盛邦安全(688651) - 2025 Q2 - 季度财报

Section I Definitions This section provides definitions of key terms and abbreviations used in the report, covering company entities, industry organizations, technical concepts, and cybersecurity-related terms - Company, the Company, the Group, and Webray Security all refer to Webray Security Technology Group Co., Ltd[10] - IDC (International Data Corporation) is a globally renowned provider of consulting, advisory, and event services for the information technology, telecommunications, and consumer technology markets[10] - New infrastructure primarily encompasses seven major areas: 5G base station construction, ultra-high voltage, intercity high-speed rail and urban rail transit, new energy vehicle charging piles, big data centers, artificial intelligence, and industrial internet[10] - Situational awareness is an environment-based, dynamic, and holistic capability to understand security risks, leveraging security big data to enhance the ability to discover, identify, understand, analyze, and respond to security threats[11] - 0-Day vulnerabilities refer to undisclosed vulnerabilities without patches; 1-Day vulnerabilities are those with public information but no released patches; N-Day vulnerabilities are those with official patches already released[11] Section II Company Profile and Key Financial Indicators This section outlines the company's basic information, contact details, disclosure channels, and stock overview, along with key accounting data and financial indicators for the reporting period, and explains non-recurring gains and losses I. Company's Basic Information The company's full name is Webray Security Technology Group Co., Ltd., abbreviated as Webray Security, with Quan Xiaowen as the legal representative, and its registered and office address in Beijing - Company's Chinese name: Webray Security Technology Group Co., Ltd., Chinese abbreviation: Webray Security[14] - The company's legal representative is Quan Xiaowen[14] - Company's registered and office address: Room 209, 2nd Floor, Building 9, No. 9 Shangdi 9th Street, Haidian District, Beijing[14] II. Contact Person and Information The company's Board Secretary (domestic representative for information disclosure) is Yuan Xiandeng, and the Securities Affairs Representative is Yang Yekun, with disclosed contact address and email - Board Secretary (Domestic Representative for Information Disclosure): Yuan Xiandeng[15] - Securities Affairs Representative: Yang Yekun[15] - Contact number: 010-62966096, Email: Ir_public@webray.com.cn[15] III. Brief Introduction to Changes in Information Disclosure and Document Custody Locations The company designates China Securities Journal, Shanghai Securities News, Securities Times, and Securities Daily for information disclosure, with the semi-annual report published on the Shanghai Stock Exchange website and documents available at the company's office - Designated newspapers for information disclosure: China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily[16] - Website address for semi-annual report publication: http://www.sse.com.cn/[16](index=16&type=chunk) IV. Company Stock/Depositary Receipt Overview The company's A-shares are listed on the STAR Market of the Shanghai Stock Exchange, with the stock abbreviation Webray Security and stock code 688651 - Company stock type: A-shares, Listing exchange and board: STAR Market of Shanghai Stock Exchange[18] - Stock abbreviation: Webray Security, Stock code: 688651[18] VI. Company's Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue increased by 10.98% year-on-year, but net profit attributable to shareholders expanded its loss, mainly due to increased expenses, while net cash flow from operating activities improved Key Accounting Data (January-June 2025 vs. Same Period Last Year) | Indicator | Current Period (Jan-Jun) (RMB) | Same Period Last Year (RMB) | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 105,516,308.16 | 95,079,219.78 | 10.98 | | Total Profit | -43,711,431.64 | -23,673,764.95 | / | | Net Profit Attributable to Shareholders of Listed Company | -36,408,012.47 | -18,689,647.76 | / | | Net Cash Flow from Operating Activities | -25,809,042.89 | -39,178,778.05 | / | Key Financial Indicators (January-June 2025 vs. Same Period Last Year) | Indicator | Current Period (Jan-Jun) | Same Period Last Year | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | -0.49 | -0.25 | / | | Weighted Average Return on Net Assets (%) | -3.78 | -1.90 | Decreased by 1.88 percentage points | | R&D Investment as % of Operating Revenue (%) | 40.26 | 33.48 | Increased by 6.78 percentage points | - Operating revenue increased by 10.98%, primarily due to increased revenue from cybersecurity products and services[20] - Net profit attributable to shareholders of the listed company saw an increased loss, mainly due to higher expenses[20] - The proportion of R&D investment to operating revenue significantly increased, mainly due to higher employee compensation resulting from an increase in R&D personnel[21] VIII. Non-Recurring Gains and Losses Items and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to RMB 974,334.86, primarily including government grants recognized in current profit or loss and fair value changes of financial assets, with VAT refunds classified as recurring gains Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gain/Loss Item | Amount (RMB) | | :--- | :--- | | Government grants recognized in current profit or loss | 1,000.00 | | Gains and losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and from disposal of financial assets and liabilities | 2,125,025.49 | | Other non-operating income and expenses apart from the above | -960,696.42 | | Less: Income tax impact | 190,994.57 | | Minority interest impact (after tax) | -0.36 | | Total | 974,334.86 | - VAT immediate refund of RMB 2,740,428.87 was deemed closely related to the company's normal operating activities and not included in non-recurring gains and losses[25] Section III Management Discussion and Analysis This section discusses the latest trends in the cybersecurity industry, including three-dimensional, intelligent, and practical approaches, detailing the company's core businesses, operating models, and industry position in cybersecurity, cyberspace mapping, and satellite internet security, while analyzing operational performance and identifying core competencies and risks I. Description of the Company's Industry and Main Business During the Reporting Period This section details the cybersecurity industry's new characteristics in the digital era—three-dimensional, intelligent, practical, and foundational—and introduces the company's core businesses, product systems, and operating models in cyberspace security and satellite internet security, emphasizing its leading position (I) Description of the Company's Industry During the Reporting Period The cybersecurity industry is evolving towards three-dimensional (integrated space-air-ground), intelligent (AI integration), practical (cyber warfare response), and foundational (essential for digital construction) to address complex threats and emerging technologies - The cybersecurity industry is exhibiting a 'space-air-ground integrated' three-dimensional characteristic, with the importance of satellite internet security increasingly prominent[27][28] - AI technology presents both challenges (e.g., evasive virus variants) and opportunities (e.g., unknown attack detection, security operations automation) for cybersecurity[28][29] - Cybersecurity has become a 'must-have' for digital construction, and industry maturity is a core indicator for measuring the quality of digital system development[30] (II) Company's Main Businesses The company's core businesses focus on cyberspace security and satellite internet security, offering cybersecurity products and services (detection, defense, management, and tracing), cyberspace mapping products (asset mapping, governance, attack surface management), and satellite internet security products (simulation, mapping, vulnerability detection, secure networking, encryption systems) - The company's core business areas are cyberspace security and satellite internet security, providing integrated space-air-ground security products and services[31] - Cybersecurity products and services cover three core capabilities: security detection, defense, and management, along with SaaS-based monitoring, early warning, and expert services[32][33] - Cyberspace mapping products include RayMap, RaySpace, DayDayMap, among others, with DayDayMap covering over 6 billion IPv6 data points, holding a leading position in the industry[33][34] - Satellite internet security business offers multiple products and solutions, including satellite internet simulation platforms, satellite security vulnerability detection systems, and satellite communication encryption systems[34] (III) Company's Business Model The company's profitability primarily stems from sales of self-developed cybersecurity software and hardware products and security services, employing a "base + capability model + business model" modular R&D architecture, and a sales model combining direct and channel sales - Profit model: Primarily derived from the sale of self-developed cybersecurity software and hardware products and cybersecurity services[36] - R&D model: Adopts a 'base + capability model + business model' modular approach, with RayOS as the unified operating system platform, enabling modularization, componentization, and rapid iteration[36][37] - Sales model: Combines direct sales with channel sales, primarily focusing on direct sales[39] (IV) Analysis of the Company's Industry Position and Changes As a provider of integrated space-air-ground security products, the company ranks among the top in niche markets such as vulnerability scanning and assessment systems, Web application firewall systems, and cyberspace mapping, earning multiple national and industry honors - The company is recognized by the Ministry of Industry and Information Technology as a National 'Little Giant' Enterprise specializing in niche sectors and by the Cyberspace Administration of China as a National Cybersecurity Emergency Service Support Unit[40] - The company ranks 3rd in market share for vulnerability scanning and assessment systems and 5th for Web Application Firewall (hardware WAF) systems[42] - The company's products were included in 16 major categories and 50 sub-fields of the CCSIP '2024 China Cybersecurity Industry Landscape Report' and received multiple innovation awards in the low-altitude economy sector[42] II. Discussion and Analysis of Operations The company's operating strategy has fully upgraded from informational cybersecurity to a digital big security era integrating satellite internet and AI; while operating revenue grew by 10.98%, net profit loss expanded, driven by continuous R&D, market expansion, and internal management enhancements (I) Strengthening the Leading Position of Cybersecurity Products and Continuously Investing in Satellite Internet Security Product R&D The company increased R&D investment, reinforced its cybersecurity product advantages, achieved breakthroughs in satellite internet security with a "4 products + 1 service" matrix, and optimized its cyberspace mapping system by integrating AI large models for enhanced asset retrieval efficiency - The company launched its satellite internet security solution, forming a '4 products + 1 service' product matrix, covering in-orbit security, low-altitude unmanned aerial vehicle security protection, and maritime vessel network access security[47] - The Internet Space Asset Detection Platform (DayDayMap) innovatively integrates AI large model capabilities, creating a natural language-driven intelligent interaction mode for asset retrieval, significantly improving mapping data retrieval quality and efficiency[48] - The company released WAF product V9, launched the all-scenario vulnerability scanning 'Little Cannon' RayScan V8, and participated in the construction of network identity authentication platforms[48] (II) Building a Comprehensive Sales System, Focusing on High-Value Sector Clients The company established a sales force with 6 system departments and 8 regions, targeting key clients in public security, regulation, energy, and commercial aerospace, achieving over 20% year-on-year order growth, and expanding internationally through a new international business department and a strategic partnership with China Unicom Saudi Arabia - The company established a sales force layout with 6 system departments and 8 regions, precisely reaching regional and critical infrastructure clients[50] - The company achieved significant progress in public security, energy, and commercial aerospace, successfully winning a cybersecurity business order exceeding RMB 10 million from an energy enterprise[51] - At the end of the reporting period, the company's overall order growth rate exceeded 20% year-on-year[51] - The company established an international business department and formed a strategic partnership with China Unicom Saudi Arabia, expecting international business to achieve a breakthrough from zero to one within the year[52] (III) Deepening Internal Management System Construction, Promoting Dual Improvement in Operational Quality and Efficiency Through talent upgrades (recruiting top technical experts and versatile sales professionals), digital transformation (self-developed business management systems and integrated financial platforms), and refined budget management, the company effectively enhanced organizational vitality, per capita output, and operational results - The company focused on talent upgrades in R&D and sales, introducing top industry technical experts and experienced versatile sales professionals[52] - The company increased investment in digital transformation, self-developed business management systems to enable full-link data flow, and developed an integrated business and financial management platform[53] - Through budget management and digital tools, the company achieved refined cost control and resource allocation, steadily increasing per capita output[53] III. Analysis of Core Competencies During the Reporting Period The company's core competencies include leading technological advantages (vulnerability detection, application security defense, cyberspace mapping, satellite internet security), strong R&D capabilities (three-tier R&D team, numerous patents and software copyrights), excellent scenario-based security capabilities (solutions for public security, power energy, financial technology), and a rapid-response service system (nationwide network, 24/7 call center) (I) Core Competency Analysis The company possesses leading technologies in vulnerability detection, application security defense, cyberspace mapping, and satellite internet security, serving as the CICC Cyberspace Mapping Professional Committee's affiliated unit, ranking third in vulnerability detection and top five in hardware WAF market share, supported by strong R&D, scenario-based solutions, and a nationwide rapid-response service system - The company possesses leading technological advantages in vulnerability and weakness detection, application security defense, cyberspace mapping, and satellite internet security[55] - The company is the affiliated unit of the CICC Cyberspace Mapping Professional Committee, ranking third in domestic market share for vulnerability detection products and consistently among the top five for application defense technology-related products[55] - The company has a sound three-tier R&D team structure, with 49 invention patents, 176 computer software copyrights, and 241 R&D personnel as of June 30, 2025[56] - The company has developed multiple standardized products in public security, power energy, financial technology, operators, and education sectors, gaining widespread recognition[57] - The company has a professional technical service department, established a nationwide service network, and provides 7*24-hour rapid response services[57] (III) Core Technologies and R&D Progress The company holds 47 core technologies across five major systems (vulnerability detection, application security defense, tracing, cyberspace mapping, satellite internet security) and general basic technologies, all self-developed. During the reporting period, new core technologies were added in application security defense and cyberspace mapping, leading to the release of new products like the next-generation Web Application Firewall and satellite internet mapping system - The company possesses 47 core technologies, including five major technical systems: vulnerability and weakness detection, application security defense, tracing management, cyberspace mapping, and satellite internet security, along with basic general technologies, all developed independently[58] - The application security defense technology system added 'API Protocol and Component Identification Technology Based on Full Traffic Analysis' and 'Billion-Level Log Real-time Defense System Technology Based on DPDK+ClickHouse'[60] - The cyberspace mapping system added 'Multi-Domain Heterogeneous Data Fusion Governance and Intelligent Analysis Technology'[63] - The company released new products including the next-generation Web Application Firewall, API Security Protection System, Integrated Vulnerability Assessment System V8, Centralized Vulnerability Scanning Management Platform, and Satellite Internet Mapping System[65][66][67][68] Intellectual Property Acquisition (New during Reporting Period) | IP Type | Applications (units) | Acquired (units) | | :--- | :--- | :--- | | Invention Patents | 8 | 1 | | Software Copyrights | 14 | 14 | | Other | 2 | 0 | | Total | 24 | 15 | R&D Investment (January-June 2025 vs. Same Period Last Year) | Indicator | Current Period (RMB) | Same Period Last Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 40,556,643.48 | 30,354,740.26 | 33.61 | | Capitalized R&D Investment | 1,920,206.36 | 1,480,122.49 | 29.73 | | Total R&D Investment | 42,476,849.84 | 31,834,862.75 | 33.43 | | Total R&D Investment as % of Operating Revenue (%) | 40.26 | 33.48 | Increased by 6.78 percentage points | - Total R&D investment increased by 33.43% year-on-year, primarily due to increased employee compensation resulting from an increase in R&D personnel during the current period[73] R&D Personnel (January-June 2025 vs. Same Period Last Year) | Indicator | Current Period | Same Period Last Year | | :--- | :--- | :--- | | Number of Company R&D Personnel (persons) | 241 | 213 | | R&D Personnel as % of Total Company Personnel (%) | 36.68 | 37.23 | | Total R&D Personnel Compensation (RMB 10,000) | 3,263.28 | 2,535.72 | | Average R&D Personnel Compensation (RMB 10,000) | 13.54 | 13.12 | IV. Risk Factors The company faces core competency risks (technological innovation, talent loss), operational risks (seasonal revenue, product quality liability), industry risks (fragmented market, industry restructuring), financial risks (accounts receivable recovery), and other risks such as changes in tax preferential policies - Core competency risk: The cybersecurity industry experiences rapid technological iteration, posing risks of new product/technology R&D failure and shortage or loss of core technical personnel[82][83] - Operational risk: The company's revenue exhibits seasonality, with a higher proportion in the fourth quarter; product or service defects may lead to administrative liability and civil compensation risks[83] - Industry risk: The cybersecurity market is fragmented, with continuous industry restructuring and integration, and the company faces competitive gaps compared to comprehensive vendors[84] - Financial risk: As of the end of the reporting period, the book value of accounts receivable was RMB 228.83 million, accounting for 20.63% of total assets, posing a risk of bad debt losses[84] - Other risks: Adjustments to VAT preferential tax policies for software enterprises could negatively impact the company's profit levels[85][86] V. Key Operating Performance During the Reporting Period During the reporting period, the company achieved total operating revenue of RMB 105.5163 million, a 10.98% year-on-year increase, but net profit attributable to shareholders was -RMB 36.4080 million. While main business revenue increased, operating costs, selling expenses, and R&D expenses also grew. Asset and liability structures changed, with increases in monetary funds and notes receivable, and decreases in short-term borrowings and notes payable. The company's investment activities primarily involved redemption of wealth management products and equity investments (I) Analysis of Main Business The company's operating revenue increased by 10.98% year-on-year, primarily due to increased revenue from cybersecurity products and services; however, operating costs, selling expenses, and R&D expenses also grew significantly, leading to an expanded loss in total profit and net profit Analysis of Changes in Financial Statement Items (January-June 2025 vs. Same Period Last Year) | Item | Current Period (RMB) | Same Period Last Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 105,516,308.16 | 95,079,219.78 | 10.98 | | Operating Cost | 30,396,149.66 | 22,588,319.33 | 34.57 | | Selling Expenses | 65,698,776.93 | 56,161,042.55 | 16.98 | | Administrative Expenses | 17,064,703.08 | 18,531,199.61 | -7.91 | | Financial Expenses | -577,902.88 | -4,601,626.51 | / | | R&D Expenses | 40,556,643.48 | 30,354,740.26 | 33.61 | | Net Cash Flow from Operating Activities | -25,809,042.89 | -39,178,778.05 | / | | Net Cash Flow from Investing Activities | 81,756,636.51 | -85,850,049.02 | 195.23 | | Net Cash Flow from Financing Activities | -10,108,019.06 | -20,497,281.42 | / | - Operating revenue increased by 10.98%, primarily due to increased revenue from cybersecurity products and services[88] - Selling expenses increased by 16.98%, primarily due to increased employee compensation resulting from an increase in sales personnel during the current period[88] - R&D expenses increased by 33.61%, primarily due to increased employee compensation resulting from an increase in R&D personnel during the current period[88] (III) Analysis of Assets and Liabilities At the end of the reporting period, the company's monetary funds and notes receivable significantly increased due to higher sales collections and bill payments, while short-term borrowings and notes payable decreased, and employee compensation payable increased, reflecting debt repayment, changes in procurement settlement, and personnel compensation growth Changes in Assets and Liabilities (Period-end vs. End of Last Year) | Item Name | Current Period-end (RMB) | Current Period-end as % of Total Assets (%) | Last Year-end (RMB) | Last Year-end as % of Total Assets (%) | Change from Last Year-end (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 117,042,505.59 | 10.55 | 71,836,572.36 | 6.08 | 62.93 | | Notes Receivable | 13,688,991.34 | 1.23 | 7,516,920.94 | 0.64 | 82.11 | | Short-term Borrowings | 11,028,964.77 | 0.99 | 17,166,383.88 | 1.45 | -35.75 | | Notes Payable | 2,576,814.00 | 0.23 | 9,923,849.19 | 0.84 | -74.03 | | Employee Compensation Payable | 19,433,266.82 | 1.75 | 13,802,157.82 | 1.17 | 40.80 | - Monetary funds increased by 62.93%, primarily due to increased sales collections and redemption of wealth management products during the current period[90][91] - Notes receivable increased by 82.11%, primarily due to increased customer payments using bills for goods[91] - Short-term borrowings decreased by 35.75%, primarily due to repayment of some borrowings[91] (IV) Analysis of Investment Status The company's derivative investments for the current period amounted to RMB 10 million, an 11.11% increase year-on-year. At period-end, trading financial assets were RMB 175.1084 million, other debt investments were RMB 339.6399 million, and other equity instrument investments were RMB 61.8161 million Derivative Investment (January-June 2025 vs. Same Period Last Year) | Indicator | Investment Amount in Reporting Period (RMB) | Investment Amount in Same Period Last Year (RMB) | Change | | :--- | :--- | :--- | :--- | | Derivative Investments | 10,000,000.00 | 9,000,000.00 | 11.11% | Period-end Fair Value Measured Financial Assets | Asset Category | Period-end Amount (RMB) | | :--- | :--- | | Trading Financial Assets | 175,108,395.59 | | Other Debt Investments | 339,639,903.44 | | Other Equity Instrument Investments | 61,816,107.08 | | Total | 576,564,406.11 | (VI) Analysis of Major Holding and Participating Companies The company's main subsidiaries, Beijing Webray Saiyun Technology Co., Ltd. and Beijing Tianyu Yunan Technology Co., Ltd., both incurred losses during the reporting period, with net profits of -RMB 16.7895 million and -RMB 5.8881 million, respectively Operating Performance of Major Subsidiaries (January-June 2025) | Company Name | Main Business | Operating Revenue (RMB 10,000) | Operating Profit (RMB 10,000) | Net Profit (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | | Beijing Webray Saiyun Technology Co., Ltd. | R&D and sales of public security products | 973.85 | -1,672.76 | -1,678.95 | | Beijing Tianyu Yunan Technology Co., Ltd. | R&D and sales of satellite communication and cryptography-related products | 284.77 | -807.17 | -588.81 | Section IV Corporate Governance, Environment, and Society This section discloses changes in the company's directors, senior management, and core technical personnel, including the election of Ren Gaofeng as an employee representative director, confirms no semi-annual profit distribution or capital reserve capitalization plan, and details the implementation of the 2024 employee stock ownership plan I. Changes in Company Directors, Senior Management, and Core Technical Personnel The company's third board of directors' term expired, and Ren Gaofeng was elected as an employee representative director for the fourth board; there were no changes in core technical personnel during the reporting period - Ren Gaofeng was elected as an employee representative director[99] - The company held an employee representative meeting on May 19, 2025, to complete the election of the employee representative director[99] - There were no changes in the company's core technical personnel during the reporting period[99] II. Profit Distribution or Capital Reserve Capitalization Plan The company has no profit distribution or capital reserve capitalization plan for this semi-annual period - The company's proposed semi-annual profit distribution plan and capital reserve capitalization plan: Not applicable[99] III. Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company's 2024 employee stock ownership plan completed non-trading transfer of 450,000 shares, representing 0.60% of total share capital, at RMB 23.95 per share in December 2024, with a 48-month duration and three unlocking phases (40%, 30%, 30%) - The company's 2024 employee stock ownership plan completed the non-trading transfer of 450,000 shares on December 5, 2024[101] - The stock ownership plan holds 0.60% of the company's total share capital, with a transfer price of RMB 23.95 per share[101] - The stock ownership plan has a duration of 48 months, with three unlocking phases at 12, 24, and 36 months, and unlocking ratios of 40%, 30%, and 30% respectively[101] Section V Significant Matters This section details the fulfillment of commitments by the company and its related parties, including share lock-ups, avoidance of horizontal competition, related-party transactions, share price stabilization, fraudulent issuance, and use of raised funds. It also covers the absence of major lawsuits, arbitrations, or illegal guarantees, the overall progress of raised fund utilization, delays in some projects, and the use of over-raised funds for share repurchases and working capital, as well as cash management of idle funds I. Fulfillment of Commitments The company's controlling shareholder, actual controller, directors, supervisors, senior management, and other shareholders have strictly fulfilled all commitments related to the initial public offering, including share lock-ups, avoidance of horizontal competition, standardized related-party transactions, share price stabilization, fraudulent issuance repurchase, and use of raised funds, with no violations during the reporting period - Controlling shareholder and actual controller Quan Xiaowen committed not to transfer shares within 36 months from the listing date and to sell shares at a price no lower than the offering price within 2 years after the lock-up period expires[104] - The company's controlling shareholder, actual controller, and their concerted parties committed to avoid horizontal competition and not engage in business activities identical, similar, or competitive with the company's existing operations[108] - The company and all directors, supervisors, and senior management committed to standardize related-party transactions, adhering to market fairness, impartiality, and openness principles, to avoid harming the interests of the company and other shareholders[108][109][110] - The company, its controlling shareholder, directors, supervisors, and senior management committed to take measures such as share buybacks or increased holdings to stabilize the share price if it falls below net asset value[111][112] - The company committed to standardize the use of raised funds, accelerate the construction progress of investment projects, and establish a sound investor return mechanism[113][114] X. Significant Related-Party Transactions During the reporting period, the company had a procurement service transaction of RMB 18,000.00 with related party Chen Yubin, with no significant progress or changes in other related-party transactions, asset acquisitions/disposals, joint external investments, or related-party creditor-debtor relationships - During the reporting period, the company procured services from related party Chen Yubin for RMB 18,000.00[434] - During the reporting period, the company had no significant related-party transactions previously disclosed in interim announcements with no subsequent progress or changes[124][125] XI. Significant Contracts and Their Fulfillment During the reporting period, the company had no trusteeship, contracting, or leasing matters, nor any significant guarantees or other major contracts - During the reporting period, the company had no trusteeship, contracting, or leasing matters[125] - During the reporting period, the company had no significant guarantees[126] - During the reporting period, the company had no other significant contracts[126] XII. Explanation of Progress in Use of Raised Funds The company's initial public offering raised a total of RMB 753.312 million, with a net amount of RMB 672.3002 million. As of the end of the reporting period, cumulative investment of raised funds was RMB 257.2813 million, representing 38.27% of the total. Some R&D projects experienced delays, but over-raised funds were partially used for share repurchases and permanent replenishment of working capital. Idle raised funds were also managed through cash management, with a period-end balance of RMB 410 million Overall Use of Raised Funds | Source of Raised Funds | Total Raised Funds (RMB 10,000) | Net Raised Funds (RMB 10,000) | Total Investment Pledged in Prospectus (RMB 10,000) | Total Over-Raised Funds (RMB 10,000) | Cumulative Investment of Raised Funds as of Period-end (RMB 10,000) | Cumulative Progress of Raised Funds Investment as of Period-end (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | 75,331.20 | 67,230.02 | 56,511.77 | 10,718.25 | 25,728.13 | 38.27 | - The overall progress of the Industrial Internet Security Project, Cyberspace Mapping Project, and R&D Center Construction Project has been delayed, primarily due to factors such as the macroeconomic environment, demand fluctuations, and changes in relevant policies[130] Detailed Use of Over-Raised Funds | Purpose | Total Over-Raised Funds Planned for Investment (RMB 10,000) | Cumulative Investment of Over-Raised Funds as of Period-end (RMB 10,000) | Cumulative Progress of Over-Raised Funds Investment as of Period-end (%) | | :--- | :--- | :--- | :--- | | Share Repurchase | 1,500.00 | 1,205.84 | 80.39 | | Permanent Replenishment of Working Capital | 3,200.00 | 3,200.00 | 100.00 | | Other (Unused) | 6,018.25 | 0.00 | 0.00 | | Total | 10,718.25 | 4,405.84 | 41.11 | - The company has completed its share repurchase plan, with RMB 12.0584 million used for share repurchases[132] - The company used idle raised funds for cash management, with a board-approved limit of RMB 450 million, and a period-end cash management balance of RMB 410 million[136] Section VI Share Changes and Shareholder Information This section discloses that the company's total ordinary share capital and share structure remained unchanged during the reporting period, though some strategically placed restricted shares became tradable post-period. It also details the top ten shareholders and top ten unrestricted shareholders as of the period-end, and outlines changes in shareholdings of directors, senior management, and core technical personnel I. Changes in Share Capital During the reporting period, the company's total ordinary share capital and share structure remained unchanged; however, after the reporting period, 944,000 strategically placed restricted shares from the initial public offering became tradable on July 28, 2025, without impacting financial indicators like EPS or net assets per share - During the reporting period, the company's total ordinary share capital and share structure remained unchanged[138] - On July 28, 2025, 944,000 strategically placed restricted shares from the company's initial public offering became tradable, with a lock-up period of 24 months[139] - This change in share capital does not impact financial indicators such as earnings per share or net assets per share[139] II. Shareholder Information As of the end of the reporting period, the company had 4,105 ordinary shareholders. Among the top ten shareholders, Quan Xiaowen held 24.44%, Beijing Webray Xingtou Network Technology Co., Ltd. held 8.10%, and Liu Xiaowei held 8.06%. Quan Xiaowen, Liu Xiaowei, and Wang Runhe are concerted parties, while Webray Xingtou, Webray Gaoke, and Xinyu Wangyun are all controlled by Quan Xiaowen - Total number of ordinary shareholders as of the end of the reporting period: 4,105[140] Top Ten Shareholders' Holdings (as of Period-end) | Shareholder Name | Period-end Shareholding (shares) | Proportion (%) | Number of Restricted Shares Held (shares) | | :--- | :--- | :--- | :--- | | Quan Xiaowen | 18,424,712 | 24.44 | 18,424,712 | | Beijing Webray Xingtou Network Technology Co., Ltd. | 6,110,000 | 8.10 | 6,110,000 | | Liu Xiaowei | 6,076,510 | 8.06 | 6,076,510 | | Han Weidong | 3,531,335 | 4.68 | 3,531,335 | | Beijing Webray Gaoke Equity Investment Partnership (Limited Partnership) | 2,390,439 | 3.17 | 2,390,439 | | Xinyu Webray Wangyun Technology Service Partnership (Limited Partnership) | 1,790,000 | 2.37 | 1,790,000 | | Agricultural Bank of China Co., Ltd. - Great Wall Jiujia Innovation Growth Flexible Allocation Mixed Securities Investment Fund | 1,500,000 | 1.99 | 0 | | Wang Runhe | 1,408,886 | 1.87 | 1,408,886 | | Chen Siqiang | 1,312,692 | 1.74 | 1,312,692 | | Wei Chunmei | 1,202,000 | 1.59 | 0 | - Quan Xiaowen, Liu Xiaowei, and Wang Runhe are concerted parties; Webray Xingtou, Webray Gaoke, and Xinyu Wangyun are all enterprises controlled by the controlling shareholder and actual controller, Quan Xiaowen[144][146] III. Directors, Senior Management, and Core Technical Personnel During the reporting period, the shareholdings of the company's directors, senior management, and core technical personnel remained largely unchanged, with only employee representative director Ren Gaofeng acquiring 22,710 shares through centralized bidding Changes in Shareholdings of Directors, Supervisors, Senior Management, and Core Technical Personnel (During Reporting Period) | Name | Position | Beginning of Period Shareholding (shares) | End of Period Shareholding (shares) | Change in Shareholding During Reporting Period (shares) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Quan Xiaowen | Chairman, Core Technical Personnel | 18,424,712 | 18,424,712 | 0 | / | | Han Weidong | Director, Deputy General Manager | 3,531,335 | 3,531,335 | 0 | / | | Chen Siqiang | Director, Core Technical Personnel | 1,312,692 | 1,312,692 | 0 | / | | Ren Gaofeng | Employee Representative Director | 0 | 22,710 | 22,710 | Acquired through centralized bidding | | Yuan Xiandeng | Deputy General Manager, Board Secretary | 0 | 0 | 0 | / | | Fang Wei | Deputy General Manager, Core Technical Personnel | 0 | 0 | 0 | / | | Li Minfeng | CFO | 0 | 0 | 0 | / | | Zhang Feng | Core Technical Personnel | 0 | 0 | 0 | / | | Liu Tianxiang | Core Technical Personnel | 0 | 0 | 0 | / | Section VII Bond-Related Information This section confirms that the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments, nor any convertible corporate bonds, during the reporting period I. 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 - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[151] II. Convertible Corporate Bonds During the reporting period, the company had no convertible corporate bonds - During the reporting period, the company had no convertible corporate bonds[151] Section VIII Financial Report This section presents the company's unaudited consolidated and parent company financial statements for the first half of 2025, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed disclosures on company basics, financial statement preparation basis, significant accounting policies and estimates, taxes, notes to consolidated financial statements, R&D expenses, changes in consolidation scope, interests in other entities, government grants, financial instrument risks, fair value disclosures, related parties and transactions, share-based payments, commitments and contingencies, post-balance sheet events, other significant matters, and supplementary information I. Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[4] II. Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively reflecting the company's financial position, operating results, and cash flows at the end of the reporting period Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were RMB 1,109,355,719.95, a 6.14% decrease from the beginning of the period, with total liabilities of RMB 151,504,285.73 and total owners' equity of RMB 957,851,434.22 Key Consolidated Balance Sheet Data (as of June 30, 2025) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Assets | 1,109,355,719.95 | 1,181,922,645.66 | | Total Liabilities | 151,504,285.73 | 185,715,451.16 | | Total Equity Attributable to Parent Company Owners | 945,514,927.27 | 981,662,633.09 | Consolidated Income Statement For January-June 2025, the company's consolidated total operating revenue was RMB 105,516,308.16, a 10.98% year-on-year increase. Total profit was -RMB 43,711,431.64, net profit was -RMB 38,616,066.93, and net profit attributable to parent company shareholders was -RMB 36,408,012.47, indicating an expanded loss year-on-year Key Consolidated Income Statement Data (January-June 2025) | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 105,516,308.16 | 95,079,219.78 | | Total Operating Costs | 154,034,905.99 | 123,922,639.59 | | Total Profit | -43,711,431.64 | -23,673,764.95 | | Net Profit | -38,616,066.93 | -18,689,647.76 | | Net Profit Attributable to Parent Company Shareholders | -36,408,012.47 | -18,689,647.76 | | Basic Earnings Per Share (RMB/share) | -0.49 | -0.25 | Consolidated Cash Flow Statement For January-June 2025, net cash flow from operating activities was -RMB 25,809,042.89, a narrowed loss compared to the previous year. Net cash flow from investing activities turned positive at RMB 81,756,636.51, and net cash flow from financing activities was -RMB 10,108,019.06 Key Consolidated Cash Flow Statement Data (January-June 2025) | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -25,809,042.89 | -39,178,778.05 | | Net Cash Flow from Investing Activities | 81,756,636.51 | -85,850,049.02 | | Net Cash Flow from Financing Activities | -10,108,019.06 | -20,497,281.42 | | Net Increase in Cash and Cash Equivalents | 45,839,574.56 | -145,526,108.49 | III. Company's Basic Information The company, established on December 7, 2010, as a joint-stock company with Quan Xiaowen as legal representative, primarily operates in cyberspace security, focusing on R&D, production, and sales of cybersecurity products and related services, with Quan Xiaowen as the controlling shareholder and ultimate controller; financial statements were approved by the board on August 29, 2025 - The company was established on December 7, 2010, as a joint-stock company, with Quan Xiaowen as the legal representative[184] - The company's main business activities are concentrated in the cyberspace security sector, primarily engaging in the R&D, production, and sales of cybersecurity products, and providing related cybersecurity services[184] - The company's controlling shareholder is a natural person, and the ultimate controlling party is Quan Xiaowen[184] IV. Basis of Financial Statement Preparation The Group's financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations of the China Securities Regulatory Commission, presented on a going concern basis - The Group's financial statements are prepared in accordance with the 'Accounting Standards for Business Enterprises' and the China Securities Regulatory Commission's 'Rules for the Preparation of Information Disclosure by Companies Issuing Securities to the Public No. 15—General Provisions on Financial Reports' (Revised 2023)[185] - These financial statements are presented on a going concern basis, with no significant doubts or circumstances identified regarding the ability to continue as a going concern[186] V. Significant Accounting Policies and Accounting Estimates This section details the company's specific accounting policies and estimates for financial instruments, inventories, contract assets, long-term equity investments, fixed assets, construction in progress, intangible assets, long-term deferred expenses, contract liabilities, employee compensation, provisions, share-based payments, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases, also explaining the materiality criteria - The company has formulated several specific accounting policies and estimates for transactions and events, such as revenue recognition, based on its actual production and operating characteristics and relevant enterprise accounting standards[186] - Financial assets are classified as measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss[202] - Revenue recognition principle is to recognize revenue when performance obligations in a contract are satisfied, i.e., when the customer obtains control of the related goods or services[254] - R&D expenditures are distinguished between research phase expenditures and development phase expenditures; research phase expenditures are recognized in current profit or loss, while development phase expenditures are recognized as intangible assets when conditions are met[240] VI. Taxes The company's main taxes include VAT (13%, 6%, 5%), Urban Maintenance and Construction Tax (7%), Education Surcharge (3%), and Local Education Surcharge (2%). The company and some subsidiaries, as high-tech enterprises, enjoy a 15% preferential corporate income tax rate Main Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 13%、6%、5% | | Urban Maintenance and Construction Tax | 7% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Corporate Income Tax | 25%、15% | - The company and its subsidiaries, Beijing Webray Saiyun Technology Co., Ltd. and Beijing Tianyu Yunan Technology Co., Ltd., are recognized as high-tech enterprises, enjoying a 15% preferential corporate income tax rate[275][276][277] - For self-developed and produced software products, the company implements an immediate VAT refund policy for the portion of actual tax burden exceeding 3%[275] VII. Notes to Consolidated Financial Statement Items This section provides detailed notes on various consolidated financial statement items, including assets, liabilities, owners' equity, and profit/loss components, such as monetary funds, notes and accounts receivable, inventories, contract assets, long-term equity investments, fixed assets, intangible assets, goodwill, long-term deferred expenses, deferred income tax assets/liabilities, short-term borrowings, notes and accounts payable, contract liabilities, employee compensation payable, taxes payable, other payables, lease liabilities, deferred income, share capital, capital reserves, treasury stock, other comprehensive income, surplus reserves, undistributed profits, operating revenue and costs, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, fair value change gains, asset disposal gains, credit impairment losses, asset impairment losses, non-operating income and expenses, income tax expenses, and cash flow statement items Composition of Monetary Funds (Period-end Balance) | Item | Period-end Balance (RMB) | | :--- | :--- | | Bank Deposits | 65,563,312.50 | | Other Monetary Funds | 51,479,193.09 | | Total | 117,042,505.59 | Aging Distribution of Accounts Receivable (Period-end Book Balance) | Aging | Period-end Book Balance (RMB) | | :--- | :--- | | Within 1 year (inclusive) | 155,470,983.49 | | 1 to 2 years | 54,943,725.14 | | 2 to 3 years | 45,266,196.34 | | Over 3 years | 15,441,412.31 | | Total | 271,122,317.28 | Composition of R&D Expenses (Current Period Occurrence) | Item | Current Period Occurrence (RMB) | | :--- | :--- | | Employee Compensation | 30,543,119.87 | | Technical Service Fees | 2,288,994.31 | | Site Usage Fees | 1,652,078.91 | | Depreciation and Amortization | 3,967,401.53 | | Other | 2,105,048.86 | | Total | 40,556,643.48 | Composition of Investment Income (Current Period Occurrence) | Item | Current Period Occurrence (RMB) | | :--- | :--- | | Interest income from other debt investments held during the period | 4,313,111.10 | | Investment income from disposal of trading financial assets | 778,545.27 | | Investment income from disposal of other debt investments | 278,164.79 | | Total | 5,369,821.16 | VIII. R&D Expenditures During the reporting period, the company's total R&D investment was RMB 42,476,849.84, comprising RMB 40,556,643.48 in expensed R&D and RMB 1,920,206.36 in capitalized R&D, primarily consisting of employee compensation, with some development expenditures meeting capitalization criteria R&D Expenditures by Nature of Expense (Current Period Occurrence) | Item | Current Period Occurrence (RMB) | | :--- | :--- | | Employee Compensation | 32,463,326.23 | | Technical Service Fees | 2,288,994.31 | | Site Usage Fees | 1,652,078.91 | | Depreciation and Amortization | 3,967,401.53 | | Other | 2,105,048.86 | | Total | 42,476,849.84 | | Of which: Expensed R&D Expenditures | 40,556,643.48 | | Capitalized R&D Expenditures | 1,920,206.36 | - Current period capitalized R&D expenditures primarily include development expenditures for Network Threat Intelligence Attack Blocking System V9.0 and Network Asset Security Governance System V6.0[408] IX. Changes in Consolidation Scope During the reporting period, the company experienced no changes in its consolidation scope due to non-same-control business combinations, same-control business combinations, reverse acquisitions, or disposal of subsidiaries - During the reporting period, the company had no changes in consolidation scope due to non-same-control business combinations, same-control business combinations, reverse acquisitions, or disposal of subsidiaries[409][410] X. Interests in Other Entities This section outlines the company's group structure, including seven subsidiaries such as Webray Security (Shanghai) Network Security Technology Co., Ltd. and Beijing Webray Saiyun Technology Co., Ltd., all established by the company. Beijing Tianyu Yunan Technology Co., Ltd. is a significant non-wholly-owned subsidiary with a 37.5% minority interest, incurring a loss of -RMB 2,208,054.46 attributable to minority shareholders in the current period Composition of the Enterprise Group (Selected Subsidiaries) | Subsidiary Name | Main Operating Location | Registered Capital (RMB) | Shareholding (%) | | :--- | :--- | :--- | :--- | | Webray Security (Shanghai) Network Security Technology Co., Ltd. | Shanghai | 5,100,000.00 | 100 | | Beijing Webray Saiyun Technology Co., Ltd. | Beijing | 10,000,000.00 | 100 | | Beijing Tianyu Yunan Technology Co., Ltd. | Beijing | 8,000,000.00 | 62.5 | - Beijing Tianyu Yunan Technology Co., Ltd. is a significant non-wholly-owned subsidiary, with a minority shareholder stake of 37.5%[414] - Current period profit or loss attributable to minority shareholders of Beijing Tianyu Yunan Technology Co., Ltd. was -RMB 2,208,054.46, with a period-end minority interest balance of RMB 12,336,506.95[414] XI. Government Grants As of the end of the reporting period, the company's deferred income included RMB 1,500,000.00 in income-related government grants. Total government grants recognized in current profit or loss for the period amounted to RMB 2,741,428.87, primarily from VAT immediate refunds Liability Items Involving Government Grants (Period-end Balance) | Financial Statement Item | Beginning of Period Balance (RMB) | Period-end Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | | Deferred Income | 1,500,000.00 | 1,500,000.00 | Income Related | Government Grants Recognized in Current Profit or Loss (Current Period Occurrence) | Type | Current Period Occurrence (RMB) | Prior Period Occurrence (RMB) | | :--- | :--- | :--- | | Income Related | 2,741,428.87 | 7,930,086.58 | | Total | 2,741,428.87 | 7,930,086.58 | XII. Risks Related to Financial Instruments The company faces market risk (interest rate risk), credit risk, and liquidity risk, which it manages by controlling the fixed-to-floating interest rate ratio of interest-bearing debt, assessing customer creditworthiness and monitoring credit records, and ensuring sufficient funding liquidity while monitoring bank borrowing utilization - The company faces market risk (interest rate risk), credit risk, and liquidity risk[421] - Interest rate risk primarily arises from interest-bearing debts such as bank borrowings and bonds payable, which the company manages by determining the relative proportion of fixed-rate and floating-rate contracts[423] - Credit risk primarily arises from bank deposits, notes receivable, accounts receivable, other receivables, etc., which the company controls by assessing customer creditworthiness and regularly monitoring credit records[424] - Liquidity risk is managed by ensuring sufficient funding liquidity, regularly analyzing liability structure and maturity, and monitoring bank borrowing utilization[425] XIII. Disclosure of Fair Value At period-end, the company's total assets continuously measured at fair value amounted to RMB 576,564,406.11, mainly comprising trading financial assets, other debt investments, and other equity instrument investments. Trading financial assets (wealth management products) are measured using Level 3 fair value, while other debt and equity instrument investments use Level 1 fair value Period-end Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 1 Fair Value Measurement (RMB) | Level 3 Fair Value Measurement (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | | Trading Financial Assets | | 175,108,395.59 | 175,108,395.59 | | Other Debt Investments | 339,639,903.44 | | 339,639,903.44 | | Other Equity Instrument Investments | 61,816,107.08 | | 61,816,107.08 | | Total Assets Continuously Measured at Fair Value | 401,456,010.52 | 175,108,395.59 | 576,564,406.11 | - Trading financial assets (wealth management products) are measured using Level 3 fair value[427] - Other debt investments and other equity instrument investments are measured using Level 1 fair value[428] - There are no significant differences between the carrying amounts and fair values of financial assets and liabilities measured at amortized cost[430] XIV. Related Parties and Related-Party Transactions The company's related parties include close family members of directors, supervisors, and senior management, as well as subsidiary executives. During the reporting period, the company procured services from related party Chen Yubin for RMB 18,000.00 and paid operating lease rent of RMB 90,000.00 to related party Quan Xiaorong. At period-end, the company had other payables totaling RMB 3,096,500.00 to related parties Zheng Zhong and Cheng Xin Other Related Party Information | Other Related Party Name | Relationship with the Company | | :--- | :--- | | Chen Yubin | Close family member of director, supervisor, or senior management | | Quan Xiaorong | Close family member of director, supervisor, or senior management | | Zheng Zhong | Subsidiary executive and minority shareholder | | Cheng Xin | Spouse of Zheng Zhong | - During the current period, the company procured services from related party Chen Yubin for RMB 18,000.00[434] - During the current period, the company, as lessee, paid operating lease rent of RMB 90,000.00 to related party Quan Xiaorong[437] Amounts Payable to Related Parties (Period-end Balance) | Item Name | Related Party | Period-end Book Balance (RMB) | | :--- | :--- | :--- | | Other Payables | Zheng Zhong | 596,500.00 | | Other Payables | Cheng Xin | 2,500,000.00 | | Total | | 3,096,500.00 | Key Management Personnel Compensation | Item | Current Period Occurrence (RMB) | Prior Period Occurrence (RMB) | | :--- | :--- | :--- | | Key Management Personnel Compensation | 3,501,561.26 | 4,076,477.73 | XV. Share-Based Payments The cumulative amount of equity-settled share-based payments recognized in capital reserves was RMB 24,569,108.52. The equity-settled share-based payment expense recognized in the current period was RMB 318,678.69, primarily for management personnel - The cumulative amount of equity-settled share-based payments recognized in capital reserves was RMB 24,569,108.52[44