Definitions This section provides definitions of common terms used in the report, including company name, regulatory bodies, accounting firms, laws, currency units, and major subsidiary names, clarifying the reporting period as January 1 to June 30, 2025 Definitions of Common Terms This chapter defines common terms used in the report, including company name, regulatory bodies, accounting firms, laws, currency units, and major subsidiary names, clarifying the reporting period as January 1 to June 30, 2025 - The reporting period is defined as January 1 to June 30, 202513 - The company's full name is Beijing Sifang Automation Co., Ltd., abbreviated as Sifang Co.13 - Lists names of several subsidiaries including Sifang Sanyi, Jibao Engineering, and Nanjing Yineng13 Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and significant financial performance metrics for the reporting period Company Information This section provides basic registration information, including Chinese name, abbreviation, foreign name, legal representative, and contact details for the Board Secretary and Securities Affairs Representative - The company's Chinese name is Beijing Sifang Automation Co., Ltd., abbreviated as Sifang Co.15 - The legal representative is Gao Xiuhuan15 - The Board Secretary is Qian Jinwen, and the Securities Affairs Representative is Qin Chunmei16 Contacts and Contact Information This section provides detailed contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, faxes, and email addresses - Board Secretary Qian Jinwen, contact number 010-8218100016 - Securities Affairs Representative Qin Chunmei, contact number 010-8218106416 - Both email addresses are ir@sf-auto.com16 Brief Introduction to Changes in Basic Information The company's registered and office addresses are both at No. 9, Sijie, Shangdi Information Industry Base, Haidian District, Beijing, with no historical changes during the reporting period - The company's registered and office addresses have not changed17 - The company's website is **www.sf-auto.com**[17](index=17&type=chunk) Brief Introduction to Changes in Information Disclosure and Document Custody Locations The company designates China Securities Journal and Shanghai Securities News as information disclosure newspapers, with the semi-annual report published on the Shanghai Stock Exchange website and available at the company's Board of Directors Office - Information disclosure newspapers are China Securities Journal and Shanghai Securities News18 - The report website is **www.sse.com.cn**[18](index=18&type=chunk) Brief Introduction to Company Shares The company's A-shares are listed on the Shanghai Stock Exchange, with stock abbreviation Sifang Co. and stock code 601126, with no previous stock abbreviation - Stock type is A-shares, listed on the Shanghai Stock Exchange19 - Stock code 601126, stock abbreviation Sifang Co.19 Company's Key Accounting Data and Financial Indicators In H1 2025, the company's operating revenue increased by 15.62% to RMB 4.02 billion, and net profit attributable to parent company increased by 12.41% to RMB 476 million. Net cash flow from operating activities significantly decreased by 100.78% to RMB -472.3 thousand. Basic earnings per share were RMB 0.58, an increase of 11.54% Key Accounting Data for H1 2025 | Indicator | Current Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,020,225,138.80 | 3,477,205,242.58 | 15.62 | | Total Profit | 532,695,309.85 | 494,009,490.89 | 7.83 | | Net Profit Attributable to Shareholders of the Listed Company | 476,162,821.63 | 423,591,108.29 | 12.41 | | Net Profit Attributable to Shareholders of the Listed Company After Deducting Non-recurring Gains and Losses | 460,375,022.72 | 408,565,681.81 | 12.68 | | Net Cash Flow from Operating Activities | -472,300.42 | 60,590,079.49 | -100.78 | | Net Assets Attributable to Shareholders of the Listed Company (Period End) | 4,486,412,784.35 | 4,575,255,106.85 | -1.94 | | Total Assets (Period End) | 10,878,483,509.51 | 11,045,737,341.05 | -1.51 | Key Financial Indicators for H1 2025 | Indicator | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.58 | 0.52 | 11.54 | | Diluted Earnings Per Share (RMB/share) | 0.58 | 0.52 | 11.54 | | Basic Earnings Per Share After Deducting Non-recurring Gains and Losses (RMB/share) | 0.56 | 0.50 | 12.00 | | Weighted Average Return on Net Assets (%) | 10.07 | 9.85 | Increase of 0.22 percentage points | | Weighted Average Return on Net Assets After Deducting Non-recurring Gains and Losses (%) | 9.74 | 9.50 | Increase of 0.24 percentage points | Non-recurring Gains and Losses for H1 2025 | Non-recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 1,182,552.26 | | Government grants recognized in current profit or loss | 3,714,204.52 | | Gains and losses from changes in fair value and disposal of financial assets and liabilities | 4,117,863.37 | | Gains and losses from entrusted investments or asset management | 6,396,461.67 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 1,397,090.98 | | Other non-operating income and expenses apart from the above | 2,133,214.57 | | Less: Income tax impact | 3,143,853.27 | | Impact on minority interests (after tax) | 9,735.19 | | Total | 15,787,798.91 | Management Discussion and Analysis This section provides a comprehensive review of the company's industry, business operations, core competencies, and financial performance during the reporting period Explanation of the Company's Industry and Main Business Operations during the Reporting Period As a new power system solution provider, the company focuses on smart power generation and new energy, smart grid, new distribution networks, and smart electricity consumption, offering relay protection, automation, and control systems. In H1 2025, the power industry, driven by clean energy, saw rapid growth in new energy installations and deepened smart grid upgrades, providing favorable opportunities for the company's business development - The company's main business covers smart power generation and new energy, smart grid, new distribution networks, and smart electricity consumption, providing products and solutions such as relay protection, automation and control systems, and power electronics27 - The company's products are sold nationwide and exported to over 90 countries and regions, maintaining a leading market share in the industry27 - In H1 2025, China's GDP grew by 5.3% year-on-year, and total electricity consumption increased by 3.7% year-on-year36 - National power generation installed capacity increased by 18.7% year-on-year, with wind power growing by 22.7% and solar power by 54.2%36 - Grid engineering construction investment reached RMB 291.1 billion, a year-on-year increase of 14.6%36 - The power industry is dominated by clean energy, with wind and solar power installations continuing to grow rapidly37 - Breakthrough progress has been made in building a unified national electricity market, with new energy storage and virtual power plants included as market settlement entities37 - Smart grid upgrades are deepening, with AI and big data technologies empowering dispatch optimization, fault prediction, and precise load forecasting37 Discussion and Analysis of Operations During the reporting period, the company achieved operating revenue of RMB 4.02 billion, a 15.62% year-on-year increase, and net profit attributable to parent company of RMB 476 million, a 12.41% year-on-year increase. The company actively responded to external changes, continued technological innovation, strengthened market sales and product development management, and focused on AI technology applications in power systems. All market segments, including grid automation, smart power generation and new energy, smart electricity consumption, and primary equipment products, expanded steadily - During the reporting period, the company's operating revenue was RMB 4.02 billion, a year-on-year increase of 15.62%; net profit attributable to shareholders of the listed company was RMB 476 million, a year-on-year increase of 12.41%40 - The company highly values AI technology development and actively conducts research on AI applications in power systems40 - In the smart grid sector, the winning bid amount in State Grid centralized tenders increased by 60% year-on-year, and in Southern Grid framework tenders by 15% year-on-year41 - In new energy generation, the company consolidated its leading position in niche markets like offshore wind power and large-scale wind-solar bases, and deepened its distributed energy layout42 - In smart electricity consumption, the company expanded into industrial electricity sub-sectors, achieving breakthroughs in scenarios such as data centers, zero-carbon smart parks, source-grid-load-storage integration, and smart rail transit44 - Primary and secondary integrated distribution products benefited from the construction of new power systems and the trend of independent control, leading to stable market demand growth45 - Power electronic products saw scaled development of SVG, and static synchronous compensator products continued to achieve market breakthroughs46 - Energy storage products expanded both domestically and internationally, with accelerated R&D iteration of grid-forming energy storage systems, and EMS maintaining market leadership47 - In new product and technology R&D, the company launched an overall smart application solution based on large model technology, building core competitiveness around 'intelligent query engine + point semantic matching + multi-modal intelligent early warning + AR intelligent control'48 Analysis of Changes in Major Financial Statement Items | Item Name | Current Period End Amount (RMB) | % of Total Assets at Current Period End | Prior Year End Amount (RMB) | % of Total Assets at Prior Year End | % Change from Prior Year End | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 4,020,225,138.80 | - | 3,477,205,242.58 | - | 15.62 | Steady growth in business scale | | Operating Cost | 2,793,427,068.56 | - | 2,313,597,609.87 | - | 20.74 | Business scale growth | | Investment Income | 7,180,500.78 | - | 999,739.78 | - | 618.24 | Increase in income from bank structured deposits | | Fair Value Change Income | 4,117,863.37 | - | 0.00 | - | Not applicable | Fair value change of broker wealth management products | | Asset Disposal Income | 1,182,552.26 | - | 38,045.74 | - | 3,008.24 | Increase in income from disposal of fixed assets | | Non-operating Income | 7,193,844.54 | - | 18,453,756.40 | - | -61.02 | Received performance compensation from an associate in the prior period | | Net Cash Flow from Operating Activities | -472,300.42 | - | 60,590,079.49 | - | -100.78 | Increased operating cash outflows for purchases, expenses, etc., due to business scale growth | | Net Cash Flow from Investing Activities | -449,978,076.24 | - | -45,067,013.92 | - | Not applicable | Investment in safe, liquid, low-risk broker wealth management products | | Net Cash Flow from Financing Activities | -600,668,279.96 | - | -502,525,350.00 | - | Not applicable | Increase in cash dividends distributed | Main Business by Product | Product Segment | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Profit Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Operating Cost (%) | YoY Change in Gross Profit Margin (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Grid Automation | 1,726,423,650.92 | 1,021,501,809.47 | 40.83 | 2.21 | 7.28 | -2.80 | | Power Plant and Industrial Automation | 2,002,819,239.26 | 1,525,741,475.66 | 23.82 | 31.25 | 36.02 | -2.67 | | Other | 284,969,484.90 | 244,729,301.33 | 14.12 | 11.85 | 3.42 | 7.00 | Main Business by Region | Region | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Profit Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Operating Cost (%) | YoY Change in Gross Profit Margin (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic Business | 3,911,930,003.85 | 2,734,783,471.10 | 30.09 | 16.68 | 22.38 | -3.26 | | International Business | 102,282,371.23 | 57,189,115.36 | 44.09 | -12.61 | -24.72 | 9.00 | Analysis of Core Competencies during the Reporting Period The company's core competencies lie in technological innovation, brand advantage, and talent advantage. It has established a complete R&D innovation management system, holds numerous patents and software copyrights, and has received national honors. As a renowned brand in power system secondary equipment manufacturing, the company holds a leading position in the industry and possesses a high-quality technical and management talent pool - The company has established a complete R&D innovation management system, with 932 authorized invention patents, 649 software copyrights, and participation in 540 international/national/industry standard formulations52 - Received over 200 provincial/ministerial level or higher scientific and technological awards, and undertaken or participated in over 20 national key R&D projects52 - The company is a renowned brand in domestic power system secondary equipment manufacturing, with relay protection and substation automation products ranking among the industry leaders54 - The company is a technology-intensive enterprise, with technical personnel accounting for over 60% of the total workforce, and a management team and professional staff with strong technical backgrounds in R&D, marketing, technology, and production55 Major Operating Conditions during the Reporting Period This section details the company's asset and liability status, investment situation, and operating performance of major subsidiaries and associates. At the end of the reporting period, total assets were RMB 10.878 billion, and net assets attributable to the parent company were RMB 4.486 billion. Monetary funds and accounts receivable financing decreased, while trading financial assets, accounts receivable, and contract assets increased. Construction in progress significantly decreased due to the commissioning of the Huzhou Smart Equipment Digital Factory project Analysis of Changes in Assets and Liabilities | Item Name | Current Period End Amount (RMB) | % of Total Assets at Current Period End | Prior Year End Amount (RMB) | % of Total Assets at Prior Year End | % Change from Prior Year End | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 2,501,266,613.98 | 22.99 | 3,532,161,472.90 | 31.98 | -29.19 | Investment in broker wealth management products and distribution of cash dividends | | Trading Financial Assets | 604,063,137.02 | 5.55 | 240,000,000.00 | 2.17 | 151.69 | Increase in investment in broker wealth management products | | Accounts Receivable | 1,433,589,500.86 | 13.18 | 1,189,564,984.90 | 10.79 | 20.51 | - | | Accounts Receivable Financing | 242,322,743.68 | 2.23 | 346,211,496.90 | 3.13 | -30.01 | Decrease in outstanding balance of unexpired bank acceptance bills | | Other Receivables | 65,188,938.22 | 0.60 | 43,703,969.42 | 0.40 | 49.16 | Increase in outstanding balance of bid deposits paid | | Contract Assets | 2,238,585,871.28 | 20.58 | 1,759,939,311.53 | 15.93 | 27.20 | - | | Construction in Progress | 17,070,455.96 | 0.16 | 138,813,362.20 | 1.26 | -87.70 | Huzhou Smart Equipment Digital Factory project put into operation | | Right-of-use Assets | 0.00 | 0.00 | 2,666,234.48 | 0.02 | -100.00 | Right-of-use assets for leased factory fully amortized upon expiration | | Other Non-current Assets | 34,878,529.84 | 0.32 | 21,980,380.32 | 0.20 | 58.68 | Increase in outstanding balance of prepaid engineering equipment | | Taxes Payable | 60,262,621.18 | 0.55 | 85,225,696.04 | 0.77 | -29.29 | Decrease in outstanding balance of corporate income tax payable | - Overseas assets amounted to RMB 37.75 million, accounting for 0.35% of total assets68 - Restricted monetary funds at period-end were RMB 294.36 million, mainly for performance bonds, bid bonds, bank acceptance bills, and other deposits70 Operating Performance of Major Subsidiaries (Unit: RMB 10,000) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Sifang Jibao Engineering Technology Co., Ltd. | Subsidiary | Manufacturing | 105,000.00 | 595,566.05 | 216,886.44 | 309,907.40 | 41,390.10 | 37,128.04 | | Nanjing Sifang Yineng Electric Automation Co., Ltd. | Subsidiary | Manufacturing | 3,000.00 | 113,282.77 | 28,530.59 | 99,351.10 | 5,522.01 | 5,001.82 | Other Disclosures This section discloses risks faced by the company, including macroeconomic and industry policies, technological innovation, talent loss, and changes in the international environment, and details the progress of the company's 'Quality Improvement, Efficiency Enhancement, and Return Focus' initiative, covering aspects such as focusing on main business, adhering to technological innovation, continuous management optimization, strengthening corporate governance, improving information disclosure quality, and emphasizing shareholder returns - The company faces risks from macroeconomic and industry policies, technological innovation, talent loss, and changes in the international environment76777880 - The company continuously monitors AI technology applications in power systems, increases R&D investment, and seeks cooperation with research institutions to enhance technological competitiveness77 - The company formulated a 'Quality Improvement, Efficiency Enhancement, and Return Focus' action plan, with operating revenue growing by 15.62% and net profit attributable to parent company by 12.41% during the reporting period81 - Innovation achievements are abundant, with 6 technological achievements identified as internationally leading; 90 patent applications and 60 granted patents82 - The company proactively abolished the supervisory board and successfully completed the transfer of audit committee functions, establishing a governance structure with clear responsibilities and standardized operations84 - Conducted over 50 investor research activities, covering over 250 participants, enhancing investor understanding and trust86 - The company highly values shareholder returns, with cash dividends in 2024 accounting for 84% of net profit attributable to parent company; dividend payout ratios have exceeded 80% in the past three years87 Corporate Governance, Environment, and Society This section outlines changes in the company's governance structure, including board and senior management appointments, profit distribution plans, equity incentive programs, and environmental and social responsibility initiatives Changes in Company Directors and Senior Management During the reporting period, the company's Board of Directors completed its re-election and the appointment of senior management. Gao Xiuhuan was elected Chairman, Liu Zhichao appointed President, Qin Hongxia, Hu Xiaodong, Yang Jun, Qian Jinwen, Liu Shu, Gao Feng, Xu Gang appointed Vice Presidents, Fu Rao appointed Chief Financial Officer, and Qian Jinwen concurrently served as Board Secretary - On May 8, 2025, the company completed the re-election of its Board of Directors and the appointment of senior management90 - Gao Xiuhuan was elected Chairman of the company's Eighth Board of Directors, and Liu Zhichao was appointed President90 - Qin Hongxia, Hu Xiaodong, Yang Jun, Qian Jinwen, Liu Shu, Gao Feng, Xu Gang were appointed Vice Presidents, Fu Rao was appointed Chief Financial Officer, and Qian Jinwen concurrently served as Board Secretary90 Profit Distribution or Capital Reserve Conversion Plan During the reporting period, the company did not implement any profit distribution or capital reserve conversion plans - There was no profit distribution plan or capital reserve to share capital conversion plan during the reporting period91 Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company's 'Qihang No. 2' Restricted Stock Incentive Plan is ongoing, with 168,000 restricted shares held by 7 departing incentive recipients repurchased and cancelled during the reporting period - The company's 'Qihang No. 2' Restricted Stock Incentive Plan is continuously implemented92 - During the reporting period, due to the departure of 7 incentive recipients, 168,000 restricted shares held by them were repurchased and cancelled93 Environmental Information of Listed Companies and Their Major Subsidiaries Required to Disclose Environmental Information by Law The company actively complies with environmental protection laws and regulations, implements ISO14001 environmental management and ISO50001 energy management systems, and experienced no environmental pollution incidents in H1 2025. The company adopts multiple measures in green production, low-carbon office, and carbon management, including organizational-level carbon inventory, product carbon footprint verification, and purchasing green electricity certificates - The company complies with environmental protection laws and regulations, implementing ISO14001 environmental management system and ISO50001 energy management system94 - In H1 2025, the company experienced no environmental pollution incidents, and environmental and energy management performance significantly improved94 - In green production, the company selects environmentally friendly, low-energy consumption equipment and raw materials, promoting new technologies, processes, and materials95 - The company conducts organizational-level carbon inventory and verification, product carbon footprint verification, and purchased 4,250 green electricity certificates in June 202597 Significant Matters This section covers the company's fulfillment of commitments, absence of fund occupation or illegal guarantees, audit status, major litigation, integrity, related party transactions, major contracts, and other significant events Fulfillment of Commitments The company's controlling shareholder, Sifang Electric (Group) Co., Ltd., and actual controllers, Yang Qixun and Wang Xuzhao, have strictly fulfilled their commitments to avoid horizontal competition - Controlling shareholder Sifang Electric (Group) Co., Ltd. signed a commitment letter to avoid horizontal competition on February 23, 2009, and has strictly fulfilled it100 - Actual controllers Yang Qixun and Wang Xuzhao each signed a commitment letter to avoid horizontal competition on February 23, 2009, and have strictly fulfilled them100 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 - There was no non-operating fund occupation by the controlling shareholder or other related parties during the reporting period101 Illegal Guarantees During the reporting period, there were no illegal guarantees - There were no illegal guarantees during the reporting period101 Semi-Annual Report Audit Status This semi-annual report has not been audited - This semi-annual report has not been audited5 Major Litigation and Arbitration Matters During the reporting period, the company had no major litigation or arbitration matters - The company had no major litigation or arbitration matters during the reporting period102 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 operated with integrity and maintained good credit - During the reporting period, the company, its controlling shareholder, and actual controllers operated with integrity and maintained good credit102 Major Related Party Transactions During the reporting period, the company engaged in related party transactions including product/technology sales, provision/acceptance of leasing services, and joint external investments. Sales of products/technology to related parties amounted to RMB 29.88 million, and house leasing services amounted to RMB 8.6461 million. The company jointly established Tianjin Shandianbang Electric Technology Co., Ltd. with Sifang Electric (Group) Co., Ltd., with the company holding a 49% stake Related Party Transactions Related to Ordinary Operations (Unit: RMB 10,000) | Transaction Type | Estimated Amount for 2025 | Amount Executed as of June 30, 2025 | | :--- | :--- | :--- | | Sales of Products/Technology | 13,000 | 2,988 | | Purchases of Products/Technology | 500 | 0 | | Purchases of Engineering Services | 4,500 | 0 | | House Leasing Services (Received) | 1,200 | 864.61 | - The company jointly invested with a related party to establish Tianjin Shandianbang Electric Technology Co., Ltd., with a registered capital of RMB 6 million and the company holding a 49% stake108 Major Contracts and Their Performance During the reporting period, the total amount of guarantees provided to subsidiaries was RMB 13.87 million, with a total outstanding guarantee balance of RMB 43.25 million at period-end, accounting for 0.96% of the company's net assets Total Company Guarantees (Unit: RMB) | Indicator | Amount | | :--- | :--- | | Total amount of guarantees provided to subsidiaries during the reporting period | 13,871,016.48 | | Total outstanding guarantee balance to subsidiaries at period-end (B) | 43,248,810.10 | | Total Guarantees (A+B) | 43,248,810.10 | | % of Total Guarantees to Company's Net Assets | 0.96 | Explanation of Other Significant Matters From January to June 2025, the company used its own funds to subscribe for bank wealth management products (structured deposits) with a rolling renewal amount totaling RMB 1.518 billion, and broker wealth management products with a rolling renewal amount totaling RMB 600 million Wealth Management Product Investment Status (Unit: RMB) | Type | Source of Funds | Amount Incurred | Unexpired Balance | Overdue Unrecovered Amount | | :--- | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 1,518,000,000 | 0 | 0 | | Broker Wealth Management Products | Own Funds | 600,000,000 | 600,000,000 | 0 | Share Changes and Shareholder Information This section details changes in the company's share capital and provides an overview of its shareholder structure, including the top ten shareholders and their holdings Changes in Share Capital During the reporting period, the company's total share capital decreased from 833,436,000 shares to 833,268,000 shares due to the repurchase and cancellation of 168,000 restricted shares. Restricted shares decreased, while the proportion of unrestricted tradable shares slightly increased Table of Share Changes (Unit: shares) | Item | Quantity Before This Change | % Before This Change | Increase/Decrease in This Change (+, -) | Quantity After This Change | % After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 14,582,300 | 1.75 | -168,000 | 14,414,300 | 1.73 | | 3. Other Domestic Shares | 14,582,300 | 1.75 | -168,000 | 14,414,300 | 1.73 | | Domestic Natural Person Holdings | 14,582,300 | 1.75 | -168,000 | 14,414,300 | 1.73 | | II. Unrestricted Tradable Shares | 818,853,700 | 98.25 | 0 | 818,853,700 | 98.27 | | 1. RMB Ordinary Shares | 818,853,700 | 98.25 | 0 | 818,853,700 | 98.27 | | III. Total Shares | 833,436,000 | 100.00 | -168,000 | 833,268,000 | 100.00 | - During the reporting period, due to the departure of 7 incentive recipients, the company repurchased and cancelled 168,000 restricted shares that had been granted but not yet lifted from restrictions117 - As of the end of the reporting period, the company's total shares changed from 833,436,000 shares to 833,268,000 shares117 Shareholder Information As of the end of the reporting period, the company had 100,000 shareholders. Among the top ten shareholders, Sifang Electric (Group) Co., Ltd. held 42.01%, serving as the controlling shareholder. Hong Kong Securities Clearing Company Limited and Qianhai Life Insurance Co., Ltd. - Dividend Insurance Product, among other institutional investors, saw changes in their shareholding proportions - As of the end of the reporting period, the company had a total of 100,000 shareholders121 Top Ten Shareholders' Holdings (Unit: shares) | Shareholder Name | Increase/Decrease during Reporting Period | Number of Shares Held at Period End | Proportion (%) | Number of Restricted Shares Held | Pledged, Marked, or Frozen Status | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sifang Electric (Group) Co., Ltd. | -487,200 | 350,020,466 | 42.01 | 0 | None | Domestic Non-state-owned Legal Person | | Beijing Huake Hengji Digital Technology Co., Ltd. | 0 | 38,196,802 | 4.58 | 0 | None | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited | -1,680,076 | 17,902,185 | 2.15 | 0 | None | Unknown | | Qianhai Life Insurance Co., Ltd. - Dividend Insurance Product | -12,222,080 | 11,222,420 | 1.35 | 0 | None | Unknown | | Yang Qixun | 0 | 6,454,680 | 0.77 | 0 | None | Domestic Natural Person | - Controlling shareholder Sifang Electric (Group) Co., Ltd. held 42.01% of the shares122 - Actual controller Mr. Yang Qixun is one of the company's actual controllers and a shareholder of the controlling shareholder, Sifang Electric (Group) Co., Ltd.124 Bond-Related Information This section confirms the absence of corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, and convertible corporate bonds during the reporting period Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - The company had no corporate bonds or non-financial enterprise debt financing instruments during the reporting period127 Convertible Corporate Bonds During the reporting period, the company had no convertible corporate bonds - The company had no convertible corporate bonds during the reporting period127 Financial Report This section presents the company's unaudited financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with notes on accounting policies, taxation, and other significant financial details Audit Report This semi-annual report has not been audited - This semi-annual report has not been audited129 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 H1 2025, reflecting the company's asset and liability structure, profitability, and cash flow - Provides the Consolidated Balance Sheet, Parent Company Balance Sheet, Consolidated Income Statement, Parent Company Income Statement, Consolidated Cash Flow Statement, Parent Company Cash Flow Statement, Consolidated Statement of Changes in Owners' Equity, and Parent Company Statement of Changes in Owners' Equity130136141145149153158169 Company Basic Information Beijing Sifang Automation Co., Ltd. was established in April 1994 and listed on the Shanghai Stock Exchange in December 2010 (stock code 601126). The company primarily engages in R&D, production, and sales of products in areas such as power transmission and transformation protection and automation systems, power generation and enterprise power systems, distribution and consumption systems, and power electronic applications. As of the end of the reporting period, the company had 19 subsidiaries included in its consolidated scope - The company was established in April 1994, publicly issued A-shares on December 24, 2010, and was listed on the Shanghai Stock Exchange on December 31 with stock code 601126174 - The company primarily engages in R&D, production, and sales of products in areas such as power transmission and transformation protection and automation systems, power generation and enterprise power systems, distribution and consumption systems, and power electronic applications174 - As of the end of the reporting period, the company had a total of 19 subsidiaries included in its consolidated scope175 Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and relevant regulations, and, except for the cash flow statement, are prepared under the accrual basis of accounting - Financial statements are prepared on a going concern basis, complying with enterprise accounting standards176177 - Except for the cash flow statement prepared on a cash basis, all others are prepared on an accrual basis176 Significant Accounting Policies and Accounting Estimates This section details the company's specific accounting policies and estimates for financial instruments, inventories, contract assets, fixed assets, intangible assets, revenue recognition, government grants, deferred income tax assets/liabilities, and leases, ensuring the standardization and accuracy of financial statement preparation - Details the classification, measurement, and impairment of financial instruments, including financial assets measured at amortized cost, fair value through other comprehensive income, and fair value through profit or loss195196197198199200201 - Inventories are measured at the lower of cost and net realizable value, and valued using the standard cost method or moving weighted average method upon issuance219221 - Revenue is recognized when the customer obtains control of the related goods or services, and revenue from sales of goods, provision of services, and construction contracts is recognized based on contract terms and performance progress258259260 - R&D expenditures are divided into research and development phases, with development phase expenditures recognized as intangible assets when specific conditions are met243244 Taxation The company's main taxes include VAT, urban maintenance and construction tax, and corporate income tax. The company and several subsidiaries enjoy a 15% corporate income tax preferential rate as high-tech enterprises, and also benefit from tax incentives such as VAT immediate refund for software products, VAT exemption for technology transfer/development, and VAT additional deduction for advanced manufacturing enterprises Major Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable Value Added | 6%、9%、13% | | Urban Maintenance and Construction Tax | Amount of VAT Paid | 7% | | Corporate Income Tax | Taxable Income | 15% or 25% (preferential for small and micro enterprises) | - Sifang Co., Jibao Engineering, Nanjing Yineng, and several other subsidiaries enjoy a 15% corporate income tax preferential rate as high-tech enterprises281 - The company benefits from VAT immediate refund policy for software products, and VAT exemption for technology transfer and development281 - Advanced manufacturing enterprises enjoy a policy of 5% additional VAT deduction from taxable amounts282 Notes to Consolidated Financial Statement Items This section details specific information for each consolidated financial statement item, including monetary funds, trading financial assets, notes receivable, accounts receivable, contract assets, inventories, long-term equity investments, fixed assets, intangible assets, goodwill, deferred income tax assets/liabilities, notes payable, accounts payable, contract liabilities, employee benefits payable, taxes payable, other payables, other current liabilities, deferred income, share capital, capital reserves, treasury stock, other comprehensive income, retained earnings, operating revenue and cost, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, fair value change income, credit impairment losses, asset impairment losses, asset disposal income, non-operating income, non-operating expenses, income tax expenses, cash flow statement items, notes to statement of changes in owners' equity, foreign currency monetary items, and leases - Monetary funds at period-end totaled RMB 2.501 billion, of which RMB 294 million were restricted other monetary funds, mainly for performance bonds, bid bonds, and other deposits284 - Trading financial assets at period-end totaled RMB 604 million, primarily broker wealth management products286 - Accounts receivable at period-end had a book value of RMB 1.434 billion, with RMB 544 million in bad debt provisions296 - Contract assets at period-end had a book value of RMB 2.239 billion, with RMB 206 million in bad debt provisions307 - Inventories at period-end had a book value of RMB 1.917 billion, with RMB 133 million in inventory impairment provisions and contract performance cost impairment provisions336 - Construction in progress at period-end totaled RMB 17.07 million, a significant decrease of 87.70% from the beginning of the period, mainly due to the commissioning of the Huzhou Smart Equipment Digital Factory project359 - Intangible assets at period-end had a book value of RMB 236 million, with 28.86% of internally developed intangible assets368 - Goodwill had a book value of RMB 129 million, with full impairment provisions made371372 - Share capital decreased by 168,000 shares due to the repurchase and cancellation of restricted shares, with total share capital of 833 million shares at period-end410 - Operating revenue was RMB 4.02 billion, and operating cost was RMB 2.793 billion423 - Net cash flow from operating activities was RMB -472.3 thousand, a significant year-on-year decrease of 100.78%463 R&D Expenditures During the reporting period, the company's total R&D expenditures were RMB 350 million, including RMB 341 million in expensed R&D and RMB 9.7218 million in capitalized R&D. Capitalized R&D projects primarily relate to patents and non-patent technologies R&D Expenditures by Nature of Expense (Unit: RMB) | Item | Amount Incurred in Current Period | Amount Incurred in Prior Period | | :--- | :--- | :--- | | Employee Compensation | 259,732,984.52 | 227,280,136.81 | | Depreciation and Amortization | 21,788,853.80 | 20,522,695.53 | | Testing Fees | 14,754,331.05 | 26,000,240.85 | | Material Costs | 7,367,333.84 | 7,053,012.75 | | Travel Expenses | 7,163,902.31 | 6,142,870.96 | | Office Expenses | 5,958,297.88 | 4,062,336.57 | | Entrusted Scientific Research and Technical Services | 6,929,872.30 | 5,588,944.64 | | Lease Expenses | 650,477.06 | 814,821.10 | | Utilities | 406,828.29 | 856,308.94 | | Property and Building Equipment Maintenance Fees | 149,302.68 | 197,126.35 | | Equity Incentive Costs | 11,085,930.55 | 19,492,812.84 | | Other | 14,485,630.69 | 10,312,505.99 | | Total | 350,473,744.97 | 328,323,813.33 | | Of which: Expensed R&D Expenditures | 340,751,933.59 | 320,490,135.96 | | Capitalized R&D Expenditures | 9,721,811.38 | 7,833,677.37 | - Capitalized R&D projects primarily consist of patents and non-patent technologies, with a period-end balance of RMB 18.66 million474 Changes in Consolidation Scope During the reporting period, the company had no changes in consolidation scope due to business combinations not under common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries - During the reporting period, the company had no changes in consolidation scope due to business combinations not under common control, business combinations under common control, reverse acquisitions, or disposal of subsidiaries475476 Interests in Other Entities As of the end of the reporting period, the company had 19 subsidiaries included in its consolidated scope, including Jibao Engineering, Nanjing Yineng, and Sifang Sanyi. The company also held interests in two significant joint ventures/associates, Sifang Menghua Electric (60% stake) and Zhongneng Zhixin (20% stake), both accounted for using the equity method Composition of the Enterprise Group (Partial Subsidiaries) | Subsidiary Name | Main Operating Location | Registered Capital (RMB 10,000) | Business Nature | Shareholding Ratio (%) (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Jibao Engineering | Beijing | 105,000.00 | Manufacturing | 100.00 | Establishment | | Nanjing Yineng | Nanjing | 3,000.00 | Manufacturing | 100.00 | Business Combination under Common Control | | Sifang Sanyi | Baoding | 4,800.00 | Manufacturing | 100.00 | Business Combination not under Common Control | | Sifang Zhidian | Suzhou | 1,000.00 | Manufacturing | 60.00 | Establishment | | Sifang Ruihe | Beijing | 3,497.00 | Manufacturing | 93.93 | Establishment | - The company holds a 60% stake in Sifang Menghua Electric, accounted for as a joint venture using the equity method due to joint control484 - The company holds a 20% stake in Zhongneng Zhixin, accounted for as an associate using the equity method484 Key Financial Information of Significant Non-Wholly Owned Subsidiaries (Unit: RMB) | Subsidiary Name | Minority Shareholding Ratio (%) | Profit/Loss Attributable to Minority Shareholders in Current Period | Minority Interest Balance at Period End | | :--- | :--- | :--- | :--- | | Sifang Ruihe | 6.07 | 12,260.41 | 1,128,583.68 | | Sifang Zhidian | 40.00 | -238,711.60 | 3,691,355.68 | Government Grants During the reporting period, the company's total government grants recognized in profit or loss amounted to RMB 90.77 million, including RMB 678.9 thousand related to assets and RMB 90.0557 million related to income. Deferred income at period-end was RMB 14.8236 million Government Grants Recognized in Profit or Loss (Unit: RMB) | Type | Amount Incurred in Current Period | Amount Incurred in Prior Period | | :--- | :--- | :--- | | Related to Assets | 678,903.05 | 805,000.02 | | Related to Income | 90,055,650.96 | 82,829,941.94 | - Deferred income at period-end was RMB 14.82 million490 Risks Related to Financial Instruments The company faces market risks (foreign exchange and interest rate risks), credit risk, and liquidity risk. It manages potential adverse impacts through management plans, with low foreign exchange risk for foreign currency financial assets. Credit risk is controlled by assessing customer creditworthiness and regular monitoring. Liquidity risk is managed by continuously monitoring funding needs and maintaining ample cash reserves - The company faces market risks (foreign exchange risk and interest rate risk), credit risk, and liquidity risk491 - As of June 30, 2025, the company's foreign currency financial assets, converted to RMB, amounted to RMB 198.49 million, indicating low foreign exchange risk491 - Credit risk is primarily controlled by assessing factors such as customer creditworthiness, possibility of obtaining guarantees, credit history, and market conditions492 - Liquidity risk is managed by summarizing cash flow forecasts from subsidiaries, continuously monitoring funding needs at the group level, and maintaining ample cash reserves492 Disclosure of Fair Value At period-end, the company's total assets measured at fair value on a recurring basis amounted to RMB 870 million, primarily including trading financial assets (broker wealth management products and equity investments) and accounts receivable financing (bank acceptance bills). The fair value of these assets is mainly determined through Level 2 (broker wealth management products, equity investments) and Level 1 (accounts receivable financing) measurements Fair Value of Assets and Liabilities Measured at Fair Value at Period End (Unit: RMB) | Item | Level 1 Fair Value Measurement | Level 2 Fair Value Measurement | Level 3 Fair Value Measurement | Total | | :--- | :--- | :--- | :--- | :--- | | (I) Trading Financial Assets | | 628,028,151.07 | | 628,028,151.07 | | (4) Broker Wealth Management Products | | 604,063,137.02 | | 604,063,137.02 | | (II) Other Non-current Financial Assets | | 23,965,014.05 | | 23,965,014.05 | | (VI) Accounts Receivable Financing | 242,322,743.68 | | | 242,322,743.68 | | Total Assets Measured at Fair Value on a Recurring Basis | 242,322,743.68 | 628,028,151.07 | | 870,350,894.75 | - Trading financial assets are broker wealth management products with short holding periods, and their book balances are close to fair values497 - Other non-current financial assets are equity investments, with fair values determined by reference to the investee's latest valuation report497 - Accounts receivable financing consists of bank acceptance bills with short remaining maturities, and their book balances are close to fair values497 Related Parties and Related Party Transactions The company's controlling shareholder is Sifang Electric (Group) Co., Ltd., and its actual controllers are Yang Qixun and Wang Xuzhao. During the reporting period, the company had transactions with related party Zhongneng Zhixin for purchasing materials and selling products, and leased fixed assets from Sifang Electric. At period-end, accounts receivable from Zhongneng Zhixin were RMB 10.3266 million, accounts payable to Zhongneng Zhixin were RMB 2.3695 million, and other payables to Sifang Electric were RMB 5.2866 million - The company's controlling shareholder is Sifang Electric (Group) Co., Ltd., with a shareholding ratio of 42.01%500 - The actual controllers are Yang Qixun and Wang Xuzhao500 Related Party Transactions for Purchase and Sale of Goods, Provision and Acceptance of Services (Unit: RMB) | Related Party | Related Party Transaction Content | Amount Incurred in Current Period | | :--- | :--- | :--- | | Zhongneng Zhixin | Purchase of Materials | 4,760,176.99 | | Zhongneng Zhixin | Sale of Products | 147,493.60 | - As a lessee, the company leased fixed assets from Sifang Electric, paying RMB 4,858,266.66 in rent during the current period506 Outstanding Balances of Receivables and Payables with Related Parties (Unit: RMB) | Item Name | Related Party | Book Balance at Period End | | :--- | :--- | :--- | | Accounts Receivable | Zhongneng Zhixin | 10,326,597.98 | | Accounts Payable | Zhongneng Zhixin | 2,369,535.00 | | Contract Liabilities | Zhongneng Zhixin | 9,420,619.47 | | Other Payables | Sifang Electric | 5,286,622.98 | - Key management personnel compensation amounted to RMB 10.0675 million in the current period508 Share-based Payment The company's 'Qihang No. 2' Restricted Stock Incentive Plan is ongoing, with 168,000 shares amounting to RMB 1.2751 million forfeited due to the departure of incentive recipients in the current period. Total equity-settled share-based payment expenses for the current period were RMB 23.8128 million, primarily for senior management, middle management, and core technical/business personnel Details of Each Equity Instrument (Unit: shares/RMB) | Category of Grantee | Number Forfeited in Current Period | Amount Forfeited in Current Period | | :--- | :--- | :--- | | Qihang No. 2 Incentive Recipients | 168,000.00 | 1,275,120.00 | | Total | 168,000.00 | 1,275,120.00 | - For the 'Qihang No. 2' Restricted Stock Incentive Plan, the grant price per share was RMB 7.59, fair value per share on grant date was RMB 15.09, total equity incentive expenses expected to be amortized over the vesting period are RMB 143 million, with RMB 19.2514 million amortized in the current period519 - For the 'Qihang No. 2' Restricted Stock Incentive Plan (Reserved Grant), the grant price per share was RMB 6.99, fair value per share on grant date was RMB 16.17, total equity incentive expenses expected to be amortized over the vesting period are RMB 12.1635 million, with RMB 4.5613 million amortized in the current period520 Share-based Payment Expenses for Current Period (Unit: RMB) | Category of Grantee | Equity-settled Share-based Payment Expenses | | :--- | :--- | | Qihang No. 2 Incentive Recipients | 19,251,437.50 | | Qihang No. 2 Incentive Recipients (Reserved Grant) | 4,561,312.50 | | Total | 23,812,750.00 | Commitments and Contingencies During the reporting period, the company had no significant commitments or contingencies requiring disclosure - The company had no significant commitments requiring disclosure during the reporting period523 - The company had no significant contingencies requiring disclosure during the reporting period524 Post-Balance Sheet Events Between the end of the reporting period and the disclosure date of the semi-annual report, the company had no significant non-adjusting events, profit distribution, or sales returns requiring disclosure as post-balance sheet events - Between the end of the reporting period and the disclosure date of the semi-annual report, the company had no significant non-adjusting events, profit distribution, or sales returns requiring disclosure as post-balance sheet events523524 Other Significant Matters During the reporting period, the company had no other significant matters such as prior period accounting error corrections, major debt restructurings, asset exchanges, annuity plans, discontinued operations, or segment information - During the reporting period, the company had no other significant matters such as prior period accounting error corrections, major debt restructurings, asset exchanges, annuity plans, discontinued operations, or segment information524525 Notes to Parent Company Financial Statement Items This section details the notes to the parent company's major financial statement items, including accounts receivable, other receivables, long-term equity investments, operating revenue and cost, and investment income. The parent company's accounts receivable had a period-end book value of RMB 559 million, with RMB 297 million in bad debt provisions. Long-term equity investments had a period-end book value of RMB 1.475 billion - Parent company's accounts receivable had a period-end book balance of RMB 856 million, bad debt provisions of RMB 297 million, and a book value of RMB 559 million531 - Parent company's other receivables had a period-end book balance of RMB 91.8349 million, bad debt provisions of RMB 4.4494 million, and a book value of RMB 87.3856 million543552 - Parent company's long-term equity investments had a period-end book value of RMB 1.475 billion, including RMB 1.415 billion in investments in subsidiaries and RMB 59.1017 million in investments in associates and joint ventures557 - Parent company's operating revenue was RMB 1.052 billion, and operating cost was RMB 770 million565 - Parent company's investment income was RMB 2.8974 million, mainly from long-term equity investment income accounted for by the equity method and structured deposit income567 Supplementary Information This section provides supplementary information including the detailed statement of non-recurring gains and losses, net asset return, and earnings per share. Total non-recurring gains and losses amounted to RMB 15.7878 million. The company's weighted average return on net assets was 10.07%, and basic earnings per share were RMB 0.58 Detailed Statement of Non-recurring Gains and Losses for the Current Period (Unit: RMB) | Item | Amount | | :--- | :--- | | Gains and losses from disposal of non-current assets | 1,182,552.26 | | Government grants recognized in current profit or loss | 3,714,204.52 | | Gains and losses from changes in fair value and disposal of financial assets and liabilities | 4,117,863.37 | | Gains and losses from entrusted investments or asset management | 6,396,461.67 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 1,397,090.98 | | Other non-operating income and expenses apart from the above | 2,133,214.57 | | Less: Income tax impact | 3,143,853.27 | | Impact on minority interests (after tax) | 9,735.19 | | Total | 15,787,798.91 | Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Earnings Per Share (RMB/share) | | :--- | :--- | :--- | | Net profit attributable to ordinary shareholders of the company | 10.07 | 0.58 | | Net profit attributable to ordinary shareholders of the company after deducting non-recurring gains and losses | 9.74 | 0.56 |
四方股份(601126) - 2025 Q2 - 季度财报