南方路机(603280) - 2025 Q2 - 季度财报

Definitions Definitions of Common Terms and Professional Terminology This chapter defines common terms and professional jargon used in the report, including company names, exchanges, reporting periods, currency units, and various enterprise management system acronyms, ensuring accurate understanding of the report content - Common Term Definitions: Company/NFLG refers to Fujian NFLG Roadbuilding Machinery Co., Ltd.; SSE refers to Shanghai Stock Exchange; Reporting Period refers to January 1, 2025, to June 30, 2025; Yuan, Ten Thousand Yuan, Hundred Million Yuan refer to RMB Yuan, RMB Ten Thousand Yuan, RMB Hundred Million Yuan[13] - Professional Terminology Definitions: RAP refers to Recycled Asphalt Pavement; ERP refers to Enterprise Resource Planning; MES refers to Manufacturing Execution System; PLM refers to Product Lifecycle Management System; RDM refers to Project Management System; CRM refers to Customer Relationship Management System; EBOM refers to Engineering Bill of Materials; PBOM refers to Process Bill of Materials; MBOM refers to Manufacturing Bill of Materials[13] Company Profile and Key Financial Indicators Company Information This section introduces Fujian NFLG Roadbuilding Machinery Co., Ltd.'s Chinese name, abbreviation, English name, abbreviation, and legal representative information - Company Chinese Name: Fujian NFLG Roadbuilding Machinery Co., Ltd., Chinese Abbreviation: NFLG[15] - Company Legal Representative: Fang Qingxi[15] Contact Person and Contact Information This section provides contact details for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, fax numbers, and email addresses - Board Secretary: Wan Jingwen, Contact Number: 0595-22916799, Email: Dong_office@nflg.com[16][17] - Securities Affairs Representative: Yan Jianse, Contact Number: 0595-22915802, Email: Dong_office@nflg.com[16][17] Brief Introduction to Changes in Basic Information This section states that there were no changes in the company's basic information, such as registered address, office address, postal code, company website, and email address, during the reporting period - Company's registered address and office address are both No. 700, Sports Street, High-tech Industrial Park, Fengze District, Quanzhou City, with no changes during the reporting period[18] - Company Website: https://www.nflg.com/, Email: Dong_office@nflg.com[18] Brief Introduction to Changes in Information Disclosure and Document Storage Locations This section discloses the company's selected newspapers for information disclosure, the website address for publishing semi-annual reports, and the location for storing semi-annual reports, all of which remained unchanged during the reporting period - Company's selected newspapers for information disclosure: China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily, Economic Information Daily[19] - Website address for publishing semi-annual reports: www.sse.com.cn[19](index=19&type=chunk) - Location for storing company's semi-annual reports: Company Board Secretary's Office[19] Overview of Company Shares This section provides basic information about the company's shares, including share type, listing exchange, stock abbreviation, and stock code - Company Share Type: A-shares, Listing Exchange: Shanghai Stock Exchange, Stock Abbreviation: NFLG, Stock Code: 603280[20] Key Accounting Data and Financial Indicators This section details the company's key accounting data and financial indicators for the first half of 2025, showing a year-on-year decrease in operating revenue and net profit, but a significant increase in net cash flow from operating activities, along with slight growth in total assets and net assets - Net cash flow from operating activities increased due to higher collection of goods payments and reduced material expenses in the current period[24] Key Accounting Data During the reporting period, the company's operating revenue and total profit both decreased year-on-year, but net cash flow from operating activities significantly increased 2025 H1 Key Accounting Data | Indicator | Current Period (Jan-Jun) | Prior Period | Period-over-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 499,394,484.30 | 598,035,747.25 | -16.49 | | Total Profit (Yuan) | 61,307,900.79 | 71,095,259.66 | -13.77 | | Net Profit Attributable to Shareholders of the Listed Company (Yuan) | 57,762,409.09 | 68,453,463.46 | -15.62 | | Net Profit Attributable to Shareholders of the Listed Company After Deducting Non-recurring Gains and Losses (Yuan) | 45,396,770.21 | 56,401,133.55 | -19.51 | | Net Cash Flow from Operating Activities (Yuan) | 85,531,558.87 | 5,430,473.03 | 1,475.03 | | Net Assets Attributable to Shareholders of the Listed Company (End of Period) (Yuan) | 1,338,664,648.00 | 1,308,974,473.33 | 2.27 | | Total Assets (End of Period) (Yuan) | 2,186,752,876.87 | 2,046,652,930.39 | 6.85 | Key Financial Indicators During the reporting period, the company's basic and diluted earnings per share both decreased year-on-year, and the weighted average return on net assets also declined 2025 H1 Key Financial Indicators | Indicator | Current Period (Jan-Jun) | Prior Period | Period-over-Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.53 | 0.63 | -15.87 | | Diluted Earnings Per Share (Yuan/share) | 0.53 | 0.63 | -15.87 | | Basic Earnings Per Share After Deducting Non-recurring Gains and Losses (Yuan/share) | 0.42 | 0.52 | -19.23 | | Weighted Average Return on Net Assets (%) | 4.32 | 5.31 | Decrease by 0.99 percentage points | | Weighted Average Return on Net Assets After Deducting Non-recurring Gains and Losses (%) | 3.39 | 4.38 | Decrease by 0.99 percentage points | Non-recurring Gains and Losses Items and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 12,365,638.88 Yuan, primarily from government grants, fair value changes, and other non-operating income 2025 H1 Non-recurring Gains and Losses Items | Non-recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Gains or losses on disposal of non-current assets | 22,411.61 | | Government grants recognized in current profit or loss | 7,118,400.00 | | Gains or losses from changes in fair value and disposal of financial assets and liabilities | 5,991,685.35 | | Fund occupation fees received from non-financial enterprises recognized in current profit or loss | 448,715.49 | | Other non-operating income and expenses apart from the above | 1,488,896.59 | | Less: Income tax impact | 2,704,470.16 | | Total | 12,365,638.88 | Management Discussion and Analysis Description of the Company's Industry and Main Business During the Reporting Period This section describes the engineering machinery industry context, noting its acceleration towards green and intelligent transformation, and its stabilization and recovery driven by "equipment renewal policy dividends" and "overseas market growth" The company focuses on the engineering mixing sector, forming a full-产业链 product system covering "primary aggregate processing equipment - engineering mixing equipment - aggregate resource recycling equipment" - China's construction machinery industry has formed the world's most complete industrial chain system, with products covering over 200 countries and regions[30] - Driven by "dual carbon" goals, the industry is accelerating its transformation towards green and intelligent development[30] - In the first half of 2025, the domestic construction machinery industry stabilized and recovered, driven by the continuous release of "equipment renewal policy dividends" and "structural growth in overseas markets"[30] Company's Main Business The company's main business encompasses primary aggregate processing equipment, engineering mixing equipment, and aggregate resource recycling equipment, aiming to provide one-stop, full-series green building material equipment and circular economy solutions for resource recycling - The company has gradually formed a full-chain and multi-level product system layout covering "primary aggregate processing equipment - engineering mixing equipment - aggregate resource recycling equipment"[31] - Primary aggregate processing equipment includes high-quality sand making equipment, shaping sand making equipment, stationary crushing and screening equipment, and mobile crushing and screening equipment, with increasing market demand[31] - Aggregate resource recycling equipment includes waste wet concrete recycling equipment, construction waste resource recycling equipment, asphalt concrete recycling material crushing and screening equipment, and mud treatment equipment, responding to national environmental protection and circular economy policy demands[32] Company's Business Model The company adopts a "procurement on demand" and "production based on sales" model, with core components self-produced and non-core components outsourced The sales model is primarily distribution-based, supplemented by direct sales, with a focus on after-sales service - Procurement primarily follows a "procurement on demand" model, with purchasing arranged according to sales orders and production plans, and advance procurement plans and stocking for long-cycle raw materials, collaborating with at least two qualified suppliers[33] - Production primarily adopts a "production based on sales" model, independently completing technology R&D, solution and product design, core component production, and complete machine assembly, with some non-core components and processes completed through external procurement and outsourcing[34][35] - The sales model has gradually evolved into a distribution-led approach, combining direct sales and distribution, acquiring customer resources through industry exhibitions, customer referrals, and online platforms, and providing after-sales service[35] Discussion and Analysis of Operations During the reporting period, the company's operating revenue and net profit declined, but total assets and net cash flow from operating activities increased The company continuously enhances its competitiveness through core technology breakthroughs, global expansion, green intelligent manufacturing, intelligent ecosystem integration, and R&D efforts - The company achieved operating revenue of 499 Million Yuan, a year-on-year decrease of 16.49%; net profit attributable to shareholders of the listed company was 57.76 Million Yuan, a year-on-year decrease of 15.62%[36] - As of June 30, 2025, the company's total assets were 2.187 Billion Yuan, a year-on-year increase of 6.85%; net assets attributable to shareholders of the listed company were 1.339 Billion Yuan, a year-on-year increase of 2.27%[36] - Net cash flow from operating activities showed a positive trend, indicating the company's continuous optimization in stable operations and capital management[36] Core Technology Breakthroughs Build an Industry Moat The company achieved multiple core technology breakthroughs in engineering mixing equipment, primary aggregate processing equipment, and aggregate resource recycling equipment, including RAP fine aggregate recycling equipment, tower-type dry-mix mortar production lines, NFS150 mobile screening equipment, and NZLG60 modular fluid-solidified soil equipment, enhancing product performance, energy efficiency, and environmental value - RAP fine aggregate recycling equipment can finely separate asphalt millings, significantly reducing false particle size phenomena and variability, saving maintenance costs, and addressing environmental concerns[37] - NFLG's tower-type dry-mix mortar production line uses a ploughshare mixer and frequency conversion technology, reducing energy consumption by 25%, achieving a mixing ratio of up to 1:10000, with no residue or dead corners during discharge[37] - The company's NFS150 mobile screening equipment features a compact structure and high flexibility, suitable for confined workspaces and high-frequency projects, and can be transported as a complete unit via 40FR containers, significantly reducing transportation costs[38] - The independently developed NZLG60 modular fluid-solidified soil equipment is designed for the resource treatment of waste soil mud cakes, solving problems such as slow site transfers, long construction periods, and difficulties in mud separation and transportation of sticky wet slag, capable of producing high-quality fluid-solidified soil[39] Global Layout Opens Up Incremental Market Space NFLG is accelerating its global expansion, with overseas sales continuously increasing, and its products have entered markets in Europe, North America, Southeast Asia, and the Middle East, establishing a strong brand reputation The company will continue to deepen its presence in international markets - NFLG's overseas products have entered numerous countries and regions in Europe, North America, Southeast Asia, and the Middle East, establishing a strong brand reputation locally[40] - The company will continue to deeply cultivate international markets, thoroughly understand overseas customer needs, and provide efficient, environmentally friendly, and intelligent overall solutions for green circular building materials[40] Dual Carbon Goals Drive New Paradigm of Green Intelligent Manufacturing The company actively responds to the "dual carbon" strategy, releasing a carbon neutrality white paper and setting targets for carbon peaking across the entire value chain by 2030, carbon neutrality in its own operations by 2050, and net-zero emissions across the entire value chain by 2060 During the reporting period, it was awarded "2025 Fujian Province Green Factory" and deepened its green manufacturing system construction through measures such as optimizing production processes and introducing energy-saving equipment - NFLG released a carbon neutrality white paper, setting phased carbon neutrality targets: achieving carbon peaking across the entire value chain by 2030; achieving carbon neutrality in its own operations by 2050; and achieving net-zero emissions across the entire value chain by 2060[41] - During the reporting period, NFLG was awarded "2025 Fujian Province Green Factory," which is a high recognition of the company's long-term commitment to green development principles[41] - The company achieves standardized, intelligent, and green production through measures such as introducing advanced energy-saving equipment, optimizing processes, and standardizing solid waste recycling[41] Intelligent Ecosystem Integration Leads Industrial Transformation NFLG actively embraces artificial intelligence, launching an AI+ aggregate intelligent feeding system and applying intelligent systems such as the ERP green building materials smart factory management platform, IoT+ warehousing intelligent remote monitoring system, and intelligent ticket printing and sorting integrated machine, enhancing production efficiency, resource utilization, and product quality - NFLG's AI+ aggregate intelligent feeding system, based on artificial intelligence and visual inspection technology, can monitor aggregate gradation and morphology online, providing data for optimizing aggregate formulas, improving concrete quality, and reducing cement consumption[42] - The company applies intelligent systems such as the ERP green building materials smart factory management platform, IoT+ warehousing intelligent remote monitoring system, and intelligent ticket printing and sorting integrated machine, helping to improve production efficiency and resource utilization[42] R&D Efforts Steadily Progress The company continues to increase R&D investment, actively engaging in industry-university-research cooperation, and jointly tackling core technologies in intelligent fields and mixing/crushing mechanisms During the reporting period, it applied for 9 domestic and international patents, obtained 26 authorized patents, introduced dozens of talents in AI algorithms and intelligent system integration, and added 9 new R&D projects, totaling 15 ongoing R&D projects - During the reporting period, the company applied for 9 domestic and international patents, including 9 invention patents; it obtained 26 authorized patents, including 12 invention patents, 11 utility model patents, and 3 design patents[44] - During the reporting period, dozens of talents were introduced in key areas such as AI algorithms, intelligent system integration, and materials science, with R&D personnel accounting for 27.68% of the total workforce[44] - In 2025, the company added 9 new R&D projects, with a total of 15 ongoing R&D projects, demonstrating efficient project advancement and precise adjustment and focus of R&D directions[44] Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness lies in its nearly three decades of accumulated product R&D technological advantages, its ability to provide full-chain integrated solutions, a strong dealer network, enhanced intelligent manufacturing and smart operation and maintenance capabilities, extensive and deep brand reputation, and continuously improving quality and after-sales service system - The company has gradually formed a full-chain and multi-level ecological product system for aggregates, including mining crushing and screening, aggregate processing, construction and road material mixing, and construction waste resource recycling equipment, covering "primary aggregate processing - engineering mixing - aggregate resource recycling"[45] - The company creatively provides integrated green circular building material solutions to the market, evolving from addressing single demands to supplying a complete ecological multi-scenario product and service system[46] - The company has established a mature marketing system primarily based on distribution, combined with direct sales, with a sales network covering 31 provinces, autonomous regions, and municipalities nationwide, and radiating to Southeast Asia, Europe, Africa, and the Middle East globally[48] Accumulated Experience Forges Innovation Barrier: Product R&D Technology Advantage Leveraging nearly three decades of technological accumulation, the company has formed a full-chain product system covering mining crushing and screening, aggregate processing, construction and road material mixing, and construction waste resource utilization, with early strategic布局 in future trends such as integrated construction solid waste resource utilization and environmentally friendly smart mixing plants Its products have been successfully applied in multiple national strategic engineering projects - The company has gradually formed a full-chain and multi-level full-ecological product system for aggregates, including mining crushing and screening, aggregate processing, construction and road material mixing, and construction waste resource recycling equipment, covering "primary aggregate processing - engineering mixing - aggregate resource recycling"[45] - Intelligent equipment developed and commercialized by the company has been successfully applied in national strategic engineering projects with strict quality requirements for construction machinery, such as the Hong Kong-Zhuhai-Macau Bridge, Shenzhen Greater Bay Area construction, CGN Nuclear Power Project, Shenzhen-Zhongshan Channel, and Beijing-Xinjiang Expressway[45] Rare Advantage in Providing Full-Chain Integrated Solutions in the Industry Through its full-chain and multi-level product system of "primary aggregate processing equipment - engineering mixing equipment - aggregate resource recycling equipment," the company provides integrated green circular building material solutions to the market, meeting customers' multi-stage needs, such as integrated solutions for highway expansion and maintenance backyards - The company's established advantage in a full-chain and multi-level product system layout of "primary aggregate processing equipment - engineering mixing equipment - aggregate resource recycling equipment" creatively provides integrated green circular building material solutions to the market[46] - Taking NFLG's integrated solution for highway expansion and maintenance backyards as an example, by integrating multiple functional areas, it achieves full coverage of various application scenarios for highway expansion and maintenance[46][47] Strong Dealer Advantage with Internal and External Empowerment The company has established a mature marketing system primarily based on distribution, supplemented by direct sales, with a dealer network covering 31 provinces and radiating globally, successfully entering high-end markets such as Europe, North America, and Japan Through systematic training and profit sharing, the company forms stable long-term cooperative relationships with dealers to jointly address market risks - The company has established a mature marketing system primarily based on distribution, combined with direct sales, with a sales network covering 31 provinces, autonomous regions, and municipalities nationwide, and radiating to Southeast Asia, Europe, Africa, and the Middle East globally[48] - The company and its dealers empower each other, successfully entering high-end markets such as Europe, North America, and Japan, and establishing strategic partnerships with multiple international clients[48] - The company emphasizes systematic training for both direct sales and dealer employees, conducting regular training through its established Mixing Academy, continuously strengthening the cooperative bond between the company and its dealers[49] Comprehensive Software and Hardware Enhanced Intelligent Manufacturing and Smart Operation and Maintenance Advantages The company, through its independently developed IoT smart operation and maintenance management cloud platform, achieves remote equipment monitoring, data analysis, and intelligent decision-making, enhancing operational informatization and digitalization At the same time, ERP, MES, PLM, RDM, CRM, and other information systems are integrated across all supply, production, and sales links, ensuring production efficiency, quality control, and customer service - The company has independently developed and built an IoT-based smart operation and maintenance management cloud platform, enabling remote equipment monitoring and interconnected equipment, transforming product operation and maintenance from traditional offline methods to "Internet+" intelligent technical means[50] - Informatization has been integrated into all aspects of the company's daily operations, including supply, production, and sales, providing comprehensive assurance for product production efficiency and quality control through systems such as SRM, ERP, MES, PLM, RDM, and CRM[50][51] - The company has independently developed a master data management platform, achieving classified management of materials and standardized management of product modules, improving data conversion speed and accuracy[51] Extensive and Deep Brand Advantage Leveraging its technological R&D, product quality, service level, and historical performance, the company has established a strong brand reputation in the construction machinery industry, gaining widespread recognition from customers and the industry, and receiving numerous national and provincial honors - The company has high recognition and reputation in the subdivided fields of mixing, sand making, and construction waste recycling machinery[52] - Asphalt products have gained recognition and adoption by local European customers during their entry into overseas markets, gradually extending their reputation[52] - The company has successively been awarded provincial-level and above honors such as National Enterprise Technology Center, National High-tech Enterprise, China Well-known Trademark, and Fujian Province Green Factory[52] Continuously Improving Quality and After-Sales Service Advantage The company continuously upgrades its quality management and after-sales service system, obtaining multiple international certifications such as ISO9001, ISO14001, ISO45001, and ISO50001 Its main products have passed multiple international import certifications, including EU CE and Russian GOST Intelligent after-sales service provides remote diagnostics and preventive maintenance through an IoT cloud platform, and the Mixing Academy offers technical guidance and training - The company has passed ISO9001:2015 Quality Management System Certification, ISO14001:2015 Environmental Management System Certification, ISO45001:2018 Occupational Health and Safety Management System Certification, and ISO50001:2018 Energy Management System Certification[53] - Main products have passed multiple international import certifications, including EU CE certification and Russian GOST certification[53] - The company's after-sales service system is rapidly upgrading in intelligence and immediacy, connecting to customer site equipment control systems through an IoT cloud platform to provide value-added services such as remote diagnostics and preventive maintenance[53] - The company provides technical guidance services and equipment operation training for customer technical personnel or operators through the establishment of the Mixing Academy[53] Main Operating Conditions During the Reporting Period This section primarily analyzes the changes in the company's financial statement items during the reporting period, particularly the year-on-year changes in operating revenue, costs, expenses, and cash flows, as well as major changes in the asset and liability structure - Operating revenue decreased by 16.49% year-on-year, and operating costs decreased by 19.98% year-on-year[56] - Net cash flow from operating activities increased by 1,475.03% year-on-year, primarily due to increased collection of goods payments and reduced material expenses in the current period[55][56] - Net cash flow from investing activities significantly decreased, mainly due to increased investment in wealth management products in the current period[55][56] Analysis of Main Business This section presents the year-on-year changes in operating revenue, operating costs, various expenses, and net cash flow from operating activities during the reporting period, through a table analyzing changes in relevant financial statement items Financial Statement Item Changes | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 499,394,484.30 | 598,035,747.25 | -16.49 | | Operating Costs | 354,150,855.04 | 442,587,818.71 | -19.98 | | Selling Expenses | 23,392,107.47 | 22,750,988.64 | 2.82 | | Administrative Expenses | 25,761,247.75 | 24,412,147.07 | 5.53 | | Financial Expenses | -2,644,969.19 | -3,662,967.46 | N/A | | R&D Expenses | 43,815,120.93 | 39,909,209.24 | 9.79 | | Net Cash Flow from Operating Activities | 85,531,558.87 | 5,430,473.03 | 1,475.03 | | Net Cash Flow from Investing Activities | -176,799,871.01 | -7,743,897.71 | N/A | | Net Cash Flow from Financing Activities | -29,172,859.42 | -36,636,505.28 | N/A | Analysis of Assets and Liabilities This section analyzes the composition and year-on-year changes in the company's assets and liabilities at the end of the reporting period, showing growth in both total assets and net assets, but significant changes in some current and non-current asset accounts, as well as a notable increase in accounts payable and taxes payable - Total assets increased by 6.85% year-on-year, and net assets attributable to shareholders of the listed company increased by 2.27% year-on-year[23] - Accounts receivable financing at the end of the period decreased by 74.26% compared to the end of the prior year, mainly due to a reduction in unexpired bank acceptance bills held at the end of the period[58] - Prepayments at the end of the period increased by 40.06% compared to the end of the prior year, mainly due to increased prepayments for outsourced components of large orders[58] - Accounts payable at the end of the period increased by 68.66% compared to the end of the prior year, mainly due to increased procurement in the reporting period[58] - Taxes payable at the end of the period increased by 146.69% compared to the end of the prior year, mainly due to increased VAT and corporate income tax payable at the end of the period[58] Analysis of Investment Status This section discloses the company's significant non-equity investments and financial assets measured at fair value during the reporting period, including investment in the intelligent manufacturing equipment industrial park project and foreign exchange derivative transactions - The company plans to invest approximately 2 Billion Yuan in two phases to construct the NFLG Intelligent Manufacturing Equipment Industrial Park in Quanzhou Taiwanese Investment Zone[59] - On April 23, 2025, the company's board of directors approved the "Proposal on Conducting Foreign Exchange Derivative Transactions for 2025," with a total estimated amount not exceeding 40 Million US Dollars, adhering to hedging principles and avoiding speculative arbitrage transactions[62][64] Changes in Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (Yuan) | Fair Value Change Gains/Losses for Current Period (Yuan) | Purchase Amount for Current Period (Yuan) | Sale/Redemption Amount for Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial assets held for trading | 404,456,768.01 | 2,778,610.20 | 2,493,120,000.00 | 2,390,177,768.01 | 510,177,610.20 | | Accounts receivable financing | 522,285.65 | -387,860.65 | - | - | 134,425.00 | | Total | 404,979,053.66 | 2,778,610.20 | 2,493,120,000.00 | 2,390,177,768.01 | 510,312,035.20 | Derivative Investments for Hedging Purposes During the Reporting Period The company engages in foreign exchange swap transactions and sells foreign exchange call options as derivative investments for hedging purposes to mitigate exchange rate fluctuation risks, recognizing an investment income of 0.019 Million Yuan during the reporting period - The company conducts foreign exchange swap transactions and sells foreign exchange call options, adhering to hedging principles and avoiding speculative arbitrage transactions[62] - During the reporting period, foreign exchange swap transactions recognized an investment income of 0.006 Million Yuan, and selling call options recognized an investment income of 0.013 Million Yuan[62] - The company implements risk control measures such as institutional safeguards, selection of trading counterparties and products, strict adherence to trading procedures, and dedicated personnel to manage market risk, liquidity risk, credit risk, and internal operational risk[63][64] Analysis of Major Holding and Participating Companies This section discloses the financial performance of the company's major subsidiary, NFLG Roadbuilding Machinery (Xiantao) Co., Ltd., whose net profit significantly impacts the company's net profit by more than 10% Financial Performance of Major Subsidiary (NFLG Roadbuilding Machinery (Xiantao) Co., Ltd.) | Indicator | Amount (Yuan) | | :--- | :--- | | Registered Capital | 10,000,000.00 | | Total Assets | 536,080,009.98 | | Net Assets | 113,738,387.34 | | Operating Revenue | 86,568,104.10 | | Operating Profit | 5,993,312.58 | | Net Profit | 5,471,747.64 | - NFLG Roadbuilding Machinery (Xiantao) Co., Ltd.'s main business revenue was 85,454,827.93 Yuan, and main business profit was 4,871,521.66 Yuan[69] Other Disclosures This section discloses potential risks faced by the company, including risks related to continuous product R&D and innovation, loss of core personnel and technology leakage, macroeconomic fluctuations and policy adjustments, and the challenge of continuously developing new customers - The company faces risks in continuous product R&D and innovation; if new products or technologies cannot be developed on schedule, or if new products lack competitive advantages, there may be R&D failure risks[70] - The company faces risks of core personnel loss and technology leakage; intensified market competition may lead to the loss of core personnel, which could result in technology leakage and weaken the company's competitive advantage[71] - The company's downstream industry is significantly affected by the macroeconomy; adjustments and fluctuations in the macroeconomy or major adverse changes in national macroeconomic and industrial policies could negatively impact the company's profitability and operating performance[72][73] - The company faces risks in continuously developing new customers; if the company encounters difficulties in customer and market development due to declining product competitiveness or changes in downstream market demand in the future, it will adversely affect the company's performance[74] Corporate Governance, Environment, and Society Profit Distribution or Capital Reserve Conversion Plan This chapter primarily discloses the company's proposed profit distribution plan, explicitly stating that there is no profit distribution or capital reserve conversion plan for this semi-annual period - The proposed profit distribution plan or capital reserve conversion plan for this semi-annual period is "None"[76] Significant Matters Fulfillment of Commitments This section details the commitments made by the company's actual controllers, shareholders, related parties, and the company itself regarding share lock-up, resolution of horizontal competition, related party transactions, property defects, truthfulness of the prospectus, share price stabilization, and measures to mitigate dilution of immediate returns, all of which were strictly fulfilled during the reporting period - The company's controlling shareholders and actual controllers, Fang Qingxi, Chen Guihua, and Fang Kai, committed not to transfer shares within 36 months from the date of the company's stock listing, and to extend the lock-up period by 6 months under specific conditions[80][81] - The company, its actual controllers, directors, supervisors, and senior management committed that the prospectus contains no false records, misleading statements, or major omissions, and will bear corresponding legal liabilities[85][86][87][88] - The company, its major shareholders, directors, and senior management committed to taking measures such as share repurchase or increase in holdings to stabilize the share price when stabilization measures are triggered[92][93][94][95][96][97] - The company, its actual controllers, directors, and senior management committed to taking measures such as strengthening supervision of fundraising projects, improving operational efficiency, and perfecting the profit distribution system to mitigate the dilution of immediate returns[97][98][99][100] Significant Contracts and Their Performance This section primarily discloses the company's significant guarantees performed and not yet fully performed during the reporting period, involving repurchase guarantees provided for customer financing lease businesses - The company provided a repurchase guarantee for its dealer, Shenyang Zhihe, for purchasing company equipment through a financing lease, with a guarantee amount not exceeding 40.25 Million Yuan[105] - As of the end of the reporting period, the company's total external guarantee balance was 3.96 Million Yuan, accounting for 0.30% of the company's net assets[105] - This guarantee is a repurchase guarantee provided for customer financing lease business, falling within the scope of approval by the board of directors and shareholders' meeting[105][106] Explanation of Progress in Use of Raised Funds This section explains the overall use of the company's raised funds and details of the fundraising projects, including the Xiantao Production Base Expansion and R&D Center Project, Smart IoT System Platform Project, and Supplementary Working Capital Project, also disclosing the cash management of idle raised funds - Total raised funds were 643.67 Million Yuan, with net raised funds of 551.26 Million Yuan[108] - As of the end of the reporting period, cumulative raised funds invested amounted to 135.76 Million Yuan, with an investment progress of 24.63%[108] Overall Use of Raised Funds As of the end of the reporting period, the company's initial public offering raised funds have cumulatively invested 135.76 Million Yuan, with an investment progress of 24.63%, and the amount invested in the current year is 0.87 Million Yuan Overall Use of Raised Funds | Source of Raised Funds | Total Raised Funds (Ten Thousand Yuan) | Net Raised Funds (Ten Thousand Yuan) | Total Committed Investment of Raised Funds in Prospectus (Ten Thousand Yuan) | Total Raised Funds Cumulatively Invested as of End of Reporting Period (Ten Thousand Yuan) | Cumulative Investment Progress of Raised Funds as of End of Reporting Period (%) | Amount Invested in Current Year (Ten Thousand Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | 64,366.64 | 55,125.72 | 55,125.72 | 13,575.59 | 24.63 | 87.35 | Details of Fundraising Projects This section details the specific investment status of fundraising projects, where the Xiantao Production Base Expansion and R&D Center Project and the Smart IoT System Platform Project experienced implementation delays due to plan optimization and technological iteration, while the Supplementary Working Capital Project has been over-completed - The Xiantao Production Base Expansion and R&D Center Project plans to invest 351.43 Million Yuan, with no investment in the current period, cumulative investment of 0, investment progress N/A, and is expected to reach its intended usable state by December 2026[109] - The Smart IoT System Platform Project plans to invest 69.83 Million Yuan, with 0.87 Million Yuan invested in the current year, cumulative investment of 3.90 Million Yuan, investment progress of 5.59%, and is expected to reach its intended usable state by December 2026[109] - The Supplementary Working Capital Project plans to invest 130 Million Yuan, with no investment in the current period, cumulative investment of 131.85 Million Yuan, investment progress of 101.43%, and is completed[109] - The implementation progress of the Xiantao Production Base Expansion and R&D Center Project is delayed due to the company's optimization and demonstration of the original project plan[110] - The implementation progress of the Smart IoT System Platform Project is delayed because the iteration of new products and technologies imposes higher requirements on project implementation, affected by the R&D plan execution progress and system complexity[110] Other Uses of Raised Funds During the Reporting Period During the reporting period, the company used temporarily idle raised funds for cash management, with an approved limit not exceeding 450 Million Yuan, and the cash management balance at period-end was 438.85 Million Yuan, not exceeding the authorized limit - On April 23, 2025, the company's board of directors approved the use of temporarily idle raised funds not exceeding 450 Million Yuan for cash management, with a term from the date of approval by the 2024 Annual Shareholders' Meeting until the date of the 2025 Annual Shareholders' Meeting[114] - As of the end of the reporting period, the cash management balance was 438.85 Million Yuan, not exceeding the authorized limit[113] Share Changes and Shareholder Information Changes in Share Capital During the reporting period, the company's total share capital remained unchanged at 108,406,667.00 shares - During the reporting period, the company's total share capital and share capital structure remained unchanged, with both the beginning and end of period total shares being 108,406,667.00 shares[116][118] Shareholder Information As of the end of the reporting period, the total number of ordinary shareholders was 12,055 This section details the shareholdings of the top ten shareholders, including the number of shares held, proportion, and restricted conditions, and explains the associated relationships between major shareholders - Total number of ordinary shareholders as of the end of the reporting period: 12,055 households[118] - The top three shareholders, Fang Qingxi, Chen Guihua, and Fang Kai, collectively hold 66.91% of the company's shares, all being domestic natural persons with spousal, father-son, and mother-son relationships, respectively[120][121][123] - Among the top ten shareholders, Fang Qingxi, Chen Guihua, Fang Kai, and partnerships such as Quanzhou Zhicheng, Quanzhou Fangyao, Quanzhou Zhixin, and Quanzhou Fanghua hold a significant number of restricted shares, with the restriction period being 42 months from the listing date[120][122] Bond-Related Information Corporate Bonds and Non-Financial Enterprise Debt Financing Instruments This chapter states that the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during the reporting period - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[126] Convertible Corporate Bonds This chapter states that the company had no convertible corporate bonds during the reporting period - The company has no convertible corporate bonds[126] Financial Report Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity as of June 30, 2025, comprehensively presenting the company's financial position and operating results at the end of the reporting period - The consolidated balance sheet as of June 30, 2025, shows the company's total assets at 2,186,752,876.87 Yuan, total liabilities at 848,088,228.87 Yuan, and total owners' equity at 1,338,664,648.00 Yuan[131][132] - The consolidated income statement shows total operating revenue of 499,394,484.30 Yuan and net profit of 57,762,409.09 Yuan for the first half of 2025[138][139] - The consolidated cash flow statement shows net cash flow from operating activities of 85,531,558.87 Yuan, net cash flow from investing activities of -176,799,871.01 Yuan, and net cash flow from financing activities of -29,172,859.42 Yuan for the first half of 2025[145] Consolidated Balance Sheet As of June 30, 2025, the company's total consolidated assets amounted to 2.187 Billion Yuan, with a high proportion of current assets, where financial assets held for trading and inventories are the main current assets In terms of liabilities, contract liabilities and notes payable are the main current liabilities Consolidated Balance Sheet Key Data (June 30, 2025) | Item | Amount (Yuan) | | :--- | :--- | | Cash and bank balances | 362,065,385.13 | | Financial assets held for trading | 510,177,610.20 | | Accounts receivable | 325,276,253.02 | | Inventories | 676,726,445.42 | | Total current assets | 2,054,651,763.91 | | Fixed assets | 92,011,274.90 | | Intangible assets | 28,279,615.46 | | Total non-current assets | 132,101,112.96 | | Total Assets | 2,186,752,876.87 | | Notes payable | 138,854,780.36 | | Accounts payable | 101,768,527.27 | | Contract liabilities | 454,719,325.07 | | Total current liabilities | 840,671,964.52 | | Total Liabilities | 848,088,228.87 | | Total equity attributable to owners of the parent company | 1,338,664,648.00 | | Total Equity | 1,338,664,648.00 | Consolidated Income Statement In the first half of 2025, the company's total operating revenue decreased by 16.49% year-on-year, and net profit decreased by 15.62% year-on-year Among various expenses, R&D expenses increased, and financial expenses were negative (income) Consolidated Income Statement Key Data (Jan-Jun 2025) | Item | Amount for Current Period (Yuan) | Amount for Prior Period (Yuan) | | :--- | :--- | :--- | | Total operating income | 499,394,484.30 | 598,035,747.25 | | Total operating costs | 449,237,954.33 | 532,207,530.94 | | Operating costs | 354,150,855.04 | 442,587,818.71 | | Selling expenses | 23,392,107.47 | 22,750,988.64 | | Administrative expenses | 25,761,247.75 | 24,412,147.07 | | R&D expenses | 43,815,120.93 | 39,909,209.24 | | Financial expenses | -2,644,969.19 | -3,662,967.46 | | Total profit | 61,307,900.79 | 71,095,259.66 | | Net profit | 57,762,409.09 | 68,453,463.46 | | Basic earnings per share (Yuan/share) | 0.53 | 0.63 | | Diluted earnings per share (Yuan/share) | 0.53 | 0.63 | Consolidated Cash Flow Statement In the first half of 2025, the company's net cash flow from operating activities significantly increased, net cash flow from investing activities was negative with increased outflows, and net cash flow from financing activities was negative with decreased outflows Consolidated Cash Flow Statement Key Data (Jan-Jun 2025) | Item | Amount for Current Period (Yuan) | Amount for Prior Period (Yuan) | | :--- | :--- | :--- | | Net cash flow from operating activities | 85,531,558.87 | 5,430,473.03 | | Net cash flow from investing activities | -176,799,871.01 | -7,743,897.71 | | Net cash flow from financing activities | -29,172,859.42 | -36,636,505.28 | | Net increase in cash and cash equivalents | -120,309,046.35 | -38,085,901.73 | | Cash and cash equivalents at end of period | 132,880,060.95 | 162,932,201.47 | - Total cash inflow from operating activities was 621,437,156.31 Yuan, and total cash outflow from operating activities was 535,905,597.44 Yuan[144][145] - Total cash inflow from investing activities was 2,399,911,533.27 Yuan, and total cash outflow from investing activities was 2,576,711,404.28 Yuan[145] Company Profile This section introduces Fujian NFLG Roadbuilding Machinery Co., Ltd.'s establishment history, changes in registered capital, stock listing status, and main operating activities The company was established in 1997, listed on the main board of the Shanghai Stock Exchange in 2022, and primarily engages in the production, R&D, and sales of roadbuilding machinery and engineering mixing machinery - The company's predecessor was Fujian NFLG Roadbuilding Machinery Co., Ltd., established on May 9, 1997, with its registered address at No. 700, Sports Street, High-tech Industrial Park, Fengze District, Quanzhou City[163] - On November 8, 2022, the company's shares were listed on the main board of the Shanghai Stock Exchange, with the stock abbreviation "NFLG" and stock code 603280 After the initial public offering, the company's share capital increased to 108,406,667.00 Yuan[165] - The company's main operating activities include the production, R&D, and sales of roadbuilding machinery, engineering mixing machinery, and other construction machinery; installation of mechanical and electrical equipment; steel structure fabrication and steel structure engineering design[166] Basis of Preparation of Financial Statements This section states that the company's financial statements are prepared on a going concern basis, adhering to the provisions of Accounting Standards for Business Enterprises and their application guidelines and interpretations, and disclosing financial information in accordance with relevant regulations of the China Securities Regulatory Commission The company assessed its going concern ability and found no affecting matters - The company's financial statements are prepared on a going concern basis, and recognition and measurement are performed in accordance with the Accounting Standards for Business Enterprises and their application guidelines and interpretations, based on actual transactions and events[168] - The company assessed its ability to continue as a going concern for 12 months from the end of the reporting period and found no matters affecting its going concern ability, thus preparing financial statements on a going concern basis is reasonable[169] Significant Accounting Policies and Estimates This section elaborates on the significant accounting policies and estimates adopted by the company in its financial reporting, covering business combinations, preparation of consolidated financial statements, financial instruments, inventories, contract assets, long-term equity investments, fixed assets, intangible assets, employee compensation, revenue recognition, government grants, deferred income tax, and leases, ensuring the accuracy and comparability of financial reports - The financial statements prepared by the company comply with the requirements of Accounting Standards for Business Enterprises, truly and completely reflecting the company's financial position, operating results, changes in shareholders' equity, and cash flows, among other relevant information[171] - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, with a normal operating cycle of one year, and the recording currency is RMB[172][173][174] - Financial assets are measured at fair value upon initial recognition, and subsequent measurement depends on their classification, including financial assets measured at amortized cost, at fair value through profit or loss, and at fair value through other comprehensive income[217] - The company recognizes revenue when it satisfies a performance obligation in the contract, i.e., when the customer obtains control of the relevant goods, and distinguishes revenue recognition at a point in time or over a period based on the type of performance obligation[341][342][344] Financial Instruments This section details the company's accounting methods for the recognition and derecognition of financial instruments, classification and measurement (including financial assets and liabilities measured at amortized cost, at fair value through profit or loss, and at fair value through other comprehensive income), derivative financial instruments and embedded derivatives, impairment of financial instruments (expected credit loss measurement), and transfer and offsetting of financial assets - Financial assets are measured at fair value upon initial recognition; for financial assets measured at fair value through profit or loss, related transaction costs are directly recognized in current profit or loss, while for other categories of financial assets, related transaction costs are included in their initial recognition amount[217] - For financial assets measured at amortized cost, debt investments measured at fair value through other comprehensive income, contract assets, lease receivables, loan commitments, and financial guarantee contracts, the company recognizes loss provisions based on expected credit losses[231] - For notes receivable, accounts receivable, accounts receivable financing, and contract assets, regardless of whether a significant financing component exists, the company measures loss provisions based on expected credit losses over the entire lifetime[234] Inventories This section describes the company's inventory classification, issuance valuation method, inventory system, and criteria and methods for recognizing and providing for inventory impairment provisions, using the weighted average method for valuation, perpetual inventory system, and measuring inventory impairment provisions at the lower of cost and net realizable value - Inventories include finished goods or merchandise held for sale in the ordinary course of business, work-in-progress in the production process, and materials and supplies consumed in the production process or rendering of services[264] - The company uses the weighted average method for valuing inventories issued, and adopts the perpetual inventory system, with physical counts performed at least once a year[265][266] - At the balance sheet date, inventories are measured at the lower of cost and net realizable value; if the cost of inventories is higher than their net realizable value, an inventory impairment provision is recognized and charged to current profit or loss[269] Fixed Assets This section explains the company's recognition criteria and depreciation methods for fixed assets Fixed assets are recognized at their actual cost upon acquisition and depreciated using the straight-line method, with different depreciation periods and annual depreciation rates for different asset categories - Fixed assets are recognized at their actual cost upon acquisition when it is probable that economic benefits associated with the fixed asset will flow to the enterprise and the cost of the fixed asset can be measured reliably[292][293] - Fixed assets are depreciated using the straight-line method, with a residual value rate of 5%[295] Fixed Asset Depreciation Periods and Annual Depreciation Rates | Category | Depreciation Period (Years) | Residual Value Rate (%) | Annual Depreciation Rate (%) | | :--- | :--- | :--- | :--- | | Buildings and Structures | 20.00 | 5.00 | 4.75 | | Machinery and Equipment | 5.00-10.00 | 5.00 | 9.50-19.00 | | Transportation Equipment | 5.00 | 5.00 | 19.00 | | Other Equipment | 5.00 | 5.00 | 19.00 | | Office Equipment | 3.00-5.00 | 5.00 | 19.00-31.67 | Intangible Assets This section describes the company's recognition, estimation of useful life, amortization methods for intangible assets, and the scope of capitalization and conditions for R&D expenditures Land use rights are amortized over their statutory useful life, computer software over its estimated useful life, and R&D expenditures are capitalized when specific conditions are met Estimated Useful Life of Intangible Assets with Finite Useful Lives | Item | Estimated Useful Life | Basis | | :--- | :--- | :--- | | Land Use Rights | 50 years | Statutory useful life | | Computer Software | 5 years | Determined based on the period expected to bring economic benefits to the company | - The scope of R&D expenditures includes employee compensation for R&D personnel, direct material costs, patent application fees, depreciation and long-term deferred expenses, intangible asset amortization expenses, and other expenses[307] - Expenditures in the development phase can only be recognized as intangible assets when they simultaneously meet conditions such as technical feasibility of completing the intangible asset, intention to complete and use or sell it, how the intangible asset will generate economic benefits, availability of sufficient technical and financial resources, and reliable measurement of expenditures attributable to the development phase[310][311] Revenue This section details the company's accounting policies for revenue recognition and measurement, including the timing of revenue recognition, allocation of transaction prices, treatment of variable consideration, significant financing components, sales return clauses, warranty obligations, and customer unexercised contractual rights, distinguishing between different revenue recognition methods for goods sales contracts and service contracts - The company recognizes revenue when it satisfies a performance obligation in the contract, i.e., when the customer obtains control of the relevant goods[341] - Domestic sales revenue: If no installation and commissioning obligations are required, revenue is recogniz