广大特材(688186) - 2025 Q2 - 季度财报

Definitions Definitions of Common Terms This section defines key terms, company names, and industry-specific terminology to facilitate understanding of the report's content - Defines 'Guangda Special Steel' as Zhangjiagang Guangda Special Steel Co., Ltd. and its wholly-owned/controlled subsidiaries[12] - Explains key industry terms such as new materials, special steel, high-temperature alloys, and wind power main shafts[12][13] Company Profile and Key Financial Indicators Company Basic Information This section provides fundamental company details including its official name, abbreviation, legal representative, registered and office addresses, website, and email - The company's full name is Zhangjiagang Guangda Special Steel Co., Ltd., abbreviated as Guangda Special Steel[15] - The legal representative is Xu Weiming, with registered and office address in Anqing Village, Fenghuang Town, Zhangjiagang City[15] Contact Persons and Information This section lists the company's contact persons, their addresses, telephone numbers, fax, and email addresses - Contact persons include Guo Yan and Xu Qiuyang, with contact number 0512-55390270[17] Information Disclosure and Report Availability Changes This section outlines the company's designated newspapers for information disclosure, website address, and locations where reports are available - Information disclosure newspapers are Shanghai Securities News and Securities Times, with the website address **www.sse.com.cn**[18](index=18&type=chunk) Company Stock/Depositary Receipt Overview This section provides a brief overview of the company's A-share listing on the STAR Market of the Shanghai Stock Exchange - The company's stock type is A-shares, listed on the STAR Market of the Shanghai Stock Exchange, with stock abbreviation 'Guangda Special Steel' and code '688186'[19] Company's Key Accounting Data and Financial Indicators This section details the company's key accounting data and financial indicators for the reporting period, explaining changes and highlighting significant performance growth and improved profitability Key Accounting Data (January-June 2025) | Indicator | Current Period (RMB) | Prior Period (RMB) | Period-over-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,534,397,638.82 | 1,880,993,199.80 | 34.74 | | Total Profit | 238,883,263.80 | 61,983,057.29 | 285.40 | | Net Profit Attributable to Listed Company Shareholders | 185,097,066.17 | 42,779,874.46 | 332.67 | | Net Profit Attributable to Listed Company Shareholders After Deducting Non-Recurring Gains and Losses | 178,767,486.34 | 7,982,641.34 | 2,139.45 | | Net Cash Flow from Operating Activities | -343,385,806.72 | -417,839,730.83 | Not Applicable | | Net Assets Attributable to Listed Company Shareholders (Period-End) | 3,708,256,948.39 | 3,627,380,911.00 | 2.23 | | Total Assets (Period-End) | 12,197,236,743.90 | 11,463,661,602.87 | 6.40 | Key Financial Indicators (January-June 2025) | Key Financial Indicator | Current Period (Jan-Jun) | Prior Period | Period-over-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.86 | 0.20 | 330.00 | | Diluted Earnings Per Share (RMB/share) | 0.73 | 0.21 | 247.62 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (RMB/share) | 0.83 | 0.04 | 1,975.00 | | Weighted Average Return on Net Assets (%) | 4.97 | 1.20 | Increased by 3.77 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 4.80 | 0.22 | Increased by 4.58 percentage points | | R&D Investment as % of Operating Revenue (%) | 4.07 | 4.14 | Decreased by 0.07 percentage points | - Operating revenue increased by 34.74% year-on-year, primarily due to strong downstream demand and increased product orders[21] - Total profit increased by 285.40% year-on-year, mainly due to gross profit margin recovering to 20.71% (an increase of 6.77 percentage points from the prior period) and a 1 percentage point decrease in period expenses as a proportion of operating revenue[21] Non-Recurring Gains and Losses Items and Amounts This section itemizes the company's non-recurring gains and losses for the reporting period, totaling RMB 6,329,579.83 Non-Recurring Gains and Losses Items and Amounts | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 3,088,639.10 | | Government Grants Recognized in Current Profit/Loss | 3,818,787.15 | | Other Non-operating Income and Expenses Apart from the Above | 1,160,674.55 | | Less: Income Tax Impact | 1,200,574.11 | | Minority Interest Impact (After Tax) | 537,946.86 | | Total | 6,329,579.83 | Management Discussion and Analysis Industry and Main Business Overview for the Reporting Period This section details the company's industry (high-end special steel materials and components), its development stage, characteristics, key technical barriers, main business, products, application areas, and its procurement, production, sales, and R&D models - The company's main business involves R&D, production, and sales of high-end special steel materials and components, primarily for high-end equipment manufacturing sectors such as new energy wind power, rail transit, machinery, military nuclear power, aerospace, energy power equipment, and marine petrochemicals[26][34] - As of the end of June 2025, national cumulative wind power installed capacity reached 572.60 million kilowatts, a year-on-year increase of 22.70%; from January to June 2025, new grid-connected wind power installed capacity was 51.39 million kilowatts, up 98.88% year-on-year[26] - The company adopts an 'order-to-produce' manufacturing model and operates four production bases in Zhangjiagang City (Suzhou), Rugao City (Nantong), and Deyang City (Sichuan)[40] - The company's sales model is direct sales, acquiring new customers through target key client development, brand effect, and high-end equipment driven approaches[41] Discussion and Analysis of Operations This section summarizes the company's operational highlights for the reporting period, including significant performance improvement, effective production line adjustments, enhanced gearbox component projects, technological and process innovations, and market value management, all contributing to rapid growth in financial indicators - Operating revenue for the reporting period was RMB 2,534.40 million, a year-on-year increase of 34.74%; gross profit margin recovered to 20.71%, an increase of 6.77 percentage points from the prior period[44] - Period expense control was effective, with period expenses as a percentage of operating revenue decreasing by 1 percentage point year-on-year, further enhancing the company's profitability[45] - The company continuously pursued technological and process innovation, improving 1 core technology and adding 11 new core technologies, primarily focusing on new energy wind power, energy power, and nuclear fusion fields[47] - The company completed its first phase of share repurchase, actually repurchasing 18,128,037 shares with a total capital expenditure of RMB 399,960,068.75, and cancelled 8 million shares on June 30, 2025[47] - The company implemented its 2024 annual equity distribution, distributing a cash dividend of RMB 3.825 (tax inclusive) for every 10 shares to all shareholders, totaling RMB 76.48 million (tax inclusive) in cash dividends[49] Analysis of Core Competencies During the Reporting Period This section outlines the company's core competencies in technological innovation and full industrial chain integration, including numerous core technologies, patent achievements, system certifications, and end-to-end advantages from smelting to precision machining, along with details on R&D projects and investments - The company has developed 64 core technologies covering key processes such as smelting, forming, and heat treatment, which are industrialized in products like gear steel, mold steel, precision mechanical components, special stainless steel, and special alloys, resulting in 110 invention patents[50] - The company possesses a complete industrial chain of processes including smelting, forming, heat treatment, and precision machining, offering advantages such as strong prototyping capabilities, controllable material quality, manageable production costs, and a broad product line[50] - During the reporting period, 1 core technology was improved and 11 new core technologies were added, primarily focusing on new energy wind power, energy power, and nuclear fusion fields[61] R&D Investment | Indicator | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 103,044,112.23 | 77,865,660.03 | 32.34 | | Total R&D Investment | 103,044,112.23 | 77,865,660.03 | 32.34 | | R&D Investment as % of Operating Revenue (%) | 4.07 | 4.14 | Decreased by 0.07 percentage points | - The company has 304 R&D personnel, accounting for 12.68% of its total workforce, with total R&D staff compensation of RMB 27.50 million[88] Risk Factors This section identifies and analyzes various risks the company may face in its operations, including loss of core technical personnel, technology and product substitution, new product development failure, raw material price fluctuations, high customer concentration, product quality management, lower-than-expected returns on fundraising projects, financial risks, and industry policy changes - The company faces risks of loss of core technical personnel, technology leakage, and technology and product substitution[89][91] - Fluctuations in raw material prices (scrap steel, alloys, pig iron) could directly lead to product cost volatility, impacting profitability[91] - The fundraising projects 'Special Alloy Material Expansion Project' and 'Large High-End Equipment Core Precision Components Project' may yield lower-than-expected benefits[93] - Total accounts receivable and notes receivable at period-end were RMB 2,453.27 million, accounting for 20.11% of total assets, posing collection risks[94] - Net cash flow from operating activities was -RMB 343.39 million during the reporting period, and sustained negative cash flow could lead to liquidity risk[94] - Inventory book value was RMB 2,518.34 million, representing 40.55% of current assets, indicating impairment risk[95] - Significant adverse changes in new energy wind power industry policies would negatively impact the company's wind power business expansion[97] Key Operating Performance During the Reporting Period This section summarizes the company's operating revenue, operating costs, and expense changes, analyzes its asset and liability status, and investment activities, highlighting the effectiveness of revenue growth and cost control Financial Statement Item Variation Analysis (January-June 2025) | Item | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,534,397,638.82 | 1,880,993,199.80 | 34.74 | | Operating Cost | 2,009,550,717.10 | 1,618,726,525.26 | 24.14 | | Selling Expenses | 11,330,396.65 | 7,702,819.92 | 47.09 | | Administrative Expenses | 86,979,510.69 | 70,473,138.12 | 23.42 | | Financial Expenses | 84,270,981.71 | 74,744,074.73 | 12.75 | | R&D Expenses | 103,044,112.23 | 77,865,660.03 | 32.34 | | Net Cash Flow from Operating Activities | -343,385,806.72 | -417,839,730.83 | Not Applicable | | Net Cash Flow from Investing Activities | -28,514,329.97 | -234,327,030.28 | Not Applicable | | Net Cash Flow from Financing Activities | 390,380,374.69 | 606,169,738.02 | -35.60 | - Operating revenue increased by 34.74% year-on-year, primarily due to strong downstream demand and increased product orders[101] - Net cash flow from operating activities was -RMB 343.39 million, mainly influenced by bill settlements, inventory increases, and bill discounting activities classified under financing activities[102] - Net cash flow from financing activities was RMB 390.38 million, primarily due to payment for share repurchases[102] - Total restricted assets at period-end amounted to RMB 3,783.34 million, including monetary funds, notes receivable, fixed assets, intangible assets, construction in progress, and investment properties[106] - The company did not engage in external equity investment activities during the reporting period; in the prior period, an additional investment of RMB 820 million was made in the fundraising project 'Large High-End Equipment Core Precision Components Project (Phase I)'[109][110] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel This section reports no changes in the company's directors, supervisors, senior management, and core technical personnel during the reporting period, and outlines the criteria for identifying core technical personnel - There were no changes in the company's directors, supervisors, senior management, and core technical personnel during the reporting period[118] - Criteria for identifying core technical personnel include: extensive industry experience; holding important positions in the company's production, R&D, and other departments; participating in and leading the development of multiple core technologies, and leading teams to complete multiple patent inventions[118] Profit Distribution or Capital Reserve Conversion Plan The company had no profit distribution plan or capital reserve to share capital conversion plan during the reporting period - The proposed profit distribution or capital reserve to share capital conversion plan for this half-year period is 'None'[119] Company Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures and Their Impact This section discloses the implementation of the company's 2024 employee stock ownership plan, including the completion of stock purchases and lock-up period arrangements - The company's 2024 employee stock ownership plan has completed the purchase of company shares, accumulating 5,215,318 shares, representing 2.43% of the company's total share capital at that time[122] - A total of 173 individuals participated in this employee stock ownership plan, with a lock-up period from December 25, 2024, to December 24, 2025[122] Environmental Information of Listed Companies and Their Major Subsidiaries Included in the Legally Mandated Environmental Information Disclosure List This section lists the company and its four major subsidiaries included in the legally mandated environmental information disclosure list, emphasizing the company's commitment to green development and continuous increase in environmental protection investments Entities Included in the Legally Mandated Environmental Information Disclosure List | No. | Company Name | | :--- | :--- | | 1 | Zhangjiagang Guangda Special Steel Co., Ltd. | | 2 | Jiangsu Guangda Xinsheng Precision Manufacturing Co., Ltd. | | 3 | Rugao Hongmao Cast Steel Co., Ltd. | | 4 | Deyang Guangda Dongqi New Material Co., Ltd. | - The company consistently adheres to a green development philosophy, achieving all established environmental management goals during the reporting period and continuously increasing environmental protection investments[123] Significant Matters Fulfillment of Commitments This section details the commitments made by the company's actual controllers, shareholders, related parties, and the company itself during initial public offerings and refinancing, confirming strict adherence to these commitments during the reporting period - The company's controlling shareholder and actual controller committed to making up social insurance and housing provident fund payments, which were strictly fulfilled during the reporting period[126] - The company's controlling shareholder and actual controller committed to resolving horizontal competition, which was strictly fulfilled during the reporting period[127][128] - The company's controlling shareholder, actual controller, directors, supervisors, and senior management committed to resolving related-party transactions, which were strictly fulfilled during the reporting period[128][129] - The company and relevant parties committed to taking responsibility for any false records, misleading statements, or major omissions in the prospectus, which was strictly fulfilled during the reporting period[129] - The company committed to taking various measures to prevent the dilution of immediate returns and enhance profitability, which was strictly fulfilled during the reporting period[130] - The company's controlling shareholder, actual controller, directors, and senior management committed to effectively implementing return compensation measures, which were strictly fulfilled during the reporting period[131][132][133][134][135] Illegal Guarantees The company had no illegal guarantees during the reporting period - There were no illegal guarantees by the company during the reporting period[137] Significant Litigation and Arbitration Matters The company had no significant litigation or arbitration matters during the reporting period - The company had no significant litigation or arbitration matters during this reporting period[138] Significant Contracts and Their Performance This section discloses significant guarantees and sales contracts executed by the company during the reporting period, including guarantees for subsidiaries and a RMB 1.505 billion wind turbine component sales contract with Mingyang Smart Energy Group - During the reporting period, all existing and new guarantees were for wholly-owned subsidiaries, with a total guarantee amount of RMB 2.10 billion, representing 56.63% of the company's net assets[143] - The company signed a routine operating sales contract with Mingyang Smart Energy Group Co., Ltd., for a contract amount of RMB 1.505 billion (tax inclusive), providing wind turbine components such as hubs, nacelles, and main shafts[145] Explanation of Progress in Use of Raised Funds This section details the overall use of the company's raised funds and specific fundraising projects, including investment progress, realized benefits for IPO and refinancing projects, and arrangements for project completion and using surplus funds to supplement working capital Overall Use of Raised Funds | Source of Raised Funds | Net Amount of Raised Funds (RMB) | Committed Investment Total (RMB) | Total Raised Funds Invested as of Reporting Period End (RMB) | Cumulative Investment Progress (%) | | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering (IPO) | 639,537,649.20 | 690,000,000.00 | 543,686,331.81 | 85.01 | | Issuance of Shares to Specific Objects | 1,287,370,060.68 | 1,700,000,000.00 | 1,011,096,743.83 | 78.54% | - The 'Special Alloy Material Expansion Project' was completed in February 2025, achieving RMB 5.05 million in benefits for the first half of 2025, with RMB 79.60 million of surplus raised funds permanently used to supplement working capital[151][155] - The 'New Material R&D Center' project was completed by the end of December 2022, with RMB 6.08 million in surplus funds permanently used to supplement working capital[152] - The 'Hongmao Offshore Wind Power High-End Equipment R&D and Manufacturing Phase I Project' was completed in March 2023, achieving RMB 11.30 million in benefits for the first half of 2025[152] - In February 2025, due to an operational error by financial personnel, RMB 3.50 million was mistakenly transferred from the special raised funds account to the company's own funds account, and was immediately returned upon discovery[156] Share Changes and Shareholder Information Share Capital Changes During the reporting period, the company's share capital changed due to the conversion of convertible bonds and the cancellation of some repurchased shares, resulting in an increase of 11,656,271 unrestricted tradable shares - A total of RMB 409.96 million of 'Guangda Convertible Bonds' were converted into company shares during the reporting period, with 19,656,271 shares converted[161] - On June 30, 2025, the company implemented a partial share repurchase cancellation, with 8,000,000 shares cancelled[161] - From the end of the reporting period to the semi-annual report disclosure date, basic earnings per share changed from RMB 0.86/share to RMB 0.69/share, diluted earnings per share from RMB 0.73/share to RMB 0.69/share, and net assets per share from RMB 17.38/share to RMB 17.63/share[162] - As of August 25, 2025, the company's total share capital was 280,489,356 shares[163] Shareholder Information This section discloses the total number of common shareholders and the top ten shareholders' holdings as of the end of the reporting period, including shares held through ordinary securities accounts and credit trading accounts - As of the end of the reporting period, the total number of common shareholders was 15,843[164] Top Ten Shareholders' Holdings (as of Reporting Period End) | Shareholder Name | Shares Held at Period End (Shares) | Proportion (%) | Share Status | Amount (Shares) | | :--- | :--- | :--- | :--- | :--- | | Zhangjiagang Guangda Investment Holding Group Co., Ltd. | 44,800,000 | 19.83 | None | 0 | | Xu Weiming | 12,650,000 | 5.60 | None | 0 | | Zhangjiagang Guangda Special Steel Co., Ltd. - 2024 Employee Stock Ownership Plan | 5,215,318 | 2.31 | None | 0 | | Zhangjiagang Wanding Investment Partnership (Limited Partnership) | 4,500,000 | 1.99 | None | 0 | | Guangdong Tianchuang Private Securities Investment Fund Management Co., Ltd. - Tianchuang No. 18 Private Securities Investment Fund | 3,530,141 | 1.56 | None | 0 | | Pan Zhinan | 3,153,194 | 1.40 | None | 0 | | China Pacific Life Insurance Co., Ltd. - Traditional - Ordinary Insurance Products | 3,027,314 | 1.34 | None | 0 | | Sun Liping | 2,925,763 | 1.30 | None | 0 | | Ningbo October Wuxun Equity Investment Partnership (Limited Partnership) | 2,863,393 | 1.27 | None | 0 | | Qian Linling | 2,840,726 | 1.26 | None | 0 | - As of the end of the reporting period, Zhangjiagang Guangda Special Steel Co., Ltd.'s dedicated share repurchase securities account held 10,128,037 shares, accounting for 4.48% of the company's total share capital at period-end[168] Bond-Related Information Convertible Corporate Bonds This section details the issuance, holders, changes, conversion price adjustments, liabilities, and credit rating of 'Guangda Convertible Bonds,' highlighting the significant event of triggering and exercising the conditional early redemption clause - On October 13, 2022, the company publicly issued RMB 1.55 billion in convertible corporate bonds, abbreviated as 'Guangda Convertible Bonds' with bond code '118023', listed on the Shanghai Stock Exchange from November 9, 2022[172] - At period-end, there were 7,718 convertible bondholders, and the company's convertible bonds had no guarantors[173] Convertible Bond Changes During the Reporting Period | Convertible Corporate Bond Name | Before This Change (RMB) | Change (Conversion) (RMB) | After This Change (RMB) | | :--- | :--- | :--- | :--- | | Guangda Convertible Bonds | 1,549,951,000 | 409,959,000 | 1,139,992,000 | - During the reporting period, the conversion amount was RMB 409.96 million, converting into 19,656,271 shares; the cumulative converted shares accounted for 9.18% of the company's total shares issued before conversion[177] - The conversion price of 'Guangda Convertible Bonds' has been adjusted multiple times, with the latest conversion price at RMB 20.84/share as of the end of this reporting period[179] - China Chengxin Pengyuan Credit Rating Co., Ltd. rated the company's corporate credit rating as AA-, with a stable outlook[181] - 'Guangda Convertible Bonds' triggered the conditional redemption clause, and the company's board of directors decided to exercise the early redemption right[182][183] - On August 25, 2025, the company redeemed RMB 4.464 million (44,640 bonds) of 'Guangda Convertible Bonds', with a total redemption payment of RMB 4,502,650.88 (including current interest)[183] Financial Report Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, and cash flow statements for the first half of 2025, comprehensively illustrating its financial position, operating results, and cash movements Consolidated Balance Sheet Key Data (June 30, 2025) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 12,197,236,743.90 | | Total Liabilities | 8,089,970,241.30 | | Total Equity Attributable to Parent Company Owners | 3,708,256,948.39 | Consolidated Income Statement Key Data (January-June 2025) | Item | Amount (RMB) | | :--- | :--- | | Total Operating Revenue | 2,534,397,638.82 | | Total Profit | 238,883,263.80 | | Net Profit | 215,313,795.25 | | Net Profit Attributable to Parent Company Shareholders | 185,097,066.17 | Consolidated Cash Flow Statement Key Data (January-June 2025) | Item | Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | -343,385,806.72 | | Net Cash Flow from Investing Activities | -28,514,329.97 | | Net Cash Flow from Financing Activities | 390,380,374.69 | Company Basic Information This section briefly introduces the company's historical evolution, registration information, stock listing status, and main business, clarifying its engagement in the metal products industry, primarily focusing on the production and sales of advanced steel materials - The company's predecessor was Zhangjiagang Guangda Machinery Co., Ltd., which was wholly converted into a joint-stock company on January 30, 2018[221] - The company's shares were listed and traded on the Shanghai Stock Exchange on February 11, 2020[221] - The company belongs to the metal products industry, with its main business activities being the production and sales of advanced steel materials[221] Basis of Financial Statement Preparation This section clarifies that the company's financial statements are prepared on a going concern basis, with no significant doubts regarding its ability to continue as a going concern for the next 12 months from the reporting period end - The company's financial statements are prepared on a going concern basis[222] - There are no matters or circumstances that would cause significant doubt about the company's ability to continue as a going concern for the 12 months from the end of the reporting period[223] Significant Accounting Policies and Estimates This section details the company's specific accounting policies and estimates for financial instrument impairment, inventories, fixed asset depreciation, construction in progress, intangible assets, and revenue recognition, also explaining any accounting policy changes during the reporting period - The company adheres to the requirements of enterprise accounting standards, with the accounting year running from January 1 to December 31 of the Gregorian calendar, and the functional currency being RMB[225][226][228] - Financial assets are classified upon initial recognition into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in current profit or loss[234] - Inventory is issued using the weighted average method at month-end, and inventory impairment provisions are made for the difference when cost exceeds net realizable value[248][249] Fixed Asset Depreciation Methods | Category | Depreciation Method | Depreciation Period (Years) | Salvage Rate | Annual Depreciation Rate | | :--- | :--- | :--- | :--- | :--- | | Buildings and Structures | Straight-line Method | 20-40 | 5.00 | 2.38-4.75 | | Specialized Equipment | Straight-line Method | 5-15 | 5.00 | 6.33-19.00 | | Transportation Vehicles | Straight-line Method | 4-5 | 5.00 | 19.00-23.75 | | Other Equipment | Straight-line Method | 3-8 | 5.00 | 11.88-31.67 | - The company primarily sells alloy materials and alloy products, fulfilling performance obligations at a specific point in time, and recognizes revenue when customers obtain control of the related goods or services[281] - The company has implemented the relevant provisions of 'Interpretation No. 17 of Accounting Standards for Business Enterprises' and 'Interpretation No. 18 of Accounting Standards for Business Enterprises' issued by the Ministry of Finance, effective from January 1, 2024[295] Taxation This section discloses the company's main tax categories and rates, along with applicable tax preferential policies, including high-tech enterprise income tax incentives and value-added tax (VAT) additional deduction policies for advanced manufacturing - Value-added tax (VAT) rates are 13%, 9%, and 5%; export goods are subject to a 'exemption, offset, refund' policy, with a refund rate of 13%[296] - The company, Deyang Guangda Dongqi New Material Co., Ltd., Rugao Hongmao Cast Steel Co., Ltd., Rugao Hongmao Heavy Forging Co., Ltd., Deyang Guangda Xinhong Technology Co., Ltd., and Jiangsu Guangda Xinsheng Precision Manufacturing Co., Ltd. all enjoy a 15% preferential corporate income tax rate as high-tech enterprises[298][299][300] - The company, Hongmao Cast Steel Co., Hongmao Heavy Forging Co., and Xinsheng Precision Co. are eligible for a 5% additional VAT deduction policy for advanced manufacturing[300] Notes to Consolidated Financial Statement Items This section provides detailed notes and analysis for each asset, liability, equity, revenue, cost, and expense item in the consolidated financial statements, including period-end balances, beginning balances, reasons for changes, and related accounting treatments Monetary Funds (Period-End Balance) | Item | Amount (RMB) | | :--- | :--- | | Cash on Hand | 87,806.57 | | Bank Deposits | 678,371,831.32 | | Other Monetary Funds | 160,713,543.02 | | Total | 839,173,180.91 | Notes Receivable (Period-End Balance) | Item | Amount (RMB) | | :--- | :--- | | Bank Acceptance Bills | 547,560,483.66 | | Commercial Acceptance Bills | 302,501,726.71 | | Finance Company Acceptance Bills | 3,346,976.21 | | Total | 853,409,186.58 | - Accounts receivable book value at period-end was RMB 1,599.86 million, with bad debt provisions of RMB 111.06 million[313][318] - Inventory book value at period-end was RMB 2,518.34 million, primarily comprising raw materials, work-in-progress, and finished goods[346] - Fixed assets book value at period-end was RMB 4,212.02 million, with accumulated depreciation of RMB 1,464.03 million[359] - Construction in progress balance at period-end was RMB 1,113.11 million, mainly for the Large High-End Equipment Core Precision Components Project[365] - Short-term borrowings balance at period-end was RMB 1,181.65 million, including RMB 564.57 million in credit borrowings[395] - Bonds payable balance at period-end was RMB 1,045.02 million, representing convertible corporate bonds[418] Operating Revenue and Operating Cost (Current Period Occurrence) | Item | Revenue (RMB) | Cost (RMB) | | :--- | :--- | :--- | | Main Business | 2,489,856,066.50 | 1,974,852,044.99 | | Other Businesses | 44,541,572.32 | 34,698,672.11 | | Total | 2,534,397,638.82 | 2,009,550,717.10 | - R&D expenses incurred in the current period amounted to RMB 103.04 million, a year-on-year increase of 32.34%[448] - Net cash flow from operating activities was -RMB 343.39 million[473] R&D Expenditures This section discloses the company's R&D expenditures by nature of expense for the reporting period, primarily including material trial production costs, employee compensation, and depreciation expenses, all of which are expensed R&D expenditures R&D Expenditures (Current Period Occurrence) | Item | Amount (RMB) | | :--- | :--- | | Employee Compensation | 27,495,646.59 | | Direct Input (Material Trial Production Costs) | 70,577,580.72 | | Depreciation Expenses | 4,771,437.60 | | Other Expenses | 199,447.32 | | Total | 103,044,112.23 | | Of which: Expensed R&D Expenditures | 103,044,112.23 | Interests in Other Entities This section details the composition of the company's enterprise group, including the main operating locations, registered capital, business nature, shareholding percentages of each subsidiary, and key financial information for significant non-wholly-owned subsidiaries (Guangda New Material Co.) Subsidiary Information | Subsidiary Name | Main Operating Location | Registered Capital (RMB) | Business Nature | Shareholding (%) | | :--- | :--- | :--- | :--- | :--- | | Guangda Steel Co. | Zhangjiagang, Jiangsu | 12,800,000.00 | Commercial | 100 | | Xinsheng International Trade Co. | Zhangjiagang, Jiangsu | 15,000,000.00 | Commercial | 100 | | Hongmao Cast Steel Co. | Rugao, Jiangsu | 516,085,500.00 | Manufacturing | 100 | | Xinsheng Intelligent Manufacturing Co. | Zhangjiagang, Jiangsu | 500,000,000.00 | Manufacturing | 100 | | Hongmao Heavy Forging Co. | Rugao, Jiangsu | 90,000,000.00 | Manufacturing | 100 | | Guangda New Material Co. | Deyang, Sichuan | 100,000,000.00 | Manufacturing | 51 | | Xinhong Technology Co. | Deyang, Sichuan | 100,000,000.00 | Services | 100 | | Xinhua Metal Co. | Rugao, Jiangsu | 40,000,000.00 | Services | 100 | - Guangda New Material Co. is a significant non-wholly-owned subsidiary, with a minority shareholder stake of 49.00%, and profit/loss attributable to minority shareholders for the current period was RMB 30.22 million[489] - Guangda New Material Co.'s operating revenue for the current period was RMB 744.29 million, with a net profit of RMB 61.67 million[491] Government Grants This section discloses government grant-related liability items and amounts recognized in current profit or loss for the reporting period, primarily comprising asset-related deferred income and income-related government grants Liability Items Involving Government Grants | Financial Statement Item | Beginning Balance (RMB) | New Grants Added This Period (RMB) | Amount Recognized in Non-operating Income This Period (RMB) | Transferred to Other Income This Period (RMB) | Period-End Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 8,131,429.45 | 10,000,000.00 | 0 | 920,057.01 | 17,211,372.44 | Asset-related | - Total government grants recognized in current profit or loss for this period amounted to RMB 4,987,528.30[495] Risks Related to Financial Instruments This section elaborates on the company's exposure to credit risk, liquidity risk, and market risks (including interest rate and foreign exchange risks), detailing the strategies and measures implemented to manage these exposures - The company's objective in risk management is to balance risk and return, minimizing the negative impact of risks on operating performance and maximizing the interests of shareholders and other equity investors[495] - The company faces credit risk, liquidity risk, and market risks (interest rate risk and foreign exchange risk)[495] - Credit risk primarily arises from monetary funds and receivables, managed by depositing funds with highly-rated financial institutions and regularly assessing customer creditworthiness[497] - Liquidity risk is controlled through a comprehensive use of various financing methods such as bill settlements and bank borrowings, combining long-term and short-term financing appropriately[498] - As of June 30, 2025, the company's bank borrowings with floating interest rates amounted to RMB 2,322.53 million[501] Disclosure of Fair Value This section discloses the period-end fair value of the company's assets and liabilities measured at fair value, primarily involving receivables financing, and explains the valuation techniques for Level 3 fair value measurement items - Total assets continuously measured at fair value amounted to RMB 256.87 million, all classified as Level 3 fair value measurements, primarily consisting of receivables financing[508] - Level 3 fair value measured receivables financing includes bank acceptance bills receivable and non-recourse Yunxin, Jianxin Rongtong, Tongbao, etc., with fair value determined by their face value or book value net of bad debt provisions[510] Related Parties and Related Party Transactions This section discloses information on the company's parent company and subsidiaries, as well as related party transactions during the reporting period, including related party guarantees and key management personnel compensation - The parent company is Zhangjiagang Guangda Investment Holding Group Co., Ltd., with a registered capital of RMB 93.80 million and a 19.83% shareholding in the company[513] - The ultimate controlling parties of the company are Xu Weiming and Xu Xiaohui (father and son), who directly and indirectly control 28.4% of the company's shares[514] - The company, as the guaranteed party, received guarantees from Zhangjiagang Guangda Investment Holding Group Co., Ltd., totaling RMB 199.97 million[519] - Key management personnel compensation for the current period was RMB 3.04 million[520] Commitments and Contingencies This section states that as of the balance sheet date, the company has no significant commitments or contingencies requiring disclosure - As of the balance sheet date, the company has no significant commitments or contingencies requiring disclosure[522] Events After the Balance Sheet Date This section discloses that there are no proposed profit distributions or dividends after the balance sheet date - Proposed profit distribution or dividends amounted to RMB 0[525] Other Significant Matters This section briefly explains the basis for determining segment information, stating that the company's main business is managed and evaluated as a single entity, thus no segment information is required for disclosure - The company's main business involves the production and sales of alloy materials and products, which is managed and evaluated as a single entity, therefore no segment information is required for disclosure[527] Notes to Parent Company Financial Statement Key Items This section provides detailed notes on key items in the parent company's financial statements, including accounts receivable, other receivables, long-term equity investments, operating revenue and costs, and R&D expenses, reflecting the parent company's financial position and operating activities - Parent company accounts receivable book value at period-end was RMB 868.79 million, with bad debt provisions of RMB 55.62 million[216][532][535] - Parent company other receivables book balance at period-end was RMB 2,580.54 million, of which RMB 2,571.93 million were related party transactions within the consolidated scope[218][544] - Parent company long-term equity investments book value at period-end was RMB 1,700.51 million, entirely consisting of investments in subsidiaries[223][554][556] Parent Company Operating Revenue and Operating Cost (Current Period Occurrence) | Item | Revenue (RMB) | Cost (RMB) | | :--- | :--- | :--- | | Main Business | 1,418,270,329.33 | 1,243,050,379.62 | | Other Businesses | 38,061,601.13 | 34,273,158.01 | | Total | 1,456,331,930.46 | 1,277,323,537.63 | - Parent company R&D expenses incurred in the current period amounted to RMB 36.80 million[226][565] Supplementary Information This section provides supplementary information, including a detailed statement of non-recurring gains and losses, return on net assets, and earnings per share, further refining the company's financial performance - Total non-recurring gains and losses amounted to RMB 6,329,579.83[227][568] Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Earnings Per Share (Basic EPS) | Earnings Per Share (Diluted EPS) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Ordinary Shareholders of the Company | 4.97 | 0.86 | 0.73 | | Net Profit Attributable to Ordinary Shareholders of the Company After Deducting Non-Recurring Gains and Losses | 4.80 | 0.83 | 0.71 |