 | 5.72 | Technical discussion and application development stage, entering sub-system application stage | | 5 | Research and Implementation of Automatic Production Line Based on Intelligent Cutting Technology | 20.00 | 6.89 | 11.09 | Application development stage, entering sub-system design stage | | Total | 99.00 | 17.53 | 62.45 | / | R&D Personnel (H1 2025 vs H1 2024) | Indicator | Current Period | Prior Year Period | | :--- | :--- | :--- | | Number of Company R&D Personnel (persons) | 108 | 101 | | Proportion of R&D Personnel to Total Company Personnel (%) | 21.73 | 21.95 | | Total R&D Personnel Compensation (million Yuan) | 13.69 | 10.27 | | Average R&D Personnel Compensation (million Yuan) | 0.13 | 0.11 | IV. Risk Factors This section thoroughly analyzes various risks faced by the company, including core competitiveness, operational, financial, industry, and macroeconomic environment risks, advising investors to pay attention to potential adverse impacts (I) Core Competitiveness Risks The company faces risks of intellectual property infringement, technology leakage, R&D failure, and declining gross profit margins, all of which could weaken its technological advantages and profitability - Risks of intellectual property infringement and technology leakage, which could adversely affect operating performance due to core product counterfeiting or loss of core technical personnel[84] - Risk of R&D failure, where new technologies or products fail to be commercialized or industrialized, weakening technological advantages and affecting the continuity and stability of operating revenue[84] - Risk of declining gross profit margin, which may occur if industry competition intensifies, raw material prices rise, or the company fails to continuously innovate technologically[85] (II) Operational Risks The company's operations face risks from rising raw material prices, inventory write-downs, reliance on imported raw materials, and bad debt losses from accounts receivable, which could increase operating costs and financial pressure - Risk of rising raw material prices, as raw material costs account for a high proportion of operating costs, price fluctuations will impact the company's operating costs[86] - Risk of inventory write-downs, where significant market changes could lead to inventory write-downs due to product obsolescence[86] - Risk of reliance on imported raw materials, as procurement of chips like DSP and FPGA depends on imports, and a halt in exports from foreign suppliers would adversely affect production and operations[86] - Risk of bad debt losses from accounts receivable, where changes in market environment, industry competition, or customer operating conditions could lead to increased accounts receivable and bad debt losses[86] (III) Financial Risks The company's financial risks primarily include changes in tax preferential policies and exchange rate fluctuations, which could affect its profitability and competitiveness in overseas markets - Risk of changes in tax preferential policies, where failure to renew high-tech enterprise certificates upon expiration or adverse changes in tax policies would negatively impact the company's profitability[87] - Risk of exchange rate fluctuations, as overseas sales revenue accounts for a relatively high proportion, exchange rate fluctuations will directly affect the sales price of the company's export products and its competitiveness in overseas markets[87] (IV) Industry Risks The company faces market development and collection risks due to dispersed customers, and the risk of declining product prices, gross profit margins, and profitability due to intensified competition in the intelligent cutting industry - Market development risk and downstream customer collection risk due to dispersed customers, as customer dispersion and low repurchase rates increase the difficulty of customer management and accounts receivable management for the company[89] - Risk of intensified market competition, as the rapid development of the intelligent cutting industry attracts more enterprises, which may adversely affect the company's product prices, gross profit margins, and profits[89] (V) Macroeconomic Environment Risks The company has a high proportion of overseas sales revenue, and international trade is affected by geopolitical factors, which may lead to trade controls or tax risks, thereby reducing the scale of overseas business - International trade is affected by geopolitical factors, and unpredictable geopolitical risks between overseas markets and China may lead to trade controls or tax risks, adversely affecting the company's overseas sales[90] V. Major Operating Conditions During the Reporting Period This section details the company's financial performance during the reporting period, including operating revenue, net profit, total assets, and net assets, and provides an in-depth analysis of changes in major financial statement items, asset-liability structure, and investment situation, while also listing financial data for major holding and participating companies (I) Main Business Analysis Current period operating revenue slightly decreased, but total profit and net profit significantly declined, mainly due to increased management and R&D expenses. Net cash flow from operating activities significantly increased, while net cash flow from investing activities substantially decreased, and net cash flow from financing activities turned positive Financial Statement Item Change Analysis (H1 2025 vs H1 2024) | Item | Current Period (Yuan) | Prior Year Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 213,895,978.91 | 214,088,545.64 | -0.09 | | Operating Cost | 121,168,247.66 | 119,244,282.03 | 1.61 | | Selling Expenses | 36,309,748.21 | 32,775,493.88 | 10.78 | | Administrative Expenses | 16,059,660.05 | 9,583,745.48 | 67.57 | | Financial Expenses | -4,988,607.99 | -7,079,685.93 | Not applicable | | R&D Expenses | 17,529,198.02 | 13,951,409.47 | 25.64 | | Net Cash Flow from Operating Activities | 37,901,953.36 | 15,892,391.92 | 138.49 | | Net Cash Flow from Investing Activities | 3,257,329.34 | 63,163,133.79 | -94.84 | | Net Cash Flow from Financing Activities | 11,656,254.73 | -21,216,428.93 | Not applicable | - Management expenses increased by 67.57% year-on-year, primarily due to an increase in management personnel following the acquisition of ARISTO Germany[93] - R&D expenses increased by 25.64% year-on-year, primarily due to the company's increased R&D investment[94] - Net cash flow from operating activities increased by 138.49% year-on-year, primarily due to increased cash inflows from operating activities in the current period[94] - Net cash flow from investing activities decreased by 94.84% year-on-year, primarily due to increased purchases of wealth management products in the current period[94] (III) Analysis of Assets and Liabilities The company's total assets and net assets both increased at the end of the period. On the asset side, trading financial assets, notes receivable, and other receivables significantly increased, while non-current assets due within one year and other current assets decreased due to the maturity of time deposits. On the liability side, short-term borrowings significantly increased, employee compensation payable and taxes payable decreased, and lease liabilities declined due to rent payments Asset and Liability Status Changes (End of Period vs End of Prior Year) | Item Name | End of Current Period (Yuan) | Change from Prior Year-end (%) | Explanation | | :--- | :--- | :--- | :--- | | Trading Financial Assets | 83,080,208.34 | 38.16 | Increased purchases of structured deposits in the current period | | Notes Receivable | 3,152,076.77 | 83.64 | Increased notes receivable endorsed but not yet due and not derecognized at period-end | | Other Receivables | 2,693,167.77 | 148.83 | Increased intercompany receivables at period-end | | Non-current Assets Due Within One Year | 0.00 | -100.00 | Bank time deposits matured | | Other Current Assets | 2,360,789.30 | -70.10 | Bank time deposits matured | | Deferred Income Tax Assets | 6,734,088.42 | 31.03 | Increased deductible temporary differences | | Other Non-current Assets | 28,232.06 | -96.54 | Decreased prepayments for long-term assets in the current period | | Short-term Borrowings | 30,000,000.00 | 100 | Increased bank loans at period-end | | Employee Compensation Payable | 10,705,683.31 | -36.16 | Decreased accrued salaries, bonuses, and other employee compensation in the current period | | Taxes Payable | 4,771,163.61 | -32.12 | Decreased taxes payable during the reporting period | | Other Current Liabilities | 4,609,893.90 | 34.74 | Increased notes receivable not derecognized at period-end | | Long-term Borrowings | 14,511.36 | -96.34 | Decreased long-term bank loans of subsidiaries at period-end | | Lease Liabilities | 3,537,546.03 | -42.08 | Lease payments made in the current period, corresponding decrease in lease liabilities | - Overseas assets amounted to 50.36 million Yuan, accounting for 6.20% of total assets[97] (IV) Investment Analysis The company's total financial assets measured at fair value amounted to 83.40 million Yuan at the end of the period, with purchases totaling 193 million Yuan and sales/redemptions totaling 170 million Yuan in the current period Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (Yuan) | Fair Value Change Gains/Losses for Current Period (Yuan) | Current Period Purchases (Yuan) | Current Period Sales/Redemptions (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Other | 60,376,445.21 | 80,208.34 | 193,000,000.00 | 170,131,945.21 | 83,402,068.05 | (VI) Analysis of Major Holding and Participating Companies The company's main subsidiaries include Hangzhou Fengyun Information Technology, Hangzhou IECHO Automation Technology, IECHO Technology Asia, and ARISTO Cutting Solutions GmbH, with ARISTO Cutting Solutions GmbH reporting a negative net profit in the current period Major Subsidiary Information | Company Name | Company Type | Main Business | Registered Capital | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hangzhou Fengyun Information Technology Co., Ltd. | Subsidiary | Technology R&D | 2,000,000.00 Yuan | 46,974,673.34 | 44,082,161.88 | 14,697,345.13 | 10,532,728.64 | | Hangzhou IECHO Automation Technology Co., Ltd. | Subsidiary | Manufacturing | 160,000,000.00 Yuan | 265,450,017.97 | 207,158,353.89 | 123,215,517.98 | 6,525,617.24 | | IECHO Technology Asia Limited | Subsidiary | Market Expansion | 600,000 HKD | 46,220,304.46 | 44,268,452.35 | 1,534,176.64 | 2,759,594.61 | | ARISTO Cutting Solutions GmbH | Subsidiary | Manufacturing | 25,000 Euro | 30,403,703.08 | -4,044,679.29 | 25,880,373.41 | -3,316,288.55 | - During the reporting period, the company achieved operating revenue of 213.90 million Yuan and net profit attributable to parent company shareholders of 26.11 million Yuan[91] - As of June 30, 2025, the company's total assets were 811.75 million Yuan, and net assets attributable to parent company owners were 645.54 million Yuan[91] Part IV Corporate Governance, Environment and Society I. Changes in Directors, Senior Management, and Core Technical Personnel During the reporting period, a core technical personnel retired and new ones were identified, while the company's governance structure underwent significant adjustments, abolishing the Supervisory Board and electing an employee representative director to optimize the governance system - Mr. Zhang Dongsheng, a core technical personnel, retired, and Mr. Shuai Baoyu and Mr. Su Kai were newly identified as core technical personnel[103] - The company abolished the Supervisory Board, and its functions are now exercised by the Board's Audit Committee[104] - Mr. Dai Lingsheng resigned as a director and was elected as an employee representative director of the company's third board of directors[104] - The identification of core technical personnel comprehensively considers their role in the R&D system, technical leadership, R&D contributions, patent numbers, participation in scientific research projects, and team qualifications[105] II. Profit Distribution or Capital Reserve to Share Capital Increase Plan The company plans to distribute a cash dividend of 1.00 Yuan (tax inclusive) per 10 shares to all shareholders, with an estimated total cash dividend of 8.27 million Yuan, accounting for 31.66% of net profit attributable to ordinary shareholders of the listed company, with no capital reserve to share capital increase or bonus shares - The company plans to distribute a cash dividend of 1.00 Yuan (tax inclusive) per 10 shares to all shareholders, based on the total share capital registered on the equity distribution record date, excluding shares in the company's buyback special securities account[107] - The estimated cash dividend is 8.27 million Yuan (tax inclusive), accounting for 31.66% of the net profit attributable to ordinary shareholders of the listed company in the consolidated financial statements[107] - No capital reserve to share capital increase or bonus shares will be distributed[107] - This profit distribution plan has been approved by the Board of Directors and does not require submission to the General Meeting of Shareholders for approval[5] III. Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures and Their Impact The company implements employee incentive measures through two employee stock ownership platforms, "Ruibu Investment" and "Ruisong Investment," which collectively held over 7 million shares of the company during the reporting period - The company established the employee stock ownership platform "Ruibu Investment" in 2015, which held 3,837,847 shares of the company during the reporting period[108] - The company established the employee stock ownership platform "Ruisong Investment" in 2016, which held 3,235,216 shares of the company during the reporting period[108] IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law, thus no relevant environmental information is disclosed - The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[109] V. Specifics of Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work The company has no specific details to disclose regarding consolidating and expanding poverty alleviation achievements, rural revitalization, or other related work - The company has no specific details to disclose regarding consolidating and expanding poverty alleviation achievements, rural revitalization, or other related work[109] Part V Important Matters I. Fulfillment of Commitments The company's controlling shareholder, actual controllers, directors, senior management, and core technical personnel have all strictly fulfilled their commitments made during the initial public offering, including share lock-up, share reduction, share price stabilization, and information disclosure authenticity, with no unfulfilled commitments during the reporting period - Controlling shareholder IECHO Computer, actual controllers Fang Xiaowei, Xu Weihong, Fang Yunke, as well as the company's directors, senior management, and core technical personnel, all strictly fulfilled their share lock-up commitments[111][112][113][114] - All committing parties strictly fulfilled their commitments regarding the plan to stabilize the company's share price[115][116] - The company and relevant parties committed that the prospectus content is true, accurate, and complete, and bear corresponding legal responsibilities, including commitments for share repurchase and compensation for investor losses[119][120][121][122] - The controlling shareholder and actual controllers committed to resolving issues of horizontal competition and related party transactions, ensuring no harm to the company's interests[123][124] II. Non-operating Fund Occupation by Controlling Shareholder and Other Related Parties During the Reporting Period During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties - During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties[127] III. Irregular Guarantees During the reporting period, there were no irregular guarantees - During the reporting period, there were no irregular guarantees[127] IV. Semi-Annual Report Audit Status This semi-annual report is unaudited - This semi-annual report is unaudited[4] V. Changes and Handling of Matters Involving Non-Standard Audit Opinions in the Previous Annual Report The company's previous annual report did not involve matters with non-standard audit opinions - The company's previous annual report did not involve matters with non-standard audit opinions[128] VI. Bankruptcy and Reorganization Matters During the reporting period, the company had no bankruptcy and reorganization matters - During the reporting period, the company had no bankruptcy and reorganization matters[128] VII. Major Lawsuits and Arbitrations During the reporting period, the company had no major lawsuits or arbitrations - During the current reporting period, the company had no major lawsuits or arbitrations[128] VIII. Alleged Violations, Penalties, and Rectification of Listed Company, Its Directors, Senior Management, Controlling Shareholder, and Actual Controllers During the reporting period, the company, its directors, senior management, controlling shareholder, and actual controllers were not involved in alleged violations, penalties, or rectification situations - During the reporting period, the company, its directors, senior management, controlling shareholder, and actual controllers were not involved in alleged violations, penalties, or rectification situations[128] IX. Explanation of the Integrity Status of the Company, Its Controlling Shareholder, and Actual Controllers During the Reporting Period During the reporting period, the company, its controlling shareholder, and actual controllers maintained good integrity, with no unfulfilled obligations determined by effective legal documents or overdue large debts - During the reporting period, the company, its controlling shareholder, and actual controllers had no unfulfilled obligations determined by effective legal documents, or large overdue debts[128] X. Major Related Party Transactions During the reporting period, the company did not have major related party transactions requiring temporary announcement disclosure or with subsequent progress, including purchase/sale of goods, asset/equity transactions, joint investments, or related party creditor/debtor relationships - During the reporting period, the company did not have major related party transactions related to daily operations[129][130] - During the reporting period, the company did not have major related party transactions involving asset or equity acquisition/disposal[130] - During the reporting period, the company did not have major related party transactions involving joint external investments[131] - During the reporting period, the company did not have related party creditor/debtor relationships[131] XI. Major Contracts and Their Fulfillment During the reporting period, the company had no major contracts requiring disclosure regarding trusteeship, contracting, leasing, significant guarantees, or other major contracts and their fulfillment - During the reporting period, the company had no trusteeship, contracting, or leasing matters[131] - During the reporting period, the company had no significant guarantees that were being fulfilled or had not yet been fulfilled[132] - During the reporting period, the company had no other major contracts[132] XII. Explanation of Progress in the Use of Raised Funds The company's overall use of raised funds progressed smoothly, with a cumulative investment progress of 99.28%. The "Intelligent Equipment Industrialization Base (R&D Center) Construction Project" was extended to March 2026 due to prudent planning of fund use. The company also utilized some idle raised funds for cash management Overall Use of Raised Funds | Indicator | Net Raised Funds (Yuan) | Total Committed Investment of Raised Funds (Yuan) | Cumulative Investment at End of Reporting Period (Yuan) | Cumulative Investment Progress at End of Reporting Period (%) | Current Year Investment (Yuan) | Current Year Investment as % of Total Raised Funds (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering of Shares | 282,629,217.78 | 234,621,519.82 | 232,922,201.46 | 99.28 | 9,541,042.79 | 4.07 | Details of Raised Fund Investment Projects | Project Name | Planned Investment of Raised Funds (million Yuan) | Current Period Investment (million Yuan) | Cumulative Investment of Raised Funds at End of Reporting Period (million Yuan) | Investment Progress (%) | Date Project Reached Intended Usable State | | :--- | :--- | :--- | :--- | :--- | :--- | | New Intelligent Cutting Equipment Production Line Project | 100.00 | 0.00 | 100.39 | 100.39 | June 2020 | | Intelligent Equipment Industrialization Base (R&D Center) Construction Project | 55.00 | 9.54 | 51.10 | 92.91 | March 2026 | | Marketing Service Network Upgrade Project | 30.00 | 0.00 | 31.17 | 103.92 | Not applicable | | Replenishment of Working Capital | 49.62 | 0.00 | 50.26 | 101.28 | Not applicable | - The "Intelligent Equipment Industrialization Base (R&D Center) Construction Project" was extended to March 2026, primarily to strengthen product competitiveness, optimize R&D innovation layout, and prudently plan fund use[135][136] - The company's Board of Directors has approved the use of temporarily idle raised funds, up to 10 million Yuan, for cash management to purchase highly secure and liquid investment products[139] XIII. Explanation of Other Important Matters During the reporting period, the company had no other important matters that would affect investor decisions requiring explanation - During the reporting period, the company had no other important matters that would affect investor decisions requiring explanation[142] Part VI Share Changes and Shareholder Information I. Share Capital Changes During the reporting period, the company's total ordinary share capital and share capital structure did not change - During the reporting period, the company's total ordinary share capital and share capital structure did not change[143] II. Shareholder Information As of the end of the reporting period, the total number of ordinary shareholders was 4,549. This section details the shareholding of the top ten shareholders, with the controlling shareholder being Hangzhou IECHO Computer Technology Co., Ltd., and actual controllers Fang Xiaowei and Fang Yunke being father and son, holding indirect shares through investment platforms - As of the end of the reporting period, the total number of ordinary shareholders was 4,549[144] Top Ten Shareholders' Shareholding (Excluding shares lent through securities lending) | Shareholder Name | Ending Shareholding (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Hangzhou IECHO Computer Technology Co., Ltd. | 30,819,318 | 37.27 | Domestic Non-State-Owned Legal Person | | Fang Yunke | 6,613,600 | 8.00 | Domestic Natural Person | | Hangzhou Ruibu Investment Management Partnership (Limited Partnership) | 3,837,847 | 4.64 | Other | | Hangzhou Ruisong Investment Management Partnership (Limited Partnership) | 3,235,216 | 3.91 | Other | | Bai Yan | 1,992,864 | 2.41 | Domestic Natural Person | | You Renzhang | 1,481,955 | 1.79 | Domestic Natural Person | | Zhou Lingsong | 877,814 | 1.06 | Domestic Natural Person | | Hangzhou IECHO Technology Co., Ltd. - 2024 Employee Stock Ownership Plan | 792,000 | 0.96 | Other | | Li Fengxin | 618,800 | 0.75 | Domestic Natural Person | | Wu Ping | 608,800 | 0.74 | Domestic Natural Person | - The controlling shareholder is Hangzhou IECHO Computer Technology Co., Ltd., and actual controllers Fang Xiaowei and Fang Yunke are father and son[147] - Zhou Lingsong, Li Fengxin, and Wu Ping hold shares through ordinary securities accounts and securities company client credit trading guarantee securities accounts[145] III. Directors, Senior Management, and Core Technical Personnel This section discloses the shareholding of the company's directors, senior management, and core technical personnel, including shares indirectly held through the controlling shareholder and employee stock ownership platforms - Fang Xiaowei indirectly holds 32.76% of the company's equity through IECHO Computer[148] - Fang Yunke indirectly holds 1.04% of the company's equity through Ruibu Investment and 1.99% through Ruisong Investment[148] - Other directors, senior management, and core technical personnel also indirectly hold company shares through employee stock ownership platforms[148] IV. Changes in Controlling Shareholder or Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller - During the reporting period, there were no changes in the company's controlling shareholder or actual controller[149] V. Implementation and Changes of Depositary Receipt Arrangements During the Reporting Period The company has no depositary receipt arrangements - The company has no depositary receipt arrangements[149] VI. Special Voting Rights Shares The company has no special voting rights shares - The company has no special voting rights shares[149] VII. Preferred Shares The company has no preferred shares - The company has no preferred shares[149] Part VII Bond-Related Information I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[151] II. Convertible Corporate Bonds The company has no convertible corporate bonds - The company has no convertible corporate bonds[151] Part VIII Financial Report I. Audit Report This semi-annual financial report is unaudited - This semi-annual financial report is unaudited[153] II. Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the company's financial position, operating results, and cash flow Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets amounted to 812 million Yuan, with a higher proportion of current assets. Total liabilities were 166 million Yuan, and total owners' equity was 645 million Yuan - As of June 30, 2025, total current assets were 668.82 million Yuan, total non-current assets were 142.93 million Yuan, and total assets were 811.75 million Yuan[154][155] - Total current liabilities were 157.53 million Yuan, total non-current liabilities were 8.67 million Yuan, and total liabilities were 166.21 million Yuan[155][156] - Total owners' equity attributable to the parent company was 645.54 million Yuan[156] Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets amounted to 742 million Yuan, total liabilities were 177 million Yuan, and total owners' equity was 564 million Yuan - As of June 30, 2025, the parent company's total current assets were 514.72 million Yuan, total non-current assets were 226.80 million Yuan, and total assets were 741.52 million Yuan[159][160] - The parent company's total current liabilities were 171.09 million Yuan, total non-current liabilities were 6.09 million Yuan, and total liabilities were 177.19 million Yuan[159][160] - The parent company's total owners' equity was 564.33 million Yuan[160] Consolidated Income Statement In the first half of 2025, the company's consolidated total operating revenue slightly decreased, but total profit and net profit significantly declined year-on-year, mainly due to increased operating costs, selling expenses, administrative expenses, and R&D expenses - In the first half of 2025, consolidated total operating revenue was 213.90 million Yuan, largely flat compared to the prior year period[162] - Consolidated total profit was 28.69 million Yuan, a year-on-year decrease of 37.79%; net profit was 26.11 million Yuan, a year-on-year decrease of 37.97%[163] - Basic earnings per share and diluted earnings per share were both 0.32 Yuan/share, a year-on-year decrease of 37.25%[164] Parent Company Income Statement In the first half of 2025, the parent company's operating revenue decreased year-on-year, but net profit significantly increased year-on-year, primarily benefiting from a substantial increase in investment income - In the first half of 2025, the parent company's operating revenue was 169.58 million Yuan, a year-on-year decrease of 16.08%[166] - The parent company's net profit was 34.76 million Yuan, a significant year-on-year increase of 113.73%[167] - Investment income was 24.20 million Yuan, a significant increase compared to 0.33 million Yuan in the prior year period[166] Consolidated Cash Flow Statement In the first half of 2025, the company's consolidated net cash flow from operating activities significantly increased, net cash flow from investing activities substantially decreased, net cash flow from financing activities turned positive, and cash and cash equivalents balance increased at period-end - Net cash flow from operating activities was 37.90 million Yuan, a significant year-on-year increase of 138.49%[170] - Net cash flow from investing activities was 3.26 million Yuan, a year-on-year decrease of 94.84%, primarily due to increased purchases of wealth management products in the current period[94][170] - Net cash flow from financing activities was 11.66 million Yuan, turning positive from a negative value in the prior year period, primarily due to increased bank borrowings in the current period[94][170] - Cash and cash equivalents balance at period-end was 356.92 million Yuan[170] Parent Company Cash Flow Statement In the first half of 2025, the parent company's net cash flow from operating activities significantly increased, net cash flow from investing activities decreased, net cash flow from financing activities turned positive, and cash and cash equivalents balance increased at period-end - Net cash flow from operating activities was 53.11 million Yuan, a significant year-on-year increase of 211.15%[172] - Net cash flow from investing activities was 4.44 million Yuan, a year-on-year decrease of 86.34%[172] - Net cash flow from financing activities was 3.57 million Yuan, turning positive from a negative value in the prior year period[173] - Cash and cash equivalents balance at period-end was 316.76 million Yuan[173] Consolidated Statement of Changes in Owners' Equity In the first half of 2025, the company's consolidated owners' equity increased by 15.87 million Yuan, primarily influenced by the total comprehensive income and increased capital contributed by owners, while profit distribution reduced some equity - Total comprehensive income attributable to parent company owners for the current period was 28.91 million Yuan[175] - Amount of share-based payments recognized in owners' equity was 1.12 million Yuan[175] - Distribution to owners (or shareholders) was -14.88 million Yuan[175] - Total owners' equity attributable to the parent company at period-end was 645.54 million Yuan[176] Parent Company Statement of Changes in Owners' Equity In the first half of 2025, the parent company's owners' equity increased by 20.98 million Yuan, primarily due to the contribution from total comprehensive income and share-based payments recognized in capital reserves - Total comprehensive income for the current period was 34.76 million Yuan[179] - Amount of share-based payments recognized in owners' equity was 1.09 million Yuan[179] - Distribution to owners (or shareholders) was -14.88 million Yuan[179] - Total owners' equity at period-end was 564.33 million Yuan[180] - As of June 30, 2025, the company's consolidated total assets were 811.75 million Yuan, total liabilities were 166.21 million Yuan, and total owners' equity attributable to the parent company was 645.54 million Yuan[155][156] - From January to June 2025, the company's consolidated total operating revenue was 213.90 million Yuan, net profit was 26.11 million Yuan, and basic earnings per share was 0.32 Yuan/share[162][163][164] - From January to June 2025, the company's consolidated net cash flow from operating activities was 37.90 million Yuan, net cash flow from investing activities was 3.26 million Yuan, and net cash flow from financing