赛力斯(601127) - 2025 Q2 - 季度财报

Definitions Definitions of Common Terms This chapter provides definitions of common terms used in the report, including company names, subsidiaries, controlling shareholders, reporting period, and automotive industry terms, ensuring clear understanding of the report content - Seres/Seres Group/Company/The Company refers to Seres Group Co., Ltd[14] - Reporting Period/This Reporting Period refers to January 1, 2025, to June 30, 2025[14] - New Energy Vehicles (NEVs), Electric Vehicles (EVs) refer to vehicles that use electric drive systems as power, unconventional fossil energy sources like lithium batteries, solid-state batteries, and fuel cells as energy systems, extensively apply advanced internet and IoT intelligent connected technologies, and achieve graded assisted driving and autonomous driving[14] Company Profile and Key Financial Indicators Company Information This section provides the company's basic information, including its Chinese name, abbreviation, foreign name, and legal representative Company Basic Information | Company's Chinese Name | Seres Group Co., Ltd | | :--- | :--- | | Company's Chinese Abbreviation | Seres | | Company's Legal Representative | Zhang Zhengping | Contact Person and Contact Information This section provides contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, fax numbers, and email addresses Board Secretary Contact Information | | Board Secretary | Securities Affairs Representative | | :--- | :--- | :--- | | Name | Shen Wei | Ma Chengjuan | | Phone | 023-65179666 | 023-65179666 | | Email | 601127@seres.cn | 601127@seres.cn | Brief Introduction to Changes in Basic Information Discloses the historical changes in the company's registered address, from "No. 61-1 Jinqiao Road, Shapingba District, Chongqing" to "No. 7 Wuyunhu Road, Shapingba District, Chongqing" - Company's registered address changed from "No. 61-1 Jinqiao Road, Shapingba District, Chongqing" to "No. 7 Wuyunhu Road, Shapingba District, Chongqing", approved by the third extraordinary general meeting of shareholders in 2022[18] Brief Introduction to Changes in Information Disclosure and Document Custody Locations Lists the company's designated newspapers for information disclosure, the website address for semi-annual reports, and the report custody location - The company's designated newspapers for information disclosure are "Shanghai Securities News", "China Securities Journal", "Securities Times", "Securities Daily", and the report website is www.sse.com.cn[19](index=19&type=chunk) Brief Introduction to Company Stock Introduces the company's A-share listing exchange, stock abbreviation, stock code, and former stock abbreviation Company Stock Profile | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | Former Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | Seres | 601127 | Sokon | Company's Key Accounting Data and Financial Indicators Details the company's key accounting data and financial indicators for the first half of 2025, showing significant year-on-year growth in total profit, net profit attributable to shareholders, and non-recurring net profit, indicating enhanced profitability Key Accounting Data (Jan-Jun 2025) | Key Accounting Data | Current Reporting Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 62,401,722,813.80 | 65,044,468,013.30 | -4.06 | | Total Profit | 3,724,791,554.04 | 1,699,109,354.55 | 119.22 | | Net Profit Attributable to Shareholders of Listed Company | 2,940,890,216.11 | 1,624,558,336.35 | 81.03 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 2,474,494,986.00 | 1,437,469,749.42 | 72.14 | | Net Cash Flow from Operating Activities | 14,436,525,232.56 | 16,360,161,638.87 | -11.76 | | Net Assets Attributable to Shareholders of Listed Company (End of Current Period) | 26,761,103,422.09 | 12,264,245,429.40 | 118.20 | | Total Assets (End of Current Period) | 112,911,810,263.11 | 94,363,958,922.89 | 19.66 | Key Financial Indicators (Jan-Jun 2025) | Key Financial Indicators | Current Reporting Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 1.87 | 1.08 | 73.15 | | Diluted Earnings Per Share (RMB/share) | 1.87 | 1.08 | 73.15 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (RMB/share) | 1.57 | 0.95 | 65.26 | | Weighted Average Return on Net Assets (%) | 15.87 | 13.24 | Increase 2.63 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 13.35 | 11.72 | Increase 1.63 percentage points | - In the first half of 2025, the company's total profit, net profit attributable to shareholders of the listed company, and net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses all significantly increased year-on-year, primarily due to new product launches, sales growth, increased gross profit margin, and enhanced profitability[23] - As of June 30, 2025, net assets attributable to shareholders of the listed company increased by 118.20% compared to the end of the previous year, mainly due to the issuance of shares to acquire equity in Chongqing Liangjiang New Area Longsheng New Energy Technology Co., Ltd., capital increase by minority shareholders of Seres Automobile Co., Ltd., and increased net profit attributable to shareholders of the listed company[24] Non-Recurring Gains and Losses Items and Amounts Lists the company's non-recurring gains and losses items and their amounts for the first half of 2025, totaling RMB 466,395,230.11 Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Items | Amount (RMB) | | :--- | :--- | | Gains and losses from disposal of non-current assets | 4,234,107.12 | | Government subsidies recognized in current profit or loss | 378,922,722.02 | | Gains and losses from changes in fair value and disposal of financial assets and liabilities | 124,284,664.29 | | Other non-operating income and expenses apart from the above | -19,656,322.70 | | Less: Income tax impact | 456,650.00 | | Impact on minority interests (after tax) | 20,933,290.62 | | Total | 466,395,230.11 | Net Profit After Deducting Impact of Share-Based Payments Discloses that after deducting the impact of share-based payments, the company's net profit for the first half of 2025 was RMB 3,131,960,039.73, a year-on-year increase of 128.68% Net Profit After Deducting Impact of Share-Based Payments | Key Accounting Data | Current Reporting Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Impact of Share-Based Payments | 3,131,960,039.73 | 1,369,574,039.66 | 128.68 | Management Discussion and Analysis Explanation of the Company's Industry and Main Business Operations During the Reporting Period In the first half of 2025, China's automotive production and sales both exceeded 15 million units, with NEV production and sales growing by 41.4% and 40.3% respectively, and the company achieved strong performance in the high-end intelligent electric vehicle market - In the first half of 2025, China's automotive production and sales both exceeded 15 million units for the first time, with year-on-year growth of over 10%; NEV production and sales were 6.968 million units and 6.937 million units respectively, with year-on-year growth of 41.4% and 40.3%[32] - The company's total vehicle sales in the first half of 2025 were 198,600 units, with AITO vehicle deliveries exceeding 147,000 units, and an average transaction price per vehicle exceeding RMB 400,000[32] Discussion and Analysis of Operations In the first half of 2025, the company achieved operating revenue of RMB 62.402 billion and net profit attributable to shareholders of RMB 2.941 billion, a year-on-year increase of 81.03%, with AITO M9 and M8 becoming sales champions in their respective market segments - In the first half of 2025, the company achieved operating revenue of RMB 62.402 billion, and net profit attributable to shareholders of the listed company reached RMB 2.941 billion, a year-on-year increase of 81.03%[32] - AITO M9 and AITO M8 became sales champions in the RMB 500,000 and RMB 400,000 market segments respectively[32] - Total AITO vehicle deliveries in the first half of the year exceeded 147,000 units, with single-month deliveries in June exceeding 44,000 units, setting a new monthly delivery record for AITO[35] - AITO M9 deliveries exceeded 62,000 units in the first half, and AITO M8 deliveries exceeded 35,000 units[35] - AITO has been ranked first in new energy vehicle brand new car quality performance for three consecutive years, and AITO M9 won first place in the NPS Net Promoter Score in J.D. Power's "2025 H1 New Energy Vehicle Brand Health Study"[37][38][39] Magic Cube Technology Platform Supports Efficient Development of Series Models The company has invested nearly RMB 30 billion in R&D for high-end intelligent electric vehicles, creating the Magic Cube technology platform to support efficient development of multi-level, multi-category, and multi-power models, leading to a positive cycle of technology breakthrough, sales growth, and profitability improvement - The company has invested nearly RMB 30 billion in R&D for high-end intelligent electric vehicles, creating the Magic Cube technology platform, which can cover the development needs of multi-level, multi-category, and multi-power models[33] - In the first half of this year, several models were successively launched, including the 2025 AITO M9 Extended Range, AITO M9 Pure Electric, AITO M8 Extended Range, and AITO M8 Pure Electric[33] - As of June 30, 2025, the company had a total of 6,984 R&D personnel, a year-on-year increase of 26.6%, accounting for 36% of the company's total headcount; the company's R&D investment increased by 154.9% year-on-year, and it has accumulated 6,826 authorized patents, a year-on-year increase of 19.8%[34] Super Factory Achieves Rapid Vertical Ramp-up of New Vehicles Seres Super Factory, through digital manufacturing and supply chain management, achieved cumulative deliveries of over 147,000 AITO full-series vehicles in the first half, with 100% automation in key production processes and 12 core suppliers adopting a "factory-in-factory" model - In the first half of 2025, cumulative deliveries of AITO full-series vehicles exceeded 147,000 units, with single-month deliveries in June exceeding 44,000 units, setting a new monthly delivery record for AITO[35] - Seres Super Factory achieved 100% automation rate in key production processes, 100% automated AI online inspection for weld point quality, and 100% automated inspection for static vehicle quality[35] - The company introduced 12 core suppliers to establish factories in Chongqing, embedding core component production into the vehicle manufacturing system through a "factory-in-factory" model[36] Digital Intelligence Quality Assurance for Mass-Produced Excellent Quality The company, through deep integration of its intelligent manufacturing system, achieved high-quality stable deliveries, with AITO series products consistently leading in market quality performance and AI detection accuracy reaching 99.9% - AITO series products consistently lead in market quality performance; according to the Frost & Sullivan report, AITO has been ranked first in new energy vehicle brand new car quality performance for three consecutive years[37] - The company continuously promotes digital intelligence quality construction, building a full-process automated digital intelligence quality management system, achieving 100% automation in static vehicle quality inspection, and combining AI with deep learning algorithms to achieve an accuracy of 99.9%[37] New Luxury Service Continues to Ignite User Word-of-Mouth The company consistently prioritizes user service, earning widespread user recognition and spontaneous recommendations through excellent service, with AITO M9 winning first place in NPS Net Promoter Score and launching significant service commitments - AITO M9 won first place in the NPS Net Promoter Score in J.D. Power's "2025 H1 New Energy Vehicle Brand Health Study"[38][39] - The company has built a "quality reach, quality delivery, quality after-sales" three-in-one high-end service system, and was the first in the industry to launch significant service commitments such as "lifetime paint warranty, ten times compensation for fake parts, free basic maintenance if appointment is overdue, and compensation for alternative transportation if repairs are overdue"[39] Analysis of Core Competitiveness During the Reporting Period Guided by the "Seres Basic Program" strategy, the company continuously builds differentiated competitiveness in brand, technology, service, intelligent manufacturing, and culture, adhering to user-defined and software-defined vehicle principles - Guided by the "Seres Basic Program" strategy, the company adheres to the market orientation of user-defined vehicles and the technology roadmap of software-defined vehicles, continuously building differentiated competitiveness in brand, technology, service, intelligent manufacturing, and culture[40] - AITO targets the high-end intelligent electric vehicle main track, with AITO M9 maintaining its position as the sales champion in the RMB 500,000 segment, and AITO M8 becoming the sales champion in the RMB 400,000 segment after its launch in April 2025[41] - The company has partnered with Huawei and CATL, two industry leaders, for cross-industry integration and strategic cooperation, and holds a 10% equity stake in Shenzhen Yinwang, upgrading strategic cooperation to "business cooperation + equity cooperation"[42][43] - The company, through deep integration of its intelligent manufacturing system, builds a new paradigm of intelligent manufacturing with "industrial brain + future factory", continuously advancing the strategy of "product integration and intelligent manufacturing agglomeration"[45] - The company's senior management and core team actively increased their holdings of company shares twice in 2024 and 2025 through centralized bidding, totaling RMB 222 million[46] Main Operating Conditions During the Reporting Period This section analyzes the changes in the company's main business financial statement items for the first half of 2025, showing a decrease in operating revenue and cost, an increase in selling, general and administrative, and R&D expenses, and a significant decrease in financial expenses due to increased interest income, with significant growth in net assets and total assets Financial Statement Items Change Analysis (Jan-Jun 2025) | Item | Current Period Amount (RMB) | Prior Year Period Amount (RMB) | Change Ratio (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 62,401,722,813.80 | 65,044,468,013.30 | -4.06 | | Operating Cost | 44,345,837,363.43 | 49,395,348,148.46 | -10.22 | | Selling Expenses | 8,940,726,308.18 | 8,699,121,540.88 | 2.78 | | Administrative Expenses | 1,534,142,179.45 | 1,179,428,551.31 | 30.08 | | Financial Expenses | -277,273,155.34 | -22,531,062.31 | Not applicable | | R&D Expenses | 2,929,532,016.77 | 2,827,443,107.47 | 3.61 | | Net Cash Flow from Operating Activities | 14,436,525,232.56 | 16,360,161,638.87 | -11.76 | | Net Cash Flow from Investing Activities | -6,966,336,270.76 | -6,403,466,838.45 | Not applicable | | Net Cash Flow from Financing Activities | 7,861,633,432.95 | -552,243,126.51 | Not applicable | - Operating revenue and operating cost decreased primarily due to lower vehicle sales and changes in product structure[47][48] - Financial expenses decreased primarily due to increased bank deposit interest income[48] - Net cash flow from financing activities significantly increased primarily due to the introduction of strategic investors by subsidiaries[48] - As of the end of the reporting period, net assets attributable to shareholders of the listed company increased by 118.20% year-on-year, and total assets increased by 19.66%[22] - Long-term equity investments at the end of the period were RMB 13.413 billion, a 577.83% increase from the end of the previous year, primarily due to increased equity investments in associates[49][50] - Fixed assets at the end of the period increased by 51.22% year-on-year, and construction in progress increased by 372.83%, primarily due to the acquisition of leased assets, leading to an increase in fixed assets and construction in progress[49][50] - Trading financial assets at the end of the period decreased by 93.03% year-on-year, primarily due to the redemption of matured cash management products[49] - Notes payable at the end of the period decreased by 33.77% year-on-year, primarily due to the maturity and payment of bank acceptance bills[50] Analysis of Main Business Both operating revenue and operating cost decreased in the current period, mainly affected by vehicle sales and product structure, while selling, administrative, and R&D expenses increased, and financial expenses significantly decreased due to increased interest income - Operating revenue and operating cost decreased primarily due to lower vehicle sales and changes in product structure[47][48] - Explanation for change in selling expenses: primarily due to increased advertising and promotion expenses[48] - Explanation for change in administrative expenses: primarily due to increased depreciation and amortization expenses and low-value consumables[48] - Explanation for change in financial expenses: primarily due to increased bank deposit interest income[48] - Explanation for change in R&D expenses: primarily due to the company's continuous R&D investment and increased intangible asset amortization[48] - Explanation for change in net cash flow from operating activities: primarily due to increased cash paid for goods purchased and services received[48] Analysis of Assets and Liabilities As of the end of the reporting period, the company's total assets reached RMB 112.912 billion, an increase of 19.66% from the end of the previous year, with net assets attributable to shareholders increasing by 118.20% Asset and Liability Status Changes (June 30, 2025 vs. Dec 31, 2024) | Item Name | Current Period End Amount (RMB) | % of Total Assets at Current Period End | Prior Year End Amount (RMB) | % of Total Assets at Prior Year End | YoY Change Ratio (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 47,931,031,498.45 | 42.45 | 45,955,437,989.80 | 48.70 | 4.30 | | | Trading Financial Assets | 282,073,984.50 | 0.25 | 4,048,748,397.65 | 4.29 | -93.03 | Primarily due to redemption of matured cash management products | | Receivables Financing | 460,138,303.87 | 0.41 | 214,158,827.04 | 0.23 | 114.86 | Primarily due to increased customer bank acceptance bills | | Prepayments | 1,379,338,570.86 | 1.22 | 994,282,143.06 | 1.05 | 38.73 | Primarily due to increased prepayments for key component materials | | Other Current Assets | 12,580,678,028.24 | 11.14 | 9,121,346,182.86 | 9.67 | 37.93 | Primarily due to increased cash management for improved fund returns | | Long-term Equity Investments | 13,413,182,238.90 | 11.88 | 1,978,847,491.62 | 2.10 | 577.83 | Primarily due to increased equity investments in associates | | Fixed Assets | 13,996,737,949.89 | 12.40 | 9,256,018,663.98 | 9.81 | 51.22 | Primarily due to acquisition of leased assets, increasing fixed assets | | Construction in Progress | 1,006,661,516.67 | 0.89 | 212,902,754.71 | 0.23 | 372.83 | Primarily due to acquisition of leased assets, increasing construction in progress | | Right-of-Use Assets | 1,007,771,544.13 | 0.89 | 2,659,293,722.05 | 2.82 | -62.10 | Primarily due to conversion of previously leased assets to direct company ownership | | Goodwill | 497,391,666.50 | 0.44 | | | | Primarily due to non-same-control business combination, where combination cost exceeded fair value share of identifiable net assets of acquiree | | Other Non-current Assets | 235,869,051.93 | 0.21 | 2,428,484,905.91 | 2.57 | -90.29 | Primarily due to prepayment for associate investment meeting delivery conditions, transferred to long-term equity investments | | Short-term Borrowings | 500,288,888.89 | 0.44 | | | | Primarily due to increased borrowings | | Notes Payable | 27,251,072,213.34 | 24.13 | 41,144,620,028.31 | 43.60 | -33.77 | Primarily due to maturity and payment of bank acceptance bills | | Accounts Payable | 35,512,703,279.29 | 31.45 | 27,306,788,121.64 | 28.94 | 30.05 | Primarily due to increased payables to suppliers | | Contract Liabilities | 5,196,055,812.81 | 4.60 | 2,991,531,622.52 | 3.17 | 73.69 | Primarily due to increased advances from customers | | Other Payables | 4,683,323,213.76 | 4.15 | 1,030,463,243.69 | 1.09 | 354.49 | Primarily due to increased payables for associate investments | | Long-term Borrowings | 4,362,892,900.00 | 3.86 | 687,000,000.00 | 0.73 | 535.06 | Primarily due to increased project borrowings | | Lease Liabilities | 837,556,073.27 | 0.74 | 2,217,781,622.08 | 2.35 | -62.23 | Primarily due to conversion of previously leased assets to direct company ownership | | Provisions | 1,728,850,310.98 | 1.53 | 1,149,655,700.47 | 1.22 | 50.38 | Primarily due to increased quality assurance provisions | - As of June 30, 2025, the company's overseas assets were RMB 629.2686 million, accounting for 0.56% of total assets[51] Analysis of Investment Status As of June 30, 2025, the company's long-term equity investment balance was RMB 13.413 billion, a significant increase from the end of 2024, mainly due to increased investments in associates, with 91.21% of the high-end electric vehicle electric drive system project cumulatively invested - As of June 30, 2025, the long-term equity investment balance was RMB 13.413 billion, an increase from RMB 1.979 billion at the end of 2024, primarily due to increased investments in associates[54] - The company's investment in Guangdong Rongchuang Lingyue Intelligent Manufacturing and Information Technology Industry Equity Investment Fund Partnership (Limited Partnership) distributed RMB 9.2744 million during the reporting period, including RMB 6.8025 million in principal and RMB 2.4719 million in income[58] Major Non-Equity Investment Status | Investment Project Name | Planned Investment Amount (RMB 10,000) | H1 2025 Investment Amount (RMB 10,000) | Cumulative Investment Amount (RMB 10,000) | Cumulative Investment Progress | | :--- | :--- | :--- | :--- | :--- | | High-end Electric Vehicle Electric Drive System Project | 106,629.00 | 9,045.00 | 97,258.62 | 91.21% | Major Equity Investment Status | Investee Company Name | Main Business | Investment Method | Investment Amount (RMB 10,000) | Shareholding Ratio | Progress as of Balance Sheet Date | | :--- | :--- | :--- | :--- | :--- | :--- | | Chongqing Liangjiang New Area Longsheng New Energy Technology Co., Ltd. | Production leasing services for new energy vehicle factories | Acquisition | 851,838.41 | 100% | Completed | | Shenzhen Yinwang Intelligent Technology Co., Ltd. | Intelligent vehicle solutions business | Acquisition | 1,150,000.00 | 10% | Paid progress payment of RMB 5.75 billion, cumulative payment of RMB 8.05 billion | Financial Assets Measured at Fair Value (Period End) | Asset Category | Period End Amount (RMB) | | :--- | :--- | | Stocks | 282,073,984.50 | | Others (Cash Management) | 3,809,854,656.25 | | Total | 4,091,928,640.75 | Analysis of Major Holding and Participating Companies Discloses the financial performance of the company's main subsidiaries, Seres Automobile Co., Ltd. and Seres Automobile (Hubei) Co., Ltd., with Seres Automobile Co., Ltd. achieving operating revenue of RMB 57.786 billion and net profit of RMB 3.077 billion in the first half Financial Performance of Major Subsidiaries (H1 2025) | Company Name | Company Type | Main Business | Registered Capital (RMB 10,000) | Total Assets (RMB 10,000) | Net Assets (RMB 10,000) | Operating Revenue (RMB 10,000) | Operating Profit (RMB 10,000) | Net Profit (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Seres Automobile Co., Ltd. | Subsidiary | R&D, manufacturing, and sales of pure electric vehicles | 1,063,728.00 | 8,922,487.58 | 910,798.67 | 5,778,640.07 | 355,361.23 | 307,713.02 | | Seres Automobile (Hubei) Co., Ltd. | Subsidiary | Production and sales of automobiles and automotive parts | 80,000.00 | 1,324,415.93 | 327,875.17 | 546,917.90 | 49,929.13 | 32,389.81 | - During the reporting period, the company established 5 new subsidiaries, including Chongqing Fenghuang Technology Co., Ltd., Beijing Saihang Embodied Intelligent Technology Co., Ltd., SERES (Kazakhstan), SERES CA, and AITO DE MEXICO[62] - The company acquired Chongqing Liangjiang New Area Longsheng New Energy Technology Co., Ltd. through a non-same-control business combination, which did not have a significant impact on the listed company's operations and performance[62] Other Disclosure Matters Potential Risks The company faces risks from intensifying industry competition, changes in market demand, shifts in international economic and political situations, and supply chain vulnerabilities, which it plans to address through increased R&D investment, international situation analysis, and supply chain stability - Intensifying industry competition: Traditional automakers' electrification transformation, new car manufacturers' innovation, and technology companies' cross-industry entry lead to rapid iteration of intelligent and electrified technologies, shortening product life cycles, and imposing higher demands on R&D investment and technological capabilities[64] - Risk of demand changes: A macroeconomic downturn could lead to decreased consumer purchasing power and insufficient market demand, while changes in consumer preferences for product performance, brand, and design will affect market demand[64] - Risk of changes in international economic and political situations: International trade frictions, tariff barriers, economic sanctions, policy restrictions, and geopolitical conflicts will increase the difficulty of entering overseas markets and raise trade costs; if global economic recovery falls short of expectations or global NEV penetration is lower than anticipated, it will affect overseas market demand[64] - Supply chain risks: The NEV supply chain involves raw materials, components, and other links. Affected by political and economic factors, it may face risks such as significant fluctuations in raw material prices (e.g., steel, rubber) and untimely supply of core components[64] - Company's response strategies: Closely monitor market dynamics, continuously increase R&D investment, focus on breakthroughs in key technologies and product innovation to enhance differentiated advantages; strengthen analysis of international situations, establish risk control mechanisms; strengthen supply chain stability, and build the company's risk prevention capabilities[65] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management The company plans to issue H-shares and list on the Hong Kong Stock Exchange, with Mr. Wei Mingde approved as an independent director, his term commencing from the H-share listing date or an earlier date required by regulatory authorities - The company plans to issue overseas listed foreign shares (H-shares) and apply for listing on the Main Board of The Stock Exchange of Hong Kong Limited[67] - Mr. Wei Mingde serves as an independent director of the company's fifth board of directors, with his term commencing from the date of approval by the general meeting of shareholders and the listing of the company's H-shares on the Hong Kong Stock Exchange, or an earlier date required by regulatory authorities, until the expiration of the fifth board's term[67] Profit Distribution or Capital Reserve Conversion Plan The company has no profit distribution plan or capital reserve conversion to share capital plan for this semi-annual period - The profit distribution plan or capital reserve conversion to share capital plan approved by the board of directors for this reporting period is "none"[8] Status and Impact of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures According to the "Company's 2024 Employee Stock Ownership Plan", the first lock-up period for the initial grant expired on May 29, 2025, with 197 eligible holders unlocking 50% of their shares, corresponding to 1,707,050 shares - According to the relevant provisions of the "Company's 2024 Employee Stock Ownership Plan", the first lock-up period for the initial grant of this employee stock ownership plan expired on May 29, 2025[68] - A total of 197 holders met the unlocking conditions for the first lock-up period, with an unlocking ratio of 50%, corresponding to 1,707,050 shares[68] Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law The company has 7 subsidiaries included in the list of enterprises required to disclose environmental information by law, and provides inquiry indexes - The number of enterprises included in the list of enterprises required to disclose environmental information by law is 7[70] - Inquiry indexes for environmental information disclosure reports include the Enterprise Environmental Information Disclosure System (Chongqing) and the Enterprise Environmental Information Disclosure System (Hubei)[70] Specific Situation of Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work In the first half of 2025, the company engaged in consumption-based assistance for rural revitalization totaling RMB 5.5424 million, of which RMB 4.4568 million was used to purchase agricultural products in Wuxi County, Chongqing - In the first half of 2025, the company engaged in consumption-based assistance for rural revitalization totaling RMB 5.5424 million[71] - Of this, RMB 4.4568 million was used to purchase agricultural products for rural revitalization in Wuxi County, Chongqing, a key national rural revitalization assistance county and a target of the All-China Federation of Industry and Commerce's "Ten Thousand Enterprises Assisting Ten Villages" initiative[71] Significant Matters Fulfillment of Commitments Discloses the fulfillment of commitments by the company's actual controller, controlling shareholder, related parties, and the company's directors, supervisors, and senior management regarding major asset restructuring, resolution of related-party transactions, resolution of horizontal competition, share lock-up, and other matters, with all commitments strictly fulfilled - Controlling shareholder Sokon Holdings and actual controller Zhang Xinghai committed to avoiding and reducing related-party transactions with the company and its subsidiaries as much as possible, and for unavoidable or reasonably existing related-party transactions, they will sign agreements in accordance with fair, equitable, and arm's-length principles and strictly fulfill information disclosure obligations. Strictly fulfilled during the reporting period[73] - Shareholder Dongfeng Motor Group committed not to use its shareholder status to intentionally cause the company's general meeting of shareholders or board of directors to make resolutions that harm the legitimate rights and interests of the company and other shareholders, and not to illegally or improperly occupy company funds or require the company to provide guarantees in violation of regulations in any way. Strictly fulfilled during the reporting period[74] - Dongfeng Motor Group committed not to seek control of the company, not to actively seek the position of controlling shareholder or largest shareholder of the company, nor to individually or jointly with others actively seek the position of actual controller of the company in any way. Strictly fulfilled during the reporting period[74][75] - All directors, supervisors, and senior management of the company committed not to transfer benefits to other entities or individuals without compensation or under unfair conditions, not to use company assets for investments or consumption activities unrelated to their duties, and committed to restricting their job-related consumption. Strictly fulfilled during the reporting period[76] - Chongqing Industrial Mother Fund, Liangjiang Investment Group, and Liangjiang Industrial Group committed that the listed company shares acquired in the asset acquisition through share issuance will be locked up for 12 months or 36 months, depending on the different capital contributions, from the end of this issuance. Strictly fulfilled during the reporting period[77][78][79][80] -