鸿合科技股份有限公司 2025 年半年度报告全文 鸿合科技股份有限公司 2025 年半年度报告 2025 年 8 月 1 公司负责人孙晓蔷、主管会计工作负责人冷宏俊及会计机构负责人(会计 主管人员)谢芳声明：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计划、发展战略等前瞻性陈述，属于计划性事项， 不构成公司对投资者的实质性承诺，敬请投资者注意投资风险。 公司在本报告"第三节管理层讨论与分析"之"十、公司面临的风险和 应对措施"部分，详细描述了公司经营中未来将面临的主要风险及应对措施， 敬请投资者关注相关内容。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | 目录 | | --- | 鸿合科技股份有限公司 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。 | 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 ...

Section I Important Notes, Table of Contents, and Definitions This section provides crucial disclaimers, lists the report's structure, and defines key terms for accurate understanding [Important Notes](index=2&type=section&id=Important%20Notes) The company's board of directors, supervisory board, and senior management guarantee the report's accuracy and completeness, with no plans for cash dividends or bonus shares - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content and assume legal responsibility[3](index=3&type=chunk) - The company's principal officer, head of accounting, and head of accounting department declare the financial report is true, accurate, and complete[3](index=3&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This report's clear table of contents outlines eight main chapters, covering company overview, financial indicators, management discussion, governance, significant matters, share changes, bond information, and financial reports - The report comprises eight main sections, from company profile to financial statements, presenting a complete structure[6](index=6&type=chunk) [List of Reference Documents](index=4&type=section&id=List%20of%20Reference%20Documents) Reference documents include original signed financial statements, audit reports, disclosed files, and the semi-annual report text, all available at the board of directors' office - Reference documents include financial statements, audit reports, original disclosure files, and are available at the Board of Directors' Office[8](index=8&type=chunk)[9](index=9&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section defines key terms used in the report, such as regulatory bodies, company entities, reporting periods, and relevant laws, ensuring accurate understanding of the content - This section clearly defines key terms in the report, including regulatory bodies, company entities, reporting period, and relevant laws and regulations[10](index=10&type=chunk) Section II Company Profile and Key Financial Indicators This section introduces the company's basic information, contact details, and presents its key accounting data and financial performance [I. Company Profile](index=6&type=section&id=I.%20Company%20Profile) Huizhou DBG Technology Co., Ltd. (stock code: 300735) is listed on the Shenzhen Stock Exchange, with Tang Jianxing as its legal representative and DBG as its English abbreviation - The company's stock abbreviation is 'DBG Technology', stock code '300735', listed on the Shenzhen Stock Exchange[12](index=12&type=chunk) - The company's legal representative is Tang Jianxing, and its English name abbreviation is DBG[12](index=12&type=chunk) [II. Contact Person and Information](index=6&type=section&id=II.%20Contact%20Person%20and%20Information) The company's Board Secretary is Xu Yusheng, and Securities Affairs Representative is Zhen Jingmei, both located at No. 5 Yongda Road, Xiangshuihe Industrial Park, Daya Bay, Huizhou, with provided contact details - The Board Secretary is Xu Yusheng, the Securities Affairs Representative is Zhen Jingmei, and the contact address is No. 5 Yongda Road, Xiangshuihe Industrial Park, Daya Bay, Huizhou[13](index=13&type=chunk) - Contact phone number is 0752-5108688, and email address is ir@dbg.ltd[13](index=13&type=chunk) [III. Other Information](index=6&type=section&id=III.%20Other%20Information) During the reporting period, there were no changes in the company's contact information, information disclosure, or registration details, with specific information available in the 2024 annual report - The company's registered address, office address, website, email, and other contact information remained unchanged during the reporting period[14](index=14&type=chunk) - Information disclosure and storage locations remained unchanged during the reporting period[15](index=15&type=chunk) - The company's registration status remained unchanged during the reporting period[16](index=16&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=7&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In the first half of 2025, the company's operating revenue and net profit attributable to shareholders slightly increased, but net cash flow from operating activities significantly decreased, while total assets grew and net assets attributable to shareholders slightly declined Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (RMB) | Prior Period (RMB) | YoY Change | End of Current Period (RMB) | End of Prior Year (RMB) | Change from Prior Year-End | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 3,318,487,184.25 | 3,312,943,043.66 | 0.17% | - | - | - | | Net Profit Attributable to Shareholders of Listed Company | 99,343,089.26 | 98,886,565.57 | 0.46% | - | - | - | | Net Profit Attributable to Shareholders of Listed Company After Non-Recurring Gains and Losses | 85,883,245.28 | 80,110,399.07 | 7.21% | - | - | - | | Net Cash Flow from Operating Activities | 452,037,120.06 | 725,643,573.09 | -37.71% | - | - | - | | Basic Earnings Per Share (RMB/share) | 0.1294 | 0.1284 | 0.78% | - | - | - | | Diluted Earnings Per Share (RMB/share) | 0.1294 | 0.1284 | 0.78% | - | - | - | | Weighted Average Return on Net Assets | 2.00% | 2.04% | -0.04% | - | - | - | | Total Assets | - | - | - | 9,622,113,760.25 | 8,219,596,738.57 | 17.06% | | Net Assets Attributable to Shareholders of Listed Company | - | - | - | 4,843,455,567.27 | 4,937,688,894.89 | -1.91% | [V. Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=7&type=section&id=V.%20Differences%20in%20Accounting%20Data%20under%20Domestic%20and%20Overseas%20Accounting%20Standards) During the reporting period, the company reported no differences in net profit and net assets between international or overseas accounting standards and Chinese accounting standards - The company reported no differences in net profit and net assets under domestic and overseas accounting standards during the reporting period[18](index=18&type=chunk)[19](index=19&type=chunk) [VI. Non-Recurring Gains and Losses Items and Amounts](index=7&type=section&id=VI.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) The company's total non-recurring gains and losses amounted to **RMB 13.46 million** during the reporting period, primarily from government grants and fair value changes of financial assets, after deducting income tax and minority interest impacts Non-Recurring Gains and Losses Items and Amounts for H1 2025 | Item | Amount (RMB) | | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | -27,015.33 | | Government Grants Recognized in Current Profit or Loss | 13,966,310.22 | | Gains and Losses from Changes in Fair Value of Financial Assets and Liabilities Held by Non-Financial Enterprises, and from Disposal of Financial Assets and Liabilities, Excluding Effective Hedge Accounting Related to Normal Business Operations | 1,859,017.69 | | Other Non-Operating Income and Expenses Apart from the Above | -389,234.53 | | Less: Income Tax Impact | 1,942,855.96 | | Minority Interest Impact (After Tax) | 6,378.11 | | Total | 13,459,843.98 | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor has it classified non-recurring gains and losses as recurring gains and losses[22](index=22&type=chunk) Section III Management Discussion and Analysis This section provides an in-depth analysis of the company's main business, core competencies, financial performance, investment activities, and risk factors [I. Company's Main Business Activities During the Reporting Period](index=9&type=section&id=I.%20Company%27s%20Main%20Business%20Activities%20During%20the%20Reporting%20Period) The company primarily engages in EMS business, providing assembly services for consumer electronics, network communications, automotive electronics, and new energy products, covering the entire manufacturing process from procurement to logistics, driven by quality control, project completion, and global expansion - The company's main business is EMS, providing semi-finished and finished product assembly services for consumer electronics, network communications, automotive electronics, and new energy electronic products[24](index=24&type=chunk) - The business model includes a 'production-driven procurement' model, a 'sales-driven production' model, and a direct sales model[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - Performance drivers include quality control capabilities, the completion of fundraising projects (Huizhou Phase II and III intelligent production bases, Shenzhen Pingshan new base expected to be operational in 2025), and global expansion (India, Vietnam, Bangladesh, and the acquisition of French AC company)[29](index=29&type=chunk)[30](index=30&type=chunk) 1. Main Business and Products The company primarily provides electronic manufacturing services (EMS) for consumer electronics, network communications, automotive electronics, and new energy products, including smart phones, tablets, and automotive electronics - The company's main business is EMS, providing semi-finished and finished product assembly services for consumer electronics, network communications, automotive electronics, and new energy products[24](index=24&type=chunk) - Services include process technology R&D, process design, procurement management, production control, and warehousing logistics[24](index=24&type=chunk) 2. Main Business Model The company operates on an EMS model, offering customized manufacturing services with "production-driven procurement," "sales-driven production" focusing on quality, and direct sales to renowned brand or ODM clients - The procurement model is 'production-driven procurement', divided into domestic and overseas procurement, with a strict supplier management system established[25](index=25&type=chunk)[26](index=26&type=chunk) - The production model is 'sales-driven production', with IQC, PQC, FQC, and other quality inspection positions at key nodes[26](index=26&type=chunk) - The sales model is direct sales, with customers primarily being well-known domestic and international electronic brand owners or ODM enterprises, requiring strict qualification review[27](index=27&type=chunk)[28](index=28&type=chunk) 3. Key Performance Drivers The company's performance growth is primarily driven by its excellent quality control, increased capacity and信息化升级 from completed fundraising projects (Huizhou Phase II and III, Shenzhen Pingshan new base), and global expansion through investments and acquisitions in India, Vietnam, Bangladesh, and France - The company's quality control capabilities are highly recognized, evidenced by multiple management system certifications and honors such as 'Huawei Best Collaboration Award' and 'Xiaomi Best Partner Award'[29](index=29&type=chunk)[33](index=33&type=chunk) - The fundraising projects, Huizhou Phase II and III intelligent production bases, have reached full capacity, and the Shenzhen Pingshan intelligent manufacturing base is expected to be gradually put into use in 2025, further enhancing production capacity and automation levels[29](index=29&type=chunk) - Through the controlling acquisition of DBG India, establishment of bases in Vietnam and Bangladesh, and the acquisition of French AC company in May 2025, the company has initially completed its global layout to address international trade dynamics[30](index=30&type=chunk)[31](index=31&type=chunk) [II. Analysis of Core Competencies](index=10&type=section&id=II.%20Analysis%20of%20Core%20Competencies) The company's core competencies include a global manufacturing footprint, rapid market response, superior quality control, extensive customer resources, advanced manufacturing capabilities from continuous R&D and automation, an experienced management team, and a total cost leadership advantage through lean production - The company has completed its global manufacturing layout across Asia, Europe, America, and Africa, effectively responding to international trade tariff policies[31](index=31&type=chunk) - Possesses rapid response capabilities with quick new product introduction, short production cycles, and fast warehousing and distribution, adapting to the trend of shortened electronic product lifecycles[32](index=32&type=chunk) - Demonstrates excellent quality control advantages through ISO series certifications and customer honors[33](index=33&type=chunk) - Possesses high-quality customers such as Huawei, Honor, and Xiaomi, with customer resources widely distributed across consumer electronics, automotive electronics, network communications, IoT, and new energy sectors[35](index=35&type=chunk) - In the past five years, accumulated investments of nearly **RMB 500 million** in technological innovation and over **RMB 2 billion** in equipment upgrades and technological transformation, achieving highly automated SMT 03015 fine component placement and complete machine assembly[36](index=36&type=chunk) - The management team is stable, and technical backbones have rich professional backgrounds, possessing deep industry understanding and strategic formulation capabilities[37](index=37&type=chunk) - Under the guidance of lean production, an efficient and economical culture has been established, with 95 patented technologies and 21 software copyrights, forming a total cost leadership advantage[38](index=38&type=chunk) [III. Analysis of Main Business](index=11&type=section&id=III.%20Analysis%20of%20Main%20Business) In the first half of 2025, the company's performance showed stable growth, with slight increases in operating revenue and net profit attributable to shareholders, significant growth in automotive electronics, stable consumer electronics, and a substantial decrease in income tax expenses, while net cash flow from operating activities declined - In the first half of 2025, the company's operating revenue was **RMB 3.318 billion**, a year-on-year increase of **0.17%**; net profit attributable to shareholders of the listed company was **RMB 99.34 million**, a year-on-year increase of **0.46%**[39](index=39&type=chunk) - In the second quarter, operating revenue reached **RMB 2.123 billion**, a year-on-year increase of **28.61%** and a quarter-on-quarter increase of **77.51%**; net profit attributable to shareholders of the listed company was **RMB 63.90 million**, a year-on-year increase of **61.89%** and a quarter-on-quarter increase of **80.31%**[39](index=39&type=chunk) - Automotive electronics business achieved significant growth, while consumer electronics business remained stable[39](index=39&type=chunk) Year-on-Year Changes in Key Financial Data for H1 2025 | Indicator | Current Period (RMB) | Prior Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 3,318,487,184.25 | 3,312,943,043.66 | 0.17% | - | | Operating Cost | 2,934,655,043.78 | 2,908,741,841.34 | 0.89% | - | | Selling Expenses | 19,624,053.02 | 16,377,277.39 | 19.82% | - | | Administrative Expenses | 198,075,706.16 | 170,991,766.38 | 15.84% | - | | Financial Expenses | -20,148,805.70 | -12,194,143.95 | 65.23% | Primarily due to reduced interest expenses and exchange losses | | Income Tax Expense | 4,461,767.66 | 30,246,062.71 | -85.25% | Primarily due to higher profit contributions from subsidiaries with higher applicable income tax rates in the prior period; increased profit contributions from subsidiaries still in tax exemption periods or with lower tax rates in the current period led to a decrease in income tax expense | | R&D Investment | 71,224,594.91 | 80,883,562.67 | -11.94% | - | | Net Cash Flow from Operating Activities | 452,037,120.06 | 725,643,573.09 | -37.71% | In the prior period, some customers changed payment methods from credit terms to advance payments, resulting in better sales collection in that period | | Net Cash Flow from Investing Activities | 412,120,672.02 | -1,599,017,432.39 | -125.77% | Primarily due to redemption of wealth management products in the current period | | Net Cash Flow from Financing Activities | -557,265,833.61 | 66,413,233.21 | -939.09% | Primarily due to increased net repayment of borrowings in the current period | | Net Increase in Cash and Cash Equivalents | 303,273,582.40 | -813,280,211.64 | -137.29% | - | Products or Services Accounting for Over 10% of Revenue in H1 2025 | Product or Service Category | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Profit Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Consumer Electronics | 1,834,371,594.32 | 1,575,212,665.88 | 14.13% | -22.81% | -23.18% | 0.42% | | Automotive Electronics | 1,144,186,283.40 | 1,062,467,285.19 | 7.14% | 61.32% | 56.88% | 2.63% | [IV. Analysis of Non-Core Business](index=12&type=section&id=IV.%20Analysis%20of%20Non-Core%20Business) The company's non-core business income primarily stems from government grants, with investment income and fair value changes also contributing, while asset impairment and non-operating income/expenses had minor, non-sustainable impacts on total profit Analysis of Non-Core Business for H1 2025 | Item | Amount (RMB) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 868,462.46 | 0.75% | Wealth management income | No | | Gains and Losses from Fair Value Changes | 1,067,287.80 | 0.92% | Fair value changes of financial assets held for trading | No | | Asset Impairment | -1,636,597.77 | -1.41% | Primarily due to increased provision for inventory depreciation and doubtful accounts | No | | Non-Operating Income | 1,184,573.25 | 1.02% | - | No | | Non-Operating Expenses | 896,301.43 | 0.77% | - | No | | Other Income | 18,939,988.76 | 16.31% | Primarily government grants | No | | Gains from Asset Disposal | -27,015.33 | -0.02% | Gains from disposal of non-current assets | No | [V. Analysis of Assets and Liabilities](index=13&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, total assets increased by **17.06%** year-on-year, driven by M&A and long-term investments, with significant increases in inventory, fixed assets, construction in progress, and goodwill due to the AC company consolidation, while some assets are restricted for bank credit and guarantees Significant Changes in Asset Composition for H1 2025 | Item | Amount at End of Current Period (RMB) | Proportion of Total Assets | Amount at Prior Year-End (RMB) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 1,972,304,323.53 | 20.50% | 2,388,589,554.49 | 29.06% | -8.56% | Primarily due to significant cash outflows for current period M&A of subsidiaries and other long-term asset investments | | Accounts Receivable | 1,746,220,575.87 | 18.15% | 1,365,687,577.01 | 16.62% | 1.53% | - | | Inventories | 894,690,098.37 | 9.30% | 307,692,235.91 | 3.74% | 5.56% | Primarily due to significant increase in inventories from the consolidation of acquired AC company in the current period | | Fixed Assets | 3,087,110,534.47 | 32.08% | 2,315,335,667.47 | 28.17% | 3.91% | Due to consolidation of AC company and increased investment in plant and equipment | | Construction in Progress | 617,796,821.97 | 6.42% | 393,238,583.11 | 4.78% | 1.64% | - | | Long-Term Borrowings | 129,491,310.46 | 1.35% | 0.00 | 0.00% | 1.35% | - | | Goodwill | 120,897,915.78 | 1.26% | 14,451,892.66 | 0.18% | 1.08% | Due to increased goodwill from the acquisition of AC company | Key Overseas Assets for H1 2025 | Specific Asset Content | Reason for Formation | Asset Scale (RMB billion) | Location | Operating Model | Proportion of Overseas Assets to Company's Net Assets | Significant Impairment Risk | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | DBG Technology (India) Private Limited | Business Combination Not Under Common Control | 1.26 | India | Electronics Manufacturing | 23.29% | No | | All Circuits S.A.S. | Business Combination Not Under Common Control | 2.346 | France, Mexico, Tunisia | Electronics Manufacturing | 43.30% | No | | DBG Technology (Vietnam) Co. Ltd. | Establishment | 0.885 | Vietnam | Electronics Manufacturing | 16.33% | No | Assets and Liabilities Measured at Fair Value for H1 2025 | Item | Beginning Balance (RMB) | Fair Value Change Gains/Losses for Current Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | | Financial Assets Held for Trading | 140,698,867.89 | 2,348,745.45 | 68,206,987.14 | | Financial Liabilities | 0.00 | 1,147,216.93 | 6,547,886.31 | Asset Restriction Status as of H1 2025 | Item | Book Balance (RMB) | Book Value (RMB) | Restriction Type | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 351,614,411.28 | 351,614,411.28 | Pledged for bank comprehensive credit line and letter of guarantee | | Fixed Assets | 690,375,634.57 | 291,792,819.64 | Pledged for bank comprehensive credit line and letter of guarantee | | Intangible Assets | 70,761,000.00 | 65,650,483.40 | Pledged for bank comprehensive credit line | | Total | 1,112,751,045.85 | 709,057,714.32 | - | [VI. Analysis of Investment Status](index=15&type=section&id=VI.%20Analysis%20of%20Investment%20Status) During the reporting period, the company acquired 100% equity of French All Circuits S.A.S. for **RMB 730 million**, advancing its global strategy, while also progressing with the Pingshan intelligent manufacturing base and Vietnam plant construction, and engaging in wealth management and derivative investments for hedging purposes Significant Equity Investments for H1 2025 | Investee Company Name | Main Business | Investment Method | Investment Amount (RMB) | Shareholding Ratio | Source of Funds | Investment Progress | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | All Circuits S.A.S. | Electronics Manufacturing | Acquisition | 730,071,681.01 | 100.00% | Own Funds | Completed | Significant Ongoing Non-Equity Investments for H1 2025 | Project Name | Investment Method | Is it Fixed Asset Investment | Amount Invested in Current Period (RMB) | Cumulative Actual Investment Amount as of End of Reporting Period (RMB) | Project Progress | | :--- | :--- | :--- | :--- | :--- | :--- | | Pingshan District DBG Technology Intelligent Park | Self-built | Yes | 78,922,369.07 | 351,167,412.44 | 95.00% | | Vietnam Plant Construction Project | Self-built | Yes | 91,069,306.43 | 91,069,306.43 | 70.00% | Financial Assets Measured at Fair Value for H1 2025 | Asset Category | Initial Investment Cost (RMB) | Fair Value Change Gains/Losses for Current Period (RMB) | Ending Balance (RMB) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | | Other | 110,546,883.08 | 2,088,090.62 | 68,206,987.14 | Own Funds | | Stocks | 31,166,635.50 | 260,654.83 | 0.00 | Own Funds | | Total | 141,713,518.58 | 2,348,745.45 | 68,206,987.14 | - | - During the reporting period, wealth management transactions amounted to **RMB 500 million**, all in bank wealth management products, with no overdue unrecovered amounts[64](index=64&type=chunk) - The actual gain/loss from derivative investments in forward foreign exchange contracts for hedging purposes was **RMB 1.1472 million**, effectively mitigating exchange rate fluctuation risks[65](index=65&type=chunk) [VII. Significant Asset and Equity Disposals](index=18&type=section&id=VII.%20Significant%20Asset%20and%20Equity%20Disposals) During the reporting period, the company did not engage in any significant asset or equity disposals - The company did not dispose of any significant assets during the reporting period[69](index=69&type=chunk) - The company did not dispose of any significant equity during the reporting period[70](index=70&type=chunk) [VIII. Analysis of Major Holding and Participating Companies](index=19&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) During the reporting period, the company had no major holding or participating companies requiring disclosure - The company had no important holding or participating company information to disclose during the reporting period[71](index=71&type=chunk) [IX. Information on Structured Entities Controlled by the Company](index=19&type=section&id=IX.%20Information%20on%20Structured%20Entities%20Controlled%20by%20the%20Company) During the reporting period, the company did not control any structured entities - The company did not control any structured entities during the reporting period[72](index=72&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=19&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces risks from international instability and rising labor costs, addressing these by expanding overseas markets, cultivating international talent, and continuously upgrading equipment and automation - International instability and international management risks: Sino-US trade disputes bring uncertainty, which the company addresses by accelerating overseas expansion (Southeast Asia, Europe, America) and cultivating international talent[72](index=72&type=chunk) - Risk of continuously rising labor costs: New plant investments and capacity increases will raise labor demand, which the company balances through equipment upgrades and automation普及[72](index=72&type=chunk) [XI. Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period](index=19&type=section&id=XI.%20Registration%20Form%20for%20Research%2C%20Communication%2C%20Interview%2C%20and%20Other%20Activities%20During%20the%20Reporting%20Period) On May 8, 2025, the company hosted an online exchange via the Value Online platform, discussing its 2024 annual performance briefing roadshow activities - On May 8, 2025, the company hosted other types of visitors through an online exchange via the Value Online network platform[73](index=73&type=chunk) - The main topic of discussion was the company's 2024 annual performance briefing roadshow activities, with relevant information disclosed on Juchao Information Network[73](index=73&type=chunk) [XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=19&type=section&id=XII.%20Formulation%20and%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) During the reporting period, the company did not formulate a market value management system or disclose a valuation enhancement plan - The company has not formulated a market value management system[74](index=74&type=chunk) - The company has not disclosed a valuation enhancement plan[74](index=74&type=chunk) [XIII. Implementation of the "Dual Improvement in Quality and Returns" Action Plan](index=19&type=section&id=XIII.%20Implementation%20of%20the%20%22Dual%20Improvement%20in%20Quality%20and%20Returns%22%20Action%20Plan) During the reporting period, the company did not disclose an announcement regarding the "Dual Improvement in Quality and Returns" action plan - The company did not disclose an announcement regarding the 'Dual Improvement in Quality and Returns' action plan[75](index=75&type=chunk) Section IV Corporate Governance, Environment, and Society This section covers changes in governance personnel, profit distribution plans, employee incentives, environmental disclosures, and social responsibility initiatives [I. Changes in Directors, Supervisors, and Senior Management](index=20&type=section&id=I.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, there were no changes in the company's directors, supervisors, or senior management, with specific details available in the 2024 annual report - There were no changes in the company's directors, supervisors, or senior management during the reporting period[76](index=76&type=chunk) [II. Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period](index=20&type=section&id=II.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20During%20the%20Reporting%20Period) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[77](index=77&type=chunk) [III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=20&type=section&id=III.%20Implementation%20of%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures in place or under implementation - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[78](index=78&type=chunk) [IV. Environmental Information Disclosure](index=20&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[79](index=79&type=chunk) [V. Social Responsibility](index=20&type=section&id=V.%20Social%20Responsibility) The company upholds its commitment to society, actively participates in public welfare, complies with legal requirements for social responsibility, has no major environmental or safety incidents, and is dedicated to enhancing manufacturing capabilities through smart manufacturing and Industry 4.0 integration for sustainable development - The company adheres to the philosophy of giving back to society, actively participates in public welfare, and fulfills its social responsibilities in compliance with national laws, regulations, and standards[79](index=79&type=chunk) - There were no major environmental or safety incidents, the company was not listed as a heavily polluting enterprise, nor was it penalized by environmental, labor, or other departments[79](index=79&type=chunk) - The company has long practiced craftsmanship, continuously investing capital in production process upgrades, equipment renewal, and engineering technology R&D, committed to enhancing comprehensive manufacturing strength and promoting deep integration of smart manufacturing and Industry 4.0[79](index=79&type=chunk) Section V Significant Matters This section details commitments, related party transactions, guarantees, litigation, and other material events affecting the company [I. Fulfilled and Overdue Unfulfilled Commitments by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period](index=21&type=section&id=I.%20Fulfilled%20and%20Overdue%20Unfulfilled%20Commitments%20by%20Controlling%20Shareholder%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20During%20and%20as%20of%20the%20End%20of%20the%20Reporting%20Period) During the reporting period, commitments made by the company's controlling shareholder, actual controller, and directors, supervisors, and senior management regarding avoiding horizontal competition, standardizing related party transactions, ensuring immediate return on diluted equity, social security, and land/housing matters were all being normally fulfilled, with no overdue unfulfilled commitments - Commitments regarding avoiding horizontal competition by Guanghong Investment Co., Ltd., Tang Jianxing, and other promising parties are being fulfilled[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) - Commitments regarding standardizing and reducing related party transactions by Guanghong Investment Co., Ltd., Tang Jianxing, and other promising parties are being fulfilled[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) - Commitments regarding measures to compensate for diluted immediate returns by directors, supervisors, and senior management including Tang Jianxing, Xiao Miaowen, Su Zhibiao, Zou Zongxin, Zhu Jianjun, Wang Junfa, and Li Zhengda are being fulfilled[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) - Commitments regarding social security and housing provident fund matters by Guanghong Investment Co., Ltd. and Tang Jianxing are being fulfilled[88](index=88&type=chunk) - Commitments regarding land and housing matters in use by Guanghong Investment Co., Ltd. and Tang Jianxing are being fulfilled[88](index=88&type=chunk)[89](index=89&type=chunk) [II. Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company](index=31&type=section&id=II.%20Non-Operating%20Funds%20Occupied%20by%20Controlling%20Shareholder%20and%20Other%20Related%20Parties%20from%20the%20Listed%20Company) During the reporting period, there were no instances of non-operating funds being occupied by the controlling shareholder or other related parties from the listed company - During the reporting period, there were no instances of non-operating funds being occupied by the controlling shareholder or other related parties from the listed company[92](index=92&type=chunk) [III. Irregular External Guarantees](index=31&type=section&id=III.%20Irregular%20External%20Guarantees) During the reporting period, the company had no irregular external guarantees - The company had no irregular external guarantees during the reporting period[93](index=93&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=31&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[94](index=94&type=chunk) [V. Board of Directors, Supervisory Board, and Audit Committee's Explanation on the Accounting Firm's "Non-Standard Audit Report" for the Current Period](index=31&type=section&id=V.%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20and%20Audit%20Committee%27s%20Explanation%20on%20the%20Accounting%20Firm%27s%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Current%20Period) During the reporting period, the company did not receive a "non-standard audit report" from its accounting firm - During the reporting period, the company did not receive a 'non-standard audit report' from its accounting firm[95](index=95&type=chunk) [VI. Board of Directors' Explanation on the "Non-Standard Audit Report" for the Previous Year](index=31&type=section&id=VI.%20Board%20of%20Directors%27%20Explanation%20on%20the%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Previous%20Year) During the reporting period, the company had no explanation regarding the "non-standard audit report" from the previous year - During the reporting period, the company had no explanation regarding the 'non-standard audit report' from the previous year[95](index=95&type=chunk) [VII. Bankruptcy Reorganization Matters](index=31&type=section&id=VII.%20Bankruptcy%20Reorganization%20Matters) During the reporting period, the company did not experience any bankruptcy reorganization matters - The company did not experience any bankruptcy reorganization matters during the reporting period[95](index=95&type=chunk) [VIII. Litigation Matters](index=31&type=section&id=VIII.%20Litigation%20Matters) During the current reporting period, the company had no significant litigation, arbitration, or other litigation matters - The company had no significant litigation or arbitration matters during the current reporting period[97](index=97&type=chunk) - The company had no other litigation matters during the current reporting period[97](index=97&type=chunk) [IX. Penalties and Rectification](index=32&type=section&id=IX.%20Penalties%20and%20Rectification) During the reporting period, the company had no penalties or rectification situations - The company had no penalties or rectification situations during the reporting period[97](index=97&type=chunk) [X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=32&type=section&id=X.%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) During the reporting period, there were no undisclosed integrity issues concerning the company, its controlling shareholder, or actual controller - During the reporting period, there were no undisclosed integrity issues concerning the company[98](index=98&type=chunk) [XI. Significant Related Party Transactions](index=32&type=section&id=XI.%20Significant%20Related%20Party%20Transactions) During the reporting period, the company engaged in routine related party transactions with Huaqin Technology and Shanghai Longqi Technology, primarily for processing fees and material procurement at market-based prices, with no other significant related party transactions such as asset/equity acquisitions, joint investments, or financial dealings Related Party Transactions Related to Daily Operations for H1 2025 | Related Party | Related Party Relationship | Type of Related Party Transaction | Content of Related Party Transaction | Amount of Related Party Transaction (RMB 10,000) | Proportion of Similar Transactions | Approved Transaction Limit (RMB 10,000) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Huaqin Technology | A company where the company's director Zou Zongxin serves as Senior Vice President, indirectly holding 5.65% of the company's equity through its subsidiary Haiqin Communication Hong Kong Co., Ltd. | Sales | Processing Fees | 89,914.62 | 27.10% | 300,000 | No | | Huaqin Technology | A company where the company's director Zou Zongxin serves as Senior Vice President, indirectly holding 5.65% of the company's equity through its subsidiary Haiqin Communication Hong Kong Co., Ltd. | Procurement | Materials | 3,122.20 | - | 20,000 | No | | Shanghai Longqi Technology Co., Ltd. | Indirectly holds 11.29% of the company's equity | Sales | Processing Fees | 14,602.41 | 4.40% | 80,000 | No | | Shanghai Longqi Technology Co., Ltd. | Indirectly holds 11.29% of the company's equity | Procurement | Materials | 1,637.84 | - | 30,000 | No | - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[100](index=100&type=chunk) - The company had no related party transactions involving joint external investments during the reporting period[101](index=101&type=chunk) - The company had no related party creditor-debtor relationships during the reporting period[102](index=102&type=chunk) - There were no deposits, loans, credit lines, or other financial transactions between the company and related financial companies, or between the company's controlled financial companies and related parties[103](index=103&type=chunk)[104](index=104&type=chunk) - The company had no other significant related party transactions during the reporting period[105](index=105&type=chunk) [XII. Significant Contracts and Their Performance](index=34&type=section&id=XII.%20Significant%20Contracts%20and%20Their%20Performance) During the reporting period, the company had no entrustment or contracting situations, but Vietnam DBG leased out two factory buildings, generating **RMB 13.84 million** in rental income, and the company has several significant, unfulfilled guarantees for subsidiaries, including a **USD 500 million** maximum guarantee for sales contracts with Xiaomi and a **USD 100 million** maximum guarantee for business and loan contracts - The company had no entrustment situations during the reporting period[106](index=106&type=chunk) - The company had no contracting situations during the reporting period[107](index=107&type=chunk) - During the current reporting period, DBG Vietnam leased out two factory buildings for a 5-year term, recognizing **RMB 13.84 million** in rental income for the year 2024[108](index=108&type=chunk) - The company's total guarantees for subsidiaries are high, including a maximum **USD 500 million** guarantee for all subsidiary debts under sales contracts with Xiaomi, and a maximum **USD 100 million** guarantee for subsidiary business and loan contracts, all of which remain unfulfilled[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - The company had no significant daily operating contracts or other significant contracts during the reporting period[113](index=113&type=chunk) [XIII. Explanation of Other Significant Matters](index=37&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) During the reporting period, the company had no other significant matters requiring explanation - The company had no other significant matters requiring explanation during the reporting period[114](index=114&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=37&type=section&id=XIV.%20Significant%20Matters%20of%20Company%20Subsidiaries) During the reporting period, the company's subsidiaries had no significant matters - The company's subsidiaries had no significant matters during the reporting period[115](index=115&type=chunk) Section VI Share Changes and Shareholder Information This section outlines changes in share capital, securities issuance, shareholder structure, and shareholdings of directors, supervisors, and senior management [I. Share Capital Changes](index=38&type=section&id=I.%20Share%20Capital%20Changes) During the reporting period, the company's total share capital remained unchanged, but restricted shares decreased by **307,755 shares** with a corresponding increase in unrestricted shares, primarily due to cross-year changes in senior management's locked-up shares, specifically Xiao Miaowen's release of **307,755 restricted shares** Share Capital Changes for H1 2025 | Item | Quantity Before Change (shares) | Proportion Before Change | Net Change (+, -) (shares) | Quantity After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 10,351,163 | 1.35% | -307,755 | 10,043,408 | 1.31% | | II. Unrestricted Shares | 757,109,526 | 98.65% | 307,755 | 757,417,281 | 98.69% | | III. Total Shares | 767,460,689 | 100.00% | 0 | 767,460,689 | 100.00% | - Share changes were primarily due to cross-year changes in senior management's locked-up shares[119](index=119&type=chunk) Changes in Restricted Shares for H1 2025 | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Released in Current Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Su Zhibiao | 4,614,147 | 0 | 4,614,147 | Senior Management Locked-up Shares | | Zhu Jianjun | 3,394,824 | 0 | 3,394,824 | Senior Management Locked-up Shares | | Li Zhengda | 924,850 | 0 | 924,850 | Senior Management Locked-up Shares | | Wang Junfa | 808,087 | 0 | 808,087 | Senior Management Locked-up Shares | | Xiao Miaowen | 307,755 | 307,755 | 0 | Senior Management Locked-up Shares | | Tang Jianxing | 211,500 | 0 | 211,500 | Senior Management Locked-up Shares | | Xu Yusheng | 90,000 | 0 | 90,000 | Senior Management Locked-up Shares | | Total | 10,351,163 | 307,755 | 10,043,408 | - | [II. Securities Issuance and Listing](index=40&type=section&id=II.%20Securities%20Issuance%20and%20Listing) During the reporting period, the company had no securities issuance or listing activities - The company had no securities issuance or listing activities during the reporting period[121](index=121&type=chunk) [III. Number of Shareholders and Shareholding Information](index=40&type=section&id=III.%20Number%20of%20Shareholders%20and%20Shareholding%20Information) As of the end of the reporting period, the company had **77,303** common shareholders, with Guanghong Investment Co., Ltd. as the largest shareholder at **51.56%**, and other top ten shareholders primarily comprising funds and natural persons, including senior management members Su Zhibiao, Zhu Jianjun, and Li Zhengda - As of the end of the reporting period, the total number of common shareholders was **77,303**[122](index=122&type=chunk) Shareholding Information of Shareholders Holding 5% or More or Top 10 Shareholders as of H1 2025 | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Guanghong Investment Co., Ltd. | Overseas Legal Person | 51.56% | 395,691,660 | 0 | 395,691,660 | | Industrial and Commercial Bank of China Co., Ltd. - E Fund ChiNext ETF | Other | 1.22% | 9,333,803 | 0 | 9,333,803 | | Su Zhibiao | Domestic Natural Person | 0.80% | 6,152,196 | 4,614,147 | 1,538,049 | | Agricultural Bank of China Co., Ltd. - CSI 500 ETF | Other | 0.74% | 5,707,700 | 0 | 5,707,700 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.64% | 4,906,773 | 0 | 4,906,773 | | Zhu Jianjun | Domestic Natural Person | 0.59% | 4,526,433 | 3,394,824 | 1,131,609 | | China Construction Bank Co., Ltd. - Huaan ChiNext 50 ETF | Other | 0.47% | 3,569,500 | 0 | 3,569,500 | | Xiamen Hengxing Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 0.25% | 1,897,800 | 0 | 1,897,800 | | Wei Jinyu | Domestic Natural Person | 0.18% | 1,358,845 | 0 | 1,358,845 | | Li Zhengda | Domestic Natural Person | 0.15% | 1,113,134 | 924,850 | 188,284 | - The actual controller of Guanghong Investment Co., Ltd. is Tang Jianxing; Su Zhibiao, Zhu Jianjun, and Li Zhengda are senior management personnel of the company[123](index=123&type=chunk) [IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=42&type=section&id=IV.%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, some senior management members experienced changes in shareholdings, with Li Zhengda, Wang Junfa, and Xu Yusheng collectively reducing their holdings by **230,000 shares** Changes in Shareholdings of Directors, Supervisors, and Senior Management for H1 2025 | Name | Position | Shares Held at Beginning of Period (shares) | Number of Shares Reduced in Current Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Li Zhengda | Deputy General Manager | 1,233,134 | 120,000 | 1,113,134 | | Wang Junfa | Deputy General Manager | 1,077,450 | 80,000 | 997,450 | | Xu Yusheng | Board Secretary | 120,000 | 30,000 | 90,000 | | Total | - | 2,430,584 | 230,000 | 2,200,584 | [V. Changes in Controlling Shareholder or Actual Controller](index=42&type=section&id=V.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder did not change during the reporting period[126](index=126&type=chunk) - The company's actual controller did not change during the reporting period[126](index=126&type=chunk) [VI. Preferred Share Information](index=43&type=section&id=VI.%20Preferred%20Share%20Information) During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[127](index=127&type=chunk) Section VII Bond-Related Information This section provides details on the company's bond-related activities and status during the reporting period [Bond-Related Information](index=44&type=section&id=Bond-Related%20Information) During the reporting period, the company had no bond-related information - The company had no bond-related information during the reporting period[129](index=129&type=chunk) Section VIII Financial Report This section presents the company's audited financial statements, including balance sheets, income statements, cash flow statements, and notes to the financial statements [I. Audit Report](index=45&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[131](index=131&type=chunk) [II. Financial Statements](index=45&type=section&id=II.%20Financial%20Statements) This section provides Huizhou DBG Technology Co., Ltd.'s consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for H1 2025, comprehensively presenting the company's financial position, operating results, and cash flows at the end of the reporting period - This section includes consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity[132](index=132&type=chunk)[136](index=136&type=chunk)[140](index=140&type=chunk)[144](index=144&type=chunk)[148](index=148&type=chunk)[150](index=150&type=chunk)[152](index=152&type=chunk)[159](index=159&type=chunk) 1. Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were **RMB 9.622 billion**, a **17.06%** increase from the beginning of the period, with current assets at **RMB 5.018 billion** and non-current assets at **RMB 4.604 billion**, while total liabilities were **RMB 4.204 billion** and total owners' equity was **RMB 5.418 billion**, primarily driven by significant increases in inventory, fixed assets, and goodwill due to the AC company consolidation, and a decrease in cash and bank balances Key Data from Consolidated Balance Sheet (Ending Balance) | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 9,622,113,760.25 | 8,219,596,738.57 | | Total Liabilities | 4,204,428,392.40 | 2,720,098,949.26 | | Total Owners' Equity | 5,417,685,367.85 | 5,499,497,789.31 | | Cash and Bank Balances | 1,972,304,323.53 | 2,388,589,554.49 | | Inventories | 894,690,098.37 | 307,692,235.91 | | Fixed Assets | 3,087,110,534.47 | 2,315,335,667.47 | | Goodwill | 120,897,915.78 | 14,451,892.66 | 2. Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were **RMB 5.762 billion**, a slight decrease from the beginning of the period, with current assets at **RMB 2.527 billion** and non-current assets at **RMB 3.235 billion**, while total liabilities were **RMB 1.187 billion** and total owners' equity was **RMB 4.575 billion**, with a significant increase in long-term equity investments and a decrease in cash and bank balances Key Data from Parent Company Balance Sheet (Ending Balance) | Item | Ending Balance (RMB) | Beginning Balance (RMB) | | :--- | :--- | :--- | | Total Assets | 5,762,176,747.65 | 5,891,287,330.26 | | Total Liabilities | 1,186,710,019.95 | 1,172,707,578.10 | | Total Owners' Equity | 4,575,466,727.70 | 4,718,579,752.16 | | Cash and Bank Balances | 974,283,266.83 | 1,532,203,568.44 | | Long-Term Equity Investments | 1,535,363,955.52 | 887,556,779.50 | 3. Consolidated Income Statement In the first half of 2025, the company achieved total operating revenue of **RMB 3.318 billion**, a slight year-on-year increase of **0.17%**, with total operating costs of **RMB 3.222 billion**, net profit of **RMB 112 million**, and net profit attributable to parent company shareholders of **RMB 99.34 million**, a slight year-on-year increase of **0.46%**, while income tax expense significantly decreased by **85.25%** Key Data from Consolidated Income Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 3,318,487,184.25 | 3,312,943,043.66 | | Total Operating Cost | 3,221,853,815.86 | 3,180,966,020.11 | | Total Profit | 116,133,766.13 | 163,226,548.16 | | Net Profit | 111,671,998.47 | 132,980,485.45 | | Net Profit Attributable to Parent Company Shareholders | 99,343,089.26 | 98,886,565.57 | | Income Tax Expense | 4,461,767.66 | 30,246,062.71 | 4. Parent Company Income Statement In the first half of 2025, the parent company's operating revenue was **RMB 1.260 billion**, a year-on-year decrease of **23.54%**, with net profit at **RMB 48.75 million**, a year-on-year decrease of **9.59%** Key Data from Parent Company Income Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Operating Revenue | 1,259,663,384.42 | 1,647,507,461.24 | | Operating Profit | 47,752,212.98 | 54,976,100.92 | | Total Profit | 48,334,973.98 | 55,008,638.91 | | Net Profit | 48,752,147.79 | 53,922,736.37 | 5. Consolidated Cash Flow Statement In the first half of 2025, the company's net cash flow from operating activities was **RMB 452 million**, a year-on-year decrease of **37.71%**, while net cash flow from investing activities turned positive at **RMB 412 million** due to wealth management product redemptions, and net cash flow from financing activities was **-RMB 557 million** due to increased net repayment of borrowings Key Data from Consolidated Cash Flow Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 452,037,120.06 | 725,643,573.09 | | Net Cash Flow from Investing Activities | 412,120,672.02 | -1,599,017,432.39 | | Net Cash Flow from Financing Activities | -557,265,833.61 | 66,413,233.21 | | Net Increase in Cash and Cash Equivalents | 303,273,582.40 | -813,280,211.64 | 6. Parent Company Cash Flow Statement In the first half of 2025, the parent company's net cash flow from operating activities was **RMB 409 million**, a slight year-on-year decrease, while net cash flow from investing activities significantly improved to **-RMB 43 million**, and net cash flow from financing activities saw an increased net outflow of **-RMB 154 million** Key Data from Parent Company Cash Flow Statement | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 408,695,153.56 | 437,478,528.69 | | Net Cash Flow from Investing Activities | -43,024,316.76 | -1,230,083,036.58 | | Net Cash Flow from Financing Activities | -153,967,988.22

[Important Notes, Table of Contents, and Definitions](index=2&type=section&id=Section%201%20Important%20Notes%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides essential disclaimers, a table of contents, and definitions for clarity [Important Notes](index=2&type=section&id=Important%20Notes) The board, supervisory board, and senior management ensure the report's accuracy, while the company plans no cash dividends or bonus shares - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the report[5](index=5&type=chunk) - The company's head, chief accountant, and head of the accounting department declare that the financial report is true, accurate, and complete[5](index=5&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[6](index=6&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section defines key terms, regulatory bodies, company entities, and major automotive parts suppliers for clarity - The reporting period refers to January 1, 2025, to June 30, 2025[14](index=14&type=chunk) - Introduces global renowned automotive parts suppliers such as Bosch, Denso, and Aisin Seiki[12](index=12&type=chunk) [Company Profile and Key Financial Indicators](index=8&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section outlines the company's basic information and presents key financial performance indicators [Company Profile](index=8&type=section&id=I.%20Company%20Profile) Dalian Demais Precision Technology Co., Ltd. (stock code: 301007) is listed on the Shenzhen Stock Exchange, with He Jianping as the legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Demais | | Stock Code | 301007 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Dalian Demais Precision Technology Co., Ltd. | | Legal Representative | He Jianping | [Contact Persons and Information](index=8&type=section&id=II.%20Contact%20Persons%20and%20Information) The company's Board Secretary is Sun Baiyun, with contact information provided for the Dalian headquarters Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Sun Baiyun | No. 88 Xingfa Road, Lushun Economic and Technological Development Zone, Dalian City, Liaoning Province | 0411-62187998-2066 | 0411-62187955 | ann@cdms_china.com | | Securities Affairs Representative | Sun Pengfei, Li Zemin | No. 88 Xingfa Road, Lushun Economic and Technological Development Zone, Dalian City, Liaoning Province | 0411-62187998-2212 | 0411-62187955 | jam.sun@cdms_china.com | [Key Accounting Data and Financial Indicators](index=9&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Operating revenue and net profit decreased, while net cash flow from operating activities increased, with total assets and net assets remaining stable Key Accounting Data and Financial Indicators (Consolidated Statements) | Indicator | Current Period (Yuan) | Prior Period (Yuan) | YoY Change in Current Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 312,338,351.17 | 344,863,827.37 | -9.43% | | Net Profit Attributable to Shareholders of Listed Company | 23,990,866.73 | 25,981,815.37 | -7.66% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-recurring Gains and Losses | 22,319,648.50 | 23,103,330.03 | -3.39% | | Net Cash Flow from Operating Activities | 35,992,173.95 | 32,399,003.24 | 11.09% | | Basic Earnings Per Share (Yuan/share) | 0.16 | 0.17 | -5.88% | | Diluted Earnings Per Share (Yuan/share) | 0.16 | 0.17 | -5.88% | | Weighted Average Return on Net Assets | 3.53% | 3.93% | -0.40% | | Indicator | End of Current Period (Yuan) | End of Prior Year (Yuan) | Change from End of Prior Year | | :--- | :--- | :--- | :--- | | Total Assets | 1,020,607,281.57 | 1,042,074,624.30 | -2.06% | | Net Assets Attributable to Shareholders of Listed Company | 671,666,290.13 | 670,676,423.40 | 0.15% | [Non-recurring Gains and Losses Items and Amounts](index=9&type=section&id=VI.%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Total non-recurring gains and losses were **1,671,218.23 Yuan**, mainly from government subsidies and compensation, net of asset disposal and tax impacts Non-recurring Gains and Losses Items and Amounts | Item | Amount (Yuan) | Description | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | -95,149.47 | Gains/losses from disposal of fixed assets | | Government Subsidies Recognized in Current Profit/Loss | 1,728,717.47 | Government subsidies received and deferred income amortization | | Reversal of Impairment Provisions for Receivables Subject to Separate Impairment Testing | 10,000.00 | Recovery of some receivables from Rhein Power | | Other Non-operating Income and Expenses Apart from the Above | 353,279.41 | Primarily breach of contract compensation income | | Less: Income Tax Impact | 325,629.18 | | | Total | 1,671,218.23 | | [Management Discussion and Analysis](index=11&type=section&id=Section%203%20Management%20Discussion%20and%20Analysis) This section analyzes the company's operational performance, core competitiveness, and risk factors during the reporting period [Company's Main Business During the Reporting Period](index=11&type=section&id=I.%20Company%27s%20Main%20Business%20During%20the%20Reporting%20Period) The company specializes in precision shafts and machined parts for the automotive industry, navigating market growth and competition by expanding into new energy vehicle components and enhancing manufacturing capabilities - The company's main products are precision shafts and precision machined parts, applied in automotive window systems, powertrain systems, body and chassis systems, with some industrial precision components[31](index=31&type=chunk) - In the first half of 2025, China's automobile production and sales increased by **12.5%** and **11.4%** respectively, while new energy vehicle production and sales increased by **41.4%** and **40.3%** respectively[28](index=28&type=chunk) - The company acquired **5 new clients** during the reporting period, with **265 million Yuan** in new orders, of which new energy vehicle projects accounted for nearly **116 million Yuan**, representing **43.76%**[37](index=37&type=chunk) - The company achieved breakthroughs in planetary roller screw processing technology, electric drive shaft oblique hole high-pressure oil processing technology, form grinding transition fillet chamfering groove technology, and magnetic abrasive polishing steel parts technology[40](index=40&type=chunk) - The company continuously promoted informatization, completed a comprehensive upgrade of its ERP system, achieved integrated business and finance and digital transformation of supply chain management, and enhanced MES functionality[43](index=43&type=chunk)[94](index=94&type=chunk) [Industry Development Overview](index=11&type=section&id=1.%20Industry%20Development%20Overview) The automotive industry saw policy-driven growth, especially in new energy vehicles, but faces intense competition, price wars, and global trade challenges - In the first half of 2025, China's automobile production and sales reached **15.621 million units** and **15.653 million units** respectively, representing year-on-year increases of **12.5%** and **11.4%**[28](index=28&type=chunk) - New energy vehicle production and sales reached **6.968 million units** and **6.937 million units** respectively, with year-on-year growth of **41.4%** and **40.3%**[28](index=28&type=chunk) - The state allocated **300 billion Yuan** to support consumer goods trade-ins, driving sales beyond the total for 2024[28](index=28&type=chunk) - The industry faces intensified competition, price wars, and structural overcapacity issues[28](index=28&type=chunk) - In the first half of 2025, China's total automobile exports reached **3.083 million units**, a year-on-year increase of **10.4%**, with new energy vehicle exports exceeding **one million units**[29](index=29&type=chunk) [Company's Main Business](index=12&type=section&id=2.%20Company%27s%20Main%20Business) Demais specializes in customized precision shafts and machined parts for automotive and industrial applications, maintaining leading technology in key areas like ball screws and EV drive shafts - The company's main products are precision shafts and precision machined parts, applied in automotive window systems, powertrain systems, body and chassis systems, with some industrial precision components[31](index=31&type=chunk) - Mass-produced high-precision ball screws for automobiles, and screws for electronic braking systems, electric tailgate systems, electric seat adjustment systems, and steering wheel adjustment systems[30](index=30&type=chunk) - Some precision machined parts are in an internationally leading position, used in fuel injection systems for fuel and hybrid vehicles, covering **350bar** and **500bar** products[31](index=31&type=chunk) - Electric vehicle drive shafts, wiper shafts, armature shafts, air conditioning compressor shafts, and EPS shafts are in an internationally leading position[31](index=31&type=chunk) [Market Position](index=13&type=section&id=4.%20Market%20Position) Demais leads the precision shaft and machined parts market, leveraging R&D, advanced equipment, and strategic partnerships with global automotive suppliers - Demais is a leading enterprise in the domestic precision shaft and precision machined parts niche market[30](index=30&type=chunk) - The company has passed IATF16949, ISO9001, ISO14001 quality management system certifications and GB/T29490-2023 intellectual property management system certification[34](index=34&type=chunk) - Established strategic cooperative relationships with globally renowned Tier 1 automotive parts suppliers such as Bosch, Denso, and Aisin Seiki[35](index=35&type=chunk) - In the 2025 global top 100 automotive parts suppliers list, **fourteen companies** chose to cooperate with Demais[35](index=35&type=chunk) [Performance Driving Factors](index=14&type=section&id=5.%20Performance%20Driving%20Factors) Company performance is driven by industry prosperity, R&D investment in technology and digitalization, and continuous improvement in management efficiency and cost reduction - Industry Prosperity: The automotive parts and accessories manufacturing industry is highly prosperous, with increasing new energy vehicle penetration creating opportunities[36](index=36&type=chunk) - Technology R&D: The company focuses on R&D and technological investment, maintaining a leading technological position in the industry, and strengthening digitalization and intelligent construction[36](index=36&type=chunk) - Management Level: Improving management, perfecting organizational structures, systems, and processes, establishing a digital management platform, and enhancing business performance[36](index=36&type=chunk) [Operating Performance During the Reporting Period](index=14&type=section&id=6.%20Operating%20Performance%20During%20the%20Reporting%20Period) The company secured **265 million Yuan** in new orders, with **43.76%** from new energy vehicles, achieved technological breakthroughs, enhanced production efficiency through automation and lean management, and upgraded its smart factory systems - Acquired **5 new clients** and secured **265 million Yuan** in new orders, with new energy vehicle project products accounting for nearly **116 million Yuan**, or **43.76%**[37](index=37&type=chunk) - Provided components for numerous renowned new energy vehicle brands including Tesla, BYD, Volkswagen, Audi, BMW, and Mercedes-Benz[39](index=39&type=chunk)[40](index=40&type=chunk) - Achieved breakthroughs in technologies such as planetary roller screw processing, electric drive shaft oblique hole high-pressure oil processing, form grinding transition fillet chamfering groove, and magnetic abrasive polishing of steel parts[40](index=40&type=chunk) - Completed equipment modifications for **22 projects** totaling over **70 machines**, achieving fully automatic feeding and inspection, and developing visual inspection systems[41](index=41&type=chunk) - Deepened quality improvement and cost reduction, increased the yield rate of over **forty key products**, completed over **2,800 employee training sessions**, and finished capacity enhancement plans for nearly **twenty key products**[41](index=41&type=chunk) - The "Amoeba Management Model" achieved new results, establishing a product process identification cost calculation model[42](index=42&type=chunk) - Continuously promoted informatization, completed a comprehensive upgrade of its ERP system, achieved integrated business and finance and digital transformation of supply chain management, and enhanced MES functionality[43](index=43&type=chunk)[94](index=94&type=chunk) [Core Competitiveness Analysis](index=17&type=section&id=II.%20Core%20Competitiveness%20Analysis) The company's core competitiveness lies in technological leadership, stable quality, advanced equipment, brand recognition, and large-scale production capabilities in precision component processing - During the reporting period, the company and its subsidiaries applied for **8 patents**, including **5 invention patents** and **3 utility model patents**; as of the end of the reporting period, they owned a total of **63 invention patents** and **39 utility model patents**[47](index=47&type=chunk) - Passed IATF16949:2016 and ISO9001 quality management system certifications, possessing high-precision testing equipment such as Zeiss and Mitutoyo CMMs[48](index=48&type=chunk) - Acquired advanced production and testing equipment from countries like Germany, Switzerland, and Japan, achieving industry-leading levels in processing technologies such as extrusion, rolling, grinding, milling, cutting, and critical heat treatment[49](index=49&type=chunk) - Established long-term cooperative relationships with several globally renowned automotive parts suppliers, received multiple customer honors, and its registered trademark was recognized as a China Well-known Trademark[49](index=49&type=chunk) - Possesses the capability to undertake large orders and respond quickly, demonstrating strong competitiveness within the industry[50](index=50&type=chunk) [Main Business Analysis](index=18&type=section&id=III.%20Main%20Business%20Analysis) Main business revenue decreased by **9.43%**, while operating costs fell by **10.03%**, leading to a slight gross margin increase, with financial expenses rising significantly due to exchange rate fluctuations Year-on-Year Changes in Key Financial Data | Item | Current Period (Yuan) | Prior Period (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 312,338,351.17 | 344,863,827.37 | -9.43% | | Operating Cost | 250,442,376.09 | 278,360,481.37 | -10.03% | | Selling Expenses | 3,391,332.05 | 3,209,945.91 | 5.65% | | Administrative Expenses | 20,520,680.94 | 21,574,191.07 | -4.88% | | Financial Expenses | -2,896,352.83 | -298,296.73 | 870.96% | | Income Tax Expense | 1,650,825.41 | 1,910,622.95 | -13.60% | | R&D Investment | 15,485,315.35 | 14,780,324.55 | 4.77% | | Net Cash Flow from Operating Activities | 35,992,173.95 | 32,399,003.24 | 11.09% | | Net Cash Flow from Financing Activities | -25,168,866.15 | -14,630,763.87 | 72.03% | - Financial expenses increased significantly by **870.96%**, primarily due to changes in exchange gains and losses[52](index=52&type=chunk) Products or Services Accounting for Over 10% | By Product or Service | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Profit Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Manufacturing | 310,265,770.92 | 249,825,281.99 | 19.48% | -9.44% | -9.96% | 0.46% | | Body and Chassis System Components | 87,648,958.35 | 69,833,381.89 | 20.33% | -1.92% | 1.34% | -2.56% | | Powertrain System Components | 162,747,707.24 | 136,752,295.53 | 15.97% | -10.67% | -13.87% | 3.11% | | Industrial Precision Components | 16,325,668.94 | 11,691,392.75 | 28.39% | 6.87% | 19.20% | -7.41% | | Window System Components | 43,543,436.39 | 31,548,211.82 | 27.55% | -21.93% | -21.05% | -0.81% | | Domestic Sales | 220,883,260.33 | 182,200,464.99 | 17.51% | -7.79% | -8.26% | 0.42% | | Exports | 89,382,510.59 | 67,624,817.00 | 24.34% | -13.29% | -14.23% | 0.83% | [Non-Core Business Analysis](index=19&type=section&id=IV.%20Non-Core%20Business%20Analysis) Non-core business impacted total profit mainly through **551,266.26 Yuan** in credit impairment losses and **356,468.73 Yuan** in non-operating income, with asset impairment and other expenses having negative effects Impact of Non-Core Business on Total Profit | Item | Amount (Yuan) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Asset Impairment | -98,952.32 | -0.39% | Provision for inventory obsolescence | Yes | | Non-operating Income | 356,468.73 | 1.39% | Breach of contract compensation income | No | | Non-operating Expenses | 137,348.17 | 0.54% | Loss from disposal of non-current assets | No | | Credit Impairment Losses | 551,266.26 | 2.15% | Reversal or recovery of bad debt provisions for receivables | Yes | | Asset Disposal Gains | 39,009.38 | 0.15% | Gains or losses from disposal of fixed assets | No | [Analysis of Assets and Liabilities](index=19&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities) Total assets and liabilities slightly decreased, while construction in progress, receivables financing, prepayments, and other assets increased due to new equipment, increased receivables, and government subsidies Significant Changes in Asset Composition | Item | Amount at End of Current Period (Yuan) | Proportion of Total Assets | Amount at End of Prior Year (Yuan) | Proportion of Total Assets | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 1,020,607,281.57 | 100.00% | 1,042,074,624.30 | 100.00% | -2.06% | | | Construction in Progress | 16,450,043.55 | 1.61% | 9,631,211.16 | 0.92% | 0.69% | Primarily due to new equipment purchases for construction in progress not yet completed and accepted | | Receivables Financing | 10,036,890.29 | 0.98% | 6,938,904.11 | 0.67% | 0.31% | Primarily due to an increase in notes receivable in the current reporting period | | Prepayments | 8,682,773.25 | 0.85% | 5,639,748.77 | 0.54% | 0.31% | Primarily due to an increase in prepayments for raw material purchases | | Other Receivables | 3,183,627.61 | 0.31% | 509,870.98 | 0.05% | 0.26% | Primarily due to receivables from China Securities Depository and Clearing Corporation for deposits and withheld taxes | | Other Current Assets | 2,311,982.17 | 0.23% | 520,492.59 | 0.05% | 0.18% | Primarily due to an increase in VAT input tax credit | | Other Non-current Assets | 11,326,275.50 | 1.11% | 7,591,741.58 | 0.73% | 0.38% | Primarily due to an increase in prepayments for equipment | | Taxes Payable | 4,192,645.10 | 0.41% | 2,924,342.35 | 0.28% | 0.13% | Primarily due to an increase in individual income tax withheld and paid | | Deferred Income | 23,332,851.24 | 2.29% | 16,080,801.82 | 1.54% | 0.75% | Primarily due to an increase in government subsidies received | Asset Restrictions | Item | Book Balance at Period End (Yuan) | Book Value at Period End (Yuan) | Restriction Status | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 22,209,457.39 | 22,209,457.39 | Bill deposits | | Notes Receivable | 1,621,593.50 | 1,621,593.50 | Endorsed notes receivable not meeting derecognition criteria | | Fixed Assets | 80,327,417.65 | 34,401,182.16 | Loan collateral | | Intangible Assets | 8,500,000.00 | 4,582,180.00 | Loan collateral | | Total | 112,658,468.54 | 62,814,413.05 | | [Investment Analysis](index=21&type=section&id=VI.%20Investment%20Analysis) The company had no significant equity or non-equity investments, fair value financial assets, use of raised funds, entrusted wealth management, derivative investments, or entrusted loans - The company had no use of raised funds during the reporting period[63](index=63&type=chunk) - The company had no entrusted wealth management, derivative investments, or entrusted loans during the reporting period[64](index=64&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk) [Analysis of Major Holding and Participating Companies](index=22&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) Major subsidiaries, Dalian Jinhuade Precision Shaft and Dalian Dexin Precision Manufacturing, reported net profits of **6,288,748.63 Yuan** and **138,160.27 Yuan**, respectively Major Subsidiary Information | Company Name | Company Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dalian Jinhuade Precision Shaft Co., Ltd. | Subsidiary | Precision parts processing, precision micro-shafts | 20,000,000 | 134,607,457.78 | 102,397,673.12 | 57,319,175.20 | 6,867,528.83 | 6,288,748.63 | | Dalian Dexin Precision Manufacturing Co., Ltd. | Subsidiary | Precision parts processing | 200,000 | 1,720,209.20 | 364,226.22 | 35,376,975.64 | -32,082.59 | 138,160.27 | [Risks Faced by the Company and Countermeasures](index=22&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces risks from macroeconomic shifts, automotive market downturns, raw material price volatility, and financial exposures, addressed by proactive monitoring, enhanced management, and strategic integration - Operational risks include macroeconomic fluctuations and declining automotive industry sales; the company will closely monitor economic dynamics, flexibly adjust production plans, strengthen customer communication, and explore new areas and products[72](index=72&type=chunk)[74](index=74&type=chunk) - Risk of volatility in major raw material prices; the company will optimize cost analysis models, strengthen supplier assessment, and deepen cooperation to mitigate impact[75](index=75&type=chunk) - Product quality control risk; the company will continuously improve its quality management system, utilize advanced testing equipment, strengthen employee training, and purchase relevant insurance[76](index=76&type=chunk) - Financial risks include accounts receivable bad debts, inventory impairment, exchange rate risk, and goodwill impairment; the company will address these through credit assessment, inventory structure optimization, exchange rate risk management, and business integration[77](index=77&type=chunk)[78](index=78&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk) [Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period](index=24&type=section&id=XI.%20Registration%20Form%20for%20Research%2C%20Communication%2C%20Interview%2C%20and%20Other%20Activities%20During%20the%20Reporting%20Period) The company conducted three investor relations activities during the reporting period, engaging institutional and general investors through online exchanges - On February 11, 2025, hosted institutional investors including Changxin Fund, Huaan Asset, Industrial Securities, CICC, and Shenwan Hongyuan[82](index=82&type=chunk) - On March 4, 2025, hosted institutional investors including Haitong Securities, Guosen Securities, Caitong Securities, Huachuang Securities, and Zhongtai Securities[82](index=82&type=chunk) - On May 7, 2025, hosted general investors through online communication platforms[82](index=82&type=chunk) [Implementation of the 'Dual Improvement in Quality and Returns' Action Plan](index=25&type=section&id=XIII.%20Implementation%20of%20the%20%27Dual%20Improvement%20in%20Quality%20and%20Returns%27%20Action%20Plan) The company implemented the "Dual Improvement in Quality and Returns" plan by focusing on precision manufacturing, governance, investor relations, employee welfare, social responsibility, and smart factory development for sustainable growth - Deepened focus on precision manufacturing, adhering to a "mass-produce one generation, develop one generation, reserve one generation" product R&D strategy, with R&D investment exceeding **15 million Yuan** during the reporting period[84](index=84&type=chunk) - Strictly improved corporate governance structure and optimized internal management control systems in accordance with laws and regulations[85](index=85&type=chunk) - Communicated with investors through various channels including online performance briefings, phone calls, emails, and interactive platforms, answering **101 investor questions** during the reporting period[86](index=86&type=chunk) - Implemented a continuous, stable, and reasonable profit distribution policy, distributing a cash dividend of **1.50 Yuan (tax inclusive)** per **10 shares** to all shareholders during the reporting period, totaling **23.001 million Yuan**[87](index=87&type=chunk)[88](index=88&type=chunk) - Adhered to a people-oriented talent philosophy, providing a comprehensive talent development system, improving compensation and incentive schemes, and ensuring employee welfare and production safety[89](index=89&type=chunk)[90](index=90&type=chunk) - Accelerated digital platform construction to build a high-efficiency, high-quality, low-operating-cost smart factory, comprehensively upgrading ERP and MES systems[92](index=92&type=chunk)[94](index=94&type=chunk) [Corporate Governance, Environment, and Society](index=27&type=section&id=Section%204%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section details corporate governance, social responsibility initiatives, and environmental considerations [Changes in Directors, Supervisors, and Senior Management](index=27&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 - The company's directors, supervisors, and senior management did not change during the reporting period[97](index=97&type=chunk) [Profit Distribution and Capital Reserve Conversion to Share Capital in Current Period](index=27&type=section&id=II.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20in%20Current%20Period) The company plans no cash dividends, bonus shares, or capital reserve conversions for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[98](index=98&type=chunk) [Social Responsibility](index=28&type=section&id=V.%20Social%20Responsibility) The company actively fulfills social responsibilities, balancing business performance with stakeholder interests and promoting regional industrial development through innovation initiatives - The company actively fulfills its corporate social responsibility, safeguarding the interests of employees, shareholders, customers, and other stakeholders[100](index=100&type=chunk) - As the leading enterprise of the Lushunkou District Automotive Parts Industry Innovation Alliance in Dalian City, it actively cooperates in organizing industrial policy briefings and AI-enabled technology commercialization activities[100](index=100&type=chunk) [Significant Matters](index=29&type=section&id=Section%205%20Significant%20Matters) This section covers significant events, commitments, and related party transactions impacting the company [Commitments](index=29&type=section&id=I.%20Commitments%20Fulfilled%20or%20Overdue%20and%20Unfulfilled%20by%20the%20Company%27s%20Actual%20Controller%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20During%20the%20Reporting%20Period) No commitments by the company, its actual controller, shareholders, or related parties were unfulfilled or overdue during the reporting period - During the reporting period, there were no commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself that were either fulfilled or overdue and unfulfilled as of the end of the reporting period[102](index=102&type=chunk) [Appointment and Dismissal of Accounting Firms](index=29&type=section&id=IV.%20Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual financial report remains unaudited - The company's semi-annual report was not audited[105](index=105&type=chunk) [Litigation Matters](index=29&type=section&id=VIII.%20Litigation%20Matters) The company had no significant litigation or arbitration matters during the current reporting period - The company had no significant litigation or arbitration matters during the current reporting period[107](index=107&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=30&type=section&id=X.%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) The company, its controlling shareholder, and actual controller maintain good integrity, with no unfulfilled judgments or large overdue debts - The company, its controlling shareholder, and actual controller maintain good integrity, with no unfulfilled effective court judgments, large overdue debts, or status as dishonest judgment debtors[109](index=109&type=chunk) [Significant Related Party Transactions](index=30&type=section&id=XI.%20Significant%20Related%20Party%20Transactions) The company had no significant related party transactions, including those related to operations, asset transfers, joint investments, or debt, during the reporting period - The company had no related party transactions related to daily operations during the reporting period[110](index=110&type=chunk) - The company had no related party creditor-debtor relationships during the reporting period[113](index=113&type=chunk) - The company had no other significant related party transactions during the reporting period[116](index=116&type=chunk) [Significant Contracts and Their Performance](index=31&type=section&id=XII.%20Significant%20Contracts%20and%20Their%20Performance) The company had no entrustment, contracting, leasing, significant guarantees, or other major contracts during the reporting period - The company had no entrustment, contracting, or leasing situations during the reporting period[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) - The company had no significant guarantee situations during the reporting period[120](index=120&type=chunk) - The company had no other significant contracts during the reporting period[123](index=123&type=chunk) [Share Changes and Shareholder Information](index=32&type=section&id=Section%206%20Share%20Changes%20and%20Shareholder%20Information) This section reports on changes in share capital, shareholder structure, and major shareholder information [Share Change Information](index=32&type=section&id=I.%20Share%20Change%20Information) Total shares remained **153,340,000**, with restricted shares decreasing by **3,050,662** due to a former director's lock-up period expiration Share Change Information | Share Type | Quantity Before Change (Shares) | Proportion Before Change | Increase/Decrease in Current Change (Shares) | Quantity After Change (Shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 3,397,162 | 2.22% | -3,050,662 | 346,500 | 0.22% | | II. Unrestricted Shares | 149,942,838 | 97.78% | 3,050,662 | 152,993,500 | 99.78% | | III. Total Shares | 153,340,000 | 100.00% | 0 | 153,340,000 | 100.00% | Changes in Restricted Shares | Shareholder Name | Restricted Shares at Period Start (Shares) | Restricted Shares Released in Current Period (Shares) | Restricted Shares Increased in Current Period (Shares) | Restricted Shares at Period End (Shares) | Reason for Restriction | Planned Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yao Weixuan | 3,050,662 | 3,050,662 | 0 | 0 | Former company director Yao Weixuan's shares, lock-up period expired after departure | April 13, 2025 | | Total | 3,050,662 | 3,050,662 | 0 | 0 | -- | -- | [Number of Shareholders and Shareholding Information](index=33&type=section&id=III.%20Number%20of%20Shareholders%20and%20Shareholding%20Information) The company had **18,849** common shareholders, with Dalian Demais Investment Co., Ltd. as the controlling shareholder (**16.73%**), and some individual shareholders' holdings changed, including those held via margin accounts - The total number of common shareholders at the end of the reporting period was **18,849**[132](index=132&type=chunk) Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at Period End (Shares) | Increase/Decrease During Reporting Period (Shares) | Number of Restricted Shares Held (Shares) | Number of Unrestricted Shares Held (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dalian Demais Investment Co., Ltd. | Domestic Non-state-owned Legal Person | 16.73% | 25,650,000 | 0 | 0 | 25,650,000 | | Chen Pingze | Domestic Natural Person | 2.11% | 3,232,700 | -1,147,300 | 0 | 3,232,700 | | Liu Zhengxin | Domestic Natural Person | 1.96% | 3,000,000 | 3,000,000 | 0 | 3,000,000 | | Pan Yi | Domestic Natural Person | 1.38% | 2,114,500 | 2,114,500 | 0 | 2,114,500 | | Sun Lei | Domestic Natural Person | 1.35% | 2,069,500 | 2,069,500 | 0 | 2,069,500 | | Yao Weixuan | Domestic Natural Person | 1.35% | 2,067,750 | -1,200,600 | 0 | 2,067,750 | | Huang Qijun | Overseas Natural Person | 1.17% | 1,800,600 | 1,800,600 | 0 | 1,800,600 | | Chen Yan | Domestic Natural Person | 1.08% | 1,650,013 | 0 | 0 | 1,650,013 | | Pan Danquan | Domestic Natural Person | 0.95% | 1,460,103 | 1,460,103 | 0 | 1,460,103 | | Mao Aiying | Domestic Natural Person | 0.77% | 1,175,100 | 1,175,100 | 0 | 1,175,100 | - The company is unaware of any related party relationships among the above shareholders or whether they are acting in concert[133](index=133&type=chunk) - Some shareholders hold shares through client margin trading and securities lending accounts, such as Sun Lei, Huang Qijun, and Mao Aiying[134](index=134&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=35&type=section&id=IV.%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) No changes occurred in the shareholdings of the company's directors, supervisors, or senior management during the reporting period - The company's directors, supervisors, and senior management did not change their shareholdings during the reporting period[135](index=135&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=35&type=section&id=V.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) Neither the company's controlling shareholder nor its actual controller changed during the reporting period - The company's controlling shareholder did not change during the reporting period[136](index=136&type=chunk) - The company's actual controller did not change during the reporting period[136](index=136&type=chunk) [Bond-Related Information](index=37&type=section&id=Section%207%20Bond-Related%20Information) The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[139](index=139&type=chunk) [Financial Report](index=38&type=section&id=Section%208%20Financial%20Report) This section presents the company's unaudited consolidated and parent company financial statements and related notes [Audit Report](index=38&type=section&id=I.%20Audit%20Report) The company's semi-annual financial report remains unaudited - The company's semi-annual financial report was not audited[141](index=141&type=chunk) [Financial Statements](index=38&type=section&id=II.%20Financial%20Statements) This section presents the company's consolidated and parent company financial statements for H1 2025, detailing financial position, operating results, and cash flows Consolidated Balance Sheet (Period-End Balance) | Item | Period-End Balance (Yuan) | | :--- | :--- | | Cash and Bank Balances | 159,892,429.37 | | Accounts Receivable | 174,461,003.57 | | Inventories | 119,346,363.25 | | Fixed Assets | 439,128,087.21 | | Total Assets | 1,020,607,281.57 | | Short-term Borrowings | 120,084,333.33 | | Accounts Payable | 102,126,404.21 | | Total Liabilities | 348,940,991.44 | | Total Equity Attributable to Parent Company Owners | 671,666,290.13 | | Total Liabilities and Equity | 1,020,607,281.57 | Consolidated Income Statement (H1 2025) | Item | H1 2025 (Yuan) | | :--- | :--- | | Total Operating Revenue | 312,338,351.17 | | Total Operating Cost | 290,246,833.44 | | Operating Profit | 25,422,571.58 | | Total Profit | 25,641,692.14 | | Net Profit | 23,990,866.73 | | Net Profit Attributable to Parent Company Shareholders | 23,990,866.73 | | Basic Earnings Per Share (Yuan/share) | 0.16 | | Diluted Earnings Per Share (Yuan/share) | 0.16 | Consolidated Cash Flow Statement (H1 2025) | Item | H1 2025 (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 35,992,173.95 | | Net Cash Flow from Investing Activities | -17,114,139.55 | | Net Cash Flow from Financing Activities | -25,168,866.15 | | Net Increase in Cash and Cash Equivalents | -5,061,624.86 | | Cash and Cash Equivalents at Period End | 137,682,971.98 | [Company Basic Information](index=55&type=section&id=III.%20Company%20Basic%20Information) Established in 2001 and listed in 2021, the company has a registered capital of **153.34 million Yuan**, with He Jianping as the actual controller, specializing in precision automotive parts manufacturing - The company was listed on the Shenzhen Stock Exchange on June 16, 2021, with a registered capital of **153.34 million Yuan**, and its actual controller is He Jianping[174](index=174&type=chunk) - The company's industry is automotive parts and accessories manufacturing (C3660) within the automotive manufacturing industry (C36), with main products and services including precision micro-shafts, precision parts development, and processing[174](index=174&type=chunk) - A total of **2 subsidiaries** were included in the scope of consolidation for the current period, unchanged from the previous period[175](index=175&type=chunk) [Taxes](index=90&type=section&id=VI.%20Taxes) The company's main taxes include VAT, Urban Maintenance Tax, and Corporate Income Tax, with both the company and its subsidiary enjoying a **15%** high-tech enterprise tax rate until 2026 Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales of goods | 13% | | Urban Maintenance and Construction Tax | Actual turnover tax paid | 7% | | Corporate Income Tax | Taxable income | 15%, 25% | | Education Surcharge | Actual turnover tax paid | 3% | | Local Education Surcharge | Actual turnover tax paid | 2% | | Property Tax | 70% of original property value (or rental income) as tax base | 1.2%; 12% | - Both the company and its subsidiary, Dalian Jinhuade Precision Shaft Co., Ltd., have obtained high-tech enterprise certificates, qualifying for a reduced Corporate Income Tax rate of **15%** from 2024 to 2026[369](index=369&type=chunk) [Notes to Consolidated Financial Statement Items](index=91&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section details consolidated financial statement items, highlighting significant increases in construction in progress, receivables financing, prepayments, and other assets due to new equipment, increased receivables, and government subsidies Composition of Cash and Bank Balances | Item | Period-End Balance (Yuan) | Period-Start Balance (Yuan) | | :--- | :--- | :--- | | Cash on Hand | 8,171.19 | 3,819.40 | | Bank Deposits | 127,674,245.23 | 142,740,777.44 | | Other Cash and Bank Balances | 32,210,012.95 | 32,175,270.03 | | Total | 159,892,429.37 | 174,919,866.87 | - Other cash and bank balances include **22,209,457.39 Yuan** in bill deposits, which are restricted funds[371](index=371&type=chunk) Aging Analysis of Accounts Receivable | Aging | Period-End Book Balance (Yuan) | Period-Start Book Balance (Yuan) | | :--- | :--- | :--- | | Within 1 year (inclusive) | 183,207,938.69 | 194,524,519.28 | | 1 to 2 years | 250,004.06 | 149,703.67 | | 2 to 3 years | 75,176.20 | 213,320.64 | | Over 3 years | 1,071,443.83 | 921,066.30 | | Total | 184,604,562.78 | 195,808,609.89 | - Inventory impairment provisions and contract fulfillment cost impairment provisions totaled **10,224,171.72 Yuan**, decreasing by **1,362,249.36 Yuan** in the current period[405](index=405&type=chunk) Book Value of Fixed Assets | Item | Period-End Book Value (Yuan) | Period-Start Book Value (Yuan) | | :--- | :--- | :--- | | Buildings and Structures | 116,191,199.14 | 120,131,258.39 | | Machinery and Equipment | 298,313,961.07 | 305,857,904.77 | | Transportation Equipment | 3,856,629.78 | 4,396,899.23 | | Other Equipment | 20,766,297.22 | 21,991,513.12 | | Total | 439,128,087.21 | 452,377,575.51 | - Construction in progress balance at period-end was **16,450,043.55 Yuan**, an increase from the period-start, mainly including wastewater treatment projects, gear mesh testers, and grinding machines[430](index=430&type=chunk)[431](index=431&type=chunk) Classification of Short-term Borrowings | Item | Period-End Balance (Yuan) | Period-Start Balance (Yuan) | | :--- | :--- | :--- | | Mortgage Loans | 75,000,000.00 | 75,000,000.00 | | Guaranteed Loans | 20,000,000.00 | 20,000,000.00 | | Credit Loans | 5,000,000.00 | 5,000,000.00 | | Pledged + Guaranteed Loans | 20,000,000.00 | 20,000,000.00 | | Accrued Interest Payable (Unmatured) | 84,333.33 | 342,819.47 | | Total | 120,084,333.33 | 120,342,819.47 | - Employee benefits payable balance at period-end was **6,444,914.70 Yuan**, a decrease from the period-start[462](index=462&type=chunk) - Deferred income balance at period-end was **23,332,851.24 Yuan**, an increase from the period-start, primarily due to increased government subsidies received[477](index=477&type=chunk) Operating Revenue and Operating Cost | Item | Current Period Revenue (Yuan) | Current Period Cost (Yuan) | Prior Period Revenue (Yuan) | Prior Period Cost (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 310,265,770.92 | 249,825,281.99 | 342,612,489.20 | 277,447,835.23 | | Other Business | 2,072,580.25 | 617,094.10 | 2,251,338.17 | 912,646.14 | | Total | 312,338,351.17 | 250,442,376.09 | 344,863,827.37 | 278,360,481.37 | Financial Expenses | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Interest Expense | 1,309,860.37 | 1,246,321.55 | | Less: Interest Income | 1,260,020.53 | 975,964.08 | | Exchange Gains and Losses | -3,038,454.04 | -694,615.99 | | Bank Charges | 92,261.37 | 125,961.79 | | Total | -2,896,352.83 | -298,296.73 | [R&D Expenses](index=125&type=section&id=VIII.%20R%26D%20Expenses) Total R&D expenses were **15,485,315.35 Yuan**, fully expensed, primarily covering employee compensation, materials, depreciation, and external R&D services R&D Expense Details | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Power Costs | 648,087.70 | 1,272,958.28 | | Office Expenses | 149,919.83 | 66,512.31 | | Material Costs | 2,542,124.31 | 876,872.31 | | Travel Expenses | 294,390.03 | 154,297.49 | | Depreciation Expense | 1,401,617.24 | 2,374,780.44 | | Employee Compensation | 9,489,176.24 | 9,724,903.72 | | External R&D Service Fees | 960,000.00 | 310,000.00 | | Other | 0.00 | 222,772.28 | | Total | 15,485,315.35 | 15,003,096.83 | | Of which: Expensed R&D Expenses | 15,485,315.35 | 14,780,324.55 | | Capitalized R&D Expenses | 0.00 | 222,772.28 | [Interests in Other Entities](index=127&type=section&id=X.%20Interests%20in%20Other%20Entities) The company holds **100%** equity in Dalian Dexin Precision Manufacturing and Dalian Jinhuade Precision Shaft, with no changes in subsidiary ownership or significant interests in joint ventures or associates Composition of the Enterprise Group | Subsidiary Name | Registered Capital (Yuan) | Main Operating Location | Registered Location | Business Nature | Shareholding Proportion (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Dalian Dexin Precision Manufacturing Co., Ltd. | 200,000.00 | Dalian | Dalian | Precision parts processing | 100.00% | Business combination not under common control | | Dalian Jinhuade Precision Shaft Co., Ltd. | 20,000,000.00 | Dalian | Dalian | Precision parts processing, precision micro-shafts | 100.00% | Business combination not under common control | - During the reporting period, the company's ownership interest in subsidiaries remained unchanged, and it continued to control the subsidiaries[526](index=526&type=chunk) - The company has no significant joint ventures or associates[527](index=527&type=chunk) [Government Grants](index=130&type=section&id=XI.%20Government%20Grants) The company received **8,505,020.98 Yuan** in government grants, with **1,252,971.56 Yuan** recognized in other income, and a deferred income balance of **23,332,851.24 Yuan** at period-end Liability Items Involving Government Grants | Account Title | Period-Start Balance (Yuan) | New Grants Added in Current Period (Yuan) | Amount Recognized in Non-operating Income in Current Period (Yuan) | Amount Transferred to Other Income in Current Period (Yuan) | Period-End Balance (Yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 16,080,801.82 | 8,505,020.98 | 0 | 1,252,971.56 | 23,332,851.24 | Asset Related | | Total | 16,080,801.82 | 8,505,020.98 | 0 | 1,252,971.56 | 23,332,851.24 | | Government Grants Recognized in Current Profit/Loss | Account Title | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Transferred from Deferred Income | 1,252,971.56 | 1,213,486.09 | | Other Income | 1,586,758.97 | 2,135,793.74 | | Total | 2,839,730.53 | 3,349,279.83 | - Government grants recognized in current profit/loss primarily include the 2023 Provincial Comprehensive Opening-up Special Funds, the second batch of ultra-long-term special national debt funds for equipment renewal projects in 2024, and subsidies from the Dalian Municipal Bureau of Industry and Information Technology[533](index=533&type=chunk) [Related Parties and Related Party Transactions](index=131&type=section&id=XIV.%20Related%20Parties%20and%20Related%20Party%20Transactions) Dalian Demais Investment Co., Ltd. is the controlling shareholder, with He Jianping as the ultimate controller; no related party transactions for goods/services occurred, but significant related party guarantees were provided for company loans and bills - The ultimate controlling party of the enterprise is He Jianping[538](index=538&type=chunk) - The company's controlling shareholder, Dalian Demais Investment Co., Ltd., and its subsidiary, Dalian Jinhuade Precision Shaft Co., Ltd., provided guarantees for multiple company loans and bank acceptance bills, with total guaranteed balances exceeding **150 million Yuan**[546](index=546&type=chunk)[547](index=547&type=chunk)[548](index=548&type=chunk)[549](index=549&type=chunk)[550](index=550&type=chunk) Key Management Personnel Compensation | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Key Management Personnel Compensation | 2,304,134.12 | 2,382,240.03 | [Supplementary Information](index=141&type=section&id=XX.%20Supplementary%20Information) This section provides supplementary details, including non-recurring gains and losses totaling **1,671,218.23 Yuan**, a weighted average return on net assets of **3.53%**, and basic/diluted EPS of **0.16 Yuan/share** Detailed Statement of Non-recurring Gains and Losses | Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | -95,149.47 | | Government Subsidies Recognized in Current Profit/Loss | 1,728,717.47 | | Reversal of Impairment Provisions for Receivables Subject to Separate Impairment Testing | 10,000.00 | | Other Non-operating Income and Expenses Apart from the Above | 353,279.41 | | Less: Income Tax Impact | 325,629.18 | | Total | 1,671,218.23 | Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets | Basic Earnings Per Share (Yuan/share) | Diluted Earnings Per Share (Yuan/share) | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders of the Company | 3.53% | 0.16 | 0.16 | | Net Profit Attributable to Common Shareholders of the Company After Deducting Non-recurring Gains and Losses | 3.29% | 0.15 | 0.15 |

股票简称：富瑞特装 股票代码：300228 张家港富瑞特种装备股份有限公司 2025 年半年度报告 张家港富瑞特种装备股份有限公司 2025 年半年度报告 二〇二五年八月 1 张家港富瑞特种装备股份有限公司 2025 年半年度报告 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。 公司负责人黄锋、主管会计工作负责人肖华及会计机构负责人(会计主管 人员)肖华声明：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。 公司目前不存在影响公司正常经营的重大风险。公司日常经营中可能面 临的风险因素详见"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"中相关风险因素。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | 第一节 重要提示、目录和释义 | | 1 | | --- | --- | --- | | 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 ...

天津渤海化学股份有限公司2025 年半年度报告 公司代码：600800 公司简称：渤海化学 天津渤海化学股份有限公司 2025 年半年度报告 1 / 145 天津渤海化学股份有限公司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、 公司负责人郭子敬、主管会计工作负责人李薇及会计机构负责人（会计主管人员）谢红雨 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 公司2025年半年度不进行利润分配，亦不进行资本公积金转增股本。 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告中所涉及的未来计划、发展战略等前瞻性描述不构成公司对投资者的实质承诺，敬请 投资者注意投资风险。 七、 是否存在被控股股东及其他关联方非经营性占用资金情况 否 八、 是否存在违反规定决策程序对外提供担保的情况 否 九、 是否存在半数以上董事无法保证公司所披 ...

[Section I Definitions](index=4&type=section&id=Section%20I%20Definitions) The report defines common terms such as CSRC, SSE, Tailong Pharmaceutical, its controlling shareholders, and major subsidiaries - The report defines terms like CSRC, SSE, Tailong Pharmaceutical, its controlling shareholders (Tairong Industrial Investment, Zhongsheng Industrial, Gaoxin Investment Control), and major subsidiaries (Xinlingxian, Tongjuntang)[13](index=13&type=chunk) - The reporting period is from **January 1, 2025, to June 30, 2025**[13](index=13&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 the company's basic information, contact details, stock overview, and key financial data for the reporting period [Company Basic Information](index=5&type=section&id=I.%20Company%20Basic%20Information) Discloses the company's Chinese name, abbreviation, foreign name, legal representative, and other basic information - Company's Chinese name is Henan Tailong Pharmaceutical Co., Ltd., legal representative is Yin Hui[16](index=16&type=chunk) [Contact Person and Information](index=5&type=section&id=II.%20Contact%20Person%20and%20Information) Provides names, addresses, phone numbers, faxes, and email addresses for the company's Board Secretary and Securities Affairs Representative - Board Secretary is Li Nianyun, Securities Affairs Representative is Wu Ting, contact number is **0371-67982194**[17](index=17&type=chunk) [Brief Introduction to Changes in Basic Information](index=5&type=section&id=III.%20Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) The company's registered address, office address, website, and email address remained unchanged during the reporting period - Company's registered and office address is No. 8 Jinsuo Road, High-tech Industrial Development Zone, Zhengzhou City, Henan Province, with no changes during the reporting period[18](index=18&type=chunk) [Brief Introduction to Changes in Information Disclosure and Document Storage Locations](index=5&type=section&id=IV.%20Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Storage%20Locations) Specifies the company's chosen newspapers for information disclosure, website for semi-annual reports, and report storage locations, with no changes during the reporting period - Company's information disclosure newspapers are "Shanghai Securities News" and "China Securities Journal", website is www.sse.com.cn[19](index=19&type=chunk) [Company Stock Profile](index=5&type=section&id=V.%20Company%20Stock%20Profile) Introduces the listing exchange, stock abbreviation, and stock code for the company's A-shares - Company's A-shares are listed on the Shanghai Stock Exchange, stock abbreviation is "Tailong Pharmaceutical", stock code is "**600222**"[20](index=20&type=chunk) [Company's Key Accounting Data and Financial Indicators](index=6&type=section&id=VII.%20Company%27s%20Key%20Accounting%20Data%20and%20Financial%20Indicators) Discloses the company's key accounting data and financial indicators for the current reporting period (Jan-Jun), explaining declines in operating revenue and net profit attributable to shareholders 2025 Semi-Annual Key Accounting Data | Indicator | Current Reporting Period (Jan-Jun) (yuan) | Prior Year Period (yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 762,431,550.01 | 927,248,514.93 | -17.77 | | Total Profit | 24,358,725.70 | 21,761,268.60 | 11.94 | | Net Profit Attributable to Parent Company Shareholders | 19,346,600.25 | 26,617,997.43 | -27.32 | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-recurring Gains/Losses) | 15,194,442.43 | 25,595,171.58 | -40.64 | | Net Cash Flow from Operating Activities | -111,681,634.10 | -91,951,749.06 | Not Applicable | | Net Assets Attributable to Parent Company Shareholders (Period-end) | 1,600,355,674.27 | 1,574,728,869.80 | 1.63 | | Total Assets (Period-end) | 3,579,032,630.35 | 3,489,768,020.93 | 2.56 | 2025 Semi-Annual Key Financial Indicators | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.0350 | 0.0477 | -26.62 | | Diluted Earnings Per Share (yuan/share) | 0.0350 | 0.0477 | -26.62 | | Basic Earnings Per Share (Excluding Non-recurring Gains/Losses) (yuan/share) | 0.0275 | 0.0459 | -40.09 | | Weighted Average Return on Net Assets (%) | 1.22 | 1.68 | Decrease of 0.46 percentage points | | Weighted Average Return on Net Assets (Excluding Non-recurring Gains/Losses) (%) | 0.96 | 1.61 | Decrease of 0.65 percentage points | - Operating revenue decreased by **17.77%** year-on-year, primarily due to varying progress in centralized procurement of traditional Chinese medicine and reduced sales shipments[24](index=24&type=chunk) - Net profit attributable to parent company decreased by **27.32%** year-on-year, mainly due to increased income tax expenses across business segments and changes in minority shareholder profits and losses[24](index=24&type=chunk) [Non-recurring Gains and Losses Items and Amounts](index=7&type=section&id=IX.%20Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Lists non-recurring gains and losses items and their amounts for the current reporting period, totaling **4,152,157.82 yuan** 2025 Semi-Annual Non-recurring Gains and Losses Items and Amounts | Non-recurring Gains and Losses Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -73,320.16 | | Government grants recognized in current profit or loss | 4,181,283.31 | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises | 1,451,657.50 | | Other non-operating income and expenses apart from the above | -65,170.45 | | Other gains and losses meeting the definition of non-recurring gains and losses | -292,295.91 | | Less: Income tax impact | 780,874.02 | | Minority shareholder equity impact (after tax) | 269,122.45 | | **Total** | **4,152,157.82** | [Section III Management Discussion and Analysis](index=8&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section analyzes the company's industry, business operations, core competitiveness, and financial performance, along with identified risks and mitigation strategies [Description of the Company's Industry and Main Business Operations during the Reporting Period](index=8&type=section&id=I.%20Description%20of%20the%20Company%27s%20Industry%20and%20Main%20Business%20Operations%20during%20the%20Reporting%20Period) Details the company's main businesses (pharmaceutical manufacturing, R&D services, traditional Chinese medicine decoction pieces, pharmaceutical distribution) and products, operating model, industry development, and market position - Company's main businesses are pharmaceutical manufacturing and pharmaceutical R&D services, specifically including pharmaceutical preparations, traditional Chinese medicine decoction pieces, pharmaceutical R&D services, and pharmaceutical and medicinal material distribution[28](index=28&type=chunk) - Pharmaceutical preparation business primarily focuses on oral traditional Chinese medicine preparations, covering respiratory, cardiovascular, and digestive systems, with key products including Shuanghuanglian Oral Liquid series and Shuangjinlian Compound Liquid, some of which are exclusive products/dosages[28](index=28&type=chunk)[29](index=29&type=chunk) - Traditional Chinese medicine decoction pieces business is conducted by wholly-owned subsidiary Tongjuntang, managing over **700 varieties** and **1100 specifications**, also providing intelligent decoction services[31](index=31&type=chunk) - Pharmaceutical R&D services are provided by subsidiary Beijing Xinlingxian, offering professional technical services for the entire drug development process, including preclinical pharmaceutical research, clinical CRO research, and registration application[32](index=32&type=chunk) - The pharmaceutical industry is characterized by weak cyclicality, high investment, high risk, high technical barriers, and strong regulation; from January to June 2025, operating revenue of pharmaceutical manufacturing enterprises above designated size decreased by **1.2%** year-on-year, and total profit decreased by **2.8%**[39](index=39&type=chunk) - The company was listed in the China Association of Traditional Chinese Medicine's "2023 Top 100 Traditional Chinese Medicine Industrial Enterprises" list, and its core product Shuanghuanglian Oral Liquid has been repeatedly recommended in major epidemic treatment plans[42](index=42&type=chunk) [Discussion and Analysis of Operating Performance](index=14&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operating%20Performance) Operating revenue decreased by **17.77%** and net profit attributable to parent company decreased by **27.32%** year-on-year, mainly due to centralized procurement of traditional Chinese medicine and increased income tax expenses; The company actively addresses market challenges by optimizing marketing, strengthening supply chain management, enhancing R&D services, and expanding traditional Chinese medicine planting bases - From January to June 2025, the company achieved operating revenue of **762 million yuan**, a year-on-year decrease of **17.77%**; net profit attributable to shareholders of **19.3466 million yuan**, a year-on-year decrease of **27.32%**[43](index=43&type=chunk) - Pharmaceutical preparation business optimized its marketing system, focusing on "Shuanghuanglian Oral Liquid" to strengthen its presence in grassroots medical terminals, top 100 chain pharmacies, and online e-commerce channels[44](index=44&type=chunk) - Traditional Chinese medicine decoction pieces business achieved increased gross profit margin and further improved net profit compared to the previous year by building a traceability system, intelligent production upgrades, and optimizing customer structure[45](index=45&type=chunk) - Pharmaceutical R&D services consolidated advantages in generic drug development and expanded traditional Chinese medicine projects in pharmaceutical research; clinical business covers various target biologics, chemical drugs, and traditional Chinese medicine, with **19 new registration applications** and **25 drug production approvals** added during the reporting period[46](index=46&type=chunk)[47](index=47&type=chunk) - The company established over **70 standardized traditional Chinese medicine planting/breeding bases** in authentic medicinal material producing areas such as Henan, Shandong, and Zhejiang, vigorously promoting the construction of a traceability system for traditional Chinese medicine[47](index=47&type=chunk) - In investment business, the company participated in over **50 fund-invested projects**, covering biomedicine, medical devices, and general health, with **27.6827 million yuan** of funds recovered from previous investment projects during the reporting period[50](index=50&type=chunk) [Analysis of Core Competitiveness during the Reporting Period](index=17&type=section&id=III.%20Analysis%20of%20Core%20Competitiveness%20during%20the%20Reporting%20Period) The company's core competitiveness lies in its brand advantage ("Tailong TAILONG" China Well-known Trademark, "Tongjuntang" Chinese Time-honored Brand), product advantage (core products in multiple therapeutic areas, exclusive products), quality advantage (GAP standard planting, GMP standard production, CNAS certified testing center), and technology and talent advantage (National High-tech Enterprise, Post-doctoral Research Workstation, experienced R&D team) - "Tailong TAILONG" is a China Well-known Trademark, and the company's products are highly recognized by the market; Tailong brand Shuanghuanglian Oral Liquid has been repeatedly rated as the "Most Recommended Brand by Pharmacy Staff (Cold Medicine Category)"[52](index=52&type=chunk) - The company's main product lines cover multiple therapeutic areas such as respiratory, cardiovascular, and digestive systems; the core product Shuanghuanglian Oral Liquid has been included in the "National Essential Drug List" for many years[53](index=53&type=chunk) - The company adheres to the "quality construction" concept, establishing standardized planting bases according to GAP standards, strictly implementing GMP standards in production, and achieving a **100% pass rate** in external spot checks of produced and sold drugs[55](index=55&type=chunk) - The company is a National Torch Program Key High-tech Enterprise certified by the Ministry of Science and Technology, has established a Post-doctoral Research Workstation approved by the Ministry of Human Resources and Social Security, and possesses high-end management talent and an R&D team with extensive industry experience[56](index=56&type=chunk) [Main Operating Performance during the Reporting Period](index=18&type=section&id=IV.%20Main%20Operating%20Performance%20during%20the%20Reporting%20Period) Analyzes the reasons for changes in financial statement items across business segments, including operating revenue, costs, selling expenses, administrative expenses, R&D expenses, net cash flow, and explains the impact of non-core businesses on profit and the asset-liability situation Financial Statement Related Item Fluctuation Analysis | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 762,431,550.01 | 927,248,514.93 | -17.77 | | Operating Cost | 574,172,789.53 | 666,192,208.30 | -13.81 | | Selling Expenses | 57,991,234.75 | 86,314,744.64 | -32.81 | | Administrative Expenses | 59,052,299.36 | 67,846,193.37 | -12.96 | | Financial Expenses | 26,821,950.51 | 28,356,037.50 | -5.41 | | R&D Expenses | 25,905,142.62 | 60,152,217.93 | -56.93 | | Net Cash Flow from Operating Activities | -111,681,634.10 | -91,951,749.06 | Not Applicable | | Net Cash Flow from Investing Activities | 90,711,591.51 | 95,542,622.53 | -5.06 | | Net Cash Flow from Financing Activities | 95,560,568.00 | 105,133,781.60 | -9.11 | - Operating revenue decreased mainly due to successful bids in centralized procurement of traditional Chinese medicine, with varying implementation progress across provinces leading to reduced sales shipments[58](index=58&type=chunk) - Selling expenses, administrative expenses, and R&D expenses all decreased year-on-year, reflecting the company's strategy of adjusting its sales system, strengthening lean management, and focusing R&D resources[58](index=58&type=chunk)[59](index=59&type=chunk) Main Business by Industry Segment | Industry Segment | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Profit Margin (%) | Year-on-Year Change in Operating Revenue (%) | Year-on-Year Change in Operating Cost (%) | Year-on-Year Change in Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Pharmaceutical Manufacturing | 538,222,890.00 | 407,197,465.15 | 24.34 | -25.66 | -22.94 | -2.68 | | Pharmaceutical R&D Services | 112,164,235.54 | 73,066,709.41 | 34.86 | -24.67 | -21.05 | -2.98 | | Pharmaceutical and Medicinal Material Distribution | 109,928,761.89 | 92,962,278.40 | 15.43 | 113.87 | 109.08 | 1.94 | | **Total** | **760,315,887.43** | **573,226,452.96** | **24.61** | **-17.74** | **-13.85** | **-3.40** | - Operating revenue and gross profit margin for pharmaceutical manufacturing and R&D services both decreased, while pharmaceutical and medicinal material distribution business achieved growth in both revenue and gross profit margin[61](index=61&type=chunk) Major Restricted Assets at Period-End | Item | Book Value at Period-End (yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 25,146,899.98 | Acceptance deposits, etc | | Fixed Assets | 109,048,362.83 | Pledged for borrowings | | Intangible Assets | 30,770,412.17 | Pledged for borrowings | | **Total** | **164,965,674.98** | | [Other Disclosure Matters](index=25&type=section&id=V.%20Other%20Disclosure%20Matters) Discloses potential risks including industry policy, quality, raw material prices and supply, R&D, accounts receivable, and external investment risks, along with corresponding mitigation measures - The pharmaceutical industry is highly policy-driven, and the company will closely monitor changes in industrial policies and regulations to adjust its operating strategies in a timely manner[75](index=75&type=chunk) - Drug quality risk spans the entire process from raw material procurement to production, processing, and patient use; the company will fully comply with GMP regulations, strengthen drug source design management, and build a comprehensive traceability system[75](index=75&type=chunk)[76](index=76&type=chunk) - Prices and yields of traditional Chinese medicine are susceptible to external factors such as natural conditions and economic environment; the company will closely monitor price trends and coordinate reasonable inventory and procurement cycles[76](index=76&type=chunk)[77](index=77&type=chunk) - Drug R&D is characterized by high investment, long cycles, high risk, and strict regulation; the company will continuously strengthen R&D team building, enhance technical R&D capabilities, and prudently select R&D projects[77](index=77&type=chunk)[78](index=78&type=chunk) - Increased accounts receivable risk will be managed by continuously adjusting the structure of medical customers and strengthening accounts receivable and aging control[78](index=78&type=chunk) - External investment projects are subject to macroeconomic and industry policy influences, leading to uncertainty in investment returns; the company will closely monitor changes in the external environment and urge fund managers to strengthen post-investment management[79](index=79&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=27&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section covers changes in the company's directors and senior management, profit distribution plans, employee incentive schemes, environmental information disclosure, and contributions to rural revitalization [Changes in Company Directors and Senior Management](index=27&type=section&id=I.%20Changes%20in%20Company%20Directors%20and%20Senior%20Management) During the reporting period, the company's board of directors and senior management changed, with Mr. Wang Rongtao elected as Chairman and Mr. Li Jingliang as General Manager; the supervisory board was abolished, and its functions are now exercised by the Board's Audit Committee - Mr. Wang Rongtao was elected as the Chairman of the company's Tenth Board of Directors, and Mr. Li Jingliang was appointed as the company's General Manager[82](index=82&type=chunk)[83](index=83&type=chunk) - The company abolished the supervisory board, and its functions are now exercised by the Board's Audit Committee[82](index=82&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=27&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company's proposed semi-annual profit distribution or capital reserve conversion plan is "none", with no distribution or conversion - The company will not distribute profits or convert capital reserves in the semi-annual period[84](index=84&type=chunk) [Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=28&type=section&id=III.%20Status%20and%20Impact%20of%20Company%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company's third employee stock ownership plan completed transfer in November 2022, with a 12-month lock-up period, and its duration was extended to November 22, 2025; The company plans to implement a fourth employee stock ownership plan - The company's third employee stock ownership plan holds **6,265,207 shares**, with its duration extended to **November 22, 2025**[85](index=85&type=chunk) - The company plans to implement a fourth employee stock ownership plan[85](index=85&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=28&type=section&id=IV.%20Environmental%20Information%20of%20Listed%20Companies%20and%20Their%20Major%20Subsidiaries%20Included%20in%20the%20List%20of%20Enterprises%20Required%20to%20Disclose%20Environmental%20Information%20by%20Law) Henan Tailong Pharmaceutical Co., Ltd. is included in the list of enterprises required to disclose environmental information by law, and an index for its environmental information disclosure report is provided - Henan Tailong Pharmaceutical Co., Ltd. is included in the list of enterprises required to disclose environmental information by law, and an index for its environmental information disclosure report is provided[87](index=87&type=chunk) [Specific Situation of Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, and Other Work](index=28&type=section&id=V.%20Specific%20Situation%20of%20Consolidating%20and%20Expanding%20Poverty%20Alleviation%20Achievements%2C%20Rural%20Revitalization%2C%20and%20Other%20Work) The company invested a total of **524,600 yuan**, benefiting **208 people**, through establishing planting bases in authentic medicinal material producing areas and undertaking traditional Chinese medicine collection and processing projects, contributing to rural revitalization Poverty Alleviation and Rural Revitalization Project Investment | Project | Quantity/Content | | :--- | :--- | | Total Investment (ten thousand yuan) | 52.46 | | Of which: Funds (ten thousand yuan) | 52.46 | | Beneficiaries (persons) | 208 | | Assistance Form | Industrial poverty alleviation, employment poverty alleviation | - The company contributes to rural revitalization by leasing farmers' land in authentic medicinal material producing areas, establishing fully traceable standardized traditional Chinese medicine planting and production bases, and undertaking traditional Chinese medicine collection and processing projects, thereby increasing local employment and driving farmers' income growth[86](index=86&type=chunk) [Section V Significant Matters](index=29&type=section&id=Section%20V%20Significant%20Matters) This section details the fulfillment of commitments, absence of non-operating fund occupation by related parties, lack of illegal guarantees, major litigation, and the company's integrity status, along with significant related-party transactions and other important matters [Fulfillment of Commitments](index=29&type=section&id=I.%20Fulfillment%20of%20Commitments) Discloses the fulfillment of commitments by the company's controlling shareholders, other related parties, and the company regarding resolving horizontal competition, related-party transactions, and maintaining the independence of the listed company; all commitments were strictly fulfilled on time - Controlling shareholder Zhengzhou Tairong Industrial Investment Co., Ltd. and its controlling shareholders committed to resolving horizontal competition, standardizing related-party transactions, and maintaining the independence of the listed company; all were strictly fulfilled on time during the reporting period[89](index=89&type=chunk)[90](index=90&type=chunk) - Zhengzhou Zhongsheng Industrial Group Co., Ltd. committed to avoiding horizontal competition, reducing and standardizing related-party transactions, and made performance commitments; all were strictly fulfilled on time during the reporting period[89](index=89&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - Wu Lan and her spouse Tao Xinhua committed to avoiding horizontal competition and reducing and standardizing related-party transactions; all were strictly fulfilled on time during the reporting period[90](index=90&type=chunk)[91](index=91&type=chunk) [Non-operating Fund Occupation by Controlling Shareholders and Other Related Parties during the Reporting Period](index=32&type=section&id=II.%20Non-operating%20Fund%20Occupation%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties%20during%20the%20Reporting%20Period) During the reporting period, the company was not subject to non-operating fund occupation by controlling shareholders or other related parties - During the reporting period, the company was not subject to non-operating fund occupation by controlling shareholders or other related parties[93](index=93&type=chunk) [Illegal Guarantees](index=32&type=section&id=III.%20Illegal%20Guarantees) During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures - During the reporting period, the company did not provide external guarantees in violation of prescribed decision-making procedures[93](index=93&type=chunk) [Major Litigation and Arbitration Matters](index=33&type=section&id=VII.%20Major%20Litigation%20and%20Arbitration%20Matters) During the reporting period, the company had no major litigation or arbitration matters - During the reporting period, the company had no major litigation or arbitration matters[94](index=94&type=chunk) [Explanation of the Integrity Status of the Company, Its Controlling Shareholders, and Actual Controllers during the Reporting Period](index=33&type=section&id=IX.%20Explanation%20of%20the%20Integrity%20Status%20of%20the%20Company%2C%20Its%20Controlling%20Shareholders%2C%20and%20Actual%20Controllers%20during%20the%20Reporting%20Period) During the reporting period, the company, its controlling shareholders, and actual controllers maintained good integrity, with no unfulfilled court judgments or large overdue debts - During the reporting period, the company, its controlling shareholders, and actual controllers maintained good integrity, with no unfulfilled court judgments or large overdue debts[94](index=94&type=chunk) [Significant Related-Party Transactions](index=33&type=section&id=X.%20Significant%20Related-Party%20Transactions) Discloses daily operating related-party transactions, significant related-party transactions involving joint external investments, and related-party creditor-debtor relationships - The total estimated daily related-party transactions for the company and its controlled subsidiaries in 2025 will not exceed **15.07 million yuan**, with actual transactions totaling **5.2853 million yuan** during the reporting period[95](index=95&type=chunk) - The company jointly invested with its indirect controlling shareholder, Zhengzhou Gaoxin Industrial Investment Group Co., Ltd., to establish the Longhua Pharmaceutical Industry Fund, with the company having contributed **123.156 million yuan**[97](index=97&type=chunk) - The company received financial support of up to **1.2 billion yuan** from its indirect controlling shareholder Gaoxin Investment Control, with an outstanding balance of **284.7252 million yuan** at the end of the reporting period, and **4.9209 million yuan** in funding costs paid during the reporting period[98](index=98&type=chunk)[99](index=99&type=chunk) [Significant Contracts and Their Fulfillment](index=35&type=section&id=XI.%20Significant%20Contracts%20and%20Their%20Fulfillment) Discloses significant guarantees executed and outstanding during the reporting period, primarily company guarantees for its subsidiaries, with the total guarantee amount accounting for **18.92%** of the company's net assets Company's Total Guarantee Amount | Indicator | Amount (ten thousand yuan) | | :--- | :--- | | Total Guarantees Provided to Subsidiaries during Reporting Period | 24,508.41 | | Total Outstanding Guarantees to Subsidiaries at Period-End (B) | 30,274.05 | | Total Guarantees (A+B) | 30,274.05 | | Total Guarantees as % of Company's Net Assets | 18.92 | - The company primarily provides guarantees for its subsidiaries; at the end of the reporting period, the total guarantee amount was **302.7405 million yuan**, accounting for **18.92%** of the company's net assets[102](index=102&type=chunk) [Explanation of Other Significant Matters](index=37&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) Discloses the completion of the company's share repurchase plan and the proposal to apply for registration and issuance of ultra-short-term financing bonds - The company has completed its share repurchase, repurchasing **6,438,700 shares** with a total capital expenditure of **30.0577 million yuan**[103](index=103&type=chunk) - The company plans to apply for registration and issuance of ultra-short-term financing bonds with a total amount not exceeding (including) **800 million yuan**[104](index=104&type=chunk) [Section VI Share Changes and Shareholder Information](index=38&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital and shareholder structure, including the total number of shareholders and the top ten shareholders [Share Capital Changes](index=38&type=section&id=I.%20Share%20Capital%20Changes) 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[106](index=106&type=chunk) [Shareholder Information](index=38&type=section&id=II.%20Shareholder%20Information) Discloses the total number of common shareholders, the top ten shareholders, and the top ten unrestricted common shareholders at the end of the reporting period - As of the end of the reporting period, the total number of common shareholders was **40,882**[107](index=107&type=chunk) Top Ten Shareholders at Period-End | Shareholder Name | Shares Held at Period-End (shares) | Percentage (%) | Share Status | Number (shares) | | :--- | :--- | :--- | :--- | :--- | | Zhengzhou Tairong Industrial Investment Co., Ltd. | 82,441,168 | 14.37 | Pledged | 41,220,584 | | Zhengzhou Zhongsheng Industrial Group Co., Ltd. | 50,000,000 | 8.71 | Pledged | 50,000,000 | | Wu Lan | 11,433,434 | 1.99 | Unrestricted | 0 | | Xu Yiguo | 6,429,000 | 1.12 | Unrestricted | 0 | | Henan Tailong Pharmaceutical Co., Ltd. - Third Employee Stock Ownership Plan | 6,265,207 | 1.09 | Unrestricted | 0 | - The largest shareholder, Zhengzhou Tairong Industrial Investment Co., Ltd., holds **14.37%** of shares, of which **41,220,584 shares** are pledged[109](index=109&type=chunk) - The second largest shareholder, Zhengzhou Zhongsheng Industrial Group Co., Ltd., holds **8.71%** of shares, with all **50,000,000 shares** pledged[109](index=109&type=chunk) [Section VII Bond-Related Information](index=40&type=section&id=Section%20VII%20Bond-Related%20Information) This section confirms the absence of corporate bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds during the reporting period - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments, nor any convertible corporate bonds[113](index=113&type=chunk) [Section VIII Financial Report](index=41&type=section&id=Section%20VIII%20Financial%20Report) This section presents the company's semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies and financial items [Audit Report](index=41&type=section&id=I.%20Audit%20Report) This semi-annual report has not been audited - This semi-annual report has not been audited[5](index=5&type=chunk) [Financial Statements](index=41&type=section&id=II.%20Financial%20Statements) Provides the company's consolidated and parent company balance sheets, income statements, and cash flow statements for the first half of 2025, as well as consolidated and parent company statements of changes in owners' equity Consolidated Balance Sheet Key Data | Item | June 30, 2025 (yuan) | December 31, 2024 (yuan) | | :--- | :--- | :--- | | Total Assets | 3,579,032,630.35 | 3,489,768,020.93 | | Total Liabilities | 1,923,908,598.80 | 1,863,525,871.55 | | Total Owners' Equity | 1,655,124,031.55 | 1,626,242,149.38 | Consolidated Income Statement Key Data | Item | 2025 Semi-Annual (yuan) | 2024 Semi-Annual (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 762,431,550.01 | 927,248,514.93 | | Total Profit | 24,358,725.70 | 21,761,268.60 | | Net Profit | 22,601,677.95 | 26,029,644.65 | | Net Profit Attributable to Parent Company Shareholders | 19,346,600.25 | 26,617,997.43 | Consolidated Cash Flow Statement Key Data | Item | 2025 Semi-Annual (yuan) | 2024 Semi-Annual (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -111,681,634.10 | -91,951,749.06 | | Net Cash Flow from Investing Activities | 90,711,591.51 | 95,542,622.53 | | Net Cash Flow from Financing Activities | 95,560,568.00 | 105,133,781.60 | | Net Increase in Cash and Cash Equivalents | 74,590,525.41 | 108,724,655.07 | [Company Basic Information](index=55&type=section&id=III.%20Company%20Basic%20Information) Introduces the company's establishment, name changes, share capital structure, controlling shareholders, actual controllers, and main business activities and scope - Henan Tailong Pharmaceutical Co., Ltd. was officially listed on the Shanghai Stock Exchange on **August 13, 1999**, with stock code **600222**[137](index=137&type=chunk) - As of June 30, 2025, the company's share capital was **573.886283 million shares**; Zhengzhou Tairong Industrial Investment Co., Ltd. is the controlling shareholder, and Zhengzhou High-tech Industrial Development Zone Management Committee is the actual controller[138](index=138&type=chunk) - The company's main business activities are pharmaceutical manufacturing, pharmaceutical and medicinal material distribution, and pharmaceutical R&D services[138](index=138&type=chunk) [Basis for Preparation of Financial Statements](index=55&type=section&id=IV.%20Basis%20for%20Preparation%20of%20Financial%20Statements) The financial statements are prepared on a going concern basis, in accordance with "Enterprise Accounting Standards", and based on significant accounting policies and estimates - The company's financial statements are prepared on a going concern basis, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance, based on actual transactions and events[139](index=139&type=chunk) - The company has no significant doubts about its ability to continue as a going concern for **12 months** from the end of the current period[140](index=140&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=56&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Accounting%20Estimates) Details the company's adherence to enterprise accounting standards, accounting period, operating cycle, functional currency, materiality criteria, business combinations, consolidated financial statements, joint arrangements, cash and cash equivalents, foreign currency transactions, financial instruments, notes receivable, accounts receivable, other receivables, inventories, contract assets, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, intangible assets, impairment of long-term assets, long-term deferred expenses, contract liabilities, employee benefits, provisions, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases - The company's accounting year is the calendar year, with a normal operating cycle of **12 months**, and the functional currency is RMB[142](index=142&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk) - The company classifies financial assets into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[154](index=154&type=chunk)[155](index=155&type=chunk) - Inventory is valued using the weighted average method when issued, and a perpetual inventory system is used[173](index=173&type=chunk) - Fixed asset depreciation is calculated using the straight-line method, with buildings depreciated over **20-50 years**[185](index=185&type=chunk)[186](index=186&type=chunk) - The company recognizes revenue when it satisfies a performance obligation in the contract, i.e., when the customer obtains control of the related goods or services, at the transaction price allocated to that performance obligation[205](index=205&type=chunk) - Government grants are classified as related to daily activities (recognized in other income) or unrelated to daily activities (recognized in non-operating income), and are recognized and measured based on whether they relate to assets or income[209](index=209&type=chunk) [Taxation](index=74&type=section&id=VI.%20Taxation) Discloses the company's main tax types and rates, including VAT, urban maintenance and construction tax, education surcharge, local education surcharge, and corporate income tax, and explains the tax incentives enjoyed by the company and its subsidiaries Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of goods or processing, repair and maintenance services, sales of services, intangible assets, real estate income-based output tax, less deductible input tax | 13%, 9%, 6%, Exempt | | Urban Maintenance and Construction Tax | Actual paid turnover tax | 7%, 5% | | Education Surcharge | Actual paid turnover tax | 3% | | Local Education Surcharge | Actual paid turnover tax | 2% | | Corporate Income Tax | Taxable income | 25%, 20%, 15%, Exempt | - The company enjoys a **5% VAT super deduction** policy for advanced manufacturing enterprises; some subsidiaries' income from technology transfer and development is exempt from VAT[219](index=219&type=chunk)[220](index=220&type=chunk) - The company and some subsidiaries are recognized as high-tech enterprises, enjoying a **15% corporate income tax** preferential rate[220](index=220&type=chunk)[221](index=221&type=chunk) - Some subsidiaries engaged in primary processing of agricultural products or meeting the criteria for small and micro-profit enterprises enjoy income tax exemption or a reduced **20% tax rate**[221](index=221&type=chunk)[222](index=222&type=chunk) [Notes to Consolidated Financial Statement Items](index=77&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) Provides detailed notes and explanations for items in the consolidated financial statements, including monetary funds, trading financial assets, notes receivable, accounts receivable, inventories, contract assets, long-term equity investments, other equity instrument investments, other non-current financial assets, investment properties, fixed assets, construction in progress, right-of-use assets, intangible assets, goodwill, long-term deferred expenses, deferred income tax assets/liabilities, short-term borrowings, notes payable, accounts payable, contract liabilities, employee benefits payable, taxes payable, other payables, non-current liabilities due within one year, other current liabilities, long-term borrowings, lease liabilities, deferred income, share capital, treasury stock, other comprehensive income, surplus reserves, undistributed profits, operating revenue and costs, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, fair value change gains, credit impairment losses, asset impairment losses, asset disposal gains, non-operating income, non-operating expenses, income tax expenses, and cash flow statement items Monetary Funds Composition | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Cash on Hand | 713,705.27 | 458,490.00 | | Bank Deposits | 217,916,625.97 | 143,581,315.83 | | Other Monetary Funds | 25,000,000.00 | 36,000,000.00 | | **Total** | **243,630,331.24** | **180,039,805.83** | - Of the monetary funds, **25,146,899.98 yuan** are restricted, mainly for acceptance deposits[225](index=225&type=chunk) - Accounts receivable at period-end had a book balance of **1,019,122,455.40 yuan**, with bad debt provisions of **83,657,365.66 yuan**[236](index=236&type=chunk) - Inventory at period-end had a book value of **476,078,190.77 yuan**, including **224,091,984.43 yuan** in raw materials and **191,524,340.28 yuan** in inventory goods[265](index=265&type=chunk) - Long-term borrowings at period-end were **325,070,459.45 yuan**, a significant increase of **10665.41%** from the beginning of the period[64](index=64&type=chunk)[327](index=327&type=chunk) - Operating revenue was **762,431,550.01 yuan**, and operating cost was **574,172,789.53 yuan**[347](index=347&type=chunk) - R&D expenses were **25,905,142.62 yuan**, a year-on-year decrease of **56.93%**[355](index=355&type=chunk) - Net cash flow from operating activities was **-111,681,634.10 yuan**[380](index=380&type=chunk) [R&D Expenses](index=128&type=section&id=VIII.%20R%26D%20Expenses) Discloses the composition of the company's R&D expenses by nature for the current period, with **25,905,142.62 yuan** expensed and **1,689,957.30 yuan** capitalized R&D Expenses by Nature | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Personnel Expenses | 18,303,234.44 | 29,618,002.92 | | Material Costs | 3,438,503.37 | 12,108,668.08 | | Depreciation | 3,150,158.39 | 3,251,786.98 | | Amortization of Intangible and Other Assets | 1,433,633.16 | 1,433,633.16 | | Outsourcing Fees | 1,067,466.63 | 17,365,720.98 | | Office and Travel Expenses | 202,103.93 | 282,222.12 | | **Total** | **27,595,099.92** | **64,060,034.24** | | Of which: Expensed R&D | 25,905,142.62 | 60,152,217.93 | | Capitalized R&D | 1,689,957.30 | 3,907,816.31 | - Total R&D expenses for the current period were **27,595,099.92 yuan**, a significant decrease from **64,060,034.24 yuan** in the previous period[388](index=388&type=chunk) [Changes in Consolidation Scope](index=129&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company had no business combinations involving non-common control, common control, reverse acquisitions, or disposals of subsidiaries leading to loss of control - During the reporting period, the company had no business combinations involving non-common control, common control, reverse acquisitions, or disposals of subsidiaries leading to loss of control, and no significant changes in the scope of consolidation[391](index=391&type=chunk) [Interests in Other Entities](index=130&type=section&id=X.%20Interests%20in%20Other%20Entities) Discloses the composition of the company's enterprise group, including major subsidiaries and their shareholding percentages, as well as key financial information for important non-wholly-owned subsidiaries, joint ventures, and associates Enterprise Group Composition (Partial) | Subsidiary Name | Shareholding (%) (Direct) | Shareholding (%) (Indirect) | Acquisition Method | | :--- | :--- | :--- | :--- | | Tongjuntang Pharmaceutical Co., Ltd. | 100 | | Business combination not under common control | | Beijing Xinlingxian Pharmaceutical Technology Development Co., Ltd. | 87.38 | | Business combination not under common control | | Henan Tongjuntang Authentic Medicinal Materials Co., Ltd. | 100 | | Establishment | | Zhejiang Tongjuntang Traditional Chinese Medicine Decoction Pieces Co., Ltd. | | 100 | Establishment | Key Financial Information of Important Non-Wholly-Owned Subsidiaries | Subsidiary Name | Minority Shareholding (%) | Profit/Loss Attributable to Minority Shareholders (yuan) | Operating Revenue (ten thousand yuan) | Net Profit (ten thousand yuan) | | :--- | :--- | :--- | :--- | :--- | | Beijing Xinlingxian Pharmaceutical Technology Development Co., Ltd. | 12.62 | 657,396.73 | 11,233.29 | 559.82 | - Zhengzhou Longhua Pharmaceutical Industry Fund Partnership (Limited Partnership) is a joint venture, with the company holding **55%** and accounted for using the equity method[398](index=398&type=chunk) - Henan Jinggang Advanced Manufacturing Equity Investment Fund (Limited Partnership) is an associate, with the company holding **17.3334%** and able to exert significant influence over its investment decisions through its wholly-owned subsidiary, accounted for using the equity method[399](index=399&type=chunk) [Government Grants](index=136&type=section&id=XI.%20Government%20Grants) Discloses government grant liability items and the amount of government grants recognized in profit or loss for the current period Government Grant Liability Items | Financial Statement Item | Period-Beginning Balance (yuan) | New Grants in Current Period (yuan) | Amount Recognized in Non-Operating Income in Current Period (yuan) | Amount Transferred to Other Income in Current Period (yuan) | Period-End Balance (yuan) | Related to Asset/Income | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 2,782,550.13 | | | 171,699.96 | 2,610,850.17 | Asset-related government grants | Government Grants Recognized in Current Profit or Loss | Type | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Income-related | 4,181,283.31 | 1,618,182.42 | | **Total** | **4,181,283.31** | **1,618,182.42** | [Risks Related to Financial Instruments](index=137&type=section&id=XII.%20Risks%20Related%20to%20Financial%20Instruments) Explains the company's exposure to credit risk, liquidity risk, and market risk (including interest rate risk and foreign currency risk), and outlines measures taken to manage these risks - The company's financial instruments are primarily exposed to credit risk, liquidity risk, and market risk (including interest rate risk and foreign currency risk)[410](index=410&type=chunk)[412](index=412&type=chunk) - Credit risk mainly arises from bank deposits and receivables; the company controls this by placing bank deposits with highly-rated financial institutions and conducting credit assessments and continuous monitoring of customers[410](index=410&type=chunk) - Liquidity risk is managed by monitoring cash balances, readily marketable securities, and rolling forecasts of cash flows for the next **12 months**[411](index=411&type=chunk) - Interest rate risk is not significant as the company's borrowings are all at fixed rates; foreign currency risk is not significant as the company operates within China and all its activities are denominated in RMB[412](index=412&type=chunk) [Fair Value Disclosure](index=139&type=section&id=XIII.%20Fair%20Value%20Disclosure) Discloses the fair value of the company's assets and liabilities measured at fair value at the end of the reporting period, and explains the basis for determining fair value measurements at each level Fair Value of Assets Measured at Fair Value at Period-End | Item | Level 1 Fair Value Measurement (yuan) | Level 2 Fair Value Measurement (yuan) | Level 3 Fair Value Measurement (yuan) | Total (yuan) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | | 2,200,069.85 | | 2,200,069.85 | | Other Equity Instrument Investments | | | 279,751,194.06 | 279,751,194.06 | | Non-current Financial Assets | | | 37,499,313.87 | 37,499,313.87 | | **Total Assets Continuously Measured at Fair Value** | | **2,200,069.85** | **317,250,507.93** | **319,450,577.78** | - Level 1 fair value measurement uses unadjusted quoted prices in active markets; Level 2 uses directly or indirectly observable inputs other than Level 1; Level 3 uses unobservable inputs[416](index=416&type=chunk)[417](index=417&type=chunk)[418](index=418&type=chunk) [Related Parties and Related-Party Transactions](index=140&type=section&id=XIV.%20Related%20Parties%20and%20Related-Party%20Transactions) Provides detailed disclosure of the company's parent company, subsidiaries, joint ventures and associates, and other related parties, and lists related-party transactions such as purchases and sales of goods, provision and acceptance of services, related-party leases, related-party guarantees, and related-party fund borrowings - Zhengzhou Tairong Industrial Investment Co., Ltd. is the company's controlling shareholder, and Zhengzhou High-tech Industrial Development Zone Management Committee is the company's ultimate controlling party[420](index=420&type=chunk)[421](index=421&type=chunk)[422](index=422&type=chunk) - During the reporting period, the company engaged in daily related-party transactions with Hangzhou Derun Quan Health Industry Development Co., Ltd., Zhengzhou Weixian Pharmaceutical Technology Co., Ltd., and other related parties, including purchases and sales of goods, acceptance of warehousing services, and provision of R&D services[424](index=424&type=chunk)[425](index=425&type=chunk) - The company recognized **646,003.67 yuan** in rental income as a lessor and paid **78,275.22 yuan** in rental expenses as a lessee[425](index=425&type=chunk)[426](index=426&type=chunk) - The company provided multiple guarantees for its subsidiaries as a guarantor and received guarantees from controlling shareholders and related parties as a guaranteed party, with total guarantee amounts of **1,047,725,200.00 yuan**[426](index=426&type=chunk)[427](index=427&type=chunk)[428](index=428&type=chunk) - The company borrowed funds from its indirect controlling shareholder, Zhengzhou Gaoxin Investment Holding Group Co., Ltd., and paid **4.9209 million yuan** in funding costs during the reporting period[429](index=429&type=chunk) - Key management personnel compensation for the current period was **4.485 million yuan**[431](index=431&type=chunk) [Share-based Payment](index=146&type=section&id=XV.%20Share-based%20Payment) During the reporting period, the company had no equity-settled or cash-settled share-based payment arrangements, nor did it incur any share-based payment expenses - During the reporting period, the company had no equity-settled share-based payment arrangements, nor did it incur any share-based payment expenses[437](index=437&type=chunk) [Commitments and Contingencies](index=147&type=section&id=XVI.%20Commitments%20and%20Contingencies) Discloses the company's significant outstanding commitments at the balance sheet date, primarily existing lease contracts, with estimated future lease payments totaling **32,517,468.68 yuan** Significant Commitments | Project Name | Estimated Future Lease Payments (yuan) | | :--- | :--- | | Existing Lease Contracts | 32,517,468.68 | - At the end of the reporting period, the company had no significant contingent matters requiring disclosure[439](index=439&type=chunk) [Post-Balance Sheet Events](index=147&type=section&id=XVII.%20Post-Balance%20Sheet%20Events) During the reporting period, the company had no significant non-adjusting events, profit distribution, sales returns, or other post-balance sheet events - During the reporting period, the company had no significant non-adjusting events, profit distribution, sales returns, or other post-balance sheet events[439](index=439&type=chunk) [Other Significant Matters](index=148&type=section&id=XVIII.%20Other%20Significant%20Matters) During the reporting period, the company had no prior period accounting error corrections, significant debt restructurings, asset exchanges, annuity plans, discontinued operations, or other matters; Discloses the basis for determining the company's reporting segments and their financial information - The company identified four reporting segments: pharmaceutical manufacturing, pharmaceutical R&D services, pharmaceutical and medicinal material distribution, and others, based on its internal organizational structure, management requirements, and internal reporting system[440](index=440&type=chunk) Reporting Segment Financial Information (ten thousand yuan) | Item | Pharmaceutical Manufacturing | Pharmaceutical R&D Services | Pharmaceutical and Medicinal Material Distribution | Other | Inter-segment Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 54,228.14 | 11,233.29 | 10,992.88 | 282.30 | 493.46 | 76,243.15 | | Operating Cost | 41,102.17 | 7,316.32 | 9,296.23 | 94.63 | 392.08 | 57,417.27 | - The company did not disclose the total assets and total liabilities for each reporting segment because its wholly-owned subsidiary Tongjuntang has both pharmaceutical manufacturing and pharmaceutical distribution businesses, making it impossible to distinguish the assets and liabilities belonging to each segment[443](index=443&type=chunk) [Notes to Parent Company Financial Statement Major Items](index=149&type=section&id=XIX.%20Notes%20to%20Parent%20Company%20Financial%20Statement%20Major%20Items) Provides detailed notes for major items in the parent company's financial statements, including accounts receivable, other receivables, and long-term equity investments - Parent company's accounts receivable at period-end had a book balance of **199,512,852.28 yuan**, with bad debt provisions of **7,331,184.50 yuan**[448](index=448&type=chunk) - Parent company's other receivables at period-end had a book balance of **532,509,351.60 yuan**, with bad debt provisions of **16,241,481.20 yuan**[459](index=459&type=chunk)[460](index=460&type=chunk) - Parent company's long-term equity investments had a book value of **1,248,250,149.48 yuan**, mainly including investments in subsidiaries and investments in associates and joint ventures[462](index=462&type=chunk) - Parent company's operating revenue was **201,585,687.14 yuan**, and operating cost was **118,804,378.04 yuan**[465](index=465&type=chunk) - Parent company's investment income was **634,840.46 yuan**, mainly from dividend income obtained from other equity instrument investments during the holding period[465](index=465&type=chunk) [Supplementary Information](index=158&type=section&id=XX.%20Supplementary%20Information) Provides supplementary information including a detailed statement of non-recurring gains and losses, return on net assets, and earnings per share Current Period Non-recurring Gains and Losses Details | Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -73,320.16 | | Government grants recognized in current profit or loss | 4,181,283.31 | | Fair value change gains and losses | 1,451,657.50 | | Other non-operating income and expenses | -65,170.45 | | Other gains and losses meeting the definition of non-recurring gains and losses | -292,295.91 | | Less: Income tax impact | 780,874.02 | | Minority shareholder equity impact (after tax) | 269,122.45 | | **Total** | **4,152,157.82** | Return on Net Assets and Earnings Per Share | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Basic Earnings Per Share (yuan/share) | Diluted Earnings Per Share (yuan/share) | | :--- | :--- | :--- | :--- | | Net profit attributable to common shareholders of the company | 1.22 | 0.0350 | 0.0350 | | Net profit attributable to common shareholders of the company after deducting non-recurring gains and losses | 0.96 | 0.0275 | 0.0275 |

新锦动力集团股份有限公司 2025 年半年度报告全文 新锦动力集团股份有限公司 2025 年半年度报告 2025-055 2025 年 8 月 1 新锦动力集团股份有限公司 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。 公司负责人王莉斐、主管会计工作负责人张晓晶及会计机构负责人（会 计主管人员）张晓晶声明：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。 本报告中如有涉及未来的计划、业绩预测等方面的内容，均不构成本公司 对任何投资者及相关人士的实质承诺，投资者及相关人士均应对此保持足够 的风险认识，并且应当理解计划、预测与承诺之间的差异。 公司在经营中可能存在的风险因素内容已在本报告"第三节 管理层讨论 与分析"之"十、公司面临的风险和应对措施"部分予以描述，敬请投资者 注意并仔细阅读该章节全部内容。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | 第一节 | 重要提示、目录和释义 ...

[Important Notice](index=2&type=section&id=Important%20Notice) [Statement by the Board of Directors, Supervisory Board, and Senior Management](index=2&type=section&id=Statement%20by%20the%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20and%20Senior%20Management) 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 and assume legal responsibility, with the financial report declared true, accurate, and complete by key executives - 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 and assume legal responsibility[3](index=3&type=chunk) - This semi-annual report has not been audited[5](index=5&type=chunk) - Company head He Zuxun, chief accountant Shu Meng, and head of accounting department Duan Kunfen declare that the financial report in the semi-annual report is true, accurate, and complete[5](index=5&type=chunk) [Profit Distribution Plan](index=2&type=section&id=Profit%20Distribution%20Plan) The Board of Directors approved the 2025 semi-annual profit distribution plan, proposing a cash dividend of 3.90 yuan (tax inclusive) per 10 shares to all shareholders, totaling 202,120,784.58 yuan (tax inclusive), with no bonus shares or capital reserve conversion - The company approved the "Proposal on the 2025 Semi-Annual Profit Distribution Plan"[6](index=6&type=chunk) 2025 Semi-Annual Profit Distribution Plan | Indicator | Content | | :--- | :--- | | Cash Dividend per 10 Shares (tax inclusive) | 3.90 yuan | | Total Cash Dividend (tax inclusive) | 202,120,784.58 yuan | | Bonus Shares | No | | Capital Reserve Conversion to Share Capital | No | [Risk Statement](index=2&type=section&id=Risk%20Statement) The company advises investors to be aware of investment risks, as forward-looking statements regarding future plans and development strategies in this report do not constitute substantive commitments, with detailed risks and countermeasures for production and operation provided - Forward-looking statements in this report, including future plans and development strategies, do not constitute a substantive commitment to investors, who are advised to be aware of investment risks[7](index=7&type=chunk) - The company has detailed various risks and countermeasures it may face in its production and operation in this report, please refer to the "Risks that may be faced" section in "Management Discussion and Analysis" (Section III)[8](index=8&type=chunk) [Definitions](index=4&type=section&id=Definitions) [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This section defines common terms used in the report, including company name, reporting period, main products (e.g., feed, live pigs, breeding pigs, commercial pigs, piglets, fattening pigs, pork products, by-products), industry terms (e.g., African Swine Fever, PIC Company, feed-to-meat ratio), and management and environmental indicators (e.g., ISO22000, HACCP, CODcr, NH3-N, TN, P, PH, SAP), ensuring accurate understanding of the report content - This section provides detailed explanations of common terms appearing in the report, including company abbreviation, reporting period, and definitions of various live pig products (e.g., breeding pigs, commercial pigs, piglets, fattening pigs)[13](index=13&type=chunk) - It covers professional terms such as feed product types (pig compound feed, concentrated feed, premix feed), major animal diseases (African Swine Fever, PRRS, PED, Pseudorabies), and food safety and environmental management systems (ISO22000, HACCP, CODcr, NH3-N, SAP), among others[13](index=13&type=chunk)[14](index=14&type=chunk) [Company Profile and Key Financial Indicators](index=5&type=section&id=Company%20Profile%20and%20Key%20Financial%20Indicators) [Company Information](index=5&type=section&id=Company%20Information) This section lists the company's Chinese name, abbreviation, English name and abbreviation, and legal representative information, clarifying the company's basic identity Company Basic Information | Indicator | Content | | :--- | :--- | | Chinese Name | Yunnan Shennong Agricultural Industry Group Co.,LTD. | | Chinese Abbreviation | Shennong Group | | English Name | Yunnan Shennong Agricultural Industry Group Co.,LTD. | | English Abbreviation | Shennong Group | | Legal Representative | He Zuxun | [Contact Person and Contact Information](index=5&type=section&id=Contact%20Person%20and%20Contact%20Information) This section provides the names, contact addresses, telephone numbers, fax numbers, and email addresses of the company's Board Secretary and Securities Affairs Representative, facilitating communication for investors and relevant parties Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Jiang Hong | 39th Floor, Kunming Hang Lung Plaza Office Building, No. 23 Dongfeng East Road, Panlong District, Kunming City, Yunnan Province | 0871-63193176 | 0871-63193176 | jh@ynsnjt.com | | Securities Affairs Representative | Li Dongbing | 39th Floor, Kunming Hang Lung Plaza Office Building, No. 23 Dongfeng East Road, Panlong District, Kunming City, Yunnan Province | 0871-63193176 | 0871-63193176 | ldb@ynsnjt.com | [Brief Introduction to Changes in Basic Information](index=6&type=section&id=Brief%20Introduction%20to%20Changes%20in%20Basic%20Information) The company's registered address changed on October 26, 2016, with its current office located at Kunming Hang Lung Plaza and its website at www.ynsnjt.com - The company's registered address changed on October 26, 2016, from Chawangshan, Eastern Suburb of Kunming City, Yunnan Province, to Plot 14-06-1, Puzhaohaizi Area, Kunming Economic Development Zone[18](index=18&type=chunk) - The company's office address is 39th Floor, Kunming Hang Lung Plaza Office Building, No. 23 Dongfeng East Road, Panlong District, Kunming City, Yunnan Province, postal code 650051[18](index=18&type=chunk) - The company's website is www.ynsnjt.com, and its email address is ynsnjt@ynsnjt.com[18](index=18&type=chunk) [Brief Introduction to Changes in Information Disclosure and Document Custody Locations](index=6&type=section&id=Brief%20Introduction%20to%20Changes%20in%20Information%20Disclosure%20and%20Document%20Custody%20Locations) The company designates "China Securities Journal," "Shanghai Securities News," "Securities Daily," and "Securities Times" as information disclosure newspapers, with the semi-annual report published on the Shanghai Stock Exchange website and available for inspection at the company's office address - The company's selected newspapers for information disclosure are "China Securities Journal," "Shanghai Securities News," "Securities Daily," and "Securities Times"[19](index=19&type=chunk) - The website address for publishing the semi-annual report is http://www.sse.com.cn[19](index=19&type=chunk) - The company's semi-annual report is available for inspection at 39th Floor, Kunming Hang Lung Plaza Office Building, No. 23 Dongfeng East Road, Panlong District, Kunming City, Yunnan Province[19](index=19&type=chunk) [Brief Introduction to Company Shares](index=6&type=section&id=Brief%20Introduction%20to%20Company%20Shares) The company's shares are RMB ordinary shares, listed and traded on the Shanghai Stock Exchange, with the stock abbreviation Shennong Group and stock code 605296 Company Stock Information | Share Type | Stock Exchange | Stock Abbreviation | Stock Code | Former Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | RMB Ordinary Shares | Shanghai Stock Exchange | Shennong Group | 605296 | Not Applicable | [Company's Key Accounting Data and Financial Indicators](index=6&type=section&id=Company%27s%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In the first half of 2025, the company's operating revenue increased by **12.16%**, with total profit and net profit attributable to parent company both achieving significant growth exceeding **200%**, and net cash flow from operating activities increasing by **88.16%**, demonstrating strong profitability and improved cash flow, alongside substantial increases in basic earnings per share and weighted average return on net assets Key Accounting Data for H1 2025 | Key Accounting Data | Current Reporting Period (Jan-Jun) | Prior Year Period | % Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue (yuan) | 2,797,626,119.42 | 2,494,408,913.13 | 12.16 | | Total Profit (yuan) | 388,448,016.77 | 124,037,818.40 | 213.17 | | Net Profit Attributable to Shareholders of Listed Company (yuan) | 387,516,418.92 | 123,947,136.82 | 212.65 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses (yuan) | 397,802,621.08 | 136,820,246.32 | 190.75 | | Net Cash Flow from Operating Activities (yuan) | 557,444,348.73 | 296,261,844.46 | 88.16 | | Net Assets Attributable to Shareholders of Listed Company (period-end) (yuan) | 5,122,769,435.21 | 4,832,547,371.77 | 6.01 | | Total Assets (period-end) (yuan) | 6,926,830,527.47 | 6,655,097,461.07 | 4.08 | Key Financial Indicators for H1 2025 | Key Financial Indicators | Current Reporting Period | Prior Year Period | % Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.75 | 0.24 | 212.50 | | Diluted Earnings Per Share (yuan/share) | 0.75 | 0.24 | 212.50 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (yuan/share) | 0.77 | 0.26 | 196.15 | | Weighted Average Return on Net Assets (%) | 7.82 | 2.91 | Increased by 4.91 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 8.02 | 3.21 | Increased by 4.81 percentage points | [Non-Recurring Gains and Losses Items and Amounts](index=7&type=section&id=Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Total non-recurring gains and losses for the period amounted to **-10,286,202.16 yuan**, primarily comprising gains from disposal of non-current assets, government subsidies, fair value changes of financial assets, capital occupation fees, and non-operating income/expenses such as pig mortality losses, fixed asset write-offs, and donation expenditures Non-Recurring Gains and Losses Items and Amounts for H1 2025 | Non-Recurring Gains and Losses Item | Amount (yuan) | Notes | | :--- | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | 174,271.01 | Primarily gains from termination of lease for right-of-use assets | | Government Subsidies Included in Current Profit and Loss | 1,087,834.52 | Primarily government subsidy income | | Gains and Losses from Fair Value Changes of Financial Assets and Liabilities Held by Non-Financial Enterprises and from Disposal of Financial Assets and Liabilities | 2,493,235.28 | Primarily investment income from disposal of trading financial assets and fair value changes of derivative financial assets | | Capital Occupation Fees Received from Non-Financial Enterprises Included in Current Profit and Loss | 875,156.53 | Primarily interest income from loans to cooperative farmers | | Other Non-Operating Income and Expenses Apart from the Above Items | -15,564,580.70 | Primarily pig mortality losses, fixed asset write-offs, and donation expenditures | | Less: Income Tax Impact | -647,881.20 | | | Total | -10,286,202.16 | | [Net Profit After Deducting Impact of Share-Based Payments](index=8&type=section&id=Net%20Profit%20After%20Deducting%20Impact%20of%20Share-Based%20Payments) Net profit after deducting the impact of share-based payments for the current period was **385,000,010.64 yuan**, representing a **232.05%** increase from the prior year, indicating a significant improvement in the company's profitability after excluding equity incentive expenses Net Profit After Deducting Impact of Share-Based Payments | Key Accounting Data | Current Reporting Period (Jan-Jun) | Prior Year Period | % Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Impact of Share-Based Payments (yuan) | 385,000,010.64 | 115,947,815.98 | 232.05 | [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) [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) In the first half of 2025, with the national economy recovering and stable hog prices, the company maintained its full-chain hog industry strategy, enhancing its advantages through cost reduction, efficiency improvement, and technological upgrades. The feed industry saw a **7.70%** increase in output, hog farming a **0.60%** increase in slaughter volume, and slaughtering a **14.5%** increase, while the food deep processing output value is projected to exceed **15.9 trillion yuan**, driven by demand for high-value-added products. The company's main businesses include feed production, hog farming, slaughtering, and food deep processing, forming a complete industrial chain, with digital management, strategic procurement, and refined formula management improving operational efficiency and product quality - 2025年上半年，国民经济持续恢复向好，生猪价格持续稳定运行，保持了较好的盈利性[29](index=29&type=chunk) - The company firmly implements a high-quality development strategy, adheres to a full-chain hog industry development strategy, and continuously focuses on building a leading enterprise with an integrated hog industry chain[29](index=29&type=chunk) [Industry Overview](index=8&type=section&id=Industry%20Overview) In the first half of 2025, the total output of the feed industry increased by **7.70%**, but ex-factory prices of main products showed a downward trend amid fierce market competition. The hog farming industry saw a **0.60%** increase in slaughter volume and a **0.10%** increase in sow inventory, accelerating its scale-up. Hog slaughter volume increased by **14.5%**, with the industry transitioning towards intensive and efficient operations. Food deep processing output value is projected to exceed **15.9 trillion yuan**, driven by surging demand for high-value-added products due to consumption upgrades, supported by national policies for healthy industry development H1 2025 Feed Industry Output | Indicator | Output (10,000 tons) | YoY Growth (%) | | :--- | :--- | :--- | | National Industrial Feed Total Output | 15,850 | 7.70 | | Compound Feed | 14,807 | 8.10 | | Additive Premix Feed | 342 | 6.90 | | Concentrated Feed | 614 | -1.50 | - In the first half of 2025, national hog slaughter volume was **366.19 million** heads, a **0.60%** year-on-year increase; sow inventory was **40.43 million** heads, a **0.10%** year-on-year increase[31](index=31&type=chunk) - In the first half of 2025, national designated hog slaughtering enterprises above designated size cumulatively slaughtered **184 million** heads, a **14.5%** increase compared to the same period in 2024[32](index=32&type=chunk) - Food processing output value is expected to exceed **15.9 trillion yuan** in 2025, with a compound annual growth rate of **7.8%** from 2020-2025, driven by surging demand for high-value-added products[33](index=33&type=chunk) [Explanation of the Company's Main Business Operations](index=9&type=section&id=Explanation%20of%20the%20Company%27s%20Main%20Business%20Operations) The company is a national key leading enterprise in agricultural industrialization, integrating feed production, hog farming, slaughtering, and food deep processing, with main products including feed, live hogs, fresh pork, and deep-processed products. The company optimizes its supply chain through digital management tools, reduces raw material costs via strategic procurement and futures hedging, and establishes partnerships with leading enterprises. Sales channels include internal sales, distributors, brokers, self-owned slaughterhouses, farmers' markets, fresh food supermarkets, and online platforms, also offering custom slaughtering services. The company emphasizes quality, biosecurity, and traceability across all business segments, forming a complete industrial chain - The company is a national key leading enterprise in agricultural industrialization, integrating feed production, hog farming, slaughtering, and food deep processing, and is also the largest hog farming enterprise in Yunnan Province[34](index=34&type=chunk) - The company's main businesses include feed processing and sales, hog farming and sales, hog slaughtering and fresh pork food sales, and food deep processing and sales[34](index=34&type=chunk) - The company enhances supply chain visibility through digital management tools and platforms, optimizing inventory management, procurement planning, and production scheduling, while also using futures hedging to mitigate risks[36](index=36&type=chunk)[37](index=37&type=chunk) - The company's feed sales are divided into internal and external sales; commercial hogs are primarily sold to its own slaughtering and processing plants and hog brokers; piglets are mainly sold to farming group companies; pork products are sold through farmers' markets, fresh food supermarkets, wholesale distributors, and online channels, with custom slaughtering services also provided[38](index=38&type=chunk) [Discussion and Analysis of Operations](index=11&type=section&id=Discussion%20and%20Analysis%20of%20Operations) In the first half of 2025, the company's business segments actively responded to market changes. The feed business ensured cost advantages and product quality through optimized procurement, futures hedging, and the new Shilin feed base. Hog farming focused on organizational vitality, cost reduction, efficiency improvement, and digital transformation, strengthening biosecurity and enhancing production management. The hog slaughtering business reinforced industrial chain linkage, expanded refined cut products and frozen product businesses, increasing market share and brand influence. The food deep processing business delved into market demand, developing snack products and catering support products, and actively expanding into online and Southeast Asian markets to enhance brand influence - The feed business ensures cost advantages and product quality through optimized procurement models, futures hedging, and the newly built Shilin feed base, while continuously updating the SAP system to improve operational efficiency[42](index=42&type=chunk)[43](index=43&type=chunk) - The hog farming business adheres to high health standards and major disease eradication, strengthens its biosecurity management system, activates organizational vitality through incentive-based assessment plans, and promotes digital operations and integrated management[44](index=44&type=chunk)[45](index=45&type=chunk) - The hog slaughtering business relies on the SAP digital operation platform to improve its quality control and traceability system, expand into hot, chilled, and refined cut products as well as frozen products, and actively penetrate lower-tier market channels[46](index=46&type=chunk)[47](index=47&type=chunk) - The food deep processing business has developed meat sausage, thumb sausage, Jinduigu series flavored products, cured meat products, rice noodle配套 products, and hotpot customized ingredients in response to market demand, and is actively expanding into online and Southeast Asian markets[47](index=47&type=chunk)[48](index=48&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 competitiveness lies in its integrated industrial chain, corporate culture and talent team, modern management experience, advanced farming equipment, informatization and technological R&D, and geographical advantages. Industrial chain integration effectively reduces costs, mitigates risks, and ensures food safety. A strong corporate culture and professional talent team drive sustainable development. Modern management experience is built upon scientific farming environment control, comprehensive nutritional supply, a robust biosecurity system, and a traceable slaughtering and processing system. Technological advantages are demonstrated by internationally advanced farming equipment, SAP platform-driven digital management, and numerous patents and research achievements. Yunnan Province's favorable ecological environment and geographical conditions provide a distinct regional advantage for livestock development - The company possesses a complete hog industrial chain integrating feed processing, hog farming, slaughtering, and deep processing, effectively reducing costs, mitigating risks, and achieving product quality traceability[49](index=49&type=chunk) - Adhering to the corporate culture of "Love in Heart, Fruits in Bloom," the company has built a young, knowledgeable, and professional talent team, implementing a human resource management mechanism characterized by clear division of labor, remuneration based on performance, and promotion of the fittest[50](index=50&type=chunk) - The company has established a modern hog industrial chain management system centered on pig health and biosecurity, including scientific farming environment control, comprehensive nutritional supply, a robust biosecurity system, and a traceable slaughtering and processing system[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - The company's modern farms adopt an American farming model, introducing automatic environmental control systems and automatic feeding systems from internationally renowned manufacturers such as AGCO Corporation and Hog Slat Inc[55](index=55&type=chunk) - The company has built an integrated information platform based on the SAP system, achieving real-time synchronization of business and financial data, and plans to deepen the application of cutting-edge technologies such as AI intelligent analysis and the Internet of Things[56](index=56&type=chunk) - The company's technology R&D center is recognized as a provincial-level enterprise technology center, holding **51** authorized patents (**3** invention patents), and has participated in multiple scientific research projects to optimize feed formulation technology[57](index=57&type=chunk)[58](index=58&type=chunk) - The company's hog production capacity is primarily concentrated in Yunnan Province, a region with a favorable ecological environment, stable seasonal temperatures, and mountainous terrain suitable for farm construction without occupying arable land, forming natural geographical isolation belts conducive to biosecurity[59](index=59&type=chunk) [Major Operating Performance During the Reporting Period](index=16&type=section&id=Major%20Operating%20Performance%20During%20the%20Reporting%20Period) In the first half of 2025, the company's operating revenue increased by **12.16%** to **2.80 billion yuan**, primarily due to increased hog sales and slaughter volume. Operating costs decreased by **0.20%**, mainly due to the commissioning of supporting feed factories and supply chain optimization. Selling and administrative expenses rose due to business expansion and increased employee compensation. Financial expenses decreased by **38.50%** due to reduced interest expenditures. Net cash flow from operating activities significantly increased by **88.16%**, while net cash flow from investing activities decreased by **62.75%** due to factory expansion and increased purchases of wealth management products, and net cash flow from financing activities decreased by **180.80%** due to reduced borrowings and increased share repurchases. The company's asset and liability structure remained robust, with total assets of **6.93 billion yuan** and net assets of **5.12 billion yuan** at period-end. During the reporting period, the company established **7** new wholly-owned subsidiaries in Yunnan Province, increased capital in **2** wholly-owned subsidiaries, and invested in **3** piglet breeding base construction projects, with a total investment of **550 million yuan**, to expand its hog farming scale H1 2025 Major Financial Statement Item Changes | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | % Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,797,626,119.42 | 2,494,408,913.13 | 12.16 | Primarily due to increased hog sales and slaughter volume | | Operating Cost | 2,185,118,382.48 | 2,189,460,855.79 | -0.20 | Primarily due to commissioning of supporting feed factories and optimized supply chain leading to lower hog costs | | Selling Expenses | 39,076,193.88 | 31,351,092.24 | 24.64 | Primarily due to increased employee compensation from business expansion and increased brand promotion investment | | Administrative Expenses | 162,630,829.47 | 149,628,101.18 | 8.69 | Primarily due to increased employee compensation from scale expansion | | Financial Expenses | 9,316,920.91 | 15,150,086.08 | -38.50 | Primarily due to reduced interest expenditures | | R&D Expenses | 6,160,322.06 | 6,671,723.65 | -7.67 | Primarily due to reduced employee compensation and equity incentive expenses | | Net Cash Flow from Operating Activities | 557,444,348.73 | 296,261,844.46 | 88.16 | Primarily due to increased hog sales and slaughter volume | | Net Cash Flow from Investing Activities | -492,671,057.36 | -302,720,566.44 | -62.75 | Primarily due to increased investment in factory expansion and purchase of wealth management products | | Net Cash Flow from Financing Activities | -190,782,161.76 | 236,118,080.53 | -180.80 | Primarily due to reduced borrowings, increased land lease payments, and increased share repurchases | - The company invested in establishing **7** wholly-owned subsidiaries in Yunnan Province, increased capital in **2** wholly-owned subsidiaries, and invested in constructing **3** piglet breeding base projects, with a total investment of **550 million yuan**[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) H1 2025 Major Asset and Liability Changes | Item Name | Current Period-End Amount (yuan) | % of Total Assets at Current Period-End | Prior Year-End Amount (yuan) | % of Total Assets at Prior Year-End | % Change from Prior Year-End | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 130,265,684.25 | 1.88 | 0.00 | 0.00 | 100.00 | Primarily due to an increase in derivative financial assets | | Construction in Progress | 84,080,810.53 | 1.21 | 199,370,436.33 | 3.00 | -57.83 | Primarily due to transfer of hog farm construction in progress to fixed assets | | Intangible Assets | 180,484,942.32 | 2.61 | 132,349,823.09 | 1.99 | 36.37 | Primarily due to increased land use rights, mining rights, and transfer of informatization systems to fixed assets | | Other Non-Current Assets | 16,392,693.49 | 0.24 | 58,242,329.73 | 0.88 | -71.85 | Primarily due to a decrease in prepaid long-term asset payments | | Short-Term Borrowings | 130,083,194.43 | 1.88 | 205,158,194.41 | 3.08 | -36.59 | Primarily due to repayment of short-term borrowings | | Notes Payable | 0.00 | 0.00 | 66,350,100.00 | 1.00 | -100.00 | Primarily due to acceptance of bank acceptance bills | | Contract Liabilities | 13,610,655.17 | 0.20 | 10,133,684.98 | 0.15 | 34.31 | Primarily due to an increase in advance receipts for sales | | Employee Compensation Payable | 63,163,267.95 | 0.91 | 101,804,390.04 | 1.53 | -37.96 | Primarily due to payment of accrued year-end salaries in the current period | | Taxes Payable | 5,616,212.76 | 0.08 | 8,555,245.18 | 0.13 | -34.35 | Primarily due to payment of corporate income tax accrued in the prior year | | Long-Term Borrowings | 290,135,133.83 | 4.19 | 226,625,251.10 | 3.41 | 28.02 | Primarily due to new medium- and long-term bank borrowings and project loans | | Lease Liabilities | 171,063,000.05 | 2.47 | 130,227,244.90 | 1.96 | 31.36 | Primarily due to increased land leases | | Deferred Income | 57,244,308.20 | 0.83 | 39,483,239.65 | 0.59 | 44.98 | Primarily due to increased government subsidies received | - At the end of the reporting period, restricted monetary funds totaled **41,997,076.92 yuan**, mainly comprising trading margins, land reclamation deposits, mine restoration funds, and ETC deposits. Restricted fixed assets at period-end amounted to **73,700,534.29 yuan**, serving as collateral for finance leases (sale-and-leaseback)[66](index=66&type=chunk) [Risks That May Be Faced](index=24&type=section&id=Risks%20That%20May%20Be%20Faced) The company faces multiple risks including animal epidemics, natural disasters, policy, market, operational management, and financial risks. Animal epidemics (e.g., African Swine Fever) may lead to pig mortality, increased costs, and market panic. Natural disasters could damage production facilities and affect feed raw material prices. Changes in industrial and environmental policies may increase operating costs. Fluctuations in live hog and pork prices, as well as major raw material prices, are key market risks. Food safety, land leases, and cooperative farming models may pose operational management risks. Inventory impairment and changes in tax preferential policies constitute financial risks - The company faces various animal epidemic risks such as Porcine Reproductive and Respiratory Syndrome (PRRS) and African Swine Fever, which may lead to pig mortality, decreased slaughter volume, increased production costs, and even trigger market price fluctuations and consumer concerns[78](index=78&type=chunk) - The company's feed and farming businesses are susceptible to natural disasters such as droughts, floods, and earthquakes, which may cause damage to production facilities, pig mortality, and lead to increased feed raw material prices[79](index=79&type=chunk) - Changes in industrial policies (e.g., feed industry development plans) and environmental protection policies (e.g., pollutant emission standards, designation of restricted farming areas) may adversely affect the company's production and operations and environmental protection investments[80](index=80&type=chunk) - Live hog and pork prices are subject to cyclical fluctuations influenced by growth cycles, inventory levels, feed prices, and market supply and demand, which may lead to a decline in the company's profitability or even losses. Fluctuations in the prices of major raw materials such as corn and soybean meal also directly impact operating costs[81](index=81&type=chunk) - Operational management risks include food safety issues, uncertainties in rural land leases, risks related to the quantity and quality of farmers under the "company + family farm" cooperative farming model, and the risk of failed application or renewal of operating licenses[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) - Financial risks primarily include inventory impairment risk (especially for consumable biological assets affected by live hog market price fluctuations) and the risk of changes in tax preferential policies (e.g., adjustments to VAT and corporate income tax preferential policies)[85](index=85&type=chunk) [Corporate Governance, Environment and Society](index=27&type=section&id=Corporate%20Governance%2C%20Environment%20and%20Society) [Changes in Directors, Supervisors, and Senior Management](index=27&type=section&id=Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, the company's Board of Directors and Supervisory Board completed their re-election. Independent directors Mr. Long Chao and Mr. Huang Song retired due to term expiration, while Mr. Chen Xudong and Ms. Luo Wei were elected as new independent directors. Mr. Sen Demin was elected as an employee representative director, and Ms. Wang Ping was elected as a non-independent director Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Change | | :--- | :--- | :--- | | Long Chao | Independent Director | Resigned | | Huang Song | Independent Director | Resigned | | Chen Xudong | Independent Director | Elected | | Luo Wei | Independent Director | Elected | | Wang Ping | Director | Elected | | Sen Demin | Director | Elected | - Independent directors Mr. Long Chao and Mr. Huang Song resigned due to completing **6** consecutive years of service[88](index=88&type=chunk) - Mr. Sen Demin was elected as an employee representative director of the company's Fifth Board of Directors, Mr. Chen Xudong and Ms. Luo Wei were elected as independent directors, and Ms. Wang Ping was elected as a non-independent director[89](index=89&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=27&type=section&id=Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company proposes a cash dividend of **3.90 yuan** (tax inclusive) per **10** shares to all shareholders, totaling **202,120,784.58 yuan** (tax inclusive), with no bonus shares or capital reserve conversion, a plan approved by both the Board of Directors and Supervisory Board Semi-Annual Profit Distribution Plan | Indicator | Content | | :--- | :--- | | Is there a distribution or conversion | Yes | | Number of Bonus Shares per 10 Shares (shares) | 0 | | Dividend per 10 Shares (yuan) (tax inclusive) | 3.90 | | Number of Shares Converted from Capital Reserve per 10 Shares (shares) | 0 | - This profit distribution does not involve bonus shares or capital reserve conversion to share capital. If the company's total share capital changes before the equity distribution record date, the total distribution amount will be adjusted accordingly, maintaining the principle of an unchanged per-share distribution amount[90](index=90&type=chunk) [Status and Impact of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=27&type=section&id=Status%20and%20Impact%20of%20Company%27s%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The conditions for the second tranche of the 2022 Restricted Stock Incentive Plan's reserved grant have been met, and **354,800** restricted shares have been unlocked and listed. Concurrently, **101,200** restricted shares were forfeited and repurchased and cancelled due to some incentive recipients' resignation or failure to meet performance targets - The conditions for the second tranche of the 2022 Restricted Stock Incentive Plan's reserved grant have been met, and the unlocking and listing of **354,800** restricted shares have been completed[91](index=91&type=chunk)[149](index=149&type=chunk) - Due to the resignation of **23** reserved grant incentive recipients, the death of **1** incentive recipient, and **57** incentive recipients failing to meet or fully meet their 2024 individual performance assessments, a total of **101,200** restricted shares were forfeited and repurchased and cancelled by the company[93](index=93&type=chunk)[195](index=195&type=chunk) [Specific Progress in Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, etc.](index=28&type=section&id=Specific%20Progress%20in%20Consolidating%20and%20Expanding%20Poverty%20Alleviation%20Achievements%2C%20Rural%20Revitalization%2C%20etc.) The company actively responded to the national rural revitalization strategy, implementing a "company + modern professional farmer" hog contract farming model since 2017, with **558** contract farmers at the end of the reporting period, effectively assisting them in poverty alleviation and prosperity through shared resources and risks - The company actively integrates into and serves the national rural revitalization strategy, having explored the "company + modern professional farmer" hog contract farming model since 2017[93](index=93&type=chunk) - At the end of the reporting period, the company had **558** contract farmers, effectively assisting them in poverty alleviation and prosperity through shared resources and risks[93](index=93&type=chunk) [Significant Matters](index=29&type=section&id=Significant%20Matters) [Fulfillment of Commitments](index=29&type=section&id=Fulfillment%20of%20Commitments) All commitments made by the company's actual controllers, shareholders, related parties, and the company itself during the initial public offering and refinancing processes, including share lock-up, stock price stabilization, information disclosure truthfulness, profit distribution policy, non-infringement of company interests, and equity incentive-related commitments, have been strictly fulfilled on schedule, with no instances of overdue fulfillment - The controlling shareholder and actual controllers committed not to transfer or entrust others to manage all shares directly and indirectly held by them within **36** months from the date of the company's stock listing, and this commitment has been strictly fulfilled[95](index=95&type=chunk)[96](index=96&type=chunk) - The company's directors, supervisors, and senior management committed not to transfer more than **25%** of their total shares held in the company annually during their tenure, and not to transfer any shares within six months after leaving office, and this commitment has been strictly fulfilled[97](index=97&type=chunk) - The company and relevant responsible parties committed that the prospectus contains no false records, misleading statements, or major omissions, and committed to repurchase or compensate investors for losses in accordance with the law, and this commitment has been strictly fulfilled[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) - The company committed to implementing a continuous, stable, and scientific dividend distribution policy, prioritizing cash dividends, and has strictly adhered to it[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - The company and its directors and senior management committed not to overstep their authority in interfering with the company's operational management activities, not to infringe upon the company's interests, and to ensure the effective implementation of return compensation measures, and these commitments have been strictly fulfilled[116](index=116&type=chunk)[117](index=117&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) - Commitments related to the equity incentive plan, including the company not providing financial assistance to incentive recipients, incentive recipients complying with assessment systems, and the truthfulness of information disclosure documents, have all been strictly fulfilled[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) [Significant Related Party Transactions](index=69&type=section&id=Significant%20Related%20Party%20Transactions) During the reporting period, the company engaged in related party transactions with its joint venture, PIC (Qiannan) Agricultural Technology Co., Ltd., purchasing breeding pigs and semen for **7,799,860.60 yuan** and selling service fees for **56,212.25 yuan**. Additionally, daily related party transactions, including raw material purchases and sales of deep-processed gift boxes, occurred with Sichuan Xinshuo Supply Chain Management Co., Ltd., Yunnan Denong Tea Industry Co., Ltd., and Kunming Genrong Enterprise Marketing Planning Co., Ltd., totaling **1,259,100.12 yuan** Related Party Transactions Related to Daily Operations (Disclosed) | Related Party | Relationship | Transaction Type | Transaction Content | Transaction Amount (yuan) | % of Similar Transactions | | :--- | :--- | :--- | :--- | :--- | :--- | | PIC (Qiannan) Agricultural Technology Co., Ltd. | Joint Venture | Purchase of Goods | Purchase of breeding pigs, semen | 7,799,860.60 | 28.82 | | PIC (Qiannan) Agricultural Technology Co., Ltd. | Joint Venture | Sale of Products | Service fees | 56,212.25 | 100.00 | Related Party Transactions Related to Daily Operations (Undisclosed) | Related Party | Relationship | Transaction Type | Transaction Content | Transaction Amount (yuan) | % of Similar Transactions | | :--- | :--- | :--- | :--- | :--- | :--- | | Kunming Genrong Enterprise Marketing Planning Co., Ltd. | Other Related Party | Sale of Goods | Sale of deep-processed gift boxes | 9,522.12 | 3.52 | | Sichuan Xinshuo Supply Chain Management Co., Ltd. | Other Related Party | Purchase of Goods | Purchase of raw materials | 1,225,578.00 | 100.00 | | Yunnan Denong Tea Industry Co., Ltd. | Other Related Party | Purchase of Goods | Purchase of raw materials | 24,000.00 | 97.72 | [Significant Contracts and Their Fulfillment](index=71&type=section&id=Significant%20Contracts%20and%20Their%20Fulfillment) During the reporting period, the company's total external guarantees amounted to **675.15 million yuan**, representing **13.18%** of its net assets. Guarantees to subsidiaries totaled **178.96 million yuan** in new occurrences, with a period-end balance of **674.76 million yuan**. A guarantee of **387,200 yuan** provided by the company to its downstream customer, Mojiang County Tuantian Green Leaf Breeding and Farming Professional Cooperative, has become overdue Company Total Guarantee Status | Indicator | Amount (10,000 yuan) | | :--- | :--- | | Total Guarantees to Subsidiaries During Reporting Period | 17,895.79 | | Total Guarantees to Subsidiaries at Period-End (B) | 67,475.87 | | Total Guarantees (A+B) | 67,514.59 | | % of Total Guarantees to Company's Net Assets | 13.18 | - A guarantee of **387,200 yuan** provided by the company to its downstream customer, Mojiang County Tuantian Green Leaf Breeding and Farming Professional Cooperative, has become overdue[144](index=144&type=chunk)[197](index=197&type=chunk) [Share Changes and Shareholder Information](index=74&type=section&id=Share%20Changes%20and%20Shareholder%20Information) [Changes in Share Capital](index=74&type=section&id=Changes%20in%20Share%20Capital) During the reporting period, the company's total share capital remained unchanged at **524,839,012** shares. Restricted shares decreased by **354,800** shares, while unrestricted tradable shares increased by **354,800** shares, primarily due to the completion of the second tranche of the 2022 Restricted Stock Incentive Plan's reserved grant unlocking Share Change Table | Category | Number Before Change (shares) | % Before Change | Change (+, -) Subtotal (shares) | Number After Change (shares) | % After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 1,587,840 | 0.30 | -354,800 | 1,233,040 | 0.23 | | II. Unrestricted Tradable Shares | 523,251,172 | 99.70 | 354,800 | 523,605,972 | 99.77 | | III. Total Shares | 524,839,012 | 100 | 0 | 524,839,012 | 100 | - On May 14, 2025, the company completed the unlocking and listing of **354,800** restricted shares for the second tranche of the 2022 Restricted Stock Incentive Plan's reserved grant[149](index=149&type=chunk) [Shareholder Information](index=75&type=section&id=Shareholder%20Information) As of the end of the reporting period, the company had **16,174** ordinary shareholders. Among the top ten shareholders, He Zuxun, He Qiaoguan, Yunnan Zhengdao Investment Development Partnership (Limited Partnership), He Yuebin, and He Baojian were the top five, collectively holding **86.54%** of the shares. He Zuxun and his concerted parties collectively held **85.2389%** of the company's shares, serving as the actual controllers. Restricted shares primarily consisted of restricted stock from the initial and reserved grants of the 2022 equity incentive plan, which will be unlocked in batches on July 18, 2025, and May 14, 2025 Total Shareholders | Indicator | Quantity | | :--- | :--- | | Total Number of Ordinary Shareholders at Period-End (households) | 16,174 | Top Ten Shareholders' Holdings at Period-End | Shareholder Name | Period-End Holding (shares) | % | Shareholder Nature | | :--- | :--- | :--- | :--- | | He Zuxun | 261,016,651 | 49.73 | Domestic Natural Person | | He Qiaoguan | 60,234,612 | 11.48 | Domestic Natural Person | | Yunnan Zhengdao Investment Development Partnership (Limited Partnership) | 52,646,880 | 10.03 | Domestic Non-State-Owned Legal Person | | He Yuebin | 40,156,407 | 7.65 | Domestic Natural Person | | He Baojian | 40,156,407 | 7.65 | Domestic Natural Person | | HKSCC Nominees Limited | 2,047,240 | 0.39 | Overseas Legal Person | | Agricultural Bank of China Co., Ltd. - Yinhua Agricultural Industry Stock Initiated Securities Investment Fund | 1,684,285 | 0.32 | Other | | Bank of China Co., Ltd. - Boshi Consumer Innovation Mixed Securities Investment Fund | 1,163,850 | 0.22 | Other | | Zheshang Bank Co., Ltd. - Guotai CSI Livestock Farming Traded Open-Ended Index Securities Investment Fund | 1,047,800 | 0.20 | Other | | National Social Security Fund 118 Portfolio | 1,047,031 | 0.20 | Domestic Non-State-Owned Legal Person | - He Zuxun, He Qiaoguan, He Baojian, and He Yuebin signed a concerted action agreement, acting in concert with Yunnan Zhengdao Investment Development Partnership (Limited Partnership)[156](index=156&type=chunk) Top Ten Restricted Shareholders' Holdings and Restriction Conditions | No. | Name of Restricted Shareholder | Number of Restricted Shares Held (shares) | Reason for Restriction | Date Available for Listing and Trading | | :--- | :--- | :--- | :--- | :--- | | 1 | Zhang Xiaodong | 39,000 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 2 | Shu Meng | 39,000 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 3 | Jiang Hong | 39,000 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 4 | Dun Can | 39,000 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 5 | Liu Yuefeng | 31,200 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 6 | Liu Xiangao | 31,200 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 7 | Han Xingjin | 31,200 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 8 | Tang Tianying | 23,400 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 9 | Li Yunlong | 23,400 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 10 | Li Ming | 23,400 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | [Bond-Related Information](index=79&type=section&id=Bond-Related%20Information) [Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=79&type=section&id=Corporate%20Bonds%20%28Including%20Enterprise%20Bonds%29%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) During the reporting period, the company had no outstanding corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments that were either unexpired or had matured but not been fully redeemed - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[161](index=161&type=chunk) [Financial Report](index=79&type=section&id=Financial%20Report) [Audit Report](index=79&type=section&id=Audit%20Report) This semi-annual report has not been audited - This semi-annual report has not been audited[162](index=162&type=chunk) [Financial Statements](index=79&type=section&id=Financial%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, comprehensively illustrating the company's financial position, operating results, and cash flow situation at the end of the reporting period - This section includes the consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[162](index=162&type=chunk)[166](index=166&type=chunk)[169](index=169&type=chunk)[174](index=174&type=chunk)[182](index=182&type=chunk)[192](index=192&type=chunk) [Company Basic Information](index=100&type=section&id=Company%20Basic%20Information) The company was established as a joint-stock company through the overall restructuring of Yunnan Shennong Agricultural Industry Group Co., Ltd., registered on September 11, 2012, with its headquarters in Kunming, Yunnan. With a registered capital of **524,839,012.00 yuan**, its main businesses include feed processing and sales, hog farming and sales, hog slaughtering, and fresh pork product sales, operating within the farming industry. These financial statements were approved for issuance by the Board of Directors on August 26, 2025 - The company was established as a joint-stock company through the overall restructuring and change of Yunnan Shennong Agricultural Industry Group Co., Ltd., registered on September 11, 2012, with the Yunnan Provincial Administration for Industry and Commerce, and headquartered in Kunming City, Yunnan Province[197](index=197&type=chunk) - The company's registered capital is **524,839,012.00 yuan**, with a total of **524,839,012.00** shares, including **1,233,040** restricted tradable shares and **523,605,972** unrestricted tradable shares[197](index=197&type=chunk) - The company belongs to the farming industry. Its main business activities are feed processing and sales, hog farming and sales, hog slaughtering, and fresh pork product sales[197](index=197&type=chunk) [Basis of Preparation of Financial Statements](index=100&type=section&id=Basis%20of%20Preparation%20of%20Financial%20Statements) The company's financial statements are prepared on a going concern basis, with no events or circumstances that would cast significant doubt on its ability to continue as a going concern within **12** months from the end of the reporting period - The company's financial statements are prepared on a going concern basis[198](index=198&type=chunk) - There are no events or circumstances that would cast significant doubt on the company's ability to continue as a going concern within **12** months from the end of the reporting period[199](index=199&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=100&type=section&id=Significant%20Accounting%20Policies%20and%20Accounting%20Estimates) The company adheres to enterprise accounting standards, with the accounting year from January 1 to December 31, and the functional currency being RMB. Based on its actual production and operation characteristics, the company has formulated specific accounting policies and estimates for financial instrument impairment, depreciation of fixed assets, depreciation of right-of-use assets, productive biological assets, amortization of intangible assets, and revenue recognition, also defining materiality standards. This section elaborates on accounting policies and estimation methods for business combinations, consolidated financial statements, joint arrangements, cash and cash equivalents, financial instruments, accounts receivable, inventories, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, biological assets, intangible assets, long-term deferred expenses, contract liabilities, employee compensation, provisions, share-based payments, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, truly and completely reflecting the company's financial position, operating results, changes in shareholders' equity, and cash flows, among other relevant information[201](index=201&type=chunk) - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, and the functional currency is RMB[202](index=202&type=chunk)[204](index=204&type=chunk) - The company has formulated specific accounting policies and estimates for transactions or events such as financial instrument impairment, depreciation of fixed assets, depreciation of right-of-use assets, productive biological assets, amortization of intangible assets, and revenue recognition, based on its actual production and operation characteristics[200](index=200&type=chunk) - This section elaborates on the classification, recognition, measurement, and derecognition conditions of financial assets and financial liabilities, as well as financial instrument impairment (expected credit loss model) and fair value determination methods[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk) - The company's revenue recognition principle involves identifying distinct performance obligations, determining whether they are satisfied over time or at a point in time, and measuring revenue based on the transaction price allocated to each distinct performance obligation[257](index=257&type=chunk)[258](index=258&type=chunk)[259](index=259&type=chunk) [Taxation](index=116&type=section&id=Taxation) The company's main taxes include Value-Added Tax (rates from **1%** to **13%** or exempt), Urban Maintenance and Construction Tax (rates from **1%** to **7%**), Corporate Income Tax (rates from **15%** to **25%** or exempt), Education Surcharge, and Local Education Surcharge. The company and its subsidiaries benefit from multiple tax preferential policies, including VAT exemption for agricultural producers selling self-produced agricultural products, VAT exemption for feed products, VAT exemption for certain fresh meat and egg products in circulation, corporate income tax exemption for income from agriculture, forestry, animal husbandry, and fishery projects, Western Development preferential policy (**15%** corporate income tax rate), and inclusive tax reduction policies for small and micro enterprises Major Taxes and Tax Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Output tax calculated on sales of goods and taxable services, less input tax | 13%, 9%, 6%, 5%, 3%, 1%, Exempt | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7%, 5%, 1% | | Corporate Income Tax | Taxable income | 15%, 20%, 25%, Exempt | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | | Property Tax | Ad valorem tax at 1.2% of the original value of the property after deducting 30%; rental-based tax at 12% of rental income | 1.2% or 12% | - The company and its subsidiaries enjoy VAT exemption policies for agricultural producers selling self-produced agricultural products, feed products, and certain fresh meat and egg products[273](index=273&type=chunk)[274](index=274&type=chunk) - Income from the company's subsidiaries engaged in livestock and poultry farming, crop cultivation, and primary processing of agricultural products is exempt from corporate income tax; some subsidiaries enjoy the Western Development preferential corporate income tax rate of **15%**, as well as inclusive tax reduction policies for small and micro enterprises[274](index=274&type=chunk)[275](index=275&type=chunk) [Notes to Consolidated Financial Statement Items](index=118&type=section&id=Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section details the period-end balances, beginning balances, and current period changes for each item in the consolidated financial statements. Monetary funds at period-end totaled **939.42 million yuan**, with **41.99 million yuan** restricted. Trading financial assets increased by **130.27 million yuan**, primarily derivative financial assets. Accounts receivable at period-end were **82.54 million yuan**, with bad debt provisions of **11.05 million yuan**. Inventory at period-end was **1.32 billion yuan**, including **930.11 million yuan** in consumable biological assets. Fixed assets had a period-end book value of **3.24 billion yuan**, and construction in progress was **84.08 million yuan**. Short-term borrowings were **130.08 million yuan**, and long-term borrowings were **290.14 million yuan**. Operating revenue was **2.80 billion yuan**, operating cost was **2.19 billion yuan**. Net profit was **387.52 million yuan**, and net cash flow from operating activities was **557.44 million yuan** Monetary Funds | Item | Period-End Balance (yuan) | Beginning Balance (yuan) | | :--- | :--- | :--- | | Bank Deposits | 810,301,757.51 | 918,190,293.19 | | Other Monetary Funds | 129,113,470.58 | 124,031,103.67 | | Total | 939,415,228.09 | 1,042,221,396.86 | - Other monetary funds at period-end amounted to **129,113,470.58 yuan**, of which **41,997,076.92 yuan** was restricted for use, primarily comprising trading margins, ETC deposits, land reclamation deposits, and mine restoration funds[278](index=278&type=chunk)[358](index=358&type=chunk) Trading Financial Assets | Item | Period-End Balance (yuan) | Beginning Balance (yuan) | | :--- | :--- | :--- | | Derivative Financial Assets | 130,265,684.25 | 0.00 | | Total | 130,265,684.25 | 0.00 | Accounts Receivable | Category | Period-End Book Value (yuan) | Beginning Book Value (yuan) | | :--- | :--- | :--- | | Provision for Bad Debts on Individual Basis | 3,842,060.35 | 7,430,000.00 | | Provision for Bad Debts on Portfolio Basis | 78,699,562.71 | 93,778,380.26 | | Total | 82,541,623.06 | 101,208,380.26 | Inventories | Item | Period-End Book Value (yuan) | Beginning Book Value (yuan) | | :--- | :--- | :--- | | Raw Materials | 285,974,869.78 | 256,785,433.94 | | Finished Goods | 104,567,986.26 | 78,766,194.75 | | Consumable Biological Assets | 930,110,944.93 | 964,834,698.70 | | Total | 1,324,667,896.46 | 1,310,100,922.12 | Fixed Assets | Item | Period-End Book Value (yuan) | Beginning Book Value (yuan) | | :--- | :--- | :--- | | Buildings and Structures | 2,209,114,341.32 | 1,954,848,709.74 | | Machinery and Equipment | 892,269,486.65 | 864,835,580.21 | | Transportation Vehicles | 61,937,337.63 | 60,879,797.78 | | Office Furniture (Other) | 72,509,295.26 | 72,240,697.37 | | Total | 3,235,830,460.86 | 2,952,804,785.10 | Operating Revenue and Operating Cost | Item | Current Period Revenue (yuan) | Current Period Cost (yuan) | Prior Period Revenue (yuan) | Prior Period Cost (yuan) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 2,789,276,910.55 | 2,182,896,658.92 | 2,486,777,538.96 | 2,182,766,853.67 | | Other Businesses | 8,349,208.87 | 2,221,723.56 | 7,631,374.17 | 6,694,002.12 | | Total | 2,797,626,119.42 | 2,185,118,382.48 | 2,494,408,913.13 | 2,189,460,855.79 | Reconciliation of Net Profit to Net Cash Flow from Operating Activities | Supplementary Information | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Net Profit | 387,516,418.92 | 123,902,400.79 | | Add: Asset Impairment Provisions | 2,813,939.95 | -42,530,694.07 | | Credit Impairment Losses | -10,055,613.85 | 5,047,984.95 | | Depreciation of Fixed Assets, Depletion of Oil and Gas Assets, Depreciation of Productive Biological Assets | 208,581,879.27 | 172,297,963.62 | | Amortization of Right-of-Use Assets | 15,815,115.15 | 17,882,618.66 | | Amortization of Intangible Assets | 3,043,654.98 | 2,393,030.43 | | Amortization of Long-Term Deferred Expenses | 10,077,051.74 | 9,664,501.66 | | Losses (Gains are filled with "-") on Disposal of Fixed Assets, Intangible Assets, and Other Long-Term Assets | -174,271.01 | 1,081,224.27 | | Losses (Gains are filled with "-") on Scrapping of Fixed Assets | 12,360,001.91 | 13,638,614.96 | | Losses (Gains are filled with "-") from Fair Value Changes | -2,045,024.25 | 887,907.58 | | Financial Expenses (Gains are filled with "-") | 13,461,319.35 | 18,295,230.37 | | Investment Losses (Gains are filled with "-") | -2,406,064.27 | -1,988,373.17 | | Decrease in Deferred Income Tax Assets (Increase is filled with "-") | -436,440.74 | -1,749,129.31 | | Decrease in Inventories (Increase is filled with "-") | -17,380,914.29 | 92,096,789.40 | | Decrease in Operating Receivables (Increase is filled with "-") | -133,034,714.86 | -213,804,272.05 | | Increase in Operating Payables (Decrease is filled with "-") | 66,791,602.45 | 124,546,737.75 | | Other | 2,516,408.28 | -25,400,691.38 | | Net Cash Flow from Operating Activities | 557,444,348.73 | 296,261,844.46 | [R&D Expenses](index=177&type=section&id=R%26D%20Expenses) The company's total R&D expenses for the current period amounted to **6,160,322.06 yuan**, all of which were expensed. The main components included employee compensation, material and fuel costs, depreciation and amortization, and share-based payment expenses. R&D expenses decreased compared to the prior year, primarily due to reduced employee compensation and equity incentive expenses R&D Expense Composition | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Employee Compensation | 2,950,572.62 | 3,111,828.60 | | Share-Based Payment Expenses | 83,150.94 | 249,149.74 | | Material and Fuel Costs | 2,122,392.58 | 2,009,657.35 | | Depreciation and Amortization | 713,249.35 | 808,026.23 | | Other | 290,956.57 | 493,061.73 | | Total | 6,160,322.06 | 6,671,723.65 | | Of which: Expensed R&D Expenditures | 6,160,322.06 | 6,671,723.65 | | Capitalized R&D Expenditures | 0.00 | 0.00 | [Changes in Consolidation Scope](index=178&type=section&id=Changes%20in%20Consolidation%20Scope) During the reporting period, the company added **7** wholly-owned subsidiaries, including Wenshan Shennong Animal Husbandry Co., Ltd. and Pingbian Shennong Animal Husbandry Co., Ltd., primarily engaged in livestock and poultry farming and trading businesses. Concurrently, Yunnan Shennong Luquan Pig Industry Co., Ltd. was deregistered Increase in Consolidation Scope | Company Name | Method of Equity Acquisition | Date of Equity Acquisition | Capital Contribution (10,000 yuan) | % of Capital Contribution | | :--- | :--- | :--- | :--- | :--- | | Wenshan Shennong Animal Husbandry Co., Ltd. | Newly established subsidiary | 2025/3/27 | 1,000.00 | 100.00 | | Pingbian Shennong Animal Husbandry Co., Ltd. | Newly established subsidiary | 2025/5/14 | 5,000.00 | 100.00 | | Eryuan Shennong Pig Industry Development Co., Ltd. | Newly established subsidiary | 2025/6/26 | 200.00 | 100.00 | | Tengchong Shennong Pig Industry Development Co., Ltd. | Newly established subsidiary | 2025/6/26 | 200.00 | 100.00 | | Huaping Shennong Pig Industry Development Co., Ltd. | Newly established subsidiary | 2025/6/26 | 1,000.00 | 100.00 | | Yanshan Shennong Pig Industry Development Co., Ltd. | Newly established subsidiary | 2025/6/27 | 200.00 | 100.00 | | Cangyuan Shennong Trading Co., Ltd. | Newly established subsidiary | 2025/6/16 | 100.00 | 100.00 | Decrease in Consolidation Scope | Company Name | Method of Equity Disposal | Date of Equity Disposal | Net Profit from Beginning of Period to Disposal Date (yuan) | | :--- | :--- | :--- | :--- | | Yunnan Shennong Luquan Pig Industry Co., Ltd. | Deregistration of subsidiary | 2025/3/26 | 46,648.75 | [Interests in Other Entities](index=180&type=section&id=Interests%20in%20Other%20Entities) The company owns **37** wholly-owned subsidiaries, primarily engaged in feed processing, livestock and poultry farming, slaughtering, and trading businesses. Additionally, the company holds an interest in a joint venture, PIC (Qiannan) Agricultural Technology Co., Ltd., with a period-end book value of **13,945,105.31 yuan** and investment income of **1,082,696.71 yuan** recognized in the cur

东兴证券股份有限公司2025 年半年度报告 公司代码：601198 公司简称：东兴证券 东兴证券股份有限公司 2025 年半年度报告 1 / 185 东兴证券股份有限公司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、公司负责人李娟、主管会计工作负责人张芳及会计机构负责人（会计主管人员）王长成声 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 公司2025年半年度利润分配预案：拟以实施权益分派股权登记日登记的总股本为基数，向全 体股东每股派发现金红利0.076元（含税）。 截至2025年6月30日，公司总股本3,232,445,520股，以此计算合计拟派发现金红利人民币 245,665,859.52元（含税），占2025年上半年合并报表归属于母公司股东净利润的30.00%。如在 实施权益分派的股权登记日前公司总股本发生变动的，拟维持分 ...

[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Item%20I.%20Important%20Notice%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides the important notice, structured table of contents, and definitions of key terms used throughout the report [Important Notice](index=2&type=section&id=Important%20Notice) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report[4](index=4&type=chunk) - Company's responsible person Li Yilun, head of accounting Zhang Yunqin, and head of accounting department Zhu Danping declare the financial report is true, accurate, and complete[4](index=4&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[6](index=6&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This section lists the report's structured table of contents, covering eight main chapters from company profile to financial reports - The report comprises eight main chapters, including company profile, financial indicators, management discussion, corporate governance, significant matters, share changes, bond information, and financial reports[8](index=8&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section defines common terms used in the report, including company abbreviations, actual controllers, legal regulations, game types, AI terms, and currency units - The report defines key concepts such as the company, actual controller, controlling shareholder, laws and regulations, various game types (client, web, mobile), and AI-related terms (LLM, AI Agent)[14](index=14&type=chunk) - The reporting period refers to January 1, 2025, to June 30, 2025[14](index=14&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=Item%20II.%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company's basic information, key financial performance, and asset status for the reporting period [Company Profile](index=6&type=section&id=I.%20Company%20Profile) The company's stock abbreviation is "ST ZQGame", stock code 300052, listed on the Shenzhen Stock Exchange, with Li Yilun as legal representative - Company stock abbreviation: **ST ZQGame**, stock code: **300052**[17](index=17&type=chunk) - Company stock listed on: **Shenzhen Stock Exchange**[17](index=17&type=chunk) - Company legal representative: **Li Yilun**[17](index=17&type=chunk) [Contact Person and Information](index=6&type=section&id=II.%20Contact%20Person%20and%20Information) The company's board secretary is Zhang Yunqin, securities affairs representative is Wang Qing, with contact details provided - Board Secretary: **Zhang Yunqin**; Securities Affairs Representative: **Wang Qing**[18](index=18&type=chunk) - Contact number: **0755-26733925**; Email: **ir@zqgame.com**[18](index=18&type=chunk) [Other Information](index=6&type=section&id=III.%20Other%20Information) The company's registered address, office address, website, email, information disclosure, and registration status remained unchanged during the reporting period - The company's contact information, information disclosure and storage locations, and registration status remained unchanged during the reporting period[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company's semi-annual operating revenue decreased by 19.19%, net profit attributable to shareholders narrowed losses by 1.45%, and net cash flow from operating activities decreased by 38.76% 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Period (Yuan) | Prior Period (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 97,946,418.30 | 121,209,411.88 | -19.19% | | Net Profit Attributable to Shareholders of Listed Company | -24,645,817.53 | -25,008,489.30 | 1.45% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | -24,996,721.64 | -26,733,877.10 | 6.50% | | Net Cash Flow from Operating Activities | 10,946,924.01 | 17,874,198.24 | -38.76% | | Basic Earnings Per Share (Yuan/share) | -0.09 | -0.10 | 10.00% | | Diluted Earnings Per Share (Yuan/share) | -0.09 | -0.10 | 10.00% | | Weighted Average Return on Net Assets | -6.26% | -5.37% | -0.89% | | **Indicator** | **End of Current Period (Yuan)** | **End of Prior Year (Yuan)** | **Change from Prior Year End** | | Total Assets | 815,989,936.30 | 831,889,085.53 | -1.91% | | Net Assets Attributable to Shareholders of Listed Company | 380,684,176.41 | 405,893,338.48 | -6.21% | [Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=7&type=section&id=V.%20Differences%20in%20Accounting%20Data%20under%20Domestic%20and%20Overseas%20Accounting%20Standards) The company reported no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards during the reporting period - The company reported no differences in net profit and net assets under domestic and overseas accounting standards during the reporting period[23](index=23&type=chunk)[24](index=24&type=chunk) [Non-Recurring Gains and Losses and Amounts](index=7&type=section&id=VI.%20Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) The company's total non-recurring gains and losses for the reporting period amounted to 350,904.11 yuan, primarily from disposal of non-current assets, government grants, and other non-operating income/expenses 2025 Semi-Annual Non-Recurring Gains and Losses and Amounts | Item | Amount (Yuan) | Description | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 191,240.11 | | | Government Grants Recognized in Current Profit/Loss | 230,032.47 | | | Other Non-Operating Income and Expenses Apart from the Above | -123,667.02 | | | Other Gains/Losses Meeting the Definition of Non-Recurring Gains/Losses | 51,334.81 | Personal income tax handling fee refund recognized in the reporting period | | Less: Income Tax Impact | -31,962.99 | | | Impact on Minority Interests (After Tax) | 29,999.25 | | | Total | 350,904.11 | | [Management Discussion and Analysis](index=9&type=section&id=Item%20III.%20Management%20Discussion%20and%20Analysis) This section discusses the company's main businesses, core competencies, financial performance, and risk factors during the reporting period [Main Businesses Engaged by the Company During the Reporting Period](index=9&type=section&id=I.%20Main%20Businesses%20Engaged%20by%20the%20Company%20During%20the%20Reporting%20Period) The company has established a multi-driven model with cloud computing, gaming, and cultural tourism as three synergistic segments, actively developing cloud computing, steadily advancing traditional gaming, and expanding cultural tourism - The company has established a multi-driven model with cloud computing, gaming, and cultural tourism as three synergistic segments[39](index=39&type=chunk) [1. Industry Development Overview](index=9&type=section&id=1.%20Industry%20Development%20Overview) The cloud computing market is rapidly expanding due to policy support, the gaming industry is accelerating AI adoption, and the cultural tourism sector is thriving with digital transformation - In 2024, China's intelligent computing power scale reached **725.3 EFLOPS**, a year-on-year increase of **74.1%**; it is expected to reach **1037.3 EFLOPS** in 2025[33](index=33&type=chunk) - In 2024, China's cloud computing market size reached **828.8 billion yuan**, a year-on-year increase of **34.4%**; it is expected to exceed **3 trillion yuan** by 2030[34](index=34&type=chunk) - In the first half of 2025, the domestic game market's actual sales revenue was **168 billion yuan**, a year-on-year increase of over **14%**; the game user scale reached nearly **679 million**, a year-on-year increase of **0.72%**[36](index=36&type=chunk) - In the first half of 2025, domestic tourist trips reached **3.285 billion**, a year-on-year increase of **20.6%**; tourism spending was **3.15 trillion yuan**, a year-on-year increase of **15.2%**[38](index=38&type=chunk) [2. Main Business Operations](index=11&type=section&id=2.%20Main%20Business%20Operations) The company expands its cloud computing services with self-built IDC and AI computing, optimizes traditional and small games, and develops cultural tourism projects integrating technology and IP - The company operates self-built high-quality internet data centers in Shenzhen, Chengdu, and Leshan, and holds agency qualifications for Huawei Cloud and Volcano Engine[40](index=40&type=chunk)[41](index=41&type=chunk)[43](index=43&type=chunk) - A new intelligent computing business unit has been established to build a one-stop intelligent computing service platform covering "computing power leasing-intelligent agent development-resource scheduling management", currently in the market expansion and model exploration phase with small revenue scale[46](index=46&type=chunk)[47](index=47&type=chunk) - The company specializes in "red-themed" online games, optimizing and upgrading client games like "Anti-Japanese War", "Bright Sword", and "Last Bullet", and launched "Anti-Japanese War Heroes 2" WeChat mini-game[49](index=49&type=chunk)[50](index=50&type=chunk) - As of the end of the reporting period, the company operated a total of **21 games**, including **7 newly launched IAA mini-games**[54](index=54&type=chunk) - The "Dragon Soaring Nine Continents" project, located in the Shuiguan Great Wall scenic area in Beijing, received approximately **190,000 visitors** during the reporting period and added catering and snack services[55](index=55&type=chunk) [Core Competitiveness Analysis](index=14&type=section&id=II.%20Core%20Competitiveness%20Analysis) The company's core competitiveness lies in its cloud computing's geographical advantages and technical strength, gaming's market experience and content integration, and cultural tourism's unique location and asset autonomy [1. Cloud Computing Business](index=14&type=section&id=1.%20Cloud%20Computing%20Business) The company's cloud computing business boasts strong geographical advantages, high-standard data centers, robust partnerships with major operators, independent R&D capabilities, and a comprehensive security system - The company actively responds to the "East Data West Computing" project, investing in and operating cloud data centers in the Guangdong-Hong Kong-Macao Greater Bay Area and Chengdu-Chongqing hub nodes[56](index=56&type=chunk) - The company's operated cloud data centers comply with **GB50174 Class A** and **International Tier III+ standards**, and have obtained **CQC Class A data center certification**[58](index=58&type=chunk) - The company has established important partnerships with China Telecom, China Unicom, and China Mobile, providing IDC services to Huawei, ByteDance, and others[59](index=59&type=chunk) - The company holds **5 patents** and **75 software copyrights**, demonstrating independent R&D capabilities[60](index=60&type=chunk) [2. Gaming Business](index=15&type=section&id=2.%20Gaming%20Business) The company's gaming business benefits from eighteen years of market experience, a significant share in the "red-themed" online game market, and a strategic shift towards the mini-game sector - The company has focused on online game R&D and operations for **eighteen years**, holding a significant share in the "red-themed" online game market[63](index=63&type=chunk)[64](index=64&type=chunk) - The company's games combine "red culture", historical education, and entertainment elements to create high-quality online games that "respect history and promote patriotism"[65](index=65&type=chunk) - The company keenly observes user fragmented entertainment demands and the potential of hyper-casual games, strategically transforming into the mini-game sector[66](index=66&type=chunk) [3. Cultural Tourism Business](index=16&type=section&id=3.%20Cultural%20Tourism%20Business) The company's cultural tourism business leverages the unique location of the "Dragon Soaring Nine Continents" project at the Shuiguan Great Wall, proprietary assets, and comprehensive integrated services - The "Dragon Soaring Nine Continents" project is located in the **Shuiguan Great Wall scenic area**, a World Cultural Heritage site, with Great Wall culture at its core[67](index=67&type=chunk) - The company's proprietary dome theater serves as a core asset for the cultural tourism project, reducing long-term operating costs and enhancing profit margins and autonomy[68](index=68&type=chunk) - The project offers an integrated immersive experience covering "food, drink, travel, and shopping", including specialty catering and the "Chang Xiaocheng" series of cultural and creative products[69](index=69&type=chunk) [Main Business Analysis](index=17&type=section&id=III.%20Main%20Business%20Analysis) The company's semi-annual operating revenue decreased by 19.19% due to a decline in cloud computing revenue, while net cash flow from operating activities also fell, but net cash flow from financing activities significantly increased 2025 Semi-Annual Major Financial Data Year-on-Year Changes | Indicator | Current Period (Yuan) | Prior Period (Yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 97,946,418.30 | 121,209,411.88 | -19.19% | Decline in cloud computing business revenue | | Operating Cost | 69,807,913.52 | 95,000,045.99 | -26.52% | Reduced costs corresponding to decreased cloud computing revenue | | Financial Expenses | 6,138,760.21 | 4,815,553.23 | 27.48% | Increase in finance lease expenses | | R&D Investment | 12,235,175.98 | 17,642,858.97 | -30.65% | Project adjustments, decrease in R&D personnel and salaries | | Net Cash Flow from Operating Activities | 10,946,924.01 | 17,874,198.24 | -38.76% | Decreased sales collection due to revenue decline | | Net Cash Flow from Financing Activities | -1,101,965.20 | -34,430,919.53 | 96.80% | Reduced repayment of short-term borrowings, new intelligent computing business collections | 2025 Semi-Annual Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | YoY Change in Operating Revenue | | :--- | :--- | :--- | :--- | :--- | | Cloud Computing Business | 63,357,541.44 | 62,249,265.65 | 1.75% | -22.93% | | Online Gaming Business | 23,227,196.72 | 3,259,847.53 | 85.97% | -26.28% | - The decrease in cloud computing business revenue and costs was primarily due to a reduction in customer numbers and market demand[75](index=75&type=chunk) - As of the end of the reporting period, the company operated a total of **21 games**, including **7 newly launched IAA mini-games**[54](index=54&type=chunk) [Non-Core Business Analysis](index=19&type=section&id=IV.%20Non-Core%20Business%20Analysis) The company's non-core business income primarily stemmed from investment gains, government grants, and other non-operating income, alongside asset impairment losses and non-operating expenses, none of which are sustainable 2025 Semi-Annual Non-Core Business Items and Amounts | Item | Amount (Yuan) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 146,143.75 | -0.58% | Recognition of investment income from long-term equity investments accounted for using equity method | No | | Asset Impairment | -726,990.95 | 2.90% | Provision for bad debts of other receivables: 191,910.60 yuan; provision for bad debts of accounts receivable: 535,080.35 yuan | No | | Non-Operating Income | 33,379.27 | -0.13% | | No | | Non-Operating Expenses | 157,046.29 | 0.63% | Recognition of liquidated damages: 137,952.87 yuan and other: 19,093.42 yuan | No | | Other Income | 281,367.28 | -1.12% | Recognition of government subsidies: 230,032.47 yuan, personal income tax handling fee refund: 51,334.81 yuan | No | [Analysis of Assets and Liabilities](index=20&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities) The company's total assets and net assets attributable to shareholders decreased, while monetary funds increased due to new intelligent computing business collections, and construction in progress significantly decreased 2025 Semi-Annual Major Changes in Asset Composition | Item | End of Current Period (Yuan) | Proportion of Total Assets | End of Prior Year (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 34,920,588.28 | 4.28% | 24,705,782.16 | 2.97% | 1.31% | New intelligent computing business collections | | Fixed Assets | 247,872,168.10 | 30.38% | 268,190,029.79 | 32.24% | -1.86% | Depreciation and amortization transferred to cost and expenses | | Construction in Progress | 0 | 0.00% | 110,633,806.58 | 13.30% | -13.30% | Completion and transfer out of computing power servers and supporting equipment adaptation | | Right-of-Use Assets | 26,240,299.11 | 3.22% | 35,764,221.73 | 4.30% | -1.08% | Amortization transferred to cost and expenses | | Contract Liabilities | 53,348,422.79 | 6.54% | 40,149,700.53 | 4.83% | 1.71% | Advance receipts for contracts | | Lease Liabilities | 21,000,510.23 | 2.57% | 24,480,864.83 | 2.94% | -0.37% | Payment of rent and reduction in leased area | 2025 Semi-Annual Asset Rights Restriction Status at Period End | Item | Book Value at Period End (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Fixed Assets | 6,566,497.46 | Shenzhen talent housing, only right of use, no right of disposal | | Monetary Funds | 104.54 | Bank account information not updated in time, restricted use | | Monetary Funds | 12,820,000.00 | Bank acceptance bill deposit | | Fixed Assets | 23,516,835.60 | Mortgage financing | | Total | 42,903,437.60 | | - The company pledged/mortgaged accounts receivable, subsidiary equity, and usufruct rights for financing loans[87](index=87&type=chunk) [Investment Status Analysis](index=22&type=section&id=VI.%20Investment%20Status%20Analysis) The company's investment increased by 33.24% year-on-year, primarily for the completed computing power server project, with no use of raised funds, wealth management, derivative investments, or entrusted loans - The investment amount for the reporting period was **1,483,636.08 yuan**, an increase of **33.24%** compared to the same period last year[89](index=89&type=chunk) - The computing power server and supporting equipment adaptation project had a cumulative actual investment of **111,908,855.38 yuan**, with project progress at **100%**[91](index=91&type=chunk) 2025 Semi-Annual Financial Assets Measured at Fair Value at Period End | Asset Category | Initial Investment Cost (Yuan) | Cumulative Investment Income (Yuan) | Amount at Period End (Yuan) | | :--- | :--- | :--- | :--- | | Other Equity Instrument Investments | 307,391,700.46 | 0.00 | 212,153,280.46 | | Other Non-Current Financial Assets | 6,550,000.00 | 6,000,000.00 | 6,332,900.00 | | Total | 313,941,700.46 | 6,000,000.00 | 218,486,180.46 | - The company had no use of raised funds, entrusted wealth management, derivative investments, or entrusted loans during the reporting period[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) [Significant Asset and Equity Sales](index=23&type=section&id=VII.%20Significant%20Asset%20and%20Equity%20Sales) The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell significant assets during the reporting period[98](index=98&type=chunk) - The company did not sell significant equity during the reporting period[99](index=99&type=chunk) [Analysis of Major Holding and Participating Companies](index=23&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) The company's main subsidiaries, including Baoteng Interconnect, Leshan Baoteng, and Shenzhen Sumo, primarily engage in IDC hosting and online gaming, all reporting net losses for the period 2025 Semi-Annual Major Subsidiary Financial Data | Company Name | Company Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Baoteng Interconnect | Subsidiary | IDC Hosting and Value-Added Services | 80,000,000.00 | 418,736,272.09 | 187,503,029.74 | 60,952,185.58 | -9,913,772.15 | | Leshan Baoteng | Subsidiary | IDC Hosting and Value-Added Services | 90,000,000.00 | 86,225,644.45 | 43,941,569.34 | 2,815,284.89 | -8,397,138.86 | | Shenzhen Sumo | Subsidiary | Online Gaming | 10,000,000.00 | 34,256,800.30 | 25,600,490.93 | 3,591,287.62 | -3,689,424.88 | - The company had no acquisitions or disposals of subsidiaries during the reporting period[100](index=100&type=chunk) [Information on Structured Entities Controlled by the Company](index=24&type=section&id=IX.%20Information%20on%20Structured%20Entities%20Controlled%20by%20the%20Company) The company did not control any structured entities during the reporting period - The company had no controlled structured entities during the reporting period[101](index=101&type=chunk) [Risks Faced by the Company and Countermeasures](index=24&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces multiple risks across its cloud computing, gaming, and cultural tourism segments, including policy changes, market competition, talent loss, and safety, addressed by comprehensive mitigation strategies [1. Cloud Computing Business](index=24&type=section&id=1.%20Cloud%20Computing%20Business) The cloud computing business faces risks from changing regulatory policies, intensifying market competition, potential loss of key personnel, and rapid technological updates - The cloud computing business faces risks from changes in industry regulatory policies such as "dual control of energy consumption"[101](index=101&type=chunk) - Intensified market competition leads to a decline in overall gross margin for the IDC industry, and the increased power density requirements for AI intelligent computing business pose renovation cost risks[102](index=102&type=chunk) - The company faces the risk of losing core management and technical talent[103](index=103&type=chunk)[104](index=104&type=chunk) - The information technology industry is developing rapidly, and the company faces the risk of technological updates and iterations[105](index=105&type=chunk) [2. Gaming Business](index=25&type=section&id=2.%20Gaming%20Business) The gaming business is exposed to industry and policy risks, fierce market competition, and the potential loss of core personnel - The online gaming industry is regulated by cultural and press and publication departments, posing risks of non-approval and inability to launch games[106](index=106&type=chunk) - The gaming market is highly competitive, players demand high-quality games, and new game development entails high trial-and-error costs[107](index=107&type=chunk) - The company faces the risk of losing core talent in game R&D, operations, and management[108](index=108&type=chunk) [3. Cultural Tourism Business](index=25&type=section&id=3.%20Cultural%20Tourism%20Business) The cultural tourism business is vulnerable to natural disasters, adverse weather conditions, and significant safety incidents related to tourism attractions and special equipment operations - The tourism industry is highly sensitive to natural disasters, weather, and other factors, which may lead to a reduction in visitor numbers[109](index=109&type=chunk) - The tourism industry requires high safety standards, posing risks of major personal safety accidents and special equipment operational safety[110](index=110&type=chunk) [4. Other Risks](index=26&type=section&id=4.%20Other%20Risks) The company may face litigation risks, potentially leading to cash flow constraints - The company may face litigation risks, which could lead to cash flow constraints[111](index=111&type=chunk) [5. Countermeasures](index=26&type=section&id=5.%20Countermeasures) The company actively manages risks by establishing dynamic policy monitoring, green data center upgrades, business optimization, talent development, safety management, and financing expansion - The company is committed to establishing a dynamic policy monitoring system and a long-term compliance management mechanism, and green upgrading data centers to meet energy-saving and emission reduction requirements[112](index=112&type=chunk) - The company actively adapts to market demand changes, optimizes cloud computing services and game products, expands market share, reduces operating costs, and enhances user experience[112](index=112&type=chunk) - The company continuously improves its management system, strengthens talent acquisition, training, and retention to address talent loss risks[113](index=113&type=chunk) - The company builds a safety management system covering the entire lifecycle of equipment, regularly maintains special equipment, and strengthens visitor safety education[115](index=115&type=chunk) - The company utilizes legal tools to protect legitimate rights and interests, maintains communication with financial institutions, expands financing channels, and increases cash reserves[115](index=115&type=chunk) [Registration Form for Investor Relations Activities During the Reporting Period](index=27&type=section&id=XI.%20Registration%20Form%20for%20Investor%20Relations%20Activities%20During%20the%20Reporting%20Period) On May 22, 2025, the company hosted an online investor event to discuss its 2024 annual and Q1 2025 performance and business outlook - On **May 22, 2025**, the company hosted an online investor event via the Value Online platform to discuss its **2024 annual and Q1 2025 performance** and business outlook[116](index=116&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=27&type=section&id=XII.%20Formulation%20and%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company did not formulate a market value management system[117](index=117&type=chunk) - The company did not disclose a valuation enhancement plan[117](index=117&type=chunk) [Implementation of "Dual Improvement in Quality and Returns" Action Plan](index=27&type=section&id=XIII.%20Implementation%20of%20%22Dual%20Improvement%20in%20Quality%20and%20Returns%22%20Action%20Plan) The company did not disclose an announcement regarding the "Dual Improvement in Quality and Returns" action plan during the reporting period - The company did not disclose an announcement regarding the "Dual Improvement in Quality and Returns" action plan[117](index=117&type=chunk) [Corporate Governance, Environment, and Society](index=27&type=section&id=Item%20IV.%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section covers changes in the company's directors, supervisors, and senior management, profit distribution, equity incentive plans, and environmental and social responsibility disclosures [Changes in Directors, Supervisors, and Senior Management](index=27&type=section&id=I.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, there were changes in the company's senior management and employee representative supervisors, with new appointments and resignations 2025 Semi-Annual Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Gao Guozhou | Deputy General Manager, Board Secretary | Resignation | 2025年05月30日 | Job Transfer | | Dong Chizhen | Deputy General Manager | Resignation | 2025年05月30日 | Personal Reasons | | Zhang Yunqin | Board Secretary | Appointment | 2025年06月03日 | Job Transfer | | Lin Dezhi | Employee Representative Supervisor | Resignation | 2025年06月05日 | Resigned by Mutual Agreement | | Pan Xiaolong | Employee Representative Supervisor | Appointment | 2025年06月05日 | Job Transfer | [Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Reporting Period](index=28&type=section&id=II.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20in%20the%20Current%20Reporting%20Period) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[120](index=120&type=chunk) [Implementation of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=28&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 2021 stock option incentive plan's third exercise period was not achieved due to unmet performance targets, resulting in the cancellation of 2,076,000 stock options, and no other employee incentive measures were in place - The company's **2021 stock option incentive plan's third exercise period** was not achieved due to unmet operating revenue performance targets for 2024[121](index=121&type=chunk) - **2,076,000 stock options** were cancelled, and the incentive plan has been fully implemented[121](index=121&type=chunk) - The company had no employee stock ownership plans or other employee incentive measures during the reporting period[122](index=122&type=chunk) [Environmental Information Disclosure](index=29&type=section&id=IV.%20Environmental%20Information%20Disclosure) The listed company and its major subsidiaries were not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries were not included in the list of enterprises required to disclose environmental information by law[123](index=123&type=chunk) [Social Responsibility](index=29&type=section&id=V.%20Social%20Responsibility) The company did not disclose any social responsibility information during the reporting period - The company did not disclose any social responsibility information during the reporting period[123](index=123&type=chunk) [Significant Matters](index=30&type=section&id=Item%20V.%20Significant%20Matters) This section details the fulfillment of commitments, related party transactions, litigation, penalties, and other significant events during the reporting period [Fulfillment of Commitments by Actual Controllers, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period and Overdue Unfulfilled Commitments as of the End of the Reporting Period](index=30&type=section&id=I.%20Fulfillment%20of%20Commitments%20by%20Actual%20Controllers%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20During%20the%20Reporting%20Period%20and%20Overdue%20Unfulfilled%20Commitments%20as%20of%20the%20End%20of%20the%20Reporting%20Period) The actual controllers, Li Ruijie and Li Yilun, fulfilled their equity incentive commitments related to the 2021 stock option incentive plan on time - Li Ruijie and Li Yilun's equity incentive commitments regarding the **2021 stock option incentive plan** were fulfilled on time[125](index=125&type=chunk) - Commitments included exercise conditions of not less than **20%, 30%, and 40%** growth rates for operating revenue and net profit for 2022-2024, and cumulative actual exercised shares not exceeding **2 million shares** respectively[125](index=125&type=chunk) [Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties](index=30&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[126](index=126&type=chunk) [Irregular External Guarantees](index=31&type=section&id=III.%20Irregular%20External%20Guarantees) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[127](index=127&type=chunk) [Appointment and Dismissal of Accounting Firms](index=31&type=section&id=IV.%20Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual financial report was unaudited - The company's semi-annual report was unaudited[128](index=128&type=chunk) [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=31&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 had no non-standard audit report during the reporting period, rendering this section inapplicable - Not applicable[129](index=129&type=chunk) [Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year](index=31&type=section&id=VI.%20Explanation%20by%20the%20Board%20of%20Directors%20on%20the%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Previous%20Year) The company had no non-standard audit report during the reporting period, rendering this section inapplicable - Not applicable[129](index=129&type=chunk) [Bankruptcy and Reorganization Matters](index=31&type=section&id=VII.%20Bankruptcy%20and%20Reorganization%20Matters) The company did not experience any bankruptcy or reorganization matters during the reporting period - The company did not experience any bankruptcy or reorganization matters during the reporting period[129](index=129&type=chunk) [Litigation Matters](index=31&type=section&id=VIII.%20Litigation%20Matters) The company had no major litigation or arbitration matters but was involved in several other cases, including investor securities misrepresentation, labor disputes, and contract disputes, most of which are ongoing or awaiting execution - The company had no major litigation or arbitration matters during the current reporting period[130](index=130&type=chunk) 2025 Semi-Annual Other Litigation and Arbitration Matters | Basic Information of Litigation (Arbitration) | Amount Involved (Ten Thousand Yuan) | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | | :--- | :--- | :--- | :--- | | Securities Misrepresentation Liability Dispute involving 133 Investors | 659.32 | First Instance | Undecided | | Labor Dispute Arbitration with a Natural Person | 3.29 | Arbitration | Arbitration award supported applicant's claim for a total of 9,755 yuan | | Construction Project Contract Dispute Arbitration with Taiji Computer | 1,390.79 | Arbitration | Undecided | | Company's Litigation Regarding Shenzhen Huihai Yirong Equity Repurchase Dispute | 1,900 | First Instance | Undecided | | Company's Litigation Regarding Zhejiang China Textile City Computer Software Development Contract Dispute | 942.37 | First Instance | Undecided | | Chengdu Baoteng Interconnect's Litigation Regarding Guangzhou Jiajie Product Liability Dispute | 51.66 | Closed | Closed | [Penalties and Rectification](index=32&type=section&id=IX.%20Penalties%20and%20Rectification) The company and several individuals received administrative penalties from the China Securities Regulatory Commission for information disclosure violations, including false statements in annual reports and delayed disclosure of the actual controller's criminal coercive measures, with subsequent accounting corrections and rectifications 2025 Semi-Annual Penalties | Name | Type | Reason | Investigation and Penalty Type | Conclusion (if any) | | :--- | :--- | :--- | :--- | :--- | | Shenzhen ZQGame Interactive Network Co., Ltd. | Other | Information Disclosure Violations | Investigated or Administratively Penalized by China Securities Regulatory Commission | Warning, and fined **4 million yuan** (false statements); Warning, and fined **1 million yuan** (failure to timely disclose actual controller's criminal coercive measures and organizing/instigating information disclosure violations) | | Li Ruijie | Actual Controller | Information Disclosure Violations | Investigated or Administratively Penalized by China Securities Regulatory Commission | Warning, and fined **2 million yuan** (false statements); fined **1.5 million yuan** (organizing/instigating information disclosure violations) | | Zhang Yunxia | Actual Controller | Information Disclosure Violations | Investigated or Administratively Penalized by China Securities Regulatory Commission | Fined **2 million yuan** (organizing/instigating information disclosure violations) | | Li Yilun | Director | Information Disclosure Violations | Investigated or Administratively Penalized by China Securities Regulatory Commission | Warning, and fined **1 million yuan** (false statements); Warning, and fined **0.5 million yuan** (failure to timely disclose actual controller's criminal coercive measures and organizing/instigating information disclosure violations) | | Zhang Chao | Other | Information Disclosure Violations | Investigated or Administratively Penalized by China Securities Regulatory Commission | Warning, and fined **2 million yuan** | | Zhang Siqun | Other | Information Disclosure Violations | Investigated or Administratively Penalized by China Securities Regulatory Commission | Warning, and fined **0.5 million yuan** | | Gao Guozhou | Other | Information Disclosure Violations | Investigated or Administratively Penalized by China Securities Regulatory Commission | Warning, and fined **0.2 million yuan** | - The company has retrospectively adjusted its **2019-2021 financial statements** and implemented rectification measures for the failure to timely disclose the actual controller's criminal coercive measures[134](index=134&type=chunk) [Integrity Status of the Company, its Controlling Shareholders, and Actual Controllers](index=34&type=section&id=X.%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholders%2C%20and%20Actual%20Controllers) The company reported no integrity issues requiring disclosure during the reporting period - Not applicable[135](index=135&type=chunk) [Significant Related Party Transactions](index=34&type=section&id=XI.%20Significant%20Related%20Party%20Transactions) The company engaged in daily operational related party transactions totaling 8.0287 million yuan, including property leases and service procurement, and acquired a 10% equity stake in a related party for 1 yuan 2025 Semi-Annual Related Party Transactions Related to Daily Operations | Related Party | Related Transaction Content | Transaction Amount (Ten Thousand Yuan) | Proportion of Similar Transactions | | :--- | :--- | :--- | :--- | | Baode Holdings | Property Lease Out | 168.61 | 100.00% | | Baode Technology | Property Lease In | 463.31 | 40.08% | | Leshan Baode | Property Lease In | 36.70 | 3.17% | | Leshan Baoyun | Property Lease In | 110.09 | 9.52% | | Leshan Baode Future City Science Park Management Co., Ltd. | Property Lease In | 19.80 | 1.71% | | Beijing Baode Ziqiang | Purchase of Servers, Computers, and Accessories | 4.20 | 8.86% | | Guizhou Jinsha Gujiu Winery | Provision of Technology Development, Platform Services | 0.16 | 2.47% | | Total | | 802.87 | | - The company acquired a **10% equity stake** in Shenzhen ZQGame Data Services Co., Ltd. from Shenzhen Qianhai Pengde Mobile Internet Venture Capital Fund (Limited Partnership) for **1 yuan**[137](index=137&type=chunk) - The company reported no related party transactions involving joint external investments, non-operating related party receivables/payables, dealings with related financial companies, or other significant related party transactions during the reporting period[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) [Significant Contracts and Their Performance](index=37&type=section&id=XII.%20Significant%20Contracts%20and%20Their%20Performance) The company had no entrustment, contracting, or leasing matters, but provided significant guarantees for subsidiaries totaling 86 million yuan, representing 22.59% of net assets, and a computing power service contract is being performed normally - The company reported no entrustment, contracting, or leasing situations during the reporting period[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) 2025 Semi-Annual Company Guarantees for Subsidiaries | Guaranteed Party Name | Guaranteed Amount (Ten Thousand Yuan) | Actual Guaranteed Amount (Ten Thousand Yuan) | Guarantee Type | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Chengdu Baoteng | 8,200 | 2,460 | Joint and Several Liability Guarantee | Three years from the expiration date of the debt performance period | No | | Chengdu Baoteng | 8,200 | 4,772.8 | Joint and Several Liability Guarantee | Three years from the expiration date of the debt performance period | No | | Chengdu Baoteng | 8,200 | 367.2 | Joint and Several Liability Guarantee | Three years from the expiration date of the debt performance period | No | | Shenzhen Baoteng Interconnect | 6,000 | 1,000 | Joint and Several Liability Guarantee | Three years from the expiration date of the debt performance period | No | | Total Approved Guarantee Amount for Subsidiaries at Period End | 14,200 | | | | | | Total Actual Guarantee Balance for Subsidiaries at Period End | 8,600 | | | | | | Proportion of Total Actual Guarantee Amount to Company's Net Assets | | 22.59% | | | | - The "Computing Power Resource Service Contract" signed by the company with China Unicom Shenzhen Branch on **December 11, 2024**, is being performed normally[150](index=150&type=chunk) - The company reported no other significant contracts during the reporting period[151](index=151&type=chunk) [Explanation of Other Significant Matters](index=38&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) The company reported no other significant matters requiring explanation during the reporting period - The company reported no other significant matters requiring explanation during the reporting period[152](index=152&type=chunk) [Significant Matters of Company Subsidiaries](index=38&type=section&id=XIV.%20Significant%20Matters%20of%20Company%20Subsidiaries) The company reported no significant matters concerning its subsidiaries during the reporting period - Not applicable[153](index=153&type=chunk) [Share Changes and Shareholder Information](index=39&type=section&id=Item%20VI.%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital, shareholder numbers, and holdings, as well as information on directors, supervisors, and senior management shareholdings [Share Change Status](index=39&type=section&id=I.%20Share%20Change%20Status) The company's total share capital remained unchanged, but restricted shares decreased by 2,500 and unrestricted shares increased by 2,500, primarily due to changes in senior management's locked-up shares 2025 Semi-Annual Share Change Status | Share Class | Quantity Before Change (Shares) | Increase/Decrease in This Change (＋，－) (Shares) | Quantity After Change (Shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 10,000 | -2,500 | 7,500 | | Of which: Shares held by domestic natural persons | 10,000 | -2,500 | 7,500 | | II. Unrestricted Shares | 261,848,710 | 2,500 | 261,851,210 | | Of which: RMB Ordinary Shares | 261,848,710 | 2,500 | 261,851,210 | | III. Total Shares | 261,858,710 | 0 | 261,858,710 | - The reason for share changes was the change in the company's senior management's locked-up shares[157](index=157&type=chunk) 2025 Semi-Annual Restricted Share Change Status | Shareholder Name | Restricted Shares at Beginning of Period (Shares) | Restricted Shares Released in Current Period (Shares) | Restricted Shares Increased in Current Period (Shares) | Restricted Shares at End of Period (Shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhang Chao | 10,000 | 2,500 | 0 | 7,500 | Senior Management Locked-up Shares | [Securities Issuance and Listing](index=40&type=section&id=II.%20Securities%20Issuance%20and%20Listing) The company had no securities issuance or listing activities during the reporting period - Not applicable[159](index=159&type=chunk) [Company Shareholder Numbers and Shareholding Status](index=40&type=section&id=III.%20Company%20Shareholder%20Numbers%20and%20Shareholding%20Status) As of the reporting period end, the company had 40,468 ordinary shareholders, with Shenzhen Baode Technology and Shenzhen Baode Investment Holdings as the top two, both controlled by Li Ruijie and Zhang Yunxia - Total number of ordinary shareholders at the end of the reporting period: **40,468**[160](index=160&type=chunk) 2025 Semi-Annual Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (Shares) | Number of Unrestricted Shares Held (Shares) | Pledge, Mark, or Freeze Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Shenzhen Baode Technology Co., Ltd. | Domestic Non-State-Owned Legal Person | 9.51% | 24,903,400 | 24,903,400 | Pledged **24,903,400 shares** | | Shenzhen Baode Investment Holdings Co., Ltd. | Domestic Non-State-Owned Legal Person | 7.31% | 19,141,478 | 19,141,478 | Pledged **19,000,000 shares** | | Xu Guoxin | Domestic Natural Person | 2.71% | 7,098,813 | 7,098,813 | Not applicable | | Luo Li | Domestic Natural Person | 1.21% | 3,163,598 | 3,163,598 | Not applicable | | Zhao Zhangcai | Domestic Natural Person | 1.06% | 2,769,003 | 2,769,003 | Not applicable | | Xu Jiacheng | Domestic Natural Person | 0.97% | 2,529,200 | 2,529,200 | Not applicable | | BARCLAYS BANK PLC | Overseas Legal Person | 0.94% | 2,466,087 | 2,466,087 | Not applicable | | Xu Gangsheng | Domestic Natural Person | 0.85% | 2,237,600 | 2,237,600 | Not applicable | | Goldman Sachs International - Proprietary Funds | Overseas Legal Person | 0.75% | 1,959,025 | 1,959,025 | Not applicable | | UBS AG | Overseas Legal Person | 0.61% | 1,591,445 | 1,591,445 | Not applicable | - The actual controllers of Shenzhen Baode Investment Holdings Co., Ltd. and Shenzhen Baode Technology Co., Ltd. are **Li Ruijie and Zhang Yunxia**, a married couple[161](index=161&type=chunk) [Shareholding Changes of Directors, Supervisors, and Senior Management](index=42&type=section&id=IV.%20Shareholding%20Changes%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period - The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period[163](index=163&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=42&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[164](index=164&type=chunk) - The company's actual controller remained unchanged during the reporting period[164](index=164&type=chunk) [Preferred Share Information](index=43&type=section&id=VI.%20Preferred%20Share%20Information) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[165](index=165&type=chunk) [Bond-Related Information](index=44&type=section&id=Item%20VII.%20Bond-Related%20Information) This section provides information regarding the company's bonds [Bond-Related Information](index=44&type=section&id=Bond-Related%20Information) The company had no bond-related information during the reporting period - Not applicable[167](index=167&type=chunk) [Financial Report](index=45&type=section&id=Item%20VIII.%20Financial%20Report) This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and notes on significant accounting policies [Audit Report](index=45&type=section&id=I.%20Audit%20Report) The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[169](index=169&type=chunk) [Financial Statements](index=45&type=section&id=II.%20Financial%20Statements) This section provides the company's 2025 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity Consolidated Balance Sheet Key Data as of June 30, 2025 | Item | Balance at Period End (Yuan) | | :--- | :--- | | Total Assets | 815,989,936.30 | | Total Liabilities | 453,325,164.00 | | Total Owners' Equity | 362,664,772.30 | Consolidated Income Statement Key Data for 2025 Semi-Annual Period | Item | 2025 Semi-Annual Period (Yuan) | | :--- | :--- | | Total Operating Revenue | 97,946,418.30 | | Net Profit Attributable to Parent Company Shareholders | -24,645,817.53 | | Basic Earnings Per Share (Yuan/share) | -0.09 | Consolidated Cash Flow Statement Key Data for 2025 Semi-Annual Period | Item | 2025 Semi-Annual Period (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 10,946,924.01 | | Net Cash Flow from Investing Activities | -1,851,500.77 | | Net Cash Flow from Financing Activities | -1,101,965.20 | | Net Increase in Cash and Cash Equivalents | 7,983,783.04 | [Company Basic Information](index=62&type=section&id=III.%20Company%20Basic%20Information) The company was listed on the Shenzhen Stock Exchange on February 11, 2010, with stock code 300052, primarily engaged in online game development and operations, and ultimately controlled by Li Ruijie and Zhang Yunxia - The company was listed on the **Shenzhen Stock Exchange ChiNext Board** on **February 11, 2010**, stock code **300052**[204](index=204&type=chunk) - As of **June 30, 2025**, the company's total share capital and registered capital were both **261,858,710.00 yuan**[204](index=204&type=chunk) - The company belongs to the online gaming industry, with its main products or services being the development and operation of online games[205](index=205&type=chunk) - As of **June 30, 2025**, the company's ultimate controlling parties are **Li Ruijie and Zhang Yunxia**, a married couple[206](index=206&type=chunk) [Basis of Financial Statement Preparation](index=63&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared on a going concern basis in accordance with the Accounting Standards for Business Enterprises and relevant regulations, with no significant matters affecting its going concern ability - The company's financial statements are prepared on a going concern basis, in accordance with the **Accounting Standards for Business Enterprises** and relevant regulations[208](index=208&type=chunk) - The company possesses the ability to continue as a going concern for at least **12 months** from the end of the reporting period, with no significant matters affecting this ability[209](index=209&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=64&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Accounting%20Estimates) This section details the company's significant accounting policies and estimates for financial statement preparation, covering various items from accounting standards to revenue recognition, with no changes during the reporting period - The company's financial statements comply with the requirements of the Accounting Standards for Business Enterprises, truthfully and completely reflecting its financial position, operating results, and cash flows[212](index=212&type=chunk) - The company uses **RMB** as its bookkeeping base currency; US ZQGame uses **USD** as its bookkeeping base currency, and its financial statements have been converted to RMB for reporting purposes[214](index=214&type=chunk)[215](index=215&type=chunk) - The company defines individual accounts receivable balances exceeding **10%** of the total accounts receivable as individually significant, and individual construction in progress projects exceeding **10%** of the total construction in progress as significant[216](index=216&type=chunk) - For expected credit losses on accounts receivable and other receivables, the company uses an aging portfolio approach, with different expected credit loss rates for various aging periods[253](index=253&type=chunk)[255](index=255&type=chunk)[258](index=258&type=chunk)[259](index=259&type=chunk) - The company's intangible assets include system software, development tools, game products, operating tools, office software, etc., with finite-lived intangible assets amortized using the straight-line method[279](index=279&type=chunk)[281](index=281&type=chunk) - The company's revenue primarily includes online game revenue (including advertising agency revenue), cloud computing revenue, labor service revenue, and asset use right transfer revenue, with detailed principles and methods for recognizing each type[301](index=301&type=chunk)[305](index=305&type=chunk)[312](index=312&type=chunk) - The company reported no significant changes in accounting policies or accounting estimates during the reporting period[333](index=333&type=chunk) [Taxation](index=90&type=section&id=VI.%20Taxation) The company's main taxes include VAT, urban maintenance and construction tax, education surcharges, property tax, and corporate income tax, with some entities enjoying preferential high-tech enterprise tax rates and overseas subsidiaries benefiting from local tax policies 2025 Semi-Annual Major Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales Revenue | 13%, 3%, 1% | | Value-Added Tax (VAT) | Modern Service Industry Revenue | 9%, 6%, 5%, 3%, 1% | | Urban Maintenance and Construction Tax | Actual Paid Turnover Tax Amount | 7%, 5% | | Education Surcharge | Actual Paid Turnover Tax Amount | 3% | | Local Education Surcharge | Actual Paid Turnover Tax Amount | 2% | | Property Tax | For self-occupied properties, 70% of the original value of the property is the tax base; for leased properties, rental income is the tax base | 1.2%; 12% | 2025 Semi-Annual Corporate Income Tax Rates for Taxable Entities | Taxable Entity Name | Income Tax Rate | | :--- | :--- | | The Company | 15% | | Shenzhen Baoteng Interconnect | 15% | | Shenzhen Big | 15% | | Other Companies | 25% | - The company and its wholly-owned subsidiaries Shenzhen Baoteng Interconnect and Shenzhen Big obtained high-tech enterprise qualifications, enjoying a **15% preferential corporate income tax rate** for 2025[336](index=336&type=chunk) - CU PLAY (registered in British Virgin Islands, Cayman Islands) is exempt from corporate income tax[337](index=337&type=chunk) - Hong Kong ZQGame and Chaser are taxed based on profit source, paying **16.5% profits tax** for profits sourced from Hong Kong, and exempt otherwise[337](index=337&type=chunk)[339](index=339&type=chunk) [Notes to Consolidated Financial Statement Items](index=92&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes on the consolidated financial statement items, including monetary funds, accounts receivable, construction in progress, goodwill, operating revenue, operating costs, and net profit attributable to parent company shareholders Consolidated Financial Statement Key Items Balances as of June 30, 2025 | Item | Balance at Period End (Yuan) | | :--- | :--- | | Monetary Funds | 34,920,588.28 | | Accounts Receivable | 39,900,166.31 | | Other Receivables | 7,026,572.70 | | Inventories | 5,209,295.88 | | Other Equity Instrument Investments | 212,153,280.46 | | Fixed Assets | 247,872,168.10 | | Construction in Progress | 0 | | Intangible Assets | 15,429,064.68 | | Goodwill | 0 (Fully impaired) | | Short-Term Borrowings | 12,787,718.24 | | Accounts Payable | 57,492,922.33 | | Contract Liabilities | 53,348,422.79 | | Share Capital | 261,858,710.00 | | Capital Reserve | 375,755,303.26 | | Retained Earnings | -230,571,493.12 | - Of the monetary funds at period end, **12,820,104.54 yuan** are restricted in use[341](index=341&type=chunk) - The balance of construction in progress at period end was **0**, primarily due to the completion and transfer out of computing power servers and supporting equipment adaptation[400](index=400&type=chunk)[402](index=402&type=chunk)[84](index=84&type=chunk) - The original book value of goodwill at period end was **77,616,588.85 yuan**, which has been fully impaired[412](index=412&type=chunk)[414](index=414&type=chunk) 2025 Semi-Annual Consolidated Income Statement Key Items | Item | Amount for Current Period (Yuan) | Amount for Prior Period (Yuan) | | :--- | :--- | :--- | | Operating Revenue | 97,946,418.30 | 121,209,411.88 | | Operating Cost | 69,807,913.52 | 95,000,045.99 | | R&D Expenses | 12,235,175.98 | 17,642,858.97 | | Financial Expenses | 6,138,760.21 | 4,815,553.23 | | Net Profit Attributable to Owners of the Parent Company | -24,645,817.53 | -25,008,489.30 | [R&D Expenses](index=122&type=section&id=VIII.%20R%26D%20Expenses) The company's total R&D expenses for the 2025 semi-annual period amounted to 12,235,175.98 yuan, all of which were expensed, primarily consisting of employee compensation 2025 Semi-Annual R&D Expense Composition | Item | Amount for Current Period (Yuan) | | :--- | :--- | | Employee Compensation | 10,725,722.25 | | Property Lease Expenses | 148,994.86 | | Depreciation and Amortization Expenses | 750,883.43 | | Other | 609,575.44 | | Total | 12,235,175.98 | | Of which: Expensed R&D Expenses | 12,235,175.98 | [Changes in Consolidation Scope](index=122&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) The company reported no changes in its consolidation scope during the reporting period - Not applicable[532](index=532&type=chunk) [Interests in Other Entities](index=122&type=section&id=X.%20Interests%20in%20Other%20Entities) The company holds interests in 31 subsidiaries engaged in various businesses and acquired a 10% equity stake in Shenzhen ZQGame Data Services for 1 yuan, increasing capital reserve by 563,344.21 yuan, and also holds investments in associates - The company owns **31 subsidiaries**, with business natures covering online games, advertising, investment, and cloud computing services[534](index=534&type=chunk)[536](index=536&type=chunk) - The company acquired a **10% equity stake** in Shenzhen ZQGame Data Services Co., Ltd. for **1 yuan**, making it a wholly-owned subsidiary and resulting in an increase of **563,344.21 yuan** in capital reserve[537](index=537&type=chunk)[538](index=538&type=chunk) 2025 Semi-Annual Summary Financial Information of Insignificant Joint Ventures and Associates | Item | Balance at Period End/Amount for Current Period (Yuan) | | :--- | :--- | | Total Book Value of Investments in Associates | 3,045,175.66 | | Net Profit of Associates | 146,143.75 | | Total Comprehensive Income of Associates | 146,143.75 | [Government Grants](index=126&type=section&id=XI.%20Government%20Grants) The company recognized government grants totaling 230,032.47 yuan as other income during the reporting period, with no outstanding receivables or liabilities related to government grants - Government grants totaling **230,032.47 yuan** were recognized in current profit or loss and recorded as other income[542](index=542&type=chunk) - As of the end of the reporting period, there were no government grants recognized as receivables or any liabilities related to government grants[541](index=541&type=chunk) [Risks Related to Financial Instruments](index=126&type=section&id=XII.%20Risks%20Related%20to%20Financial%20Instruments) The company's financial instruments, including borrowings and receivables/payables, expose it to market, credit, and liquidity risks, which are managed through credit limits, bad debt provisions, cash flow monitoring, and financing negotiations - The company's main financial instruments include borrowings, receivables, and payables, exposing it to market risks (exchange rate risk, price risk), credit risk, and liquidity risk[543](index=543&type=chunk)[545](index=545&type=chunk)[548](index=548&type=chunk)[549](index=549&type=chunk)[553](index=553&type=chunk) 2025 Semi-Annual Foreign Currency Monetary Items Balances as of June 30 | Item | Balance at Period End (Yuan) | | :--- | :--- | | Monetary Funds - USD | 421,800.68 | | Monetary Funds - HKD | 161,057.78 | | Accounts Receivable - USD | 15,530,947.29 | | Accounts Receivable - HKD | 11,637.26 | | Other Receivables - USD | 6,804,783.90 | | Other Payables - USD | 93,532.41 | | Accounts Payable - USD | 53,693.44 | 2025 Semi-Annual Impact of Exchange Rate Changes on Net Profit and Shareholders' Equity | Item | Exchange Rate Change | Impact on Net Profit (Yuan) | Impact on Shareholders' Equity (Yuan) | | :--- | :--- | :--- | :--- | | USD | Appreciation of **5%** against RMB | 1,130,515.30 | 1,130,515.30 | | USD | Depreciation of **5%** against RMB | -1,130,515.30 | -1,130,515.30 | | HKD | Appreciation of **5%** against RMB | 8,634.75 | 8,634.75 | | HKD | Depreciation of **5%** against RMB | -8,634.75 | -8,634.75 | 2025 Semi-Annual Impact of Interest Rate Changes on Net Profit and Shareholders' Equity | Item | Interest Rate Change | Impact on Net Profit (Yuan) | Impact on Shareholders' Equity (Yuan) | | :--- | :--- | :--- | :--- | | Floating Rate Borrowings | Increase by **1%** | -94,000.00 | -94,000.00 | | Floating Rate Borrowings | Decrease by **1%** | 94,000.00 | 94,000.00 | [Fair Value Disclosure](index=129&type=section&id=XIII.%20Fair%20Value%20Disclosure) The company's total assets measured at fair value on a recurring basis amounted to 218,486,180.46 yuan, primarily other equity instrument investments and other non-current financial assets, all measured using Level 3 fair value and valuation techniques like perpetual growth models 2025 Semi-Annual Assets and Liabilities Measured at Fair Value as of June 30 | Item | Fair Value at Period End (Yuan) | | :--- | :--- | | I. Recurring Fair Value Measurements | | | (I) Non-Current Financial Assets | 6,332,900.00 | | 1. Financial assets designated at fair value through profit or loss | 6,332,900.00 | | (1) Equity instrument investments | 6,332,900.00 | | (II) Other Equity Instrument Investments | 212,153,280.46 | | Total assets measured at fair value on a recurring basis | 218,486,180.46 | - Equity instrument investments and other equity instrument investments are valued using a perpetual growth model or based on audit/appraisal reports combined with the company's investment cost[563](index=563&type=chunk) [Related Parties and Related Party Transactions](index=130&type=section&id=XIV.%20Related%20Parties%20and%20Related%20Party%20Transactions) The company's ultimate controllers are Li Ruijie and Zhang Yunxia, with significant daily operational related party transactions, including property leases and service procurement, and an acquisition of a 10% equity stake in a related party for 1 yuan - The company's controlling shareholders are **Shenzhen Baode Investment Holdings Co., Ltd.** and **Shenzhen Ba