Important Notes, Table of Contents, and Definitions [Important Notes](index=2&type=section&id=Important%20Notes) The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, and declare the financial report is true, accurate, and complete. - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content[5](index=5&type=chunk) - The company's responsible person, chief accountant, and accounting department head declare the financial report is true, accurate, and complete[5](index=5&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[6](index=6&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This section lists the report's structure, including major chapters such as company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond-related information, and financial reports, along with their corresponding page numbers. Report Chapter Overview | Section | Title | Page | | :--- | :--- | :--- | | Section 2 | Company Profile and Key Financial Indicators | 6 | | Section 3 | Management Discussion and Analysis | 9 | | Section 4 | Corporate Governance, Environment, and Society | 23 | | Section 5 | Significant Matters | 26 | | Section 6 | Share Changes and Shareholder Information | 35 | | Section 7 | Bond-Related Matters | 39 | | Section 8 | Financial Report | 40 | | Section 9 | Other Submitted Data | 180 | [Definitions](index=5&type=section&id=Definitions) This section provides definitions for common terms used in the report, including company abbreviations, actual controllers, major subsidiaries, business types (e.g., IP, CP, RPG, ARPG, MMO, SLG), and the reporting period, to ensure clear understanding of the report content. - Kaiser Culture, the Company, this Company, the Listed Company, and ST Kaiwen all refer to Kaiser (China) Culture Co., Ltd[14](index=14&type=chunk) - The actual controllers are natural persons Zheng Heming and Chen Yuqin, a married couple[14](index=14&type=chunk) - The reporting period refers to January 1, 2025, to June 30, 2025[14](index=14&type=chunk) Company Profile and Key Financial Indicators [I. Company Profile](index=6&type=section&id=I.%20Company%27s%20Main%20Business) The company's stock abbreviation is ST Kaiwen, stock code 002425, listed on the Shenzhen Stock Exchange, with its Chinese name being Kaiser (China) Culture Co., Ltd., and legal representative Zheng Yashan. Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | ST Kaiwen | | Stock Code | 002425 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Kaiser (China) Culture Co., Ltd. | | Legal Representative | Zheng Yashan | [II. Contact Persons and Information](index=6&type=section&id=II.%20Contact%20Persons%20and%20Information) This section provides contact information for the company's Board Secretary Qiu Minghai and Securities Affairs Representative Peng Qijian, including address, telephone, fax, and email. - The Board Secretary is Qiu Minghai, and the Securities Affairs Representative is Peng Qijian[17](index=17&type=chunk) - The company's contact address is Unit L28-04, Building 3, Excellence Qianhai No. 1, No. 5033 Menghai Avenue, Nanshan Street, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen[17](index=17&type=chunk) [III. Other Information](index=6&type=section&id=III.%20Other%20Information) The company's registered and office addresses changed during the reporting period, with the registered address in Shantou and the office address in Shenzhen, and the designated website for information disclosure is cninfo.com.cn. - The company's registered address and office address changed during the reporting period[18](index=18&type=chunk) - The company's website is http://www.kaiser.com.cn, and its email is ks002425@kaiser.com.cn[18](index=18&type=chunk) - The designated website for temporary announcements is cninfo.com.cn (http://www.cninfo.com.cn)[18](index=18&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=7&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In the first half of 2025, the company's operating revenue increased by **14.37%** to **273.32 Million Yuan**, but net profit attributable to shareholders decreased by **25.85%** to **-58.74 Million Yuan**, while net cash flow from operating activities increased by **18.07%**. Key Accounting Data and Financial Indicators (Year-on-Year Change) | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 273,317,514.42 | 238,974,100.48 | 14.37% | | Net Profit Attributable to Shareholders of the Listed Company | -58,740,763.00 | -46,674,748.48 | -25.85% | | Net Cash Flow from Operating Activities | 3,074,430.21 | 2,603,988.94 | 18.07% | | Basic Earnings Per Share | -0.0619 | -0.0492 | -25.81% | | Total Assets (Period-end) | 3,405,895,183.22 | 3,424,196,256.14 | -0.53% | | Net Assets Attributable to Shareholders of the Listed Company (Period-end) | 2,939,222,610.66 | 2,986,852,118.56 | -1.59% | [V. Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=7&type=section&id=V.%20Differences%20in%20Accounting%20Data%20under%20Domestic%20and%20Overseas%20Accounting%20Standards) During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards or overseas accounting standards and Chinese Accounting Standards. - The company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[22](index=22&type=chunk) - The company had no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[23](index=23&type=chunk) [VI. Non-Recurring Gains and Losses Items and Amounts](index=7&type=section&id=VI.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to **-943,357.63 Yuan**, primarily including gains/losses from disposal of non-current assets, government grants, entrusted investment gains/losses, reversal of impairment provisions for receivables, and other non-operating income/expenses. Non-Recurring Gains and Losses Items and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains/losses from disposal of non-current assets | 173,418.02 | | Government grants recognized in current profit or loss | 478,512.54 | | Gains/losses from entrusted investments or asset management | 298,717.84 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 3,042,000.00 | | Other non-operating income and expenses apart from the above | -4,289,703.63 | | Less: Income tax impact | 646,056.70 | | Impact on minority interests (after tax) | 245.70 | | Total | -943,357.63 | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses[26](index=26&type=chunk) Management Discussion and Analysis [I. Company's Main Business Activities During the Reporting Period](index=9&type=section&id=I.%20Company%27s%20Main%20Business%20Activities%20During%20the%20Reporting%20Period) The company is dedicated to building an internet entertainment ecosystem centered on premium IP, with its main business in cultural entertainment, including copyright operations and online game research and development (R&D) and operations, primarily generating revenue from mobile online games. - The company's main business is cultural entertainment, specifically including copyright operations, and online game R&D and operations, with primary revenue from mobile online games[29](index=29&type=chunk) - The company's game operating models include self-operation and co-operation, with the profit model being revenue recognition from game top-ups after deducting channel fees[29](index=29&type=chunk)[30](index=30&type=chunk) - The IP copyright operation model involves acquiring IP copyrights, authorizing partners to develop games, animations, films, and television products, or authorizing partners to operate developed games, thereby generating copyright revenue[30](index=30&type=chunk)[31](index=31&type=chunk) [(I) Company's Main Business](index=9&type=section&id=(I)%20Company%27s%20Main%20Business) The company's core business is to build an internet entertainment ecosystem centered on premium IP, covering various entertainment content such as novels, animations, and games, with online game R&D and operations, and copyright operations as its main revenue sources, especially mobile online games. - The company is committed to building an internet entertainment ecosystem with premium IP as its core, comprehensively laying out the pan-entertainment industry chain[29](index=29&type=chunk) - Its main business is cultural entertainment, specifically including copyright operations, and online game R&D and operations[29](index=29&type=chunk) - Currently, the main revenue comes from mobile online games[29](index=29&type=chunk) [(II) Company's Main Operating Model](index=9&type=section&id=(II)%20Company%27s%20Main%20Operating%20Model) The company's online game business primarily generates revenue through self-operation and co-operation models, with self-operation handling product marketing, operations, and payment, while co-operation involves partnerships with publishers for promotion and revenue sharing from top-ups. - Online game business operating models include self-operation and co-operation[29](index=29&type=chunk) - Under the self-operation model, the company is responsible for product marketing, operations, payment, server support, etc., recognizing revenue after deducting channel fees[29](index=29&type=chunk) - Under the co-operation model, the company partners with game publishers for promotion and top-up services, recognizing revenue based on agreed-upon sharing ratios[30](index=30&type=chunk) - The IP copyright operation model generates copyright revenue by acquiring and sub-licensing IP copyrights, or by licensing already developed games for operation[30](index=30&type=chunk)[31](index=31&type=chunk) [(III) Key Performance Drivers During the Reporting Period](index=9&type=section&id=(III)%20Key%20Performance%20Drivers%20During%20the%20Reporting%20Period) The company adheres to an integrated R&D and operation strategy, driving performance through classic IP, diversified product lines (strategy, card, ACG), expansion into emerging platforms (WeChat mini-games, Huawei Quick Games), and an internationalization strategy (game overseas expansion). - The company adheres to an integrated R&D and operation strategy, driven by classic IP, launching diversified product lines covering strategy, card, and innovative categories[31](index=31&type=chunk) - It explores emerging platforms such as WeChat mini-games and Huawei Quick Games to extend the lifecycle of older games, and promotes an internationalization strategy to accelerate game overseas expansion[31](index=31&type=chunk) - The company actively integrates cutting-edge technologies, incorporating GPT-4 and domestic GLM large models to assist R&D, and AI text-to-image tools to optimize art design[31](index=31&type=chunk) 2025 First Half Performance Overview | Indicator | Amount (Ten Thousand Yuan) | Year-on-Year Change | | :--- | :--- | :--- | | Operating Revenue | 27,331.75 | 14.37% | | Net Profit Attributable to Shareholders of the Listed Company | -5,874.08 | -25.85% | | Total Assets | 340,589.52 | -0.53% | | Net Assets Attributable to Shareholders of the Listed Company | 293,922.26 | -1.59% | [1. Game Business](index=10&type=section&id=1.%20Game%20Business) In the first half of 2025, the company's mature premium games maintained stable revenue, with "Romance of the Three Kingdoms 2017" exceeding **7 Billion Yuan** in global gross revenue, and "Saint Seiya: Rebirth" exceeding **1.7 Billion Yuan**. - "Romance of the Three Kingdoms 2017" has exceeded **7 Billion Yuan** in global gross revenue, with significant contributions from Hong Kong, Taiwan, and Japan markets[32](index=32&type=chunk) - "Saint Seiya: Rebirth" has exceeded **1.7 Billion Yuan** in global gross revenue, and its series product "Saint Seiya: Rebirth 2" topped the App Store free chart on its launch day[32](index=32&type=chunk) - Multiple IP-adapted games such as "Shrouding the Heavens World", "All-Star Awakening", and "Ultraman (Code: Light)" have obtained publication licenses and signed with leading publishers like Tencent[33](index=33&type=chunk) - The company will rely on a "R&D + Operation" dual-driven strategy, planning to launch new products such as "One Piece: Grand Collection", "Shrouding the Heavens World", and "All-Star Awakening" in the second half of 2025[34](index=34&type=chunk) [2. IP Business](index=10&type=section&id=2.%20IP%20Business) The company's core strategy is "premium IP", building a complete IP ecosystem through global layout, multi-form development, and technology empowerment. - The company's core strategy is "premium IP", building a complete IP ecosystem through global layout, multi-form development, and technology empowerment[34](index=34&type=chunk) - It possesses top Japanese IP resources such as "Saint Seiya", "All-Star Awakening", "Ultraman", "One Piece", and "Yu Yu Hakusho"[34](index=34&type=chunk)[35](index=35&type=chunk) - In the domestic animation and novel fields, it holds game adaptation rights for popular IPs such as "The Outcast" and "Shrouding the Heavens"[36](index=36&type=chunk) - The company is committed to immersive game development of top Japanese animation IPs, forming a brand radiation effect in European, American, and Southeast Asian markets, achieving a complete business closed-loop from IP incubation and multi-form development to long-term operation[37](index=37&type=chunk) [1. Industry Status](index=11&type=section&id=1.%20Industry%20Status) In the first half of 2025, the actual sales revenue of China's domestic game market reached **147.27 Billion Yuan**, a year-on-year increase of **22.34%**, with the mobile game market revenue reaching **125.31 Billion Yuan**, up **35.81%** year-on-year. 2025 First Half China Game Industry Data | Indicator | Amount (Hundred Million Yuan) | Year-on-Year Growth | | :--- | :--- | :--- | | Domestic Game Market Actual Sales Revenue | 1,472.67 | 22.34% | | Game User Scale | 679 Million | 0.72% | | Mobile Game Market Actual Sales Revenue | 1,253.09 | 35.81% | | Mini-Program Mobile Game Actual Sales Revenue | 232.76 | 40.20% | - Domestic mobile game market revenue is mainly concentrated in MOBA, shooting, and strategy categories, with the head effect intensifying[38](index=38&type=chunk) - The overall market development shows a "dumbbell" structure, with high-cost, high-return large-scale games and short, fast, lightweight casual mini-games continuing to grow, while mid-sized game products shrink in volume[38](index=38&type=chunk) [2. Impact of Industry Policies on the Industry](index=11&type=section&id=2.%20Impact%20of%20Industry%20Policies%20on%20the%20Industry) In the first half of the year, China's game industry maintained steady growth, with increased policy support, as **884** domestic game licenses were issued from January to June, a **20.60%** year-on-year increase. - From January to June 2025, the National Press and Publication Administration issued **884** domestic game licenses, a **20.60%** year-on-year increase, indicating continued improvement in game industry supply[38](index=38&type=chunk) - A batch of new products is expected to be launched in the second half of the year, which is likely to provide new impetus for sustained industry growth[38](index=38&type=chunk) - The game industry will continue to actively assume social responsibility, promote the protection of minors, and adhere to correct value guidance[38](index=38&type=chunk) [3. Company's Industry Position](index=11&type=section&id=3.%20Company%27s%20Industry%20Position) The company has established its market position as a large independent developer, possessing strong R&D capabilities and IP resource commercialization capabilities, with a scaled R&D team and ample new game product reserves. - The company has established its market position as a large independent developer, possessing strong R&D capabilities and market bargaining power[40](index=40&type=chunk) - It has developed into a mobile game enterprise capable of simultaneously launching and operating multiple games, with IP resource commercialization capabilities, a scaled R&D team, and ample new game product reserves[40](index=40&type=chunk) - The company will explore international business opportunities, actively expand into overseas markets, continuously enhance its comprehensive profitability, and undertake the responsibility of spreading Chinese culture[40](index=40&type=chunk) [II. Analysis of Core Competencies](index=12&type=section&id=II.%20Analysis%20of%20Core%20Competencies) The company's core competencies lie in its leading industry chain layout, diversified IP matrix, deep cooperation with top platforms, and integrated standardized group management. - The company possesses a mature R&D system and capabilities, focusing on R&D and self-publishing or co-operating game businesses based on a premium IP pan-entertainment strategy, forming industrial synergy[41](index=41&type=chunk) - As a leading domestic IP game R&D company, it has established good cooperation with renowned copyright holders such as Japan's Shueisha and Kodansha, as well as domestic copyright holders, possessing numerous IP resources including "One Piece", "Saint Seiya", and "Shrouding the Heavens World"[41](index=41&type=chunk) - Deep cooperation with leading platforms such as Tencent, Alibaba, ByteDance, Kuaishou, and 360 expands revenue growth potential[42](index=42&type=chunk) - Headquarters and subsidiaries collaborate in an integrated manner, with an experienced management team ensuring organizational vitality through talent incentives and a last-man-out system[42](index=42&type=chunk) [III. Analysis of Main Business](index=12&type=section&id=III.%20Analysis%20of%20Main%20Business) During the reporting period, the company's operating revenue increased by **14.37%**, primarily contributed by the cultural and entertainment industry at **97.66%**. Key Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 273,317,514.42 | 238,974,100.48 | 14.37% | | | Operating Cost | 279,173,656.35 | 218,257,591.98 | 27.91% | | | Selling Expenses | 4,543,924.90 | 7,020,251.25 | -35.27% | Primarily due to a decrease in salaries and benefits | | Administrative Expenses | 32,964,398.49 | 40,083,151.18 | -17.76% | | | Financial Expenses | 1,191,443.22 | 1,993,265.41 | -40.23% | Primarily due to the impact of exchange rate fluctuations | | Income Tax Expense | 3,051,768.66 | -6,961,534.96 | 143.84% | Primarily due to an increase in deferred income tax expenses | | R&D Investment | 33,404,948.26 | 50,880,205.89 | -34.35% | Primarily due to a decrease in salaries and benefits | | Net Cash Flow from Operating Activities | 3,074,430.21 | 2,603,988.94 | 18.07% | | | Net Cash Flow from Investing Activities | -67,051,322.57 | -28,400,561.31 | -136.09% | Primarily due to increased purchases of wealth management products and equity investments in the current period | | Net Cash Flow from Financing Activities | 39,276,006.61 | -11,997,653.34 | 427.36% | Primarily due to increased bank borrowings, borrowings from controlling shareholders and related parties | | Net Increase in Cash and Cash Equivalents | -24,523,029.23 | -37,894,537.60 | 35.29% | Primarily due to increased bank borrowings, borrowings from controlling shareholders and related parties | Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Current Reporting Period Amount (Yuan) | Proportion | Prior Year Period Amount (Yuan) | Proportion | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | Culture and Entertainment Industry | 266,914,365.41 | 97.66% | 233,428,759.48 | 97.68% | 14.35% | | | Other | 6,403,149.01 | 2.34% | 5,545,341.00 | 2.32% | 15.47% | | By Product | Game Revenue Sharing | 249,932,624.59 | 91.44% | 228,696,939.48 | 95.70% | 9.29% | | | Copyright Operations | 0.00 | 0.00% | 4,716,981.13 | 1.97% | -100.00% | | | Technical Services | 16,981,131.82 | 6.21% | - | - | - | | | Other | 6,403,758.01 | 2.34% | 5,560,179.87 | 2.33% | 15.17% | | By Region | Domestic | 204,850,250.53 | 74.95% | 184,986,370.35 | 77.41% | 10.74% | | | Overseas | 68,467,263.89 | 25.05% | 53,987,730.13 | 22.59% | 26.82% | Main Business Cost Composition (Year-on-Year Change) | Cost Component | Current Reporting Period Amount (Yuan) | Proportion | Prior Year Period Amount (Yuan) | Proportion | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Game Revenue Sharing | 35,904,763.30 | 12.86% | 28,067,505.51 | 12.86% | 27.92% | | Copyright Amortization | 9,067,634.66 | 3.25% | 12,514,070.88 | 5.73% | -27.54% | | Production Cost Amortization | 78,021,728.21 | 27.95% | 35,881,645.91 | 16.44% | 117.44% | | Labor Costs | 18,359,333.29 | 6.57% | 12,377,442.08 | 5.67% | 48.33% | | Channel Costs | 134,457,544.69 | 48.16% | 125,587,855.38 | 57.54% | 7.06% | | Other | 3,087,522.31 | 1.11% | 3,639,717.51 | 1.67% | -15.17% | - Production cost amortization increased by **117.44%** year-on-year, primarily due to increased amortization of new game project development costs[53](index=53&type=chunk) - Labor costs increased by **48.33%** year-on-year, primarily due to increased maintenance costs for new game projects[53](index=53&type=chunk) [IV. Analysis of Non-Main Business](index=15&type=section&id=IV.%20Analysis%20of%20Non-Main%20Business) During the reporting period, the company's non-main business impacted total profit, with investment income of **-6.81 Million Yuan**, asset impairment reversal of **9.49 Million Yuan**, and non-operating expenses of **4.30 Million Yuan** mainly due to contract late fees. Non-Main Business Gains and Losses | Item | Amount (Yuan) | Proportion of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -6,808,155.20 | 11.58% | Primarily long-term equity investment income accounted for using the equity method | No | | Asset Impairment | 9,487,197.74 | 16.14% | Primarily reversal of bad debt provisions for receivables | No | | Non-Operating Income | 12,654.57 | 0.02% | | No | | Non-Operating Expenses | 4,302,358.20 | 7.32% | Primarily contract late fees | No | [V. Analysis of Assets and Liabilities](index=15&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's total assets were **3.41 Billion Yuan**, a slight decrease of **0.53%** from the end of the previous year. Significant Changes in Asset Composition | Item | Amount at End of Current Period (Yuan) | Proportion of Total Assets | Amount at End of Previous Year (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 148,815,513.53 | 4.37% | 175,247,662.74 | 5.12% | -0.75% | | | Accounts Receivable | 278,516,906.21 | 8.18% | 257,636,237.72 | 7.52% | 0.66% | | | Contract Liabilities | 57,696,992.33 | 1.69% | 121,855,289.84 | 3.56% | -1.87% | Primarily due to the end of business cooperation, leading to a decrease in contract liabilities | | Other Receivables | 6,995,449.37 | 0.21% | 2,955,562.49 | 0.09% | 0.12% | Primarily due to the disposal of financial assets in the current period, resulting in new receivables from disposal | | Other Non-Current Assets | 120,049,917.21 | 3.52% | 86,808,013.92 | 2.54% | 0.98% | Primarily due to new game project customization fees in the current period | | Other Payables | 78,845,321.90 | 2.31% | 20,656,428.32 | 0.60% | 1.71% | Primarily due to an increase in funds to be returned to partners after the end of business cooperation and an increase in borrowings from controlling shareholders and related parties | Assets and Liabilities Measured at Fair Value | Item | Period-end Amount (Yuan) | Period-start Amount (Yuan) | | :--- | :--- | :--- | | Trading Financial Assets | 30,000,000.00 | 0.00 | | Other Non-Current Financial Assets | 149,401,683.89 | 159,208,228.06 | | Investment Properties | 327,348,000.00 | 327,348,000.00 | | Total | 506,749,683.89 | 486,556,228.06 | - Investment properties totaling **88,009,800.00 Yuan** are restricted in rights due to mortgage[61](index=61&type=chunk) [VI. Analysis of Investment Status](index=17&type=section&id=VI.%20Analysis%20of%20Investment%20Status) During the reporting period, the company's investment amounted to **10 Million Yuan**, a year-on-year increase of **100%**. Investment Amount During the Reporting Period | Indicator | Amount (Yuan) | | :--- | :--- | | Investment Amount for the Reporting Period | 10,000,000.00 | | Investment Amount for the Prior Year Period | 5,000,000.00 | | Change Rate | 100.00% | - The company had no securities investments or derivative investments during the reporting period[63](index=63&type=chunk)[64](index=64&type=chunk) Overall Use of Raised Funds | Total Raised Funds (Ten Thousand Yuan) | Net Raised Funds (Ten Thousand Yuan) | Total Raised Funds Used Cumulatively (Ten Thousand Yuan) | Proportion of Raised Funds Used at Period-end | | :--- | :--- | :--- | :--- | | 90,040 | 87,067.1 | 72,313.35 | 83.05% | - Raised investment projects "Game R&D and Operation Project" and "Overseas Distribution Project for Agency Games" were delayed due to market environment changes and other reasons, extended to March 2028 and December 2025, respectively[69](index=69&type=chunk) - The company uses idle raised funds not exceeding **100 Million Yuan** to temporarily supplement working capital, with a usage period not exceeding 12 months[69](index=69&type=chunk) [VII. Significant Asset and Equity Sales](index=20&type=section&id=VII.%20Significant%20Asset%20and%20Equity%20Sales) The company did not sell significant assets or equity during the reporting period. - The company did not sell significant assets during the reporting period[72](index=72&type=chunk) - The company did not sell significant equity during the reporting period[73](index=73&type=chunk) [VIII. Analysis of Major Holding and Participating Companies](index=20&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) The company's major subsidiaries include Shenzhen Cool Niu Interactive Technology Co., Ltd., Hangzhou Huanwen Technology Co., Ltd., and Sichuan Tian Shang You Jia Network Technology Co., Ltd., primarily engaged in game operations and IP operations. Major Subsidiary Financial Overview | Company Name | Company Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shenzhen Cool Niu Interactive Technology Co., Ltd. | Subsidiary | Game Operations | 10,000,000.00 | 404,490,435.32 | 14,228,720.77 | 116,729,679.38 | 32,575,344.20 | | Hangzhou Huanwen Technology Co., Ltd. | Subsidiary | IP Operations | 10,000,000.00 | 90,947,448.73 | -32,383,957.34 | 1,646,429.79 | -8,678,620.48 | | Sichuan Tian Shang You Jia Network Technology Co., Ltd. | Subsidiary | Game Operations | 10,000,000.00 | 474,427,314.82 | 339,699,494.04 | 87,093,818.77 | 8,292,275.33 | - The company did not acquire or dispose of subsidiaries during the reporting period[74](index=74&type=chunk) [IX. Information on Structured Entities Controlled by the Company](index=21&type=section&id=IX.%20Information%20on%20Structured%20Entities%20Controlled%20by%20the%20Company) The company had no structured entities under its control during the reporting period. - The company had no structured entities under its control during the reporting period[75](index=75&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=21&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces risks including market competition, industry policies, technology, failure in game product R&D and operation, loss of core personnel, and goodwill impairment. - Market competition risk: The mobile game industry has entered a period of inventory competition, requiring the company to continuously develop premium games to cope[75](index=75&type=chunk) - Industry policy risk: Game products require publication license approval for launch, posing risks of non-compliance with content regulations[75](index=75&type=chunk) - Technology risk: The game industry experiences rapid product iteration, necessitating close alignment with technological development trends[76](index=76&type=chunk) - Game product R&D and operation failure risk: Products may not adapt to the market or operations may fall short of expectations[77](index=77&type=chunk) - Core personnel loss risk: The stability of core technical and operational talent is crucial for the company's development[78](index=78&type=chunk) - Goodwill impairment risk: Significant goodwill was formed from the acquisitions of Cool Niu Interactive and Tian Shang You Jia, which may face impairment if the target companies perform poorly[79](index=79&type=chunk) [XI. Implementation of Market Value Management System and Valuation Enhancement Plan](index=22&type=section&id=XI.%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) The company has formulated a valuation enhancement plan, which was approved by the Board of Directors on April 24, 2025. - The company has formulated a valuation enhancement plan, which was approved by the Board of Directors on April 24, 2025[81](index=81&type=chunk) - The plan includes focusing on the main business, emphasizing shareholder returns, establishing long-term incentive mechanisms, and utilizing market value management tools[81](index=81&type=chunk) [XII. Implementation of the "Quality and Return Dual Enhancement" Action Plan](index=22&type=section&id=XII.%20Implementation%20of%20the%20%22Quality%20and%20Return%20Dual%20Enhancement%22%20Action%20Plan) The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan during the reporting period. - The company did not disclose an announcement regarding the "Quality and Return Dual Enhancement" action plan during the reporting period[82](index=82&type=chunk) Corporate Governance, Environment, and Society [I. Changes in Directors, Supervisors, and Senior Management](index=23&type=section&id=I.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, independent director Lu Hui resigned due to personal reasons, and Zheng Zhuowu was elected as an independent director. Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Lu Hui | Independent Director | Resignation | May 20, 2025 | Personal reasons | | Zheng Zhuowu | Independent Director | Election | May 20, 2025 | Personal reasons | [II. Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period](index=23&type=section&id=II.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20During%20the%20Reporting%20Period) 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[85](index=85&type=chunk) [III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=23&type=section&id=III.%20Implementation%20of%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company had no equity incentive plans during the reporting period. The 2025 employee stock ownership plan includes **35** holders, comprising directors, supervisors, senior management, middle management, and core technical personnel, holding a total of **8,627,600** shares, accounting for **0.90%** of the total share capital. - The company had no equity incentive plans during the reporting period[86](index=86&type=chunk) 2025 Employee Stock Ownership Plan Overview | Employee Scope | Number of Employees | Total Shares Held (Shares) | Proportion of Listed Company's Total Share Capital | Funding Sources for the Plan | | :--- | :--- | :--- | :--- | :--- | | Directors, Supervisors, Senior Management, Middle Management, and Core Technical Personnel, etc. | 35 | 8,627,600 | 0.90% | Employees' legal remuneration, self-raised funds, and other methods permitted by laws and regulations | Shareholding of Directors, Supervisors, and Senior Management in the Employee Stock Ownership Plan During the Reporting Period | Name | Position | Shares Held at Period-end (Shares) | Proportion of Listed Company's Total Share Capital | | :--- | :--- | :--- | :--- | | Zheng Yashan | Chairman | 390,625 | 0.04% | | Zheng Linhai | Vice Chairman | 390,625 | 0.04% | | Huang Zhongxi | Director, Deputy General Manager | 781,250 | 0.08% | | Qiu Minghai | Deputy General Manager, Board Secretary | 156,250 | 0.02% | | Zheng Hongsheng | Director | 156,250 | 0.02% | | Zheng Ziman | Director | 156,250 | 0.02% | | Zhou Luming | Supervisor | 390,625 | 0.04% | - The company's share-based payment incentive plan recognized an expense amortization of **542,100.87 Yuan** in the first half of 2025, recorded in relevant expense accounts and capital reserves[88](index=88&type=chunk) [IV. Environmental Information Disclosure](index=24&type=section&id=IV.%20Environmental%20Information%20Disclosure) The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law. - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[89](index=89&type=chunk) [V. Social Responsibility](index=24&type=section&id=V.%20Social%20Responsibility) The company adheres to the principle of developing the enterprise, cultivating talent, and giving back to society, actively fulfilling its social responsibilities. - The company consistently adheres to the corporate mission of developing the enterprise, cultivating talent, and giving back to society, fulfilling its social responsibilities[89](index=89&type=chunk) - During the reporting period, the company jointly carried out poverty alleviation and relief visits and condolences with the Longhu District Industrial Park[89](index=89&type=chunk) - The games (products) developed by the company are primarily targeted at adult customers, strictly adhering to relevant regulations by integrating anti-addiction systems and implementing real-name registration, demonstrating high regard for minor protection[89](index=89&type=chunk)[90](index=90&type=chunk) Significant Matters [I. Fulfilled and Overdue Unfulfilled Commitments by Actual Controllers, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period](index=26&type=section&id=I.%20Fulfilled%20and%20Overdue%20Unfulfilled%20Commitments%20by%20Actual%20Controllers%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20During%20and%20as%20of%20the%20End%20of%20the%20Reporting%20Period) During the reporting period, multiple commitments made by the company's actual controllers, shareholders, and related parties during asset restructuring and refinancing, including providing truthful information, maintaining company independence, regulating related-party transactions, avoiding horizontal competition, non-compete clauses, and compensation measures, were all being fulfilled on time, with no overdue unfulfilled commitments. - Huang Zhongxi, Zeng Xiaojun, Zhou Luming, Lin Jiaxi, and others committed during asset restructuring to provide truthful information, maintain company independence, regulate and reduce related-party transactions, and legally own Cool Niu Interactive equity, all of which are being fulfilled[92](index=92&type=chunk) - He Xiaowei, Zhang Qiang, Liu Ziming, Zhai Zhiwei, Ding Chenling, and Industry-University-Research Venture Capital, among others, committed during asset restructuring to provide truthful information, legally and effectively own Tian Shang You Jia equity, and have no administrative penalties in the past 5 years, all of which are being fulfilled[92](index=92&type=chunk) - Kaiser Group, Zhikai Co., Ltd., Zheng Heming, Chen Yuqin, and others committed during initial public offering or refinancing not to overstep authority in interfering with company operations, not to infringe upon company interests, and to implement compensation measures, all of which are being fulfilled[92](index=92&type=chunk)[93](index=93&type=chunk) - The company committed to distributing no less than **20%** of the distributable profit in cash annually, and this dividend commitment is being fulfilled[93](index=93&type=chunk) [II. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties of the Listed Company](index=28&type=section&id=II.%20Non-Operating%20Fund%20Occupation%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties%20of%20the%20Listed%20Company) During the reporting period, there was no non-operating fund occupation by controlling shareholders and other related parties of the listed company. - During the reporting period, there was no non-operating fund occupation by controlling shareholders and other related parties of the listed company[94](index=94&type=chunk) [III. Irregular External Guarantees](index=28&type=section&id=III.%20Irregular%20External%20Guarantees) The company had no irregular external guarantees during the reporting period. - The company had no irregular external guarantees during the reporting period[95](index=95&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=28&type=section&id=IV.%20Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual financial report was unaudited. - The company's semi-annual financial report was unaudited[96](index=96&type=chunk) [V. Board of Directors' and Supervisory Board's Explanations on the Accounting Firm's "Non-Standard Audit Report" for the Current Period](index=28&type=section&id=V.%20Board%20of%20Directors%27%20and%20Supervisory%20Board%27s%20Explanations%20on%20the%20Accounting%20Firm%27s%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Current%20Period) The company had no non-standard audit report during the reporting period. - The company had no non-standard audit report during the reporting period[97](index=97&type=chunk) [VI. Board of Directors' Explanations on the "Non-Standard Audit Report" for the Previous Year](index=28&type=section&id=VI.%20Board%20of%20Directors%27%20Explanations%20on%20the%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Previous%20Year) The company had no non-standard audit report during the reporting period. - The company had no non-standard audit report during the reporting period[97](index=97&type=chunk) [VII. Bankruptcy Reorganization Matters](index=28&type=section&id=VII.%20Bankruptcy%20Reorganization%20Matters) The company had no bankruptcy reorganization matters during the reporting period. - The company had no bankruptcy reorganization matters during the reporting period[97](index=97&type=chunk) [VIII. Litigation Matters](index=28&type=section&id=VIII.%20Litigation%20Matters) During the reporting period, the company had no significant litigation or arbitration matters. - The company had no significant litigation or arbitration matters during this reporting period[98](index=98&type=chunk) Other Litigation Matters Overview | Basic Information of Litigation (Arbitration) | Amount Involved (Ten Thousand Yuan) | Whether Provision for Liabilities Formed | Litigation (Arbitration) Progress | | :--- | :--- | :--- | :--- | | Summary of matters where the company as plaintiff did not meet the disclosure standards for significant litigation (arbitration) | 1,051.67 | No | Concluded; Withdrawn; Awaiting first-instance judgment; Awaiting first-instance hearing | | Summary of matters where the company as defendant did not meet the disclosure standards for significant litigation (arbitration) | 1,136.32 | Yes, 1,036.94 Ten Thousand Yuan | Second-instance ruling remanded for retrial; Second-instance appeal in progress; Concluded or settled | | Company and 15 natural person investors' securities misrepresentation liability dispute case | 181.41 | No | Jurisdiction objection stage or being transferred; Withdrawn | [IX. Penalties and Rectification](index=29&type=section&id=IX.%20Penalties%20and%20Rectification) The company had no penalties or rectification situations during the reporting period. - The company had no penalties or rectification situations during the reporting period[100](index=100&type=chunk) [X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=29&type=section&id=X.%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) The company had no integrity issues concerning itself, its controlling shareholder, or actual controller during the reporting period. - The company had no integrity issues concerning itself, its controlling shareholder, or actual controller during the reporting period[101](index=101&type=chunk) [XI. Significant Related-Party Transactions](index=29&type=section&id=XI.%20Significant%20Related-Party%20Transactions) During the reporting period, the company had no related-party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, or related-party creditor/debtor relationships. - The company had no related-party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, or related-party creditor/debtor relationships during the reporting period[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) - The estimated daily related-party transaction amount for game development service contracts with Shenzhen Huandong Wuji Technology Co., Ltd. in 2025 is **70 Million Yuan**, with **24.31 Million Yuan** actually incurred[108](index=108&type=chunk) - The estimated related-party lease amounts with Jihua Real Estate Co., Ltd. and Kaiser International Group Hong Kong Co., Ltd. for 2025 are **480,000 Yuan** and **170,000 Yuan**, with **237,100 Yuan** and **82,700 Yuan** actually incurred[108](index=108&type=chunk) - The company and its subsidiaries applied for a borrowing limit not exceeding **40 Million Yuan** from controlling shareholders and their related parties, of which **8.5 Million Yuan** has been repaid as of the end of the reporting period[109](index=109&type=chunk) [XII. Significant Contracts and Their Performance](index=30&type=section&id=XII.%20Significant%20Contracts%20and%20Their%20Performance) The company had no trusteeship or contracting situations during the reporting period. - The company had no trusteeship or contracting situations during the reporting period[110](index=110&type=chunk)[111](index=111&type=chunk) - As a lessor, the company leased out multiple properties in Shantou, Huizhou, Kunming, Chengdu, Jinan, Wuxi, Nanjing, Dongguan, Chongqing, Guiyang, Urumqi, and Zhengzhou, with most lease terms lasting several years[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk) - As a lessee, the company leased multiple office spaces in Chengdu, Shenzhen, Hong Kong, Beihai, and Shanghai[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) Company Guarantee Total Amount | Indicator | Amount (Ten Thousand Yuan) | | :--- | :--- | | Total Approved Guarantee Limit for Subsidiaries During the Reporting Period | 28,000 | | Total Approved Guarantee Limit for Subsidiaries at Period-end | 28,000 | | Total Actual Guarantee Balance for Subsidiaries at Period-end | 0 | | Total Guarantee Limit from Subsidiaries to Subsidiaries | 2,000 | | Total Actual Guarantee Balance from Subsidiaries to Subsidiaries | 2,000 | | Total Actual Guarantee Amount at Period-end | 2,000 | | Proportion of Total Actual Guarantee Amount to Company's Net Assets | 0.68% | Entrusted Wealth Management | Specific Type | Source of Entrusted Wealth Management Funds | Entrusted Wealth Management Amount Incurred (Ten Thousand Yuan) | Unexpired Balance (Ten Thousand Yuan) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Own Funds | 2,300 | 0 | | Bank Wealth Management Products | Raised Funds | 5,000 | 3,000 | | Total | | 7,300 | 3,000 | - The company had no other significant contracts during the reporting period[126](index=126&type=chunk) [XIII. Explanation of Other Significant Matters](index=34&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) The company had no other significant matters requiring explanation during the reporting period. - The company had no other significant matters requiring explanation during the reporting period[127](index=127&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=34&type=section&id=XIV.%20Significant%20Matters%20of%20Company%20Subsidiaries) 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[128](index=128&type=chunk) Share Changes and Shareholder Information [I. Share Capital Changes](index=35&type=section&id=I.%20Share%20Capital%20Changes) During the reporting period, the company's total share capital remained unchanged at **956,665,066** shares. Share Capital Changes | Share Type | Number of Shares Before Change (Shares) | Proportion | Increase/Decrease in This Change (Shares) | Number of Shares After Change (Shares) | Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 604,168 | 0.06% | 0 | 604,168 | 0.06% | | II. Unrestricted Shares | 956,060,898 | 99.94% | 0 | 956,060,898 | 99.94% | | III. Total Shares | 956,665,066 | 100.00% | 0 | 956,665,066 | 100.00% | - The company's total share capital remained unchanged during the reporting period[132](index=132&type=chunk) [II. Securities Issuance and Listing](index=36&type=section&id=II.%20Securities%20Issuance%20and%20Listing) The company had no securities issuance or listing during the reporting period. - The company had no securities issuance or listing during the reporting period[132](index=132&type=chunk) [III. Number of Shareholders and Shareholding Information](index=36&type=section&id=III.%20Number%20of%20Shareholders%20and%20Shareholding%20Information) At the end of the reporting period, the total number of common shareholders was **52,658**. - At the end of the reporting period, the total number of common shareholders was **52,658**[133](index=133&type=chunk) Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held at Period-end (Shares) | Number of Unrestricted Shares Held (Shares) | | :--- | :--- | :--- | :--- | :--- | | Kaiser Group (Hong Kong) Co., Ltd. | Overseas Legal Person | 19.59% | 187,409,497 | 187,409,497 | | Zhikai Co., Ltd. | Overseas Legal Person | 2.90% | 27,770,712 | 27,770,712 | | Su Xiaohong | Domestic Natural Person | 1.92% | 18,411,600 | 18,411,600 | | Kaiser (China) Culture Co., Ltd. - 2025 Employee Stock Ownership Plan | Other | 0.90% | 8,627,600 | 8,627,600 | - The equity structure of the controlling shareholder, Kaiser Group (Hong Kong) Co., Ltd., shows Mr. Zheng Heming and Ms. Chen Yuqin each holding **50%**, and they are the actual controllers of the company[134](index=134&type=chunk) - The sole shareholder of the second largest shareholder, Zhikai Co., Ltd., is Ms. Chen Yuqin[134](index=134&type=chunk) [IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=38&type=section&id=IV.%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period. - The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period[136](index=136&type=chunk) [V. Changes in Controlling Shareholder or Actual Controller](index=38&type=section&id=V.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) The company's controlling shareholder and actual controller did not change during the reporting period. - The company's controlling shareholder did not change during the reporting period[137](index=137&type=chunk) - The company's actual controller did not change during the reporting period[137](index=137&type=chunk) [VI. Preferred Share Information](index=38&type=section&id=VI.%20Preferred%20Share%20Information) The company had no preferred shares during the reporting period. - The company had no preferred shares during the reporting period[138](index=138&type=chunk) Bond-Related Matters [Bond-Related Matters](index=39&type=section&id=Bond-Related%20Matters) The company had no bond-related matters during the reporting period. - The company had no bond-related matters during the reporting period[140](index=140&type=chunk) Financial Report [I. Audit Report](index=40&type=section&id=I.%20Audit%20Report) The company's semi-annual financial report was unaudited. - The company's semi-annual financial report was unaudited[142](index=142&type=chunk) [II. Financial Statements](index=40&type=section&id=II.%20Financial%20Statements) This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, presenting the financial position at the end of the reporting period and operating results and cash flows during the period. - Financial statements include consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity[143](index=143&type=chunk) - The consolidated balance sheet shows total assets of **3,405,895,183.22 Yuan** and total current liabilities of **383,513,084.62 Yuan** at period-end[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) - The consolidated income statement shows a net profit of **-61,819,114.61 Yuan** for the current period, with net profit attributable to parent company shareholders of **-58,740,763.00 Yuan**[153](index=153&type=chunk)[154](index=154&type=chunk) - The consolidated cash flow statement shows net cash flow from operating activities of **3,074,430.21 Yuan**, net cash flow from investing activities of **-67,051,322.57 Yuan**, and net cash flow from financing activities of **39,276,006.61 Yuan**[158](index=158&type=chunk)[159](index=159&type=chunk) [III. Company Basic Information](index=57&type=section&id=III.%20Company%20Basic%20Information) Kaiser (China) Culture Co., Ltd., formerly Kaiser (China) Co., Ltd., was restructured into a joint-stock company in 2002. - The company, formerly Kaiser (China) Co., Ltd., was restructured into a joint-stock company on May 27, 2002[176](index=176&type=chunk) - The company's share capital increased multiple times through capital increases and issuances, reaching **956,665,066 Yuan** as of November 13, 2020[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) - The company's industry is internet and related services, primarily engaged in the R&D, operation, and distribution of pan-entertainment related products[181](index=181&type=chunk) - These financial statements and notes were approved by the company's Eighth Board of Directors at its Seventeenth Meeting on August 26, 2025[182](index=182&type=chunk) [IV. Basis of Financial Statement Preparation](index=59&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations, and comply with 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)". - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance, their application guidelines, interpretations, and other relevant regulations[183](index=183&type=chunk) - These financial statements are presented on a going concern basis, with accounting based on the accrual method, and, except for certain financial instruments and investment properties, are measured at historical cost[184](index=184&type=chunk) - The company has the ability to continue as a going concern for at least 12 months from the end of this reporting period, with no significant matters affecting its operating ability[185](index=185&type=chunk) [V. Significant Accounting Policies and Accounting Estimates](index=59&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Accounting%20Estimates) This section elaborates on the significant accounting policies and estimates followed in preparing the company's financial statements, covering business combinations, consolidated financial statements, financial instruments, long-term equity investments, investment properties, fixed assets, intangible assets, impairment of long-term assets, employee benefits, share-based payments, revenue recognition, government grants, deferred income tax, and leases. - The company determines the capitalization conditions for R&D expenses and revenue recognition policies based on its own production and operation characteristics[186](index=186&type=chunk) - These financial statements comply with the requirements of the Accounting Standards for Business Enterprises, truly and completely reflecting the company's financial position, operating results, and cash flows[187](index=187&type=chunk) - The company classifies financial assets at initial recognition into those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss, based on the business model for managing financial assets and the contractual cash flow characteristics of the financial assets[215](index=215&type=chunk) - The company recognizes revenue when it has satisfied a performance obligation in the contract, i.e., when the customer obtains control of the related goods or services, with specific methods including game co-operation revenue, technical service revenue, and copyright revenue[305](index=305&type=chunk)[312](index=312&type=chunk) [VI. Taxation](index=87&type=section&id=VI.%20Taxation) The company's main taxes include Value-Added Tax, Urban Maintenance and Construction Tax, Enterprise Income Tax, Education Surcharge, and Local Education Surcharge. Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Value Added | 6%, 13%, 5% (levy rate) | | Urban Maintenance and Construction Tax | Actual Turnover Tax Paid | 5%, 7% | | Enterprise Income Tax | Taxable Income | Exempt, 15%, 16.5%, 25% or enjoy tax preferential policies for small and micro enterprises | | Education Surcharge | Actual Turnover Tax Paid | 3% | | Local Education Surcharge | Actual Turnover Tax Paid | 2% | - Horgos Yijia Network Technology Co., Ltd. and Horgos Chiyou Tiandi Network Technology Co., Ltd. are exempt from enterprise income tax in 2025[338](index=338&type=chunk) - Chengdu Zhidian Century Network Technology Co., Ltd. enjoys a 15% income tax rate under the Western Region Encouraged Industry Enterprise tax preferential policy[338](index=338&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=88&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section details the period-end balances, period-start balances, and current period changes for each item in the consolidated financial statements, including monetary funds, financial assets, accounts receivable, other receivables, prepayments, inventories, long-term equity investments, investment properties, fixed assets, intangible assets, goodwill, deferred income tax assets/liabilities, short-term borrowings, accounts payable, other payables, contract liabilities, employee benefits payable, taxes payable, and owners' equity. Period-end Balances of Selected Consolidated Financial Statement Items | Item | Period-end Balance (Yuan) | | :--- | :--- | | Monetary Funds | 148,815,513.53 | | Trading Financial Assets | 30,000,000.00 | | Accounts Receivable | 278,516,906.21 | | Other Receivables | 6,995,449.37 | | Prepayments | 146,900,708.51 | | Long-Term Equity Investments | 92,198,722.03 | | Investment Properties | 327,348,000.00 | | Fixed Assets | 3,371,949.69 | | Intangible Assets | 269,786,626.74 | | Goodwill | 1,391,079,020.37 | | Short-Term Borrowings | 101,512,499.91 | | Accounts Payable | 125,597,486.36 | | Other Payables | 78,845,321.90 | | Contract Liabilities | 57,696,992.33 | | Operating Revenue | 273,317,514.42 | | Operating Cost | 279,173,656.35 | | Net Profit | -61,819,114.61 | - The bad debt provision for accounts receivable, calculated individually, amounts to **92,548,100.05 Yuan**[355](index=355&type=chunk) - The total original book value of goodwill is **2,235,166,768.36 Yuan**, with total impairment provisions of **844,087,747.99 Yuan**[477](index=477&type=chunk)[479](index=479&type=chunk) - The revenue amount corresponding to contracts signed but not yet performed or fully performed as of the end of the current period is **57,825,486.81 Yuan**[555](index=555&type=chunk) [VIII. Research and Development Expenses](index=140&type=section&id=VIII.%20Research%20and%20Development%20Expenses) During the reporting period, the company's total R&D expenses were **33.40 Million Yuan**, a year-on-year decrease of **34.35%**. R&D Expense Information | Item | Amount Incurred in Current Period (Yuan) | Amount Incurred in Prior Period (Yuan) | | :--- | :--- | :--- | | Salaries and Benefits | 27,517,090.63 | 41,200,614.33 | | Entrusted Development Fees | 1,067,102.87 | 2,888,242.46 | | Other | 4,820,754.76 | 6,791,349.10 | | Total | 33,404,948.26 | 50,880,205.89 | | Of which: Expensed R&D | 12,332,565.75 | 9,589,754.05 | | Capitalized R&D | 21,072,382.51 | 41,290,451.84 | Development Expenditure Impairment Provision | Item | Period-end Balance (Yuan) | | :--- | :--- | | Game Production | 79,070,860.79 | | Total | 79,070,860.79 | [IX. Changes in Consolidation Scope](index=141&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) The company had no business combinations under non-common control, business combinations under common control, or reverse acquisitions during the reporting period. - The company had no business combinations under non-common control during the reporting period[609](index=609&type=chunk) - The company had no business combinations under common control during the reporting period[613](index=613&type=chunk) - The company had no transactions achieving business combinations in stages through multiple transactions and obtaining control during the reporting period[613](index=613&type=chunk) - The company had no transactions or events resulting in the loss of control over subsidiaries during the reporting period[617](index=617&type=chunk) [X. Interests in Other Entities](index=145&type=section&id=X.%20Interests%20in%20Other%20Entities) The company owns multiple subsidiaries, including Kaiser (China) Shares Hong Kong Co., Ltd., Shenzhen Cool Niu Interactive Technology Co., Ltd., and Hangzhou Huanwen Technology Co., Ltd., primarily engaged in game operations, copyright operations, and technology development. - The company owns multiple subsidiaries, including Kaiser (China) Shares Hong Kong Co., Ltd., Shenzhen Cool Niu Interactive Technology Co., Ltd., and Hangzhou Huanwen Technology Co., Ltd., primarily engaged in game operations, copyright operations, and technology development[619](index=619&type=chunk)[620](index=620&type=chunk) Financial Information of Important Non-Wholly Owned Subsidiary (Hangzhou Huanwen Technology Co., Ltd.) | Indicator | Amount Incurred in Current Period (Yuan) | | :--- | :--- | | Minority Shareholding Ratio | 34.50% | | Profit or Loss Attributable to Minority Shareholders | -2,994,124.07 | | Period-end Balance of Minority Interests | 39,399,545.68 | | Operating Revenue | 1,646,429.79 | | Net Profit | -8,678,620.48 | | Total Comprehensive Income | -8,678,620.48 | | Cash Flow from Operating Activities | -518,154.71 | Summary Financial Information of Unimportant Associates | Indicator | Period-end Balance/Amount Incurred in Current Period (Yuan) | | :--- | :--- | | Total Book Value of Investments | 92,198,722.03 | | Net Profit | -7,106,873.04 | | Total Comprehensive Income | -7,106,873.04 | [XI. Government Grants](index=151&type=section&id=XI.%20Government%20Grants) During the reporting period, the amount of government grants recognized in current profit or loss was **378,045.45 Yuan**, primarily recognized through the other income account. Government Grants Recognized in Current Profit or Loss | Accounting Account | Amount Incurred in Current Period (Yuan) | Amount Incurred in Prior Period (Yuan) | | :--- | :--- | :--- | | Other Income | 378,045.45 | 135,264.61 | - The company has no government grants recognized at receivable amounts or liability items involving government grants[633](index=633&type=chunk)[634](index=634&type=chunk) [XII. Risks Related to Financial Instruments](index=152&type=section&id=XII.%20Risks%20Related%20to%20Financial%20Instruments) The company's main financial instruments include monetary funds, trading financial assets, notes receivable, accounts receivable, other receivables, other non-current financial assets, short-term borrowings, notes payable, accounts payable, and other payables. - The company's main financial instruments include monetary funds, trading financial assets, notes receivable, accounts receivable, other receivables, other non-current financial assets, short-term borrowings, notes payable, accounts payable, and other payables[635](index=635&type=chunk) - The company faces credit risk, liquidity risk, and market risk (including interest rate risk and exchange rate risk)[636](index=636&type=chunk) - The company manages risks through diversified investments, monitoring customer credit, maintaining sufficient cash and standby funds, and prudently managing interest-bearing debt[637](index=637&type=chunk)[638](index=638&type=chunk)[640](index=640&type=chunk) - As of June 30, 2025, the company's unused bank borrowing limit was **47 Million Yuan**[640](index=640&type=chunk) - As of June 30, 2025, the company's asset-liability ratio was **12.55%** (December 31, 2024: **11.54%**)[648](index=648&type=chunk) [XIII. Disclosure of Fair Value](index=157&type=section&id=XIII.%20Disclosure%20of%20Fair%20Value) This section discloses the fair value of assets and liabilities measured at fair value at period-end, including trading financial assets, other non-current financial assets, and investment properties, totaling **506.75 Million Yuan**. Period-end Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 3 Fair Value Measurement (Yuan) | Total (Yuan) | | :--- | :--- | :--- | | T

Part I [Important Notice, Table of Contents, and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) This section provides crucial disclaimers, outlines the report's structure, and defines key terms for clarity [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's board, supervisory board, and senior management guarantee the accuracy and completeness of the semi-annual report - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions[3](index=3&type=chunk) - The company's principal, chief financial officer, and head of the accounting department declare that the financial report is true, accurate, and complete[3](index=3&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) This section lists the main chapters and their starting page numbers, offering an overview of the report's structure Report Chapter Directory | Chapter | Title | Page | | :--- | :--- | :--- | | Section I | Important Notice, Table of Contents, and Definitions | 2 | | Section II | Company Profile and Key Financial Indicators | 6 | | Section III | Management Discussion and Analysis | 9 | | Section IX | Other Submitted Data | 227 | [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines key terms used throughout the report to ensure consistent understanding of its content - "The Company, Company, CECL, Joint Stock Company" refers to Anhui CECL Technology Co, Ltd[12](index=12&type=chunk) - "Reporting Period" refers to January-June 2025[12](index=12&type=chunk) - "CSRC" refers to China Securities Regulatory Commission, and "SZSE" refers to Shenzhen Stock Exchange[12](index=12&type=chunk) Part II [Company Profile and Key Financial Indicators](index=6&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides the company's basic information and a summary of its key financial performance and position [I. Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) This section details the company's fundamental information, including its stock ticker, code, listing exchange, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | CECL | | Stock Code | 002298 | | Stock Exchange | Shenzhen Stock Exchange | | Company's Chinese Name | Anhui CECL Technology Co, Ltd | | Company's Legal Representative | Wang Yu | [II. Contact Person and Contact Information](index=6&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section provides detailed contact information for the company's board secretary and securities affairs representative for investor communication Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Gan Hongliang | No. 118 Jiuhua North Road, Wuhu Area, China (Anhui) Pilot Free Trade Zone | 0553-5772627 | 0553-5772865 | ganhongliang@163.com | | Securities Affairs Representative | Gan Hongliang | No. 118 Jiuhua North Road, Wuhu Area, China (Anhui) Pilot Free Trade Zone | 0553-5772627 | 0553-5772865 | ganhongliang@163.com | [III. Other Information](index=6&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) This section confirms that the company's registered address, office address, website, and email remained unchanged during the reporting period - The company's registered address, office address, website, and email remained unchanged during the reporting period[16](index=16&type=chunk) - Information disclosure and placement locations remained unchanged during the reporting period, refer to the 2024 annual report for details[17](index=17&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=7&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section presents the company's key financial performance for the first half of 2025, showing revenue growth and a return to profitability Key Accounting Data and Financial Indicators (Current Reporting Period vs. Prior Year Period) | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 961,045,872.46 | 913,276,938.77 | 5.23% | | Net Profit Attributable to Shareholders of Listed Company | 18,555,729.51 | -333,522,702.13 | 105.56% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 8,582,458.54 | -339,859,363.29 | 102.53% | | Net Cash Flow from Operating Activities | 29,948,226.37 | -17,298,845.48 | 273.12% | | Basic Earnings Per Share | 0.0259 | -0.4650 | 105.57% | | Diluted Earnings Per Share | 0.0259 | -0.4650 | 105.57% | | Weighted Average Return on Net Assets | 0.51% | -9.72% | 10.23% | | **Period-End Indicators** | **Current Period-End (Yuan)** | **Prior Year-End (Yuan)** | **Period-End Change from Prior Year-End** | | Total Assets | 5,141,185,804.83 | 5,226,641,049.10 | -1.63% | | Net Assets Attributable to Shareholders of Listed Company | 2,040,134,865.73 | 2,018,366,345.85 | 1.08% | [V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=7&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) This section confirms no material differences in net profit and net assets between Chinese and international accounting standards for the reporting period - The company's financial reports for the reporting period show no differences in net profit and net assets when disclosed under International Accounting Standards versus Chinese Accounting Standards[20](index=20&type=chunk) - The company's financial reports for the reporting period show no differences in net profit and net assets when disclosed under overseas accounting standards versus Chinese Accounting Standards[21](index=21&type=chunk) [VI. Non-Recurring Gains and Losses and Amounts](index=7&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) This section details the company's non-recurring gains and losses for the reporting period, totaling **9.97 million Yuan** Non-Recurring Gains and Losses and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains/losses from disposal of non-current assets | 334,148.41 | | Government grants recognized in current profit or loss | 2,734,279.02 | | Gains/losses from entrusted investment or asset management | 452,473.27 | | Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 498,140.00 | | Gains/losses from debt restructuring | 8,240,000.00 | | Other non-operating income and expenses apart from the above | -833,873.89 | | Other gains/losses that meet the definition of non-recurring gains/losses | 1,073,487.64 | | Less: Income tax impact | 1,990,936.07 | | Minority interest impact (after tax) | 534,447.41 | | Total | 9,973,270.97 | Part III [Management Discussion and Analysis](index=9&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%92%8C%E5%88%86%E6%9E%90) This section provides an in-depth analysis of the company's business operations, financial performance, and future outlook [I. Main Business Activities of the Company During the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company focused on smart energy, smart new energy, and smart city sectors, achieving profitability despite challenges in smart city business [(I) Industry Overview](index=9&type=section&id=(%E4%B8%80)%20%E5%85%AC%E5%8F%B8%E6%89%80%E5%A4%84%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) The company operates in the electrical machinery and equipment manufacturing sector, benefiting from national strategies in AI, new energy, and smart cities - The company operates in the electrical machinery and equipment manufacturing industry, with three main business segments: smart energy, smart new energy, and smart city[26](index=26&type=chunk) - National policies such as the "AI+" initiative, manufacturing powerhouse strategy, new power system construction, "carbon peak and carbon neutrality" strategy, new urbanization, and "East Data West Computing" provide development opportunities for the company's three major businesses[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) - Surging demand for smart power transmission and distribution equipment in overseas countries and a shortage of production capacity create favorable "going global" opportunities for China's power transmission and distribution and control equipment manufacturing industry[28](index=28&type=chunk)[29](index=29&type=chunk) [(II) Main Operating Performance](index=10&type=section&id=(%E4%BA%8C)%20%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9%E6%83%85%E5%86%B5) The company achieved overall profitability with **79.16 million Yuan** net profit from smart energy and new energy, despite losses in smart city business - The company closely adheres to the three major business development strategies: "strengthening and expanding smart energy, stabilizing and strengthening smart city, and fully promoting new energy business development"[31](index=31&type=chunk) Smart Energy and New Energy Business Performance | Indicator | Amount (10,000 Yuan) | YoY Growth | | :--- | :--- | :--- | | Net Profit Attributable to Parent Company | 7,916.32 | 54.05% | Smart City Business Performance | Indicator | Amount (10,000 Yuan) | | :--- | :--- | | Operating Loss | 6,060.75 | Company Overall Net Profit | Indicator | Amount (10,000 Yuan) | | :--- | :--- | | Net Profit Attributable to Shareholders of Listed Company | 1,855.57 | [(III) Key Work Highlights](index=11&type=section&id=(%E4%B8%89)%20%E4%B8%BB%E8%A6%81%E9%87%8D%E7%82%B9%E5%B7%A5%E4%BD%9C%E6%83%85%E5%86%B5) The company focused on marketing, R&D, and refined management across its three business segments, securing new projects and advancing its "going global" strategy - Smart Energy Sector: Innovating marketing, R&D, and management, promoting digital, intelligent, and green low-carbon dual transformation, and seizing the national "equipment renewal" strategy[33](index=33&type=chunk) - Smart New Energy Sector: Leveraging power transmission and distribution experience and energy storage technology, expanding markets, focusing on new product R&D, and providing integrated new energy turnkey solutions[34](index=34&type=chunk) - Smart City Sector: Actively promoting the collection of payments from China Unicom's comprehensive reform cooperation, transforming market and customer structures (towards smart parks, smart factories), and strengthening product R&D and refined management[34](index=34&type=chunk)[35](index=35&type=chunk) - The company completed the disclosure of its 2024 annual report and 2025 first-quarter report, and completed the change of company name and stock abbreviation on February 28, 2025[44](index=44&type=chunk)[48](index=48&type=chunk) - Subsidiary Suzhou Switchgear No. 2 Co., Ltd. won the bid for the power distribution project in the East District of Sangtian Science Island Innovation Center in Suzhou Industrial Park, with a total contract amount of **69.56 million Yuan**[52](index=52&type=chunk) - Subsidiary Tianjin TEDA Engineering Design Co., Ltd. won the bid for the power supporting project of Tanggu Xinhu Road (Xinhe Shipyard) plot in Binhai New Area, Tianjin, with a total contract amount of **64.00 million Yuan**[53](index=53&type=chunk) - In new energy business, the company's 5.5MW distributed photovoltaic power generation project with Wuhu Zhaolian Automotive Lightweight Technology Co., Ltd. was successfully connected to the grid, signed a 24MWP distributed photovoltaic power generation project with Fengtai Industrial Park in Huainan City, Anhui Province, and signed a strategic cooperation agreement with Anhui Jinmao Smart Energy Storage Technology Co., Ltd[55](index=55&type=chunk) [(IV) Introduction to the Company's Main Business Activities During the Reporting Period](index=16&type=section&id=(%E5%9B%9B)%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%EF%BC%8C%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E4%BB%8B%E7%BB%8D%E5%A6%82%E4%B8%8B) As a national innovative enterprise, the company provides comprehensive solutions across smart energy, smart new energy, and smart city sectors - The company is a national innovative demonstration enterprise, national intellectual property demonstration enterprise, national technological innovation demonstration enterprise, national green factory, and a specialized and sophisticated "little giant" enterprise recognized by the Ministry of Industry and Information Technology[57](index=57&type=chunk) - Smart Energy Business: Provides full-chain solutions for intelligent power transmission and distribution equipment, components, and automation products, achieving "digitalization, intelligence, miniaturization, humanization" of equipment and "remote measurement, remote signaling, remote adjustment, remote control"[59](index=59&type=chunk) - Smart New Energy Business: Offers comprehensive solutions for new energy storage, energy storage system integration, photovoltaic power stations, charging piles, energy and carbon management software platforms, and energy saving and carbon reduction, with products featuring high safety, long life, high integration, and easy maintenance[61](index=61&type=chunk) - Smart City Business: Provides independently controllable core technologies, products, and comprehensive solutions for artificial intelligence, IoT, cloud computing, and big data, building a "edge, network, cloud, application" integrated ecosystem[64](index=64&type=chunk) [(V) Introduction to Main Core Technologies and Products](index=19&type=section&id=(%E4%BA%94)%20%E4%B8%BB%E8%A6%81%E6%A0%B8%E5%BF%83%E6%8A%80%E6%9C%AF%E5%92%8C%E4%BA%A7%E5%93%81%E4%BB%8B%E7%BB%8D) The company offers a range of core technologies and products in smart energy, new energy, and smart city domains, including intelligent equipment, energy storage solutions, and AI platforms - Smart Energy Business: Provides power engineering design, intelligent power transmission and distribution equipment (such as KYN28A-12(B), magnetic levitation dedicated variable frequency box-type substations), intelligent high and low voltage components (such as VAZ intelligent vacuum circuit breakers), and automation products (such as DIX800A series switchgear integrated intelligent control devices), along with installation, commissioning, and maintenance services[66](index=66&type=chunk)[67](index=67&type=chunk)[69](index=69&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk)[74](index=74&type=chunk) - Smart New Energy Sector: Main products include energy storage air-cooled/liquid-cooled outdoor cabinets, energy storage prefabricated cabins, energy storage cabin testing platforms, photovoltaic power stations (providing EPC services), and "PV-storage-charging integrated station" related technologies and products (such as 60kW-240kW DC charging piles)[76](index=76&type=chunk)[79](index=79&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk)[84](index=84&type=chunk) - Smart City Business: Possesses independent products such as cloud computing platforms, big data basic platforms, application software for government governance, video surveillance front-end products, IoT data management platforms, AI sharing capability platforms, and storage devices, and is building the DI-Edge intelligent edge product line and DI-Cloud digital cloud base, as well as digital government DAg and digital economy DAe applications[86](index=86&type=chunk)[88](index=88&type=chunk)[90](index=90&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[95](index=95&type=chunk) [(VI) Key Factors Driving Company Performance](index=27&type=section&id=(%E5%85%AD)%20%E5%85%AC%E5%8F%B8%E4%B8%9A%E7%BB%A9%E9%A9%B1%E5%8A%A8%E7%9A%84%E4%B8%BB%E8%A6%81%E5%9B%A0%E7%B4%A0) The company's performance is driven by national strategies, market demand, and policies promoting smart manufacturing, new energy, and digital economy - National "new infrastructure" and "intelligent manufacturing" strategies are accelerating, further promoting the rapid development of the company's smart energy business[97](index=97&type=chunk)[98](index=98&type=chunk) - The national release of "Guiding Opinions on Deepening Power System Reform and Accelerating the Construction of a New Power System" has brought significant development opportunities for the company's smart energy and new energy businesses[99](index=99&type=chunk) - The implementation of the "digital economy + East Data West Computing" strategy can boost the company's smart city business development[101](index=101&type=chunk)[102](index=102&type=chunk) - The accelerated implementation of a series of national new energy policies will further promote the development of new energy business, including the "carbon peak and carbon neutrality" strategic goals[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - Equipment renewal policies are becoming a core engine for global green transformation, with China's equipment renewal market expected to exceed **5 trillion Yuan** by 2030, promoting the rapid development of the company's smart energy sector[109](index=109&type=chunk) - The expansion of power infrastructure in emerging markets and the demand for renovation of aging power grids in developed countries create new opportunities for the company's "going global" strategy[112](index=112&type=chunk) - The national "information innovation" strategy and the rapid development of civil-military integration greatly enhance the brand and marketing of the company's independently controllable products, and bring significant opportunities for the development of the smart defense industry[113](index=113&type=chunk)[114](index=114&type=chunk) [(VII) Industry Position of Main Business](index=31&type=section&id=(%E4%B8%83)%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E7%9A%84%E8%A1%8C%E4%B8%9A%E5%9C%B0%E4%BD%8D) The company holds a strong industry position in smart energy, new energy, and smart city sectors, with high-quality products and extensive project experience - Smart Energy Business: The company is a member of the National Technical Committee for Standardization of Low-Voltage Switchgear and Control Equipment, with products widely used in major national projects such as the Olympic Games, high-speed rail, and airports, and exported to over 20 countries and regions[115](index=115&type=chunk)[116](index=116&type=chunk) - Smart New Energy Sector: Products are widely applied in representative enterprises such as CGN, Zhongyuan Oilfield, and COFCO Group, and the company has undertaken multiple photovoltaic power generation projects[117](index=117&type=chunk) - Smart City Business: The company is a leading provider and operator of independently controllable products, repeatedly listed among the top 100 global smart city solution providers and top 500 world IoT companies, and has undertaken multiple national key scientific and technological research projects such as "Key Technologies and Demonstrations for IoT and Smart Cities"[118](index=118&type=chunk) - Smart City Business Typical Achievements: Provided reliable products and first-class technical services for major domestic and international events such as previous Two Sessions, Beijing APEC Summit, Hangzhou G20 Summit, and Wuhan Military World Games[119](index=119&type=chunk) [II. Analysis of Core Competitiveness](index=33&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness stems from its independently controllable products, strong R&D capabilities, comprehensive qualifications, extensive industry applications, reputable brand, robust marketing, and talented team [(I) Advantage of Independently Controllable Products](index=33&type=section&id=(%E4%B8%80)%20%E8%87%AA%E4%B8%BB%E5%8F%AF%E6%8E%A7%E4%BA%A7%E5%93%81%E4%BC%98%E5%8A%BF) The company offers independently controllable products and solutions across smart energy, new energy, and smart city domains, emphasizing localization and advanced technology - Smart Energy Sector: Provides intelligent power transmission and distribution equipment, components, and automation products, achieving "digitalization, intelligence, miniaturization, humanization" and "remote measurement, remote signaling, remote adjustment, remote control," and possesses Grade A and B qualifications for architectural, power, and municipal engineering design[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk)[125](index=125&type=chunk) - Smart New Energy Sector: Achieves "source-grid-load-storage" coordinated layout, providing energy storage products (air-cooled/liquid-cooled outdoor cabinets, prefabricated cabins), energy storage cabin testing platforms, photovoltaic power stations (EPC services), and "PV-storage-charging integrated station" related technologies and products (DC charging piles)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) - Smart City Sector: Builds a "edge, network, cloud, application" integrated core technology and business ecosystem, with over **90%** of its software products being independently developed, possessing independently controllable products in cloud computing, big data, and artificial intelligence, and having core advantages in cloud storage and algorithms, achieving hardware localization and compatibility with domestic operating systems[133](index=133&type=chunk)[134](index=134&type=chunk) [(II) Technology and R&D Advantages](index=36&type=section&id=(%E4%BA%8C)%20%E6%8A%80%E6%9C%AF%E5%8F%8A%E7%A0%94%E5%8F%91%E4%BC%98%E5%8A%BF) As a national high-tech enterprise, the company boasts a national-level technology center, CMMI5 certification, and **478** valid patents, driving innovation across its business segments - The company is a national high-tech enterprise, national intellectual property demonstration enterprise, possesses a national-level enterprise technology center, provincial key laboratories, and has passed CMMI5 top-level certification[136](index=136&type=chunk) Intellectual Property Situation | Indicator | Quantity | | :--- | :--- | | Valid Patents | 478 items | | - Invention Patents | 147 items | | - Utility Model Patents | 323 items | | - Design Patents | 8 items | - Smart Energy Sector: Multiple products (such as rail transit traction power supply systems, cloud computing center pre-intelligent complete sets of equipment) have won the honorary title of Anhui Province's first major technical equipment, and the first intelligent unattended substation was successfully delivered[137](index=137&type=chunk)[141](index=141&type=chunk) - Smart City Sector: Independently developed video comprehensive management platform V2.0 has completed compatibility testing with domestic hardware and software, the XingShi Cloud platform provides powerful video device access and service capabilities, multiple products have been included in the "2020 China Brand Day Electronic Information Industry Domestic New Products Promotion Catalog," and **39** information innovation field mutual recognition certificates have been obtained[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - The company won the "2020-2021 Best Information Innovation Product Provider" award, and iChinaE Big Data Practical Application Platform V2.0 and Shouwang Tianyan products won the "Excellent Innovative Software Product Award"[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) [(III) Qualification Advantages](index=41&type=section&id=(%E4%B8%89)%20%E8%B5%84%E8%B4%A8%E4%BC%98%E5%8A%BF) The company holds "nine Grade A" qualifications, establishing a top-tier competitive barrier for industry information technology project bidding - The company possesses "nine Grade A" qualifications in the industry, establishing the most comprehensive and top-tier competitive barrier for industry information technology project bidding[156](index=156&type=chunk) - The company has been included in the FTSE Russell Global Equity Index, selected as a margin trading and short selling (two-way) target stock, is a national technological innovation demonstration enterprise, a national green factory, has obtained global software capability maturity CMMI5 top-level certification, and has obtained the "Weapon Equipment Quality Management System Certification Certificate"[156](index=156&type=chunk)[157](index=157&type=chunk) - Smart Energy Qualifications: Included in the recommended list for national economic and trade commission and national power grid construction and renovation, is a drafting unit for low-voltage switchgear standards, and has continuously received "AAA" credit rating for **14** consecutive years[158](index=158&type=chunk) - Smart New Energy Qualifications: Possesses Grade A architectural engineering design, Grade B power engineering design, and Grade III power engineering general contracting qualifications, capable of undertaking 220kV and general contracting 110kV and below new energy projects[160](index=160&type=chunk) - Smart City Qualifications: Obtained the "Information System Construction and Service Capability (CS4) Level Certificate," with multiple software and hardware products obtaining mutual recognition certificates in the information innovation field, and has won multiple industry honors[161](index=161&type=chunk) [(IV) Industry Application Advantages](index=43&type=section&id=(%E5%9B%9B)%20%E8%A1%8C%E4%B8%9A%E5%BA%94%E7%94%A8%E4%BC%98%E5%BF%83) Leveraging its "nine Grade A" qualifications and extensive market experience, the company demonstrates significant industry application advantages across its business segments - Smart Energy products are widely used in enterprises, urban water supply, power supply, water conservancy, chemical, metallurgy, pharmaceutical, financial, and other industries, and have been successfully applied in national large-scale projects such as Beijing Olympic venues, high-speed rail lines, and airports[163](index=163&type=chunk) - Smart New Energy products are applied in peak shaving and valley filling, electricity cost saving, virtual power plant dispatching, and have been used in representative enterprises such as CGN, Zhongyuan Oilfield, and COFCO Group[164](index=164&type=chunk) - Smart City products and solutions have served over **200 million** people nationwide, with hundreds of successful implementations, and the company is one of the industry's enterprises undertaking single projects worth over **100 million Yuan**, such as the Guizhou Liupanshui City Skynet Project general integration project[165](index=165&type=chunk) - Smart City business provides services for major conferences and events such as previous Two Sessions, Beijing APEC Summit, and Hangzhou G20 Summit, and has rich experience in vertical application fields such as smart parks, smart emergency response, smart transportation, and smart defense[166](index=166&type=chunk) [(V) Brand and Quality Advantages](index=45&type=section&id=(%E4%BA%94)%20%E5%93%81%E7%89%8C%E5%8F%8A%E8%B4%A8%E9%87%8F%E4%BC%98%E5%8A%BF) The company prioritizes brand building and quality management, with its "CECL" brand recognized as a "China Famous Trademark" and products receiving "National Inspection-Free" certification - Smart Energy Sector: The "CECL" brand has won "China Famous Trademark" and "Anhui Province Famous Brand Product" honors, products have received "National Inspection-Free Product Quality" certificates, and the company has obtained authorization certificates from Schneider, ABB, Siemens, and others[168](index=168&type=chunk) - Smart New Energy Sector: Obtained AAA credit rating from China Association of Construction Enterprise Management and AA credit rating from China Power Survey and Design Association, and passed ISO9001, ISO14001, and ISO45001 management system certifications[169](index=169&type=chunk) - Smart City Sector: Won honors such as "China Information Technology Service Excellent Brand Outstanding Enterprise" and "Special Award for Innovative Products in Full Intelligent Anti-Terrorism Robot Series," and ensures product quality through strict quality management and process control, enhancing brand image and influence[170](index=170&type=chunk)[171](index=171&type=chunk) [(VI) Marketing and Service Advantages](index=46&type=section&id=(%E5%85%AD)%20%E5%B8%82%E5%9C%BA%E8%90%A5%E9%94%80%E5%8F%8A%E6%9C%8D%E5%8A%A1%E4%BC%98%E5%8A%BF) The company has established a nationwide marketing and service network, providing comprehensive, high-quality services with a focus on customer satisfaction - The company has established a nationwide marketing and service network, providing comprehensive, high-quality services that are "time-saving, labor-saving, money-saving, and worry-free"[173](index=173&type=chunk) - Smart Energy products are widely used in national large-scale projects, receiving service commendation letters from the Beijing Olympic Organizing Committee, CCTV, and numerous other clients[174](index=174&type=chunk) - Smart New Energy Sector: Committed to providing customers with integrated turnkey solutions for energy storage, photovoltaic, and PV-storage-charging new energy, serving multiple energy storage power station projects for China Huaneng, China Electric Power Research Institute, and others[175](index=175&type=chunk)[176](index=176&type=chunk) - Smart City Sector: Products and solutions have served over **200 million** people nationwide, with hundreds of successful implementations, and multiple **100 million Yuan** projects have received high recognition and letters of appreciation from clients, such as the Guizhou Smart Hezhang Project and Anhui Wuhu Xueliang Project[177](index=177&type=chunk) [(VII) Talent Team Advantages](index=47&type=section&id=(%E4%B8%83)%20%E4%BA%BA%E6%89%8D%E5%9B%A2%E9%98%9F%E4%BC%98%E5%8A%BF) The company adheres to a talent-centric strategy, focusing on attracting, developing, and retaining talent, and collaborates with leading universities and global electrical enterprises - The company adheres to a talent strategy of "people-oriented, virtue-first, talent-utilized" and "based on strivers," focusing on talent acquisition and development[178](index=178&type=chunk) - The company has established long-term cooperative relationships with prestigious universities and research institutes such as Tsinghua University, University of Science and Technology of China, and University of Electronic Science and Technology of China, and has formed technical and business partnerships with world-renowned electrical enterprise groups such as Schneider, Siemens, ABB, and GE[178](index=178&type=chunk) [III. Main Business Analysis](index=47&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%88%86%E6%9E%90) The company's main business revenue increased by **5.23%** to **961.05 million Yuan**, driven by electrical machinery manufacturing, while net profit turned positive Major Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 961,045,872.46 | 913,276,938.77 | 5.23% | | | Operating Cost | 734,929,349.91 | 673,550,472.14 | 9.11% | | | Selling Expenses | 65,256,441.55 | 75,436,422.38 | -13.49% | | | Administrative Expenses | 66,793,561.15 | 77,488,100.72 | -13.80% | | | Financial Expenses | 10,519,134.47 | 14,749,130.78 | -28.68% | | | Income Tax Expense | 20,361,150.82 | -36,897,832.28 | 155.18% | Due to profit growth in current period | | R&D Investment | 25,989,596.70 | 32,344,138.71 | -19.65% | | | Net Cash Flow from Operating Activities | 29,948,226.37 | -17,298,845.48 | 273.12% | Strengthened sales collection, expense control | | Net Cash Flow from Investing Activities | 41,881,208.60 | -27,809,914.59 | 250.60% | Increased cash collection from Unicom mixed-ownership reform asset disposal | | Net Cash Flow from Financing Activities | -49,635,019.53 | -19,745,968.10 | -151.37% | Repayment of some bank loans | | Net Increase in Cash and Cash Equivalents | 22,194,415.44 | -64,854,728.17 | 134.22% | Increase in cash flow from operating and investing activities | Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Current Reporting Period Amount (Yuan) | Proportion of Operating Revenue | Prior Year Period Amount (Yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | Electrical Machinery and Equipment Manufacturing | 887,273,684.45 | 92.32% | 823,273,749.76 | 90.15% | 7.77% | | | Software and Information Technology Services | 73,772,188.01 | 7.68% | 90,003,189.01 | 9.85% | -18.03% | | **By Product** | Intelligent Power Transmission and Distribution Equipment, New Energy, Components, Automation, and Power Design | 865,259,119.53 | 90.03% | 805,885,025.27 | 88.24% | 7.37% | | | Independently Controllable Smart City Solutions and Operation Services | 73,750,949.07 | 7.67% | 83,861,890.31 | 9.18% | -12.06% | | **By Region** | North China | 394,691,637.76 | 41.07% | 194,589,872.42 | 21.31% | 102.83% | | | East China | 282,199,058.36 | 29.36% | 423,667,823.08 | 46.39% | -33.39% | Main Business Gross Profit Margin Changes | Category | Item | Gross Profit Margin (Current Reporting Period) | Gross Profit Margin (Prior Year Period) | Gross Profit Margin Change from Prior Year Period | | :--- | :--- | :--- | :--- | :--- | | **By Industry** | Electrical Machinery and Equipment Manufacturing | 22.51% | 26.81% | -4.30% | | | Software and Information Technology Services | 35.77% | 21.14% | 14.63% | | **By Product** | Intelligent Power Transmission and Distribution Equipment, New Energy, Components, Automation, and Power Design | 21.82% | 26.51% | -4.69% | | | Independently Controllable Smart City Solutions and Operation Services | 35.90% | 21.14% | 15.80% | | **By Region** | North China | 10.76% | 5.80% | 4.96% | | | East China | 42.02% | 37.64% | 4.38% | [IV. Non-Main Business Analysis](index=49&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%88%86%E6%9E%90) Non-main business activities significantly impacted total profit, with investment income from debt restructuring and asset impairment from bad debt provisions Impact of Non-Main Business on Total Profit | Item | Amount (Yuan) | Proportion of Total Profit | Explanation of Cause | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 9,804,591.48 | 16.80% | Primarily due to debt restructuring gains in the current period | No | | Asset Impairment | -7,911,152.70 | -13.55% | Primarily due to provision for bad debts on accounts receivable in the current period | No | | Non-Operating Income | 253,861.17 | 0.43% | | No | | Non-Operating Expenses | 1,100,305.30 | 1.89% | | No | [V. Analysis of Assets and Liabilities](index=50&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, total assets decreased by **1.63%** to **5.14 billion Yuan**, while total liabilities decreased by **4.05%** to **2.99 billion Yuan** Significant Changes in Asset Composition | Item | Current Period-End Amount (Yuan) | Proportion of Total Assets | Prior Year-End Amount (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 447,517,853.12 | 8.70% | 429,905,350.81 | 8.23% | 0.47% | | | Accounts Receivable | 1,064,122,124.83 | 20.70% | 1,160,327,689.45 | 22.20% | -1.50% | | | Contract Assets | 544,309,663.25 | 10.59% | 506,636,703.71 | 9.69% | 0.90% | | | Inventories | 514,680,556.70 | 10.01% | 515,019,045.12 | 9.85% | 0.16% | | | Construction in Progress | 3,033,040.99 | 0.06% | 2,306,253.72 | 0.04% | 0.02% | Primarily due to increased property renovation expenses in the current period | | Short-term Borrowings | 538,697,450.31 | 10.48% | 597,873,028.95 | 11.44% | -0.96% | Primarily due to the company repaying some bank loans to improve capital utilization efficiency and reduce financial expenses in the current period | | Contract Liabilities | 233,447,620.18 | 4.54% | 183,605,136.06 | 3.51% | 1.03% | Primarily due to increased advance receipts for goods in the current period | | Lease Liabilities | 6,576,634.16 | 0.13% | 4,823,202.30 | 0.09% | 0.04% | Primarily due to increased renewal of property lease contracts in the current period | Asset Rights Restricted as of the End of the Reporting Period | Item | Book Balance (Yuan) | Book Value (Yuan) | Type of Restriction | Restricted Situation | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 43,963,097.11 | 43,963,097.11 | Frozen | Bill deposits, letter of guarantee deposits, court frozen funds, etc | | Notes Receivable | 36,861,840.46 | 36,861,840.46 | Endorsed or discounted but not yet due | Endorsed or discounted but not yet due | | Fixed Assets | 71,271,491.14 | 26,792,649.83 | Mortgage | Mortgage loans | | Total | 152,096,428.71 | 107,617,587.40 | | | [VI. Investment Status Analysis](index=51&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company's investment amount for the reporting period was **1 million Yuan**, with no significant equity, non-equity, securities, or derivative investments Reporting Period Investment Amount | Reporting Period Investment Amount (Yuan) | Prior Year Period Investment Amount (Yuan) | Change Rate | | :--- | :--- | :--- | | 1,000,000.00 | 0.00 | 0.00% | - The company had no securities investments, derivative investments, or use of raised funds during the reporting period[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk) [VII. Disposal of Major Assets and Equity](index=51&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) This section confirms that the company did not dispose of any major assets or equity during the reporting period - The company did not dispose of major assets during the reporting period[195](index=195&type=chunk) - The company did not dispose of major equity during the reporting period[196](index=196&type=chunk) [VIII. Analysis of Major Holding and Participating Companies](index=52&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This section presents the financial data of key subsidiaries, Beijing CECL Xingfa Technology Co., Ltd. and Suzhou Switchgear No. 2 Co., Ltd Major Subsidiary Financial Data | Company Name | Company Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing CECL Xingfa Technology Co., Ltd. | Subsidiary | Smart City, Public Safety, Anti-Terrorism and Stability Maintenance | 1,334,751,408.91 | 2,070,645,837.75 | -182,146,806.38 | 73,772,188.01 | -59,605,413.38 | -60,053,522.86 | | Suzhou Switchgear No. 2 Co., Ltd. | Subsidiary | Manufacturing, Processing: High and Low Voltage Complete Sets of Devices, Power Transmission and Distribution Equipment, etc | 52,000,000.00 | 826,172,901.93 | 508,318,834.93 | 160,754,939.78 | 67,388,539.96 | 55,877,808.86 | - There were no acquisitions or disposals of subsidiaries during the reporting period[198](index=198&type=chunk) [IX. Structured Entities Controlled by the Company](index=52&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) This section states that the company had no controlled structured entities during the reporting period - The company had no controlled structured entities during the reporting period[199](index=199&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=52&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces risks from policy changes, customer payment issues, technological updates, and management challenges, addressed by strategic planning and internal controls - The company faces risks from policy and industry cycle changes, with smart city business orders significantly affected by national policies and industry cycle changes[199](index=199&type=chunk) - Risk of declining payment ability from some customers, leading to difficulties in collecting accounts receivable for smart city business[200](index=200&type=chunk) - Project and technology iteration risks, as smart city project implementation is complex and technology develops rapidly, potentially leading to a decline in market competitiveness[201](index=201&type=chunk) - Management risks associated with scale expansion, which places higher demands on operational management, product R&D, technical support, project organization, and human resource development[202](index=202&type=chunk) - Countermeasures include strengthening industry research, product technology upgrades, market expansion, accounts receivable management, refined project management, improving internal control systems, and human resource development[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk) [XI. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=53&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has established a market value management system and plans to enhance its investment value through various strategies, including M&A, equity incentives, and investor relations - The company has formulated a market value management system[203](index=203&type=chunk) - The company plans to promote the reasonable reflection of its investment value through M&A, equity incentives, employee stock ownership plans, cash dividends, investor relations management, information disclosure, and share repurchases[203](index=203&type=chunk) [XII. Implementation of "Quality and Return Dual Improvement" Action Plan](index=53&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E2%80%9C%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%E2%80%9D%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) This section states that the company has not disclosed an announcement regarding its "Quality and Return Dual Improvement" action plan - The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan[204](index=204&type=chunk) Part IV [Corporate Governance, Environment, and Society](index=54&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) This section covers the company's governance structure, environmental practices, and social responsibility initiatives [I. Changes in Directors, Supervisors, and Senior Management of the Company](index=54&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) This section confirms 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[206](index=206&type=chunk) [II. Profit Distribution and Capital Reserve to Share Capital Conversion During the Reporting Period](index=54&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) This section states the company's plan 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[207](index=207&type=chunk) [III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=54&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) This section confirms that the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[208](index=208&type=chunk) [IV. Environmental Information Disclosure](index=54&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) This section states that the listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[209](index=209&type=chunk) [V. Social Responsibility](index=54&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company actively fulfills its social responsibilities by prioritizing green development, environmental protection, and energy conservation, while also engaging in public welfare initiatives [(I) Protection of Shareholder Rights and Interests](index=54&type=section&id=(%E4%B8%80)%20%E8%82%A1%E4%B8%9C%E6%9D%83%E7%9B%8A%E4%BF%9D%E6%8A%A4) The company safeguards shareholder rights through robust governance, internal controls, technological innovation, and transparent investor relations - The company strictly adheres to laws, regulations, and its Articles of Association, continuously optimizing its "three meetings and one layer" corporate governance structure to ensure legal, compliant, and efficient operations[210](index=210&type=chunk) - The company adheres to the "independently controllable, domestic substitution" technology R&D roadmap, following the strategic plan of "producing one generation, researching one generation, planning one generation," continuously building "product factories" and "innovation factories"[211](index=211&type=chunk) - The company has established a comprehensive shareholder return plan and actively implements dividend policies, safeguarding the legitimate rights and interests of all shareholders[212](index=212&type=chunk)[213](index=213&type=chunk) - The company strengthens investor relations management through diversified communication platforms (such as online performance briefings, interactive platforms) and timely, accurate, and complete information disclosure, enhancing corporate transparency and integrity[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk) - The company highly values brand building, having won multiple brand honors, and enhances corporate reputation and internal management through Party building leadership and integrity construction[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) [(II) Protection of Employee Rights and Interests](index=57&type=section&id=(%E4%BA%8C)%20%E5%91%98%E5%B7%A5%E6%9D%83%E7%9B%8A%E4%BF%9D%E6%8A%A4) The company prioritizes employee welfare through a "people-oriented" talent strategy, ensuring legal compliance, safety, and a supportive work environment - The company adheres to a talent strategy of "people-oriented, virtue-first, talent-utilized," focusing on talent selection, development, utilization, and retention, ensuring employees' rights to know, participate, express, and supervise company management[221](index=221&type=chunk) - The company strictly enforces labor laws and regulations, provides "five insurances and one fund" for employees, conducts regular safety and environmental protection education and training, distributes labor protection supplies, organizes health examinations, and enriches employees' cultural lives[221](index=221&type=chunk) - The company implements the safety production policy of "safety first, prevention foremost, comprehensive governance," establishes and improves a sound safety responsibility system, and protects employee rights through union management systems and employee satisfaction surveys[222](index=222&type=chunk)[223](index=223&type=chunk) [(III) Protection of Customer and Supplier Rights and Interests](index=58&type=section&id=(%E4%B8%89)%20%E5%AE%A2%E6%88%B7%E3%80%81%E4%BE%9B%E5%BA%94%E5%95%86%E6%9D%83%E7%9B%8A%E4%BF%9D%E6%8A%A4) The company protects customer and supplier rights through robust internal controls, fair evaluation systems, and a commitment to quality and integrity - The company establishes and improves internal audit systems, procurement management systems, etc., to prevent commercial bribery and unfair transactions, protecting the legitimate rights and interests of suppliers and customers[224](index=224&type=chunk) - Customer Rights Protection: Through multi-dimensional information collection, the company provides "high-quality products, high-quality services, and high-quality commitments," continuously creating value for customers with a philosophy of safety first, integrity as the root, and quality as the priority[224](index=224&type=chunk) - Supplier Rights Protection: Adhering to the concept of co-creation and win-win, the company establishes a fair evaluation system, strengthens cooperation with strategic suppliers, practices green procurement, ethical procurement, and responsible procurement, and applies advanced supplier management systems to jointly build an open, transparent, and mutually beneficial integrity ecosystem[225](index=225&type=chunk) [(IV) Environmental Protection and Sustainable Development](index=58&type=section&id=(%E5%9B%9B)%20%E7%8E%AF%E5%A2%83%E4%BF%9D%E6%8A%A4%E4%B8%8E%E5%8F%AF%E6%8C%81%E7%BB%AD%E5%8F%91%E5%B1%95) As a national green factory, the company integrates green and low-carbon principles throughout its operations, leveraging technology to promote sustainable development - As a national green factory, the company strictly implements environmental protection policies, practices sustainable development, and integrates green and low-carbon concepts throughout its daily production processes, achieving full lifecycle digital and intelligent management[226](index=226&type=chunk)[227](index=227&type=chunk) - Smart Energy Sector: Deeply applies internet, big data, and artificial intelligence technologies to build a clean and low-carbon energy system, achieving "four transformations" and "four remote controls" for equipment[227](index=227&type=chunk) - Smart New Energy Sector: Provides integrated turnkey solutions for energy storage, photovoltaic, and PV-storage-charging new energy, assisting in peak shaving and valley filling, energy saving and carbon reduction, and promoting the green upgrade of the energy structure[227](index=227&type=chunk) - Smart City Sector: Gradually promotes low-energy hardware equipment architecture to replace high-energy architecture, reducing data center energy consumption, and provides carbon emission monitoring and sensing products such as smart environmental protection, smart ecological, and smart safety supervision systems[228](index=228&type=chunk) [(V) Practicing Public Welfare and Empowering Society](index=59&type=section&id=(%E4%BA%94)%20%E8%B7%B5%E8%A1%8C%E5%85%AC%E7%9B%8A%EF%BC%8C%E8%B5%8B%E8%83%BD%E7%A4%BE%E4%BC%9A) The company actively engages in social welfare through various initiatives, including disaster relief, education support, employment, and community service - The company actively participates in social welfare activities, promoting social public welfare spirit through various forms such as donations for disaster relief, educational funding, establishing special funds, re-employing laid-off workers, assisting in poverty alleviation, donating to the Red Cross, and participating in "Warm the People's Hearts" initiatives[229](index=229&type=chunk) - The company encourages Party members to report to neighborhood committee Party branches and participate in community volunteer services as a vehicle for cultivating community volunteer service projects[229](index=229&type=chunk) - The company actively responds to national and government calls, liaising with blood donation centers and blood banks annually to encourage employees to participate in voluntary blood donation[229](index=229&type=chunk) Part V [Important Matters](index=61&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section details significant events, including commitments, related party transactions, litigation, and other material disclosures [I. Commitments Fulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period and Overdue Unfulfilled Commitments as of the End of the Reporting Period](index=61&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) All commitments by the actual controllers, shareholders, and the company, including those on avoiding competition, related party transactions, and profit distribution, were fulfilled as of the reporting period - Actual controller Qu Honggui committed to avoiding horizontal competition, not directly or indirectly owning, managing, controlling, investing in, or engaging in businesses or projects identical to or competing with CECL[233](index=233&type=chunk) - Actual controller Qu Honggui committed to minimizing or reducing related party transactions with the listed company and its branches and subsidiaries, and for unavoidable related party transactions, to adhere to principles of fairness, impartiality, and equivalent compensation[233](index=233&type=chunk)[234](index=234&type=chunk) - Senior executives Shu Longsheng, Wang Yu, Yan Tao, and Tao Liming committed that the company shares transferred annually during their tenure would not exceed **25%** of their total holdings[234](index=234&type=chunk) - The company committed that the cumulative profit distributed in cash over the next three years (2024-2026) will not be less than **30%** of the average distributable profit achieved in those three years[234](index=234&type=chunk) - All commitments have been fulfilled on time, with no overdue unfulfilled commitments[234](index=234&type=chunk) [II. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties of the Listed Company](index=63&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) This section states that there were no non-operating funds occupied by controlling shareholders or other related parties of the listed company during the reporting period - There were no non-operating funds occupied by controlling shareholders or other related parties of the listed company during the reporting period[236](index=236&type=chunk) [III. Irregular External Guarantees](index=63&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) This section confirms that the company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[237](index=237&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=63&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) This section states that the company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[238](index=238&type=chunk) [V. Explanation by the Board of Directors and Supervisory Board on the Accounting Firm's "Non-Standard Audit Report" for the Current Reporting Period](index=63&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9A%84%E8%AF%B4%E6%98%8E) This section states that it is not applicable as there was no non-standard audit report for the current reporting period - Not applicable[239](index=239&type=chunk) [VI. Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year](index=63&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) This section states that it is not applicable as there was no non-standard audit report for the previous year - Not applicable[239](index=239&type=chunk) [VII. Matters Related to Bankruptcy and Reorganization](index=63&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) This section confirms that the company had no bankruptcy or reorganization related matters during the reporting period - The company had no bankruptcy or reorganization related matters during the reporting period[239](index=239&type=chunk) [VIII. Litigation Matters](index=63&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) This section discloses significant pending litigation and arbitration cases involving the company and its subsidiaries, with claims ranging from hundreds of thousands to hundreds of millions of Yuan - The company had no major litigation or arbitration matters during the reporting period[240](index=240&type=chunk) Major Pending Litigation and Arbitration Matters | Plaintiff | Defendant | Cause of Action | Claim Amount (Yuan) | Case Progress | | :--- | :--- | :--- | :--- | :--- | | Tianjin TEDA Engineering Design Co., Ltd. | Tianjin Huanou New Energy Technology Co., Ltd. | EPC General Contracting Contract Dispute for Engineering Project | 10,121,770.35 | First-instance judgment ordered defendant to pay engineering fees, defendant has appealed | | Suzhou Switchgear No. 2 Co., Ltd. | Suzhou Zhongrun Lifeng Real Estate Co., Ltd. | Sales Contract Dispute | 438,334.96 | Defendant in bankruptcy proceedings | | Jiangsu Xingxia Construction Engineering Group Co., Ltd. | Suzhou Switchgear No. 2 Co., Ltd. | Sales Contract Dispute | 11,000,000.00 | In arbitration proceedings | | Suzhou Tianping Installation Engineering Co., Ltd. | Changshu City Transportation Industry Investment Group Co., Ltd., Yuteng Construction Group Co., Ltd. | Construction Project Contract Dispute | 106,243,184.81 | In litigation proceedings, Tianping Installation is the lead, Suzhou Switchgear No. 2 and Tianping Installation account for approximately 65% | | Beijing CECL Xingfa Technology Co., Ltd. | Client 3 | Lease Contract Dispute | 263,117,003.40 | Hearing held, awaiting judgment | | Xiayi County Natural Resources Bureau | Beijing CECL Xingfa Technology Co., Ltd. | Procurement Contract Dispute | 22,780,000.00 | Hearing held, awaiting judgment | [IX. Penalties and Rectification](index=64&type=section&id=%E4%B9%9D%E3%80%81%E5%88%9A%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) This section states that the company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[241](index=241&type=chunk) [X. Integrity Status of the Company and its Controlling Shareholders and Actual Controllers](index=64&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) This section states that it is not applicable, as the company and its controlling shareholders and actual controllers maintain good integrity - Not applicable[242](index=242&type=chunk) [XI. Major Related Party Transactions](index=64&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) This section confirms that the company had no significant related party transactions during the reporting period, including those related to daily operations, asset/equity acquisition/disposal, joint external investments, or related party creditor/debtor relationships - The company had no related party transactions related to daily operations during the reporting period[242](index=242&type=chunk) - The company had no related party transactions involving asset or equity acquisition or disposal during the reporting period[243](index=243&type=chunk) - The company had no related party creditor-debtor relationships during the reporting period[245](index=245&type=chunk) - The company had no other major related party transactions during the reporting period[248](index=248&type=chunk) [XII. Major Contracts and Their Performance](index=65&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) This section confirms no entrustment, contracting, leasing, or wealth management activities, but details significant guarantees for subsidiaries, totaling **472.13 million Yuan** - The company had no entrustment, contracting, leasing matters, or entrusted wealth management during the reporting period[249](index=249&type=chunk)[250](index=250&type=chunk)[251](index=251&type=chunk)[257](index=257&type=chunk) Company Guarantees for Subsidiaries | Guarantor Name | Guarantee Limit (10,000 Yuan) | Actual Guarantee Amount (10,000 Yuan) | Guarantee Type | Guarantee Period | Fulfilled | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Anhui CECL Automation Co., Ltd. | 10,000 | 800 | General Guarantee | 3 years | No | Yes | | Beijing CECL Xingfa Technology Co., Ltd. | 55,000 | 1,387 | General Guarantee | 1 year | No | Yes | | Anhui Senyuan Electric Appliance Co., Ltd. | 20,000 | 1,200 | General Guarantee | 1 year | No | Yes | | Anhui Beichen Energy Engineering Technology Co., Ltd. | 5,000 | 800 | General Guarantee | 3 years | No | Yes | Subsidiary Guarantees for Subsidiaries | Guarantor Name | Guar

[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Item%201.%20Important%20Notice%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides crucial disclaimers, the report's structural overview, and definitions of key terms used throughout the document [Important Notice](index=2&type=section&id=Important%20Notice) The company's board and management guarantee the report's accuracy, while acknowledging negative financial performance in 2024 and a disclaimer of opinion, triggering delisting risk warnings - The company's **2024 annual operating revenue was 291.291 million yuan**, with **288.2253 million yuan after deductions**, **net profit attributable to shareholders was -46.1147 million yuan**, and **net profit after deducting non-recurring gains and losses was -58.3677 million yuan**[3](index=3&type=chunk) - Rongcheng Certified Public Accountants issued a **disclaimer of opinion on the company's 2024 financial report**, leading to the **implementation of delisting risk warnings** for the company's stock trading[3](index=3&type=chunk) - The company's **2025 semi-annual operating revenue was 23.4762 million yuan**, with **22.3237 million yuan after deductions**[4](index=4&type=chunk) - If the company's 2025 audited total profit, net profit, or net profit after deducting non-recurring gains and losses is negative (whichever is lower), and the operating revenue after deductions is **below 300 million yuan**, the company's shares will be terminated from listing[5](index=5&type=chunk)[11](index=11&type=chunk) - The company plans **not to distribute cash dividends, bonus shares, or convert capital reserves into share capital**[12](index=12&type=chunk) [Table of Contents](index=5&type=section&id=Table%20of%20Contents) This report's directory clearly outlines 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, along with a list of reference documents - The report comprises **nine main chapters**, ranging from important notices to financial reports and a list of reference documents[14](index=14&type=chunk)[15](index=15&type=chunk) [Definitions](index=7&type=section&id=Definitions) This section defines common terms used in the report, including company names, regulatory bodies, communication technologies, information technology, audio-visual, multi-mode integrated tablet terminals, metal materials, and the reporting period, ensuring reader comprehension - Definitions cover the company, regulatory bodies, communication technologies (LTE, 3G), informatization, audio-visual, multi-mode integrated tablet terminals, and terminals[18](index=18&type=chunk) - Metal product terms include Wuxi Donghexin, Tianjin Donghexin, Dongtai Donghexin, Shanghai Donghexin, Dajiang Metal, Shanghai Tianji, Wuxi Lianghong, hot-rolled coil, cold-rolled hard coil, substrate, tinplate, and chrome-plated coil[18](index=18&type=chunk) - The **reporting period is defined as January 1, 2025, to June 30, 2025**[18](index=18&type=chunk) [Company Profile and Key Financial Indicators](index=8&type=section&id=Item%202.%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company's basic information, contact details, and a summary of its key accounting data and financial indicators for the reporting period [I. Company Profile](index=8&type=section&id=I.%20Company%20Profile) The company, known as *ST Allwin Telecom, stock code 002231, is listed on the Shenzhen Stock Exchange, with Du Fang as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | *ST Allwin Telecom | | Stock Code | 002231 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Allwin Telecom Co., Ltd. | | Legal Representative | Du Fang | [II. Contact Persons and Information](index=8&type=section&id=II.%20Contact%20Persons%20and%20Information) The company's Board Secretary is Bai Lihai, with Liu Dacheng and Bi Ying as Securities Affairs Representatives, all reachable at Shenyang Hunnan New District, Gaoge Road No. 6, via phone 024-83782200 or email bailihai@allwintelecom.com Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Bai Lihai | No. 6 Gaoge Road, Hunnan New District, Shenyang | 024-83782200 | 024-83782200 | bailihai@allwintelecom.com | | Securities Affairs Representative | Liu Dacheng, Bi Ying | No. 6 Gaoge Road, Hunnan New District, Shenyang | 024-83782200 | 024-83782200 | bailihai@allwintelecom.com | [III. Other Information](index=8&type=section&id=III.%20Other%20Information) During the reporting period, there were no changes to the company's registered address, office address, website, email, information disclosure platforms, or semi-annual report availability, with details available in the 2024 annual report - The company's registered address, office address, website, and email remained **unchanged** during the reporting period[22](index=22&type=chunk) - Information disclosure and storage locations remained **unchanged** during the reporting period[23](index=23&type=chunk) - Other relevant information saw **no changes** during the reporting period[24](index=24&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=8&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company's key financial indicators for the first half of 2025 significantly declined year-on-year, with operating revenue down 88.81%, net profit attributable to shareholders down 1437.32%, and weighted average return on net assets worsening by 37.74 percentage points Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (yuan) | Prior Period (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 23,476,179.49 | 209,743,208.11 | -88.81% | | Net Profit Attributable to Shareholders | -89,066,868.76 | -5,793,644.33 | -1,437.32% | | Net Profit Attributable to Shareholders After Deducting Non-Recurring Gains and Losses | -75,749,424.24 | -11,897,593.98 | -536.68% | | Net Cash Flow from Operating Activities | -47,761,463.38 | -81,662,967.40 | 41.51% | | Basic Earnings Per Share (yuan/share) | -0.2568 | -0.0167 | -1,437.72% | | Diluted Earnings Per Share (yuan/share) | -0.2568 | -0.0167 | -1,437.72% | | Weighted Average Return on Net Assets | -39.59% | -1.85% | -37.74% | | Indicator | Current Period End (yuan) | Prior Year End (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Total Assets | 366,166,713.18 | 512,559,807.82 | -28.56% | | Net Assets Attributable to Shareholders | 180,454,515.82 | 269,521,384.58 | -33.05% | [V. Differences in Accounting Data Under Domestic and International Accounting Standards](index=9&type=section&id=V.%20Differences%20in%20Accounting%20Data%20Under%20Domestic%20and%20International%20Accounting%20Standards) During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under international or overseas accounting standards and those prepared under Chinese accounting standards - During the reporting period, the company reported **no differences in net profit and net assets** between financial statements disclosed under international accounting standards and Chinese accounting standards[26](index=26&type=chunk) - During the reporting period, the company reported **no differences in net profit and net assets** between financial statements disclosed under overseas accounting standards and Chinese accounting standards[27](index=27&type=chunk) [VI. Non-Recurring Gains and Losses and Amounts](index=9&type=section&id=VI.%20Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) The company's total non-recurring gains and losses for the reporting period amounted to -13.31744452 million yuan, primarily influenced by non-current asset disposal losses, government subsidies, capital occupation fees, and a significant increase in non-operating expenses due to the illegal disposal of inventory Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | Explanation | | :--- | :--- | :--- | | Gains/losses on disposal of non-current assets | -101,977.99 | | | Government subsidies recognized in current profit/loss | 10,000.00 | | | Capital occupation fees received from non-financial enterprises recognized in current profit/loss | 3,530,203.94 | | | Other non-operating income and expenses apart from the above | -24,272,341.78 | Due to illegal disposal of inventory stored at entrusted processor Dajiang Metal during the reporting period | | Impact on minority interests (after tax) | -7,516,671.31 | | | Total | -13,317,444.52 | | - The company has **no other profit or loss items that meet the definition of non-recurring gains and losses**, nor does it classify non-recurring gains and losses as recurring items[30](index=30&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=Item%203.%20Management%20Discussion%20and%20Analysis) This section analyzes the company's primary business operations, core competencies, financial performance, non-operating activities, asset and liability status, investment activities, and the risks and countermeasures it faces [I. Principal Businesses Engaged in by the Company During the Reporting Period](index=11&type=section&id=I.%20Principal%20Businesses%20Engaged%20in%20by%20the%20Company%20During%20the%20Reporting%20Period) The company primarily operates in communication equipment manufacturing and metal products, with the former benefiting from defense spending and digitalization, and the latter facing innovation challenges in high-end, low-carbon, and intelligent manufacturing [1. Industry Development Status](index=11&type=section&id=1.%20Industry%20Development%20Status) The communication equipment manufacturing industry is driven by national digital economy plans and steady growth in defense spending, while the metal products industry, despite revenue and profit growth, faces innovation challenges in technology, green practices, and intelligent manufacturing - The communication equipment manufacturing industry benefits from the "14th Five-Year Plan" for digital economy development and increased defense spending, with **defense expenditure growing by 7.2% in 2025**, indicating **broad prospects for military communication equipment**[32](index=32&type=chunk) - The metal products industry saw **operating revenue grow by 1.9%** and **total profit grow by 7%** from January to June 2025, but industry competition has shifted towards "technology + green + scenario" innovation[33](index=33&type%3Dchunk) [2. Main Business, Products, or Services](index=11&type=section&id=2.%20Main%20Business%2C%20Products%2C%20or%20Services) The company's communication equipment business offers audio-visual systems, domestically controlled equipment, and specialized network devices for defense, while its metal products business, through Wuxi Donghexin, produces tinplate, cold-rolled hard coils, and substrates for metal packaging - Communication equipment manufacturing primarily offers **audio-visual systems, domestically controlled equipment, individual soldier informatization equipment, and private network mobile broadband devices**, providing solutions for audio-visual command, wireless broadband systems, and smart camps, with a focus on **defense applications**[34](index=34&type=chunk)[35](index=35&type=chunk) - The metal products business, primarily through Wuxi Donghexin, produces **tinplate, cold-rolled hard coils, and substrates**, used in metal packaging containers for food, beverages, and chemicals[36](index=36&type=chunk) [3. Main Business Model](index=12&type=section&id=3.%20Main%20Business%20Model) The communication equipment manufacturing segment primarily operates on a bid-and-tender basis, producing customized products based on sales orders with strict procurement, while the metal products segment sells processed products to can manufacturing and packaging enterprises - The communication equipment manufacturing segment largely adopts a **bid-and-tender model**, producing **customized products based on sales orders**, with a well-developed procurement management and control system[37](index=37&type=chunk) - The metal products segment primarily sells processed products such as **tinplate, cold-rolled hard coils, and substrates** to downstream can manufacturing, packaging enterprises, and their suppliers[38](index=38&type=chunk) [II. Analysis of Core Competencies](index=12&type=section&id=II.%20Analysis%20of%20Core%20Competencies) The company's core competencies stem from its product process and technological advantages (SMT, next-generation wireless communication, audio-visual integration), qualifications and honors (multiple engineering qualifications, national intellectual property advantage enterprise, specialized and sophisticated "little giant"), independent R&D and innovation, and robust quality management and service - The company's product process and technological advantages are reflected in **SMT, painting, injection molding, and aluminum casting processes**, as well as **next-generation wireless communication technology, multimedia cluster technology, independently controllable wired network security technology, and audio-visual fusion communication technology**[39](index=39&type=chunk) - The company holds multiple qualifications, including **"Communication Engineering General Contracting Grade II"**, and has been recognized as a **National Intellectual Property Advantage Enterprise**, a typical substantive industry-university-research alliance in Liaoning Province, a municipal wireless synchronous self-organizing sensor network technology innovation center, a high-tech enterprise, and a specialized and sophisticated "little giant" enterprise[40](index=40&type=chunk)[41](index=41&type=chunk) - The company possesses the capability for continuous research into new technologies and products, holding **13 authorized patents and 86 software copyrights**[42](index=42&type=chunk) - The company has obtained **ISO9001 Quality Management System, ISO14001 Environmental Management System, ISO45001 Occupational Health and Safety certifications**, and the **Integration of Informatization and Industrialization Management System assessment**[43](index=43&type=chunk) [III. Analysis of Principal Business](index=13&type=section&id=III.%20Analysis%20of%20Principal%20Business) The company's principal business experienced a significant year-on-year decline, with operating revenue down 88.81% and operating costs down 83.60%, primarily due to subsidiary shutdowns and a downturn in communication business, despite growth in military informatization and network optimization solutions Year-on-Year Changes in Key Financial Data | Indicator | Current Period (yuan) | Prior Period (yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 23,476,179.49 | 209,743,208.11 | -88.81% | Mainly due to subsidiary shutdowns and a decline in communication business during the reporting period | | Operating Cost | 33,212,557.60 | 202,568,976.93 | -83.60% | Mainly due to subsidiary shutdowns and a decline in communication business during the reporting period | | Administrative Expenses | 17,328,243.32 | 12,469,780.13 | 38.96% | Mainly due to increased professional service consulting fees and severance benefits during the reporting period | | Financial Expenses | -3,398,758.34 | -2,627,106.64 | -29.37% | Mainly due to accrued interest income from capital occupation during the reporting period | | R&D Investment | 1,659,841.83 | 4,256,542.32 | -61.00% | Mainly due to reduced R&D investment during the reporting period | | Net Cash Flow from Operating Activities | -47,761,463.38 | -81,662,967.40 | 41.51% | Mainly due to reduced cash payments for goods purchased and services received in the metal products business during the reporting period | | Net Cash Flow from Investing Activities | -121,481.95 | 25,849,179.48 | -100.47% | Mainly due to the redemption of wealth management products purchased by the company's subsidiary Wuxi Donghexin in the prior reporting period | | Net Cash Flow from Financing Activities | -426,692.62 | 48,464,801.15 | -100.88% | Mainly due to capital contributions from minority shareholders of the company's subsidiary Wuxi Donghexin in the prior reporting period | | Net Increase in Cash and Cash Equivalents | -48,308,140.95 | -7,338,474.79 | -558.29% | Mainly due to an increase in net cash flow from operating activities and a decrease in net cash flow from investing and financing activities during the reporting period | Composition of Operating Revenue | Category | Current Period Amount (yuan) | Share of Operating Revenue | Prior Period Amount (yuan) | Share of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | | | | | | | Communication Equipment Manufacturing | 6,601,402.33 | 28.12% | 19,696,824.95 | 9.39% | -66.48% | | Metal Products | 15,722,269.18 | 66.97% | 188,614,471.63 | 89.93% | -91.66% | | **By Product** | | | | | | | Military Informatization Products and Solutions | 3,126,527.43 | 13.32% | 2,331,415.60 | 1.11% | 34.10% | | Network Optimization and Coverage Equipment and Solutions | 3,474,874.90 | 14.80% | 994,023.00 | 0.47% | 249.58% | | Tinplate | 2,511,677.00 | 10.70% | 48,883,422.64 | 23.31% | -94.86% | | Cold-Rolled Hard Coil | 13,210,592.18 | 56.27% | 136,339,625.45 | 65.00% | -90.31% | | **By Region** | | | | | | | East China | 16,289,918.44 | 69.39% | 184,758,904.51 | 88.09% | -91.18% | | Central South China | 3,482,462.52 | 14.83% | 623,928.45 | 0.30% | 458.15% | [IV. Analysis of Non-Principal Business](index=15&type=section&id=IV.%20Analysis%20of%20Non-Principal%20Business) Non-principal business activities significantly impacted total profit negatively during the reporting period, with credit impairment losses of 56.2254 million yuan, non-operating expenses of 24.1273 million yuan due to illegal inventory disposal, and asset impairment losses of 2.2252 million yuan, none of which are sustainable Analysis of Non-Principal Business | Item | Amount (yuan) | Share of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Asset Impairment | -2,225,203.26 | 1.97% | Due to inventory impairment provision based on prudence principle during the reporting period | No | | Non-Operating Income | 258,176.67 | -0.23% | Due to collection of late fees during the reporting period | No | | Non-Operating Expenses | 24,127,339.01 | -21.31% | Due to illegal disposal of inventory stored at entrusted processor Dajiang Metal during the reporting period | No | | Credit Impairment Losses | -56,225,431.93 | 49.66% | Due to provision for bad debts from capital occupation during the reporting period | No | [V. Analysis of Assets and Liabilities](index=15&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's total assets decreased by 28.56% year-on-year, and net assets attributable to shareholders decreased by 33.05%, with significant asset restrictions including 56.0236 million yuan in frozen monetary funds and 54.0498 million yuan in restricted inventory Significant Changes in Asset Composition | Item | Current Period End Amount (yuan) | Share of Total Assets | Prior Year End Amount (yuan) | Share of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 69,748,937.81 | 19.05% | 64,801,339.41 | 12.64% | 6.41% | Due to increased collections this year | | Inventory | 89,636,350.31 | 24.48% | 146,101,701.58 | 28.50% | -4.02% | Due to illegal disposal of inventory stored at entrusted processor Dajiang Metal and recognition of shutdown losses during the reporting period | | Right-of-Use Assets | | | 2,672,634.91 | 0.52% | -0.52% | Due to termination of right-of-use assets during the reporting period | | Lease Liabilities | | | 1,807,373.62 | 0.35% | -0.35% | Due to termination of right-of-use assets during the reporting period | | Other Receivables | 115,922,031.06 | 31.66% | 188,559,730.02 | 36.79% | -5.13% | Due to provision for bad debts from capital occupation during the reporting period | Asset Restriction Status | Item | Book Balance (yuan) | Book Value (yuan) | Restriction Type | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 56,023,616.21 | 56,023,616.21 | Frozen | Frozen by court due to contract dispute | | Inventory | 59,667,909.99 | 54,049,763.25 | Restricted Ownership | Wuxi Donghexin has not paid for raw materials, and according to the contract, Wuxi Lianghong has recourse rights; as of the disclosure date, the corresponding inventory is jointly controlled by both parties | | Total | 115,691,526.20 | 110,073,379.46 | — | — | [VI. Analysis of Investment Status](index=16&type=section&id=VI.%20Analysis%20of%20Investment%20Status) During the reporting period, the company made no significant equity, non-equity, securities, or derivative investments, but established a new 75%-owned subsidiary, Donghexin New Material Industry (Tianjin) Co., Ltd., which has not yet generated revenue - During the reporting period, the company had **no significant equity investments, non-equity investments, securities investments, or derivative investments**[53](index=53&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) Significant Equity Investments Acquired During the Reporting Period | Name of Investee Company | Principal Business | Investment Method | Investment Amount (yuan) | Shareholding Ratio | Progress as of Balance Sheet Date | Investment Gain/Loss for Current Period (yuan) | Expected Return (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Donghexin New Material Industry (Tianjin) Co., Ltd. | Production, manufacturing, and sales of tinplate, cold-rolled hard coils, substrates, etc. | Investment Establishment | 0.00 | 75.00% | Business registration completed | 0.00 | 0.00 | [VII. Significant Asset and Equity Sales](index=17&type=section&id=VII.%20Significant%20Asset%20and%20Equity%20Sales) During the reporting period, the company did not engage in any significant asset or equity sales - The company **did not sell any significant assets** during the reporting period[58](index=58&type=chunk) - The company **did not sell any significant equity** during the reporting period[59](index=59&type=chunk) [VIII. Analysis of Major Holding and Participating Companies](index=17&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) The company's main subsidiary, Wuxi Donghexin New Material Industry Co., Ltd., with a registered capital of 170 million yuan, reported total assets of 191.54 million yuan, net assets of 94.5443 million yuan, operating revenue of 15.8118 million yuan, and a net loss of 70.8289 million yuan, significantly impacting company performance due to production halts and frozen accounts Major Subsidiaries and Participating

Important Notice, Table of Contents, and Definitions [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The board, supervisory board, and senior management guarantee the report's accuracy, completeness, and truthfulness, while forward-looking statements are not substantive commitments, and no dividends or bonus shares are planned for this half-year - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[4](index=4&type=chunk) - The report contains forward-looking statements regarding future plans, which do not constitute substantive commitments to investors, and investors are advised to be aware of investment risks[5](index=5&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[6](index=6&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) This report features a clear directory divided into nine chapters, covering essential notices, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, financial reports, and other submitted data - The report comprises nine main chapters, offering a complete and easily navigable structure[8](index=8&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines common terms used in the report, including company name evolution, stock information, key subsidiary names and relationships, major shareholders, and the reporting period, ensuring accurate understanding of the report's content - The company's name is Infotm Microelectronics Co., Ltd., formerly known as Shun Yuan Industrial Development Co., Ltd[11](index=11&type=chunk) - Key subsidiaries include Shanghai Infotm, Infotm Hong Kong, Infotm Taiwan, Huaxinke, and World Style[11](index=11&type=chunk) - The reporting period is from January 1, 2025, to June 30, 2025[11](index=11&type=chunk) Company Profile and Key Financial Indicators [Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) The company, known as 'Infotm Microelectronics' with stock code 000670, is listed on the Shenzhen Stock Exchange, and its legal representative is Shi Haoliang - Company stock abbreviation: **Infotm Microelectronics**, stock code: **000670**, listing exchange: **Shenzhen Stock Exchange**[13](index=13&type=chunk) - The company's legal representative is Shi Haoliang[13](index=13&type=chunk) [Contact Persons and Information](index=6&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) The company's Board Secretary is Wang Fang, Securities Affairs Representative is Dai Bo, with contact address at Unit 03/05, 5th Floor, No. 799 Tianshan West Road, Changning District, Shanghai, including phone, fax, and email - Board Secretary: Wang Fang; Securities Affairs Representative: Dai Bo[14](index=14&type=chunk) - Contact address: Unit 03/05, 5th Floor, No. 799 Tianshan West Road, Changning District, Shanghai; Phone: 021-58853066; Email: infotm@infotm.com[14](index=14&type=chunk) [Other Information](index=6&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) During the reporting period, the company's contact information, information disclosure, and document storage locations, along with other relevant details, remained unchanged, with specific information available in the 2024 annual report - The company's registered address, office address, website, and email address remained unchanged during the reporting period[15](index=15&type=chunk) - Information disclosure and document storage locations remained unchanged during the reporting period[16](index=16&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This reporting period saw a 4.48% increase in operating revenue, but net profit attributable to shareholders decreased by 44.17%, and net cash flow from operating activities turned negative, declining by 130.46%, while total assets grew by 14.20%, but net assets attributable to shareholders decreased by 34.06% Key Accounting Data and Financial Indicators (Current Period vs. Prior Year) | Indicator | Current Period (yuan) | Prior Year (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,927,085,988.20 | 1,844,491,804.62 | 4.48% | | Net Profit Attributable to Shareholders of Listed Company | -32,296,579.70 | -22,402,397.12 | -44.17% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | -32,375,637.31 | -23,257,989.34 | -39.20% | | Net Cash Flow from Operating Activities | -62,184,675.12 | 204,162,286.04 | -130.46% | | Basic Earnings Per Share (yuan/share) | -0.0395 | -0.0274 | -44.16% | | Diluted Earnings Per Share (yuan/share) | -0.0395 | -0.0273 | -44.69% | | Weighted Average Return on Net Assets | -82.26% | -67.90% | -14.36% | | **Period-End Indicators** | **Current Period-End (yuan)** | **Prior Year-End (yuan)** | **Change from Prior Year-End** | | Total Assets | 2,036,414,849.87 | 1,783,275,882.79 | 14.20% | | Net Assets Attributable to Shareholders of Listed Company | 31,201,297.22 | 47,317,783.82 | -34.06% | [Differences in Accounting Data under Domestic and International Accounting Standards](index=7&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) The company reported no differences in net profit and net assets between financial statements disclosed under international or foreign accounting standards and Chinese accounting standards during the reporting period - The company reported no differences in net profit and net assets between financial statements disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[19](index=19&type=chunk) - The company reported no differences in net profit and net assets between financial statements disclosed under foreign accounting standards and Chinese Accounting Standards during the reporting period[20](index=20&type=chunk) [Non-Recurring Gains and Losses and Amounts](index=7&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) This reporting period's non-recurring gains and losses totaled 79,057.61 yuan, primarily from disposal of non-current assets, government grants, and other non-operating income and expenses, after tax and minority interest adjustments Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | Description | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 21,173.72 | | | Government Grants Recognized in Current Period P&L | 95,660.00 | | | Other Non-Operating Income and Expenses Apart from the Above | -2,573.16 | | | Less: Income Tax Impact | 13,412.66 | | | Minority Interest Impact (After Tax) | 21,790.29 | | | **Total** | **79,057.61** | | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor has it classified non-recurring items as recurring gains and losses[23](index=23&type=chunk) Management Discussion and Analysis [Principal Businesses Engaged by the Company During the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company primarily engages in electronic component distribution and integrated circuit chip R&D, design, and sales, capitalizing on the expanding semiconductor market driven by AI computing demand and accelerating domestic substitution, with its distribution business achieving significant sales and chip R&D deepening in smart imaging - The global semiconductor market is projected to reach **$700.9 billion** in 2025, with a **11.2% year-on-year growth**, indicating an overall expanding industry trend[25](index=25&type=chunk) - Domestic integrated circuit trade deficit narrowed, accelerating the localization process in the semiconductor industry[26](index=26&type=chunk) - The company's main businesses are electronic component distribution (via Huaxinke and World Style) and integrated circuit chip R&D, design, and sales (via Shanghai Infotm)[27](index=27&type=chunk)[28](index=28&type=chunk)[31](index=31&type=chunk) - In the first half of 2025, the company successfully secured the agency rights for Yangtze Memory Technologies Co. (YMTC), achieving **hundreds of millions of yuan** in sales[32](index=32&type=chunk) - The chip R&D and design business continues to deepen in the smart imaging sector, advancing chip processes towards domestic alternative manufacturing[31](index=31&type=chunk)[33](index=33&type=chunk) [Development Stage of the Company's Industry](index=9&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E7%9A%84%E5%8F%91%E5%B1%95%E9%98%B6%E6%AE%B5) The semiconductor industry is expanding, driven by explosive AI computing demand, while traditional consumer electronics show weak recovery, and domestic substitution accelerates - According to WSTS forecasts, the global semiconductor market size will reach **$700.9 billion** in 2025, with a **11.2% year-on-year growth**, indicating an overall expanding industry trend[25](index=25&type=chunk) - The explosive growth in AI computing power demand is the core engine driving semiconductor industry development, leading to a surge in demand for GPUs and high-bandwidth memory[25](index=25&type=chunk) - Demand in the traditional consumer electronics sector continues a weak recovery, with the global smartphone market experiencing its first decline in Q2 2025[25](index=25&type=chunk) - Domestic integrated circuit imports increased by **8.9%** year-on-year, exports increased by **20.6%** year-on-year, the trade deficit narrowed by **4.7%**, and the domestic substitution process accelerated[26](index=26&type=chunk) [Principal Businesses Engaged by the Company During the Reporting Period](index=9&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company operates in wholesale and retail, primarily through electronic component distribution via subsidiaries and integrated circuit chip R&D, design, and sales using a Fabless model - The company's industry is 'Wholesale and Retail Trade (F) — 51 Wholesale Trade'[27](index=27&type=chunk) - Electronic component distribution business is conducted through controlled subsidiaries Huaxinke and World Style, acting as agents for RF, fingerprint, power, memory chips, and passive components, applied in mobile phones, network communications, smart devices, and automotive electronics[28](index=28&type=chunk) - Integrated circuit chip R&D, design, and sales business is primarily carried out by wholly-owned subsidiary Shanghai Infotm, adopting a Fabless model, deepening in the smart imaging field, and providing chip mass production technical services[31](index=31&type=chunk) [Main Business Development Status](index=10&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%8F%91%E5%B1%95%E6%83%85%E5%86%B5) The electronic component distribution business secured YMTC agency rights, achieving significant sales, while the integrated circuit chip R&D business advanced towards domestic alternative processes and enhanced customization services - The electronic component distribution business successfully obtained agency rights for Yangtze Memory Technologies Co. (YMTC), achieving **hundreds of millions of yuan** in sales in the first half of 2025[32](index=32&type=chunk) - The distribution business enhanced customer service and credit ratings by strengthening team building and professional sales networks[32](index=32&type=chunk) - The integrated circuit chip R&D and design business advanced chip processes towards domestic alternative manufacturing and deepened chip customization service capabilities[33](index=33&type=chunk) [Analysis of Core Competencies](index=10&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies include strong supplier and customer resources, leading brand advantages, superior per capita output and inventory turnover, robust supply chain and technical service capabilities, and a stable, professional team - The company has established long-term partnerships with renowned suppliers such as Goodix Technology, Vanchip, SmartSens, Chipone Technology, and Samsung Electro-Mechanics, with downstream customers including leading manufacturers like Xiaomi, Wingtech Technology, and Ofilm[34](index=34&type=chunk) - Controlled subsidiaries Huaxinke and World Style ranked among the **TOP25** in China's electronic component distributors by revenue and **TOP50** globally in 2023-2024, also receiving awards such as 'Top Ten Best Chinese Brand Distributors'[36](index=36&type=chunk)[37](index=37&type=chunk) - The company's per capita output and inventory turnover rate are both higher than comparable companies in the industry, with continuous product line optimization to reduce inventory risks[38](index=38&type=chunk) - The company possesses flexible supply chain management and the ability to anticipate customer needs, providing comprehensive overall solutions and on-site technical support[39](index=39&type=chunk)[40](index=40&type=chunk) - The company has established a systematic management system and talent incentive mechanism, with core management personnel possessing over **10 years** of industry experience[41](index=41&type=chunk) [Main Business Analysis](index=11&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Operating revenue increased by 4.48%, but higher cost growth led to a decline in gross margin, while financial expenses significantly decreased due to reduced factoring interest, with electronic component distribution remaining the primary revenue source and SoC chip business showing substantial growth Key Financial Data Year-on-Year Changes | Indicator | Current Period (yuan) | Prior Year (yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,927,085,988.20 | 1,844,491,804.62 | 4.48% | | | Operating Cost | 1,871,933,871.26 | 1,738,640,298.25 | 7.67% | | | Selling Expenses | 17,895,814.07 | 18,666,266.33 | -4.13% | | | Administrative Expenses | 37,029,638.92 | 42,873,148.98 | -13.63% | | | Financial Expenses | 14,790,265.89 | 24,794,664.41 | -40.35% | Primarily due to reduced factoring interest expenses | | Income Tax Expense | 5,022,611.95 | 10,874,121.65 | -53.81% | Primarily due to decreased total profit in the current period | | R&D Investment | 3,283,473.37 | 4,042,318.38 | -18.77% | | | Net Cash Flow from Operating Activities | -62,184,675.12 | 204,162,286.04 | -130.46% | Primarily due to increased cash paid for goods purchased in the current period | | Net Cash Flow from Investing Activities | -974,113.23 | -1,773,093.23 | 45.06% | Primarily due to decreased cash paid for the purchase of fixed assets and intangible assets in the current period | | Net Cash Flow from Financing Activities | 107,517,321.04 | -173,574,030.18 | 161.94% | Primarily due to increased cash received from borrowings in the current period compared to the prior year | | Net Increase in Cash and Cash Equivalents | 43,563,027.47 | 29,012,398.21 | 50.15% | Primarily due to increased net cash flow from financing activities | Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Current Period Amount (yuan) | Proportion of Operating Revenue | Prior Year Amount (yuan) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | | | | | | | | Integrated Circuit Design and Sales Business | 6,296,031.00 | 0.33% | 1,947,235.14 | 0.11% | 223.33% | | Electronic Component Distribution Industry | 1,920,789,957.20 | 99.67% | 1,842,544,569.48 | 99.89% | 4.25% | | **By Product** | | | | | | | | SoC Chips | 5,580,902.62 | 0.29% | 42,152.81 | 0.00% | 13,139.69% | | Active Components | 1,681,968,407.25 | 87.28% | 1,651,512,822.69 | 89.54% | 1.84% | | Passive Components | 238,821,549.95 | 12.39% | 190,887,388.28 | 10.35% | 25.11% | | **By Region** | | | | | | | | Mainland China | 811,496,981.60 | 42.11% | 766,132,237.84 | 41.54% | 5.92% | | Overseas Regions | 1,115,589,006.60 | 57.89% | 1,078,359,566.78 | 58.46% | 3.45% | Industries, Products, or Regions Accounting for Over 10% of Operating Revenue or Operating Profit | Category | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | | | | | | | | Electronic Component Distribution Industry | 1,920,789,957.20 | 1,865,989,252.23 | 2.85% | 4.25% | 7.38% | -2.84% | | **By Product** | | | | | | | | Active Components | 1,681,968,407.25 | 1,662,261,810.28 | 1.17% | 1.84% | 5.60% | -3.52% | | Passive Components | 238,821,549.95 | 203,727,441.95 | 14.69% | 25.11% | 24.52% | 0.40% | | **By Region** | | | | | | | | Mainland China | 805,200,950.60 | 758,043,373.99 | 5.86% | 5.36% | 3.99% | 1.25% | | Overseas Regions | 1,115,589,006.60 | 1,107,945,878.24 | 0.69% | 3.46% | 9.84% | -5.77% | [Non-Principal Business Analysis](index=13&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) The impact of non-principal businesses on total profit primarily stems from investment income, asset impairment, and credit impairment losses, which are generally not sustainable Impact of Non-Principal Businesses on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Sustainability | | :--- | :--- | :--- | :--- | | Investment Income | -1,792,192.99 | 8.78% | No | | Asset Impairment | -257,642.79 | 1.26% | No | | Non-Operating Expenses | 2,573.16 | -0.01% | No | | Credit Impairment Losses | 624,325.17 | -3.06% | No | | Gains from Asset Disposal | 21,173.72 | -0.10% | No | | Other Income | 139,930.74 | -0.69% | No | [Analysis of Assets and Liabilities](index=13&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) At period-end, total assets increased by 14.20%, with significant growth in monetary funds, inventory, short-term borrowings, and contract liabilities; accounts receivable remained the largest asset, and several overseas assets primarily engaged in electronic product sales showed no major impairment risks, while some accounts receivable were restricted due to factoring Significant Changes in Asset Composition | Item | Current Period-End Amount (yuan) | Proportion of Total Assets | Prior Year-End Amount (yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 74,188,778.85 | 3.64% | 30,625,751.38 | 1.72% | 1.92% | | Accounts Receivable | 1,030,833,097.83 | 50.62% | 1,056,042,922.97 | 59.22% | -8.60% | | Inventory | 349,260,215.27 | 17.15% | 170,464,602.17 | 9.56% | 7.59% | | Short-Term Borrowings | 446,902,616.08 | 21.95% | 341,226,017.89 | 19.13% | 2.82% | | Contract Liabilities | 6,328,925.46 | 0.31% | 607,913.14 | 0.03% | 0.28% | - The company's major overseas assets, including Infotm Hong Kong, United Wireless Hong Kong, Chunxing Wireless Hong Kong, Huaxinke Hong Kong, and World Style, primarily engage in electronic product sales, all reporting net profits or minor losses in this period with no significant impairment risks[52](index=52&type=chunk) - As of the end of the reporting period, the ending balance of notes receivable financing was **9,931,937.04 yuan**, primarily consisting of bank acceptance bills[55](index=55&type=chunk) - As of the end of the reporting period, **280,893,031.27 yuan** in accounts receivable were pledged as collateral due to factoring business[56](index=56&type=chunk) [Significant Changes in Asset Composition](index=13&type=section&id=1%E3%80%81%E8%B5%84%E4%BA%A7%E6%9E%84%E6%88%90%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) This section details major changes in asset composition, including monetary funds, accounts receivable, inventory, short-term borrowings, and contract liabilities, highlighting their respective period-end amounts and proportions of total assets Major Overseas Assets | Item | Current Period-End Amount (yuan) | Proportion of Total Assets | Prior Year-End Amount (yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 74,188,778.85 | 3.64% | 30,625,751.38 | 1.72% | 1.92% | | Accounts Receivable | 1,030,833,097.83 | 50.62% | 1,056,042,922.97 | 59.22% | -8.60% | | Inventory | 349,260,215.27 | 17.15% | 170,464,602.17 | 9.56% | 7.59% | | Short-Term Borrowings | 446,902,616.08 | 21.95% | 341,226,017.89 | 19.13% | 2.82% | | Contract Liabilities | 6,328,925.46 | 0.31% | 607,913.14 | 0.03% | 0.28% | [Major Overseas Assets](index=13&type=section&id=2%E3%80%81%E4%B8%BB%E8%A6%81%E5%A2%83%E5%A4%96%E8%B5%84%E4%BA%A7%E6%83%85%E5%86%B5) The company's key overseas subsidiaries, including Infotm Hong Kong and United Wireless Hong Kong, primarily engage in electronic product sales, reporting net profits or minor losses with no significant impairment risks, and United Wireless Hong Kong's assets represent a substantial portion of the company's net assets - Overseas subsidiaries such as Infotm Hong Kong, United Wireless Hong Kong, Chunxing Wireless Hong Kong, and Huaxinke Hong Kong primarily engage in electronic product sales, all reporting net profits or minor losses in this period with no significant impairment risks[52](index=52&type=chunk) - United Wireless Hong Kong's total assets amounted to **1,013.8227 million yuan** (RMB), achieving a net profit of **175,400 yuan** (RMB) in this reporting period, with its overseas assets accounting for **263.51%** of the company's net assets[52](index=52&type=chunk) [Assets and Liabilities Measured at Fair Value](index=14&type=section&id=3%E3%80%81%E4%BB%A5%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E8%AE%A1%E9%87%8F%E7%9A%84%E8%B5%84%E4%BA%A7%E5%92%8C%E8%B4%9F%E5%80%BA) The company's assets measured at fair value primarily consist of notes receivable financing, with a period-end balance of 9,931,937.04 yuan, determined by their face value Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (yuan) | Amount Purchased in Current Period (yuan) | Amount Sold in Current Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | | Notes Receivable Financing | 14,035,959.53 | 412,975,506.21 | 417,079,528.70 | 9,931,937.04 | | Total Above | 14,035,959.53 | 412,975,506.21 | 417,079,528.70 | 9,931,937.04 | - The amount purchased in this period represents bank acceptance bills received, while the amount sold represents bank bills that matured, were endorsed, or discounted[55](index=55&type=chunk) [Asset Rights Restricted as of the End of the Reporting Period](index=15&type=section&id=4%E3%80%81%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%AB%E7%9A%84%E8%B5%84%E4%BA%A7%E6%9D%83%E5%88%A9%E5%8F%97%E9%99%90%E6%83%85%E5%86%B5) As of the end of the reporting period, 280,893,031.27 yuan of accounts receivable were restricted due to factoring pledges Asset Rights Restricted Status | Item | Period-End Book Value (yuan) | Reason for Restriction | | :--- | :--- | :--- | | Accounts Receivable | 280,893,031.27 | Factoring pledge | | Total | 280,893,031.27 | | [Analysis of Investment Status](index=15&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company's investment amounted to 7,922,602.85 yuan during the reporting period, with no securities investments, derivative investments, or use of raised funds Investment Amount During Reporting Period | Investment Amount in Current Period (yuan) | Investment Amount in Prior Year (yuan) | Change Rate | | :--- | :--- | :--- | | 7,922,602.85 | 0.00 | - | - The company reported no securities investments, derivative investments, or use of raised funds during the reporting period[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) [Significant Asset and Equity Sales](index=16&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell any significant assets during the reporting period[61](index=61&type=chunk) - The company did not sell any significant equity during the reporting period[62](index=62&type=chunk) [Analysis of Major Controlled and Invested Companies](index=16&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Key subsidiaries Shanghai Infotm and Huaxinke maintained substantial total assets and net assets at period-end, with Shanghai Infotm reporting a net loss and Huaxinke a net profit, and the company established a new subsidiary, Yicun Technology (Hong Kong) Co., Ltd., during the reporting period Major Subsidiaries and Invested Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (CNY 10,000) | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Infotm | Subsidiary | R&D and Sales | 66,000 | 866,669,913.31 | 221,499,653.76 | 46,295,321.22 | -10,857,599.54 | -10,857,776.49 | | Huaxinke | Subsidiary | Electronic Component Distribution | 10,000 | 678,719,117.63 | 194,915,537.19 | 672,428,247.50 | 17,620,591.71 | 12,634,884.19 | - During the reporting period, a new subsidiary, Yicun Technology (Hong Kong) Co., Ltd., was established, which is conducive to promoting the company's related business development[63](index=63&type=chunk) [Structured Entities Controlled by the Company](index=16&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company did not control any structured entities during the reporting period - The company reported no structured entities under its control during the reporting period[64](index=64&type=chunk) [Risks Faced by the Company and Countermeasures](index=17&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces risks including potential cancellation of key product line authorizations, high concentration of suppliers and customers, low net assets, goodwill impairment, unrecoverable accounts receivable, inventory risks, and exchange rate fluctuations, for which it has developed corresponding countermeasures such as market expansion, service optimization, and enhanced risk management - Risk of cancellation or non-renewal of important product line authorizations: Agency agreements are typically signed annually, and cancellation of important product line authorizations would adversely affect operating performance. Countermeasures: Strengthen market development, enhance the company's importance to original manufacturers, and expand product line types[65](index=65&type=chunk) - Risk of high concentration of important suppliers and customers in the electronic component distribution business: In the first half of 2025, the company's procurement from the top five suppliers accounted for **84.46%**, and sales to the top five customers accounted for **50.93%**. Countermeasures: Optimize services, develop new product lines, and acquire high-quality customers[66](index=66&type=chunk) - Risk of low net assets: As of June 2025, net assets attributable to the parent company were **31.2013 million yuan**. If performance does not improve effectively, it could lead to negative net assets. Countermeasures: Promote the development of principal businesses and explore new performance drivers[67](index=67&type=chunk) - Risk of goodwill impairment: As of June 30, 2025, the original value of goodwill was **454.5641 million yuan**. If Huaxinke and World Style's performance falls short of expectations, there is an impairment risk. Countermeasures: Improve operational management and strengthen synergistic effects[68](index=68&type=chunk) - Risk of unrecoverable accounts receivable: As of June 30, 2025, the book value of accounts receivable was **1,030.8331 million yuan**, accounting for **50.62%** of total assets. Countermeasures: Strengthen customer commercial credit control and enhance accounts receivable management[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) - Inventory risk: As of June 30, 2025, the book value of inventory was **349.2602 million yuan**, accounting for **22.20%** of current assets. Changes in demand could lead to adverse effects. Countermeasures: Strengthen procurement, sales, storage, and transportation management, and optimize inventory turnover rate[72](index=72&type=chunk) - Exchange rate risk: With significant overseas sales and procurement, substantial fluctuations in the RMB exchange rate could lead to exchange gains or losses. Countermeasures: Closely monitor exchange rate information and, when appropriate, use foreign exchange hedging to mitigate risks[73](index=73&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=18&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not disclosed any market value management system or valuation enhancement plan - The company has not formulated a market value management system[74](index=74&type=chunk) - The company has not disclosed a valuation enhancement plan[74](index=74&type=chunk) [Implementation of “Dual Improvement in Quality and Returns” Action Plan](index=18&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E2%80%9C%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%E2%80%9D%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not disclosed any announcement regarding the 'Dual Improvement in Quality and Returns' action plan - The company has not disclosed an announcement regarding the 'Dual Improvement in Quality and Returns' action plan[74](index=74&type=chunk) Corporate Governance, Environment, and Society [Changes in Directors, Supervisors, and Senior Management](index=19&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, there were no changes in the company's directors, supervisors, or senior management, with specific details available in the 2024 annual report - The company's directors, supervisors, and senior management did not change during the reporting period[76](index=76&type=chunk) [Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period](index=19&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for this half-year - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year[77](index=77&type=chunk) [Implementation of Company's Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures](index=19&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company completed the repurchase and cancellation of some restricted shares from its 2023 equity incentive plan, reducing total share capital, and the 2024 company-level performance targets for the plan have been met, with individual assessments ongoing - The company has completed the repurchase and cancellation of some restricted shares from its 2023 restricted stock and stock option incentive plan, changing the total share capital from **849,287,360 shares** to **839,489,360 shares**[78](index=78&type=chunk) - According to the 2024 audit report, the company-level performance targets for the second vesting period/second exercise period of this equity incentive plan have been met[79](index=79&type=chunk) - The company has no employee stock ownership plans or other employee incentive measures[80](index=80&type=chunk) [Environmental Information Disclosure](index=19&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[80](index=80&type=chunk) [Social Responsibility Status](index=20&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company did not engage in poverty alleviation efforts previously and had no matters related to consolidating poverty alleviation achievements or rural revitalization during the reporting period - The company did not carry out poverty alleviation work previously, and there were no matters related to consolidating and expanding poverty alleviation achievements or rural revitalization during the reporting period[81](index=81&type=chunk) Significant Matters [Fulfillment of Commitments](index=21&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) During the reporting period, the company had no commitments from its actual controller, shareholders, related parties, acquirers, or the company itself that were fulfilled or overdue - During the reporting period, the company reported no commitments from its actual controller, shareholders, related parties, acquirers, or the company itself that were fulfilled or overdue as of the end of the reporting period[83](index=83&type=chunk) [Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties](index=21&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) The company reported no non-operating fund occupation by its controlling shareholder or other related parties during the reporting period - The company reported no non-operating fund occupation by its controlling shareholder or other related parties of the listed company during the reporting period[84](index=84&type=chunk) [Illegal External Guarantees](index=21&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no illegal external guarantees during the reporting period - The company had no illegal external guarantees during the reporting period[85](index=85&type=chunk) [Appointment and Dismissal of Accounting Firms](index=21&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[86](index=86&type=chunk) [Board of Directors' and Supervisory Board's Explanations on “Non-Standard Audit Reports” from Accounting Firms](index=21&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9A%84%E8%AF%B4%E6%98%8E) The company reported no 'non-standard audit reports' issued by accounting firms during the reporting period - The company reported no instances of accounting firms issuing 'non-standard audit reports' during the reporting period[87](index=87&type=chunk) [Board of Directors' Explanations on Matters Related to “Non-Standard Audit Reports” from the Previous Year](index=21&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The company reported no explanations regarding 'non-standard audit reports' from the previous year during the reporting period - The company reported no explanations regarding matters related to 'non-standard audit reports' from the previous year during the reporting period[87](index=87&type=chunk) [Bankruptcy Reorganization Matters](index=21&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company did not experience any bankruptcy reorganization matters during the reporting period - The company did not experience any bankruptcy reorganization matters during the reporting period[87](index=87&type=chunk) [Litigation Matters](index=21&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company had no significant litigation or arbitration matters during the reporting period, but an associated company is involved in a labor contract dispute with a case value of 87,000 yuan, which is currently awaiting judgment - The company had no significant litigation or arbitration matters during this reporting period[88](index=88&type=chunk) - There is a labor contract dispute involving an associated company, with a case value of **87,000 yuan**, which was heard on August 27, 2025, and the judgment has not yet been rendered[89](index=89&type=chunk) [Penalties and Rectification Status](index=22&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) The company reported no penalties or rectification situations during the reporting period - The company reported no penalties or rectification situations during the reporting period[90](index=90&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=22&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) The company's controlling shareholder, Shun Yuan Enterprise Management, and its actual controller, Mr. Chen Yanbiao, confirmed no unfulfilled legal obligations, large overdue debts, control change plans, or non-operating fund occupation - The largest shareholder, Shun Yuan Enterprise Management, confirmed no unfulfilled obligations determined by effective court legal documents, no large overdue debts, no plans for changes in company control, or non-operating fund occupation[91](index=91&type=chunk) - The actual controller, Mr. Chen Yanbiao, confirmed the absence of all the aforementioned situations[91](index=91&type=chunk) [Major Related-Party Transactions](index=22&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company reported no daily operational, asset/equity acquisition/disposal, or joint external investment related-party transactions, but engaged in significant fund borrowing with its largest shareholder, Shun Yuan Enterprise Management, with a period-end balance of 562.7678 million yuan and a 7.0375 million yuan interest waiver, and a consistency action agreement was signed between subsidiary Shanghai Infotm and Jingyu Investment regarding the proposed acquisition of 49% equity in Huaxinke and World Style - The company reported no related-party transactions related to daily operations, asset or equity acquisition/disposal, or joint external investments during the reporting period[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk) Payables to Related Parties (Fund Borrowing) | Related Party | Relationship | Reason for Formation | Beginning Balance (CNY 10,000) | Amount Added in Current Period (CNY 10,000) | Amount Repaid in Current Period (CNY 10,000) | Interest Rate | Interest in Current Period (CNY 10,000) | Ending Balance (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhejiang Shun Yuan Enterprise Management Co., Ltd. | Largest Shareholder | Fund Borrowing | 56,230.77 | 13,150 | 14,053.75 | One-year Loan Prime Rate (LPR) applicable in the current period | 949.76 | 56,276.78 | - Interest expense of **9.4976 million yuan** was accrued for fund borrowing in this period, reducing total profit by **9.4976 million yuan**, and Shun Yuan Enterprise Management's waiver of **7.0375 million yuan** in interest payable was recognized in the company's capital reserve[96](index=96&type=chunk) - Shanghai Infotm signed a 'Concerted Action Agreement' with Jingyu Investment, where Jingyu Investment intends to acquire **49%** equity in Huaxinke and World Style, with equity transfer and delivery procedures not yet completed[99](index=99&type=chunk) [Major Contracts and Their Performance](index=23&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company had no custody, contracting, or other major contracts during the reporting period, but disclosed leasing matters and detailed guarantee situations, including company guarantees for subsidiaries and subsidiary guarantees for other subsidiaries, with the total guarantee amount representing a high proportion of the company's net assets - The company reported no custody, contracting, entrusted wealth management, or other major contracts during the reporting period[101](index=101&type=chunk)[102](index=102&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - The company has leasing matters, with specific details provided in the financial report notes[103](index=103&type=chunk) External Guarantees by the Company and its Subsidiaries | Guaranteed Party Name | Announcement Date of Guarantee Limit | Guarantee Limit (CNY 10,000) | Actual Occurrence Date | Actual Guarantee Amount (CNY 10,000) | Guarantee Type | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Company Guarantees for Subsidiaries** | | | | | | | | | Shanghai Infotm | 2023年03月22日 | 50,000 | 2023年05月04日 | 11,000 | Pledge, Joint and Several Liability Guarantee | Until three years after the maturity date of the principal debt | No | | United Wireless Hong Kong | 2025年03月25日 | 50,000 | 2025年06月25日 | 14,324 | Joint and Several Liability Guarantee | The guarantee period for each principal debt is calculated separately | No | | **Subsidiary Guarantees for Subsidiaries** | | | | | | | | | United Wireless Hong Kong | 2021年10月08日 | 5,000 | 2021年10月08日 | 2,748.47 | Pledge | 2021/10/8-2025/4/30 | Yes | | United Wireless Shenzhen | 2024年04月16日 | 40,000 | | | Pledge, Mortgage, General Guarantee, Joint and Several Liability Guarantee | From May 20, 2024, to May 15, 2025 | Yes | | **Total Company Guarantees** | | | | | | | | | Total Approved Guarantee Limit in Current Period | 330,000 | | 28,267.84 | | | | | | Total Approved Guarantee Limit at Period-End | 330,000 | | 37,484.85 | | | | | | Proportion of Actual Total Guarantee Amount to Company's Net Assets | | | 1,201.39% | | | | | - The proportion of the actual total guarantee amount to the company's net assets is **1,201.39%**, with the balance of debt guarantees provided directly or indirectly for guaranteed parties with an asset-liability ratio exceeding **70%** being **158 million yuan**[109](index=109&type=chunk) [Explanation of Other Significant Matters](index=29&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company reported no other significant matters requiring explanation during the reporting period - The company reported no other significant matters requiring explanation during the reporting period[113](index=113&type=chunk) [Significant Matters of Company Subsidiaries](index=29&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) Company subsidiary Shanghai Infotm signed a 'Concerted Action Agreement' with Jingyu Investment, involving Jingyu Investment's proposed acquisition of 49% equity in Huaxinke and World Style - Company subsidiary Shanghai Infotm signed a 'Concerted Action Agreement' with Jingyu Investment, where Jingyu Investment intends to maintain a concerted action relationship with Shanghai Infotm in the management, operations, shareholder decisions, and board decisions of Huaxinke and World Style (including their subsidiaries) after acquiring shares in the target companies[114](index=114&type=chunk) Share Changes and Shareholder Information [Share Change Status](index=30&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's total share capital remained unchanged at 839,489,360 shares, with no changes in the proportions of restricted and unrestricted shares, though a portion of the largest shareholder's restricted shares became tradable after the period-end Share Change Status (shares) | Item | Quantity Before This Change | Proportion | Increase/Decrease in This Change (+, -) | Quantity After This Change | Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 117,382,648 | 13.98% | 0 | 117,382,648 | 13.98% | | Of which: Shares Held by Domestic Legal Persons | 94,520,648 | 11.26% | 0 | 94,520,648 | 11.26% | | Shares Held by Domestic Natural Persons | 22,862,000 | 2.72% | 0 | 22,862,000 | 2.72% | | II. Unrestricted Shares | 722,106,712 | 86.02% | 0 | 722,106,712 | 86.02% | | III. Total Shares | 839,489,360 | 100.00% | 0 | 839,489,360 | 100.00% | - The **94,520,248 restricted shares** held by Shun Yuan Enterprise Management became tradable on August 22, 2025[117](index=117&type=chunk) - During the reporting period, there were no reasons for share changes, approval status, transfer status, progress of share repurchases, or impact on financial indicators[118](index=118&type=chunk) [Securities Issuance and Listing Status](index=31&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) The company had no securities issuance or listing activities during the reporting period - The company reported no securities issuance or listing activities during the reporting period[119](index=119&type=chunk) [Company Shareholder Numbers and Shareholding Status](index=31&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) At period-end, the company had 122,013 common shareholders, with Zhejiang Shun Yuan Enterprise Management Co., Ltd. as the largest shareholder holding 14.77% of shares, and while Shi Haoliang is its legal representative, there is no concerted action relationship - Total number of common shareholders at the end of the reporting period: **122,013**[120](index=120&type=chunk) Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at Period-End | Number of Restricted Shares Held | Number of Unrestricted Shares Held | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhejiang Shun Yuan Enterprise Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 14.77% | 124,022,984 | 94,520,248 | 29,502,736 | | Orient Securities Co., Ltd. | State-Owned Legal Person | 5.63% | 47,259,365 | 0 | 47,259,365 | | Wang Wei | Domestic Natural Person | 3.70% | 31,025,652 | 0 | 31,025,652 | | Guoxin Securities Co., Ltd. | State-Owned Legal Person | 2.45% | 20,600,624 | 0 | 20,600,624 | | Jingzhou Ancient City State-Owned Investment Co., Ltd. | State-Owned Legal Person | 1.46% | 12,230,400 | 0 | 12,230,400 | | Wang Guojun | Domestic Natural Person | 0.67% | 5,600,000 | 5,600,000 | 0 | | Xu Fei | Domestic Natural Person | 0.67% | 5,600,000 | 5,600,000 | 0 | | Shi Haoliang | Domestic Natural Person | 0.42% | 3,500,000 | 3,500,000 | 0 | | Liu Shufang | Domestic Natural Person | 0.37% | 3,082,200 | 0 | 3,082,200 | | Yu Weiqing | Domestic Natural Person | 0.28% | 2,332,600 | 0 | 2,332,600 | - Shareholder Mr. Shi Haoliang is the legal representative and executive director of Shun Yuan Enterprise Management, but related parties have committed that there is no concerted action relationship[120](index=120&type=chunk) - Among the top 10 common shareholders, Wang Wei, Liu Shufang, and Yu Weiqing hold company shares through margin trading and securities lending accounts[120](index=120&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=32&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period, as detailed in the 2024 annual report - The shareholdings of the company's directors, supervisors, and senior management did not change during the reporting period[123](index=123&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=32&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder did not change during the reporting period[124](index=124&type=chunk) - The company's actual controller did not change during the reporting period[124](index=124&type=chunk) [Preferred Share Information](index=32&type=section&id=%E5%85%AD%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[125](index=125&type=chunk) Bond-Related Information [Bond-Related Information](index=33&type=section&id=%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no bond-related matters during the reporting period - The company reported no bond-related matters during the reporting period[127](index=127&type=chunk) Financial Report [Audit Report](index=34&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[129](index=129&type=chunk) [Financial Statements](index=34&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the company's 2025 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively presenting the company's financial position, operating results, and cash flow - The consolidated balance sheet shows total assets of **2,036,414,849.87 yuan** at period-end, total liabilities of **1,651,673,718.63 yuan**, and total owners' equity attributable to the parent company of **31,201,297.22 yuan**[133](index=133&type=chunk) - The consolidated income statement shows total operating revenue of **1,927,085,988.20 yuan**, net profit of **-25,441,796.19 yuan**, and net profit attributable to parent company shareholders of **-32,296,579.70 yuan** for the current period[140](index=140&type=chunk) - The consolidated cash flow statement shows net cash flow from operating activities of **-62,184,675.12 yuan** and net cash flow from financing activities of **107,517,321.04 yuan**[144](index=144&type=chunk) [Consolidated Balance Sheet](index=34&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) This section presents the consolidated balance sheet, detailing the company's assets, liabilities, and owners' equity at the end of the reporting period - Total current assets at period-end were **1,573,496,440.22 yuan**, total non-current assets were **462,918,409.65 yuan**, and total assets were **2,036,414,849.87 yuan**[131](index=131&type=chunk)[132](index=132&type=chunk) - Total current liabilities at period-end were **1,562,451,727.29 yuan**, total non-current liabilities were **89,221,991.34 yuan**, and total liabilities were **1,651,673,718.63 yuan**[133](index=133&type=chunk) - Total owners'

[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=第一节%20重要提示、目录和释义) This section provides important notices, outlines the report's structure, and defines key industry-specific terminology for clarity [Important Notice](index=2&type=section&id=重要提示) The company's board and management assure report accuracy and highlight risks, with no semi-annual cash dividends or share capital increases planned - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[4](index=4&type=chunk) - The company specifically advises investors to pay attention to the 'Risks Faced by the Company and Countermeasures' section in 'Management Discussion and Analysis'[4](index=4&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=目录) This section lists the report's eight main chapters, covering company profile, management discussion, governance, significant events, share changes, bonds, and financial reports - The report comprises eight main sections, covering company profile, management discussion and analysis, corporate governance, significant events, share changes, bond information, and financial reports[7](index=7&type=chunk) [Definitions](index=5&type=section&id=释义) This section defines key professional terms related to semiconductor materials, manufacturing, packaging, and coatings to ensure clear understanding of the report - The report defines key professional terms such as semiconductor manufacturing, semiconductor packaging, wafer-level packaging (WLP), wafer wet process, electronic plating, electronic cleaning, bumping, through-silicon via (TSV), advanced packaging, photoresist, chemical mechanical polishing (CMP) slurry, etchant, dicing, fluorocarbon coatings, powder coatings, fluorocarbon powder coatings, heavy-duty anti-corrosion coatings, and PVDF[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) [Company Profile and Key Financial Indicators](index=8&type=section&id=第二节%20公司简介和主要财务指标) This section introduces the company, its contact information, and presents key accounting data and financial indicators for the reporting period [Company Profile](index=8&type=section&id=一、公司简介) Shanghai Xinyang Semiconductor Materials Co., Ltd. (stock code: 300236) is listed on the Shenzhen Stock Exchange, with Wang Su as its legal representative - The company's stock abbreviation is “上海新阳” (Shanghai Xinyang), stock code **300236**, listed on the Shenzhen Stock Exchange[15](index=15&type=chunk) - The company's legal representative is Wang Su[15](index=15&type=chunk) [Contact Persons and Information](index=8&type=section&id=二、联系人和联系方式) This section provides contact details for the company's Board Secretary Yang Jing and Securities Affairs Representative Zhang Peipei - The company's Board Secretary is Yang Jing, and the Securities Affairs Representative is Zhang Peipei, both located at No. 3600 Sixian Road, Songjiang District, Shanghai[16](index=16&type=chunk) [Other Information](index=8&type=section&id=三、其他情况) The company's contact information, disclosure, and registration details remained unchanged during the reporting period, as referenced in the 2024 annual report - The company's registered address, office address, website, email, information disclosure and storage location, and registration status remained unchanged during the reporting period[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [Key Accounting Data and Financial Indicators](index=9&type=section&id=四、主要会计数据和财务指标) In H1 2025, the company achieved significant growth in operating revenue and net profit, with substantial increases in operating cash flow, total assets, and net assets Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (RMB) | Prior Year Period (RMB) | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 896,649,671.91 | 660,897,505.06 | 35.67% | | Net Profit Attributable to Shareholders of Listed Company | 133,305,329.34 | 58,904,090.14 | 126.31% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | 127,033,676.15 | 80,365,638.74 | 58.07% | | Net Cash Flow from Operating Activities | 112,793,253.82 | 33,074,091.65 | 241.03% | | Basic Earnings Per Share (RMB/share) | 0.4280 | 0.1895 | 125.86% | | Diluted Earnings Per Share (RMB/share) | 0.4280 | 0.1895 | 125.86% | | Weighted Average Return on Net Assets | 2.97% | 1.46% | 1.51% | | Indicator | End of Current Period (RMB) | End of Prior Year (RMB) | Change from End of Prior Year (%) | | :--- | :--- | :--- | :--- | | Total Assets | 6,106,746,216.50 | 5,860,673,166.39 | 4.20% | | Net Assets Attributable to Shareholders of Listed Company | 4,620,250,822.06 | 4,536,694,935.49 | 1.84% | [Differences in Accounting Data under Domestic and International Accounting Standards](index=9&type=section&id=五、境内外会计准则下会计数据差异) During the reporting period, the company reported no differences in net profit or net assets between Chinese and international/overseas accounting standards - During the reporting period, the company had no differences in net profit and net assets in financial reports disclosed under International Accounting Standards compared to Chinese Accounting Standards[21](index=21&type=chunk) - During the reporting period, the company had no differences in net profit and net assets in financial reports disclosed under overseas accounting standards compared to Chinese Accounting Standards[22](index=22&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=9&type=section&id=六、非经常性损益项目及金额) The company's non-recurring gains and losses totaled RMB 6,271,653.19 for the reporting period, primarily from government subsidies and financial asset investment income Non-Recurring Gains and Losses Items and Amounts for H1 2025 | Item | Amount (RMB) | Explanation | | :--- | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | -101,328.87 | | | Government Subsidies Included in Current Profit and Loss (Excluding those closely related to normal business operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on the company's profit and loss) | 11,448,380.67 | | | Fair Value Changes and Disposal Gains/Losses from Financial Assets and Liabilities Held by Non-Financial Enterprises (Excluding effective hedge accounting related to normal business operations) | 4,503,049.13 | Primarily due to investment income related to financial assets received by the company in the current reporting period | | Other Non-Operating Income and Expenses Apart from the Above | -5,092.67 | | | Other Profit and Loss Items Meeting the Definition of Non-Recurring Gains and Losses | -8,465,768.13 | Mainly R&D expenditures for multiple projects undertaken by the company; given that corresponding government subsidies are recognized as non-recurring gains and losses in the period of R&D expenditure, the income corresponding to these project expenditures is also classified as non-recurring gains and losses using the same criteria | | Less: Income Tax Impact | 1,106,879.88 | | | Minority Interest Impact (After Tax) | 707.06 | | | **Total** | **6,271,653.19** | | [Management Discussion and Analysis](index=11&type=section&id=第三节%20管理层讨论与分析) This section details the company's main business operations, industry conditions, core competencies, financial performance, and risk management strategies during the reporting period [Main Businesses Engaged by the Company During the Reporting Period](index=11&type=section&id=一、报告期内公司从事的主要业务) The company focuses on integrated circuit materials and functional coatings, with semiconductor business growing rapidly and coatings business experiencing a slight decline - The company's main businesses are categorized into two types: integrated circuit manufacturing and advanced packaging key process materials and supporting equipment, and environmentally friendly, functional coatings[41](index=41&type=chunk) - In H1 2025, the company achieved operating revenue of **RMB 897 million**, a year-on-year increase of **35.67%**; net profit attributable to shareholders of the listed company was **RMB 133 million**, a year-on-year increase of **126.31%**[59](index=59&type=chunk) - The semiconductor business achieved operating revenue of **RMB 709 million**, a year-on-year increase of **53.12%**; the coatings business achieved operating revenue of **RMB 187 million**, a year-on-year decrease of **5.29%**[59](index=59&type=chunk) - During the reporting period, the company's total R&D investment was **RMB 120 million**, accounting for **13.58%** of current operating revenue, primarily focused on projects such as photoresists for integrated circuit manufacturing, advanced wet etchants, cleaning solutions, additives, and chemical mechanical polishing slurries[61](index=61&type=chunk) [Industry Situation of the Company During the Reporting Period](index=11&type=section&id=（一）报告期内公司所处行业情况) The global semiconductor market saw strong growth in H1 2025, with China's market expanding rapidly and significant demand for key materials, while the coatings industry shifts towards high-quality, green development - In H1 2025, global semiconductor sales reached **USD 342.91 billion**, a year-on-year increase of nearly **20%**; China's domestic semiconductor sales reached **USD 96.5 billion**, accounting for nearly **30%** of the global total[27](index=27&type=chunk) - By 2030, mainland China is expected to surpass Taiwan (**23%**) with **30%** of global wafer foundry capacity, becoming the world's largest foundry center[29](index=29&type=chunk) - The global wet electronic chemicals market is projected to reach **RMB 82.785 billion** by 2025, with the Chinese market growing to **RMB 29.275 billion**, a CAGR of **15.84%**[30](index=30&type=chunk) - In 2024, the global semiconductor photoresist market size increased by **16.15%** to **USD 2.732 billion**, with mainland China's market growing by **42.25%** to **USD 771 million**, becoming the largest market globally[33](index=33&type=chunk) - In 2024, the total global paint and coatings market value reached **USD 196 billion**, with the Chinese market accounting for **25%** of the share[36](index=36&type=chunk) - In 2023, the global PVDF fluorocarbon coatings market size reached **RMB 6.698 billion**, projected to expand at a CAGR of **4.9%** from 2024 to 2030[38](index=38&type=chunk) [Main Businesses Engaged by the Company During the Reporting Period](index=16&type=section&id=（二）报告期内公司从事的主要业务) The company's core businesses include critical process materials and equipment for IC manufacturing and advanced packaging, alongside environmentally friendly and functional coatings - The company's main products include electroplating solutions and additives, cleaning solutions, high-end photoresists, chemical mechanical polishing slurries, and etchant series products for integrated circuit manufacturing and advanced packaging[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk)[46](index=46&type=chunk) - The company also provides electronic chemical materials for semiconductor packaging, supporting equipment products, and fluorocarbon coating product series[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk) [Main Business Model](index=17&type=section&id=（三）主要经营模式) The company employs an R&D-driven, make-to-order production model with direct sales and integrated service solutions, adhering to ISO quality standards for procurement - The company's R&D model is primarily based on independent research and innovation, collaborating closely with customers to develop products that meet their needs[50](index=50&type=chunk) - The procurement model adheres to the ISO quality system, with raw material procurement evaluated and tendered by the Quality Department and Technology Center[52](index=52&type=chunk)[53](index=53&type=chunk) - The production model is make-to-order, with production plans formulated based on market orders and inventory strategies[54](index=54&type=chunk) - The sales model is direct sales, involving business negotiations, order confirmation, and delivery with customers[55](index=55&type=chunk) - The service model provides integrated solutions encompassing chemical materials, supporting equipment, application processes, and on-site services[56](index=56&type=chunk)[57](index=57&type=chunk) [Main Business Performance During the Reporting Period](index=19&type=section&id=（四）报告期内主要业务情况) The company achieved significant revenue and net profit growth, driven by its semiconductor business, while investing heavily in R&D and capacity expansion Key Business Financial Performance for H1 2025 | Indicator | Amount (RMB 100 million) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 8.97 | 35.67% | | Net Profit Attributable to Shareholders of Listed Company | 1.33 | 126.31% | | Net Profit After Non-Recurring Gains and Losses | 1.27 | 58.07% | | Semiconductor Business Operating Revenue | 7.09 | 53.12% | | Coatings Business Operating Revenue | 1.87 | -5.29% | - The company's total R&D investment was **RMB 120 million**, accounting for **13.58%** of current operating revenue, primarily focused on projects such as photoresists for integrated circuit manufacturing, advanced wet etchants, cleaning solutions, additives, and chemical mechanical polishing slurries[61](index=61&type=chunk) - The company has established a complete R&D, synthesis, formulation, production, quality control, and analytical testing platform for various photoresists, including I-line, KrF, ArF dry, and ArF immersion, with some categories achieving industrialization[62](index=62&type=chunk) - The company optimized the production line layout at Hefei Xinyang, expanding capacity to **43,500 tons** and increasing investment to **RMB 1.049 billion**[64](index=64&type=chunk) - The company plans to invest **RMB 1.85 billion** next to its existing plant to construct a project for an annual output of **50,000 tons** of key integrated circuit process materials, along with a headquarters and R&D center[64](index=64&type=chunk) - The company implemented the New Growth (Phase III) Equity Incentive Plan and the 2025 Stock Appreciation Rights Incentive Plan, continuously sharing development benefits with employees[67](index=67&type=chunk) - The company participated in the equity investment fund, Juyuan Qixin Equity Investment Fund (Wuxi) Partnership (Limited Partnership), initiated by SMIC Juyuan Private Equity Fund Management (Shanghai) Co., Ltd[70](index=70&type=chunk) [Core Competitiveness Analysis](index=23&type=section&id=二、核心竞争力分析) The company leverages its "Specialized, Refined, Unique, and Innovative" status, extensive patent portfolio, five core technologies, strong customer relationships, and robust quality management for competitive advantage - The company is among the first batch of "Specialized, Refined, Unique, and Innovative" "Little Giant" enterprises recognized by the Ministry of Industry and Information Technology, a key laboratory for integrated circuit critical process materials in Shanghai, and a high-tech enterprise[71](index=71&type=chunk) - As of the end of the reporting period, the company had applied for **559 patents**, including **396 invention patents** (**185 granted**) and **17 international invention patents** (**10 granted**)[71](index=71&type=chunk) - The company possesses five core technologies: electronic plating, electronic cleaning, electronic lithography, electronic polishing, and electronic etching, with the fifth core technology for memory chip etching reaching international leading levels[72](index=72&type=chunk)[73](index=73&type=chunk) - The company is the first domestic enterprise capable of fully covering all technology nodes from 90-14nm for chip copper interconnect (Damascene) processes and fully meeting the requirements for logic, analog, and memory circuit products[73](index=73&type=chunk) - Since its listing, the semiconductor business has seen an average annual compound growth rate of over **20%** in R&D investment, with **30%** of the R&D team holding master's degrees or higher and **30%** having over **10 years** of industry experience[74](index=74&type=chunk) - As of H1 2025, among the integrated circuit production lines in operation in China, the company has become the Baseline (benchmark material) for **56 12-inch** and **23 8-inch** integrated circuit production lines, accounting for over **70%** and **60%** respectively[77](index=77&type=chunk) - The company has passed multiple quality management system certifications, including ISO9001, IATF16949, and ISO17025 CNAS on-site accreditation[78](index=78&type=chunk) [Main Business Analysis](index=26&type=section&id=三、主营业务分析) The company's main business revenue increased by 35.67%, primarily due to integrated circuit materials, with notable increases in selling expenses and a higher gross margin for IC materials Year-on-Year Changes in Key Financial Data | Item | Current Period (RMB) | Prior Year Period (RMB) | Year-on-Year Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 896,649,671.91 | 660,897,505.06 | 35.67% | Rapid growth in sales performance of integrated circuit materials related businesses | | Operating Cost | 531,246,012.83 | 398,871,742.12 | 33.19% | Rapid growth in sales performance, leading to increased corresponding sales costs | | Selling Expenses | 44,145,968.88 | 25,262,453.86 | 74.75% | Increase in sales personnel remuneration and market expansion expenses | | Administrative Expenses | 67,904,717.37 | 49,844,692.78 | 36.23% | Increase in management personnel remuneration and depreciation/amortization | | Financial Expenses | 1,542,268.34 | 687,715.23 | 124.26% | Decrease in interest income | | Income Tax Expense | 10,020,219.25 | 955,536.68 | 948.65% | Increase in income tax expense corresponding to increased sales profit | | R&D Investment | 121,760,496.27 | 97,096,622.51 | 25.40% | Continuous increase in R&D investment and human resource costs | | Net Cash Flow from Operating Activities | 112,793,253.82 | 33,074,091.65 | 241.03% | Increase in sales collection and VAT retention refunds | | Net Cash Flow from Investing Activities | -137,415,133.28 | -43,802,210.79 | -213.72% | Increase in asset acquisition and external investments | | Net Cash Flow from Financing Activities | 51,752,018.01 | -47,490,572.41 | 208.97% | Increase in bank borrowings and decrease in repayment of matured bank loans | | Net Increase in Cash and Cash Equivalents | 27,527,563.89 | -58,369,422.86 | 147.16% | Net cash flow inflow from operating and financing activities | | Other Income | 21,554,535.75 | 16,379,149.05 | 31.60% | Increase in subsidies | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin (%) | Year-on-Year Change in Operating Revenue (%) | Year-on-Year Change in Operating Cost (%) | Year-on-Year Change in Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Integrated Circuit Materials | 683,874,144.80 | 369,985,632.12 | 45.90% | 55.74% | 62.84% | -2.36% | | Integrated Circuit Material Supporting Equipment and Accessories | 24,788,412.40 | 17,208,466.93 | 30.58% | 1.92% | 6.48% | -2.97% | | Coatings | 187,028,756.38 | 144,045,797.39 | 22.98% | -5.29% | -7.37% | 1.73% | [Non-Core Business Analysis](index=27&type=section&id=四、非主营业务分析) Non-core business primarily consisted of investment income totaling RMB 2,182,784.37, accounting for 1.52% of total profit, which is not sustainable Non-Core Business Analysis | Item | Amount (RMB) | Percentage of Total Profit (%) | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 2,182,784.37 | 1.52% | The company received income related to external investments during the reporting period | No | [Analysis of Assets and Liabilities](index=27&type=section&id=五、资产及负债状况分析) Total assets increased by 4.20%, driven by higher accounts receivable, inventories, and intangible assets, while certain assets remained restricted Significant Changes in Asset Composition | Item | End of Current Period Amount (RMB) | Percentage of Total Assets (%) | End of Prior Year Amount (RMB) | Percentage of Total Assets (%) | Change in Proportion (%) | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 896,649,671.91 | 35.67% | 660,897,505.06 | | 35.67% | Due to rapid growth in sales performance of integrated circuit materials related businesses in the current reporting period | | Accounts Receivable | 658,518,773.96 | 10.78% | 603,496,765.63 | 10.30% | 0.48% | Rapid sales growth led to an increase in accounts receivable | | Inventories | 391,949,590.69 | 6.42% | 326,456,930.26 | 5.57% | 0.85% | Increase in inventory reserves to cope with rapid sales growth | | Prepayments | 38,162,139.08 | 0.62% | 14,977,864.63 | 0.26% | 0.36% | Increase in prepayments for material purchases | | Intangible Assets | 197,912,698.03 | 3.24% | 89,289,186.26 | 1.52% | 1.72% | Increase due to subsidiaries acquiring land use rights | | Development Expenditures | 0.00 | 0.00% | 27,789,333.82 | 0.47% | -0.47% | Capitalized R&D expenditures transferred to intangible assets upon completion | | Short-Term Borrowings | 303,742,197.72 | 4.97% | 156,863,083.33 | 2.68% | 2.29% | Increase in short-term bank borrowings | | Long-Term Borrowings | 116,698,134.23 | 1.91% | 163,212,846.62 | 2.78% | -0.87% | Repayment of long-term borrowings | | Non-Current Liabilities Due Within One Year | 132,630,064.24 | 2.17% | 53,514,205.64 | 0.91% | 1.26% | Increase in long-term borrowings due within one year | | Other Equity Instrument Investments | 2,364,508,538.95 | 38.72% | 2,376,721,968.45 | 40.55% | -1.83% | Fair value changes of equity instrument investments held | | Other Comprehensive Income | 1,582,238,359.03 | 25.91% | 1,592,619,774.11 | 27.17% | -1.26% | Fair value changes of equity instrument investments held | Asset Rights Restricted as of the End of the Reporting Period | Item | Carrying Amount (RMB) | Restricted Situation | | :--- | :--- | :--- | | Cash and Bank Balances | 74,676,186.73 | Pledged as collateral for RMB 222.3775 million in notes payable, RMB 10 million in short-term borrowings, and RMB 164.1981 million for Hefei project loans | | Notes Receivable | 100,907,042.46 | Pledged as collateral for RMB 222.3775 million in notes payable, RMB 10 million in short-term borrowings, and RMB 164.1981 million for Hefei project loans | | Fixed Assets | 205,590,221.58 | Pledged as collateral for RMB 222.3775 million in notes payable, RMB 10 million in short-term borrowings, and RMB 164.1981 million for Hefei project loans | | Intangible Assets | 31,913,846.54 | Pledged as collateral for RMB 222.3775 million in notes payable, RMB 10 million in short-term borrowings, and RMB 164.1981 million for Hefei project loans | | **Total** | **413,087,297.31** | | [Investment Analysis](index=30&type=section&id=六、投资状况分析) Total investment increased by 2.93%, with significant financial assets measured at fair value, and most raised funds utilized, though some projects have not yet met expected returns Investment Amount During the Reporting Period | Indicator | Investment Amount in Current Period (RMB) | Investment Amount in Prior Year Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Investment Amount | 34,101,990.05 | 33,131,313.00 | 2.93% | Financial Assets Measured at Fair Value | Asset Category | Ending Balance (RMB) | | :--- | :--- | | Stocks | 2,286,354,002.40 | | Other Non-Current Financial Assets | 385,628,329.44 | | **Total** | **2,750,136,868.39** | - Total raised funds were **RMB 791.9998 million**, net amount **RMB 787.5397 million**, with **RMB 681.2664 million** already used, representing a utilization rate of **86.51%**[101](index=101&type=chunk) - In the 'R&D and Industrialization of High-End Photoresists for Integrated Circuit Manufacturing' project, the 'KrF Thick Film Photoresist' project has reached its intended usable state and generated sales revenue, but the 'ArF Dry Photoresist' project is still in the R&D phase and has not fully achieved expected benefits[105](index=105&type=chunk) - For the 'Integrated Circuit Key Process Materials Project', the Hefei factory has been completed, but products still require customer validation, thus expected benefits have not yet been achieved[105](index=105&type=chunk) [Significant Asset and Equity Sales](index=35&type=section&id=七、重大资产和股权出售) 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[112](index=112&type=chunk) - The company did not sell significant equity during the reporting period[113](index=113&type=chunk) [Analysis of Major Holding and Participating Companies](index=35&type=section&id=八、主要控股参股公司分析) Key subsidiaries include Jiangsu Kople New Materials (profitable) and Shanghai Xinke Micro Material Technology (R&D stage, not yet profitable), with some still in development Major Holding and Participating Companies | Company Name | Company Type | Main Business | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Kople New Materials Co., Ltd. | Subsidiary | R&D, production, and related services for environmentally friendly and functional anti-corrosion coatings | 62,318,000 | 652,801,146.69 | 394,228,237.18 | 187,028,756.38 | 8,630,840.38 | | Shanghai Xinke Micro Material Technology Co., Ltd. | Subsidiary | Technology R&D, production, and sales of semiconductor microelectronic materials and lithography materials | 150,000,000 | 261,734,577.37 | 48,038,877.27 | 0.00 | -8,517,363.38 | | Shanghai Huiyan Material Technology Co., Ltd. | Subsidiary | Technology development, consulting, services, and transfer in material science; R&D and sales of semiconductor materials | 80,000,000 | 4,699,468.59 | -11,574,485.69 | 0.00 | -711,970.14 | | Xinyang (Guangdong) Semiconductor Technology Co., Ltd. | Subsidiary | R&D, manufacturing of electronic information products, integrated circuit products, chemical materials, semiconductor electroplating equipment, cleaning equipment, and spare parts; sales of proprietary products | 30,000,000 | 30,954,074.87 | 16,322,049.73 | 13,302,435.55 | -1,809,592.18 | | Shanghai Tehua Technology Co., Ltd. | Subsidiary | Technology development, consulting, services, and transfer in new material science; production and sales of electronic products; import and export of goods and technology | 20,000,000 | 22,642,630.35 | 21,288,030.22 | 2,180,264.58 | -823,451.76 | | Hefei Xinyang Semiconductor Materials Co., Ltd. | Subsidiary | Manufacturing, processing, sales, and technical consulting services for semiconductor materials; manufacturing, processing, sales, and technical consulting services for materials related to electronic and information technology; self-operated and agency import and export business for various goods and technologies | 200,000,000 | 469,678,104.34 | 128,806,785.68 | 23,923,707.28 | -18,338,156.92 | [Information on Structured Entities Controlled by the Company](index=37&type=section&id=九、公司控制的结构化主体情况) The company controls Shanghai Chengquan Technology Center (Limited Partnership) and Shanghai Quanyang Technology Center (Limited Partnership) due to majority investment shares and significant influence, consolidating them into its financial statements - The company controls Shanghai Chengquan Technology Center (Limited Partnership) and Shanghai Quanyang Technology Center (Limited Partnership) two structured entities[118](index=118&type=chunk) - The basis for control is that the company holds the vast majority of investment shares (Shanghai Chengquan **75%** direct, **9%** indirect; Shanghai Quanyang **80%** direct, **17%** indirect), allowing it to exert significant influence over other partners and obtain most of the variable returns[118](index=118&type=chunk)[119](index=119&type=chunk) [Risks Faced by the Company and Countermeasures](index=38&type=section&id=十、公司面临的风险和应对措施) The company faces risks in product development, market, safety, technology, and competition, addressed by continuous R&D, quality control, market expansion, and strategic investments - The company faces risks such as new product development, market promotion, industry and market fluctuations, safety and environmental protection, core technology leakage, investment projects failing to achieve expected returns, and intensified industry competition[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) - Countermeasures include continuous R&D investment, strengthening technology reserves, strict quality management for new products, increasing market development investment, pre-ordering and locking prices for some raw materials, obtaining environmental management system and safety standardization certifications, signing confidentiality agreements, forming professional project teams, actively seeking national industrial support policies, and continuous technological innovation and improved operational management[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[128](index=128&type=chunk) [Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period](index=41&type=section&id=十一、报告期内接待调研、沟通、采访等活动登记表) The company conducted online investor exchanges on May 9 and May 15, 2025, discussing corporate governance - On May 9 and May 15, 2025, the company conducted online exchanges via Panorama Network and SSE Roadshow Center, hosting all investors to discuss corporate governance[129](index=129&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=41&type=section&id=十二、市值管理制度和估值提升计划的制定落实情况) The company has approved a market value management system but has not disclosed a specific valuation enhancement plan - The company has formulated a market value management system, which was approved at the second meeting of the sixth board of directors[130](index=130&type=chunk) - The company has not disclosed a valuation enhancement plan[130](index=130&type=chunk) [Implementation of "Dual Improvement in Quality and Returns" Action Plan](index=41&type=section&id=十三、“质量回报双提升”行动方案贯彻落实情况) The company has not disclosed any announcement regarding the "Dual Improvement in Quality and Returns" action plan - The company has not disclosed the "Dual Improvement in Quality and Returns" action plan announcement[131](index=131&type=chunk) [Corporate Governance, Environment, and Society](index=42&type=section&id=第四节%20公司治理、环境和社会) This section covers changes in the company's board and management, profit distribution plans, employee incentive schemes, and environmental and social responsibility disclosures [Changes in Directors, Supervisors, and Senior Management](index=42&type=section&id=一、公司董事、监事、高级管理人员变动情况) Independent director Xu Ding resigned due to term expiration, and Yuan Bo was elected as a new independent director during the reporting period Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Xu Ding | Independent Director | Term expired | May 29, 2025 | Re-election | | Yuan Bo | Independent Director | Elected | May 29, 2025 | Re-election | [Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period](index=42&type=section&id=二、本报告期利润分配及资本公积金转增股本情况) The company plans no semi-annual cash dividends, bonus shares, or capital reserve conversions to share capital - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[134](index=134&type=chunk) [Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=42&type=section&id=三、公司股权激励计划、员工持股计划或其他员工激励措施的实施情况) The company implemented new equity incentive and stock appreciation rights plans, with previous employee stock ownership plans reaching their lock-up expiry and unlocking based on performance - The company reviewed and implemented the New Growth (Phase III) Equity Incentive Plan, granting **2.20 million** restricted shares to **181 incentive recipients** at a grant price of **RMB 18.88/share**[135](index=135&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk) - The company reviewed and implemented the 2025 Stock Appreciation Rights Incentive Plan, granting **147,000 stock appreciation rights** to **4 incentive recipients** at an exercise price of **RMB 18.88/right**[139](index=139&type=chunk)[142](index=142&type=chunk) - The second lock-up period for the Xinzhengtu (Phase II) Employee Stock Ownership Plan expired on April 9, 2025, and the lock-up period for the Xinzhengtu (Phase III) Employee Stock Ownership Plan expired on May 16, 2025, with unlocking based on a **100%** achievement rate of the 2024 semiconductor business operating revenue performance target[146](index=146&type=chunk)[147](index=147&type=chunk) Overview of All Valid Employee Stock Ownership Plans During the Reporting Period | Scope of Employees | Number of Employees | Total Shares Held (shares) | Percentage of Total Share Capital of Listed Company (%) | Funding Source for the Plan | | :--- | :--- | :--- | :--- | :--- | | Directors, Supervisors, Senior Management | 7 | 51,500 | 0.02% | Employees' legal remuneration, self-raised funds, social financing, and other legally permitted methods | | Directors, Supervisors, Senior Management | 7 | 150,000 | 0.05% | Employees' legal remuneration, self-raised funds, social financing, and other legally permitted methods | | Core Technical/Business Personnel in Semiconductor Business | 147 | 1,758,900 | 0.56% | Employees' legal remuneration, self-raised funds, social financing, and other legally permitted methods | [Environmental Information Disclosure](index=47&type=section&id=四、环境信息披露情况) Shanghai Xinyang and Jiangsu Kople are listed as enterprises required to disclose environmental information, with relevant reports available - Shanghai Xinyang Semiconductor Materials Co., Ltd. and Jiangsu Kople New Materials Co., Ltd. are included in the list of enterprises required to disclose environmental information by law[149](index=149&type=chunk) - The company provided an inquiry index for its environmental information disclosure report[149](index=149&type=chunk) [Social Responsibility](index=47&type=section&id=五、社会责任情况) The company did not disclose specific social responsibility information during the reporting period - The company did not disclose specific social responsibility information[150](index=150&type=chunk) [Significant Events](index=48&type=section&id=第五节%20重要事项) This section details significant events, including commitments, related party transactions, litigation, penalties, and other material disclosures during the reporting period [Fulfilled and Overdue Unfulfilled Commitments by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period](index=48&type=section&id=一、公司实际控制人、股东、关联方、收购人以及公司等承诺相关方在报告期内履行完毕及截至报告期末超期未履行完毕的承诺事项) No commitments by the company or related parties were fulfilled or overdue and unfulfilled during or as of the end of the reporting period - During the reporting period, the company had no commitments by its controlling shareholder, shareholders, related parties, acquirers, or the company that were fulfilled during the period or overdue and unfulfilled as of the end of the reporting period[152](index=152&type=chunk) [Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company](index=48&type=section&id=二、控股股东及其他关联方对上市公司的非经营性占用资金情况) There were no instances of non-operating funds being occupied by the controlling shareholder or other related parties from the listed company during the reporting period - During the reporting period, there were no instances of non-operating funds being occupied by the controlling shareholder or other related parties from the listed company[153](index=153&type=chunk) [Irregular External Guarantees](index=48&type=section&id=三、违规对外担保情况) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[154](index=154&type=chunk) [Appointment and Dismissal of Accounting Firms](index=48&type=section&id=四、聘任、解聘会计师事务所情况) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[155](index=155&type=chunk) [Explanations by the Board of Directors, Supervisory Board, and Audit Committee on the Accounting Firm's "Non-Standard Audit Report" for the Current Period](index=48&type=section&id=五、董事会、监事会、审计委员会对会计师事务所本报告期“非标准审计报告”的说明) As the semi-annual report was unaudited, there are no explanations regarding a "non-standard audit report" from the accounting firm for the current period - The company's semi-annual report was not audited, thus there are no explanations regarding a "non-standard audit report" from the accounting firm for the current period[155](index=155&type=chunk) [Board of Directors' Explanation of "Non-Standard Audit Report" for the Previous Year](index=48&type=section&id=六、董事会对上年度“非标准审计报告”相关情况的说明) The company has no explanations regarding a "non-standard audit report" for the previous year - The company has no explanations regarding a "non-standard audit report" for the previous year[156](index=156&type=chunk) [Bankruptcy and Reorganization Matters](index=48&type=section&id=七、破产重整相关事项) The company had no bankruptcy or reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[156](index=156&type=chunk) [Litigation Matters](index=48&type=section&id=八、诉讼事项) The company had no significant litigation, arbitration, or other litigation matters during the reporting period - The company had no significant litigation or arbitration matters during the reporting period[157](index=157&type=chunk) - The company had no other litigation matters[157](index=157&type=chunk) [Penalties and Rectification](index=49&type=section&id=九、处罚及整改情况) The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[158](index=158&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=49&type=section&id=十、公司及其控股股东、实际控制人的诚信状况) The company, its controlling shareholder, and actual controller have no integrity issues requiring disclosure - The company, its controlling shareholder, and actual controller have no integrity issues requiring disclosure[159](index=159&type=chunk) [Significant Related Party Transactions](index=49&type=section&id=十一、重大关联交易) The company had no significant related party transactions, including those related to daily operations, asset/equity transfers, joint investments, or financial dealings, during the reporting period - The company had no related party transactions related to daily operations during the reporting period[159](index=159&type=chunk) - The company had no related party transactions involving asset or equity acquisition/disposal during the reporting period[160](index=160&type=chunk) - The company had no related party transactions involving joint external investments during the reporting period[161](index=161&type=chunk) - The company had no related party creditor-debtor relationships during the reporting period[162](index=162&type=chunk) - There were no deposits, loans, credit lines, or other financial business between the company and related financial companies, or between financial companies controlled by the company and related parties[163](index=163&type=chunk)[164](index=164&type=chunk) - The company had no other significant related party transactions during the reporting period[165](index=165&type=chunk) [Significant Contracts and Their Performance](index=50&type=section&id=十二、重大合同及其履行情况) The company had no entrustment, contracting, leasing, significant guarantees, or other major contracts during the reporting period, with no material changes in existing contract performance - The company had no entrustment, contracting, or leasing situations during the reporting period[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) - The company had no significant guarantee situations during the reporting period[169](index=169&type=chunk) - The company had no other significant contracts during the reporting period[172](index=172&type=chunk) [Explanation of Other Significant Matters](index=50&type=section&id=十三、其他重大事项的说明) The company disclosed various significant matters, including subsidiary changes, share pledges, incentive plans, high-tech re-certification, project adjustments, and equity fund investments - The company disclosed matters such as the completion of industrial and commercial change registration by subsidiaries, and the pledging/unpledging of some shares by the actual controller[173](index=173&type=chunk)[174](index=174&type=chunk) - The company disclosed the draft 2025 Stock Appreciation Rights Incentive Plan and the draft New Growth (Phase III) Equity Incentive Plan[173](index=173&type=chunk) - The company passed the re-certification as a high-tech enterprise[173](index=173&type=chunk) - The company announced adjustments to the Hefei Integrated Circuit Key Process Materials Project to increase capacity and additional investment, as well as the investment and construction of a project for an annual output of **50,000 tons** of key integrated circuit process materials, along with a headquarters and R&D center[174](index=174&type=chunk) - The company announced its intention to invest in an equity investment fund[174](index=174&type=chunk) [Significant Matters of Company Subsidiaries](index=51&type=section&id=十四、公司子公司重大事项) No other significant matters occurred in the company's subsidiaries during the reporting period - No other significant matters occurred in the company's subsidiaries[175](index=175&type=chunk) [Share Changes and Shareholder Information](index=52&type=section&id=第六节%20股份变动及股东情况) This section details changes in the company's share capital, shareholder structure, and shareholdings of directors and management during the reporting period [Share Change Information](index=52&type=section&id=一、股份变动情况) Restricted shares decreased by 411,000, unrestricted shares increased by the same amount, and total share capital remained unchanged due to executive share release Share Change Overview | Item | Quantity Before Change (shares) | Percentage Before Change (%) | Net Change (+,-) (shares) | Quantity After Change (shares) | Percentage After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 35,065,435 | 11.19% | -411,000 | 34,654,435 | 11.06% | | II. Unrestricted Shares | 278,315,967 | 88.81% | 411,000 | 278,726,967 | 88.94% | | III. Total Shares | 313,381,402 | 100.00% | 0 | 313,381,402 | 100.00% | Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Released During Period (shares) | Restricted Shares Increased During Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | Planned Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shao Jianmin | 411,000 | 411,000 | 0 | 0 | Executive lock-up shares | 2025-4-28 | | **Total** | **411,000** | **411,000** | **0** | **0** | **--** | **--** | [Securities Issuance and Listing](index=53&type=section&id=二、证券发行与上市情况) The company had no securities issuance or listing during the reporting period - The company had no securities issuance or listing during the reporting period[181](index=181&type=chunk) [Number of Shareholders and Shareholding Information](index=53&type=section&id=三、公司股东数量及持股情况) As of the reporting period end, the company had 38,837 common shareholders, with key shareholders Wang Fuxiang, Shanghai Xinhui, and Shanghai Xinke acting in concert - As of the end of the reporting period, the total number of common shareholders was **38,837**[182](index=182&type=chunk) Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage (%) | Shares Held at End of Reporting Period (shares) | Change During Reporting Period (shares) | Restricted Shares Held (shares) | Unrestricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Fuxiang | Domestic Natural Person | 14.37% | 45,032,070 | 0 | 33,774,052 | 11,258,018 | Pledged | 12,000,000 | | Shanghai Xinhui Asset Management Co., Ltd. | Domestic Non-State-Owned Legal Person | 12.10% | 37,933,276 | 0 | 0 | 37,933,276 | Not applicable | 0 | | Shanghai Xinke Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 7.27% | 22,788,086 | 0 | 0 | 22,788,086 | Pledged | 6,070,000 | | Sun Huiming | Domestic Natural Person | 3.51% | 11,008,999 | 599,061 | 0 | 11,008,999 | Not applicable | 0 | | SINYANG INDUSTRIES & TRADING PTE LTD | Overseas Legal Person | 2.30% | 7,216,290 | 0 | 0 | 7,216,290 | Not applicable | 0 | | Jin Yeifei | Domestic Natural Person | 2.01% | 6,284,561 | -321,100 | 0 | 6,284,561 | Not applicable | 0 | | Yang Yanling | Domestic Natural Person | 1.29% | 4,053,600 | 99,000 | 0 | 4,053,600 | Not applicable | 0 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 1.09% | 3,403,492 | 1,164,361 | 0 | 3,403,492 | Not applicable | 0 | | Jin Yeling | Domestic Natural Person | 0.96% | 2,993,090 | -6,100 | 0 | 2,993,090 | Not applicable | 0 | | Guotai Junan Securities Co., Ltd. - Guolian An CSI All-Share Semiconductor Products and Equipment ETF | Domestic Non-State-Owned Legal Person | 0.74% | 2,326,671 | -136,346 | 0 | 2,326,671 | Not applicable | 0 | - Shareholders Wang Fuxiang, Shanghai Xinhui Asset Management Co., Ltd., and Shanghai Xinke Investment Co., Ltd. are related shareholders and act in concert[183](index=183&type=chunk)[184](index=184&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=55&type=section&id=四、董事、监事和高级管理人员持股变动) 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[185](index=185&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=56&type=section&id=五、控股股东或实际控制人变更情况) The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder did not change during the reporting period[186](index=186&type=chunk) - The company's actual controller did not change during the reporting period[186](index=186&type=chunk) [Preferred Share Information](index=57&type=section&id=六、优先股相关情况) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[187](index=187&type=chunk) [Bond-Related Information](index=58&type=section&id=第七节%20债券相关情况) This section confirms that the company had no bond-related activities or outstanding bonds during the reporting period [Bond-Related Information](index=58&type=section&id=债券相关情况) The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[189](index=189&type=chunk) [Financial Report](index=59&type=section&id=第八节%20财务报告) This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and notes on accounting policies and financial items [Audit Report](index=59&type=section&id=一、审计报告) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[191](index=191&type=chunk) [Financial Statements](index=59&type=section&id=二、财务报表) This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity for H1 2025 - This section includes the consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owner's equity, and parent company statement of changes in owner's equity[192](index=192&type=chunk)[196](index=196&type=chunk)[200](index=200&type=chunk)[205](index=205&type=chunk)[207](index=207&type=chunk)[209](index=209&type=chunk)[212](index=212&type=chunk)[219](index=219&type=chunk) [Company Basic Information](index=77&type=section&id=三、公司基本情况) Shanghai Xinyang Semiconductor Materials Co., Ltd., listed on the Shenzhen Stock Exchange, specializes in electronic and semiconductor materials, with Wang Su as legal representative and a registered capital of RMB 313,381,402.00 - Shanghai Xinyang Semiconductor Materials Co., Ltd. was established through overall restructuring on November 19, 2009, with a registered capital of **RMB 63.68 million**[224](index=224&type=chunk) - The company was listed on the ChiNext board of the Shenzhen Stock Exchange on June 29, 2011, with stock abbreviation "上海新阳" (Shanghai Xinyang) and stock code "**300236**"[226](index=226&type=chunk) - The company's legal representative is Wang Su, and its business scope includes manufacturing, processing, sales, and technical consulting services for chemical products, equipment products, and spare parts related to electronic technology, information technology, and semiconductor materials[230](index=230&type=chunk) - The company's registered capital has been changed to **RMB 313,381,402.00**[229](index=229&type=chunk) - The company owns subsidiaries such as Jiangsu Kople New Materials Co., Ltd. and Shanghai Xinke Micro Material Technology Co., Ltd., which form the scope of consolidated financial statements[231](index=231&type=chunk)[232](index=232&type=chunk) [Basis of Financial Statement Preparation](index=80&type=section&id=四、财务报表的编制基础) The company prepares its financial statements on a going concern basis, adhering to enterprise accounting standards, with no significant doubts about its ability to continue operations - The company prepares its financial statements on a going concern basis, in accordance with the 'Basic Accounting Standards for Business Enterprises' and other accounting standards[233](index=233&type=chunk) - After assessment, the company's going concern ability is good, and there are no factors that would raise significant doubt about its ability to continue as a going concern[234](index=234&type=chunk) [Significant Accounting Policies and Estimates](index=80&type=section&id=五、重要会计政策及会计估计) This section details the company's key accounting policies and estimates for financial reporting, covering areas like financial instruments, inventories, fixed assets, revenue recognition, and government grants - The company adheres to the requirements of enterprise accounting standards to truthfully and completely reflect financial position, operating results, and other information[235](index=235&type=chunk) - The accounting year runs from January 1 to December 31 of the Gregorian calendar, and the functional currency is RMB[236](index=236&type=chunk)[238](index=238&type=chunk) - Financial assets are classified into three categories based on the business model for managing them and their contractual cash flow characteristics: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk) - Inventories include raw materials, work-in-progress, finished goods, etc., presented at the lower of cost and net realizable value, with issued inventories accounted for using the weighted average method[298](index=298&type=chunk)[299](index=299&type=chunk) - Depreciation of fixed assets is calculated using the straight-line method, with depreciation periods of **5-30 years** for buildings and structures, and **5-10 years** for machinery and equipment[323](index=323&type=chunk) - Intangible assets include land use rights, software, patent rights, and trademark rights, measured at actual cost and amortized on a straight-line basis over their useful lives[328](index=328&type=chunk) - Revenue recognition identifies individual performance obligations based on the relationship between fulfilling performance obligations and customer payments, determining whether they are fulfilled over time or at a point in time[344](index=344&type=chunk)[345](index=345&type=chunk) - Government grants are classified as asset-related or income-related, either reducing the carrying amount of the asset or recognized as deferred income, or directly recognized in current profit or loss[352](index=352&type=chunk)[353](index=353&type=chunk) - Deferred income tax assets and liabilities are recognized based on the difference between the tax base of assets and liabilities and their carrying amounts[357](index=357&type=chunk) [Taxation](index=110&type=section&id=六、税项) The company and its subsidiary Jiangsu Kople New Materials Co., Ltd. enjoy a 15% enterprise income tax rate as high-tech enterprises, with export products subject to VAT exemption, offset, and refund Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable value-added amount | 6%, 13% | | Consumption Tax | Taxable sales amount | 4% | | Urban Maintenance and Construction Tax | Taxable turnover tax amount | 5%, 7% | | Enterprise Income Tax | Taxable income | 25% | | Local Education Surcharge | Taxable turnover tax amount | 2%, 1% | - The company was re-certified as a high-tech enterprise in December 2024, and will pay enterprise income tax at a reduced rate of **15%** from January 1, 2024, to December 31, 2026[388](index=388&type=chunk) - Subsidiary Jiangsu Kople New Materials Co., Ltd. obtained its high-tech enterprise certificate on November 6, 2023, and will pay enterprise income tax at a reduced rate of **15%** from January 1, 2023, to December 31, 2025[388](index=388&type=chunk) - Export products are subject to a "exemption, offset, and refund" export tax rebate policy for VAT[389](index=389&type=chunk) [Notes to Consolidated Financial Statement Items](index=111&type=section&id=七、合并财务报表项目注释) This section provides detailed notes on consolidated financial statement items, including cash, receivables, inventories, fixed assets, borrowings, revenue, costs, and net profit Ending Balances of Major Consolidated Financial Statement Items | Item | Ending Balance (RMB) | | :--- | :--- | | Cash and Bank Balances | 761,740,255.89 | | Notes Receivable | 239,356,795.74 | | Accounts Receivable | 658,518,773.96 | | Inventories | 391,949,590.69 | | Fixed Assets | 842,505,280.03 | | Construction in Progress | 110,856,458.54 | | Intangible Assets | 197,912,698.03 | | Short-Term Borrowings | 303,742,197.72 | | Notes Payable | 300,744,132.88 | | Accounts Payable | 251,201,632.51 | | Operating Revenue | 896,649,671.91 | | Operating Cost | 531,246,012.83 | | Net Profit | 133,453,724.38 | - Of the ending cash and bank balances, **RMB 74,676,186.73** is for acceptance bill deposits and **RMB 455,000,000.00** is for time deposits, with restricted ownership[391](index=391&type=chunk) - Ending balance of accounts receivable is **RMB 729,875,781.60**, with a bad debt provision of **RMB 71,357,007.64**[407](index=407&type=chunk)[409](index=409&type=chunk) - Ending carrying amount of long-term equity investments is **RMB 35,254,645.43**, primarily investments in associates[502](index=502&type=chunk) - Ending balance of other non-current financial assets is **RMB 385,628,329.44**, primarily including investments in Changcun Industrial Investment Fund, Jiangsu Boyan Electronic Technology Co., Ltd., and others[503](index=503&type=chunk) - Ending balance of construction in progress is **RMB 110,856,458.54**, with major projects including lithography laboratory renovation and fire protection, Hefei plant construction, and polishing slurry projects[519](index=519&type=chunk)[520](index=520&type=chunk) - Ending balance of deferred income tax assets is **RMB 16,512,886.13**, and deferred income tax liabilities is **RMB 280,014,200.28**[541](index=541&type=chunk)[543](index=543&type=chunk) - Current period operating revenue is **RMB 896,649,671.91**, of which main business revenue is **RMB 895,691,313.58**[615](index=615&type=chunk) - Current period R&D expenses are **RMB 121,760,496.27**, all of which are expensed R&D expenditures[623](index=623&type=chunk)[665](index=665&type=chunk) - Net cash flow from operating activities is **RMB 112,793,253.82**, net cash flow from investing activities is **-RMB 137,415,133.28**, and net cash flow from financing activities is **RMB 51,752,018.01**[651](index=651&type=chunk) [R&D Expenditures](index=167&type=section&id=八、研发支出) Total R&D expenditures for the period were RMB 121,760,496.27, entirely expensed, with previous capitalized R&D for photoresist projects transferred to intangible assets R&D Expenditure Overview | Item | Current Period Amount (RMB) | Previous Period Amount (RMB) | | :--- | :--- | :--- | | R&D Expenditures | 121,760,496.27 | 99,062,431.68 | | Of which: Expensed R&D Expenditures | 121,760,496.27 | 97,096,622.51 | | Capitalized R&D Expenditures | 0.00 | 1,965,809.17 | - The opening balance of capitalized R&D expenditures for photoresist projects, etc., amounting to **RMB 27,789,333.82**, has all been transferred to intangible assets, with an ending balance of **RMB 0**[667](index=667&type=chunk) [Changes in Consolidation Scope](index=168&type=section&id=九、合并范围的变更) There were no changes in the company's consolidation scope due to business combinations or loss of control over subsidiaries during the reporting period - No business combinations not under common control occurred in the current period[670](index=670&type=chunk) - No business combinations under common control occurred in the current period[674](index=674&type=chunk) - There were no transactions or events resulting in the loss of control over subsidiaries in the current period[677](index=677&type=chunk) [Interests in Other Entities](index=171&type=section&id=十、在其他主体中的权益) The company in subsidiaries includes direct or indirect control over 10 subsidiaries, including significant non-wholly owned subsidiary Jiangsu Kople New Materials, and interests in several associates Composition of the Enterprise Group | Subsidiary Name | Registered Capital (RMB) | Main Operating Location | Registered Location | Business Nature | Direct Shareholding (%) | Indirect Shareholding (%) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Kople New Materials Co., Ltd. | 62,318,000 | Jiangsu Province | Jiangsu Province | Coatings production and sales | 98.20% | | Business combination not under common control | | Jiangsu Kople Powder New Materials Technology Co., Ltd. | 20,000,000 | Jiangsu Province | Jiangsu Province | Coatings sales | | 100.00% | Establishment | | Jiangsu Youfu Micro Powder Technology Co., Ltd. | 10,000,000 | Jiangsu Province | Jiangsu Province | Wholesale trade | | 100.00% | Business combination not under common control | | Xinyang (Guangdong) Semiconductor Technology Co., Ltd. | 30,000,000 | Guangdong Province | Guangdong Province | Chemicals and equipment sales | 100.00% | | Establishment | | Shanghai Tehua Technology Co., Ltd. | 20,000,000 | Shanghai | Shanghai | Dicing production and sales | 100.00% | | Establishment | | Hefei Xinyang Semiconductor Materials Co., Ltd. | 200,000,000 | Anhui Province | Anhui Province | Semiconductor materials production and R&D | 100.00% | | Establishment | | Shanghai Xinke Micro Material Technology Co., Ltd. | 150,000,000 | Shanghai | Shanghai | Semiconductor materials R&D | 100.00% | | Business combination under common control | | Shanghai Huiyan Material Technology Co., Ltd. | 80,000,000 | Shanghai | Shanghai | Technology promotion and application services | 100.00% | | Business combination under common control | | Shanghai Chengquan Technology Center (Limited Partnership) | 20,000,000 | Shanghai | Shanghai | Software and information technology services | 75.00% | 9.00% | Establishment | | Shanghai Quanyang Technology Center (Limited Partnership) | 40,000,000 | Shanghai | Shanghai | Technology promotion and application services | 80.00% | 17.00% | Establishment | Significant Non-Wholly Owned Subsidiaries | Subsidiary Name | Minority Shareholding (%) | Current Period Profit/Loss Attributable to Minority Shareholders (RMB) | Dividends Declared to Minority Shareholders in Current Period (RMB) | Ending Balance of Minority Interests (RMB) | | :--- | :--- | :--- | :--- | :--- | | Jiangsu Kople New Materials Co., Ltd. | 1.80% | 148,395.04 | 0.00 | 9,282,427.22 | - The company holds interests in associates such as Xindongwei (Shanghai) Semiconductor Technology Co., Ltd. and Shanghai Xinxinxianglian Semiconductor Technology Co., Ltd[709](index=709&type=chunk)[688](index=688&type=chunk) [Government Grants](index=177&type=section&id=十一、政府补助) Government grants primarily relate to deferred income, with RMB 21,554,535.75 recognized in current profit and loss from various R&D and fiscal support projects Liability Items Involving Government Grants | Account Title | Opening Balance (RMB) | New Grants Added in Current Period (RMB) | Amount Included in Non-Operating Income in Current Period (RMB) | Amount Transferred to Other Income in Current Period (RMB) | Other Changes in Current Period (RMB) | Ending Ba

东方日升新能源股份有限公司 2025 年半年度报告 股票简称：东方日升 股票代码：300118 披露时 间: 2025 年 8 月 28 日 东方日升新能源股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容 的真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担 个别和连带的法律责任。 公司负责人林海峰、主管会计工作负责人张徐李及会计机构负责人(会计 主管人员)朱海峰声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 本半年度报告所涉及的公司未来发展的展望，经营计划等前瞻性陈述， 不构成对投资者的实质承诺，请投资者认真阅读，注意投资风险。 本报告第三节"管理层讨论与分析-公司未来发展的展望"中已详述公司 面临的风险因素，敬请投资者特别关注！ 公司计划不派发现金红利，不送红股，不以公积金转增股本。 1 | | | | 第一节 | 重要提示、目录和释义 | | 0 | | --- | --- | --- | --- | | 第二节 | 公司简介和主要财务指标 | | 6 ...

慧博云通科技股份有限公司 2025 年半年度报告全文 慧博云通科技股份有限公司 2025 年半年度报告 二〇二五年八月 1 慧博云通科技股份有限公司 2025 年半年度报告全文 所有董事均已出席了审议本次半年报的董事会会议。 本报告涉及未来计划等前瞻性陈述不构成公司对投资者的实质承诺，投资者及相关人士均应当对此 保持足够的风险认识，并且应当理解计划、预测与承诺之间的差异。 公司在本报告第三节"管理层讨论与分析"之"十、公司面临的风险和应对措施"部分，详细描述 了公司经营中可能存在的风险及应对措施，敬请投资者关注相关内容。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | 第一节 | 重要提示、目录和释义 | 2 | | --- | --- | --- | | 第二节 | 公司简介和主要财务指标 | 7 | | 第三节 | 管理层讨论与分析 10 | | | 第四节 | 公司治理、环境和社会 36 | | | 第五节 | 重要事项 39 | | | 第六节 | 股份变动及股东情况 43 | | | 第七节 | 债券相关情况 51 | | | 第八节 | 财务报告 52 | | 第一节 重要提示、目 ...

[Part I Important Notice, Table of Contents, and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) This section provides essential disclaimers, outlines the report's structure, and defines key terminology for clarity [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's board, supervisors, and senior management guarantee the report's truthfulness, accuracy, and completeness; no cash dividends, bonus shares, or capital increase from capital reserves are planned; forward-looking statements are not substantial commitments - Company's board, supervisors, and senior management guarantee report content truthfulness, accuracy, and completeness, assuming legal responsibility[4](index=4&type=chunk) - Company's responsible person, chief accountant, and head of accounting department declare financial reports are true, accurate, and complete[4](index=4&type=chunk) - Company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5](index=5&type=chunk) - Forward-looking statements regarding future plans and development strategies in this report do not constitute substantial commitments; investors should be aware of investment risks[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) This report comprises eight main chapters covering important notices, company profile, management discussion and analysis, corporate governance, significant events, share changes, bond information, and financial reports - The report includes eight main chapters, covering important notices, company profile, management discussion and analysis, corporate governance, significant events, share changes, bond information, and financial reports[7](index=7&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines key terms and entities used in the report, including the company and its main subsidiaries, as well as core products like lithium-ion battery electrolyte materials and consumer chemicals - Definitions provided for the company and its subsidiaries (e.g., Sipai, Saimaisen, Netherlands Company, US Holding Company, Georgia Company, Haike Xinyuan (Hubei), Xinyuan Haoke, Xinweiyuan, Baoshan Branch)[14](index=14&type=chunk) - Detailed explanations of main product names, such as lithium-ion battery electrolytes, electrolyte solvents (DMC, EMC, DEC, PC, EC), carbonate series products, propylene glycol (PG), dipropylene glycol, 1,3-butanediol (BDO), hexanediol, pentanediol, vinylene carbonate (VC), fluoroethylene carbonate (FEC), ethylene sulfate (DTD), lithium bis(fluorosulfonyl)imide (LiFSI), lithium difluoro(oxalate)borate (LiODFB), lithium tetrafluoroborate (LiBF4)[14](index=14&type=chunk)[15](index=15&type=chunk) - The reporting period is explicitly defined as January 1, 2025, to June 30, 2025[15](index=15&type=chunk) [Part II Company Profile and Key Financial Indicators](index=7&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section provides an overview of the company's basic information, contact details, and key financial performance metrics for the reporting period [1. Company Profile](index=7&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) The company's stock abbreviation is "Haike Xinyuan," stock code 301292, listed on the Shenzhen Stock Exchange, with Ma Lijun as legal representative - Company stock abbreviation: Haike Xinyuan, stock code: **301292**, listed on: Shenzhen Stock Exchange[17](index=17&type=chunk) - The company's legal representative is Ma Lijun[17](index=17&type=chunk) [2. Contact Person and Information](index=7&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) The company's Board Secretary is Wei Binbin, Securities Affairs Representative is Li Ling, and the contact address is No. 23 Zoucheng Road, Dongying High-tech Industrial Development Zone, Dongying City, Shandong Province - Board Secretary is Wei Binbin, Securities Affairs Representative is Li Ling[18](index=18&type=chunk) - Contact address is No. 23 Zoucheng Road, Dongying High-tech Industrial Development Zone, Dongying City, Shandong Province, with phone and fax numbers both 0546-7061006[18](index=18&type=chunk) [3. Other Information](index=7&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) During the reporting period, there were no changes in the company's registered address, office address, website, email, information disclosure, or registration status, as detailed in the 2024 annual report - No changes in the company's registered address, office address and postal code, website, or email during the reporting period[19](index=19&type=chunk) - No changes in information disclosure and archiving locations during the reporting period[20](index=20&type=chunk) - No changes in the company's registration status during the reporting period[21](index=21&type=chunk) [4. Key Accounting Data and Financial Indicators](index=8&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) During the reporting period, the company's operating revenue increased by 27.92% year-on-year, but net profit attributable to shareholders remained negative, with losses narrowing by 61.21%; net cash flow from operating activities decreased by 27.45%, and total assets and net assets attributable to shareholders both declined Key Accounting Data and Financial Indicators (Consolidated Statements) | Indicator | Current Reporting Period (Yuan) | Same Period Last Year (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,316,232,184.55 | 1,810,669,207.43 | 27.92% | | Net Profit Attributable to Shareholders of Listed Company | -42,830,580.73 | -110,424,224.13 | 61.21% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses | -49,758,176.37 | -114,564,990.10 | 56.57% | | Net Cash Flow from Operating Activities | -248,286,572.39 | -194,817,989.28 | -27.45% | | Basic Earnings Per Share (Yuan/share) | -0.19 | -0.50 | 62.00% | | Diluted Earnings Per Share (Yuan/share) | -0.19 | -0.50 | 62.00% | | Weighted Average Return on Net Assets | -1.51% | -3.60% | 2.09% | | **Period-End Indicators** | **Current Period-End (Yuan)** | **Previous Year-End (Yuan)** | **Change from Previous Year-End** | | Total Assets | 7,293,710,701.56 | 8,332,610,930.36 | -12.47% | | Net Assets Attributable to Shareholders of Listed Company | 2,809,899,804.50 | 2,850,859,938.67 | -1.44% | [5. Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=8&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under international or overseas accounting standards and Chinese accounting standards - No differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[23](index=23&type=chunk) - No differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[24](index=24&type=chunk) [6. Non-recurring Gains and Losses and Amounts](index=8&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) The company's total non-recurring gains and losses for the reporting period amounted to **6,927,595.64 Yuan**, primarily from government subsidies, fair value changes of financial assets, and disposal gains/losses of non-current assets; no reclassification of non-recurring items as recurring Non-recurring Gains and Losses and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains and Losses from Disposal of Non-current Assets | 17,824.74 | | Government Subsidies Included in Current Profit and Loss (Excluding Those with Continuous Impact) | 4,782,768.84 | | Gains and Losses from Changes in Fair Value and Disposal of Financial Assets and Liabilities, Excluding Hedging Activities | 2,695,291.60 | | Other Non-operating Income and Expenses | -186,662.96 | | Other Income and Loss Items Meeting the Definition of Non-recurring Gains and Losses | 103,844.07 | | Less: Income Tax Impact | 769,252.47 | | Impact on Minority Interests (After Tax) | -283,781.82 | | **Total** | **6,927,595.64** | - The company has no other specific situations where income and loss items meet the definition of non-recurring gains and losses[27](index=27&type=chunk) - The company has not reclassified non-recurring gains and losses listed in "Interpretive Announcement No. 1 on Information Disclosure by Companies Issuing Securities to the Public—Non-recurring Gains and Losses" as recurring gains and losses[28](index=28&type=chunk) [Part III Management Discussion and Analysis](index=10&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section analyzes the company's main business activities, core competencies, financial performance, investment status, and risks, along with management's strategies and responses [1. Main Business Activities During the Reporting Period](index=10&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company focuses on lithium-ion battery electrolyte materials and consumer chemicals, driven by high growth in new energy vehicles, energy storage, and 3C markets, alongside steady growth in consumer chemicals, achieving performance growth through strategic cooperation, market opportunities, and operational excellence [(I) Industry Development Status](index=10&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E6%89%80%E5%A4%84%E8%A1%8C%E4%B8%9A%E5%8F%91%E5%B1%95%E7%8A%B6%E5%86%B5) In H1 2025, global new energy vehicle sales grew by 31.8%, China's NEV production and sales increased by 41.4% and 40.3% respectively; global power battery installations rose by 37.3%, and battery energy storage systems by 54%; China's electrolyte shipments grew by 45%, while cosmetics retail sales increased by 2.9%, and propylene glycol domestic consumption and exports grew by 3.17% and 31.09% respectively - From January to June 2025, global new energy vehicle sales reached **9.469 million units**, a year-on-year increase of **31.8%**[30](index=30&type=chunk) - In H1 2025, China's new energy vehicle production and sales completed **6.968 million units** and **6.937 million units** respectively, with year-on-year increases of **41.4%** and **40.3%**[30](index=30&type=chunk) - In H1 2025, global power battery installations reached **504.4 GWh**, a year-on-year increase of **37.3%**; global battery energy storage system installations totaled **86.7 GWh**, a year-on-year increase of **54%**[30](index=30&type=chunk) - In H1 2025, China's electrolyte shipments reached **870,000 tons**, a year-on-year increase of **45%**[31](index=31&type=chunk) - From January to June 2025, China's cosmetics retail sales reached **229.1 billion Yuan**, a year-on-year increase of **2.9%**[31](index=31&type=chunk) - In H1 2025, domestic apparent consumption of propylene glycol is estimated at **189,000 tons**, an increase of **3.17%** year-on-year; total exports approximately **140,000 tons**, an increase of **31.09%** year-on-year[31](index=31&type=chunk) [(II) Main Business Activities of the Company](index=10&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5) The company specializes in R&D, production, and sales of carbonate series lithium-ion battery electrolyte solvents, additives, and high-end propylene glycol, implementing a "lithium battery materials + consumer chemicals" dual-driven strategy - The company specializes in the R&D, production, and sales of carbonate series lithium-ion battery electrolyte solvents, additives, and high-end propylene glycol and other fine chemicals[31](index=31&type=chunk) - The company implements a "lithium battery materials + consumer chemicals" dual-driven strategy[31](index=31&type=chunk) - Lithium-ion battery materials primarily include electrolyte solvents such as DMC, DEC, EMC, EC, PC, and lithium salts and additives such as LiFSI, VC, FEC, DTD, LiODFB, LiBF4[32](index=32&type=chunk) - Consumer chemicals mainly include food-grade and pharmaceutical-grade propylene glycol, 1,3-butanediol, fragrance-grade dipropylene glycol, industrial propylene glycol, and dipropylene glycol series products[32](index=32&type=chunk) [(III) Business Model](index=10&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company has adopted DuPont's IBE integrated operational excellence management system, establishing independent R&D, procurement, production, and sales models, focusing on innovation, supply chain resilience, market-oriented flexible production, and direct sales to major domestic and international chemical enterprises and regional distributors - The company has introduced DuPont's IBE integrated operational excellence management system, establishing independent and complete R&D, procurement, production, and sales models[34](index=34&type=chunk) - In R&D, four major platforms have been built: new energy materials, electronic-grade high-purity chemicals, electrolyte R&D and testing, and battery preparation and evaluation[34](index=34&type=chunk) - In procurement, the company strengthens supply chain stability and collaborative innovation, controlling costs through centralized procurement and economies of scale[34](index=34&type=chunk) - In production, the company is market-oriented, achieving digital management and maximizing economic benefits through advanced technology and flexible transformation[35](index=35&type=chunk) - In sales, a direct sales model is adopted, with customers categorized into end-users and regional distributors[35](index=35&type=chunk) [(IV) Market Position](index=11&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E5%B8%82%E5%9C%BA%E5%9C%B0%E4%BD%8D) The company is a global leader in lithium-ion battery electrolyte solvents, maintaining its top market share through leading technology, a comprehensive product line, and multi-base layout advantages; in consumer chemicals, it is a major domestic producer of food-grade and pharmaceutical-grade polyols and the earliest to achieve stable mass production of bio-based 1,3-butanediol, significantly promoting domestic substitution - The company is a global leader in lithium-ion battery electrolyte solvents, holding a leading position in the electrolyte solvent industry[35](index=35&type=chunk) - The company actively expands into new lithium battery electrolyte additives, solid electrolytes, and new solvent products, offering one-stop services[35](index=35&type=chunk) - The company is one of the main domestic producers of food-grade and pharmaceutical-grade polyol products, and also the earliest enterprise to achieve stable mass production of bio-based 1,3-butanediol in China[36](index=36&type=chunk) [(V) Key Performance Drivers](index=11&type=section&id=%EF%BC%88%E4%BA%94%EF%BC%89%E4%B8%BB%E8%A6%81%E7%9A%84%E4%B8%9A%E7%BB%A9%E9%A9%B1%E5%8A%A8%E5%9B%A0%E7%B4%A0) The company's performance growth is primarily driven by deepened strategic cooperation with downstream leaders, high growth opportunities in the new energy sector (electric vehicles and energy storage), high-quality development in the consumer chemicals industry, and continuous efforts in operational excellence and cost reduction - Deepened strategic cooperation, establishing stable relationships with downstream leading enterprises to secure large orders and raw material supply[36](index=36&type=chunk) - Rapid growth in the new energy vehicle and energy storage industries, with electric vehicle market growth projected at **20%** and energy storage market growth exceeding **30%** in 2025[36](index=36&type=chunk) - High-quality development of the consumer chemicals industry, with the accelerated rise of domestic brands and policy support for industry transformation towards high-end and intelligent products[37](index=37&type=chunk)[38](index=38&type=chunk) - Implementation of operational excellence, achieving comprehensive cost reduction and efficiency improvement through new technology applications, process optimization, supply chain management, and marketing channel integration[38](index=38&type=chunk) [2. Analysis of Core Competencies](index=12&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies include continuous R&D innovation, a comprehensive product system, deep customer engagement, agile global supply chain, strengthened cost control, and a robust talent development and incentive system, supported by 116 authorized patents and strategic partnerships with industry leaders - The company possesses independent intellectual property rights for its entire industry chain core technologies; as of June 30, 2025, it has obtained **116 authorized patents** (**55 invention patents**, **61 utility model patents**) and participated in the formulation of **12 national/industry/group standards**[39](index=39&type=chunk) - The company is one of the few domestic manufacturers capable of simultaneously supplying **5 types of lithium battery carbonate solvents and additives**, offering one-stop services[40](index=40&type=chunk) - The company has established long-term strategic partnerships with leading electrolyte enterprises such as Tinci Materials, BYD, Rontec, Enchem, Soulbrain, and Mitsubishi, with products covering global renowned automakers and lithium-ion battery giants like Tesla, BYD, CATL, LG, Samsung SDI, and Panasonic[42](index=42&type=chunk) - The company has strategically deployed three production bases in Dongying (Shandong), Lianyungang (Jiangsu), and Yichang (Hubei), and has completed the layout of European and American subsidiaries and warehousing bases, forming a "local warehousing + rapid response" delivery system[42](index=42&type=chunk) - The company continuously implements an operational excellence mechanism, deepening cost reduction and efficiency improvement through technological innovation, process optimization, supply chain management, and marketing channel integration[43](index=43&type=chunk) - A separation mechanism for evaluation and appointment has been established to expand development opportunities for high-value creation positions, stimulate employee enthusiasm, and build a systematic training and empowerment system to cultivate talent[43](index=43&type=chunk)[44](index=44&type=chunk) [3. Analysis of Main Business](index=13&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, the company's operating revenue increased by 27.92% year-on-year, mainly due to a 41.21% growth in carbonate series product revenue and a 5.70% increase in gross profit margin; administrative expenses significantly decreased by 51.73% due to reduced downtime losses; net cash flow from investment activities increased by 112.83% due to reduced project payments and increased net inflow from wealth management; net cash flow from financing activities sharply decreased by 93.85% due to reduced borrowings and increased repayment of borrowings Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (Yuan) | Same Period Last Year (Yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,316,232,184.55 | 1,810,669,207.43 | 27.92% | | | Operating Cost | 2,233,403,255.26 | 1,778,948,479.53 | 25.55% | | | Selling Expenses | 8,675,366.72 | 8,263,584.88 | 4.98% | | | Administrative Expenses | 33,615,726.60 | 69,634,121.98 | -51.73% | Mainly due to reduced downtime losses in the reporting period | | Financial Expenses | 24,935,478.36 | 22,427,311.78 | 11.18% | | | Income Tax Expense | -7,676,478.18 | -8,431,474.43 | 8.95% | | | R&D Investment | 76,027,532.56 | 62,542,367.98 | 21.56% | | | Net Cash Flow from Operating Activities | -248,286,572.39 | -194,817,989.28 | -27.45% | | | Net Cash Flow from Investment Activities | 43,277,469.97 | -337,285,372.89 | 112.83% | Mainly due to reduced cash payments for projects and increased net inflow from wealth management in the reporting period | | Net Cash Flow from Financing Activities | 29,303,792.40 | 476,756,764.52 | -93.85% | Mainly due to reduced borrowings and increased repayment of borrowings in the reporting period | | Net Increase in Cash and Cash Equivalents | -173,272,727.46 | -50,162,910.27 | -245.42% | Mainly due to increased working capital occupation and cash payments for debt repayment in the reporting period | Product or Service Information Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Profit Margin | Change in Operating Revenue Year-on-Year | Change in Operating Cost Year-on-Year | Change in Gross Profit Margin Year-on-Year | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Carbonate Series | 1,688,384,960.13 | 1,641,939,026.53 | 2.75% | 41.21% | 33.39% | 5.70% | | Propylene Glycol | 403,955,548.37 | 387,447,208.20 | 4.09% | -1.23% | -0.12% | -1.07% | Production and Sales of Different Products or Businesses | Product | Capacity | Capacity Under Construction | Capacity Utilization Rate | Output | | :--- | :--- | :--- | :--- | :--- | | Carbonate Series | 386871.73 | 23000 | 99.86% | 386337.84 | | Propylene Glycol | 52360.34 | | 127.53% | 66774.58 | | Additives | 2083.33 | 8200 | 95.98% | 1999.55 | [4. Analysis of Non-Core Business](index=15&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, non-core businesses negatively impacted total profit, with positive contributions from investment income and fair value changes, but negative impacts from asset impairment and credit impairment losses; other income primarily comprised input tax deductions and government subsidies Impact of Non-Core Business on Total Profit | Item | Amount (Yuan) | Proportion of Total Profit | Explanation of Formation Reason | Is it Sustainable | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 38,699.09 | -0.06% | Mainly income from purchasing wealth management products | No | | Fair Value Change Gains/Losses | 2,656,592.51 | -4.33% | Mainly fair value changes of trading financial assets | No | | Asset Impairment | -409,209.49 | 0.67% | Mainly inventory write-down losses | No | | Non-operating Income | 168,166.01 | -0.27% | Mainly received liquidated damages and fines | No | | Non-operating Expenses | 337,004.23 | -0.55% | Mainly compensation payments | No | | Other Income | 19,871,314.38 | -32.40% | Mainly received input tax deductions and government subsidies | No | | Credit Impairment Losses | -15,585,312.31 | 25.41% | Mainly bad debt provisions for accounts receivable, accounts receivable financing, and other receivables | No | [5. Analysis of Assets and Liabilities](index=15&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, the company's total assets decreased by 12.47% year-on-year; monetary funds significantly decreased due to a reduction in other monetary funds; accounts receivable increased due to higher operating revenue; changes in fixed assets and construction in progress were mainly due to transfers from construction to fixed assets; short-term borrowings decreased due to a reduction in discounted unexpired acceptance bills Significant Changes in Asset Composition | Item | Amount at End of Reporting Period (Yuan) | Proportion of Total Assets | Amount at End of Previous Year (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 821,573,859.63 | 11.26% | 1,851,307,205.19 | 22.22% | -10.96% | Other monetary funds decreased during the reporting period | | Accounts Receivable | 1,231,665,041.13 | 16.89% | 941,151,210.01 | 11.29% | 5.60% | Due to increased operating revenue during the reporting period | | Inventory | 217,267,307.89 | 2.98% | 204,543,731.74 | 2.45% | 0.53% | No significant change | | Fixed Assets | 2,892,225,110.37 | 39.65% | 2,264,325,148.18 | 27.17% | 12.48% | Due to transfer from construction in progress to fixed assets during the reporting period | | Construction in Progress | 1,142,392,602.45 | 15.66% | 1,705,389,308.34 | 20.47% | -4.81% | Due to transfer from construction in progress to fixed assets during the reporting period | | Short-term Borrowings | 1,442,209,237.78 | 19.77% | 2,454,540,863.60 | 29.46% | -9.69% | Due to reduced discounted unexpired acceptance bills during the reporting period | - No significant changes in the measurement attributes of the company's main assets during the reporting period[58](index=58&type=chunk) - Information on restricted asset rights can be found in Section VIII, Item 7, Article 17, Assets with Restricted Ownership or Use Rights[58](index=58&type=chunk) [6. Analysis of Investment Status](index=17&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) During the reporting period, the company's investment decreased by 18.14% year-on-year; ongoing significant non-equity investment projects include a 12,700-ton additive project and a power battery high-end materials and supporting project, both under construction with some already in operation; the company holds financial assets measured at fair value, primarily trading financial assets and accounts receivable financing; wealth management transactions amounted to **551.30 million Yuan**, with an outstanding balance of **110.591 million Yuan** at period-end Investment Amount During the Reporting Period | Indicator | Investment Amount During Reporting Period (Yuan) | Investment Amount in Same Period Last Year (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 205,843,547.32 | 251,459,674.81 | -18.14% | Significant Non-Equity Investments in Progress | Project Name | Investment Method | Is it Fixed Asset Investment | Industry Involved in Investment Project | Amount Invested in Current Reporting Period (Yuan) | Cumulative Actual Investment Amount at Period-End (Yuan) | Project Progress | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 12,700-ton Additive Project | Self-built | Yes | Chemical Raw Materials and Chemical Products Manufacturing | 53,025,580.39 | 1,315,920,237.03 | 98.83% | | Power Battery High-end Materials and Supporting Project | Self-built | Yes | Chemical Raw Materials and Chemical Products Manufacturing | 71,253,079.62 | 111,336,380.11 | 69.20% | Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (Yuan) | Fair Value Change Gains/Losses for Current Period (Yuan) | Amount Purchased in Current Period (Yuan) | Amount Sold in Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 245,750,350.10 | 634,989.50 | 551,299,981.54 | 683,383,245.40 | 113,032,096.74 | | Derivative Financial Assets | 1,010,184.59 | 1,004,566.52 | | | 2,014,751.11 | | Accounts Receivable Financing | 139,563,655.87 | | | | 144,258,598.43 | | **Total Above** | **386,324,190.56** | **369,577.02** | **551,299,981.54** | **683,383,245.40** | **259,305,446.28** | - Wealth management transactions during the reporting period amounted to **551.30 million Yuan**, with an outstanding balance of **110.591 million Yuan** at period-end[68](index=68&type=chunk) [7. Significant Asset and Equity Sales](index=18&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company did not sell any significant assets or equity during the reporting period - The company did not sell significant assets during the reporting period[70](index=70&type=chunk) - The company did not sell significant equity during the reporting period[71](index=71&type=chunk) [8. Analysis of Major Holding and Participating Companies](index=19&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) The company's main subsidiaries include Jiangsu Sipai New Energy Technology Co., Ltd., Hubei Xinyuan Haoke New Materials Co., Ltd., Hi-tech Spring Europe B.V., and Haike Xinyuan Materials Technology (Hubei) Co., Ltd., with Jiangsu Sipai and Hubei Xinyuan Haoke significantly impacting the company's operating revenue and net profit Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Registered Capital (Ten Thousand Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Sipai New Energy Technology Co., Ltd. | Subsidiary | 50000 | 2,674,386,997.57 | 1,279,065,076.09 | 1,194,738,269.70 | -19,829,269.69 | -18,449,222.77 | | Hubei Xinyuan Haoke New Materials Co., Ltd. | Subsidiary | 50000 | 1,468,900,077.26 | 285,723,094.56 | 677,752,738.85 | -31,813,850.28 | -31,816,502.32 | | Hi-tech Spring Europe B.V. | Subsidiary | 100万欧元 | 79,201,341.40 | 2,114,583.82 | 60,107,092.82 | 13,155,954.72 | 13,155,954.72 | | Haike Xinyuan Materials Technology (Hubei) Co., Ltd. | Subsidiary | 50000 | 1,651,697,864.43 | 454,087,653.93 | 82,053,767.42 | 25,440,717.46 | 24,882,698.83 | [9. Structured Entities Controlled by the Company](index=21&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) During the reporting period, the company had no structured entities under its control - The company had no structured entities under its control during the reporting period[74](index=74&type=chunk) [10. Risks Faced by the Company and Countermeasures](index=21&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces risks from industry policy fluctuations, product price volatility, raw material price fluctuations, and safety/environmental concerns, which it addresses through technology and market leadership, long-term strategic partnerships, innovation, cost control, and robust safety management systems - Industry policy fluctuation risk: The gradual phasing out of national new energy vehicle financial subsidy policies may affect the lithium battery industry chain material market. The company responds by enhancing cost competitiveness, developing fine chemical alcohol businesses, and bio-based products[75](index=75&type=chunk) - Product price fluctuation risk: Oversupply of upstream materials for lithium battery electrolytes and price volatility adversely affect performance. The company responds by signing long-term contracts with leading downstream customers, technological innovation, and cost control[75](index=75&type=chunk) - Raw material price fluctuation risk: Fluctuations in major raw material prices significantly impact production costs and operating performance. The company responds by tracking market changes, annual framework procurement, dynamic inventory management, and process technological innovation[76](index=76&type=chunk) - Safety production and environmental protection risks: Production processes may lead to safety accidents or environmental pollution. The company responds by improving its safety management system, implementing the DuPont safety system, and increasing investment in safety and environmental protection[76](index=76&type=chunk) [11. Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period](index=22&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E7%99%BB%E8%AE%B0%E8%A1%A8) During the reporting period, the company hosted various research activities, including institutional investors, through online roadshow platforms and phone calls, primarily discussing company products, operations, management, and industry development - On May 9, 2025, an online exchange was held via the Flush roadshow platform, with all investors participating, discussing company products, operations, and management[77](index=77&type=chunk) - On June 25, 2025, a phone call via Tencent Meeting hosted institutions such as Huashi Investment, Xiamen C&D, and Harvest Fund, discussing company products, operations, industry development, and management[77](index=77&type=chunk)[78](index=78&type=chunk) [12. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=23&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company formulated and approved its "Market Value Management System" on December 23, 2024, to standardize market value management, enhance company quality, and improve investor returns; no valuation enhancement plan was disclosed - The company formulated and approved the "Market Value Management System" on December 23, 2024, at the fifteenth meeting of the second board of directors[79](index=79&type=chunk) - The company did not disclose a valuation enhancement plan[79](index=79&type=chunk) [13. Implementation of "Quality and Return Dual Improvement" Action Plan](index=23&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%22%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%22%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company did not disclose an announcement regarding its "Quality and Return Dual Improvement" action plan - The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan[80](index=80&type=chunk) [Part IV Corporate Governance, Environment, and Society](index=23&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) This section details changes in the company's governance structure, profit distribution, employee incentives, environmental disclosures, and social responsibility initiatives [1. Changes in Directors, Supervisors, and Senior Management](index=23&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) There were no changes in the company's directors, supervisors, and senior management during the reporting period - No changes occurred in the company's directors, supervisors, and senior management during the reporting period[81](index=81&type=chunk) [2. Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Reporting Period](index=24&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[82](index=82&type=chunk) [3. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=24&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company had no equity incentive plans but implemented an employee stock ownership plan during the reporting period, holding 851,100 shares (0.38% of total share capital), funded by employee compensation and self-raised funds; directors, supervisors, and senior management hold shares within this plan, with an amortization expense of **343,915.33 Yuan** recorded in other capital reserves - No equity incentive plans during the reporting period[83](index=83&type=chunk) - The total number of shares held by all effective employee stock ownership plans during the reporting period was **851,100 shares**, accounting for **0.38%** of the listed company's total share capital[83](index=83&type=chunk) - Funds for the employee stock ownership plan originated from employees' legal compensation, self-raised funds, and other financing methods permitted by laws and regulations[83](index=83&type=chunk) - Ma Lijun (Director, General Manager) holds **155,000 shares**, Wei Binbin (Director, CFO, Board Secretary) holds **57,100 shares**, and Li Yong (Supervisor) holds **43,000 shares**[83](index=83&type=chunk) - During the reporting period, the amortization expense for the company's employee stock ownership plan was **343,915.33 Yuan**, correspondingly increasing other capital reserves[85](index=85&type=chunk) [4. Environmental Information Disclosure](index=26&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The company and its three major subsidiaries (Shandong Haike Xinyuan, Hubei Xinyuan Haoke, Jiangsu Sipai New Energy) are all included in the list of enterprises required to disclose environmental information by law, with corresponding inquiry indexes provided - The company and its **3 major subsidiaries** are included in the list of enterprises required to disclose environmental information by law[86](index=86&type=chunk) - Shandong Haike Xinyuan Materials Technology Co., Ltd., Hubei Xinyuan Haoke New Materials Co., Ltd., and Jiangsu Sipai New Energy Technology Co., Ltd. all have inquiry indexes for their legally disclosed environmental information reports[86](index=86&type=chunk) [5. Social Responsibility](index=26&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company actively fulfills its corporate social responsibility, including New Year greetings to elderly residents in Xixianhe Village, fire department safety support for local communities, purchasing unsold pears to aid farmers, and providing employment opportunities for migrant workers in Zhijiang City - Before the Spring Festival, the company delivered New Year goods worth **20,000 Yuan** to elderly residents in Xixianhe Village[87](index=87&type=chunk) - The company's fire department provided fire safety training and hazard inspections for surrounding communities and villagers, and assisted in handling **6 fire incidents**[87](index=87&type=chunk) - In response to government calls, the company purchased **30 boxes of pears** as "cooling relief" supplies, helping fruit farmers in Bailizhou Town, Zhijiang City, solve the problem of unsold produce[87](index=87&type=chunk) - The company collaborated with a third-party labor service company to provide low-skilled employment opportunities, such as packaging and cleaning, for **117 migrant workers** from villages and towns surrounding Zhijiang Yaojiagang Chemical Industrial Park[88](index=88&type=chunk) [Part V Significant Matters](index=28&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section covers important commitments, related party transactions, litigation, and other significant events affecting the company during the reporting period [1. Commitments Fulfilled and Overdue Unfulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and Other Committed Parties During and as of the End of the Reporting Period](index=28&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) During the reporting period, various commitments from the controlling shareholder Shandong Haike Holding Co., Ltd., actual controller Yang Xiaohong, and certain directors, supervisors, and senior management, including share lock-up, share reduction, dividend, non-competition/related party transactions/fund occupation, share price stabilization, and immediate return dilution compensation measures, were either being fulfilled or had been completed; some shareholders' share lock-up periods were automatically extended by six months due to the share price falling below the issue price - Shandong Haike Holding Co., Ltd. and Yang Xiaohong's share lock-up commitments are being fulfilled, with the lock-up period automatically extended by **6 months** due to the share price being below the issue price[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - The share lock-up commitments of Cui Zhiqiang, Li Ling, Li Yong, Liu Meng, Teng Wenbin, Wu Leilei, Zhang Shengan, and Zhang Zaizhong have been fulfilled[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) - Shandong Haike Holding Co., Ltd.'s share reduction commitment is being fulfilled, pledging to reduce holdings by no more than **25%** of the total shares held at the end of the previous year within two years after the lock-up period expires, with a reduction price not lower than the issue price[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) - The share price stabilization commitments of the company, Shandong Haike Holding Co., Ltd., Yang Xiaohong, Cui Zhiqiang, Wu Leilei, and Zhang Zaizhong are being fulfilled[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - The commitments regarding non-competition, related party transactions, and fund occupation by the company, Shandong Haike Holding Co., Ltd., Yang Xiaohong, Cui Zhiqiang, Li Ling, Li Yong, Wang Aidong, Wu Leilei, and Zhang Zaizhong are being fulfilled[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) - The company, Shandong Haike Holding Co., Ltd., and Yang Xiaohong committed to actively implement measures to compensate for the dilution of immediate returns, including strengthening the management of raised funds, accelerating the investment progress of fundraising projects, improving profitability, and strengthening the investor return system[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - The company, Shandong Haike Holding Co., Ltd., and Yang Xiaohong committed that the prospectus and other information disclosure materials for the initial public offering are true, accurate, and complete, without false records, misleading statements, or major omissions, and pledged to repurchase new shares according to law if the listing conditions are not met[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk) [2. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties of the Listed Company](index=74&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the listed company - During the reporting period, there was no non-operating fund occupation by controlling shareholders or other related parties of the listed company[137](index=137&type=chunk) [3. Irregular External Guarantees](index=74&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) During the reporting period, the company had no irregular external guarantees - The company had no irregular external guarantees during the reporting period[138](index=138&type=chunk) [4. Appointment and Dismissal of Accounting Firms](index=74&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[139](index=139&type=chunk) [5. Explanation by the Board of Directors, Supervisory Board, and Audit Committee on the "Non-Standard Audit Report" for the Current Period](index=74&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E3%80%81%E5%AE%A1%E8%AE%A1%E5%A7%94%E5%91%98%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9A%84%E8%AF%B4%E6%98%8E) There was no non-standard audit report for the company during the reporting period - There was no non-standard audit report for the company during the reporting period[140](index=140&type=chunk) [6. Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year](index=74&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) There was no non-standard audit report for the company during the reporting period - There was no non-standard audit report for the company during the reporting period[140](index=140&type=chunk) [7. Bankruptcy and Reorganization Matters](index=74&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) No bankruptcy or reorganization matters occurred for the company during the reporting period - No bankruptcy or reorganization matters occurred for the company during the reporting period[140](index=140&type=chunk) [8. Litigation Matters](index=74&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) During the reporting period, the company had no significant litigation or arbitration matters; other litigation matters primarily involved payment disputes with Luoyang Dasheng New Energy Development Co., Ltd. and Hunan Oubiao Cosmetics Co., Ltd., some of which have been concluded in the first instance, ruling the defendants to pay goods and liquidated damages - The company had no significant litigation or arbitration matters during this reporting period[141](index=141&type=chunk) - The company has a payment dispute with Luoyang Dasheng New Energy Development Co., Ltd., involving **3.65 million Yuan**, which has been concluded in the first instance, ruling Dasheng Company to pay for goods and liquidated damages[142](index=142&type=chunk) - The company has a payment dispute with Hunan Oubiao Cosmetics Co., Ltd., involving **244,800 Yuan**, which has been concluded in the first instance, ruling Oubiao Company to pay for goods and interest[142](index=142&type=chunk) - Subsidiary Sipai Company has a payment dispute with Luoyang Dasheng New Energy Development Co., Ltd., involving **1 million Yuan**, which has been concluded in the first instance, ruling Dasheng Company to pay for goods and liquidated damages[143](index=143&type=chunk) [9. Penalties and Rectification](index=76&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) There were no penalties or rectification situations for the company during the reporting period - There were no penalties or rectification situations for the company during the reporting period[144](index=144&type=chunk) [10. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=76&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no integrity issues requiring disclosure - During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no integrity issues requiring disclosure[145](index=145&type=chunk) [11. Significant Related Party Transactions](index=76&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) During the reporting period, the company had no related party transactions related to daily operations, asset or equity acquisitions/disposals, or joint external investments, nor any non-operating related party creditor-debtor relationships; no deposit, loan, credit, or other financial business existed between the company and related financial companies - The company had no related party transactions related to daily operations during the reporting period[145](index=145&type=chunk) - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[146](index=146&type=chunk) - The company had no related party transactions involving joint external investments during the reporting period[147](index=147&type=chunk) - The company had no non-operating related party creditor-debtor relationships during the reporting period[148](index=148&type=chunk) - No deposit, loan, credit, or other financial business existed between the company and related financial companies, or between financial companies controlled by the company and related parties[149](index=149&type=chunk)[150](index=150&type=chunk) [12. Significant Contracts and Their Performance](index=77&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) During the reporting period, the company engaged in leasing, primarily for office buildings and employee dormitories; the company provided multiple guarantees to its subsidiaries, with the total guarantee amount accounting for 65.74% of the company's net assets; no other significant contracts existed - Leasing of other company assets by the company during the reporting period primarily involved office buildings and employee dormitories[154](index=154&type=chunk) - As of the end of the reporting period, the approved guarantee limit for subsidiaries totaled **4.5 billion Yuan**, with an actual guarantee balance of **1.8472945 billion Yuan**, accounting for **65.74%** of the company's net assets[162](index=162&type=chunk) - The company had no other significant contracts during the reporting period[163](index=163&type=chunk) [13. Explanation of Other Significant Matters](index=84&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) During the reporting period, the company had no other significant matters requiring explanation - The company had no other significant matters requiring explanation during the reporting period[164](index=164&type=chunk) [14. Significant Matters of Company Subsidiaries](index=84&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) During the reporting period, the company's subsidiaries had no significant matters - The company's subsidiaries had no significant matters during the reporting period[165](index=165&type=chunk) [Part VI Share Changes and Shareholder Information](index=85&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details changes in the company's share capital, securities issuance, shareholder structure, and shareholdings of directors, supervisors, and senior management [1. Share Change Status](index=85&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's restricted shares decreased by 499,341 shares, with a corresponding increase in unrestricted shares, mainly due to some pre-IPO shares becoming unrestricted and listed for trading on January 8, 2025, after their lock-up period expired on January 7, 2025 Share Change Status | Item | Number Before This Change (Shares) | Proportion Before This Change | Increase/Decrease in This Change (Shares) | Number After This Change (Shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 138,174,488 | 62.02% | -499,341 | 137,675,147 | 61.79% | | Of which: Shares held by domestic natural persons | 2,380,489 | 1.07% | -499,341 | 1,881,148 | 0.84% | | II. Unrestricted Shares | 84,621,290 | 37.98% | 499,341 | 85,120,631 | 38.21% | | Of which: RMB ordinary shares | 84,621,290 | 37.98% | 499,341 | 85,120,631 | 38.21% | | III. Total Shares | 222,795,778 | 100.00% | 0 | 222,795,778 | 100.00% | - Reason for share change: Some of the company's pre-IPO shares became unrestricted and listed for trading on January 8, 2025, after their lock-up period expired on January 7, 2025[169](index=169&type=chunk) Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (Shares) | Restricted Shares Released in Current Period (Shares) | Restricted Shares Increased in Current Period (Shares) | Restricted Shares at End of Period (Shares) | Reason for Restriction | Planned Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shandong Haike Holding Co., Ltd. | 135,793,999 | 0 | 0 | 135,793,999 | IPO Restriction | January 7, 2027 | | Yang Xiaohong | 731,636 | 0 | 0 | 731,636 | IPO Restriction | January 7, 2027 | | Zhang Zaizhong | 500,592 | 500,592 | 0 | 0 | IPO Restriction | January 7, 2025 | | Cui Zhiqiang | 323,460 | 323,460 | 0 | 0 | IPO Restriction | January 7, 2025 | | Zhang Shengan | 269,550 | 269,550 | 0 | 0 | IPO Restriction | January 7, 2025 | | Wu Leilei | 115,521 | 115,521 | 0 | 0 | IPO Restriction | January 7, 2025 | | Li Yong | 115,521 | 115,521 | 0 | 0 | IPO Restriction | January 7, 2025 | | Liu Meng | 115,521 | 115,521 | 0 | 0 | IPO Restriction | January 7, 2025 | | Teng Wenbin | 115,521 | 115,521 | 0 | 0 | IPO Restriction | January 7, 2025 | | Li Ling | 92,417 | 92,417 | 0 | 0 | IPO Restriction | January 7, 2025 | | **Total** | **138,173,738** | **1,648,103** | **0** | **136,525,635** | | | [2. Securities Issuance and Listing](index=87&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) During the reporting period, the company had no securities issuance or listing activities - The company had no securities issuance or listing activities during the reporting period[172](index=172&type=chunk) [3. Number of Shareholders and Shareholding Status](index=87&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) At the end of the reporting period, the total number of common shareholders was 26,438; among the top ten shareholders, Shandong Haike Holding Co., Ltd. held 60.95% as the largest shareholder, and Guojin Securities Haike Xinyuan Employee Strategic Placement Collective Asset Management Plan held 2.50%; the company's special repurchase securities account held 851,100 shares, representing 0.38% of total shares - Total number of common shareholders at the end of the reporting period was **26,438**[173](index=173&type=chunk) Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at Period-End (Shares) | Number of Restricted Shares Held (Shares) | Number of Unrestricted Shares Held (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Shandong Haike Holding Co., Ltd. | Domestic Non-State-Owned Legal Person | 60.95% | 135,793,999 | 135,793,999 | 0 | | Guojin Securities - China Merchants Bank - Guojin Securities Haike Xinyuan Employee Strategic Placement Collective Asset Management Plan | Other | 2.50% | 5,574,079 | 0 | 5,574,079 | | Zhao Hongji | Domestic Natural Person | 1.49% | 3,327,787 | 0 | 3,327,787 | | Shanghai Heyin Investment Management Co., Ltd. - Changde Heyin Xiangde Equity Investment Partnership (Limited Partnership) | Other | 0.99% | 2,210,000 | 0 | 2,210,000 | | Shanghai Chentao Asset Management Co., Ltd. - Ningbo Chentong Venture Capital Partnership (Limited Partnership) | Other | 0.74% | 1,654,520 | 0 | 1,654,520 | | Shenzhen Dacheng Caizhi Venture Capital Management Co., Ltd. - Shenzhen Dacheng Chuanghong Private Equity Investment Enterprise (Limited Partnership) | Other | 0.72% | 1,598,471 | 0 | 1,598,471 | | Hangzhou Jingyou Investment Management Partnership (Limited Partnership) - Hangzhou Jingyou Phase III Equity Investment Partnership (Limited Partnership) | Other | 0.50% | 1,120,292 | 0 | 1,120,292 | | Wang Jizhong | Domestic Natural Person | 0.35% | 779,190 | 0 | 779,190 | | Yang Xiaohong | Domestic Natural Person | 0.33% | 731,636 | 731,636 | 0 | | UBS AG | Overseas Legal Person | 0.31% | 701,504 | 0 | 701,504 | - The company is unaware of any related party relationships or concerted action agreements among other shareholders[174](index=174&type=chunk) - As of the end of the reporting period, the company's special repurchase securities account held **851,100 shares**, with a shareholding proportion of **0.38%**[174](index=174&type=chunk) [4. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=89&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - No changes occurred in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[177](index=177&type=chunk) [5. Changes in Controlling Shareholder or Actual Controller](index=90&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) During the reporting period, there were no changes in the company's controlling shareholder or actual controller - No changes in the company's controlling shareholder during the reporting period[178](index=178&type=chunk) - No changes in the company's actual controller during the reporting period[178](index=178&type=chunk) [6. Preferred Share Information](index=91&type=section&id=%E5%85%AD%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[179](index=179&type=chunk) [Part VII Bond-Related Information](index=92&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms that the company had no bond-related activities or outstanding bonds during the reporting period [Bond-Related Information](index=92&type=section&id=%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) During the reporting period, the company had no bond-related information - The company had no bond-related information during the reporting period[181](index=181&type=chunk) [Part VIII Financial Report](index=93&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) 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 notes on accounting policies, taxation, and other significant financial details [1. Audit Report](index=93&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[183](index=183&type=chunk) [2. Financial Statements](index=93&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively illustrating its financial position, operating results, and cash flows [(I) Consolidated Balance Sheet](index=93&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the company's consolidated total assets were **7,293,710,701.56 Yuan**, with total current assets of **2,954,146,735.81 Yuan** and total non-current assets of **4,339,563,965.75 Yuan**; total liabilities were **4,386,945,403.48 Yuan**, and total owners' equity was **2,906,765,298.08 Yuan** Key Data from Consolidated Balance Sheet | Item | Ending Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Monetary Funds | 821,573,859.63 | 1,851,307,205.19 | | Trading Financial Assets | 115,046,847.85 | 246,760,534.69 | | Accounts Receivable | 1,231,665,041.13 | 941,151,210.01 | | Inventory | 217,267,307.89 | 204,543,731.74 | | Fixed Assets | 2,892,225,110.37 | 2,264,325,148.18 | | Construction in Progress | 1,142,392,602.45 | 1,705,389,308.34 | | **Total Assets** | **7,293,710,701.56** | **8,332,610,930.36** | | Short-term Borrowings | 1,442,209,237.78 | 2,454,540,863.60 | | Accounts Payable | 1,010,086,093.07 | 986,203,760.86 | | Long-term Borrowings | 784,265,170.66 | 710,949,751.34 | | **Total Liabilities** | **4,386,945,403.48** | **5,374,067,887.32** | | Total Owners' Equity Attributable to Parent Company | 2,809,899,804.50 | 2,850,859,938.67 | | **Total Owners' Equity** | **2,906,765,298.08** | **2,958,543,043.04** | [(II) Parent Company Balance Sheet](index=95&type=section&id=2%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the parent company's total assets were **4,848,315,610.55 Yuan**, with total current assets of **2,156,914,431.87 Yuan** and total non-current assets of **2,691,401,178.68 Yuan**; total liabilities were **1,892,190,046.30 Yuan**, and total owners' equity was **2,956,125,564.25 Yuan** Key Data from Parent Company Balance Sheet | Item | Ending Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Monetary Funds | 582,184,482.27 | 1,231,196,658.48 | | Accounts Receivable | 829,692,477.44 | 585,026,438.41 | | Long-term Equity Investments | 2,142,410,852.40 | 2,142,410,852.40 | | Fixed Assets | 407,783,911.81 | 432,873,908.30 | | **Total Assets** | **4,848,315,610.55** | **5,374,981,847.98** | | Short-term Borrowings | 301,888,821.11 | 297,352,092.08 | | Notes Payable | 725,500,000.00 | 1,400,416,815.64 | | Accounts Payable | 281,450,418.70 | 211,991,484.07 | | **Total Liabilities** | **1,892,190,046.30** | **2,438,871,137.24** | | **Total Owners' Equity** | **2,956,125,564.25** | **2,936,110,710.74** | [(III) Consolidated Income Statement](index=98&type=section&id=3%E3%80

2025 年半年度报告全文 山东太阳纸业股份有限公司 2025 年半年度报告 披露日期：2025 年 8 月 28 日 1 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容 的真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担 个别和连带的法律责任。 公司负责人李娜、主管会计工作负责人王宗良及会计机构负责人(会计主 管人员)李辉声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 本半年度报告如涉及未来计划等前瞻性陈述，不构成公司对投资者的实 质承诺，投资者及相关人士均应当对此保持足够的风险认识，并且应当理解 计划、预测与承诺之间的差异。 公司已在本报告中详细阐述公司可能存在的风险，请查阅本报告中第三 节"管理层讨论与分析"十"公司面临的风险和应对措施"。敬请广大投资 者注意投资风险。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 山東太陽紙業 股份有限公司 2025 年半年度报告全文 目录 | 第一节 重要提示、目录和释义 | | --- | | 第二节 公司简 ...

招商局能源运输份有限公司2025 年半年度报告 公司代码：601872 公司简称：招商轮船 招商局能源运输份有限公司 2025 年半年度报告 1 / 209 招商局能源运输份有限公司2025 年半年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实性、准确 性、完整性，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 一、 未出席董事情况 | 未出席董事职务 | 未出席董事姓名 | 未出席董事的原因说明 | 被委托人姓名 | | --- | --- | --- | --- | | 董事 | 刘振华 | 公务原因 | 曲保智 | | 董事 | 钟富良 | 公务原因 | 陈学 | 二、 本半年度报告未经审计。 三、 公司负责人冯波鸣、主管会计工作负责人娄东阳及会计机构负责人（会计主管人员）翟文 峰声明：保证半年度报告中财务报告的真实、准确、完整。 四、 董事会决议通过的本报告期利润分配预案或公积金转增股本预案 根据2024年度股东大会的授权，董事会可在授权额度内制定和实施2025年中期分红方案。2025 年8月26日，第七届董事会第二十三次会议审议通过 ...