麦格米特(002851) - 2025 Q2 - 季度财报

Part I Important Notice, Table of Contents, and Definitions This section provides important notices, a detailed table of contents, and definitions of key terms used throughout the report, ensuring clarity and completeness Important Notice The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[3] - Company head Tong Yongsheng, chief accountant Wang Tao, and head of accounting department Luo Ying declare the financial report is true, accurate, and complete[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4] Table of Contents This report's clear table of contents lists nine main chapters covering important notices, company profile, management discussion and analysis, corporate governance, significant events, share changes, bond information, financial reports, and other submitted data, with starting page numbers Report Chapter Directory | Chapter | Title | Starting Page | | :--- | :--- | :--- | | Section I | Important Notice, Table of Contents, and Definitions | 2 | | Section II | Company Profile and Key Financial Indicators | 7 | | Section III | Management Discussion and Analysis | 10 | | Section IV | Corporate Governance, Environment and Society | 37 | | Section V | Significant Events | 45 | | Section VI | Changes in Shares and Shareholder Information | 56 | | Section VII | Bond-Related Information | 61 | | Section VIII | Financial Report | 62 | | Section IX | Other Submitted Data | 228 | Reference Documents Directory The company's reference documents include signed and sealed financial statements, the company's financial reports, all company documents and original announcements disclosed on Juchao Information Network, and the chairman's signed original semi-annual report, all kept at the company's headquarters secretary's office - Reference documents include signed and sealed financial statements, company-issued financial reports, original documents and announcements disclosed on Juchao Information Network, and the chairman's signed original semi-annual report[8] - These reference documents are kept at the company's headquarters Board Secretary's Office[9] Definitions This section provides definitions for common terms used in the report, including the company name, major wholly-owned and controlled subsidiaries (e.g., Zhuzhou Megmeet, Hunan Weilang, Yihe Sanitary Ware), and important financial and legal concepts (e.g., reporting period, exchange, company law), clarifying the referential relationships of various entities Partial Definitions | Term | Definition | | :--- | :--- | | Company, the Company, Megmeet | Shenzhen Megmeet Electrical Co., Ltd | | Zhuzhou Electrical | Zhuzhou Megmeet Electrical Co., Ltd., a wholly-owned subsidiary of the Company | | Reporting Period, This Reporting Period, This Period | January 1, 2025 to June 30, 2025 | | Prior Period, Same Period Last Year | January 1, 2024 to June 30, 2024 | Part II Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, including its stock details, legal representative, and key financial performance indicators for the reporting period I. Company Profile The company's stock ticker is "Megmeet" (stock code 002851), listed on the Shenzhen Stock Exchange, with Tong Yongsheng as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Megmeet | | Stock Code | 002851 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Shenzhen Megmeet Electrical Co., Ltd | | Legal Representative | Tong Yongsheng | - During the reporting period, there were no changes in the company's contact information, information disclosure, or document storage locations[16][17] IV. Key Accounting Data and Financial Indicators The company's operating revenue increased by 16.52% to 4.67 billion yuan in the current reporting period, but net profit attributable to shareholders decreased by 44.82% to 174 million yuan, with non-recurring net profit down 49.97% Key Accounting Data and Financial Indicators (Current Reporting Period vs. Same Period Last Year) | Indicator | Current Reporting Period (yuan) | Same Period Last Year (Adjusted, yuan) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,673,733,754.96 | 4,011,199,616.98 | 16.52% | | Net Profit Attributable to Shareholders of the Listed Company | 173,590,606.69 | 314,584,753.01 | -44.82% | | Net Profit Attributable to Shareholders of the Listed Company Excluding Non-recurring Gains and Losses | 140,918,936.94 | 281,655,934.63 | -49.97% | | Net Cash Flow from Operating Activities | 192,100,900.06 | 66,158,591.76 | 190.36% | | Basic Earnings Per Share (yuan/share) | 0.3199 | 0.6314 | -49.33% | | Diluted Earnings Per Share (yuan/share) | 0.3152 | 0.5975 | -47.25% | | Weighted Average Return on Net Assets | 2.85% | 6.92% | -4.07% | | Total Assets (End of Period, yuan) | 12,412,907,198.01 | 11,985,590,774.79 | 3.57% | | Net Assets Attributable to Shareholders of the Listed Company (End of Period, yuan) | 6,219,767,827.57 | 6,014,447,654.28 | 3.41% | - Accounting policy change: The Ministry of Finance's "Compilation of Application Guidelines for Enterprise Accounting Standards 2024" and "Interpretation No. 18 of Enterprise Accounting Standards" clarify that warranty expenses should be included in operating costs, and the company has retrospectively adjusted this since December 6, 2024[19] V. Differences in Accounting Data under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between financial reports disclosed under international or overseas accounting standards and Chinese accounting standards during the reporting period - The company's reporting period shows no differences in net profit and net assets between financial reports disclosed under international accounting standards and Chinese accounting standards[21] - The company's reporting period shows no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese accounting standards[22] VI. Non-recurring Gains and Losses Items and Amounts The company's total non-recurring gains and losses for the current reporting period amounted to 32.67 million yuan, primarily comprising government subsidies, fair value changes and disposal gains/losses of financial assets, and disposal gains/losses of non-current assets Non-recurring Gains and Losses Items and Amounts | Item | Amount (yuan) | Explanation | | :--- | :--- | :--- | | Gains and losses from disposal of non-current assets | -518,136.36 | Asset disposal gains and losses | | Government subsidies included in current profit and loss | 16,590,680.64 | Government subsidies | | Gains and losses from changes in fair value and disposal of financial assets and liabilities held by non-financial enterprises | 24,116,738.74 | Gains and losses from changes in fair value of trading financial assets, other non-current financial assets, and investment income from disposal of trading financial assets | | Other non-operating income and expenses apart from the above | -3,457,826.34 | | | Other profit and loss items that meet the definition of non-recurring gains and losses | 1,157,842.49 | | | Less: Income tax impact | 5,074,295.48 | | | Impact on minority interests (after tax) | 143,333.94 | | | Total | 32,671,669.75 | | - Other profit and loss items that meet the definition of non-recurring gains and losses primarily relate to individual income tax handling fee refunds[24] Part III Management Discussion and Analysis This section provides a comprehensive analysis of the company's business operations, core competitiveness, financial performance, investment activities, and risk management strategies during the reporting period I. Main Business Activities of the Company During the Reporting Period The company, an electrical automation firm based on power electronics and related control technologies, focuses on power conversion, automation control, and applications, achieving steady revenue growth despite market challenges - The company is based on power electronics and related control technologies, focusing on power conversion, automation control, and applications[44] - The company's products primarily include smart home appliance electronic controls, power supply products, new energy and rail transit components, industrial automation, smart equipment, and precision connectors[46] 2025 H1 Company Overall Financial Performance | Indicator | Amount (billion yuan) | Year-on-year Change | | :--- | :--- | :--- | | Operating Revenue | 4.67 | +16.52% | | Operating Profit | 0.215 | -34.83% | | Net Profit Attributable to Shareholders of the Listed Company | 0.174 | -44.82% | - In the first half of 2025, the company's R&D expenses were 514 million yuan, a year-on-year increase of 15.24%, accounting for 11.00% of sales revenue[50] - In the first half of 2025, the company achieved direct overseas revenue of 1.522 billion yuan, a year-on-year increase of 9.21%, accounting for 32.57% of total sales revenue; total overseas revenue (direct + indirect) accounted for over 40%[52] (I) Industry Overview The company operates in the electrical automation industry, with diverse downstream applications, experiencing growth in smart home appliances, power products (especially AI server power), new energy vehicles, industrial automation, smart equipment, and precision connectors - Smart home appliance market: Global market size is expected to reach $68.7 billion in 2025 (9.8% year-on-year growth), with China's home appliance retail sales reaching 453.7 billion yuan in H1 2025 (9.2% year-on-year growth)[27] - Power product market: Domestic market size approximately 385.3 billion yuan in 2024 (8% year-on-year growth), expected to exceed 540 billion yuan in 2025. Global AI server power market is projected to grow from $2.846 billion in 2024 to $60.81 billion by 2031 (45.00% CAGR from 2025-2031)[30][31] - New energy vehicles and rail transit: In January-June 2025, new energy vehicle production and sales reached 6.968 million units and 6.937 million units respectively, up 41.4% and 40.3% year-on-year, with market penetration reaching 44.3%. Exports reached 1.06 million units, a surge of 75.2% year-on-year[33][35] - Industrial automation: Market size reached 196.8 billion yuan in H1 2025 (16.2% year-on-year growth). SCARA robot localization rate increased to 62%, collaborative robots to 58%, and core controller localization rate exceeded 40% for the first time[37] - Smart equipment industry: Industry scale further climbed to 2.1 trillion yuan in H1 2025 (18.5% year-on-year growth)[40] - Precision connection market: Global market size will reach $112.4 billion in 2025, with China's market size reaching 231.2 billion yuan[42] (II) Company's Main Business and Product Overview The company, centered on power electronics and control technologies, has developed platforms for power conversion hardware, digital power control, and automation software, expanding into mechatronics and thermal management integration, with no significant changes in business or product uses during the reporting period - The company has built power conversion hardware technology platforms, digital power control technology platforms, and automation control and communication software platforms, expanding into mechatronics and thermal management integration[45] - Main products include smart home appliance electronic control products (e.g., inverter home appliance power controllers, smart sanitary ware), power supply products (e.g., medical power supplies, communication and server power supplies), new energy and rail transit components (e.g., PEU, MCU, OBC), industrial automation (e.g., servo and inverter drives, PLC), smart equipment (e.g., digital welding machines, industrial microwave equipment), and precision connectors (e.g., shaped electromagnetic wires, FFC)[46] - During the reporting period, there were no significant changes in the company's main business activities, main products, or their uses[47] (III) Overall Business Overview of the Company During the Reporting Period Despite a challenging domestic economic environment, the company achieved a 16.52% increase in operating revenue in H1 2025, but net profit declined by 44.82% due to cost pressures and underperforming inverter home appliance business, while maintaining high R&D investment and expanding global presence 2025 H1 Company Overall Financial Performance | Indicator | Amount (billion yuan) | Year-on-year Change | | :--- | :--- | :--- | | Operating Revenue | 4.67 | +16.52% | | Operating Profit | 0.215 | -34.83% | | Net Profit Attributable to Shareholders of the Listed Company | 0.174 | -44.82% | - The company faces unfavorable conditions such as weaker-than-expected consumption recovery, real estate drag, increased global trade friction, and intensified industry competition, leading to damage to operating gross profit margin and profit margin[49] - In the first half of 2025, the company's R&D expenses were 514 million yuan, a year-on-year increase of 15.24%, accounting for 11.00% of sales revenue[50] - New business expansion is progressing smoothly, including data center general and AI server power supplies, home energy products, office automation equipment power supplies, PC equipment power supplies, new energy vehicle thermal management components, and vehicle-mounted oxygen concentrators[50] - The company will focus on four key areas: data center server power supplies, new energy vehicles, solar storage and charging, and smart home appliances, accelerating technological iteration[51] - In the first half of 2025, the company achieved direct overseas revenue of 1.522 billion yuan, a year-on-year increase of 9.21%, accounting for 32.57% of total sales revenue; total overseas revenue (direct + indirect) accounted for over 40%[52] (4) Overall Business Operations by Segment Smart home appliance electronic control product sales revenue grew by 6.97%, with smart sanitary ware performing well despite a decline in inverter home appliance business; new energy and rail transit components saw a significant 150.94% increase, driven by new clients and orders 2025 H1 Sales Revenue by Business Segment | Business Segment | Sales Revenue (billion yuan) | Year-on-year Growth | Proportion of Operating Revenue | | :--- | :--- | :--- | :--- | | Smart Home Appliance Electronic Control Products | 2.146 | +6.97% | 45.92% | | Power Supply Products | 1.157 | +5.48% | 24.77% | | New Energy and Rail Transit Components | 0.508 | +150.94% | 10.87% | | Industrial Automation Products | 0.389 | +27.90% | 8.32% | | Smart Equipment Products | 0.238 | +23.45% | 5.09% | | Precision Connection Products | 0.204 | +12.75% | 4.37% | - Smart home appliance electronic control products: Inverter home appliance business sales declined due to intensified domestic competition and abnormal rainy weather in India, but smart sanitary ware business achieved good growth[54][55][56] - Power supply products: OA power, commercial display power, PC power, industrial power, medical power, and solar storage and charging businesses all grew. The company has established a partnership with NVIDIA Corporation, becoming one of its designated data center component providers, actively participating in the construction of Blackwell series architecture data center hardware systems[60][61][63] - New energy and rail transit components: Benefited from new incremental customer demand and smooth project finalization since 2024, revenue achieved high growth of more than double, with over 80 ongoing finalized projects[66] - Operations management: The company continues to promote marketing system integration, global R&D, and manufacturing resource layout. Changsha Megmeet Global R&D Center has been activated, and the first phase of the Thailand production base is about to be put into use. The company plans to further expand its manufacturing and R&D platforms through a private placement project[77][78] - In the first half of 2025, the company added 3 new associate companies, with a total external equity investment of 110 million yuan, accumulating 46 external equity investment companies and a total investment of 754 million yuan, achieving fair value revaluation gains and investment income totaling 595 million yuan[79] II. Analysis of Core Competitiveness The company has built strong comprehensive competitiveness through a clear strategic layout, continuous R&D innovation, multi-point core technology breakthroughs, strengthened platform construction, optimized talent team, extensive high-quality customer resources, and comprehensive domestic and international market布局 - Clear and effective strategic layout: Focusing on power electronics and related control core technologies, extending to cross-cutting and emerging fields, from board-level to system-level products, forming synergistic effects[83][84] - Continuous innovative R&D technical advantages: Maintaining R&D investment at around 11% of sales revenue for many years, with R&D expenses of 514 million yuan in H1 2025, employing approximately 3,000 R&D engineers (accounting for 35.14%), and holding over 1,890 valid patents[85] - Multi-point core technology breakthroughs, gradually expanding from points to lines to surfaces: Forming diversified product layouts and technological integration in environmental control, vehicle technology, AI data center power supply systems, and other fields[86][87] - Continuously strengthened platform construction: Adopting a "business unit + resource platform" matrix operational model, providing support for marketing, R&D, testing, supply chain, financial human resources, and IT[88][89] - Continuously optimized talent team: Building a highly educated, high-level, and international management team, strengthening core employee cohesion through equity incentive plans (2022 stock options, 2025 restricted stock)[90][91] - Extensive and high-quality customer resources: Accumulating a large number of leading domestic and international key customers, deeply participating in customer product demand design and solution development[92] - Comprehensive domestic and international market layout: Establishing overseas R&D centers in the United States and Germany, investing in production capacity construction in Thailand, India, and other overseas locations, and setting up representative offices in multiple global locations, with overseas revenue significantly supporting the company's profitability[93][94] III. Main Business Analysis The company's main business achieved operating revenue of 4.674 billion yuan in the reporting period, a 16.52% increase, but operating costs grew by 22.13%, leading to a general decline in gross profit margins across most segments Major Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (yuan) | Same Period Last Year (yuan) | Year-on-year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 4,673,733,754.96 | 4,011,199,616.98 | 16.52% | | | Operating Cost | 3,642,245,057.73 | 2,982,187,862.62 | 22.13% | | | Selling Expenses | 181,033,293.21 | 163,481,189.83 | 10.74% | | | Administrative Expenses | 134,814,094.26 | 108,484,667.58 | 24.27% | | | Financial Expenses | -3,221,948.05 | 13,159,408.65 | -124.48% | Primarily due to significant convertible bond interest expenses recognized in the prior period | | Income Tax Expenses | 24,247,335.98 | 8,951,463.24 | 170.88% | Primarily due to increased profitability of subsidiaries in the current period | | R&D Investment | 513,934,460.44 | 445,973,663.15 | 15.24% | | | Net Cash Flow from Operating Activities | 192,100,900.06 | 66,158,591.76 | 190.36% | Primarily due to increased cash flow from sales collections in the current period | | Net Cash Flow from Investing Activities | -29,264,234.65 | -150,650,138.46 | 80.57% | Primarily due to reduced purchases of wealth management products in the current period | | Net Cash Flow from Financing Activities | -87,655,693.97 | 741,991,013.97 | -111.81% | Primarily due to repayment of maturing borrowings in the current period | | Net Increase in Cash and Cash Equivalents | 73,715,045.76 | 657,075,490.80 | -88.78% | | Operating Revenue Composition (by Product, Industry, Region) | Category | Item | Amount (yuan) | Proportion of Operating Revenue | Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | | By Industry | Power Electronics | 4,469,317,777.17 | 95.63% | 16.70% | | | Precision Connection | 204,415,977.79 | 4.37% | 12.75% | | By Product | Smart Home Appliance Electronic Control Products | 2,146,015,327.51 | 45.92% | 6.97% | | | Power Supply Products | 1,157,457,696.69 | 24.77% | 5.48% | | | New Energy and Rail Transit Components | 508,131,345.60 | 10.87% | 150.94% | | | Industrial Automation | 388,638,918.74 | 8.32% | 27.90% | | | Smart Equipment | 238,060,576.69 | 5.09% | 23.45% | | | Precision Connection | 204,415,977.79 | 4.37% | 12.75% | | By Region | Domestic Sales | 3,151,615,629.71 | 67.43% | 20.41% | | | Export Sales | 1,522,118,125.25 | 32.57% | 9.21% | Main Business Gross Profit Margin Year-on-Year Change | Category | Item | Gross Profit Margin (Current Reporting Period) | Gross Profit Margin Change from Prior Year | | :--- | :--- | :--- | :--- | | By Industry | Power Electronics | 22.85% | -3.70% | | | Precision Connection | 5.07% | -1.70% | | By Product | Smart Home Appliance Electronic Control Products | 22.57% | -3.47% | | | Power Supply Products | 22.20% | -2.57% | | | New Energy and Rail Transit Components | 13.98% | -10.17% | | | Industrial Automation | 28.42% | -1.63% | | | Smart Equipment | 36.03% | +1.21% | | | Precision Connection | 5.07% | -1.70% | | By Region | Domestic Sales | 19.54% | -3.16% | | | Export Sales | 27.31% | -3.90% | IV. Non-Main Business Analysis The company's non-main business activities impacted total profit, with investment income of 3.886 million yuan (1.84% of total profit) from large-denomination deposit interest, and fair value change gains of 16.897 million yuan (7.99%) from investment companies Impact of Non-Main Business on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Explanation | | :--- | :--- | :--- | :--- | | Investment Income | 3,886,318.15 | 1.84% | Primarily interest income from large-denomination deposits | | Gains and Losses from Fair Value Changes | 16,896,710.43 | 7.99% | Primarily due to fair value changes of investment companies | | Asset Impairment | -13,199,738.69 | -6.24% | Primarily inventory depreciation losses | | Non-operating Income | 1,856,433.17 | 0.88% | Primarily fines and liquidated damages income | | Non-operating Expenses | 5,314,259.51 | 2.51% | Primarily asset write-offs and damage losses | | Other Income | 34,649,817.44 | 16.39% | Primarily government subsidies such as software tax refunds | | Credit Impairment Losses | -3,119,674.70 | -1.48% | Primarily provision for bad debts on accounts receivable | V. Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets reached 12.413 billion yuan, a 3.57% increase from the end of the previous year, while net assets attributable to shareholders increased by 3.41% to 6.22 billion yuan Significant Changes in Asset Composition (End of Period vs. End of Prior Year) | Item | End of Period Amount (yuan) | Proportion of Total Assets (End of Period) | End of Prior Year Amount (yuan) | Proportion of Total Assets (End of Prior Year) | Proportion Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 1,375,469,878.92 | 11.08% | 1,301,254,731.57 | 10.86% | 0.22% | No significant change | | Accounts Receivable | 2,511,706,672.55 | 20.23% | 2,576,229,639.77 | 21.49% | -1.26% | Primarily due to increased sales collections in the current period | | Inventories | 2,541,596,058.49 | 20.48% | 2,416,000,337.56 | 20.16% | 0.32% | No significant change | | Long-term Equity Investments | 282,888,787.00 | 2.28% | 211,924,372.02 | 1.77% | 0.51% | No significant change | | Fixed Assets | 1,902,865,332.63 | 15.33% | 1,747,361,778.40 | 14.58% | 0.75% | No significant change | | Short-term Borrowings | 982,710,891.13 | 7.92% | 1,093,999,544.23 | 9.13% | -1.21% | Primarily due to reduced borrowings in the current period | | Debt Investments | 105,429,342.10 | 0.85% | 241,523,787.54 | 2.02% | -1.17% | Primarily due to maturity and redemption of large-denomination deposits in the current period | Major Overseas Asset Information | Specific Asset Content | Asset Scale (million yuan) | Country/Region | Profitability (million yuan) | Proportion of Overseas Assets to Company's Net Assets | | :--- | :--- | :--- | :--- | :--- | | MEGMEET HONGKONG LIMITED | 1,911.21 | Hong Kong | Operating Revenue 1,224.01, Net Profit Attributable to Parent 120.64 | 7.64% | Assets and Liabilities Measured at Fair Value | Item | End of Period Book Value (yuan) | | :--- | :--- | | Trading Financial Assets | 143,791,808.49 | | Other Non-current Financial Assets | 944,172,897.96 | | Accounts Receivable Financing | 288,743,658.08 | | Total | 1,376,708,364.53 | VI. Investment Status Analysis The company's total investment for the reporting period was 425.13 million yuan, a 9.80% year-on-year increase, with significant investments in convertible bond projects and a remaining balance of unutilized funds Reporting Period Investment Amount | Indicator | Amount (yuan) | Year-on-year Change | | :--- | :--- | :--- | | Reporting Period Investment Amount | 425,126,260.98 | 9.80% | - Securities investment: Holds 23.1 million yuan in Huayang Racing shares, measured at fair value[113] 2019 Convertible Bond Raised Funds Utilization | Committed Investment Project | Committed Investment Amount (million yuan) | Actual Investment Amount (million yuan) | | :--- | :--- | :--- | | Supplement Working Capital | 151.0016 | 151.3625 | | Headquarters Base Construction Project | 180.2882 | 136.2567 | | Acquisition of 14% Equity in Zhejiang Yihe Sanitary Ware Co., Ltd. Project | 105.4480 | 105.4559 | | Megmeet Smart Industrial Center Construction Project | 211.7098 | 225.5084 | | Total | 648.4476 | 618.5835 | - As of June 30, 2025, the 2019 convertible bond raised funds had a cumulative utilization of 619 million yuan, with a remaining balance of 59.0444 million yuan (including 36.59 million yuan in wealth management products)[120] 2022 Convertible Bond Raised Funds Utilization | Committed Investment Project | Committed Investment Amount (million yuan) | Actual Investment Amount (million yuan) | | :--- | :--- | :--- | | Megmeet Hangzhou High-end Equipment Industrial Center Project | 300.00 | 307.2727 | | Megmeet Zhuzhou Base Expansion Project (Phase II) | 310.00 | 227.2479 | | Smart Warehousing Project | 250.00 | 168.8595 | | Supplement Working Capital | 353.2974 | 353.7135 | | Total | 1,213.2974 | 1,057.0936 | - As of June 30, 2025, the 2022 convertible bond raised funds had a cumulative utilization of 1.057 billion yuan, with a remaining balance of 189 million yuan (including 176 million yuan in wealth management products)[122] - The Headquarters Base Construction Project has been postponed to September 2026, and the Smart Warehousing Project to October 2026[125][126] VII. Major Asset and Equity Sales The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell significant assets during the reporting period[129] - The company did not sell significant equity during the reporting period[130] VIII. Analysis of Major Holding and Associate Companies This section discloses the financial performance of Zhuzhou Megmeet Electrical Co., Ltd., a subsidiary significantly impacting the company's net profit, which reported a net loss despite substantial assets and revenue Financial Performance of Zhuzhou Megmeet Electrical Co., Ltd. | Indicator | Amount (million yuan) | | :--- | :--- | | Registered Capital | 1,000.00 | | Total Assets | 2,371.94 | | Net Assets | 1,245.39 | | Operating Revenue | 1,382.98 | | Operating Profit | -9.36 | | Net Profit | -2.19 | IX. Information on Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[131] X. Risks Faced by the Company and Countermeasures The company faces risks from macroeconomic fluctuations, international geopolitical tensions, changing trade environments (e.g., US tariff policies), and intensified market competition leading to declining gross margins - Macroeconomic fluctuation risk: The company has a diverse product portfolio and wide application areas, giving it strong overall risk resistance, and will strengthen risk identification and control[131] - Risks from international geopolitical tensions and changes in the international trade environment: The company's direct overseas sales revenue accounts for approximately 32%. It has begun establishing production capacity in overseas regions such as Thailand and India and conducts foreign exchange hedging to mitigate risks[132][133] - Risks from intensified market competition and declining gross margins: Price wars in the domestic home appliance and new energy vehicle markets are fierce, with overcapacity. The company will prioritize resources towards key customers, increase product technology iteration and cost reduction, and explore emerging areas such as AI server power systems[134] XI. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company has not formulated a market value management system[135] - The company has not disclosed a valuation enhancement plan[135] XII. Implementation of "Quality and Return Dual Improvement" Action Plan The company has disclosed and is implementing its "Quality and Return Dual Improvement" action plan, aiming to enhance listed company quality and investment value through strategic focus, R&D investment, global market presence, improved governance, and stable profit distribution - The company published the "Shenzhen Megmeet Electrical Co., Ltd. Announcement on 'Quality and Return Dual Improvement' Action Plan" on October 10, 2024[136] - Key measures of the action plan include: focusing on power electronics core technologies, continuous high R&D investment, comprehensive domestic and international market layout, improving corporate governance, enhancing information disclosure quality, valuing investor relations, and implementing active share repurchases and stable profit distribution policies[135] 2025 H1 Company Financial Performance | Indicator | Amount (billion yuan) | Year-on-year Change | | :--- | :--- | :--- | | R&D Expenses | 0.514 | +15.24% | | R&D Expenses as % of Sales Revenue | 11.00% | | | Operating Revenue | 4.674 | +16.52% | | Operating Profit | 0.215 | -34.83% | | Net Profit Attributable to Shareholders of the Listed Company | 0.174 | -44.82% | - The company's 2024 profit distribution plan is: based on the total share capital, a cash dividend of 0.5 yuan (including tax) will be distributed for every 10 shares to all shareholders[138] Part IV Corporate Governance, Environment and Society This section details changes in the company's directors, supervisors, and senior management, profit distribution plans, implementation of equity incentive plans, environmental information disclosure, and social responsibility initiatives I. Changes in Directors, Supervisors, and Senior Management of the Company There were no changes in the company's directors, supervisors, and senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period[140] II. Profit Distribution and Capital Reserve to Share Capital Conversion Plan for the Current Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[141] III. Implementation of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company implemented the 2022 Stock Option Incentive Plan and the 2025 Restricted Stock Incentive Plan, with 11,130,002 options exercised under the 2022 plan and 3.089 million restricted shares granted under the 2025 plan - 2022 Stock Option Incentive Plan: First grant date was June 9, 2022, granting 18.142 million stock options to 605 incentive recipients, with an exercise price adjusted to 17.39 yuan/option after multiple adjustments[144][156][903] - 2022 Stock Option Incentive Plan: Reserved grant date was May 18, 2023, granting 1.858 million stock options to 80 incentive recipients, with an exercise price adjusted to 17.39 yuan/option after multiple adjustments[146][156][906] - As of June 30, 2025, a total of 11,130,002 options from the initial and reserved grants of the 2022 Stock Option Incentive Plan were independently exercised by incentive recipients, increasing the company's total share capital by 11,130,002 shares[157] - 2025 Restricted Stock Incentive Plan: Grant date was June 17, 2025, granting a total of 3.089 million restricted shares to 240 incentive recipients at a grant price of 22.97 yuan/share[162][907][908] - The company did not implement employee stock ownership plans or other employee incentive measures during the reporting period[163][164] IV. Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law, thus no mandatory disclosure is required - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[164] V. Social Responsibility The company actively fulfills its social responsibilities by improving corporate governance, safeguarding shareholder and creditor rights, protecting employee interests, fostering good relationships with suppliers and customers, and participating in social welfare activities - The company strictly adheres to laws, regulations, and its articles of association, improving corporate governance to protect shareholder and creditor interests, and implemented the 2024 annual profit distribution[165] - The company complies with the Labor Law, establishes sound employment management systems, prioritizes employee rights protection, provides learning and training, and enhances employee cohesion[166] - The company respects the interests of suppliers and customers, adheres to honesty, trustworthiness, and mutual benefit, establishes a sound quality control system, and provides high-quality products and services[167] - The company pays taxes according to law, cares for vulnerable social groups, focuses on social charity, and actively participates in social welfare activities[169] Part V Significant Events This section covers the fulfillment of commitments by various parties, non-operating fund occupation, illegal external guarantees, auditor appointments, non-standard audit reports, bankruptcy reorganization, litigation, penalties, integrity status, related party transactions, major contracts, and other significant matters I. Commitments Fulfilled and Overdue Unfulfilled Commitments by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period The company, its actual controller, directors, supervisors, and senior management have made various commitments, including not harming company interests, linking remuneration to return measures, not overstepping management authority, not guaranteeing returns, and not reducing shareholdings - All company directors and senior management commit not to transfer benefits to other entities or individuals without compensation or under unfair conditions, not to use company assets for investments or consumption unrelated to their duties, and to link their remuneration system to the implementation of the company's return-filling measures[171][172] - The company's controlling shareholder and actual controller, Tong Yongsheng, commits not to overstep company operational management activities, not to infringe upon company interests, and to earnestly fulfill return-filling measures[171][172] - The company commits that there are no circumstances where it has made promises of guaranteed returns or disguised guaranteed returns to investors participating in the subscription[171] - During the reporting period, all commitments were fulfilled on time, with no overdue unfulfilled commitments[174] II. Non-operating Fund Occupation by Controlling Shareholder and Other Related Parties of the Listed Company During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company - During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company[175] III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[176] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[177] V. Board of Directors' and Supervisory Board's Explanation on "Non-Standard Audit Report" for the Current Reporting Period The company did not have a non-standard audit report during the reporting period, thus no explanation from the board of directors or supervisory board is required - The company did not have a non-standard audit report during the reporting period[178] VI. Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year The company did not have a non-standard audit report in the previous year, thus no explanation from the board of directors is required - The company did not have a non-standard audit report during the reporting period[178] VII. Bankruptcy Reorganization Related Matters The company did not experience any bankruptcy reorganization related matters during the reporting period - The company did not experience any bankruptcy reorganization related matters during the reporting period[178] VIII. Litigation Matters The company had no significant litigation or arbitration matters during the current reporting period, but was involved in several other lawsuits, including a sales contract dispute with Guangzhou Wancheng Wanchong New Energy Technology Co., Ltd. (company won), a labor dispute with Ying Huilong (both parties appealed), and a sales contract dispute with Wuxi Mingheng Hybrid Power Technology Co., Ltd. (settled) - The company had no significant litigation or arbitration matters during the current reporting period[179] Other Litigation Matters | Basic Information of Litigation (Arbitration) | Amount Involved (million yuan) | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | | :--- | :--- | :--- | :--- | | Guangzhou Wancheng Wanchong New Energy Technology Co., Ltd. vs. Shenzhen Megmeet | 14.7813 | Won | The second instance upheld the original judgment, Megmeet has paid Wancheng Wanchong 35,000 yuan | | Ying Huilong vs. Shenzhen Megmeet Labor Dispute Case | 24.7428 | Won | Labor arbitration confirmed the employment relationship between Ying Huilong and Megmeet, but did not support Ying Huilong's claim for compensation. Both parties were dissatisfied with the arbitration result and have filed lawsuits with the court; the case is now in the first instance stage | | Beijing Yinaite Technology Co., Ltd. applies for arbitration against Shenzhen Drive sales contract dispute | 23.1073 | First hearing held, second hearing pending | / | | Shenzhen Electrical vs. Wuxi Mingheng Hybrid Power Technology Co., Ltd. sales contract dispute | 22.7936 | Won | Settled through mediation, the court issued a legally enforceable "Civil Mediation Document" clearly stating the repayment plan | IX. Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[180] X. Integrity Status of the Company and its Controlling Shareholder, Actual Controller The company, its controlling shareholder, and actual controller had no integrity issues during the reporting period - The company, its controlling shareholder, and actual controller had no integrity issues during the reporting period[181] XI. Significant Related Party Transactions The company engaged in related party transactions related to daily operations during the reporting period, primarily involving the purchase and sale of goods and provision of services, such as selling 9.3018 million yuan of products to Tangshan Huimi Smart Home Technology Co., Ltd. Related Party Transactions for Purchase and Sale of Goods, Provision and Acceptance of Services | Related Party | Related Transaction Content | Amount Incurred in Current Period (yuan) | Approved Transaction Limit (million yuan) | Exceeded Transaction Limit | | :--- | :--- | :--- | :--- | :--- | | Guangdong Guoyan New Material Co., Ltd. | Purchase of materials | 4,851,932.75 | 30.00 | No | | Xiamen Rongji Precision Technology Co., Ltd. | Purchase of materials | 9,731,960.52 | 20.00 | No | | Tangshan Huimi Smart Home Technology Co., Ltd. | Sale of products | 9,301,767.25 | 30.00 | No | | Shenzhen Lineng Times Technology Co., Ltd. | Sale of products | 11,723,863.61 | | No | Related Lease Situations (Company as Lessor) | Lessee Name | Type of Leased Asset | Lease Income Recognized in Current Period (yuan) | | :--- | :--- | :--- | | Guangdong Guoyan New Material Co., Ltd. | Buildings and Structures | 1,434,600.07 | | Guangdong Jingci New Material Co., Ltd. | Buildings and Structures | 497,055.54 | | Shenzhen Lineng Times Technology Co., Ltd. | Buildings and Structures | 155,003.88 | - The company had no related party transactions involving asset or equity acquisition/disposal during the reporting period[183] - The company had no related party transactions involving joint external investments during the reporting period[184] - The company had no related party debt and credit transactions during the reporting period[185] XII. Major Contracts and Their Performance The company had no trusteeship or contracting matters during the reporting period, with leasing primarily involving normal property leases; significant guarantees include joint liability for several subsidiaries totaling 560.58 million yuan, representing 9.01% of net assets - The company had no trusteeship situations during the reporting period[189] - The company had no contracting situations during the reporting period[190] - Explanation of leasing situations: Aside from normal property leases for production, warehousing, and office space, there were no other significant leasing matters[191] Company Guarantees for Subsidiaries | Guaranteed Party Name | Guarantee Limit (million yuan) | Actual Guarantee Amount (million yuan) | Guarantee Type | Guarantee Period | | :--- | :--- | :--- | :--- | :--- | | Zhuzhou Megmeet Electrical Co., Ltd. | 470.00 | 66.151 | Joint and Several Liability Guarantee | Three years | | Zhuzhou Megmeet Electrical Co., Ltd. | 120.00 | 100.00 | Joint and Several Liability Guarantee | Three years | | Zhejiang Yihe Sanitary Ware Co., Ltd. | 100.00 | 64.4277 | Joint and Several Liability Guarantee | Three years | | Hangzhou Qianjing Technology Co., Ltd. | 30.00 | 10.00 | Joint and Several Liability Guarantee | Three years | | Shenzhen Megmeet Welding Technology Co., Ltd. | 10.00 | 10.00 | Joint and Several Liability Guarantee | Three years | | Shenzhen Megmeet Electrical Supply Chain Management Co., Ltd. | 300.00 | 20.00 | Joint and Several Liability Guarantee | Three years | | ALTATRONIC INTERNATIONAL CO., LTD. | 50.00 | 50.00 | Joint and Several Liability Guarantee | Three years | | Total Actual Guarantee Balance for Subsidiaries at End of Reporting Period | 1,930.00 | 560.5787 | | | - The total actual guarantee amount accounts for 9.01% of the company's net assets[195] Wealth Management Product Information | Specific Type | Amount of Wealth Management Products Incurred (million yuan) | Unmatured Balance (million yuan) | | :--- | :--- | :--- | | Bank Wealth Management Products (Raised Funds) | 243.59 | 212.59 | | Bank Wealth Management Products (Own Funds) | 616.1875 | 306.2018 | | Total | 859.7775 | 518.7918 | XIII. Explanation of Other Significant Matters The company disclosed its 2024 annual profit distribution plan of 0.5 yuan (including tax) per 10 shares, with an equity registration date of July 10, 2025, and its 2025 private placement A-share issuance plan has been approved by shareholders and accepted by the Shenzhen Stock Exchange, currently awaiting review - The company's 2024 annual profit distribution plan is: a cash dividend of 0.5 yuan (including tax) will be distributed for every 10 shares to all shareholders, with an equity registration date of July 10, 2025[199] - The company's 2025 plan to issue A-shares to specific targets has been approved by the shareholders' meeting and accepted by the Shenzhen Stock Exchange on July 17, 2025[202] - This issuance matter is currently in the Shenzhen Stock Exchange's review and inquiry response stage, and its final approval by the China Securities Regulatory Commission and the timing remain uncertain[204] XIV. Significant Matters of Company Subsidiaries The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[205] Part VI Changes in Shares and Shareholder Information This section details changes in the company's share capital, securities issuance and listing, shareholder numbers and shareholding structure, changes in director, supervisor, and senior management shareholdings, and changes in controlling shareholder or actual controller I. Changes in Shares During the reporting period, the company's total share capital increased by 2,068,107 shares due to the exercise of stock options under the 2022 Stock Option Incentive Plan, bringing the total share capital to 547,693,154 shares at period-end Changes in Shares | Item | Quantity Before Change (shares) | Proportion Before Change | Increase/Decrease in This Change (shares) | Quantity After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 89,139,040 | 16.34% | 0 | 89,139,040 | 16.28% | | II. Unrestricted Shares | 456,486,007 | 83.66% | 2,068,107 | 458,554,114 | 83.72% | | III. Total Shares | 545,625,047 | 100.00% | 2,068,107 | 547,693,154 | 100.00% | - Reason for share change: During the current reporting period, incentive recipients under the 2022 Stock Option Incentive Plan (initial and reserved grants) independently exercised options, leading to an increase of 2,068,107 shares in the company's total share capital[208] - The share change has been approved by the company's board of directors and shareholders' meeting[209][210] II. Securities Issuance and Listing The company had no securities issuance and listing activities during the reporting period - The company had no securities issuance and listing activities during the reporting period[212] III. Company Shareholder Numbers and Shareholding Structure As of the end of the reporting period, the company had 71,484 common shareholders, with Tong Yongsheng as the largest shareholder, holding 17.80% and, together with Wang Ping, controlling 24.42% of the shares - Total number of common shareholders at the end of the reporting period: 71,484 accounts[212] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Pledged, Marked, or Frozen Status (quantity) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Tong Yongsheng | Domestic Natural Person | 17.80% | 97,483,231 | 73,112,423 | 24,370,808 | 0 | | Wang Ping | Domestic Natural Person | 6.62% | 36,240,117 | 0 | 36,240,117 | 0 | | Zhang Zhi | Domestic Natural Person | 2.91% | 15,949,050 | 11,961,787 | 3,987,263 | 3,000,000 (Pledged) | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 2.63% | 14,392,299 | 0 | 14,392,299 | 0 | - Mr. Tong Yongsheng and Ms. Wang Ping are a married couple and acting in concert, jointly holding 24.42% of the company's shares[213] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[215] V. Changes in Controlling Shareholder or Actual Controller There were no changes in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[216] - The company's actual controller did not change during the reporting period[216] VI. Preferred Shares Information The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[217] Part VII Bond-Related Information This section confirms that the company had no bond-related information during the reporting period Bond-Related Information The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[219] Part VIII Financial Report This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, tax items, and financial statement items I. Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[221] II. Financial Statements This section provides Shenzhen Megmeet Electrical Co., Ltd.'s consolidated and parent company financial statements for the first half of 2025, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, comprehensively reflecting the company's financial position, operating results, and cash flows at the end of the reporting period - Consolidated Balance Sheet (as of June 30, 2025)[222][223][224][225] - Parent Company Balance Sheet (as of June 30, 2025)[226][227][228][229] - Consolidated Income Statement (First Half 2025)[230][231] - Parent Company Income Statement (First Half 2025)[233][234] - Consolidated Cash Flow Statement (First Half 2025)[236][237] - Parent Company Cash Flow Statement (First Half 2025)[239] - Consolidated Statement of Changes in Owners' Equity (Current Period and Prior Year Amounts)[241][242][243][244][245][246] - Parent Company Statement of Changes in Owners' Equity (Current Period and Prior Year Amounts)[248][249][250][251][252] III. Company Basic Information Shenzhen Megmeet Electrical Co., Ltd., established on September 9, 2010, and listed on the Shenzhen Stock Exchange on March 6, 2017, has a registered capital and total share capital of 547.693154 million yuan, with a broad business scope in power electronics and related equipment - The company was established on September 9, 2010, and listed on the Shenzhen Stock Exchange on March 6, 2017[253] - The company's current registered capital and total share capital are both 547.693154 million yuan[253] - From January to June 2025, the independent exercise of options by incentive recipients led to an increase of 2.068107 million shares in the company's share capital, changing the total share capital to 547.693154 million shares[260] - The company's main business involves the research, development, design, production, and sale of power electronic products, electrical products, mechatronic equipment, household appliances, and their components[260][261] IV. Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, in accordance with Enterprise Accounting Standards and CSRC disclosure rules, accurately reflecting financial status, operating results, and cash flows, with no significant doubts about going concern - The company prepares its financial statements on a going concern basis, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and the disclosure requirements of the China Securities Regulatory Commission's "Information Disclosure Rules for Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports (Revised 2023)"[263] - There are no matters or circumstances that cause significant doubt about the company's ability to continue as a going concern for the 12 months from the end of the reporting period[264] V. Significant Accounting Policies and Accounting Estimates This section details the company's significant accounting policies and estimates for financial statement preparation, covering financial instrument classification, recognition, and measurement, accounting for receivables, inventories, long-term equity investments, fixed assets, intangible assets, revenue recognition, government grants, and deferred income tax - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, truly and completely reflecting the company's financial position, operating results, and cash flows[266] - The accounting year runs from January 1 to December 31 of the Gregorian calendar, with 12 months constituting an operating cycle[267][268] - The company and its domestic subsidiaries use RMB as their functional currency, while overseas subsidiaries use USD, EUR, INR, etc[269][270] - Detailed disclosure of financial instrument classification, recognition criteria, and measurement metho