深圳市安奈儿股份有限公司 2025 年半年度报告 深圳市安奈儿股份有限公司 2025 年半年度报告全文 1 2025 年 8 月 公司已在本报告中详细描述可能存在的相关风险，敬请查阅本报告第三节 管理层讨论与分析之"十一、公司面临的风险和应对措施"章节。本报告中涉及 的未来计划、业绩预测均不构成公司对投资者的实质承诺，投资者及相关人士 应当理解计划、预测与承诺之间的差异。敬请投资者注意投资风险。 公司需遵守《深圳证券交易所上市公司自律监管指引第 3 号——行业信息 披露》中的"纺织服装相关业务"的披露要求 公司已在本报告中详细描述了公司所在行业的情况，敬请查阅本报告第三 节管理层讨论与分析之"一、报告期内公司从事的主要业务"章节。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 深圳市安奈儿股份有限公司 2025 年半年度报告全文 2 深圳市安奈儿股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的 真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别 和连带的法律责任。 公司负责人曹璋、主管会计工作负 ...

浙江华是科技股份有限公司 2025 年半年度报告 1 2025 年 8 月 浙江华是科技股份有限公司 2025 年半年度报告全文 2025-000 【披露时间】 浙江华是科技股份有限公司 2025 年半年度报告全文 | 第一节 | 重要提示、目录和释义 2 | | | --- | --- | --- | | 第二节 | 公司简介和主要财务指标 6 | | | 第三节 | 管理层讨论与分析 9 | | | 第四节 | 公司治理、环境和社会 26 | | | 第五节 | 重要事项 | 29 | | 第六节 | 股份变动及股东情况 | 42 | | 第七节 | 债券相关情况 | 49 | | 第八节 | 财务报告 | 50 | 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容 的真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担 个别和连带的法律责任。 公司负责人俞永方、主管会计工作负责人陈碧玲及会计机构负责人(会计 主管人员)陈碧玲声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 本报告中涉及的未来发展战 ...

成都瑞迪智驱科技股份有限公司 2025 年半年度报告全文 成都瑞迪智驱科技股份有限公司 2025 年半年度报告 2025 年 8 月 1 成都瑞迪智驱科技股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容 的真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担 个别和连带的法律责任。 公司负责人卢晓蓉、主管会计工作负责人蒋景奇及会计机构负责人(会计 主管人员)尹婕声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 本报告"第三节 管理层讨论与分析"之"十、公司面临的风险和应对措 施"部分，详细描述了公司经营中可能存在的风险及应对措施，敬请投资者 关注相关内容。 公司经本次董事会审议通过的利润分配预案为：以总股本 77,165,300 股 为基数，向全体股东每 10 股派发现金红利 4.00 元（含税），送红股 0 股 （含税），不以公积金转增股本。 2 | 目录 | | --- | | 第一节 重要提示、目录和释义 | 2 | | --- | --- | | 第二节 ...

深圳市长盈精密技术股份有限公司 2025 年半年度报告全文 深圳市长盈精密技术股份有限公司 2025 年半年度报告 2025-56 2025 年 8 月 1 深圳市长盈精密技术股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容 的真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担 个别和连带的法律责任。 公司负责人陈奇星、主管会计工作负责人朱守力及会计机构负责人(会计 主管人员)徐达海声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 本报告中如果有涉及未来的计划、预测等方面内容，均不构成本公司对 任何投资者及相关人士的承诺，投资者及相关人士均应对此保持足够的风险 认识，并且应该理解计划、预测与承诺之间的差异。 详细内容请查阅本报告"第三节 管理层讨论与分析"之"十、公司面临 的风险和应对措施"。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | 目录 | | --- | | 第一节 重要提示、目录和释义 2 | | | --- | --- | | ...

华联控股股份有限公司 2025 年半年度报告全文 证券代码：000036 证券简称：华联控股 公告编号：2025-053 华联控股股份有限公司 2025 年半年度报告 【2025 年 8 月】 1 华联控股股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会及董事、高级管理人员保证半年度报告内容的真实、准确、完整，不存在 虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 公司负责人龚泽民先生、总经理张勇华先生及副总经理兼财务负责人苏秦先生声明： 保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 本报告除对事实陈述外，所有本公司对预测、目标、计划及展望的前瞻性陈述都涉及 各类已知或未知的风险与不确定因素，其大部分不受公司控制，且可能影响公司的经营运 作及实际业绩，导致公司未来的实际结果可能与这些陈述出现较大差异。敬请投资者审慎 参考且不可完全依赖本报告的前瞻性陈述。 本报告分析、描述了公司目前及未来发展面临的行业风险、经营风险、产业转型风险 及存在的问题与困难等，敬请投资者关注并查阅"管理层讨论与分析"章节中的相关部分 内 ...

[Section 1 Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Section%201%20Important%20Notice%2C%20Table%20of%20Contents%2C%20and%20Definitions) [Important Notice](index=2&type=section&id=Important%20Notice) The company's board, supervisory board, and senior management guarantee the semi-annual report's truthfulness and completeness, with no plans for cash dividends, bonus shares, or capital reserve conversions - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming individual and joint legal responsibility[4](index=4&type=chunk) - Company head Huang Mingliang, chief accountant Yang Ping, and head of accounting Ye Yixin declare the financial report in this semi-annual report is true, accurate, and complete[4](index=4&type=chunk) - The company plans no cash dividends, bonus shares, or capital reserve conversions into share capital[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This report's clear table of contents is divided into eight sections, covering company profile, financial indicators, management discussion and analysis, corporate governance, significant matters, share changes, bond information, and financial reports [Reference Documents Catalog](index=4&type=section&id=Reference%20Documents%20Catalog) Reference documents include signed and sealed financial statements, original audit reports, disclosed company documents, and the legal representative's signed semi-annual report - Reference documents include financial statements signed and sealed by the company head, chief accountant, and head of accounting[10](index=10&type=chunk) - Reference documents include original audit reports sealed by the accounting firm and signed by certified public accountants[10](index=10&type=chunk) - Reference documents include originals of all company documents and announcements disclosed during the reporting period[10](index=10&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section defines common terms used in the report, including company names, key subsidiaries, photovoltaic cell technologies (e.g., HJT, TOPCon, PERC), and related effects (LID, PID), ensuring accurate understanding - **Liansheng Technology**, the company, or the listed company refers to Liansheng Technology Co., Ltd., the listed entity[11](index=11&type=chunk) - **HJT** refers to Hetero Junction Technology, an efficient crystalline silicon solar cell structure[11](index=11&type=chunk) - **TOPCon** refers to Tunnel Oxide Passivating Contacts technology, which improves cell photoelectric conversion efficiency through specific structures[11](index=11&type=chunk) [Section 2 Company Profile and Key Financial Indicators](index=7&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) [I. Company Profile](index=7&type=section&id=I.%20Company%20Profile) Liansheng Technology Co., Ltd. (stock code: 300051) is listed on the Shenzhen Stock Exchange, with Huang Mingliang as its legal representative - The company's stock abbreviation is "Liansheng Technology", stock code **300051**, listed on the Shenzhen Stock Exchange[16](index=16&type=chunk) - The company's legal representative is Huang Mingliang[16](index=16&type=chunk) [II. Contact Person and Contact Information](index=7&type=section&id=II.%20Contact%20Person%20and%20Contact%20Information) The company's board secretary is Wu Yanlan, and the securities affairs representative is Chen Silei, with consistent contact address and phone number, and email zqb@leasdgrp.cn - The board secretary is Wu Yanlan, and the securities affairs representative is Chen Silei[17](index=17&type=chunk) - The contact address is No. 8 Guanri Road, Xiamen Software Park Phase II, and the telephone number is **0592-2950819**[17](index=17&type=chunk) - The email address is zqb@leasdgrp.cn[17](index=17&type=chunk) [III. Other Information](index=7&type=section&id=III.%20Other%20Information) The company's registered address, office address, website, and email changed during the reporting period, with the registered address moving to Nantong High-tech Industrial Development Zone and website/email domains changing to .cn - The company's registered address changed to No. 66 Tongjia East Road, Nantong High-tech Industrial Development Zone[18](index=18&type=chunk) - The company's website changed from www.leasdgrp.com to https://www.leasdgrp.cn starting from July 17, 2025[18](index=18&type=chunk) - The company's email address changed from zqb@leasdgrp.com to zqb@leasdgrp.cn starting from July 17, 2025[18](index=18&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=8&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company's operating revenue increased by **35.90%** year-on-year, but net profit attributable to shareholders decreased by **18.24%**, and net cash flow from operating activities significantly dropped by **139.55%** Key Accounting Data and Financial Indicators (Year-on-Year Change) | Indicator | Current Reporting Period (yuan) | Prior Year Adjusted (yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 209,441,046.07 | 154,111,472.37 | 35.90% | | Net Profit Attributable to Listed Company Shareholders | -50,161,902.15 | -42,422,451.45 | -18.24% | | Net Profit Attributable to Listed Company Shareholders Excluding Non-Recurring Gains and Losses | -58,456,700.27 | -60,905,649.35 | 4.02% | | Net Cash Flow from Operating Activities | -28,229,578.46 | 71,379,190.53 | -139.55% | | Basic Earnings Per Share (yuan/share) | -0.13 | -0.12 | -8.33% | | Diluted Earnings Per Share (yuan/share) | -0.13 | -0.12 | -8.33% | | Weighted Average Return on Net Assets | -23.09% | -13.92% | -9.17% | | Total Assets (period-end) | 3,030,831,947.05 | 3,304,265,575.79 | -8.28% | | Net Assets Attributable to Listed Company Shareholders (period-end) | 193,784,657.10 | 241,842,814.58 | -19.87% | - The company adjusted the revenue recognition method for its network domain name business from gross to net, resulting in a simultaneous reduction of **9,991,419.48 yuan** in consolidated operating revenue and operating costs for January-June 2024[22](index=22&type=chunk) [V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=9&type=section&id=V.%20Differences%20in%20Accounting%20Data%20Under%20Domestic%20and%20Overseas%20Accounting%20Standards) During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under international or overseas accounting standards and those under Chinese accounting standards - The company reported no differences in net profit and net assets between financial statements disclosed under international accounting standards and those under Chinese accounting standards during the reporting period[25](index=25&type=chunk) - The company reported no differences in net profit and net assets between financial statements disclosed under overseas accounting standards and those under Chinese accounting standards during the reporting period[26](index=26&type=chunk) [VI. Non-Recurring Gains and Losses and Amounts](index=9&type=section&id=VI.%20Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to **8,294,798.12 yuan**, primarily comprising government subsidies, reversal of impairment provisions for receivables, and other non-operating income Non-Recurring Gains and Losses and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -320.27 | | Government subsidies recognized in current profit or loss | 12,118,085.22 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 1,348,892.05 | | Other non-operating income and expenses apart from the above | 703,179.72 | | Other profit and loss items conforming to the definition of non-recurring gains and losses | 11,384,023.55 | | Less: Income tax impact | 230,888.94 | | Impact on minority interests (after tax) | 17,028,173.21 | | Total | 8,294,798.12 | - The company has no other specific situations conforming to the definition of non-recurring gains and losses[29](index=29&type=chunk) [Section 3 Management Discussion and Analysis](index=11&type=section&id=Section%203%20Management%20Discussion%20and%20Analysis) [I. Main Businesses Engaged by the Company During the Reporting Period](index=11&type=section&id=I.%20Main%20Businesses%20Engaged%20by%20the%20Company%20During%20the%20Reporting%20Period) The company's main businesses include photovoltaic cells, mobile communication resale, and property leasing, with the PV sector experiencing growth but facing oversupply and competition, while the company focuses on capacity expansion and technological innovation [(I) Industry Overview During the Reporting Period](index=11&type=section&id=%28I%29%20Industry%20Overview%20During%20the%20Reporting%20Period) The photovoltaic industry is crucial for global energy transition, with China's market growing **107%** in H1 2025, despite facing oversupply and competition, as national policies guide towards high-quality development and large-scale renewable energy bases - China's photovoltaic market continued to grow in the first half of 2025, with installation forecasts revised upwards from **215-255 GW** to **270-300 GW**[31](index=31&type=chunk) - Domestic photovoltaic new installations reached **212.21 GW** from January to June, a **107%** year-on-year increase, with monthly peak installations growing **388%** and setting a new historical high of **92.92 GW**[31](index=31&type=chunk) - The state has intensively introduced a series of policies to promote expanded local consumption of new energy power, encourage the improvement of commercial models like "solar-plus-storage," and plan for an additional **253 million kilowatts** of photovoltaic installations by 2030[32](index=32&type=chunk) [(II) Company Business Overview and Main Products](index=11&type=section&id=%28II%29%20Company%20Business%20Overview%20and%20Main%20Products) The company's core businesses are photovoltaic cells, mobile communication resale, and property leasing, with significant investments in high-efficiency HJT battery production, a growing mobile user base, and a thriving technology park - As of the end of the reporting period, the company's Meishan Danleng base has an installed standard capacity of **3.8 GW** for heterojunction cells, and the Jiangsu Nantong base's first phase **3 GW** high-efficiency heterojunction cell project is under construction[34](index=34&type=chunk) - The company's jointly developed G12 large-size crystalline silicon heterojunction perovskite tandem cell achieved a breakthrough in photoelectric conversion efficiency, certified by the National Photovoltaic Product Quality Supervision and Inspection Center to reach **32.99%**[36](index=36&type=chunk) - As of June 30, 2025, the company's mobile communication resale active users reached **2.5484 million**, including **714,000** China Telecom users and **1.8344 million** China Mobile users[41](index=41&type=chunk) - As of June 30, 2025, Tianjin Liansheng Technology Park has attracted over **200** enterprises, primarily targeting the biomedical, internet, inspection and testing, and smart technology industries[42](index=42&type=chunk) [(III) Main Operating Model](index=13&type=section&id=%28III%29%20Main%20Operating%20Model) The company's photovoltaic cell business operates on a self-production and self-sales model, while mobile communication resale combines direct and agency sales, with procurement driven by orders and R&D focused on independent innovation and collaboration - The photovoltaic cell business primarily adopts a self-production and self-sales model, emphasizing customer service[43](index=43&type=chunk) - The mobile communication resale business employs a marketing model combining direct sales and agency sales[44](index=44&type=chunk) - The procurement model is primarily based on customer orders, ensuring raw material supply through medium- and long-term agreements, and maintaining safety stock for common or critical raw materials[45](index=45&type=chunk) - The R&D model is primarily based on independent research and innovation, collaborating with universities and research institutes[48](index=48&type=chunk) [(IV) Company's Operating Performance During the Reporting Period](index=13&type=section&id=%28IV%29%20Company%27s%20Operating%20Performance%20During%20the%20Reporting%20Period) During the reporting period, the company's operating revenue increased by **35.90%** to **209.441 million yuan**, driven by solar cell business growth, but net profit attributable to parent company owners decreased by **18.24%** to **-50.1619 million yuan** due to reduced government subsidies - During the reporting period, the company achieved operating revenue of **209.441 million yuan**, a **35.90%** increase year-on-year, primarily due to increased solar cell operating revenue[50](index=50&type=chunk) - Net profit attributable to parent company owners was **-50.1619 million yuan**, a **18.24%** decrease year-on-year, mainly due to reduced government subsidies received during the period[50](index=50&type=chunk) - The company will adhere to a high-efficiency, differentiated competition strategy, accelerating technological upgrades to further improve HJT cell product conversion efficiency and reduce production costs[50](index=50&type=chunk) [II. Analysis of Core Competitiveness](index=14&type=section&id=II.%20Analysis%20of%20Core%20Competitiveness) The company's core competitiveness lies in its stable product quality, high-efficiency components, leading N-type heterojunction (HJT) technology, continuous cost reduction, experienced management team, and clear industrial layout and strategic positioning [(I) Photovoltaic Cell Business](index=14&type=section&id=%28I%29%20Photovoltaic%20Cell%20Business) The company's photovoltaic cell business focuses on N-type heterojunction (HJT) cells, boasting high conversion efficiency (over **26%** average mass production efficiency), low degradation, low temperature coefficient, and high bifaciality, supported by continuous R&D and an experienced management team - The company's N-type heterojunction (HJT) cell mass production conversion efficiency can reach over **26%** on average, and its independently developed high-efficiency HJT 0BB module power has reached a maximum of **781.97 W**[51](index=51&type=chunk) - The company is actively focusing on silicon wafer thinning, silver-coated copper technology, 0BB technology, and indium-free target material technology, having completed mass production process development for **100 µm** thick silicon wafer cells and using low-silver content paste (**27%**)[52](index=52&type=chunk)[53](index=53&type=chunk) - The company possesses a professional management team with many years of experience in the solar photovoltaic industry, deeply understanding global PV technology development and business trends[54](index=54&type=chunk) - The company has invested in two heterojunction cell production bases: Meishan Danleng (**3.8 GW**) and Jiangsu Nantong (Phase I **3 GW** under construction), with products positioned for the **210 mm** size market, giving it a first-mover advantage[56](index=56&type=chunk) [III. Main Business Analysis](index=15&type=section&id=III.%20Main%20Business%20Analysis) The company's operating revenue increased by **35.90%** year-on-year, primarily due to an **83.87%** surge in solar cell business revenue, while operating costs rose by **53.07%**, and net cash flow from operating activities decreased by **139.55%** due to increased cash payments for goods and services Main Financial Data Year-on-Year Change | Indicator | Current Reporting Period (yuan) | Prior Year (yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 209,441,046.07 | 154,111,472.37 | 35.90% | Increase in solar cell business operating revenue | | Operating Cost | 244,711,119.07 | 159,868,466.85 | 53.07% | Increase in solar cell business operating cost | | Selling Expenses | 5,273,222.17 | 14,306,706.84 | -63.14% | Disposal of subsidiary Sanwu Information | | Income Tax Expense | 3,310,641.57 | -28,312,870.32 | 111.69% | Decrease in deferred income tax assets recognized | | R&D Investment | 9,484,537.78 | 15,656,943.78 | -39.42% | Disposal of subsidiary Sanwu Information | | Net Cash Flow from Operating Activities | -28,229,578.46 | 71,379,190.53 | -139.55% | Increase in cash paid for goods and services | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Margin | Year-on-Year Change in Operating Revenue | | :--- | :--- | :--- | :--- | :--- | | Solar Cells and Modules | 154,655,672.01 | 213,640,398.12 | -38.14% | 83.87% | | Mobile Communication Resale Products | 33,665,304.73 | 18,565,552.75 | 44.85% | 26.98% | | Property Leasing | 20,216,369.34 | 12,484,759.27 | 38.24% | 3.57% | - This period's export operating revenue, operating cost, and gross margin increased by **2346.16%**, **1432.60%**, and **62.43%** respectively year-on-year, primarily due to increased overseas sales of the company's solar cells[64](index=64&type=chunk) Production and Sales by Technology Category | Technology Category | Sales Volume | Sales Revenue (yuan) | Gross Margin | Production Capacity | Production Volume | Under Construction Capacity | Planned Capacity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Solar Cells | 345.38 MW | 144,889,180.35 | -40.83% | 2.8 GW | 365.80 MW | 4 GW | 20 GW | [IV. Non-Core Business Analysis](index=18&type=section&id=IV.%20Non-Core%20Business%20Analysis) The company's non-core businesses impacted total profit, with negative investment income, significant asset impairment losses, and other income primarily from government subsidies and liquidated damages Impact of Non-Core Businesses on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | -72,151.06 | 0.05% | Recognition of investment income from associates accounted for using equity method | Depends on company's future investment situation | | Asset Impairment | -18,574,034.19 | 13.81% | Provision for inventory depreciation | Depends on future impairment testing of inventory, contract assets, and fixed assets | | Non-Operating Income | 909,836.20 | -0.68% | Liquidated damages received | No | | Other Income | 12,224,275.44 | -9.09% | Government subsidies recognized during the reporting period | Depends on future government subsidies received | [V. Analysis of Assets and Liabilities](index=18&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's total assets and net assets attributable to listed company shareholders both decreased, with significant changes in various asset and liability items, and some assets subject to rights restrictions 1. Significant Changes in Asset Composition At the end of the reporting period, monetary funds decreased by **65.08%** year-on-year due to increased cash payments for fixed asset construction, while accounts receivable decreased by **32.16%** due to collections by subsidiary Meishan Liansheng, and construction in progress decreased by **44.26%** as projects were transferred to fixed assets Significant Changes in Asset Composition | Item | End of Current Reporting Period (yuan) | Proportion of Total Assets | End of Prior Year Adjusted (yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 87,261,805.18 | 2.88% | 249,903,509.44 | 7.56% | -4.68% | Increase in cash paid for construction of fixed assets, intangible assets, and other long-term assets | | Accounts Receivable | 28,435,035.54 | 0.94% | 41,914,059.33 | 1.27% | -0.33% | Subsidiary Meishan Liansheng collected accounts receivable | | Prepayments | 8,930,561.24 | 0.29% | 29,284,925.66 | 0.89% | -0.60% | Decrease in prepaid material costs | | Long-term Equity Investments | 4,324,461.36 | 0.14% | 2,105,059.08 | 0.06% | 0.08% | Paid-in capital for investment in associates completed | | Fixed Assets | 1,695,057,024.86 | 55.93% | 1,430,453,261.71 | 43.29% | 12.64% | - | | Construction in Progress | 406,001,240.23 | 13.40% | 728,448,561.16 | 22.05% | -8.65% | Some construction in progress transferred to fixed assets | 2. Significant Changes in Liability Composition At the end of the reporting period, notes payable decreased by **61.25%** year-on-year due to maturity and payment by subsidiary Meishan Liansheng, while non-current liabilities due within one year increased by **131.31%** due to increased bank borrowings Significant Changes in Liability Composition | Item | End of Current Reporting Period (yuan) | Proportion of Total Assets | End of Prior Year (yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Notes Payable | 65,538,393.10 | 2.16% | 169,112,803.35 | 5.12% | -2.96% | Subsidiary Meishan Liansheng's notes payable matured and were settled | | Non-current Liabilities Due Within One Year | 108,211,429.54 | 3.57% | 46,782,711.52 | 1.42% | 2.15% | Increase in bank borrowings due within one year | | Other Current Liabilities | 43,218,712.48 | 1.43% | 32,374,652.32 | 0.98% | 0.45% | Increase in borrowings during the current period | | Other Non-current Liabilities | 24,771,182.00 | 0.82% | 16,073,826.00 | 0.49% | 0.33% | Interest-free loan obtained from controlling shareholder Hainan Liansheng during the current period | 3. Major Overseas Assets The company had no major overseas assets during the reporting period - The company reported no major overseas assets during the reporting period[77](index=77&type=chunk) 4. Assets and Liabilities Measured at Fair Value At period-end, the company's financial assets measured at fair value totaled **306,085.71 yuan**, primarily comprising other equity instrument investments and accounts receivable financing, with cumulative fair value changes in other equity instrument investments recorded in equity amounting to **-10,273,544.99 yuan** Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | | Other Equity Instrument Investments | 27,154.93 | 26,455.01 | | Accounts Receivable Financing | 7,374,848.34 | 279,630.70 | | Total Above | 7,402,003.27 | 306,085.71 | - The cumulative fair value change of other equity instrument investments recognized in equity is **-10,273,544.99 yuan**, with the current year's fair value change being **-699.92 yuan**[79](index=79&type=chunk) 5. Asset Rights Restricted as of the End of the Reporting Period At the end of the reporting period, the company's monetary funds, inventories, fixed assets, and intangible assets were subject to rights restrictions, totaling **455,740,216.55 yuan** in book value, primarily due to bank acceptance bill deposits, frozen funds, and mortgage/floating charge guarantees Asset Rights Restricted | Item | Period-End Book Balance (yuan) | Period-End Book Value (yuan) | Type of Restriction | | :--- | :--- | :--- | :--- | | Monetary Funds | 41,320,112.11 | 41,320,112.11 | Bank acceptance bill deposits, frozen funds | | Inventories | 29,329,568.38 | 16,395,436.84 | Floating charge guarantee | | Fixed Assets | 490,406,497.68 | 373,767,833.86 | Mortgage guarantee | | Intangible Assets | 34,261,003.75 | 24,256,833.74 | Mortgage guarantee | | Total | 595,317,181.92 | 455,740,216.55 | - | - Subsidiary Tianjin Liansheng provided mortgage guarantees for **170 million yuan** in fixed asset loans using its own land use rights and buildings[82](index=82&type=chunk) - Subsidiary Meishan Liansheng provided floating charge guarantees for procurement framework contracts with inventories valued at **10 million yuan** and **50 million yuan**[82](index=82&type=chunk) [VI. Investment Analysis](index=22&type=section&id=VI.%20Investment%20Analysis) During the reporting period, the company's investment decreased significantly by **76.29%** year-on-year, with major non-equity investment projects in Meishan and Nantong for HJT cell production currently under construction, and no significant equity investments, raised capital usage, entrusted wealth management, derivative investments, or entrusted loans Investment Amount During the Reporting Period | Indicator | Investment Amount in Current Reporting Period (yuan) | Investment Amount in Prior Year (yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 145,932,804.03 | 615,400,796.97 | -76.29% | Significant Non-Equity Investments in Progress | Project Name | Investment Method | Fixed Asset Investment | Industry | Amount Invested in Current Reporting Period (yuan) | Cumulative Actual Investment as of Period-End (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Meishan New Energy 8GW HJT Cell Project | Self-built | Yes | New Energy Photovoltaic | 6,033,492.29 | 1,330,507,908.65 | | Nantong New Energy 12GW HJT Cell Project—Phase I 3GW | Self-built | Yes | New Energy Photovoltaic | 480,943.40 | 18,180,032.55 | - The company reported no entrusted wealth management, derivative investments, or entrusted loans during the reporting period[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) [VII. Major Asset and Equity Sales](index=23&type=section&id=VII.%20Major%20Asset%20and%20Equity%20Sales) The company did not undertake any major asset or equity sales during the reporting period - The company did not sell any major assets during the reporting period[92](index=92&type=chunk) - The company did not sell any major equity during the reporting period[93](index=93&type=chunk) [VIII. Analysis of Major Holding and Associate Companies](index=23&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Associate%20Companies) The company's major subsidiaries include Tianjin Liansheng (consolidated), Meishan Liansheng (consolidated), Jiangsu Liansheng, and Sanwu Digital; while Tianjin Liansheng and Meishan Liansheng saw significant revenue growth, their net profits were negative, but Sanwu Digital's net profit increased by **33.31%** Major Subsidiaries and Associate Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Operating Revenue (yuan) | Net Profit (yuan) | Period-End Total Assets (yuan) | Period-End Net Assets (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Tianjin Liansheng (Consolidated) | Subsidiary | 173,653,151.37 | -134,594,989.62 | 2,921,380,908.99 | 741,138,609.48 | | Meishan Liansheng (Consolidated) | Subsidiary | 155,559,372.00 | -127,220,240.89 | 2,270,322,580.07 | 439,271,547.27 | | Jiangsu Liansheng | Subsidiary | 1,962,264.16 | -5,582,251.95 | 468,708,427.15 | 283,005,544.55 | | Sanwu Digital | Subsidiary | 18,124,666.75 | 7,573,678.51 | 53,540,851.61 | 28,441,654.37 | - This period's operating revenue increased by **69.45%** year-on-year, primarily due to increased operating revenue from Meishan Liansheng's solar cell business[95](index=95&type=chunk) - Sanwu Digital's net profit increased by **33.31%** year-on-year, mainly due to increased product gross profit[96](index=96&type=chunk) - During the reporting period, Anhui Liansheng New Energy Co., Ltd. was established as a subsidiary, with a net profit of **605.45 yuan**[95](index=95&type=chunk) [IX. Structured Entities Controlled by the Company](index=24&type=section&id=IX.%20Structured%20Entities%20Controlled%20by%20the%20Company) The company reported no structured entities under its control during the reporting period - The company reported no structured entities under its control during the reporting period[97](index=97&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=24&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company primarily faces policy, market competition, and raw material price fluctuation risks in the photovoltaic cell industry, which it addresses through policy monitoring, continuous R&D, cost reduction, enhanced customer service, talent acquisition, and optimized supply chain management [(I) Photovoltaic Cell Industry Risks](index=24&type=section&id=%28I%29%20Photovoltaic%20Cell%20Industry%20Risks) The photovoltaic cell industry faces risks from policy adjustments, intensified market competition, and volatile raw material prices, which the company addresses through strategic adjustments, continuous R&D, cost reduction, improved customer service, talent acquisition, and optimized supply chain management - Policy risk: The photovoltaic industry benefits from national industrial policies, and significant future policy adjustments could impact the industry[97](index=97&type=chunk) - Market risk: The industry has numerous competitors and rapid capacity expansion, potentially leading to intensified competition and periodic product price fluctuations[98](index=98&type=chunk) - Risk of significant raw material price fluctuations: Prices of major raw materials such as silicon wafers, silver paste, and other chemicals are prone to significant fluctuations[99](index=99&type=chunk) - Countermeasures include continuously advancing R&D and process upgrades for cost reduction and efficiency improvement, enhancing product performance and photoelectric conversion efficiency, and implementing an efficient supply chain management mechanism[98](index=98&type=chunk)[99](index=99&type=chunk) [XI. Registration Form for Investor Relations Activities During the Reporting Period](index=25&type=section&id=XI.%20Registration%20Form%20for%20Investor%20Relations%20Activities%20During%20the%20Reporting%20Period) On May 16, 2025, the company engaged with investors via an online platform, discussing content related to its investor relations activities on that date - The reception time was May 16, 2025, and the reception venue was the Value Online (https://www.ir-online.cn/) online platform for interactive communication[100](index=100&type=chunk) - The reception method was online platform communication, and the type of reception object was other investors' online questions[100](index=100&type=chunk) - The main content discussed and materials provided are detailed in the company's investor relations activity record table dated May 16, 2025[100](index=100&type=chunk) [XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=25&type=section&id=XII.%20Formulation%20and%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) The company has not disclosed a market value management system or a valuation enhancement plan - The company has not formulated a market value management system[101](index=101&type=chunk) - The company has not disclosed a valuation enhancement plan[101](index=101&type=chunk) [XIII. Implementation of "Quality and Return Dual Improvement" Action Plan](index=25&type=section&id=XIII.%20%22Quality%20and%20Return%20Dual%20Improvement%22%20Action%20Plan%20Implementation) The company has not disclosed an announcement regarding its "Quality and Return Dual Improvement" action plan - The company has not disclosed an announcement regarding its "Quality and Return Dual Improvement" action plan[101](index=101&type=chunk) [Section 4 Corporate Governance, Environment, and Society](index=26&type=section&id=Section%204%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) [I. Changes in Directors, Supervisors, and Senior Management](index=26&type=section&id=I.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) No changes occurred in the company's directors, supervisors, or senior management during the reporting period - No changes occurred in the company's directors, supervisors, or senior management during the reporting period[103](index=103&type=chunk) [II. Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period](index=26&type=section&id=II.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20During%20the%20Reporting%20Period) The company plans no cash dividends, bonus shares, or capital reserve conversions into share capital for the semi-annual period - The company plans no cash dividends, bonus shares, or capital reserve conversions into share capital for the semi-annual period[104](index=104&type=chunk) [III. Implementation of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=26&type=section&id=III.%20Implementation%20of%20Company%27s%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company's 2024 restricted stock incentive plan is ongoing, with initial, partial reserved, and remaining reserved grants totaling **5.438 million** restricted shares registered for **63** incentive recipients - On August 7, 2024, the company completed the initial grant registration for its 2024 restricted stock incentive plan, granting **5.228 million** restricted shares to **51** incentive recipients[105](index=105&type=chunk) - On November 12, 2024, the company completed the partial reserved restricted stock grant registration for its 2024 restricted stock incentive plan, granting **1.05 million** restricted shares to **9** incentive recipients[106](index=106&type=chunk) - On July 29, 2025, the company completed the remaining reserved restricted stock grant registration for its 2024 restricted stock incentive plan, granting **160,000** restricted shares to **3** incentive recipients[106](index=106&type=chunk) [IV. Environmental Information Disclosure](index=28&type=section&id=IV.%20Environmental%20Information%20Disclosure) The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[110](index=110&type=chunk) [V. Social Responsibility](index=28&type=section&id=V.%20Social%20Responsibility) The company adheres to a "win-win development, harmonious sharing, focused efficiency" philosophy, aiming to be a world-class high-efficiency solar enterprise through technological innovation and green development, while acknowledging areas for improvement in social responsibility fulfillment - The company adheres to a "win-win development, harmonious sharing, focused efficiency" value philosophy, with the vision of "becoming a world-class high-efficiency solar enterprise," deeply cultivating high-efficiency heterojunction (HJT) cell technology development[110](index=110&type=chunk) - The company further improves its governance structure, fully respects and safeguards the legitimate rights and interests of all shareholders, especially small and medium shareholders, and creditors, maintaining effective communication with shareholders through its official website, public accounts, phone, email, and interactive platforms[111](index=111&type=chunk) - The company strictly complies with labor laws and regulations, legally protecting employees' legitimate rights and interests, with all employees signing labor contracts in accordance with national and local laws and regulations, and providing "five insurances and one housing fund" welfare benefits[112](index=112&type=chunk) - During the reporting period, the company still had certain gaps in fulfilling its social responsibilities compared to relevant requirements, especially in areas such as "consolidating and expanding poverty alleviation achievements and rural revitalization work," where no work was carried out[114](index=114&type=chunk) [Section 5 Significant Matters](index=30&type=section&id=Section%205%20Significant%20Matters) [I. Commitments Fulfilled During the Reporting Period and Overdue Unfulfilled Commitments as of the End of the Reporting Period by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and Other Committed Parties](index=30&type=section&id=I.%20Commitments%20Fulfilled%20During%20the%20Reporting%20Period%20and%20Overdue%20Unfulfilled%20Commitments%20as%20of%20the%20End%20of%20the%20Reporting%20Period%20by%20the%20Company%27s%20Actual%20Controller%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20Other%20Committed%20Parties) During the reporting period, all commitments made by the company's controlling shareholder Hainan Liansheng Technology Co., Ltd. and its concerted parties, as well as the company's directors and senior management, including share lock-up and return compensation measures, were fulfilled - Hainan Liansheng committed to participating in this subscription with legal self-owned or self-raised funds, ensuring legal and compliant funding sources, with no external fundraising, nominee holdings, structured arrangements, or direct/indirect use of funds from the issuer, its controlling subsidiaries, or associate companies for this subscription[117](index=117&type=chunk) - The shares subscribed by Hainan Liansheng are restricted from transfer for **36 months** from the end of the issuance, which has been fulfilled[117](index=117&type=chunk) - The company's controlling shareholder and concerted parties, and actual controller, have made commitments to ensure the effective implementation of the company's return compensation measures in accordance with relevant CSRC regulations, which have been fulfilled[118](index=118&type=chunk) - The company's directors and senior management committed to faithfully and diligently performing their duties, safeguarding the legitimate rights and interests of the company and all shareholders, and have made commitments to ensure the effective implementation of the company's immediate return compensation measures in accordance with relevant CSRC regulations, which have been fulfilled[119](index=119&type=chunk) [II. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties](index=33&type=section&id=II.%20Non-Operating%20Fund%20Occupation%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties) The company reported no non-operating fund occupation by controlling shareholders or other related parties during the reporting period - The company reported no non-operating fund occupation by controlling shareholders or other related parties during the reporting period[121](index=121&type=chunk) [III. Irregular External Guarantees](index=33&type=section&id=III.%20Irregular%20External%20Guarantees) The company reported no irregular external guarantees during the reporting period - The company reported no irregular external guarantees during the reporting period[122](index=122&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=34&type=section&id=IV.%20Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[123](index=123&type=chunk) [V. Explanation by the Board of Directors, Supervisory Board, and Audit Committee on the Accounting Firm's "Non-Standard Audit Report" for the Current Reporting Period](index=34&type=section&id=V.%20Explanation%20by%20the%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20and%20Audit%20Committee%20on%20the%20Accounting%20Firm%27s%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Current%20Reporting%20Period) The company reported no non-standard audit report during the reporting period - The company reported no non-standard audit report during the reporting period[124](index=124&type=chunk) [VI. Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year](index=34&type=section&id=VI.%20Explanation%20by%20the%20Board%20of%20Directors%20on%20the%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Previous%20Year) The company reported no explanation regarding a non-standard audit report for the previous year during the reporting period - The company reported no explanation regarding a non-standard audit report for the previous year during the reporting period[124](index=124&type=chunk) [VII. Bankruptcy and Reorganization Matters](index=34&type=section&id=VII.%20Bankruptcy%20and%20Reorganization%20Matters) The company reported no bankruptcy and reorganization matters during the reporting period - The company reported no bankruptcy and reorganization matters during the reporting period[124](index=124&type=chunk) [VIII. Litigation Matters](index=34&type=section&id=VIII.%20Litigation%20Matters) The company is involved in significant litigation and arbitration, including a contract dispute with Nanjing Xingwangmeng Enterprise Management Partnership (Limited Partnership) where a settlement was reached but payments are overdue, leading to enforcement applications, and a domain name and trademark dispute with Facebook, Inc. and Instagram, LLC, resulting in a **$5,461,851.20** judgment against the company, which has been appealed - The company's contract dispute with Nanjing Xingwangmeng Enterprise Management Partnership (Limited Partnership) has a final ruling that is effective, with the company winning, but some payments were not received on time, leading the company to file a lawsuit and apply for compulsory enforcement[125](index=125&type=chunk) - The company was sued by Facebook, Inc. and Instagram, LLC for domain name and trademark infringement, ordered to pay **$5,461,851.20**, and the company has filed an appeal[126](index=126&type=chunk) - The company's other minor lawsuits have a cumulative involved amount of **26.2453 million yuan**, with some cases concluded or ongoing, causing no significant impact on the company[126](index=126&type=chunk) [IX. Penalties and Rectification](index=35&type=section&id=IX.%20Penalties%20and%20Rectification) The company, Huang Mingliang, and Yang Ping received warning letters from the Jiangsu Securities Regulatory Bureau and regulatory letters from the Shenzhen Stock Exchange due to improper accounting for network domain name business and incorrect amortization of rent-free periods for industrial park leasing, leading to inaccurate financial statements in the 2023 annual report, with the company actively implementing rectifications - The company used the gross method for network domain name business accounting and amortized the rent-free period for some industrial park leasing businesses within the first lease year of the contract, rather than over the entire lease term[128](index=128&type=chunk) - These accounting treatments did not comply with relevant regulations, leading to inaccurate reporting of operating revenue, operating costs, and other accounting items in the company's 2023 annual report financial statements[128](index=128&type=chunk) - The Jiangsu Securities Regulatory Bureau issued administrative warning letters to the parties involved, which were recorded in their securities and futures market integrity files; the Shenzhen Stock Exchange issued regulatory letters to the company and relevant parties[128](index=128&type=chunk) - The company and relevant personnel have strictly followed the requirements of the Jiangsu Securities Regulatory Bureau, thoroughly reviewed the issues, actively rectified them, and submitted written reports within the specified deadline[129](index=129&type=chunk) [X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=36&type=section&id=X.%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) The company reported no integrity issues concerning itself, its controlling shareholder, or its actual controller during the reporting period - The company reported no integrity issues concerning itself, its controlling shareholder, or its actual controller during the reporting period[130](index=130&type=chunk) [XI. Significant Related Party Transactions](index=36&type=section&id=XI.%20Significant%20Related%20Party%20Transactions) The company reported no related party transactions concerning daily operations, asset/equity acquisitions/disposals, or joint external investments during the reporting period, but did have related party debt and credit transactions, including interest-free loans from its controlling shareholder Hainan Liansheng, and plans for a major asset reorganization involving share issuance and cash payment to acquire **69.71%** of Xingshu Century's shares, which constitutes a related party transaction - The company reported no related party transactions concerning daily operations, asset or equity acquisitions/disposals, or joint external investments during the reporting period[130](index=130&type=chunk)[131](index=131&type=chunk)[133](index=133&type=chunk) Debts Payable to Related Parties | Related Party | Relationship | Reason for Formation | Beginning Balance (10,000 yuan) | Amount Added in Current Period (10,000 yuan) | Amount Repaid in Current Period (10,000 yuan) | Ending Balance (10,000 yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hainan Liansheng Technology Co., Ltd. | Controlling Shareholder | Shareholder Loan | 0 | 1,260 | 370 | 890 | - The company plans to acquire **69.71%** of Xingshu Century's shares from **38** counterparties through a share issuance and cash payment, and simultaneously raise supporting funds from its controlling shareholder Hainan Liansheng, which constitutes a related party transaction[137](index=137&type=chunk) - The company's controlling subsidiary accepted an interest-free loan totaling no more than **140 million yuan** from its controlling shareholder Hainan Liansheng Technology Co., Ltd., which constitutes a related party transaction[138](index=138&type=chunk) - The company and its controlling subsidiary Tianjin Liansheng provided full joint and several liability guarantees for its controlling sub-subsidiary Meishan Liansheng's loan application from Bank of China Co., Ltd., with the company's actual controllers Huang Mingliang and Ouyang Ping, and company directors Wang Xin and Wu Zirong, also providing full joint and several liability guarantees, constituting a related party transaction[139](index=139&type=chunk) [XII. Major Contracts and Their Performance](index=39&type=section&id=XII.%20Major%20Contracts%20and%20Their%20Performance) The company reported no trusteeship or contracting arrangements during the reporting period; its leasing operations include Tianjin Liansheng Industrial Park's external leasing, parent company office rentals, and a factory construction and leasing agreement between subsidiary Meishan Liansheng and Danleng Industrial Investment; the company has multiple significant guarantees, primarily for subsidiary loans, and has entered into several major operating and other significant contracts, such as solar cell production line procurement and HJT project construction contracts - The company reported no trusteeship or contracting arrangements during the reporting period[144](index=144&type=chunk)[145](index=145&type=chunk) - Controlling subsidiary Tianjin Liansheng Industrial Park is open for external leasing, and the parent company leases out vacant office buildings[146](index=146&type=chunk) - Controlling sub-subsidiary Meishan Liansheng signed a factory construction and leasing agreement with Danleng County Industrial Investment Co., Ltd., where Danleng Industrial Investment will customize a factory for the "Phase I New Energy 8GW High-Efficiency Heterojunction Cell Project" with a **15-year** lease term[146](index=146&type=chunk) Company's Guarantees for Subsidiaries | Name of Guaranteed Party | Guarantee Limit (10,000 yuan) | Actual Guarantee Amount (10,000 yuan) | Type of Guarantee | Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Meishan Liansheng Photovoltaic Technology Co., Ltd. | 55,000 | 48,096.3 | Joint and Several Liability Guarantee | No | | Meishan Liansheng Photovoltaic Technology Co., Ltd. | 20,000 | 5,665 | Joint and Several Liability Guarantee | No | | Xiamen Sanwu Digital Technology Co., Ltd. | 500 | 500 | Joint and Several Liability Guarantee | No | | Xiamen Sanwu Digital Technology Co., Ltd. | 1,000 | 9 | Joint and Several Liability Guarantee | No | | Tianjin Liansheng Technology Co., Ltd. | 20,000 | 16,700 | Joint and Several Liability Guarantee | No | | Xiamen Sanwu Digital Technology Co., Ltd. | 2,281.11 | 2,281.11 | Joint and Several Liability Guarantee | No | | Meishan Liansheng Photovoltaic Technology Co., Ltd. | 6,000 | 6,000 | Joint and Several Liability Guarantee | No | - The company signed a major operating contract with Suzhou Maxwell Technology Co., Ltd. for **2** solar cell production lines, each with a capacity of **1 GW/line**, totaling **2 GW** capacity[157](index=157&type=chunk)[158](index=158&type=chunk) - The company's controlling sub-subsidiary Jiangsu Liansheng signed a construction contract for the heterojunction (HJT) solar cell production project with Emeishan Rongji Construction Co., Ltd.[159](index=159&type=chunk) [XIII. Explanation of Other Significant Matters](index=45&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) During the reporting period, the company experienced changes in registered capital and articles of association, disclosed its annual performance forecast, terminated a private placement of shares, and underwent a major asset reorganization, while its 2024 restricted stock incentive plan continued to progress - The company's registered capital and articles of association changed, with disclosure dates on January 6, January 21, and January 23, 2025[160](index=160&type=chunk) - The company disclosed its annual performance forecast on January 22, 2025[160](index=160&type=chunk) - The company terminated its private placement of shares, with disclosure dates on March 8 and April 21, 2025[160](index=160&type=chunk) - The company underwent a major asset reorganization, with disclosure dates on April 7, April 11, April 21, May 12, May 16, and June 16, 2025[160](index=160&type=chunk)[161](index=161&type=chunk) - The company's 2024 restricted stock incentive plan continued to progress, with a disclosure date on June 24, 2025[161](index=161&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=46&type=section&id=XIV.%20Significant%20Matters%20of%20Company%20Subsidiaries) During the reporting period, the company's controlling sub-subsidiary received government subsidies - The controlling sub-subsidiary received government subsidies, with a disclosure date on April 22, 2025[162](index=162&type=chunk) [Section 6 Share Changes and Shareholder Information](index=47&type=section&id=Section%206%20Share%20Changes%20and%20Shareholder%20Information) [I. Share Changes](index=47&type=section&id=I.%20Share%20Changes) During the reporting period, the company's total share capital remained unchanged at **371,976,690 shares**, with the proportions of restricted and unrestricted shares also remaining constant, and no share repurchases or concentrated bidding reductions of repurchased shares Share Changes | Item | Number Before This Change (shares) | Proportion Before This Change | Net Increase/Decrease in This Change (shares) | Number After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 6,309,275 | 1.70% | 0 | 6,309,275 | 1.70% | | II. Unrestricted Shares | 365,667,415 | 98.30% | 0 | 365,667,415 | 98.30% | | III. Total Shares | 371,976,690 | 100.00% | 0 | 371,976,690 | 100.00% | - The reasons for share changes, approval status, transfer status, progress of share repurchase implementation, and progress of concentrated bidding reduction of repurchased shares are all not applicable or unchanged during the reporting period[166](index=166&type=chunk) [II. Securities Issuance and Listing](index=48&type=section&id=II.%20Securities%20Issuance%20and%20Listing) The company's 2024 restricted stock incentive plan continued to advance, with the registration of the remaining reserved restricted shares for **3** incentive recipients, totaling **160,000 shares**, completed on July 29, 2025, and listed on August 1, 2025 Securities Issuance During the Reporting Period | Name of Stock and Derivative Securities | Issuance Date | Issuance Price (or Interest Rate) | Issuance Quantity (shares) | Listing Date | Quantity Approved for Listing (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | RMB Ordinary Shares (Restricted Stock) | July 31, 2025 | 4.33 yuan/share | 160,000 | August 1, 2025 | 160,000 | - On July 29, 2025, the company completed the registration of the remaining reserved restricted shares for its 2024 restricted stock incentive plan, granting a total of **160,000** restricted shares to **3** incentive recipients, with the listing date for these reserved restricted shares being August 1, 2025[167](index=167&type=chunk)[168](index=168&type=chunk) [III. Company Shareholder Numbers and Shareholding](index=49&type=section&id=III.%20Company%20Shareholder%20Numbers%20and%20Shareholding) At the end of the reporting period, the total number of ordinary shareholders was **23,068**, with controlling shareholder Hainan Liansheng Technology Co., Ltd. holding **13.87%** and Wan Jiugen holding **5.69%** as a concerted party; Wan Jiugen's shares among the top ten shareholders are pledged - At the end of the reporting period, the total number of ordinary shareholders was **23,068**[170](index=170&type=chunk) Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-End (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Number of Pledged Shares (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hainan Liansheng Technology Co., Ltd. | Domestic Non-State-Owned Legal Person | 13.87% | 51,601,566 | 51,601,566 | Not Applicable | 0 | | Wan Jiugen | Domestic Natural Person | 5.69% | 21,175,200 | 21,175,200 | Pledged | 21,175,200 | | Caida Securities - China Merchants Bank - Caida Securities No. 5 Collective Asset Management Plan for Securities Industry Support for Private Enterprises Development Series | Other | 4.91% | 18,246,300 | 18,246,300 | Not Applicable | 0 | | Liang Chunyan | Domestic Natural Person | 4.71% | 17,513,000 | 17,513,000 | Not Applicable | 0 | | Jiang Guoxiang | Domestic Natural Person | 4.55% | 16,940,108 | 16,940,108 | Not Applicable | 0 | - Wan Jiugen is the spouse of Huang Mingliang's sister, the actual controller of Hainan Liansheng, constituting a concerted party; Wan Jiugen has entrusted his voting rights in the company's shares to Hainan Liansheng Technology Co., Ltd.[172](index=172&type=chunk) [IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=51&type=section&id=IV.%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, the shareholdings of the company's directors, vice chairman, general manager, CFO, vice general managers, and board secretary remained unchanged from the beginning to the end of the period, and all held granted restricted shares Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Beginning Balance of Shares Held (shares) | Ending Balance of Shares Held (shares) | Number of Restricted Shares Granted at Period-End (shares) | | :--- | :--- | :--- | :--- | :--- | | Wang Xin | Director | 800,000 | 800,000 | 800,000 | | Zhu Jiang | Director, Vice Chairman | 600,000 | 600,000 | 600,000 | | Yang Ping | Director, General Manager, CFO | 450,000 | 450,000 | 450,000 | | Ye Mao | Vice General Manager | 400,000 | 400,000 | 400,000 | | Wu Yanlan | Board Secretary | 250,000 | 250,000 | 250,000 | | Zhang Weiwei | Vice General Manager | 215,000 | 215,000 | 200,000 | | Tang Jinglei | Vice General Manager | 226,700 | 226,700 | 200,000 | | Total | -- | 2,941,700 | 2,941,700 | 2,900,000 | [V. Changes in Controlling Shareholder or Actual Controller](index=52&type=section&id=V.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[174](index=174&type=chunk) - The company's actual controller remained unchanged during the reporting period[174](index=174&type=chunk) [VI. Preferred Shares](index=53&type=section&id=VI.%20Preferred%20Shares) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[175](index=175&type=chunk) [Section 7 Bond-Related Information](index=54&type=section&id=Section%207%20Bond-Related%20Information) The company reported no bond-related information during the reporting period - The company reported no bond-related information during the reporting period[177](index=177&type=chunk) [Section 8 Financial Report](index=55&type=section&id=Section%208%20Financial%20Report) [I. Audit Report](index=55&type=section&id=I.%20Audit%20Report) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[179](index=179&type=chunk) [II. Financial Statements](index=55&type=section&id=II.%20Financial%20Statements) This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, providing a comprehensive overview of its financial position, operating results, and cash flows 1. Consolidated Balance Sheet](index=55&type=section&id=1%E3%80%81Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's consolidated total assets amounted to **3.03 billion yuan**, total liabilities to **2.324 billion yuan**, and total owners' equity attributable to the parent company to **193.78 million yuan** Consolidated Balance Sheet Key Data | Item | Ending Balance (yuan) | Beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 3,030,831,947.05 | 3,304,265,575.79 | | Total Liabilities | 2,324,418,075.38 | 2,457,361,951.67 | | Total Owners' Equity Attributable to Parent Company | 193,784,657.10 | 241,842,814.58 | 2. Parent Company Balance Sheet](index=57&type=section&id=2%E3%80%81Parent%20Company%20Balance%20Sheet) As of June 30, 2025, the parent company's total assets amounted to **600.13 million yuan**, total liabilities to **185.77 million yuan**, and total owners' equity to **414.37 million yuan** Parent Company Balance Sheet Key Data | Item | Ending Balance (yuan) | Beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 600,134,259.80 | 629,031,679.44 | | Total Liabilities | 185,767,685.48 | 213,953,871.30 | | Total Owners' Equity | 414,366,574.32 | 415,077,808.14 | 3. Consolidated Income Statement](index=60&type=section&id=3%E3%80%81Consolidated%20Income%20Statement) For the first half of 2025, the company's consolidated total operating revenue was **209.441 million yuan**, net profit was **-137.818 million yuan**, and net profit attributable to parent company shareholders was **-50.1619 million yuan** Consolidated Income Statement Key Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 209,441,046.07 | 154,111,472.37 | | Operating Profit | -135,210,873.60 | -189,557,485.34 | | Net Profit | -137,818,655.72 | -145,151,204.83 | | Net Profit Attributable to Parent Company Shareholders | -50,161,902.15 | -42,422,451.45 | | Basic Earnings Per Share | -0.13 | -0.12 | 4. Parent Company Income Statement](index=62&type=section&id=4%E3%80%81Parent%20Company%20Income%20Statement) For the first half of 2025, the parent company's operating revenue was **32.845 million yuan**, and net profit was **-4.064 million yuan** Parent Company Income Statement Key Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Operating Revenue | 32,844,960.10 | 33,478,408.00 | | Operating Profit | -3,996,809.07 | -993,982.72 | | Net Profit | -4,064,073.28 | 14,017,704.05 | 5. Consolidated Cash Flow Statement](index=63&type=section&id=5%E3%80%81Consolidated%20Cash%20Flow%20Statement) For the first half of 2025, the company's consolidated net cash flow from operating activities was **-28.23 million yuan**, from investing activities was **-147.55 million yuan**, from financing activities was **63.17 million yuan**, and the net increase in cash and cash equivalents was **-112.22 million yuan** Consolidated Cash Flow Statement Key Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -28,229,578.46 | 71,379,190.53 | | Net Cash Flow from Investing Activities | -147,550,437.49 | -603,439,846.97 | | Net Cash Flow from Financing Activities | 63,169,986.98 | 328,833,484.46 | | Net Increase in Cash and Cash Equivalents | -112,220,758.88 | -203,204,005.85 | 6. Parent Company Cash Flow Statement](index=64&type=section&id=6%E3%80%81Parent%20Company%20Cash%20Flow%20Statement) For the first half of 2025, the parent company's net cash flow from operating activities was **-28.87 million yuan**, from investing activities was **7.47 million yuan**, from financing activities was **-2.08 million yuan**, and the net increase in cash and cash equivalents was **-23.48 million yuan** Parent Company Cash Flow Statement Key Data | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -28,870,407.03 | -5,075,205.84 | | Net Cash Flow from Investing Activities | 7,472,600.17 | 8,574,599.27 | | Net Cash Flow from Financing Activities | -2,084,143.32 | 7,791,055.41 | | Net Increase in Cash and Cash Equivalents | -23,482,869.43 | 11,277,999.08 | 7. Consolidated Statement of Changes in Owners' Equity](index=65&type=section&id=7%E3%80%81Consolidated%20Statement%20of%20Changes%20in%20Owners%27%20Equity) For the first half of 2025, the company's consolidated total owners' equity decreased by **140.49 million yuan**, primarily due to net profit losses and changes in minority interests Consolidated Statement of Changes in Owners' Equity | Item | Beginning Balance (yuan) | Amount of Change in Current Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | | Total Owners' Equity Attributable to Parent Company | 241,842,814.58 | -48,058,157.48 | 193,784,657.10 | | Minority Interests | 605,060,809.54 | -92,431,594.97 | 512,629,214.57 | | Total Owners' Equity | 846,903,624.12 | -140,489,752.45 | 706,413,871.67 | 8. Parent Company Statement of Changes in Owners' Equity](index=69&type=section&id=8%E3%80%81Parent%20Company%20Statement%20of%20Changes%20in%20Owners%27%20Equity) For the first half of 2025, the parent company's total owners' equity decreased by **711,233.82 yuan**, mainly due to net profit losses and the impact of share-based payments recognized in owners' equity Parent Company Statement of Changes in Owners' Equity | Item | Beginning Balance (yuan) | Amount of Change in Current Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | | Total Owners' Equity | 415,077,808.14 | -711,233.82 | 414,366,574.32 | | Capital Reserve | 571,993,816.52 | 3,353,434.38 | 575,347,250.90 | | Retained Earnings | -511,491,313.51 | -4,064,073.28 | -515,555,386.79 | [III. Company Basic Information](index=72&type=section&id=III.%20Company%20Basic%20Information) Liansheng Technology Co., Ltd., formerly Xiamen Sanwu Internet Technology Co., Ltd., was listed on the Shenzhen Stock Exchange on February 11, 2010, changed its name to Liansheng Technology Co., Ltd. on September 5, 2023, and relocated its registered office to Nantong on February 26, 2024, primarily engaging in photovoltaic cell and mobile communication resale businesses, with its consolidated financial statements for this period including ten companies such as Tianjin Liansheng Technology Co., Ltd. and Xiamen Sanwu Digital Technology Co., Ltd. - The company, formerly Xiamen Sanwu Internet Technology Co., Ltd., was listed on the Shenzhen Stock Exchange on February 11, 2010[

[Important Notice](index=2&type=section&id=Important%20Notice) This section provides critical information on significant risks, forward-looking statements, and the unaudited nature of the semi-annual report [Significant Risk Warning](index=2&type=section&id=Significant%20Risk%20Warning) The company has detailed its risks in "Section III Management Discussion and Analysis," urging investors to pay attention - The company has described the risks it faces in this report; investors are advised to refer to the "Risk Factors" section in "Section III Management Discussion and Analysis" [5](index=5&type=chunk) [Risk Statement for Forward-Looking Statements](index=2&type=section&id=Risk%20Statement%20for%20Forward-Looking%20Statements) Forward-looking statements in this report, such as development strategies and future plans, do not constitute substantial commitments, and investors should be aware of investment risks - Forward-looking statements in this report, including the company's development strategies, future operating plans, and investment plans, do not constitute substantial commitments to investors; please be aware of investment risks [6](index=6&type=chunk) [Unaudited Semi-Annual Report Statement](index=2&type=section&id=Unaudited%20Semi-Annual%20Report%20Statement) This semi-annual report has not been audited - This semi-annual report has not been audited [7](index=7&type=chunk) [Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) This section provides definitions of common terms used in the report, ensuring accurate understanding of the content [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This chapter defines common terms used in the report, including company and subsidiary names, key customers, and professional terms for production processes - Company, the Company, Freewon refers to Freewon Precision Mechanical (China) Co., Ltd [12](index=12&type=chunk) - Makita refers to Makita Corporation of Japan, a customer in the company's power tools sector [12](index=12&type=chunk) - MIM refers to Metal Injection Molding, a forming method where a plasticized mixture of metal powder and binder is injected into a mold [12](index=12&type=chunk) [Section II Company Profile and Key Financial Indicators](index=5&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company's basic information and key financial performance metrics for the reporting period [Company Basic Information](index=5&type=section&id=Company%20Basic%20Information) This section outlines Freewon Precision Mechanical (China) Co., Ltd.'s basic information, including its name, legal representative, and contact details Company Basic Information | Indicator | Content | | :--- | :--- | | Chinese Name | Freewon Precision Mechanical (China) Co., Ltd. | | Chinese Abbreviation | Freewon | | Legal Representative | Xu Huijun | | Registered Address | No. 168, Yuxi West Road, Qiandeng Town, Kunshan City, Jiangsu Province | | Website | www.freewon.com.cn | | Email | ir@freewon.com.cn | [Contact Person and Contact Information](index=5&type=section&id=Contact%20Person%20and%20Contact%20Information) This section provides contact details for the company's Board Secretary and Securities Affairs Representative, facilitating investor communication Contact Person and Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | You Dongcha | No. 168, Yuxi West Road, Qiandeng Town, Kunshan City, Jiangsu Province | 0512-82609999 | 0512-82608666 | ir@freewon.com.cn | | Securities Affairs Representative | Liu Jinfeng | No. 168, Yuxi West Road, Qiandeng Town, Kunshan City, Jiangsu Province | 0512-82609999 | 0512-82608666 | ir@freewon.com.cn | [Brief Introduction to Changes in Information Disclosure and Document Placement](index=5&type=section&id=Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Placement) This section details the company's designated information disclosure channels and document placement locations, ensuring transparency and accessibility Information Disclosure Channels | Indicator | Content | | :--- | :--- | | Information Disclosure Newspapers | "China Securities Journal", "Shanghai Securities News", "Securities Times" | | Report Website Address | www.sse.com.cn | | Report Placement Location | Securities Legal Department | [Company Stock/Depositary Receipt Overview](index=5&type=section&id=Company%20Stock%2FDepositary%20Receipt%20Overview) This section provides a brief overview of the company's stock, including its type, listing exchange, abbreviation, and code Company Stock Overview | Stock Type | Listing Exchange and Board | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | RMB Ordinary Shares (A-shares) | Shanghai Stock Exchange STAR Market | Freewon | 688678 | [Company's Key Accounting Data and Financial Indicators](index=5&type=section&id=Company%27s%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Revenue increased by 27.45% to 705 million yuan, but total profit and net profit attributable to shareholders significantly declined due to subsidiary losses and increased costs for new projects Key Accounting Data (Jan-Jun 2025 vs. Prior Year Period) | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | Current Period vs. Prior Year Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 705,058,631.62 | 553,215,144.93 | 27.45 | | Total Profit | -36,447,707.37 | 44,391,115.88 | -182.11 | | Net Profit Attributable to Shareholders | -17,737,628.55 | 45,803,499.11 | -138.73 | | Net Profit Attributable to Shareholders After Deducting Non-Recurring Gains and Losses | -25,008,207.61 | 35,095,826.91 | -171.26 | | Net Cash Flow from Operating Activities | 108,761,768.05 | 79,541,707.44 | 36.74 | Key Financial Indicators (Jan-Jun 2025 vs. Prior Year Period) | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Current Period vs. Prior Year Period Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | -0.07 | 0.19 | -136.84 | | Diluted Earnings Per Share (Yuan/share) | -0.07 | 0.19 | -136.84 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (Yuan/share) | -0.09 | 0.14 | -164.29 | | Weighted Average Return on Net Assets (%) | -1.04 | 2.91 | Decreased by 3.95 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | -1.47 | 2.23 | Decreased by 3.70 percentage points | | R&D Investment as % of Operating Revenue (%) | 9.72 | 10.76 | Decreased by 1.04 percentage points | - Total profit, net profit attributable to shareholders, and net profit after deducting non-recurring gains and losses significantly decreased, primarily due to Nantong Freewon's losses and increased costs for new projects [20](index=20&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=6&type=section&id=Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section lists the company's non-recurring gains and losses for the reporting period, totaling 7.27 million yuan, mainly from government grants and fair value changes Non-Recurring Gains and Losses Items (Unit: Yuan) | Non-Recurring Gains and Losses Items | Amount | | :--- | :--- | | Gains or losses from disposal of non-current assets | 7,754.42 | | Government grants recognized in current profit or loss | 5,493,695.43 | | Gains or losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains or losses from disposal of financial assets and liabilities | 2,982,883.08 | | Other non-operating income and expenses | -89,885.89 | | Other non-recurring gains and losses as defined | 657,150.00 | | Less: Income tax impact | 1,410,727.16 | | Minority interest impact (after tax) | 370,290.82 | | Total | 7,270,579.06 | [Net Profit After Deducting Impact of Share-Based Payments](index=7&type=section&id=Net%20Profit%20After%20Deducting%20Impact%20of%20Share-Based%20Payments) This section discloses the net profit after deducting the impact of share-based payments, which was -11.18 million yuan, a 123.68% decrease year-on-year Net Profit After Deducting Impact of Share-Based Payments (Unit: Yuan) | Key Accounting Data | Current Period (Jan-Jun) | Prior Year Period | Current Period vs. Prior Year Period Change (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Impact of Share-Based Payments | -11,180,317.13 | 47,216,419.13 | -123.68 | [Section III Management Discussion and Analysis](index=8&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section discusses the company's industry, business operations, core competencies, and financial performance during the reporting period [Explanation of the Company's Industry and Main Business Operations During the Reporting Period](index=8&type=section&id=Explanation%20of%20the%20Company%27s%20Industry%20and%20Main%20Business%20Operations%20During%20the%20Reporting%20Period) The company specializes in R&D, manufacturing, and sales of precision metal components for 3C, automotive, and power tool industries, focusing on high-tech, non-standardized products and stable supply chains [Main Business, Main Products or Services](index=8&type=section&id=Main%20Business%2C%20Main%20Products%20or%20Services) The company provides precision metal components for 3C, automotive, and power tool sectors, categorized by application and process - The company focuses on the R&D, manufacturing, and sales of precision metal components, primarily serving customers in 3C, automotive, and power tool industries [29](index=29&type=chunk) - Products are categorized by downstream application areas: 3C, automotive, power tools, other industrial precision metal components, and diamond wire substrates [29](index=29&type=chunk) - Products are categorized by production process: precision springs, shaped springs, coiled springs, stamping parts, MIM parts, turned parts, connectors, sunroof drive tubes, and assembled components [29](index=29&type=chunk) [Main Business Model](index=8&type=section&id=Main%20Business%20Model) The company operates on a "produce-to-order" procurement model, primarily in-house production with some outsourcing, and a direct sales model to established downstream clients - Procurement Model: Primarily "produce-to-order," with procurement plans based on customer orders and demand forecasts [33](index=33&type=chunk)[34](index=34&type=chunk) - Production Model: Customized production of precision metal components, mainly in-house, with some non-core processes outsourced [35](index=35&type=chunk) - Sales Model: Primarily direct sales to customers, many of whom are well-known enterprises in downstream industries [36](index=36&type=chunk) [Industry Overview](index=9&type=section&id=Industry%20Overview) The precision metal components industry is rapidly developing, characterized by high technical complexity, non-standardized products, stable supply chains, and a high entry barrier, with future trends towards automation and broader applications - Industry Development Stage: Precision metal component manufacturing is fundamental to various precision instruments; demand for high-end components is rapidly growing with the development of consumer electronics, communication equipment, and automotive industries [37](index=37&type=chunk)[38](index=38&type=chunk) - Industry Characteristics: High technical complexity due to application environments; provision of non-standardized products to downstream customers; stable and long-lasting supply chain relationships between industry leaders and quality downstream clients [39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - Future Development Trends: Automation replacing manual manufacturing; increasing industry concentration; broader downstream applications (e.g., drones, smart equipment, AR/VR); closer collaboration between precision metal component manufacturers and brand owners [48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) [Discussion and Analysis of Operations](index=11&type=section&id=Discussion%20and%20Analysis%20of%20Operations) Revenue increased by 27.45% to 705 million yuan, but net profit attributable to shareholders decreased by 138.73% due to subsidiary losses and increased costs for new projects, while R&D investment and personnel grew Key Operating Data (H1 2025) | Indicator | Amount (10,000 yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Operating Revenue | 70,505.86 | 27.45 | | Net Profit Attributable to Shareholders | -1,773.76 | -138.73 | | Net Profit Attributable to Shareholders After Deducting Non-Recurring Gains and Losses | -2,500.82 | -171.26 | | Net Cash Flow from Operating Activities | 10,876.18 | 36.74 | | Total Assets | 384,603.98 | 7.61 | - R&D investment grew rapidly, with **68.51 million yuan** invested this period, a **15.04% increase** year-on-year; total R&D personnel reached **537**, a **24.31% increase** year-on-year [59](index=59&type=chunk) [Operating Performance of Each Business Line During the Reporting Period](index=12&type=section&id=Operating%20Performance%20of%20Each%20Business%20Line%20During%20the%20Reporting%20Period) 3C precision metal components revenue grew 10.01%, diamond wire substrate revenue increased 58.49% with strong tungsten wire demand, and power tool components surged 145.69%, while automotive components slightly declined Revenue by Business Line (H1 2025) | Business Line | Revenue (10,000 yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | | 3C Precision Metal Components | 38,733.26 | 10.01 | | Automotive Precision Metal Components | 10,337.06 | -0.64 | | Photovoltaic Diamond Wire Substrate | 5,565.66 | 58.49 | | Power Tool Precision Metal Components | 12,067.60 | 145.69 | - 3C precision metal components business benefited from the global recovery of TWS headphones and wearable device markets, with strong ties to major customers and smooth new product introductions [54](index=54&type=chunk) - In the photovoltaic diamond wire substrate business, tungsten wire substrate sales revenue significantly increased; the company expanded into upstream raw materials (brass wire, alloy wire rod) and developed high-strength bridge cable wire rod products, expected to be a new profit growth point [56](index=56&type=chunk)[57](index=57&type=chunk) [Adhering to Core Technology Independent Innovation, Continuously Strengthening R&D Investment](index=13&type=section&id=Adhering%20to%20Core%20Technology%20Independent%20Innovation%2C%20Continuously%20Strengthening%20R%26D%20Investment) The company increased R&D investment by 15.04% and R&D personnel by 24.31%, securing numerous intellectual property rights, demonstrating its commitment to technological innovation R&D Investment and Personnel (H1 2025) | Indicator | Current Period | Year-on-Year Growth (%) | | :--- | :--- | :--- | | R&D Investment | 6,850.91 million yuan | 15.04 | | Total R&D Personnel | 537 persons | 24.31 | | Intellectual Property Applications | 291 items | - | | Intellectual Property Authorizations | 138 items | - | [Adhering to Talent Development Strategy, Promoting Craftsmanship, Injecting Momentum into Talent Development](index=13&type=section&id=Adhering%20to%20Talent%20Development%20Strategy%2C%20Promoting%20Craftsmanship%2C%20Injecting%20Momentum%20into%20Talent%20Development) The company prioritizes talent development by recruiting skilled personnel, establishing career paths, investing in training, and fostering a strong corporate culture to enhance team cohesion - The company continuously recruits excellent R&D and management personnel through internal referrals and external recruitment to strengthen its teams [60](index=60&type=chunk) - Employee career development paths are refined, with tailored development plans for different positions to meet employee needs to the greatest extent [60](index=60&type=chunk) - Increased investment in internal training and inter-departmental communication enhances overall employee quality; cultural and team-building activities strengthen team cohesion and foster a positive work environment [60](index=60&type=chunk) [Analysis of Core Competitiveness During the Reporting Period](index=13&type=section&id=Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) The company's core strengths lie in its extensive technical expertise, stable client relationships, and experienced management and R&D teams, supported by significant R&D investment and ongoing projects [Core Competitiveness Analysis](index=13&type=section&id=Core%20Competitiveness%20Analysis) The company's core strengths include mastery of various precision metal forming processes, long-term strategic partnerships with renowned clients, and an experienced management team with over 500 R&D professionals - Technical Reserves and Strong R&D Capabilities: The company masters various precision metal component forming processes, including fine wire forming, high-precision turning-milling composite forming, metal insert injection molding, metal powder injection molding, high-speed continuous stamping, tube 3D bending, micron-level metal wet drawing, and precision metal component assembly [61](index=61&type=chunk) - Customer Resources and Long-Term Stable Strategic Partnerships: The company has entered the supply chain systems of well-known industry enterprises such as Foxconn, Cheng Uei, Molex, Knowles, Webasto, Inalfa, Black & Decker, and Makita [63](index=63&type=chunk)[46](index=46&type=chunk) - Experienced Management Team and Professional Talent Pool: The company has over 500 professional technical R&D personnel, and founder Mr. Xu Huijun has over 40 years of experience in precision metal component processing [64](index=64&type=chunk) [Core Technologies and R&D Progress](index=14&type=section&id=Core%20Technologies%20and%20R%26D%20Progress) The company's core technology system comprises 13 key technologies, with no significant changes; it achieved substantial R&D results, including 291 new IP applications and 138 authorizations, with 30 ongoing projects - The company's core technology primarily includes 13 technologies, such as high-precision shaped spring forming, high-precision diamond micro-wire drawing, and metal spinning, with no changes in core technology or advancement during the reporting period [65](index=65&type=chunk)[66](index=66&type=chunk) Intellectual Property Acquired During the Reporting Period | | New Applications This Period (units) | New Authorizations This Period (units) | Cumulative Applications (units) | Cumulative Authorizations (units) | | :--- | :--- | :--- | :--- | :--- | | Invention Patents | 13 | 7 | 178 | 40 | | Utility Model Patents | 277 | 131 | 1114 | 588 | | Design Patents | 1 | 0 | 1 | 0 | | Total | 291 | 138 | 1293 | 628 | R&D Investment (Unit: Yuan) | Indicator | Current Period Amount | Prior Year Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 68,509,144.81 | 59,552,940.23 | 15.04 | | Total R&D Investment | 68,509,144.81 | 59,552,940.23 | 15.04 | | Total R&D Investment as % of Operating Revenue (%) | 9.72 | 10.76 | -1.04 | - The company has 30 ongoing R&D projects, including integrated debinding and sintering processes for metal powder injection molding, high-performance automotive component processing and assembly, R&D of high-carbon wire rods for diamond wire, and medical metal guide wire R&D, mostly in trial production or solution verification stages, aiming to enhance technology and expand application prospects [71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) [Risk Factors](index=21&type=section&id=Risk%20Factors) The company faces risks related to core competitiveness, operational challenges like capacity utilization and exchange rate fluctuations, industry downturns, and macroeconomic factors such as trade friction - Core Competitiveness Risk: Core technologies and key production processes rely on specialized talent, if core technical personnel are lost or technology is leaked, it will adversely affect production and operations [77](index=77&type=chunk) - Operational Risks: Capacity expansion may lead to underutilization and fixed asset impairment if orders or market conditions do not sustain; exchange rate fluctuations impact competitiveness and exchange gains/losses due to USD-denominated export revenue; high inventory impairment risk due to product customization, excess stocking, or negative gross margin orders [77](index=77&type=chunk)[78](index=78&type=chunk)[80](index=80&type=chunk) - Industry Risks: While applications are broad, the 3C industry is nearing saturation, automotive sales are declining, and power tools are slow; if market demand continues to decline, it will adversely affect company performance [81](index=81&type=chunk) - Macroeconomic Environment Risks: Sino-US trade friction may indirectly affect the operating conditions of the company's downstream customers, thereby impacting product sales [82](index=82&type=chunk) [Key Operating Performance During the Reporting Period](index=22&type=section&id=Key%20Operating%20Performance%20During%20the%20Reporting%20Period) Total operating revenue increased by 27.45% to 705 million yuan, but net profit attributable to shareholders and non-recurring net profit significantly decreased, with notable changes in financial statement items and new project investments - During the reporting period, the company achieved total operating revenue of **705.06 million yuan**, a **27.45% increase** year-on-year; net profit attributable to shareholders was **-17.74 million yuan**, a **138.73% decrease** year-on-year; net profit attributable to parent company shareholders after deducting non-recurring gains and losses was **-25.01 million yuan**, a **171.26% decrease** year-on-year [83](index=83&type=chunk) [Main Business Analysis](index=22&type=section&id=Main%20Business%20Analysis) Operating revenue increased by 27.45% due to new products and customers, while operating costs surged by 46.75% due to increased personnel and equipment for a new headphone project, impacting profitability Financial Statement Item Change Analysis (Unit: Yuan) | Item | Current Period Amount | Prior Year Period Amount | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 705,058,631.62 | 553,215,144.93 | 27.45 | | Operating Cost | 578,831,183.81 | 394,425,409.47 | 46.75 | | Selling Expenses | 10,708,833.36 | 9,781,678.70 | 9.48 | | Administrative Expenses | 49,980,381.21 | 37,195,941.75 | 34.37 | | Financial Expenses | 12,304,713.21 | 12,247,261.95 | 0.47 | | R&D Expenses | 68,509,144.81 | 59,552,940.23 | 15.04 | | Net Cash Flow from Operating Activities | 108,761,768.05 | 79,541,707.44 | 36.74 | | Net Cash Flow from Investing Activities | -239,345,510.69 | -148,719,374.71 | Not applicable | | Net Cash Flow from Financing Activities | 158,881,177.64 | 52,144,123.69 | 204.70 | - Reason for change in operating revenue: Good development of new products and customers, continuous growth in order volume [86](index=86&type=chunk) - Reason for change in operating cost: To support a new headphone project for a major North American customer, the company hired a large number of production personnel and purchased equipment, leading to increased fixed assets, depreciation and amortization, and labor costs [86](index=86&type=chunk) [Analysis of Assets and Liabilities](index=23&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) Significant increases were observed in financial assets, receivables financing, deferred tax assets, short-term borrowings, and capital reserves, while other non-current assets, contract liabilities, and long-term borrowings decreased, reflecting changes in investment, financing, and operational activities Asset and Liability Status Changes (Unit: Yuan) | Item Name | Current Period End Amount | Current Period End % of Total Assets | Prior Year End Amount | Prior Year End % of Total Assets | Current Period End vs. Prior Year End Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 152,618,202.10 | 3.97 | 102,732,436.38 | 2.87 | 48.56 | Primarily due to increased wealth management funds | | Notes Receivable | 28,249,689.87 | 0.73 | 50,210,973.38 | 1.40 | -43.74 | Primarily due to reclassification of notes receivable with good bank credit to receivables financing | | Receivables Financing | 27,238,085.50 | 0.71 | 9,521,370.13 | 0.27 | 186.07 | Primarily due to reclassification of notes receivable with good bank credit to receivables financing | | Other Current Assets | 94,918,252.73 | 2.47 | 67,960,394.39 | 1.90 | 39.67 | Primarily due to increased deductible input VAT from long-term asset investments | | Deferred Income Tax Assets | 143,721,260.49 | 3.74 | 94,388,890.52 | 2.64 | 52.27 | Primarily due to increased deductible losses | | Other Non-Current Assets | 8,547,733.12 | 0.22 | 30,148,983.42 | 0.84 | -71.65 | Primarily due to decreased prepayments for equipment | | Short-Term Borrowings | 487,487,800.54 | 12.68 | 330,039,691.04 | 9.23 | 47.71 | Primarily due to increased borrowings for operational turnover | | Notes Payable | 134,280,805.55 | 3.49 | 78,158,984.88 | 2.19 | 71.80 | Primarily due to increased use of notes for supplier payments this period | | Contract Liabilities | 503,025.53 | 0.01 | 1,810,204.28 | 0.05 | -72.21 | Primarily due to decreased advance receipts for goods | | Employee Benefits Payable | 49,607,653.94 | 1.29 | 30,476,755.62 | 0.85 | 62.77 | Primarily due to company expansion and increased personnel | | Other Payables | 101,054,164.56 | 2.63 | 2,025,487.02 | 0.06 | 4889.13 | Primarily due to new shareholder loans | | Other Current Liabilities | 27,027,884.84 | 0.70 | 40,167,835.68 | 1.12 | -32.71 | Primarily due to decreased un-derecognized notes receivable | | Long-Term Borrowings | 44,541,321.75 | 1.16 | 111,541,321.75 | 3.12 | -60.07 | Primarily due to repayment of bank loans this period | | Bonds Payable | 411,184,647.39 | 10.69 | 684,857,200.51 | 19.16 | -39.96 | Primarily due to conversion of bonds into shares this period | | Lease Liabilities | 389,166.69 | 0.01 | 1,344,065.27 | 0.04 | -71.05 | Primarily due to lease payments made this period | | Other Equity Instruments | 27,166,198.44 | 0.71 | 44,416,222.28 | 1.24 | -38.84 | Primarily due to conversion of bonds into shares this period | | Capital Reserve | 1,075,519,660.44 | 27.96 | 814,280,473.62 | 22.78 | 32.08 | Primarily due to conversion of bonds into shares this period | | Treasury Stock | 0 | 0 | 37,478,490.92 | 1.05 | -100 | Primarily due to cancellation of treasury stock this period | [Analysis of Investment Status](index=24&type=section&id=Analysis%20of%20Investment%20Status) The company is investing 1.5 billion yuan in Nantong for precision metal components and diamond wire projects to boost capacity, and 1 billion yuan in Suzhou for a high-end precision metal components R&D and production base, focusing on humanoid robot parts - The company's ongoing projects in Nantong include "Nantong Precision Metal Component Manufacturing Project" and "Diamond Wire Substrate and Solar Photovoltaic Printing Screen Project," with a total investment of **1.5 billion yuan**, aimed at increasing production capacity [91](index=91&type=chunk) - The company established a wholly-owned subsidiary, Suzhou Freewon, investing **1 billion yuan** to build a "High-End Precision Metal Component R&D and Production Base Project" as the main entity for manufacturing humanoid robot components [92](index=92&type=chunk) [Analysis of Major Holding and Participating Companies](index=25&type=section&id=Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) This section presents financial information for key subsidiaries, Strong Core Technology and Freewon Nantong, both reporting net losses during the period, primarily engaged in diamond wire substrate and precision component manufacturing, respectively Key Subsidiary Financial Information (Unit: 10,000 yuan) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Strong Core Technology | Subsidiary | R&D and manufacturing of diamond wire substrate | 8,500 | 61,332.49 | 41,921.00 | 5,571.29 | -1,014.17 | -799.14 | | Freewon Nantong | Subsidiary | Precision components | 10,000 | 91,034.95 | 5,191.91 | 5,733.97 | -4,246.43 | -3,185.72 | [Other Disclosures](index=25&type=section&id=Other%20Disclosures) Leveraging its precision metal manufacturing expertise, the company is expanding into humanoid robot components, successfully developing micro planetary roller screws and delivering various metal parts, generating approximately one million yuan in revenue - The company leverages its precision metal manufacturing technology and R&D capabilities to expand into the humanoid robot industry, focusing on overcoming core technical bottlenecks such as high precision, long life, and low noise in micro screws [94](index=94&type=chunk) - Successfully developed micro planetary roller screws in specifications such as **9.0mm, 6.5mm, and 5.0mm** nut diameters, and has sent samples to **5 leading T1 customers** [94](index=94&type=chunk) - In addition to micro planetary roller screws, the company has begun shipping other metal components for robots, including reducer parts (limit sleeves), joint module parts (joint covers, driver brackets, finger joint assemblies, linear joint main housings), and high-precision wave springs, achieving approximately **one million yuan** in revenue to date [94](index=94&type=chunk) - The company possesses mature MIM (titanium alloy and aluminum alloy) production capacity and processes, which can be widely applied in key components of humanoid robots such as joints, sensors, and micro gears, showing promising development prospects [95](index=95&type=chunk)[96](index=96&type=chunk) [Section IV Corporate Governance, Environment and Society](index=27&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%20and%20Society) This section covers changes in the company's governance structure, including board and senior management personnel, profit distribution plans, and the impact of equity incentive plans [Changes in Company Directors, Senior Management, and Core Technical Personnel](index=27&type=section&id=Changes%20in%20Company%20Directors%2C%20Senior%20Management%2C%20and%20Core%20Technical%20Personnel) During the reporting period, the company underwent board re-election, with You Dongcha resigning as director and Chen Xiuping elected as employee representative director; Wang Zeng resigned as deputy general manager, and Luo Hongzhen was appointed Changes in Directors and Senior Management | Name | Position Held | Change | | :--- | :--- | :--- | | You Dongcha | Director | Resigned | | Chen Xiuping | Employee Representative Director | Elected | | Wang Zeng | Deputy General Manager | Resigned | | Luo Hongzhen | Deputy General Manager | Appointed | - The company convened a shareholders' meeting and an employee representative meeting on July 16, 2025, electing the fourth board of directors and appointing senior management and securities affairs representatives [99](index=99&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=27&type=section&id=Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The board of directors approved "no" profit distribution or capital reserve conversion plan for the current reporting period - Profit distribution plan or capital reserve conversion plan for this reporting period: None [100](index=100&type=chunk) [Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=27&type=section&id=Status%20and%20Impact%20of%20Company%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) On January 16, 2025, the company granted 4.5 million restricted shares to 89 incentive recipients at 8.00 yuan/share; concurrently, the third vesting period of the 2022 restricted stock incentive plan was canceled due to unmet performance targets - On January 16, 2025, the company granted **4.5 million** restricted shares to **89 incentive recipients** for the first time, at a grant price of **8.00 yuan/share** [101](index=101&type=chunk) - The vesting conditions for the third vesting period of the 2022 restricted stock incentive plan's initial and reserved grants were not met, and all granted but unvested restricted shares were canceled and invalidated [136](index=136&type=chunk) Restricted Stock Grant Status for Directors, Senior Management, and Core Technical Personnel (Unit: 10,000 shares) | Name | Position | Restricted Shares Granted at Beginning of Period | New Restricted Shares Granted This Period | Vesting Quantity | Vested Quantity | Restricted Shares Granted at End of Period | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | You Dongcha | Board Secretary | 0 | 7.50 | 0 | 0 | 7.50 | | Wang Zeng (Resigned) | Deputy General Manager | 0 | 15.00 | 0 | 0 | 15.00 | | He Yuliang | Deputy General Manager | 0 | 15.00 | 0 | 0 | 15.00 | | Chen Jun | Financial Controller | 0 | 7.50 | 0 | 0 | 7.50 | | Huang Yili | Core Technical Personnel | 0.7854 | 7.50 | 0 | 0 | 7.50 | | Xu Zhongping | Core Technical Personnel | 0.9894 | 6.00 | 0 | 0 | 6.00 | | Total | / | 1.7748 | 58.50 | 0 | 0 | 58.50 | [Section V Important Matters](index=29&type=section&id=Section%20V%20Important%20Matters) This section details the fulfillment of commitments, audit status, integrity of the company and its controlling shareholders, significant related party transactions, and the progress of raised funds utilization [Fulfillment of Commitments](index=29&type=section&id=Fulfillment%20of%20Commitments) The company's actual controllers, directors, senior management, core technical personnel, and controlling shareholders have strictly fulfilled all commitments, including share lock-ups, information disclosure, share repurchase, and avoiding competition - Actual controllers, directors, senior management, and core technical personnel Xu Huijun, Hong Shuijin, Xu Yazhu, Huang Yili, Xu Zhongping, Wang Zeng (resigned), Chen Jun, Zheng Qiuying (resigned) have all strictly fulfilled their share lock-up commitments [105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) - The company, its controlling shareholder, and actual controllers committed that the prospectus and other information disclosure materials contain no false records, misleading statements, or major omissions, and pledged to compensate investors or repurchase shares as legally required; all commitments were strictly fulfilled during the reporting period [107](index=107&type=chunk)[108](index=108&type=chunk) - Controlling shareholder WINWIN and actual controllers Xu Huijun, Hong Shuijin, Xu Yazhu committed to avoid horizontal competition and regulate related party transactions; all commitments were strictly fulfilled during the reporting period [109](index=109&type=chunk)[110](index=110&type=chunk) [Semi-Annual Report Audit Status](index=35&type=section&id=Semi-Annual%20Report%20Audit%20Status) This semi-annual report has not been audited - This semi-annual report has not been audited [112](index=112&type=chunk) [Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period](index=35&type=section&id=Explanation%20of%20the%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller%20During%20the%20Reporting%20Period) During the reporting period, the company, its controlling shareholder, and actual controllers demonstrated integrity, diligently fulfilling duties and complying with regulations, with no instances of unfulfilled judgments or overdue debts - During the reporting period, the company and its controlling shareholder and actual controllers diligently fulfilled their duties in accordance with relevant laws and regulations, including the "Company Law," "Articles of Association," and "Shanghai Stock Exchange STAR Market Stock Listing Rules," acting with integrity and without any instances of unfulfilled court judgments or significant overdue debts [112](index=112&type=chunk) [Significant Related Party Transactions](index=35&type=section&id=Significant%20Related%20Party%20Transactions) After completing a partial stock inquiry transfer, the company's controlling shareholder, WINWIN, provided approximately 203 million yuan in interest-free financial assistance to the company, with a validity period of at least one year - The company's controlling shareholder, WINWIN, after completing the inquiry transfer of some of its shares, provided all net proceeds (after tax) as interest-free financial assistance to the company, with a validity period of no less than one year [115](index=115&type=chunk) - WINWIN received **228 million yuan** from the inquiry transfer on May 30, 2025; after deducting relevant taxes, the remaining funds, approximately **203 million yuan**, have been fully lent to the company [115](index=115&type=chunk) [Explanation of Progress in Use of Raised Funds](index=37&type=section&id=Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) The company's convertible bond proceeds totaled 700 million yuan (net 690 million yuan), with 504 million yuan invested to date (73.12% progress); 122 million yuan was invested this year, and 108 million yuan of idle funds are managed as cash Overall Use of Raised Funds (Unit: 10,000 yuan) | Source of Raised Funds | Total Raised Funds | Net Raised Funds | Total Committed Investment of Raised Funds | Cumulative Investment of Raised Funds as of Reporting Period End | Cumulative Investment Progress of Raised Funds as of Reporting Period End (%) | Amount Invested This Year | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Issuance of Convertible Bonds | 70,000.00 | 69,004.80 | 69,004.80 | 50,457.46 | 73.12 | 12,203.98 | Detailed Use of Raised Investment Projects (Unit: 10,000 yuan) | Project Name | Planned Investment Amount of Raised Funds | Amount Invested This Period | Cumulative Investment Amount as of Reporting Period End | Investment Progress as of Reporting Period End (%) | Date Project Reaches Intended Usable State | | :--- | :--- | :--- | :--- | :--- | :--- | | Nantong Precision Metal Component Intelligent Manufacturing Project | 69,004.80 | 12,203.98 | 50,457.46 | 73.12 | June 2026 | - The company manages idle raised funds as cash, with a board-approved limit of **500 million yuan**; the cash management balance at the end of the reporting period was **108 million yuan**, within the authorized limit [121](index=121&type=chunk)[122](index=122&type=chunk) [Section VI Share Changes and Shareholder Information](index=40&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital, including share cancellations and convertible bond conversions, as well as the shareholder structure and holdings of key personnel [Changes in Share Capital](index=40&type=section&id=Changes%20in%20Share%20Capital) During the reporting period, the company's share capital changed due to the cancellation of 2 million repurchased shares and the conversion of 18.10 million "Freewon Convertible Bonds" into shares, increasing total shares to 259.27 million Share Change Table (Unit: shares) | | Quantity Before This Change | Proportion Before This Change (%) | Increase/Decrease in This Change (+,-) Subtotal | Quantity After This Change | Proportion After This Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 0 | 0 | 0 | 0 | 0 | | II. Unrestricted Tradable Shares | 243,164,188 | 100.00 | 16,104,849 | 259,269,037 | 100.00 | | III. Total Shares | 243,164,188 | 100.00 | 16,104,849 | 259,269,037 | 100.00 | - On January 16, 2025, the company canceled **2,000,000 shares**, accounting for **0.79%** of the total share capital before cancellation [127](index=127&type=chunk) - From January 1, 2025, to June 30, 2025, "Freewon Convertible Bonds" converted into **18,104,849 shares**, increasing unrestricted tradable shares by **18,104,849 shares** [127](index=127&type=chunk) [Shareholder Information](index=41&type=section&id=Shareholder%20Information) As of the end of the reporting period, the company had 8,872 common shareholders, with WINWIN OVERSEAS GROUP LIMITED being the largest shareholder at 40.02% Total Number of Shareholders | Indicator | Quantity | | :--- | :--- | | Total number of common shareholders at the end of the reporting period (households) | 8,872 | Top Ten Shareholders' Shareholding (Unit: shares) | Shareholder Name | Change During Reporting Period | Shares Held at Period End | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | WINWIN OVERSEAS GROUP LIMITED | -12,970,000 | 103,760,407 | 40.02 | Overseas Legal Person | | Chen Xianggang | -350,000 | 6,950,000 | 2.68 | Domestic Natural Person | | Chen Haihua | 5,508,889 | 5,508,889 | 2.12 | Domestic Natural Person | | Zhang Jianfei | 3,911,099 | 3,911,099 | 1.51 | Domestic Natural Person | | China Construction Bank Corporation - Guoshou Anbao Smart Life Stock Fund | 150,000 | 3,186,864 | 1.23 | Other | | Xu Guoxin | 2,969,358 | 2,969,358 | 1.15 | Domestic Natural Person | | Zhang Fan | 2,916,530 | 2,916,530 | 1.12 | Domestic Natural Person | | Guangfa Bank Co., Ltd. - Guotai Juxin Value Advantage Flexible Allocation Mixed Fund | 2,780,000 | 2,780,000 | 1.07 | Other | | Wang Zhiyang | -450,000 | 2,159,239 | 0.83 | Overseas Natural Person | | Gong Xiao | 2,041,962 | 2,041,962 | 0.79 | Domestic Natural Person | [Information on Directors, Senior Management, and Core Technical Personnel](index=42&type=section&id=Information%20on%20Directors%2C%20Senior%20Management%2C%20and%20Core%20Technical%20Personnel) Core technical personnel Xu Zhongping reduced holdings due to market trading; controlling shareholder WINWIN reduced holdings by 5.00% via inquiry transfer; Luo Hongzhen was granted 150,000 restricted shares and appointed deputy general manager Changes in Shareholdings of Directors, Senior Management, and Core Technical Personnel (Unit: shares) | Name | Position | Shares Held at Beginning of Period | Shares Held at End of Period | Change in Shares During Reporting Period | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Xu Zhongping | Core Technical Personnel | 15,683 | 12,322 | -3,361.00 | Secondary market trading | - The company's controlling shareholder, WINWIN, reduced its holdings by **12,970,000** ordinary RMB shares, representing **5.00%** of the company's total share capital, through an inquiry transfer on May 29, 2025 [135](index=135&type=chunk) - On January 16, 2025, the company granted **150,000** Class II restricted shares to Mr. Luo Hongzhen as part of the initial grant to incentive recipients; on July 16, 2025, Mr. Luo Hongzhen was appointed as the company's Deputy General Manager [137](index=137&type=chunk) [Section VII Bond-Related Information](index=45&type=section&id=Section%20VII%20Bond-Related%20Information) This section provides details on the company's convertible bonds, including issuance, trading, conversion status, credit ratings, and the decision not to exercise early redemption despite triggering conditions [Convertible Corporate Bonds](index=45&type=section&id=Convertible%20Corporate%20Bonds) The company issued 700 million yuan in "Freewon Convertible Bonds" on August 14, 2023, with 18.11 million shares converted to date; despite triggering a conditional redemption clause, the company decided not to exercise early redemption - On August 14, 2023, the company issued **7 million** convertible corporate bonds, raising **700 million yuan**, with a six-year term; the bond is abbreviated as "Freewon Convertible Bond" and has code "118043" [141](index=141&type=chunk) Freewon Convertible Bond Holder and Change Status | Indicator | Value | | :--- | :--- | | Number of convertible bond holders at period end | 3,567 | | Convertible bond balance before this change (Yuan) | 699,991,000 | | Convertible bond conversion in this change (Yuan) | 18,104,849 | | Convertible bond balance after this change (Yuan) | 428,134,000 | | Convertible bond conversion amount during reporting period (Yuan) | 271,857,000 | | Number of shares converted during reporting period (shares) | 18,104,849 | | Cumulative number of shares converted (shares) | 18,105,442 | | Cumulative number of shares converted as % of total shares issued before conversion (%) | 10.39 | | Unconverted bond amount (Yuan) | 428,134,000 | | Unconverted bonds as % of total bonds issued (%) | 61.16 | Historical Conversion Price Adjustments (Unit: Yuan/share) | Conversion Price Adjustment Date | Adjusted Conversion Price | | :--- | :--- | | February 5, 2024 | 21.27 | | June 6, 2024 | 15.03 | | March 7, 2025 | 15.00 | | June 3, 2025 | 14.90 | | Latest conversion price as of the end of this reporting period | 14.90 | - The company's main credit rating and "Freewon Convertible Bond" credit rating are both "**AA-**", with a "**stable**" outlook [148](index=148&type=chunk) - Although "Freewon Convertible Bond" triggered the conditional redemption clause, the company's board of directors decided not to exercise the early redemption right, and will not exercise it again if triggered within the next six months (March 5, 2025, to September 4, 2025) [149](index=149&type=chunk)[150](index=150&type=chunk) [Section VIII Financial Report](index=48&type=section&id=Section%20VIII%20Financial%20Report) This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed accounting policies and notes [Audit Report](index=48&type=section&id=Audit%20Report) This semi-annual report has not been audited - This semi-annual report has not been audited [152](index=152&type=chunk) [Financial Statements](index=48&type=section&id=Financial%20Statements) This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity for the first half of 2025 - The consolidated balance sheet shows that as of June 30, 2025, the company's total assets were **3.846 billion yuan**, and net assets attributable to shareholders were **1.803 billion yuan** [153](index=153&type=chunk)[155](index=155&type=chunk) - The consolidated income statement shows that for January-June 2025, the company's total operating revenue was **705.06 million yuan**, net profit was **-19.15 million yuan**, and net profit attributable to parent company shareholders was **-17.74 million yuan** [161](index=161&type=chunk)[163](index=163&type=chunk) - The consolidated cash flow statement shows that for January-June 2025, net cash flow from operating activities was **108.76 million yuan**, net cash flow from investing activities was **-239.35 million yuan**, and net cash flow from financing activities was **158.88 million yuan** [169](index=169&type=chunk) [Company Basic Information](index=68&type=section&id=Company%20Basic%20Information) Freewon Precision Mechanical (China) Co., Ltd. was established on June 30, 2016, listed on the Shanghai Stock Exchange on December 23, 2020, with a registered capital of 259.27 million yuan, primarily engaged in the design, manufacturing, and sales of new electronic components and precision parts - The company, formerly Freewon Precision Mechanical (China) Co., Ltd., was restructured on June 30, 2016, and listed on the Shanghai Stock Exchange on December 23, 2020 [184](index=184&type=chunk) - As of June 30, 2025, the company's registered capital was **RMB 259,269,037.00**, and its total share capital was **259,269,037 shares** [184](index=184&type=chunk) - The company's main business includes the design, manufacturing, and sales of new electronic components, springs, other precision general components, precision stamping dies, precision cavity molds, standard mold parts, precision metal structural parts, and automotive components, belonging to the general equipment manufacturing industry [185](index=185&type=chunk) [Basis of Financial Statement Preparation](index=68&type=section&id=Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared on a going concern basis, with no significant doubts about its ability to continue as a going concern for the next 12 months - The company's financial statements are prepared on a going concern basis [186](index=186&type=chunk) - There are no matters or circumstances that cause significant doubt about the company's ability to continue as a going concern for the 12 months from the end of the reporting period [187](index=187&type=chunk) [Significant Accounting Policies and Estimates](index=68&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's significant accounting policies and estimates for financial statement preparation, covering business combinations, financial instruments, receivables, inventory, fixed assets, revenue recognition, and government grants - The company's financial statements comply with enterprise accounting standards, accurately and completely reflecting its financial position, operating results, and cash flows [190](index=190&type=chunk) - Financial instruments are classified as financial assets and liabilities measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss [207](index=207&type=chunk) - Revenue recognition principles: Domestic sales are recognized upon customer acceptance and reconciliation; export sales are recognized upon product outbound, customs declaration, and customer acceptance, or upon reconciliation of actual goods received [283](index=283&type=chunk)[284](index=284&type=chunk) - Government grants are classified as asset-related or income-related and are generally recognized and measured when actually received [287](index=287&type=chunk)[288](index=288&type=chunk) [Taxation](index=93&type=section&id=Taxation) This section outlines the company's main tax types and rates, including VAT, urban maintenance and construction tax, and corporate income tax, along with various tax incentives for high-tech enterprises and advanced manufacturing Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Value-added amount generated during sales of goods or provision of taxable services | 13%, 6%, etc.; export tax refund rates 13%, 11%, 10%, 9%, and 5%, etc. | | Urban Maintenance and Construction Tax | Amount of turnover tax payable | 5% | | Corporate Income Tax | Taxable income | 15%, 25%, 8.25%, 20% | | Property Tax | Assessed at 1.2% of the original value of the property after a 30% deduction; assessed at 12% of rental income for rental properties | 1.2%, 12% | | Education Surcharge | Amount of turnover tax payable | 3% | | Local Education Surcharge | Amount of turnover tax payable | 2% | - The company and its subsidiary Strong Core Technology passed the high-tech enterprise re-certification, and are subject to a **15%** corporate income tax rate for the current year [309](index=309&type=chunk)[310](index=310&type=chunk) - The company and its subsidiary Strong Core Technology enjoy R&D expense super deduction and VAT additional deduction policies for advanced manufacturing enterprises [310](index=310&type=chunk) - Freewon Hong Kong applies a preferential tax rate of **8.25%** for the first **HKD 2 million** of profits; subsidiaries Fuxinyuanlin and Freewon Suzhou calculate taxable income at **25%** and pay corporate income tax at a **20%** rate [311](index=311&type=chunk) [Notes to Consolidated Financial Statement Items](index=94&type=section&id=Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes for each consolidated financial statement item, explaining their composition, changes, and accounting treatment, covering assets, liabilities, equity, income, expenses, and cash flows - Cash and bank balances at period-end were **421 million yuan**, of which **1.87 million yuan** was held overseas [312](index=312&type=chunk) - Accounts receivable book balance at period-end was **500 million yuan**, with bad debt provisions of **26.63 million yuan** [325](index=325&type=chunk)[326](index=326&type=chunk) - Inventory book value at period-end was **463 million yuan**, with inventory impairment provisions and contract performance cost impairment provisions totaling **62.53 million yuan** [358](index=358&type=chunk)[360](index=360&type=chunk) - Fixed assets book value at period-end was **1.486 billion yuan**, including **521 million yuan** for buildings and structures, and **922 million yuan** for machinery and equipment [371](index=371&type=chunk) - Short-term borrowings at period-end were **487 million yuan**, a **47.71% increase** from the beginning of the period, primarily due to increased borrowings for operational turnover [399](index=399&type=chunk)[400](index=400&type=chunk) - Operating revenue for the current period was **705 million yuan**, operating cost was **578 million yuan**, with main business revenue accounting for **95.48%** of total revenue [440](index=440&type=chunk) [R&D Expenses](index=134&type=section&id=R%26D%20Expenses) This section details the company's R&D expenditures for the reporting period, totaling 68.51 million yuan, all expensed, primarily comprising employee compensation, direct materials, and depreciation R&D Expenses by Nature of Expense (Unit: Yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Employee Compensation | 48,659,644.11 | 39,380,919.88 | | Direct Materials | 12,879,526.80 | 12,764,035.66 | | Depreciation and Amortization | 4,665,531.56 | 5,284,139.88 | | Other | 2,304,442.34 | 2,123,844.81 | | Total | 68,509,144.81 | 59,552,940.23 | | Of which: Expensed R&D Investment | 68,509,144.81 | 59,552,940.23 | [Changes in Consolidation Scope](index=135&type=section&id=Changes%20in%20Consolidation%20Scope) During the reporting period, the company established a wholly-owned subsidiary, Suzhou Freewon, with a registered capital of 300 million yuan, which has been included in the consolidated financial statements since its inception - In February 2025, the company established Suzhou Freewon with a registered capital of **RMB 300 million**, with the company subscribing **100%** of the capital; it has been included in the consolidated financial statements since its establishment due to the company's substantial control [481](index=481&type=chunk) - As of June 30, 2025, the company's paid-in capital was **RMB 30 million**; Suzhou Freewon's net assets were **RMB 29,902,036.47**, and its net profit from establishment to period-end was **RMB -97,963.53** [481](index=481&type=chunk) [Interests in Other Entities](index=136&type=section&id=Interests%20in%20Other%20Entities) This section outlines the company's interests in subsidiaries, including Strong Core Technology, a significant non-wholly-owned subsidiary with a 17.65% minority interest and a loss of 1.41 million yuan attributable to minority shareholders Composition of Enterprise Group (Unit: 10,000 yuan) | Subsidiary Name | Main Operating Location | Registered Capital | Business Nature | Shareholding Ratio (%) Direct | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | | Strong Core Technology | Nantong, Jiangsu | 8,500.00 | Manufacturing | 82.35 | Non-same control acquisition | | Freewon Nantong | Nantong, Jiangsu | 10,000.00 | Manufacturing | 100 | Establishment | | Freewon Hong Kong | Hong Kong, China | HK$10.00 | International trade and component trade | 100 | Establishment | | Fuxinyuanlin | Kunshan, Jiangsu | 1,000.00 | Agriculture | 100 | Establishment | | Freewon Suzhou | Kunshan, Jiangsu | 30,000.00 | Manufacturing | 100 | Establishment | Important Non-Wholly-Owned Subsidiaries (Unit: 10,000 yuan) | Subsidiary Name | Minority Shareholding Ratio (%) | Net Profit Attributable to Minority Shareholders This Period | Dividends Declared to Minority Shareholders This Period | Minority Interest Balance at Period End | | :--- | :--- | :--- | :--- | :--- | | Strong Core Technology | 17.65 | -141.05 | - | 5,778.41 | Key Financial Information of Important Non-Wholly-Owned Subsidiary (Strong Core Technology, Unit: 10,000 yuan) | Indicator | Period-End Balance | Period-Beginning Balance | | :--- | :--- | :--- | | Current Assets | 21,454.58 | 17,785.69 | | Non-Current Assets | 39,877.91 | 41,208.54 | | Total Assets | 61,332.49 | 58,994.23 | | Current Liabilities | 12,145.69 | 10,661.82 | | Non-Current Liabilities | 7,265.80 | 10,729.50 | | Total Liabilities | 19,411.49 | 21,391.32 | | Operating Revenue | 5,571.29 | 3,536.10 | | Net Profit | -799.14 | -707.80 | | Total Comprehensive Income | -799.14 | -707.80 | | Net Cash Flow from Operating Activities | -2,149.36 | -1,444.75 | [Government Grants](index=139&type=section&id=Government%20Grants) This section discloses the company's government grants for the reporting period, including asset-related and income-related grants, with a total of 5.49 million yuan recognized in current period profit or loss Government Grants Recognized in Current Period Profit or Loss (Unit: Yuan) | Type | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Asset-Related | 287,069.05 | 252,647.61 | | Income-Related | 5,206,626.38 | 7,667,919.07 | | Total | 5,493,695.43 | 7,920,566.68 | Liability Items Involving Government Grants (Unit: Yuan) | Financial Statement Item | Beginning Balance | New Grants This Period | Transferred to Other Income This Period | Other Changes This Period | Ending Balance | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 14,947,402.26 | - | 287,069.05 | - | 14,660,333.21 | Asset-Related | | Total | 14,947,402.26 | - | 287,069.05 | - | 14,660,333.21 | / | [Risks Related to Financial Instruments](index=140&type=section&id=Risks%20Related%20to%20Financial%20Instruments) This section details the company's financial instrument risk management, particularly regarding the transfer of financial assets, where bill endorsements are either derecognized or not, depending on the accepting bank's credit rating and recourse rights Classification of Financial Asset Transfer Methods (Unit: Yuan) | Transfer Method | Nature of Transferred Financial Assets | Amount of Transferred Financial Assets | Derecognition Status | Basis for Derecognition Judgment | | :--- | :--- | :--- | :--- | :--- | | Bill Endorsement | Undue bank acceptance bills in receivables financing | 21,089,230.68 | Derecognized | The accepting bank is a highly-rated bank, with very low credit risk and payment delay risk, and major risks and rewards of bill ownership have been transferred | | Bill Endorsement | Undue bank acceptance bills in notes receivable | 27,003,046.95 | Not Derecognized | The accepting bank is not a highly-rated bank, and endorsed or discounted bills do not affect recourse rights, so credit risk and payment delay risk have not been transferred | | Total | / | 48,092,277.63 | / | / | Financial Assets Derecognized Due to Transfer (Unit: Yuan) | Item | Method of Financial Asset Transfer | Amount of Derecognized Financial Assets | Gain or Loss Related to Derecognition | | :--- | :--- | :--- | :--- | | Undue bank acceptance bills in receivables financing | Bill Endorsement | 21,089,230.68 | - | | Total | / | 21,089,230.68 | - | [Disclosure of Fair Value](index=141&type=section&id=Disclosure%20of%20Fair%20Value) This section discloses the fair value of the company's assets and liabilities measured at fair value, totaling 179 million yuan, primarily comprising trading financial assets and receivables financing, mostly measured using Level 2 valuation techniques Fair Value of Assets and Liabilities Measured at Fair Value at Period End (Unit: Yuan) | Item | Level 1 Fair Value Measurement | Level 2 Fair Value Measurement | Level 3 Fair Value Measurement | Total | | :--- | :--- | :--- | :--- | :--- | | I. Continuous Fair Value Measurement | | | | | | (I) Trading Financial Assets | - | 152,618,202.10 | - | 152,618,202.10 | | 1. Financial assets measured at fair value through profit or loss | - | 152,618,202.10 | - | 152,618,202.10 | | (1) Debt instrument investments | - | 152,618,202.10 | - | 152,618,202.10 | | (4) Receivables financing | - | 27,238,085.50 | - | 27,238,085.50 | | Total assets continuously measured at fair value | - | 179,856,287.60 | - | 179,856,287.60 | - The fair value of shares held by the company is determined by the closing price on the balance sheet date [499](index=499&type=chunk) - The fair value of bank wealth management products and bills receivable used for discounting or endorsement is determined using valuation techniques such as discounted cash flow models or market quotes for similar instruments [500](index=500&type=chunk) - The book value of financial assets and liabilities not measured at fair value (e.g., cash and bank balances, bills receivable, accounts receivable, short-term borrowings) differs minimally from their fair value [501](index=501&type=chunk) [Related Parties and Related Party Transactions](index=142&type=section&id=Related%20Parties%20and%20Related%20Party%20Transactions) This section discloses the company's related parties and transactions, with WINWIN OVERSEAS GROUP LIMITED as the controlling shareholder and Xu Huijun, Hong Shuijin, and Xu Yazhu as actual controllers; key management personnel compensation was 3.61 million yuan, and other payables include 100 million yuan borrowed from WINWIN Information on the Company's Parent Company (Unit: Yuan) | Parent Company Name | Registered Place | Business Nature | Registered Capital | Parent Company's Shareholding Ratio in the Company (%) | Parent Company's Voting Rights Ratio in the Company (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | WINWIN OVERSEAS GROUP LIMITED | British Virgin Islands | Investment | USD 50,000 | 40.02 | 40.02 | - The company's actual controllers are Xu Huijun, Hong Shuijin, and Xu Yazhu, who collectively indirectly hold **40.02%** of the company's shares through WINWIN [503](index=503&type=chunk) Key Management Personnel Compensation (Unit: 10,000 yuan) | Item | Current Period Amount | Prior Period Amount | | :--- | :--- | :--- | | Key Management Personnel Compensation | 360.59 | 290.81 | - Other payables include **100 million yuan** borrowed from controlling shareholder WINWIN [418](index=418&type=chunk) [Share-Based Payments](index=144&type=section&id=Share-Based%20Payments) This section details the company's share-based payment plans, including the grant of 4.5 million restricted shares to management and key personnel, resulting in a share-based payment expense of 7.92 million yuan Details of Equity Instruments (Unit: shares, Yuan) | Category of Grantee | Quantity Granted This Period | Amount Granted This Period | | :--- | :--- | :--- | | Management and Technical/Business Backbone | 4,500,000.00 | 7,917,501.81 | | Total | 4,500,000.00 | 7,917,501.81 | Share-Based Payment Expense This Period (Unit: Yuan) | Category of Grantee | Equity-Settled Share-Based Payment Expense | | :--- | :--- | | Management and Technical/Business Backbone | 7,917,501.81 | | Total | 7,917,501.81 | [Commitments and Contingencies](index=145&type=section&id=Commitments%20and%20Contingencies) As of the balance sheet date, the company has no significant commitments or contingencies requiring disclosure - As of the balance sheet date, the company has no significant contingencies requiring disclosure [515](index=515&type=chunk) [Events After the Balance Sheet Date](index=145&type=section&id=Events%20After%20the%20Balance%20Sheet%20Date) As of the report disclosure date, the company has no significant non-adjusting events, profit distribution, or sales returns after the balance sheet date requiring disclosure - As

[Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [Statement by the Board of Directors, Supervisory Board, and Senior Management](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, Supervisory Board, and senior management affirm the semi-annual report's truthfulness, accuracy, and completeness - The company's Board of Directors, Supervisory Board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[3](index=3&type=chunk) - All company directors attended the Board of Directors meeting[4](index=4&type=chunk) - Company head Sun Hanben, chief accountant Fan Xuepeng, and head of accounting department Miao Hua declared the financial report to be true, accurate, and complete[5](index=5&type=chunk) [This Semi-Annual Report is Unaudited](index=2&type=section&id=%E4%B8%89%E3%80%81%E6%9C%AC%E5%8D%8A%E5%B9%B4%E5%BA%A6%E6%8A%A5%E5%91%8A%E6%9C%AA%E7%BB%8F%E5%AE%A1%E8%AE%A1) This semi-annual report has not been audited - This semi-annual report has not been audited[5](index=5&type=chunk) [Profit Distribution Plan or Capital Reserve to Share Capital Increase Plan Approved by the Board of Directors for the Current Reporting Period](index=2&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%86%B3%E8%AE%AE%E9%80%9A%E8%BF%87%E7%9A%84%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E9%A2%84%E6%A1%88%E6%88%96%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E9%A2%84%E6%A1%88) The company proposes a **0.10 yuan** per share cash dividend, totaling **39.29 million yuan**, **89.32%** of 2025 semi-annual net profit attributable to shareholders - The company plans to distribute a cash dividend of **0.10 yuan** (tax inclusive) per share to all shareholders[6](index=6&type=chunk) - The total proposed cash dividend is **39,288,600 yuan** (tax inclusive), accounting for **89.32%** of the 2025 semi-annual net profit attributable to listed company shareholders[6](index=6&type=chunk) [Significant Risk Warning](index=2&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) No particularly significant risks substantially impacting operations were identified, but investors are advised to note the detailed risks disclosed - During the reporting period, there were no particularly significant risks that had a substantial impact on the company's production and operations[7](index=7&type=chunk) - The company has elaborated on potential risks in its production and operations within this report, urging investors to be aware of investment risks[7](index=7&type=chunk) [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, including company names, key subsidiaries, related parties, and industry organizations, for clear report understanding Common Term Definitions | Common Term | Definition | | :--- | :--- | | Company, the Company, Victall Railway | Qingdao Victall Railway Co.,Ltd | | Luomei Victall | Qingdao Luomei Victall New Material Manufacturing Co.,Ltd | | Keda Electric | Qingdao Keda Intelligent Electric Co.,Ltd | | Chengdu Changtong | Chengdu Victall Changtong Technology Co.,Ltd | | Tangshan Automobile | Victall Automotive Technology (Tangshan) Co.,Ltd | | Changzhou Automobile | Victall Automotive Technology (Changzhou) Co.,Ltd | | Danna Qingdao | DANA Victall Gangtong System (Qingdao) Co.,Ltd | | Victall USA | SMOOTH INC. USA | | Victall Canada | 9529-8329 Québec inc. | | Victall Investment | Qingdao Victall Equity Investment Co.,Ltd | | Ruize Investment | Tangshan Ruize Equity Investment Management Center (Limited Partnership) | | Ningbo Jiuying | Ningbo Meishan Bonded Port Area Jiuying Phase II New Energy Investment Partnership (Limited Partnership) | | China Railway Group | China National Railway Group Co.,Ltd | | CRRC | CRRC Corporation Limited | | Qingdao Sifang | CRRC Qingdao Sifang Locomotive & Rolling Stock Co.,Ltd | | Changchun Passenger Car or Changke | CRRC Changchun Railway Vehicles Co.,Ltd | | Tangshan Passenger Car or Tangche | CRRC Tangshan Co.,Ltd | | Alstom | Alstom Group (France) | | Siemens | Siemens AG (Germany) | | A-shares | RMB Ordinary Shares | | Reporting Period | January 1, 2025 to June 30, 2025 | [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 provides the company's basic registration details, including its Chinese name, abbreviation, English name, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Chinese Name | 青岛威奥轨道股份有限公司 | | Chinese Abbreviation | 威奥股份 | | English Name | Qingdao Victall Railway Co.,Ltd | | English Name Abbreviation | Victall | | Legal Representative | 孙汉本 | [Contact Person and 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 lists contact information for the Board Secretary and Securities Affairs Representative, including names, addresses, phone, fax, and email Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Zhao Tingting | No. 3 Xinghai Branch Road, Chengyang District, Qingdao | 0532-81107030 | 0532-81108300 | zhaotingting@victall.com | | Securities Affairs Representative | Wang Panpan | No. 3 Xinghai Branch Road, Chengyang District, Qingdao | 0532-81107030 | 0532-81108300 | wangpanpan@victall.com | [Brief Introduction to Changes in Basic Information](index=4&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) During the reporting period, the company's registered address remained unchanged, as did its office address, website, and email - During the reporting period, there were no changes to the company's registered address[17](index=17&type=chunk) Company Basic Information | Indicator | Content | | :--- | :--- | | Company Office Address | No. 3 Xinghai Branch Road, Chengyang District, Qingdao, Shandong Province | | Company Website | http://www.victall.com | | Email | zqtz@victall.com | [Brief Introduction to Changes in Information Disclosure and Document Custody Locations](index=5&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%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 designates specific newspapers and the SSE website for information disclosure, with reports available at its Securities Investment Department Information Disclosure Status | Information Disclosure Newspapers | Website Address for Semi-Annual Report Publication | Company's Semi-Annual Report Custody Location | | :--- | :--- | :--- | | China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily | http://www.sse.com.cn | Company Securities Investment Department | [Company Stock Overview](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) The company's A-shares are listed on the Shanghai Stock Exchange under the abbreviation 'Victall Railway' and stock code '605001' Company Stock Overview | Stock Type | Stock Exchange | Stock Abbreviation | Stock Code | Previous Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | A-shares | Shanghai Stock Exchange | 威奥股份 | 605001 | None | [Company's Key Accounting Data and Financial Indicators](index=5&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) Operating revenue and net profit grew significantly, while net cash flow from operating activities decreased during the reporting period Key Accounting Data (January-June 2025 vs. Same Period Last Year) | Indicator | Current Reporting Period (Jan-Jun) | Same Period Last Year | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 844,483,421.31 yuan | 591,291,168.39 yuan | 42.82 | | Total Profit | 55,396,905.09 yuan | 34,394,693.96 yuan | 61.06 | | Net Profit Attributable to Listed Company Shareholders | 43,986,865.22 yuan | 30,397,990.19 yuan | 44.70 | | Net Profit Attributable to Listed Company Shareholders Excluding Non-Recurring Gains and Losses | 39,479,250.99 yuan | 32,555,018.13 yuan | 21.27 | | Net Cash Flow from Operating Activities | 83,079,430.95 yuan | 148,412,844.15 yuan | -44.02 | Key Financial Indicators (January-June 2025 vs. Same Period Last Year) | Indicator | Current Reporting Period (Jan-Jun) | Same Period Last Year | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan／share) | 0.11 | 0.08 | 39.95 | | Basic Earnings Per Share Excluding Non-Recurring Gains and Losses (yuan／share) | 0.10 | 0.08 | 25.61 | | Weighted Average Return on Net Assets (%) | 1.61 | 1.10 | Increased by 0.51 percentage points | | Weighted Average Return on Net Assets Excluding Non-Recurring Gains and Losses (%) | 1.44 | 1.17 | Increased by 0.27 percentage points | - The increase in the company's operating performance was primarily due to increased sales in the current period[22](index=22&type=chunk) - The decrease in net cash flow from operating activities in the current period was mainly due to an increase in bill deposits paid[22](index=22&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=6&type=section&id=%E4%B9%9D%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) Total non-recurring gains and losses were **4.51 million yuan**, mainly from government grants, non-current asset disposal, and other non-operating items Non-Recurring Gains and Losses Items (Unit: yuan) | Non-Recurring Gains and Losses Item | Amount | | :--- | :--- | | Gains and losses from disposal of non-current assets | -364,946.55 | | Government grants recognized in current profit or loss | 5,201,957.68 | | Gains and losses arising from changes in fair value of financial assets and liabilities held by non-financial enterprises, and disposal of financial assets and liabilities, excluding effective hedge accounting related to normal business operations | 34,771.01 | | Other non-operating income and expenses apart from the above | -117,580.28 | | Other items that meet the definition of non-recurring gains and losses | 604,833.88 | | Less: Income tax impact | 845,672.27 | | Minority interest impact (after tax) | 5,749.24 | | **Total** | **4,507,614.23** | [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) [Explanation of the Company's Industry and Main Business Operations During the Reporting Period](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 specializes in R&D, production, sales, and service of rail transit vehicle supporting products, deeply involved in China's high-speed rail development, maintaining strong industry growth - The company primarily engages in the research, development, production, sales, and service of rail transit vehicle supporting products, providing modular products and components for high-speed trains, urban rail, and subway vehicles[27](index=27&type=chunk) - The company's main products include five categories: rail vehicle interior products, vacuum toilet systems, metal structural parts, modular products, and exterior structural parts, along with maintenance services[27](index=27&type=chunk) - The company is a core supplier to renowned high-speed train manufacturers both domestically and internationally, including CRRC, Siemens, and Alstom[27](index=27&type=chunk) - In the first half of 2025, national railway passenger traffic reached **2.24 billion person-times**, a **6.7% year-on-year increase**; national railway fixed asset investment completed **355.9 billion yuan**, up **5.5% year-on-year**; national EMU production was **1,058 vehicles**, a cumulative increase of **41.4%**[34](index=34&type=chunk)[35](index=35&type=chunk) [Company's Main Business, Products, and Uses](index=7&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E3%80%81%E4%B8%BB%E8%A6%81%E4%BA%A7%E5%93%81%E5%8F%8A%E7%94%A8%E9%80%94) The company focuses on R&D, production, sales, and service of rail transit vehicle supporting products, covering interiors, vacuum toilet systems, and metal structural parts, serving as a core supplier to high-speed train manufacturers - The company primarily engages in the research, development, production, sales, and service of rail transit vehicle supporting products, providing modular products and components for high-speed trains, urban rail, and subway vehicles[27](index=27&type=chunk) - Main products include five major categories: rail vehicle interior products, vacuum toilet systems, metal structural parts, modular products, and exterior structural parts[27](index=27&type=chunk) - The company has fully participated in the introduction, digestion, and re-innovation process of China's high-speed trains, supplying products for the “Fuxinghao” series of EMUs[28](index=28&type=chunk) [Company's Business Model](index=7&type=section&id=%EF%BC%88%E4%B8%8C%EF%BC%89%E5%85%AC%E5%8F%B8%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company uses a 'project-based' R&D model, with procurement and production driven by customer orders, and direct sales to domestic and international rail transit vehicle manufacturers - R&D and Design Model: The company's R&D center implements “project-based” management, maintaining a leading position in technological innovation through a combination of production, academia, and research[29](index=29&type=chunk)[30](index=30&type=chunk) - Procurement Model: Delivery plans are formulated based on orders, SAP system generates procurement plans, and the supplier management department is responsible for supplier development, auditing, and price negotiation[31](index=31&type=chunk) - Production Model: Adopts an order-oriented production model to meet the customized characteristics of multiple varieties, multiple batches, small quantities, short delivery times, and high reliability[32](index=32&type=chunk) - Sales Model: Obtains orders through direct sales by participating in customer tenders or competitive negotiations, with major customers being domestic and international rail transit vehicle manufacturers[33](index=33&type=chunk) [Industry Overview](index=8&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E5%85%AC%E5%8F%B8%E6%89%80%E5%88%86%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) Operating in the high-speed rail equipment sector, the company saw strong growth in H1 2025 with increased fixed asset investment and EMU production, driven by digitalization and sustainability - The company operates in the “C37 Railway, Ship, Aerospace, and Other Transportation Equipment Manufacturing” sector according to the CSRC's Industry Classification Guidelines for Listed Companies, and the “C3714 High-speed Rail Equipment and Parts Manufacturing Industry” according to the National Bureau of Statistics' Industry Classification for National Economy[34](index=34&type=chunk) - In the first half of 2025, national railway passenger traffic reached **2.24 billion person-times**, a **6.7% year-on-year increase**; national railway fixed asset investment completed **355.9 billion yuan**, up **5.5% year-on-year**[34](index=34&type=chunk)[35](index=35&type=chunk) - In the first half of 2025, national EMU production was **1,058 vehicles**, a cumulative increase of **41.4%**, reflecting strong railway passenger demand[35](index=35&type=chunk) - The rail transit industry is increasingly characterized by accelerated transformation towards digitalization, efficiency, environmental protection, and low carbon, with the introduction of AI diagnostic systems to enhance operational efficiency[35](index=35&type=chunk) [Discussion and Analysis of Operations](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) The company achieved growth in new orders and maintenance spare parts by focusing on rail transit, expanding markets, strengthening innovation, implementing quality control, and upgrading digital platforms, also entering the health business - The company focused on its core rail transit business, consolidated its domestic market advantages, actively expanded into overseas markets in Europe and America, achieving year-on-year growth in both new orders and maintenance spare parts orders[36](index=36&type=chunk) - The automotive business deeply explored existing cooperation potential, and the health business successfully launched innovative products, filling a market gap for small household integrated oxygen chambers[36](index=36&type=chunk) - Driven by innovation, the company actively participated in the R&D of CR450 intelligent EMUs, hydrogen-powered high-speed trains, and the Beijing-Xiong'an express line project, while completing a comprehensive upgrade of its PDM system[37](index=37&type=chunk) - Implemented full-process quality risk intelligent control, establishing a full-process quality tracking system and equipment monitoring system to proactively identify process risks[37](index=37&type=chunk) - Strengthened information security by completing the iteration of the enterprise-level file encryption system and integrating it with the PDM design platform; the PLM system was officially launched, steadily advancing the strategic transformation of the R&D digital platform[38](index=38&type=chunk)[39](index=39&type=chunk) [Analysis of Core Competencies During the Reporting Period](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 include comprehensive service, R&D, key products, customer resources, certifications, and a global service network, supporting its leading position in rail transit equipment - Comprehensive Supporting Service Capability Advantage: A rich product line covering almost all categories of rail transit vehicle interior supporting products, offering “one-stop” procurement and full lifecycle solutions[40](index=40&type=chunk) - Technical R&D Advantage: A national high-tech enterprise with multiple R&D platforms, including a national enterprise technology center, holding **501 valid patents** (including **57 invention patents**) as of the end of the reporting period[41](index=41&type=chunk) - Key Product Advantage: Covers serialized intelligent business class seats, toilet and water supply systems, integrated interior products for rail vehicles, and extends to CR450 models and oxygen-enriched health cabin products, featuring high integration and high added value[41](index=41&type=chunk) - Customer Resource Advantage: Established long-term stable cooperative relationships with major CRRC subsidiaries and internationally renowned manufacturers such as Siemens and Alstom[42](index=42&type=chunk) - Qualification Certification Advantage: Continuously maintains ISO14001 Environmental Management System, ISO45001 Occupational Health and Safety Management System, ISO/IEC17025:2017 Laboratory Accreditation, ISO9001:2015 Quality Management System, and ISO/22163 (International Railway Industry Standard) certifications[43](index=43&type=chunk) - Service Network Advantage: Built a comprehensive global service network, with over **20 service centers** domestically and service centers in Berlin, Krefeld, etc., overseas, providing one-stop service[43](index=43&type=chunk) [Key Operating Performance During the Reporting Period](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%90%A5%E6%83%85%E5%86%B5) Operating revenue grew **42.82%**, costs **56.71%**, financial expenses decreased **96.07%**, and R&D expenses grew **37.76%**, with significant asset-liability changes including increased monetary funds, accounts receivable, notes payable, and non-current liabilities due within one year Key Financial Statement Item Change Analysis Table (Unit: yuan) | Item | Current Period Amount | Same Period Last Year Amount | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 844,483,421.31 | 591,291,168.39 | 42.82 | Mainly due to increased sales in the current period | | Operating Costs | 616,411,821.71 | 393,336,585.48 | 56.71 | Mainly due to increased operating revenue in the current period, leading to a corresponding increase in operating costs | | Selling Expenses | 32,018,986.89 | 33,328,494.30 | -3.93 | Mainly due to product quality assurance fees being included in main business costs in the current period | | Administrative Expenses | 86,962,943.31 | 83,573,392.89 | 4.06 | Mainly due to increased depreciation from new equipment in the current period | | Financial Expenses | 1,527,133.86 | 38,832,160.41 | -96.07 | Mainly due to reduced exchange losses in the current period compared to the same period last year due to exchange rate fluctuations | | R&D Expenses | 52,747,315.63 | 38,290,095.77 | 37.76 | Mainly due to increased investment in R&D projects in the current period compared to the same period last year | | Net Cash Flow from Operating Activities | 83,079,430.95 | 148,412,844.15 | -44.02 | Increased payment of goods via acceptance bills in the current period, leading to a corresponding increase in bill deposits paid | | Net Cash Flow from Investing Activities | -54,157,870.00 | 105,367,999.32 | -151.40 | Mainly due to reduced wealth management products in the current period, and lower recovery of investment principal and investment income compared to the same period last year | | Net Cash Flow from Financing Activities | 120,856,230.20 | -164,681,936.76 | Not applicable | Mainly due to increased borrowings in the current period compared to the same period last year | - Overseas assets amounted to **188,527,827.45 yuan**, accounting for **3.65%** of total assets[52](index=52&type=chunk) Assets and Liabilities Status Change (Unit: yuan) | Item Name | Current Period End Amount | Proportion of Total Assets (%) | Previous Year End Amount | Proportion of Total Assets (%) | Change Percentage from Previous Year End (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 748,523,344.61 | 14.53 | 435,999,505.62 | 9.17 | 71.68 | | Trading Financial Assets | 1,052,156.74 | 0.02 | - | - | 100.00 | | Notes Receivable | 165,116,814.19 | 3.21 | 416,396,468.64 | 8.76 | -60.35 | | Accounts Receivable | 1,089,169,602.08 | 21.15 | 814,386,198.15 | 17.13 | 33.74 | | Financing for Receivables | 5,777,759.82 | 0.11 | 91,580.00 | 0.00 | 6,208.98 | | Prepayments | 41,567,817.95 | 0.81 | 25,688,341.56 | 0.54 | 61.82 | | Construction in Progress | 58,218,736.16 | 1.13 | 120,614,490.91 | 2.54 | -51.73 | | Long-term Deferred Expenses | 34,165,781.17 | 0.66 | 24,785,190.13 | 0.52 | 37.85 | | Other Non-current Assets | 12,390,793.33 | 0.24 | 30,392,030.40 | 0.64 | -59.23 | | Notes Payable | 281,731,144.57 | 5.47 | 52,195,985.09 | 1.10 | 439.76 | | Employee Remuneration Payable | 27,723,736.08 | 0.54 | 42,418,531.18 | 0.89 | -34.64 | | Taxes Payable | 28,784,513.08 | 0.56 | 42,120,093.73 | 0.89 | -31.66 | | Non-current Liabilities Due Within One Year | 255,001,213.92 | 4.95 | 106,545,456.36 | 2.24 | 139.34 | | Other Current Liabilities | 3,147,392.94 | 0.06 | 1,448,408.89 | 0.03 | 117.30 | | Long-term Borrowings | 167,268,643.37 | 3.25 | 296,420,260.60 | 6.23 | -43.57 | Period-End Major Asset Restriction Status (Unit: yuan) | Item | Book Balance | Book Value | Restriction Type | Restriction Details | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 204,513,683.11 | 204,513,683.11 | Pledge | Margin | | Notes Receivable | 22,851,031.77 | 22,851,031.77 | Pledge | Bill Pledge | | Fixed Assets | 367,872,200.92 | 144,222,146.96 | Mortgage | Loan Mortgage | | Intangible Assets | 120,676,520.71 | 89,586,055.94 | Mortgage | Loan Mortgage | | Investment Properties | 36,919,369.59 | 4,711,441.70 | Mortgage | Loan Mortgage | | **Total** | **752,832,806.10** | **465,884,359.48** | / | / | [Analysis of Main Business](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) Operating revenue and costs significantly increased, selling expenses slightly decreased, administrative and R&D expenses rose, and financial expenses dropped substantially due to reduced exchange losses - Operating revenue increased by **42.82%**, primarily due to increased sales in the current period[45](index=45&type=chunk) - Financial expenses decreased by **96.07%** year-on-year, mainly due to reduced exchange losses in the current period compared to the same period last year due to exchange rate fluctuations[45](index=45&type=chunk)[46](index=46&type=chunk) - R&D expenses increased by **37.76%** year-on-year, primarily due to increased investment in R&D projects in the current period compared to the same period last year[45](index=45&type=chunk)[46](index=46&type=chunk) [Analysis of 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) Period-end monetary funds, accounts receivable, financing for receivables, prepayments, notes payable, non-current liabilities due within one year, and other current liabilities grew significantly, while notes receivable, construction in progress, other non-current assets, and long-term borrowings decreased - Monetary funds increased by **71.68%**, primarily due to an increase in short-term borrowings in the current period[49](index=49&type=chunk) - Notes receivable decreased by **60.35%**, mainly due to the maturity and payment of some acceptance bills and payments to suppliers[49](index=49&type=chunk) - Notes payable increased by **439.76%**, primarily due to an increase in payments to suppliers via acceptance bills in the current period[49](index=49&type=chunk) - Construction in progress decreased by **51.73%**, mainly due to the transfer of factory buildings from the rail transit vehicle supporting equipment (Qingdao) construction project to fixed assets in the current period[49](index=49&type=chunk) - Non-current liabilities due within one year increased by **139.34%**, primarily due to an increase in long-term borrowings maturing within one year in the current period[50](index=50&type=chunk) [Analysis of Investment Status](index=13&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) Long-term equity investments increased by **9.26%**, and trading financial assets reached **1.05 million yuan** at period-end, mainly from increased wealth management product purchases - As of the end of the reporting period, the company's long-term equity investment was **107,047,378.28 yuan**, an increase of **9,070,578.5 yuan** from the beginning of the year, representing a **9.26%** increase[54](index=54&type=chunk) Trading Financial Assets Movement (Unit: yuan) | Asset Category | Beginning Balance | Amount Purchased in Current Period | Ending Balance | | :--- | :--- | :--- | :--- | | Trading Financial Assets | - | 1,052,156.74 | 1,052,156.74 | [Analysis of Major Holding and Participating Companies](index=15&type=section&id=(%E5%85%AD)%20%E4%B8%BB%E8%90%A5%E6%8E%A7%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) The company's major holding subsidiaries, Qingdao Luomei Victall New Material Manufacturing Co.,Ltd, Changchun Victall Rail Transit Technology Co.,Ltd, and MANTECH CORPORATION LIMITED, all achieved profitability during the reporting period, significantly contributing to the company's net profit Major Holding and Participating Company Financial Data (Unit: RMB yuan) | Company Name | Registered Capital | Total Assets | Net Assets | Net Profit | | :--- | :--- | :--- | :--- | :--- | | Qingdao Luomei Victall New Material Manufacturing Co.,Ltd | 40.1176 million yuan | 1,270,207,388.77 | 301,957,029.80 | 38,095,282.39 | | Qingdao Keda Intelligent Electric Co.,Ltd | 7.00 million yuan | 1,083,966,247.11 | 228,990,299.80 | -19,723,030.30 | | Tangshan Victall Rail Transit Equipment Co.,Ltd | 150.00 million yuan | 599,351,838.14 | 217,675,645.80 | 266,137.43 | | Changchun Victall Rail Transit Technology Co.,Ltd | 10.00 million yuan | 424,691,762.71 | 121,883,289.03 | 12,490,895.10 | | MANTECH CORPORATION LIMITED | 10,000 HKD | 188,527,827.45 | 56,664,902.49 | 9,609,842.84 | - Qingdao Luomei Victall New Material Manufacturing Co.,Ltd's net profit of **38,095,282.39 yuan** had an impact of over **10%** on the company's net profit[58](index=58&type=chunk) - Changchun Victall Rail Transit Technology Co.,Ltd's net profit of **12,490,895.10 yuan** had an impact of over **10%** on the company's net profit[58](index=58&type=chunk) - MANTECH CORPORATION LIMITED's net profit of **9,609,842.84 yuan** had an impact of over **10%** on the company's net profit[58](index=58&type=chunk) [Other Disclosure Matters](index=16&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 multiple risks including policy changes, market competition, high customer concentration, raw material price fluctuations, product quality, production safety, price declines, management, technology, financial issues, and tax policy changes - Industrial policy change risk: Significant adjustments to national rail transit industrial policies or a phased slowdown in railway investment and construction progress may adversely affect the company's operating performance[59](index=59&type=chunk) - Intensified market competition risk: New manufacturers may enter the company's niche industry by increasing R&D investment, weakening the company's market competitive advantage[60](index=60&type=chunk) - High customer concentration risk: Downstream customers are primarily CRRC subsidiaries and international manufacturers like Siemens and Alstom; significant adverse changes in customer operations may impact the company's performance[60](index=60&type=chunk)[61](index=61&type=chunk) - Operating risks: Including raw material price fluctuations, product quality risks, production safety risks, and product price decline risks[61](index=61&type=chunk)[62](index=62&type=chunk) - Financial risks: Including bad debts from accounts receivable, large inventory scale, fluctuations in operating performance, and declining gross margins[63](index=63&type=chunk)[64](index=64&type=chunk) - Tax preferential policy change risk: The company and several subsidiaries enjoy a **15%** corporate income tax preferential rate as high-tech enterprises; policy adjustments or failure to renew qualifications upon expiration may adversely affect profitability[65](index=65&type=chunk)[66](index=66&type=chunk) [Potential Risks](index=16&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 various risks from macroeconomic factors, industry policies, market competition, customer concentration, raw material prices, product quality, production safety, pricing, management, technology, financial aspects, and tax incentives, requiring continuous attention - Industrial policy change risk: Significant adjustments to national rail transit industrial policies or a phased slowdown in railway investment and construction progress may adversely affect the company's operating performance[59](index=59&type=chunk) - Intensified market competition risk: New manufacturers may enter the company's niche industry by increasing R&D investment, weakening the company's market competitive advantage[60](index=60&type=chunk) - High customer concentration risk: Downstream customers are primarily CRRC subsidiaries and international manufacturers like Siemens and Alstom; significant adverse changes in customer operations may impact the company's performance[60](index=60&type=chunk)[61](index=61&type=chunk) - Operating risks: Including raw material price fluctuations, product quality risks, production safety risks, and product price decline risks[61](index=61&type=chunk)[62](index=62&type=chunk) - Management risks: The company's asset and business scale have significantly increased, posing higher demands on management models, human resources, marketing, and internal control[63](index=63&type=chunk) - Technical risks: Market demand and customer requirements are continuously increasing; failure to timely develop new technologies and products may lead to a decline in product market competitiveness[63](index=63&type=chunk) - Financial risks: Including bad debts from accounts receivable, large inventory scale, fluctuations in operating performance, and declining gross margins[63](index=63&type=chunk)[64](index=64&type=chunk) - Tax preferential policy change risk: The company and several subsidiaries enjoy a **15%** corporate income tax preferential rate as high-tech enterprises; policy adjustments or failure to renew qualifications upon expiration may adversely affect profitability[65](index=65&type=chunk)[66](index=66&type=chunk) [Corporate Governance, Environment, and Society](index=20&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, Supervisors, and Senior Management](index=20&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) Mr. Hu Xiaoyu was appointed as the company's Deputy General Manager, effective from April 25, 2025 - On April 25, 2025, the company's 25th meeting of the Third Board of Directors approved the “Proposal on Appointing the Company's Deputy General Manager,” agreeing to appoint Mr. Hu Xiaoyu as the company's Deputy General Manager[69](index=69&type=chunk) [Profit Distribution or Capital Reserve to Share Capital Increase Plan](index=20&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 proposes a **0.10 yuan** per share cash dividend, totaling **39.29 million yuan**, **89.32%** of 2025 semi-annual net profit attributable to shareholders - The company plans to distribute a cash dividend of **0.10 yuan** (tax inclusive) per share to all shareholders[70](index=70&type=chunk) - As of June 30, 2025, the company's total share capital was **392,886,000 shares**, calculating a total proposed cash dividend of **39,288,600 yuan** (tax inclusive)[70](index=70&type=chunk) - The proposed cash dividend accounts for **89.32%** of the 2025 semi-annual net profit attributable to listed company shareholders[70](index=70&type=chunk) [Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=20&type=section&id=%E5%9B%9B%E3%80%81%E7%BA%B3%E5%85%A5%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%8A%AB%E9%9C%B2%E4%BC%81%E4%B8%9A%E5%90%8D%E5%8D%95%E7%9A%84%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E4%B8%BB%E8%A6%81%E5%AD%90%E5%85%AC%E5%8F%B8%E7%9A%84%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%83%85%E5%86%B5) Qingdao Luomei Victall New Material Manufacturing Co.,Ltd is listed for environmental information disclosure, accessible via the Shandong Enterprise Environmental Information Disclosure System - Qingdao Luomei Victall New Material Manufacturing Co.,Ltd is included in the list of enterprises required to disclose environmental information by law[72](index=72&type=chunk) - The query index for the Enterprise Environmental Information Disclosure Report is http://221.214.62.226:8090/EnvironmentDisclosure/enterpriseRoster/openEnterpriseDetails?comDetailFrom=0&id=913702147636212270[72](index=72&type=chunk) [Significant Matters](index=22&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=22&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) Controlling shareholder, actual controllers, and senior management strictly fulfilled commitments on share lock-up, horizontal competition, and related party transactions, including minimum share reduction prices and avoiding competition - The company's controlling shareholder Su Qingyan, actual controllers Sun Hanben, Su Qingyan, Sun Jilong, and Victall Investment controlled by them, committed that the price of Victall Railway shares reduced within two years after the lock-up period expires shall not be lower than the issue price[74](index=74&type=chunk)[75](index=75&type=chunk) - Actual controllers Sun Hanben, Su Qingyan, and Sun Jilong committed not to engage in businesses that constitute or may constitute horizontal competition with Victall Railway during their tenure as actual controllers of Victall Railway[74](index=74&type=chunk)[76](index=76&type=chunk) - The company's controlling shareholder Su Qingyan, actual controllers Sun Hanben, Su Qingyan, and Sun Jilong committed in principle not to engage in related party transactions with Victall Railway, and if such transactions occur, they will strictly follow relevant national laws and regulations[74](index=74&type=chunk)[77](index=77&type=chunk) - Victall Railway committed that if the prospectus contains false records, misleading statements, or major omissions, it will repurchase all newly issued shares in the initial public offering and compensate investors for losses in accordance with the law[74](index=74&type=chunk)[78](index=78&type=chunk) - Company directors and senior management Sun Hanben, Lu Zhikun, Sun Yongzhi, Liu Haofeng, Sun Jilong, Zhao Fasen, and Zhang Qingye committed to faithfully and diligently perform their duties and safeguard the legitimate rights and interests of the company and all shareholders[74](index=74&type=chunk)[80](index=80&type=chunk) [Significant Litigation and Arbitration Matters](index=25&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A1%B9) The company had no significant litigation or arbitration matters during the reporting period - The company had no significant litigation or arbitration matters during the reporting period[84](index=84&type=chunk) [Significant Contracts and Their Performance](index=26&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) Total guarantee balance for subsidiaries was **1.14 billion yuan**, representing **42.14%** of the company's net assets Company Guarantee Total (Unit: RMB yuan) | Indicator | Amount | | :--- | :--- | | Total guarantee amount for subsidiaries at the end of the reporting period | 1,140,000,000 | | Total guarantee balance for subsidiaries at the end of the reporting period (B) | 1,140,000,000 | | Total Guarantee Amount (A+B) | 1,140,000,000 | | Proportion of Total Guarantee Amount to Company's Net Assets (%) | 42.14 | [Explanation of Progress in Use of Raised Funds](index=28&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 IPO raised **1.22 billion yuan** net, with **520.72 million yuan** invested (46.13% progress); **481 million yuan** of idle funds were temporarily used for working capital Overall Use of Raised Funds (Unit: ten thousand yuan) | Source | Total Raised Funds | Net Raised Funds (1) | Cumulative Raised Funds Invested as of End of Reporting Period (4) | Cumulative Raised Funds Investment Progress (%) (6)=(2)/(1) | | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering of Shares | 121,953.84 | 112,889.67 | 52,072.14 | 46.13 | - As of June 30, 2025, the company used idle raised funds to temporarily supplement working capital, with an actual amount of **481 million yuan**[97](index=97&type=chunk) [Overall Use of Raised Funds](index=28&type=section&id=(%E4%B8%80)%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E6%95%B4%E4%BD%93%E4%BD%BF%E7%94%A8%E6%83%85%E5%86%B5) The IPO raised **1.22 billion yuan** net, with **520.72 million yuan** invested (46.13% progress) as of the reporting period end Overall Use of Raised Funds (Unit: ten thousand yuan) | Source | Total Raised Funds | Net Raised Funds (1) | Cumulative Raised Funds Invested as of End of Reporting Period (4) | Cumulative Raised Funds Investment Progress (%) (6)=(2)/(1) | | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering of Shares | 121,953.84 | 112,889.67 | 52,072.14 | 46.13 | [Details of Raised Fund Investment Projects](index=28&type=section&id=(%E4%BA%8C)%E5%8B%9F%E6%8A%95%E9%A1%B9%E7%9B%AE%E6%98%8E%E7%BB%86) Raised fund projects include Qingdao construction, R&D center, and working capital, with the Tangshan construction project terminated Details of Raised Fund Investment Projects Use (Unit: ten thousand yuan) | Project Name | Total Committed Investment of Raised Funds (1) | Cumulative Raised Funds Invested as of End of Reporting Period (2) | Investment Progress (%) (3)＝(2)/(1) | | :--- | :--- | :--- | :--- | | Rail Transit Vehicle Supporting Equipment (Qingdao) Construction Project | 33,351.02 | 18,145.77 | 54.41 | | Rail Transit Vehicle Supporting Equipment (Tangshan) Construction Project | 41,738.65 | 863.84 | 2.07 | | R&D Center Construction | 12,800.00 | 8,062.53 | 62.99 | | Supplementing Working Capital | 25,000.00 | 25,000.00 | 100 | - The Rail Transit Vehicle Supporting Equipment (Tangshan) Construction Project has been terminated[94](index=94&type=chunk) [Other Circumstances Regarding the Use of Raised Funds During the Reporting Period](index=31&type=section&id=(%E5%9B%9B)%E6%8A%A5%E5%91%8A%E5%86%85%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E7%9A%84%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) The company temporarily used **481 million yuan** of idle raised funds for working capital during the reporting period, with a term not exceeding 12 months - The company used no more than **250 million yuan** and **350 million yuan** of initial public offering raised funds to temporarily supplement working capital, with a term not exceeding 12 months from the date of approval by the company's Board of Directors[97](index=97&type=chunk) - As of June 30, 2025, the actual amount of idle raised funds used by the company to temporarily supplement working capital was **481 million yuan**[97](index=97&type=chunk) [Share Changes and Shareholder Information](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) During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[99](index=99&type=chunk) [Shareholder Information](index=32&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of period-end, the company had **23,380** ordinary shareholders; Su Qingyan is the largest shareholder (**25.10%**), and with Sun Hanben and Sun Jilong, forms the actual controlling group - As of the end of the reporting period, the total number of ordinary shareholders was **23,380**[101](index=101&type=chunk) Top Ten Shareholders' Shareholding (as of Period End) | Shareholder Name | Number of Shares Held at Period End | Proportion (%) | Pledged, Marked, or Frozen Status (Number) | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | | Su Qingyan | 98,619,925 | 25.10 | Pledged 72,900,000 | Domestic Natural Person | | Sun Hanben | 38,220,384 | 9.73 | None 0 | Domestic Natural Person | | Tangshan Ruize Equity Investment Management Center (Limited Partnership) | 33,002,300 | 8.40 | None 0 | Domestic Non-State-Owned Legal Person | | Liu Ping | 19,650,000 | 5.00 | None 0 | Domestic Natural Person | | Ningbo Meishan Bonded Port Area Jiuying Phase II New Energy Investment Partnership (Limited Partnership) | 16,350,000 | 4.16 | None 0 | Domestic Non-State-Owned Legal Person | | Sun Jilong | 13,650,191 | 3.47 | None 3,500,000 | Domestic Natural Person | - Company shareholders Sun Hanben and Su Qingyan are a married couple, and Sun Jilong is their son; the three are the company's actual controllers and have signed a “Concerted Action Agreement”[104](index=104&type=chunk) [Bond-Related Information](index=35&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 (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=35&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 enterprise debt financing instruments during the reporting period - The company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during the reporting period[107](index=107&type=chunk) [Convertible Corporate Bonds](index=35&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 - The company had no convertible corporate bonds during the reporting period[107](index=107&type=chunk) [Financial Report](index=36&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) [Audit Report](index=36&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This semi-annual report has not been audited - This semi-annual report has not been audited[5](index=5&type=chunk) [Financial Statements](index=36&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2025, reflecting financial position, operating results, and cash flows - Financial statements include consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity[109](index=109&type=chunk)[112](index=112&type=chunk)[116](index=116&type=chunk)[120](index=120&type=chunk)[123](index=123&type=chunk)[126](index=126&type=chunk)[128](index=128&type=chunk)[130](index=130&type=chunk)[133](index=133&type=chunk) [Consolidated Balance Sheet](index=36&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, consolidated total assets were **5.15 billion yuan**, with current assets of **3.33 billion yuan** and current liabilities of **2.17 billion yuan** Consolidated Balance Sheet Key Data (as of June 30, 2025) | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 5,150,341,256.68 | 4,754,673,083.08 | | Total Current Assets | 3,327,389,100.96 | 2,906,409,573.38 | | Total Current Liabilities | 2,167,494,570.78 | 1,647,200,632.77 | | Total Liabilities | 2,438,933,436.79 | 2,048,182,420.16 | | Total Owners' Equity Attributable to Parent Company | 2,705,166,391.20 | 2,699,980,292.36 | [Parent Company Balance Sheet](index=38&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, parent company total assets were **4.36 billion yuan**, with current assets of **2.75 billion yuan** and current liabilities of **2.03 billion yuan** Parent Company Balance Sheet Key Data (as of June 30, 2025) | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Total Assets | 4,356,344,773.88 | 3,605,327,238.80 | | Total Current Assets | 2,746,544,782.67 | 2,002,074,919.08 | | Total Current Liabilities | 2,029,131,215.59 | 1,154,581,550.39 | | Total Liabilities | 2,208,946,796.45 | 1,463,129,679.80 | | Total Owners' Equity | 2,147,397,977.43 | 2,142,197,559.00 | [Consolidated Income Statement](index=40&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) From January to June 2025, consolidated total operating revenue was **844.48 million yuan** (up **42.82%**); net profit attributable to parent company shareholders was **43.99 million yuan** (up **44.70%**) Consolidated Income Statement Key Data (January-June 2025) | Item | Current Period Amount (yuan) | Previous Period Amount (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 844,483,421.31 | 591,291,168.39 | | Total Profit | 55,396,905.09 | 34,394,693.96 | | Net Profit | 43,314,968.17 | 29,365,469.85 | | Net Profit Attributable to Parent Company Shareholders | 43,986,865.22 | 30,397,990.19 | | Basic Earnings Per Share (yuan/share) | 0.11 | 0.08 | [Parent Company Income Statement](index=42&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) From January to June 2025, parent company operating revenue was **504.92 million yuan** (up **41.83%**); net profit was **44.43 million yuan** (up **48.07%**) Parent Company Income Statement Key Data (January-June 2025) | Item | Current Period Amount (yuan) | Previous Period Amount (yuan) | | :--- | :--- | :--- | | Operating Revenue | 504,918,589.18 | 356,003,373.03 | | Total Profit | 45,931,197.22 | 31,464,343.62 | | Net Profit | 44,431,967.90 | 30,007,978.07 | [Consolidated Cash Flow Statement](index=43&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) From January to June 2025, net cash flow from operating activities was **83.08 million yuan** (down **44.02%**); net cash flow from investing activities was **-54.16 million yuan**, and from financing activities was **120.86 million yuan** Consolidated Cash Flow Statement Key Data (January-June 2025) | Item | Current Period Amount (yuan) | Previous Period Amount (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 83,079,430.95 | 148,412,844.15 | | Net Cash Flow from Investing Activities | -54,157,870.00 | 105,367,999.32 | | Net Cash Flow from Financing Activities | 120,856,230.20 | -164,681,936.76 | | Net Increase in Cash and Cash Equivalents | 153,508,806.60 | 89,988,688.93 | [Parent Company Cash Flow Statement](index=45&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) From January to June 2025, parent company net cash flow from operating activities was **95.94 million yuan** (up **8.50%**); net cash flow from investing activities was **-25.71 million yuan**, and from financing activities was **102.14 million yuan** Parent Company Cash Flow Statement Key Data (January-June 2025) | Item | Current Period Amount (yuan) | Previous Period Amount (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 95,942,186.66 | 88,428,272.13 | | Net Cash Flow from Investing Activities | -25,713,895.49 | 150,929,346.17 | | Net Cash Flow from Financing Activities | 102,137,642.77 | -127,760,327.76 | | Net Increase in Cash and Cash Equivalents | 176,337,331.44 | 112,342,324.85 | [Consolidated Statement of Changes in Owners' 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) As of June 30, 2025, consolidated total owners' equity was **2.71 billion yuan**, an increase of **4.92 million yuan** from period-beginning, influenced by comprehensive income and profit distribution Consolidated Statement of Changes in Owners' Equity (January-June 2025) | Item | Beginning Balance (yuan) | Amount of Change in Current Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | | Total Owners' Equity | 2,706,490,662.92 | 4,917,156.97 | 2,711,407,819.89 | | Total Owners' Equity Attributable to Parent Company | 2,699,980,292.36 | 5,186,098.84 | 2,705,166,391.20 | | Minority Interests | 6,510,370.56 | -268,941.87 | 6,241,428.69 | [Parent Company Statement of Changes in Owners' Equity](index=51&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) As of June 30, 2025, parent company total owners' equity was **2.15 billion yuan**, an increase of **5.20 million yuan** from period-beginning, influenced by net profit and profit distribution Parent Company Statement of Changes in Owners' Equity (January-June 2025) | Item | Beginning Balance (yuan) | Amount of Change in Current Period (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | | Total Owners' Equity | 2,142,197,559.00 | 5,200,418.43 | 2,147,397,977.43 | | Retained Earnings | 58,517,374.39 | 5,200,418.43 | 63,717,792.82 | [Company Basic Information](index=54&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) Qingdao Victall Railway Co.,Ltd, reorganized in 2016 and listed on SSE, had **392.886 million shares** as of June 30, 2025, focusing on R&D, production, sales, and service of rail transit vehicle supporting products - Qingdao Victall Railway Co.,Ltd was reorganized into a joint-stock company on November 30, 2016, based on the original limited liability company, and its RMB ordinary A-shares have been listed on the Shanghai Stock Exchange[137](index=137&type=chunk) - As of June 30, 2025, the company's total share capital was **392.886 million shares**, consisting of RMB ordinary shares[138](index=138&type=chunk) - The company and its subsidiaries primarily engage in the research, development, production, sales, and service of rail transit vehicle supporting products, currently comprising two major business segments: high-speed rail and urban rail supporting products[139](index=139&type=chunk) [Basis of Preparation of Financial Statements](index=54&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) These financial statements are prepared according to Accounting Standards for Business Enterprises and presented on a going concern and historical cost basis - These financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance, along with their application guidelines, interpretations, and other relevant regulations[140](index=140&type=chunk) - These financial statements are presented on a going concern basis, and except for certain financial instruments, are measured at historical cost[140](index=140&type=chunk)[142](index=142&type=chunk) [Significant Accounting Policies and Estimates](index=54&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 the company's accounting policies and estimates across various financial areas, from accounting periods and functional currency to revenue recognition and leases - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, and its functional currency is RMB[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) - Financial assets are classified at initial recognition into those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss, based on the business model for managing financial assets and their contractual cash flow characteristics[160](index=160&type=chunk) - For notes receivable, accounts receivable, and contract assets, the company consistently measures their loss provisions at an amount equal to the expected credit losses over their entire lifetime, regardless of the presence of a significant financing component[171](index=171&type=chunk) - Fixed assets are depreciated using the straight-line method, with buildings and structures depreciated over 20 years, and machinery and equipment over 5-10 years[189](index=189&type=chunk) - Revenue is recognized when performance obligations in the contract are satisfied, i.e., when the customer obtains control of the related goods or services, and is recognized over a period of time or at a point in time depending on the performance obligation[210](index=210&type=chunk)[212](index=212&type=chunk) [Taxation](index=73&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) The company's main taxes include VAT, urban maintenance and construction tax, and corporate income tax; it and several subsidiaries benefit from high-tech enterprise tax incentives, VAT super deduction, and export tax rebates Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Value Added | 6%, 13% | | Urban Maintenance and Construction Tax | Taxable Turnover Tax | 5%, 7% | | Corporate Income Tax | Taxable Income | 25%, 16.5%, 26.6%, 32.275%, 27.5% | | Education Surcharge | Taxable Turnover Tax | 3% | | Local Education Surcharge | Taxable Turnover Tax | 2% | - The company and several subsidiaries (e.g., Qingdao Luomei Victall New Material Manufacturing Co.,Ltd, Qingdao Keda Intelligent Electric Co.,Ltd, Tangshan Victall Rail Transit Equipment Co.,Ltd) are recognized as high-tech enterprises, applying a **15%** corporate income tax preferential rate[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk) - The company and some subsidiaries enjoy a **5%** VAT super deduction policy for advanced manufacturing enterprises[231](index=231&type=chunk) - The company's export of rail transit equipment interior products qualifies for VAT export tax rebates, with a primary product export tax rebate rate of **13%**[232](index=232&type=chunk)[233](index=233&type=chunk) [Notes to Consolidated Financial Statement Items](index=75&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 details consolidated financial statement items and their changes, including monetary funds, receivables, inventories, goodwill, borrowings, revenue, costs, and financial expenses - The period-end balance of monetary funds was **748,523,344.61 yuan**, of which restricted funds of **204,513,683.11 yuan** were mainly for letter of guarantee margins, bill margins, and letter of credit margins[235](index=235&type=chunk) - The period-end book balance of accounts receivable was **1,143,942,583.18 yuan**, with bad debt provisions of **54,772,981.10 yuan**; accounts receivable and contract assets from the top five customers collectively accounted for **76.28%** of the total[245](index=245&type=chunk)[246](index=246&type=chunk)[255](index=255&type=chunk) - The period-end book value of inventories was **1,166,656,872.61 yuan**, with total inventory impairment provisions and contract performance cost impairment provisions of **24,424,347.19 yuan**[276](index=276&type=chunk)[277](index=277&type=chunk) - Goodwill had a book original value of **466,654,203.22 yuan**, with goodwill impairment provisions of **27,249,585.07 yuan**, and **8,137,814.71 yuan** was recognized in the current period[308](index=308&type=chunk)[310](index=310&type=chunk) - The period-end balance of short-term borrowings was **971,712,924.17 yuan**, primarily guarantee borrowings[328](index=328&type=chunk) - The period-end balance of notes payable was **281,731,144.57 yuan**, a significant increase of **439.76%** from the beginning of the period[330](index=330&type=chunk) - Operating revenue was **844,483,421.31 yuan**, operating costs were **616,411,821.71 yuan**, with main business revenue accounting for **98.80%**[363](index=363&type=chunk)[365](index=365&type=chunk) - Financial expenses for the current period amounted to **1,527,133.86 yuan**, a significant decrease from the previous period, mainly due to a shift from exchange gains to exchange losses[369](index=369&type=chunk) [Research and Development Expenses](index=136&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) Total R&D expenditure was **52.75 million yuan**, primarily for employee compensation, materials, and testing, significantly increasing from the previous period R&D Expenses by Nature of Expense (Unit: yuan) | Item | Current Period Amount | Previous Period Amount | | :--- | :--- | :--- | | Employee Compensation | 26,833,309.42 | 22,391,165.27 | | Material Costs | 16,138,805.41 | 9,889,460.60 | | Experimental Testing Fees | 6,255,749.97 | 1,430,786.27 | | Depreciation and Amortization | 1,798,328.26 | 1,858,174.20 | | Other Expenses | 1,721,122.57 | 2,720,509.43 | | **Total** | **52,747,315.63** | **38,290,095.77** | - R&D expenditure for the current period increased by **37.76%** compared to the previous period, mainly due to increased investment in R&D projects[45](index=45&type=chunk)[46](index=46&type=chunk) [Changes in Consolidation Scope](index=137&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) During the reporting period, the company had no business combinations or transactions leading to loss of control over subsidiaries - During the reporting period, the company had no business combinations involving entities not under common control, business combinations involving entities under common control, reverse acquisitions, or transactions or events leading to loss of control over subsidiaries[401](index=401&type=chunk) [Interests in Other Entities](index=138&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) The company controls multiple subsidiaries in manufacturing and trade via multi-level equity, and accounts for investments in associates like IFE-Victall Rail Vehicle Door System (Qingdao) Co.,Ltd using the equity method - The company owns Qingdao Luomei Victall New Material Manufacturing Co.,Ltd, Qingdao Keda Intelligent Electric Co.,Ltd, Tangshan Victall Rail Transit Equipment Co.,Ltd, and several other wholly-owned or controlled subsidiaries[402](index=402&type=chunk) - The company controls Victall Holding GmbH (Germany Victall) and 9529-8329 Québec inc. (Canada Victall) through its subsidiary MANTECH CORPORATION LIMITED (Hong Kong Keda); it controls Luoyang Xindi Railway Electrification Co.,Ltd and Sichuan Lingao Information Technology Co.,Ltd through its subsidiary Chengdu Victall Changtong Technology Co.,Ltd[404](index=404&type=chunk)[405](index=405&type=chunk) - Important associates include IFE-Victall Rail Vehicle Door System (Qingdao) Co.,Ltd, in which the company holds a **41.00%** stake and accounts for using the equity method[411](index=411&type=chunk) - IFE-Victall Rail Vehicle Door System (Qingdao) Co.,Ltd reported a net profit of **38,315,678.79 yuan** for the current period, compared to **-1,504,421.10 yuan** in the previous period, achieving a turnaround to profitability[414](index=414&type=chunk) [Interests in Subsidiaries](index=138&type=section&id=1%E3%80%81%E5%9C%A8%E5%AD%90%E5%85%AC%E5%8F%B8%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) The company controls 15 direct subsidiaries, including Qingdao Luomei Victall, Qingdao Keda Intelligent Electric, and Tangshan Victall, primarily in manufacturing and trade - The company directly controls 15 subsidiaries, including Qingdao Luomei Victall New Material Manuf

[Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) This section provides definitions of common terms used in the report, including the company itself, major subsidiaries, and related parties, to ensure clear understanding [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This chapter provides definitions of common terms used in the report, including the company itself, major subsidiaries, and related parties, to ensure clear understanding - The report defines "The Company, the Group, the Company, Shenhua Holdings" as Liaoning Shenhua Holdings Co., Ltd. (including subsidiaries)[17](index=17&type=chunk) - Definitions of abbreviations for multiple related parties and subsidiaries are listed, such as Shenqi Group, Liaoning Huasheng, Huachen Group, and Lujin Shenhua[17](index=17&type=chunk) [Section II Company Profile and Key Financial Indicators](index=4&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section outlines the company's basic information, contact details, changes in registration, information disclosure, stock overview, and key financial performance indicators [1. Company Information](index=4&type=section&id=1.%20Company%20Information) This section outlines the company's basic registration information, including its Chinese name, abbreviation, foreign name and its abbreviation, and legal representative - The company's Chinese name is **Liaoning Shenhua Holdings Co., Ltd.**, abbreviated as **Shenhua Holdings**[14](index=14&type=chunk) - The company's legal representative is **Gao Xinggang**[14](index=14&type=chunk) [2. Contact Persons and Information](index=4&type=section&id=2.%20Contact%20Persons%20and%20Information) This section provides contact information for the company's Board Secretary and Securities Affairs Representative, facilitating communication for investors and relevant parties - Both the Board Secretary and Securities Affairs Representative are **Zhou Chun** and **Zhu Xulan**, with the contact address at **No. 1 Ningbo Road, Shanghai**[15](index=15&type=chunk) [3. Brief Introduction to Changes in Basic Information](index=4&type=section&id=3.%20Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) This section describes the historical changes in the company's registered address and confirms no other changes during the reporting period - The company's registered address was changed on **December 10, 2020**, and is now **Room 235, 2nd Floor, No. 109-1 Quanyun Road, Shenyang Area, China (Liaoning) Pilot Free Trade Zone**[16](index=16&type=chunk) - No other changes in the company's basic information occurred during the reporting period[16](index=16&type=chunk) [4. Brief Introduction to Changes in Information Disclosure and Document Storage Locations](index=5&type=section&id=4.%20Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Storage%20Locations) This section lists the company's designated newspapers for information disclosure, website address, and the location for semi-annual report storage, stating no changes during the reporting period - The company's designated newspapers for information disclosure are **"China Securities Journal"**, **"Shanghai Securities News"**, **"Securities Times"**, and the website is **www.sse.com.cn**[18](index=18&type=chunk) - The company's semi-annual report is stored at the **Board Secretary's Office, No. 1 Ningbo Road, Shanghai**[18](index=18&type=chunk) [5. Brief Introduction to Company Shares](index=5&type=section&id=5.%20Brief%20Introduction%20to%20Company%20Shares) This section provides basic information about the company's shares, including the listing exchange, stock abbreviation, and code - The company's A-shares are listed on the **Shanghai Stock Exchange**, with stock abbreviation **Shenhua Holdings** and stock code **600653**[19](index=19&type=chunk) [7. Key Accounting Data and Financial Indicators](index=5&type=section&id=7.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue increased by 3.13% year-on-year, but total profit and net profit attributable to shareholders significantly decreased, with net cash flow from operating activities also notably reduced Major Accounting Data and Financial Indicators (Jan-Jun 2025 vs. Prior Year Period) | Indicator | Current Period (Jan-Jun) | Prior Year Period | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,314,625,287.23 CNY | 2,244,413,702.03 CNY | 3.13 | | Total Profit | -84,088,451.81 CNY | -44,623,239.66 CNY | -88.44 | | Net Profit Attributable to Listed Company Shareholders | -59,313,460.38 CNY | -38,927,118.04 CNY | -52.37 | | Net Profit Attributable to Listed Company Shareholders After Deducting Non-Recurring Gains and Losses | -61,796,718.32 CNY | -64,911,320.04 CNY | 4.80 | | Net Cash Flow from Operating Activities | 9,329,395.26 CNY | 48,431,601.95 CNY | -80.74 | | Basic Earnings Per Share (CNY/share) | -0.0305 | -0.0200 | -52.50 | | Diluted Earnings Per Share (CNY/share) | -0.0305 | -0.0200 | -52.50 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (CNY/share) | -0.0317 | -0.0333 | 4.80 | | Weighted Average Return on Net Assets (%) | -7.496 | -5.094 | Decreased by 2.40 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | -7.810 | -8.494 | Increased by 0.68 percentage points | Period-End Asset and Liability Data (June 30, 2025 vs. Prior Year-End) | Indicator | Current Period-End | Prior Year-End | Change (%) | | :--- | :--- | :--- | :--- | | Net Assets Attributable to Listed Company Shareholders | 760,727,149.42 CNY | 820,890,018.67 CNY | -7.33 | | Total Assets | 2,986,431,075.11 CNY | 3,305,254,178.95 CNY | -9.65 | [9. Non-Recurring Gains and Losses Items and Amounts](index=6&type=section&id=9.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's total non-recurring gains and losses amounted to CNY 2,483,257.94, primarily from government subsidies, while also affected by disposal gains/losses of non-current assets and fair value changes of financial assets Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Disposal Gains and Losses of Non-Current Assets | -439,762.43 | | Government Grants Recognized in Current Period Profit or Loss | 7,163,060.13 | | Gains and Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities Held by Non-Financial Enterprises | -308,285.63 | | Other Non-Operating Income and Expenses Apart from the Above | 135,438.09 | | Less: Income Tax Impact | 1,561,448.36 | | Minority Interest Impact (After Tax) | 2,505,743.86 | | **Total** | **2,483,257.94** | [Section III Management Discussion and Analysis](index=6&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section discusses the company's industry, main business, operating performance, core competencies, and potential risks during the reporting period [1. Explanation of the Company's Industry and Main Business During the Reporting Period](index=6&type=section&id=1.%20Explanation%20of%20the%20Company%27s%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) The company's main business remained largely unchanged, primarily covering four segments: automotive consumer services, new energy, real estate, and quasi-financial services, with automotive sales focusing on mid-to-high-end brands like BMW, new energy business on photovoltaic power generation, real estate including leasing and project development, and quasi-financial services on financial leasing - The company's main business is divided into **automotive consumer services, new energy, a small amount of real estate, and quasi-financial services** segments, with no significant changes in business model[25](index=25&type=chunk) - Automotive consumer services primarily include **BMW and other mid-to-high-end brand automotive sales services** and **automotive cultural industrial park operations**[25](index=25&type=chunk) - New energy business mainly involves the operation of the **Chuxiong photovoltaic power plant in Yunnan**, real estate business includes **leasing of Shenhua Financial Building** and **development/sales of the Hongjiang project in Hunan**, and the quasi-financial segment is **financial leasing**[25](index=25&type=chunk) [2. Discussion and Analysis of Operating Performance](index=7&type=section&id=2.%20Discussion%20and%20Analysis%20of%20Operating%20Performance) During the reporting period, the company actively worked across all business segments, including automotive sales, automotive cultural industrial park, Shenhua Financial Building, new energy, and real estate, achieving growth in sales and exceeding expectations in some areas - From January to June 2025, the company's consolidated BMW brand sales reached **6,711 vehicles**, a **17.6% year-on-year increase**, achieving growth against a **15.5% overall market decline** in China[26](index=26&type=chunk) - Weinan Auto Expo Park attracted visitors by hosting exhibitions, added **4 new 4S stores** for automotive brands, opened **2 new stores**, and introduced auto trading companies and used car dealers, increasing the utilization rate of comprehensive exhibition halls[27](index=27&type=chunk) - Shenhua Financial Building exceeded revenue and profit targets by enhancing its business image and optimizing facilities[27](index=27&type=chunk) - The new energy segment's Chuxiong photovoltaic project in Yunnan operated stably, completing **12.12 million kWh** of grid-connected electricity[28](index=28&type=chunk) - Real estate business accelerated destocking, with Hongjiang "Xiangshui International" project achieving a cumulative destocking rate of **28% for shops** and **41% for parking spaces**; Xi'an "Qujiang Longdi" project achieved **95% for parking spaces** and **95% for shops**; the Hongjiang project's hotel formed a strategic partnership with Jinjiang Group, joining the "Non-Fan Yun Ju" brand[28](index=28&type=chunk) [3. Analysis of Core Competencies During the Reporting Period](index=8&type=section&id=3.%20Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company's core competencies lie in its strong market position in the automotive retail main business and its ownership and operation of high-quality office buildings, achieving stable sales growth and maintaining high occupancy rates - The company is one of the earliest and largest BMW brand dealer groups in China, owning **13 BMW brand 4S stores**, achieving stable sales growth through high-quality store management and flexible sales strategies[30](index=30&type=chunk) - The company's Shenhua Financial Building, located on the Huangpu River, maintained stability and increased its occupancy rate against a sluggish market by upgrading hardware, improving environment and safety, and diversifying tenant types[31](index=31&type=chunk) [4. Main Operating Performance During the Reporting Period](index=8&type=section&id=4.%20Main%20Operating%20Performance%20During%20the%20Reporting%20Period) This section details the company's financial statement item changes, profit composition, asset and liability situation, investment status, and operating performance of major controlled and invested companies, showing stable revenue growth but continued losses in some areas [(1) Analysis of Main Business](index=8&type=section&id=%281%29%20Analysis%20of%20Main%20Business) The company's operating revenue increased by 3.13% year-on-year, primarily due to proactive market response measures, with effective cost control leading to improved core business profitability despite overall profit declines Financial Statement Item Changes (Jan-Jun 2025 vs. Prior Year Period) | Item | Current Period Amount (CNY) | Prior Year Period Amount (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,314,625,287.23 | 2,244,413,702.03 | 3.13 | | Operating Costs | 2,246,946,631.17 | 2,118,623,828.50 | 6.06 | | Selling Expenses | 51,007,877.08 | 56,690,291.10 | -10.02 | | General and Administrative Expenses | 63,462,013.95 | 82,423,877.95 | -23.01 | | Financial Expenses | 31,888,201.98 | 37,522,229.66 | -15.02 | | Net Cash Flow from Operating Activities | 9,329,395.26 | 48,431,601.95 | -80.74 | | Net Cash Flow from Investing Activities | -4,891,212.78 | -5,372,030.69 | 8.95 | | Net Cash Flow from Financing Activities | -61,602,034.94 | -40,383,306.50 | -52.54 | - Changes in operating revenue and operating costs were mainly due to the company's proactive response to fluctuations in the vehicle market, achieving **stable sales revenue growth** through adjusting pace, strengthening services, and expanding channels[32](index=32&type=chunk) - Decreases in selling, general and administrative, and financial expenses were primarily due to the company's refined control over market activity expenses, budget management, and capital management, effectively **saving expenditures and reducing financing costs**[33](index=33&type=chunk) - Total profit decreased by **88.44%** year-on-year, and net profit attributable to owners of the parent company decreased by **52.37%** year-on-year, but net profit attributable to shareholders after deducting non-recurring gains and losses **increased by 4.8%** year-on-year, mainly due to not receiving similar rebate subsidies from BMW headquarters in the previous period[35](index=35&type=chunk) [(3) Analysis of Assets and Liabilities](index=9&type=section&id=%283%29%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, both the company's total assets and net assets attributable to shareholders decreased, with reductions in monetary funds and short-term borrowings reflecting debt optimization, and lower inventory levels indicating improved management Changes in Assets and Liabilities (Current Period-End vs. Prior Year-End) | Item Name | Current Period-End Amount (CNY) | Current Period-End % of Total Assets | Prior Year-End Amount (CNY) | Prior Year-End % of Total Assets | Current Period-End Change % vs. Prior Year-End | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 263,353,697.52 | 8.82 | 383,039,794.67 | 11.59 | -31.25 | Mainly due to repayment of financing borrowings in the current period | | Accounts Receivable | 186,154,185.46 | 6.23 | 205,421,281.03 | 6.21 | -9.38 | | | Inventories | 743,013,054.24 | 24.88 | 856,550,299.52 | 25.91 | -13.26 | Mainly due to the company strengthening inventory management, improving inventory turnover efficiency, and optimizing overall inventory levels in the current period, resulting in a decrease in inventories compared to the beginning of the year | | Short-Term Borrowings | 365,539,380.67 | 12.24 | 493,494,071.79 | 14.93 | -25.93 | Mainly due to continuous strengthening of capital management and rational arrangement of debt structure, compressing some bank borrowings in the current period | | Contract Liabilities | 79,957,446.27 | 2.68 | 71,856,198.91 | 2.17 | 11.27 | Mainly due to more settlement of customer accounts in the current period | - At the end of the current period, restricted assets for bill deposits, mortgages, and pledges totaled **CNY 1,541,794,671.39**[38](index=38&type=chunk) [(4) Analysis of Investment Status](index=10&type=section&id=%284%29%20Analysis%20of%20Investment%20Status) The company had no significant equity or non-equity investments during the current period but held financial assets measured at fair value, including shares of Jinbei Automobile and First Pharmaceutical, with a total book value of CNY 8,145,090.00 at period-end, and a fair value change loss of CNY -873,495.00 for the period Financial Assets Measured at Fair Value (Securities Investments) | Security Abbreviation | Beginning Book Value (CNY) | Current Period Fair Value Change Loss (CNY) | Period-End Book Value (CNY) | | :--- | :--- | :--- | :--- | | Jinbei Automobile | 1,645,776.00 | -436,587.80 | 1,209,188.20 | | First Pharmaceutical | 7,372,809.00 | -436,907.20 | 6,935,901.80 | | **Total** | **9,018,585.00** | **-873,495.00** | **8,145,090.00** | [(6) Analysis of Major Controlled and Invested Companies](index=12&type=section&id=%286%29%20Analysis%20of%20Major%20Controlled%20and%20Invested%20Companies) The company's major controlled and invested companies cover automotive sales, new energy, real estate, and property management, with automotive sales generally facing losses, while new energy and some real estate businesses achieved profitability Operating Performance of Major Controlled and Invested Companies (Jan-Jun 2025) | Company Name | Main Business | Operating Revenue (CNY 10,000) | Operating Profit (CNY 10,000) | Net Profit (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | | Shanghai Shenhua Chenbao Automobile Co., Ltd. (Consolidated) | Automotive and parts sales, repair, decoration, etc. | 227,050.37 | -5,962.25 | -4,628.51 | | Xuancheng Baolifeng Automobile Sales Service Co., Ltd. | Automotive sales | 18,452.15 | -349.69 | -262.26 | | Wuhu Baolisheng Automobile Sales Service Co., Ltd. | Automotive sales | 25,926.20 | -296.16 | -296.16 | | Bengbu Baolifeng Automobile Sales Service Co., Ltd. | Automotive sales | 22,465.10 | -338.12 | -252.69 | | Nanjing Baolifeng Automobile Sales Service Co., Ltd. | BMW brand automotive and parts sales, repair, decoration, etc. | 23,357.05 | -1,044.22 | -783.44 | | Yixing Baolifeng Automobile Sales Service Co., Ltd. | BMW brand automotive and parts sales, repair, decoration, etc. | 26,750.79 | -1,601.04 | -1,222.82 | | Cixi Baolifeng Automobile Sales Service Co., Ltd. | Automotive sales | 17,566.82 | -868.72 | -651.51 | | Dongyang Baolifeng Automobile Sales Service Co., Ltd. | Automotive sales | 97,220.68 | -1,216.05 | -912.36 | | Chongqing Baosheng Automobile Sales Service Co., Ltd. (Consolidated) | Automotive sales | 28,442.23 | 27.99 | 28.96 | | Chuxiong Changxiang Photovoltaic Power Generation Co., Ltd. | Photovoltaic power generation | 903.52 | 216.50 | 184.02 | | Shanghai Shenhua Financial Building Co., Ltd. | Property management | 572.20 | -149.54 | -149.54 | | Shaanxi Shenhua Investment Management Co., Ltd. | Real estate development and operation, industrial investment | 1,088.12 | 453.57 | 453.57 | | Lujin Shenhua Financial Leasing (Shanghai) Co., Ltd. | Financial leasing business | 1,916.15 | -587.52 | -589.17 | [5. Other Disclosures](index=13&type=section&id=5.%20Other%20Disclosures) This section discloses the macroeconomic fluctuations and market risks faced by the company, as well as the risks of intensifying industry competition [(1) Potential Risks](index=13&type=section&id=%281%29%20Potential%20Risks) The company faces economic downturn risks from macroeconomic fluctuations, tariff wars, geopolitical tensions, and trade protection, with domestic market competition intensifying, particularly in the automotive industry due to price wars and the expansion of new energy vehicles - Macroeconomic risks include global tariff wars, geopolitical tensions, and trade protection leading to economic downturns, as well as overcapacity in domestic traditional manufacturing and service industries, declining corporate profits, and increased uncertainty in consumer willingness[44](index=44&type=chunk) - Industry risks are mainly reflected in intensified competition in the domestic automotive market, diversified price wars, expansion of the new energy vehicle market, intelligence becoming a core competitiveness, and traditional high-end brands and fuel vehicle brands facing transformation or elimination risks[45](index=45&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=14&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section details changes in the company's directors and senior management, as well as the board's resolution regarding profit distribution or capital reserve conversion [1. Changes in Company Directors and Senior Management](index=14&type=section&id=1.%20Changes%20in%20Company%20Directors%20and%20Senior%20Management) During the reporting period, the company's board of directors and senior management underwent multiple changes, including resignations, new elections, the abolition of the supervisory board, and new appointments to key executive positions - Vice President **Lin Shangtao** resigned due to work adjustments[50](index=50&type=chunk) - The company completed the re-election of the board of directors, with **Gao Xinggang, Du Bo, and Fan Kai** elected as directors, **Jin Yongli, Li Zhuo, and Yu Yijian** as independent directors, and **Chen Jianfei** as employee director[50](index=50&type=chunk) - The company abolished the supervisory board, with its functions exercised by the **board's audit committee**[50](index=50&type=chunk) - **Gao Xinggang** was appointed President, **Chen Jianfei** and **Shen Minghui** as Vice Presidents, and **Zhou Chun** as Vice President, CFO, and Board Secretary[50](index=50&type=chunk) [2. Profit Distribution or Capital Reserve Conversion Plan](index=14&type=section&id=2.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company's board of directors resolved not to proceed with a profit distribution or capital reserve conversion plan for the current reporting period - The company will not distribute profits or convert capital reserves in the current reporting period[51](index=51&type=chunk) [Section V Significant Matters](index=15&type=section&id=Section%20V%20Significant%20Matters) This section covers the fulfillment of commitments, significant litigation, related-party transactions, major contracts, and other important matters, including shareholder actions and strategic initiatives [1. Fulfillment of Commitments](index=15&type=section&id=1.%20Fulfillment%20of%20Commitments) The company's controlling shareholder, Liaoning Huasheng, and its concerted parties continued to fulfill commitments made in the acquisition report and share increase plan, including maintaining the independence of the listed company, avoiding horizontal competition, standardizing related-party transactions, and increasing shareholdings, with all commitments strictly fulfilled on time Fulfillment of Commitments | Commitment Background | Commitment Type | Promisor | Commitment Content | Commitment Date | Fulfillment Period | Has Fulfillment Period | Commitment Term | Timely and Strictly Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Commitments made in the acquisition report or equity change report | Other | Liaoning Huasheng | Maintain the independence of the listed company, avoid horizontal competition, standardize and reduce related-party transactions | During Liaoning Huasheng's tenure as Shenhua Holdings shareholder | Long-term | Yes | Long-term | Yes | | Controlling shareholder's share increase plan (2nd time in 2024) | Other | Liaoning Huasheng and its concerted parties | Will not reduce their shareholdings in the listed company during the implementation period of this share increase and within the statutory period | From August 12, 2024, for 6 months (window period extended) | 6 months | Yes | 6 months | Yes | [7. Significant Litigation and Arbitration Matters](index=16&type=section&id=7.%20Significant%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company had two significant litigation and arbitration matters, both settled through mediation, involving outstanding debts and guarantee liabilities that are currently being fulfilled - Lujin Shenhua v. Huachen Auto Lease: The second instance of the Liaoning Provincial High People's Court concluded with mediation, where Huachen Auto Lease owed Lujin Shenhua a total of **CNY 23.38 million**, and Shenhua Holdings bore joint guarantee liability for **CNY 22.18 million** of this amount, with cash repayment currently underway[55](index=55&type=chunk)[56](index=56&type=chunk) - Lujin Shenhua v. Shenhua Holdings: The first instance of the Shenyang Intermediate People's Court concluded with mediation, requiring Shenhua Holdings to pay Lujin Shenhua **CNY 18.85 million** for vehicle disposal fees and interest, with the settlement currently being fulfilled[57](index=57&type=chunk) [10. Significant Related-Party Transactions](index=17&type=section&id=10.%20Significant%20Related-Party%20Transactions) The company has daily related-party transactions with Huachen BMW, primarily for purchasing goods and receiving services, and also has significant unsettled related-party creditor and debtor balances - The company conducts daily related-party transactions with Huachen BMW, with current period purchases and services received amounting to **CNY 1,423,094,216.72** and sales and services provided amounting to **CNY 33,206,828.79**[59](index=59&type=chunk)[433](index=433&type=chunk)[435](index=435&type=chunk) Related-Party Creditor and Debtor Balances (Period-End) | Related Party | Relationship | Period-End Balance of Funds Provided to Related Parties (CNY) | Period-End Balance of Funds Provided by Related Parties to Listed Company (CNY) | | :--- | :--- | :--- | :--- | | Dalian Huachen Dongjin United Automobile International Trade Co., Ltd. | Group Brother | 3,293,003.12 | | | Huachen Automobile Manufacturing Co., Ltd. | Other Related Party | 29,895.97 | | | Shanghai Litu Automobile Equipment Co., Ltd. | Joint Venture | 8,138,172.98 | | | Nantong Ouya Vehicle Co., Ltd. | Associate | 5,552,121.93 | | | Yunnan Fengfan Mingyou Automobile Sales Service Co., Ltd. | Joint Venture | 22,584,003.55 | | | Liaoning Shenhua Commodity Exchange Center Co., Ltd. | Associate | | 11,000,000.00 | | Suzhou Huaxi Automobile Sales Service Co., Ltd. | Associate | 2,364,126.00 | | | Shaanxi Shenhua Yongli Real Estate Co., Ltd. | Associate | | 286,120,000.00 | | Shanghai Jiaoyun Mingyou Automobile Sales Service Co., Ltd. | Associate | 879,079.56 | | | **Total** | | **42,840,403.11** | **297,120,000.00** | [11. Significant Contracts and Their Fulfillment](index=18&type=section&id=11.%20Significant%20Contracts%20and%20Their%20Fulfillment) During the reporting period, the company had significant guarantee situations, including guarantees for subsidiaries and joint ventures, with a total guarantee amount of CNY 440.47 million, accounting for 46% of the company's net assets Company's Total Guarantee Situation (Including Guarantees for Subsidiaries) | Indicator | Amount (CNY 10,000) | | :--- | :--- | | Total Guarantee Amount (A+B) | 44,046.61 | | Total Guarantee Amount as % of Company's Net Assets | 46 | | Amount of Guarantees Provided for Shareholders, Actual Controllers, and Their Related Parties (C) | 0 | | Debt Guarantee Amount Provided Directly or Indirectly for Guaranteed Parties with Asset-Liability Ratio Exceeding 70% (D) | 36,206.40 | | Amount of Total Guarantees Exceeding 50% of Net Assets (E) | 0 | | Total of the Above Three Guarantee Amounts (C+D+E) | 36,206.40 | - During the reporting period, the total amount of guarantees provided to subsidiaries was **CNY 1,721.25 million**, with a period-end balance of **CNY 381.31 million**[66](index=66&type=chunk) [13. Explanation of Other Significant Matters](index=19&type=section&id=13.%20Explanation%20of%20Other%20Significant%20Matters) During the reporting period, the company signed a long-term lease contract for part of the office space in Shenhua Financial Building and plans to use idle self-owned funds for entrusted wealth management - The company signed a "Lease Contract" with Shanghai Yaoying Hospital Co., Ltd., leasing part of the office space in Shenhua Financial Building, with a lease term from **April 1, 2025, to December 31, 2040**[67](index=67&type=chunk) - The company (including its controlled subsidiaries) plans to use part of its idle self-owned funds for entrusted wealth management in 2025, with a maximum daily balance of **CNY 200 million**, which can be cyclically invested and rolled over[67](index=67&type=chunk) [Section VI Share Changes and Shareholder Information](index=20&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital, shareholder structure, and the shareholdings of directors and senior management [1. Changes in Share Capital](index=20&type=section&id=1.%20Changes%20in%20Share%20Capital) The company's total share capital and share structure remained unchanged during the reporting period, while the controlling shareholder and its concerted parties completed two share increase plans, cumulatively increasing their shareholdings and consolidating control - During the reporting period, the company's total share capital and share structure remained unchanged[69](index=69&type=chunk) - Controlling shareholder Liaoning Huasheng completed its first share increase plan in 2024, cumulatively increasing the company's shares by **56,170,039 shares**, amounting to **CNY 69.68 million**, accounting for **2.89%** of the total share capital[70](index=70&type=chunk) - Liaoning Huasheng completed its second share increase plan in 2024, again increasing the company's shares by **13,359,400 shares**, amounting to **CNY 25.01 million**, accounting for **0.69%** of the total share capital[71](index=71&type=chunk) - After the two share increases, Shenqi Group, through its controlled entities, collectively held **515,894,705 shares** of the listed company, accounting for **26.51%** of the total share capital[71](index=71&type=chunk) [2. Shareholder Information](index=21&type=section&id=2.%20Shareholder%20Information) As of the end of the reporting period, the total number of common shareholders was 141,503, with the top three shareholders being state-owned legal entities, collectively holding over 25% of the shares and acting in concert - As of the end of the reporting period, the total number of common shareholders was **141,503 accounts**[73](index=73&type=chunk) Top Ten Shareholders' Shareholding (Period-End) | Shareholder Name | Period-End Shareholding (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Liaoning Huasheng Automotive Parts Co., Ltd. | 296,941,439 | 15.26 | State-owned Legal Entity | | Liaoning Zhengguo Investment Development Co., Ltd. | 197,280,000 | 10.14 | State-owned Legal Entity | | Huachen Automotive Group Holdings Co., Ltd. | 21,673,266 | 1.11 | State-owned Legal Entity | | Cao Zhengrong | 8,250,400 | 0.42 | Other | | Zhou Jianrong | 6,244,600 | 0.32 | Other | | Xiao Wenhui | 4,884,300 | 0.25 | Other | | J. P. Morgan Securities PLC－Own Funds | 4,833,185 | 0.25 | Other | | Sui Zhihui | 4,000,000 | 0.21 | Other | | Zhang Qi | 3,750,000 | 0.19 | Other | | Gu Bo | 3,200,000 | 0.16 | Other | - The top three shareholders, **Liaoning Huasheng Automotive Parts Co., Ltd., Liaoning Zhengguo Investment Development Co., Ltd., and Huachen Automotive Group Holdings Co., Ltd.**, are concerted parties[74](index=74&type=chunk) [3. Information on Directors and Senior Management](index=22&type=section&id=3.%20Information%20on%20Directors%20and%20Senior%20Management) During the reporting period, the shareholdings of some directors and senior management changed, with former Chairman and President Li Jingwei compliantly reducing his shareholding after his resignation Changes in Shareholdings of Directors and Senior Management | Name | Position | Beginning Shareholding (shares) | Period-End Shareholding (shares) | Change in Shareholding During Reporting Period (shares) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Du Bo | Director | 100,000 | 100,000 | 0 | -- | | Li Jingwei | Former Chairman, President (Resigned) | 200,000 | 2,000 | -18,000 | Resigned for over 6 months, compliant reduction | | Lin Shangtao | Former Vice President (Resigned) | 50,000 | 50,000 | 0 | -- | | Meng Lei | Former Board Secretary, CFO (Resigned) | 50,000 | 50,000 | 0 | -- | [Section VII Bond-Related Information](index=22&type=section&id=Section%20VII%20Bond-Related%20Information) This section confirms that the company had no corporate bonds, enterprise bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds during the reporting period [1. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=22&type=section&id=1.%20Corporate%20Bonds%20%28Including%20Enterprise%20Bonds%29%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) The company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during the current reporting period [2. Convertible Corporate Bonds](index=22&type=section&id=2.%20Convertible%20Corporate%20Bonds) The company had no convertible corporate bonds during the current reporting period [Section VIII Financial Report](index=23&type=section&id=Section%20VIII%20Financial%20Report) This section presents the company's unaudited financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with notes on basic information, accounting policies, taxation, and other significant financial details [1. Audit Report](index=23&type=section&id=1.%20Audit%20Report) This semi-annual report is unaudited - This semi-annual report is unaudited[6](index=6&type=chunk) [2. Financial Statements](index=23&type=section&id=2.%20Financial%20Statements) This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the company's financial position, operating results, and cash flow situation at the end of the reporting period [Consolidated Balance Sheet](index=23&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's consolidated total assets were CNY 2,986,431,075.11, a 9.65% decrease from the prior year-end; consolidated total liabilities were CNY 2,108,949,906.40; and total owners' equity attributable to the parent company was CNY 760,727,149.42, a 7.33% decrease from the prior year-end Major Data from Consolidated Balance Sheet (June 30, 2025 vs. December 31, 2024) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Total Assets | 2,986,431,075.11 | 3,305,254,178.95 | | Total Liabilities | 2,108,949,906.40 | 2,347,186,671.42 | | Total Owners' Equity Attributable to Parent Company | 760,727,149.42 | 820,890,018.67 | | Minority Interests | 116,754,019.29 | 137,177,488.86 | | Total Owners' Equity | 877,481,168.71 | 958,067,507.53 | [Parent Company Balance Sheet](index=26&type=section&id=Parent%20Company%20Balance%20Sheet) As of June 30, 2025, the parent company's total assets were CNY 3,007,438,293.63, a slight decrease from the prior year-end; total liabilities were CNY 2,540,216,305.28; and total owners' equity was CNY 467,221,988.35 Major Data from Parent Company Balance Sheet (June 30, 2025 vs. December 31, 2024) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Total Assets | 3,007,438,293.63 | 3,041,727,620.76 | | Total Liabilities | 2,540,216,305.28 | 2,550,251,905.22 | | Total Owners' Equity | 467,221,988.35 | 491,475,715.54 | [Consolidated Income Statement](index=28&type=section&id=Consolidated%20Income%20Statement) In the first half of 2025, the company's consolidated operating revenue was CNY 2,314,625,287.23, a 3.13% year-on-year increase, but both total profit and net profit attributable to parent company shareholders showed expanded losses Major Data from Consolidated Income Statement (First Half 2025 vs. First Half 2024) | Item | First Half 2025 (CNY) | First Half 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 2,314,625,287.23 | 2,244,413,702.03 | | Total Operating Costs | 2,402,168,248.62 | 2,305,725,514.83 | | Total Profit | -84,088,451.81 | -44,623,239.66 | | Net Profit | -68,581,338.82 | -40,712,582.76 | | Net Profit Attributable to Parent Company Shareholders | -59,313,460.38 | -38,927,118.04 | | Basic Earnings Per Share (CNY/share) | -0.0305 | -0.0200 | [Parent Company Income Statement](index=29&type=section&id=Parent%20Company%20Income%20Statement) In the first half of 2025, the parent company's operating revenue was CNY 16,391,684.85, and net profit was CNY -24,253,727.19, with losses expanding year-on-year Major Data from Parent Company Income Statement (First Half 2025 vs. First Half 2024) | Item | First Half 2025 (CNY) | First Half 2024 (CNY) | | :--- | :--- | :--- | | Operating Revenue | 16,391,684.85 | 18,126,634.90 | | Total Profit | -24,253,727.19 | -18,309,073.33 | | Net Profit | -24,253,727.19 | -18,309,073.33 | | Basic Earnings Per Share (CNY/share) | -0.0125 | -0.0094 | [Consolidated Cash Flow Statement](index=31&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first half of 2025, the company's net cash flow from operating activities significantly decreased by 80.74% to CNY 9,329,395.26, with negative net cash flows from investing and financing activities, resulting in a net decrease in cash and cash equivalents Major Data from Consolidated Cash Flow Statement (First Half 2025 vs. First Half 2024) | Item | First Half 2025 (CNY) | First Half 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 9,329,395.26 | 48,431,601.95 | | Net Cash Flow from Investing Activities | -4,891,212.78 | -5,372,030.69 | | Net Cash Flow from Financing Activities | -61,602,034.94 | -40,383,306.50 | | Net Increase in Cash and Cash Equivalents | -57,163,852.46 | 2,645,575.28 | | Period-End Cash and Cash Equivalents Balance | 143,251,060.97 | 114,409,263.56 | [Parent Company Cash Flow Statement](index=33&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In the first half of 2025, the parent company's net cash flow from operating activities was CNY 35,040,384.32, with positive net cash flow from investing activities and negative net cash flow from financing activities, resulting in a net increase in cash and cash equivalents Major Data from Parent Company Cash Flow Statement (First Half 2025 vs. First Half 2024) | Item | First Half 2025 (CNY) | First Half 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 35,040,384.32 | 32,496,632.20 | | Net Cash Flow from Investing Activities | 747,800.51 | 350,000.00 | | Net Cash Flow from Financing Activities | -32,079,195.84 | -32,457,393.06 | | Net Increase in Cash and Cash Equivalents | 3,708,988.99 | 389,239.14 | | Period-End Cash and Cash Equivalents Balance | 7,003,562.44 | 1,470,369.61 | [Consolidated Statement of Changes in Owners' Equity](index=34&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Owners%27%20Equity) In the first half of 2025, the company's consolidated total owners' equity decreased by CNY 80,586,338.82, primarily due to net losses attributable to parent company owners and minority interests Consolidated Statement of Changes in Owners' Equity (First Half 2025) | Item | Beginning Balance (CNY) | Current Period Change Amount (CNY) | Period-End Balance (CNY) | | :--- | :--- | :--- | :--- | | Total Owners' Equity Attributable to Parent Company | 820,890,018.67 | -60,162,869.25 | 760,727,149.42 | | Minority Interests | 137,177,488.86 | -20,423,469.57 | 116,754,019.29 | | Total Owners' Equity | 958,067,507.53 | -80,586,338.82 | 877,481,168.71 | [Parent Company Statement of Changes in Owners' Equity](index=36&type=section&id=Parent%20Company%20Statement%20of%20Changes%20in%20Owners%27%20Equity) In the first half of 2025, the parent company's total owners' equity decreased by CNY 24,253,727.19, mainly due to net profit losses Parent Company Statement of Changes in Owners' Equity (First Half 2025) | Item | Beginning Balance (CNY) | Current Period Change Amount (CNY) | Period-End Balance (CNY) | | :--- | :--- | :--- | :--- | | Total Owners' Equity | 491,475,715.54 | -24,253,727.19 | 467,221,988.35 | [3. Company Basic Information](index=38&type=section&id=3.%20Company%20Basic%20Information) This section introduces the company's registration information, listing status, and main business scope, confirming its primary engagement in automotive retail, building leasing, photovoltaic power generation, and real estate, and discloses that the financial statements were approved for issuance by the Board of Directors on August 26, 2025 - The company is a joint-stock limited company with publicly issued A-shares listed on the Shanghai Stock Exchange, registered at **Room 235, 2nd Floor, No. 109-1 Quanyun Road, Shenyang Area, China (Liaoning) Pilot Free Trade Zone**[104](index=104&type=chunk) - The Group primarily engages in **automotive retail, building leasing, photovoltaic power generation, and real estate businesses**[104](index=104&type=chunk) - These financial statements were approved for issuance by the company's Board of Directors on **August 26, 2025**[104](index=104&type=chunk) [4. Basis of Preparation of Financial Statements](index=38&type=section&id=4.%20Basis%20of%20Preparation%20of%20Financial%20Statements) The company's financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and relevant disclosure regulations of the China Securities Regulatory Commission, using the accrual basis and historical cost measurement, and assessing the company's good going concern ability - The financial statements are prepared on a **going concern basis**, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and "Rules for Information Disclosure by Companies Issuing Public Securities No. 15 - General Provisions for Financial Reports (Revised 2023)" by the China Securities Regulatory Commission[105](index=105&type=chunk) - The Group's accounting is based on the **accrual basis**, and except for certain financial instruments, all are measured at **historical cost**[105](index=105&type=chunk) - After assessment, the company's ability to continue as a going concern for **12 months** from the end of the reporting period is good, with no significant doubts[106](index=106&type=chunk) [5. Significant Accounting Policies and Accounting Estimates](index=38&type=section&id=5.%20Significant%20Accounting%20Policies%20and%20Accounting%20Estimates) This section details the company's specific accounting policies and estimates for revenue recognition, business combinations, financial instruments, inventories, long-term equity investments, fixed assets, intangible assets, impairment of long-term assets, employee compensation, provisions, government grants, deferred income tax, and leases, emphasizing significant accounting judgments and estimates made by management in these areas - The Group has formulated several specific accounting policies and estimates for transactions and events such as revenue recognition, based on its actual production and operation characteristics[107](index=107&type=chunk) - The company's financial statements comply with the requirements of enterprise accounting standards and truly and completely reflect the company's financial position, operating results, changes in shareholders' equity, and cash flows[108](index=108&type=chunk) - Significant accounting judgments and estimates include revenue recognition, leases, impairment of financial assets, inventory write-down provisions, fair value of financial instruments, impairment provisions for long-term assets, depreciation and amortization, deferred income tax assets, income tax, and provisions[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk) [6. Taxation](index=67&type=section&id=6.%20Taxation) This section lists the company's main tax categories and rates, including value-added tax, urban maintenance and construction tax, and corporate income tax, and discloses tax preferential policies enjoyed by subsidiaries, such as corporate income tax preferences for western development enterprises and small low-profit enterprises Major Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable income multiplied by the applicable tax rate to calculate output tax, and value-added tax is paid on the difference after deducting input tax allowed for the current period | 3%, 5%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Based on the actual amount of turnover tax paid | 1%, 5%, 7% | | Corporate Income Tax | Based on taxable income | 15%, 20%, 25% | - Subsidiaries Chuxiong Changxiang Photovoltaic Power Generation Co., Ltd., Chongqing Fuhua Automobile Sales Co., Ltd., and Chongqing Baosheng Automobile Sales Service Co., Ltd. qualify for the Western Development policy and are subject to corporate income tax at a reduced rate of **15%**[209](index=209&type=chunk) - Subsidiaries Shaanxi Huateng Commercial Management Co., Ltd., Shanghai Shenhua Financial Club Co., Ltd., and Sichuan Mingyou Automobile Service Co., Ltd. meet the criteria for small low-profit enterprises and enjoy **small low-profit enterprise income tax preferential policies**[209](index=209&type=chunk) [7. Notes to Consolidated Financial Statement Items](index=67&type=section&id=7.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section details the period-end balances, beginning balances, and changes of major items in the consolidated financial statements, including monetary funds, accounts receivable, inventories, long-term equity investments, fixed assets, intangible assets, goodwill, short-term borrowings, long-term borrowings, accounts payable, employee compensation payable, operating revenue and costs, various expenses, and gains/losses - Period-end balance of monetary funds was **CNY 263,353,697.52**, of which **CNY 120,102,636.55** was restricted, mainly for acceptance bill deposits, letter of guarantee deposits, and freezes[211](index=211&type=chunk) - Period-end book value of accounts receivable was **CNY 186,154,185.46**, with bad debt provisions of **CNY 185,522,932.73** already made, where a significant amount of bad debt provisions was individually recognized, mainly involving amounts expected to be unrecoverable[215](index=215&type=chunk)[216](index=216&type=chunk) - Period-end book value of inventories was **CNY 743,013,054.24**, with inventory write-down provisions of **CNY 342,051,155.67** already made, mainly including development costs and development products[258](index=258&type=chunk) - Period-end book value of long-term equity investments was **CNY 527,520,431.18**, with the investment in associate Shaanxi Shenhua Yongli Real Estate Co., Ltd. having the highest book value[265](index=265&type=chunk) - Goodwill original book value was **CNY 215,287,855.18**, with impairment provisions of **CNY 196,997,544.33** already made, mainly from Shanghai Shenhua Chenbao Automobile Co., Ltd. and Shanghai Hongxian Automobile Sales Service Co., Ltd.[288](index=288&type=chunk)[290](index=290&type=chunk) - Period-end balance of short-term borrowings was **CNY 365,539,380.67**, and long-term borrowings was **CNY 732,500,000.00**, with some borrowings pledged or mortgaged[298](index=298&type=chunk)[328](index=328&type=chunk) - Current period operating revenue and operating costs were **CNY 2,314,625,287.23** and **CNY 2,246,946,631.17**, respectively, primarily from automotive retail business[351](index=351&type=chunk) - Total profit was **CNY -84,088,451.81**, and net profit was **CNY -68,581,338.82**, mainly affected by total operating costs, investment losses, and credit impairment losses[88](index=88&type=chunk) [8. Changes in Consolidation Scope](index=100&type=section&id=8.%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company's consolidation scope decreased by one subsidiary, as Xiangning Shenhua Chenxing New Energy Co., Ltd. exited due to capital reduction - During the current period, subsidiary **Xiangning Shenhua Chenxing New Energy Co., Ltd.** exited due to capital reduction, reducing the consolidation scope by one entity[395](index=395&type=chunk) [9. Interests in Other Entities](index=101&type=section&id=9.%20Interests%20in%20Other%20Entities) This section details the company's interests in subsidiaries, joint ventures, and associates, including financial information for important non-wholly-owned subsidiaries and situations where joint ventures or associates incurred excess losses - The company owns multiple subsidiaries, with main operating and registered locations in Shanghai, Chengdu, Dalian, Shaanxi, Yunnan, Hunan, etc., and business natures covering investment platforms, automotive sales, new energy, real estate development, and service industries[397](index=397&type=chunk)[398](index=398&type=chunk) Financial Information of Important Non-Wholly-Owned Subsidiaries (First Half 2025) | Subsidiary Name | Minority Shareholding Ratio (%) | Current Period Profit/Loss Attributable to Minority Shareholders (CNY) | Current Period Dividends Declared to Minority Shareholders (CNY) | Period-End Minority Shareholder Equity Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Yixing Baolifeng Automobile Sales Service Co., Ltd. | 15% | -1,834,223.23 | | 5,736,460.58 | | Nanjing Baolifeng Automobile Sales Service Co., Ltd. | 49% | -3,838,840.33 | | 5,470,837.75 | | Chongqing Baosheng Automobile Sales Service Co., Ltd. | 49% | 141,899.26 | 7,350,000.00 | 56,101,315.83 | - The company's important associates include **Shaanxi Shenhua Yongli Real Estate Co., Ltd.** and **Lujin Shenhua Financial Leasing (Shanghai) Co., Ltd.**, which are engaged in real estate development and financial leasing businesses, respectively[404](index=404&type=chunk) - Some joint ventures or associates incurred excess losses, such as **Nantong Ouya Vehicle Co., Ltd.** and **Shanghai Jiaoyun Mingyou Automobile Sales Service Co., Ltd.**, with a significant cumulative amount of unrecognized losses[407](index=407&type=chunk) [10. Government Grants](index=105&type=section&id=10.%20Government%20Grants) This section discloses the government grants received by the company during the reporting period, totaling CNY 7,163,060.13 recognized in current period profit or loss, primarily from commercial retail policy rewards and on-time project completion performance rewards Liability Items Related to Government Grants (Deferred Income) | Financial Statement Item | Beginning Balance (CNY) | Current Period New Grant Amount (CNY) | Current Period Amount Recognized in Non-Operating Income (CNY) | Current Period Transferred to Other Income (CNY) | Period-End Balance (CNY) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 6,701,403.33 | | | 112,945.02 | 6,588,458.31 | Asset Related | Government Grants Recognized in Current Period Profit or Loss (First Half 2025) | Type | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Asset Related | 112,945.02 | 1,432,945.19 | | Income Related | 7,050,115.11 | 409,740.24 | | **Total** | **7,163,060.13** | **1,842,685.43** | - Current period government grants mainly include **CNY 6,883,888.85** for 2024 commercial retail policy rewards and **CNY 112,945.02** for on-time project completion performance rewards[411](index=411&type=chunk) [11. Risks Related to Financial Instruments](index=106&type=section&id=11.%20Risks%20Related%20to%20Financial%20Instruments) This section analyzes the market risks (including exchange rate risk, interest rate risk, and other price risks), credit risk, and liquidity risk faced by the company, and how these risks are managed - The company's main financial instruments include equity investments, borrowings, receivables, and payables, with risk management aiming to **balance risk and return**, minimizing the negative impact of risks on operating performance[412](index=412&type=chunk) - Exchange rate risk has **no significant impact** on the company's main and ongoing operations, as operations are all within China and primarily settled in RMB[414](index=414&type=chunk) Interest Rate Risk Sensitivity Analysis (Impact on Net Profit and Shareholders' Equity) | Item | Impact on Profit (CNY) | Impact on Shareholders' Equity (CNY) | | :--- | :--- | :--- | | RMB Benchmark Interest Rate Increase of 15 Basis Points | -307,717.45 | -307,717.45 | | RMB Benchmark Interest Rate Decrease of 15 Basis Points | 307,717.45 | 307,717.45 | Other Price Risk Sensitivity Analysis (Impact on Net Profit and Shareholders' Equity) | Item | Impact on Net Profit (CNY) | Impact on Shareholders' Equity (CNY) | | :--- | :--- | :--- | | Fair Value of Equity Instrument Investments Increases by 5% | | 2,686,591.55 | | Fair Value of Equity Instrument Investments Decreases by 5% | | -2,686,591.55 | | Fair Value of Other Non-Current Financial Assets Increases by 5% | 407,254.50 | | | Fair Value of Other Non-Current Financial Assets Decreases by 5% | -407,254.50 | | - Credit risk mainly arises from monetary funds, notes receivable, dividends receivable, accounts receivable, and other receivables, which the company controls by **assessing customer creditworthiness and regular monitoring**[418](index=418&type=chunk)[419](index=419&type=chunk) - Liquidity risk is managed by **maintaining sufficient cash and cash equivalents**, monitoring the use of bank borrowings, and ensuring standby funds[419](index=419&type=chunk) [12. Disclosure of Fair Value](index=109&type=section&id=12.%20Disclosure%20of%20Fair%20Value) This section discloses the period-end fair values of assets and liabilities measured at fair value, primarily including other equity instrument investments and other non-current financial assets, with valuation methods varying based on asset type Period-End Fair Value of Assets Measured at Fair Value | Item | Level 1 Fair Value Measurement (CNY) | Level 3 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | :--- | | Other Equity Instrument Investments | | 53,731,831.04 | 53,731,831.04 | | Other Non-Current Financial Assets | 8,145,090.00 | | 8,145,090.00 | | **Total Assets Continuously Measured at Fair Value** | **8,145,090.00** | **53,731,831.04** | **61,876,921.04** | - Other non-current financial assets (e.g., Jinbei Automobile, First Pharmaceutical shares) are valued at fair value based on **public market quotations**[423](index=423&type=chunk) - Other equity instrument investments (e.g., Dalian Dagao Valve Co., Ltd.) are valued at fair value using **comparable market methods**; some invested enterprises with poor operating conditions (e.g., Shanghai Laifu, Huachen Automobile Investment) are assessed with a fair value of **CNY 0**[424](index=424&type=chunk) - The fair value of financial assets and liabilities measured at amortized cost approximates their book value[426](index=426&type=chunk) [13. Related Parties and Related-Party Transactions](index=110&type=section&id=13.%20Related%20Parties%20and%20Related-Party%20Transactions) This section details the company's parent company, subsidiaries, joint ventures and associates, and other related parties, and lists related-party transactions during the reporting period, including purchases and sales of goods, provision and acceptance of services, related-party leases, related-party guarantees, and related-party fund borrowings - The company's ultimate controlling party is the **Shenyang State-owned Assets Supervision and Administration Commission**[427](index=427&type=chunk) - Parent companies include **Liaoning Huasheng Automotive Parts Co., Ltd., Liaoning Zhengguo Investment Development Co., Ltd., and Huachen Automotive Group Holdings Co., Ltd.**[427](index=427&type=chunk) - The company has significant related-party transactions for purchases and sales of goods and services with Huachen BMW Automobile Co., Ltd., with current period purchases amounting to **CNY 1,423,094,216.72** and sales amounting to **CNY 33,206,828.79**[433](index=433&type=chunk)[435](index=435&type=chunk) - The company, as guarantor, provides guarantees for multiple subsidiaries, including Chuxiong Changxiang Photovoltaic Power Generation Co., Ltd. and Wuhu Baolisheng Automobile Sales Service Co., Ltd., with a significant total guarantee amount[441](index=441&type=chunk) - The company has provided funds to related parties, with some amounts unrecoverable due to the deteriorating operating conditions of related parties, and **full impairment provisions have been made**[440](index=440&type=chunk)[442](index=442&type=chunk) - Receivables from related parties include accounts receivable, prepayments, and other receivables, with significant amounts from **Huachen BMW Automobile Co., Ltd.** and **Yunnan Fengfan Mingyou Automobile Sales Service Co., Ltd.**, among others[443](index=443&type=chunk) - Payables to related parties include notes payable, accounts payable, and other payables, with significant amounts from **Shaanxi Shenhua Yongli Real Estate Co., Ltd.** and **Dongtou (Beijing) Energy Co., Ltd.**, among others[444](index=444&type=chunk)[445](index=445&type=chunk) [14. Commitments and Contingencies](index=116&type=section&id=14.%20Commitments%20and%20Contingencies) This section discloses the company's significant external commitments at the end of the reporting period, primarily a guarantee for Shenyang Huabao Automobile Sales Service Co., Ltd. amounting to CNY 59,159,117.10, which has not yet been fulfilled - The company provided a guarantee for Shenyang Huabao Automobile Sales Service Co., Ltd., with a guarantee amount of **CNY 59,159,117.10**, starting on **January 20, 2025**, and maturing on **April 22, 2026**, which has not yet been fulfilled[446](index=446&type=chunk) [15. Post-Balance Sheet Events](index=116&type=section&id=15.%20Post-Balance%20Sheet%20Events) The company had no significant non-adjusting events, profit distribution, or sales returns as post-balance sheet events during the current reporting period [16. Other Significant Matters](index=116&type=section&id=16.%20Other%20Significant%20Matters) This section discloses that the company's controlling shareholder completed two share increase plans, further consolidating control, and the company established a joint venture with Shuocheng Technology to develop AI predictive maintenance services for automotive intelligent manufacturing and industrial production - Controlling shareholder Liaoning Huasheng completed two share increase plans, cumulatively increasing the company's shares by over **70 million shares**, accounting for **3.58%** of the company's total share capital, with Shenqi Group, through its controlled entities, collectively holding **26.51%** of the listed company's shares[451](index=451&type=chunk)[452](index=452&type=chunk) - The company established Shenwei Exploration (Shenyang) Technology Co., Ltd. as a joint venture with Shuocheng Technology, with a registered capital of **CNY 10 million**, where the company invested **CNY 5.1 million**, holding a **51% stake**[452](index=452&type=chunk) - The joint venture will leverage the company's resources in the automotive industry and Shuocheng Technology's AI operation and maintenance capabilities to develop **AI predictive maintenance services** for automotive intelligent manufacturing and industrial production in the northern region[453](index=453&type=chunk) [17. Notes to Parent Company Financial Statement Major Items](index=117&type=section&id=17.%20Notes%20to%20Parent%20Company%20Financial%20Statement%20Major%20Items) This section details the notes to major items in the parent company's financial statements, including accounts receivable, other receivables, and long-term equity investments, highlighting their book values and associated impairment provisions - Period-end book value of parent company's accounts receivable was **CNY 95,071,411.41**, with bad debt provisions of **CNY 5,042,927.20** already made[457](index=457&type=chunk) - Period-end book value of parent company's other receivables was **CNY 1,221,703,203.23**, with intercompany balances within the consolidation scope accounting for a larger proportion, and bad debt provisions of **CNY 331,636,403.79** already made[464](index=464&type=chunk)[470](index=470&type=chunk)[472](index=472&type=chunk) - Period-end book value of parent company's long-term equity investments was **CNY 1,368,547,171.43**, including **CNY 1,337,893,761.71** in investments in subsidiaries and **CNY 30,653,409.72** in investments in associates and joint ventures[478](index=478&type=chunk) - Period-end balance of impairment provisions for parent company's investments in subsidiaries was **CNY 584,859,889.90**, and for investments in associates and joint ventures was **CNY 4,268,811.63**[479](index=479&type=chunk)[481](index=481&type=chunk) - Parent company's investment income for the current period was **CNY -1,609,595.44**, primarily from long-term equity investments accounted for using the equity method[482](index=482&type=chunk) [18. Supplementary Information](index=124&type=section&id=18.%20Supplementary%20Information) This section provides supplementary information, including a detailed statement of non-recurring gains and losses, and return on net assets and earnings per share, showing total non-recurring gains and losses of CNY 2,483,257.94 and negative basic and diluted earnings per share Detailed Statement of Current Period Non-Recurring Gains and Losses | Item | Amount (CNY) | | :--- | :--- | | Disposal Gains and Losses of Non-Current Assets | -439,762.43 | | Government Grants Recognized in Current Period Profit or Loss | 7,163,060.13 | | Gains and Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities Held by Non-Financial Enterprises | -308,285.63 | | Other Non-Operating Income and Expenses | 135,438.09 | | Less: Income Tax Impact | 1,561,448.36 | | Minority Interest Impact (After Tax) | 2,505,743.86 | | **Total** | **2,483,257.94** | Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Earnings Per Share (CNY/share) | | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders of the Company | -7.496 | -0.0305 | | Net Profit Attributable to Common Shareholders of the Company After Deducting Non-Recurring Gains and Losses | -7.810 | -0.0317 |

公司代码：600916 公司简称：中国黄金 中国黄金集团黄金珠宝股份有限公司2025 年半年度报告 1 / 181 中国黄金集团黄金珠宝股份有限公司2025 年半年度报告 中国黄金集团黄金珠宝股份有限公司 2025 年半年度报告 2 / 181 中国黄金集团黄金珠宝股份有限公司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、 公司负责人刘科军、主管会计工作负责人吴义东及会计机构负责人（会计主管人员）沈轶 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，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 ...