[Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [Board of Directors and Senior Management Statement](index=2&type=section&id=%E4%B8%80%E3%80%81%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%8F%8A%E8%91%A3%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E4%BF%9D%E8%AF%81%E5%8D%8A%E5%B9%B4%E5%BA%A6%E6%8A%A5%E5%91%8A%E5%86%85%E5%AE%B9%E7%9A%84%E7%9C%9F%E5%AE%9E%E6%80%A7%E3%80%81%E5%87%86%E7%A1%AE%E6%80%A7%E3%80%81%E5%AE%8C%E6%95%B4%E6%80%A7%EF%BC%8C%E4%B8%8D%E5%AD%98%E5%9C%A8%E8%99%9A%E5%81%87%E8%AE%B0%E8%BD%BD%E3%80%81%E8%AF%AF%E5%AF%BC%E6%80%A7%E9%99%88%E8%BF%B0%E6%88%96%E9%87%8D%E5%A4%A7%E9%81%97%E6%BC%8F%EF%BC%8C%E5%B9%B6%E6%89%BF%E6%8B%85%E4%B8%AA%E5%88%AB%E5%92%8C%E8%BF%9E%E5%B8%A6%E7%9A%84%E6%B3%95%E5%BE%8B%E8%B4%A3%E4%BB%BB%E3%80%82) The company's Board of Directors, directors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming individual and joint legal responsibility - The company's Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false statements, misleading representations, or major omissions, and assume individual and joint legal responsibility[4](index=4&type=chunk) - This semi-annual report has not been audited[5](index=5&type=chunk) - Company head Wang Wenbin, chief accountant Ren Lei, and head of accounting department Rong Shuyan declare that the financial report in the semi-annual report is true, accurate, and complete[5](index=5&type=chunk) [Significant Risk Warning](index=2&type=section&id=%E4%BA%8C%E3%80%81%20%E9%87%8D%E5%A4%A7%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) The company has detailed potential risks in the report, advising investors to review "Section III Management Discussion and Analysis" under "IV. Risk Factors" and be aware of investment risks - The company has described potential risks in this report; investors are advised to refer to "Section III Management Discussion and Analysis" under "IV. Risk Factors" and be aware of investment risks[4](index=4&type=chunk) [Forward-Looking Statements Risk Disclaimer](index=2&type=section&id=%E5%85%AB%E3%80%81%20%E5%89%8D%E7%9E%BB%E6%80%A7%E9%99%88%E8%BF%B0%E7%9A%84%E9%A3%8E%E9%99%A9%E5%A3%B0%E6%98%8E) Forward-looking statements regarding the company's business development in this report do not constitute a substantive commitment to investors, who are reminded to be aware of investment risks - Forward-looking statements regarding the company's business development in this report do not constitute a substantive commitment to investors; investors are reminded to be aware of investment risks[5](index=5&type=chunk) [Section I Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) [Definitions of Common Terms](index=4&type=section&id=%E5%B8%B8%E7%94%A8%E8%AF%8D%E8%AF%AD%E9%87%8A%E4%B9%89) This section defines common terms used in the report, including company and subsidiary names, major client groups (e.g., GE, Wabtec, Siemens, Alstom, Toshiba, CRRC, CRRC Electric), and specialized technical terms (e.g., high-strength, high-conductivity copper alloy materials, medium- and high-voltage electrical contact materials, CT, DR, liquid rocket engine thrust chamber inner wall, optical module chip base), ensuring accurate understanding of the report's content - In this report, unless otherwise specified, the following terms have the meanings set forth below: Company, Shareholding Company, the Company, Sirui New Material refer to Shaanxi Sirui Advanced Materials Co, Ltd[11](index=11&type=chunk) - Major client groups include GE Group, Wabtec Group, Siemens Group, Alstom Group, Toshiba, CRRC, CRRC Electric, Eaton, ENN Science & Technology, Star Ring Fusion, Energy Singularity, United Imaging Healthcare, Varex, Global Broadcasting, TFC, Finisar, Schneider, Dongfang Electric, Jinxi Industrial Group, Skoda, ABB, Taikai Group, Xuguang Electronics, Western Superconducting, Plansee, Kunshan Yiyuan, Memmert Vacuum, CETC Ruishi, Beijing Zhibeam, LandSpace, Jiuzhou Yunjian, Deep Blue Aerospace, etc[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) - Professional terms cover high-strength, high-conductivity copper alloy materials and products, medium- and high-voltage electrical contact materials and products, end rings, conductor bars, medical imaging equipment, CT, DR, X-ray tubes, liquid rocket engines, liquid rocket engine thrust chamber inner walls, optical modules, optical module chip bases, housings, nuclear magnetic resonance, medical electronic linear accelerators, dual carbon, CuCrZr, CuCr, CuW, CuFe, infiltration, casting, vacuum consumable, sintering, 3D printing, cleanroom, brazing, etc[14](index=14&type=chunk)[15](index=15&type=chunk) [Section II Company Profile and Key Financial Indicators](index=8&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) [Company Basic Information](index=8&type=section&id=%E4%B8%80%E3%80%81%20%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Shaanxi Sirui Advanced Materials Co, Ltd (Sirui New Material) is a listed company registered in Xi'an High-tech Zone, Shaanxi Province, with Wang Wenbin as its legal representative and its website at http://www.sxsr.com - The company's Chinese name is Shaanxi Sirui Advanced Materials Co, Ltd, abbreviated as Sirui New Material[17](index=17&type=chunk) - The legal representative is Wang Wenbin, and both the registered address and office address are located at No 12, Zhangba 7th Road, High-tech Zone, Xi'an, Shaanxi Province[17](index=17&type=chunk) - The company's website is http://www.sxsr.com, and its email address is sirui-advanced-materials@sirui.net.cn[17](index=17&type=chunk) [Contact Person and Contact Information](index=8&type=section&id=%E4%BA%8C%E3%80%81%20%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 (domestic representative for information disclosure) is Wang Lei, and the Securities Affairs Representative is Du Yahhui; their contact address, phone, fax, and email have all been disclosed - The Board Secretary (domestic representative for information disclosure) is Wang Lei, and the Securities Affairs Representative is Du Yahhui[18](index=18&type=chunk) - The contact address for both is No 12, Zhangba 7th Road, High-tech Zone, Xi'an, Shaanxi Province; phone and fax are 029-81138188; email is sirui-advanced-materials@sirui.net.cn[18](index=18&type=chunk) [Information Disclosure and Document Custody Location Changes](index=9&type=section&id=%E4%B8%89%E3%80%81%20%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) The company's designated newspapers for information disclosure are "China Securities Journal," "Shanghai Securities News," and "Securities Daily"; the semi-annual report is published on the Shanghai Stock Exchange website, and the document custody location is the company's Board of Directors Office - The company's designated newspapers for information disclosure are "China Securities Journal," "Shanghai Securities News," and "Securities Daily"[19](index=19&type=chunk) - The website address for publishing the semi-annual report is http://www.sse.com.cn/[19](index=19&type=chunk) - The company's semi-annual report is kept at the company's Board of Directors Office[19](index=19&type=chunk) [Company Stock/Depositary Receipt Summary](index=9&type=section&id=%E5%9B%9B%E3%80%81%20%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8/%E5%AD%98%E6%89%98%E5%87%AD%E8%AF%81%E7%AE%80%E5%86%B5) The company's stock is A-shares, listed on the STAR Market of the Shanghai Stock Exchange, with the stock abbreviation Sirui New Material and stock code 688102 - The company's stock type is A-shares, listed on the STAR Market of the Shanghai Stock Exchange[20](index=20&type=chunk) - The stock abbreviation is Sirui New Material, and the stock code is 688102[20](index=20&type=chunk) [Company's Key Accounting Data and Financial Indicators](index=9&type=section&id=%E5%85%AD%E3%80%81%20%E5%85%AC%E5%8F%B8%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 **23.74%** to **772.15 million yuan**, with total profit and net profit attributable to shareholders increasing by **34.17%** and **33.61%** respectively; non-recurring net profit increased by **36.43%**, and basic earnings per share increased by **33.59%**, while net cash flow from operating activities decreased by **276.53%** due to increased working capital for business growth Major Accounting Data (January-June 2025 vs. Prior Year Period) | Indicator | Current Reporting Period (Jan-Jun) (yuan) | Prior Year Period (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 772,153,433.60 | 624,014,920.33 | 23.74 | | Total Profit | 83,995,661.78 | 62,604,637.77 | 34.17 | | Net Profit Attributable to Shareholders of Listed Company | 74,738,259.19 | 55,935,723.84 | 33.61 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 69,684,699.13 | 51,078,378.43 | 36.43 | | Net Cash Flow from Operating Activities | -7,828,568.44 | 4,434,631.36 | -276.53 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 1,210,942,467.21 | 1,113,026,770.71 | 8.80 | | Total Assets (Period-end) | 2,492,799,412.83 | 2,133,636,889.00 | 16.83 | Major Financial Indicators (January-June 2025 vs. Prior Year Period) | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.1030 | 0.0771 | 33.59 | | Diluted Earnings Per Share (yuan/share) | 0.1027 | 0.0771 | 33.20 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (yuan/share) | 0.0960 | 0.0704 | 36.36 | | Weighted Average Return on Net Assets (%) | 6.57 | 5.25 | Increased by 1.32 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 6.12 | 4.79 | Increased by 1.33 percentage points | | R&D Investment as Percentage of Operating Revenue (%) | 5.49 | 5.20 | Increased by 0.29 percentage points | - Total profit, net profit attributable to shareholders of the listed company, net profit after deducting non-recurring gains and losses, basic earnings per share, and diluted earnings per share all achieved significant growth, primarily due to business growth across all segments, optimized product sales structure, contributions from new industry directions, and a substantial increase in exchange gains from the appreciation of the Euro[25](index=25&type=chunk) - Net cash flow from operating activities decreased by **276.53%** compared to the same period last year, mainly due to increased working capital for business growth[25](index=25&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=10&type=section&id=%E5%85%AB%E3%80%81%20%E9%9D%9E%E5%B8%B8%E8%BF%90%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) During the reporting period, the company's total non-recurring gains and losses amounted to **5.05 million yuan**, primarily comprising government grants of **9.49 million yuan**, disposal losses of non-current assets of **-0.52 million yuan**, and fair value changes in financial assets and liabilities of **-2.84 million yuan** Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Disposal gains and losses of non-current assets | -522,268.07 | | Government grants recognized in current profit or loss | 9,493,667.58 | | Gains and losses from changes in fair value of financial assets and liabilities, and disposal gains and losses of financial assets and liabilities, excluding effective hedge accounting related to normal business operations of non-financial enterprises | -2,835,860.83 | | Other non-operating income and expenses apart from the above | 64,002.71 | | Less: Income tax impact | 884,738.56 | | Minority interest impact (after tax) | 261,242.77 | | Total | 5,053,560.06 | [Net Profit After Deducting Share-Based Payment Impact](index=11&type=section&id=%E4%B9%9D%E3%80%81%20%E5%AD%98%E5%9C%A8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E7%9A%84%E5%85%AC%E5%8F%B8%E5%8F%AF%E9%80%89%E6%8B%A9%E6%8A%AB%E9%9C%B2%E6%89%A3%E9%99%A4%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98%E5%BD%B1%E5%93%8D%E5%90%8E%E7%9A%84%E5%87%80%E5%88%A9%E6%B6%A6) During the reporting period, the company's net profit after deducting the impact of share-based payments was **76.95 million yuan**, representing a **35.89%** increase compared to the same period last year Net Profit After Deducting Share-Based Payment Impact | Indicator | Current Reporting Period (Jan-Jun) (yuan) | Prior Year Period (yuan) | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Net profit after deducting share-based payment impact | 76,947,934.75 | 56,625,877.87 | 35.89 | [Section III Management Discussion and Analysis](index=11&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) [Explanation of the Company's Industry and Main Business During the Reporting Period](index=11&type=section&id=%E4%B8%80%E3%80%81%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) As an advanced materials R&D and manufacturing enterprise, the company's products are widely used in rail transit, aerospace, power electronics, medical imaging, and semiconductor sectors; during the reporting period, the company achieved record operating performance with **772 million yuan** in revenue (up **23.74%**) and **74.74 million yuan** in net profit attributable to shareholders (up **33.61%**), while strategically focusing on new productive forces such as commercial aerospace, medical imaging, AI data centers, semiconductors, and controllable nuclear fusion, optimizing industrial layout, increasing R&D investment, and initiating its 2026-2035 ten-year plan - The company is an advanced materials R&D and manufacturing enterprise, with products primarily serving rail transit, aerospace, power electronics, medical imaging, and semiconductor fields[32](index=32&type=chunk) - The company's strategic positioning is to become a leader in new materials across multiple niche areas globally, aiming for world-leading technology innovation and market share in each segment[32](index=32&type=chunk) - During the reporting period, the company achieved operating revenue of **772.15 million yuan**, net profit attributable to parent company shareholders of **74.74 million yuan**, and net profit attributable to listed company shareholders after deducting non-recurring gains and losses of **69.68 million yuan**, representing year-on-year increases of **23.74%**, **33.61%**, and **36.43%** respectively[33](index=33&type=chunk) - The company initiated its 2026-2035 ten-year plan, focusing on promoting the application and industrialization of advanced copper alloy materials in new productive force-related industries such as commercial aerospace, medical imaging equipment, artificial intelligence data centers, semiconductors, and controllable nuclear fusion[32](index=32&type=chunk)[33](index=33&type=chunk) [Explanation of Main Business/Products](index=12&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1/%E4%BA%A7%E5%93%81%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company's main products include high-strength, high-conductivity copper alloy materials and products, medium- and high-voltage electrical contact materials and products, high-performance metal chromium powder, CT and DR X-ray tube components, optical module chip bases/housings, and liquid rocket engine thrust chamber inner walls, serving critical sectors like high-end connectors, rail transit, power equipment, medical imaging, AI data centers, and commercial aerospace, with some products aiming for domestic substitution and meeting stringent demands for high-performance materials in emerging industries - High-strength, high-conductivity copper alloy materials and products are primarily used in high-end connectors (new energy vehicles, 5G communication, consumer electronics), rail transit high-power traction motor end rings and conductor bars, liquid rocket engine thrust chamber inner walls, high-performance target backplates, controllable nuclear fusion components, and key materials for nuclear power generators, aiming to reduce reliance on imports[34](index=34&type=chunk) - Medium- and high-voltage electrical contact materials and products (copper-chromium contacts and copper-tungsten contacts) are applied in medium- and high-voltage switchgear, benefiting from global "dual carbon" goals and increased electricity demand, with continuous R&D to meet the trend of vacuum switches replacing SF6 switches[35](index=35&type=chunk) - High-performance metal chromium powder is supplied by the first domestic enterprise to mass-produce low-oxygen, low-nitrogen, low-sulfur, and low-acid insoluble high-performance metal chromium powder, widely used in medium- and high-voltage electrical contact materials, high-end superalloys, high-end targets, surface spraying, and the electronics industry[36](index=36&type=chunk) - CT and DR X-ray tube components are crucial parts of medical imaging equipment; the company integrates multiple technologies to provide high-standard products and expands into new application areas such as nuclear magnetic resonance, medical electronic linear accelerators, and semiconductor equipment[37](index=37&type=chunk) - Optical module chip base/housing products provide thermal management and mechanical stability for computing and data centers, meeting the demand for new low-expansion, high-thermal-conductivity materials for 400G, 800G, and 1.6T high-speed optical modules[38](index=38&type=chunk)[39](index=39&type=chunk) - Liquid rocket engine thrust chamber inner wall materials require high temperature resistance, low cycle fatigue, and high thermal conductivity; the company's developed high-temperature resistant copper alloy materials have passed verification and are used in actual rocket launches, benefiting from the rapid development of commercial aerospace[40](index=40&type=chunk) [Company's Main Business Industry and General Situation](index=13&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) The company's main business spans non-ferrous metal smelting and rolling processing and metal product manufacturing, with each sub-industry experiencing rapid development or accelerated domestic substitution, characterized by high technical barriers in material preparation, electrical performance, high-purity manufacturing, high-vacuum high-temperature service conditions, ultra-high thermal conductivity, low expansion materials, and complex precision machining; the company holds a leading position in multiple niche areas, with technical performance and market share reaching international first-class levels, serving globally renowned clients - The company's high-strength, high-conductivity copper alloy materials and products, medium- and high-voltage electrical contact materials and products, and optical module chip base/housing businesses belong to "C32 Non-ferrous Metal Smelting and Rolling Processing Industry," while high-performance metal chromium powder, CT, and DR X-ray tube components belong to "C33 Metal Product Industry"[41](index=41&type=chunk) - The market for high-strength, high-conductivity copper alloy materials and products has immense potential, with some high-end products relying on imports, indicating strong domestic substitution opportunities; technical barriers lie in material preparation processes and equipment, as well as high demands for material consistency and uniformity[42](index=42&type=chunk) - Medium- and high-voltage electrical contact materials and products benefit from global "dual carbon" goals and increased power investment, with high technical barriers requiring excellent breaking capacity, high voltage withstand capability, high arc erosion resistance, high electrical conductivity, and low cut-off current values simultaneously[43](index=43&type=chunk) - The application of high-performance metal chromium powder is moving towards high-end and refined uses, with technical barriers in advanced low-temperature powder preparation, acid-insoluble inclusion treatment, vacuum degassing purification, ultra-fine powder preparation, and other technologies[44](index=44&type=chunk)[45](index=45&type=chunk) - The CT and DR X-ray tube component industry is undergoing accelerated domestic substitution and technological upgrades, with technical barriers in materials needing to meet high-vacuum, high-temperature, high-speed, and high-heat capacity service conditions, as well as high-precision machining, vacuum brazing, and special surface treatment technologies[46](index=46&type=chunk) - Optical module chip bases/housings require significantly improved heat dissipation, necessitating new materials with low expansion and higher thermal conductivity; technical barriers include uniform dispersion of ultra-fine tungsten powder, high cleanliness, high density, and advanced processes such as 3D printed skeletons and vacuum infiltration directional solidification[47](index=47&type=chunk) - The liquid rocket engine thrust chamber inner wall industry is experiencing rapid development, with high technical barriers and critical process steps including high-strength, high-thermal-conductivity copper alloy material melting, precision machining, and assembly welding[48](index=48&type=chunk) - The company holds a leading position in multiple niche areas, including high-strength, high-conductivity copper alloy materials and products, medium- and high-voltage electrical contact materials and products, high-performance metal chromium powder, CT and DR X-ray tube components, optical module chip bases/housings, and liquid rocket engine thrust chamber inner walls, with product technical performance and quality stability reaching international first-class levels, demonstrating global competitiveness[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk)[56](index=56&type=chunk) [Company's Main Business Model](index=16&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company employs a "market-oriented + frontier research" R&D model, innovating based on benchmark client needs and industry pain points, actively engaging in industry-university-research collaboration; its sales model is primarily direct sales, leading the market by providing non-standard customized products to benchmark clients; the manufacturing model leverages internationally leading material design and preparation technologies, with multiple high-end alloy material production lines and precision processing equipment to meet complex composite demands; the procurement model combines centralized, unified supply chain management with autonomous procurement by each business unit - R&D Model: Centered on copper-based alloy R&D and manufacturing, driven by "market-oriented + frontier research" demand to innovate, conducting R&D around benchmark clients and industry pain points, and undertaking multiple national projects through industry-university-research collaborative innovation[57](index=57&type=chunk)[58](index=58&type=chunk) - Sales Model: Conducting direct sales activities around benchmark clients such as GE, Wabtec, Alstom, Siemens, and ABB, providing non-standard customized products from material design to finished product precision machining[59](index=59&type=chunk) - Manufacturing Model: Possessing internationally leading material design and preparation technologies such as vacuum induction melting, vacuum consumable arc melting, vacuum sintering, and 3D printing, as well as precision processing equipment and component assembly capabilities, meeting the composite demands of extreme special material performance and precision manufacturing of parts[60](index=60&type=chunk)[61](index=61&type=chunk) - Procurement Model: Combining centralized, unified supply chain management with autonomous procurement and logistics management by each business unit to reduce costs, improve efficiency, and standardize supplier auditing, selection, evaluation, and assessment[62](index=62&type=chunk) [Discussion and Analysis of Operations](index=17&type=section&id=%E4%BA%8C%E3%80%81%20%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) During the reporting period, the company maintained steady operational growth, focusing on new productive forces-related industries, increasing investment and capacity building in key projects such as liquid rocket engine thrust chambers, medical imaging equipment, and optical module chip bases/housings; the company actively advanced its internationalization strategy, deepened global presence, and continuously increased R&D investment, with R&D expenses growing by **30.73%** year-on-year; simultaneously, the company enhanced operational efficiency through digital transformation, strengthened talent team building and brand quality management, laying a foundation for high-quality sustainable development - The company's operating performance maintained a steady growth trend, strategically positioned to become a leader in new materials across multiple niche areas, with the strategic goal of achieving world-leading technology innovation and market share in each segment[63](index=63&type=chunk) - During the reporting period, the company invested a total of **42.40 million yuan** in R&D expenses, a year-on-year increase of **30.73%**, primarily focusing on key R&D projects such as national and provincial-level key R&D programs, liquid rocket engine thrust chamber materials and products, electro-vacuum materials and components for medical imaging equipment, and optical module chip bases/housings[72](index=72&type=chunk) - The company accelerated its internationalization layout, deepening its global strategy with the Thailand manufacturing base as a pivot point, and began supplying customers in the US region, focusing on expanding into European, RCEP member, and Middle Eastern markets[70](index=70&type=chunk) - The company launched the construction of a smart financial platform, leveraging artificial intelligence and big data technologies to enhance operational efficiency, strengthen dynamic risk control, and support management decision-making[73](index=73&type=chunk) - The company strengthened its talent team building through a "nurture internally + attract externally" model, collaborating with universities to cultivate high-end R&D talent and international talent[74](index=74&type=chunk) [Key Project Investment and Capacity Building](index=17&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%85%B3%E9%94%AE%E9%A1%B9%E7%9B%AE%E6%8A%95%E8%B5%84%E4%B8%8E%E4%BA%A7%E8%83%BD%E6%89%93%E9%80%A0) During the reporting period, the company focused on investing in and developing three key projects: the industrialization project for liquid rocket engine thrust chamber materials, parts, and components, with a planned investment of **230 million yuan** and cumulative investment of **47.23 million yuan**, successfully developing hot isostatic pressing near-net shaping technology for copper-chromium-niobium large thrust liquid rocket engine thrust chamber inner walls; the R&D and industrialization project for 30,000 sets/year of electro-vacuum materials and components for medical imaging equipment, with a planned investment of **400 million yuan** and cumulative investment of **151 million yuan**, with new factory construction completed; and the establishment of a 20 million sets/year optical module chip base/housing production capacity, already supplying small to medium batches of high-strength, high-thermal-conductivity copper alloy housing products for 800G and 1.6T optical modules to major clients, and reserving copper-diamond material technology - The first phase of the industrialization project for liquid rocket engine thrust chamber materials, parts, and components is planned to invest **230 million yuan**, with a cumulative investment of **47.23 million yuan** as of the end of the reporting period[64](index=64&type=chunk) - This project successfully developed hot isostatic pressing near-net shaping technology for copper-chromium-niobium large thrust liquid rocket engine thrust chamber inner walls, significantly enhancing material strength and high-temperature resistance, improving material utilization, and reducing production costs[64](index=64&type=chunk)[65](index=65&type=chunk) - The R&D and industrialization project for 30,000 sets/year of electro-vacuum materials and components for medical imaging equipment is planned to invest **400 million yuan**, with a cumulative investment of **151 million yuan** as of the end of the reporting period; new factory construction is complete, and acceptance and relocation are proceeding in an orderly manner[67](index=67&type=chunk) - The project to build a production capacity of 20 million sets/year of optical module chip bases/housings has already supplied small to medium batches of high-strength, high-thermal-conductivity copper alloy housing products for 800G and 1.6T optical modules to major clients, and is developing copper-diamond materials to reserve technology for 1.6T and above optical module applications[68](index=68&type=chunk)[69](index=69&type=chunk) [Internationalization Strategy and Overseas Layout](index=18&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E5%9B%BD%E9%99%85%E5%8C%96%E6%88%98%E7%95%A5%E4%B8%8E%E6%B5%B7%E5%A4%96%E5%B8%83%E5%B1%80) The company actively promotes its internationalization strategy, deepening its global presence through its Thailand manufacturing base, having started supplying customers in the US region, and planning to focus on expanding into European, RCEP member, and Middle Eastern markets; the company is committed to strengthening international operational capabilities, optimizing its sales team, enhancing localized services, and exploring overseas M&A opportunities to achieve a three-year doubling of international market business, while also strengthening foreign exchange management to mitigate exchange rate fluctuation risks - The company accelerated its internationalization layout, deepening its global strategic presence with the Thailand manufacturing base as a pivot point, actively responding to changes in the trade environment, and stabilizing its international market foundation[70](index=70&type=chunk) - During the reporting period, the company's Thai subsidiary began supplying customers in the US region[70](index=70&type=chunk) - The company focuses on expanding into European, RCEP member, and Middle Eastern markets, accelerating global market penetration, and plans to achieve a three-year doubling of international market business through overseas marketing network construction and resource integration[70](index=70&type=chunk)[71](index=71&type=chunk) - The company collaborates with professional institutions to strengthen foreign exchange management, effectively mitigating and preventing the impact of exchange rate fluctuations on operations[71](index=71&type=chunk) [R&D Innovation and Industrialization Capability](index=19&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E7%A0%94%E5%8F%91%E5%88%9B%E6%96%B0%E4%B8%8E%E4%BA%A7%E4%B8%9A%E5%8C%96%E8%83%BD%E5%8A%9B) The company continuously increased R&D investment, with a cumulative expenditure of **42.40 million yuan** during the reporting period, a **30.73%** year-on-year increase; significant breakthroughs were achieved in key technical areas such as liquid rocket thrust chamber inner walls, 3D printed copper alloy powder, optical module housing heat dissipation, high-voltage high-current copper-chromium contact materials, and controllable nuclear fusion copper alloys, substantially improving product performance, reducing costs, and enriching preparation technologies, thereby solidifying the company's technological leadership in copper-based advanced materials - During the reporting period, the company invested a cumulative **42.40 million yuan** in R&D expenses, a year-on-year increase of **30.73%**[72](index=72&type=chunk) - Developed hot isostatic pressing near-net shaping technology for copper-chromium-niobium liquid rocket thrust chamber inner walls, significantly enhancing product strength and high-temperature resistance, improving material utilization, and reducing costs[72](index=72&type=chunk) - Developed plasma gas atomization wire feeding powder preparation technology, solving the hollow powder problem for 3D printed copper and copper alloy powders, enhancing the company's industrialization capability in copper and copper alloy powder preparation[72](index=72&type=chunk) - Researched green laser 3D printing and hot isostatic pressing composite technology to meet upgraded heat dissipation requirements for optical module housings; developed laser surface remelting technology for high-voltage, high-current copper-chromium contact materials to enhance contact arc resistance and voltage withstand capability[72](index=72&type=chunk) - Comprehensively researched high-end copper-tungsten contact materials to meet the demand for environmentally friendly gas-insulated switchgear, and continuously developed high-temperature, high-thermal-conductivity, high-electrical-conductivity, and high-fatigue-resistance copper alloys for controllable nuclear fusion applications[72](index=72&type=chunk) [Efficiency Optimization and Benefit Improvement](index=19&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E6%95%88%E7%8E%87%E4%BC%98%E5%8C%96%E4%B8%8E%E6%95%88%E7%9B%8A%E6%8F%90%E5%8D%87) The company is advancing various quality and efficiency improvement initiatives and increasing investment in digitalization, launching the construction of a smart financial platform to leverage artificial intelligence and big data technologies for enhanced operational efficiency, strengthened risk control, and improved business decision-making; additionally, the company optimizes process management through digitalization and automation, and reinforces system operation and product quality management - The company launched the construction of a smart financial platform, deeply integrating artificial intelligence and big data technologies to create an intelligent, automated, and visualized one-stop financial management system[73](index=73&type=chunk) - This aims to enhance operational efficiency, strengthen dynamic risk control, and support the business decision-making system, accelerating the realization of strategic goals[73](index=73&type=chunk) - Optimizing process management through digitalization and automation, increasing the application of new technologies and processes, and strengthening system operation and product quality management[73](index=73&type=chunk) [Talent Team Building and Industrial Development](index=19&type=section&id=%EF%BC%88%E4%BA%94%EF%BC%89%E4%BA%BA%E6%89%8D%E9%98%9F%E4%BC%8D%E5%BB%BA%E8%AE%BE%E4%B8%8E%E4%BA%A7%E4%B8%9A%E5%8F%91%E5%B1%95) The company prioritizes talent team building as a core strategy, employing a "nurture internally + attract externally" dual-driven model; for high-end R&D talent, it collaborates with domestic universities on joint master's and doctoral programs to enhance the R&D team's problem-solving capabilities; for international talent, it actively recruits foreign professionals with international market development experience and co-establishes "International Student Joint Training Bases" with universities to build a core talent pool for overseas business development - The company regards talent team building as a core strategy for achieving sustainable development, adopting a "nurture internally + attract externally" dual-driven model[74](index=74&type=chunk) - In cultivating high-end R&D talent, the company deeply collaborates with domestic higher education institutions, signing joint master's and doctoral training programs for materials science to systematically enhance the R&D team's cutting-edge technology problem-solving capabilities[74](index=74&type=chunk) - In international talent deployment, the company actively engages with foreign professional talent possessing international market development experience and co-establishes "International Student Joint Training Bases" with universities to build a core talent pool for overseas factory construction and global operations[74](index=74&type=chunk) [Brand Building and Quality Improvement](index=19&type=section&id=%EF%BC%88%E5%85%AD%EF%BC%89%E5%93%81%E7%89%8C%E5%BB%BA%E8%AE%BE%E4%B8%8E%E8%B4%A8%E9%87%8F%E6%8F%90%E5%8D%87) The company focuses on system building and quality improvement, comprehensively optimizing management processes, refining standardized systems, and strengthening all-employee quality awareness through internal audits and specialized training; concurrently, the company utilizes digital tools to expand investor relations management channels, combining industry exhibitions with online promotion to deepen its professional brand image within the industry, laying a solid foundation for market expansion in the second half of the year - The company focuses on system building and quality improvement, comprehensively optimizing management processes, refining standardized systems, and strengthening all-employee quality awareness through internal audits and specialized training, adhering to a "quality-first" production philosophy[75](index=75&type=chunk) - Leveraging digital tools to expand investor relations management channels for highlighting business operations and performance, combined with industry exhibitions and online promotion, to deepen its professional brand image within the industry, laying a solid foundation for market expansion in the second half of the year[75](index=75&type=chunk)[76](index=76&type=chunk) [Analysis of Core Competitiveness During the Reporting Period](index=20&type=section&id=%E4%B8%89%E3%80%81%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%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 primarily lies in its technological R&D and innovation model; it boasts advanced technology and industrialization capabilities in high-strength, high-conductivity copper alloys, medium- and high-voltage electrical contact materials, high-performance metal chromium powder, CT and DR X-ray tube components, optical module chip bases, and liquid rocket engine thrust chamber inner walls, supported by numerous national awards and **290** authorized invention patents; the R&D innovation model adheres to "four orientations," guided by national and customer needs, continuously driving technological innovation and industrial upgrading through industry-university-research collaboration and digital management; during the reporting period, the company made significant progress in multiple ongoing R&D projects, with R&D investment increasing by **30.73%** year-on-year, and a continuous optimization of its R&D personnel structure - The company has received awards such as the Ministry of Industry and Information Technology's Manufacturing Single Champion Product, the National Science and Technology Progress Second Prize, the China Nonferrous Metals Industry Science and Technology First Prize, and the China Patent Excellence Award; as of the end of the reporting period, it had obtained **290** authorized invention patents[77](index=77&type=chunk) - The company's main R&D technologies have all achieved industrialization, including manufacturing technologies for traction motor rotor end rings and conductor bars, vacuum casting manufacturing technology, low-temperature liquid nitrogen grinding manufacturing technology, surface material treatment technology, optical module chip base manufacturing technology, and liquid rocket engine thrust chamber inner wall manufacturing technology[79](index=79&type=chunk)[80](index=80&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk)[92](index=92&type=chunk) - The R&D innovation model adheres to "four orientations," guided by national needs, customer needs, and internal improvement needs, conducting R&D innovation activities around the pain points, difficulties, and bottlenecks of the industrial chain and benchmark customers[80](index=80&type=chunk)[81](index=81&type=chunk) - During the reporting period, the company invested a cumulative **42.40 million yuan** in R&D expenses, a year-on-year increase of **30.73%**, primarily increasing investment in key independent R&D projects such as liquid rocket engine thrust chamber materials and products, optical module chip bases/housings, and components for semiconductor equipment[101](index=101&type=chunk)[102](index=102&type=chunk) - The company has **25** ongoing R&D projects, including high-performance copper alloy materials for liquid rocket engine thrust chamber inner walls, new copper and copper alloy materials for high-performance motors, and key process development for copper alloy thrust chamber inner walls for 200-ton class and above heavy rocket engines; many technologies have reached domestic or international leading levels[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - The number of R&D personnel is **94**, accounting for **7.83%** of the company's total workforce, and the average R&D personnel salary increased by **11.50%** year-on-year[110](index=110&type=chunk) [Core Competitiveness Analysis](index=20&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%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 primarily lies in its technological R&D and R&D innovation model; in technological R&D, the company possesses leading technology and industrialization capabilities in multiple niche areas (e.g., high-strength, high-conductivity copper alloys, medium- and high-voltage electrical contact materials, high-performance metal chromium powder, CT and DR X-ray tube components) supported by numerous national and provincial awards and **290** authorized invention patents; the R&D innovation model is guided by "four orientations," continuously enhancing innovation capabilities through market orientation, frontier research, industry-university-research collaboration, and digital management - The company has received awards such as the Ministry of Industry and Information Technology's Manufacturing Single Champion Product, the National Science and Technology Progress Second Prize, the China Nonferrous Metals Industry Science and Technology First Prize, and the China Patent Excellence Award; as of the end of the reporting period, it had obtained **290** authorized invention patents[77](index=77&type=chunk) - The company's main R&D technologies have all achieved industrialization, including manufacturing technologies for traction motor rotor end rings and conductor bars, vacuum casting manufacturing technology, low-temperature liquid nitrogen grinding manufacturing technology, surface material treatment technology, optical module chip base manufacturing technology, and liquid rocket engine thrust chamber inner wall manufacturing technology[79](index=79&type=chunk)[80](index=80&type=chunk) - The R&D innovation model adheres to "four orientations," guided by national needs, customer needs, and internal improvement needs, conducting R&D innovation activities around the pain points, difficulties, and bottlenecks of the industrial chain and benchmark customers[80](index=80&type=chunk) - The company has built a strong R&D innovation model by closely following technological and market trends, engaging in industry-university-research collaboration, enhancing R&D personnel capabilities, participating in major national projects, and promoting the digitalization of R&D management[81](index=81&type=chunk) [Core Technologies and R&D Progress](index=22&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E6%A0%B8%E5%BF%83%E6%8A%80%E6%9C%AF%E4%B8%8E%E7%A0%94%E5%8F%91%E8%BF%9B%E5%B1%95) During the reporting period, the company continued to advance core technology R&D, achieving significant progress in high-strength, high-conductivity copper alloys, medium- and high-voltage electrical contact materials, high-performance metal chromium powder, CT and DR X-ray tube components, new generation copper-iron alloy materials, optical module chip base materials, and liquid rocket engine thrust chamber inner walls; many technologies have achieved industrialization or small-batch supply, and have received national science and technology awards and "Single Champion" recognition; during the reporting period, the company's R&D investment increased by **30.73%**, with **25** ongoing R&D projects, many technologies reaching domestic or international leading levels, and a continuously optimized R&D personnel structure - The company continuously improved manufacturing technologies for traction motor end rings and conductor bars, non-vacuum continuous casting of flat ingots, and vacuum melting of ingots, enhancing material uniformity and consistency[83](index=83&type=chunk) - In the field of medium- and high-voltage electrical contact materials and products, the company enhanced vacuum casting and vacuum consumable arc melting technologies, achieved commercialization of 126kV-252kV high-voltage contacts, and developed 3D printing and laser surface remelting technologies[84](index=84&type=chunk)[85](index=85&type=chunk) - High-performance metal chromium powder technology is mature and industrialized, including low-temperature crushing powder preparation, vacuum thermal carbon reduction high-temperature purification, spherical chromium powder preparation, ultra-fine powder preparation, and vacuum gas atomization powder preparation technologies[86](index=86&type=chunk)[87](index=87&type=chunk) - CT and DR X-ray tube component technology continues to be optimized, including surface material treatment, rotary anode rotor brazing, metal tube housing materials and plastic deformation processing, and heterogeneous metal connection technology, and developed high-pulse power fixed anode targets for DR X-ray tubes[88](index=88&type=chunk) - Optical module chip base manufacturing technology optimizes 3DP printing processes, combined with pressure infiltration, to improve product yield and promote industrial application[90](index=90&type=chunk) - Liquid rocket engine thrust chamber inner wall technology achieved breakthrough progress in CuCrNb material 3D printing and hot isostatic pressing near-net shaping processes, and is advancing the development of inner and outer wall spinning technology[92](index=92&type=chunk) - During the reporting period, the company's total R&D investment was **42.40 million yuan**, a year-on-year increase of **30.73%**, accounting for **5.49%** of operating revenue, an increase of **0.29** percentage points[101](index=101&type=chunk) - The company has a total of **25** ongoing R&D projects, with an estimated total investment of **130.94 million yuan**, a current period investment of **23.71 million yuan**, and a cumulative investment of **63.71 million yuan**; many technologies have reached domestic or international leading levels[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - The number of R&D personnel is **94**, accounting for **7.83%** of the company's total workforce, and the average R&D personnel salary was **92,100 yuan**, a year-on-year increase of **11.50%**[110](index=110&type=chunk) [Risk Factors](index=34&type=section&id=%E5%9B%9B%E3%80%81%20%E9%A3%8E%E9%99%A9%E5%9B%A0%E7%B4%A0) The company faces multiple risks, including core competitiveness risks such as technological upgrades, R&D failure, technology transfer failure, and loss of technical talent; operational risks include the inability to absorb new capacity, uncertainty in new product market development, funding for new project construction, and raw material price fluctuations and hedging management risks; financial risks primarily involve the recovery of notes/accounts receivable, inventory impairment, debt repayment and interest, and changes in tax policies; additionally, macroeconomic factors such as trade policies and exchange rate fluctuations may also adversely affect the company's operations - Technology upgrade and iteration risk: The new materials industry experiences rapid technological innovation; if the company's R&D investment and progress lag, its competitive advantage may be affected[111](index=111&type=chunk) - R&D failure risk: New material R&D involves significant investment, long certification cycles, and high experimental verification risks, potentially leading to R&D failure and impacting operating performance[112](index=112&type=chunk)[113](index=113&type=chunk) - Technology transfer failure risk: If newly developed technologies fail to form products or cannot be mass-produced, initial R&D investments may not achieve expected benefits[114](index=114&type=chunk) - Risk of technical talent loss and termination of technical cooperation: The technology-intensive industry relies heavily on talent and cooperation; loss or termination could slow R&D progress or lead to core technology leakage[115](index=115&type=chunk) - Risk of inability to absorb new capacity: Refinancing projects and new project construction will lead to capacity expansion; if market demand, industrial policies, competitive environment change, or products fail to meet demand, capacity may not be absorbed[116](index=116&type=chunk) - Raw material price fluctuation and hedging management risk: Price fluctuations of raw materials such as copper significantly impact production costs; failure to effectively respond or ineffective hedging operations may lead to adverse effects[119](index=119&type=chunk)[120](index=120&type=chunk) - Risk of notes receivable acceptance and accounts receivable recovery: At period-end, notes receivable, accounts receivable, and accounts receivable financing combined account for **17.36%** of total assets; if credit management is inadequate or customers face operational difficulties, the company may experience tight working capital and bad debt losses[121](index=121&type=chunk) - Debt repayment and interest risk: The company's capital structure relies on debt financing; if production and operations are unfavorable or funds cannot be raised, the company may face debt repayment and interest risks[123](index=123&type=chunk) - Trade policy risk: The company exports products to regions such as Europe and the United States; if relevant countries introduce unfavorable trade policies, international business development will face uncertainties[125](index=125&type=chunk) - Exchange rate fluctuation risk: Exchange rate fluctuations may affect revenue, costs, and profits; the company mitigates this risk by strengthening foreign exchange management and hedging[126](index=126&type=chunk) [Main Operating Conditions During the Reporting Period](index=37&type=section&id=%E4%BA%94%E3%80%81%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) During the reporting period, the company achieved operating revenue of **772 million yuan**, a **23.74%** year-on-year increase, and net profit attributable to shareholders of **74.74 million yuan**, a **33.61%** year-on-year increase; financial expenses decreased by **65.97%** due to a substantial increase in exchange gains from the Euro's appreciation; R&D expenses increased by **30.73%** year-on-year, while net cash flow from operating activities decreased by **276.53%** primarily due to increased working capital for business growth; total assets increased by **16.83%** to **2.49 billion yuan**, with significant increases in accounts receivable and non-current liabilities due within one year; the company's overseas assets accounted for **4.84%** of total assets - From January to June 2025, the company achieved operating revenue of **772.15 million yuan**, net profit attributable to listed company shareholders of **74.74 million yuan**, and net profit attributable to listed company shareholders after deducting non-recurring gains and losses of **69.68 million yuan**, representing year-on-year increases of **23.74%**, **33.61%**, and **36.43%** respectively[127](index=127&type=chunk) Main Business Analysis | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 772,153,433.60 | 624,014,920.33 | 23.74 | | Operating Cost | 589,426,321.53 | 475,500,699.47 | 23.96 | | Selling Expenses | 12,944,221.94 | 10,505,117.57 | 23.22 | | Administrative Expenses | 36,345,221.72 | 33,112,049.27 | 9.76 | | Financial Expenses | 2,886,825.76 | 8,483,693.42 | -65.97 | | R&D Expenses | 42,403,168.00 | 32,435,695.92 | 30.73 | | Net Cash Flow from Operating Activities | -7,828,568.44 | 4,434,631.36 | -276.53 | | Net Cash Flow from Investing Activities | -175,760,993.26 | -138,937,011.40 | Not applicable | | Net Cash Flow from Financing Activities | 225,117,221.18 | 139,692,513.73 | 61.15 | - The change in financial expenses was mainly due to a substantial increase in exchange gains caused by the appreciation of the Euro, resulting in a **65.97%** decrease[129](index=129&type=chunk) - The change in R&D expenses was mainly due to the company's increased R&D efforts and investment during the current period[130](index=130&type=chunk) - The change in net cash flow from operating activities was mainly due to increased working capital for business growth[130](index=130&type=chunk) [Asset and Liability Analysis](index=37&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) As of the end of the reporting period, the company's total assets reached **2.49 billion yuan**, a **16.83%** year-on-year increase; among current assets, accounts receivable and accounts receivable financing increased by **31.30%** and **108.80%** respectively, prepayments increased by **94.17%**, and other current assets increased by **37.24%**; among non-current assets, construction in progress increased by **21.32%**; regarding liabilities, derivative financial liabilities increased by **146.66%**, notes payable by **152.73%**, non-current liabilities due within one year by **107.92%**, and long-term borrowings by **37.55%**; the company's overseas assets accounted for **4.84%** of total assets, with restricted assets totaling **251.59 million yuan** Asset and Liability Status Changes (Period-end vs. Prior Year-end) | Item Name | Current Period-end Amount (yuan) | Current Period-end as % of Total Assets | Prior Year-end Amount (yuan) | Prior Year-end as % of Total Assets | Change from Prior Year-end (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 209,266,547.60 | 8.39 | 164,036,967.16 | 7.69 | 27.57 | | Derivative Financial Assets | 1,764,615.36 | 0.07 | - | - | Not applicable | | Accounts Receivable | 376,390,810.70 | 15.10 | 286,674,384.34 | 13.44 | 31.30 | | Accounts Receivable Financing | 17,803,041.72 | 0.71 | 8,526,404.06 | 0.40 | 108.80 | | Prepayments | 9,520,353.47 | 0.38 | 4,903,057.86 | 0.23 | 94.17 | | Other Receivables | 12,171,532.38 | 0.49 | 8,772,826.49 | 0.41 | 38.74 | | Inventories | 309,515,394.56 | 12.42 | 258,375,446.32 | 12.11 | 19.79 | | Other Current Assets | 58,498,097.17 | 2.35 | 42,624,134.50 | 2.00 | 37.24 | | Construction in Progress | 385,175,114.83 | 15.45 | 317,486,049.15 | 14.88 | 21.32 | | Derivative Financial Liabilities | 840,352.54 | 0.03 | 340,695.05 | 0.02 | 146.66 | | Notes Payable | 27,800,000.00 | 1.12 | 11,000,000.00 | 0.52 | 152.73 | | Non-current Liabilities Due Within One Year | 203,682,752.81 | 8.17 | 97,961,884.90 | 4.59 | 107.92 | | Long-term Borrowings | 534,942,671.75 | 21.46 | 388,911,163.03 | 18.23 | 37.55 | | Long-term Payables | 1,323,666.71 | 0.05 | - | - | Not applicable | - Total assets at period-end were **2.49 billion yuan**, an increase of **16.83%** compared to the end of the previous year[22](index=22&type=chunk) - Overseas assets amounted to **120.65 million yuan**, accounting for **4.84%** of total assets[134](index=134&type=chunk) - As of the end of the reporting period, the company's total restricted assets amounted to **251.59 million yuan**, including cash and cash equivalents, derivative financial assets, notes receivable, accounts receivable, fixed assets, construction in progress, and intangible assets[136](index=136&type=chunk) [Investment Status Analysis](index=41&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company did not disclose significant equity investments in its overall analysis of external equity investments during the reporting period; for major non-equity investments, the industrialization project for liquid rocket engine thrust chamber materials, parts, and components had a cumulative investment of **47.23 million yuan**, and the R&D and industrialization project for 30,000 sets/year of electro-vacuum materials and components for medical imaging equipment had a cumulative investment of **151.30 million yuan**; the company's financial assets measured at fair value totaled **100.63 million yuan** at period-end, including **81.07 million yuan** in other equity instrument investments; the book value of the company's derivative investments for hedging purposes was **54.85 million yuan** at period-end, accounting for **3.86%** of net assets, primarily used to mitigate foreign exchange fluctuation risks - The industrialization project for liquid rocket engine thrust chamber materials, parts, and components had a cumulative investment of **47.23 million yuan**, with cumulative project investment accounting for **9.26%** of the budget[138](index=138&type=chunk) - The R&D and industrialization project for 30,000 sets/year of electro-vacuum materials and components for medical imaging equipment had a cumulative investment of **151.30 million yuan**, with cumulative project investment accounting for **37.83%** of the budget[138](index=138&type=chunk) Financial Assets Measured at Fair Value (Period-end) | Asset Category | Period-end Amount (yuan) | | :--- | :--- | | Other - Accounts Receivable Financing | 17,803,041.72 | | Other - Other Equity Instrument Investments | 81,065,337.45 | | Financial Derivatives | 1,764,615.36 | | Total | 100,632,994.53 | - During the reporting period, the book value of derivative investments for hedging purposes at period-end was **54.85 million yuan**, accounting for **3.86%** of the company's net assets at the end of the reporting period, primarily used for forward foreign exchange settlement and sales, and foreign exchange option swap portfolios to mitigate and prevent foreign exchange rate fluctuation risks[144](index=144&type=chunk) - During the reporting period, the total amount of the aforementioned contracts recognized in current profit or loss was **-2.84 million yuan**[144](index=144&type=chunk) [Analysis of Major Holding and Participating Companies](index=44&type=section&id=%EF%BC%88%E5%85%AD%EF%BC%89%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 Shaanxi Sirui Fufeng Advanced Copper Alloy Co, Ltd and Xi'an Sirui Advanced Copper Alloy Technology Co, Ltd; Shaanxi Sirui Fufeng Advanced Copper Alloy Co, Ltd primarily engages in R&D, production, and sales of high-strength, high-conductivity copper alloy materials and products and high-performance metal powders, with operating revenue of **482.36 million yuan** and net profit of **27.70 million yuan** during the reporting period; Xi'an Sirui Advanced Copper Alloy Technology Co, Ltd primarily engages in R&D, production, and sales of high-voltage electrical contact materials and products, with operating revenue of **96.85 million yuan** and net profit of **5.95 million yuan** during the reporting period Major Subsidiary Financial Data (January-June 2025) | Company Name | Company Type | Main Business | Registered Capital (ten thousand yuan) | Total Assets (ten thousand yuan) | Net Assets (ten thousand yuan) | Operating Revenue (ten thousand yuan) | Operating Profit (ten thousand yuan) | Net Profit (ten thousand yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shaanxi Sirui Fufeng Advanced Copper Alloy Co, Ltd | Subsidiary | R&D, production, and sales of high-strength, high-conductivity copper alloy materials and products and high-performance metal powders | 40,000.00 | 76,013.20 | 46,312.49 | 48,235.83 | 2,962.94 | 2,769.72 | | Xi'an Sirui Advanced Copper Alloy Technology Co, Ltd | Subsidiary | R&D, production, and sales of high-voltage electrical contact materials and products | 16,000.00 | 43,273.67 | 20,549.38 | 9,685.31 | 673.90 | 595.28 | [Section IV Corporate Governance, Environment, and Society](index=46&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) [Changes in Company Directors, Senior Management, and Core Technical Personnel](index=46&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%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%92%8C%E6%A0%B8%E5%BF%83%E6%8A%80%E6%9C%AF%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's Board of Directors and Supervisory Board completed their re-election, with the Supervisory Board being abolished; Zhang Hang and Liang Jiyu were elected as directors, and Wang Lei was appointed as Board Secretary, while directors, supervisors, and senior management including Li Gang, Wu Xuhong, Liang Jianbin, Xu Runsheng, Wang Wangang, Fan Min, Cong Xiabing, and Ma Guoqing resigned - During the reporting period, the company's third Board of Directors and third Supervisory Board completed their terms; the Supervisory Board has been abolished, and the company no longer has a Supervisory Board or supervisors[149](index=149&type=chunk) - Zhang Hang was elected as a director, Liang Jiyu was elected as an employee representative director, and Wang Lei was appointed as Board Secretary[149](index=149&type=chunk) - Li Gang, Wu Xuhong, Liang Jianbin, Xu Runsheng (former director, Board Secretary), Wang Wangang (former Chairman of the Supervisory Board), Fan Min, Cong Xiabing (former employee representative supervisor), and Ma Guoqing (former Deputy General Manager) resigned[149](index=149&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=46&type=section&id=%E4%BA%8C%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company's semi-annual report does not include a profit distribution or capital reserve conversion plan - Profit distribution plan or capital reserve conversion plan for this reporting period: Not applicable[150](index=150&type=chunk) [Company Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures and Their Impact](index=47&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%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D) The company's 2023 stock option incentive plan's reserved grant registration has been completed, with **4.134 million** reserved options granted at an exercise price of **9.78 yuan/share**; the conditions for the first exercise period of the initial grant of stock options have been met, with **7.0408 million** options exercisable, and the actual exercise period is from May 21, 2025, to April 23, 2026; as of the end of the reporting period, **4.086 million** shares have been exercised and registered for transfer, accounting for **58.03%** of the exercisable amount for this period - T

江苏通用科技股份有限公司2025 年半年度报告 公司代码：601500 公司简称：通用股份 江苏通用科技股份有限公司 2025 年半年度报告 1 / 204 江苏通用科技股份有限公司2025 年半年度报告 重要提示 一、 本公司董事会及董事、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。 二、 公司全体董事出席董事会会议。 三、 本半年度报告未经审计。 四、 公司负责人贾国荣、主管会计工作负责人倪晓飞及会计机构负责人（会计主管 人员）蒋洁华声明：保证半年度报告中财务报告的真实、准确、完整。 五、 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 不适用 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告中有涉及未来计划、发展战略等前瞻性描述，不构成公司对投资者的实质 承诺，敬请投资者注意投资风险。 七、 是否存在被控股股东及其他关联方非经营性占用资金情况 否 八、 是否存在违反规定决策程序对外提供担保的情况 否 九、 是否存在半数以上董事无法保证公司所披露半年度报告的真实性、准确性和完 整性 否 十、 重大风险提示 公司已 ...

常州星宇车灯股份有限公司2025 年半年度报告 公司代码：601799 公司简称：星宇股份 常州星宇车灯股份有限公司 2025 年半年度报告 1 / 145 常州星宇车灯股份有限公司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。 二、 公司全体董事出席董事会会议。 三、 本半年度报告未经审计。 四、 公司负责人周晓萍、主管会计工作负责人高鹏及会计机构负责人（会计主管人员）陈文斌 声明：保证半年度报告中财务报告的真实、准确、完整。 五、 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 母公司2025年半年度实现净利润780,626,267.93元，加上以前年度未分配利润 6,050,734,165.62元，扣除2025年发放的2024年度股东现金红利369,600,717.20元，期末可供股 东分配的利润为6,461,759,716.35元。 经公司第七届董事会第三次会议审议，提出2025年半年度利润分配预案为：以总股本 285,679,419股为基数 ...

思看科技（杭州）股份有限公司2025 年半年度报告 公司代码：688583 公司简称：思看科技 思看科技（杭州）股份有限公司 2025 年半年度报告 1 / 269 思看科技（杭州）股份有限公司2025 年半年度报告 重要提示 一、 本公司董事会及董事、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。 二、 重大风险提示 报告期内，不存在对公司生产经营构成实质性影响的重大风险。公司已于本报告中详细描述 了存在的相关风险，详见"第三节管理层讨论与分析"中关于公司风险因素的相应内容。 三、 公司全体董事出席董事会会议。 四、 本半年度报告未经审计。 五、 公司负责人王江峰、主管会计工作负责人赵秀芳及会计机构负责人（会计主管人员）胡伟 声明：保证半年度报告中财务报告的真实、准确、完整。 六、 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 公司 2025 年半年度利润分配预案为：公司拟向全体股东每 10 股派发现金红利 1.5 元（含税）。 截至审议本次利润分配方案的董事会召开日，公司总股本 88,400,000 股，以此计算合计 ...

公司代码：600737 公司简称：中粮糖业 中粮糖业控股股份有限公司 2025 年半年度报告 1 / 160 中粮糖业控股股份有限公司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。 二、 公司全体董事出席董事会会议。 中粮糖业控股股份有限公司2025 年半年度报告 三、 本半年度报告未经审计。 四、 公司负责人李明华、主管会计工作负责人唐强及会计机构负责人（会计主管人员）杨华声 明：保证半年度报告中财务报告的真实、准确、完整。 五、 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 无 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告中所涉及的未来计划发展战略等前瞻性描述，不构成公司对投资者的实质承诺，敬请 投资者注意投资风险。 七、 是否存在被控股股东及其他关联方非经营性占用资金情况 否 八、 是否存在违反规定决策程序对外提供担保的情况 否 | 备查文件目录 | | | --- | --- | | | 公告的原稿。 | 九、 是否存在半数以上董事 ...

广东锦龙发展股份有限公司 2025 年半年度报告 2025 年 8 月 广东锦龙发展股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 一、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、误导性陈述或重大遗漏，并承 担个别和连带的法律责任。 二、公司负责人张丹丹、主管会计工作负责人盘丽卿及会计机构负责人 (会计主管人员)盘丽卿声明：保证本半年度报告中财务报告的真实、准确、 完整。 三、所有董事均已出席了审议本次半年报的董事会会议。 四、影响公司未来发展的风险因素及应对措施详见本半年度报告第三节 "管理层讨论与分析"之"十、公司面临的风险和应对措施"。 五、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 | 第二节 | 公司简介和主要财务指标 | | 5 | | --- | --- | --- | --- | | 第三节 | 管理层讨论与分析 | | 9 | | 第九节 | 其他报送数据 | | 160 | 广东锦龙发展股份有限公司 2025 年半年度报告全文 备查文件目录 一、载有公司负责人、主管会计工作负责人、会计机构负责人 ...

[Important Notes](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [Statement on the Authenticity of the Report](index=2&type=section&id=%E4%B8%80%E3%80%81%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%8F%8A%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%E4%BF%9D%E8%AF%81%E5%8D%8A%E5%B9%B4%E5%BA%A6%E6%8A%A5%E5%91%8A%E5%86%85%E5%AE%B9%E7%9A%84%E7%9C%9F%E5%AE%9E%E6%80%A7%E3%80%81%E5%87%86%E7%A1%AE%E6%80%A7%E3%80%81%E5%AE%8C%E6%95%B4%E6%80%A7%EF%BC%8C%E4%B8%8D%E5%AD%98%E5%9C%A8%E8%99%9A%E5%81%87%E8%AE%B0%E8%BD%BD%E3%80%81%E8%AF%AF%E5%AF%BC%E6%80%A7%E9%99%88%E8%BF%B0%E6%88%96%E9%87%8D%E5%A4%A7%E9%81%97%E6%BC%8F%EF%BC%8C%E5%B9%B6%E6%89%BF%E6%8B%85%E4%B8%AA%E5%88%AB%E5%92%8C%E8%BF%9E%E5%B8%A6%E7%9A%84%E6%B3%95%E5%BE%8B%E8%B4%A3%E4%BB%BB%E3%80%82) The Board of Directors, Board of Supervisors, and senior management declare the semi-annual report is true, accurate, and complete, and bear legal responsibility; the report is unaudited - The company's directors, supervisors, and senior management guarantee the authenticity, accuracy, and completeness of the semi-annual report[3](index=3&type=chunk) - This semi-annual report is **unaudited**[5](index=5&type=chunk) - The company will **not distribute profits or convert capital reserves into share capital** for the first half of 2025[6](index=6&type=chunk) [Risk Disclosure on Forward-Looking Statements](index=2&type=section&id=%E5%85%AD%E3%80%81%E5%89%8D%E7%9E%BB%E6%80%A7%E9%99%88%E8%BF%B0%E7%9A%84%E9%A3%8E%E9%99%A9%E5%A3%B0%E6%98%8E) The company advises investors that forward-looking statements regarding future plans and strategies do not constitute substantive commitments and involve investment risks - Forward-looking statements in this report, such as future plans and development strategies, do not constitute substantive commitments to investors, who are advised to be aware of investment risks[7](index=7&type=chunk) [Section 1 Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) [Definitions of Common Terms](index=4&type=section&id=%E5%B8%B8%E7%94%A8%E8%AF%8D%E8%AF%AD%E9%87%8A%E4%B9%89) This section provides definitions for common terms used in the report, including CSRC, iReader Technology, digital reading, digital content, IP, AIGC, and the reporting period - "Digital reading" is defined as the digitization of reading, encompassing both reading objects and methods, featuring large storage, convenient retrieval, and low cost[13](index=13&type=chunk) - "AIGC" is defined as content generated using artificial intelligence technology[13](index=13&type=chunk) - The reporting period refers to **January 1, 2025, to June 30, 2025**[13](index=13&type=chunk) [Section 2 Company Profile and Key Financial Indicators](index=4&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) [Company Information](index=4&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section outlines the company's Chinese name, abbreviation, English name and its abbreviation, and legal representative information - The company's Chinese name is iReader Technology Co, Ltd, abbreviated as iReader Technology[15](index=15&type=chunk) - The company's legal representative is Cheng Xiangjun[15](index=15&type=chunk) [Contact Information](index=4&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 representatives, including name, address, telephone, fax, and email - The company's contact address is 2029E, 2nd Floor, Sihui Building, Sihui East, Chaoyang District, Beijing, China[17](index=17&type=chunk) - The investor relations email address is ir@zhangyue.com[17](index=17&type=chunk) [Changes in Basic Information](index=5&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E5%8F%98%E6%9B%B4%E7%AE%80%E4%BB%8B) This section describes the change in the company's registered address on May 26, 2023, and provides the office address and website - The company's registered address was changed on **May 26, 2023**[18](index=18&type=chunk) - The company's website is http://www.zhangyue.com[18](index=18&type=chunk) [Information Disclosure and Report Availability](index=5&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) This section specifies the designated newspapers for information disclosure, the website for publishing the semi-annual report, and the location where the report is available - The company's designated newspapers for information disclosure are China Securities Journal and Shanghai Securities News[19](index=19&type=chunk) - The website for publishing the semi-annual report is www.sse.com.cn[19](index=19&type=chunk) [Company Stock Profile](index=5&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) This section provides information on the company's stock type, listing exchange, stock ticker, and stock code - The company's stock is A-share, listed on the Shanghai Stock Exchange, with the ticker "iReader Technology" and stock code **603533**[20](index=20&type=chunk) [Key Accounting Data and Financial Indicators](index=6&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%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) In H1 2025, operating revenue grew by 14.58% year-over-year, but total profit and net profit attributable to shareholders declined significantly due to rising costs of derivative businesses, increased sales expenses, and a drop in digital reading platform revenue Key Accounting Data for H1 2025 | Key Accounting Data | Current Period (Jan-Jun) | Same Period Last Year | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,526,069,549.77 | 1,331,857,008.65 | 14.58 | | Total Profit | -148,638,110.67 | -45,621,760.11 | -225.81 | | Net Profit Attributable to Shareholders | -160,141,782.55 | -47,707,191.99 | -235.68 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | -170,936,273.89 | -56,028,909.11 | -205.09 | | Net Cash Flow from Operating Activities | -227,179,863.43 | -144,069,824.32 | -57.69 | | Net Assets Attributable to Shareholders (End of Period) | 2,368,122,807.38 | 2,584,081,781.44 | -8.36 | | Total Assets (End of Period) | 3,098,420,389.62 | 3,219,655,128.17 | -3.77 | Key Financial Indicators for H1 2025 | Key Financial Indicators | Current Period (Jan-Jun) | Same Period Last Year | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/Share) | -0.36 | -0.11 | -227.27 | | Diluted Earnings Per Share (RMB/Share) | -0.36 | -0.11 | -227.27 | | Basic EPS (Excluding Non-recurring Items) (RMB/Share) | -0.39 | -0.13 | -200.00 | | Weighted Average Return on Net Assets (%) | -6.40 | -1.91 | Decreased by 4.49 percentage points | | Weighted Average ROE (Excluding Non-recurring Items) (%) | -6.83 | -2.25 | Decreased by 4.58 percentage points | - The decrease in net profit attributable to shareholders was mainly due to the company's vigorous development of derivative businesses, leading to **increased cost of sales, selling expenses, and administrative expenses**[23](index=23&type=chunk) [Non-recurring Profit and Loss](index=6&type=section&id=%E4%B9%9D%E3%80%81%E9%B3%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) This section lists the non-recurring profit and loss items and their amounts for the reporting period, totaling RMB 10,794,491.34 Non-recurring Profit and Loss Items and Amounts for H1 2025 | Item | Amount (RMB) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | 67,499.43 | | Government Grants Recognized in Current Profit or Loss | 4,508,891.60 | | Fair Value Changes in Financial Assets and Liabilities Held by Non-financial Enterprises | 6,757,890.75 | | Other Non-operating Income and Expenses | -436,136.28 | | Less: Income Tax Impact | -8,535.93 | | Minority Interest Impact (After Tax) | 112,190.09 | | **Total** | **10,794,491.34** | [Section 3 Management Discussion and Analysis](index=7&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) [Industry and Core Business Overview](index=7&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%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company's core businesses include internet digital reading platform services, derivative businesses (short dramas), and copyright products; the digital reading industry continues to grow, with advertising revenue surpassing subscription revenue for the first time, while the short drama market and AIGC technology applications are expanding rapidly [Company's Core Business](index=7&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1) The company's core businesses include internet digital reading platform services (such as "iReader" and "Dejian"), derivative businesses involving the production and operation of short dramas and other video content based on high-quality IP, and a copyright products business focused on original online literature copyright operations - The company's core businesses are **internet digital reading platform services, derivative businesses, and copyright products**[28](index=28&type=chunk) - The digital reading platform generates revenue through user payments or traffic monetization[28](index=28&type=chunk) - The derivative business focuses on the production, creation, and operation of short dramas and other video content based on high-quality IP resources[28](index=28&type=chunk) [Industry Development](index=7&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) The digital reading market reached RMB 66.14 billion, up 16.65% YoY, with advertising and other income surpassing subscription revenue for the first time; the online literature market grew to RMB 49.55 billion, up 29.37% YoY; the micro-short drama user base reached 696 million, with a market size of RMB 50.5 billion, expected to hit RMB 63.43 billion in 2025; AIGC technology is increasingly applied in online literature creation and micro-short drama production, enhancing efficiency but also bringing risks such as copyright issues China's Digital Reading Market Revenue Scale in 2024 | Metric | Amount (RMB 100 million) | YoY Growth (%) | | :--- | :--- | :--- | | Overall Revenue Scale | 661.41 | 16.65 | | Advertising and Other Income | 307.94 | - | | Subscription Income | 278.67 | - | | Copyright Income | 74.80 | - | - In 2024, China's digital reading user base reached **670 million**, a year-over-year increase of **17.52%**[30](index=30&type=chunk) - In 2024, the revenue scale of China's online literature market was **RMB 49.55 billion**, a year-over-year increase of **29.37%**, with advertising revenue maintaining strong growth[31](index=31&type=chunk) - As of June 2025, the national user base for micro-short dramas reached **696 million**, with the market size reaching **RMB 50.5 billion** in 2024 and projected to reach **RMB 63.43 billion** in 2025[32](index=32&type=chunk) - AIGC continues to enhance creative efficiency in the online literature industry while introducing issues such as data security, information ethics, privacy, and copyright[33](index=33&type=chunk)[34](index=34&type=chunk) [Analysis of Operating Performance](index=9&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In H1 2025, the company upgraded its strategy to a "multimodal content production and operation platform in the AI era," with derivative business revenue surging 149.09% to become the largest segment, driving a 14.58% increase in total revenue; however, increased investment in domestic and overseas expansion and declining digital reading platform revenue led to a 235.68% drop in net profit - The company upgraded its strategy to a "**multimodal content production and operation platform in the AI era**"[35](index=35&type=chunk) Operating and Derivative Business Revenue in H1 2025 | Metric | Amount (RMB 10,000) | YoY Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 152,606.95 | 14.58 | | Short Drama and Other Derivative Business Revenue | 83,784.60 | 149.09 | - Net profit attributable to shareholders was **-RMB 160.14 million**, a decrease of **235.68%** from the same period last year[35](index=35&type=chunk) - The company continued to vigorously develop short drama and other derivative businesses, building a dual-driver model of "domestic expansion, overseas breakthrough," but short-term investment increases dragged down profitability[35](index=35&type=chunk) - The digital reading platform business experienced a decline in revenue, but short-term content costs remained rigid, further negatively impacting profitability[35](index=35&type=chunk) - Revenue from short drama and other derivative businesses **grew significantly by 149.09%**, becoming the company's largest business segment[37](index=37&type=chunk) - The company is actively promoting the application of AI large models in digital reading and short dramas, launching features like "AI Storytelling Radio" and empowering script generation, visual presentation, and post-production[39](index=39&type=chunk) [Analysis of Core Competencies](index=10&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%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 lie in its large and stable user base, rich and high-quality content resources (including digital reading and short dramas), strong AI technology innovation capabilities, and deep operational development capabilities based on massive user and content data - **Large and stable user base**: The company has accumulated a large user scale in the digital reading and derivative business sectors, with stable user consumption habits[40](index=40&type=chunk) - **Rich and high-quality content resources**: Covering various types such as books, audiobooks, magazines, comics, self-published works, and videos, continuously enriched through the "iReader Literature" incubation ecosystem and short drama theme development[41](index=41&type=chunk)[42](index=42&type=chunk) - **Strong technological innovation capabilities**: With AI large models as the core engine, deepening technological applications in scenarios like short drama content creation, ad placement, and AI short drama production to improve efficiency and user experience[43](index=43&type=chunk) - **Deep operational development capabilities based on massive user and rich content**: Efficiently and accurately reaching users through big data and algorithms, achieving a combination of commercial value-add and user experience[44](index=44&type=chunk) [Key Operating Activities](index=11&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) During the reporting period, operating revenue increased by 14.58% YoY, driven by the rapid growth of derivative businesses, but cost of sales, selling expenses, and administrative expenses also rose accordingly; the asset and liability structure was adjusted, with significant increases in receivables and trading financial assets, while intangible assets decreased due to amortization [Analysis of Changes in Core Business Financial Items](index=11&type=section&id=(%E4%B8%80)%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, operating revenue increased by 14.58% YoY, mainly due to the development of derivative businesses; cost of sales and selling expenses increased by 16.31% and 25.86% respectively, primarily due to higher costs of derivative businesses and increased marketing efforts; R&D expenses decreased by 7.64% YoY, mainly due to the optimization of R&D personnel structure Key Financial Statement Item Changes | Item | Current Period (RMB) | Same Period Last Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,526,069,549.77 | 1,331,857,008.65 | 14.58 | | Operating Costs | 444,009,542.43 | 381,756,168.84 | 16.31 | | Selling Expenses | 1,087,904,808.49 | 864,373,738.76 | 25.86 | | Administrative Expenses | 67,822,386.74 | 60,622,410.63 | 11.88 | | Finance Costs | -12,171,110.20 | -13,789,471.32 | 11.74 | | R&D Expenses | 95,916,102.78 | 103,847,229.17 | -7.64 | | Net Cash Flow from Operating Activities | -227,179,863.43 | -144,069,824.32 | -57.69 | | Net Cash Flow from Investing Activities | -147,977,113.95 | -196,932,262.16 | 24.86 | | Net Cash Flow from Financing Activities | -45,719,988.49 | -15,325,010.20 | -198.34 | - Net cash flow from operating activities **decreased by 57.69%**, mainly due to the combined effect of cash inflows and outflows from operating activities[48](index=48&type=chunk) - Net cash flow from financing activities **decreased by 198.34%**, primarily due to an increase in cash outflows for dividend distribution, profit sharing, or interest payments[48](index=48&type=chunk) [Changes in Assets and Liabilities](index=12&type=section&id=(%E4%B8%89)%20%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, the company's receivables and trading financial assets increased significantly by 61.70% and 308.56% respectively, mainly due to business structure adjustments and an increase in wealth management products; intangible assets decreased by 34.45% due to amortization, and accounts payable increased by 66.65% due to an increase in promotional payables; overseas assets accounted for 11.75% of total assets Major Changes in Assets and Liabilities | Item Name | End of Current Period (RMB) | % of Total Assets | End of Last Year (RMB) | % of Total Assets | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable | 447,570,469.16 | 14.45 | 276,784,348.20 | 8.60 | 61.70 | Business structure adjustment, longer collection cycle | | Trading Financial Assets | 134,992,731.71 | 4.36 | 33,041,208.22 | 1.03 | 308.56 | Increase in wealth management products | | Other Receivables | 21,563,861.19 | 0.70 | 15,466,773.55 | 0.48 | 39.42 | Increase in dividends receivable | | Other Current Assets | 81,705,627.48 | 2.64 | 59,452,955.37 | 1.85 | 37.43 | Increase in input VAT to be deducted | | Intangible Assets | 57,942,255.81 | 1.87 | 88,400,172.73 | 2.75 | -34.45 | Amortization of intangible assets | | Long-term Deferred Expenses | 697,293.32 | 0.02 | 229,392.17 | 0.01 | 203.97 | New deferred expenses in the period | | Accounts Payable | 325,472,795.82 | 10.50 | 195,303,105.14 | 6.07 | 66.65 | Increase in payables for promotion | | Lease Liabilities | 6,141,066.50 | 0.20 | 8,980,364.07 | 0.28 | -31.62 | Decrease in lease payables | | Deferred Income | 0 | 0 | 500,000.00 | 0.02 | -100.00 | Government grant conditions met | | Other Non-current Liabilities | 12,667,673.17 | 0.41 | 20,745,077.32 | 0.64 | -38.94 | Long-term copyright advances recognized as revenue | - Overseas assets amounted to **RMB 363.93 million**, accounting for **11.75%** of total assets[52](index=52&type=chunk) [Investment Status](index=14&type=section&id=(%E5%9B%9B)%20%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 new external equity investments amounted to RMB 5 million, a 25% increase year-over-year; the closing balance of financial assets measured at fair value was RMB 527,234,286.56, mainly comprising derivative instruments and private equity funds - During the reporting period, the company made new external equity investments of **RMB 5.00 million**, an increase of **25.00%** compared to RMB 4.00 million in the same period last year[54](index=54&type=chunk) Financial Assets Measured at Fair Value at Period-End | Category | Opening Balance (RMB) | Current Period Fair Value Change (RMB) | Cumulative Fair Value Change in Equity (RMB) | Purchases (RMB) | Sales/Redemptions (RMB) | Closing Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Derivative Instruments | 33,041,208.22 | 1,767,890.75 | - | 319,500,000.00 | 219,316,367.26 | 134,992,731.71 | | Private Equity Funds | 35,013,478.85 | - | - | - | - | 35,013,478.85 | | Other | 377,159,676.00 | -10,931,600.00 | - | 9,000,000.00 | 357,228,076.00 | - | | **Total** | **445,214,363.07** | **1,767,890.75** | **-10,931,600.00** | **319,500,000.00** | **228,316,367.26** | **527,234,286.56** | - The company, as a limited partner, subscribed to a capital contribution of **RMB 49.90 million** to invest in the Nanjing Huatai Zijin Emerging Industry Fund Partnership (Limited Partnership)[57](index=57&type=chunk) [Major Holding and Participating Companies](index=15&type=section&id=(%E5%85%AD)%20%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 lists the financial status of the company's main subsidiaries, including Hainan iReader Technology Co, Ltd, Guangxi iReader Technology Co, Ltd, and Beijing Yikan Technology Co, Ltd, all of which recorded operating and net losses during the reporting period Financials of Major Subsidiaries (H1 2025) | Company Name | Type | Main Business | Registered Capital (RMB 10,000) | Total Assets (RMB 10,000) | Net Assets (RMB 10,000) | Operating Revenue (RMB 10,000) | Operating Profit (RMB 10,000) | Net Profit (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hainan iReader Technology Co, Ltd | Subsidiary | Digital Reading | 5,000.00 | 76,264.61 | 55,132.27 | 86,467.83 | -6,557.74 | -6,659.63 | | Guangxi iReader Technology Co, Ltd | Subsidiary | Content Operation | 200.00 | 11,530.80 | -6,568.94 | 12,763.02 | -6,842.80 | -6,842.80 | | Beijing Yikan Technology Co, Ltd | Subsidiary | Content Production | 1,000.00 | 10,722.40 | -2,153.04 | 9,726.84 | -2,613.43 | -2,638.68 | [Other Disclosures](index=15&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) The company faces risks from regulatory policy changes, intensified market competition, rising marketing costs, content piracy, and business model transformation; it has formulated a "Quality and Efficiency Enhancement with a Focus on Returns" action plan and continues to strengthen investor relations management [Potential Risks](index=15&type=section&id=(%E4%B8%80)%20%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%AF%B9%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces risks from national regulatory policy adjustments, intense market competition, rising marketing costs, digital content piracy, and business model transformation and innovation, all of which could adversely affect its operating performance and development potential - Risk of regulatory policy adjustments for digital reading and derivative businesses[58](index=58&type=chunk) - Risk of increasingly fierce market competition in digital reading and derivative businesses[60](index=60&type=chunk) - Risk of declining profitability due to rising marketing costs[61](index=61&type=chunk) - Risk of digital content piracy and infringement[62](index=62&type=chunk) - Risk of business model transformation and innovation[63](index=63&type=chunk) ["Quality and Efficiency Enhancement with a Focus on Returns" Action Plan and Investor Relations](index=16&type=section&id=(%E4%BA%8C)%20%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) The company is firmly advancing its business structure transformation, with derivative business revenue growing significantly, but short-term investment increases and a decline in the digital reading business have dragged down profitability; the company highly values investor returns, with a cash dividend payout ratio of 89.04% for fiscal year 2024, and continues to strengthen investor relations management through various channels to improve information disclosure quality - The company has upgraded its strategy from an "internet-era digital reading platform" to a "**multimodal content production and operation platform in the AI era**"[64](index=64&type=chunk) - Revenue from short drama and other derivative businesses **grew significantly by 149.09%**, becoming the company's largest business segment[65](index=65&type=chunk) - The proposed profit distribution plan for 2024 is a cash dividend of **RMB 1.00 per 10 shares (tax inclusive)**, with a cash dividend payout ratio of **89.04%**[66](index=66&type=chunk) - The company actively, promptly, and efficiently engages in interactive communication with investors through shareholder meetings, earnings calls, the SSE e-interaction platform, investor relations email, and hotlines[67](index=67&type=chunk) [Section 4 Corporate Governance, Environment, and Society](index=18&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) [Changes in Directors, Supervisors, and Senior Management](index=18&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, Director and Deputy General Manager Mr. Gao Bing resigned, and Mr. Li Zhaomeng was elected as a director of the fourth Board of Directors - Mr. Gao Bing, a director and Deputy General Manager of the company, submitted his resignation[69](index=69&type=chunk) - The company elected Mr. Li Zhaomeng as a director of the fourth Board of Directors[69](index=69&type=chunk) [Semi-Annual Profit Distribution Plan](index=18&type=section&id=%E4%BA%8C%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company does not plan to distribute profits or convert capital reserves into share capital for the first half of 2025 - The proposed semi-annual profit distribution plan and capital reserve conversion plan is "No"[70](index=70&type=chunk) [Social Responsibility and Public Welfare Projects](index=19&type=section&id=%E4%BA%94%E3%80%81%E5%B7%A9%E5%9B%BA%E6%8B%93%E5%B1%95%E8%84%B1%E8%B4%AB%E6%94%BB%E5%9D%9A%E6%88%90%E6%9E%9C%E3%80%81%E4%B9%A1%E6%9D%91%E6%8C%AF%E5%85%B4%E7%AD%89%E5%B7%A5%E4%BD%9C%E5%85%B7%E4%BD%93%E6%83%85%E5%86%B5) The company continued its "iReader Book Craftsman" public welfare project, providing home-based employment opportunities for people with disabilities by training them in e-book typesetting and proofreading skills - The company continued its disability assistance and poverty alleviation public welfare project, "**iReader Book Craftsman**"[72](index=72&type=chunk) - The project provides remote, home-based work positions by training people with disabilities in skills such as e-book typesetting, proofreading, and reviewing[72](index=72&type=chunk) - In the first half of 2025, the highest monthly income for outstanding employees in the "iReader Book Craftsman" project **exceeded RMB 7,440**[72](index=72&type=chunk) [Section 5 Significant Matters](index=20&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) [Fulfillment of Commitments](index=20&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company's actual controllers, directors, senior management, and shareholders with over 5% holdings have strictly fulfilled all commitments, including share sale restrictions, remedial measures, and avoidance of horizontal competition, which remain effective or have been completed on schedule - The company's actual controller, Cheng Xiangjun, has committed that the number of shares transferred annually during his tenure will not exceed **25%** of the total shares he directly or indirectly holds in the company[74](index=74&type=chunk) - All directors and senior management of the company have committed to fulfilling their duties faithfully and diligently, safeguarding the legitimate rights and interests of the listed company and all shareholders, and ensuring the effective implementation of remedial measures[74](index=74&type=chunk) - The controlling shareholders and actual controllers, Cheng Xiangjun and Zhang Lingyun, have committed not to improperly interfere in the company's management and operations, not to encroach on the company's interests, and to fulfill relevant measures to mitigate the dilution of immediate returns[75](index=75&type=chunk) - Cheng Xiangjun has committed to avoiding horizontal competition, and Zhang Lingyun has committed not to seek control of iReader Technology[75](index=75&type=chunk)[77](index=77&type=chunk) [Significant Related-Party Transactions](index=24&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engaged in routine related-party transactions such as copyright distribution and ad monetization, with a total actual transaction amount of RMB 522.91 million, of which ad monetization was the largest at RMB 241.29 million - The company and its subsidiaries engaged in related-party transactions related to daily operations such as copyright distribution and ad monetization[79](index=79&type=chunk) Execution of Routine Related-Party Transactions in H1 2025 | Transaction Category | Related Party | 2025 Estimated Amount (RMB 10,000) | Actual Amount in Reporting Period (Excluding Tax, RMB 10,000) | | :--- | :--- | :--- | :--- | | Copyright Translation | Douyin Vision Co, Ltd, etc | 9,000.00 | 3,268.20 | | Derivative | - | - | 23,360.00 | | Ad Monetization | Hubei Ocean Engine Technology Co, Ltd, etc | 70,000.00 | 24,129.34 | | Service Fee | Beijing Feishu Technology Co, Ltd | 200.00 | 111.37 | | Service Fee | Beijing Volcano Engine Technology Co, Ltd | 700.00 | 408.91 | | Service Fee | Wuhan Ocean Engine Xingtu Technology Co, Ltd, etc | 10,000.00 | 957.19 | | Other | Chengdu Guanghe Signal Technology Co, Ltd, etc | 300.00 | 51.19 | | **Total** | - | **90,200.00** | **52,290.64** | [Progress on the Use of Raised Funds](index=27&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E8%BF%9B%E5%B1%95%E8%AF%B4%E6%98%8E) The use of raised funds has progressed smoothly, with a cumulative investment of RMB 838.06 million, reaching an 80.76% progress rate; some projects are complete, and surplus funds have been permanently allocated to working capital, while the "Technology Center Construction Project" was changed to the "Intelligent Middle Platform Technology Upgrade Project" Overall Use of Raised Funds | Source | Date Received | Total Amount (RMB 10,000) | Net Amount (1) (RMB 10,000) | Committed Investment (2) (RMB 10,000) | Cumulative Investment (4) (RMB 10,000) | Cumulative Progress (%) (6)=(4)/(1) | Current Year Investment (8) (RMB 10,000) | Current Year % (9)=(8)/(1) | Amount for Changed Use (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Private Placement | Feb 3, 2021 | 106,111.14 | 103,770.08 | 106,111.14 | 83,806.27 | 80.76% | 5,140.79 | 4.95% | 34,516.00 | - The "Digital Copyright Resource Upgrade and Construction Project" has been completed, and the surplus raised funds of **RMB 9.03 million** have been permanently allocated to working capital[90](index=90&type=chunk) - The original investment project "Technology Center Construction Project" was changed to the "Intelligent Middle Platform Technology Upgrade Project," with a changed amount of **RMB 345.16 million**[91](index=91&type=chunk) - The company uses idle raised funds not exceeding **RMB 310 million** for cash management for a period of 12 months from the date of approval by the Board of Directors[93](index=93&type=chunk) [Other Significant Matters](index=30&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) There were no other significant matters requiring disclosure during the reporting period [Section 6 Changes in Share Capital and Shareholders](index=31&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) [Changes in Share Capital](index=31&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The company's total number of shares and share capital structure remained unchanged during the reporting period - During the reporting period, the company's total number of shares and share capital structure **remained unchanged**[97](index=97&type=chunk) [Shareholder Information](index=31&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had 63,055 common shareholders; shareholding is concentrated among the top ten shareholders, with Cheng Xiangjun and Zhang Lingyun collectively holding 41.97%, although their acting-in-concert relationship was terminated on February 28, 2025 - The total number of common shareholders at the end of the reporting period was **63,055**[98](index=98&type=chunk) Top Ten Shareholders' Holdings at Period-End | Shareholder Name | Shares Held (Shares) | Percentage (%) | Shareholder Type | | :--- | :--- | :--- | :--- | | Cheng Xiangjun | 93,352,370 | 21.27 | Domestic Individual | | Zhang Lingyun | 90,851,049 | 20.70 | Domestic Individual | | Beijing Quantum-leap Technology Co, Ltd | 27,357,246 | 6.23 | Domestic Non-state-owned Corp | | Liu Weiping | 13,599,154 | 3.10 | Domestic Individual | | Wang Liang | 13,502,014 | 3.08 | Domestic Individual | | Hong Kong Securities Clearing Company Ltd | 9,156,375 | 2.09 | Other | | Zhejiang Junhong Asset Management Co, Ltd - Junhong Qianjiang No. 11 Private Fund | 8,600,000 | 1.96 | Other | | China Life Insurance Co, Ltd - Universal - Guoshou Ruian | 2,743,900 | 0.63 | Other | | Bosera Asset Management - China Merchants Bank - Bosera Qinchuan No. 1 Collective Asset Management Plan | 2,703,600 | 0.62 | Other | | China Merchants Bank Co, Ltd - Southern CSI 1000 ETF | 2,426,100 | 0.55 | Other | - As of February 28, 2025, Mr. Zhang Lingyun and Mr. Cheng Xiangjun were acting in concert, collectively holding 184,203,419 shares, representing **41.97%** of the company's share capital; their acting-in-concert relationship was terminated thereafter[101](index=101&type=chunk) [Changes in Controlling Shareholder and Actual Controller](index=33&type=section&id=%E5%9B%9B%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) Effective February 28, 2025, the company's controlling shareholder and actual controller changed from Cheng Xiangjun and Zhang Lingyun to solely Cheng Xiangjun, following the non-renewal of their acting-in-concert agreement - The new controlling shareholder and new actual controller is **Cheng Xiangjun**[102](index=102&type=chunk) - The date of change was **February 28, 2025**[102](index=102&type=chunk) - The reason for the change was that the "Acting-in-Concert Agreement" and its "Supplementary Agreement" signed by Mr. Zhang Lingyun and Mr. Cheng Xiangjun were not renewed upon expiration on February 28, 2025, thereby terminating their acting-in-concert relationship[102](index=102&type=chunk) [Section 7 Bond-Related Matters](index=34&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) [Corporate Bonds and Debt Financing Instruments](index=34&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%EF%BC%88%E5%90%AB%E4%BC%81%E4%B8%9A%E5%80%BA%E5%88%B8%EF%BC%89%E5%92%8C%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E4%B8%9A%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7) The company had no corporate bonds or non-financial corporate debt financing instruments during the reporting period [Convertible Corporate Bonds](index=34&type=section&id=%E4%BA%8C%E3%80%81%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E6%83%85%E5%86%B5) The company had no convertible corporate bonds during the reporting period [Section 8 Financial Report](index=35&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) [Auditor's Report](index=35&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This semi-annual financial report is unaudited - This semi-annual report is **unaudited**[107](index=107&type=chunk) [Financial Statements](index=35&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 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity for H1 2025, offering a comprehensive view of the company's financial position, operating results, and cash flows [Consolidated Balance Sheet](index=35&type=section&id=%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 RMB 3,098,420,389.62, total current assets were RMB 2,346,724,362.02, total liabilities were RMB 696,329,028.13, and total equity attributable to parent company owners was RMB 2,368,122,807.38 - At period-end, cash and cash equivalents were **RMB 1,593,445,952.29**, trading financial assets were **RMB 134,992,731.71**, and accounts receivable were **RMB 447,570,469.16**[107](index=107&type=chunk) - At period-end, accounts payable were **RMB 325,472,795.82**, and contract liabilities were **RMB 219,348,389.66**[108](index=108&type=chunk) [Parent Company Balance Sheet](index=37&type=section&id=%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 RMB 3,329,741,119.65, total current assets were RMB 1,982,431,753.55, total liabilities were RMB 949,962,604.83, and total equity was RMB 2,379,778,514.82 - At period-end, cash and cash equivalents were **RMB 1,225,797,559.99**, accounts receivable were **RMB 412,406,916.39**, and other receivables were **RMB 194,069,290.94**[111](index=111&type=chunk) - At period-end, accounts payable were **RMB 250,117,944.00**, and contract liabilities were **RMB 112,437,073.05**[112](index=112&type=chunk) [Consolidated Income Statement](index=39&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) For Jan-Jun 2025, the company's consolidated total operating revenue was RMB 1,526,069,549.77, total operating costs were RMB 1,689,425,268.88, total profit was -RMB 148,638,110.67, and net profit attributable to parent company shareholders was -RMB 160,141,782.55 - Operating revenue **increased by 14.58%** YoY, operating costs **increased by 16.31%** YoY, and selling expenses **increased by 25.86%** YoY[115](index=115&type=chunk) - Total profit **decreased by 225.81%** YoY, and net profit attributable to parent company shareholders **decreased by 235.68%** YoY[115](index=115&type=chunk)[117](index=117&type=chunk) - Basic earnings per share was **-RMB 0.36/share**, and diluted earnings per share was **-RMB 0.36/share**[117](index=117&type=chunk) [Parent Company Income Statement](index=41&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) For Jan-Jun 2025, the parent company's operating revenue was RMB 680,337,952.38, and net profit was RMB 39,002,358.44, achieving a turnaround from a loss in the same period last year - The parent company's operating revenue **increased by 32.23%** YoY[119](index=119&type=chunk) - The parent company's net profit was **RMB 39,002,358.44**, compared to -RMB 47,827,864.63 in the same period last year, achieving a **turnaround to profitability**[120](index=120&type=chunk) [Consolidated Cash Flow Statement](index=42&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For Jan-Jun 2025, the company's net cash flow from operating activities was -RMB 227,179,863.43, net cash flow from investing activities was -RMB 147,977,113.95, net cash flow from financing activities was -RMB 45,719,988.49, and the net increase in cash and cash equivalents was -RMB 422,167,746.64 - Cash inflows from operating activities totaled **RMB 1,414,439,832.38**, while outflows totaled **RMB 1,641,619,695.81**[122](index=122&type=chunk) - Cash inflows from investing activities totaled **RMB 433,858,251.38**, while outflows totaled **RMB 581,835,365.33**[123](index=123&type=chunk) - Cash outflows from financing activities totaled **RMB 45,719,988.49**, mainly for dividend distribution, profit sharing, or interest payments[123](index=123&type=chunk) [Parent Company Cash Flow Statement](index=44&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For Jan-Jun 2025, the parent company's net cash flow from operating activities was -RMB 252,662,436.17, net cash flow from investing activities was -RMB 167,213,974.55, net cash flow from financing activities was -RMB 45,629,277.77, and the net increase in cash and cash equivalents was -RMB 465,505,688.49 - The parent company's cash inflows from operating activities totaled **RMB 622,429,895.46**, while outflows totaled **RMB 875,092,331.63**[126](index=126&type=chunk) - The parent company's cash inflows from investing activities totaled **RMB 229,487,999.55**, while outflows totaled **RMB 396,701,974.10**[126](index=126&type=chunk) - The parent company's cash outflows from financing activities totaled **RMB 45,629,277.77**, mainly for dividend distribution, profit sharing, or interest payments[126](index=126&type=chunk) [Consolidated Statement of Changes in Owner's Equity](index=47&type=section&id=%E5%90%88%E5%B9%B6%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) For Jan-Jun 2025, the company's consolidated total owner's equity decreased by RMB 208,611,418.23, mainly due to a total comprehensive income attributable to parent company owners of -RMB 172,069,290.56 and profit distribution of RMB 43,889,683.50 - Equity attributable to parent company owners was **RMB 2,584,081,781.44** at the beginning of the period and **RMB 2,368,122,807.38** at the end[129](index=129&type=chunk)[133](index=133&type=chunk) - Total comprehensive income attributable to parent company owners for the period was **-RMB 172,069,290.56**[130](index=130&type=chunk) - Profit distribution to owners for the period was **RMB 43,889,683.50**[131](index=131&type=chunk) [Parent Company Statement of Changes in Owner's Equity](index=54&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) For Jan-Jun 2025, the parent company's total owner's equity decreased by RMB 15,818,925.06, mainly due to a total comprehensive income of RMB 28,070,758.44 and profit distribution of RMB 43,889,683.50 - The parent company's owner's equity was **RMB 2,395,597,439.88** at the beginning of the period and **RMB 2,379,778,514.82** at the end[138](index=138&type=chunk)[139](index=139&type=chunk) - The parent company's total comprehensive income for the period was **RMB 28,070,758.44**[138](index=138&type=chunk) - The parent company's profit distribution to owners for the period was **RMB 43,889,683.50**[139](index=139&type=chunk) [Company Profile](index=58&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) iReader Technology Co, Ltd was established on September 8, 2008, and its total share capital has changed to 438,896,835 shares following several equity changes and private placements; the company's main operations are digital reading platform services and copyright product businesses - iReader Technology Co, Ltd was established on **September 8, 2008**[142](index=142&type=chunk) - The company's total share capital changed from 401,000,000.00 shares to **438,896,835.00 shares**[142](index=142&type=chunk) - The company's main operating activities are digital reading platform services and copyright product businesses[142](index=142&type=chunk) [Basis of Preparation for Financial Statements](index=58&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The financial statements are prepared on a going concern basis in accordance with the Enterprise Accounting Standards and relevant guidelines, and comply with CSRC disclosure requirements; the company has assessed its going concern ability as sound - The company prepares its financial statements on a going concern basis, recognizing and measuring transactions and events in accordance with the Enterprise Accounting Standards and their application guides and interpretations[144](index=144&type=chunk) - The company has assessed its going concern ability for the 12 months from the end of the reporting period and found no matters that would affect its ability to continue as a going concern[145](index=145&type=chunk) [Significant Accounting Policies and Estimates](index=58&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details significant accounting policies and estimates, including compliance with accounting standards, accounting period, operating cycle, functional currency, materiality, business combinations, consolidation, joint arrangements, financial instruments, revenue recognition, and leases - The company adheres to the Enterprise Accounting Standards, with a 12-month operating cycle and RMB as its functional currency[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) - Financial instruments are classified as financial assets measured at amortized cost, at fair value through profit or loss, or at fair value through other comprehensive income, with loss provisions recognized based on expected credit losses[172](index=172&type=chunk)[179](index=179&type=chunk) - Revenue is recognized when performance obligations are satisfied and the customer obtains control of the related goods, measured based on contract terms and factors such as variable consideration[230](index=230&type=chunk) - The company applies simplified accounting for short-term leases and low-value asset leases, expensing lease payments to relevant asset costs or current profit or loss[247](index=247&type=chunk) [Taxes](index=95&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) The company's main taxes include VAT and corporate income tax; the company and several subsidiaries benefit from a preferential 15% corporate income tax rate for high-tech enterprises, with some also enjoying tax incentives in the Hainan Free Trade Port and western regions Main Taxes and Tax Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable Income | 3%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Payable Turnover Tax | 1%, 5%, 7% | | Cultural Undertaking Construction Fee | - | 3% | | Local Education Surcharge | Payable Turnover Tax | 2% | | Education Surcharge | Payable Turnover Tax | 3% | | Corporate Income Tax | Taxable Income | 15%, 16.5%, 17%, 20%, 21%, 25% | - iReader Technology Co, Ltd, Hainan iReader Technology Co, Ltd, Guangxi iReader Technology Co, Ltd, Beijing Dejian Technology Co, Ltd, and Changsha Xinyue Culture Media Co, Ltd are subject to a **15%** corporate income tax rate[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) - Some subsidiaries enjoy preferential policies for small and micro enterprises, with taxable income calculated at a reduced rate of 25% and taxed at a **20%** rate[260](index=260&type=chunk) - Guangxi iReader Technology Co, Ltd and its subsidiaries benefit from a **15%** income tax rate for encouraged industries in the western region and a 5-year exemption from the local portion of corporate income tax[261](index=261&type=chunk)[262](index=262&type=chunk) [Notes to Consolidated Financial Statement Items](index=97&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed disclosures for each item in the consolidated financial statements, including cash and cash equivalents, trading financial assets, accounts receivable, operating revenue and costs, selling expenses, R&D expenses, and cash flow statement items, with explanations for significant changes - The closing balance of cash and cash equivalents was **RMB 1,593,445,952.29**, of which RMB 220,000,000.00 was in large-denomination time deposits[264](index=264&type=chunk) - The closing gross balance of accounts receivable was **RMB 460,049,602.75**, with a bad debt provision of RMB 12,479,133.59, mainly due to business structure adjustments and longer collection cycles[268](index=268&type=chunk)[269](index=269&type=chunk)[272](index=272&type=chunk) - The closing carrying amount of long-term equity investments was **RMB 278,976,215.31**, primarily investments in associates[304](index=304&type=chunk) - The closing carrying amount of intangible assets was **RMB 57,942,255.81**, mainly consisting of purchased copyrights and software[324](index=324&type=chunk) - Operating revenue for the period was **RMB 1,526,069,549.77**, and the cost of sales was **RMB 444,009,542.43**[379](index=379&type=chunk) - Selling expenses for the period were **RMB 1,087,904,808.49**, primarily promotional fees[382](index=382&type=chunk) - R&D expenses for the period were **RMB 95,916,102.78**, mainly consisting of salaries, benefits, and social security contributions[384](index=384&type=chunk) [Research and Development Expenses](index=149&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) During the reporting period, total R&D expenditure was RMB 95.92 million, a year-over-year decrease of 7.64%, all of which was expensed and primarily consisted of employee compensation R&D Expenses by Nature | Item | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | | Salaries, Benefits, Social Security, etc | 93,524,952.68 | 100,352,048.19 | | Technical Service Fees | 1,538,334.03 | 2,775,325.06 | | Depreciation and Amortization | 651,936.40 | 606,519.58 | | Other | 200,879.67 | 113,336.34 | | **Total** | **95,916,102.78** | **103,847,229.17** | | Of which: Expensed R&D | 95,916,102.78 | 103,847,229.17 | | Capitalized R&D | - | - | - R&D expenses for the current period **decreased by 7.64%** year-over-year, mainly due to the optimization of R&D personnel structure[48](index=48&type=chunk) [Changes in the Scope of Consolidation](index=150&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) The company significantly expanded its scope of consolidation by establishing numerous new subsidiaries for digital reading, content operation, and production, including Beijing Jingmu Technology Co, Ltd and Good Drama Corp - During the reporting period, the company established dozens of new subsidiaries, primarily located in Beijing, Wuhan, Hefei, Jinan, Beihai, as well as overseas in Hong Kong, Singapore, and the United States[422](index=422&type=chunk)[429](index=429&type=chunk)[430](index=430&type=chunk)[431](index=431&type=chunk)[432](index=432&type=chunk)[433](index=433&type=chunk)[434](index=434&type=chunk)[435](index=435&type=chunk)[436](index=436&type=chunk)[437](index=437&type=chunk)[438](index=438&type=chunk)[439](index=439&type=chunk)[440](index=440&type=chunk) - The business nature of the new subsidiaries mainly includes digital reading, content operation, content production and operation, and technology R&D[427](index=427&type=chunk)[428](index=428&type=chunk)[429](index=429&type=chunk)[430](index=430&type=chunk)[431](index=431&type=chunk)[432](index=432&type=chunk)[433](index=433&type=chunk)[434](index=434&type=chunk)[435](index=435&type=chunk)[436](index=436&type=chunk)[437](index=437&type=chunk)[438](index=438&type=chunk)[439](index=439&type=chunk)[440](index=440&type=chunk) [Interests in Other Entities](index=151&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) This section details the company's interests in subsidiaries, joint ventures, and associates; the company holds numerous subsidiaries in content and digital reading businesses and has investments in associates like Hangzhou Quread Information Technology, accounted for using the equity method - The company has numerous subsidiaries, including Tianjin iReader Culture Communication Co, Ltd, Shenzhen iReader Animation Technology Co, Ltd, Beijing Dejian Technology Co, Ltd, and Hainan iReader Technology Co, Ltd, with ownership stakes mostly at 100% or over 70%[427](index=427&type=chunk)[428](index=428&type=chunk)[429](index=429&type=chunk)[430](index=430&type=chunk)[431](index=431&type=chunk)[432](index=432&type=chunk)[433](index=433&type=chunk)[434](index=434&type=chunk)[435](index=435&type=chunk)[436](index=436&type=chunk)[437](index=437&type=chunk)[438](index=438&type=chunk)[439](index=439&type=chunk)[440](index=440&type=chunk) - The company has investments in associates such as Hangzhou Quread Information Technology Co, Ltd, Nanjing Moread Information Technology Co, Ltd, and Nanjing Fenbu Culture Development Co, Ltd, with ownership stakes ranging from 20% to 50%[443](index=443&type=chunk) - The total carrying amount of investments in immaterial associates is **RMB 278,976,215.31**, with a net profit of **RMB 8,710,572.70** calculated based on the ownership percentage for the current period[444](index=444&type=chunk) [Government Grants](index=165&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) During the reporting period, the company reclassified the opening balance of RMB 0.50 million in other government grants (income-related) to other income, with the total amount of government grants recognized in profit or loss for the period being RMB 3.54 million Changes in Liability Items for Government Grants | Financial Statement Item | Opening Balance (RMB) | New Grants (RMB) | Recognized in Non-operating Income (RMB) | Reclassified to Other Income (RMB) | Other Changes (RMB) | Closing Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Other Government Grants | 500,000.00 | - | - | 500,000.00 | - | - | Income-related | - The amount of government grants (income-related) recognized in the current period's profit or loss was **RMB 3,538,041.79**[448](index=448&type=chunk) [Risks Related to Financial Instruments](index=166&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces credit risk, liquidity risk, and market risk (mainly foreign exchange risk), which are managed by assessing customer credit, monitoring liquidity needs, and tracking exchange rate fluctuations; credit risk exposure is mainly from accounts receivable, while foreign exchange risk relates to assets and liabilities denominated in HKD and USD - The company faces **credit risk, liquidity risk, and market risk (foreign exchange risk)**[448](index=448&type=chunk) - Credit risk mainly arises from cash and cash equivalents, notes receivable, accounts receivable, and other receivables, and is controlled by assessing customer creditworthiness and regularly monitoring credit records[448](index=448&type=chunk)[449](index=449&type=chunk) - Liquidity risk is managed by regularly monitoring short-term and long-term liquidity needs and complying with loan agreement provisions[453](index=453&type=chunk) - Foreign exchange risk primarily comes from foreign currency assets and liabilities denominated in HKD and USD; if the RMB appreciates or depreciates by 10% against the USD, the annual net profit would decrease or increase by **RMB 6.77 million**[454](index=454&type=chunk)[457](index=457&type=chunk) [Fair Value Disclosures](index=170&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) The company discloses the fair value of assets and liabilities measured at fair value, primarily including trading financial assets and other equity investments; the fair value of structured deposits is classified as Level 2, while the fair value of investee companies is measured at cost or using reasonable valuation techniques Fair Value Measurement Items at Period-End | Item | Level 1 Fair Value (RMB) | Level 2 Fair Value (RMB) | Level 3 Fair Value (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | :--- | | **I. Continuous Fair Value Measurement** | - | - | - | - | | (I) Trading Financial Assets | - | 134,992,731.71 | 35,013,478.85 | 170,006,210.56 | | 1. Financial assets at FVTPL | - | 134,992,731.71 | 35,013,478.85 | 170,006,210.56 | | (2) Equity instrument investments | - | - | 35,013,478.85 | 35,013,478.85 | | (3) Derivative financial assets | - | 134,992,731.71 | - | 134,992,731.71 | | (III) Other Equity Investments | - | - | 357,228,076.00 | 357,228,076.00 | | **Total Assets at Continuous Fair Value** | - | **134,992,731.71** | **392,241,554.85** | **527,234,286.56** | - The fair value of structured deposits is classified as **Level 2**, with valuation based on directly observable inputs such as interest rates, exchange rates, and commodity prices[462](index=462&type=chunk) - For investee companies, if there are no significant changes in the operating environment or financial condition, the investment cost is used as a reasonable estimate of fair value; otherwise, reasonable valuation techniques are employed[463](index=463&type=chunk) [Related Parties and Related-Party Transactions](index=172&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company's related parties include associates and several companies related to the ByteDance group; related-party transactions involved copyright procurement, channel sharing, service fees, advertising, and derivative businesses, with advertising and derivative business transactions being the most significant - The company's related parties include associates such as Hangzhou Quread Information Technology Co, Ltd, Nanjing Moread Information Technology Co, Ltd, and Nanjing Fenbu Culture Development Co, Ltd[465](index=465&type=chunk) - Other related parties include Xiamen Toutiao Information Technology Co, Ltd, Douyin Vision Co, Ltd, Hubei Ocean Engine Technology Co, Ltd, and Beijing Bytedance Network Technology Co, Ltd[465](index=465&type=chunk)[466](index=466&type=chunk) Key Related-Party Transactions in H1 2025 | Transaction Content | Related Party | Amount (RMB) | | :--- | :--- | :--- | | Copyright Procurement | Nanjing Fenbu Culture Development Co, Ltd | 13,820,809.03 | | Service Fee | Beijing Volcano Engine Technology Co, Ltd | 4,089,090.29 | | Advertising and Marketing | Xiamen Toutiao Information Technology Co, Ltd | 107,305,805.36 | | Advertising and Marketing | Chengdu Ocean Engine Information Technology Co, Ltd | 133,982,464.50 | | Derivative Business | Beijing Bytedance Network Technology Co, Ltd | 214,949,916.93 | | Derivative Business | Douyin Vision Co, Ltd | 14,455,731.91 | - Key management personnel compensation for the period amounted to **RMB 5.025 million**[471](index=471&type=chunk) [Share-based Payment](index=177&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98) The company had no share-based payment arrangements during the reporting period [Commitments and Contingencies](index=177&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) The company had no significant commitments or contingencies to disclose during the reporting period [Post-Balance Sheet Events](index=178&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E6%97%A5%E5%90%8E%E4%BA%8B%E9%A1%B9) The company had no significant non-adjusting events, profit distribution plans, sales returns, or other post-balance sheet events to report [Other Significant Matters](index=178&type=section&id=%E5%8D%81%E5%85%AB%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) The company had no prior period accounting error corrections, significant debt restructuring, asset swaps, annuity plans, discontinued operations, segment information, or other significant transactions and matters affecting investor decisions to report [Notes to Parent Company Financial Statement Items](index=179&type=section&id=%E5%8D%81%E4%B9%9D%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed disclosures for major items in the parent company's financial statements, including accounts receivable, other receivables, and long-term equity investments, with explanations for significant changes - The parent company's closing gross balance of accounts receivable was **RMB 419,301,356.02**, with a bad debt provision of **RMB 6,894,439.63**[180](index=180&type=chunk)[181](index=181&type=chunk) - The parent company's closing balance of other receivables was **RMB 189,079,290.94**, including **RMB 186,164,028.36** in intercompany receivables[191](index=191&type=chunk)[499](index=499&type=chunk) - The parent company's closing carrying amount of long-term equity investments was **RMB 935,696,513.69**, including investments in subsidiaries, associates, and joint ventures[507](index=507&type=chunk) - The parent company's closing carrying amount of investments in subsidiaries was **RMB 660,673,364.55**, with an additional investment of **RMB 25,000,000.00** during the period[508](index=508&type=chunk)[519](index=519&type=chunk) - The parent company's closing carrying amount of investments in associates and joint ventures was **RMB 275,023,149.14**, with investment income of **RMB 9,757,506.53** recognized under the equity method during the period[507](index=507&type=chunk)[522](index=522&type=chunk) [Supplementary Information](index=197&type=section&id=%E4%BA%8C%E5%8D%81%E3%80%81%E8%A1%A5%E5%85%85%E8%B5%84%E6%96%99) This section provides a detailed schedule of non-recurring profit and loss and information on return on net assets and earnings per share; total non-recurring profit and loss was RMB 10.79 million, and the weighted average return on net assets was -6.40% Details of Non-recurring Profit and Loss for H1 2025 | Item | Amount (RMB) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | 67,499.43 | | Government Grants Recognized in Current Profit or Loss | 4,508,891.60 | | Fair Value Changes in Financial Assets and Liabilities Held by Non-financial Enterprises | 6,757,890.75 | | Other Non-operating Income and Expenses | -436,136.28 | | Less: Income Tax Impact | -8,535.93 | | Minority Interest Impact (After Tax) | 112,190.09 | | **Total** | **10,794,491.34** | Return on Net Assets and Earnings Per Share for H1 2025 | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Earnings Per Share (RMB/Share) | | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders | -6.40 | -0.36 | | Net Profit Attributable to Common Shareholders (Excluding Non-recurring Items) | -6.83 | -0.39 |

Section I Definitions This section defines common terms and company-specific entities used in the report, including company names, major shareholders, employee stock ownership platforms, and intelligent manufacturing technical terms such as MES systems, AMR, and new energy vehicle battery technologies (MTP, CTP, LCTP, CTC), laying the foundation for understanding the report content - The reporting period refers to January 1, 2025, to June 30, 2025[10](index=10&type=chunk) - Defined various new energy vehicle battery integration technologies, including MTP (cell-module-pack), CTP (cell-to-pack technology), LCTP (long cell-to-pack), and CTC (cell-to-chassis)[10](index=10&type=chunk) - Defined key intelligent manufacturing terms such as intelligent production lines, MES systems, AMR (Autonomous Mobile Robots), and humanoid robots[10](index=10&type=chunk) Section II Company Profile and Key Financial Indicators This section outlines Haosen Intelligent's basic information, contact details, information disclosure channels, and stock overview; during the reporting period, key financial indicators showed a significant decline in revenue and net profit, with negative basic earnings per share, primarily due to decreased revenue and gross profit margin, and increased asset and credit impairment losses, with non-recurring gains and losses negatively impacting net profit [I. Basic Company Information](index=6&type=section&id=I.%20Basic%20Company%20Information) The company's full name is Dalian Haosen Intelligent Manufacturing Co., Ltd., abbreviated as Haosen Intelligent, with Dong Dexi as its legal representative, and its registered and office address located in Yingchengzi Industrial Park, Ganjingzi District, Dalian City, Liaoning Province | Indicator | Content | | :--- | :--- | | **Company Chinese Name** | Dalian Haosen Intelligent Manufacturing Co., Ltd. | | **Company Chinese Abbreviation** | Haosen Intelligent | | **Legal Representative** | Dong Dexi | | **Company Registered Address** | Yingchengzi Industrial Park, Ganjingzi District, Dalian City, Liaoning Province | | **Company Website** | http://www.haosen.com.cn/ | [II. Contact Persons and Information](index=6&type=section&id=II.%20Contact%20Persons%20and%20Information) Company Board Secretary Xu Yang and Securities Affairs Representative Sun Yifeng are responsible for information disclosure and investor relations, with their contact address and phone numbers publicly available | Position | Name | Contact Number | | :--- | :--- | :--- | | **Board Secretary** | Xu Yang | 0411-39516669 | | **Securities Affairs Representative** | Sun Yifeng | 0411-39516669 | [III. Overview of Information Disclosure and Document Custody Location Changes](index=6&type=section&id=III.%20Overview%20of%20Information%20Disclosure%20and%20Document%20Custody%20Location%20Changes) The company designates China Securities Journal, Shanghai Securities News, and Securities Times as its information disclosure newspapers, with the semi-annual report published on the Shanghai Stock Exchange website and available at the company's Securities Affairs Department - The company's information disclosure newspapers are China Securities Journal, Shanghai Securities News, and Securities Times[15](index=15&type=chunk) - The semi-annual report is published on the Shanghai Stock Exchange website (www.sse.com.cn)[15](index=15&type=chunk) [IV. Company Stock/Depositary Receipt Overview](index=6&type=section&id=IV.%20Company%20Stock%2FDepositary%20Receipt%20Overview) The company's stock is RMB ordinary shares (A-shares), listed on the STAR Market of the Shanghai Stock Exchange, with the stock abbreviation Haosen Intelligent and stock code 688529 | Stock Type | Listing Exchange and Board | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | **RMB Ordinary Shares (A-shares)** | Shanghai Stock Exchange STAR Market | Haosen Intelligent | 688529 | [VI. Key Accounting Data and Financial Indicators](index=7&type=section&id=VI.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue decreased by 13.68% year-on-year, with total profit and net profit attributable to shareholders both showing significant losses, and basic earnings per share at -0.90 RMB/share; net cash flow from operating activities turned significantly positive, primarily due to strengthened collection management [(I) Key Accounting Data](index=7&type=section&id=(I)%20Key%20Accounting%20Data) During the reporting period, the company's operating revenue was **RMB 843 million**, a year-on-year decrease of **13.68%**; net profit attributable to shareholders was **-RMB 151 million**, a year-on-year decrease of **1600.90%**; net cash flow from operating activities was **RMB 199 million**, a significant positive turnaround from the prior year period | Key Accounting Data | Current Reporting Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | RMB 842.90 million | RMB 976.49 million | -13.68 | | **Total Profit** | -RMB 183.86 million | RMB 2.83 million | -6,600.07 | | **Net Profit Attributable to Shareholders** | -RMB 150.80 million | RMB 10.05 million | -1,600.90 | | **Net Profit Attributable to Shareholders Excluding Non-recurring Gains/Losses** | -RMB 142.62 million | -RMB 0.17 million | N/A | | **Net Cash Flow from Operating Activities** | RMB 199.78 million | -RMB 570.44 million | N/A | | **Net Assets Attributable to Shareholders (End of Period)** | RMB 1.88 billion | RMB 2.02 billion | -6.64 | | **Total Assets (End of Period)** | RMB 6.77 billion | RMB 6.49 billion | 4.33 | [(II) Key Financial Indicators](index=7&type=section&id=(II)%20Key%20Financial%20Indicators) During the reporting period, the company's basic earnings per share was **-0.90 RMB/share**, weighted average return on net assets decreased by **8.13 percentage points** to **-7.66%**, and R&D investment as a percentage of operating revenue slightly decreased to **7.27%**; performance decline was primarily due to reduced revenue scale and gross profit margin, and significant asset and credit impairment losses | Key Financial Indicators | Current Reporting Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Basic Earnings Per Share (RMB/share)** | -0.90 | 0.06 | -1,600.00 | | **Diluted Earnings Per Share (RMB/share)** | -0.90 | 0.06 | -1,600.00 | | **Basic EPS Excluding Non-recurring Gains/Losses (RMB/share)** | -0.85 | 0.00 | N/A | | **Weighted Average ROE (%)** | -7.66 | 0.47 | Decreased by 8.13 percentage points | | **Weighted Average ROE Excluding Non-recurring Gains/Losses (%)** | -7.24 | -0.01 | Decreased by 7.23 percentage points | | **R&D Investment as % of Operating Revenue (%)** | 7.27 | 7.57 | Decreased by 0.30 percentage points | - Operating revenue decreased by **13.68%**, total profit decreased by **6,600.07%**, and net profit attributable to shareholders decreased by **1,600.90%**[19](index=19&type=chunk)[20](index=20&type=chunk) - Key reasons for performance decline include reduced revenue scale and gross profit margin (intensified competition in the automotive market, price reduction pressure, increased project implementation costs), significant asset impairment losses (high costs for some overseas projects), and substantial credit impairment losses (increased accounts receivable balance, extended aging)[19](index=19&type=chunk)[21](index=21&type=chunk) - Net cash flow from operating activities turned significantly positive, primarily due to the company's continuous strengthening of collection management during the reporting period, with a focus on controlling pre-shipment payment collection for projects[21](index=21&type=chunk) [VIII. Non-recurring Gains and Losses Items and Amounts](index=8&type=section&id=VIII.%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to **-RMB 8.18 million**, primarily comprising government grants recognized in current profit or loss, fair value changes and disposal gains/losses of financial assets and liabilities, and other non-operating income and expenses | Non-recurring Gains and Losses Item | Amount (RMB) | | :--- | :--- | | **Government Grants Recognized in Current Profit or Loss** | 2.41 million | | **Fair Value Changes and Disposal Gains/Losses of Financial Assets and Liabilities Held by Non-financial Enterprises** | -11.42 million | | **Other Non-operating Income and Expenses Apart from the Above** | -0.54 million | | **Less: Income Tax Impact** | -1.43 million | | **Minority Interest Impact (After Tax)** | 0.07 million | | **Total** | -8.18 million | Section III Management Discussion and Analysis This section details the company's industry, main business, operating model, performance, core competitiveness, and risk factors; as an automotive intelligent equipment supplier, the company benefits from the growth of the new energy vehicle market and the development of new technologies like embodied AI, but faces intensified industry competition, performance decline, asset impairment, and overseas project risks; the company continues to increase R&D investment, deploy cutting-edge technologies, and strengthen collection management to address challenges [I. Industry and Main Business Overview During the Reporting Period](index=10&type=section&id=I.%20Industry%20and%20Main%20Business%20Overview%20During%20the%20Reporting%20Period) The company's main business falls under 'C35 Special Purpose Machinery Manufacturing' and 'Intelligent Manufacturing Equipment Industry' within the 'High-end Equipment Manufacturing Industry', focusing on automotive intelligent equipment manufacturing; global new energy vehicle sales continue to grow, the electrification trend in the European market is restarting, and domestic automotive industry 'anti-involution' policies are expected to be implemented; new technologies such as embodied AI and solid-state batteries are accelerating development, with the company actively deploying in the embodied AI field and achieving patent results; the company is a global leading supplier of intelligent manufacturing equipment for automotive powertrains, providing intelligent production lines and software services in both new energy and traditional fuel vehicle sectors [(I) Company's Industry and Market Position](index=10&type=section&id=(I)%20Company's%20Industry%20and%20Market%20Position) The company operates in the automotive intelligent equipment manufacturing industry, benefiting from sustained global new energy vehicle sales growth, particularly the restarting electrification trend in the European market; domestic automotive industry 'anti-involution' policies are expected to promote healthy industry development; new technologies like embodied AI and solid-state batteries are accelerating, with the company actively investing in embodied AI R&D and collaborating with various institutions and automakers; the company is a global leading supplier of intelligent manufacturing equipment for automotive powertrains, partnering with renowned clients such as Tesla, BMW, and BYD, demonstrating significant technological advantages - The company's main business falls under 'C35 Special Purpose Machinery Manufacturing' and 'Intelligent Manufacturing Equipment Industry' within the 'High-end Equipment Manufacturing Industry'[27](index=27&type=chunk) | Region | H1 2025 Sales (10,000 units) | YoY Growth (%) | | :--- | :--- | :--- | | **Global** | 910 | 28 | | **China** | 550 | 32 | | **Europe** | 200 | 26 | | **North America** | 90 | 3 | | **Rest of World** | 70 | 40 | - The company has secured multiple overseas new energy vehicle orders from clients including Volvo, ZF, Cummins, Stellantis, BYD, and Great Wall[29](index=29&type=chunk) - The company has formulated a long-term strategic layout for intelligent transformation, making sustained long-term investment and independent R&D in the embodied AI field, and collaborating with leading robot manufacturers, research institutions, and several top automakers[33](index=33&type=chunk) - The company has identified over 40 industrial production scenarios suitable for embodied AI robots and developed specialized humanoid robots for tasks such as tightening, gluing, leak detection, handling, sorting, and welding[34](index=34&type=chunk) - Two patents independently developed by the company, 'A Humanoid Robot Assembly Process and Equipment for Automotive Core Component Production' and 'A Testing Equipment and Process for Humanoid Robots', have been granted invention patent authorization[34](index=34&type=chunk) - The company is a global leading supplier of intelligent manufacturing equipment for automotive powertrains, with major clients including renowned domestic and international brands such as Tesla, Ford, General Motors, Cummins, Beijing Benz, Volvo, and BYD[35](index=35&type=chunk) [(II) Main Business Operations](index=12&type=section&id=(II)%20Main%20Business%20Operations) The company's main business covers intelligent production lines and equipment for new energy and traditional fuel vehicles, as well as manufacturing software products and services; new energy business includes intelligent production lines for power lithium batteries, drive motors, hybrid powertrains, and hydrogen fuel cells, with its lithium battery module PACK intelligent production line ranking among the top tier and flat wire motor stator assembly line technology reaching world-leading levels; traditional energy business primarily involves intelligent assembly lines for engines and transmissions; additionally, the company offers embodied AI equipment business and intelligent manufacturing software products and services - The company's products primarily include intelligent production lines and equipment (material flow hardware equipment) and manufacturing software products and services (data flow software systems)[36](index=36&type=chunk) - Products in the new energy vehicle sector include intelligent production lines for hybrid powertrains, power lithium batteries, hydrogen fuel cells, and drive motors[36](index=36&type=chunk) - The company's power lithium battery intelligent production line achieves full coverage of cylindrical, blade, prismatic, pouch cells, and various battery integration methods, ranking among the top tier in the lithium battery module PACK intelligent production line field[37](index=37&type=chunk) - The company is one of the few domestic equipment suppliers capable of providing comprehensive solutions for flat wire motor stator lines, rotor lines, assembly lines, and testing lines, possessing prominent technological advantages in the flat wire motor stator assembly line field[38](index=38&type=chunk) - The company has pioneered breakthroughs in various technical directions, including X-pin motors, Mini U-pin motors, 10-layer flat wire motors, 800V high-voltage motors, and oil-cooled motors[39](index=39&type=chunk) - The company has an early layout in hydrogen fuel cell intelligent production lines, capable of comprehensive deployment from core component assembly to engine system production equipment and test benches, and has secured orders from leading clients such as Ballard Power Systems of Canada[41](index=41&type=chunk) - The company has added embodied AI equipment business, including humanoid robots, autonomous mobile robots, collaborative robots, and their application solutions, aiming to revolutionize traditional assembly line production methods[43](index=43&type=chunk) - Through its subsidiaries Haosen Software and Haosen Zhiyuan, the company provides software products such as HSPLM, HSMOM, HSMES, and HS Intelligent Design System, assisting clients in their digital transformation[44](index=44&type=chunk) [(III) Main Operating Models](index=14&type=section&id=(III)%20Main%20Operating%20Models) The company generates revenue by providing 'software-hardware integrated' manufacturing solutions, intelligent production lines and equipment, and software products and services; the sales model primarily involves public bidding and client negotiation, with products being non-standardized and customized; the R&D model combines market demand and client projects for independent R&D and customized development; the production model adopts a project management system, with full-process management through self-developed systems; the procurement model is based on orders and production plans, involving quotation comparison and quality control for purchased and custom-processed parts - The company's profit model is to provide integrated 'software-hardware combined' manufacturing solutions, intelligent production lines and equipment, and software products and services for automotive manufacturing[45](index=45&type=chunk) - The sales model primarily involves public bidding and client negotiation, with products being non-standardized and customized intelligent production lines[46](index=46&type=chunk) - The company has established overseas subsidiaries in the United States, India, Germany, and Hungary, adopting independent operation or collaborative operation with the parent company to expand markets[47](index=47&type=chunk) - The R&D model combines industry technological development and its own business needs, conducting customized R&D through independent project initiation and client project requirements[48](index=48&type=chunk) - The production model is for non-standardized customized products, adopting a project management system, and managing R&D design and manufacturing through self-developed HSPLM and ERP systems[49](index=49&type=chunk) - The procurement model formulates plans based on orders and production arrangements, conducts quotation comparisons for purchased and custom-processed parts, and establishes a comprehensive supplier management and quality inspection system[50](index=50&type=chunk) [II. Discussion and Analysis of Operations](index=16&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) During the reporting period, the company's operating revenue decreased by **13.68%** year-on-year to **RMB 843 million**, with net profit attributable to the parent company at a loss of **RMB 151 million**, a year-on-year decrease of **1600.90%**; the performance decline was mainly due to reduced revenue scale and gross profit margin, as well as significant asset impairment losses and credit impairment losses; the company continued to invest in R&D, with R&D expenses reaching **RMB 61.27 million**, accounting for **7.27%** of revenue, and achieved multiple patents and technological breakthroughs, especially in humanoid robots and X-PIN stator lines [(I) Key Operating Performance](index=16&type=section&id=(I)%20Key%20Operating%20Performance) During the reporting period, the company's operating revenue was **RMB 843 million**, a year-on-year decrease of **13.68%**; net profit attributable to the parent company was a loss of **RMB 151 million**, a year-on-year decrease of **1600.90%**; performance decline was primarily influenced by reduced revenue scale and gross profit margin, increased asset impairment losses due to higher costs for some overseas projects, and increased credit impairment losses due to growing accounts receivable balances and extended aging | Indicator | Current Period Amount (RMB 10,000) | YoY Change (%) | | :--- | :--- | :--- | | **Operating Revenue** | 84,290.47 | -13.68 | | **Net Profit Attributable to Parent Company** | -15,080.30 | -1,600.90 | | **Net Profit Attributable to Shareholders Excluding Non-recurring Gains/Losses** | -14,262.11 | - | - Decline in revenue scale and gross profit margin: uncertainty in acceptance timing for customized non-standard projects led to a decrease in the total scale of accepted projects; intensified competition in the automotive market, transmission of price reduction pressure, limited order profitability, and increased proportion of project implementation costs[51](index=51&type=chunk) - Significant asset impairment losses: some overseas projects faced visa and regulatory restrictions, customer demand changes led to supplements, increased material costs, and extended production cycles, resulting in higher project costs[52](index=52&type=chunk) - Significant credit impairment losses: business development and intensified market competition led to increased accounts receivable balances and extended aging, prompting the company to strengthen collection management[52](index=52&type=chunk) [(II) R&D Investment](index=17&type=section&id=(II)%20R%26D%20Investment) During the reporting period, the company's R&D expenses reached **RMB 61.27 million**, accounting for **7.27%** of operating revenue; the company has cumulatively obtained **173 authorized patents** and **217 software copyrights**, with **18 new patents** and **4 new software copyrights** added in the current period; the company achieved significant technological breakthroughs and awards in areas such as humanoid robot assembly processes and testing equipment, highly integrated multimodal pneumatic soft robots, and X-PIN stator lines | Indicator | Amount/Ratio | | :--- | :--- | | **R&D Expenses** | RMB 61.27 million | | **R&D Expenses as % of Operating Revenue** | 7.27% | | **Cumulative Authorized Patents** | 173 items | | **Cumulative Authorized Software Copyrights** | 217 items | | **New Authorized Patents in Current Period** | 18 items | | **New Authorized Software Copyrights in Current Period** | 4 items | - Two patents independently developed by the company, 'A Humanoid Robot Assembly Process and Equipment for Automotive Core Component Production' and 'A Testing Equipment and Process for Humanoid Robots', have been successfully granted invention patent authorization[54](index=54&type=chunk) - The project 'A Highly Integrated Multimodal Pneumatic Soft Robot', jointly applied for by the company and Hohai University, won a silver medal at the 50th Geneva International Exhibition of Inventions[54](index=54&type=chunk) - The domestic first X-PIN stator line, co-developed by the company and Quzhou Jidian, achieved a major technological breakthrough, successfully realizing mass production of stators[54](index=54&type=chunk) [III. Analysis of Core Competitiveness During the Reporting Period](index=18&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) The company's core competitiveness lies in R&D-driven technological advantages, a high-quality client structure and brand advantage, global integration and cross-regional coordination advantages, and standardization and platformization advantages; the company maintains high R&D investment, possesses multiple core technologies and patents, particularly leading in intelligent manufacturing, robot applications, precision measurement, and digital technologies; its clients include mainstream domestic and international automotive OEMs and component suppliers, with active expansion into overseas markets; through Haosen Software's intelligent design system, the company has significantly enhanced design standardization and production modularity; during the reporting period, the company was recognized as a National Specialized, Refined, Unique, and Innovative 'Little Giant' Enterprise and continues to advance multiple R&D projects covering cutting-edge fields such as hydrogen fuel cells, new energy electric drive systems, and embodied AI robots [(I) Core Competitiveness Analysis](index=18&type=section&id=(I)%20Core%20Competitiveness%20Analysis) The company's core competitiveness includes R&D-driven technological advantages, with R&D investment of **RMB 61.27 million** during the reporting period, possessing **173 authorized patents** and **217 software copyrights**, and conducting reserve R&D in cutting-edge fields such as artificial intelligence, virtual commissioning, and embodied AI equipment; the company has a high-quality client structure, covering mainstream domestic and international automotive OEMs, establishing a strong brand reputation and global market influence; the company achieves global integration and cross-regional coordination through its overseas subsidiaries and leverages the HS Intelligent Design System to enhance standardization and platformization - The company's R&D expenditure was **RMB 61.27 million**, with **406 R&D personnel** at the end of the period, cumulatively obtaining **173 authorized patents** and **217 authorized software copyrights**[56](index=56&type=chunk) - The company's Intelligent Research Institute has built an industrial intelligent manufacturing innovation system covering mechanical design, electrical control, mathematics, mechanics, optics, materials science, electronics, and computer science, forming five core supporting technologies and eight core application technologies[56](index=56&type=chunk) - The company has made specialized deployments in key application areas such as artificial intelligence, virtual commissioning, machine vision, and embodied AI equipment, and is conducting R&D on next-generation products like axial flux motors and solid-state batteries[57](index=57&type=chunk) - A prominent feature of the company's client structure is a high proportion of OEM clients and a large share of international clients, covering renowned domestic and international brands such as Mercedes-Benz, BMW, Volkswagen, Tesla, and BYD[58](index=58&type=chunk) - The company has established overseas subsidiaries in the United States, Hungary, India, and Germany, building a highly collaborative management system for sales, production, service, and R&D to drive the execution of overseas orders[61](index=61&type=chunk) - Through the HS Intelligent Design System, the company combines big data, artificial intelligence, and other technologies with industry experience to automate the design process, enhancing design standardization and production modularity[63](index=63&type=chunk) [(III) Core Technologies and R&D Progress](index=20&type=section&id=(III)%20Core%20Technologies%20and%20R%26D%20Progress) The company has been deeply involved in the automotive intelligent equipment manufacturing industry for over two decades, with R&D technological innovation as its core development strategy, continuously increasing investment; during the reporting period, the company strengthened research on cutting-edge technologies, conducting application development in cluster equipment multi-machine collaboration, embedded virtual commissioning, and deep learning; the company built an open R&D ecosystem, collaborating deeply with research institutions and industry partners, and established a humanoid robot innovation center; the company was recognized as a National Specialized, Refined, Unique, and Innovative 'Little Giant' Enterprise, obtaining multiple patents and software copyrights; the company's ongoing R&D projects cover cutting-edge fields such as hydrogen fuel cells, new energy electric drive systems, and embodied AI robots, with a total investment scale of **RMB 369 million** [1. Core Technologies, Their Advanced Nature, and Changes During the Reporting Period](index=20&type=section&id=1.%20Core%20Technologies%2C%20Their%20Advanced%20Nature%2C%20and%20Changes%20During%20the%20Reporting%20Period) The company's core technologies include intelligent flexible assembly units, multi-model robot flexible tightening, power lithium battery module stacking, hydrogen fuel cell stack automatic stacking, new energy drive motor automatic wire insertion/PIN forming/twisting, precision EOL test benches, online measurement and testing, multi-chamber series hot pressing and HIPOT testing, hydrogen fuel cell three-chamber integrated airtightness detection, automatic application of lithium battery structural and thermal conductive adhesives, new energy drive motor insulation coating, multi-model flexible configurable automatic control, intelligent fuzzy gripping and transfer, laser welding/cleaning, digital simulation, and MES systems; these technologies offer significant advantages in improving production efficiency, flexibility, automation, and product quality, reaching domestic leading levels - The company's core technologies include intelligent flexible assembly unit technology, which enhances the flexibility and versatility of production lines through the combined application of various technologies[66](index=66&type=chunk) - Power lithium battery module stacking technology integrates fundamental technologies such as visual positioning, servo pressing, and pressure-displacement analysis and control, achieving automatic module stacking to improve production efficiency and product quality[66](index=66&type=chunk) - Hydrogen fuel cell stack automatic stacking technology achieves automatic stacking of membrane electrodes and bipolar plates, effectively improving production efficiency, product yield, and automation rate[66](index=66&type=chunk) - New energy drive motor automatic wire insertion technology achieves high flexibility, automation, and stability for U/X-PIN automatic wire insertion[66](index=66&type=chunk) - Precision EOL test bench technology utilizes proprietary constant torque and constant angular acceleration control technology, NVH technology, and recipe-based control technology to achieve testing that meets final client product requirements[67](index=67&type=chunk) - The company was recognized as a National Specialized, Refined, Unique, and Innovative 'Little Giant' Enterprise, with its product named New Energy Vehicle Powertrain Intelligent Production Line[69](index=69&type=chunk) [2. R&D Achievements During the Reporting Period](index=25&type=section&id=2.%20R%26D%20Achievements%20During%20the%20Reporting%20Period) As of June 30, 2025, the company has cumulatively obtained **173 authorized patents** and **217 authorized software copyrights**; during the reporting period, **2 new invention patents**, **16 new utility model patents**, and **4 new software copyrights** were added | Intellectual Property Type | New Applications in Current Period (units) | New Grants in Current Period (units) | Cumulative Applications (units) | Cumulative Grants (units) | | :--- | :--- | :--- | :--- | :--- | | **Invention Patents** | 2 | 2 | 68 | 34 | | **Utility Model Patents** | 12 | 16 | 256 | 136 | | **Design Patents** | 0 | 0 | 3 | 3 | | **Software Copyrights** | 4 | 4 | 219 | 217 | | **Total** | 18 | 22 | 546 | 390 | [3. R&D Investment Table](index=25&type=section&id=3.%20R%26D%20Investment%20Table) During the reporting period, the company's expensed R&D investment was **RMB 61.27 million**, a year-on-year decrease of **17.15%**; total R&D investment as a percentage of operating revenue was **7.27%**, a decrease of **0.30 percentage points** from the prior year period | Indicator | Current Period Amount (RMB) | Prior Year Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | **Expensed R&D Investment** | 61.27 million | 73.96 million | -17.15 | | **Total R&D Investment** | 61.27 million | 73.96 million | -17.15 | | **Total R&D Investment as % of Operating Revenue (%)** | 7.27 | 7.57 | Decreased by 0.30 percentage points | [4. Ongoing R&D Projects](index=26&type=section&id=4.%20Ongoing%20R%26D%20Projects) The company has **27 ongoing R&D projects** with a total estimated investment of **RMB 369 million**, a current period investment of **RMB 54.72 million**, and a cumulative investment of **RMB 129 million**; these projects primarily focus on cutting-edge fields such as hydrogen fuel cells, new energy vehicle electric drive systems, embodied AI robots, battery manufacturing automation, motor intelligent manufacturing processes, intelligent powertrain assembly and integrated warehousing systems, and intelligent virtual simulation technology, aiming to address industry pain points, enhance production efficiency and product quality, and promote industrial intelligent upgrading | Project Name | Estimated Total Investment (RMB 10,000) | Current Period Investment (RMB 10,000) | Cumulative Investment (RMB 10,000) | Progress or Phased Achievements | Technical Level | | :--- | :--- | :--- | :--- | :--- | :--- | | **Hydrogen Fuel Cell Fully Automatic Docking Test Platform R&D and Production Line Integration** | 1,580.00 | 53.60 | 475.49 | R&D Stage | Domestically Leading | | **New Energy Vehicle Electric Drive System Multi-in-One Flexible Assembly Technology R&D** | 3,760.00 | 717.93 | 2,906.33 | R&D Stage | Domestically Leading | | **New Energy Vehicle Electronic Control Test Technology Development and Equipment Manufacturing** | 1,060.00 | 175.70 | 782.55 | R&D Stage | Domestically Leading | | **Integrated Engine Tray Intelligent Lifting and Rotating Positioning Device R&D and Application Exploration Project** | 960.00 | 18.96 | 684.43 | R&D Stage | Domestically Leading | | **Battery Manufacturing Automation and High-Efficiency Key Technologies and Equipment R&D** | 2,960.00 | 807.42 | 2,839.51 | R&D Stage | Domestically Leading | | **R&D of Key Equipment and Processes for X-pin Wire Group Stator Automated Production** | 1,080.00 | 74.50 | 519.52 | R&D Stage | Domestically Leading | | **Intelligent Powertrain Assembly and Integrated Warehousing System R&D** | 3,120.00 | 870.10 | 870.10 | R&D Stage | Domestically Leading | | **Motor Intelligent Manufacturing Process Comprehensive Upgrade and Verification Technology R&D** | 2,180.00 | 710.64 | 710.64 | R&D Stage | Domestically Leading | | **Intelligent Virtual Simulation Technology Comprehensive Development** | 880.00 | 23.10 | 23.10 | R&D Stage | Domestically Leading | | **Embodied Task Planning and Interactive Action Generation Engine** | 1,280.00 | - | - | R&D Stage | Domestically Leading | | **Automotive Core Component Humanoid Robot Assembly Verification** | 1,080.00 | 136.42 | 136.42 | R&D Stage | Domestically Leading | | **New Energy Vehicle Electric Drive Production Process Large Model R&D and Application** | 1,780.00 | 33.60 | 33.60 | R&D Stage | Domestically Leading | | **Development of Industrial-Grade Embodied Robots Based on Complex Skill Learning and Control Technology** | 5,200.00 | 6.65 | 6.65 | R&D Stage | Domestically Leading | | **Development and Application of Embodied AI Technology for Industrial Tightening and Handling Scenarios** | 3,200.00 | - | - | R&D Stage | Domestically Leading | | **High-Efficiency Intelligent Electric Drive System Comprehensive Test Technology R&D Project** | 2,731.00 | 488.77 | 1,591.01 | R&D Stage | Domestically Leading | | **Humanoid Robot Tightening Technology R&D** | 2,000.00 | 388.03 | 399.35 | R&D Stage | Domestically Leading | | **New Energy Vehicle Flat Wire Motor Stator Precision Welding and Insulation Coating Technology R&D** | 150.00 | 85.39 | 85.39 | R&D Stage | Domestically Leading | | **Flexible Logistics Driven Lithium Battery PACK Modular Intelligent Manufacturing System Development** | 160.00 | 100.81 | 100.81 | R&D Stage | Domestically Leading | | **Key Technology R&D for Multi-Station Collaborative Flat Wire Motor Flexible Assembly System** | 180.00 | 104.29 | 104.29 | R&D Stage | Domestically Leading | | **High Energy Density Battery Pack Intelligent Assembly Line Key Processes and Equipment R&D** | 180.00 | 108.64 | 108.64 | R&D Stage | Domestically Leading | | **Key Technology Research for Embodied Intelligent Perception-Decision Fusion System for Intelligent Manufacturing** | 200.00 | - | - | R&D Stage | Domestically Leading | | **Intelligent Data-Driven Product Compliance Management Platform Development** | 142.56 | 71.28 | 71.28 | R&D Stage | Domestically Advanced | | **Enterprise-Level Integrated Management and Industrial Intelligence Unified Platform Development** | 386.69 | 193.34 | 193.34 | R&D Stage | Domestically Advanced | | **Equipment Manufacturing Integrated Operation Management System R&D** | 179.44 | 89.72 | 89.72 | R&D Stage | Domestically Advanced | | **Equipment Manufacturing Supply Chain Management System R&D** | 154.13 | 77.07 | 77.07 | R&D Stage | Domestically Advanced | | **Laboratory Inspection Management System R&D** | 139.94 | 69.97 | 69.97 | R&D Stage | Domestically Advanced | | **Intelligent Warehousing Process Orchestration System R&D** | 132.31 | 66.15 | 66.15 | R&D Stage | Domestically Advanced | | **Total** | 36,856.06 | 5,472.08 | 12,945.36 | / | / | [5. R&D Personnel Information](index=36&type=section&id=5.%20R%26D%20Personnel%20Information) At the end of the reporting period, the company had **406 R&D personnel**, accounting for **17.10%** of the total workforce; total R&D personnel compensation was **RMB 47.22 million**, with an average compensation of **RMB 0.1163 million**; R&D personnel are primarily bachelor's degree holders or above, with the 30-40 age group forming the main force | Indicator | Current Period | Prior Year Period | | :--- | :--- | :--- | | **Number of Company R&D Personnel (persons)** | 406 | 422 | | **R&D Personnel as % of Total Company Workforce (%)** | 17.10 | 15.39 | | **Total R&D Personnel Compensation (RMB 10,000)** | 4,721.57 | 5,670.45 | | **Average R&D Personnel Compensation (RMB 10,000)** | 11.63 | 13.44 | | Educational Background | Number (persons) | Proportion (%) | | :--- | :--- | :--- | | **Master's Degree and Above** | 32 | 7.88 | | **Bachelor's Degree** | 320 | 78.82 | | **Associate Degree** | 48 | 11.82 | | **High School and Below** | 6 | 1.48 | | **Total** | 406 | 100.00 | | Age Range | Number (persons) | Proportion (%) | | :--- | :--- | :--- | | **Under 30** | 95 | 23.40 | | **30-40 years old** | 255 | 62.81 | | **40-50 years old** | 44 | 10.84 | | **50-60 years old** | 11 | 2.71 | | **60 years old and above** | 1 | 0.25 | | **Total** | 406 | 100.00 | [IV. Risk Factors](index=36&type=section&id=IV.%20Risk%20Factors) The company faces risks of significant performance decline or losses, primarily due to reduced revenue scale and gross profit margin, increased asset and credit impairment losses, and high uncertainty in new businesses; core competitiveness risks include technological iteration and talent loss; operational risks encompass delayed delivery of order backlog, fluctuations in major projects, overseas project implementation and exchange rate risks, overcapacity, and fundraising projects not meeting expectations; financial risks are reflected in declining gross and net profit margins, capital shortages, and uncollectible accounts receivable; macroeconomic environment risks include macroeconomic fluctuations and deteriorating international trade conditions [(I) Risk of Significant Performance Decline or Losses](index=36&type=section&id=(I)%20Risk%20of%20Significant%20Performance%20Decline%20or%20Losses) The company reported losses during the period, with operating revenue decreasing by **13.68%** year-on-year and net profit decreasing by **1600.90%**; key reasons include reduced revenue scale and gross profit margin, significant asset impairment losses, and credit impairment losses; additionally, escalating global trade frictions, long overseas project implementation cycles, geopolitical and exchange rate fluctuations may adversely affect the company's performance; the newly deployed embodied AI business is still in the R&D stage, with limited short-term contribution but substantial investment, posing uncertainties regarding market demand, policies, and technological R&D - During the reporting period, the company's operating revenue decreased by **13.68%** year-on-year, and net profit attributable to the parent company decreased by **1600.90%**[87](index=87&type=chunk) - Key reasons for performance losses include reduced revenue scale and gross profit margin, significant asset impairment losses, and substantial credit impairment losses[87](index=87&type=chunk) - Escalating global trade frictions, rising tariffs, long overseas project implementation cycles, geopolitical risks, and exchange rate fluctuation risks may adversely affect the company's operations and overseas orders[88](index=88&type=chunk) - The newly deployed embodied AI business is in the product development and technological R&D stage, with small short-term order volumes and limited contribution to operating performance, but involves significant R&D investment, posing uncertainties regarding market demand, industry policies, and technological R&D[89](index=89&type=chunk) [(II) Core Competitiveness Risks](index=37&type=section&id=(II)%20Core%20Competitiveness%20Risks) The company operates in a technology-innovation-driven industry where technological advantage is a core competency; if its technological R&D and innovation capabilities fail to meet client demands in a timely manner, the company faces the risk of client loss; simultaneously, intensified industry competition may lead to the risk of technical talent loss and technology leakage - The company faces the risk of technological iteration; if its technological R&D and innovation capabilities cannot timely match client demands, it may lead to client loss[90](index=90&type=chunk) - The company faces the risk of technical talent loss and technology leakage, as intensified industry competition may exacerbate the struggle for technical talent[91](index=91&type=chunk) [(III) Operational Risks](index=37&type=section&id=(III)%20Operational%20Risks) The company faces the risk of delayed delivery of order backlog; under the non-standard equipment production model, factors such as client demand changes, production element matching, and transportation cycles may lead to reduced revenue recognition and increased costs and expenses; major projects involve significant amounts, and fluctuations in their delivery pace and gross profit margins may affect the company's performance stability; overseas orders account for a large proportion, and geopolitical, tax policy, exchange rate fluctuations, visa and labor regulations, and other risks may adversely affect overseas project implementation; additionally, the company faces risks of overcapacity and fundraising projects not meeting expectations - Risk of delayed delivery of order backlog: under the non-standard equipment production model, factors such as client demand changes, plan adjustments, production element matching, and transportation cycles may lead to project delays, affecting current period revenue and costs[92](index=92&type=chunk) - Fluctuations in major projects and operating performance risks: individual projects involve significant amounts, and their delivery pace and gross profit margins have a substantial impact on the company's performance stability[93](index=93&type=chunk) - Overseas project implementation risks and exchange rate risks: overseas orders account for a large proportion, facing adverse factors such as tariffs, geopolitics, tax policies, exchange rate fluctuations, visa and labor regulations, and collection issues[94](index=94&type=chunk) - Risks of overcapacity and fundraising projects not meeting expectations: the company's new orders rapidly declined in 2024, while fundraising projects, once completed, can add **RMB 3.127 billion** in capacity, posing a risk of insufficient capacity utilization[95](index=95&type=chunk) [(IV) Financial Risks](index=38&type=section&id=(IV)%20Financial%20Risks) The company faces risks of declining gross and net profit margins, primarily due to increased overseas project implementation costs and intensified industry competition leading to lower gross profits, as well as increased depreciation and amortization from factory expansion driving up expense ratios; the company's net cash flow from operating activities fluctuates significantly, posing risks of capital shortages and sustained negative cash flow, mainly because client installment payments are offset by upfront production material investments; additionally, growing balances of accounts receivable and contract assets present risks of overdue client payments and uncollectibility - Risks of declining gross and net profit margins: increased overseas project implementation costs and intensified industry competition lead to lower gross profits; factory expansion results in increased depreciation and amortization, driving up expense ratios[96](index=96&type=chunk) - Risks of capital shortage and negative net operating cash flow: client installment payments, coupled with upfront production material investments, lead to significant operating cash outflows[98](index=98&type=chunk) - Risk of growing and potentially uncollectible accounts receivable (including those classified as contract assets): increased balances of accounts receivable and contract assets, with instances of overdue client payments, influenced by macroeconomic conditions and client efficiency[99](index=99&type=chunk) [(V) Industry Risks](index=39&type=section&id=(V)%20Industry%20Risks) The company's downstream clients are concentrated in the automotive industry, facing cyclical risks; if vehicle production and sales decline or client capital expenditures decrease, the company's orders will be affected; simultaneously, competition in the intelligent manufacturing equipment industry is intensifying, including existing competitors and companies transitioning from the 3C industry, leading to a decline in order gross profit margins, which may adversely affect the company's operations - Automotive industry cyclical risks: the company's downstream clients are concentrated in the automotive industry; if vehicle production and sales decline, client operating rates decrease, or capital expenditures for new production lines are reduced, the company's orders will decrease[100](index=100&type=chunk) - Risks of intensified market competition: competition in the intelligent manufacturing equipment industry is intensifying, including domestic and international competitors and companies transitioning from the 3C industry, leading to a decline in order gross profit margins, which may adversely affect the company's operations[101](index=101&type=chunk) [(VI) Macroeconomic Environment Risks](index=39&type=section&id=(VI)%20Macroeconomic%20Environment%20Risks) The company's operations are closely linked to the downstream automotive industry and macroeconomic cycles; significant changes in the macroeconomic situation will adversely affect the company's performance; furthermore, deteriorating international trade conditions, such as geopolitical tensions and prevalent trade protectionism, may lead to increased tariffs and export restrictions, adversely impacting the company's overseas business and future performance - Macroeconomic fluctuation risks: the company's operations are closely linked to the downstream automotive industry and macroeconomic cycles; changes in the macroeconomic situation will adversely affect the company's operating performance[102](index=102&type=chunk) - Risks of deteriorating international trade conditions: factors such as geopolitical tensions and prevalent trade protectionism may lead to increased tariffs and export restrictions, adversely impacting the company's overseas orders and market expansion[103](index=103&type=chunk)[104](index=104&type=chunk) [V. Key Operating Performance During the Reporting Period](index=40&type=section&id=V.%20Key%20Operating%20Performance%20During%20the%20Reporting%20Period) This section analyzes changes in the company's main business financial statement items, asset and liability status, and investment situation; during the reporting period, operating revenue and R&D expenses decreased year-on-year, while financial expenses and net cash flow from operating activities changed significantly; the asset and liability structure shifted, with long-term equity investments and contract liabilities increasing substantially, and financial assets held for trading decreasing; the company's external equity investments primarily involve associate companies, and financial information for major holding and participating subsidiaries is disclosed [(I) Main Business Analysis](index=40&type=section&id=(I)%20Main%20Business%20Analysis) During the reporting period, the company's operating revenue decreased by **13.68%** year-on-year, and operating costs decreased by **4.20%** year-on-year; sales expenses and R&D expenses both decreased, while financial expenses increased by **23.90%** year-on-year; net cash flow from operating activities turned significantly positive, primarily due to strengthened collection management | Item | Current Period Amount (RMB) | Prior Year Period Amount (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 842.90 million | 976.49 million | -13.68 | | **Operating Cost** | 714.00 million | 745.29 million | -4.20 | | **Selling Expenses** | 22.36 million | 29.13 million | -23.24 | | **Administrative Expenses** | 92.52 million | 94.92 million | -2.53 | | **Financial Expenses** | 30.58 million | 24.68 million | 23.90 | | **R&D Expenses** | 61.27 million | 73.96 million | -17.15 | | **Net Cash Flow from Operating Activities** | 199.78 million | -570.44 million | N/A | | **Net Cash Flow from Investing Activities** | 62.16 million | 75.59 million | -17.76 | | **Net Cash Flow from Financing Activities** | -127.51 million | 336.46 million | -137.90 | - Net cash flow from operating activities turned significantly positive, primarily due to the company's continuous strengthening of collection management during the reporting period, with a focus on controlling pre-shipment payment collection for projects[107](index=107&type=chunk) - The change in net cash flow from financing activities was primarily due to a decrease in new borrowings by the company during the reporting period[108](index=108&type=chunk) [(III) Analysis of Assets and Liabilities](index=41&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) As of the end of the reporting period, the company's total assets were **RMB 6.77 billion**, a year-on-year increase of **4.33%**; net assets attributable to shareholders were **RMB 1.88 billion**, a year-on-year decrease of **6.64%**; contract liabilities increased by **62.86%** year-on-year, mainly due to increased customer prepayments; long-term equity investments increased by **2633.18%** year-on-year, primarily due to investments in associate companies; financial assets held for trading decreased by **87.98%** year-on-year, mainly due to the redemption of matured wealth management products; notes receivable increased by **222.04%** year-on-year, primarily due to an increase in commercial acceptance bills; deferred income tax assets increased by **35.91%** year-on-year, mainly due to increased deferred income tax provisions resulting from company losses | Item Name | Current Period End Amount (RMB) | Current Period End Amount as % of Total Assets (%) | Prior Year End Amount (RMB) | Prior Year End Amount as % of Total Assets (%) | YoY Change in Current Period End Amount (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Cash and Cash Equivalents** | 664.12 million | 9.81 | 544.68 million | 8.40 | 21.93 | / | | **Receivables** | 868.75 million | 12.83 | 746.28 million | 11.50 | 16.41 | / | | **Inventories** | 3.23 billion | 47.78 | 3.12 billion | 48.10 | 3.65 | / | | **Contract Assets** | 119.19 million | 1.76 | 148.17 million | 2.28 | -19.55 | / | | **Long-term Equity Investment** | 8.04 million | 0.12 | 0.29 million | 0.00 | 2,633.18 | Primarily due to investments in associate companies during the reporting period | | **Fixed Assets** | 1.06 billion | 15.59 | 1.07 billion | 16.55 | -1.72 | / | | **Short-term Borrowings** | 1.10 billion | 16.21 | 867.68 million | 13.37 | 26.44 | / | | **Contract Liabilities** | 1.82 billion | 26.85 | 1.12 billion | 17.20 | 62.86 | Primarily due to increased customer prepayments received by the company during the reporting period | | **Long-term Borrowings** | 573.87 million | 8.48 | 766.81 million | 11.82 | -25.16 | / | | **Financial Assets Held for Trading** | 13.44 million | 0.20 | 111.87 million | 1.72 | -87.98 | Primarily due to the redemption of matured wealth management products as of the end of the reporting period | | **Notes Receivable** | 36.04 million | 0.53 | 11.19 million | 0.17 | 222.04 | Primarily due to an increase in commercial acceptance bills at the end of the reporting period compared to the beginning of the period | | **Other Receivables** | 56.77 million | 0.84 | 33.67 million | 0.52 | 68.63 | Primarily due to an increase in letter of guarantee deposits opened for customers during the reporting period | | **Deferred Income Tax Assets** | 126.74 million | 1.87 | 93.25 million | 1.44 | 35.91 | Primarily due to increased deferred income tax provisions resulting from company losses during the reporting period | | **Notes Payable** | 69.83 million | 1.03 | 185.82 million | 2.86 | -62.42 | Primarily due to a decrease in acceptance bills paid to suppliers during the reporting period | | **Other Payables** | 19.04 million | 0.28 | 44.50 million | 0.69 | -57.21 | Primarily due to an increase in accrued travel expenses and transportation insurance expenses at the end of the reporting period | | **Minority Interests** | -6.13 million | -0.09 | -4.22 million | -0.07 | 45.06 | Primarily due to a decrease in net profit during the reporting period | - Overseas assets amounted to **RMB 191.53 million**, accounting for **2.83%** of total assets[112](index=112&type=chunk) | Item | Period End Carrying Amount (RMB) | Reason for Restriction | | :--- | :--- | :--- | | **Cash and Cash Equivalents** | 116.34 million | Bank acceptance bills, letters of guarantee, letters of credit deposits | | **Fixed Assets** | 263.69 million | Used as collateral for financing | | **Intangible Assets** | 142.77 million | Used as collateral for financing | | **Total** | 522.80 million | / | [(IV) Investment Analysis](index=43&type=section&id=(IV)%20Investment%20Analysis) During the reporting period, the company's investment amounted to **RMB 37.62 million**, a year-on-year increase of **9.71%**; the fair value of financial assets at period-end was **RMB 13.44 million**, a significant decrease from **RMB 111.87 million** at the beginning of the period, primarily due to the redemption of matured wealth management products; Dalian Haosen Ruide Equipment Manufacturing Co., Ltd., a major controlled subsidiary, had total assets of **RMB 4.883 billion** and a net loss of **RMB 111 million**; during the reporting period, the company established Shanghai Haoling Intelligent Technology Co., Ltd. and Shenzhen Haoling Robot Co., Ltd. | Indicator | Investment Amount in Current Period (RMB) | Investment Amount in Prior Year Period (RMB) | Change | | :--- | :--- | :--- | :--- | | **Investment Amount** | 37.62 million | 34.30 million | 9.71% | | Asset Category | Beginning of Period Amount (RMB) | Fair Value Change Gains/Losses in Current Period (RMB) | Current Period Purchase Amount (RMB) | Current Period Sale/Redemption Amount (RMB) | End of Period Amount (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Other (Financial Assets Held for Trading)** | 111.87 million | -1.84 million | 33.05 million | 129.63 million | 13.44 million | | Company Name | Company Type | Main Business | Registered Capital (RMB 10,000) | Total Assets (RMB 10,000) | Net Profit (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Dalian Haosen Ruide Equipment Manufacturing Co., Ltd.** | Subsidiary | Planning, R&D, design, assembly, debugging, integration, sales, service, and turnkey projects for intelligent production lines | 18,000.00 | 488,293.84 | -11,102.30 | - During the reporting period, Shanghai Haoling Intelligent Technology Co., Ltd. and Shenzhen Haoling Robot Co., Ltd. were newly established, with no significant impact on overall production, operations, and performance[118](index=118&type=chunk) Section IV Corporate Governance, Environment, and Society This section primarily discloses corporate governance-related information; during the reporting period, there were no changes in the company's directors, supervisors, senior management, and core technical personnel; the company did not formulate a semi-annual profit distribution or capital reserve capitalization plan; the share registration for the second vesting period of the initial grant and the first vesting period of the reserved grant under the company's 2022 restricted stock incentive plan has been completed, and some granted but unvested restricted shares have been cancelled [II. Profit Distribution or Capital Reserve Capitalization Plan](index=46&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Capitalization%20Plan) The company did not formulate a semi-annual profit distribution or capital reserve capitalization plan, with the number of bonus shares, dividends, and capitalization shares per 10 shares all being 0 | Whether to Distribute or Capitalize | No | | :--- | :--- | | **Bonus Shares per 10 Shares (shares)** | 0 | | **Dividends per 10 Shares (RMB) (tax inclusive)** | 0 | | **Capitalization Shares per 10 Shares (shares)** | 0 | [III. Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=46&type=section&id=III.%20Status%20and%20Impact%20of%20Company%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The share registration for the second vesting period of the initial grant and the first vesting period of the reserved grant under the company's 2022 restricted stock incentive plan was completed on March 13, 2025, with a total of **888,644 shares** listed for circulation; additionally, on April 14, 2025, the company's board of directors approved the proposal to cancel some granted but unvested restricted shares - On March 13, 2025, the share registration for the second vesting period of the initial grant and the first vesting period of the reserved grant under the company's 2022 restricted stock incentive plan was completed[122](index=122&type=chunk) - The total number of shares listed for circulation was **888,644 shares**, with the listing date being March 19, 2025[122](index=122&type=chunk) - On April 14, 2025, the company's board of directors approved the 'Proposal on Cancelling Some Granted but Unvested Restricted Shares'[122](index=122&type=chunk) Section V Significant Matters This section details the fulfillment of the company's commitments, significant guarantees, and the progress of fundraising proceeds utilization; the company's actual controllers, shareholders, directors, supervisors, senior management, and core technical personnel have all strictly fulfilled their commitments; the company provided substantial guarantees for its subsidiaries, with the total guarantee amount representing a high proportion of net assets; the overall use of fundraising proceeds progressed smoothly, with some idle funds temporarily used to supplement working capital and for cash management [I. Fulfillment of Commitments](index=48&type=section&id=I.%20Fulfillment%20of%20Commitments) All commitments made by the company's actual controllers, shareholders, directors, supervisors, senior management, and core technical personnel, whether during or continuing into the reporting period, have been strictly fulfilled, including commitments regarding share lock-up, reduction intentions, share repurchase, avoidance of horizontal competition, standardization of related-party transactions, and measures to offset diluted immediate returns - The company's directors, supervisors, senior management, and core technical personnel all committed that the number of shares transferred annually during their tenure shall not exceed **25%** of their directly and indirectly held company shares; they also committed not to transfer shares within six months after resignation[126](index=126&type=chunk) - Shareholders holding **5%** or more committed that within two years after the lock-up period expires, their total reduction will not exceed **20%** of their total company shares held, and the reduction price will not be lower than the company's initial public offering price[127](index=127&type=chunk) - The company's actual controllers committed to avoid horizontal competition with the company and ensure that related-party transactions do not harm the legitimate rights and interests of the company and other shareholders[131](index=131&type=chunk)[132](index=132&type=chunk) - The company, its actual controllers, directors, supervisors, and senior management all committed to repurchase shares issued through fraudulent listing and bear compensation liability according to law[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk) - All company directors and senior management committed not to transfer benefits to other entities or individuals without compensation or under unfair conditions, not to use company assets for investment or consumption activities unrelated to their duties, and to link the compensation system with the implementation of the company's return-filling measures[134](index=134&type=chunk) [XI. Significant Contracts and Their Fulfillment](index=58&type=section&id=XI.%20Significant%20Contracts%20and%20Their%20Fulfillment) During the reporting period, the company primarily provided guarantees for its subsidiaries; as of the end of the reporting period, the total guarantee balance for subsidiaries was **RMB 2.312 billion**, accounting for **122.75%** of the company's net assets; among these, the debt guarantee amount provided for guaranteed entities with an asset-liability ratio exceeding **70%** was **RMB 1.648 billion** | Guarantor | Guaranteed Party | Relationship with Listed Company | Guarantee Amount (RMB 10,000) | Guarantee Type | Overdue | | :--- | :--- | :--- | :--- | :--- | :--- | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 27,000.00 | General Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 40,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 15,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 30,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 43,000.00 | General Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 12,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 20,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 20,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 50,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 10,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 8,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 11,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 12,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 8,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 10,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 13,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 10,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Ruide | Wholly-owned Subsidiary | 9,950.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Hungary | Wholly-owned Subsidiary | 10.00 million Euro | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Shenzhen Intelligent | Wholly-owned Subsidiary | 1,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Zhiyuan | Controlled Subsidiary | 500.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Zhiyuan | Controlled Subsidiary | 960.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Zhiyuan | Controlled Subsidiary | 1,500.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Software | Controlled Subsidiary | 1,000.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Software | Controlled Subsidiary | 1,200.00 | Joint and Several Liability Guarantee | No | | **Haosen Intelligent** | Haosen Runbo | Wholly-owned Subsidiary | 60,000.00 | Joint an

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