新晨科技(300542) - 2025 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions Important Notice The Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility, and the company plans no cash dividends, bonus shares, or capital increase from the capital reserve - The Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility[3] - The company's responsible person Kang Lu, head of accounting Quan Dongyan, and head of accounting department Lan Lin declare the financial report is true, accurate, and complete[3] - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital[4] Table of Contents This section lists the structured table of contents for the semi-annual report, covering company operations, finance, governance, and significant matters - The report comprises eight main chapters, covering comprehensive information on company operations, finance, governance, and significant matters[6] Definitions This section provides definitions for common terms used in the report, including the company name, reporting period, currency units, and key IT concepts - The "Reporting Period" refers to January 1, 2025, to June 30, 2025[13] - Key information technology terms such as IT, cloud computing, blockchain, big data, and BaaS are defined in the report[13] Company Profile and Key Financial Indicators Company Basic Information The company's stock abbreviation is "Xinchen Technology" (stock code 300542), listed on the Shenzhen Stock Exchange, with no changes in registered address or contact information during the reporting period Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Xinchen Technology | | Stock Code | 300542 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Kang Lu | | Board Secretary | Wei Feng | - The company's registered address, office address, website, and email address remained unchanged during the reporting period[17] Key Accounting Data and Financial Indicators During the reporting period, the company's operating revenue increased by 9.28%, net loss attributable to shareholders narrowed by 9.25%, and net cash flow from operating activities improved by 20.64%, while total assets and net assets attributable to shareholders decreased Key Accounting Data and Financial Indicators (Current Period vs. Prior Year) | Indicator | Current Period (million Yuan) | Prior Year (million Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 460.23 | 421.16 | 9.28% | | Net Profit Attributable to Shareholders of Listed Company | -12.99 | -14.31 | 9.25% | | Net Profit Attributable to Shareholders of Listed Company After Non-Recurring Gains and Losses | -14.28 | -23.54 | 39.33% | | Net Cash Flow from Operating Activities | -246.67 | -310.82 | 20.64% | | Basic Earnings Per Share (Yuan/share) | -0.04 | -0.05 | 20.00% | | Diluted Earnings Per Share (Yuan/share) | -0.04 | -0.05 | 20.00% | | Weighted Average Return on Net Assets | -2.33% | -2.23% | -0.10% | Key Accounting Data and Financial Indicators (Period-End vs. Prior Year-End) | Indicator | Current Period-End (billion Yuan) | Prior Year-End (billion Yuan) | Period-End vs. Prior Year-End Change | | :--- | :--- | :--- | :--- | | Total Assets | 1.17 | 1.38 | -15.12% | | Net Assets Attributable to Shareholders of Listed Company | 0.55 | 0.56 | -2.30% | Non-Recurring Gains and Losses The company's non-recurring gains and losses totaled 1.29 million Yuan during the reporting period, primarily from government subsidies, other non-operating income and expenses, and individual income tax handling fee refunds Non-Recurring Gains and Losses Items and Amounts | Item | Amount (million Yuan) | Explanation | | :--- | :--- | :--- | | Government Grants Included in Current Profit or Loss | 0.95 | Employment stabilization subsidies, disability employment management subsidies, project amortization, etc | | Other Non-Operating Income and Expenses Apart from the Above | 0.08 | - | | Other Profit and Loss Items Meeting the Definition of Non-Recurring Gains and Losses | 0.43 | Individual income tax handling fee refunds, etc | | Less: Income Tax Impact | 0.17 | - | | Impact on Minority Interests (After Tax) | 0.00 | - | | Total | 1.29 | - | Management Discussion and Analysis Company's Main Business The company primarily serves the financial industry, offering software development, system integration, and professional technical services, with stable operations driven by long-term and new customer development, and new business expansion - The company's main business remains unchanged, primarily providing information technology solutions and services to industries such as finance, air traffic control, military, and public security[27] - The company's profit model centers on proprietary software, offering business application software development, system integration, and technical support services[31] - In the first half of 2025, China's software industry performed well, with software business revenue growing by 11.9% and total profits by 12.0% year-on-year[38] Business Composition and Products The company offers software development, system integration, and professional technical services, including electronic channels, trade finance, blockchain BaaS, and IT infrastructure solutions - Software development business covers core products such as electronic channels and channel integration cloud platforms, trade finance settlement systems, transaction banking systems, blockchain BaaS platforms, and big data platforms[28] - System integration business provides full lifecycle services for IT infrastructure construction, including data center planning, design consulting, and hardware/software selection and deployment[29] - Professional technical services, based on software development and system integration, provide customers with technical support and operation and maintenance services[30] Business Model The company's profit model is centered on proprietary software, offering development, integration, and support services, with strict procurement, customized production, and direct/partner marketing - The company's profit model involves providing business application software development, project implementation, system integration, and consulting services, centered on proprietary software[31] - The procurement model establishes strict supplier management systems and procurement processes, adhering to the principle of competitive negotiation[32] - The production model focuses on proprietary intellectual property software products, with customized application development and deployment based on client requirements[33] Performance Drivers and Industry Analysis Performance is driven by continuous service to long-term clients, new client acquisition, and business expansion, with the software industry showing robust growth and the company experiencing seasonal revenue patterns - The company's performance is primarily driven by continuous services to long-term clients, new client development, and new business expansion[35] - In the first half of 2025, China's software business revenue reached 7.06 trillion Yuan, growing by 11.9% year-on-year, with total profits of 858.1 billion Yuan, up 12.0%[38] - The company's operating performance exhibits seasonality, with a significantly higher proportion of operating revenue and net profit in the second half of the year compared to the first half[40] Core Competencies The company's core strengths lie in continuous R&D and technological innovation, particularly in AI, blockchain, big data, and cloud computing, supported by strong client relationships, industry experience, a stable team, and a national strategic layout - The company is continuously committed to tracking research and application promotion in new technology fields such as artificial intelligence, blockchain, big data, and cloud computing, especially in finance and low-altitude economy[42] - The company has accumulated a high-quality client base primarily in the banking sector, and possesses nearly two decades of experience in information system construction within the air traffic control industry[45] - The company boasts a composite talent pool of nearly 2,000 professionals proficient in IT technology and financial business, with R&D, technical, and project implementation personnel accounting for over 80% of the total workforce[47] R&D and Technological Innovation The company invests heavily in AI, blockchain, big data, and cloud computing, applying these technologies to financial IT solutions and expanding into low-altitude air traffic control - The company continuously increases R&D investment in blockchain, actively tracks AI and blockchain technologies and products, and implements innovative applications[42] - The company's blockchain service platform products cover areas such as infrastructure docking, network monitoring, national cryptographic security, and smart contract management, providing solutions for finance and the low-altitude economy[43] - The company actively promotes the transfer of new technology R&D achievements from the financial sector to low-altitude air traffic control, deeply integrating cutting-edge technologies like big data and artificial intelligence[44] Clients and Industry Experience The company has cultivated a comprehensive, high-quality client base across the financial sector, including various banks and insurance institutions, and possesses nearly two decades of experience in the air traffic control industry - The company has accumulated high-quality large and medium-sized enterprise clients, primarily in the banking sector, also involving insurance and bond fields[45] - The company possesses nearly two decades of experience in information system construction within the air traffic control industry, accumulating extensive practical experience in building and maintaining large, complex systems across regions and institutions nationwide[46] Team and Strategic Layout The company has a composite talent pool with over 80% R&D and technical staff, a nationwide marketing and service network, and long-term partnerships with leading domestic and international vendors - The company boasts a composite talent pool of nearly 2,000 professionals proficient in IT technology and financial business, with R&D, technical, and project implementation personnel accounting for over 80% of the total workforce[47] - The company has established a nationwide marketing and service network, comprising 9 subsidiaries and 11 branches[49] - The company maintains long-term friendly cooperative relationships with renowned domestic and international product suppliers such as Huawei, H3C, Lenovo, Inspur, CISCO, IBM, and Oracle[50] Main Business Operations Analysis In the first half of 2025, the company saw a 9.28% increase in total operating revenue, a significant narrowing of operating loss, and positive developments in core financial clients, international settlement, and low-altitude economy, alongside increased R&D investment Key Financial Data for H1 2025 | Indicator | Amount (million Yuan) | YoY Change | | :--- | :--- | :--- | | Total Operating Revenue | 460.23 | 9.28% | | Operating Profit | -2.34 | Loss narrowed by 78.86% | | Net Profit Attributable to Parent Company Common Shareholders | -12.99 | Loss narrowed by 9.25% | | Net Profit Attributable to Parent Company Common Shareholders After Non-Recurring Gains and Losses | -14.28 | Loss narrowed by 39.33% | - The company completed multiple core system functional upgrades for Postal Savings Bank of China and implemented network localization and independent financial technology innovation projects for China CITIC Bank[52] - In the low-altitude economy sector, the company successfully implemented the Changchun "Low-Altitude Intelligent Network" project and deployed the Shandong Province "Airspace Declaration System"[54] Business Progress The company achieved significant progress in core client system upgrades, international settlement projects, low-altitude economy initiatives, and innovation in AI large models, blockchain, and privacy computing - The company completed functional upgrades and supporting development for key core systems at Postal Savings Bank of China, including electronic channels, enterprise channels, remote banking systems, and credit card intelligent customer service systems[52] - China CITIC Bank implemented a Cisco equipment replacement project, a significant milestone in client network localization, and also deployed green low-carbon financial platforms and treasury cloud service platforms[52] - The company's large model application platform, developed based on open-source models, has been successfully applied in various business scenarios, including intelligent outbound calls, intelligent coaching, intelligent knowledge bases, intelligent assistants, and intelligent marketing[55] Financial Data Fluctuation Analysis Operating revenue increased by 9.28%, while financial expenses decreased by 46.43% due to reduced bank loan interest, and income tax expenses rose by 208.17% from higher current tax Key Financial Data Year-on-Year Changes | Indicator | Current Period (million Yuan) | Prior Year (million Yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 460.23 | 421.16 | 9.28% | No significant change | | Financial Expenses | 2.96 | 5.53 | -46.43% | Decrease in bank loan interest expenses | | Income Tax Expenses | 11.25 | 3.65 | 208.17% | Increase in current income tax expenses | | Net Cash Flow from Investing Activities | -20.26 | -38.07 | 46.78% | Prior period payment of final installment for subsidiary equity acquisition | | Net Cash Flow from Financing Activities | 57.46 | 85.44 | -32.75% | Decrease in new loans in current period | Revenue and Gross Margin Changes by Product or Service | Product or Service | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | | System Integration | 47.97% | 39.69% | 5.14% | | Software Development | 11.20% | 10.46% | 0.54% | | Professional Technical Services | -33.57% | -36.79% | 3.73% | - The increase in system integration business revenue was primarily due to increased revenue recognition from such services[62] Non-Core Business Analysis Non-core business activities primarily included income from wealth management products, impairment provisions for contract assets, project termination funds, fixed asset disposal losses, and government subsidies Non-Core Business Items and Amounts | Item | Amount (million Yuan) | Share of Total Profit | Reason for Formation | | :--- | :--- | :--- | :--- | | Investment Income | 0.14 | -6.12% | Income from wealth management products | | Asset Impairment | -0.23 | 10.21% | Provision for bad debts on contract assets | | Non-Operating Income | 0.19 | -8.36% | Funds not required to be returned due to project termination | | Other Income | 1.09 | -48.02% | Government grants, individual income tax refunds, etc | | Credit Impairment Losses | 6.07 | -268.26% | Provision for bad debts on accounts receivable and other receivables | Asset and Liability Status Analysis At the end of the reporting period, both total assets and net assets attributable to shareholders decreased, with notable reductions in monetary funds, accounts payable, and contract liabilities, while trading financial assets, short-term borrowings, and prepayments increased Significant Changes in Asset Composition | Item | Current Period-End Amount (million Yuan) | Share of Total Assets | Prior Year-End Amount (million Yuan) | Share of Total Assets | Proportion Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 289.18 | 24.71% | 512.92 | 37.20% | -12.49% | Increase in payments to suppliers | | Total Assets | 1170.41 | 100.00% | 1378.88 | 100.00% | -15.12% | - | | Net Assets Attributable to Shareholders of Listed Company | 551.01 | 47.08% | 564.00 | 40.90% | -2.30% | - | | Short-Term Borrowings | 282.58 | 24.14% | 220.26 | 15.97% | 8.17% | No significant change | | Contract Liabilities | 65.02 | 5.56% | 107.46 | 7.79% | -2.23% | Revenue recognized for projects meeting recognition conditions | | Trading Financial Assets | 25.00 | 2.14% | 5.00 | 0.36% | 1.78% | Increase in subsidiary bank wealth management | - At the end of the reporting period, 19.37 million Yuan of the company's monetary funds were restricted, primarily as guarantees for bills and letters of guarantee[71] Investment Status Analysis The company's primary investment activity during the reporting period was an increase in bank wealth management products, with no use of raised funds, significant equity or non-equity investments, derivative investments, or entrusted loans Financial Assets Measured at Fair Value | Asset Category | Period-End Amount (million Yuan) | Source of Funds | | :--- | :--- | :--- | | Other (Bank Wealth Management Products) | 25.00 | Own funds | Overview of Entrusted Wealth Management | Specific Type | Amount of Entrusted Wealth Management (million Yuan) | Unmatured Balance (million Yuan) | | :--- | :--- | :--- | | Bank Wealth Management Products | 25.00 | 25.00 | - The company had no use of raised funds, no derivative investments, and no entrusted loans during the reporting period[74][77][78] Analysis of Major Holding and Participating Companies The company lists nine major subsidiaries, primarily engaged in computer software and hardware development, sales, and technical services, with their financial data disclosed - The company owns 9 major subsidiaries, including Beijing Xinchen Technology Development Co., Ltd., Shanghai Xinchen Information Integration System Co., Ltd., and Jiangsu Xinchen Information Technology Development Co., Ltd[81] - The main businesses of these subsidiaries are providing information technology solutions and services to key industries, or computer software and hardware development and sales, and technical services[81] Financial Data of Selected Subsidiaries (H1 2025) | Company Name | Operating Revenue (million Yuan) | Net Profit (million Yuan) | | :--- | :--- | :--- | | Beijing Xinchen Technology Development Co., Ltd. | 4.54 | 1.36 | | Shanghai Xinchen Information Integration System Co., Ltd. | 31.19 | 3.40 | | Jiangsu Xinchen Information Technology Development Co., Ltd. | 55.99 | 4.02 | | Beijing Ruideyin Information Technology Co., Ltd. | 7.48 | 1.66 | Risks Faced by the Company and Countermeasures The company faces risks from intensified market competition, rising labor costs, high customer concentration, and rapid technological iteration, which it addresses through continuous innovation, team optimization, new client development, and increased R&D - The company faces the risk of intensified market competition, which it addresses by continuously enhancing technological innovation and marketing capabilities[83] - Rising labor costs pose a risk to the company, which it mitigates by optimizing the technical team structure and establishing talent bases[84] - High customer concentration is a risk, and the company enhances its sustainable development capabilities by continuously tracking new technologies, developing new businesses, and expanding its client base[85] - Rapid technological iteration is a challenge, and the company will closely follow industry trends, continuously increase R&D investment, and strengthen its professional talent team[86] Investor Relations Activities During the reporting period, the company hosted on-site surveys for institutions like Fengyan Fund and Hanzhang Fund, and participated in the 2024 annual performance briefing to communicate with investors - On March 3, 2025, the company hosted on-site surveys for institutions including Fengyan Fund and Hanzhang Fund[87] - On May 9, 2025, the company participated in the 2024 annual performance briefing via the Panorama Network "Investor Relations Interactive Platform"[87] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management During the reporting period, Vice General Manager Xin Liang resigned for personal reasons, and Supervisor Board Chairman Fang Zhe, Supervisor Tang Ruomei, and Employee Representative Supervisor Zeng Yan resigned due to job reassignments Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Xin Liang | Vice General Manager | Resignation | May 09, 2025 | Personal reasons | | Fang Zhe | Chairman of the Supervisory Board | Resignation | August 08, 2025 | Job reassignment | | Tang Ruomei | Supervisor | Resignation | August 08, 2025 | Job reassignment | | Zeng Yan | Employee Representative Supervisor | Resignation | August 08, 2025 | Job reassignment | Profit Distribution and Incentive Plans The company plans no semi-annual cash dividends, bonus shares, or capital increase from capital reserves, and had no equity incentive or employee stock ownership plans in effect during the reporting period - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[91] - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[92] Environmental and Social Responsibility The company actively fulfills its social responsibilities through transparent information disclosure, employee welfare, and legal operations, contributing to local economic development - The company strictly adheres to laws and regulations for information disclosure and facilitates communication channels with investors through various means[93] - The company adheres to a people-oriented talent philosophy, respects and protects employee rights, focuses on employee health, safety, and satisfaction, and provides professional skills training[93] - The company operates legally, supporting local economic development through tax compliance and increased job creation[93] Significant Matters Commitments During the reporting period, all commitments made by the company's actual controllers, shareholders, related parties, and acquirers were either fulfilled or had no overdue unfulfilled items - During the reporting period, there were no commitments made by the company's actual controllers, shareholders, related parties, acquirers, or the company itself that were either fulfilled or overdue and unfulfilled as of the end of the reporting period[95] Fund Occupation and Guarantees During the reporting period, the company had no non-operating fund occupation by controlling shareholders or other related parties, nor any irregular external guarantees - During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the listed company[96] - The company had no irregular external guarantees during the reporting period[97] Audit and Reorganization The company's semi-annual financial report was unaudited, and no bankruptcy reorganization matters occurred during the reporting period - The company's semi-annual report was unaudited[98] - No bankruptcy reorganization matters occurred for the company during the reporting period[99] Litigation Matters The company had no significant litigation or arbitration matters during the reporting period; other minor lawsuits totaling 0.84 million Yuan had no material impact on operations - The company had no significant litigation or arbitration matters during this reporting period[100] Summary of Other Litigation Matters | Basic Information on Litigation (Arbitration) | Amount Involved (million Yuan) | Whether Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | | :--- | :--- | :--- | :--- | :--- | | Summary of cases not meeting the disclosure standard for significant litigation (arbitration) | 0.84 | No | Some concluded, some pending | No significant impact on company operations | Related Party Transactions The company had no related party transactions concerning daily operations, asset/equity acquisitions/disposals, joint external investments, or related party creditor/debtor relationships, but its legal representative, Kang Lu, provided multiple guarantees for bank credit lines - During the reporting period, the company had no related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, or related party creditor/debtor relationships[103][104][105][106] - The company's legal representative, Kang Lu, provided multiple joint liability guarantees for the company's credit applications with several banks, totaling over 900 million Yuan[110][530][531][532][533][534][535][536][537] Significant Contracts and Guarantees The company had no entrustment, contracting, or leasing matters during the reporting period, but provided guarantees totaling 15 million Yuan for its subsidiary, Shanghai Xinchen Information Integration System Co., Ltd., representing 2.72% of the company's net assets - The company had no entrustment, contracting, or leasing situations during the reporting period[111][112][113] Company Guarantees for Subsidiaries | Guaranteed Entity Name | Announcement Date of Guarantee Limit | Guarantee Limit (million Yuan) | Actual Occurrence Date | Actual Guarantee Amount (million Yuan) | Guarantee Type | Guarantee Period | Whether Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Xinchen Information Integration System Co., Ltd. | August 27, 2024 | 30.00 | October 29, 2024 | 8.00 | Joint liability guarantee | 3 years | No | | Shanghai Xinchen Information Integration System Co., Ltd. | August 27, 2024 | 30.00 | November 20, 2024 | 7.00 | Joint liability guarantee | 3 years | No | - As of the end of the reporting period, the total actual guarantee balance for subsidiaries was 15 million Yuan, accounting for 2.72% of the company's net assets[116] Other Significant Matters The company terminated its asset acquisition and fundraising transaction and its former Vice General Manager, Xin Liang, resigned for personal reasons - The company terminated the related party transaction involving issuing shares and paying cash to acquire assets, along with raising supporting funds[118] - Mr. Xin Liang, the company's former Vice General Manager, resigned from his position for personal reasons and will no longer hold any office in the company after his resignation[118] Share Changes and Shareholder Information Share Fluctuation During the reporting period, restricted shares decreased by 1,278,309, while unrestricted shares increased by the same amount, with the total share count remaining unchanged due to the unlocking of restricted shares for directors, supervisors, and senior management Share Fluctuation | Share Type | Quantity Before Change (Shares) | Change in Current Period (Shares) | Quantity After Change (Shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 52,174,604 | -1,278,309 | 50,896,295 | | II. Unrestricted Shares | 246,385,295 | 1,278,309 | 247,663,604 | | III. Total Shares | 298,559,899 | 0 | 298,559,899 | - Share changes primarily resulted from the unlocking of 25% of the shares registered under the names of the company's directors, supervisors, and senior management on the last trading day of the previous year, as per regulations[122] Shareholder Count and Shareholding As of the end of the reporting period, the total number of common shareholders was 48,386, with Li Fuhua, Kang Lu, Zhang Yansheng, and Xu Lianping holding significant stakes among the top ten shareholders, and some of Zhang Yansheng's shares pledged - As of the end of the reporting period, the total number of common shareholders was 48,386[127] Shareholding of Shareholders with 5% or More or Top 10 Shareholders | Shareholder Name | Shareholding Percentage | Shares Held at Period-End (Shares) | Change During Reporting Period (Shares) | Restricted Shares Held (Shares) | Unrestricted Shares Held (Shares) | Share Status | Quantity (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Li Fuhua | 13.61% | 40,636,950 | -999,000 | 0 | 40,636,950 | N/A | 0 | | Kang Lu | 12.16% | 36,309,150 | -998,600 | 27,980,812 | 8,328,338 | N/A | 0 | | Zhang Yansheng | 9.59% | 28,640,264 | -999,000 | 22,229,448 | 6,410,816 | Pledged | 5,020,000 | | Xu Lianping | 9.14% | 27,298,050 | -1,000,000 | 0 | 27,298,050 | N/A | 0 | Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, Chairman Kang Lu, Director and General Manager Zhang Yansheng, and Supervisor Tang Ruomei all reduced their shareholdings, while other directors, supervisors, and senior management had no changes or had already resigned Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Shares Held at Beginning of Period (Shares) | Shares Reduced in Current Period (Shares) | Shares Held at End of Period (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Kang Lu | Chairman | Current | 37,307,750 | 998,600 | 36,309,150 | | Zhang Yansheng | Director, General Manager | Current | 29,639,264 | 999,000 | 28,640,264 | | Tang Ruomei | Supervisor | Resigned | 511,675 | 50,000 | 461,675 | Changes in Controlling Shareholder and Actual Controller During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder did not change during the reporting period[130] - The company's actual controller did not change during the reporting period[130] Bond-Related Information Bond-Related Information The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[133] Financial Report Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[135] 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 - The financial statements include the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity[136][139][144][147][150][152][153][161] Consolidated and Parent Company Balance Sheets The consolidated balance sheet shows total assets of 1.17 billion Yuan and owners' equity of 551.01 million Yuan, while the parent company balance sheet reports total assets of 1.21 billion Yuan and owners' equity of 560 million Yuan Key Data from Consolidated Balance Sheet (Period-End Balance) | Item | Amount (million Yuan) | | :--- | :--- | | Total Assets | 1170.41 | | Total Current Assets | 921.85 | | Total Non-Current Assets | 248.56 | | Total Liabilities | 613.48 | | Total Current Liabilities | 610.73 | | Total Non-Current Liabilities | 2.75 | | Total Owners' Equity Attributable to Parent Company | 551.01 | Key Data from Parent Company Balance Sheet (Period-End Balance) | Item | Amount (million Yuan) | | :--- | :--- | | Total Assets | 1213.63 | | Total Current Assets | 761.21 | | Total Non-Current Assets | 452.43 | | Total Liabilities | 653.95 | | Total Current Liabilities | 653.22 | | Total Non-Current Liabilities | 0.73 | | Total Owners' Equity | 559.69 | Consolidated and Parent Company Income Statements The consolidated income statement for H1 2025 shows total operating revenue of 460.23 million Yuan and a net loss of 13.51 million Yuan, while the parent company income statement reports operating revenue of 430.41 million Yuan and a net loss of 11.37 million Yuan Key Data from Consolidated Income Statement (H1 2025) | Item | Amount (million Yuan) | | :--- | :--- | | Total Operating Revenue | 460.23 | | Total Operating Cost | 469.63 | | Total Profit | -2.26 | | Net Profit | -13.51 | | Net Profit Attributable to Parent Company Shareholders | -12.99 | | Basic Earnings Per Share (Yuan/share) | -0.04 | Key Data from Parent Company Income Statement (H1 2025) | Item | Amount (million Yuan) | | :--- | :--- | | Operating Revenue | 430.41 | | Operating Profit | -1.63 | | Total Profit | -1.64 | | Net Profit | -11.37 | Consolidated and Parent Company Cash Flow Statements The consolidated cash flow statement for H1 2025 shows net cash outflow from operating activities of 246.67 million Yuan, while the parent company statement reports a net cash outflow of 181.55 million Yuan from operating activities Key Data from Consolidated Cash Flow Statement (H1 2025) | Item | Amount (million Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -246.67 | | Net Cash Flow from Investing Activities | -20.26 | | Net Cash Flow from Financing Activities | 57.46 | | Net Increase in Cash and Cash Equivalents | -209.49 | Key Data from Parent Company Cash Flow Statement (H1 2025) | Item | Amount (million Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -181.55 | | Net Cash Flow from Investing Activities | -3.04 | | Net Cash Flow from Financing Activities | 58.61 | | Net Increase in Cash and Cash Equivalents | -125.99 | Consolidated and Parent Company Statements of Changes in Owners' Equity The consolidated statement shows total owners' equity attributable to the parent company of 551.01 million Yuan, a decrease of 12.99 million Yuan, while the parent company statement reports total owners' equity of 560 million Yuan, a decrease of 11.37 million Yuan Key Data from Consolidated Statement of Changes in Owners' Equity (H1 2025) | Item | Beginning Balance (million Yuan) | Change in Current Period (million Yuan) | Ending Balance (million Yuan) | | :--- | :--- | :--- | :--- | | Total Owners' Equity Attributable to Parent Company | 564.00 | -12.99 | 551.01 | | Minority Interests | 6.43 | -0.52 | 5.91 | | Total Owners' Equity | 570.44 | -13.51 | 556.93 | Key Data from Parent Company Statement of Changes in Owners' Equity (H1 2025) | Item | Beginning Balance (million Yuan) | Change in Current Period (million Yuan) | Ending Balance (million Yuan) | | :--- | :--- | :--- | :--- | | Share Capital | 298.56 | 0 | 298.56 | | Capital Reserve | 12.69 | 0 | 12.69 | | Surplus Reserve | 27.53 | 0 | 27.53 | | Undistributed Profits | 232.28 | -11.37 | 220.91 | | Total Owners' Equity | 571.06 | -11.37 | 559.69 | Company Basic Information and Basis of Preparation The company, listed on the Shenzhen Stock Exchange in 2016, had 298.56 million shares issued as of June 30, 2025, and prepares its financial statements on a going concern basis in accordance with enterprise accounting standards - The company was listed on the ChiNext board of the Shenzhen Stock Exchange on September 20, 2016[166] - As of June 30, 2025, the company's total issued shares amounted to 298.56 million shares, with a registered capital of 298.56 million Yuan[166] - The company prepares its financial statements on a going concern basis, in accordance with enterprise accounting standards, their application guidelines, and interpretations, based on actual transactions and events[167] Significant Accounting Policies and Estimates This section details the company's accounting policies and estimates for business combinations, financial instruments, revenue recognition, inventory, fixed assets, intangible assets, employee compensation, and government grants, ensuring compliance with accounting standards - The company adheres to enterprise accounting standards, with the accounting year running from January 1 to December 31, and the functional currency being Renminbi[170][171][173] - The company classifies, measures, and impairs financial instruments, recognizing loss provisions based on expected credit losses[203][212] - The company recognizes revenue upon satisfying performance obligations when customers obtain control of the related goods, applying different recognition methods based on business type[288][295][296] Taxation The company's main taxes include VAT, urban maintenance and construction tax, corporate income tax, and education surcharges, with the company and some subsidiaries enjoying a 15% high-tech enterprise income tax rate and small and micro enterprise tax relief Main Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 13%, 9%, 6%, 5%, Exempt | | Urban Maintenance and Construction Tax | 7% | | Corporate Income Tax | 15%, 20%, 25% | | Education Surcharge | 3% | | Local Education Surcharge | 2%, 1.5% | | Property Tax | 1.2% (based on 70% of original property value) or 12% (based on rental income) | - The company, Shanghai Xinchen Information Integration System Co., Ltd., Beijing Ruideyin Information Technology Co., Ltd., Beijing Qinglin Software Technology Co., Ltd., and Wuhan Xinchen Information Industry Co., Ltd. are subject to a 15% corporate income tax rate[317][318][319][320] - Some subsidiaries are eligible for preferential tax policies for small and micro enterprises, where 25% of their annual taxable income is included in the taxable income, and corporate income tax is paid at a 20% rate[321] Notes to Consolidated Financial Statement Items This section provides detailed notes on assets, liabilities, owners' equity, income, costs, and expenses in the consolidated financial statements, explaining period-end balances, beginning balances, and changes - The period-end balance of monetary funds was 289.18 million Yuan, of which 19.37 million Yuan were restricted[322] - The period-end book balance of accounts receivable was 492 million Yuan, with bad debt provisions of 98.93 million Yuan[334][336] - Operating revenue was 460 million Yuan, and operating cost was 378 million Yuan, with system integration revenue at 177 million Yuan, software development revenue at 209 million Yuan, and professional technical service revenue at 73.91 million Yuan[450][449] Notes on Asset Items This section details monetary funds, trading financial assets, accounts receivable, contract assets, other receivables, prepayments, inventory, fixed assets, intangible assets, goodwill, and deferred tax assets/liabilities Period-End Balance of Monetary Funds | Item | Period-End Balance (Yuan) | | :--- | :--- | | Cash on Hand | 161,458.05 | | Bank Deposits | 263,135,544.80 | | Other Monetary Funds | 25,880,739.77 | | Total | 289,177,742.62 | - The period-end book balance of accounts receivable was 492 million Yuan, with bad debt provisions of 98.93 million Yuan, primarily calculated using the aging analysis method[334][336] - The original book value of goodwill was 208 million Yuan, primarily arising from the acquisitions of Beijing Ruideyin Information Technology Co., Ltd. and Beijing Qinglin Software Technology Co., Ltd[387] Notes on Liability Items This section details short-term borrowings, accounts payable, other payables, contract liabilities, employee compensation payable, taxes payable, and other current and non-current liabilities Short-Term Borrowings Classification | Item | Period-End Balance (million Yuan) | | :--- | :--- | | Guaranteed Borrowings | 273.58 | | Credit Borrowings | 9.00 | | Total | 282.58 | Accounts Payable Listing | Item | Period-End Balance (million Yuan) | | :--- | :--- | | Accounts Payable for Software | 5.98 | | Accounts Payable for Technical Services | 129.84 | | Accounts Payable for Materials and Equipment | 44.02 | | Total | 179.83 | - The period-end balance of contract liabilities was 65.02 million Yuan, primarily consisting of advance payments for project progress[421] Notes on Owners' Equity Items This section details share capital, capital reserves, surplus reserves, and undistributed profits, noting no changes in share capital, capital reserves, or surplus reserves, while undistributed profits decreased by 12.99 million Yuan - The company's share capital at period-end was 298.56 million Yuan, consistent with the beginning of the period[439] - The period-end balance of undistributed profits was 235.34 million Yuan, with net profit attributable to parent company owners for the current period being -12.99 million Yuan[445] Notes on Income Statement Items This section details operating revenue and cost, taxes and surcharges, administrative expenses, selling expenses, R&D expenses, financial expenses, other income, investment income, credit impairment losses, asset impairment losses, asset disposal gains, non-operating income/expenses, and income tax expenses Operating Revenue and Operating Cost (Current Period) | Item | Revenue (million Yuan) | Cost (million Yuan) | | :--- | :--- | :--- | | Main Business | 460.23 | 378.43 | | Other Business | 0 | 0 | | Total | 460.23 | 378.43 | - Financial expenses for the current period amounted to 2.96 million Yuan, a 46.43% decrease from the prior period, primarily due to reduced interest expenses[461] - Income tax expenses for the current period amounted to 11.25 million Yuan, a 208.17% increase from the prior period, primarily due to increased current income tax expenses[477] Notes on Cash Flow Statement Items This section details cash flows related to operating, investing, and financing activities, along with supplementary cash flow information Subtotal of Cash Inflows/Outflows from Operating Activities | Item | Current Period Amount (million Yuan) | | :--- | :--- | | Subtotal of Cash Inflows from Operating Activities | 613.21 | | Subtotal of Cash Outflows from Operating Activities | 859.88 | Subtotal of Cash Inflows/Outflows from Investing Activities | Item | Current Period Amount (million Yuan) | | :--- | :--- | | Subtotal of Cash Inflows from Investing Activities | 55.15 | | Subtotal of Cash Outflows from Investing Activities | 75.41 | Subtotal of Cash Inflows/Outflows from Financing Activities | Item | Current Period Amount (million Yuan) | | :--- | :--- | | Subtotal of Cash Inflows from Financing Activities | 160.87 | | Subtotal of Cash Outflows from Financing Activities | 103.41 | Notes on Other Financial Statement Items This section includes notes on owners' equity changes, foreign currency monetary items, and leasing information, with period-end cash and cash equivalents totaling 270 million Yuan and USD monetary funds of 0.51 million - The period-end balance of cash and cash equivalents was 269.81 million Yuan[489] - The company's USD monetary funds had a period-end foreign currency balance of 506,494.66 USD, equivalent to 3.63 million Yuan[492] Research and Development Expenses During the reporting period, the company's total R&D expenditure was 31.22 million Yuan, entirely expensed, primarily consisting of employee compensation Composition of R&D Expenses | Item | Current Period Amount (million Yuan) | | :--- | :--- | | Employee Compensation | 30.37 | | Depreciation and Amortization | 0.17 | | Travel Expenses and Others | 0.69 | | Total | 31.22 | | Of which: Expensed R&D Expenditure | 31.22 | Changes in Consolidation Scope Changes in Consolidation Scope During the reporting period, the company had no transactions involving step-by-step business combinations or loss of control over subsidiaries, resulting in no significant changes to the consolidation scope - During the reporting period, the company had no transactions involving step-by-step business combinations that resulted in obtaining control within the reporting period[499] - During the reporting period, the company had no transactions or events resulting in the loss of control over subsidiaries[501] Interests in Other Entities Interests in Subsidiaries The company holds interests in nine wholly-owned or controlled subsidiaries, primarily engaged in computer software and hardware development and technical services, with Beijing Qinglin Software Technology Co., Ltd. being a significant non-wholly-owned subsidiary - The company owns 9 subsidiaries, including Beijing Xinchen Technology Development Co., Ltd., Shanghai Xinchen Information Integration System Co., Ltd., and Jiangsu Xinchen Information Technology Development Co., Ltd[504] - The main business nature of these subsidiaries is computer software and hardware development and sales, and technical services[504] Financial Information of Significant Non-Wholly-Owned Subsidiaries (H1 2025) | Subsidiary Name | Minority Shareholding Percentage | Profit/Loss Attributable to Minority Shareholders (Yuan) | Period-End Minority Interest Balance (million Yuan) | | :--- | :--- | :--- | :--- | | Beijing Qinglin Software Technology Co., Ltd. | 45.00% | -520,317.04 | 5.91 | Government Grants Government Grants During the reporting period, the company received new government grants of 0.56 million Yuan, with 0.59 million Yuan recognized as other income and a period-end deferred income balance of 0.73 million Yuan, primarily related to income-based grants Liability Items Involving Government Grants | Accounting Account | Beginning Balance (Yuan) | New Grants Added in Current Period (Yuan) | Amount Transferred to Other Income in Current Period (Yuan) | Ending Balance (Yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 751,488.95 | 560,000.00 | 586,118.43 | 725,370.52 | Income Related | - The amount of government grants recognized in current profit or loss for this period was 653,166.54 Yuan[512] Risks Related to Financial Instruments Various Risks Arising from Financial Instruments The company faces credit, liquidity, and market risks (foreign exchange and interest rate), managing them through client credit assessment, regular monitoring, bank credit lines, and cash reserves, while closely monitoring and adjusting strategies for foreign exchange and interest rate fluctuations - The company faces credit risk, liquidity risk, and market risk (foreign exchange risk, interest rate risk)[513] - The company's maximum credit risk exposure is the book value of each financial asset on the balance sheet, with accounts receivable and contract assets from the top five clients accounting for 44.43% of the total[517] - As of June 30, 2025, the company had bank credit lines totaling 990 million Yuan from multiple domestic banks, with 316 million Yuan utilized[518] - As of June 30, 2025, if the RMB appreciates or depreciates by 10% against the USD, the company's net profit would decrease or increase by approximately 0.31 million Yuan[521] Disclosure of Fair Value Disclosure of Fair Value This section discloses the period-end fair value of assets and liabilities measured at fair value, primarily 25 million Yuan in trading financial assets measured at Level 2, with non-fair value measured financial instruments having negligible differences between book and fair values Period-End Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 2 Fair Value Measurement (million Yuan) | Total (million Yuan) | | :--- | :--- | :--- | | (I) Trading Financial Assets | 25.00 | 25.00 | | Total Assets Continuously Measured at Fair Value | 25.00 | 25.00 | - The book value of financial assets and liabilities not measured at fair value (such as receivables, short-term borrowings, and payables) differs negligibly from their fair value[524] Related Parties and Related Party Transactions Related Parties and Related Party Transactions The company disclosed its parent company, subsidiaries, and other related parties, including entities controlled by close family members of major shareholders, directors, and supervisors, with legal representative Kang Lu providing multiple bank credit guarantees and key management personnel compensation totaling 2.85 million Yuan - Other related parties include entities controlled by close family members of shareholders holding 5% or more, and entities controlled by close family members of directors/supervisors[527] - The company's legal representative, Kang Lu, provided multiple joint liability guarantees for the company's credit applications with several banks[530][531][532][533][534][535][536][537] Key Management Personnel Compensation | Item | Current Period Amount (million Yuan) | | :--- | :--- | | Key Management Personnel Compensation | 2.85 | Share-Based Payment Share-Based Payment During the reporting period, the company had no share-based payment arrangements, including equity-settled or cash-settled plans, related expenses, or modifications/terminations - The company had no overall share-based payment situation during the reporting period[541] Commitments and Contingencies Significant Commitments As of June 30, 2025, the company's wholly-owned subsidiary, Hainan Xinchen Technology Development Co., Ltd., had 8 million Yuan in unpaid registered capital, with no other significant commitments requiring disclosure - The wholly-owned subsidiary, Hainan Xinchen Technology Development Co., Ltd., has a registered capital of 10 million Yuan, with 2 million Yuan already paid in and 8 million Yuan still unpaid[541] Contingencies As of June 30, 2025, the company had 1.62 million Yuan in outstanding domestic letters of credit and provided 15 million Yuan in short-term loan guarantees for its subsidiary, Shanghai Xinchen Information Integration System Co., Ltd - As of June 30, 2025, the company had 1.62 million Yuan in domestic letters of credit opened but not yet matured[542] Contingent Liabilities from Debt Guarantees for Other Entities | Guaranteed Entity | Guarantee Type | Guarantee Amount (million Yuan) | Guarantee Period | | :--- | :--- | :--- | :--- | | Shanghai Xinchen Information Integration System Co., Ltd. | Short-term loan | 8.00 | October 2024 to October 2025 | | Shanghai Xinchen Information Integration System Co., Ltd. | Short-term loan | 7.00 | November 2024 to November 2025 | | Total | - | 15.00 | - | Events After the Balance Sheet Date Events After the Balance Sheet Date The company had no significant events after the balance sheet date requiring disclosure - The company has no reportable segments, or cannot disclose the total assets and liabilities for each reportable segment[548] Other Significant Matters Other Significant Matters The company's business is singular, managed as a whole, and therefore, the financial statements do not present segment information - The company's business is singular, primarily system integration, software development, and technical services, which management treats as a single entity for management and performance evaluation[550] - These financial statements do not present segment information[550] Notes on Parent Company Financial Statement Items Accounts Receivable The parent company's period-end accounts receivable book balance was 465 million Yuan, with bad debt provisions of 93.70 million Yuan, primarily calculated using the aging analysis method Parent Company Accounts Receivable by Aging (Period-End Book Balance) | Aging | Amount (million Yuan) | | :--- | :--- | | Within 1 Year (inclusive) | 330.54 | | 1 to 2 Years | 23.04 | | 2 to 3 Years | 18.15 | | Over 3 Years | 93.01 | | Total | 464.75 | - The parent company's period-end book balance of accounts receivable was 465 million Yuan, with bad debt provisions of 93.70 million Yuan, representing a provision rate of 20.16%[554] Other Receivables The parent company's period-end other receivables book balance was 9.42 million Yuan, with bad debt provisions of 2.00 million Yuan, primarily for deposits, petty cash, and security deposits Parent Company Other Receivables by Nature of Item (Period-End Book Balance) | Nature of Item | Amount (million Yuan) | | :--- | :--- | | Deposits | 6.96 | | Petty Cash | 2.03 | | Security Deposits | 0.43 | | Total | 9.42 | - The parent company's period-end book balance of other receivables was 9.42 million Yuan, with bad debt provisions of 2.00 million Yuan, representing a provision rate of 21.27%[566] - The top five other receivables by debtor at period-end totaled 3.99 million Yuan, accounting for 42.30% of the total other receivables balance[572] Long-Term Equity Investments The parent com