二〇二五年八月二十七日 1 / 200 海南矿业股份有限公司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。 海南矿业股份有限公司2025 年半年度报告 公司代码：601969 公司简称：海南矿业 海南矿业股份有限公司 2025 年半年度报告 二、 公司全体董事出席董事会会议。 三、 本半年度报告未经审计。 四、 公司负责人刘明东、主管会计工作负责人朱彤及会计机构负责人（会计主管人员）吴勇达 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 公司拟以截至董事会审议利润分配方案日公司总股本1,998,792,238股扣除公司回购专用证 券账户中股份数9,171,100股后的股本1,989,621,138股为基数, 向全体股东每10股派发现金红利 0.30元（含税），合计拟派发现金红利人民币59,688,634.14元（含税）。如在本次利润分配方案 经公司董事会审议通过之日起至实施权益分派股权登记日期 ...

[Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) This section provides critical disclaimers regarding the report's accuracy, profit distribution, forward-looking statements, and significant risks [Board of Directors and Management Statement](index=2&type=section&id=%E4%B8%80%E3%80%81%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%8F%8A%E8%91%A3%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E4%BF%9D%E8%AF%81%E5%8D%8A%E5%B9%B4%E5%BA%A6%E6%8A%A5%E5%91%8A%E5%86%85%E5%AE%B9%E7%9A%84%E7%9C%9F%E5%8D%8E%E6%80%A7%E3%80%81%E5%87%86%E7%A1%AE%E6%80%A7%E3%80%81%E5%AE%8C%E6%95%B4%E6%80%A7%EF%BC%8C%E4%B8%8D%E5%AD%98%E5%9C%A8%E8%99%9A%E5%81%87%E8%AE%B0%E8%BD%BD%E3%80%81%E8%AF%AF%E5%AF%BC%E6%80%A7%E9%99%88%E8%BF%B0%E6%88%96%E9%87%8D%E5%A4%A7%E9%81%97%E6%BC%8F%EF%BC%8C%E5%B9%B6%E6%89%BF%E6%8B%85%E4%B8%AA%E5%88%AB%E5%92%8C%E8%BF%9E%E5%B8%A6%E7%9A%84%E6%B3%95%E5%BE%8B%E8%B4%A3%E4%BB%BB) The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, assuming individual and joint legal responsibility - The company's board of directors and senior management commit to the truthfulness, accuracy, and completeness of the semi-annual report content, and assume legal responsibility[3](index=3&type=chunk) - This semi-annual report has not been audited[5](index=5&type=chunk) - The company's head, chief accountant, and head of accounting department declare that the financial report is true, accurate, and complete[5](index=5&type=chunk) [Profit Distribution Plan](index=2&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%86%B3%E8%AE%AE%E9%80%9A%E8%BF%87%E7%9A%84%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E9%A2%84%E6%A1%88%E6%88%96%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E9%A2%84%E6%A1%88) The board of directors did not approve any profit distribution or capital reserve to share capital plan for this reporting period - There is no profit distribution or capital reserve to share capital plan for this reporting period[6](index=6&type=chunk) [Forward-Looking Statements Risk Disclaimer](index=2&type=section&id=%E5%85%AD%E3%80%81%E5%89%8D%E7%9E%BB%E6%80%A7%E9%99%88%E8%BF%B0%E7%9A%84%E9%A3%8E%E9%99%A9%E5%A3%B0%E6%98%8E) Forward-looking descriptions in the report, such as future plans and development strategies, do not constitute substantial commitments to investors, who are advised to be aware of potential risks - Forward-looking descriptions in the report do not constitute substantial commitments, and investors should be aware of risks[6](index=6&type=chunk) [Significant Risk Warning](index=2&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) The company has thoroughly disclosed potential significant risks in Section III, Management Discussion and Analysis, and advises investors to review it - The company has thoroughly described existing risks in Section III, Management Discussion and Analysis[7](index=7&type=chunk) [Section I Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) This section defines common terms used in the report, including regulatory bodies, company entities, and key subsidiaries, to ensure accurate understanding [Definitions of Common Terms](index=4&type=section&id=%E5%B8%B8%E7%94%A8%E8%AF%8D%E8%AF%AD%E9%87%8A%E4%B9%89) This section provides definitions for common terms used in the report, including the China Securities Regulatory Commission, Shanghai Stock Exchange, the Company, Ye Chiu Resources, and its main subsidiaries (e.g., Ye Chiu Malaysia, AME Company, Metalico), to ensure accurate understanding of the report's content - This section clarifies the common terms and their meanings used in the report, including regulatory bodies, company entities, and their subsidiaries[12](index=12&type=chunk) [Section II Company Profile and Key Financial Indicators](index=4&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section outlines the company's basic information, contact details, and key financial performance metrics for the reporting period [Company Information](index=4&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section introduces the company's basic registration information, including its Chinese name, abbreviation, foreign name and its abbreviation, and legal representative - The company's Chinese name is Ye Chiu Metal Recycling (China) Co., Ltd., abbreviated as Ye Chiu Resources, and its legal representative is LEW KAE MING (Liu Kaimin)[14](index=14&type=chunk) [Contact Person and Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section provides detailed contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, faxes, and email addresses, to facilitate investor communication - The company's Board Secretary is Gao Yulan, and the Securities Affairs Representative is Shi Jiajia, both with the contact address at No. 388 Hutai New Road, Taicang City, Jiangsu Province[15](index=15&type=chunk) [Brief Introduction to Changes in Basic Information](index=4&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E5%8F%98%E6%9B%B4%E7%AE%80%E4%BB%8B) This section outlines the company's registered address, office address, and postal code, and provides the company's official website, without mentioning historical changes - The company's registered and office address is No. 388 Hutai New Road, Taicang City, Jiangsu Province, and the company website is http://www.yechiu.com[16](index=16&type=chunk) [Brief Introduction to Changes in Information Disclosure and Document Custody Locations](index=5&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) This section states that the company's designated information disclosure newspaper is "Shanghai Securities News," the semi-annual report is published on www.sse.com.cn, and the report is available at the Board of Directors' Office - The company's designated information disclosure newspaper is "Shanghai Securities News," the report is published on www.sse.com.cn, and the document custody location is the Board of Directors' Office[18](index=18&type=chunk) [Brief Introduction to Company Shares](index=5&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) This section provides basic information about the company's shares, including share type, listing exchange, stock abbreviation, and stock code - The company's shares are A-shares, listed on the Shanghai Stock Exchange, with the stock abbreviation Ye Chiu Resources and stock code 601388[19](index=19&type=chunk) [Key Accounting Data and Financial Indicators](index=5&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In the first half of 2025, the company's operating revenue increased by 10.46% year-on-year, but total profit and net profit attributable to shareholders significantly decreased by 51.23% and 57.11%, respectively, while net cash flow from operating activities improved significantly by 135.03% 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Period (Jan-Jun) | Prior Year Period | Period-on-Period Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,580,910,999.45 Yuan | 3,241,752,945.62 Yuan | 10.46 | | Total Profit | 45,103,669.38 Yuan | 92,480,853.59 Yuan | -51.23 | | Net Profit Attributable to Shareholders of Listed Company | 29,389,746.51 Yuan | 68,530,092.89 Yuan | -57.11 | | Net Cash Flow from Operating Activities | 121,320,737.89 Yuan | -346,323,437.37 Yuan | 135.03 | | Basic Earnings Per Share (Yuan/share) | 0.01 | 0.03 | -66.67 | | Weighted Average Return on Net Assets (%) | 0.66 | 1.59 | Decrease of 0.93 percentage points | 2025 Semi-Annual End Asset and Liability Data | Indicator | End of Current Period | End of Prior Year | Change from Prior Year End (%) | | :--- | :--- | :--- | :--- | | Net Assets Attributable to Shareholders of Listed Company | 4,523,501,506.88 Yuan | 4,382,119,750.73 Yuan | 3.23 | | Total Assets | 6,144,780,637.44 Yuan | 6,121,702,062.43 Yuan | 0.38 | [Non-Recurring Gains and Losses Items and Amounts](index=6&type=section&id=%E4%B9%9D%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) The total non-recurring gains and losses for this reporting period amounted to **-3.40 million Yuan**, primarily due to disposal losses of non-current assets, fair value changes, and other non-operating income and expenses, negatively impacting the company's net profit 2025 Semi-Annual Non-Recurring Gains and Losses Details | Non-Recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Disposal losses of non-current assets | -1,655,114.69 | | Government grants recognized in current profit/loss | 34,254.90 | | Gains/losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains/losses from disposal of financial assets and liabilities | -1,587,485.77 | | Other non-operating income and expenses | -354,445.75 | | Less: Income tax impact | 163,331.76 | | Total | -3,399,459.55 | [Section III Management Discussion and Analysis](index=6&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section discusses the company's industry, main business operations, core competencies, and key financial performance during the reporting period, along with potential risks and mitigation strategies [Company's Industry and Main Business Overview](index=6&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company's main business involves vehicle dismantling, metal scrap recycling, and recycled aluminum alloy ingot production, operating in the waste resource recycling sector, which benefits from "dual carbon" strategies but faces challenges like regional imbalances and resource supply issues, with supportive national policies [Main Business and Operating Model](index=6&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E5%92%8C%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company's core businesses include specialized vehicle dismantling, high-value metal scrap recycling, and producing recycled aluminum alloy ingots from waste aluminum resources, operating with a global procurement network and a make-to-order production model - The company specializes in waste resource recycling, with core businesses in vehicle dismantling and high-value metal scrap recycling, and products widely used in ferrous, non-ferrous metals, and remanufacturing industries[26](index=26&type=chunk) - The company operates **over 20 processing plants in the United States**, ranking among the top 20 metal recycling enterprises, with business models including undertaking industrial, civil, and end-of-life vehicle recycling, and participating in bidding for recycling projects[26](index=26&type=chunk)[27](index=27&type=chunk) - The company produces recycled aluminum alloy ingots from waste aluminum resources, a business that holds a significant position in China's aluminum resource recycling sector and is one of the industry's leading enterprises[28](index=28&type=chunk) - The company has established a global procurement network covering China, the United States, Europe, Australia, and Southeast Asia, operates on a make-to-order production model, has a sales network across Asia, and its products are registered on the LME[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) [Industry Overview](index=8&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E5%85%AC%E5%8F%B8%E6%89%80%E5%A4%84%E8%A1%8C%E4%B8%9A%E7%9A%84%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) The recycled aluminum industry, a key non-ferrous metal sector, offers significant energy-saving and environmental benefits, aligning with global "dual carbon" strategies and China's "14th Five-Year Plan" target of 11.5 million tons by 2025, despite facing challenges such as regional imbalances, resource supply constraints, and an incomplete recycling system, with national policies actively supporting its standardized and scaled development - Recycled aluminum production cycle is shortened by approximately **40%** compared to primary aluminum, with energy consumption only **5%** of primary aluminum production, demonstrating significant economic and environmental benefits[32](index=32&type=chunk) - China's "14th Five-Year Plan" aims for recycled aluminum production to reach **11.5 million tons by 2025**, with aluminum usage in new energy vehicles increasing by approximately **30%**[33](index=33&type=chunk) - The global recycled aluminum market exhibits structural imbalance, with utilization rates generally **above 50% in developed countries**, while China's rate is only around **20%**[33](index=33&type=chunk) - The state has introduced the "Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in," supporting the recycled aluminum industry's development through policies covering consumption, recycling, technology, and standards[34](index=34&type=chunk) [Discussion and Analysis of Operations](index=9&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In the first half of 2025, the company faced global economic uncertainties, increased market competition, and high raw material prices, leading to a significant decline in profit, which it addressed by adjusting sales strategies, optimizing procurement, strengthening internal controls, and advancing technological upgrades, while also enhancing resource acquisition and operational efficiency through acquisitions and elimination of outdated capacity - In the first half of 2025, the company's operating revenue increased by **10.46%** year-on-year, but net profit attributable to parent company owners decreased by **57.11%** year-on-year[36](index=36&type=chunk) - The profit decline was primarily due to increased aluminum alloy ingot business costs and falling selling prices caused by **fluctuations in the USD to MYR exchange rate**, as well as increased fixed expenses from new capacity utilization[36](index=36&type=chunk) - The company optimized operating costs through refined cost control, centralized procurement, strict control of non-essential expenditures, and advancement of process technology upgrades[36](index=36&type=chunk)[37](index=37&type=chunk) - Subsidiary M Company acquired two vehicle dismantling plants, enhancing vehicle dismantling volume, used auto parts sales, and platinum group metals business efficiency, while strengthening raw material supply chain competitiveness[38](index=38&type=chunk) - New project capacities are gradually being released, utilizing industry-leading process technologies and taking over production tasks from older plants; the company disposed of some YCPG assets to eliminate outdated capacity and reduce operating costs[39](index=39&type=chunk) [Analysis of Core Competencies](index=10&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) As a leading domestic aluminum resource recycling enterprise, the company has cultivated five core advantages over forty years: technology, procurement, customer relations, management, and international operations, ensuring raw material supply, production efficiency, market competitiveness, and risk resilience through continuous innovation, a global procurement network, stable customer relationships, and a modern management system - The company possesses continuous technological innovation and process improvement advantages in waste aluminum reprocessing, with internationally leading technical expertise, and is a Jiangsu Province circular economy standardization pilot enterprise[40](index=40&type=chunk)[41](index=41&type=chunk) - The company has established a global waste aluminum procurement network and expanded its US market presence through the acquisition of Metalico and vehicle dismantling plants, ensuring stable raw material supply and capturing upstream profits in the industrial chain[41](index=41&type=chunk)[42](index=42&type=chunk) - The company has established long-term cooperative relationships with several world-renowned automobile manufacturers, electrical and electronic manufacturers, and is actively expanding new energy vehicle parts die-casting customers, demonstrating strong customer loyalty[42](index=42&type=chunk)[43](index=43&type=chunk) - The company has built a modern management system guided by "strategy, institutional foundation, digital intelligence empowerment, and risk control," and has obtained ISO9001, ISO14001, and other certifications, enhancing its international management standards[43](index=43&type=chunk)[44](index=44&type=chunk) - The company operates overseas entities such as Ye Chiu Malaysia, AME Company, and Metalico in the US, establishing a global raw material procurement and product sales system that enables it to seize opportunities in different national market cycles[44](index=44&type=chunk) [Key Operating Performance During the Reporting Period](index=12&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) During the reporting period, the company's operating revenue increased, but total profit and net profit significantly declined due to exchange rate fluctuations, rising costs, and increased fixed expenses from new capacity, while net cash flow from operating activities improved significantly due to adjusted sales strategies, and the asset-liability structure remained stable with a high proportion of overseas assets and reduced financial asset investments [Main Business Analysis](index=12&type=section&id=(%E4%B8%80)%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) The company's operating revenue increased by 10.46% year-on-year, but operating costs grew even more, leading to a 51.23% decrease in total profit and a 57.11% decrease in net profit attributable to the parent company, with financial expenses rising by 36.73% due to exchange rate fluctuations, while net cash flow from operating activities significantly increased by 135.03% primarily due to adjusted sales strategies focusing on shorter payment terms and quicker collections Financial Statement Related Item Changes (Jan-Jun 2025 vs Jan-Jun 2024) | Item | Current Period Amount (Yuan) | Prior Year Period Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,580,910,999.45 | 3,241,752,945.62 | 10.46 | | Operating Cost | 3,358,598,349.30 | 2,978,814,209.49 | 12.75 | | Total Profit | 45,103,669.38 | 92,480,853.59 | -51.23 | | Net Profit Attributable to Shareholders of Listed Company | 29,389,746.51 | 68,530,092.89 | -57.11 | | Financial Expenses | 28,277,116.31 | 20,680,370.77 | 36.73 | | Net Cash Flow from Operating Activities | 121,320,737.89 | -346,323,437.37 | 135.03 | - The change in financial expenses was primarily due to **exchange rate fluctuations**[45](index=45&type=chunk) - The change in net cash flow from operating activities was primarily due to the company adjusting its sales strategy to increase sales with shorter payment terms and quicker collections to mitigate market risks[46](index=46&type=chunk) [Analysis of Assets and Liabilities](index=13&type=section&id=(%E4%B8%89)%20%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, the company's total assets and net assets attributable to shareholders both slightly increased, while financing receivables and long-term receivables decreased, and other non-current assets, contract liabilities, other payables, non-current liabilities due within one year, and long-term payables all significantly increased, with overseas assets accounting for 86.39% of total assets, reflecting the company's international operating characteristics Asset and Liability Status Changes (Period End vs Prior Year End) | Item Name | Current Period End Amount (Yuan) | Prior Year End Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Financing Receivables | 801,516.23 | 2,392,551.05 | -66.50 | | Long-term Receivables | 8,033,588.30 | 11,824,917.78 | -32.06 | | Other Non-current Assets | 3,379,425.74 | 1,220,709.99 | 176.84 | | Contract Liabilities | 40,299,016.37 | 24,555,792.46 | 64.11 | | Other Payables | 99,422,356.05 | 32,126,209.38 | 209.47 | | Non-current Liabilities Due Within One Year | 101,236,943.02 | 71,653,829.23 | 41.29 | | Long-term Payables | 11,059,535.90 | 4,398,495.70 | 151.44 | | Other Comprehensive Income | 37,225,105.37 | -74,766,904.27 | 147.32 | - The scale of overseas assets was **5.31 billion Yuan**, accounting for **86.39%** of total assets[48](index=48&type=chunk) - The change in other payables was primarily due to **deposits received from asset disposals**[47](index=47&type=chunk) - The change in other comprehensive income was primarily due to **exchange rate fluctuations**[47](index=47&type=chunk) [Analysis of Investment Status](index=14&type=section&id=(%E5%9B%9B)%20%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) At the end of the period, the company's financial assets measured at fair value amounted to **462.35 million Yuan**, a decrease from the beginning of the period, with purchases totaling **611.36 million Yuan**, sales/redemptions totaling **642.15 million Yuan**, and fair value change losses of **-1.99 million Yuan** Changes in Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (Yuan) | Fair Value Change Gain/Loss for Current Period (Yuan) | Purchases for Current Period (Yuan) | Sales/Redemptions for Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Stocks | 53,811,960.74 | -5,031,596.89 | 0 | 0 | 51,275,134.02 | | Bonds | 162,615,849.32 | -7,703.39 | 0 | 14,702,890.92 | 147,911,063.17 | | Derivative Instruments | 74,040.00 | 0 | 0 | 74,040.00 | 0 | | Other | 267,761,191.39 | 3,045,499.27 | 611,360,000.00 | 627,446,434.33 | 263,161,855.41 | | Total | 484,263,041.45 | -1,993,801.01 | 611,360,000.00 | 642,149,325.25 | 462,348,052.60 | [Other Disclosure Matters](index=15&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) The company faces risks from product and raw material price fluctuations, changes in industrial policies, exchange rate volatility, overseas operations, and management challenges due to company expansion, and will respond by closely monitoring macroeconomic and policy changes, adjusting business decisions, and continuously improving management systems [Potential Risks](index=15&type=section&id=(%E4%B8%80)%20%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%AF%B9%E7%9A%84%E9%A3%8E%E9%99%A9) The company primarily faces risks from price fluctuations in aluminum alloy ingots and waste aluminum, impacts from varying national industrial policies on its cross-border operations, exchange rate volatility between USD, MYR, and RMB affecting operating performance, overseas operating risks due to changes in foreign political and economic environments and tax policies, and management challenges arising from company expansion in strategic planning, system development, organizational structure, operations, funding, and internal control - The company faces **price fluctuation risks** for aluminum alloy ingots and waste aluminum, which may impact profitability in the short term[56](index=56&type=chunk)[57](index=57&type=chunk) - As a multinational enterprise, the company's operations are affected by the industrial policies of the countries where it operates, posing **policy change risks**[57](index=57&type=chunk) - Raw material procurement and export revenues are primarily settled in USD and MYR, so **exchange rate fluctuations** between RMB, MYR, and USD impact operating performance[57](index=57&type=chunk) - The company has multiple overseas subsidiaries and faces **overseas operating risks** from changes in foreign political and economic environments, tax policy changes, and exchange rate fluctuations[57](index=57&type=chunk) - The company is in a critical phase of industrial chain integration and customer expansion, with its expanding scale bringing **management risks** in strategic planning, system development, organizational setup, operational management, capital management, and internal control[58](index=58&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=17&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) This section details changes in the company's directors and senior management, as well as its profit distribution plan for the reporting period [Changes in Directors and Senior Management](index=17&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company experienced changes in its directors and senior management, with Pan Junqing and Li Shilong elected as independent directors, Zhang Shengen resigning as an independent director, and WONG KENG LEE (Huang Qinli) elected as a director, while LEE YEE HUI (Li Yihui) resigned as a director, all due to re-election - Pan Junqing and Li Shilong were elected as independent directors, while Zhang Shengen resigned as an independent director[61](index=61&type=chunk) - WONG KENG LEE (Huang Qinli) was elected as a director, while LEE YEE HUI (Li Yihui) resigned as a director[61](index=61&type=chunk) - All changes in directors and senior management were due to re-election[61](index=61&type=chunk) [Profit Distribution or Capital Reserve to Share Capital Plan](index=17&type=section&id=%E4%BA%8C%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company's semi-annual profit distribution or capital reserve to share capital plan is "No," meaning no profit distribution or capital reserve conversion will occur in this reporting period - The company will not distribute or convert capital reserves in the semi-annual period, with **0 shares** for bonus shares, dividends, and capital reserve conversions per 10 shares[61](index=61&type=chunk) [Section V Significant Matters](index=18&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section covers the fulfillment of commitments, significant litigation, and major related party transactions during the reporting period [Fulfillment of Commitments](index=18&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company's actual controllers, shareholders, and related parties have strictly fulfilled their commitments during or continuing into the reporting period, primarily concerning resolving horizontal competition, dividend commitments, and share lock-up commitments, all of which are long-term - The company's actual controllers, Huang Chongshing and Lin Shengzhi, committed to resolving horizontal competition, ensuring they would not directly or indirectly participate in businesses or activities competing with the company; this commitment is long-term and has been strictly fulfilled[64](index=64&type=chunk) - Overseas subsidiaries committed to dividend distribution: Ye Chiu Malaysia will cash distribute no less than **20%** of its distributable profit annually, while Harmony Company and Jincheng Company will fully cash distribute their distributable net profit annually; these commitments are long-term and have been strictly fulfilled[64](index=64&type=chunk) - Ye Chiu (Hong Kong) Co., Ltd. and Zhifu (Taicang) Investment Management Co., Ltd. committed to share lock-up, ensuring that the total shares transferred annually during the actual controllers' tenure do not exceed **25%** of their indirectly held shares, no transfers occur within six months of resignation, and transfers within six to twelve months after resignation do not exceed **50%** of the total shares; this commitment is long-term and has been strictly fulfilled[64](index=64&type=chunk) [Significant Litigation and Arbitration Matters](index=19&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E5%A4%A7%E8%AF%89%E8%AE%BC%E3%80%81%E4%BB%B2%E8%A3%81%E4%BA%8B%E9%A1%B9) The company had no significant litigation or arbitration matters during this reporting period - The company had no significant litigation or arbitration matters during this reporting period[65](index=65&type=chunk) [Significant Related Party Transactions](index=19&type=section&id=%E5%85%AB%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) During the reporting period, the company's primary significant related party transactions involved guarantees for subsidiaries, with the total guarantee balance for subsidiaries amounting to **5.245 billion Yuan** at the end of the period, representing **115.95%** of the company's net assets, including **716 million Yuan** for guaranteed entities with an asset-liability ratio exceeding 70%, and **2.983 billion Yuan** for the portion of total guarantees exceeding 50% of net assets Company Guarantee Total (Including Guarantees for Subsidiaries) | Indicator | Amount (Billion Yuan) | | :--- | :--- | | Total guarantees for subsidiaries incurred during the reporting period | 1.077 | | Total guarantee balance for subsidiaries at the end of the reporting period (B) | 5.245 | | Total guarantees (A+B) | 5.245 | | Ratio of total guarantees to company net assets (%) | 115.95 | | Of which: Guarantees provided for shareholders, actual controllers, and their related parties (C) | 0 | | Debt guarantees provided directly or indirectly for guaranteed entities with an asset-liability ratio exceeding 70% (D) | 0.716 | | Amount of total guarantees exceeding 50% of net assets (E) | 2.983 | | Total of the above three guarantee amounts (C+D+E) | 3.699 | [Section VI Share Changes and Shareholder Information](index=21&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details the company's share capital changes and shareholder structure during the reporting period [Changes in Share Capital](index=21&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[69](index=69&type=chunk) [Shareholder Information](index=21&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **71,331** common shareholders, with Ye Chiu (Hong Kong) Co., Ltd. holding the largest stake at **35.64%** among the top ten shareholders, which also included Lin Shengzhi, Zhilian Investment Holdings Co., Ltd., and Huang Chongshing, with Ye Chiu (Hong Kong) Co., Ltd., Zhifu (Taicang) Investment Management Co., Ltd., Huang Chongshing, and Lin Shengzhi acting in concert - As of the end of the reporting period, the company had **71,331** common shareholders[70](index=70&type=chunk) Top Ten Shareholders' Shareholding as of the End of the Reporting Period | Shareholder Name | Number of Shares Held at Period End (shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Ye Chiu (Hong Kong) Co., Ltd. | 784,514,000 | 35.64 | Overseas Legal Person | | Lin Shengzhi | 176,326,086 | 8.01 | Overseas Natural Person | | Zhilian Investment Holdings Co., Ltd. | 99,374,560 | 4.51 | Overseas Legal Person | | Huang Chongshing | 38,020,400 | 1.73 | Overseas Natural Person | | Zhifu (Taicang) Investment Management Co., Ltd. | 22,600,500 | 1.03 | Domestic Non-State-Owned Legal Person | | Hong Kong Securities Clearing Company Limited | 16,693,831 | 0.76 | Unknown | | Taicang Huanyu Business Consulting Co., Ltd. | 7,628,268 | 0.35 | Domestic Non-State-Owned Legal Person | | Lu Jun | 5,983,123 | 0.27 | Unknown | | Taicang Yi'an Business Consulting Co., Ltd. | 4,826,000 | 0.22 | Domestic Non-State-Owned Legal Person | | Yang Qiaoling | 3,510,000 | 0.16 | Unknown | - Ye Chiu (Hong Kong) Co., Ltd., Zhifu (Taicang) Investment Management Co., Ltd., Huang Chongshing, and Lin Shengzhi are parties acting in concert[73](index=73&type=chunk) [Section VII Bond-Related Information](index=24&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms that the company had no corporate bonds, debt financing instruments, or convertible corporate bonds during the reporting period [Corporate Bonds and Debt Financing Instruments](index=24&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%EF%BC%88%E5%90%AB%E4%BC%81%E4%B8%9A%E5%80%BA%E5%88%B8%EF%BC%89%E5%92%8C%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E4%B8%9A%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7) During this reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[77](index=77&type=chunk) [Convertible Corporate Bonds](index=24&type=section&id=%E4%BA%8C%E3%80%81%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E6%83%85%E5%86%B5) During this reporting period, the company had no convertible corporate bonds - The company has no convertible corporate bonds[77](index=77&type=chunk) [Section VIII Financial Report](index=25&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the company's financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with notes on accounting policies, taxation, and other significant financial matters [Financial Statements](index=25&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity for the first half of 2025, comprehensively presenting the company's financial position, operating results, and cash flow at the end of the reporting period [Consolidated Balance Sheet](index=25&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the company's consolidated total assets were **6.14 billion Yuan**, total liabilities were **1.62 billion Yuan**, and equity attributable to parent company owners was **4.52 billion Yuan**, with total assets slightly increasing by **0.38%** and parent company net assets growing by **3.23%** compared to the end of the prior year Consolidated Balance Sheet Key Data (June 30, 2025) | Item | Ending Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Cash and Bank Balances | 615,053,674.84 | 659,280,599.21 | | Financial Assets Held for Trading | 272,547,304.91 | 288,201,001.93 | | Accounts Receivable | 617,657,141.19 | 667,222,032.93 | | Inventories | 1,706,201,586.55 | 1,633,087,734.15 | | Total Current Assets | 3,459,386,333.28 | 3,496,406,056.41 | | Fixed Assets | 2,068,646,753.30 | 2,050,935,357.21 | | Total Assets | 6,144,780,637.44 | 6,121,702,062.43 | | Short-term Borrowings | 566,210,474.99 | 705,498,284.89 | | Total Current Liabilities | 1,060,404,860.55 | 1,162,257,378.51 | | Total Liabilities | 1,621,220,370.81 | 1,739,532,542.53 | | Total Equity Attributable to Parent Company Owners | 4,523,501,506.88 | 4,382,119,750.73 | [Parent Company Balance Sheet](index=27&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the parent company's total assets were **3.05 billion Yuan**, total liabilities were **435.66 million Yuan**, and total owner's equity was **2.61 billion Yuan**, with both total assets and owner's equity slightly decreasing compared to the end of the prior year Parent Company Balance Sheet Key Data (June 30, 2025) | Item | Ending Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Cash and Bank Balances | 134,468,264.13 | 222,710,913.77 | | Financial Assets Held for Trading | 221,148,784.88 | 231,762,157.20 | | Accounts Receivable | 106,378,591.80 | 160,773,329.87 | | Inventories | 73,787,919.21 | 46,436,096.81 | | Total Current Assets | 541,852,523.44 | 669,653,417.11 | | Long-term Equity Investments | 2,228,929,828.78 | 2,128,929,828.78 | | Total Assets | 3,045,916,302.17 | 3,091,018,042.21 | | Accounts Payable | 371,756,503.28 | 442,069,540.78 | | Total Current Liabilities | 435,661,184.81 | 463,842,471.04 | | Total Liabilities | 435,661,184.81 | 463,842,471.04 | | Total Owner's Equity | 2,610,255,117.36 | 2,627,175,571.17 | [Consolidated Income Statement](index=29&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) For January-June 2025, the company's consolidated total operating revenue was **3.58 billion Yuan**, a year-on-year increase of **10.46%**, but total profit was **45.10 million Yuan**, a year-on-year decrease of **51.23%**, and net profit attributable to parent company shareholders was **29.39 million Yuan**, a year-on-year decrease of **57.11%**, while net other comprehensive income significantly increased to **111.99 million Yuan** Consolidated Income Statement Key Data (Jan-Jun 2025) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 3,580,910,999.45 | 3,241,752,945.62 | | Total Operating Cost | 3,523,985,070.13 | 3,137,029,108.42 | | Total Profit | 45,103,669.38 | 92,480,853.59 | | Net Profit | 29,398,737.09 | 68,545,593.37 | | Net Profit Attributable to Parent Company Shareholders | 29,389,746.51 | 68,530,092.89 | | Net Other Comprehensive Income After Tax | 111,992,009.64 | -54,782,611.84 | | Total Comprehensive Income | 141,390,746.73 | 13,762,981.53 | | Basic Earnings Per Share (Yuan/share) | 0.01 | 0.03 | [Parent Company Income Statement](index=31&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) For January-June 2025, the parent company's operating revenue was **319.82 million Yuan**, a year-on-year increase of **2.84%**, but total profit was **-16.92 million Yuan**, and net profit was **-16.92 million Yuan**, indicating an expanded loss compared to the prior year period Parent Company Income Statement Key Data (Jan-Jun 2025) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Operating Revenue | 319,815,557.63 | 310,976,846.22 | | Operating Cost | 310,426,937.50 | 306,459,206.04 | | Total Profit | -16,919,506.46 | -15,887,729.59 | | Net Profit | -16,920,453.81 | -15,887,729.59 | | Total Comprehensive Income | -16,920,453.81 | -15,887,729.59 | [Consolidated Cash Flow Statement](index=32&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For January-June 2025, the company's net cash flow from operating activities was **121.32 million Yuan**, a significant year-on-year increase of **135.03%** from a negative value to positive, while net cash flow from investing activities was **-52.28 million Yuan**, a reduced outflow, and net cash flow from financing activities was **-179.23 million Yuan**, shifting from an inflow to an outflow Consolidated Cash Flow Statement Key Data (Jan-Jun 2025) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 121,320,737.89 | -346,323,437.37 | | Net Cash Flow from Investing Activities | -52,282,810.90 | -256,760,724.02 | | Net Cash Flow from Financing Activities | -179,227,621.50 | 510,567,236.05 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | 67,924,131.51 | -7,610,668.45 | | Net Increase in Cash and Cash Equivalents | -42,265,563.00 | -100,127,593.78 | [Parent Company Cash Flow Statement](index=34&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For January-June 2025, the parent company's net cash flow from operating activities was **-48.65 million Yuan**, shifting from an inflow to an outflow compared to the prior year, while net cash flow from investing activities was **-37.52 million Yuan**, a reduced outflow, and net cash flow from financing activities was **21.25 million Yuan**, a significant decrease from the prior year Parent Company Cash Flow Statement Key Data (Jan-Jun 2025) | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -48,653,128.85 | 161,586,450.03 | | Net Cash Flow from Investing Activities | -37,517,871.03 | -274,404,634.37 | | Net Cash Flow from Financing Activities | 21,249,207.11 | 0 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | -2,295,129.12 | -1,799,393.73 | | Net Increase in Cash and Cash Equivalents | -88,466,129.00 | -93,368,370.96 | [Consolidated Statement of Changes in Equity](index=36&type=section&id=%E5%90%88%E5%B9%B6%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) For January-June 2025, the company's consolidated total owner's equity increased by **141.39 million Yuan**, primarily driven by a significant increase in other comprehensive income (**111.99 million Yuan**) and net profit attributable to parent company owners (**29.39 million Yuan**) Consolidated Statement of Changes in Equity (Jan-Jun 2025) | Item | Beginning Balance (Yuan) | Change Amount for Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | | Paid-in Capital (or Share Capital) | 2,201,222,616.00 | 0 | 2,201,222,616.00 | | Capital Reserve | 195,498,415.41 | 0 | 195,498,415.41 | | Other Comprehensive Income | -74,766,904.27 | 111,992,009.64 | 37,225,105.37 | | Surplus Reserve | 169,348,160.28 | 0 | 169,348,160.28 | | Retained Earnings | 1,890,617,463.31 | 29,389,746.51 | 1,920,007,209.82 | | Total Equity Attributable to Parent Company Owners | 4,382,119,750.73 | 141,381,756.15 | 4,523,501,506.88 | | Minority Interests | 49,769.17 | 8,990.58 | 58,759.75 | | Total Owner's Equity | 4,382,169,519.90 | 141,390,746.73 | 4,523,560,266.63 | [Parent Company Statement of Changes in Equity](index=38&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) For January-June 2025, the parent company's total owner's equity decreased by **16.92 million Yuan**, primarily due to a negative total comprehensive income for the period Parent Company Statement of Changes in Equity (Jan-Jun 2025) | Item | Beginning Balance (Yuan) | Change Amount for Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | | Paid-in Capital (or Share Capital) | 2,201,222,616.00 | 0 | 2,201,222,616.00 | | Capital Reserve | 135,953,250.66 | 0 | 135,953,250.66 | | Surplus Reserve | 169,348,160.28 | 0 | 169,348,160.28 | | Retained Earnings | 120,451,544.23 | -16,920,453.81 | 103,531,090.42 | | Total Owner's Equity | 2,627,175,571.17 | -16,920,453.81 | 2,610,255,117.36 | [Company Basic Information](index=40&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) The company, established in 2009, has undergone multiple capital increases, share transfers, and non-public offerings, resulting in a total of **2.201 billion shares** issued and a registered capital of **2.201 billion Yuan** as of June 30, 2025, with its main business encompassing the production, processing, and sale of new alloy materials, non-ferrous metal materials and products, and environmental protection machinery, along with related import and export activities, which remained unchanged during the reporting period - The company was established on **September 17, 2009**, through the overall conversion of Ye Chiu Metal (Taicang) Co., Ltd[109](index=109&type=chunk) - As of June 30, 2025, the company had cumulatively issued **2.201 billion shares**, with a registered capital of **2.201 billion Yuan**[113](index=113&type=chunk) - The company's main business includes the production and processing of new alloy materials, various new non-ferrous metal materials, ferrous metal materials and their products, environmental protection machinery, smelting equipment, and sorting equipment, as well as selling self-produced products and engaging in related import/export and wholesale businesses[113](index=113&type=chunk) - The company's main business did not change during the reporting period[113](index=113&type=chunk) [Basis of Financial Statement Preparation](index=41&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The company's financial statements are prepared on a going concern basis, and an assessment of its ability to continue as a going concern for 12 months from the end of the reporting period found no issues affecting this ability - The company's financial statements are prepared on a **going concern basis**[114](index=114&type=chunk) - The company assessed its ability to continue as a going concern for **12 months** from the end of the reporting period and found no matters affecting this ability[115](index=115&type=chunk) [Significant Accounting Policies and Estimates](index=41&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the company's adherence to enterprise accounting standards for financial statement preparation, covering the recognition, classification, measurement, and impairment of financial instruments, as well as policies for receivables, inventories, long-term equity investments, fixed assets, intangible assets, revenue recognition, government grants, deferred income tax, and leases, ensuring a true and complete reflection of financial information - The company's financial statements comply with enterprise accounting standards, truly and completely reflecting its financial position, operating results, and other information[117](index=117&type=chunk) - The company's accounting year runs from **January 1 to December 31** of the Gregorian calendar, and its bookkeeping currency is **RMB**[118](index=118&type=chunk)[120](index=120&type=chunk) - The company has detailed accounting policies for the recognition, derecognition, classification, and measurement of financial instruments (amortized cost, fair value through profit or loss/other comprehensive income), classification and measurement of financial liabilities, derivative financial instruments and embedded derivatives, and financial instrument impairment (expected credit loss model)[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk)[188](index=188&type=chunk) - The company clearly defines inventory classification, valuation methods for issuance (weighted average method at month-end), inventory system (perpetual inventory system), and criteria and methods for recognizing and providing for inventory impairment[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk) - The company recognizes revenue when customers obtain control of the related goods, with domestic sales recognized upon delivery or customer acceptance, and export sales recognized on the bill of lading shipment date[229](index=229&type=chunk)[231](index=231&type=chunk)[234](index=234&type=chunk) - The company classifies government grants as either asset-related or income-related, recognizing them as deferred income or directly in current profit or loss, respectively[237](index=237&type=chunk)[238](index=238&type=chunk) [Taxation](index=76&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) The company's main taxes include VAT, corporate income tax, property tax, and urban land use tax; Chinese domestic subsidiaries generally apply a 25% corporate income tax rate, with some small-profit enterprises enjoying a preferential policy of 20% on 25% of taxable income, while overseas subsidiaries are subject to varying rates based on their registration and operation locations, such as 16.5% (tiered at 8.25%) for Hong Kong profits tax, 24% for Malaysian corporate income tax, and tax exemption for Samoan international companies Main Tax Categories and Rates | Tax Category | Taxable Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Domestic sales; provision of processing, repair, and maintenance services | 13% | | Property Tax | 70% of original property value as tax base / Rental income as tax base | 1.2% / 12% | | Urban Land Use Tax | Actual occupied land area | 3 Yuan/square meter | Corporate Income Tax Rates for Different Taxable Entities | Taxable Entity Name | Income Tax Rate (%) | | :--- | :--- | | Federal Income Tax (USA) | 21% | | State Corporate Tax (USA) | New York: 7.25%; Pennsylvania: 8.49%; New Jersey: 11.5% | | Ye Chiu International, Ye Chiu Hong Kong (Hong Kong) | 16.5% (8.25% for total profit less than 2 million Hong Kong Dollars) | | Ye Chiu Malaysia Co., Ltd. and others (Malaysia) | 24% | | Harmony Company, Jincheng Company (Samoa) | Tax Exempt | - The company's income tax rate is **25%**, while some Chinese domestic subsidiaries (e.g., Hongfu Company, Kunshan Ye Chiu) enjoy preferential tax policies for small-profit enterprises, paying corporate income tax at a **20%** rate on **25%** of their taxable income[252](index=252&type=chunk)[253](index=253&type=chunk) [Notes to Consolidated Financial Statement Items](index=78&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes for each major item in the consolidated financial statements, including cash and bank balances, financial assets held for trading, accounts receivable, inventories, fixed assets, construction in progress, intangible assets, goodwill, long-term deferred expenses, deferred income tax assets/liabilities, assets with restricted ownership or use rights, short-term borrowings, notes payable, accounts payable, contract liabilities, employee benefits payable, taxes payable, other payables, non-current liabilities due within one year, long-term borrowings, lease liabilities, long-term payables, provisions, share capital, capital reserve, other comprehensive income, specific reserves, surplus reserve, retained earnings, operating revenue and cost, taxes and surcharges, selling expenses, administrative expenses, research and development expenses, financial expenses, investment income, fair value change gains, credit impairment losses, asset impairment losses, asset disposal gains, non-operating income, non-operating expenses, income tax expenses, cash flow statement items, and foreign currency monetary items, explaining their period-end balances, period-beginning balances, and reasons for changes Cash and Bank Balances Composition (Period End) | Item | Ending Balance (Yuan) | | :--- | :--- | | Cash on Hand | 13,733,187.47 | | Bank Deposits | 599,056,216.56 | | Other Cash and Bank Balances | 1,704,758.49 | | Accrued Interest Receivable (Undue) | 559,512.32 | | Total | 615,053,674.84 | | Of which: Total funds deposited overseas | 474,743,306.65 | Financial Assets Held for Trading Composition (Period End) | Item | Ending Balance (Yuan) | | :--- | :--- | | Debt Instrument Investments | 123,386.02 | | Equity Instrument Investments | 51,275,134.02 | | Other (Bank Wealth Management Products) | 221,148,784.88 | | Total | 272,547,304.91 | Accounts Receivable Impairment Provision (Period End) | Category | Book Balance (Yuan) | Impairment Provision (Yuan) | Provision Rate (%) | | :--- | :--- | :--- | :--- | | Impairment provision based on individual assessment | 1,183,858.45 | 1,183,858.45 | 100 | | Impairment provision based on portfolio assessment | 620,559,221.18 | 2,902,079.99 | 0.47 | | Total | 621,743,079.63 | 4,085,938.44 | - | Inventory Classification and Impairment Provision (Period End) | Item | Book Balance (Yuan) | Inventory Impairment Provision (Yuan) | Book Value (Yuan) | | :--- | :--- | :--- | :--- | | Raw Materials | 689,854,244.70 | 3,242,728.13 | 686,611,516.58 | | Finished Goods | 401,723,260.93 | 6,488,157.60 | 395,235,103.32 | | Goods in Transit | 605,472,190.10 | 0 | 605,472,190.10 | | Goods Sent Out | 18,882,776.54 | 0 | 18,882,776.54 | | Total | 1,715,932,472.28 | 9,730,885.73 | 1,706,201,586.55 | Assets with Restricted Ownership or Use Rights (Period End) | Item | Book Balance (Yuan) | Type of Restriction | Restriction Details | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 15,121,625.97 | Pledged | Bills, performance bonds, litigation preservation | | Fixed Assets | 612,624,186.88 | Mortgaged | Mortgaged for borrowings | | Intangible Assets | 252,787,213.29 | Mortgaged | Mortgaged for borrowings | | Total | 880,533,026.14 | / | / | Provisions (Period End) | Item | Ending Balance (Yuan) | Reason for Formation | | :--- | :--- | :--- | | Estimated Tax Expense | 47,364,020.47 | Malaysian subsidiary YCTL has a dispute with the tax authority regarding tax incentive policies, and the company has recognized a provision based on the best estimate | | Total | 47,364,020.47 | / | Operating Revenue and Operating Cost (Jan-Jun 2025) | Item | Revenue (Yuan) | Cost (Yuan) | | :--- | :--- | :--- | | Main Business | 3,569,323,316.03 | 3,349,881,784.89 | | Other Businesses | 11,587,683.42 | 8,716,564.41 | | Total | 3,580,910,999.45 | 3,358,598,349.30 | Operating Revenue and Operating Cost by Operating Region (Jan-Jun 2025) | Operating Region | Operating Revenue (Yuan) | Operating Cost (Yuan) | | :--- | :--- | :--- | | China | 637,567,305.87 | 609,771,961.67 | | Japan | 839,665,494.94 | 810,423,785.05 | | Malaysia | 240,666,251.44 | 219,813,223.30 | | Other Asia | 637,703,280.75 | 620,091,094.01 | | Americas | 1,223,667,678.09 | 1,096,958,853.30 | | Other | 1,640,988.36 | 1,539,431.97 | | Total | 3,580,910,999.45 | 3,358,598,349.30 | [Changes in Consolidation Scope](index=110&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) During this reporting period, there were no changes in the company's consolidation scope due to non-same control or same control business combinations - During this reporting period, there were no non-same control business combinations within the company's consolidation scope[392](index=392&type=chunk) - During this reporting period, there were no same control business combinations within the company's consolidation scope[392](index=392&type=chunk) [Interests in Other Entities](index=111&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) The company holds interests in numerous subsidiaries engaged in diverse businesses such as waste metal processing, trading, information consulting, venture capital, supply chain management, and real estate, located across China, Hong Kong, Malaysia, the United States, and Samoa, with most being wholly-owned or controlled subsidiaries acquired through non-same control business combinations or investments - The company owns multiple subsidiaries with diverse business natures, including waste metal processing, trading, information consulting, venture capital, supply chain management, and real estate[394](index=394&type=chunk)[395](index=395&type=chunk) - Subsidiaries are located in various countries and regions, including China, Hong Kong, Malaysia, the United States, and Samoa[394](index=394&type=chunk)[395](index=395&type=chunk) - Most subsidiaries are wholly-owned, acquired through non-same control business combinations or investment establishments[394](index=394&type=chunk)[395](index=395&type=chunk) [Government Grants](index=113&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) During this reporting period, the company recognized **34,254.90 Yuan** in government grants in current profit or loss, a significant decrease from the prior year period Government Grants Recognized in Current Profit or Loss | Type | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Income-related | 34,254.90 | 461,810.51 | | Total | 34,254.90 | 461,810.51 | [Risks Related to Financial Instruments](index=113&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces credit risk, liquidity risk, and market risk (including exchange rate risk, interest rate risk, and price risk), which it manages through credit policies, cash flow monitoring, forward foreign exchange contracts, and interest rate monitoring to mitigate potential financial losses - The company's main financial instruments include cash and bank balances, equity investments, debt investments, borrowings, receivables, and payables, exposing it to **credit risk, liquidity risk, and market risk**[398](index=398&type=chunk) - The company manages credit risk by formulating credit policies, continuously monitoring credit risk exposure, assessing customer creditworthiness, and setting credit terms[399](index=399&type=chunk) - The company manages liquidity risk by continuously monitoring short-term and long-term funding needs, maintaining ample cash reserves, and securing credit lines from financial institutions[402](index=402&type=chunk) - The company faces **exchange rate risk** (primarily from MYR and USD transactions), which may be hedged through forward foreign exchange contracts; **interest rate risk** (primarily from bank borrowings), managed by monitoring interest rate levels and adjusting fixed/floating rate proportions; and **price risk** (commodity prices, stock indices, etc.)[403](index=403&type=chunk)[404](index=404&type=chunk)[406](index=406&type=chunk) [Disclosure of Fair Value](index=115&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) At the end of the period, the company's total assets measured at fair value amounted to **462.35 million Yuan**, primarily comprising financial assets held for trading, other equity instrument investments, and other current assets, with Level 1 measurements mainly for publicly traded bonds and stocks, Level 2 for forward foreign exchange products, structured deposits, and short-term government bonds, and Level 3 for fund units, while the book value of financial assets and liabilities not measured at fair value was very close to their fair value Fair Value of Assets and Liabilities 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) | | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 51,398,520.04 | 221,148,784.88 | 0 | 272,547,304.92 | | Other Equity Instrument Investments | 0 | 0 | 42,013,070.53 | 42,013,070.53 | | Other Current Assets | 147,787,677.15 | 0 | 0 | 147,787,677.15 | | Total Assets Continuously Measured at Fair Value | 199,186,197.19 | 221,148,784.88 | 42,013,070.53 | 462,348,052.60 | - Level 1 fair value measurement items (debt instrument investments and equity instrument investments) are determined by **unadjusted quoted prices in active markets**[409](index=409&type=chunk) - Level 2 fair value measurement items (forward foreign exchange products, structured deposits, US short-term government bonds) are determined based on **financial institution reference valuations**[410](index=410&type=chunk) - Level 3 fair value measurement items (funds) are determined based on **valuations provided by fund managers**[412](index=412&type=chunk) - The book value of financial assets and liabilities not measured at fair value is **very close to their fair value**[415](index=415&type=chunk) [Related Parties and Related Party Transactions](index=116&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company's ultimate controlling parties are Huang Chongshing and Lin Shengzhi, and during the reporting period, the company engaged in related party transactions including purchases and sales of goods, acceptance of services, leasing, and guarantees, with significant guarantees provided to subsidiaries totaling **5.245 billion Yuan** at the end of the period, representing **115.95%** of the company's net assets, and key management personnel compensation amounted to **3.44 million Yuan** - The company's ultimate controlling parties are natural persons Huang Chongshing and Lin Shengzhi, who indirectly hold company shares through Ye Chiu (Hong Kong) Co., Ltd. and directly hold some shares[418](index=418&type=chunk) Related Party Transactions (Jan-Jun 2025) | Related Party Transaction Content | Related Party | Current Period Amount (Yuan) | | :--- | :--- | :--- | | Acceptance of services: Transportation services | EVER PRECIOUS SDN BHD | 2,154,399.63 | | Lease of property (Lessor) | EVER PRECIOUS SDN BHD | 21,404.25 | | Lease of property and buildings (Lessee) | Yc Global,LLc | 480,301.19 | | Key management personnel compensation | - | 3,443,900.00 | - The company provided significant guarantees to subsidiaries, with the total guarantee balance for subsidiaries amounting to **5.245 billion Yuan** at the end of the reporting period, representing **115.95%** of the company's net assets[67](index=67&type=chunk) Unsettled Related Party Receivables and Payables (Period End) | Item Name | Related Party | Book Balance (Yuan) | | :--- | :--- | :--- | | Other Receivables | Yc Global, Llc | 28,634.40 | | Accounts Payable | EVER PRECIOUS SDN BHD | 206,970.86 | | Other Payables | Huang Chongshing | 157,407.16 | [Commitments and Contingencies](index=124&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) The company has contingent liabilities from debt guarantees provided to related parties, as well as outstanding financing and non-financing letters of guarantee, with no other significant contingent matters requiring disclosure as of the end of the reporting period - The company has contingent liabilities arising from debt guarantees provided to related parties; specific details are in the related party transactions section on related guarantees[434](index=434&type=chunk) - As of June 30, 2025, the company had outstanding financing letters of guarantee totaling **10 million US Dollars**, and non-financing letters of guarantee totaling **18.32 million Malaysian Ringgit** and **10.18 million Yuan**[435](index=435&type=chunk) - As of June 30, 2025, the company had no other significant continge

宸展光电（厦门）股份有限公司 2025 年半年度报告全文 宸展光电（厦门）股份有限公司 2025 年半年度报告 2025 年 8 月 1 宸展光电（厦门）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。 公司负责人蔡宗良、主管会计工作负责人徐可欣及会计机构负责人(会计 主管人员)徐可欣声明：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、业绩预测等前瞻性陈述内容，均不构成 本公司对投资者的实质承诺，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，敬请投资者注意投资风险。 公司目前不存在影响公司正常经营的重大风险。本报告第三节"管理层讨 论与分析"中，详细描述了公司经营中可能存在的风险，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 | | --- | | 第一节 | 重要提 ...

广东红墙新材料股份有限公司 2025 年半年度报告全文 广东红墙新材料股份有限公司 2025 年半年度报告 【2025 年 8 月】 1 广东红墙新材料股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司计划不派发现金红利，不送红股，不以公积金转增股本。 2 | | | 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。 公司负责人刘连军、主管会计工作负责人唐苑昆及会计机构负责人(会计 主管人员)唐苑昆声明：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，对可能面临的风险进行详细描述，敬请广大投资者留 意查阅。本报告涉及未来计划等前瞻性陈述，不构成公司对投资者的实质承 诺，请投资者及相关人士对此保持足够的风险认识，充分理解计划、预测与 承诺之间的差异，注意投资风险。 一、载有公司法定代表人、主管会计工作负责人、会计机构负责人签名并盖章的财务报表。 二、 ...

江苏锦鸡实业股份有限公司 2025 年半年度报告全文 江苏锦鸡实业股份有限公司 2025 年半年度报告 2025-069 二〇二五年八月 1 江苏锦鸡实业股份有限公司 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。 公司负责人赵卫国、主管会计工作负责人肖建及会计机构负责人(会计主 管人员)陈爱民声明：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经营计划、经营目标、业绩预测等方面前瞻性陈 述，并不构成本公司对任何投资者的实质承诺，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、目标、预测与承诺之间的差异。 公司在本报告第三节"管理层讨论与分析"之"十、公司面临的风险和 应对措施"部分，详细阐述了可能对公司核心竞争力、经营活动和未来发展 产生重大不利影响的风险因素，敬请广大投资者注意查阅。 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 | | 0 | ...

Part I Important Notice, Table of Contents, and Definitions [1.1 Important Notice](index=2&type=section&id=Item%201.1%20Important%20Notice) The company's board, directors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no plans for cash dividends, bonus shares, or capital increase from capital reserves - The company's board of directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, assuming legal responsibility[4](index=4&type=chunk) - The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital[5](index=5&type=chunk) [1.2 Table of Contents](index=3&type=section&id=Item%201.2%20Table%20of%20Contents) This section lists the detailed table of contents for the semi-annual report, providing quick navigation for investors - The report's table of contents clearly lists eight main chapters, covering important notices, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, and financial reports[7](index=7&type=chunk) [1.3 Directory of Reference Documents](index=4&type=section&id=Item%201.3%20Directory%20of%20Reference%20Documents) This section lists all publicly disclosed reference documents for the reporting period, ensuring transparency and accessibility of information - Reference documents include financial statements signed and sealed by the company's responsible person, chief accountant, and accounting department head[9](index=9&type=chunk) - Original copies of all company documents and announcements publicly disclosed on the CSRC-designated website during the reporting period are available for reference[10](index=10&type=chunk) [1.4 Definitions](index=5&type=section&id=Item%201.4%20Definitions) This section defines common terms and company-related entities used in the report, ensuring consistent understanding of the content - The report explicitly defines "the Company" and "Jinlihua Electric" as Jinlihua Electric Co., Ltd., and lists major subsidiaries and related parties[13](index=13&type=chunk) - The reporting period is defined as January 1, 2025, to June 30, 2025[13](index=13&type=chunk) Part II Company Profile and Key Financial Indicators [2.1 Company Profile](index=6&type=section&id=Item%202.1%20Company%20Profile) This section introduces basic information about Jinlihua Electric Co., Ltd., including stock ticker, code, listing exchange, and legal representative - The company's stock ticker is "Jinlihua Electric", stock code "300069", listed on the Shenzhen Stock Exchange[15](index=15&type=chunk) - The company's legal representative is Wang Jun[15](index=15&type=chunk) [2.2 Contact Persons and Information](index=6&type=section&id=Item%202.2%20Contact%20Persons%20and%20Information) This section provides contact information for the company's Board Secretary and Securities Affairs Representative, facilitating investor inquiries and communication - The Board Secretary is Ma Sheng, and the Securities Affairs Representative is Song Taorong, both reachable at **0579-82913366**[16](index=16&type=chunk) [2.3 Other Information](index=6&type=section&id=Item%202.3%20Other%20Information) The company's registered address, office address, website, email, information disclosure, and filing locations remained unchanged during the reporting period - The company's contact information, information disclosure and filing locations, and registration status remained unchanged during the reporting period[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [2.4 Key Accounting Data and Financial Indicators](index=7&type=section&id=Item%202.4%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's operating revenue and net profit attributable to shareholders both increased year-on-year, with significant improvement in net cash flow from operating activities and growth in total assets and net assets attributable to shareholders 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 93,659,136.01 | 86,252,017.24 | 8.59% | | Net Profit Attributable to Listed Company Shareholders | 6,231,818.88 | 5,628,336.32 | 10.72% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Gains/Losses) | 3,934,927.38 | 3,838,533.27 | 2.51% | | Net Cash Flow from Operating Activities | -183,135.02 | -14,189,266.06 | 98.71% | | Basic Earnings Per Share (Yuan/Share) | 0.0533 | 0.0481 | 10.81% | | Diluted Earnings Per Share (Yuan/Share) | 0.0533 | 0.0481 | 10.81% | | Weighted Average Return on Net Assets | 2.24% | 2.29% | -0.05% | | **End of Current Reporting Period** | **End of Prior Year** | **Change from Prior Year-End** | | | Total Assets | 599,408,738.19 | 583,105,009.92 | 2.80% | | Net Assets Attributable to Listed Company Shareholders | 281,352,663.65 | 275,120,844.77 | 2.27% | [2.5 Differences in Accounting Data under Domestic and International Accounting Standards](index=7&type=section&id=Item%202.5%20Differences%20in%20Accounting%20Data%20under%20Domestic%20and%20International%20Accounting%20Standards) The company's financial reports show no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards during the reporting period - The company's financial reports show no differences in net profit and net assets under domestic and international accounting standards[21](index=21&type=chunk)[22](index=22&type=chunk) [2.6 Non-Recurring Gains and Losses and Amounts](index=7&type=section&id=Item%202.6%20Non-Recurring%20Gains%20and%20Losses%20and%20Amounts) Non-recurring gains and losses totaled **2,296,891.50 yuan**, primarily from disposal of non-current assets, government grants, fair value changes of financial assets, and reversal of impairment provisions for receivables 2025 Semi-Annual Non-Recurring Gains and Losses and Amounts | Item | Amount (Yuan) | Explanation | | :--- | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 242,358.13 | Gains from disposal of fixed assets in current period | | Government Grants Included in Current Profit or Loss | 2,142,532.83 | Local government awards, subsidies, and cultural industry fund grants | | Gains/Losses from Changes in Fair Value of Financial Assets and Liabilities Held by Non-Financial Enterprises, and Disposal of Financial Assets and Liabilities | 70,952.84 | Gains from holding and disposing of bank wealth management products | | Reversal of Impairment Provisions for Receivables Subject to Separate Impairment Testing | 439,600.00 | Settlement payments for film and television investments for which bad debt provisions were individually made at the beginning of the period, with partial recovery in the current period | | Other Non-Operating Income and Expenses Apart from the Above | 38,324.65 | | | Less: Income Tax Impact | 303,689.21 | | | Impact on Minority Interests (After Tax) | 333,187.74 | | | **Total** | **2,296,891.50** | | Part III Management Discussion and Analysis [3.1 Principal Businesses During the Reporting Period](index=9&type=section&id=Item%203.1%20Principal%20Businesses%20During%20the%20Reporting%20Period) The company's main businesses include glass insulators and theatrical performances; glass insulator revenue grew due to UHV construction, while theatrical performance revenue declined due to project scheduling adjustments [3.1.1 Glass Insulator Business](index=9&type=section&id=Item%203.1.1%20Glass%20Insulator%20Business) The glass insulator business benefited from accelerated grid investment and UHV project construction, leading to revenue growth, despite industry gross margin pressure - The State Grid plans to construct "24 AC and 14 DC" UHV projects during the "14th Five-Year Plan" period, with a total investment of **380 billion yuan**, and total investment by both grids of approximately **3 trillion yuan**, indicating sustained high prosperity in grid investment[27](index=27&type=chunk) - From January to June 2025, cumulative national grid engineering investment reached **291.1 billion yuan**, a year-on-year increase of **14.6%**[28](index=28&type=chunk) - The company is one of the few domestic manufacturers with mature AC and DC UHV glass insulator production technology, enabling participation in public tenders by State Grid and Southern Power Grid[29](index=29&type=chunk) - During the reporting period, the company's glass insulator business achieved operating revenue of **78.26 million yuan**, a year-on-year increase of **19.28%**, primarily due to the gradual commissioning of UHV glass insulator capacity expansion projects[32](index=32&type=chunk) - Despite revenue growth, the overall gross margin of the industry showed a downward trend due to adjustments in supply and demand[32](index=32&type=chunk) [3.1.2 Theatrical Performance Business](index=10&type=section&id=Item%203.1.2%20Theatrical%20Performance%20Business) Despite an overall positive trend in the national performance market, the company's theatrical performance revenue decreased by **25.40%** due to project development and scheduling adjustments, with plans for innovative "drama-variety" works - In the first half of 2025, the national performance market showed a positive trend, with **160,500** theater performances, **5.40 billion yuan** in box office revenue, and **20.55 million** audience members[33](index=33&type=chunk) - The company's main business focuses on the production and presentation of stage plays, also involving drama investment and the design and development of drama derivatives[35](index=35&type=chunk) - During the reporting period, the company's theatrical performance business achieved operating revenue of **15.39 million yuan**, a year-on-year decrease of **25.40%**, mainly due to fewer performances resulting from project development and scheduling adjustments[38](index=38&type=chunk) - The company plans to launch an innovative "drama-variety" work, "Jiangnan Twelve Gatherings," in the second half of 2025, exploring new formats that integrate performance and variety shows[40](index=40&type=chunk) [3.2 Analysis of Core Competencies](index=12&type=section&id=Item%203.2%20Analysis%20of%20Core%20Competencies) The company's insulator business boasts advantages in technology, quality control, marketing, and talent, particularly in UHV glass insulator production and automation, while its theatrical performance business leverages professional teams, extensive resources, broad channels, high-spending audiences, international collaborations, and strong brand influence [3.2.1 Advantages in Insulator Business](index=12&type=section&id=Item%203.2.1%20Advantages%20in%20Insulator%20Business) The company holds multiple patents in glass insulators, is a leading UHV technology provider, and has enhanced production efficiency and quality through automation and a robust quality management system, supported by a comprehensive sales network - The company holds multiple design, utility model, and invention patents, making it one of the few domestic manufacturers with mature AC and DC UHV glass insulator production technology[41](index=41&type=chunk) - The company invested in an automated gluing production workshop and introduced European imported molding equipment, enhancing production line automation, efficiency, and qualification rates[41](index=41&type=chunk) - The company established a comprehensive ISO9001 quality management system and possesses a technical inspection center with full type test item detection capabilities[42](index=42&type=chunk) - The company has established sales channels across State Grid, Southern Power Grid, and their provincial subsidiaries, actively expanding into overseas markets[43](index=43&type=chunk) [3.2.2 Advantages in Theatrical and Film Operations](index=13&type=section&id=Item%203.2.2%20Advantages%20in%20Theatrical%20and%20Film%20Operations) Yanghua Times possesses an experienced management and production team, extensive partnerships with industry leaders, a nationwide distribution network, a loyal high-spending audience, international collaborations, and a strong "Yanghua Drama" brand - Yanghua Times' management team specializes in drama planning, production, and market promotion, possessing the ability to discover, judge, and produce high-quality works, having produced over **50** drama productions[46](index=46&type=chunk)[51](index=51&type=chunk) - The company established strategic partnerships with Poly Theatre Line and Damai.cn, building a nationwide network for promotion and ticket sales covering most major cities[48](index=48&type=chunk) - Yanghua Times' target audience primarily consists of highly educated and high-spending individuals concentrated in first-tier cities, demonstrating strong consumption capacity and willingness[49](index=49&type=chunk) - The company engages in deep collaborations with leading European art festivals, theaters, and artists, possessing international resource advantages[50](index=50&type=chunk) [3.3 Analysis of Principal Business](index=14&type=section&id=Item%203.3%20Analysis%20of%20Principal%20Business) Operating revenue increased by **8.59%** due to glass insulator business growth, while management and financial expenses rose significantly due to increased personnel, asset restructuring fees, and bank loan interest, alongside a substantial increase in R&D investment Key Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 93,659,136.01 | 86,252,017.24 | 8.59% | | | Operating Cost | 62,371,359.18 | 58,768,796.09 | 6.13% | | | Selling Expenses | 4,179,649.44 | 5,733,561.37 | -27.10% | | | Administrative Expenses | 17,277,251.39 | 12,789,581.69 | 35.09% | Increase in management personnel, higher salaries, payment of asset restructuring intermediary fees | | Financial Expenses | 2,263,203.00 | 773,000.01 | 192.78% | Increase in bank loan amount, interest expenses increased by approximately 1.2 million yuan year-on-year | | Income Tax Expense | 447,586.70 | -16,403.27 | 2,828.64% | Glass insulator operating entity offset prior losses, prepaid current income tax | | R&D Expenses | 4,009,685.00 | 2,792,645.03 | 43.58% | Increased R&D investment, material and fuel costs increased year-on-year | | Net Cash Flow from Operating Activities | -183,135.02 | -14,189,266.06 | 98.71% | Good sales collection, improved operating cash flow | | Net Cash Flow from Investing Activities | -56,161,473.70 | -19,060,608.76 | -194.65% | Payments for insulator expansion project, other engineering projects, land purchase, investment in associates | | Net Cash Flow from Financing Activities | 33,507,202.05 | 9,484,962.80 | 253.27% | Borrowed bank loans to supplement working capital | Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | Operating Revenue Year-on-Year Change | Operating Cost Year-on-Year Change | Gross Margin Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Glass Insulators | 78,264,737.73 | 51,892,827.01 | 33.70% | 19.28% | 19.91% | -0.35% | | Theatrical and Film | 15,394,398.28 | 10,478,532.17 | 31.93% | -25.40% | -32.37% | 7.01% | [3.4 Analysis of Non-Principal Business](index=15&type=section&id=Item%203.4%20Analysis%20of%20Non-Principal%20Business) Non-principal business income primarily includes investment income, fair value changes, non-operating income, other income, and credit impairment losses, with government grants and other income significantly contributing to total profit, though most non-recurring items are not sustainable Non-Principal Business Analysis | Item | Amount (Yuan) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 21,213.62 | 0.32% | Investment income from bank wealth management products | Yes | | Gains/Losses from Fair Value Changes | 31,219.51 | 0.47% | Gains/losses from fair value changes of bank wealth management products | Yes | | Non-Operating Income | 88,684.64 | 1.32% | Income from glass insulator scrap | No | | Other Income | 2,143,580.04 | 32.01% | Local government awards, subsidies, and cultural industry fund grants | No | | Credit Impairment Losses | 1,445,531.14 | 21.59% | Decrease in accounts receivable and other receivables balances, decrease in bad debt provisions | No | [3.5 Analysis of Assets and Liabilities](index=15&type=section&id=Item%203.5%20Analysis%20of%20Assets%20and%20Liabilities) Total assets and net assets attributable to shareholders increased, with a significant shift in asset structure as fixed assets rose sharply due to the completion and transfer of the UHV glass insulator expansion project from construction in progress 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 in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 62,844,359.12 | 10.48% | 100,817,217.33 | 17.29% | -6.81% | | | Inventories | 85,010,485.09 | 14.18% | 60,800,636.04 | 10.43% | 3.75% | | | Long-Term Equity Investments | 9,981,480.29 | 1.67% | 0.00 | 0.00% | 1.67% | | | Fixed Assets | 224,536,237.30 | 37.46% | 122,341,479.72 | 20.98% | 16.48% | Construction in progress for the 3 million UHV glass insulator expansion project completed and transferred to fixed assets | | Construction in Progress | 38,377,914.26 | 6.40% | 130,334,348.26 | 22.35% | -15.95% | Construction in progress for the 3 million UHV glass insulator expansion project completed and transferred to fixed assets | | Short-Term Borrowings | 47,571,560.54 | 7.94% | 21,452,708.91 | 3.68% | 4.26% | | | Contract Liabilities | 20,786,957.56 | 3.47% | 11,294,822.43 | 1.94% | 1.53% | | | Long-Term Borrowings | 107,620,000.00 | 17.95% | 97,800,000.00 | 16.77% | 1.18% | | Assets and Liabilities Measured at Fair Value | Item | Amount at Period End (Yuan) | Amount at Period Beginning (Yuan) | | :--- | :--- | :--- | | Trading Financial Assets | 3,372,062.03 | 8,340,842.52 | | Other Non-Current Financial Assets | 24,120,000.00 | 24,120,000.00 | | **Total** | **27,492,062.03** | **32,460,842.52** | Asset Rights Restricted at Period End | Item | Book Balance at Period End (Yuan) | Book Value at Period End (Yuan) | Reason for Restriction | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 25,130,515.86 | 25,130,515.86 | Unexpired letter of guarantee deposits, bank acceptance bill deposits, frozen funds | | Fixed Assets | 67,200,428.56 | 22,014,887.27 | Pledged as collateral for bank financing | | Intangible Assets | 11,907,571.97 | 7,305,732.84 | Pledged as collateral for bank financing | | Construction in Progress | 22,345,526.53 | 22,345,526.53 | Pledged as collateral for bank financing | [3.6 Analysis of Investment Status](index=17&type=section&id=Item%203.6%20Analysis%20of%20Investment%20Status) The company had no significant equity or non-equity investments during the reporting period, holding financial assets measured at fair value, primarily bank wealth management products and other non-current financial assets, with **3 million yuan** in outstanding entrusted wealth management Financial Assets Measured at Fair Value | Asset Category | Amount at Period End (Yuan) | Source of Funds | | :--- | :--- | :--- | | Other (Bank Wealth Management Products) | 3,372,062.03 | Idle自有资金 | | Other (Equity Investment) | 24,120,000.00 | Idle自有资金 | | **Total** | **27,492,062.03** | | Overview of Entrusted Wealth Management During the Reporting Period | Specific Type | Amount of Entrusted Wealth Management (10,000 Yuan) | Unexpired Balance (10,000 Yuan) | | :--- | :--- | :--- | | Bank Wealth Management Products | 1,400 | 300 | - The company had no use of raised funds, derivative investments, or entrusted loans during the reporting period[69](index=69&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) [3.7 Significant Asset and Equity Disposals](index=18&type=section&id=Item%203.7%20Significant%20Asset%20and%20Equity%20Disposals) The company did not undertake any significant asset or equity disposals during the reporting period - The company did not dispose of significant assets during the reporting period[74](index=74&type=chunk) - The company did not dispose of significant equity during the reporting period[75](index=75&type=chunk) [3.8 Analysis of Major Holding and Participating Companies](index=18&type=section&id=Item%203.8%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) Major subsidiaries include Zhejiang Jinlihua Electric Equipment Co., Ltd. (significant net profit) and Beijing Yanghua Times Culture Development Co., Ltd. (lower net profit); a new wholly-owned subsidiary, Shanxi Jinlihua Smart Manufacturing Technology Co., Ltd., was established to invest in a UHV glass insulator production line Major Subsidiaries and Associates with Net Profit Impact Exceeding 10% of the Company's Net Profit | Company Name | Company Type | Principal Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhejiang Jinlihua Electric Equipment Co., Ltd. | Subsidiary | R&D, production, and sales of electrical equipment and components | 100,000,000 | 494,816,077.13 | 209,230,083.62 | 78,264,737.73 | 12,550,268.51 | 12,373,815.38 | | Beijing Yanghua Times Culture Development Co., Ltd. | Subsidiary | Drama investment, production, and performance | 1,000,000 | 47,578,124.08 | 23,661,240.61 | 15,394,398.28 | 122,638.36 | 35,213.98 | - The company established a new wholly-owned subsidiary, Shanxi Jinlihua Smart Manufacturing Technology Co., Ltd., planning to invest **186 million yuan** in a production line for **3 million** UHV glass insulators annually[76](index=76&type=chunk) [3.9 Structured Entities Controlled by the Company](index=19&type=section&id=Item%203.9%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[78](index=78&type=chunk) [3.10 Risks Faced by the Company and Countermeasures](index=19&type=section&id=Item%203.10%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces risks from downstream industry fluctuations, market competition, high accounts receivable, and project construction uncertainties, which it addresses through technological innovation, market expansion, cost control, receivable management, and dedicated project teams - The insulator business is susceptible to changes in power transmission line construction investment, which the company addresses through technological upgrades, quality assurance, and overseas market expansion[78](index=78&type=chunk) - The insulator market is highly competitive, and the company strengthens its market position by monitoring industry trends, increasing R&D, and controlling costs[79](index=79&type=chunk) - Significant accounts receivable, primarily concentrated in the power grid industry, are managed through reasonable systems and enhanced collection efforts to mitigate risks[80](index=80&type=chunk) - Fixed asset investment projects have long construction cycles and face uncertainties from administrative approvals and policy adjustments, which the company addresses by forming a dedicated engineering team to track progress and facilitate approvals[82](index=82&type=chunk) [3.11 Registration Form for Investor Relations Activities During the Reporting Period](index=20&type=section&id=Item%203.11%20Registration%20Form%20for%20Investor%20Relations%20Activities%20During%20the%20Reporting%20Period) During the reporting period, the company held online investor communication activities via Panorama Network's "Investor Relations Interactive Platform" to discuss the 2024 annual report and future development strategy - The company conducted online investor communication activities via Panorama Network's "Investor Relations Interactive Platform" on May 16 and May 20, 2025[83](index=83&type=chunk) - The discussions primarily focused on the 2024 annual report content and the company's future development strategy[83](index=83&type=chunk) [3.12 Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=20&type=section&id=Item%203.12%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[84](index=84&type=chunk) - The company did not disclose a valuation enhancement plan[84](index=84&type=chunk) [3.13 Implementation of "Dual Improvement in Quality and Returns" Action Plan](index=20&type=section&id=Item%203.13%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[84](index=84&type=chunk) Part IV Corporate Governance, Environment, and Society [4.1 Changes in Directors, Supervisors, and Senior Management](index=21&type=section&id=Item%204.1%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) Independent director Ruan Jiangjun resigned on June 9, 2025, due to personal reasons - Independent director Ruan Jiangjun resigned on June 9, 2025, due to personal reasons[86](index=86&type=chunk) [4.2 Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period](index=21&type=section&id=Item%204.2%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20During%20the%20Reporting%20Period) The company plans no cash dividends, bonus shares, or capital increase from capital reserves for the semi-annual period - The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital for the semi-annual period[87](index=87&type=chunk) [4.3 Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=21&type=section&id=Item%204.3%20Implementation%20of%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[88](index=88&type=chunk) [4.4 Environmental Information Disclosure](index=22&type=section&id=Item%204.4%20Environmental%20Information%20Disclosure) Neither the listed company nor its major subsidiaries are included in the list of enterprises required to disclose environmental information by law - The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[89](index=89&type=chunk) [4.5 Social Responsibility](index=22&type=section&id=Item%204.5%20Social%20Responsibility) The company actively fulfills its social responsibilities by managing compliance, product quality, employee development, safety production, and environmental protection, aiming for coordinated economic and social benefits [4.5.1 Protection of Shareholder Rights and Interests](index=22&type=section&id=Item%204.5.1%20Protection%20of%20Shareholder%20Rights%20and%20Interests) The company adheres to laws and regulations, improves corporate governance and internal control, operates compliantly, actively discloses information, and formulates reasonable profit distribution plans to protect shareholder interests - The company strictly adheres to laws and regulations such as the "Company Law" and "Securities Law," improving its corporate governance structure and internal control system[90](index=90&type=chunk) - The company actively fulfills its information disclosure obligations and formulates reasonable profit distribution plans to share operating results with shareholders[90](index=90&type=chunk) [4.5.2 Protection of Employee Rights and Interests](index=22&type=section&id=Item%204.5.2%20Protection%20of%20Employee%20Rights%20and%20Interests) Adhering to a "people-oriented" approach, the company safeguards employee rights through robust labor protection, compensation, and welfare systems, a comfortable work environment, recreational activities, training, and occupational health measures - The company establishes and improves labor protection, compensation and welfare systems, and health and safety measures to protect employees' legitimate rights and interests[91](index=91&type=chunk) - The company creates a comfortable working environment for employees, organizes recreational activities, promotes legal regulations, and arranges occupational health examinations and health monitoring[92](index=92&type=chunk) [4.5.3 Protection of Supplier, Customer, and Consumer Rights](index=22&type=section&id=Item%204.5.3%20Protection%20of%20Supplier%2C%20Customer%2C%20and%20Consumer%20Rights) The company upholds a philosophy of meeting product and customer needs through advanced technology and swift service, strictly managing suppliers, continuously enhancing R&D and product quality, and prioritizing environmental protection and occupational health and safety to foster stable long-term partnerships - The company has established a comprehensive supplier management system and maintains good strategic cooperative relationships with its suppliers[93](index=93&type=chunk) - The company is committed to enhancing R&D innovation capabilities and product quality, providing cost-effective products and services to customers, and building long-term stable cooperative relationships[93](index=93&type=chunk) - The company prioritizes environmental protection and occupational health and safety in its production and operations, complies with national laws and regulations, and actively promotes energy conservation and emission reduction[93](index=93&type=chunk) [4.5.4 Environmental Protection and Sustainable Development](index=22&type=section&id=Item%204.5.4%20Environmental%20Protection%20and%20Sustainable%20Development) The company actively pursues a low-carbon, environmentally friendly, and ecological technology enterprise path by developing green products through technological innovation, eliminating outdated equipment through process innovation, using clean natural gas, and enhancing automated office practices to reduce carbon emissions and resource consumption - The company develops new green products through technological innovation, adhering to low-carbon and sustainable principles throughout the product lifecycle[94](index=94&type=chunk) - The company adopts new low-energy consumption, high-tech equipment, reducing traditional hydropower energy consumption and carbon emission indicators[95](index=95&type=chunk) - The company uses clean natural gas as its primary raw material, effectively reducing overall carbon emission indicators[95](index=95&type=chunk) - The company enhances its automated office level, achieving paperless operations and reducing consumption of paper, ink, and electricity[95](index=95&type=chunk) Part V Significant Matters [5.1 Commitments Fulfilled and Overdue Unfulfilled by Controlling Shareholder, Actual Controller, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period](index=24&type=section&id=Item%205.1%20Commitments%20Fulfilled%20and%20Overdue%20Unfulfilled%20by%20Controlling%20Shareholder%2C%20Actual%20Controller%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20During%20and%20as%20of%20the%20End%20of%20the%20Reporting%20Period) During the reporting period, the controlling shareholder Shanxi Red Sun Tourism Development Co., Ltd. and its related parties, along with the actual controller Zhao Jian, fulfilled their commitments regarding independence, avoiding competition, and regulating related-party transactions, with no overdue unfulfilled commitments - Controlling shareholder Shanxi Red Sun Tourism Development Co., Ltd. committed to ensuring the independence of Jinlihua Electric's personnel, assets, finance, organization, and business[97](index=97&type=chunk) - Controlling shareholder Shanxi Red Sun Tourism Development Co., Ltd. committed to avoiding horizontal competition and offering business opportunities to Jinlihua Electric[97](index=97&type=chunk) - Controlling shareholder Shanxi Red Sun Tourism Development Co., Ltd. committed to regulating related-party transactions with the listed company, adhering to principles of openness, fairness, and impartiality in the market[98](index=98&type=chunk) - The company's controlling shareholder, actual controller Zhao Jian, and others committed to avoiding horizontal competition with the company[98](index=98&type=chunk)[99](index=99&type=chunk) - As of the end of the reporting period, all committed parties complied with the above commitments, with no violations found[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) [5.2 Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties](index=27&type=section&id=Item%205.2%20Non-Operating%20Funds%20Occupied%20by%20Controlling%20Shareholder%20and%20Other%20Related%20Parties) The company had no non-operating funds occupied by controlling shareholders or other related parties during the reporting period - The company had no non-operating funds occupied by controlling shareholders or other related parties during the reporting period[101](index=101&type=chunk) [5.3 Irregular External Guarantees](index=27&type=section&id=Item%205.3%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[102](index=102&type=chunk) [5.4 Appointment and Dismissal of Accounting Firms](index=27&type=section&id=Item%205.4%20Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[103](index=103&type=chunk) [5.5 Board of Directors, Supervisory Board, and Audit Committee's Explanation on "Non-Standard Audit Report" for the Current Period](index=27&type=section&id=Item%205.5%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20and%20Audit%20Committee%27s%20Explanation%20on%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Current%20Period) As the company's financial report for this period was unaudited, there is no explanation regarding a non-standard audit report - Not applicable[104](index=104&type=chunk) [5.6 Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year](index=27&type=section&id=Item%205.6%20Board%20of%20Directors%27%20Explanation%20on%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Previous%20Year) As the company's financial report for this period was unaudited, there is no explanation regarding a non-standard audit report for the previous year - Not applicable[104](index=104&type=chunk) [5.7 Bankruptcy and Reorganization Matters](index=27&type=section&id=Item%205.7%20Bankruptcy%20and%20Reorganization%20Matters) The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[104](index=104&type=chunk) [5.8 Litigation Matters](index=27&type=section&id=Item%205.8%20Litigation%20Matters) The company had no significant litigation or arbitration matters during the reporting period - The company had no significant litigation or arbitration matters during the reporting period[105](index=105&type=chunk) [5.9 Penalties and Rectification](index=27&type=section&id=Item%205.9%20Penalties%20and%20Rectification) The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[106](index=106&type=chunk) [5.10 Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=28&type=section&id=Item%205.10%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) The company did not disclose the integrity status of itself, its controlling shareholder, or its actual controller during the reporting period - Not applicable[107](index=107&type=chunk) [5.11 Significant Related-Party Transactions](index=28&type=section&id=Item%205.11%20Significant%20Related-Party%20Transactions) The company engaged in daily related-party transactions, including director services, equipment procurement, and property leasing, all within approved limits, and co-invested in Beijing Shierhuan Culture Development Co., Ltd. with related party Mr. Wang Keran Related-Party Transactions Related to Daily Operations | Related Party | Related-Party Transaction Content | Related-Party Transaction Amount (10,000 Yuan) | Approved Transaction Limit (10,000 Yuan) | Exceeded Approved Limit | | :--- | :--- | :--- | :--- | :--- | | Linying County Weiwen Marketing Planning Studio (Individual Business) | Director service fees | 25.44 | 240 | No | | Beijing Puneng Century Technology Co., Ltd. | Equipment procurement | 195 | 650 | No | | Wang Keran | Property operating lease | 7.2 | 15 | No | - The company and related party Mr. Wang Keran jointly increased capital in Beijing Shierhuan Culture Development Co., Ltd., with Yanghua Times investing **10 million yuan** and Mr. Wang Keran investing **11 million yuan**, making Beijing Shierhuan an associate of the group[110](index=110&type=chunk)[118](index=118&type=chunk) - The company had no related-party transactions for asset or equity acquisition/disposal, related-party creditor/debtor relationships, or dealings with related financial companies during the reporting period[109](index=109&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk) [5.12 Significant Contracts and Their Performance](index=29&type=section&id=Item%205.12%20Significant%20Contracts%20and%20Their%20Performance) The company had no entrustment or contracting arrangements but entered into multiple property lease contracts for offices and dormitories, with no leases generating over **10%** of total profit, nor any significant guarantees or other major contracts - The company had no entrustment or contracting arrangements during the reporting period[116](index=116&type=chunk)[117](index=117&type=chunk) - The company leased properties in Changzhi City, Shanxi Province, Chaoyang District, Beijing, and Langfang City, Hebei Province, for office space, employee dormitories, and warehouses[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) - The company had no lease projects that generated over **10%** of total profit during the reporting period[120](index=120&type=chunk) - The company had no significant guarantees during the reporting period[121](index=121&type=chunk) - The company had no significant contracts related to daily operations or other major contracts during the reporting period[123](index=123&type=chunk)[124](index=124&type=chunk) [5.13 Explanation of Other Significant Matters](index=31&type=section&id=Item%205.13%20Explanation%20of%20Other%20Significant%20Matters) The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[125](index=125&type=chunk) [5.14 Significant Matters of Company Subsidiaries](index=31&type=section&id=Item%205.14%20Significant%20Matters%20of%20Company%20Subsidiaries) The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[126](index=126&type=chunk) Part VI Share Changes and Shareholder Information [6.1 Share Changes](index=32&type=section&id=Item%206.1%20Share%20Changes) The company's total share capital and share structure remained unchanged, with no changes in restricted or unrestricted shares, share repurchases, or impact on financial indicators during the reporting period Share Changes | Item | Number Before Change (Shares) | Proportion Before Change | Increase/Decrease in Current Change (Shares) | Number After Change (Shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 0 | 0.00% | 0 | 0 | 0.00% | | II. Unrestricted Shares | 117,000,000 | 100.00% | 0 | 117,000,000 | 100.00% | | **III. Total Shares** | **117,000,000** | **100.00%** | **0** | **117,000,000** | **100.00%** | - During the reporting period, the reasons for share changes, approval status, transfer status, progress of share repurchases, and impact on financial indicators are all not applicable[129](index=129&type=chunk) [6.2 Securities Issuance and Listing](index=33&type=section&id=Item%206.2%20Securities%20Issuance%20and%20Listing) The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[130](index=130&type=chunk) [6.3 Number of Shareholders and Shareholding](index=33&type=section&id=Item%206.3%20Number%20of%20Shareholders%20and%20Shareholding) As of the end of the reporting period, the company had **15,855** common shareholders, with Shanxi Red Sun Tourism Development Co., Ltd. as the largest shareholder (**15.02%**), and Shanxi Red Sun, its wholly-owned subsidiary Jiuzhou Commercial, and Zhao Jian acting in concert - As of the end of the reporting period, the total number of common shareholders was **15,855**[130](index=130&type=chunk) Shareholding of Shareholders with Over 5% or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period End (Shares) | Change in Shares During Reporting Period (Shares) | Number of Unrestricted Shares Held (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Shanxi Red Sun Tourism Development Co., Ltd. | Domestic Non-State-Owned Legal Person | 15.02% | 17,570,818.00 | 0 | 17,570,818.00 | | Beijing Baize Changrui Enterprise Management Center (Limited Partnership) | Domestic Non-State-Owned Legal Person | 14.18% | 16,590,100.00 | 0 | 16,590,100.00 | | Zhao Jian | Domestic Natural Person | 8.02% | 9,381,619.00 | 0 | 9,381,619.00 | | Changzhi Hong Jiuzhou Commercial Co., Ltd. | Domestic Non-State-Owned Legal Person | 6.00% | 7,020,000.00 | 0 | 7,020,000.00 | - Jiuzhou Commercial is a **100%** wholly-owned subsidiary of Shanxi Red Sun, and the aforementioned shareholders and Zhao Jian are parties acting in concert[131](index=131&type=chunk) - Mr. Zhao Jian entrusted the voting rights of his **9,381,619** shares to Shanxi Red Sun[131](index=131&type=chunk) [6.4 Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=35&type=section&id=Item%206.4%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[133](index=133&type=chunk) [6.5 Changes in Controlling Shareholder or Actual Controller](index=35&type=section&id=Item%206.5%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[134](index=134&type=chunk) - The company's actual controller remained unchanged during the reporting period[134](index=134&type=chunk) [6.6 Preferred Shares Information](index=36&type=section&id=Item%206.6%20Preferred%20Shares%20Information) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[135](index=135&type=chunk) Part VII Bond-Related Information [7.1 Bond-Related Information](index=37&type=section&id=Item%207.1%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[137](index=137&type=chunk) Part VIII Financial Report [8.1 Audit Report](index=38&type=section&id=Item%208.1%20Audit%20Report) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[139](index=139&type=chunk) [8.2 Financial Statements](index=38&type=section&id=Item%208.2%20Financial%20Statements) This section presents the company's 2025 semi-annual consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, providing a comprehensive overview of its financial position, operating results, and cash flows [8.2.1 Consolidated Balance Sheet](index=38&type=section&id=Item%208.2.1%20Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's consolidated total assets were **599.41 million yuan**, a **2.80%** increase from the beginning of the period, with total liabilities of **306.46 million yuan** and total owners' equity of **292.95 million yuan** Consolidated Balance Sheet Key Data | Item | Amount at Period End (Yuan) | Amount at Period Beginning (Yuan) | | :--- | :--- | :--- | | Total Assets | 599,408,738.19 | 583,105,009.92 | | Total Current Assets | 247,987,906.57 | 272,304,177.66 | | Total Non-Current Assets | 351,420,831.62 | 310,800,832.26 | | Total Liabilities | 306,462,066.64 | 296,407,412.10 | | Total Owners' Equity | 292,946,671.55 | 286,697,597.82 | [8.2.2 Parent Company Balance Sheet](index=40&type=section&id=Item%208.2.2%20Parent%20Company%20Balance%20Sheet) As of June 30, 2025, the parent company's total assets were **236.42 million yuan**, a slight decrease from the beginning of the period, with total liabilities of **2.70 million yuan** and total owners' equity of **233.72 million yuan** Parent Company Balance Sheet Key Data | Item | Amount at Period End (Yuan) | Amount at Period Beginning (Yuan) | | :--- | :--- | :--- | | Total Assets | 236,420,947.97 | 240,396,443.93 | | Total Current Assets | 47,582,525.27 | 55,047,578.86 | | Total Non-Current Assets | 188,838,422.70 | 185,348,865.07 | | Total Liabilities | 2,701,774.34 | 1,513,919.23 | | Total Owners' Equity | 233,719,173.63 | 238,882,524.70 | [8.2.3 Consolidated Income Statement](index=42&type=section&id=Item%208.2.3%20Consolidated%20Income%20Statement) For the first half of 2025, the company achieved total operating revenue of **93.66 million yuan**, an **8.59%** year-on-year increase, with net profit of **6.25 million yuan** and net profit attributable to parent company shareholders of **6.23 million yuan** Consolidated Income Statement Key Data | Item | 2025 Semi-Annual (Yuan) | 2024 Semi-Annual (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 93,659,136.01 | 86,252,017.24 | | Total Operating Costs | 90,884,702.67 | 81,877,072.75 | | Operating Profit | 6,658,335.78 | 5,764,622.25 | | Total Profit | 6,696,660.43 | 6,011,875.36 | | Net Profit | 6,249,073.73 | 6,028,278.63 | | Net Profit Attributable to Parent Company Shareholders | 6,231,818.88 | 5,628,336.32 | | Basic Earnings Per Share (Yuan/Share) | 0.0533 | 0.0481 | [8.2.4 Parent Company Income Statement](index=44&type=section&id=Item%208.2.4%20Parent%20Company%20Income%20Statement) For the first half of 2025, the parent company's operating revenue was **0.14 million yuan**, a significant year-on-year decrease, resulting in a net loss of **5.16 million yuan**, an expanded loss compared to the prior year Parent Company Income Statement Key Data | Item | 2025 Semi-Annual (Yuan) | 2024 Semi-Annual (Yuan) | | :--- | :--- | :--- | | Operating Revenue | 140,998.23 | 6,389,742.15 | | Operating Profit | -5,041,008.40 | -2,894,279.68 | | Total Profit | -5,043,516.66 | -2,891,375.68 | | Net Profit | -5,163,351.07 | -2,891,375.68 | [8.2.5 Consolidated Cash Flow Statement](index=46&type=section&id=Item%208.2.5%20Consolidated%20Cash%20Flow%20Statement) For the first half of 2025, net cash flow from operating activities was **-0.18 million yuan**, a significant improvement year-on-year, while net cash flow from investing activities was **-56.16 million yuan**, and net cash flow from financing activities was **33.51 million yuan** Consolidated Cash Flow Statement Key Data | Item | 2025 Semi-Annual (Yuan) | 2024 Semi-Annual (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -183,135.02 | -14,189,266.06 | | Net Cash Flow from Investing Activities | -56,161,473.70 | -19,060,608.76 | | Net Cash Flow from Financing Activities | 33,507,202.05 | 9,484,962.80 | | Net Increase in Cash and Cash Equivalents | -22,817,278.38 | -23,737,882.47 | [8.2.6 Parent Company Cash Flow Statement](index=47&type=section&id=Item%208.2.6%20Parent%20Company%20Cash%20Flow%20Statement) For the first half of 2025, the parent company's net cash flow from operating activities was **-11.82 million yuan**, an improvement year-on-year, with net cash flow from investing activities at **-1.90 million yuan** and net cash flow from financing activities at **0** Parent Company Cash Flow Statement Key Data | Item | 2025 Semi-Annual (Yuan) | 2024 Semi-Annual (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -11,817,919.60 | -27,906,682.06 | | Net Cash Flow from Investing Activities | -1,900,000.00 | -680,000.00 | | Net Cash Flow from Financing Activities | 0.00 | 0.00 | | Net Increase in Cash and Cash Equivalents | -13,717,919.60 | -28,586,682.06 | [8.2.7 Consolidated Statement of Changes in Owners' Equity](index=48&type=section&id=Item%208.2.7%20Consolidated%20Statement%20of%20Changes%20in%20Owners%20Equity) For the first half of 2025, consolidated owners' equity increased by **6.25 million yuan**, primarily due to an increase in comprehensive income, with owners' equity attributable to the parent company increasing by **6.23 million yuan** Consolidated Statement of Changes in Owners' Equity Key Data | Item | Amount at Period End (Yuan) | Amount at Period Beginning (Yuan) | | :--- | :--- | :--- | | Total Owners' Equity Attributable to Parent Company | 281,352,663.65 | 275,120,844.77 | | Minority Interests | 11,594,007.90 | 11,576,753.05 | | **Total Owners' Equity** | **292,946,671.55** | **286,697,597.82** | - Total comprehensive income for the current period was **6,249,073.73 yuan**, of which **6,231,818.88 yuan** was attributable to owners of the parent company[162](index=162&type=chunk) [8.2.8 Parent Company Statement of Changes in Owners' Equity](index=52&type=section&id=Item%208.2.8%20Parent%20Company%20Statement%20of%20Changes%20in%20Owners%20Equity) For the first half of 2025, parent company owners' equity decreased by **5.16 million yuan**, primarily due to a reduction in undistributed profits resulting from net loss Parent Company Statement of Changes in Owners' Equity Key Data | Item | Amount at Period End (Yuan) | Amount at Period Beginning (Yuan) | | :--- | :--- | :--- | | Share Capital | 117,000,000.00 | 117,000,000.00 | | Capital Reserve | 274,480,147.59 | 274,480,147.59 | | Undistributed Profits | -177,052,987.84 | -171,889,636.77 | | **Total Owners' Equity** | **233,719,173.63** | **238,882,524.70** | - Total comprehensive income for the current period was **-5,163,351.07 yuan**[167](index=167&type=chunk) - Financial statements include consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity[140](index=140&type=chunk)[144](index=144&type=chunk)[148](index=148&type=chunk)[152](index=152&type=chunk)[156](index=156&type=chunk)[158](index=158&type=chunk)[161](index=161&type=chunk)[166](index=166&type=chunk) [8.3 Company Basic Information](index=55&type=section&id=Item%208.3%20Company%20Basic%20Information) Jinlihua Electric Co., Ltd., established in 2003 and listed in 2010 with a registered capital of **117 million yuan**, primarily engages in insulator product sales and cultural media activities, including broadcasting, television program production, and theatrical/film production - The company was registered and established in April 2003 and listed on the Shenzhen Stock Exchange on April 21, 2010[173](index=173&type=chunk) - As of June 30, 2025, the company's total issued share capital was **117 million shares**, with a registered capital of **117 million yuan**[173](index=173&type=chunk) - The company's main businesses include insulator product sales and the cultural media industry (broadcasting and television program production, stage play, and other film and television production and performance)[173](index=173&type=chunk) [8.4 Basis of Financial Statement Preparation](index=55&type=section&id=Item%208.4%20Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared in accordance with the Accounting Standards for Business Enterprises and relevant CSRC regulations, presented on a going concern basis, with no significant doubts about its ability to continue as a going concern - The financial statements are prepared in accordance with the "Accounting Standards for Business Enterprises" and the CSRC's "Information Disclosure Rules for Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports (Revised 2023)"[175](index=175&type=chunk) - The company evaluated its ability to continue as a going concern for 12 months from the end of the reporting period and found no significant doubts[176](index=176&type=chunk) [8.5 Significant Accounting Policies and Estimates](index=55&type=section&id=Item%208.5%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's specific accounting policies and estimates for financial instruments, inventories, long-term equity investments, fixed assets, construction in progress, intangible assets, long-term deferred expenses, employee benefits, provisions, revenue recognition, government grants, deferred tax assets/liabilities, and leases, ensuring transparency and comparability of financial reporting - The company determines specific accounting policies and estimates based on its production and operation characteristics, primarily reflected in the provision for expected credit losses on receivables, inventory valuation, amortization of drama creation costs, and revenue recognition[178](index=178&type=chunk) - The financial statements comply with the requirements of the Accounting Standards for Business Enterprises, accurately and completely reflecting the company's financial position, operating results, and cash flows[179](index=179&type=chunk) - The company uses RMB as its functional currency, and its accounting period is from January 1 to December 31 of the Gregorian calendar[180](index=180&type=chunk)[181](index=181&type=chunk) - The company details various materiality thresholds, such as individually impaired accounts receivable exceeding **1 million yuan**[182](index=182&type=chunk) - The company provides detailed explanations of its classification and measurement methods for financial instruments, measurement of expected credit losses, and categories and criteria for impairment provisions based on credit risk characteristics[193](index=193&type=chunk)[201](index=201&type=chunk)[205](index=205&type=chunk) - Inventory valuation methods for the traditional manufacturing sector use the weighted average method at month-end, while for the cultural industry sector, drama performance costs are recognized as operating costs upon completion of performances[226](index=226&type=chunk) - The company's revenue recognition principle is to recognize revenue when the customer obtains control of the related goods or services, with specific recognition methods for different business types (sale of goods, stage play performances, film and television investment and production)[260](index=260&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk) [8.6 Taxation](index=74&type=section&id=Item%208.6%20Taxation) The company's main taxes include VAT, urban maintenance and construction tax, and corporate income tax, benefiting from high-tech enterprise and small-profit enterprise income tax incentives, as well as "exemption, offset, and refund" policies for export goods Major Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales of goods, provision of services | 13%, 6%, 3% | | Urban Maintenance and Construction Tax | Amount of turnover tax actually paid | 5%, 7% | | Corporate Income Tax | Taxable income | 15%, 20%, 25% | - Zhejiang Jinlihua Electric Equipment Co., Ltd. enjoys a **15%** corporate income tax rate as a high-tech enterprise[283](index=283&type=chunk)[284](index=284&type=chunk) - Shanxi Jinlihua Smart Manufacturing Technology Co., Ltd., Beijing Jinlihua Cultural Investment Co., Ltd., and Shanghai Hejin Cultural Communication Co., Ltd. qualify as small-profit enterprises, enjoying a **20%** corporate income tax rate[283](index=283&type=chunk)[284](index=284&type=chunk) - The company's main products have an export tax refund rate of **13%**[285](index=285&type=chunk) [8.7 Notes to Consolidated Financial Statement Items](index=75&type=section&id=Item%208.7%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes for each major item in the consolidated financial statements, covering assets, liabilities, equity, income, expenses, and cash flows, offering comprehensive insights into the company's financial performance and position - Cash and cash equivalents at period-end totaled **62.84 million yuan**, of which **25.13 million yuan** was restricted[286](index=286&type=chunk) - Fixed assets had a book value of **225 million yuan** at period-end, a significant increase from the beginning of the period, primarily due to the transfer of construction in progress[333](index=333&type=chunk)[336](index=336&type=chunk) - Construction in progress at period-end was **38.38 million yuan**, a significant decrease from the beginning of the period, mainly due to the completion and transfer of the **3 million** UHV glass insulator expansion project to fixed assets[340](index=340&type=chunk)[342](index=342&type=chunk)[343](index=343&type=chunk) - Goodwill's original book value and impairment provision remained unchanged at **71.58 million yuan** at period-end[352](index=352&type=chunk)[354](index=354&type=chunk) - Deferred income at period-end was **16.14 million yuan**, primarily government grants, with **7.72 million yuan** added in the current period[396](index=396&type=chunk)[397](index=397&type=chunk) - Undistributed profits at period-end were **-115 million yuan**, indicating a reduced loss compared to the beginning of the period[408](index=408&type=chunk) - Operating revenue and operating cost breakdown shows glass insulator business revenue of **76.98 million yuan** and theatrical performance business revenue of **14.91 million yuan**[411](index=411&type=chunk) - R&D expenses incurred in the current period amounted to **4.01 million yuan**, a year-on-year increase of **43.58%**[419](index=419&type=chunk) - Credit impairment losses for the current period were **1.45 million yuan**, compared to **-1.14 million yuan** in the prior period, primarily due to bad debt losses on accounts receivable and prepayments[429](index=429&type=chunk) [8.8 Research and Development Expenses](index=103&type=section&id=Item%208.8%20Research%20and%20Development%20Expenses) Total R&D expenses for the reporting period were **4.01 million yuan**, all expensed, primarily comprising material consumption and employee compensation, representing a **43.58%** increase year-on-year R&D Expenses | Item | Amount Incurred in Current Period (Yuan) | Amount Incurred in Prior Period (Yuan) | | :--- | :--- | :--- | | Material Consumption Expenses | 2,028,354.71 | 1,406,277.15 | | Employee Compensation | 1,690,911.73 | 1,122,414.91 | | Depreciation and Amortization | 290,418.56 | 263,952.97 | | **Total** | **4,009,685.00** | **2,792,645.03** | | Of which: Expensed R&D Expenses | 4,009,685.00 | 2,792,645.03 | [8.9 Changes in Consolidation Scope](index=104&type=section&id=Item%208.9%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company established a new wholly-owned subsidiary, Shanxi Jinlihua Smart Manufacturing Technology Co., Ltd., which was included in the consolidated financial statements, while subsidiary Tibet Yanghua Times Culture Development Co., Ltd. was deregistered - The company established a new wholly-owned subsidiary, Shanxi Jinlihua Smart Manufacturing Technology Co., Ltd., which completed industrial and commercial registration on April 11, 2025, and was included in the scope of consolidation[462](index=462&type=chunk) - Subsidiary Tibet Yanghua Times Culture Development Co., Ltd. completed deregistration on June 19, 2025[462](index=462&type=chunk) [8.10 Interests in Other Entities](index=104&type=section&id=Item%208.10%20Interests%20in%20Other%20Entities) The company holds interests in wholly-owned subsidiaries including Zhejiang Jinlihua Electric Equipment Co., Ltd. and Shanxi Jinlihua Smart Manufacturing Technology Co., Ltd., as well as a **51%** stake in Beijing Yanghua Times Culture Development Co., Ltd., and interests in associates like Beijing Shierhuan Culture Development Co., Ltd Composition of Enterprise Group (Major Subsidiaries) | Subsidiary Name | Registered Capital (Yuan) | Business Nature | Shareholding Percentage (Direct) | Method of Acquisition | | :--- | :--- | :--- | :--- | :--- | | Zhejiang Jinlihua Electric Equipment Co., Ltd. | 100,000,000.00 | Manufacturing | 100.00% | Newly Established | | Shanxi Jinlihua Smart Manufacturing Technology Co., Ltd. | 20,000,000.00 | Manufacturing | 100.00% | Newly Established | | Shanghai Hejin Cultural Communication Co., Ltd. | 10,000,000.00 | Cultural Industry | 100.00% | Newly Established | | Beijing Jinlihua Cultural Investment Co., Ltd. | 10,000,000.00 | Cultural Industry | 100.00% | Newly Established | | Beijing Yanghua Times Culture Development Co., Ltd. | 1,000,000.00 | Cultural Industry | 51.00% | Acquisition | Important Non-Wholly Owned Subsidiaries (Beijing Yanghua Times Culture Development Co., Ltd.) | Subsidiary Name | Minority Shareholding Percentage | Net Profit Attributable to Minority Shareholders in Current Period (Yuan) | Minority Interests Balance at Period End (Yuan) | | :--- | :--- | :--- | :--- | | Beijing Yanghua Times Culture Development Co., Ltd. | 49.00% | 17,254.85 | 11,594,007.90 | Summary Financial Information of Insignificant Joint Ventures and Associates | Item | Amount at Period End/Amount Incurred in Current Period (Yuan) | | :--- | :--- | | Total Book Value of Investments in Associates | 9,981,480.29 | | Net Profit of Associates | -18,519.71 | [8.11 Government Grants](index=105&type=section&id=Item%208.11%20Government%20Grants) During the reporting period, the company received government grants totaling **7.72 million yuan**, primarily asset-related, with a deferred income balance of **16.14 million yuan** at period-end, and **2.14 million yuan** recognized as other income Liability Items Involving Government Grants (Deferred Income) | Accounting Account | Balance at Period Beginning (Yuan) | Ne

Part I Important Notice, Table of Contents, and Definitions [Important Notice](index=2&type=section&id=重要提示) The company's board, supervisors, and senior management guarantee the report's accuracy, while the financial officers confirm the financial statements' integrity, noting forward-looking statements are not commitments and no dividends are planned - 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[4](index=4&type=chunk) - The company's principal officer, the head of accounting work, and the head of the accounting department declare that the financial report is true, accurate, and complete[4](index=4&type=chunk) - The report contains forward-looking statements regarding future plans, which do not constitute a substantive commitment by the company to investors, and investors should remain aware of risks[4](index=4&type=chunk) - The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=目录) This section outlines the report's structure, covering company profile, management discussion, governance, significant events, share changes, bonds, financial reports, and other data - The report is divided into nine main chapters, covering company profile, management discussion and analysis, corporate governance, significant matters, share changes and shareholder information, bond-related information, financial reports, and other submitted data[6](index=6&type=chunk) [Definitions](index=5&type=section&id=释义) This section defines key terms used in the report, including company names, related parties, the reporting period, and industry-specific terminology for clarity - This section clarifies the definitions of key terms in the report, such as the company, related parties, the reporting period (January-June 2025), and major products (e.g., combined soda-ammonia industry, chemical fertilizer industry, polyols)[10](index=10&type=chunk) Part II Company Profile and Key Financial Indicators [1. Company Profile](index=6&type=section&id=一、公司简介) Jiangsu Huachang Chemical Co., Ltd., stock code 002274, is listed on the Shenzhen Stock Exchange, with Hu Bo as its legal representative - The company's stock abbreviation is "Huachang Chemical", stock code 002274, listed on the Shenzhen Stock Exchange[12](index=12&type=chunk) - The company's legal representative is Hu Bo[12](index=12&type=chunk) [2. Contact Persons and Information](index=6&type=section&id=二、联系人和联系方式) The company's Board Secretary is Lu Long, Securities Affairs Representative is Fei Yunhui, with contact details including address, phone, fax, and email provided - The Board Secretary is Lu Long, and the Securities Affairs Representative is Fei Yunhui[13](index=13&type=chunk) - The company's contact address is 4th Floor, Huachang Oriental Plaza, No. 11 Renmin East Road, Zhangjiagang City, with phone 0512-58727158, fax 0512-58727155, and email huachang@huachangchem.cn[13](index=13&type=chunk) [3. Other Information](index=6&type=section&id=三、其他情况) The company's registered address, office address, website, email, and information disclosure locations remained unchanged during the reporting period - The company's contact information, information disclosure, and storage locations remained unchanged during the reporting period[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) [4. Key Accounting Data and Financial Indicators](index=7&type=section&id=四、主要会计数据和财务指标) During the reporting period, the company experienced significant declines in operating revenue and net profit, with negative net cash flow from operating activities, while total assets and net assets attributable to shareholders slightly decreased Key Accounting Data and Financial Indicators (Year-on-Year Change) | Item | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Period-on-Period Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,216,656,620.64 | 4,233,937,343.75 | -24.03% | | Net Profit Attributable to Shareholders of Listed Company | 10,924,321.60 | 451,122,328.18 | -97.58% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | 4,323,376.72 | 427,392,681.13 | -98.99% | | Net Cash Flow from Operating Activities | -90,593,744.73 | 268,747,746.90 | -133.71% | | Basic Earnings Per Share (Yuan/share) | 0.0115 | 0.4737 | -97.57% | | Diluted Earnings Per Share (Yuan/share) | 0.0115 | 0.4737 | -97.57% | | Weighted Average Return on Net Assets | 0.19% | 7.97% | -7.78% | | Total Assets (Period-end) | 7,660,159,596.26 | 7,793,983,200.30 | -1.72% | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 5,450,855,389.30 | 5,725,640,461.50 | -4.80% | [5. Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=7&type=section&id=五、境内外会计准则下会计数据差异) The company reported no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards during the period - 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) [6. Non-Recurring Gains and Losses and Amounts](index=7&type=section&id=六、非经常性损益项目及金额) The company's total non-recurring gains and losses amounted to 6.60 million Yuan, primarily from fair value changes of financial assets, government grants, and entrusted investment income Non-Recurring Gains and Losses and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -1,456,797.64 | | Government grants recognized in current profit or loss | 2,545,260.00 | | Gains or losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains or losses from disposal of financial assets and liabilities | 5,896,493.71 | | Gains or losses from entrusted investment or asset management | 2,319,950.30 | | Other non-operating income and expenses apart from the above | 106,196.58 | | Less: Income tax impact | 2,415,230.64 | | Impact on minority interests (after tax) | 394,927.43 | | **Total** | **6,600,944.88** | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring gains and losses[22](index=22&type=chunk)[23](index=23&type=chunk) Part III Management Discussion and Analysis [1. Principal Businesses During the Reporting Period](index=9&type=section&id=一、报告期内公司从事的主要业务) The company is a comprehensive chemical enterprise with a coal gasification-based value chain, encompassing basic chemicals, fertilizers, and new materials, actively expanding into hydrogen energy - The company's value chain originates from coal gasification, forming three major industrial segments: basic chemicals, chemical fertilizers, and new materials[25](index=25&type=chunk) - The company is committed to technology introduction and R&D, equipment upgrades, improving the operational level of existing industries, and reserving new product and new material projects[25](index=25&type=chunk) - The company actively expands into the hydrogen energy sector, promoting industrial upgrading towards green, low-carbon, and environmentally friendly directions[25](index=25&type=chunk) [1.1 Coal Chemical Industry Overview](index=9&type=section&id=1、煤化工产业简介) The company's coal chemical value chain uses coal to produce syngas for ammonia, urea, soda ash, and polyols, focusing on clean production and industrial upgrades in line with carbon goals - The company's coal chemical industry chain uses coal as raw material to produce syngas (hydrogen, carbon monoxide, carbon dioxide), which is then used to produce synthetic ammonia, urea, soda ash, polyols, methanol, and other products[27](index=27&type=chunk) - The company is committed to clean and efficient utilization of coal, and in response to "carbon peak and carbon neutrality" policies, it strengthens clean production technologies, optimizes product structure, and achieves energy saving, emission reduction, and industrial upgrading[27](index=27&type=chunk) [1.2 Soda Ash Products](index=9&type=section&id=2、纯碱产品) The company produces soda ash and ammonium chloride using the combined soda-ammonia process, serving various industries, while natural soda projects significantly impact the market - The company produces soda ash using the combined soda-ammonia process, which uses sodium chloride and synthetic ammonia as raw materials to co-produce soda ash and ammonium chloride[28](index=28&type=chunk) - Soda ash products are primarily used in industries such as medicine, papermaking, metallurgy, glass, textiles, and dyes[27](index=27&type=chunk) - The commissioning of natural soda projects in the Alxa region of Inner Mongolia has a significant impact on the domestic soda ash industry landscape, as natural soda production costs are superior to both the combined soda-ammonia process and the ammonia-soda process[28](index=28&type=chunk) [1.3 Fertilizer Products](index=10&type=section&id=3、肥料产品) The company produces nitrogen fertilizers like urea and ammonium chloride, along with compound and new-type fertilizers, aiming to enhance agricultural efficiency, reduce pollution, and improve soil health - The company produces nitrogen fertilizers such as urea and ammonium chloride, as well as new-type fertilizers like compound fertilizers with a rational ratio of nitrogen, phosphorus, and potassium[29](index=29&type=chunk) - New-type fertilizers aim to improve plant fertilizer utilization efficiency, achieve agricultural efficiency, reduce agricultural non-point source pollution, enhance soil improvement, and realize sustainable agricultural development[29](index=29&type=chunk) [1.4 Polyol Products](index=10&type=section&id=4、多元醇产品) The company manufactures polyol products such as n-butanol, octanol, isobutyraldehyde, and neopentyl glycol, which are essential organic raw materials widely used in plastics, rubber, coatings, and pharmaceuticals - The company's polyol products include n-butanol, octanol, isobutanol, n-butyraldehyde, and isobutyraldehyde, which are important basic organic raw materials[30](index=30&type=chunk) - These products are widely used in plastics, rubber products, plasticizers, resins, coatings, pesticides, pharmaceuticals, and other fields[30](index=30&type=chunk) - The company uses coal-derived syngas and purchased propylene as raw materials to produce polyols and neopentyl glycol, and further extends its industrial chain to produce polyester resins[30](index=30&type=chunk) [1.5 Hydrogen Energy Sector](index=10&type=section&id=5、氢能源领域) Through its subsidiary, Suzhou Huachang Energy Technology Co., Ltd., the company is expanding into hydrogen energy, focusing on fuel cell stacks, engines, and testing systems, promoting commercialization through R&D and localization - The company expands into the hydrogen energy industry through its subsidiary, Suzhou Huachang Energy Technology Co., Ltd[32](index=32&type=chunk) - The industry expansion focuses on hydrogen fuel cell stacks, engines, and fuel cell testing systems, promoting product commercialization through independent R&D of key technologies and localization of system components[32](index=32&type=chunk) [2. Analysis of Core Competencies](index=11&type=section&id=二、核心竞争力分析) The company's core strengths include a superior geographical location, a complete industrial chain, mature marketing networks, stable management, and leading environmental protection and energy-saving capabilities - The company is located in the Yangtze River Delta region, with convenient transportation, close proximity to the Yangtze River, and its own inland river terminal, resulting in low logistics costs and proximity to target markets[33](index=33&type=chunk) - The company possesses a complete coal gasification industrial chain and infrastructure, including its own thermal power plant, facilitating industrial extension and product structure optimization[34](index=34&type=chunk) - The company has established a comprehensive sales network system and marketing team, with rich experience in marketing bulk products[34](index=34&type=chunk) - The company has a mature chemical production and operation management system and a stable workforce, and has established a comprehensive talent training, development, and promotion system[35](index=35&type=chunk) - The company excels in environmental protection and energy saving, having been repeatedly recognized as a "Energy Efficiency Leader" benchmark enterprise in the combined soda-ammonia process for the soda ash industry and the synthetic ammonia industry[35](index=35&type=chunk)[36](index=36&type=chunk) [3. Analysis of Principal Business](index=13&type=section&id=三、主营业务分析) During the reporting period, the company's principal business revenue and net profit significantly declined due to falling product prices and periodic maintenance, though development plans progressed as expected - During the reporting period, the company's operating revenue decreased by **24.03%** year-on-year, and net profit attributable to shareholders of the listed company decreased by **97.58%** year-on-year[38](index=38&type=chunk) - Gross profit decreased by **606.33 million Yuan**, primarily due to declining product prices and reduced product volume caused by periodic maintenance[38](index=38&type=chunk) - Gross profit in the combined soda-ammonia industry, chemical fertilizer industry, and fine chemical industry (polyols) all experienced significant reductions[38](index=38&type=chunk) - The implementation of the company's development plan is consistent with the annual plan, and relevant project progress is in line with expectations[40](index=40&type=chunk) Operating Revenue Composition (by Industry) | Industry | Current Reporting Period Amount (Yuan) | Proportion of Operating Revenue | Prior Year Period Amount (Yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Combined Soda-Ammonia Industry | 447,497,379.64 | 13.91% | 782,438,009.74 | 18.48% | -42.81% | | Chemical Fertilizer Industry | 1,297,781,690.46 | 40.35% | 1,332,340,543.20 | 31.47% | -2.59% | | Fine Chemical Industry | 1,176,136,386.33 | 36.56% | 1,733,842,842.24 | 40.95% | -32.17% | | Other | 295,241,164.21 | 9.18% | 385,315,948.57 | 9.10% | -23.38% | Operating Revenue Composition (by Product) | Product | Current Reporting Period Amount (Yuan) | Proportion of Operating Revenue | Prior Year Period Amount (Yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Soda Ash | 369,639,653.55 | 11.49% | 654,667,052.60 | 15.46% | -43.54% | | Fertilizer Series Products | 1,375,639,416.55 | 42.77% | 1,460,111,500.34 | 34.49% | -5.79% | | Refined Methanol | 35,709,892.75 | 1.11% | 43,998,775.77 | 1.04% | -18.84% | | Polyols | 1,140,426,493.58 | 35.45% | 1,689,844,066.47 | 39.91% | -32.51% | | Other | 295,241,164.21 | 9.18% | 385,315,948.57 | 9.10% | -23.38% | Operating Revenue Composition (by Region) | Region | Current Reporting Period Amount (Yuan) | Proportion of Operating Revenue | Prior Year Period Amount (Yuan) | Proportion of Operating Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic Sales | 2,657,189,675.00 | 82.61% | 3,877,059,332.87 | 91.57% | -31.46% | | Export Sales | 559,466,945.64 | 17.39% | 356,878,010.88 | 8.43% | 56.77% | [4. Analysis of Non-Principal Business](index=15&type=section&id=四、非主营业务分析) Non-principal businesses significantly impacted total profit, with investment income being the largest positive contributor, while fair value changes and asset impairment losses had negative effects Impact of Non-Principal Business on Total Profit | Item | Amount (Yuan) | Proportion of Total Profit | Explanation of Cause | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 28,151,110.94 | 692.81% | Equity method long-term equity investment income, wealth management income, gains/losses from holding and disposing of trading financial assets | Associate companies operate stably, cash flow is stable | | Fair Value Change Gains/Losses | -8,580,750.29 | -211.18% | Fair value change losses on trading financial assets | Not applicable | | Asset Impairment | 9,041,060.53 | 222.50% | Impact of inventory write-down provision | Not applicable | | Non-Operating Income | 1,651,427.80 | 40.64% | Not applicable | Not applicable | | Non-Operating Expenses | 3,002,028.86 | 73.88% | Losses from disposal of non-current assets (due to technical upgrades) | Not applicable | [5. Analysis of Assets and Liabilities](index=16&type=section&id=五、资产及负债状况分析) At the end of the reporting period, total assets slightly decreased, construction in progress significantly increased, and short-term borrowings rose substantially, while contract liabilities decreased, with some assets restricted Significant Changes in Asset Composition | Item | Amount at End of Current Reporting Period (Yuan) | Proportion of Total Assets | Amount at End of Prior Year (Yuan) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 359,546,527.45 | 4.69% | 313,726,299.47 | 4.03% | 0.66% | | | Construction in Progress | 1,514,796,281.17 | 19.77% | 907,652,487.22 | 11.65% | 8.12% | Increased investment in construction in progress | | Short-Term Borrowings | 350,231,540.13 | 4.57% | 85,014,972.35 | 1.09% | 3.48% | | | Contract Liabilities | 215,881,193.70 | 2.82% | 305,264,643.05 | 3.92% | -1.10% | | | Long-Term Borrowings | 18,008,400.00 | 0.24% | 0.00 | 0.00% | 0.24% | | - The company's financial assets and liabilities measured at fair value totaled **339.48 million Yuan** at the end of the period, primarily including trading financial assets, other debt investments, and other equity instrument investments[51](index=51&type=chunk) - As of the end of the reporting period, some of the company's monetary funds, fixed assets, intangible assets, and un-derecognized acceptance bills were pledged or mortgaged, with a total book value of **654.66 million Yuan**[54](index=54&type=chunk) [6. Analysis of Investment Status](index=17&type=section&id=六、投资状况分析) Total investments increased by 122.79% year-on-year, primarily in non-equity projects like the 300,000-ton polyol project and ammonia synthesis intelligent transformation, all progressing as planned Investment Amount for the Reporting Period | Indicator | Investment Amount for Current Reporting Period (Yuan) | Investment Amount for Prior Year Period (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Total Investment | 788,342,490.40 | 313,834,101.00 | 122.79% | - The company had no significant equity investments, securities investments, or derivative investments during the reporting period[56](index=56&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) Significant Non-Equity Investment Projects Underway | Project Name | Amount Invested in Current Reporting Period (Yuan) | Cumulative Actual Investment Amount as of End of Reporting Period (Yuan) | Project Progress | Estimated Return | | :--- | :--- | :--- | :--- | :--- | | 300,000 tons/year Polyol and Supporting Facilities Project | 426,142,081.00 | 752,624,007.00 | 85.00% | 250 million Yuan | | Ammonia Synthesis Production Unit Intelligent Technical Transformation Project | 62,602,946.88 | 247,136,231.32 | 64.42% | Equipment upgrade and replacement | | Urea Unit Energy Saving and Carbon Reduction Technical Transformation and Central Control Room Renovation and Supporting Facilities Project | 207,292,616.64 | 405,413,126.94 | 86.26% | Energy saving and consumption reduction | [7. Significant Asset and Equity Disposals](index=19&type=section&id=七、重大资产和股权出售) The company did not undertake any significant asset or equity disposals during the reporting period - The company did not sell significant assets or equity during the reporting period[62](index=62&type=chunk)[63](index=63&type=chunk) [8. Analysis of Major Holding and Associate Companies](index=19&type=section&id=八、主要控股参股公司分析) Key subsidiaries include Jiangsu Huayuan Ecological Agriculture Co., Ltd. and Zhangjiagang Huachang New Material Technology Co., Ltd., with Huaian Huachang Solid Waste Disposal Co., Ltd. as an associate, all contributing to revenue and net profit Financial Status of Major Subsidiaries and Associate Companies | Company Name | Company Type | Principal Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Jiangsu Huayuan Ecological Agriculture Co., Ltd. | Subsidiary | Production and sales of new ecological fertilizers | 150,000,000.00 | 561,450,637.53 | 183,474,895.15 | 520,832,128.53 | 9,306,296.93 | 5,571,484.38 | | Zhangjiagang Huachang New Material Technology Co., Ltd. | Subsidiary | New material technology development, production, and sales | 341,000,000.00 | 1,728,949,554.55 | 1,138,471,458.68 | 1,142,422,165.45 | 101,254,062.69 | 80,445,108.81 | | Huaian Huachang Solid Waste Disposal Co., Ltd. | Associate Company | Waste treatment | 40,000,000.00 | 155,286,501.86 | 119,524,192.53 | 58,578,521.80 | 3,222,150.71 | 3,198,086.38 | - The company did not acquire or dispose of any subsidiaries during the reporting period[64](index=64&type=chunk) [9. Structured Entities Controlled by the Company](index=20&type=section&id=九、公司控制的结构化主体情况) The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[65](index=65&type=chunk) [10. Risks Faced by the Company and Countermeasures](index=20&type=section&id=十、公司面临的风险和应对措施) The company faces operational, financial, project implementation, new industry, policy, safety, environmental, raw material price, human resource, cooperation, economic, and development plan risks, with corresponding mitigation strategies in place - Operational risks: Product prices fluctuate significantly, affecting operating performance; risk control becomes more challenging in the high-quality development stage. Countermeasures include continuous technology introduction and transformation, exploring new economic growth points, and strengthening human resource management[65](index=65&type=chunk) - Financial risks: Implementation of development plans requires cash flow support. Countermeasures include proactive planning and controlling relevant risks[65](index=65&type=chunk) - New project implementation and operational risks: Affected by uncertain factors, employees need time to master new technologies. Countermeasures include thorough planning, strengthening organizational supervision, and preparing human resources in advance[66](index=66&type=chunk) - Policy risks: Changes in national industrial, energy, and environmental policies may affect the company's development plans and project approvals. Countermeasures include closely monitoring policy changes and actively participating in industry development[66](index=66&type=chunk) - Safety production risks and environmental protection risks: Inherent risks in the chemical industry and increasingly stringent environmental requirements. Countermeasures include strengthening safety production management, increasing environmental protection investments, and paying attention to regional environmental requirements[67](index=67&type=chunk)[68](index=68&type=chunk) - Raw material price fluctuation risks: Fluctuations in prices of bulk raw materials. Countermeasures include strengthening internal management, budget control, proactive forecasting, and tracking research on price trends[68](index=68&type=chunk) - Development plan implementation progress and adjustment risks: Plan implementation is affected by multiple factors and may require adjustments. Countermeasures include closely monitoring changes and formulating response measures[69](index=69&type=chunk) [11. Implementation of Market Value Management System and Valuation Enhancement Plan](index=21&type=section&id=十一、市值管理制度和估值提升计划的制定落实情况) The company has established a market value management system outlining objectives, principles, responsibilities, methods, and early warning mechanisms, but has not disclosed a valuation enhancement plan - The company has established a market value management system, defining and allocating the objectives and basic principles, organizational structure and responsibilities of market value management, clarifying the main methods, and establishing monitoring and early warning mechanisms and emergency measures[70](index=70&type=chunk) - The company has not disclosed a valuation enhancement plan[70](index=70&type=chunk) [12. Implementation of "Dual Improvement in Quality and Returns" Action Plan](index=21&type=section&id=十二、“质量回报双提升”行动方案贯彻落实情况) The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan - The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan[71](index=71&type=chunk) Part IV Corporate Governance, Environment, and Society [1. Changes in Directors, Supervisors, and Senior Management](index=22&type=section&id=一、公司董事、监事、高级管理人员变动情况) During the reporting period, Director Lu Long and several supervisors left due to term expiration, while Xu Binbin was elected as an employee director - Director Lu Long, Supervisory Board Chairman Jiang Xiaoning, and Supervisors Ye Shixun, Gong Jingtao, Tao Jiwei, and Li Guowei left due to term expiration[73](index=73&type=chunk) - Xu Binbin was elected as an employee director[73](index=73&type=chunk) [2. Profit Distribution and Capital Reserve Conversion to Share Capital for the Current Period](index=22&type=section&id=二、本报告期利润分配及资本公积金转增股本情况) The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the half-year period - The company plans not to distribute cash dividends, send bonus shares, or convert capital reserves into share capital for the half-year period[74](index=74&type=chunk) [3. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=22&type=section&id=三、公司股权激励计划、员工持股计划或其他员工激励措施的实施情况) The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures in place or implemented during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[75](index=75&type=chunk) [4. Environmental Information Disclosure](index=22&type=section&id=四、环境信息披露情况) The company and its four major subsidiaries are listed as legally required environmental information disclosers, with reports available on the Jiangsu Provincial Department of Ecology and Environment website - The company and its **four** major subsidiaries are included in the list of enterprises required to disclose environmental information by law[76](index=76&type=chunk) - Environmental information disclosure reports can be found on the official website of the Jiangsu Provincial Department of Ecology and Environment – "Environmental Face" Information Disclosure Platform[76](index=76&type=chunk) [5. Social Responsibility](index=22&type=section&id=五、社会责任情况) Information on social responsibility for the current reporting period is not applicable - Social responsibility information for the current reporting period is not applicable[77](index=77&type=chunk) Part V Significant Matters [1. Fulfilled and Overdue Unfulfilled Commitments by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period](index=23&type=section&id=一、公司实际控制人、股东、关联方、收购人以及公司等承诺相关方在报告期内履行完毕及截至报告期末超期未履行完毕的承诺事项) Major shareholders Suzhou Warner Investment Co., Ltd. and Jiangsu Huachang (Group) Co., Ltd. fulfilled their commitments regarding avoiding horizontal competition and related party transactions during the reporting period - Suzhou Warner Investment Co., Ltd. and Jiangsu Huachang (Group) Co., Ltd.'s commitments regarding avoiding horizontal competition were well-fulfilled during the reporting period[79](index=79&type=chunk) - Suzhou Warner Investment Co., Ltd. and Jiangsu Huachang (Group) Co., Ltd.'s commitments regarding related party transactions were well-fulfilled during the reporting period[79](index=79&type=chunk) [2. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties from the Listed Company](index=23&type=section&id=二、控股股东及其他关联方对上市公司的非经营性占用资金情况) During the reporting period, there were no instances of non-operating funds being occupied by controlling shareholders or other related parties from the listed company - The company reported no non-operating funds occupied by controlling shareholders or other related parties from the listed company during the reporting period[80](index=80&type=chunk) [3. Irregular External Guarantees](index=24&type=section&id=三、违规对外担保情况) The company had no irregular external guarantees during the reporting period - The company reported no irregular external guarantees during the reporting period[81](index=81&type=chunk) [4. Appointment and Dismissal of Accounting Firms](index=24&type=section&id=四、聘任、解聘会计师事务所情况) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[82](index=82&type=chunk) [5. Board of Directors' and Supervisory Board's Explanations on the Accounting Firm's "Non-Standard Audit Report" for the Current Period](index=24&type=section&id=五、董事会、监事会对会计师事务所本报告期“非标准审计报告”的说明) The company's Board of Directors and Supervisory Board had no explanations regarding a "non-standard audit report" from the accounting firm for the current reporting period - The company's Board of Directors and Supervisory Board had no explanations regarding a "non-standard audit report" from the accounting firm for the current reporting period[83](index=83&type=chunk) [6. Board of Directors' Explanations on the "Non-Standard Audit Report" for the Previous Year](index=24&type=section&id=六、董事会对上年度“非标准审计报告”相关情况的说明) The company's Board of Directors had no explanations regarding a "non-standard audit report" from the previous year - The company's Board of Directors had no explanations regarding a "non-standard audit report" from the previous year[83](index=83&type=chunk) [7. Bankruptcy Reorganization Matters](index=24&type=section&id=七、破产重整相关事项) The company did not undergo any bankruptcy reorganization matters during the reporting period - The company did not undergo any bankruptcy reorganization matters during the reporting period[83](index=83&type=chunk) [8. Litigation Matters](index=24&type=section&id=八、诉讼事项) 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[84](index=84&type=chunk) [9. Penalties and Rectification](index=24&type=section&id=九、处罚及整改情况) The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[84](index=84&type=chunk) [10. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=24&type=section&id=十、公司及其控股股东、实际控制人的诚信状况) The company, its controlling shareholder, and actual controller maintained good integrity status with no issues during the reporting period - The company, its controlling shareholder, and actual controller had no integrity issues during the reporting period[85](index=85&type=chunk) [11. Significant Related Party Transactions](index=25&type=section&id=十一、重大关联交易) The company engaged in routine related party transactions for procurement and sales at market-based prices, with no significant asset/equity acquisitions, disposals, joint investments, or non-operating related party debts - The company has daily operating-related procurement and sales transactions with related parties, such as purchasing coal from Zhangjiagang Free Trade Zone Lanhua Coal Co., Ltd. and selling water, electricity, and hydrogen to Linde Huachang (Zhangjiagang) Gas Co., Ltd[86](index=86&type=chunk)[123](index=123&type=chunk) - Related party transaction prices are determined according to agreed prices and are generally consistent with transaction prices for non-related parties, with no significant instances of being higher or lower than normal transaction prices[123](index=123&type=chunk) - The company did not engage in related party transactions involving asset or equity acquisitions or disposals, nor joint external investments during the reporting period[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - The company had no non-operating related party creditor-debtor transactions, nor any deposits, loans, credit lines, or other financial business with related financial companies during the reporting period[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) [12. Significant Contracts and Their Performance](index=27&type=section&id=十二、重大合同及其履行情况) The company had no entrustment, contracting, leasing, or wealth management activities, but provided guarantees for subsidiaries and associate companies, totaling 2.60% of its net assets - The company had no entrustment, contracting, leasing, or wealth management activities during the reporting period[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[101](index=101&type=chunk) External Guarantees by the Company and its Subsidiaries | Item | Total Approved External Guarantee Amount at Period-End (10,000 Yuan) | Total Actual External Guarantee Balance at Period-End (10,000 Yuan) | Total Approved Guarantee Amount for Subsidiaries During Reporting Period (10,000 Yuan) | Total Actual Guarantee Amount for Subsidiaries During Reporting Period (10,000 Yuan) | Total Actual Guarantee Balance for Subsidiaries at Period-End (10,000 Yuan) | Proportion of Total Actual Guarantee to Company's Net Assets | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | External Guarantees | 7,000 | 490 | 70,000 | 10,800 | 13,700 | 2.60% | - The company has no other significant contracts[102](index=102&type=chunk) [13. Explanation of Other Significant Matters](index=29&type=section&id=十三、其他重大事项的说明) The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[103](index=103&type=chunk) [14. Significant Matters of Company Subsidiaries](index=29&type=section&id=十四、公司子公司重大事项) There were no significant matters concerning the company's subsidiaries during the reporting period - There were no significant matters concerning the company's subsidiaries during the reporting period[104](index=104&type=chunk) Part VI Share Changes and Shareholder Information [1. Share Change Status](index=30&type=section&id=一、股份变动情况) The company's total share capital, restricted shares, and unrestricted shares remained unchanged during the reporting period, with no share repurchases or concentrated reductions Share Change Status | Item | Quantity Before This Change (shares) | Proportion | Increase/Decrease in This Change (shares) | Quantity After This Change (shares) | Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 14,515,516 | 1.52% | 0 | 14,515,516 | 1.52% | | II. Unrestricted Shares | 937,849,130 | 98.48% | 0 | 937,849,130 | 98.48% | | III. Total Shares | 952,364,646 | 100.00% | 0 | 952,364,646 | 100.00% | - During the reporting period, the company's total share capital, restricted shares, and unrestricted shares remained unchanged[107](index=107&type=chunk) - The company has no progress on share repurchases or concentrated bidding reductions of repurchased shares[107](index=107&type=chunk) - The company reported no changes in restricted shares during the reporting period[108](index=108&type=chunk) [2. Securities Issuance and Listing](index=31&type=section&id=二、证券发行与上市情况) The company had no securities issuance or listing activities during the reporting period - The company reported no securities issuance or listing activities during the reporting period[109](index=109&type=chunk) [3. Number of Shareholders and Shareholding Status](index=31&type=section&id=三、公司股东数量及持股情况) At the end of the reporting period, the company had 49,713 common shareholders, with Suzhou Warner Investment holding 28.88% and Jiangsu Huachang (Group) holding 11.99%, some of which are frozen, and no associated relationships among major shareholders - The total number of common shareholders at the end of the reporting period was **49,713**[110](index=110&type=chunk) Top 10 Shareholders' Shareholding Status | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at End of Reporting Period (shares) | Changes During Reporting Period | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Suzhou Warner Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 28.88% | 275,059,519 | 0 | 0 | 275,059,519 | Not applicable | 0 | | Jiangsu Huachang (Group) Co., Ltd. | State-Owned Legal Person | 11.99% | 114,209,198 | 0 | 13,915,516 | 100,293,682 | Frozen | 13,915,516 | | Xiamen Hanyun Investment Management Co., Ltd. - Hanyun Stock Selection Phase II Private Securities Investment Fund | Other | 1.07% | 10,237,600 | 6,932,899 | 0 | 10,237,600 | Not applicable | 0 | | China Merchants Bank Co., Ltd. - Southern CSI 1000 ETF | Other | 0.55% | 5,274,000 | 560,300 | 0 | 5,274,000 | Not applicable | 0 | | Ni Zhengxiang | Domestic Natural Person | 0.47% | 4,513,900 | 1,581,100 | 0 | 4,513,900 | Not applicable | 0 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.46% | 4,396,931 | -550,080 | 0 | 4,396,931 | Not applicable | 0 | | Jin Yan | Domestic Natural Person | 0.40% | 3,767,500 | 10,000 | 0 | 3,767,500 | Not applicable | 0 | | Ni Kui | Domestic Natural Person | 0.39% | 3,751,400 | 790,200 | 0 | 3,751,400 | Not applicable | 0 | | Guo Hanwen | Domestic Natural Person | 0.38% | 3,587,900 | 3,587,900 | 0 | 3,587,900 | Not applicable | 0 | | Shenzhen Qianhai Shengyao Capital Investment Management Co., Ltd. - Shengyao Zhuohui Shanghai-Shenzhen-Hong Kong Alpha Private Securities Investment Fund | Other | 0.37% | 3,516,687 | 3,216,737 | 0 | 3,516,687 | Not applicable | 0 | - There are no associated relationships or concerted action agreements between the company's first and second largest shareholders; nor are there any associated relationships or concerted action agreements between other top 10 shareholders and the top two shareholders[110](index=110&type=chunk) - The frozen shares of Jiangsu Huachang (Group) Co., Ltd. were transferred to the Social Security Fund Council in accordance with state-owned share transfer regulations[110](index=110&type=chunk) [4. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=32&type=section&id=四、董事、监事和高级管理人员持股变动) There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - The company's directors, supervisors, and senior management had no changes in their shareholdings during the reporting period[113](index=113&type=chunk) [5. Changes in Controlling Shareholder or Actual Controller](index=32&type=section&id=五、控股股东或实际控制人变更情况) The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[114](index=114&type=chunk) - The company's actual controller remained unchanged during the reporting period[114](index=114&type=chunk) [6. Preferred Share Information](index=33&type=section&id=六、优先股相关情况) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[115](index=115&type=chunk) Part VII Bond-Related Information [Bond-Related Information](index=34&type=section&id=债券相关情况) The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[117](index=117&type=chunk) Part VIII Financial Report [1. Audit Report](index=35&type=section&id=一、审计报告) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[119](index=119&type=chunk) [2. Financial Statements](index=35&type=section&id=二、财务报表) This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity for the first half of 2025 [2.1 Consolidated Balance Sheet](index=36&type=section&id=1、合并资产负债表) As of June 30, 2025, consolidated total assets were 7.66 billion Yuan, liabilities 2.16 billion Yuan, and owner's equity 5.50 billion Yuan, with significant increases in short-term borrowings and construction in progress Consolidated Balance Sheet Key Data | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 7,660,159,596.26 | 7,793,983,200.30 | | Total Liabilities | 2,157,852,012.37 | 2,012,556,106.95 | | Total Owner's Equity | 5,502,307,583.89 | 5,781,427,093.35 | | Total Current Assets | 2,114,326,638.21 | 2,831,030,355.43 | | Total Non-Current Assets | 5,545,832,958.05 | 4,962,952,844.87 | | Short-Term Borrowings | 350,231,540.13 | 85,014,972.35 | | Construction in Progress | 1,514,796,281.17 | 907,652,487.22 | [2.2 Parent Company Balance Sheet](index=38&type=section&id=2、母公司资产负债表) As of June 30, 2025, the parent company's total assets were 6.26 billion Yuan, liabilities 1.54 billion Yuan, and owner's equity 4.72 billion Yuan, with notable changes in accounts receivable and short-term borrowings Parent Company Balance Sheet Key Data | Item | Period-End Balance (Yuan) | Period-Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 6,263,877,778.69 | 6,589,153,414.87 | | Total Liabilities | 1,540,607,859.15 | 1,512,384,203.18 | | Total Owner's Equity | 4,723,269,919.54 | 5,076,769,211.69 | | Accounts Receivable | 603,370,621.67 | 355,135,775.10 | | Short-Term Borrowings | 207,876,209.12 | 4,058,458.33 | [2.3 Consolidated Income Statement](index=40&type=section&id=3、合并利润表) For the first half of 2025, consolidated operating revenue decreased by 24.03% to 3.22 billion Yuan, with net profit plummeting by 98.45% to 6.89 million Yuan, and basic earnings per share at 0.0115 Yuan Consolidated Income Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 3,216,656,620.64 | 4,233,937,343.75 | | Total Operating Costs | 3,244,554,602.13 | 3,693,814,149.82 | | Total Profit | 4,063,319.59 | 585,609,002.10 | | Net Profit | 6,889,884.34 | 445,731,301.13 | | Net Profit Attributable to Parent Company Shareholders | 10,924,321.60 | 451,122,328.18 | | Basic Earnings Per Share | 0.0115 | 0.4737 | [2.4 Parent Company Income Statement](index=42&type=section&id=4、母公司利润表) For the first half of 2025, the parent company's operating revenue was 1.73 billion Yuan, resulting in a net loss of 67.79 million Yuan, a reversal from profit, with basic earnings per share at -0.0712 Yuan Parent Company Income Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Operating Revenue | 1,730,102,144.82 | 2,332,835,901.00 | | Operating Profit | -98,699,442.05 | 184,436,432.42 | | Net Profit | -67,789,898.35 | 142,935,529.58 | | Basic Earnings Per Share | -0.0712 | 0.1501 | [2.5 Consolidated Cash Flow Statement](index=43&type=section&id=5、合并现金流量表) In the first half of 2025, net cash flow from operating activities was -90.59 million Yuan, a 133.71% decrease, while net cash flow from investing activities was -412.14 million Yuan, and from financing activities was -5.88 million Yuan Consolidated Cash Flow Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -90,593,744.73 | 268,747,746.90 | -133.71% | | Net Cash Flow from Investing Activities | -412,139,465.07 | 101,442,156.45 | -506.28% | | Net Cash Flow from Financing Activities | -5,879,691.36 | -524,767,978.27 | 98.88% | | Net Increase in Cash and Cash Equivalents | -507,419,399.14 | -155,100,989.59 | -227.15% | [2.6 Parent Company Cash Flow Statement](index=45&type=section&id=6、母公司现金流量表) In the first half of 2025, the parent company's net cash flow from operating activities was -404.83 million Yuan, from investing activities was -62.99 million Yuan, and from financing activities was -65.12 million Yuan Parent Company Cash Flow Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -404,827,244.92 | 183,134,827.19 | | Net Cash Flow from Investing Activities | -62,986,391.95 | 129,987,361.36 | | Net Cash Flow from Financing Activities | -65,122,634.83 | -377,235,800.73 | | Net Increase in Cash and Cash Equivalents | -532,936,271.70 | -66,016,298.08 | [2.7 Consolidated Statement of Changes in Owner's Equity](index=46&type=section&id=7、合并所有者权益变动表) In the first half of 2025, consolidated owner's equity decreased by 279.12 million Yuan, primarily due to profit distribution and comprehensive income changes Consolidated Statement of Changes in Owner's Equity | Item | Beginning Balance of Period (Yuan) | Amount of Change in Current Period (Yuan) | Ending Balance of Period (Yuan) | | :--- | :--- | :--- | :--- | | Total Owner's Equity | 5,781,427,093.35 | -279,119,509.46 | 5,502,307,583.89 | | Total Owner's Equity Attributable to Parent Company | 5,725,640,461.50 | -274,785,072.20 | 5,450,855,389.30 | | Undistributed Profits | 2,990,312,010.84 | -274,785,072.20 | 2,715,526,938.64 | [2.8 Parent Company Statement of Changes in Owner's Equity](index=50&type=section&id=8、母公司所有者权益变动表) In the first half of 2025, the parent company's owner's equity decreased by 353.50 million Yuan, mainly influenced by net loss and profit distribution Parent Company Statement of Changes in Owner's Equity | Item | Beginning Balance of Period (Yuan) | Amount of Change in Current Period (Yuan) | Ending Balance of Period (Yuan) | | :--- | :--- | :--- | :--- | | Total Owner's Equity | 5,076,769,211.69 | -353,499,292.15 | 4,723,269,919.54 | | Undistributed Profits | 2,366,842,057.38 | -353,499,292.15 | 2,013,342,765.23 | [3. Company Overview](index=52&type=section&id=三、公司基本情况) Established in 2004 and listed in 2008, Jiangsu Huachang Chemical Co., Ltd. has a registered capital of 952.36 million Yuan, primarily engaged in the manufacturing and sales of chemical raw materials, products, and fertilizers - The company was established on January 29, 2004, formerly known as Shazhou Chemical Fertilizer Plant, and was first publicly listed on July 2008[142](index=142&type=chunk)[143](index=143&type=chunk) - The company's registered capital is **952.36 million Yuan**, its legal representative is Hu Bo, and its domicile is No. 1 Nanhai Road, Yangtze River International Chemical Industrial Park, Jin'gang Town, Zhangjiagang City[143](index=143&type=chunk) - Its business scope includes the production and sales of chemical raw materials, chemical products, and fertilizers (operating under license), coal sales, etc., with main products including compound fertilizers, urea, soda ash, synthetic ammonia, ammonium chloride, methanol, and polyols[143](index=143&type=chunk)[144](index=144&type=chunk) - The company belongs to the chemical raw materials and chemical products manufacturing industry[143](index=143&type=chunk) [4. Basis of Financial Statement Preparation](index=53&type=section&id=四、财务报表的编制基础) The financial statements are prepared on a going concern basis, adhering to Enterprise Accounting Standards and CSRC regulations, using accrual accounting and historical cost measurement, with no significant going concern issues identified - The financial statements are prepared on a going concern basis, in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and the "Information Disclosure and Reporting Rules for Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports" issued by the China Securities Regulatory Commission[145](index=145&type=chunk) - Accounting is based on the accrual basis and historical cost measurement, with provisions for asset impairment[145](index=145&type=chunk) - The company's comprehensive assessment indicates no factors that would significantly affect its ability to continue as a going concern within 12 months from the end of the reporting period[146](index=146&type=chunk) [5. Significant Accounting Policies and Estimates](index=53&type=section&id=五、重要会计政策及会计估计) This section details the company's accounting policies and estimates for revenue recognition, financial instruments, inventory, fixed assets, construction in progress, intangible assets, long-term equity investments, employee benefits, government grants, and deferred taxes - The company adheres to the requirements of Enterprise Accounting Standards, accurately and completely reflecting its financial position, operating results, and cash flows[148](index=148&type=chunk) - The company's accounting period adopts the calendar year, with one year (12 months) as the normal operating cycle, and the recording currency is Renminbi[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - The company classifies, recognizes, measures, and derecognizes financial assets and liabilities, and makes impairment provisions using the expected credit loss model[165](index=165&type=chunk)[173](index=173&type=chunk) - The company measures inventory at the lower of cost and net realizable value, and makes provisions for inventory write-downs; fixed assets and intangible assets are depreciated and amortized using the straight-line method[181](index=181&type=chunk)[201](index=201&type=chunk)[205](index=205&type=chunk) - The company makes significant accounting judgments and estimates in areas such as revenue recognition, bad debt provisions, inventory write-down provisions, impairment provisions for non-financial non-current assets, depreciation and amortization, fair value of financial instruments, and income tax[238](index=238&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk) [6. Taxation](index=78&type=section&id=六、税项) This section outlines the company's main tax categories and rates, including VAT, urban maintenance and construction tax, corporate income tax, and education surcharges, with some subsidiaries benefiting from high-tech enterprise tax incentives and R&D expense super deductions Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable sales revenue | 9%, 13% | | Urban Maintenance and Construction Tax | Amount of turnover tax | 5%, 7% | | Corporate Income Tax | Taxable income | 15%, 25% | | Education Surcharge | Amount of turnover tax | 5% | - Subsidiaries Suzhou Huachang Energy Technology Co., Ltd. and Suzhou Austin New Material Technology Co., Ltd., as high-tech enterprises, enjoy a **15%** preferential corporate income tax rate[244](index=244&type=chunk) - The company's R&D expenses enjoy a pre-tax super deduction policy, with **100%** super deduction for expenses not forming intangible assets, and **200%** amortization of costs for those forming intangible assets[244](index=244&type=chunk) [7. Notes to Consolidated Financial Statement Items](index=79&type=section&id=七、合并财务报表项目注释) This section provides detailed notes for each asset, liability, owner's equity, revenue, cost, and expense item in the consolidated financial statements, including period-end balances, beginning balances, and changes - Monetary funds at period-end totaled **359.55 million Yuan**, of which **111.00 million Yuan** was restricted, mainly for letter of credit margins and acceptance bill margins[246](index=246&type=chunk)[247](index=247&type=chunk) - Trading financial assets at period-end totaled **110.59 million Yuan**, primarily consisting of stock investments and wealth management products[249](index=249&type=chunk) - Accounts receivable at period-end had a book value of **141.00 million Yuan**, with bad debt provisions of **35.67 million Yuan** already made[262](index=262&type=chunk) - Construction in progress at period-end totaled **1.51 billion Yuan**, an increase of **607.00 million Yuan** from the beginning of the period, mainly due to increased investment in new area technical transformation projects and new material projects[334](index=334&type=chunk)[336](index=336&type=chunk) - Short-term borrowings at period-end totaled **350.23 million Yuan**, an increase of **265.00 million Yuan** from the beginning of the period, mainly due to increased guarantee borrowings and credit borrowings[364](index=364&type=chunk) - Operating revenue was **3.22 billion Yuan**, operating cost was **3.01 billion Yuan**, and gross profit margin was **6.56%**, a year-on-year decrease of **12.74%**[46](index=46&type=chunk) - R&D expenses were **40.19 million Yuan**, a year-on-year decrease of **15.00%**[43](index=43&type=chunk) [8. Research and Development Expenses](index=115&type=section&id=八、研发支出) Total R&D expenses for the reporting period were 40.19 million Yuan, entirely expensed, primarily allocated to materials, personnel, external R&D, and depreciation/amortization R&D Expense Composition | Item | Amount Incurred in Current Period (Yuan) | Amount Incurred in Prior Period (Yuan) | | :--- | :--- | :--- | | Material Input | 8,879,242.27 | 8,579,561.00 | | Personnel | 14,957,798.00 | 20,651,407.94 | | External R&D | 7,706,876.06 | 4,142,675.64 | | Depreciation and Amortization | 8,485,688.65 | 12,456,400.00 | | Other | 164,000.72 | 1,456,257.86 | | **Total** | **40,193,605.70** | **47,286,302.44** | - All R&D expenses in the current period were expensed, with no capitalized R&D expenses[449](index=449&type=chunk) [9. Changes in Consolidation Scope](index=115&type=section&id=九、合并范围的变更) There were no changes in the company's consolidation scope during the reporting period - The company's consolidation scope remained unchanged during the reporting period[450](index=450&type=chunk) [10. Interests in Other Entities](index=116&type=section&id=十、在其他主体中的权益) The company holds interests in various subsidiaries, joint ventures, and associates engaged in diverse businesses, with some subsidiaries controlled despite non-majority ownership, and aggregate net profits from non-significant JVs and associates - The company owns **11** subsidiaries, primarily engaged in investment management, production of new ecological fertilizers, chemical production, new material technology development, coal wholesale operations, battery R&D and production, chemical raw materials and products, import and export trade, active pharmaceutical ingredient production, and polyurethane material manufacturing[451](index=451&type=chunk) - Suzhou Huachang Energy Technology Co., Ltd. has a shareholding ratio of **48.27%**, but the company appoints a majority of its board members, thus achieving control and including it in the consolidation scope[452](index=452&type=chunk) - The company has no significant non-wholly-owned subsidiaries, joint ventures, or associate companies[453](index=453&type=chunk)[459](index=459&type=chunk)[460](index=460&type=chunk) Summary Financial Information for Non-Significant Joint Ventures and Associate Companies | Item | Period-End Balance/Current Period Amount (Yuan) | Period-Beginning Balance/Prior Period Amount (Yuan) | | :--- | :--- | :--- | | Total Book Value of Joint Venture Investments | 59,762,096.27 | 58,163,053.08 | | Net Profit of Joint Ventures | 1,599,043.19 | -1,863,860.84 | | Total Book Value of Associate Company Investments | 150,180,924.45 | 157,860,481.77 | | Net Profit of Associate Companies | 9,754,873.45 | 14,898,656.38 | [11. Government Grants](index=118&type=section&id=十一、政府补助) Government grants recognized in current period profit or loss amounted to 4.23 million Yuan, primarily recorded under other income Government Grants Recognized in Current Period Profit or Loss | Accounting Account | Amount Incurred in Current Period (Yuan) | Amount Incurred in Prior Period (Yuan) | | :--- | :--- | :--- | | Other Income | 4,227,260.00 | 8,547,680.00 | - The company had no government grants recognized based on receivable amounts at the end of the reporting period, nor any liability items involving government grants[469](index=469&type=chunk) [12. Risks Related to Financial Instruments](index=119&type=section&id=十二、与金融工具相关的风险) The company manages market, exchange rate, credit, and liquidity risks associated with financial instruments through internal controls, monitoring, and correlation management, having derecognized 570.24 million Yuan in financial assets through transfers - The company's risk management objective is to achieve a balance between risk and return, minimizing the negative impact of risks on operating performance[471](index=471&type=chunk) - The company identifies market and exchange rate risks, credit risks, and liquidity risks, and manages them through institutional controls, tracking evaluations, and correlation controls[471](index=471&type=chunk) Financial Assets Derecognized Due to Transfer | Item | Method of Financial Asset Transfer | Amount of Derecognized Financial Assets (Yuan) | Gains or Losses Related to Derecognition (Yuan) | | :--- | :--- | :--- | :--- | | Accounts Receivable Financing | Discounting | 137,786,828.00 | 585,818.19 | | Accounts Receivable Financing | Endorsement | 432,452,246.46 | 0 | | **Total** | | **570,239,074.46** | **585,818.19** | - The company did not engage in hedging activities for risk management, nor did it apply hedge accounting[472](index=472&type=chunk) [13. Fair Value Disclosure](index=120&type=section&id=十三、公允价值的披露) The company's assets and liabilities measured at fair value totaled 339.48 million Yuan, comprising trading financial assets, other debt investments, and other equity instrument investments, with fair value determined using Level 1 and Level 3 inputs Fair Value of Assets and Liabilities Measured at Fair Value at Period-End | Item | Level 1 Fair Value Measurement (Yuan) | Level 3 Fair Value Measurement (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | | (I) Trading Financial Assets | 103,589,281.14 | 7,005,010.96 | 110,594,292.10 | | (II) Other Debt Investments | 0 | 13,576,054.50 | 13,576,054.50 | | (III) Other Equity Instrument Investments | 0 | 215,308,728.29 | 215,308,728.29 | | **Total Assets Continuously Measured at Fair Value** | **103,589,281.14** | **235,889,793.75** | **339,479,074.89** | - The basis for determining Level 1 fair value measurement is the publicly quoted market price[480](index=480&type=chunk) - Level 3 fair value measurement is primarily determined by investment amounts and expected returns, face value, or the proportion of owner's equity in the investee company[482](index=482&type=chunk) - The book value of financial assets and liabilities not measured at fair value approximates their fair value[487](index=487&type=chunk) [14. Related Parties and Related Party Transactions](index=122&type=section&id=十四、关联方及关联交易) Suzhou Warner Investment Co., Ltd. is the controlling shareholder, with no actual controller; the company engages in various related party transactions with subsidiaries, joint ventures, associates, and other related parties at fair market prices - The company's controlling shareholder is Suzhou Warner Investment Co., Ltd., with a shareholding ratio of **28.88%**, and no actual controller[489](index=489&type=chunk)[490](index=490&type=chunk) - The company has several subsidiaries, joint ventures, and associate companies, and maintains related party relationships with Jiangsu Huachang (Group) Co., Ltd. and other related parties[491](index=491&type=chunk)[492](index=492&type=chunk)[493](index=493&type=chunk) - Related party transactions include the purchase of coal, steam, transportation services, outsourced repairs, and materials, as well as the sale of water, electricity, hydrogen, and compound fertilizers[495](index=495&type=chunk)[496](index=496&type=chunk) - Related party transaction prices are determined according to agreed prices and are generally consistent with transaction prices for non-related parties[496](index=496&type=chunk) - The company provides a guarantee for its associate company, Zhangjiagang Yunchang Green Logistics Co., Ltd., with a guarantee amount of **4.9 million Yuan**[500](index=500&type=chunk) - The company has intercompany borrowings with related parties, including both borrowing and lending[499](index=499&type=chunk) [15. Share-Based Payments](index=125&type=section&id=十五、股份支付) The company had no share-based payment arrangements, including equity-settled or cash-settled, nor any related expenses, modifications, or terminations during the reporting period - The company reported no overall share-based payment situation, equity-settled share-based payments, cash-settled share-based payments, share-based payment expenses, or modifications/terminations of share-based payments during the reporting period[505](index=505&type=chunk)[506](index=506&type=chunk) [16. Commitments and Contingencies](index=126&type=section&id=十六、承诺及或有事项) The company has capital commitments for a 600 million Yuan urea plant energy-saving and carbon reduction project, which is underway, and provides guarantees for subsidiaries and associate companies, with no other significant contingencies - The company is committed to investing in the urea plant energy-saving and carbon reduction technical transformation and central control room renovation and supporting facilities project, with a total estimated investment of **600 million Yuan**, a planned construction period of **24 months**, and the project has already commenced[508](index=508&type=chunk)[509](index=509&type=chunk) - Apart from providing comprehensiv

[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=第一节%20重要提示、目录和释义) This section provides essential disclaimers, a comprehensive table of contents, and definitions of key terms used throughout the report to ensure clarity and accuracy [Important Notice](index=2&type=section&id=重要提示) The Board of Directors, Supervisory Board, and senior management guarantee the accuracy and completeness of the semi-annual report, with no plans for cash dividends or bonus shares - The company's Board of Directors, Supervisory Board, and senior management guarantee the report's content is true, accurate, and complete, assuming legal responsibility[5](index=5&type=chunk) - Company head Chen Kunjiang, chief accountant Huang Min, and accounting department head Li Dan declare the financial report is true, accurate, and complete[5](index=5&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=目录) This report's clear table of contents lists eight main chapters, facilitating quick information retrieval for investors - The report comprises eight main chapters, structured clearly[7](index=7&type=chunk) [Catalogue of Reference Documents](index=4&type=section&id=备查文件目录) Reference documents include signed and sealed financial statements, along with original copies of all publicly disclosed company documents from the reporting period, available at the Board Secretary's office - Reference documents include signed and sealed financial statements and original copies of publicly disclosed documents[9](index=9&type=chunk) - Reference documents are available at the company's Board Secretary's office[10](index=10&type=chunk) [Definitions](index=5&type=section&id=释义) This section defines key terms used in the report, including company names, currency units, reporting periods, regulatory bodies, and XR technology acronyms, ensuring accurate understanding - The reporting period is defined as January 1, 2025, to June 30, 2025[11](index=11&type=chunk) - Definitions for extended reality technologies such as VR, MR, AR, and XR are provided[11](index=11&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=第二节%20公司简介和主要财务指标) This section provides an overview of the company's fundamental information, contact details, and a summary of its key financial performance and position during the reporting period [Company Profile](index=6&type=section&id=一、公司简介) Shenzhen Avit Technology Co., Ltd. (stock code: 300264) is listed on the Shenzhen Stock Exchange, with Chen Kunjiang as its legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Avit Technology | | Stock Code | 300264 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | 深圳市佳创视讯技术股份有限公司 | | Legal Representative | Chen Kunjiang | [Contact Persons and Methods](index=6&type=section&id=二、联系人和联系方式) Contact information for the company's Board Secretary Qiu Yijun and Securities Affairs Representative Li Jianhong is disclosed, including address, phone, fax, and email, for investor communication Contact Information | Position | Name | Phone | Email | | :--- | :--- | :--- | :--- | | Board Secretary | Qiu Yijun | 0755-83575056 | avit@avit.com.cn | | Securities Affairs Representative | Li Jianhong | 0755-83575056 | avit@avit.com.cn | [Other Information](index=6&type=section&id=三、其他情况) During the reporting period, there were no changes in the company's contact information, information disclosure, document storage locations, or registration details, as referenced in the 2024 annual report - The company's registered address, office address, website, and email remained unchanged during the reporting period[15](index=15&type=chunk) - Information disclosure and document storage locations remained unchanged during the reporting period[16](index=16&type=chunk) - The company's registration status remained unchanged during the reporting period[17](index=17&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=四、主要会计数据和财务指标) During the reporting period, the company's operating revenue increased by 23.16% year-on-year, and net loss attributable to shareholders significantly narrowed by 71.13%, though net cash flow from operating activities decreased by 59.78% Key Accounting Data and Financial Indicators (Year-on-Year) | Indicator | Current Period (RMB) | Prior Year Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 82,016,200.50 | 66,594,703.07 | 23.16% | | Net Profit Attributable to Shareholders of Listed Company | -7,425,581.80 | -25,718,600.68 | 71.13% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | -11,633,016.41 | -28,539,430.69 | 59.24% | | Net Cash Flow from Operating Activities | -17,519,681.46 | -10,964,644.25 | -59.78% | | Basic Earnings Per Share (RMB/share) | -0.0172 | -0.0597 | 71.19% | | Diluted Earnings Per Share (RMB/share) | -0.0172 | -0.0597 | 71.19% | | Weighted Average Return on Net Assets | -31.73% | -35.55% | 3.82% | Key Accounting Data and Financial Indicators (Period-End) | Indicator | Current Period End (RMB) | Prior Year End (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 227,851,684.30 | 236,575,267.24 | -3.69% | | Net Assets Attributable to Shareholders of Listed Company | 19,686,161.53 | 27,111,852.33 | -27.39% | [Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=7&type=section&id=五、境内外会计准则下会计数据差异) During the reporting period, the company reported no differences in net profit and net assets between international or overseas accounting standards and Chinese accounting standards - The company reported no differences in accounting data under domestic and overseas accounting standards during the reporting period[19](index=19&type=chunk)[20](index=20&type=chunk) [Non-Recurring Gains and Losses and Amounts](index=7&type=section&id=六、非经常性损益项目及金额) The company's non-recurring gains and losses for the reporting period primarily include disposal gains/losses on non-current assets and government subsidies, totaling RMB 4,207,434.61 Non-Recurring Gains and Losses and Amounts | Item | Amount (RMB) | | :--- | :--- | | Disposal Gains/Losses on Non-Current Assets | 648,485.59 | | Government Subsidies Included in Current Period Profit/Loss | 3,558,749.02 | | Other Non-Operating Income and Expenses Apart from the Above | 200.00 | | **Total** | **4,207,434.61** | [Management Discussion and Analysis](index=9&type=section&id=第三节%20管理层讨论与分析) This section analyzes the company's business operations, core competencies, financial performance, investment activities, and risk factors during the reporting period, along with corresponding management strategies [Main Businesses Engaged in During the Reporting Period](index=9&type=section&id=一、报告期内公司从事的主要业务) The company's main businesses are categorized into audio-video software products and solutions, system integration and services, gaming and cloud services, and VR business products and services, with continuous innovation and market expansion in each area - The company's businesses are categorized into four main areas: audio-video software products and solutions, system integration and services, gaming and cloud services, and VR business products and services[25](index=25&type=chunk) [Audio-Video Software Products and Solutions](index=9&type=section&id=1、音视频软件产品及解决方案) The company provides end-to-end solutions for the large video industry, including the Avit Smart Video Cloud Platform (Chuangshi Cloud), Avit Changliu Live Streaming products, and telecom 5G audio-video application solutions, supporting multi-terminal, ultra-HD, low-latency, and AI applications, while actively supporting domestic IT innovation - Avit Smart Video Cloud Platform "Chuangshi Cloud" supports multi-mode video playback and multi-terminal business authentication, is geared towards future AI and VR/metaverse applications, and has obtained OpenEuler@Kunpeng 920 platform compatibility certification[25](index=25&type=chunk) - Avit Changliu Live Streaming products offer sub-second ultra-low latency and 4K/8K high-quality live streaming, suitable for TV broadcasts and sports events[27](index=27&type=chunk) - Telecom 5G audio-video applications and solutions provide 5G audio-video SaaS applications, including live streaming, cloud desktop, and cloud gaming, to government and enterprise clients via operators[27](index=27&type=chunk) [System Integration and Services](index=10&type=section&id=2、系统集成及服务) The company specializes in system integration for the broadcasting industry, offering comprehensive services from consulting and design to operation and maintenance, covering digital TV IP front-ends, CDNs, optical networks, IT systems, and cloud platforms, while embracing trends in video processing IP-based, cloud-based, and intelligent technologies - The company provides system integration sales and services in the broadcasting industry, integrating mainstream manufacturer products to form a complete service system[28](index=28&type=chunk) - Products cover digital TV IP front-end systems, CDNs, optical networks, data networks, IT information systems, and cloud platforms[28](index=28&type=chunk) [Gaming and Cloud Services](index=10&type=section&id=3、游戏及云服务) The gaming business primarily focuses on TV games, transitioning towards virtual reality games, and has developed XR-based virtual simulation cultural experience products and digital human broadcasting applications for government and enterprise clients, while PaaS cloud services provide network acceleration and video streaming based on operator infrastructure - Subsidiary Shaanxi Fenteng Interactive's main business is TV games based on operator networks, currently upgrading to the virtual reality gaming industry[30](index=30&type=chunk) - The company has completed a mixed reality cultural experience product based on Xi'an's intangible cultural heritage and developed digital human broadcasting applications for telecom government and enterprise clients[30](index=30&type=chunk) - PaaS cloud services provide network acceleration and video-on-demand streaming services based on operator cloud computing and bandwidth resources[31](index=31&type=chunk) [VR Business Products and Services](index=11&type=section&id=4、VR%20业务产品及服务) The company specializes in 8K stereoscopic panoramic video content production and VR/MR content creation and operation, with the Full-Sense Theater project adding "Dinosaur Park" and continuing development of "Sword and Fairy XR," while also focusing on technology accumulation, XR content ecosystem building, multi-mode market expansion, and international IP collaborations - The company is dedicated to 8K stereoscopic panoramic video content production, holding multiple patented technologies[31](index=31&type=chunk) - The Full-Sense Theater project has launched "Dinosaur Park" and continues to develop "Sword and Fairy XR"[32](index=32&type=chunk) - Market expansion employs various models including self-operated stores, pop-up stores, partner stores, and authorized stores, alongside pursuing international renowned IP collaborations[33](index=33&type=chunk) [Core Competitiveness Analysis](index=12&type=section&id=二、核心竞争力分析) The company's core competitiveness lies in its outstanding R&D capabilities, rich software products, platform-based development strategy, resource advantages from focusing on high-value clients, and industry-leading brand reputation, with no significant changes to core competitiveness during the reporting period - The company is a national high-tech enterprise, key software enterprise, and specialized "little giant" enterprise, holding multiple invention patents related to audio-video and virtual reality technologies[35](index=35&type=chunk) - The company leverages the broadcasting industry as its parent platform, integrating resources to expand into emerging niche markets such as 5G+, ultra-HD, VR, and AIoT, building a new media integrated ecosystem of "platform + content + application + terminal + service"[37](index=37&type=chunk)[38](index=38&type=chunk) - Customers include several large provincial broadcasting network operators with over 100 million users, and the company collaborates with China Mobile Migu, China Unicom Online, and China Telecom IPTV to expand its market[38](index=38&type=chunk) - The company holds high recognition and a leading market position in digital TV system overall solutions, possessing multiple national-level honors and qualifications[38](index=38&type=chunk) - The company's core competitiveness did not undergo significant changes during the reporting period[39](index=39&type=chunk) [Main Business Analysis](index=14&type=section&id=三、主营业务分析) During the reporting period, the company's operating revenue increased by 23.16%, primarily driven by significant growth in audio-video software products and solutions revenue; management expenses and R&D investment decreased due to personnel structure optimization, but net cash flow from operating activities sharply declined due to delayed collections Major Financial Data Year-on-Year Changes | Indicator | Current Period (RMB) | Prior Year Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 82,016,200.50 | 66,594,703.07 | 23.16% | | | Operating Cost | 63,000,970.12 | 60,750,024.25 | 3.71% | | | Selling Expenses | 8,640,756.62 | 11,112,008.74 | -22.24% | | | Administrative Expenses | 8,809,145.93 | 13,278,145.18 | -33.66% | Reduced labor costs due to personnel structure optimization in the prior year | | Financial Expenses | 2,179,887.56 | 1,684,344.11 | 29.42% | | | Income Tax Expense | -39,887.50 | -18,875.67 | -111.32% | | | R&D Investment | 8,594,895.36 | 13,354,175.69 | -35.64% | Reduced labor costs due to personnel structure optimization in the prior year | | Net Cash Flow from Operating Activities | -17,519,681.46 | -10,964,644.25 | -59.78% | Delayed customer collections | | Net Cash Flow from Investing Activities | -3,512,063.15 | -16,791,849.63 | 79.08% | More idle funds used for bank wealth management in the prior year | | Net Cash Flow from Financing Activities | -512,604.90 | -5,367,507.60 | 90.45% | Repayment of controlling shareholder loans lower than prior year | | Net Increase in Cash and Cash Equivalents | -21,544,444.50 | -33,123,423.61 | 34.96% | | Revenue by Customer Industry | Industry | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Broadcasting Industry | 79,699,470.05 | 60,547,508.58 | 24.03% | 25.19% | 1.78% | 17.48% | Revenue by Product | Product | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | System Integration and Services | 67,642,611.49 | 55,232,016.37 | 18.35% | 6.87% | -6.94% | 12.12% | | Audio-Video Software Products and Solutions | 12,056,858.56 | 5,315,492.21 | 55.91% | 3,194.40% | 3,683.52% | -5.70% | Cost of Main Business Composition | Cost Component | Current Period Amount (RMB) | Proportion of Operating Cost | Prior Year Period Amount (RMB) | Proportion of Operating Cost | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Materials and Services | 60,547,508.58 | 96.11% | 59,349,930.96 | 97.70% | 2.02% | | Labor and Other | 2,453,461.54 | 3.89% | 1,400,093.29 | 2.30% | 75.24% | | Total | 63,000,970.12 | 100.00% | 60,750,024.25 | 100.00% | 3.71% | - Labor and other costs increased by **75.24%** year-on-year, primarily due to the subsidiary's offline large-space content operations during the reporting period[46](index=46&type=chunk) [Non-Main Business Analysis](index=16&type=section&id=四、非主营业务分析) During the reporting period, the company had no non-main businesses - The company had no non-main businesses during the reporting period[47](index=47&type=chunk) [Analysis of Assets and Liabilities](index=16&type=section&id=五、资产及负债状况分析) At the end of the reporting period, the company's total assets and net assets attributable to shareholders both decreased; monetary funds decreased, while accounts receivable and contract assets significantly grew due to increased revenue and slower collections, and inventory decreased due to project acceptance and revenue recognition Significant Changes in Asset Composition | Item | Current Period End Amount (RMB) | Proportion of Total Assets | Prior Year End Amount (RMB) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 11,415,947.87 | 5.01% | 33,016,393.73 | 13.96% | -8.95% | Used for operating expenses | | Accounts Receivable | 103,210,271.37 | 45.30% | 58,823,535.53 | 24.86% | 20.44% | Increased revenue and slower customer collections | | Contract Assets | 17,998,622.89 | 7.90% | 5,794,645.02 | 2.45% | 5.45% | Increased revenue, some payments not yet due for settlement | | Inventories | 30,356,087.85 | 13.32% | 63,512,672.34 | 26.85% | -13.53% | Revenue recognized and inventory transferred for some large projects upon acceptance | | Short-term Borrowings | 95,393,638.88 | 41.87% | 94,481,373.55 | 39.94% | 1.93% | | | Contract Liabilities | 5,946,772.26 | 2.61% | 12,615,148.01 | 5.33% | -2.72% | Revenue recognized for some projects upon acceptance, reducing advance receipts | | Notes Receivable | 752,149.60 | 0.33% | 6,799,624.00 | 2.87% | -2.54% | Some notes matured and were cashed | | Prepayments | 1,695,025.67 | 0.74% | 10,443,349.99 | 4.41% | -3.67% | Prepayments for supplier purchases delivered and warehoused | | Other Non-current Assets | 11,032,768.59 | 4.84% | 5,112,038.49 | 2.16% | 2.68% | Some contracts entered warranty period, reclassification of accounts receivable | | Notes Payable | 0.00 | 0.00% | 422,479.00 | 0.18% | -0.18% | Bank acceptance bills matured and were cashed | | Taxes Payable | 1,795,920.22 | 0.79% | 585,044.20 | 0.25% | 0.54% | Increased revenue | | Other Current Liabilities | 486,269.60 | 0.21% | 1,494,576.00 | 0.63% | -0.42% | Endorsement of bank acceptance bills with lower credit ratings matured | - The measurement attributes of the company's main assets did not undergo significant changes during the reporting period[51](index=51&type=chunk) - As of the end of the reporting period, **RMB 486,269.60** of the company's notes receivable were restricted due to bank note endorsement[51](index=51&type=chunk) [Investment Status Analysis](index=18&type=section&id=六、投资状况分析) The company had no significant equity or non-equity investments during the reporting period; regarding raised funds, the original "Ultra-HD Video Cloud Platform Project for 5G Applications (Phase I)" was terminated due to market changes, and the remaining funds were permanently used to supplement working capital - The company had no significant equity or non-equity investments during the reporting period[52](index=52&type=chunk) Overall Utilization of Raised Funds | Total Raised Capital (RMB 10,000) | Net Raised Capital (RMB 10,000) | Total Accumulated Used Raised Capital (RMB 10,000) | Total Raised Capital with Changed Use in Current Period (RMB 10,000) | Proportion of Raised Capital with Changed Use | | :--- | :--- | :--- | :--- | :--- | | 9,446.99 | 9,033.25 | 6,017.11 | 6,320.36 | 69.97% | - The company terminated the "Ultra-HD Video Cloud Platform Project for 5G Applications (Phase I)" and permanently used the remaining **RMB 64.57 million** of raised funds to supplement working capital, with the special account already canceled[55](index=55&type=chunk) - The feasibility of the raised fund project "Ultra-HD Video Cloud Platform Project for 5G Applications (Phase I)" underwent significant changes, leading to its termination[57](index=57&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) [Significant Asset and Equity Sales](index=22&type=section&id=七、重大资产和股权出售) During the reporting period, the company did not engage in any significant asset or equity sales - The company did not sell any significant assets or equity during the reporting period[66](index=66&type=chunk)[67](index=67&type=chunk) [Analysis of Major Holding and Participating Companies](index=22&type=section&id=八、主要控股参股公司分析) The company's major holding subsidiaries include Beijing Yijing Technology Co., Ltd. (VR/MR content operations) and Shaanxi Fenteng Interactive Network Technology Co., Ltd. (gaming products and services), both of which are currently operating at a loss Financial Performance of Major Subsidiaries | Company Name | Company Type | Main Business | Registered Capital (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | | Beijing Yijing Technology Co., Ltd. | Subsidiary | VR video and panoramic video content shooting, editing, conversion, and related technology development for broadcasting network transmission | 100,000,000.00 | -10,506,260.42 | | Shaanxi Fenteng Interactive Network Technology Co., Ltd. | Subsidiary | Gaming products and services | 10,000,000.00 | -10,367,567.38 | - Beijing Yijing Technology Co., Ltd. is actively engaged in MR large-space content operations and other related work[69](index=69&type=chunk) - Shaanxi Fenteng Interactive Network Technology Co., Ltd. focuses on TV game product development and operations, currently concentrating on VR community, VR game development, virtual-real interaction technology development, and the development and sales of existing IPTV game businesses[70](index=70&type=chunk) [Information on Structured Entities Controlled by the Company](index=23&type=section&id=九、公司控制的结构化主体情况) During the reporting period, the company did not control any structured entities - The company had no controlled structured entities during the reporting period[71](index=71&type=chunk) [Risks Faced by the Company and Countermeasures](index=24&type=section&id=十、公司面临的风险和应对措施) The company faces industry policy and market competition, financial risks, and technology iteration and investment risks; to address these, it plans to enhance profitability and market competitiveness through policy research, consolidating advantageous markets, expanding new businesses, optimizing cash flow, adjusting debt structure, accelerating R&D commercialization, and increasing R&D investment - The broadcasting industry is significantly affected by policies, requiring the company to continuously monitor policy dynamics and adjust business strategies, leveraging audio-video service technology reserves to promote 5G, virtual reality, and metaverse application collaborations[72](index=72&type=chunk) - Net profit attributable to shareholders for the reporting period was **-RMB 7.43 million**, with non-recurring net profit being negative for seven consecutive years, posing a risk of negative net assets[73](index=73&type=chunk) - The company will focus on "increasing profitability, optimizing structure, reducing pressure, and promoting transformation" by exploring new business markets, optimizing project management, strengthening accounts receivable management, suspending non-core business investments, adjusting debt structure, applying for government subsidies, promoting equity financing, and accelerating R&D commercialization to address financial risks[73](index=73&type=chunk)[74](index=74&type=chunk) - The industry in which the company operates experiences rapid technological iteration; failure to keep pace or insufficient R&D investment will lead to a decline in market competitiveness, thus the company will continue to increase R&D investment, focusing on ultra-HD, spatial computing, and smart industry applications, as well as talent development[74](index=74&type=chunk)[75](index=75&type=chunk) [Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period](index=25&type=section&id=十一、报告期内接待调研、沟通、采访等活动登记表) During the reporting period, the company did not host any research, communication, or interview activities - The company did not host any research, communication, or interview activities during the reporting period[76](index=76&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=25&type=section&id=十二、市值管理制度和估值提升计划的制定落实情况) The company has not disclosed its market value management system and valuation enhancement plan - The company has not disclosed its market value management system and valuation enhancement plan[77](index=77&type=chunk)[78](index=78&type=chunk) [Implementation of "Quality and Return Dual Improvement" Action Plan](index=26&type=section&id=十三、“质量回报双提升”行动方案贯彻落实情况) The company has not disclosed an announcement regarding its "Quality and Return Dual Improvement" action plan - The company has not disclosed an announcement regarding its "Quality and Return Dual Improvement" action plan[78](index=78&type=chunk) [Corporate Governance, Environment, and Social Responsibility](index=27&type=section&id=第四节%20公司治理、环境和社会) This section details changes in the company's directors, supervisors, and senior management, profit distribution plans, employee incentive schemes, environmental information disclosure, and social responsibility initiatives [Changes in Directors, Supervisors, and Senior Management](index=27&type=section&id=一、公司董事、监事、高级管理人员变动情况) During the reporting period, there were no changes in the company's directors, supervisors, and senior management, with specific details available in the 2024 annual report - The company's directors, supervisors, and senior management did not change during the reporting period[80](index=80&type=chunk) [Profit Distribution and Capital Reserve to Share Capital Conversion During the Reporting Period](index=27&type=section&id=二、本报告期利润分配及资本公积金转增股本情况) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[81](index=81&type=chunk) [Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=27&type=section&id=三、公司股权激励计划、员工持股计划或其他员工激励措施的实施情况) During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures, nor any implementation thereof - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[82](index=82&type=chunk) [Environmental Information Disclosure](index=28&type=section&id=四、环境信息披露情况) The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[83](index=83&type=chunk) [Social Responsibility Status](index=28&type=section&id=五、社会责任情况) This report does not disclose social responsibility information - This report does not disclose social responsibility information[83](index=83&type=chunk) [Significant Matters](index=29&type=section&id=第五节%20重要事项) This section covers the fulfillment of commitments, non-operating fund occupation, illegal external guarantees, auditor appointments, non-standard audit reports, bankruptcy reorganization, litigation, penalties, integrity status, related party transactions, and major contracts [Fulfillment of Commitments](index=29&type=section&id=一、公司实际控制人、股东、关联方、收购人以及公司等承诺相关方在报告期内履行完毕及截至报告期末超期未履行完毕的承诺事项) During the reporting period, there were no commitments made 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 - During the reporting period, there were no overdue and unfulfilled commitments by the company's commitment-related parties[85](index=85&type=chunk) [Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties](index=29&type=section&id=二、控股股东及其他关联方对上市公司的非经营性占用资金情况) During the reporting period, there was no non-operating occupation of the listed company's funds by the controlling shareholder or other related parties - The company had no non-operating fund occupation by controlling shareholders or other related parties during the reporting period[86](index=86&type=chunk) [Illegal External Guarantees](index=29&type=section&id=三、违规对外担保情况) During the reporting period, the company had no illegal external guarantees - The company had no illegal external guarantees during the reporting period[87](index=87&type=chunk) [Appointment and Dismissal of Accounting Firms](index=29&type=section&id=四、聘任、解聘会计师事务所情况) The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[88](index=88&type=chunk) [Explanation of "Non-Standard Audit Report" by Board of Directors, Supervisory Board, and Audit Committee](index=29&type=section&id=五、董事会、监事会、审计委员会对会计师事务所本报告期“非标准审计报告”的说明) During the reporting period, the company had no "non-standard audit report" - The company had no "non-standard audit report" during the reporting period[89](index=89&type=chunk) [Board of Directors' Explanation of "Non-Standard Audit Report" from Previous Year](index=29&type=section&id=六、董事会对上年度“非标准审计报告”相关情况的说明) During the reporting period, the company had no explanation regarding the "non-standard audit report" from the previous year - The company had no explanation regarding the "non-standard audit report" from the previous year during the reporting period[89](index=89&type=chunk) [Bankruptcy Reorganization Matters](index=29&type=section&id=七、破产重整相关事项) During the reporting period, the company did not undergo any bankruptcy reorganization matters - The company did not undergo any bankruptcy reorganization matters during the reporting period[89](index=89&type=chunk) [Litigation Matters](index=29&type=section&id=八、诉讼事项) The company has a significant contract dispute with Jishi Media Co., Ltd., involving **RMB 23.57 million**, which has been resolved through court mediation, with Jishi Media obligated to pay the contract amount by June 30, 2024, though the case acceptance fee remains unpaid Major Litigation and Arbitration Matters | Basic Information of Litigation (Arbitration) | Amount Involved (RMB 10,000) | Provision for Estimated Liabilities Formed | Progress of Litigation (Arbitration) | Outcome and Impact of Litigation (Arbitration) | Status of Judgment Enforcement for Litigation (Arbitration) | | :--- | :--- | :--- | :--- | :--- | :--- | | Contract dispute with Jishi Media Co., Ltd. | 2,357.02 | No | Already mediated by Jingyue District People's Court | Jishi Media Co., Ltd. was ordered to pay the company contract funds of RMB 23,570,159.88 and case acceptance fees of RMB 79,825 by June 30, 2024 | As of the disclosure date, contract funds of RMB 23,570,159.88 have been received, but the case acceptance fee of RMB 79,825 has not yet been received | [Penalties and Rectification Status](index=30&type=section&id=九、处罚及整改情况) During the reporting period, the company had no penalties or rectification situations - The company had no penalties or rectification situations during the reporting period[91](index=91&type=chunk) [Integrity Status](index=30&type=section&id=十、公司及其控股股东、实际控制人的诚信状况) During the reporting period, the company, its controlling shareholder, and actual controller had no unfulfilled effective court judgments or large overdue debts - The company, its controlling shareholder, and actual controller maintain good integrity, with no unfulfilled effective court judgments or similar situations[92](index=92&type=chunk) [Significant Related Party Transactions](index=30&type=section&id=十一、重大关联交易) During the reporting period, the company had no related party transactions related to daily operations, asset or equity acquisitions/disposals, joint external investments, related party creditor-debtor relationships, or dealings with financial companies - The company had no related party transactions related to daily operations during the reporting period[92](index=92&type=chunk) - The company had no related party transactions involving asset or equity acquisitions or disposals during the reporting period[93](index=93&type=chunk) - The company had no related party creditor-debtor relationships during the reporting period[95](index=95&type=chunk) [Major Contracts and Their Performance](index=31&type=section&id=十二、重大合同及其履行情况) During the reporting period, the company had no entrustment, contracting, leasing, or significant guarantee matters; in its daily operations, the company has a major contract with China Construction Co., Ltd. totaling **RMB 200.92 million**, which is currently being executed, with **RMB 180.13 million** in sales revenue cumulatively recognized - The company had no entrustment, contracting, or leasing situations during the reporting period[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) - The company had no significant guarantee situations during the reporting period[102](index=102&type=chunk) Major Contracts in Daily Operations | Company Party to Contract | Counterparty to Contract | Total Contract Amount (RMB 10,000) | Contract Performance Progress | Sales Revenue Recognized in Current Period (RMB 10,000) | Cumulative Sales Revenue Recognized (RMB 10,000) | Accounts Receivable Collection Status | Significant Risk of Contract Non-Performance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shenzhen Avit Technology Co., Ltd. | China Construction Co., Ltd. | 20,092.00 | In progress | 4,065.35 | 18,013.20 | 16,563.89 | No | [Explanation of Other Significant Matters](index=32&type=section&id=十三、其他重大事项的说明) 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[106](index=106&type=chunk) [Significant Matters of Company Subsidiaries](index=32&type=section&id=十四、公司子公司重大事项) During the reporting period, the company's subsidiaries had no significant matters - The company's subsidiaries had no significant matters during the reporting period[107](index=107&type=chunk) [Share Changes and Shareholder Information](index=33&type=section&id=第六节%20股份变动及股东情况) This section details changes in the company's share capital, securities issuance, shareholder numbers, and holdings, as well as changes in directors', supervisors', and senior management's shareholdings and controlling shareholder information [Share Changes](index=33&type=section&id=一、股份变动情况) During the reporting period, the company's restricted shares decreased by 16,681, unrestricted shares increased by 16,681, and total share capital remained unchanged, primarily due to the release of restricted shares into circulation Share Changes | Item | Quantity Before Change (shares) | Proportion | Increase/Decrease in This Change (shares) | Quantity After Change (shares) | Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 60,445,246 | 14.03% | -16,681 | 60,428,565 | 14.03% | | Of which: Shares held by domestic natural persons | 60,445,246 | 14.03% | -16,681 | 60,428,565 | 14.03% | | II. Unrestricted Shares | 370,412,272 | 85.97% | 16,681 | 370,428,953 | 85.97% | | Of which: RMB ordinary shares | 370,412,272 | 85.97% | 16,681 | 370,428,953 | 85.97% | | III. Total Shares | 430,857,518 | 100.00% | 0 | 430,857,518 | 100.00% | - During the reporting period, the reasons for share changes, approval status, transfer status, and progress of share repurchases were either not applicable or did not occur[111](index=111&type=chunk) [Securities Issuance and Listing](index=34&type=section&id=二、证券发行与上市情况) 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[111](index=111&type=chunk) [Company Shareholder Numbers and Shareholding Status](index=34&type=section&id=三、公司股东数量及持股情况) As of the end of the reporting period, the total number of ordinary shareholders was 34,703; among the top ten shareholders, Chen Kunjiang was the largest shareholder with 18.63% of shares, having pledged **7.1 million** shares, and held **20,062,441** unrestricted circulating shares - As of the end of the reporting period, the total number of ordinary shareholders was **34,703**[112](index=112&type=chunk) Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at Period End (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chen Kunjiang | Domestic Natural Person | 18.63% | 80,249,765 | 60,187,324 | 20,062,441 | Pledged | 7,100,000 | | Qiu Jiafen | Domestic Natural Person | 1.57% | 6,770,898 | 4,450,800 | 6,770,898 | Not Applicable | 0 | | Liu Jinxia | Domestic Natural Person | 0.84% | 3,600,000 | 3,599,900 | 3,600,000 | Not Applicable | 0 | | MORGAN STANLEY & CO. INTERNATIONAL PLC. | Overseas Legal Person | 0.83% | 3,557,864 | 1,932,052 | 3,557,864 | Not Applicable | 0 | | BARCLAYS BANK PLC | Overseas Legal Person | 0.80% | 3,433,630 | 2,637,013 | 3,433,630 | Not Applicable | 0 | - The company is unaware if the aforementioned shareholders have any关联关系 (related party relationships) or are acting in concert[113](index=113&type=chunk) - Shareholders Yang Xu and Liu Yong hold shares through both ordinary securities accounts and margin trading accounts[114](index=114&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=36&type=section&id=四、董事、监事和高级管理人员持股变动) During the reporting period, there were no changes in the shareholdings of the company's directors, supervisors, and senior management, as detailed in the 2024 annual report - The company's directors, supervisors, and senior management had no changes in shareholdings during the reporting period[115](index=115&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=36&type=section&id=五、控股股东或实际控制人变更情况) During the reporting period, there were no changes in the company's controlling shareholder or actual controller - The company's controlling shareholder and actual controller did not change during the reporting period[116](index=116&type=chunk) [Preferred Share Information](index=37&type=section&id=六、优先股相关情况) During the reporting period, the company had no preferred shares - The company had no preferred shares during the reporting period[117](index=117&type=chunk) [Bond-Related Information](index=38&type=section&id=第七节%20债券相关情况) This section confirms that the company had no bond-related activities or outstanding bonds during the reporting period [Bond-Related Information](index=38&type=section&id=债券相关情况) During the reporting period, the company had no bond-related information - The company had no bond-related information during the reporting period[119](index=119&type=chunk) [Financial Report](index=39&type=section&id=第八节%20财务报告) This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on accounting policies, tax items, and financial statement items [Audit Report](index=39&type=section&id=一、审计报告) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[121](index=121&type=chunk) [Financial Statements](index=39&type=section&id=二、财务报表) This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting the financial position and operating results at the end of the reporting period - Financial statements include the consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated cash flow statement, parent company cash flow statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[122](index=122&type=chunk)[126](index=126&type=chunk)[130](index=130&type=chunk)[134](index=134&type=chunk)[137](index=137&type=chunk)[140](index=140&type=chunk)[142](index=142&type=chunk)[148](index=148&type=chunk) [Company Basic Information](index=56&type=section&id=三、公司基本情况) Shenzhen Avit Technology Co., Ltd. was established on October 22, 2000, with a registered capital of **RMB 430.86 million**, and Chen Kunjiang as its legal representative; the company operates in the digital TV industry, focusing on R&D and sales of digital TV equipment and software, value-added telecom services, and video surveillance products, with a history of multiple capital changes, most recently a private placement in 2022 - The company's Chinese name is 深圳市佳创视讯技术股份有限公司, established on October 22, 2000, with a registered capital of **RMB 430.86 million**, and Chen Kunjiang as its legal representative[153](index=153&type=chunk) - The company operates in the digital TV industry, with a main business scope including R&D and system integration of digital TV multi-functional equipment and software, value-added telecom services, and video surveillance products[159](index=159&type=chunk) - The company's historical evolution shows multiple capital changes, most recently a private placement of **17,757,518** shares in 2022, increasing capital by **RMB 17,757,518.00**[159](index=159&type=chunk) [Basis of Financial Statement Preparation](index=57&type=section&id=四、财务报表的编制基础) The company's financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and relevant regulations from the China Securities Regulatory Commission, using the accrual basis of accounting, and measured at historical cost except for financial instruments - Financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and CSRC's "Information Disclosure and Compilation Rules for Companies Issuing Securities to the Public No. 15"[162](index=162&type=chunk) - Accounting is based on the accrual method, and except for certain financial instruments, all items are measured at historical cost[162](index=162&type=chunk) - There are no matters or circumstances that would cause significant doubt about the company's ability to continue as a going concern for the 12 months following the end of the reporting period[163](index=163&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=58&type=section&id=五、重要会计政策及会计估计) This section details the company's adherence to enterprise accounting standards, accounting periods, operating cycles, functional currency, materiality criteria, business combinations, consolidated financial statement preparation, financial instruments, and revenue recognition, ensuring transparency and comparability of financial information - The financial statements prepared by the company comply with enterprise accounting standards, accurately and completely reflecting its financial position, operating results, and cash flows[165](index=165&type=chunk) - The accounting year follows the calendar year, from January 1 to December 31 annually[166](index=166&type=chunk) - RMB is the functional currency for the company and its domestic subsidiaries, while Hong Kong Dollar is the functional currency for overseas subsidiaries[168](index=168&type=chunk) - The classification, recognition, and measurement of financial assets are detailed, including those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[185](index=185&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk) - Revenue recognition principles state that revenue is recognized when the customer obtains control of the related goods, and performance progress is determined using either the input method or output method based on the nature of the performance obligation[249](index=249&type=chunk)[250](index=250&type=chunk) - Inventory classifications include work-in-progress, finished goods, and goods in transit, valued using the moving weighted average method and measured at the lower of cost or net realizable value[205](index=205&type=chunk)[206](index=206&type=chunk) [Taxes](index=82&type=section&id=六、税项) This section discloses the company's main tax categories and rates, including VAT, urban maintenance and construction tax, enterprise income tax, and education surcharges; the company benefits from VAT refunds for software and integrated circuit products, receiving **RMB 490,027.59** in refunds this period Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Taxable Value-Added Amount | 13%, 6% | | Urban Maintenance and Construction Tax | Based on Actual Paid Turnover Tax | 7% | | Enterprise Income Tax | Taxable Income for Enterprise Income Tax | 15%, 25% | | Education Surcharge / Local Education Surcharge | Based on Actual Paid Turnover Tax | 3%, 2% | | Profits Tax | Taxable Profits for Profits Tax | 8.25% | Taxable Entities with Different Enterprise Income Tax Rates | Taxable Entity Name | Income Tax Rate | | :--- | :--- | | Shenzhen Avit Technology Co., Ltd. | 15% | | Shaanxi Fenteng Interactive Network Technology Co., Ltd. | 15% | | Avit Technology (Hong Kong) Trading Co., Ltd. | 8.25% | | Other Subsidiaries | 25% | - The company received **RMB 490,027.59** in VAT refunds for software and integrated circuit products this period, compared to **RMB 80,128.82** in the prior year period[274](index=274&type=chunk) [Notes to Consolidated Financial Statement Items](index=83&type=section&id=七、合并财务报表项目注释) This section provides detailed notes on various consolidated financial statement items, including assets, liabilities, owners' equity, income, costs, and expenses, explaining the reasons for changes in period-end balances compared to period-beginning balances - Monetary funds at period-end were **RMB 11.42 million**, a **65.42%** decrease from the beginning of the year, primarily due to operating expenditures during the reporting period[275](index=275&type=chunk) - Accounts receivable at period-end were **RMB 207.86 million**, a **29.58%** increase from the beginning of the year, mainly due to increased revenue from project acceptance and slower customer collections during the reporting period[288](index=288&type=chunk)[291](index=291&type=chunk) - Inventories at period-end were **RMB 30.36 million**, a **52.19%** decrease from the beginning of the year, primarily due to revenue recognition and inventory transfer for some large projects upon acceptance during the reporting period[332](index=332&type=chunk) - Other non-current assets at period-end were **RMB 11.03 million**, a **115.82%** increase from the beginning of the year, mainly due to some contracts entering the warranty period and reclassification of accounts receivable to other non-current assets[378](index=378&type=chunk) - Investment income for the current reporting period was **-RMB 2.05 million**, primarily due to the amount of obligations assumed from equity-accounted external investments during the reporting period[432](index=432&type=chunk) [Research and Development Expenses](index=120&type=section&id=八、研发支出) During the reporting period, the company's total R&D investment was **RMB 8.59 million**, a **35.64%** year-on-year decrease, comprising **RMB 6.95 million** in expensed R&D and **RMB 1.64 million** in capitalized R&D, primarily due to reduced labor costs from personnel structure optimization in the prior year R&D Expenditure | Item | Amount in Current Period (RMB) | Amount in Prior Period (RMB) | | :--- | :--- | :--- | | Labor Costs | 6,899,211.07 | 9,988,712.68 | | Travel Expenses | 220,072.17 | 203,895.33 | | Depreciation and Amortization | 229,580.02 | 194,138.54 | | Office Expenses | 39,907.64 | 36,828.37 | | Materials and Tools | 529.63 | 12,725.59 | | Other | 1,205,594.83 | 2,917,875.18 | | **Total** | **8,594,895.36** | **13,354,175.69** | | Of which: Expensed R&D | 6,951,999.26 | 9,742,091.44 | | Capitalized R&D | 1,642,896.10 | 3,612,084.25 | - R&D investment decreased by **35.64%** year-on-year, primarily due to reduced labor costs from personnel structure optimization in the prior year[41](index=41&type=chunk) Capitalized R&D Projects | Project | Beginning Balance (RMB) | Amount Increased in Current Period (Internal Development Expenditure) (RMB) | Recognized as Intangible Assets (RMB) | Transferred to Current Period Profit/Loss (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Ultra-Low Latency Live Streaming System Project | 0 | 781,051.86 | 0 | 338,582.65 | 442,469.21 | | Ultra-HD Video Platform System Project | 0 | 1,586,548.60 | 0 | 541,210.50 | 1,045,338.10 | | XR Content Production Platform System | 1,210,770.69 | 250,156.14 | 1,365,859.48 | 95,067.35 | 0 | | **Total** | **1,210,770.69** | **2,617,756.60** | **1,365,859.48** | **974,860.50** | **1,487,807.31** | [Changes in Consolidation Scope](index=121&type=section&id=九、合并范围的变更) During the reporting period, the company did not experience changes in its consolidation scope due to non-same-control business combinations, same-control business combinations, reverse acquisitions, or disposal of subsidiaries - During the reporting period, the company did not experience non-same-control business combinations[473](index=473&type=chunk) - During the reporting period, the company did not experience same-control business combinations[477](index=477&type=chunk) - During the reporting period, the company did not experience reverse acquisitions[480](index=480&type=chunk) - During the reporting period, the company did not experience transactions or events leading to loss of control over subsidiaries[480](index=480&type=chunk) [Interests in Other Entities](index=125&type=section&id=十、在其他主体中的权益) This section discloses the company's interests in subsidiaries, joint ventures, and associates; the company has seven subsidiaries, including Shanghai Midiya Cloud Technology Co., Ltd., which is consolidated despite 40% ownership due to the company's control over its operations, and two significant associates: Henan Smart Zhongyuan Information Technology Co., Ltd. and Beijing Huanjing Shuyan Technology Co., Ltd Composition of Enterprise Group | Subsidiary Name | Registered Capital (RMB) | Business Nature | Shareholding Proportion (Direct) | Acquisition Method | | :--- | :--- | :--- | :--- | :--- | | Shenzhen Avit Software Co., Ltd. | 20,000,000.00 | Software development industry | 100.00% | Investment Establishment | | Avit Technology (Hong Kong) Trading Co., Ltd. | HKD 543,809.00 | Import and export trade of system products and software | 100.00% | Investment Establishment | | Shenzhen Avit Technology Culture Media Co., Ltd. | 50,350,000.00 | Technical consulting | 100.00% | Investment Establishment | | Shenzhen Illusion Line Technology Co., Ltd. | 50,000,000.00 | Operating virtual reality (metaverse) related businesses; developing and operating VR live streaming application platforms, etc. | 100.00% | Investment Establishment | | Shanghai Midiya Cloud Technology Co., Ltd. | 10,000,000.00 | R&D of cloud video communication systems and operation of business platforms | 40.00% | Investment Establishment | | Beijing Yijing Technology Co., Ltd. | 100,000,000.00 | VR video and panoramic video content shooting, editing, conversion, and related technology development for broadcasting network transmission | 100.00% | Investment Establishment | | Shaanxi Fenteng Interactive Network Technology Co., Ltd. | 10,000,000.00 | Gaming products and services | 100.00% | Business Combination Not Under Common Control | - Although Shanghai Midiya Cloud Technology Co., Ltd. is 40% owned, the company has control over it and includes it in the consolidation scope due to its ability to recommend executive directors and determine business plans and investment proposals[481](index=481&type=chunk)[483](index=483&type=chunk) Significant Associates | Associate Name | Main Operating Location | Business Nature | Shareholding Proportion (Direct) | Accounting Method | | :--- | :--- | :--- | :--- | :--- | | Henan Smart Zhongyuan Information Technology Co., Ltd. | Henan Province | Construction and operation of broadcasting network digital TV platforms, construction and operation of smart broadcasting platforms | 35.00% | Equity Method | | Beijing Huanjing Shuyan Technology Co., Ltd. | Beijing | Technical services, technology development, technical consulting, software development; animation game development; network technical services, etc. | 36.00% | Equity Method | [Government Grants](index=131&type=section&id=十一、政府补助) During the reporting period, the company's government grants were primarily recognized in other income, totaling **RMB 4,048,776.61** this period, compared to **RMB 2,667,273.38** in the prior period; government grants in deferred income had an ending balance of **RMB 198,098.22** Government Grants Included in Current Period Profit/Loss | Accounting Item | Amount in Current Period (RMB) | Amount in Prior Period (RMB) | | :--- | :--- | :--- | | Other Income | 4,048,776.61 | 2,667,273.38 | Liability Items Involving Government Grants | Accounting Item | Beginning Balance (RMB) | New Grants in Current Period (RMB) | Amount Included in Non-Operating Income in Current Period (RMB) | Amount Transferred to Other Income in Current Period (RMB) | Ending Balance (RMB) | Related to Assets/Income | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 225,248.10 | 0.00 | 0.00 | 27,149.88 | 198,098.22 | Related to Assets/Income | [Risks Related to Financial Instruments](index=132&type=section&id=十二、与金融工具相关的风险) The company faces market risks (exchange rate risk, interest rate risk, other price risks), credit risk, and liquidity risk, which it manages through sensitivity analysis, holding diversified equity portfolios, and monitoring cash and borrowing utilization - The company's main financial instruments include accounts receivable, notes receivable, borrowings, and accounts payable, with risk management aiming to balance risk and return while minimizing negative impacts[501](index=501&type=chunk) - The company faces market risks (exchange rate risk, interest rate risk, other price risks); exchange rate risk is primarily related to HKD and USD, while interest rate risk mainly arises from RMB-denominated fixed-rate bank borrowings[502](index=502&type=chunk)[503](index=503&type=chunk)[504](index=504&type=chunk) - Credit risk primarily stems from financial assets, with the company measuring impairment provisions based on expected credit losses, considering historical statistical data and forward-looking information[508](index=508&type=chunk) - Liquidity risk is managed by maintaining sufficient cash and cash equivalents and monitoring bank borrowing utilization; as of June 30, 2025, the company had an unused bank borrowing facility of **RMB 11.00 million**[509](index=509&type=chunk) [Disclosure of Fair Value](index=134&type=section&id=十三、公允价值的披露) This section discloses the fair value of the company's assets and liabilities measured at fair value at period-end, explaining the valuation methods, with short-term notes receivable valued at their face amount - For notes receivable held, due to their short term, the company determines their fair value using the face amount[515](index=515&type=chunk) [Related Parties and Related Party Transactions](index=135&type=section&id=十四、关联方及关联交易) The company has no parent company, with natural person Chen Kunjiang as the ultimate controlling party; this section discloses subsidiaries, associates, and other related parties, detailing related party leases, guarantees, and fund transfers during the reporting period, including Chen Kunjiang providing guarantees for multiple company borrowings and engaging in fund transfers with the company - The company has no parent company, and natural person Chen Kunjiang, holding **18.63%** of the company's equity, is the ultimate controlling party[518](index=518&type=chunk) The Company as the Guaranteed Party (Related Party Guarantees) | Guarantor | Guaranteed Amount (RMB) | Guarantee Start Date | Guarantee End Date | Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Chen Kunjiang | 2,000,000.00 | 2024-01-15 | 2025-01-23 | Yes | | Chen Kunjiang | 10,000,000.00 | 2024-03-05 | 2025-02-04 | Yes | | Chen Kunjiang | 10,000,000.00 | 2023-11-08 | 2026-11-07 | No | | Chen Kunjiang and Family | 15,000,000.00 | 2023-12-20 | 2025-08-29 | No | | Chen Kunjiang, Chen Xusheng | 60,000,000.00 | 2024-01-15 | 2026-03-27 | No | | Chen Kunjiang, Shenzhen Hi-Tech Investment Guarantee Co., Ltd. | 12,000,000.00 | 2024-08-15 | 2025-08-15 | No | | Chen Kunjiang | 16,000,000.00 | 2024-11-26 | 2025-11-20 | No | | Chen Kunjiang | 20,000,000.00 | 2025-03-07 | 2026-03-07 | No | | Chen Kunjiang | 10,000,000.00 | 2025-04-03 | 2026-04-03 | No | Related Party Fund Borrowings (Borrowed In) | Related Party | Borrowed Amount (RMB) | Start Date | End Date | Description | | :--- | :--- | :--- | :--- | :--- | | Chen Kunjiang | 1,000,000.00 | 2024-06-27 | 2024-07-31 | Repaid | | Chen Kunjiang | 1,400,000.00 | 2024-06-27 | 2024-11-06 | Repaid | | Chen Kunjiang | 500,000.00 | 2024-06-27 | 2025-01-23 | Repaid | | Chen Kunjiang | 200,000.00 | 2024-06-27 | 2025-03-07 | Repaid | | Chen Kunjiang | 5,900,000.00 | 2024-06-27 | 2025-07-26 | Unrepaid | | Chen Kunjiang | 13,000,000.00 | 2022-12-28 | 2025-07-26 | Unrepaid | Related Party Fund Borrowings (Lent Out) | Related Party | Lent Amount (RMB) | Start Date | End Date | Description | | :--- | :--- | :--- | :--- | :--- | | Chen Kunjiang | 9,000,000.00 | 2024-06-27 | 2025-07-26 | Unrepaid | Key Management Personnel Remuneration | Item | Amount in Current Period (RMB) | Amount in Prior Period (RMB) | | :--- | :--- | :--- | | Key Management Personnel Remuneration | 1,963,889.74 | 2,910,936.13 | Related Party Payables | Item Name | Related Party | Ending Book Balance (RMB) | Beginning Book Balance (RMB) | | :--- | :--- | :--- | :--- | | Other Payables | Chen Kunjiang | 28,582,073.96 | 28,940,415.28 | [Commitments and Contingencies](index=139&type=section&id=十五、承诺及或有事项) During the reporting period, the company had no significant commitments or important contingencies requiring disclosure - During the reporting period, the company had no significant commitments[538](index=538&type=chunk) - The company had no important contingencies requiring disclosure[538](index=538&type=chunk) [Post-Balance Sheet Events](index=140&type=section&id=十六、资产负债表日后事项) After the reporting period, the company experienced no significant non-adjusting events, profit distribution, sales returns, or other post-balance sheet events - After the reporting period, the company experienced no significant non-adjusting events, profit distribution, sales returns, or other post-balance sheet events[540](index=540&type=chunk) [Other Significant Matters](index=140&type=section&id=十七、其他重要事项) During the reporting period, the company had no other significant matters such as prior period accounting error corrections, debt restructuring, asset swaps, annuity plans, discontinued operations, or segment information - During the reporting period, the company had no other significant matters such as prior period accounting error corrections, debt restructuring, asset swaps, annuity plans, discontinued operations, or segment information[541](index=541&type=chunk)[542](index=542&type=chunk)[543](index=543&type=chunk)[545](index=545&type=chunk)[546](index=546&type=chunk)[547](index=547&type=chunk) [Notes to Parent Company Financial Statement Major Items](index=142&type=section&id=十八、母公司财务报表主要项目注释) This section provides detailed notes on major items in the parent company's financial statements, including accounts receivable, other receivables, long-term equity investments, operating revenue and cost, and investment income, explaining the reasons for changes in period-end balances compared to period-beginning balances - Parent company accounts receivable at period-end were **RMB 199.36 million**, a **31.96%** increase from the beginning of the year, primarily due to increased revenue from project acceptance and slower customer collections[550](index=550&type=chunk)[552](index=552&type=chunk) - Parent company other receivables at period-end were **RMB 9.02 million**, a **56.50%** decrease from the beginning of the year, primarily due to the repayment of subsidiary loans[562](index=562&type=chunk)[564](index=564&type=chunk) - Parent company long-term equity investments at period-end had a book value of **RMB 70.72 million**, a **0.81%** increase from the beginning of the year, primarily due to increased investment in associates during the current period[578](index=578&type=chunk) - Parent company operating revenue for the current period was **RMB 79.70 million**, a **25.75%** increase from the prior period[582](index=582&type=chunk) - Parent company investment income for the current period was **-RMB 1.33 million**, primarily due to negative investment income from long-term equity investments accounted for using the equity method[587](index=587&type=chunk) [Supplementary Information](index=151&type=section&id=十九、补充资料) This section provides supplementary information, including a detailed statement of non-recurring gains and losses, net asset return, and earnings per share; during the reporting period, the company's total non-recurring gains and losses amounted to **RMB 4,207,434.61**, with a weighted average return on net assets of **-31.73%** and basic earnings per share of **-0.0172 RMB/share** Current Period Non-Recurring Gains and Losses Details | Item | Amount (RMB) | | :--- | :--- | | Disposal Gains/Losses on Non-Current Asset

Part I Important Notice, Table of Contents, and Definitions [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's shares are under 'ST' risk warning due to a disclaimer of opinion on 2024 internal control audit and a CSRC investigation; no dividends or bonus shares will be distributed this period - The company's stock trading has been subject to other risk warnings (ST) by the Shenzhen Stock Exchange due to a **disclaimer of opinion on the 2024 financial report's internal control audit**[4](index=4&type=chunk) - The company is currently under investigation by the China Securities Regulatory Commission (CSRC) for suspected **information disclosure violations** in its periodic reports, potentially facing **mandatory delisting for major violations**[4](index=4&type=chunk) - The company plans **not to distribute cash dividends, bonus shares, or convert capital reserves into share capital**[5](index=5&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines key terms like company names, subsidiaries, shareholders, and reporting periods to ensure consistent understanding of the report - The company's full name is "Lifang Shuke Co, Ltd", abbreviated as "Lifang Shuke"[10](index=10&type=chunk) - The controlling shareholder is Hefei Lingcen Technology Consulting Partnership (Limited Partnership), and the ultimate controlling person is Gu Yutang[10](index=10&type=chunk) - The reporting period refers to **January 1, 2025, to June 30, 2025**[10](index=10&type=chunk) Part II Company Profile and Key Financial Indicators [I. Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) The company's stock ticker changed to "ST Lifang" (300344) and has been subject to other risk warnings since April 30, 2025, due to a disclaimer of opinion on its 2024 internal control audit - The company's stock ticker has changed from "Lifang Shuke" to "**ST Lifang**", with stock code **300344**[12](index=12&type=chunk)[17](index=17&type=chunk) - The company has been subject to other risk warnings since **April 30, 2025**, due to a **disclaimer of opinion on the 2024 financial report's internal control audit**[17](index=17&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=7&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) Operating revenue decreased by 7.63%, net loss expanded by 17.61%, and operating cash flow turned negative, while net assets declined Key Accounting Data and Financial Indicators (Current Period vs. Prior Year) | Indicator | Current Period (RMB) | Prior Year (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 124,148,363.96 | 134,399,503.50 | -7.63% | | Net Profit Attributable to Shareholders of Listed Company | -39,896,931.40 | -33,921,743.49 | -17.61% | | Net Cash Flow from Operating Activities | -30,517,021.33 | 18,832,949.69 | -262.04% | | Basic Earnings Per Share (RMB/share) | -0.0622 | -0.0529 | -17.58% | | Weighted Average Return on Net Assets | -16.14% | -9.33% | -6.81% | | **Period-End Indicators vs. Prior Year-End** | | | | | Total Assets | 381,138,214.21 | 378,990,441.50 | 0.57% | | Net Assets Attributable to Shareholders of Listed Company | 236,620,112.98 | 257,716,774.46 | -8.19% | [VI. Non-Recurring Gains and Losses](index=7&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) Non-recurring gains and losses totaled RMB 53,315.95, primarily from asset disposal, government grants, and other non-operating items Non-Recurring Gains and Losses | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -6,914.29 | | Government Grants Included in Current Profit/Loss | 9,680.00 | | Other Non-Operating Income and Expenses Apart from the Above | -2,196.43 | | Other Gains and Losses Meeting the Definition of Non-Recurring Items | 47,405.45 | | Less: Income Tax Impact | -5,341.22 | | **Total** | **53,315.95** | Part III Management Discussion and Analysis [I. Principal Businesses During the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company is a digital technology cloud service provider, focusing on industrial digitalization through smart hardware/software, digital intelligent services, and mobile information - The company's principal businesses include **smart hardware and software (digital cloud infrastructure), digital intelligent services (industry applications and solutions), and mobile information services**[26](index=26&type=chunk) - Smart hardware and software business includes proprietary R&D, platform sales, third-party hardware/software sales, and cloud services; **four products are listed in Anhui Province's independent industrial software promotion catalog, and six are certified as Anhui Xinchuang products**[27](index=27&type=chunk) - The digital intelligent services segment provides **digital delivery (BIM, CIM) and customized digital intelligent platform development and solutions**, applied in benchmark projects like the Hong Kong-Zhuhai-Macau Bridge and Guangzhou Baiyun International Airport[28](index=28&type=chunk) - Mobile information services primarily offer **SMS notification services to telecom operators, enterprise clients, and cloud vendors**[29](index=29&type=chunk) [(I) Principal Businesses and Products](index=9&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E5%8F%8A%E4%BA%A7%E5%93%81) The company provides smart hardware/software, digital intelligent services (BIM/CIM), and mobile information services, with proprietary products certified and applied - The company's self-developed hardware-software integrated IaaS products obtained a "Value-Added Telecommunications Business License", and a subsidiary, Supercube Data Technology Co, Ltd, was established to enhance **independent server business R&D and competitive advantages**[27](index=27&type=chunk) - The company's self-developed Lifang Cloud PAI and Lifang Operations Management Platform obtained "Computer Software Copyright Registration Certificates", with the operations platform deeply applying **BIM technology for smart building management**[28](index=28&type=chunk)[29](index=29&type=chunk) [(II) Business Model](index=10&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company's business model is driven by R&D and sales, providing comprehensive solutions through a customer-centric marketing platform and a dual R&D structure - The company has established a **unified marketing management platform** integrating customer development, demand collection, order delivery, payment management, and customer service information management modules[30](index=30&type=chunk) - R&D is structured into a **product R&D center (core technologies and common requirements)** and a **project development center (specific project requirements)**, with product R&D achievements reducing project implementation costs[30](index=30&type=chunk) [(III) Industry Development Stage and Cyclical Characteristics](index=10&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E8%A1%8C%E4%B8%9A%E5%8F%91%E5%B1%95%E9%98%B6%E6%AE%B5%E3%80%81%E5%91%A8%E6%9C%9F%E6%80%A7%E7%89%B9%E7%82%B9) China's digitalization and informatization levels are relatively low, presenting significant growth opportunities, with strong national policy support for the digital economy

致欧家居科技股份有限公司2025年半年度报告全文 致欧家居科技股份有限公司 2025年半年度报告 1 2025年8月 致欧家居科技股份有限公司2025年半年度报告全文 2 致欧家居科技股份有限公司2025年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实、准确、 完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 公司负责人宋川、主管会计工作负责人刘书洲及会计机构负责人(会计主管人员)李晓 岑声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 本半年度报告涉及未来计划等前瞻性描述，不构成公司对投资者的实质承诺。 公司面临的风险和应对措施详见本报告"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"，敬请投资者关注相关内容，并注意投资风险。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 3 | 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 9 | | 第三节 | 管理层讨论与分析 14 | ...