佛山遥望科技股份有限公司 2025 年半年度报告全文 佛山遥望科技股份有限公司 2025 年半年度报告 2025 年 8 月 1 佛山遥望科技股份有限公司 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。 公司负责人谢如栋、主管会计工作负责人李刚及会计机构负责人(会计主 管人员)阮伟明声明：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。 公司在本报告"第三节 管理层讨论与分析"中"十、公司面临的风险和 应对措施"部分描述了公司未来经营中可能面临的风险，敬请广大投资者注 意查阅，敬请投资者注意投资风险。 公司计划不派发现金红利，不送红股，不以公积金转增股本。 | | 1 2 | | --- | --- | | D . 1 | 1 œ | | 第二节 | 公司简介和主要财务指标 6 | | --- | --- | | 第三节 | 管理层讨论与分析 9 | | 第四节 | 公司治理、环境和社会 28 | | ...

[Section I Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Section%20I%20Important%20Notice%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides crucial disclaimers, outlines the report's structure, lists reference documents, and defines key terms for clarity [Important Notice](index=2&type=section&id=Important%20Notice) The company's board, supervisory board, and senior management guarantee the report's accuracy, while the financial officers confirm the financial statements' integrity, with all directors attending the review meeting - Company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false records, misleading statements, or major omissions[4](index=4&type=chunk) - Company's responsible person Zhao Qun, head of accounting work He Yanjie, and head of accounting department Liu Yali declare that the financial report is true, accurate, and complete[4](index=4&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) The report's clear table of contents lists eight main chapters covering important notices, company profile, MD&A, corporate governance, significant matters, share changes, bond information, and financial reports, with page numbers indicated - The report comprises **eight main chapters**, structured clearly for easy reference[7](index=7&type=chunk) - Chapter content covers company overview, financial performance, management analysis, corporate governance, significant events, and financial reports[7](index=7&type=chunk) [List of Reference Documents](index=4&type=section&id=List%20of%20Reference%20Documents) Reference documents include financial statements signed and sealed by the legal representative and accounting officers, original announcements disclosed on the CSRC-designated website, and the original semi-annual report, all available at the company's securities department - Reference documents include financial statements bearing the signatures and seals of the company's legal representative, head of accounting work, and head of accounting department[9](index=9&type=chunk) - All original company documents and announcements publicly disclosed on the CSRC-designated website during the reporting period are also included in the reference documents[10](index=10&type=chunk) - These documents are available at the company's securities department[13](index=13&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section defines common terms used in the report, including company names, key subsidiaries, governance bodies, and industry-specific medical terminology, ensuring accurate understanding of the content - "Company", "the Company", and "Qianyuan Pharmaceutical" all refer to Shanxi Qianyuan Pharmaceutical Group Co., Ltd[15](index=15&type=chunk) - Several holding and wholly-owned subsidiaries are listed, such as Qianyuan Haisheng, Baoling Group, and Qianyuan Enshi[15](index=15&type=chunk) - Medical industry specific terms like "generic drugs", "anti-infective drugs", "gene preservation", "GMP", and "consistency evaluation" are explained[15](index=15&type=chunk) [Section II Company Profile and Key Financial Indicators](index=6&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company's basic information, contact details, and a summary of its key financial performance and indicators for the reporting period [I. Company Profile](index=6&type=section&id=I.%20Company%20Profile) The company, Shanxi Qianyuan Pharmaceutical Group Co., Ltd., is listed on the Shenzhen Stock Exchange under stock code 300254, with Zhao Qun as its legal representative - Company stock abbreviation: Qianyuan Pharmaceutical, stock code: **300254**[17](index=17&type=chunk) - Stock exchange for listing: Shenzhen Stock Exchange[17](index=17&type=chunk) - The company's legal representative is Zhao Qun[17](index=17&type=chunk) [II. Contact Persons and Information](index=6&type=section&id=II.%20Contact%20Persons%20and%20Information) The company's Board Secretary is Yu Junxian and Securities Affairs Representative is Xue Yuanyuan, both located at No. 2 Cuiwei Street, Datong Economic and Technological Development Zone, with provided contact details - Board Secretary is Yu Junxian, Securities Affairs Representative is Xue Yuanyuan[18](index=18&type=chunk) - Contact address: No. 2 Cuiwei Street, Biotechnology Innovation Industrial Park, Datong Economic and Technological Development Zone[18](index=18&type=chunk) - Contact phone: **0352-6116426**, fax: **0352-6116452**[18](index=18&type=chunk) [III. Other Information](index=6&type=section&id=III.%20Other%20Information) During the reporting period, there were no changes in the company's registered address, office address, website, email, information disclosure website, media name, or registration status, with details available in the 2024 annual report - The company's registered address, office address and postal code, website, email, etc., remained unchanged during the reporting period[19](index=19&type=chunk) - Information disclosure and availability locations remained unchanged during the reporting period[20](index=20&type=chunk) - The company's registration status remained unchanged during the reporting period[21](index=21&type=chunk)[22](index=22&type=chunk) [IV. Key Accounting Data and Financial Indicators](index=7&type=section&id=IV.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This reporting period saw a **7.01% decrease** in operating revenue, a **98.86% significant drop** in net profit attributable to shareholders, a **124.99% decline** in non-recurring net profit, and a **62.82% decrease** in net cash flow from operating activities, alongside reductions in total assets and net assets Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue | 372,995,932.54 | 401,112,573.00 | -7.01% | | Net Profit Attributable to Shareholders of Listed Company | 380,868.67 | 33,502,484.50 | -98.86% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | -5,011,716.56 | 20,055,202.16 | -124.99% | | Net Cash Flow from Operating Activities | 22,483,410.56 | 60,473,663.78 | -62.82% | | Basic Earnings Per Share (Yuan/share) | 0.0016 | 0.1387 | -98.85% | | Diluted Earnings Per Share (Yuan/share) | 0.0016 | 0.1387 | -98.85% | | Weighted Average Return on Net Assets | 0.14% | 5.43% | -5.29% | | **End of Current Reporting Period (Yuan)** | **End of Prior Year (Yuan)** | **Change from End of Prior Year** | | | Total Assets | 1,496,381,241.42 | 1,547,725,078.17 | -3.32% | | Net Assets Attributable to Shareholders of Listed Company | 253,595,732.99 | 342,998,882.45 | -26.07% | - Net profit after deducting the impact of share-based payments was **7,576,850.54 Yuan**[23](index=23&type=chunk) [V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=7&type=section&id=V.%20Differences%20in%20Accounting%20Data%20Under%20Domestic%20and%20Overseas%20Accounting%20Standards) During the reporting period, the company reported no differences in net profit and net assets between financial statements prepared under international or overseas accounting standards and those prepared under Chinese accounting standards - The company reported no differences in net profit and net assets between financial statements disclosed under international accounting standards and those under Chinese accounting standards during the reporting period[24](index=24&type=chunk) - The company reported no differences in net profit and net assets between financial statements disclosed under overseas accounting standards and those under Chinese accounting standards during the reporting period[25](index=25&type=chunk) [VI. Non-recurring Gains and Losses and Their Amounts](index=8&type=section&id=VI.%20Non-recurring%20Gains%20and%20Losses%20and%20Their%20Amounts) Total non-recurring gains and losses for the current period amounted to **5,392,585.23 Yuan**, primarily from disposal of non-current assets, government grants, and capital occupation fees, while certain recurring government grants were classified as ordinary income Non-recurring Gains and Losses and Their Amounts | Item | Amount (Yuan) | Explanation | | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets (including the write-off portion of asset impairment provisions) | 7,755,156.75 | | | Government grants recognized in current profit or loss (excluding those closely related to the company's normal operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on the company's profit or loss) | 994,930.43 | | | Capital occupation fees charged to non-financial enterprises recognized in current profit or loss | 113,207.54 | | | Reversal of impairment provisions for individually tested receivables | 2,500.00 | | | Other non-operating income and expenses apart from the above items | -4,255,800.81 | | | Less: Income tax impact | -551,202.03 | | | Minority interest impact (after tax) | -231,389.29 | | | **Total** | **5,392,585.23** | | - The company classified government grants closely related to normal business operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on the company's profit or loss (**10,401,989.65 Yuan** for January-June 2025) as recurring gains and losses[27](index=27&type=chunk) [Section III Management Discussion and Analysis](index=9&type=section&id=Section%20III%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's primary business operations, core competencies, financial performance, investment activities, and the risks and opportunities it faces [I. Main Business Activities During the Reporting Period](index=9&type=section&id=I.%20Main%20Business%20Activities%20During%20the%20Reporting%20Period) The company primarily engages in R&D, production, and sales of pharmaceuticals and health foods, along with medical diagnostic and gene preservation services, experiencing a **7.01% revenue decline** and a **98.86% net profit drop** due to tax adjustments, reduced gross profit, and increased equity incentive expenses - The company operates in the pharmaceutical industry, primarily engaged in the R&D, production, and sales of pharmaceuticals and health foods, as well as medical diagnostic, gene preservation, and commercial services[29](index=29&type=chunk) Company's Main Financial Performance in H1 2025 | Indicator | Amount (10,000 Yuan) | Year-on-year Change | | :--- | :--- | :--- | | Operating Revenue | 37,299.59 | -7.01% | | Net Profit Attributable to Shareholders of Listed Company | 38.09 | -98.86% | - The decline in performance was mainly due to a subsidiary's supplementary payment of corporate income tax and late fees, a decrease in gross profit due to lower operating revenue, and an increase in equity incentive expenses year-on-year[32](index=32&type=chunk) [1. Company's Main Business](index=9&type=section&id=1.%20Company's%20Main%20Business) The company's core business encompasses R&D, production, and sales of pharmaceuticals and health foods, alongside medical diagnostic and gene preservation services, offering a diverse range of pharmaceutical products and key health food items like Baoling Yunbao Oral Liquid - The company operates in the pharmaceutical industry, primarily engaged in the R&D, production, and sales of pharmaceuticals and health foods, as well as medical diagnostic, gene preservation, and commercial services[29](index=29&type=chunk) - Pharmaceutical product categories include anti-infective drugs, anti-allergic drugs, urinary system drugs, smoking cessation drugs, pediatric drugs, respiratory system drugs, antidepressant drugs, kidney disease drugs, pharmaceutical raw materials, and intermediates[29](index=29&type=chunk) - The company's health food products primarily include Baoling Yunbao Oral Liquid, and medical health services include medical testing and gene preservation services[29](index=29&type=chunk) [2. Company's Main Products and Their Uses](index=9&type=section&id=2.%20Company's%20Main%20Products%20and%20Their%20Uses) The company's product portfolio includes anti-infective, anti-allergic, urinary system, smoking cessation, pediatric, respiratory, antidepressant, kidney disease, novel oral anticoagulant, and antihypertensive drugs, along with health foods and DNA gene preservation services, each with specific indications or uses Company's Main Products and Their Uses | Therapeutic Area | Product Name | Product Use | | :--- | :--- | :--- | | Anti-infective Drugs | Fosfomycin Trometamol Granules | Used for respiratory tract infections, lower urinary tract infections (such as cystitis, urethritis), intestinal infections, and skin and soft tissue infections caused by susceptible pathogens | | Anti-allergic Drugs | Ebastine Tablets | Indicated for allergic rhinitis with or without allergic conjunctivitis; symptomatic treatment of chronic idiopathic urticaria | | Urinary System Drugs | Tamsulosin Hydrochloride Extended-Release Capsules | Urinary obstruction caused by benign prostatic hyperplasia | | Smoking Cessation Drugs | Varenicline Tartrate Tablets | Indicated for smoking cessation in adults | | Pediatric Drugs | Montmorillonite Powder | Indicated for acute and chronic diarrhea in adults and children | | Pediatric Drugs | Vitamin AD Drops | Indicated for the prevention and treatment of vitamin A and D deficiencies | | Respiratory System Drugs | Ambroxol Hydrochloride Dispersible Tablets | Indicated for the treatment of acute and chronic respiratory diseases with abnormal sputum secretion and impaired sputum clearance | | Antidepressant Drugs | Fluoxetine Hydrochloride Capsules | Indicated for depression, obsessive-compulsive disorder, bulimia nervosa: as an adjunct to psychotherapy to reduce binge eating and purging behaviors | | Antidepressant Drugs | Sertraline Hydrochloride Tablets | Used for the treatment of symptoms associated with depression, including伴随焦虑、有或无躁狂史的抑郁症。疗效满意后，继续服用可有效地防止抑郁症的复发和再发。也用于治疗强迫症。疗效满意后，继续服用舍曲林可有效地防止强迫症初始症状的复发。 | | Kidney Disease Drugs | Cinacalcet Hydrochloride Tablets | Used for the treatment of secondary hyperparathyroidism (SHPT) in chronic kidney disease (CKD) patients undergoing dialysis, and also for hypercalcemia in patients with parathyroid carcinoma | | Novel Oral Anticoagulants | Apixaban Tablets | Primarily used in adult patients undergoing elective hip or knee replacement surgery to prevent venous thromboembolic events (VTE); used for the treatment of adult deep vein thrombosis (DVT) and pulmonary embolism (PE); used in adult patients with non-valvular atrial fibrillation with one or more risk factors to reduce the risk of stroke and systemic embolism | | Novel Oral Anticoagulants | Rivaroxaban Tablets | Primarily used in adult patients undergoing elective hip or knee replacement surgery to prevent venous thromboembolism (VTE) | | Antihypertensive Drugs | Perindopril Arginine Tablets | Indicated for the treatment of all types of hypertension and heart failure | | Health Foods | Baoling Brand Yunbao Oral Liquid | Improves nutritional anemia, enhances immunity | | Services | DNA Gene Preservation | Primarily used as raw material for gene therapy, assisting in disease diagnosis and treatment | [3. Company's Business Model](index=10&type=section&id=3.%20Company's%20Business%20Model) The company operates on a "production-to-order" model, adhering strictly to GMP standards, with centralized procurement, and a sales strategy combining distributors and promotional service providers for pharmaceuticals, primarily distributors for health foods, and direct sales for raw materials and services - Procurement Model: The procurement department is solely responsible, with bulk items centralized procured, strict selection and assessment of suppliers, and reasonable control of procurement inventory[31](index=31&type=chunk) - Production Model: Adopts a "production-to-order" approach, where the production department arranges production based on sales plans, strictly adhering to GMP requirements to ensure product quality and safety[31](index=31&type=chunk) - Sales Model: Pharmaceutical preparations use a combination of distributor sales and academic promotion by service providers; health foods are primarily sold through distributors with supplementary direct sales; raw materials and service businesses mainly adopt a direct sales model[31](index=31&type=chunk) [4. Company's Key Operations During the Reporting Period](index=10&type=section&id=4.%20Company's%20Key%20Operations%20During%20the%20Reporting%20Period) In H1 2025, the company's operating revenue was **372.99 million Yuan**, a **7.01% decrease**, and net profit attributable to shareholders was **0.38 million Yuan**, a **98.86% decrease**, primarily due to a subsidiary's supplementary tax payments, reduced gross profit, and increased equity incentive expenses, while actively advancing sales, R&D, production, and internal management H1 2025 Key Financial Data | Indicator | Amount (10,000 Yuan) | Year-on-year Change | | :--- | :--- | :--- | | Operating Revenue | 37,299.59 | -7.01% | | Net Profit Attributable to Shareholders of Listed Company | 38.09 | -98.86% | - The decline in performance was mainly due to a subsidiary's supplementary payment of corporate income tax and late fees, a decrease in gross profit due to lower operating revenue, and an increase in equity incentive expenses year-on-year[32](index=32&type=chunk) - The company focused on market growth breakthroughs in sales, accelerated the layout of first-generic drug commercialization in R&D, strengthened basic management and promoted energy saving and process optimization in production, and enhanced management efficiency through digitalization and compliance in internal management[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) [5. Industry Development Overview](index=10&type=section&id=5.%20Industry%20Development%20Overview) In 2025, the pharmaceutical industry is transitioning from policy-driven growth to intrinsic value, with expanding development space driven by an aging population and health consumption upgrades, while national regulations optimize review processes and strengthen supervision, and the company's R&D projects are progressing well - In 2025, the pharmaceutical industry is transforming from "policy dividend-driven" to "intrinsic value-driven", with continuous expansion of industry development space[35](index=35&type=chunk) - The National Medical Products Administration optimized drug and medical device review and approval processes, strengthened full lifecycle supervision, and issued anti-monopoly guidelines to reinforce industry compliance boundaries[35](index=35&type=chunk)[36](index=36&type=chunk) Company's R&D Project Progress During the Reporting Period | No. | Project Name | Registration Category | Indications | Research Progress | | :--- | :--- | :--- | :--- | :--- | | 1 | Ferric Maltol Capsules | Chemical Drug Class 3 | For the treatment of iron deficiency anemia in adults | Clinical trial approval notice obtained | | 4 | Evocalcet Tablets | Chemical Drug Class 4 | Treatment of secondary hyperparathyroidism (SHPT) in chronic kidney disease (CKD) patients on maintenance dialysis | Drug registration acceptance notice obtained | | 8 | Ebastine API | - | Used for allergic rhinitis with or without allergic conjunctivitis; symptomatic treatment of chronic idiopathic urticaria | Chemical API marketing application approval notice obtained in May 2025 | Information on Drugs with Sales Exceeding 10% of the Company's Main Business Revenue in the Reporting Period and Prior Year Period | Drug Name | Indications or Functions | Registration Category | | :--- | :--- | :--- | | Fosfomycin Trometamol Granules | Used for respiratory tract infections, lower urinary tract infections, intestinal infections, and skin and soft tissue infections caused by susceptible pathogens | Chemical Drug Class 6 | | Tamsulosin Hydrochloride Extended-Release Capsules | Used for urinary obstruction caused by benign prostatic hyperplasia | Chemical Drug Class 4 | [II. Analysis of Core Competencies](index=11&type=section&id=II.%20Analysis%20of%20Core%20Competencies) The company's core competencies stem from its "high-end pharmaceutical core, precision medicine and health food wings" strategy, featuring diversified product advantages, a stable self-operated sales team and national marketing network, stringent GMP-compliant quality control, and a strong R&D innovation capability primarily through independent research - The company has established a development strategy centered on "high-end pharmaceuticals as the core, with precision medicine and health foods as wings", offering a product line covering anti-infective drugs, urinary system drugs, smoking cessation drugs, pediatric drugs, and other areas[38](index=38&type=chunk) - The company possesses a stable self-operated sales team and network, employing a market-demand-oriented product marketing strategy, and has established an effective national marketing network through academic conferences and other means[40](index=40&type=chunk) - The company strictly adheres to GMP standards, controlling product quality comprehensively from R&D to after-sales service, and reinforcing routine GMP management through daily monitoring and special inspections[40](index=40&type=chunk) - The company has a professional R&D team and a comprehensive technological innovation system, with most consistency evaluation and generic drug projects developed independently, and has obtained multiple drug registration approvals and API marketing approval notices[41](index=41&type=chunk) [III. Analysis of Main Business Operations](index=12&type=section&id=III.%20Analysis%20of%20Main%20Business%20Operations) During the reporting period, the company's main business operating revenue decreased by **7.01%**, and net profit attributable to shareholders significantly dropped by **98.86%**, primarily due to a subsidiary's supplementary tax payments, increased financial expenses, and higher income tax expenses, with anti-infective and urinary system drugs remaining key revenue drivers Year-on-Year Changes in Key Financial Data | Indicator | Current Reporting Period (Yuan) | Prior Year Period (Yuan) | Year-on-year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 372,995,932.54 | 401,112,573.00 | -7.01% | | | Financial Expenses | 11,826,091.90 | 7,622,780.01 | 55.14% | Mainly due to increased bank loan interest during the reporting period | | Income Tax Expenses | 19,230,101.30 | 1,546,497.51 | 1,143.46% | Mainly due to supplementary payment of prior year income tax and other matters during the reporting period | | Net Cash Flow from Operating Activities | 22,483,410.56 | 60,473,663.78 | -62.82% | Mainly due to increased tax payments and decreased cash received from sales of goods and services during the reporting period | - During the reporting period, subsidiary Tibet Qianyuan made supplementary payments of corporate income tax of **8.4942 million Yuan** and corresponding late fees of **5.5406 million Yuan** for 2019-2023, totaling **14.0348 million Yuan**, impacting the net profit attributable to shareholders by **8.4444 million Yuan** in 2025[44](index=44&type=chunk) Information on Products or Services Accounting for Over 10% of the Company's Main Business Revenue | Product or Service | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | Year-on-year Change in Operating Revenue | Year-on-year Change in Operating Cost | Year-on-year Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Anti-infective Drugs | 67,774,360.00 | 14,816,273.98 | 78.14% | -15.21% | -8.80% | -1.54% | | Urinary System Drugs | 103,258,251.36 | 28,046,106.53 | 72.84% | 18.73% | 14.14% | 1.09% | [IV. Analysis of Non-Core Business Operations](index=13&type=section&id=IV.%20Analysis%20of%20Non-Core%20Business%20Operations) Non-core business contributions to total profit primarily came from non-operating income (government support funds) and other income (government grants), while non-operating expenses (late fees and non-current asset write-offs) were the main negative impacts, with investment income and asset impairment having minor effects Impact of Non-Core Business on Total Profit | Item | Amount (Yuan) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 113,156.56 | 0.32% | Mainly capital occupation fees received from non-financial enterprises | No | | Asset Impairment | 911,697.76 | 2.56% | Mainly reversal of inventory depreciation provisions | No | | Non-operating Income | 9,024,543.49 | 25.38% | Mainly government support funds received | Yes | | Non-operating Expenses | 4,430,200.21 | 12.46% | Mainly late fees and losses from destruction/scrapping of non-current assets | No | | Other Income | 2,349,598.39 | 6.61% | Mainly various government grants received | No | | Credit Impairment Losses | 510,134.82 | 1.43% | Mainly reversal of bad debt provisions for accounts receivable | No | [V. Analysis of Assets and Liabilities](index=13&type=section&id=V.%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, total assets decreased by **3.32%** and net assets attributable to shareholders decreased by **26.07%**, with notable changes including reduced monetary funds due to equity transfer payments, increased construction in progress for new factory renovations, and a significant rise in long-term payables from equity repurchase obligations, while **130.95 million Yuan** of assets are restricted by pledges or mortgages 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 | 92,408,396.19 | 6.18% | 149,518,040.96 | 9.66% | -3.48% | Mainly due to the company's payment of equity transfer payables during the reporting period | | Inventories | 149,943,038.52 | 10.02% | 132,785,588.91 | 8.58% | 1.44% | | | Construction in Progress | 32,893,176.54 | 2.20% | 15,283,785.93 | 0.99% | 1.21% | Mainly due to new factory renovation projects added by the company | | Other Payables | 83,746,414.44 | 5.60% | 165,307,278.88 | 10.68% | -5.08% | Mainly due to a decrease in the company's equity transfer payables at the end of the reporting period | | Long-term Payables | 226,336,400.00 | 15.13% | 129,356,400.00 | 8.36% | 6.77% | Mainly due to an increase in the company's equity repurchase payables at the end of the reporting period | Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (Yuan) | Amount Purchased in Current Period (Yuan) | Amount Sold in Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Receivables Financing | 28,217,773.52 | 90,748,231.00 | 84,674,238.25 | 34,291,766.27 | | **Total Above** | **28,217,773.52** | **90,748,231.00** | **84,674,238.25** | **34,291,766.27** | - As of the end of the reporting period, the total amount of restricted assets was **130,952,244.15 Yuan**, primarily including pledged or frozen monetary funds, intangible assets, investment properties, and fixed assets[53](index=53&type=chunk) - The company's **100% equity** in Hangzhou Baoling Group Co., Ltd., subsidiary Nantong Guangjia Pharmaceutical Co., Ltd.'s **36% equity** in Jiangsu Jiayi Pharmaceutical Co., Ltd., and the company's **30% equity** in Nantong Hengjia Pharmaceutical Co., Ltd. are all restricted due to pledges[53](index=53&type=chunk)[54](index=54&type=chunk) [VI. Analysis of Investment Status](index=15&type=section&id=VI.%20Analysis%20of%20Investment%20Status) The company's investment amount increased by **149.68%** year-on-year, with **228.1251 million Yuan** cumulatively used from two private placements in 2020 and 2021, leaving a balance of **13.5767 million Yuan**, while some fundraising projects were altered or terminated due to market changes or R&D delays, with funds reallocated to new drug R&D or permanent working capital Investment Amount During the Reporting Period | Indicator | Investment Amount in Reporting Period (Yuan) | Investment Amount in Prior Year Period (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 23,039,484.39 | 9,227,675.94 | 149.68% | Overall Use of Raised Funds | Fundraising Year | Fundraising Method | Net Raised Funds (10,000 Yuan) | Total Cumulative Used Raised Funds (10,000 Yuan) | Total Unused Raised Funds (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | | 2020 | Private Placement of Shares | 13,358.06 | 12,939.94 | 651.35 | | 2021 | Private Placement of Shares | 10,409.04 | 9,872.57 | 706.32 | | **Total** | | **23,767.10** | **22,812.51** | **1,357.67** | - The R&D progress of "New Drug R&D Project - Roxadustat and Capsules" has been delayed, with the estimated date of reaching its intended usable state extended to December 2026[63](index=63&type=chunk)[68](index=68&type=chunk) - The "Hangzhou Qianyuan Baoling Pharmaceutical Co., Ltd. Annual Output of 300 Million Tablets Solid Preparation Production Line Technical Transformation Project" has been terminated due to Ebastine Tablets not winning centralized procurement and existing capacity meeting demand, with the remaining raised funds permanently supplementing working capital[63](index=63&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) - Some drug R&D projects were terminated due to the original drug not being approved or intense competition, and the **40.5 million Yuan** R&D investment freed up will be used for other R&D projects[64](index=64&type=chunk)[68](index=68&type=chunk) [VII. Significant Asset and Equity Disposals](index=22&type=section&id=VII.%20Significant%20Asset%20and%20Equity%20Disposals) During the reporting period, the company sold land use rights, properties, and attachments at No. 1378 Heng'an Street, Datong Economic and Technological Development Zone, to Shanxi Shuangyan Pharmaceutical Co., Ltd. for **7.8945 million Yuan** to revitalize assets and optimize its structure, with no significant equity disposals Disposal of Significant Assets | Assets Disposed | Transaction Price (10,000 Yuan) | Related Party Transaction | Counterparty | Impact on Company's Net Profit | Disclosure Date | Disclosure Index | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Land use rights, properties, and buildings/attachments at No. 1378 Heng'an Street, Datong Economic and Technological Development Zone | 789.45 | No | Shanxi Shuangyan Pharmaceutical Co., Ltd. | Favorable for the company to revitalize assets and optimize asset structure | July 03, 2023 | Announcement No.: 2023-057 | - The company had no significant equity disposals during the reporting period[73](index=73&type=chunk) [VIII. Analysis of Major Holding and Participating Companies](index=22&type=section&id=VIII.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) The company's major holding subsidiaries, including Zhejiang Qianyuan Haisheng Pharmaceutical Co., Ltd., Tibet Qianyuan Pharmaceutical Co., Ltd., and Jiangsu Jiayi Pharmaceutical Co., Ltd., significantly impacted the company's net profit during the reporting period, with no acquisitions or disposals of subsidiaries Major Subsidiaries and Participating Companies with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhejiang Qianyuan Haisheng Pharmaceutical Co., Ltd. | Subsidiary | Pharmaceuticals | 20 million Yuan | 368,188,305.91 | 245,804,293.61 | 148,692,065.83 | 36,716,957.65 | 29,848,366.55 | | Tibet Qianyuan Pharmaceutical Co., Ltd. | Subsidiary | Pharmaceuticals | 10 million Yuan | 266,804,313.92 | 45,565,338.56 | 208,066,124.93 | 3,811,592.06 | 2,303,853.50 | | Jiangsu Jiayi Pharmaceutical Co., Ltd. | Subsidiary | Pharmaceuticals | 187.72934737 million Yuan | 377,283,654.48 | 282,629,351.22 | 45,049,327.46 | 18,428,549.46 | 15,664,267.04 | - The company neither acquired nor disposed of any subsidiaries during the reporting period[74](index=74&type=chunk) [IX. Information on Structured Entities Controlled by the Company](index=23&type=section&id=IX.%20Information%20on%20Structured%20Entities%20Controlled%20by%20the%20Company) The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[75](index=75&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=23&type=section&id=X.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces risks from industry policies, drug R&D and consistency evaluation, drug price reductions, and rising raw material costs, which it addresses by actively monitoring policy changes, increasing R&D investment, optimizing product structure, and strengthening cost control and lean production - The company faces industry policy risks, such as healthcare reform policies, the "two-invoice system", and centralized procurement, which could significantly impact its operating environment[75](index=75&type=chunk) - The company faces drug R&D and consistency evaluation risks, with the possibility of failure or prolonged cycles for new drug development and generic drug consistency evaluation[75](index=75&type=chunk) - The company faces drug price reduction risks, as national medical insurance cost control and centralized volume-based procurement policies continue to compress drug profit margins[76](index=76&type=chunk) - The company faces risks of rising raw material costs, as increased national requirements for drug production standards and environmental standards may lead to higher raw material prices[76](index=76&type=chunk) - Countermeasures include actively assessing market changes, increasing high-end generic drug R&D investment, optimizing product structure, implementing cost control, and fully adopting lean production[75](index=75&type=chunk)[76](index=76&type=chunk) [XI. Registration Form for Research, Communication, Interview, and Other Activities During the Reporting Period](index=23&type=section&id=XI.%20Registration%20Form%20for%20Research%2C%20Communication%2C%20Interview%2C%20and%20Other%20Activities%20During%20the%20Reporting%20Period) During the reporting period, the company conducted three investor relations activities, including two online platform exchanges and one on-site visit, primarily discussing corporate governance, development strategy, operational status, and the marketing of the smoking cessation drug varenicline tartrate tablets - On April 30, 2025, the company engaged in online platform communication with individual investors, discussing corporate governance, development strategy, and operational status[79](index=79&type=chunk) - On May 15, 2025, the company conducted an on-site visit at its Shanghai office, hosting institutional investors to primarily discuss the marketing of the smoking cessation drug varenicline tartrate tablets[79](index=79&type=chunk) - On May 20, 2025, the company participated in the Shanxi jurisdiction listed companies' online collective investor reception day via an online platform, discussing corporate governance, development strategy, and operational status[79](index=79&type=chunk) [XII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=24&type=section&id=XII.%20Formulation%20and%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) The company did not formulate a market value management system or disclose a valuation enhancement plan during the reporting period - The company has not formulated a market value management system[80](index=80&type=chunk) - The company has not disclosed a valuation enhancement plan[80](index=80&type=chunk) [XIII. Implementation of "Quality and Return Dual Improvement" Action Plan](index=24&type=section&id=XIII.%20Implementation%20of%20%22Quality%20and%20Return%20Dual%20Improvement%22%20Action%20Plan) The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan during the reporting period - The company did not disclose an announcement regarding the "Quality and Return Dual Improvement" action plan[80](index=80&type=chunk) [Section IV Corporate Governance, Environment, and Society](index=25&type=section&id=Section%20IV%20Corporate%20Governance%2C%20Environment%2C%20and%20Society) This section details changes in the company's directors, supervisors, and senior management, profit distribution plans, implementation of equity incentive plans, environmental information disclosure, and social responsibility initiatives [I. Changes in Company Directors, Supervisors, and Senior Management](index=25&type=section&id=I.%20Changes%20in%20Company%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, Supervisory Board Chairman Zhu Haibo and Supervisors Zhang Xuhong and Zhang Hua resigned on May 7, 2025, due to work transfers - Supervisory Board Chairman Zhu Haibo resigned on May 07, 2025, due to work transfer[82](index=82&type=chunk) - Supervisors Zhang Xuhong and Zhang Hua resigned on May 07, 2025, due to work transfer[82](index=82&type=chunk) [II. Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Reporting Period](index=25&type=section&id=II.%20Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20in%20the%20Current%20Reporting%20Period) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[83](index=83&type=chunk) [III. Implementation of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=25&type=section&id=III.%20Implementation%20of%20Company%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) In 2024, the company implemented a restricted stock incentive plan, granting **7.05 million restricted shares** to 50 grantees at **4.73 Yuan/share**, and subsequently repurchased and cancelled **0.35 million shares** due to three grantees' departures, with **6.70 million shares** remaining outstanding under the plan, representing **2.70%** of total share capital - The company reviewed and approved the "2024 Restricted Stock Incentive Plan (Draft)" and its summary on May 16 and June 3, 2024[84](index=84&type=chunk) - The incentive plan proposed to grant **7.05 million Class I restricted shares** to 50 grantees at a grant price of **4.73 Yuan/share**, with the grant registration completed on July 25, 2024[84](index=84&type=chunk)[85](index=85&type=chunk) - On September 6, 2024, due to the departure of **3 grantees**, the company repurchased and cancelled **0.35 million restricted shares**[86](index=86&type=chunk) - As of the end of the reporting period, the total number of underlying shares involved in all valid equity incentive plans was **6.70 million shares**, accounting for **2.70%** of the company's total share capital at period-end[86](index=86&type=chunk) [IV. Environmental Information Disclosure](index=26&type=section&id=IV.%20Environmental%20Information%20Disclosure) The company and its three major subsidiaries (Zhejiang Qianyuan Haisheng Pharmaceutical Co., Ltd., Hangzhou Qianyuan Baoling Pharmaceutical Co., Ltd., and Jiangsu Jiayi Pharmaceutical Co., Ltd.) are all listed as legally required environmental information disclosure enterprises and have publicly disclosed their reports on their respective provincial ecological environment department systems - The company and its major subsidiaries, Zhejiang Qianyuan Haisheng Pharmaceutical Co., Ltd., Hangzhou Qianyuan Baoling Pharmaceutical Co., Ltd., and Jiangsu Jiayi Pharmaceutical Co., Ltd., are all included in the list of enterprises required to disclose environmental information by law[87](index=87&type=chunk) - Each subsidiary has publicly disclosed its reports on the enterprise environmental information disclosure system of the Zhejiang Provincial Ecological Environment Department or Jiangsu Provincial Ecological Environment Department[87](index=87&type=chunk) [V. Social Responsibility](index=26&type=section&id=V.%20Social%20Responsibility) The company demonstrates a strong sense of social responsibility by actively protecting shareholder and creditor rights, safeguarding employee welfare, maintaining commercial integrity with suppliers and consumers, and participating in social welfare initiatives, while ensuring compliant governance and contributing to society - The company strictly abides by laws and regulations, continuously improves its corporate governance structure, and effectively safeguards the legitimate rights and interests of its shareholders and creditors[88](index=88&type=chunk) - The company legally protects employees' legitimate rights and interests, focuses on employee health and safety, establishes a comprehensive compensation management system, and emphasizes talent development and professional quality training[88](index=88&type=chunk) - The company adheres to the business philosophy of "quality first, integrity", achieving mutual benefit with suppliers, customers, and consumers, and providing safe and effective medicines[90](index=90&type=chunk) - The company actively participates in social welfare undertakings, supporting local education, culture, science, health, and employment, caring for vulnerable groups, and paying taxes according to law[90](index=90&type=chunk) [Section V Significant Matters](index=28&type=section&id=Section%20V%20Significant%20Matters) This section covers the fulfillment of commitments by related parties, non-operating fund occupation, illegal external guarantees, auditor appointments, explanations for non-standard audit reports, bankruptcy reorganization, litigation, penalties, integrity status, significant related party transactions, and major contracts [I. Fulfillment of Commitments by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During the Reporting Period and Unfulfilled Commitments at Period-End](index=28&type=section&id=I.%20Fulfillment%20of%20Commitments%20by%20Actual%20Controller%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20During%20the%20Reporting%20Period%20and%20Unfulfilled%20Commitments%20at%20Period-End) During the reporting period, company director and senior management Zhao Qun and senior management Yu Junxian strictly fulfilled their share lock-up commitments from the initial public offering, and commitments under the 2024 restricted stock incentive plan are being normally fulfilled, with no overdue unfulfilled commitments at period-end - Zhao Qun, as a company director and senior management, strictly adhered to the share lock-up commitments made during the initial public offering, with no violations reported as of the end of the reporting period[92](index=92&type=chunk) - Yu Junxian, as a company senior management and other core personnel, strictly adhered to the share lock-up commitments made during the initial public offering, with no violations reported as of the end of the reporting period[92](index=92&type=chunk) - The commitments made by the company and the grantees under the 2024 restricted stock incentive plan are being normally fulfilled[92](index=92&type=chunk) - Commitments fulfilled on time: **Yes**[93](index=93&type=chunk) [II. Non-Operating Fund Occupation by Controlling Shareholders and Other Related Parties of the Listed Company](index=29&type=section&id=II.%20Non-Operating%20Fund%20Occupation%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties%20of%20the%20Listed%20Company) During the reporting period, there was no non-operating occupation of the listed company's funds by controlling shareholders or other related parties - During the reporting period, there was no non-operating occupation of the listed company's funds by controlling shareholders or other related parties[94](index=94&type=chunk) [III. Irregular External Guarantees](index=29&type=section&id=III.%20Irregular%20External%20Guarantees) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[95](index=95&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=29&type=section&id=IV.%20Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[96](index=96&type=chunk) [V. Explanations by the Board of Directors, Supervisory Board, and Audit Committee Regarding the Accounting Firm's "Non-Standard Audit Report" for the Current Reporting Period](index=29&type=section&id=V.%20Explanations%20by%20the%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20and%20Audit%20Committee%20Regarding%20the%20Accounting%20Firm's%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Current%20Reporting%20Period) This explanation is not applicable for the current reporting period as the company's semi-annual financial report was not audited - Not applicable[97](index=97&type=chunk) [VI. Board of Directors' Explanation Regarding the "Non-Standard Audit Report" for the Previous Year](index=29&type=section&id=VI.%20Board%20of%20Directors'%20Explanation%20Regarding%20the%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Previous%20Year) This explanation is not applicable for the current reporting period - Not applicable[97](index=97&type=chunk) [VII. Bankruptcy and Reorganization Matters](index=29&type=section&id=VII.%20Bankruptcy%20and%20Reorganization%20Matters) The company had no bankruptcy or reorganization-related matters during the reporting period - The company had no bankruptcy or reorganization-related matters during the reporting period[97](index=97&type=chunk) [VIII. Litigation Matters](index=29&type=section&id=VIII.%20Litigation%20Matters) The company had no significant litigation or arbitration matters, nor any other litigation matters, during the reporting period - The company had no significant litigation or arbitration matters during the reporting period[98](index=98&type=chunk) - The company had no other litigation matters during the reporting period[99](index=99&type=chunk) [IX. Penalties and Rectification](index=30&type=section&id=IX.%20Penalties%20and%20Rectification) The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[99](index=99&type=chunk) [X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=30&type=section&id=X.%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) During the reporting period, there were no issues concerning the integrity status of the company, its controlling shareholder, or its actual controller - During the reporting period, there were no issues concerning the integrity status of the company, its controlling shareholder, or its actual controller[100](index=100&type=chunk) [XI. Significant Related Party Transactions](index=30&type=section&id=XI.%20Significant%20Related%20Party%20Transactions) 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 other significant related party transactions with affiliated financial companies - The company had no related party transactions related to daily operations during the reporting period[100](index=100&type=chunk) - The company had no related party transactions involving asset or equity acquisitions/disposals during the reporting period[101](index=101&type=chunk) - The company had no related party creditor-debtor relationships during the reporting period[103](index=103&type=chunk) - The company had no other significant related party transactions during the reporting period[106](index=106&type=chunk) [XII. Significant Contracts and Their Fulfillment](index=31&type=section&id=XII.%20Significant%20Contracts%20and%20Their%20Fulfillment) The company had no entrustment, contracting, or leasing matters during the reporting period, but provided several significant guarantees for subsidiaries, totaling **225 million Yuan**, representing **88.72%** of its net assets, and also signed an asset sale contract with Shanxi Shuangyan Pharmaceutical Co., Ltd. for land use rights and properties - The company had no entrustment, contracting, or leasing situations during the reporting period[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) Company's Guarantee Situation for Subsidiaries | Name of Guaranteed Party | Guarantee Limit (10,000 Yuan) | Actual Guarantee Amount (10,000 Yuan) | Guarantee Type | Fulfilled | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhejiang Qianyuan Haisheng Pharmaceutical Co., Ltd. | 5,000 | 3,200 | Joint and several liability guarantee | Yes | Yes | | Hangzhou Qianyuan Baoling Pharmaceutical Co., Ltd. | 4,000 | 3,500 | Joint and several liability guarantee | No | No | | Zhejiang Qianyuan Haisheng Pharmaceutical Co., Ltd. | 4,000 | 4,000 | Joint and several liability guarantee | No | No | | Nantong Guangjia Pharmaceutical Co., Ltd. | 15,000 | 15,000 | Joint and several liability guarantee | No | Yes | | **Total Actual Guarantee Balance for Subsidiaries at Period-End** | **23,000** | **22,500** | | | | | **Proportion of Total Actual Guarantee Amount to Company's Net Assets** | | | | | **88.72%** | - The company signed an asset sale contract with Shanxi Shuangyan Pharmaceutical Co., Ltd. to sell land use rights, properties, and attachments for a transaction price of **66.1681 million Yuan**[114](index=114&type=chunk) [XIII. Explanation of Other Significant Matters](index=34&type=section&id=XIII.%20Explanation%20of%20Other%20Significant%20Matters) During the reporting period, the company approved resolutions to revise its Articles of Association, waive pre-emptive rights for Jiayi Pharmaceutical and sign a shareholder agreement, establish the "Operating Management Executive Committee Work Rules" and appoint members, and revise certain management systems, while also noting that accumulated losses have reached one-third of paid-in capital and a "Directors and Senior Management Departure Management System" was formulated - The company approved resolutions to revise the "Articles of Association" and complete industrial and commercial change registration, as well as to waive pre-emptive rights for Jiayi Pharmaceutical and sign a shareholder agreement with new shareholders[116](index=116&type=chunk) - The company approved resolutions including the "2024 Annual Board of Directors' Work Report", "2024 Annual Report and its Summary", and "Company's 2024 Annual Financial Settlement Report"[116](index=116&type=chunk) - The company approved resolutions to formulate the "Operating Management Executive Committee Work Rules", appoint members of the Operating Management Executive Committee, and revise certain company management systems[116](index=116&type=chunk) - The company's accumulated losses have reached **one-third of its paid-in capital**, and it has formulated the "Directors and Senior Management Departure Management System"[117](index=117&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=34&type=section&id=XIV.%20Significant%20Matters%20of%20Company%20Subsidiaries) During the reporting period, the company's subsidiary, Jiangsu Jiayi Pharmaceutical Co., Ltd., successfully passed its re-certification as a high-tech enterprise - Subsidiary Jiangsu Jiayi Pharmaceutical Co., Ltd. has successfully passed its re-certification as a high-tech enterprise[118](index=118&type=chunk) [Section VI Share Changes and Shareholder Information](index=35&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital, securities issuance, shareholder numbers, top ten shareholders, changes in director, supervisor, and senior management shareholdings, and any changes in controlling shareholders or actual controllers [I. Share Capital Changes](index=35&type=section&id=I.%20Share%20Capital%20Changes) During the reporting period, the company's total share capital remained unchanged at **248,318,563 shares**, with an increase of **30,000 restricted shares** due to former Supervisory Board Chairman Zhu Haibo's departure and a corresponding decrease in unrestricted shares, with detailed restricted share information for major shareholders provided Share Capital Changes | Item | Number Before This Change (shares) | Proportion Before This Change | Increase/Decrease in This Change (shares) | Number After This Change (shares) | Proportion After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 23,071,968 | 9.29% | 30,000 | 23,101,968 | 9.30% | | II. Unrestricted Shares | 225,246,595 | 90.71% | -30,000 | 225,216,595 | 90.70% | | III. Total Shares | 248,318,563 | 100.00% | 0 | 248,318,563 | 100.00% | - The reason for the share change is that former Supervisory Board Chairman Mr. Zhu Haibo's shares are **100% locked** for six months after his departure, as he is prohibited from transferring directly or indirectly held company shares during this period[121](index=121&type=chunk) Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period | Restricted Shares Increased in Current Period | Restricted Shares at End of Period | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Zhao Qun | 10,276,419 | 0 | 10,276,419 | Senior management lock-up shares, 2024 restricted stock incentive lock-up shares | | Huang Lequn | 4,098,795 | 0 | 4,098,795 | Senior management lock-up shares, 2024 restricted stock incentive lock-up shares | | Zhu Haibo | 90,000 | 30,000 | 120,000 | Supervisor lock-up shares | [II. Securities Issuance and Listing](index=37&type=section&id=II.%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[126](index=126&type=chunk) [III. Number of Shareholders and Shareholding Structure](index=37&type=section&id=III.%20Number%20of%20Shareholders%20and%20Shareholding%20Structure) At the end of the reporting period, the total number of common shareholders was **22,001**, with Weng Zhanguo holding the largest stake at **6.35%**, and Zhao Qun and Huang Lequn acting as parties in concert, while some shareholders held company shares through margin trading and securities lending - The total number of common shareholders at the end of the reporting period was **22,001**[127](index=127&type=chunk) Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at End of Reporting Period (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Weng Zhanguo | Domestic Natural Person | 6.35% | 15,772,409 | 0 | 15,772,409 | | Zhao Qun | Domestic Natural Person | 5.52% | 13,701,892 | 10,276,419 | 3,425,473 | | Huang Lequn | Overseas Natural Person | 2.20% | 5,465,060 | 4,098,795 | 1,366,265 | - Among the top 10 common shareholders, shareholders Zhao Qun and Huang Lequn are parties acting in concert[128](index=128&type=chunk) - Some of the top 10 common shareholders held company shares through margin trading and securities lending services[128](index=128&type=chunk) [IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=39&type=section&id=IV.%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, there were no significant changes in the shareholdings of the company's directors, supervisors, and senior management, with only the shareholdings of the resigned supervisors Zhu Haibo, Zhang Xuhong, and Zhang Hua recorded, where Zhu Haibo held **120,000 shares** at period-end Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Status | Shares Held at Beginning of Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Zhu Haibo | Chairman of Supervisory Board | Resigned | 120,000 | 120,000 | | Zhang Xuhong | Supervisor | Resigned | 0 | 0 | | Zhang Hua | Supervisor | Resigned | 0 | 0 | | **Total** | -- | -- | **120,000** | **120,000** | [V. Changes in Controlling Shareholder or Actual Controller](index=39&type=section&id=V.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[131](index=131&type=chunk) - The company's actual controller remained unchanged during the reporting period[131](index=131&type=chunk) [VI. Preferred Share Information](index=39&type=section&id=VI.%20Preferred%20Share%20Information) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[131](index=131&type=chunk) [Section VII Bond-Related Information](index=40&type=section&id=Section%20VII%20Bond-Related%20Information) This section confirms that the company had no bond-related matters during the reporting period [Bond-Related Information](index=40&type=section&id=Bond-Related%20Information) The company had no bond-related matters during the reporting period - Not applicable[133](index=133&type=chunk) [Section VIII Financial Report](index=41&type=section&id=Section%20VIII%20Financial%20Report) This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for both consolidated and parent company levels, along with notes on accounting policies, taxes, and financial risks [I. Audit Report](index=41&type=section&id=I.%20Audit%20Report) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[135](index=135&type=chunk) [II. Financial Statements](index=41&type=section&id=II.%20Financial%20Statements) This section provides the company's 2025 semi-annual consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, comprehensively reflecting the company's financial position, operating results, and cash flows at period-end - Financial statements include 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[136](index=136&type=chunk)[140](index=140&type=chunk)[144](index=144&type=chunk)[147](index=147&type=chunk)[151](index=151&type=chunk)[153](index=153&type=chunk)[159](index=159&type=chunk) - Financial statements are denominated in Yuan and prepared as of June 30, 2025[136](index=136&type=chunk) [1. Consolidated Balance Sheet](index=41&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's consolidated total assets were **1.496 billion Yuan**, a **3.32% decrease** from the beginning of the period, with total current assets of **456.377 million Yuan**, total non-current assets of **1.040 billion Yuan**, total liabilities of **971.205 million Yuan**, and total owners' equity of **525.175 million Yuan** Consolidated Balance Sheet Key Data | Item | Ending Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 1,496,381,241.42 | 1,547,725,078.17 | | Total Liabilities | 971,205,803.89 | 949,545,094.09 | | Total Owners' Equity Attributable to Parent Company | 253,595,732.99 | 342,998,882.45 | | Minority Interests | 271,579,704.54 | 255,181,101.63 | | Total Owners' Equity | 525,175,437.53 | 598,179,984.08 | - Monetary funds ending balance: **92,408,396.19 Yuan**, accounts receivable: **132,674,931.36 Yuan**, inventories: **149,943,038.52 Yuan**[137](index=137&type=chunk) - Short-term borrowings ending balance: **130,919,141.55 Yuan**, long-term borrowings: **167,000,000.00 Yuan**, long-term payables: **226,336,400.00 Yuan**[138](index=138&type=chunk)[139](index=139&type=chunk) [2. Parent Company Balance Sheet](index=43&type=section&id=2.%20Parent%20Company%20Balance%20Sheet) As of June 30, 2025, the parent company's total assets were **1.524 billion Yuan**, an increase from the beginning of the period, with total current assets of **200.390 million Yuan**, total non-current assets of **1.324 billion Yuan**, total liabilities of **827.584 million Yuan**, and total owners' equity of **696.839 million Yuan** Parent Company Balance Sheet Key Data | Item | Ending Balance (Yuan) | Beginning Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 1,524,423,559.24 | 1,488,814,963.55 | | Total Liabilities | 827,584,033.91 | 792,107,634.01 | | Total Owners' Equity | 696,839,525.33 | 696,707,329.54 | - Monetary funds ending balance: **32,771,942.44 Yuan**, accounts receivable: **90,973,567.15 Yuan**, long-term equity investments: **1,236,720,407.04 Yuan**[141](index=141&type=chunk) - Other payables ending balance: **612,550,448.96 Yuan**, non-current liabilities due within one year: **127,125,973.21 Yuan**[142](index=142&type=chunk) [3. Consolidated Income Statement](index=46&type=section&id=3.%20Consolidated%20Income%20Statement) For the first half of 2025, the company's consolidated total operating revenue was **372.995 million Yuan**, a **7.01% year-on-year decrease**, resulting in a net profit of **16.333 million Yuan** and net profit attributable to parent company shareholders of **0.380 million Yuan**, a significant **98.86% year-on-year decrease**, with basic earnings per share of **0.0016 Yuan/share** Consolidated Income Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 372,995,932.54 | 401,112,573.00 | | III. Operating Profit (Loss indicated by "-") | 30,969,258.94 | 41,350,311.02 | | IV. Total Profit (Total loss indicated by "-") | 35,563,602.22 | 50,631,899.44 | | V. Net Profit (Net loss indicated by "-") | 16,333,500.92 | 49,085,401.93 | | 1. Net Profit Attributable to Parent Company Shareholders (Net loss indicated by "-") | 380,868.67 | 33,502,484.50 | | VIII. Earnings Per Share: (I) Basic Earnings Per Share | 0.0016 | 0.1387 | - Income tax expense for the current period was **19,230,101.30 Yuan**, a significant increase from **1,546,497.51 Yuan** in the prior year period[146](index=146&type=chunk) [4. Parent Company Income Statement](index=48&type=section&id=4.%20Parent%20Company%20Income%20Statement) For the first half of 2025, the parent company's operating revenue was **70.984 million Yuan**, a **17.17% year-on-year decrease**, resulting in an operating profit of

成都康华生物制品股份有限公司 2025 年半年度报告全文 公司代码：300841 公司简称：康华生物 成都康华生物制品股份有限公司 2025 年半年度报告 2025-048 2025 年 8 月 1 成都康华生物制品股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容 的真实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担 个别和连带的法律责任。 公司负责人王振滔、主管会计工作负责人吴文年及会计机构负责人(会计 主管人员)刘萍声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 本报告中如有涉及未来的计划、业绩预测等方面的内容，均不构成本公 司对任何投资者及相关人士的承诺，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。 本公司请投资者认真阅读本半年度报告全文，并特别注意下列风险因素： 1、产品研发不达预期的风险 疫苗产品具有研发周期长、技术难度大、研发风险高等特点，同时考虑 到外部环境因素的变化，疫苗产品研发成果能否顺利实现规模化 ...

安徽安利材料科技股份有限公司 2025 年半年度报告全文 安徽安利材料科技股份有限公司 2025 年半年度报告 2025-050 【披露时间】2025 年 8 月 1 安徽安利材料科技股份有限公司 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。 公司负责人姚和平、主管会计工作负责人陈薇薇及会计机构负责人(会计 主管人员)陈薇薇声明：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的，均不构成公司 对任何投资者及相关人士的实质承诺，投资者及相关人士均应对此保持足够 的风险认识，并且应当理解计划、预测与承诺之间的差异。 本公司请投资者认真阅读本半年度报告全文，并特别注意公司面临的风险 因素，公司未来可能存在宏观环境复杂多变，美国加征关税及中美贸易冲突 升级，产能不能充分利用，汇率波动，环保及安全生产，天然气供应和成本 费用波动上涨，信托产品兑付，原材料价格 ...

[Important Notes, 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 crucial disclaimers, outlines the report structure, lists reference documents, and defines key terms for clarity [Important Notes](index=2&type=section&id=重要提示) The Board, Supervisory Board, and senior management guarantee the report's truthfulness and completeness, disclaiming future investment promises and advising risk awareness - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, free from false statements, misleading representations, or major omissions[3](index=3&type=chunk) - The company's responsible person, head of accounting, and head of accounting department declare that the financial report in this semi-annual report is true, accurate, and complete[3](index=3&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=目录) This section lists the report's overall structure, covering company profile, financial metrics, management discussion, governance, and financial statements [Reference Documents](index=4&type=section&id=备查文件目录) Reference documents include signed and sealed financial statements and original announcements publicly disclosed during the reporting period - Reference documents include financial statements signed and sealed by the company's legal representative, the person in charge of accounting, and the head of the accounting department[10](index=10&type=chunk) - Reference documents also include originals of all company documents and announcements publicly disclosed in newspapers designated by the China Securities Regulatory Commission during the reporting period[10](index=10&type=chunk) [Definitions](index=5&type=section&id=释义) This section defines common terms used in the report, including company names, key subsidiaries, and abbreviations for clarity - "Company," "the Company," and "Rifeng Cable" refer to Guangdong Rifeng Cable Co., Ltd[11](index=11&type=chunk) - Lists several wholly-owned or controlling subsidiaries, such as International Electrician, Hong Kong Rifeng, Anhui Rifeng, Rifeng Intelligent, Rifeng New Materials, Rifeng Electronics, Zhongshan Aimbei, Tianjin Yourong, Guangdong Yourong, Dongguan Yourong, and Hengchang Cable[11](index=11&type=chunk) - "Reporting period" refers to January 1, 2025, to June 30, 2025[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 introduces the company, its contact information, and presents key accounting data and financial performance metrics [Company Profile](index=6&type=section&id=一、公司简介) Guangdong Rifeng Cable Co., Ltd. (stock code: 002953) is listed on the Shenzhen Stock Exchange, with Feng Jiujing as its legal representative - The company's stock abbreviation is "Rifeng Cable," stock code "002953," listed on the Shenzhen Stock Exchange[13](index=13&type=chunk) - The company's Chinese name is "Guangdong Rifeng Cable Co., Ltd.," and its legal representative is Feng Jiujing[13](index=13&type=chunk) [Contact Person and Information](index=6&type=section&id=二、联系人和联系方式) The company's Board Secretary is Li Yuhui, with contact details including address, phone, fax, and email provided - The Board Secretary is Li Yuhui, contact number 0760-85115672, email rfgf@rfcable.com.cn[14](index=14&type=chunk) - The company's registered address and office address are both Guangfeng Industrial Park, Xiqu, Zhongshan City, Guangdong Province[15](index=15&type=chunk) [Other Information](index=6&type=section&id=三、其他情况) No changes occurred in the company's contact information, information disclosure, or document storage locations during the reporting period - The company's registered address, office address, website, and email address remained unchanged during the reporting period[15](index=15&type=chunk) - Information disclosure and document storage locations remained unchanged during the reporting period, refer to the 2024 annual report for details[16](index=16&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) Revenue increased by 13.22%, net profit by 27.33%, and net cash flow from operating activities turned positive, with total assets also growing Key Accounting Data and Financial Indicators (YoY Change) | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | YoY Change | As of End of Current Period (Yuan) | As of End of Prior Year (Yuan) | Change from Prior Year End | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,354,156,824.71 | 2,079,309,235.49 | 13.22% | - | - | - | | Net Profit Attributable to Shareholders of Listed Company | 112,501,179.80 | 88,353,379.84 | 27.33% | - | - | - | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | 100,961,283.46 | 87,201,068.99 | 15.78% | - | - | - | | Net Cash Flow from Operating Activities | 31,065,114.88 | -79,544,292.92 | 139.05% | - | - | - | | Basic EPS (Yuan/share) | 0.2482 | 0.19 | 30.63% | - | - | - | | Diluted EPS (Yuan/share) | 0.2482 | 0.19 | 30.63% | - | - | - | | Weighted Average Return on Net Assets | 5.91% | 4.92% | 0.99% | - | - | - | | Total Assets | - | - | - | 3,735,305,656.81 | 3,579,078,133.50 | 4.37% | | Net Assets Attributable to Shareholders of Listed Company | - | - | - | 1,914,480,483.01 | 1,847,590,876.10 | 3.62% | [Differences in Accounting Data Under Domestic and International 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 and Chinese accounting standards during the period - The company reported no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[18](index=18&type=chunk) - The company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[19](index=19&type=chunk) [Non-recurring Gains and Losses Items and Amounts](index=8&type=section&id=六、非经常性损益项目及金额) Total non-recurring gains and losses amounted to 11.54 million Yuan, primarily from non-current asset disposal and government grants, net of tax and minority interest Non-recurring Gains and Losses Items and Amounts | Item | Amount (Yuan) | Description | | :--- | :--- | :--- | | Gains/losses from disposal of non-current assets (including reversal of impairment provisions) | 13,789,169.43 | Gain from disposal of assets held for sale by subsidiaries | | Government grants recognized in current profit/loss (excluding those closely related to normal operations, compliant with national policies, enjoyed by fixed standards, and with continuous impact on profit/loss) | 2,881,449.84 | - | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises, excluding effective hedge accounting related to normal operations | -58,573.17 | - | | Other non-operating income and expenses apart from the above | -1,281,578.61 | - | | Less: Income tax impact | 3,772,848.51 | - | | Minority interest impact (after tax) | 17,722.64 | - | | Total | 11,539,896.34 | - | - The company has no other profit/loss items meeting the definition of non-recurring gains/losses, nor has it classified non-recurring gains/losses as recurring ones[21](index=21&type=chunk)[22](index=22&type=chunk) [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 main business, core competitiveness, financial performance, investment activities, and risk factors [Main Business Activities 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 primarily researches, develops, produces, and sells special equipment, new energy, and communication cables, with significant revenue growth in new energy and overseas sales - The company primarily engages in the R&D, production, and sales of special equipment cables, new energy cables, communication equipment, and other electrical equipment cables[24](index=24&type=chunk) - Products are widely used in wind power, new energy, communication equipment, marine engineering, port machinery, construction machinery, shipbuilding, as well as common household appliances, robots, power tools, lighting, and outdoor equipment[24](index=24&type=chunk) Key Business Performance During the Reporting Period | Indicator | Amount (10,000 Yuan) | YoY Growth | | :--- | :--- | :--- | | Total Operating Revenue | 235,415.68 | 13.22% | | New Energy Market Operating Revenue | 20,195.92 | 61% | | Overseas Sales Operating Revenue | 40,365.92 | 37.71% | [Company's Main Business](index=9&type=section&id=（一）公司从事的主营业务) The company specializes in rubber-sheathed wire and cable products, excelling in this niche and continuously optimizing its business structure for market responsiveness - The company has been deeply involved in the wire and cable industry for many years, dedicated to the technological research, application, and promotion of rubber-sheathed wire and cable products, possessing multiple core technologies and patents[25](index=25&type=chunk) - The company has become a leader in the segmented field of rubber-sheathed wire and cable[25](index=25&type=chunk) - The company optimizes its business unit structure to accelerate responsiveness to market changes, creating one-stop solutions to better serve existing customers and expand into new markets[25](index=25&type=chunk) [Company's Main Products](index=10&type=section&id=（二）公司的主要产品) The company's main products include special equipment cables, new energy cables, communication equipment components, and appliance wiring, each tailored for specific applications - The company's main products are special equipment cables, new energy cables, communication equipment components, air conditioner connection cable assemblies, and small appliance wiring assemblies[26](index=26&type=chunk) - Special equipment cables are suitable for special heavy machinery, robot/flexible drag chain cables, power tools, and wind energy applications, featuring excellent tensile, torsion, wear resistance, flame retardancy, waterproofing, and chemical corrosion resistance[26](index=26&type=chunk) - New energy cables are suitable for wind power, energy storage, photovoltaics, and charging pile cables, characterized by strong flexibility, good weather resistance, and high-temperature resistance[26](index=26&type=chunk) - Communication equipment components are suitable for digital transmission equipment, base station antennas, etc., offering excellent high signal transmission performance, electrical performance, and reliable physical and mechanical properties[27](index=27&type=chunk) [Core Competitiveness Analysis](index=10&type=section&id=二、核心竞争力分析) The company maintains a strong competitive edge through its comprehensive R&D, quality control, manufacturing, and marketing systems, focusing on product positioning, scale, certifications, talent, technology, quality, and service - The company has become a well-known wire and cable manufacturer in the industry with complete R&D, quality control, manufacturing, and marketing systems[28](index=28&type=chunk) - The company's competitive advantages are primarily in seven aspects: product positioning, scale, mandatory product safety certifications, talent development, R&D technology, product quality and performance, and marketing and service[28](index=28&type=chunk) [Product Positioning Advantage](index=10&type=section&id=（一）产品定位优势) The company focuses on high-end niche markets for rubber-sheathed cables, including special equipment, wind power, new energy charging, communication, and energy storage, avoiding low-to-mid-end competition - The company's products are mainly rubber-sheathed cables, which offer advantages over plastic cables in terms of flexibility, wear resistance, mechanical properties, flame retardancy, and electrical performance[28](index=28&type=chunk) - The company's main products are positioned in the R&D, production, sales, and service of rubber-sheathed cables for special equipment, wind power, new energy charging piles, communication equipment components, and energy storage, demonstrating significant competitive advantages in these niche markets[28](index=28&type=chunk) - The company maintains stable cooperative relationships with renowned enterprises such as Midea, Gree, TCL, Aux, Huawei, ZTE, FiberHome, Envision Energy, and Mingyang Smart, effectively mitigating competition risks in the low-to-mid-end cable market[29](index=29&type=chunk) [Scale Advantage](index=10&type=section&id=（二）规模优势) Extensive experience and high recognition in rubber-sheathed cables enable the company to leverage economies of scale, enhancing raw material procurement power and market competitiveness - For many years, the company has focused on the R&D, production, and sales of rubber-sheathed cables, accumulating rich experience and establishing a high reputation in this field[31](index=31&type=chunk) - Leveraging its scale advantage, the company has strengthened its bargaining power for raw material procurement, obtaining favorable prices through centralized purchasing, reducing procurement and manufacturing costs, thereby enhancing market competitiveness[31](index=31&type=chunk) [Mandatory Product Safety Certification Advantage](index=11&type=section&id=（三）强制性产品安全认证优势) The company's products adhere to strict domestic and international standards, holding over 20 mandatory safety certifications, ensuring quality and market access globally - The company's wire and cable products strictly adhere to national standards, industry standards, enterprise standards, and international standards such as IEC, EN, and UL[32](index=32&type=chunk) - The company's products have obtained domestic certifications such as "China Compulsory Product Certification" and "Guangdong Province International Standard Product Recognition Certificate," as well as mandatory product safety certifications from over 20 countries and regions including US UL, CM, EU CE, German VDE, French NF, British BSI, Canadian CSA, Korean KC, and Japanese PSE[32](index=32&type=chunk) [Talent Development Advantage](index=11&type=section&id=（四）人才培养优势) The company has built a multi-layered R&D team through internal development and external recruitment, collaborating with universities to foster innovation and establish a postdoctoral innovation practice base - Through independent cultivation and talent acquisition, the company has established a multi-layered, comprehensive R&D team with a reasonable structure in terms of age, expertise, and research direction[33](index=33&type=chunk) - The R&D team's expertise covers fields such as cables, electromechanics, electronics, polymers, and chemicals, with research directions spanning the entire industry chain[33](index=33&type=chunk) - The company collaborates closely with universities, forming an "industry-university-research integration" model, and has been approved to establish a Guangdong Provincial Postdoctoral Innovation Practice Base, ensuring R&D and innovation drive[33](index=33&type=chunk) [R&D Technology Advantage](index=11&type=section&id=（五）研发技术优势) The company possesses independent R&D capabilities for high-end flexible and special cables, with subsidiaries leading in 5G communication and EV super-fast charging technologies, and mastering cost-effective material formulations - The company possesses independent design and R&D capabilities for high-end flexible cables, special wires and cables, and special material formulations[34](index=34&type=chunk) - Subsidiary Tianjin Yourong Dikang Communication Technology Co., Ltd. possesses excellent customer resources and superior product technology in the 5G communication sector[34](index=34&type=chunk) - Subsidiary Zhongshan Aimbei New Energy Technology Co., Ltd. holds unique standards and technologies in the field of new energy vehicle super-fast charging[34](index=34&type=chunk) - The company masters low-cost, high-quality raw material formulations and employs internationally advanced irradiation cross-linking technology, ranking among the industry leaders in the segmented field of rubber-sheathed wires and cables[34](index=34&type=chunk)[35](index=35&type=chunk) [Product Quality and Performance Advantage](index=12&type=section&id=（六）产品质量及性能优势) Adhering to "quality first," the company holds ISO9001, ISO14001, and IATF 16949 certifications, with its products achieving advanced domestic levels and earning customer trust - The company has obtained ISO9001:2015 Quality Management System Certification, ISO14001:2015 Environmental Management System Certification, and IATF 16949:2016 Automotive Industry Quality Management System Certification[36](index=36&type=chunk) - The company has obtained laboratory accreditation from the China National Accreditation Service for Conformity Assessment, elevating its R&D and testing capabilities to a new level[36](index=36&type=chunk) - Special equipment cable products have reached advanced domestic levels, achieving localization of high-performance products and gaining market share, with some products capable of replacing imports[36](index=36&type=chunk) - Communication equipment components, air conditioner connection cable assemblies, and small appliance wiring assemblies have consistently been rated as "Excellent Supplier," "A-level Supporting Enterprise," and "Best Partner" due to their superior quality and reputation, establishing stable strategic cooperative relationships with Midea, Gree, Hisense Kelon, TCL, Aux, and others[37](index=37&type=chunk) [Marketing and Service Advantage](index=12&type=section&id=（七）市场营销及服务优势) The company employs a comprehensive marketing system with differentiated strategies and direct sales, offering full-spectrum services from design consultation to customized solutions for high-end clients - The company has established a relatively comprehensive marketing system, adhering to differentiated market service strategies and a direct sales model[38](index=38&type=chunk) - Possesses a team of technically proficient and skilled composite marketing professionals, providing customers with comprehensive service solutions covering initial selection, design consultation, technical exchange, installation guidance, and product quality tracking[38](index=38&type=chunk) - The company provides personalized services such as targeted customization, improvement, adjustment, and maintenance for high-end customers, and can quickly respond to customer feedback[38](index=38&type=chunk) [Main Business Analysis](index=12&type=section&id=三、主营业务分析) Main business revenue increased by 13.22%, driven by significant growth in new energy cables (61%) and communication equipment components (22.05%), while overall gross margin slightly decreased Key Financial Data Year-over-Year Changes | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,354,156,824.71 | 2,079,309,235.49 | 13.22% | - | | Operating Cost | 2,074,071,529.65 | 1,829,350,862.68 | 13.38% | - | | Financial Expenses | 2,970,053.74 | 4,650,471.50 | -36.13% | Primarily due to a year-over-year decrease in loan principal and interest | | Income Tax Expense | 13,234,405.92 | 4,276,442.16 | 209.47% | Primarily due to the growth in current period total profit and adjustments for income tax deductions | | Net Cash Flow from Operating Activities | 31,065,114.88 | -79,544,292.92 | 139.05% | Primarily due to increased cash inflow from early discounting in the current period, used to repay supplementary working capital for projects | | Net Cash Flow from Investing Activities | -46,112,213.98 | -30,538,261.75 | 51.00% | Primarily due to continued increased construction investment in Longchang Industrial Park, leading to a corresponding increase in investing activities expenditures | | Net Cash Flow from Financing Activities | -93,172,844.54 | 6,363,791.39 | -1,564.11% | Primarily due to dividend distribution and loan repayments in the current period, leading to a corresponding increase in financing activities expenditures | Operating Revenue Composition (by Product and Region) | Category | Item | Current Period Amount (Yuan) | Current Period Share | Prior Year Period Amount (Yuan) | Prior Year Period Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | By Product | Special Equipment Cables | 408,660,119.06 | 17.36% | 346,696,498.44 | 16.67% | 17.87% | | | Communication Equipment Components | 437,360,519.58 | 18.58% | 358,339,080.26 | 17.23% | 22.05% | | | New Energy Cables | 201,959,195.00 | 8.58% | 125,440,044.60 | 6.03% | 61.00% | | | Air Conditioner Connection Cable Assemblies | 870,797,132.67 | 36.99% | 783,204,680.89 | 37.67% | 11.18% | | | Small Appliance Wiring Assemblies | 259,213,773.23 | 11.01% | 279,951,720.71 | 13.46% | -7.41% | | By Region | Domestic | 1,950,497,644.00 | 82.85% | 1,786,192,934.75 | 85.90% | 9.20% | | | Overseas | 403,659,180.71 | 17.15% | 293,116,300.74 | 14.10% | 37.71% | Gross Margin of Main Business Year-over-Year Change | Category | Item | Gross Margin | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | | By Industry | Wire and Cable Industry | 11.90% | -0.12% | | By Product | Special Equipment Cables | 15.46% | 0.69% | | | Communication Equipment Components | 9.25% | 0.71% | | | New Energy Cables | 13.97% | -5.10% | | | Air Conditioner Connection Cable Assemblies | 12.52% | -0.64% | | | Small Appliance Wiring Assemblies | 11.09% | -1.09% | | By Region | Domestic | 11.74% | -0.12% | | | Overseas | 12.65% | -0.37% | [Non-Main Business Analysis](index=14&type=section&id=四、非主营业务分析) The company reported no non-main business analysis during the period, indicating a focus on its core wire and cable operations - The company reported no non-main business analysis during the reporting period[46](index=46&type=chunk) [Analysis of Assets and Liabilities](index=15&type=section&id=五、资产及负债状况分析) Total assets grew by 4.37%. Accounts receivable and fixed assets increased significantly, while cash, inventories, and construction in progress decreased. Certain assets are restricted for bank loan collateral Significant Changes in Asset Composition | Item | Amount as of End of Current Period (Yuan) | Percentage of Total Assets | Amount as of End of Prior Year (Yuan) | Percentage of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 292,585,378.49 | 7.83% | 373,049,619.90 | 10.42% | -2.59% | | Accounts Receivable | 1,483,472,334.53 | 39.71% | 1,235,171,653.70 | 34.51% | 5.20% | | Inventories | 423,529,184.76 | 11.34% | 477,254,828.31 | 13.33% | -1.99% | | Fixed Assets | 685,933,360.92 | 18.36% | 458,147,244.84 | 12.80% | 5.56% | | Construction in Progress | 79,774,963.38 | 2.14% | 268,068,418.22 | 7.49% | -5.35% | | Short-term Borrowings | 377,750,000.00 | 10.11% | 423,339,305.58 | 11.83% | -1.72% | | Notes Payable | 765,047,865.43 | 20.48% | 618,499,968.02 | 17.28% | 3.20% | | Long-term Borrowings | 169,660,000.00 | 4.54% | 191,080,000.00 | 5.34% | -0.80% | Asset Restriction Status | Item | Book Balance at Period End (Yuan) | Book Value at Period End (Yuan) | Type of Restriction | Restriction Details | | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 107,550,162.39 | 107,550,162.39 | Guarantee and Pledge | Bank acceptance bill/L/C/guarantee deposit, litigation preservation funds | | Intangible Assets | 67,114,802.90 | 63,156,914.43 | Mortgage collateral for bank loans | Mortgage collateral for bank loans | | Fixed Assets | 233,915,781.93 | 231,367,408.47 | Mortgage collateral for bank loans | Mortgage collateral for bank loans | | Total | 408,580,747.22 | 402,074,485.29 | - | - | [Significant Changes in Asset Composition](index=15&type=section&id=1、资产构成重大变动情况) Accounts receivable and fixed assets significantly increased their share of total assets, while cash, inventories, and construction in progress decreased, reflecting operational and investment shifts - Accounts receivable increased by **5.20%** of total assets, and fixed assets increased by **5.56%** of total assets[47](index=47&type=chunk) - Cash and cash equivalents decreased by **2.59%** of total assets, inventories decreased by **1.99%**, and construction in progress decreased by **5.35%**[47](index=47&type=chunk) [Major Overseas Assets](index=15&type=section&id=2、主要境外资产情况) The company reported no major overseas assets during the period, indicating that such assets are either not significant or have not undergone major changes - The company reported no major overseas assets during the reporting period[48](index=48&type=chunk) [Assets and Liabilities Measured at Fair Value](index=15&type=section&id=3、以公允价值计量的资产和负债) The company reported no assets or liabilities measured at fair value during the period, suggesting these financial instruments are not significant or unchanged - The company reported no assets or liabilities measured at fair value during the reporting period[48](index=48&type=chunk) [Asset Restriction Status as of the End of the Reporting Period](index=15&type=section&id=4、截至报告期末的资产权利受限情况) As of period-end, cash, intangible assets, and fixed assets were restricted, primarily for bank guarantees and loan collateral, totaling over 400 million Yuan in book value - Cash and cash equivalents of **107,550,162.39 Yuan** were restricted at period-end, primarily for bank acceptance bill/L/C/guarantee deposits and litigation preservation funds[49](index=49&type=chunk) - Intangible assets with a book value of **63,156,914.43 Yuan** and fixed assets with a book value of **231,367,408.47 Yuan** were restricted at period-end, primarily for mortgage collateral for bank loans[49](index=49&type=chunk) - The total book value of restricted assets was **402,074,485.29 Yuan**[49](index=49&type=chunk) [Investment Analysis](index=16&type=section&id=六、投资状况分析) Total investment decreased by 39.25%. Raised funds utilization was 88.75%, with a key project concluded but not yet profitable. Idle raised funds were temporarily used for working capital and fully repaid Changes in Investment Amount During the Reporting Period | Indicator | Investment Amount for the Reporting Period (Yuan) | Investment Amount for the Prior Year Period (Yuan) | Change Percentage | | :--- | :--- | :--- | :--- | | Investment Amount | 71,944,297.19 | 118,428,873.46 | -39.25% | - The company reported no securities investments or derivative investments during the reporting period[51](index=51&type=chunk)[52](index=52&type=chunk) - The overall utilization rate of raised funds was **88.75%**, with a cumulative use of **329.82 million Yuan**[56](index=56&type=chunk) - The "New Energy and Special Equipment Cable Assembly Project" had a committed total investment of **371.65 million Yuan**, with a cumulative investment of **329.82 million Yuan** as of period-end, an investment progress of **88.75%**, completed and closed on June 30, 2025, but has not yet generated benefits[57](index=57&type=chunk)[59](index=59&type=chunk) - The company previously used a portion of idle raised funds to temporarily supplement working capital, not exceeding **90 million Yuan**, which was fully repaid on June 25, 2025[60](index=60&type=chunk) [Overall Situation](index=16&type=section&id=1、总体情况) The company's investment amount for the reporting period was 71.94 million Yuan, representing a 39.25% decrease compared to the prior year Changes in Investment Amount During the Reporting Period | Indicator | Investment Amount for the Reporting Period (Yuan) | Investment Amount for the Prior Year Period (Yuan) | Change Percentage | | :--- | :--- | :--- | :--- | | Investment Amount | 71,944,297.19 | 118,428,873.46 | -39.25% | [Significant Equity Investments Acquired During the Reporting Period](index=16&type=section&id=2、报告期内获取的重大的股权投资情况) The company reported no significant equity investments acquired during the reporting period - The company reported no securities investments during the reporting period[51](index=51&type=chunk) [Significant Non-Equity Investments in Progress During the Reporting Period](index=16&type=section&id=3、报告期内正在进行的重大的非股权投资情况) The company reported no significant non-equity investments in progress during the reporting period - The company reported no derivative investments during the reporting period[52](index=52&type=chunk) [Financial Asset Investments](index=16&type=section&id=4、金融资产投资) The company reported no securities or derivative investments during the reporting period - The company reported no securities investments during the reporting period[51](index=51&type=chunk) - The company reported no derivative investments during the reporting period[52](index=52&type=chunk) [Utilization of Raised Funds](index=16&type=section&id=5、募集资金使用情况) The overall utilization rate of raised funds was 88.75%. The "New Energy and Special Equipment Cable Assembly Project" was completed but not yet profitable. Idle funds were temporarily used for working capital and fully repaid Overall Utilization of Raised Funds | Fundraising Year | Fundraising Method | Net Amount of Raised Funds (10,000 Yuan) | Total Raised Funds Used in Current Period (10,000 Yuan) | Total Raised Funds Cumulatively Used (10,000 Yuan) | Utilization Rate of Raised Funds at Period End | | :--- | :--- | :--- | :--- | :--- | :--- | | 2021 | Issuance of convertible corporate bonds to unspecified investors | 37,164.53 | 5,465.83 | 32,982.07 | 88.75% | - The raised funds project, "New Energy and Special Equipment Cable Assembly Project," was officially closed at the end of the reporting period but has not yet generated benefits[57](index=57&type=chunk)[59](index=59&type=chunk) - The company previously used a portion of idle raised funds to temporarily supplement working capital, not exceeding **90 million Yuan**, which was fully repaid to the special raised funds account on June 25, 2025[60](index=60&type=chunk) [Significant Asset and Equity Disposals](index=21&type=section&id=七、重大资产和股权出售) The company did not dispose of any significant assets or equity during the reporting period - The company did not dispose of significant assets during the reporting period[62](index=62&type=chunk) - The company did not dispose of significant equity during the reporting period[63](index=63&type=chunk) [Analysis of Major Holding and Associate Companies](index=21&type=section&id=八、主要控股参股公司分析) Tianjin Yourong Dikang Communication Technology Co., Ltd. is a key subsidiary with a net profit of 13.32 million Yuan. Wholly-owned subsidiary Anhui Rifeng Technology Co., Ltd. is undergoing liquidation Financial Information of Major Subsidiaries | Company Name | Company Type | Main Business | Registered Capital (10,000 Yuan) | Total Assets (10,000 Yuan) | Net Assets (10,000 Yuan) | Operating Revenue (10,000 Yuan) | Operating Profit (10,000 Yuan) | Net Profit (10,000 Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Tianjin Yourong Dikang Communication Technology Co., Ltd. | Subsidiary | Manufacturing, processing, and sales of communication equipment, wires, cables, optical fibers, optical cables, cable materials, polymer materials, and non-ferrous metals | 6,450.30 | 44,510.40 | 23,615.27 | 56,697.17 | 1,353.80 | 1,331.86 | - Wholly-owned subsidiary Anhui Rifeng Technology Co., Ltd. is undergoing liquidation and deregistration, which was not completed as of the end of the reporting period, but is not expected to have a significant impact on the company's overall business development and operations[64](index=64&type=chunk) [Structured Entities Controlled by the Company](index=21&type=section&id=九、公司控制的结构化主体情况) The company reported no structured entities under its control during the reporting period - The company reported no structured entities under its control during the reporting period[65](index=65&type=chunk) [Risks Faced by the Company and Countermeasures](index=22&type=section&id=十、公司面临的风险和应对措施) The company faces risks from raw material price volatility, market competition, accounts receivable, tax policy changes, and exchange rate fluctuations, addressed by various mitigation strategies - Raw material price fluctuation risk: Copper costs constitute a high proportion of product costs, and price fluctuations directly impact product costs and gross margins, increasing working capital pressure. The company addresses this with a "cost + target gross margin" pricing model and average price procurement strategy[66](index=66&type=chunk) - Market competition risk: Intense industry competition requires the company to continuously invest in business and resources, adjust product structure, and launch high-value-added new products to cope[67](index=67&type=chunk) - Accounts receivable uncollectibility risk: Adverse changes in macroeconomics, industry, or customer operations may lead to bad debts. The company needs to strengthen accounts receivable management[68](index=68&type=chunk) - Tax preferential policy change risk: The company and its subsidiaries enjoy high-tech enterprise income tax incentives; if policies change or conditions are not met, tax burden will increase[69](index=69&type=chunk) - Exchange rate fluctuation risk: The company's export sales are primarily settled in foreign currencies such as USD, HKD, and EUR, and exchange rate fluctuations may result in exchange gains or losses, affecting financial position and operating performance[70](index=70&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=23&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 not formulated a market value management system nor disclosed a valuation enhancement plan - The company has not formulated a market value management system[71](index=71&type=chunk) - The company has not disclosed a valuation enhancement plan[71](index=71&type=chunk) [Implementation of the 'Dual Improvement in Quality and Returns' Action Plan](index=23&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) [Corporate Governance, Environment, and Society](index=24&type=section&id=第四节%20公司治理、环境和社会) This section covers changes in directors, supervisors, and senior management, profit distribution, incentive plans, environmental disclosures, and social responsibility initiatives [Changes in Directors, Supervisors, and Senior Management](index=24&type=section&id=一、公司董事、监事、高级管理人员变动情况) No changes occurred in the company's directors, supervisors, or senior management during the reporting period - The company's directors, supervisors, and senior management experienced no changes during the reporting period[73](index=73&type=chunk) [Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Period](index=24&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, bonus shares, or convert capital reserves into share capital for the half-year period[74](index=74&type=chunk) [Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=24&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 reported no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company reported 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) [Environmental Information Disclosure](index=24&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[76](index=76&type=chunk) [Social Responsibility](index=24&type=section&id=五、社会责任情况) The company actively fulfills social responsibilities by protecting shareholder, employee, and customer rights, and engaging in public welfare through governance, talent development, innovation, and donations - The company strictly standardizes general meeting procedures, ensuring shareholders' right to know, participate, propose, and vote, diligently fulfilling information disclosure obligations, and strengthening investor relations management[76](index=76&type=chunk) - The company continuously improves talent pipeline construction, optimizes talent structure, provides a safe and comfortable working environment, supports union activities, and safeguards employees' legitimate rights and interests[78](index=78&type=chunk) - The company adheres to the principle of equality, mutual benefit, and win-win, establishing good cooperative relationships with suppliers; it upholds the "customer first" philosophy, enhancing product quality through technological innovation and providing excellent after-sales service[79](index=79&type=chunk) - During the reporting period, the company cumulatively donated **500,000 Yuan** to the Zhongshan Xiqu Red Cross Society, specifically for public welfare projects supporting livelihood improvement, education development, paired assistance, and social relief[80](index=80&type=chunk) [Significant Matters](index=26&type=section&id=第五节%20重要事项) This section details commitments, related party fund occupation, external guarantees, auditor appointments, audit reports, bankruptcy, litigation, penalties, integrity, and major contracts [Commitments](index=26&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) The company reported no commitments that were fulfilled or overdue as of the end of the reporting period - The company reported no commitments by the actual controller, shareholders, related parties, acquirers, or the company that were fulfilled during the reporting period or overdue as of the end of the reporting period[83](index=83&type=chunk) [Non-Operating Fund Occupation](index=26&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) The company reported no non-operating fund occupation by controlling shareholders or other related parties during the reporting period - The company reported no non-operating fund occupation by controlling shareholders or other related parties of the listed company during the reporting period[84](index=84&type=chunk) [Irregular External Guarantees](index=26&type=section&id=三、违规对外担保情况) The company reported no irregular external guarantees during the reporting period - The company reported no irregular external guarantees during the reporting period[85](index=85&type=chunk) [Appointment and Dismissal of Accounting Firms](index=26&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[86](index=86&type=chunk) [Board of Directors' and Supervisory Board's Explanation on the Accounting Firm's 'Non-Standard Audit Report' for the Current Period](index=26&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 reported no non-standard audit report for the current period, thus no explanation from the Board or Supervisory Board is required - The company reported no non-standard audit report during the reporting period[87](index=87&type=chunk) [Board of Directors' Explanation on Matters Related to the 'Non-Standard Audit Report' for the Prior Year](index=27&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 reported no non-standard audit report for the prior year, thus no explanation from the Board is required - The company reported no matters related to a non-standard audit report for the prior year during the reporting period[87](index=87&type=chunk) [Bankruptcy and Reorganization Matters](index=27&type=section&id=七、破产重整相关事项) The company reported no bankruptcy or reorganization matters during the reporting period - The company reported no bankruptcy or reorganization matters during the reporting period[88](index=88&type=chunk) [Litigation Matters](index=27&type=section&id=八、诉讼事项) The company reported no significant litigation or arbitration matters during the reporting period - The company had no significant litigation or arbitration matters in the current reporting period[89](index=89&type=chunk) [Penalties and Rectification](index=27&type=section&id=九、处罚及整改情况) The company reported no penalties or rectification situations during the reporting period - The company reported no penalties or rectification situations during the reporting period[90](index=90&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=27&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 operated with integrity, maintaining good credit and fulfilling obligations during the reporting period - During the reporting period, the company, its controlling shareholder, and actual controller operated with integrity in accordance with the law, maintaining good credit status[91](index=91&type=chunk) - There were no instances of unfulfilled obligations determined by effective legal documents from courts or large overdue debts remaining unpaid[91](index=91&type=chunk) [Significant Related Party Transactions](index=28&type=section&id=十一、重大关联交易) The company reported no significant related party transactions during the period, including those related to operations, asset/equity transfers, joint investments, or financial company dealings - The company reported no related party transactions related to daily operations during the reporting period[91](index=91&type=chunk) - The company reported no related party transactions involving asset or equity acquisitions/disposals during the reporting period[92](index=92&type=chunk) - The company reported no related party transactions involving joint external investments during the reporting period[93](index=93&type=chunk) - The company reported no related party creditor-debtor relationships during the reporting period[94](index=94&type=chunk) - There were no deposits, loans, credit lines, or other financial transactions between the company and related financial companies or related parties[95](index=95&type=chunk) [Significant Contracts and Their Performance](index=29&type=section&id=十二、重大合同及其履行情况) The company reported no significant contracts, including those for trusteeship, contracting, leasing, guarantees, wealth management, or other major agreements, during the reporting period - The company reported no trusteeship situations during the reporting period[98](index=98&type=chunk) - The company reported no contracting situations during the reporting period[99](index=99&type=chunk) - The company reported no leasing situations during the reporting period[101](index=101&type=chunk) - The company reported no significant guarantee situations during the reporting period[102](index=102&type=chunk) - The company reported no entrusted wealth management during the reporting period[103](index=103&type=chunk) - The company reported no other significant contracts during the reporting period[104](index=104&type=chunk) [Explanation of Other Significant Matters](index=29&type=section&id=十三、其他重大事项的说明) The company reported no other significant matters requiring explanation during the reporting period - The company reported no other significant matters requiring explanation during the reporting period[105](index=105&type=chunk) [Significant Matters of Company Subsidiaries](index=30&type=section&id=十四、公司子公司重大事项) Wholly-owned subsidiary Anhui Rifeng Technology Co., Ltd.'s land use rights were reclaimed, with full compensation received and property deregistration completed, while its liquidation is ongoing - The state-owned construction land use rights of wholly-owned subsidiary Anhui Rifeng Technology Co., Ltd. were reclaimed by the government for compensation; the company received the full land compensation of **25.42 million Yuan** on June 10, 2025, and completed property deregistration procedures[106](index=106&type=chunk) - The company's Board of Directors approved the resolution to liquidate and deregister wholly-owned subsidiary Anhui Rifeng Technology Co., Ltd., which was not completed as of the end of the reporting period[108](index=108&type=chunk)[109](index=109&type=chunk) [Share Changes and Shareholder Information](index=31&type=section&id=第六节%20股份变动及股东情况) This section details share capital changes, securities issuance, shareholder numbers, major shareholders, and changes in holdings of directors, supervisors, and senior management [Share Change Status](index=32&type=section&id=一、股份变动情况) The company's total share capital remained unchanged at 456,888,849 shares, with no changes in restricted or unrestricted shares, primarily due to executive lock-up shares Share Change Status | Item | Number before this change (shares) | Percentage before this change | Increase/Decrease in this change (+, -) | Number after this change (shares) | Percentage after this change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 185,251,318.00 | 40.55% | 0 | 185,251,318.00 | 40.55% | | II. Unrestricted Shares | 271,637,531.00 | 59.45% | 0 | 271,637,531.00 | 59.45% | | III. Total Shares | 456,888,849.00 | 100.00% | 0 | 456,888,849.00 | 100.00% | Changes in Restricted Shares | Shareholder Name | Restricted Shares at Period Start (shares) | Restricted Shares Released in Current Period (shares) | Restricted Shares Increased in Current Period (shares) | Restricted Shares at Period End (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Li Yongjuan | 978,537 | 0 | 0 | 978,537 | Executive Lock-up Shares | | Li Qiang | 7,411,216 | 0 | 0 | 7,411,216 | Executive Lock-up Shares | | Feng Jiujing | 176,861,565 | 0 | 0 | 176,861,565 | Executive Lock-up Shares | | Total | 185,251,318 | 0 | 0 | 185,251,318 | - | [Securities Issuance and Listing](index=32&type=section&id=二、证券发行与上市情况) The company reported no securities issuance or listing activities during the reporting period - The company reported no securities issuance or listing activities during the reporting period[115](index=115&type=chunk) [Number of Shareholders and Shareholding Status](index=35&type=section&id=三、公司股东数量及持股情况) As of period-end, there were 34,413 common shareholders. Feng Jiujing, the controlling shareholder, holds 51.61%, with some shares pledged. Feng Yuhua and Luo Yongwen are his concerted parties - The total number of common shareholders at the end of the reporting period was **34,413**[116](index=116&type=chunk) Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period End (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Share Status | Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Feng Jiujing | Domestic Natural Person | 51.61% | 235,815,420.00 | 176,861,565.00 | 58,953,855 | Pledged | 42,500,000 | | Li Qiang | Domestic Natural Person | 2.16% | 9,881,621.00 | 7,411,216.00 | 2,470,405 | Pledged | 4,940,000 | | Feng Yuhua | Domestic Natural Person | 1.67% | 7,651,644.00 | 0 | 7,651,644.00 | N/A | 0 | | Luo Yongwen | Domestic Natural Person | 1.32% | 6,043,770.00 | 0 | 6,043,770.00 | N/A | 0 | - Mr. Feng Yuhua is the son of Mr. Feng Jiujing, and Mr. Luo Yongwen is the brother of Mr. Feng Jiujing's spouse; both are concerted parties of the company's actual controller, Mr. Feng Jiujing[116](index=116&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=35&type=section&id=四、董事、监事和高级管理人员持股变动) The shareholdings of the company's directors, supervisors, and senior management remained unchanged during the reporting period - The shareholdings of the company's directors, supervisors, and senior management experienced no changes during the reporting period[119](index=119&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=35&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[120](index=120&type=chunk) - The company's actual controller remained unchanged during the reporting period[121](index=121&type=chunk) [Preferred Share Information](index=35&type=section&id=六、优先股相关情况) The company reported no preferred shares during the reporting period - The company reported no preferred shares during the reporting period[122](index=122&type=chunk) [Bond-Related Information](index=36&type=section&id=第七节%20债券相关情况) This section provides information regarding the company's bonds [Bond-Related Information](index=36&type=section&id=债券相关情况) The company reported no bond-related information during the reporting period - The company reported no bond-related information during the reporting period[124](index=124&type=chunk) [Financial Report](index=37&type=section&id=第八节%20财务报告) This section includes the audit report, comprehensive financial statements, company basic information, accounting policies, tax details, and notes to the financial statements [Audit Report](index=37&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[126](index=126&type=chunk) [Financial Statements](index=37&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 2025 half-year - 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[127](index=127&type=chunk)[132](index=132&type=chunk)[134](index=134&type=chunk)[137](index=137&type=chunk)[140](index=140&type=chunk)[143](index=143&type=chunk)[145](index=145&type=chunk)[148](index=148&type=chunk)[151](index=151&type=chunk)[154](index=154&type=chunk) [Consolidated Balance Sheet](index=39&type=section&id=1、合并资产负债表) As of June 30, 2025, consolidated total assets were 3.74 billion Yuan, with high current asset proportion. Total liabilities were 1.81 billion Yuan, and total owners' equity was 1.93 billion Yuan - Consolidated total assets at period-end were **3,735,305,656.81 Yuan**, compared to **3,579,078,133.50 Yuan** at period-start[130](index=130&type=chunk) - Total current assets at period-end were **2,727,687,999.14 Yuan**, and total non-current assets were **1,007,617,657.67 Yuan**[129](index=129&type=chunk)[130](index=130&type=chunk) - Total current liabilities at period-end were **1,631,391,245.81 Yuan**, and total non-current liabilities were **177,700,277.26 Yuan**[130](index=130&type=chunk) [Parent Company Balance Sheet](index=41&type=section&id=2、母公司资产负债表) As of June 30, 2025, parent company total assets were 3.63 billion Yuan, with high current asset proportion. Total liabilities were 1.81 billion Yuan, and total owners' equity was 1.82 billion Yuan - Parent company total assets at period-end were **3,627,503,607.66 Yuan**, compared to **3,341,908,072.13 Yuan** at period-start[133](index=133&type=chunk) - Total current assets at period-end were **2,599,456,094.99 Yuan**, and total non-current assets were **1,028,047,512.67 Yuan**[131](index=131&type=chunk)[132](index=132&type=chunk) - Total current liabilities at period-end were **1,631,946,599.99 Yuan**, and total non-current liabilities were **175,731,837.56 Yuan**[133](index=133&type=chunk) [Consolidated Income Statement](index=43&type=section&id=3、合并利润表) For the 2025 half-year, total operating revenue reached 2.35 billion Yuan, a 13.22% YoY increase. Net profit was 112.53 million Yuan, up 28.16%, with 112.50 million Yuan attributable to parent company shareholders - Total operating revenue for the first half of 2025 was **2,354,156,824.71 Yuan**, compared to **2,079,309,235.49 Yuan** in the prior year period, a **13.22%** year-over-year increase[135](index=135&type=chunk) - Net profit for the first half of 2025 was **112,529,085.38 Yuan**, compared to **87,800,674.94 Yuan** in the prior year period, a **28.16%** year-over-year increase[136](index=136&type=chunk) - Net profit attributable to parent company shareholders was **112,501,179.80 Yuan**, with basic earnings per share of **0.2482 Yuan/share**[136](index=136&type=chunk) [Parent Company Income Statement](index=45&type=section&id=4、母公司利润表) For the 2025 half-year, parent company operating revenue was 1.83 billion Yuan, a 14.00% YoY increase. Net profit was 93.65 million Yuan, up 6.85% - Parent company operating revenue for the first half of 2025 was **1,831,645,061.01 Yuan**, compared to **1,606,752,097.38 Yuan** in the prior year period, a **14.00%** year-over-year increase[138](index=138&type=chunk) - Parent company net profit for the first half of 2025 was **93,653,151.25 Yuan**, compared to **87,652,391.04 Yuan** in the prior year period, a **6.85%** year-over-year increase[139](index=139&type=chunk) [Consolidated Cash Flow Statement](index=47&type=section&id=5、合并现金流量表) For the 2025 half-year, net cash flow from operating activities turned positive to 31.07 million Yuan, a 139.05% increase. Net cash flow from investing activities was -46.11 million Yuan, and from financing activities was -93.17 million Yuan - Net cash flow from operating activities for the first half of 2025 was **31,065,114.88 Yuan**, compared to **-79,544,292.92 Yuan** in the prior year period, a **139.05%** year-over-year increase[141](index=141&type=chunk) - Net cash flow from investing activities was **-46,112,213.98 Yuan**, compared to **-30,538,261.75 Yuan** in the prior year period[142](index=142&type=chunk) - Net cash flow from financing activities was **-93,172,844.54 Yuan**, compared to **6,363,791.39 Yuan** in the prior year period[142](index=142&type=chunk) - Net increase in cash and cash equivalents was **-105,293,088.37 Yuan**[142](index=142&type=chunk) [Parent Company Cash Flow Statement](index=48&type=section&id=6、母公司现金流量表) For the 2025 half-year, net cash flow from operating activities turned positive to 28.55 million Yuan. Net cash flow from investing activities was -59.36 million Yuan, and from financing activities was -79.12 million Yuan - Net cash flow from operating activities for the first half of 2025 was **28,548,503.38 Yuan**, compared to **-43,889,187.86 Yuan** in the prior year period[144](index=144&type=chunk) - Net cash flow from investing activities was **-59,358,897.65 Yuan**, compared to **-43,554,825.34 Yuan** in the prior year period[144](index=144&type=chunk) - Net cash flow from financing activities was **-79,118,029.78 Yuan**, compared to **-19,964,307.76 Yuan** in the prior year period[144](index=144&type=chunk) - Net increase in cash and cash equivalents was **-106,936,849.76 Yuan**[144](index=144&type=chunk) [Consolidated Statement of Changes in Owners' Equity](index=52&type=section&id=7、合并所有者权益变动表) For the 2025 half-year, total owners' equity attributable to the parent company increased by 67.17 million Yuan, primarily from comprehensive income, offset by profit distribution - Total owners' equity attributable to the parent company at period-end was **1,914,480,483.01 Yuan**, compared to **1,847,590,876.10 Yuan** at period-start[147](index=147&type=chunk)[150](index=150&type=chunk) - Total comprehensive income attributable to parent company owners for the current period was **112,501,179.80 Yuan**[146](index=146&type=chunk) - The amount of profit distribution to owners (or shareholders) for the current period was **45,334,114.90 Yuan**[147](index=147&type=chunk) [Parent Company Statement of Changes in Owners' Equity](index=56&type=section&id=8、母公司所有者权益变动表) For the 2025 half-year, parent company owners' equity increased by 48.32 million Yuan, mainly from comprehensive income, offset by profit distribution - Total parent company owners' equity at period-end was **1,819,825,170.11 Yuan**, compared to **1,771,506,133.76 Yuan** at period-start[153](index=153&type=chunk)[156](index=156&type=chunk) - Total parent company comprehensive income for the current period was **93,653,151.25 Yuan**[153](index=153&type=chunk) - The amount of profit distribution to owners (or shareholders) for the current period was **45,334,114.90 Yuan**[153](index=153&type=chunk) [Company Basic Information](index=57&type=section&id=三、公司基本情况) Guangdong Rifeng Cable Co., Ltd., established on December 17, 2009, in Zhongshan, specializes in R&D, production, and sales of electrical and special equipment cables, with a share capital of 456.89 million Yuan - Guangdong Rifeng Cable Co., Ltd. was established on December 17, 2009, with its headquarters in Zhongshan City[157](index=157&type=chunk) - The company primarily engages in the R&D, production, and sales of special equipment cables, new energy cables, communication equipment, and other electrical equipment cables[24](index=24&type=chunk)[157](index=157&type=chunk) - As of June 30, 2025, the company's share capital was **456,888,849.00 Yuan**[157](index=157&type=chunk) [Basis of Financial Statement Preparation](index=57&type=section&id=四、财务报表的编制基础) The company prepares its financial statements on a going concern basis, adhering to Accounting Standards for Business Enterprises and CSRC regulations, confirming its ability to continue operations for at least 12 months - The company prepares its financial statements on a going concern basis, in accordance with actual transactions and events, and the "Accounting Standards for Business Enterprises" and the China Securities Regulatory Commission's "Information Disclosure Rules for Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports" (Revised 2023)[158](index=158&type=chunk) - The company possesses the ability to continue as a going concern for at least 12 months from the end of the current reporting period, with no significant matters affecting its going concern ability[159](index=159&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=87&type=section&id=五、重要会计政策及会计估计) The company has established specific accounting policies and estimates for financial instruments, fixed assets, intangible assets, and revenue recognition, adhering to accounting standards, with no significant changes during the period - The company has formulated specific accounting policies and estimates for transactions and matters such as financial instruments, fixed asset depreciation, intangible asset amortization, and revenue recognition, based on its actual production and operating characteristics[160](index=160&type=chunk) - The financial statements prepared by the company comply with the requirements of Accounting Standards for Business Enterprises, truly and completely reflecting the company's financial position, operating results, changes in owners' equity, and cash flows[161](index=161&type=chunk) - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, with a 12-month operating cycle, and uses Renminbi as its bookkeeping currency[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) - There were no significant changes in accounting policies or accounting estimates during the reporting period[328](index=328&type=chunk) [Taxation](index=89&type=section&id=六、税项) The company's main taxes include VAT, urban maintenance and construction tax, and corporate income tax. It benefits from high-tech enterprise tax incentives and VAT input tax deduction for advanced manufacturing Major Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Sales Revenue | 3.00%、6.00%、9.00%、13.00% | | Urban Maintenance and Construction Tax | Taxable turnover, export tax exemption and deduction amount | 5.00%、7.00% | | Corporate Income Tax | Taxable Income | 15.00%、16.50%、25.00% | | Education Surcharge | Taxable turnover, export tax exemption and deduction amount | 3.00% | | Local Education Surcharge | Taxable turnover, export tax exemption and deduction amount | 2.00% | - Guangdong Rifeng Cable Co., Ltd., Tianjin Yourong Dikang Communication Technology Co., Ltd., and Zhongshan Rifeng Intelligent Electrical Co., Ltd. enjoy a **15.00%** preferential corporate income tax rate as high-tech enterprises[330](index=330&type=chunk) - Guangdong Rifeng Electronics Co., Ltd., Zhongshan Aimbei New Energy Technology Co., Ltd., Tianjin Hengchang Cable Co., Ltd., Dongguan Yourong Dikang Cable Assembly Co., Ltd., and Guangdong Yourong Dikang Communication Technology Co., Ltd. enjoy a **20%** preferential corporate income tax rate as small low-profit enterprises[331](index=331&type=chunk)[332](index=332&type=chunk) - The company benefits from the VAT additional deduction policy for advanced manufacturing enterprises in the current period, allowing an additional **5%** deduction on the current period's deductible input VAT amount against payable VAT[332](index=332&type=chunk) [Notes to Consolidated Financial Statement Items](index=144&type=section&id=七、合并财务报表项目注释) This section provides detailed notes on consolidated financial statement items, including assets, liabilities, equity, revenue, costs, expenses, and profits, with period-end balances, changes, and explanations - Cash and cash e

陕西省天然气股份有限公司 2025 年半年度报告全文 陕西省天然气股份有限公司 2025 年半年度报告 2025 年 8 月 1 陕西省天然气股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会及董事、高级管理人员保证半年度报告内容的真实、准确、 完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法 律责任。 公司负责人刘宏波、主管会计工作负责人闫禹衡及会计机构负责人(会计 主管人员)刘玉华声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 本报告中未来规划、发展战略等前瞻性陈述，不构成公司对投资者的实 质承诺，存在一定的不确定性，敬请广大投资者注意投资风险。 公司已在本报告中描述了经营中可能存在的相关风险，敬请查阅第三节 "管理层讨论与分析"中"十、公司面临的风险和应对措施"部分内容。 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 | | œ | 1 | | --- | --- | --- | | 1 | | | | 第一节 | 重要提示、目录和释义 2 | | --- | --- | | 第二节 | ...

[Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [Statement by the Board of Directors, Supervisory Board, and Senior Management](index=2&type=section&id=%E4%B8%80%E3%80%81%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%8F%8A%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E4%BF%9D%E8%AF%81%E5%8D%8A%E5%B9%B4%E5%BA%A6%E6%8A%A5%E5%91%8A%E5%86%85%E5%AE%B9%E7%9A%84%E7%9C%9F%E5%AE%9E%E6%80%A7%E3%80%81%E5%87%86%E7%A1%AE%E6%80%A7%E3%80%81%E5%AE%8C%E6%95%B4%E6%80%A7%EF%BC%8C%E4%B8%8D%E5%AD%98%E5%9C%A8%E8%99%9A%E5%81%87%E8%AE%B0%E8%BD%BD%E3%80%81%E8%AF%AF%E5%AF%BC%E6%80%A7%E9%99%88%E8%BF%B0%E6%88%96%E9%87%8D%E5%A4%A7%E9%81%97%E6%BC%8F%EF%BC%8C%E5%B9%B6%E6%89%BF%E6%8B%85%E4%B8%AA%E5%88%AB%E5%92%8C%E8%BF%9E%E5%B8%A6%E7%9A%84%E6%B3%95%E5%BE%8B%E8%B4%A3%E4%BB%BB%E3%80%82) The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report and assume legal responsibility, with all directors attending the board meeting and the report being unaudited - Company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, and assume individual and joint legal responsibility[3](index=3&type=chunk) - All company directors attended the Board of Directors meeting[4](index=4&type=chunk) - This semi-annual report is unaudited[5](index=5&type=chunk) [Profit Distribution Plan](index=2&type=section&id=%E4%BA%94%E3%80%81%20%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 approved the 2025 semi-annual profit distribution plan, proposing a cash dividend of **0.30 yuan** (tax inclusive) per 10 shares to all shareholders, totaling **44.8737 million yuan** (tax inclusive) - The company proposes a cash dividend of **0.30 yuan (tax inclusive) per 10 shares** to all shareholders based on the total share capital registered on the equity distribution record date[6](index=6&type=chunk) 2025 Semi-Annual Profit Distribution Plan | Indicator | Amount (RMB) | | :--- | :--- | | Cash dividend per 10 shares (tax inclusive) | 0.30 yuan | | Total proposed cash dividend (tax inclusive) | 44,873,660.76 yuan | [Risk Statement for Forward-Looking Statements](index=2&type=section&id=%E5%85%AD%E3%80%81%20%E5%89%8D%E7%9E%BB%E6%80%A7%E9%99%88%E8%BF%B0%E7%9A%84%E9%A3%8E%E9%99%A9%E5%A3%B0%E6%98%8E) The company reminds investors that forward-looking descriptions regarding future plans and development strategies in the report do not constitute substantial commitments and involve investment risks - Forward-looking descriptions in this report, such as future plans and development strategies, do not constitute substantial commitments to investors; investors are advised to be aware of investment risks[7](index=7&type=chunk) [Major Risk Warning](index=2&type=section&id=%E5%8D%81%E3%80%81%20%E9%87%8D%E5%A4%A7%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) The company's associate, Sinomach Zhijun Automobile Co., Ltd., was ruled bankrupt and reorganized in October 2024, with uncertainty regarding the success of the reorganization, posing a significant risk - The company's associate, Sinomach Zhijun Automobile Co., Ltd., was ruled bankrupt and reorganized by Ganzhou Intermediate People's Court in October 2024[8](index=8&type=chunk) - Uncertainty exists regarding the success of Sinomach Zhijun's reorganization, constituting a major risk[8](index=8&type=chunk) [Section I Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) [Definitions of Common Terms](index=4&type=section&id=%E5%B8%B8%E7%94%A8%E8%AF%8D%E8%AF%AD%E9%87%8A%E4%B9%89) This section defines common terms used in the report, including legal and regulatory bodies, company names, and core business activities - This section clarifies the definitions of common terms used in the report, covering laws and regulations, regulatory bodies, the company and its related parties (e.g., Sinomach Group, China Auto Engineering, Sinomach Auto Trade), and core businesses (e.g., automotive engineering business)[13](index=13&type=chunk) [Section II Company Profile and Key Financial Indicators](index=5&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) [Company Basic Information](index=5&type=section&id=%E4%B8%80%E3%80%81%20%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section introduces Sinomach Automobile Co., Ltd.'s Chinese name, abbreviation, foreign name, and legal representative, Dai Min - The company's Chinese name is **Sinomach Automobile Co., Ltd.**, abbreviated as **Sinomach Automobile**, with **Dai Min** as the legal representative[15](index=15&type=chunk) [Contact Information](index=5&type=section&id=%E4%BA%8C%E3%80%81%20%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section provides contact details for the company's Board Secretary, Zhang Zhiliang, including address, phone, fax, and email - The company's Board Secretary is **Zhang Zhiliang**, located at North Building, Zhongke Resources Building, No. 6 South 3rd Street, Zhongguancun, Haidian District, Beijing; phone and fax are **010-88825988**, and email is **600335@sinomach-auto.com**[16](index=16&type=chunk) [Changes in Basic Information](index=5&type=section&id=%E4%B8%89%E3%80%81%20%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 discloses historical changes in the company's registered address and lists the current office address, postal code, and company website, with no changes during the reporting period - The company's registered address has changed historically; currently, it is No. 2-1605, No. 2 Rongyuan Road, Huayuan Industrial Zone, Binhai High-tech Zone, Tianjin, and the office address is North Building, Zhongke Resources Building, No. 6 South 3rd Street, Zhongguancun, Haidian District, Beijing[17](index=17&type=chunk) - The company's website is **http://www.sinomach-auto.com**, and email is **600335@sinomach-auto.com**[17](index=17&type=chunk) [Information Disclosure and Document Availability](index=5&type=section&id=%E5%9B%9B%E3%80%81%20%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) This section specifies the company's designated newspapers for information disclosure, the website for semi-annual reports, and the location for report availability, with no changes during the reporting period - The company's designated newspapers for information disclosure are "China Securities Journal" and "Shanghai Securities News", and the report is published on **www.sse.com.cn**[18](index=18&type=chunk) - The company's semi-annual report is available at the company's Board of Directors Office[18](index=18&type=chunk) [Company Stock Information](index=5&type=section&id=%E4%BA%94%E3%80%81%20%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) This section provides brief information on the company's A-shares, including the listing exchange, stock abbreviation, stock code, and previous stock abbreviation Company Stock Information | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | Previous Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | Sinomach Automobile | 600335 | *ST Sheng Gong | [Key Accounting Data and Financial Indicators](index=5&type=section&id=%E4%B8%83%E3%80%81%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In the first half of 2025, the company's operating revenue decreased by **11.64%** to **16.829 billion yuan**, and net profit attributable to shareholders decreased by **14.32%** to **213 million yuan**, while net cash flow from operating activities significantly increased by **1,450.13%** to **3.418 billion yuan** 2025 H1 Key Accounting Data | Indicator | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 16,828,589,957.58 yuan | 19,044,961,199.85 yuan | -11.64 | | Total Profit | 300,984,334.57 yuan | 310,308,983.14 yuan | -3.00 | | Net Profit Attributable to Shareholders of Listed Company | 212,747,193.45 yuan | 248,294,569.33 yuan | -14.32 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Items) | 202,638,139.69 yuan | 202,299,229.80 yuan | 0.17 | | Net Cash Flow from Operating Activities | 3,418,387,757.13 yuan | 220,523,296.37 yuan | 1,450.13 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 11,500,573,229.69 yuan | 11,395,403,847.68 yuan | 0.92 | | Total Assets (Period-end) | 32,685,590,006.39 yuan | 35,191,003,384.31 yuan | -7.12 | 2025 H1 Key Financial Indicators | Indicator | Current Period (Jan-Jun) | Prior Year Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan／share) | 0.1422 | 0.1660 | -14.34 | | Diluted Earnings Per Share (yuan／share) | 0.1422 | 0.1660 | -14.34 | | Basic Earnings Per Share (Excluding Non-Recurring Items) (yuan／share) | 0.1355 | 0.1352 | 0.22 | | Weighted Average Return on Net Assets (%) | 1.85 | 2.25 | Decrease of 0.40 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Items) (%) | 1.76 | 1.83 | Decrease of 0.07 percentage points | [Non-Recurring Gains and Losses](index=6&type=section&id=%E4%B9%9D%E3%80%81%20%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) Non-recurring gains and losses for the reporting period totaled **10.1091 million yuan**, primarily including government subsidies, disposal gains/losses of non-current assets, and reversal of impairment provisions for receivables, net of fair value changes and income tax effects 2025 H1 Non-Recurring Gains and Losses | Non-Recurring Gain/Loss Item | Amount (RMB yuan) | | :--- | :--- | | Disposal gains/losses of non-current assets | 1,471,190.28 | | Government subsidies recognized in current profit/loss | 12,939,433.24 | | Gains/losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and disposal gains/losses | -21,354,546.33 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 15,707,486.22 | | Other non-operating income and expenses | 14,568,166.18 | | Less: Income tax impact | 5,328,067.38 | | Minority interest impact (after tax) | 7,894,608.45 | | Total | 10,109,053.76 | [Section III Management Discussion and Analysis](index=8&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) [Industry and Main Business Overview](index=8&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) In H1 2025, China's automotive market saw production and sales exceed **15 million units**, with domestic brands gaining market share and NEV production/sales growing over **40%**; the company, as a Sinomach Group subsidiary, focuses on automotive engineering and circulation services - In H1 2025, China's automotive production and sales completed **15.621 million units** and **15.653 million units** respectively, with YoY growth of **12.5%** and **11.4%**[27](index=27&type=chunk) - Sales of domestic brand passenger vehicles reached **9.270 million units** in H1, a **25.0% YoY increase**, capturing a market share of **68.5%**, up **6.6 percentage points** from 2024[27](index=27&type=chunk) - NEV production and sales reached **6.968 million units** and **6.937 million units** respectively, with YoY growth of **41.4%** and **40.3%**, and a market penetration rate of **44.3%**[28](index=28&type=chunk) - The company, a large integrated automotive service enterprise under Sinomach Group, focuses on automotive engineering system services and automotive circulation operation services, promoting the coordinated development of its four main businesses: automotive engineering, automotive import and domestic circulation, automotive leasing, and automotive and parts export[29](index=29&type=chunk)[32](index=32&type=chunk) [Industry Conditions](index=8&type=section&id=(%E4%B8%80)%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%A4%84%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) In H1 2025, China's automotive production and sales both surpassed **15 million units**, with domestic brands achieving a **68.5%** market share; imported car demand declined, while NEV production and sales grew over **40%**, and NEV exports surged by **75.2%** - In H1 2025, China's automotive production and sales completed **15.621 million units** and **15.653 million units** respectively, with YoY growth of **12.5%** and **11.4%**[27](index=27&type=chunk) - Domestic brand passenger vehicles sold **9.270 million units** in H1, a **25.0% YoY increase**, reaching a market share of **68.5%**[27](index=27&type=chunk) - China imported **224,000 vehicles**, a **34.2% YoY decrease**, with terminal sales of **277,000 units**, a **14.5% YoY decrease**[27](index=27&type=chunk) - NEV production and sales reached **6.968 million units** and **6.937 million units** respectively, with YoY growth of **41.4%** and **40.3%**, and a market penetration rate of **44.3%**[28](index=28&type=chunk) - China's automotive exports reached **3.083 million units**, a **10.4% YoY increase**, with NEV exports reaching **1.060 million units**, a **75.2% YoY increase**[28](index=28&type=chunk) [Description of Main Business](index=8&type=section&id=(%E4%BA%8C)%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 businesses include automotive engineering system services (global leading painting and general assembly line solutions) and automotive circulation operation services (multi-brand trade, ToB/ToG leasing, and overseas export exploration) - The company is a large integrated automotive service enterprise under the Fortune Global 500 Sinomach Group, and the only central enterprise among leading players in China's automotive circulation industry[32](index=32&type=chunk) - Automotive engineering business is a core strength, offering full-chain, full-lifecycle engineering technical services, with painting and general assembly line system solutions in a globally leading position[33](index=33&type=chunk) - Automotive import and domestic circulation business is a foundational segment, a leading multi-brand automotive import trade service provider in China, operating **20 4S stores**[34](index=34&type=chunk) - Automotive leasing business is a developing segment, primarily serving the domestic ToB and ToG markets, having established an operating network of over **70 branches**[34](index=34&type=chunk) - Automotive and parts export business is an exploratory segment, actively promoting the incubation of an overseas general distributor business model[34](index=34&type=chunk) [Analysis of Operating Conditions](index=9&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In H1 2025, facing a complex external environment, the company achieved operating revenue of **16.829 billion yuan**, a **11.64%** YoY decrease; total profit of **301 million yuan**, a **3.00%** YoY decrease; and net profit attributable to shareholders of **213 million yuan**, a **14.32%** YoY decrease, with progress across all four business segments 2025 H1 Operating Performance | Indicator | Amount (billion yuan) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 16.829 | -11.64 | | Total Profit | 0.301 | -3.00 | | Net Profit Attributable to Shareholders of Listed Company | 0.213 | -14.32 | - Automotive engineering business achieved both quantitative and qualitative growth, deepening its presence in domestic and international markets, securing projects with new energy vehicle manufacturers like BYD, Xiaomi, and Leapmotor, and undertaking international projects for Volvo and BYD Thailand[36](index=36&type=chunk) - Core technologies continued to advance, with R&D into low-carbon solutions for painting workshops and the AE-SolutionX interconnected intelligent manufacturing platform; R&D investment in H1 totaled **311.7462 million yuan**[37](index=37&type=chunk)[38](index=38&type=chunk) - Automotive import and domestic circulation business consolidated and expanded, strengthening import operations and accelerating the development of domestic brands (e.g., Volvo, Zeekr, Lantu), transforming port operations, and expanding digital-driven power battery circulation chain business[39](index=39&type=chunk) - Automotive leasing business continuously improved its service system, with steady growth in long-term leasing and rapid growth in ecosystem business[40](index=40&type=chunk) - Automotive and parts export business showed initial results from restructuring and integration, actively exploring overseas markets, and building competitive advantages in complete vehicle exports[41](index=41&type=chunk) [Analysis of Core Competencies](index=10&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies remained largely unchanged, primarily stemming from its central enterprise background, resource capabilities, dual structure of automotive engineering and circulation operations, industry position, and global presence - The company's core competencies include advantages from its central enterprise background, resource capabilities, dual structure of automotive engineering system services and automotive circulation operation services, industry position, and global presence[42](index=42&type=chunk) - During the reporting period, there were no significant changes in the company's core competencies[42](index=42&type=chunk) [Key Operating Conditions](index=10&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) This section analyzes changes in the company's H1 2025 financial statement items, including revenue, costs, expenses, and net cash flow, and discloses asset-liability status, **7.33%** overseas assets, equity investments, fair value financial assets, and performance of major subsidiaries and associates - Operating revenue decreased by **11.64% YoY**, primarily due to a decline in revenue from automotive import and domestic circulation businesses[45](index=45&type=chunk) - Net cash flow from operating activities significantly increased by **1,450.13%**, mainly due to a YoY decrease in cash paid for goods purchased[45](index=45&type=chunk) - Financial expenses decreased by **253.01% YoY**, primarily due to an increase in net exchange gains compared to the same period last year[45](index=45&type=chunk) - Period-end inventory decreased by **36.69% YoY**, mainly due to reduced procurement in automotive import and domestic circulation businesses[46](index=46&type=chunk) - Overseas assets totaled **2.397 billion yuan**, accounting for **7.33%** of total assets[48](index=48&type=chunk) - The company's wholly-owned subsidiary, China Auto Engineering, increased capital by **245 million yuan** to its wholly-owned subsidiary, China Auto Engineering Germany Co., Ltd[50](index=50&type=chunk) [Financial Analysis of Main Business](index=10&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) In H1 2025, the company's operating revenue decreased by **11.64%**, with a corresponding **11.04%** decrease in operating costs; sales and R&D expenses fell by **17.17%** and **27.44%** respectively, while financial expenses significantly decreased by **253.01%** due to increased net exchange gains, and net cash flow from operating activities surged by **1,450.13%** Analysis of Changes in Financial Statement Items | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 16,828,589,957.58 | 19,044,961,199.85 | -11.64 | Decrease in revenue scale of automotive import and domestic circulation business | | Operating Cost | 15,575,906,020.09 | 17,509,469,974.43 | -11.04 | Costs decreased with revenue scale | | Selling Expenses | 214,406,089.83 | 258,835,849.81 | -17.17 | Decrease in labor costs and depreciation/amortization expenses YoY | | Administrative Expenses | 399,327,555.86 | 411,506,175.36 | -2.96 | Decrease in depreciation/amortization expenses YoY | | Financial Expenses | -52,496,350.02 | 34,308,030.52 | -253.01 | Increase in net exchange gains compared to the same period | | R&D Expenses | 311,746,189.42 | 429,630,957.49 | -27.44 | Decrease in R&D investment in the current period compared to the same period | | Net Cash Flow from Operating Activities | 3,418,387,757.13 | 220,523,296.37 | 1,450.13 | Decrease in cash paid for goods purchased in the current period | | Net Cash Flow from Investing Activities | -945,991,978.77 | -299,217,199.90 | Not applicable | Increase in cash paid for acquisition of long-term assets in the current period | | Net Cash Flow from Financing Activities | -2,814,075,194.21 | -513,643,110.95 | Not applicable | Decrease in cash received from financing activities in the current period | [Asset and Liability Analysis](index=11&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, total assets decreased by **7.12%** YoY, while net assets attributable to shareholders increased by **0.92%**; significant decreases were seen in notes receivable, inventory, non-current assets due within one year, and long-term receivables, while advances from customers, employee compensation payable, and long-term borrowings increased substantially; overseas assets accounted for **7.33%** of total assets Changes in Assets and Liabilities | Item Name | Current Period End Amount (yuan) | % of Total Assets (Current Period End) | Prior Year End Amount (yuan) | % of Total Assets (Prior Year End) | % Change from Prior Year End | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Notes Receivable | 306,467,979.19 | 0.94 | 575,020,555.92 | 1.63 | -46.70 | Increase in notes matured and cashed in the current period | | Receivables Financing | 175,339,294.09 | 0.54 | 250,943,918.41 | 0.71 | -30.13 | Decrease in notes to be discounted in the current period | | Inventory | 5,284,669,067.09 | 16.17 | 8,347,555,132.85 | 23.72 | -36.69 | Decrease in procurement for automotive import and domestic circulation business in the current period | | Non-current Assets Due Within One Year | 1,253,731.13 | 0.00 | 3,067,481.68 | 0.01 | -59.13 | Decrease in finance lease business and gradual maturity of receivables | | Long-term Receivables | 0.00 | 0.00 | 57,177.76 | 0.00 | -100.00 | Decrease in finance lease business and gradual maturity of receivables | | Construction in Progress | 24,168,825.81 | 0.07 | 48,930,562.55 | 0.14 | -50.61 | Decrease in vehicles awaiting license plates at period-end | | Advances from Customers | 43,199,822.58 | 0.13 | 15,446,429.27 | 0.04 | 179.68 | Increase in prepaid rent at period-end | | Employee Compensation Payable | 597,018,546.90 | 1.83 | 292,746,017.55 | 0.83 | 103.94 | Increase in employee compensation payable at period-end | | Taxes Payable | 191,227,702.53 | 0.59 | 287,108,272.66 | 0.82 | -33.40 | Decrease in taxes payable at period-end | | Non-current Liabilities Due Within One Year | 26,694,774.73 | 0.08 | 148,832,308.05 | 0.42 | -82.06 | Reclassification based on maturity, decrease in long-term borrowings due within one year | | Other Current Liabilities | 573,945,019.75 | 1.76 | 3,754,322,705.90 | 10.67 | -84.71 | Decrease in discounted but unmatured notes at period-end | | Long-term Borrowings | 522,888,927.44 | 1.60 | 130,716,167.31 | 0.37 | 300.02 | Increase in external borrowings for automotive leasing business in the current period | - Overseas assets amounted to **2,397,274,093.94 yuan**, accounting for **7.33%** of total assets[48](index=48&type=chunk) [Analysis of Investment Status](index=12&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) The company's wholly-owned subsidiary, China Auto Engineering, increased capital by **245 million yuan** to its German subsidiary; at the end of the reporting period, the company's financial assets measured at fair value totaled **1.41 billion yuan**, including **87.16 million yuan** in trading financial assets, **175 million yuan** in receivables financing, and **1.148 billion yuan** in other equity instrument investments - The company's wholly-owned subsidiary, China Auto Engineering, injected **245 million yuan** of its own funds into its wholly-owned subsidiary, China Auto Engineering Germany Co., Ltd., with the entire capital injection recorded as capital reserve[50](index=50&type=chunk) Changes in Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (yuan) | Fair Value Change Gain/Loss (yuan) | Purchases (yuan) | Sales/Redemptions (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading financial assets | 108,864,614.85 | -21,354,546.33 | 0 | 0 | 87,161,639.52 | | Receivables financing | 250,943,918.41 | 0 | 2,993,392,332.22 | 3,068,996,956.54 | 175,339,294.09 | | Other equity instrument investments | 1,147,913,872.19 | 0 | 0 | 0 | 1,147,913,872.19 | | Total | 1,507,722,405.45 | -21,354,546.33 | 2,993,392,332.22 | 3,068,996,956.54 | 1,410,414,805.80 | [Analysis of Major Holding and Associate Companies](index=14&type=section&id=(%E5%85%AD)%20%E4%B8%BB%E8%90%A5%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%AF%B9%E5%85%AC%E5%8F%B8%E5%87%80%E5%88%A9%E6%B6%A6%E5%BD%B1%E5%93%8D%E8%BE%BE10%25%E4%BB%A5%E4%B8%8A%E7%9A%84%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E6%83%85%E5%86%B5) This section lists financial data for the company's major holding and associate companies, including China National Heavy Duty Truck Group Fourth Design Institute Co., Ltd., China National Automobile Import & Export Co., Ltd., Sinomach Auto Trade Services Co., Ltd., Fourth Design Institute Thailand Co., Ltd., and China Auto Engineering Co., Ltd., which contribute significant profits across automotive engineering, import/domestic circulation, and leasing businesses Major Subsidiaries and Associates with over 10% Impact on Company's Net Profit | Company Name | Company Type | Main Business | Registered Capital (10,000 yuan) | Total Assets (10,000 yuan) | Net Assets (10,000 yuan) | Operating Revenue (10,000 yuan) | Operating Profit (10,000 yuan) | Net Profit (10,000 yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | China National Heavy Duty Truck Group Fourth Design Institute Co., Ltd. | Subsidiary | Automotive engineering business | 40,000 | 503,219 | 175,951 | 143,782 | 8,664 | 7,915 | | China National Automobile Import & Export Co., Ltd. | Subsidiary | Automotive import and domestic circulation business | 105,312 | 932,710 | 513,271 | 712,015 | 6,421 | 5,296 | | Sinomach Auto Trade Services Co., Ltd. | Subsidiary | Automotive leasing business | 70,000 | 297,596 | 110,849 | 47,599 | 4,100 | 3,156 | | Fourth Design Institute Thailand Co., Ltd. | Subsidiary | Automotive engineering business | 196 | 69,480 | 17,336 | 34,221 | 3,637 | 3,060 | | China Auto Engineering Co., Ltd. | Subsidiary | Automotive engineering business | 147,895 | 1,024,219 | 160,617 | 454,392 | 4,770 | 2,770 | [Other Disclosures](index=14&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 macroeconomic, market competition, and international operation risks; to address these, it is developing its "15th Five-Year Plan," maintaining cash dividends, strengthening governance and investor communication, and actively practicing ESG principles, earning industry recognition - The company faces macroeconomic risks such as stalled global economic recovery and increasing trade protectionism[54](index=54&type=chunk) - The domestic automotive industry faces challenges of "volume growth, profit reduction," imported car market pressure, fragmented automotive leasing market, and international trade barriers and localization challenges for automotive exports[55](index=55&type=chunk) - The company's automotive engineering business involving the US market faces increasing policy risks, and automotive and parts exports face tightening policy tariffs and exchange rate fluctuation risks[55](index=55&type=chunk) - The company has fully commenced the preparation of its "15th Five-Year Plan" to guide high-quality development[56](index=56&type=chunk) - The company continued to implement interim dividends in H1 2025, proposing a total cash dividend of **44.8737 million yuan**, and formulated the "Shareholder Dividend Return Plan for the Next Three Years (2025-2027)," committing to annual cash dividends of no less than **35%** of net profit attributable to the parent company[56](index=56&type=chunk) - The company strictly adheres to laws and regulations to improve its corporate governance structure, revising documents such as the "Articles of Association," and ensuring that information disclosure is truthful, accurate, complete, timely, and fair[57](index=57&type=chunk) - The company strengthens investor communication through platforms like "SSE e-interaction," investor hotlines, and performance briefings, and launched visualized annual report interpretations and dedicated ESG communications[57](index=57&type=chunk)[58](index=58&type=chunk) - The company disclosed its "2024 Environmental, Social and Governance (ESG) Report," received the highest Wind ESG rating of **AA** in its industry for 2024, and was selected as a "2025 China Automotive Industry Sustainable Development Practice Case" with the "Smart Innovation Technology" honor[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) [Profit Distribution 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 plan proposes a cash dividend of **0.30 yuan** (tax inclusive) per 10 shares, totaling **44.8737 million yuan** (tax inclusive), with no bonus shares or capital reserve conversion Semi-Annual Profit Distribution Plan | Indicator | Amount | | :--- | :--- | | Bonus shares per 10 shares (shares) | 0 | | Cash dividend per 10 shares (yuan) (tax inclusive) | 0.30 | | Capital reserve conversion per 10 shares (shares) | 0 | | Total proposed cash dividend (tax inclusive) | 44,873,660.76 yuan | - If the company's total share capital changes before the equity distribution record date, the total distribution amount will remain unchanged, and the per-share distribution ratio will be adjusted accordingly[60](index=60&type=chunk) [Environmental Information Disclosure](index=17&type=section&id=%E5%9B%9B%E3%80%81%E7%BA%B3%E5%85%A5%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E4%BE%9D%E6%B3%95%E6%8A%AB%E9%9C%B2%E4%BC%81%E4%B8%9A%E5%90%8D%E5%8D%95%E7%9A%84%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E4%B8%BB%E8%A6%81%E5%AD%90%E5%85%AC%E5%8F%B8%E7%9A%84%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%83%85%E5%86%B5) The company has two subsidiaries, Sinomach (Tianjin) Automotive Equipment Co., Ltd. and Sinomach (Tianjin) System Engineering Co., Ltd., included in the list of enterprises required to disclose environmental information, with their reports available via specified links - The company has **2 subsidiaries** included in the list of enterprises required to disclose environmental information by law[61](index=61&type=chunk) Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law | No. | Enterprise Name | Query Index for Environmental Information Disclosure Report | | :--- | :--- | :--- | | 1 | Sinomach (Tianjin) Automotive Equipment Co., Ltd. | https://hjxxpl.sthj.tj.gov.cn:10800//gkwz/lspl/qyxq?id=de2617e77e92412d9805f2ac3eb5f515&publicView=true | | 2 | Sinomach (Tianjin) System Engineering Co., Ltd. | https://hjxxpl.sthj.tj.gov.cn:10800//gkwz/ndpl/qyxq?id=2024-A383237E762946DDAA7C75381FD221B0 | [Poverty Alleviation and Rural Revitalization](index=18&type=section&id=%E4%BA%94%E3%80%81%E5%B7%A9%E5%9B%BA%E6%8B%93%E5%B1%95%E8%84%B1%E8%B4%AB%E6%94%BB%E5%9D%9A%E6%88%90%E6%9E%9C%E3%80%81%E4%B9%A1%E6%9D%91%E6%8C%AF%E5%85%B4%E7%AD%89%E5%B7%A5%E4%BD%9C%E5%85%B7%E4%BD%93%E6%83%85%E5%86%B5) In 2025, the company increased funding for Sinomach Group's assistance work in Huaibin County, Henan Province, investing **1.28 million yuan** in H1, a **5%** increase, and achieved **1.7622 million yuan** in consumption-based assistance; its subsidiary, Fourth Design Institute, significantly aided Sanwang Village in Yichuan County, Luoyang City, Henan Province, through team building, environmental improvement, safety, and collective economic growth, including building **700 meters** of new production roads and generating **35,000 yuan** from new charging pile projects - In H1, the company invested **1.28 million yuan** in Sinomach Group's assistance work in Huaibin County, Henan Province, an amount that increased by **5%** compared to last year[62](index=62&type=chunk) - Through a "Consumption-based Poverty Alleviation for Spring Festival" fair and online platforms, the company's consumption-based assistance totaled **1.7622 million yuan** in H1[62](index=62&type=chunk) - The company's wholly-owned subsidiary, Fourth Design Institute, undertook targeted assistance work in Sanwang Village, Jiuho Town, Yichuan County, Luoyang City, Henan Province, achieving results in team building, environmental improvement, safety, and strengthening the collective economy[63](index=63&type=chunk) - Fourth Design Institute helped Sanwang Village build **700 meters of new production roads** and successfully applied for the "Beautiful Rural Roads, Streetlights, and Irrigation Canal Renovation Project"[63](index=63&type=chunk) - In H1 2025, Sanwang Village signed a new contract with PetroChina for **5 charging pile projects**, generating an additional **35,000 yuan** in collective income for the village[63](index=63&type=chunk) [Section V Important Matters](index=19&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Fulfillment of Commitments](index=19&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 controller, Sinomach Group, consistently and strictly fulfilled multiple long-term commitments during the reporting period, including resolving property title defects, ensuring company independence, and addressing related-party transactions and horizontal competition, thereby ensuring stable business operations and protecting legal rights - Sinomach Group committed that if incomplete property lease procedures adversely affect Sinomach Auto Trade's operations, it would provide or arrange similar properties with complete ownership documents within six months and fully compensate for losses in cash[65](index=65&type=chunk) - Sinomach Group committed to ensuring the company's independence in personnel, assets, finance, organization, and business, and strictly fulfills this commitment long-term[65](index=65&type=chunk)[67](index=67&type=chunk) - Sinomach Group committed to avoiding and reducing related-party transactions with the listed company, and for unavoidable transactions, it will adhere to market fairness, impartiality, and openness principles, and fulfill information disclosure obligations according to law[66](index=66&type=chunk)[67](index=67&type=chunk) - Sinomach Group committed not to engage in businesses identical or similar to those of the listed company to avoid horizontal competition, and voluntarily waives commercial opportunities that may unfairly affect the listed company[66](index=66&type=chunk)[67](index=67&type=chunk)[70](index=70&type=chunk) - Sinomach Group committed to resolving property title defect issues, and if not resolved as scheduled, leading to losses for the company, it will provide timely and full cash compensation[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk)[71](index=71&type=chunk) [Significant Related-Party Transactions](index=26&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company disclosed its estimated 2025 daily related-party transactions and signed a financial services cooperation agreement with Sinomach Finance Co., Ltd., covering deposit and loan services, and engaged in accounts receivable factoring with Sinomach Commercial Factoring Co., Ltd.; the company's deposits with Sinomach Finance exceeded its loans, and the cooperation was based on mutual benefit, without coercion or harm to shareholder interests - The company approved the estimated 2025 daily related-party transactions and signed a financial services cooperation agreement with Sinomach Finance Co., Ltd., with an estimated deposit balance not exceeding **6 billion yuan** and a comprehensive credit line of **6 billion yuan**[73](index=73&type=chunk) - The company plans to conduct accounts receivable factoring business with Sinomach Commercial Factoring Co., Ltd., for a total amount not exceeding **500 million yuan**[73](index=73&type=chunk) 2025 H1 Deposit Business with Sinomach Finance | Related Party | Relationship | Max Daily Deposit Limit (10,000 yuan) | Deposit Interest Rate Range | Beginning Balance (10,000 yuan) | Total Deposits This Period (10,000 yuan) | Total Withdrawals This Period (10,000 yuan) | Ending Balance (10,000 yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sinomach Finance Co., Ltd. | Controlled by the same parent company | 600,000.00 | 0.15%-1.25% | 373,224.71 | 5,154,229.23 | 5,172,865.30 | 354,588.64 | 2025 H1 Loan Business with Sinomach Finance | Related Party | Relationship | Loan Limit (10,000 yuan) | Loan Interest Rate Range | Beginning Balance (10,000 yuan) | Total Loans This Period (10,000 yuan) | Total Repayments This Period (10,000 yuan) | Ending Balance (10,000 yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sinomach Finance Co., Ltd. | Controlled by the same parent company | 600,000.00 | 2.2%-3.2% | 170,806.00 | 283,113.87 | 265,346.07 | 188,573.80 | - The company's deposit balance with Sinomach Finance is higher than its loan balance, and the cooperation is based on mutual benefit and equality, with no coercion or harm to the company's and shareholders' interests[84](index=84&type=chunk) [Significant Contracts and Guarantees](index=28&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) During the reporting period, the company had zero external guarantees, but guarantees for subsidiaries totaled **47.2161 million yuan**, representing **0.41%** of net assets, with **40.0281 million yuan** for subsidiaries with asset-liability ratios exceeding **70%**; the company centrally manages subsidiary guarantees, posing extremely low default risk Company's Total Guarantees (Including Guarantees for Subsidiaries) | Indicator | Amount (10,000 yuan) | | :--- | :--- | | Total guarantees incurred during the reporting period (excluding guarantees for subsidiaries) | 0 | | Total guarantee balance at the end of the reporting period (A) (excluding guarantees for subsidiaries) | 0 | | Total guarantees incurred for subsidiaries during the reporting period | 4,721.61 | | Total guarantee balance for subsidiaries at the end of the reporting period (B) | 4,721.61 | | Total guarantees (A+B) | 4,721.61 | | Ratio of total guarantees to company's net assets (%) | 0.41 | | Amount of guarantees provided for shareholders, actual controllers, and their related parties (C) | 0 | | Amount of debt guarantees provided directly or indirectly for guaranteed parties with asset-liability ratios exceeding 70% (D) | 4,002.81 | | Amount of guarantees exceeding 50% of net assets (E) | 0 | | Total of the above three guarantee amounts (C+D+E) | 4,002.81 | - The company has no guarantees for external companies; all guaranteed companies are subsidiaries within the consolidated scope, and the company centrally manages guarantee credit for all subsidiaries, resulting in extremely low default risk and no risk of compensatory payment[87](index=87&type=chunk) [Section VI Share Changes and Shareholder Information](index=31&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) [Share Capital Changes](index=31&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[90](index=90&type=chunk) [Shareholder Information](index=31&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **38,696** common shareholders; among the top ten shareholders, China National Machinery Industry Corporation held **68.70%**, serving as the controlling shareholder, with other shareholders holding less than **1%** each - As of the end of the reporting period, the company had a total of **38,696 common shareholders**[91](index=91&type=chunk) Top Ten Shareholders' Holdings as of the End of the Reporting Period | Shareholder Name | Shares Held at Period End (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | China National Machinery Industry Corporation | 1,027,608,282 | 68.70 | State-owned legal person | | Hong Kong Securities Clearing Company Limited | 11,997,634 | 0.80 | Unknown | | China State-owned Enterprise Structural Adjustment Fund Co., Ltd. | 8,222,408 | 0.55 | State-owned legal person | | China Merchants Bank Co., Ltd. - Southern CSI 1000 ETF | 5,513,700 | 0.37 | Unknown | | Li Suhong | 4,789,800 | 0.32 | Unknown | | Industrial and Commercial Bank of China Co., Ltd. - GF Multi-Factor Flexible Allocation Mixed Securities Investment Fund | 4,558,800 | 0.30 | Unknown | | China Merchants Bank Co., Ltd. - Huaxia CSI 1000 ETF | 3,255,600 | 0.22 | Unknown | | Zhuang Hancheng | 2,948,569 | 0.20 | Unknown | | Industrial and Commercial Bank of China Co., Ltd. - GF CSI 1000 ETF | 2,629,400 | 0.18 | Unknown | | Penghua Fund Management Co., Ltd. - Social Security Fund 1804 Portfolio | 2,292,150 | 0.15 | Unknown | - There are no related-party transactions or concerted actions between the controlling shareholder, China National Machinery Industry Corporation, and the second to tenth largest shareholders[93](index=93&type=chunk) [Section VII Bond-Related Information](index=34&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) [Corporate Bonds and Debt Financing Instruments](index=34&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%EF%BC%88%E5%90%AB%E4%BC%81%E4%B8%9A%E5%80%BA%E5%88%B8%EF%BC%89%E5%92%8C%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E4%B8%9A%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7) During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments [Convertible Corporate Bonds](index=34&type=section&id=%E4%BA%8C%E3%80%81%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E6%83%85%E5%86%B5) During the reporting period, the company had no convertible corporate bonds [Section VIII Financial Report](index=35&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) [Audit Report](index=35&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This semi-annual report is unaudited - This semi-annual report is unaudited[99](index=99&type=chunk) [Financial Statements](index=35&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's H1 2025 consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, providing a comprehensive view of its financial position, operating results, and cash flows [Consolidated Balance Sheet](index=35&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the company's consolidated total assets were **32.686 billion yuan**, a **7.12%** decrease from the end of the previous year; consolidated total liabilities were **21.261 billion yuan**, an **11.09%** decrease; and total equity attributable to parent company owners was **11.501 billion yuan**, a **0.92%** increase Key Consolidated Balance Sheet Data (June 30, 2025) | Item | June 30, 2025 (yuan) | December 31, 2024 (yuan) | | :--- | :--- | :--- | | Total Assets | 32,685,590,006.39 | 35,191,003,384.31 | | Total Liabilities | 21,261,384,365.15 | 23,871,005,244.77 | | Total Equity Attributable to Parent Company Owners | 11,500,573,229.69 | 11,395,403,847.68 | | Total Owners' Equity | 11,424,205,641.24 | 11,319,998,139.54 | [Consolidated Income Statement](index=39&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In H1 2025, the company's consolidated total operating revenue was **16.829 billion yuan**, a **11.64%** YoY decrease; consolidated total profit was **301 million yuan**, a **3.00%** YoY decrease; and net profit attributable to parent company shareholders was **213 million yuan**, a **14.32%** YoY decrease Key Consolidated Income Statement Data (Jan-Jun 2025) | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 16,828,589,957.58 | 19,044,961,199.85 | | Total Operating Costs | 16,522,515,587.52 | 18,715,608,760.10 | | Total Profit | 300,984,334.57 | 310,308,983.14 | | Net Profit | 216,507,736.00 | 256,908,763.42 | | Net Profit Attributable to Parent Company Shareholders | 212,747,193.45 | 248,294,569.33 | | Basic Earnings Per Share (yuan/share) | 0.1422 | 0.1660 | [Consolidated Cash Flow Statement](index=42&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In H1 2025, the company's net cash flow from operating activities was **3.418 billion yuan**, a significant **1,450.13%** YoY increase; net cash flow from investing activities was **-946 million yuan**; and net cash flow from financing activities was **-2.814 billion yuan** Key Consolidated Cash Flow Statement Data (Jan-Jun 2025) | Item | H1 2025 (yuan) | H1 2024 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 3,418,387,757.13 | 220,523,296.37 | | Net Cash Flow from Investing Activities | -945,991,978.77 | -299,217,199.90 | | Net Cash Flow from Financing Activities | -2,814,075,194.21 | -513,643,110.95 | | Net Increase in Cash and Cash Equivalents | -293,295,987.18 | -603,735,483.50 | | Cash and Cash Equivalents at Period End | 4,682,412,265.08 | 2,584,819,069.88 | [Company Basic Information](index=50&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) Sinomach Automobile Co., Ltd., established in March 1999 and listed in March 2001, is controlled by Sinomach Group, with **1.496 billion shares**, primarily engaged in automotive engineering system services and automotive circulation operation services, ultimately controlled by the State-owned Assets Supervision and Administration Commission - Sinomach Automobile Co., Ltd. was established in **March 1999** and listed on the Shanghai Stock Exchange in **March 2001**[125](index=125&type=chunk) - After multiple major asset restructurings, as of June 30, 2025, the company's total share capital is **1,495,788,692 shares**, with Sinomach Group holding **68.70%** of the shares[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) - The company's main businesses are automotive engineering system services and automotive circulation operation services, including automotive engineering, automotive import and domestic circulation, automotive leasing, and automotive and parts export[134](index=134&type=chunk) - The company's parent company and ultimate controlling party are both Sinomach Group, controlled by the State-owned Assets Supervision and Administration Commission of the State Council[135](index=135&type=chunk) [Basis of Financial Statement Preparation](index=52&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) These financial statements are prepared based on the company's going concern assumption, in accordance with enterprise accounting standards and relevant regulations, with no significant doubts about its ability to continue as a going concern - These financial statements are prepared on a going concern basis, in accordance with relevant provisions of enterprise accounting standards[137](index=137&type=chunk) - There are no matters or circumstances that cause significant doubt about the company's ability to continue as a going concern within 12 months from the end of the reporting period[138](index=138&type=chunk) [Significant Accounting Policies and Estimates](index=52&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 specific accounting policies and estimates for financial instrument impairment, fixed asset depreciation, intangible asset amortization, and revenue recognition, ensuring compliance with enterprise accounting standards and accurate reflection of financial status - The company has formulated specific accounting policies and estimates for transactions and events such as financial instrument impairment, fixed asset depreciation, intangible asset amortization, and revenue recognition, based on its actual production and operation characteristics[139](index=139&type=chunk) - The company adheres to the requirements of enterprise accounting standards to truthfully and completely reflect its financial position, operating results, and cash flows[140](index=140&type=chunk) - The company classifies financial assets into three categories: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss, detailing recognition criteria, measurement methods, and derecognition conditions[150](index=150&type=chunk) - The company performs impairment testing on various financial assets based on expected credit losses, using simplified measurement methods or general models for loss provisions depending on changes in credit risk[155](index=155&type=chunk)[156](index=156&type=chunk) - The company's revenue recognition principle involves identifying individual performance obligations within a contract and determining whether they are fulfilled over time or at a point in time, recognizing revenue based on the progress of fulfillment or when the customer obtains control[208](index=208&type=chunk) [Taxation](index=70&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) This section discloses the company's main tax categories and rates, including VAT, consumption tax, and corporate income tax, detailing different tax rates for various entities; several subsidiaries enjoy preferential corporate income tax rates of **15%** or **20%** due to high-tech enterprise status or small and micro enterprise classification Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Sales of goods and taxable services | 3%、5%、6%、9%、13% | | Consumption Tax | Taxable sales amount (volume) | 3%-40% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 1%、5%、7% | | Corporate Income Tax | Taxable income | 9%、15%、16.5%、20%、21%、25%、27.8%、33% | | Land Appreciation Tax | Appreciation amount | Progressive rates based on appreciation rate | | Property Tax | Original value of property or rental income | 1.2%；12% | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | - Several of the company's subsidiaries (e.g., China Auto Engineering Co., Ltd., China National Heavy Duty Truck Group Fourth Design Institute Co., Ltd.) are recognized as high-tech enterprises and apply a **15% corporate income tax rate** for 2025[230](index=230&type=chunk)[231](index=231&type=chunk)[232](index=232&type=chunk) - Some subsidiaries (e.g., Sinomach Construction Engineering (Luoyang) Testing Co., Ltd., Beijing Sinomach Daoda Automobile Co., Ltd.) are classified as small and micro enterprises and apply a **20% preferential corporate income tax policy** for 2025 as per regulations[233](index=233&type=chunk)[234](index=234&type=chunk) [Notes to Consolidated Financial Statement Items](index=73&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 on consolidated financial statement items, including cash and bank balances, accounts receivable, inventory, long-term equity investments, short-term borrowings, employee compensation payable, operating revenue, and cash flows, disclosing period-end balances, beginning balances, and changes with explanations Cash and Bank Balances at Period End | Item | Ending Balance (yuan) | | :--- | :--- | | Cash on hand | 201,503.04 | | Bank deposits | 1,156,496,603.71 | | Other cash and bank balances | 908,662,497.00 | | Deposits with finance companies | 3,545,886,351.15 | | Total | 5,611,246,954.90 | | Of which: Funds deposited overseas | 745,327,790.96 | - Restricted cash and bank balances totaled **928,834,689.82 yuan** at period-end, primarily for bank acceptance bills, letters of guarantee, bank loans, and letter of credit margins[235](index=235&type=chunk) - Accounts receivable had a book balance of **7.318 billion yuan** at period-end, with **2.317 billion yuan** for individually impaired items and **5.001 billion yuan** for collectively impaired items[249](index=249&type=chunk) - Inventory had a book value of **5.285 billion yuan** at period-end, a **36.69% decrease** from the beginning of the period, mainly due to reduced procurement in automotive import and domestic circulation businesses[285](index=285&type=chunk) - Short-term borrowings totaled **2.227 billion yuan** at period-end, a **14.28% decrease** from the beginning of the period, with credit borrowings accounting for the largest proportion[339](index=339&type=chunk) - Net cash flow from operating activities was **3.418 billion yuan**, a significant **1,450.13% YoY increase**, primarily due to a decrease in cash paid for goods purchased[417](index=417&type=chunk) [Research and Development Expenses](index=121&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) In H1 2025, the company's total R&D expenditure was **311.7462 million yuan**, all expensed; key R&D projects included high-speed body line steel-aluminum hybrid connection application research, steel-aluminum hybrid body connection application research, and the development and application of high-flexibility intelligent stereo warehouse AE-ICube 2025 H1 R&D Expenditure | Project | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | 60jph high-speed body line steel-aluminum hybrid connection application research | 75,305,649.02 | 0 | | Steel-aluminum hybrid body connection application research | 44,056,886.61 | 0 | | Development and application of high-flexibility intelligent stereo warehouse AE-ICube | 10,402,473.25 | 0 | | Shanghai Jingyao Automotive LED Light Design Fee | 2,501,941.47 | 3,305,181.50 | | Other projects | 179,479,239.07 | 270,817,041.77 | | Total | 311,746,189.42 | 429,651,560.46 | | Of which: Expensed R&D expenditure | 311,746,189.42 | 429,630,957.49 | | Capitalized R&D expenditure | 0 | 20,602.97 | - All R&D expenditure in the current period was expensed, with no capitalized R&D expenditure[430](index=430&type=chunk) [Changes in Consolidation Scope](index=122&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) During the reporting period, the company's consolidation scope changed, primarily due to the liquidation and deregistration of Shanghai Yingsheng Automobile Sales and Service Co., Ltd., and the absorption merger of Tianjin Sinomach Industrial International Trade Co., Ltd Changes in Consolidation Scope Due to Other Reasons | Company Name | Equity Disposal Method | Equity Disposal Date | Net Assets at Disposal Date (yuan) | Net Profit from Beginning to Disposal Date (yuan) | | :--- | :--- | :--- | :--- | :--- | | Shanghai Yingsheng Automobile Sales and Service Co., Ltd. | Liquidation and deregistration | February 19, 2025 | -14,944,809.62 | -11,571.17 | | Tianjin Sinomach Industrial International Trade Co., Ltd. | Absorption merger | May 21, 2025 | 0.00 | 0.00 | [Interests in Other Entities](index=123&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) This section details the company's interests in subsidiaries, joint ventures, and associates; the company holds full or controlling interests in multiple subsidiaries engaged in automotive wholesale, retail, and engineering services, and has significant influence over associates like Beijing Zhuozhong Publishing Co., Ltd. and Xinbang (Zhuhai) Sci-Tech Industrial Development Co., Ltd - The company owns multiple wholly-owned subsidiaries, including China National Automobile Import & Export Co., Ltd. and China Auto Engineering Co., Ltd., as well as controlling subsidiaries like Sinomach Auto Trade Services Co., Ltd. and Ningbo Sinomach Ningxing Automobile Co., Ltd[434](index=434&type=chunk)[435](index=435&type=chunk)[436](index=436&type=chunk) - The company has significant influence over associates such as Beijing Zhuozhong Publishing Co., Ltd., Xinbang (Zhuhai) Sci-Tech Industrial Development Co., Ltd., and Sinomach Industrial (Zhuhai) Co., Ltd., through appointing directors to participate in decision-making[443](index=443&type=chunk)[444](index=444&type=chunk) - Tianjin Binhai Shengshi International Automobile Park Investment Development Co., Ltd. is included in the consolidation scope because the company holds **80%** of the voting rights through a entrustment agreement[437](index=437&type=chunk) - Jiangyin Sinomach Lexus Automobile Sales and Service Co., Ltd. and Tianjin Sinomach Peixian Automobile Service Co., Ltd., with company shareholdings of **45%** and **50%** respectively, are included in the consolidation scope as the company holds controlling interest as the largest shareholder[438](index=438&type=chunk)[439](index=439&type=chunk) - Xinbang (Zhuhai) Sci-Tech Industrial Development Co., Ltd. has accumulated unrecognized excess losses of **8.2218 million yuan**[447](index=447&type=chunk) [Government Grants](index=131&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) This section discloses the company's government grant-related liabilities and grants recognized in current profit or loss; at period-end, deferred income from asset-related government grants totaled **114.4146 million yuan**, and current period grants recognized in profit or loss totaled **13.2944 million yuan**, comprising **5.6659 million yuan** asset-related and **7.6285 million yuan** income-related Liabilities Related to Government Grants | Financial Statement Item | Beginning Balance (yuan) | New Grants This Period (yuan) | Transferred to Other Income This Period (yuan) | Ending Balance (yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred income | 119,698,672.22 | 381,800.65 | 5,665,903.98 | 114,414,568.89 | Asset-related | | Total | 119,698,672.22 | 381,800.65 | 5,665,903.98 | 114,414,568.89 | / | Government Grants Recognized in Current Profit or Loss | Type | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Asset-related | 5,665,903.98 | 3,858,400.65 | | Income-related | 7,628,467.19 | 20,677,995.39 | | Other | 2,700.00 | 0 | | Total | 13,294,371.17 | 24,539,096.04 | [Financial Instrument Risk Management](index=132&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 manages financial instrument risks by balancing risk and return to minimize negative impacts on operating performance, primarily addressing credit, liquidity, and market risks (interest rate, foreign exchange) through credit assessment, diversified financing, and foreign currency trading; financial asset transfers involved derecognition of endorsed or discounted notes receivable and receivables financing, while some supply chain debt instruments were not derecognized - The company's risk management objective is to balance risk and return, minimizing negative impacts on operating performance and maximizing shareholder interests[452](index=452&type=chunk) - The main financial instrument risks faced by the company include credit risk, liquidity risk, and market risk (interest rate risk, foreign exchange risk)[452](index=452&type=chunk) - To control credit risk, the company regularly assesses customer credit and monitors accounts receivable balances; the top five customers account for **54.16%** of the total[460](index=460&type=chunk) - To control liquidity risk, the company utilizes various financing methods such as bill settlement and bank loans, combining long-term and short-term financing appropriately[462](index=462&type=chunk) - The company's financial asset transfers primarily involve endorsing or discounting notes receivable and receivables financing, with **1.413 billion yuan** derecognized, while some supply chain debt instruments were not derecognized[471](index=471&type=chunk) [Fair Value Disclosure](index=138&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) This section discloses the company's assets and liabilities measured at fair value at period-end; total assets continuously measured at fair value were **1.41 billion yuan**, mainly comprising trading financial assets, receivables financing, and other equity instrument investments, with trading financial assets measured at Level 1 and other equity instrument investments at Level 3, detailing valuation techniques and key parameters Fair Value Measurement Items at Period End | Item | Level 1 Fair Value Measurement (yuan) | Level 2 Fair Value Measurement (yuan) | Level 3 Fair Value Measurement (yuan) | Total (yuan) | | :--- | :--- | :--- | :--- | :--- | | I. Continuous fair value measurement | | | | | | （I）Trading financial assets | 87,161,639.52 | 0 | 0 | 87,161,639.52 | | （II）Receivables financing | 0 | 0 | 175,339,294.09 | 175,339,294.09 | | （III）Other equity instrument investments | 0 | 0 | 1,147,913,872.19 | 1,147,913,872.19 | | Total assets continuously measured at fair value | 87,161,639.52 | 0 | 1,323,253,166.28 | 1,410,414,805.80 | - The market price for Level 1 fair value measurement items is determined by the closing price of equity instruments on **June 30, 2025**[474](index=474&type=chunk) - Level 3 fair value measurement items (e.g., Sinomach Finance Co., Ltd., Tianjin Lishen Battery Co., Ltd.) are valued using transaction comparable method, adjusted net asset book value method, or market approach[475](index=475&type=chunk) [Related Parties and Related-Party Transactions](index=139&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) This section details the company's parent company, subsidiaries, joint ventures, associates, and other related parties; during the

Important Notice, Table of Contents, and Definitions [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The Board of Directors and senior management affirm the report's accuracy and completeness, highlighting forward-looking statements and company risks - The company's Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions[4](index=4&type=chunk) - The company's head, chief accountant, and accounting department head declare the financial report is true, accurate, and complete[4](index=4&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) This section lists the eight main chapters of the report, covering company operations, finance, governance, and significant matters, with corresponding page numbers - The report comprises eight main chapters, covering company operations, finance, governance, and significant matters[7](index=7&type=chunk) [List of Reference Documents](index=4&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) Reference documents include signed financial statements, publicly disclosed company files, and the original semi-annual report signed by the chairman - Reference documents include financial statements signed and sealed by the legal representative, chief accountant, and head of the accounting department[9](index=9&type=chunk) - All original company documents and announcements publicly disclosed on designated websites and newspapers during the reporting period are available[10](index=10&type=chunk) - The original 2025 semi-annual report document signed by the company's chairman is included[11](index=11&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section defines common terms, including company abbreviations, reporting periods, currency units, and specialized logistics and semiconductor industry terminology - Defines company abbreviations, reporting period, prior year period, and currency units[13](index=13&type=chunk) - Explains logistics industry terms such as VMI (Vendor Managed Inventory), consolidation, supply chain, and Internet of Things[13](index=13&type=chunk) - Clarifies terms related to smart logistics and semiconductor material handling systems, including AGV trolleys, milk run, in-plant logistics, OHT, Lifter, Stocker, MCS, USC, and MSC[13](index=13&type=chunk) Company Profile and Key Financial Indicators [Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Jiangsu Hichain Logistics Co., Ltd., listed on the Shenzhen Stock Exchange under stock code 300873, is legally represented by Liang Chen Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Hichain Logistics | | Stock Code | 300873 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | 江苏海晨物流股份有限公司 | | Legal Representative | Liang Chen | [Contacts and Contact Information](index=6&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) The company's Board Secretary and Securities Affairs Representative are listed with their contact addresses, phone numbers, fax, and email Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Chen Shuai | 13th Floor, Qianhai Xinlikang Building, Nanshan District, Shenzhen | 0512-63030888-8820 | 0512-63030684 | irm@hichain.com | | Securities Affairs Representative | Liang Can | 111 Quanhai Road, Wujiang Economic Development Zone, Suzhou, Jiangsu Province | 0512-63030888-8820 | 0512-63030684 | irm@hichain.com | [Other Information](index=6&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) The company's contact information, disclosure locations, and registration details remained unchanged during the reporting period - The company's registered address, office address, website, and email remained unchanged during the reporting period[18](index=18&type=chunk) - Information disclosure and storage locations remained unchanged during the reporting period[19](index=19&type=chunk) - The company's registration status remained unchanged during the reporting period[20](index=20&type=chunk) [Key Accounting Data and Financial Indicators](index=7&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In H1 2025, revenue grew by 7.46% to 872.39 million Yuan, but net profit attributable to shareholders decreased by 13.30% to 130.18 million Yuan Key Accounting Data and Financial Indicators (Current Period vs. Prior Year Period) | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 872,389,903.97 | 811,860,917.48 | 7.46% | | Net Profit Attributable to Listed Company Shareholders | 130,176,180.17 | 150,138,331.11 | -13.30% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-recurring Gains/Losses) | 111,438,002.79 | 111,003,113.54 | 0.39% | | Net Cash Flow from Operating Activities | 184,773,898.08 | 257,630,645.72 | -28.28% | | Basic Earnings Per Share (Yuan/share) | 0.5656 | 0.6579 | -14.03% | | Diluted Earnings Per Share (Yuan/share) | 0.5656 | 0.6579 | -14.03% | | Weighted Average Return on Net Assets | 4.28% | 4.96% | -0.68% | | Total Assets (Period-end) | 4,844,706,314.94 | 4,837,772,702.60 | 0.14% | | Net Assets Attributable to Listed Company Shareholders (Period-end) | 3,064,672,252.88 | 3,022,421,867.90 | 1.40% | [Differences in Accounting Data under Domestic and Overseas Accounting Standards](index=7&type=section&id=%E4%BA%94%E3%80%81%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) The company reported no differences in net profit or net assets between international/overseas and Chinese accounting standards during the reporting period - The company reported no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[22](index=22&type=chunk) - The company reported no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[23](index=23&type=chunk) [Non-recurring Gains and Losses and Amounts](index=7&type=section&id=%E5%85%AD%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) Total non-recurring gains and losses amounted to 18.74 million Yuan, primarily from non-current asset disposal, government grants, and other non-operating income/expenses Non-recurring Gains and Losses and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | 5,991,660.27 | | Government grants recognized in current profit or loss | 14,070,288.64 | | Other non-operating income and expenses apart from the above | 2,175,883.28 | | Less: Income tax impact | 3,464,582.33 | | Impact on minority interests (after tax) | 35,072.48 | | Total | 18,738,177.38 | - The company has no other profit or loss items that meet the definition of non-recurring gains and losses, nor has it classified non-recurring gains and losses as recurring gains and losses[26](index=26&type=chunk) Management Discussion and Analysis [Principal Business Activities 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 provides integrated supply chain logistics, smart logistics equipment manufacturing, and system integration services for high-end manufacturing sectors [(I) Industry Overview During the Reporting Period](index=9&type=section&id=(%E4%B8%80)%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%A4%84%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) The manufacturing logistics industry is undergoing intelligent and green transformation, with steady growth in social logistics and accelerated domestic substitution in semiconductor AMHS - In H1 2025, the national social logistics aggregate reached **171.3 trillion Yuan**, a year-on-year increase of **5.6%**, with industrial product logistics growing by **5.8%**[29](index=29&type=chunk) - The manufacturing logistics industry is accelerating its transformation towards intelligence, automation, and agility, with large AI models deeply empowering dynamic demand forecasting, inventory optimization, and resource scheduling[30](index=30&type=chunk) - The market size for smart logistics equipment and logistics robots is projected to exceed **500 billion Yuan** in 2025, with mobile automation equipment showing the fastest growth, reaching nearly **150 billion Yuan**[33](index=33&type=chunk) - The semiconductor AMHS market is expanding, expected to reach **3.92 billion US dollars** globally and **8.15 billion Yuan** in China by 2025, with accelerated domestic substitution[35](index=35&type=chunk) [(II) Overview of Company Operations During the Reporting Period](index=11&type=section&id=(%E4%BA%8C)%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E6%A6%82%E8%BF%B0) H1 2025 revenue grew by 7.46% to 872.39 million Yuan, but net profit attributable to shareholders decreased due to exchange losses and reduced interest income 2025 H1 Company Operating Performance | Item | Current Period (10,000 Yuan) | Prior Year Period (10,000 Yuan) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 87,238.99 | 81,186.09 | 7.46% | | Manufacturing Logistics | 73,943.03 | 68,610.01 | 7.77% | | --Consumer Electronics | 68,631.35 | 63,570.18 | 7.96% | | --New Energy Vehicles | 5,311.68 | 5,039.83 | 5.39% | | Automation and Equipment Manufacturing | 9,287.15 | 8,525.17 | 8.94% | | Other Businesses | 4,008.81 | 4,050.91 | -1.04% | | Net Profit Attributable to Parent Company | 13,017.62 | 15,013.83 | -13.30% | | Net Profit Attributable to Parent Company (Excluding Non-recurring Gains/Losses) | 11,143.80 | 11,100.31 | 0.39% | - The decrease in net profit attributable to the parent company was mainly due to **exchange losses of 6.21 million Yuan** (compared to a gain of 8.72 million Yuan in the prior year) and a **decrease in interest income of 3.79 million Yuan**[38](index=38&type=chunk)[40](index=40&type=chunk) - The company established an Artificial Intelligence Research Institute and a Robotics Research Institute, with R&D expenses increasing by **26.98%** year-on-year in H1[42](index=42&type=chunk) - The Hefei automated warehouse is operational, while Shenzhen and Changzhou automated warehouse projects are progressing steadily, expected to be operational next year[43](index=43&type=chunk) [(III) Company's Main Services and Products](index=13&type=section&id=(%E4%B8%89)%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%BB%E8%A6%81%E6%9C%8D%E5%8A%A1%E4%BA%A7%E5%93%81) The company offers manufacturing logistics services, logistics equipment and robot manufacturing, and automation and integration services, covering a wide range of supply chain solutions - Manufacturing logistics services include manufacturing center services (raw material warehousing, in-plant logistics, finished product delivery, bonded maintenance, value-added services) and domestic and international logistics services (trunk and short-haul transportation, export consolidation, milk run, customs services, international logistics)[44](index=44&type=chunk) - Logistics equipment and robotics manufacturing business covers the semiconductor and display panel industries (OHT, AGV trolleys, Lifter, Stocker, MCS) and logistics, e-commerce, and retail industries (pallet shuttles, tote shuttles, automated storage and retrieval systems, manufacturing execution systems)[45](index=45&type=chunk)[46](index=46&type=chunk) - Automation and integration business provides full-chain logistics automation and integration services, including planning, design, development, implementation, and maintenance[47](index=47&type=chunk) [(IV) Key Factors Affecting Company Performance During the Reporting Period](index=14&type=section&id=(%E5%9B%9B)%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%B8%9A%E7%BB%A9%E5%BD%B1%E5%93%8D%E5%9B%A0%E7%B4%A0) Performance growth was driven by resilient IT electronics, rapid development in new energy vehicles, and the emerging semiconductor and logistics equipment business - Resilient growth in the global IT electronics industry, with global PC shipments increasing by **4.9%** in Q1 2025 and **6.5%** in Q2, supported the steady growth of the company's consumer electronics production logistics business[48](index=48&type=chunk) - Rapid development in the new energy vehicle industry led to significant growth in the company's S client business, with J and V clients showing great potential, ensuring efficient production and delivery for clients[49](index=49&type=chunk) - The semiconductor and logistics equipment business emerged as a new highlight amidst technological innovation and the localization trend, with the company's new generation OHT overhead cranes achieving internationally leading core parameters[50](index=50&type=chunk)[51](index=51&type=chunk) [Analysis of Core Competencies](index=15&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) Hichain Logistics leverages AI, global supply chain networks, and innovative high-end logistics equipment to build intelligent and flexible core competencies - The company possesses strong capabilities in high-end logistics equipment R&D and manufacturing, with its AMHS products achieving a leading technical level domestically, further enhanced by the Robotics Research Institute[53](index=53&type=chunk) - The establishment of the Hichain Artificial Intelligence Research Institute deeply integrates AI and large model technologies, enhancing intelligent planning, decision-making, and human-machine collaboration capabilities[54](index=54&type=chunk) - A flexible production logistics and supply chain operation system has been built, achieving comprehensive coordination and dynamic linkage across production, warehousing, and transportation through an intelligent supply chain management platform[55](index=55&type=chunk)[56](index=56&type=chunk) - The company boasts strong global supply chain collaboration and cross-border logistics capabilities, having established smart logistics centers and operational teams across China, Asia, and Europe[57](index=57&type=chunk) - A professional talent system has been established, with dual research institutes (AI and Robotics) promoting deep integration of industry, academia, and research, leading to a **26.98%** year-on-year increase in R&D investment in H1 2025[58](index=58&type=chunk) [Analysis of Principal Business](index=16&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Principal business revenue reached 872.39 million Yuan, with financial expenses decreasing by 64.88% and R&D investment increasing by 26.98% Major Financial Data Year-on-Year Changes | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | Year-on-Year Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 872,389,903.97 | 811,860,917.48 | 7.46% | | | Operating Cost | 639,278,371.33 | 612,513,866.29 | 4.37% | | | Selling Expenses | 22,713,593.46 | 19,332,044.32 | 17.49% | | | Administrative Expenses | 54,120,403.67 | 49,827,633.50 | 8.62% | | | Financial Expenses | -12,335,829.58 | -35,126,648.34 | -64.88% | Increased exchange losses and interest expenses in current period | | Income Tax Expenses | 24,283,492.70 | 31,718,318.46 | -23.44% | | | R&D Investment | 22,722,249.59 | 17,894,643.64 | 26.98% | | | Net Cash Flow from Operating Activities | 184,773,898.08 | 257,630,645.72 | -28.28% | | | Net Cash Flow from Investing Activities | -255,752,366.52 | -306,370,497.59 | -16.52% | | | Net Cash Flow from Financing Activities | 60,313,751.60 | 289,006,915.06 | -79.13% | Increased cash payments for debt repayment in current period | | Net Increase in Cash and Cash Equivalents | -7,884,083.97 | 248,241,401.48 | -103.18% | Decrease in net cash flow from financing activities in current period | - There were no significant changes in the company's profit composition or sources of profit during the reporting period[61](index=61&type=chunk) [Analysis of Non-Principal Business](index=17&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Non-principal business income primarily includes investment gains from subsidiary disposal, government grants, and other non-operating items, which are generally non-sustainable Non-Principal Business Items and Amounts | Item | Amount (Yuan) | Proportion of Total Profit | Explanation of Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 5,778,281.65 | 3.59% | Investment income from disposal of subsidiaries | No | | Asset Impairment | 4,089.57 | 0.00% | Provision for bad debts on receivables and inventory write-downs | Yes | | Non-operating Income | 5,915,329.44 | 3.67% | Primarily operating compensation income | No | | Non-operating Expenses | 3,747,641.63 | 2.33% | Primarily early lease termination penalties and operating compensation expenses | No | | Other Income | 14,524,609.95 | 9.02% | Primarily government grants | No | | Gains from Asset Disposal | 367,035.94 | 0.23% | Gains from disposal of fixed assets | No | [Analysis of Assets and Liabilities](index=17&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Total assets and net assets attributable to shareholders slightly increased, with notable changes in cash, construction in progress, and short-term borrowings Significant Changes in Asset Composition (Period-end vs. Year-end) | Item | Current Period-end Amount (Yuan) | Proportion of Total Assets | Prior Year-end Amount (Yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 1,732,056,654.34 | 35.75% | 1,753,169,920.10 | 36.24% | -0.49% | | Accounts Receivable | 596,935,922.10 | 12.32% | 592,705,461.82 | 12.25% | 0.07% | | Inventories | 26,153,874.18 | 0.54% | 39,879,893.42 | 0.82% | -0.28% | | Fixed Assets | 1,092,362,316.13 | 22.55% | 1,086,090,248.81 | 22.45% | 0.10% | | Construction in Progress | 369,028,734.75 | 7.62% | 317,604,045.83 | 6.57% | 1.05% | | Short-term Borrowings | 500,380,555.56 | 10.33% | 400,359,027.77 | 8.28% | 2.05% | | Long-term Borrowings | 23,298,562.74 | 0.48% | 0.00 | 0.00% | 0.48% | - The company had no major overseas assets during the reporting period[66](index=66&type=chunk) - Financial assets measured at fair value primarily consist of other equity instrument investments, with a period-end balance of **189.45 million Yuan** and a fair value change gain of **2.02 million Yuan** for the current period[67](index=67&type=chunk) - Information on restricted major assets is detailed in the financial report notes, and there were no significant changes in the measurement attributes of major assets during the reporting period[67](index=67&type=chunk) [Analysis of Investment Status](index=18&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company reported zero investment during the period, a 100% decrease year-over-year, with no significant equity or non-equity investments Investment Amount Comparison | Indicator | Current Period Investment Amount (Yuan) | Prior Year Period Investment Amount (Yuan) | Change Rate | | :--- | :--- | :--- | :--- | | Investment Amount | 0.00 | 36,901,900.00 | -100.00% | - The company had no significant equity investments, non-equity investments, financial assets measured at fair value, use of raised funds, entrusted wealth management, derivative investments, or entrusted loans during the reporting period[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) [Significant Asset and Equity Sales](index=19&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell significant assets during the reporting period[74](index=74&type=chunk) - The company did not sell significant equity during the reporting period[75](index=75&type=chunk) [Analysis of Major Holding and Participating Companies](index=19&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Shenzhen Qianhai Chen Supply Chain Management Co., Ltd. is a key subsidiary, and the company expanded its business by establishing several new subsidiaries Major Subsidiary Financial Information | Company Name | Company Type | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shenzhen Qianhai Chen Supply Chain Management Co., Ltd. | Subsidiary | Transportation, warehousing, customs services | 50,000,000 | 205,018,259.99 | 195,066,645.60 | 270,770,374.44 | 63,370,990.96 | 50,581,063.94 | - The disposal of Anhui Hichain International Trade Co., Ltd. equity during the reporting period increased investment income by **5.63 million Yuan**, leading to a decrease in new retail business revenue and profit[77](index=77&type=chunk) - The establishment of Chengdu Haichuan Jiexin Technology Co., Ltd., HYY LOGISTICS TECHNOLOGY(THAILAND)CO.,LTD, Hichain Logistics Indonesia, and Hichain Logistics (New Zealand) Pte.Ltd expanded business operations, but their scale is small with no significant impact observed[77](index=77&type=chunk) [Structured Entities Controlled by the Company](index=20&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[78](index=78&type=chunk) [Risks Faced by the Company and Countermeasures](index=20&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company addresses risks from international trade, industry volatility, exchange rates, and customer concentration through strategic布局, R&D, and financial management - International trade environment and geopolitical conflicts may affect global supply chain stability; the company will accelerate regional supply chain layout, expand diversified overseas business locations, and strengthen international logistics partner collaboration[78](index=78&type=chunk) - IT manufacturing industry volatility risks may impact company performance; the company will increase R&D, expand into high-growth areas like new energy vehicles and semiconductors, and deepen ecological collaboration with strategic partners[79](index=79&type=chunk)[80](index=80&type=chunk) - Exchange rate fluctuation risks may affect performance; the company will improve dynamic exchange rate monitoring and early warning mechanisms, optimize foreign exchange fund management strategies, and promote business internationalization and diversification of revenue and expenditure currencies[81](index=81&type=chunk) - High customer concentration may lead to decreased customer demand; the company will deepen strategic cooperation with core customers, accelerate new industry, new region, and new customer development, and improve the dynamic customer risk assessment system[82](index=82&type=chunk) - Risks of new customer development setbacks may affect operating performance; the company will strengthen industry solution packaging capabilities, implement precise customer segmentation strategies, optimize customer experience, and increase promotion of technological innovation[83](index=83&type=chunk) [Registration Form for Research, Communication, and Interview Activities During the Reporting Period](index=21&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E7%99%BB%E8%AE%B0%E8%A1%A8) The company hosted an online investor communication event on May 14, 2025, discussing its 2024 annual and Q1 2025 operating performance - On May 14, 2025, the company hosted an online communication event via a network platform, engaging with various institutional and individual investors[86](index=86&type=chunk) - The discussion primarily focused on the company's operating performance for the full year 2024 and Q1 2025[86](index=86&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=22&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not formulated a market value management system or disclosed a valuation enhancement plan during the reporting period - The company has not formulated a market value management system[87](index=87&type=chunk) - The company has not disclosed a valuation enhancement plan[87](index=87&type=chunk) [Implementation of "Quality and Return Dual Improvement" Action Plan](index=22&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%22%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%22%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan during the reporting period - The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan[87](index=87&type=chunk) Corporate Governance, Environment, and Society [Changes in Directors, Supervisors, and Senior Management](index=23&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Supervisors Wang Wei, Ling Xia, and Shen Yijing resigned due to term expiration and the abolition of the Board of Supervisors as per company articles Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Wang Wei | Chairman of the Board of Supervisors | Term expiration | June 28, 2025 | Supervisor term expired, Board of Supervisors abolished per Articles of Association | | Ling Xia | Supervisor | Term expiration | June 28, 2025 | Supervisor term expired, Board of Supervisors abolished per Articles of Association | | Shen Yijing | Supervisor | Term expiration | June 28, 2025 | Supervisor term expired, Board of Supervisors abolished per Articles of Association | [Profit Distribution and Capital Reserve Conversion to Share Capital in This Reporting Period](index=23&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company plans no cash dividends, bonus shares, or capital reserve conversions to share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[90](index=90&type=chunk) [Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=23&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company implemented a 2025 restricted stock incentive plan, granting 2.4 million shares to 32 individuals at 10.81 Yuan/share, with performance-based vesting - The company granted **2.4 million** first-class restricted shares to **32 incentive recipients** (including 4 senior executives and 28 core personnel), accounting for **1.04%** of the total share capital, at a grant price of **10.81 Yuan/share**[91](index=91&type=chunk) - The incentive plan involves three vesting periods (30% after 12 months, 30% after 24 months, 40% after 36 months), with assessment conditions requiring revenue growth rates of no less than **8%**, **16%**, and **24%** for 2025-2027 respectively, compared to 2024, and satisfactory individual performance[91](index=91&type=chunk) - There were no employee stock ownership plans or other employee incentive measures during the reporting period[92](index=92&type=chunk) [Environmental Information Disclosure](index=24&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[93](index=93&type=chunk) [Social Responsibility](index=24&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) Hichain Logistics integrates technological innovation with social value, actively fulfilling social responsibilities in compliance, innovation, employee welfare, green development, and philanthropy [(I) Upholding Compliance, Safeguarding Shareholder Rights](index=24&type=section&id=(%E4%B8%80)%E5%9D%9A%E5%AE%88%E5%90%88%E8%A7%84%EF%BC%8C%E7%A8%B3%E5%9B%BA%E8%82%A1%E4%B8%9C%E6%9D%83%E7%9B%8A) The company adheres to laws, improves governance, ensures transparent information disclosure, and proposed a 2024 profit distribution plan to reward shareholders - The company strictly adheres to laws and regulations, revised its Articles of Association, and improved its corporate governance structure[94](index=94&type=chunk) - The company strictly discloses its operating information and significant matters truthfully, accurately, completely, and timely, in accordance with the "Shenzhen Stock Exchange Stock Listing Rules" and other regulations[94](index=94&type=chunk) - The proposed 2024 annual profit distribution plan is to distribute a cash dividend of **4.0 Yuan (tax inclusive)** per 10 shares, based on the total share capital (excluding repurchased shares)[94](index=94&type=chunk) [(II) Innovation Leadership, Empowering Industry Development](index=24&type=section&id=(%E4%BA%8C)%E5%88%9B%E6%96%B0%E9%A2%86%E8%88%AA%EF%BC%8C%E8%B5%8B%E8%83%BD%E8%A1%8C%E4%B8%9A%E5%8F%91%E5%B1%95) The company established AI and Robotics Research Institutes to integrate advanced technologies into logistics, enhancing intelligent prediction and operational efficiency - The company established the "Hichain Artificial Intelligence Research Institute" and "Hichain Robotics Research Institute," focusing on the application of cutting-edge technologies such as large models, machine learning, human-machine collaboration, and AIOT in logistics scenarios[95](index=95&type=chunk) - Collaborating with several renowned domestic universities, the company conducts research in key areas such as logistics robot cluster collaboration, intelligent warehousing scheduling algorithms, and logistics big data analysis and application[95](index=95&type=chunk) - Actively integrating artificial intelligence technology throughout the entire logistics service process, utilizing AI visual recognition and machine learning algorithms to improve the efficiency of automatic cargo identification, sorting, inventory, and distribution planning[96](index=96&type=chunk)[97](index=97&type=chunk) [(III) Employee-Centric, Energizing Team Vitality](index=25&type=section&id=(%E4%B8%89)%E5%91%98%E5%B7%A5%E4%B8%BA%E6%9C%AC%EF%BC%8C%E6%BF%80%E5%8F%91%E5%9B%A2%E9%98%9F%E6%B4%BB%E5%8A%9B) The company implemented a restricted stock incentive plan and established multi-dimensional career development paths to enhance employee skills and engagement - Successfully implemented the 2025 restricted stock incentive plan, granting restricted shares to over 30 core technical and management personnel, aligning employee interests with company development[98](index=98&type=chunk) - Established multi-dimensional employee career development pathways, covering management, technical, and business series, enhancing employee quality through on-the-job learning, internal training, mentorship, and rotation programs[99](index=99&type=chunk) - Implemented a "key project management system" and project review and sharing mechanisms, with over **90%** of the management team having experience in major projects[99](index=99&type=chunk) [(IV) Green Development, Fulfilling Environmental Commitments](index=25&type=section&id=(%E5%9B%9B)%E7%BB%BF%E8%89%B2%E5%8F%91%E5%B1%95%EF%BC%8C%E8%B7%B5%E8%A1%8C%E7%8E%AF%E4%BF%9D%E6%89%BF%E8%AF%BA) The company promotes smart warehousing, optimizes transportation routes, and adopts green packaging to reduce energy consumption and carbon emissions - Continuously promotes the use of smart warehousing systems and actively explores innovative ways to save energy and reduce consumption in warehousing operations[100](index=100&type=chunk) - Actively advances the green transformation of its transportation structure, utilizing AI to optimize transportation routes, reduce vehicle empty load rates, and decrease energy consumption and carbon emissions[100](index=100&type=chunk) - Steadfastly implements green packaging concepts to achieve more sustainable packaging solutions and enhance resource utilization efficiency[100](index=100&type=chunk) [(V) Dedicated to Public Welfare, Fulfilling Social Responsibility](index=25&type=section&id=(%E4%BA%94)%E7%83%AD%E5%BF%83%E5%85%AC%E7%9B%8A%EF%BC%8C%E6%8B%85%E5%BD%93%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB) The company actively engages in philanthropy, donating to local charities for community support and educational initiatives - During the Spring Festival, the company donated **0.3 million Yuan** to the Suzhou Wujiang District Charity Federation for local hardship relief, medical assistance, and other livelihood projects[101](index=101&type=chunk) - Donated educational and living supplies to the Wujiang Jiuyi Student Aid Service Center, distributed to needy student families in Long'e Village, Liping County, Guizhou Province, and parts of Wujiang District[102](index=102&type=chunk) - Supports university scientific research innovation and talent cultivation, reserving talent for the development of the smart logistics industry[102](index=102&type=chunk) Significant Matters [Commitments Fulfilled and Unfulfilled by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period](index=27&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) All commitments made by the controlling shareholder, major shareholders, and directors, supervisors, and senior management were fulfilled on time during the reporting period - Actual controllers Liang Chen and Liang Zhirui committed that after the lock-up period expires, they will not transfer more than **25%** of their directly or indirectly held shares annually, will not transfer shares within six months of resignation, and the reduction price will not be lower than the issue price[106](index=106&type=chunk) - The actual controllers committed to initiating a share repurchase program and bearing compensation liability in accordance with the law if the company engages in fraudulent issuance[106](index=106&type=chunk) - Company shareholder Ningbo Kailai Brothers Venture Capital Partnership (Limited Partnership) committed to complying with relevant regulations for share reductions, with the reduction price not lower than the issue price[106](index=106&type=chunk)[107](index=107&type=chunk) - The company and relevant directors, supervisors, and senior management committed to bearing compensation liability in accordance with the law, and measures for non-fulfillment of commitments were explained[107](index=107&type=chunk)[108](index=108&type=chunk) - Shares subscribed by actual controller Liang Chen in the refinancing cannot be transferred within **36 months** from the end of the issuance[108](index=108&type=chunk) - All commitments were fulfilled normally and on time[108](index=108&type=chunk) [Non-Operating Funds Occupied by Controlling Shareholder and Other Related Parties from the Listed Company](index=29&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) There were no instances of non-operating funds being occupied by the controlling shareholder or other related parties from the listed company during the reporting period - There were no instances of non-operating funds being occupied by the controlling shareholder or other related parties from the listed company during the reporting period[109](index=109&type=chunk) [Irregular External Guarantees](index=29&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[110](index=110&type=chunk) [Appointment and Dismissal of Accounting Firms](index=29&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[111](index=111&type=chunk) [Explanation by the Board of Directors, Board of Supervisors, and Audit Committee on the "Non-Standard Audit Report" for This Reporting Period](index=30&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E3%80%81%E5%AE%A1%E8%AE%A1%E5%A7%94%E5%91%98%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9A%84%E8%AF%B4%E6%98%8E) The company did not receive a non-standard audit report for the current reporting period - The company did not receive a non-standard audit report for the current reporting period[112](index=112&type=chunk) [Explanation by the Board of Directors on the "Non-Standard Audit Report" for the Previous Year](index=30&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%22%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%22%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The company did not provide an explanation regarding a non-standard audit report for the previous year - The company did not provide an explanation regarding a non-standard audit report for the previous year[112](index=112&type=chunk) [Bankruptcy and Reorganization Matters](index=30&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company did not experience any bankruptcy or reorganization matters during the reporting period - The company did not experience any bankruptcy or reorganization matters during the reporting period[112](index=112&type=chunk) [Litigation Matters](index=30&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company had no significant litigation or arbitration matters, with minor cases either settled or ongoing - The company had no significant litigation or arbitration matters during the current reporting period[113](index=113&type=chunk) Other Litigation Matters | Litigation (Arbitration) Basic Information | Amount Involved (10,000 Yuan) | Provision for Liabilities Formed | Litigation (Arbitration) Progress | Litigation (Arbitration) Outcome and Impact | Litigation (Arbitration) Judgment Execution Status | | :--- | :--- | :--- | :--- | :--- | :--- | | Other non-significant litigation or arbitration matters during the reporting period (total) -- Concluded | 737.52 | No | Freight-related disputes, settlement agreements reached | Settlement agreements reached | Performed on schedule | | Other non-significant litigation or arbitration matters during the reporting period (total) -- Unconcluded | 45.02 | No | Company sued for 450,184.54 Yuan, all cases are under review | Under review | - | [Penalties and Rectification](index=30&type=section&id=%E4%B9%9D%E3%80%81%E5%A4%84%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) The company had no significant penalties or rectification situations during the reporting period - The company had no significant penalties or rectification situations during the reporting period[114](index=114&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=30&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) The company, its controlling shareholder, and actual controller maintained good integrity status during the reporting period - The company, its controlling shareholder, and actual controller had no integrity issues during the reporting period[115](index=115&type=chunk) [Significant Related Party Transactions](index=31&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company reported no significant related party transactions, including those related to daily operations, asset/equity sales, joint investments, or financial dealings - The company had no related party transactions related to daily operations during the reporting period[116](index=116&type=chunk) - The company had no related party transactions involving asset or equity acquisition/disposal during the reporting period[117](index=117&type=chunk) - The company had no related party transactions involving joint external investment during the reporting period[118](index=118&type=chunk) - The company had no related party debt or credit transactions during the reporting period[119](index=119&type=chunk) - The company had no financial business transactions with related financial companies or financial companies controlled by the company and related parties, including deposits, loans, credit lines, or other financial services[120](index=120&type=chunk)[121](index=121&type=chunk) - The company had no other significant related party transactions during the reporting period[122](index=122&type=chunk) [Significant Contracts and Their Performance](index=31&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company has no significant entrustment or contracting arrangements but leases 372,400 square meters of warehouse space and provides a guarantee for a subsidiary - The company had no entrustment situations during the reporting period[123](index=123&type=chunk) - The company had no contracting situations during the reporting period[125](index=125&type=chunk) - As of the end of the reporting period, the company leased a total of **372,400 square meters** of warehouse space[126](index=126&type=chunk) Company Guarantees for Subsidiaries | Guaranteed Entity Name | Guarantee Limit (10,000 Yuan) | Actual Guarantee Amount (10,000 Yuan) | Guarantee Type | Guarantee Period | | :--- | :--- | :--- | :--- | :--- | | Changzhou Hichain Supply Chain Management Co., Ltd. | 60,000.00 | 2,327.93 | Joint and several liability guarantee | Three years after the maturity of the principal debt | - The company had no significant contracts for daily operations or other significant contracts during the reporting period[130](index=130&type=chunk) [Explanation of Other Significant Matters](index=33&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[131](index=131&type=chunk) [Significant Matters of Company Subsidiaries](index=33&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) 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[132](index=132&type=chunk) Share Changes and Shareholder Information [Share Change Status](index=34&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Total share capital remained unchanged, but restricted shares increased due to the grant of 2.4 million restricted shares to 32 incentive recipients Share Change Status | Share Class | Quantity Before Change (shares) | Proportion Before Change | Increase/Decrease in Current Change (shares) | Quantity After Change (shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 61,362,094 | 26.61% | 2,400,000 | 63,762,094 | 27.65% | | II. Unrestricted Shares | 169,239,685 | 73.39% | -2,400,000 | 166,839,685 | 72.35% | | III. Total Shares | 230,601,779 | 100.00% | 0 | 230,601,779 | 100.00% | - The share change was due to the company granting **2.4 million** restricted shares to **32 incentive recipients**, with the transfer registration completed on May 12, 2025[135](index=135&type=chunk)[136](index=136&type=chunk) - The company completed its share repurchase plan on February 6, 2025, having repurchased a total of **1.93 million shares**, accounting for **0.84%** of the total share capital, with a total transaction amount of **31.67 million Yuan**[137](index=137&type=chunk) Restricted Share Changes | Shareholder Name | Restricted Shares at Period Start (shares) | Shares Unrestricted in Current Period (shares) | Restricted Shares Increased in Current Period (shares) | Restricted Shares at Period End (shares) | Reason for Restriction | Proposed Unrestriction Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2025 Restricted Stock Incentive Plan Grantees (32 individuals) | 0 | 0 | 2,400,000 | 2,400,000 | Restricted Stock | 30% unlocked after 12/24/36 months respectively | [Securities Issuance and Listing](index=35&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[140](index=140&type=chunk) [Number of Shareholders and Shareholding Status](index=35&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the reporting period end, the company had 15,872 common shareholders, with Liang Chen as the largest shareholder holding 35.48% - As of the end of the reporting period, the total number of common shareholders was **15,872**[141](index=141&type=chunk) Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Percentage | Shares Held at Period End (shares) | Restricted Shares Held (shares) | Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Liang Chen | Domestic Natural Person | 35.48% | 81,816,125 | 61,362,094 | 20,454,031 | | Ningbo Kailai Brothers Venture Capital Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 17.91% | 41,292,000 | 0 | 41,292,000 | | Shenzhen Yuanzhi Ruixin Equity Investment Management Co., Ltd. - Shenzhen Yuanzhi Ruixin Smart Airport Logistics Industry Private Equity Investment Base Partnership (Limited Partnership) | Domestic Non-State-Owned Legal Person | 1.99% | 4,600,000 | 0 | 4,600,000 | - Ningbo Kailai Brothers Venture Capital Partnership (Limited Partnership) is the company's employee stock ownership platform, with its executive partner being the company's actual controller, Liang Chen[142](index=142&type=chunk) - As of the end of the reporting period, the company's special securities account for repurchased shares held **1.47 million shares**, accounting for **0.64%** of the company's total share capital, ranking fourth among the top 10 shareholders[142](index=142&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=37&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) Several directors and senior management increased their shareholdings due to the equity incentive plan, receiving restricted shares Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Shares Held at Period Start (shares) | Shares Increased in Current Period (shares) | Shares Held at Period End (shares) | Restricted Shares Granted at Period End (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Yao Peiqin | Director, Deputy General Manager | In office | 0 | 300,000 | 300,000 | 300,000 | | Liang Huaqin | Deputy General Manager | In office | 0 | 300,000 | 300,000 | 300,000 | | Chen Shuai | Board Secretary, Deputy General Manager | In office | 0 | 300,000 | 300,000 | 300,000 | | Wu Xiaowei | Financial Controller | In office | 0 | 30,000 | 30,000 | 30,000 | | Total | -- | -- | 0 | 930,000 | 930,000 | 930,000 | [Changes in Controlling Shareholder or Actual Controller](index=37&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) There were no changes in the company's controlling shareholder or actual controller during the reporting period - The company's controlling shareholder did not change during the reporting period[145](index=145&type=chunk) - The company's actual controller did not change during the reporting period[146](index=146&type=chunk) [Preferred Share Information](index=38&type=section&id=%E5%85%AD%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[147](index=147&type=chunk) Bond-Related Information [Bond-Related Information](index=39&type=section&id=%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no bond-related activities during the reporting period - The company had no bond-related activities during the reporting period[149](index=149&type=chunk) Financial Report [Audit Report](index=40&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[151](index=151&type=chunk) [Financial Statements](index=40&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 financial statements for H1 2025, detailing financial position, operating results, and cash flows - The consolidated balance sheet shows total assets of **4.85 billion Yuan** and net assets attributable to the parent company of **3.07 billion Yuan** at period-end[155](index=155&type=chunk) - The consolidated income statement shows total operating revenue of **872.39 million Yuan**, net profit of **136.70 million Yuan**, and net profit attributable to parent company shareholders of **130.18 million Yuan** for the current period[163](index=163&type=chunk) - The consolidated cash flow statement shows net cash flow from operating activities of **184.77 million Yuan**, net cash used in investing activities of **255.75 million Yuan**, and net cash flow from financing activities of **60.31 million Yuan**[170](index=170&type=chunk) [1、Consolidated Balance Sheet](index=40&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, consolidated total assets were 4.85 billion Yuan, total liabilities 1.51 billion Yuan, and total owner's equity 3.33 billion Yuan Consolidated Balance Sheet Key Data | Item | Period-end Balance (Yuan) | Period-start Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 4,844,706,314.94 | 4,837,772,702.60 | | Total Current Assets | 2,519,157,810.32 | 2,512,094,532.05 | | Total Non-current Assets | 2,325,548,504.62 | 2,325,678,170.55 | | Total Liabilities | 1,514,773,147.09 | 1,556,761,807.60 | | Total Owner's Equity | 3,329,933,167.85 | 3,281,010,895.00 | | Total Owner's Equity Attributable to Parent Company | 3,064,672,252.88 | 3,022,421,867.90 | [2、Parent Company Balance Sheet](index=42&type=section&id=2%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the parent company's total assets were 3.14 billion Yuan, total liabilities 1.21 billion Yuan, and total owner's equity 1.94 billion Yuan Parent Company Balance Sheet Key Data | Item | Period-end Balance (Yuan) | Period-start Balance (Yuan) | | :--- | :--- | :--- | | Total Assets | 3,143,951,532.85 | 2,842,372,315.81 | | Total Current Assets | 2,117,653,512.08 | 1,820,548,531.08 | | Total Non-current Assets | 1,026,298,020.77 | 1,021,823,784.73 | | Total Liabilities | 1,207,760,326.02 | 858,926,918.09 | | Total Owner's Equity | 1,936,191,206.83 | 1,983,445,397.72 | [3、Consolidated Income Statement](index=44&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In H1 2025, consolidated total operating revenue was 872.39 million Yuan, with net profit of 136.70 million Yuan and basic EPS of 0.5656 Yuan Consolidated Income Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | I. Total Operating Revenue | 872,389,903.97 | 811,860,917.48 | | II. Total Operating Costs | 734,243,195.16 | 669,978,112.69 | | III. Operating Profit | 158,820,725.92 | 193,164,757.95 | | IV. Total Profit | 160,988,413.73 | 190,099,151.17 | | V. Net Profit | 136,704,921.03 | 158,380,832.71 | | Net Profit Attributable to Parent Company Shareholders | 130,176,180.17 | 150,138,331.11 | | VIII. Earnings Per Share: Basic Earnings Per Share | 0.5656 | 0.6579 | [4、Parent Company Income Statement](index=46&type=section&id=4%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) In H1 2025, the parent company's operating revenue was 271.92 million Yuan, with net profit of 40.40 million Yuan, a year-over-year increase of approximately 100% Parent Company Income Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | I. Operating Revenue | 271,924,831.91 | 107,651,146.33 | | II. Operating Profit | 39,669,424.66 | 23,878,464.34 | | III. Total Profit | 45,197,763.34 | 22,657,699.58 | | IV. Net Profit | 40,397,887.94 | 20,200,393.55 | [5、Consolidated Cash Flow Statement](index=48&type=section&id=5%E3%80%81%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) H1 2025 saw net cash flow from operating activities of 184.77 million Yuan, net cash used in investing activities of 255.75 million Yuan, and net cash from financing activities of 60.31 million Yuan Consolidated Cash Flow Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 184,773,898.08 | 257,630,645.72 | | Net Cash Flow from Investing Activities | -255,752,366.52 | -306,370,497.59 | | Net Cash Flow from Financing Activities | 60,313,751.60 | 289,006,915.06 | | Net Increase in Cash and Cash Equivalents | -7,884,083.97 | 248,241,401.48 | | Cash and Cash Equivalents at Period End | 1,732,047,944.09 | 1,666,011,630.19 | [6、Parent Company Cash Flow Statement](index=49&type=section&id=6%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) H1 2025 saw net cash flow from operating activities of -128.40 million Yuan, net cash from investing activities of 11.39 million Yuan, and net cash from financing activities of 117.18 million Yuan Parent Company Cash Flow Statement Key Data | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -128,401,502.24 | -151,568,382.98 | | Net Cash Flow from Investing Activities | 11,387,085.81 | -47,860,728.76 | | Net Cash Flow from Financing Activities | 117,176,278.87 | 223,955,762.88 | | Net Increase in Cash and Cash Equivalents | -444,521.44 | 26,051,229.97 | | Cash and Cash Equivalents at Period End | 270,456,439.39 | 403,490,809.13 | [7、Consolidated Statement of Changes in Owner's Equity](index=50&type=section&id=7%E3%80%81%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) Consolidated owner's equity increased by 48.92 million Yuan, primarily due to comprehensive income and changes in capital contributions and profit distribution Consolidated Statement of Changes in Owner's Equity | Item | H1 2025 Period-end Balance (Yuan) | H1 2025 Period-start Balance (Yuan) | | :--- | :--- | :--- | | Share Capital | 230,601,779.00 | 230,601,779.00 | | Capital Reserve | 1,288,462,334.52 | 1,310,920,081.05 | | Less: Treasury Stock | 57,006,546.34 | 81,745,877.10 | | Other Comprehensive Income | 25,647,202.78 | 24,202,230.60 | | Surplus Reserve | 81,184,355.69 | 81,184,355.69 | | Undistributed Profit | 1,495,783,127.23 | 1,457,259,298.66 | | Total Owner's Equity Attributable to Parent Company | 3,064,672,252.88 | 3,022,421,867.90 | | Minority Interests | 265,260,914.97 | 258,589,027.10 | | Total Owner's Equity | 3,329,933,167.85 | 3,281,010,895.00 | [8、Parent Company Statement of Changes in Owner's Equity](index=54&type=section&id=8%E3%80%81%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) Parent company owner's equity decreased by 47.25 million Yuan, influenced by comprehensive income, capital changes, and profit distribution Parent Company Statement of Changes in Owner's Equity | Item | H1 2025 Period-end Balance (Yuan) | H1 2025 Period-start Balance (Yuan) | | :--- | :--- | :--- | | Share Capital | 230,601,779.00 | 230,601,779.00 | | Capital Reserve | 1,287,126,525.55 | 1,309,584,272.08 | | Less: Treasury Stock | 57,006,546.34 | 81,745,877.10 | | Other Comprehensive Income | 3,780,029.91 | 2,061,341.37 | | Surplus Reserve | 81,184,355.69 | 81,184,355.69 | | Undistributed Profit | 390,505,063.02 | 441,759,526.68 | | Total Owner's Equity | 1,936,191,206.83 | 1,983,445,397.72 | [Company Basic Information](index=57&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) Jiangsu Hichain Logistics Co., Ltd. has a registered capital of 230.60 million RMB, with Liang Chen as legal representative, operating in transportation, warehousing, and postal services - Company Name: Jiangsu Hichain Logistics Co., Ltd., registered capital of **230.60 million RMB**[186](index=186&type=chunk) - Legal Representative: Liang Chen, Industry: Transportation, Warehousing, and Postal Services (G)[186](index=186&type=chunk) - Principal Business: Manufacturing production logistics solutions and operation management services, and logistics automation equipment production, sales, and integration services[186](index=186&type=chunk) - Approval date for this financial report: August 25, 2025[186](index=186&type=chunk) [Basis of Financial Statement Preparation](index=58&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The financial statements are prepared on a going concern basis, adhering to Chinese Accounting Standards, covering January 1 to June 30, 2025 - The company prepares its financial statements on a going concern basis, in accordance with the "Accounting Standards for Business Enterprises - Basic Standards" and other accounting standards[188](index=188&type=chunk)[189](index=189&type=chunk) - The current accounting period is from January 1, 2025, to June 30, 2025[192](index=192&type=chunk) - The abbreviations for each subsidiary within the scope of consolidation are clearly defined to avoid ambiguity[190](index=190&type=chunk) [Significant Accounting Policies and Estimates](index=58&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the company's accounting policies and estimates for various financial items, including financial instruments, revenue recognition, and leases - The company adheres to Enterprise Accounting Standards, with the accounting period from January 1 to December 31 of the Gregorian calendar, a business cycle of 12 months, and RMB as the functional currency[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk) - Detailed accounting treatment methods for business combinations under common control and non-common control, as well as procedures for preparing consolidated financial statements and accounting for special transactions, are specified[196](index=196&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk) - Financial instruments are classified into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss, with detailed explanations of their recognition, derecognition, measurement, and impairment methods[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk) - Revenue recognition and measurement policies are disclosed based on business types (logistics services, warehousing services, goods sales), primarily recognized when customers obtain control of the related goods or services[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) - Lease accounting treatment methods differentiate between lessees and lessors, detailing initial and subsequent measurement of right-of-use assets and lease liabilities,

[Part I Important Notice, Table of Contents, and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) [Important Notice](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's board of directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content. The report alerts investors to risks associated with forward-looking statements regarding future plans and lists seven major operational risks, including human resources, information security, international trade, international management, new business promotion, intellectual property, and goodwill impairment - The company's board of directors 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 report advises investors that forward-looking statements regarding future plans do not constitute substantive commitments and involve investment risks[4](index=4&type=chunk) - The company faces seven major risks, including human resources, information security, international trade, international management, new business promotion, intellectual property, and goodwill impairment[4](index=4&type=chunk)[5](index=5&type=chunk)[6](index=6&type=chunk)[8](index=8&type=chunk)[10](index=10&type=chunk) [Table of Contents](index=6&type=section&id=%E7%9B%AE%E5%BD%95) This section lists the structured table of contents of the report, covering major chapters such as important notices, company profile, management discussion and analysis, corporate governance, significant matters, share changes, bond information, financial reports, and other submitted data [Definitions](index=8&type=section&id=%E9%87%8A%E4%B9%89) This section provides definitions for key terms and abbreviations used in the report, including company names, main business units, subsidiaries, motor types, and battery technologies, to ensure clear understanding of the report content [Part II Company Profile and Key Financial Indicators](index=10&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) [Company Profile](index=10&type=section&id=%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) This section provides the company's basic information, including stock abbreviation, code, listing exchange, Chinese and English names, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Dayang Electric | | Stock Code | 002249 | | Listing Exchange | Shenzhen Stock Exchange | | Chinese Name | Zhongshan Dayang Electric Co., Ltd. | | Legal Representative | Lu Chuping | [Contact Person and Information](index=10&type=section&id=%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 the name, contact address, telephone, fax, and email of the company's Board Secretary and Securities Affairs Representative for investor communication - The Board Secretary is Xiao Liangman, with the contact address at No. 1 Guangfeng Industrial Avenue, Xiqu, Zhongshan City, and telephone number 0760-88555306[21](index=21&type=chunk) [Other Information](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) During the reporting period, the company's registered capital changed due to the autonomous exercise of stock options under the incentive plan, and industrial and commercial registration has been completed - The company's registered capital changed from **RMB 2.413907073 billion** to **RMB 2.440120038 billion**, with industrial and commercial registration completed[24](index=24&type=chunk)[25](index=25&type=chunk) [Key Accounting Data and Financial Indicators](index=11&type=section&id=%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) The company achieved significant growth in operating revenue and net profit attributable to shareholders in the first half of 2025, with total assets and net assets also steadily increasing Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (RMB) | Prior Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 6,241,088,911.49 | 5,797,238,614.92 | 7.66% | | Net Profit Attributable to Shareholders of Listed Company | 601,725,719.94 | 447,677,829.42 | 34.41% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains/Losses) | 506,445,569.69 | 431,356,722.00 | 17.41% | | Net Cash Flow from Operating Activities | 971,341,645.33 | 1,203,592,949.58 | -19.30% | | Basic Earnings Per Share (RMB/share) | 0.25 | 0.19 | 31.58% | | Diluted Earnings Per Share (RMB/share) | 0.25 | 0.19 | 31.58% | | Weighted Average Return on Net Assets | 6.28% | 5.01% | 1.27% | | **Current Period End** | **Prior Year End** | **Change from Prior Year End** | | Total Assets | 18,326,326,748.71 | 17,941,361,026.95 | 2.15% | | Net Assets Attributable to Shareholders of Listed Company | 9,518,771,583.30 | 9,292,695,179.31 | 2.43% | [Differences in Accounting Data Under Domestic and International Accounting Standards](index=11&type=section&id=%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards or foreign accounting standards and Chinese Accounting Standards - During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards[27](index=27&type=chunk) - During the reporting period, the company had no differences in net profit and net assets between financial reports disclosed under foreign accounting standards and Chinese Accounting Standards[28](index=28&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=11&type=section&id=%E9%9D%9E%E5%B8%B8%E8%A7%84%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%8F%8A%E9%87%91%E9%A2%9D) Total non-recurring gains and losses for the current period amounted to **RMB 95.28 million**, primarily from fair value changes, government subsidies, and reversal of impairment provisions for receivables Non-Recurring Gains and Losses Items and Amounts for H1 2025 | Item | Amount (RMB) | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | 580,327.65 | | Government Subsidies Recognized in Current Period P&L (Excluding Those with Continuous Impact) | 25,542,675.48 | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities Held by Non-Financial Enterprises | 101,751,716.98 | | Reversal of Impairment Provisions for Receivables Subject to Individual Impairment Testing | 6,974,120.69 | | Other Non-Operating Income and Expenses Apart from the Above | -4,842,175.47 | | Less: Income Tax Impact | 20,137,202.44 | | Minority Interest Impact (After Tax) | 14,589,312.64 | | Total | 95,280,150.25 | [Part III Management Discussion and Analysis](index=13&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) [I. Company's Main Business Activities During the Reporting Period](index=13&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 aims to be a global green and intelligent solution provider for motor and drive control systems, with businesses covering building ventilation and home appliance motors (BHM), new energy vehicle powertrain systems, vehicle rotating electrical appliances, and hydrogen fuel cell systems. During the reporting period, the company achieved record-high revenue and profit amidst complex economic conditions, with all business units developing well and significant progress in global layout and emerging technologies - The company's main businesses include building ventilation and home appliance motors, new energy vehicle powertrain systems, vehicle rotating electrical appliances, and hydrogen fuel cell systems and their key components[33](index=33&type=chunk) - In the first half of 2025, the company achieved operating revenue of **RMB 6.241 billion**, a **7.66% year-on-year increase**, and net profit attributable to shareholders of **RMB 602 million**, a **34.41% year-on-year increase**, both reaching historical highs for the same period[45](index=45&type=chunk) [Company's Main Businesses](index=13&type=section&id=%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company focuses on two core segments, the BHM business unit and the Vehicle Business Group (EVBG), providing motor drive system solutions widely used in home appliances, automotive, and hydrogen energy fields - The company has formed two major business segments: the BHM business unit, primarily focusing on building ventilation and home appliance motor products, and the Vehicle Business Group (EVBG), primarily focusing on key automotive components[33](index=33&type=chunk) [Industry Development Review](index=13&type=section&id=%E8%A1%8C%E4%B8%9A%E5%8F%91%E5%B1%95%E5%9B%9E%E9%A1%B5) In H1 2025, the home appliance industry grew steadily with policy stimulus, especially in air conditioning. The automotive industry saw robust production and sales, with new energy vehicle penetration increasing and range-extended electric vehicles opening new growth curves. The hydrogen energy sector, a national strategic emerging industry, received continuous policy support, with PEMFC and SOC technologies advancing - In the first half of 2025, China's home appliance market retail sales reached **RMB 453.7 billion**, a **9.2% year-on-year increase**; air conditioner sales reached **38.45 million units**, a **15.6% year-on-year increase**[33](index=33&type=chunk)[34](index=34&type=chunk) - In the first half of 2025, China's automobile production and sales both exceeded **15 million units** for the first time, growing by **12.5%** and **11.4%** year-on-year, respectively; new energy vehicle production and sales reached **6.968 million units** and **6.937 million units**, growing by **41.4%** and **40.3%** year-on-year, respectively[37](index=37&type=chunk)[38](index=38&type=chunk) - Hydrogen energy has been designated a 'strategic emerging industry,' with continuous improvement in policy support promoting full-chain development from production to storage, transportation, and utilization; Proton Exchange Membrane Fuel Cells (PEMFC) and Solid Oxide Cells (SOC) are core technologies[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) [Company Business Overview](index=15&type=section&id=%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%A6%82%E8%BF%B0) The BHM business unit's revenue grew by **10.28%** year-on-year, deepening digital transformation and expanding global production capacity, actively entering the robotics field. The Vehicle Business Group's new energy vehicle powertrain system revenue grew by **5.73%** year-on-year, making progress in technology and market expansion; vehicle rotating electrical appliance revenue grew by **5.92%** year-on-year, improving efficiency through lean management. Hydrogen energy business focuses on BOP R&D and strategically invests in key links of the industry chain - The BHM business unit achieved operating revenue of **RMB 3.806 billion**, a **10.28% increase** year-on-year, and its Zhongshan headquarters' 'Global Motor and Drive System Big Data Central Control Smart Factory' was selected as a Guangdong Province Advanced Smart Factory[46](index=46&type=chunk)[47](index=47&type=chunk) - The BHM business unit actively entered the robotics field, establishing a 'Humanoid Robot Motor' project team, co-founding a joint research center with Tongji University, and strategically investing in Mech-Mind, a leading intelligent robotics company[47](index=47&type=chunk) - New energy vehicle powertrain system business achieved operating revenue of **RMB 725 million**, a **5.73% increase** year-on-year; Shanghai Electric Drive's Shanghai factory's multi-in-one electric drive assembly production line began mass production and delivery, with Thailand and Chongqing factories commencing operations[48](index=48&type=chunk) - Vehicle rotating electrical appliance business achieved operating revenue of **RMB 1.657 billion**, a **5.92% increase** year-on-year, improving operational efficiency through digitalization and lean production, and successfully securing a Renault generator product project nomination[50](index=50&type=chunk)[51](index=51&type=chunk) - Hydrogen energy business focuses on R&D of hydrogen fuel cell BOP, developing key components such as multi-in-one controllers and high-speed centrifugal air compressors, strategically investing in Zhong'an Haoyuan to expand into organic liquid hydrogen storage and release business, and developing Metal-Supported Solid Oxide Cells (MS-SOC)[51](index=51&type=chunk)[52](index=52&type=chunk) [II. Core Competitiveness Analysis](index=17&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company has built multi-dimensional core competitive advantages through continuous technological innovation, a sound talent incentive mechanism, successful industrial transformation and upgrading, efficient resource integration, a strong brand and marketing network, and a global production layout, laying a solid foundation for sustainable development - The company continuously increases R&D investment, possessing **3 national-level laboratories** and **4 CNAS-accredited laboratories**, with **4,427 patent applications** and **3,387 granted patents**, maintaining technological leadership in high-efficiency intelligent motors, new energy vehicle powertrain systems, and hydrogen fuel cell key components[54](index=54&type=chunk) - The company attracts and retains senior technical and management talent through equity incentives and employee stock ownership plans (such as the 'Navigator Plan'), enhancing R&D enthusiasm and creativity[55](index=55&type=chunk) - The company successfully transformed from the traditional home appliance industry to the new energy vehicle and hydrogen energy industries, forming a tiered industrial development pattern: 'Today - Building Ventilation and Home Appliance Motors,' 'Tomorrow - New Energy Vehicle Powertrain Systems,' and 'Future - Hydrogen Energy Industry'[56](index=56&type=chunk)[57](index=57&type=chunk) - The company integrated key automotive component subsidiaries to form the Vehicle Business Group, and achieved multi-dimensional resource integration and synergistic development in R&D, sales, service, talent, and brand through joint ventures/associates, joint laboratories, and industrial funds[57](index=57&type=chunk)[58](index=58&type=chunk) - The company owns well-known brands such as 'Dayang Electric,' 'Electric Drive,' 'Prestolite,' and 'Jienuo Rui,' with products sold in over **80 countries and regions worldwide**, establishing partnerships with numerous Fortune 500 companies[58](index=58&type=chunk)[59](index=59&type=chunk) - The company has established subsidiaries and production bases globally (e.g., USA, Mexico, UK, Vietnam, India, Thailand, Morocco), achieving a global layout, optimizing resource allocation, reducing production costs, and diversifying market risks[59](index=59&type=chunk)[60](index=60&type=chunk) [III. Main Business Analysis](index=19&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) The company's main business achieved steady growth, with operating revenue increasing by **7.66%** year-on-year, primarily driven by comprehensive growth in building and home appliance motors, traditional starters and generators, and new energy vehicle powertrain systems. The company effectively controlled operating costs through procurement cost reduction and lean production, but management expenses and R&D investment increased. Overseas revenue grew faster than domestic revenue Year-on-Year Changes in Key Financial Data | Indicator | Current Period (RMB) | Prior Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 6,241,088,911.49 | 5,797,238,614.92 | 7.66% | Sales revenue for building and home appliance motors, traditional starters and generators, and new energy vehicle powertrain systems all increased | | Operating Cost | 4,871,998,945.25 | 4,572,760,065.48 | 6.54% | Strengthened procurement cost reduction and lean production, leading to lower production costs | | Management Expenses | 444,539,978.87 | 367,639,785.70 | 20.92% | Increased employee compensation, consulting and audit fees, etc. | | Financial Expenses | -92,662,957.84 | -51,476,956.36 | -80.01% | Increased exchange gains | | R&D Investment | 321,516,748.45 | 298,973,313.15 | 7.54% | Increased R&D investment in high-efficiency intelligent motors, fan systems, and new energy vehicle powertrain systems | | Net Cash Flow from Operating Activities | 971,341,645.33 | 1,203,592,949.58 | -19.30% | Increased cash paid for purchases of goods, employee compensation, and debt investments | Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Current Period Amount (RMB) | Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | | **By Industry** | Building and Home Appliance Industry | 3,806,225,997.15 | 60.99% | 10.28% | | | Automotive Parts Industry | 2,382,773,681.00 | 38.18% | 5.86% | | **By Product** | Building and Home Appliance Motors | 3,806,225,997.15 | 60.99% | 10.28% | | | Starters and Generators | 1,657,360,056.92 | 26.56% | 5.92% | | | New Energy Vehicle Powertrain Systems | 725,413,624.08 | 11.62% | 5.73% | | **By Region** | Mainland China | 3,265,720,353.50 | 52.33% | 5.89% | | | Outside Mainland China | 2,975,368,557.99 | 47.67% | 9.66% | [IV. Non-Core Business Analysis](index=21&type=section&id=%E5%9B%9B%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) The company's non-core businesses significantly contributed to total profit, primarily from investment income and fair value changes, but these gains are not sustainable Impact of Non-Core Businesses on Total Profit | Item | Amount (RMB) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 92,701,086.79 | 12.28% | Interest income from debt investments and equity method accounting for long-term equity investments | No | | Gains/Losses from Fair Value Changes | 89,114,648.43 | 11.80% | Gains from fair value changes of other non-current financial assets held | No | | Asset Impairment | 21,070,212.15 | 2.79% | Reversal of inventory impairment provisions | No | | Credit Impairment Losses | -23,418,401.97 | -3.10% | Provision for bad debts on commercial acceptance bills receivable | No | [V. Analysis of Assets and Liabilities](index=22&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company's total assets and net assets attributable to shareholders both increased. Construction in progress and long-term borrowings saw significant increases, mainly due to increased investment in production equipment and factory buildings, and an increase in special loans for share repurchases. The company holds a certain scale of overseas assets and has some assets measured at fair value and with restricted rights Significant Changes in Asset Composition | Item | Current Period End Amount (RMB) | Proportion of Total Assets | Prior Year End Amount (RMB) | Proportion of Total Assets | Proportion Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 18,326,326,748.71 | 100% | 17,941,361,026.95 | 100% | 2.15% | - | | Net Assets Attributable to Shareholders of Listed Company | 9,518,771,583.30 | - | 9,292,695,179.31 | - | 2.43% | - | | Construction in Progress | 175,465,261.82 | 0.96% | 81,649,142.02 | 0.46% | 0.50% | Increased investment in production equipment and factory buildings that have not yet reached their intended usable state | | Long-Term Borrowings | 82,183,287.27 | 0.45% | 30,679,408.91 | 0.17% | 0.28% | Increased amount of special loans for share repurchases applied from banks | - The company's main overseas assets include properties in Michigan, Hong Kong, New York, and Illinois, USA, used as offices or factories, with stable operating models and complete licenses[69](index=69&type=chunk) - Total financial assets measured at fair value at period-end amounted to **RMB 281 million**, primarily comprising other non-current financial assets (**RMB 210 million**) and trading financial assets (**RMB 7.5759 million**)[70](index=70&type=chunk) - As of the end of the reporting period, the company's total restricted assets amounted to **RMB 459.97 million**, primarily including monetary funds, notes receivable, debt investments, and some other current assets, with restriction reasons including pledged bank acceptance bills and restricted foreign exchange transactions[72](index=72&type=chunk) [VI. Investment Status Analysis](index=23&type=section&id=%E5%85%AD%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) During the reporting period, the company's investment decreased by **30.75%** year-on-year. The company holds securities investments such as Ballard Power Systems and engages in futures and forward foreign exchange derivative investments for hedging purposes, effectively mitigating raw material price and exchange rate fluctuation risks - Investment during the reporting period was **RMB 188 million**, a **30.75% decrease** compared to the prior year[73](index=73&type=chunk) Securities Investment Information | Security Type | Security Code | Security Name | Accounting Subject | Period-End Carrying Value (RMB) | | :--- | :--- | :--- | :--- | :--- | | Domestic and Overseas Stocks | BLDP | Ballard Power Systems | Other Equity Instrument Investments | 11,545,380.75 | | Domestic and Overseas Stocks | HK2188 | Titan Energy Technology | Other Equity Instrument Investments | 21,474,754.56 | | Domestic and Overseas Stocks | HK1333 | Boreyton | Other Non-Current Financial Assets | 107,272,500.00 | - The company engages in futures and forward foreign exchange derivative investments for hedging purposes, with a period-end amount of **RMB 58.8956 million**, accounting for **0.67%** of the company's net assets at the end of the reporting period, effectively mitigating the impact of spot market price fluctuations and exchange rate fluctuations on the company's profitability[77](index=77&type=chunk)[78](index=78&type=chunk) [VII. Significant Asset and Equity Disposals](index=25&type=section&id=%E4%B8%83%E3%80%81%E9%87%8D%E5%A4%A7%E8%B5%84%E4%BA%A7%E5%92%8C%E8%82%A1%E6%9D%83%E5%87%BA%E5%94%AE) The company did not have any significant asset or equity disposal matters during the reporting period - The company did not dispose of significant assets during the reporting period[81](index=81&type=chunk) - The company did not dispose of significant equity during the reporting period[82](index=82&type=chunk) [VIII. Analysis of Major Holding and Participating Companies](index=25&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This section primarily analyzes the financial status of Shanghai Electric Drive, a subsidiary whose net profit impact exceeds **10%** of the company's, and discloses the acquisition and disposal of subsidiaries during the reporting period Financial Data of Major Subsidiary Shanghai Electric Drive | Company Name | Company Type | Main Business | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Electric Drive | Subsidiary | R&D, production, and sales of new energy vehicle electric drive systems, starters, and generators | 124,093,191.00 | 4,908,366,594.17 | 1,829,281,091.44 | 2,379,451,817.35 | 116,609,142.75 | - During the reporting period, the company established **4 new subsidiaries** including ABTC SARL, ABTU SARL, BGTI SARL, BGTM SARL; deregistered **2 subsidiaries**, Dayang Electric Fuel Cell Chengdu and Dayang Electric Fuel Cell Technology Zhoushan; and liquidated **1 subsidiary**, Jiangsu Yixing[85](index=85&type=chunk) [IX. Information on Structured Entities Controlled by the Company](index=26&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E5%88%B6%E7%9A%84%E7%BB%93%E6%9E%84%E5%8C%96%E4%B8%BB%E4%BD%93%E6%83%85%E5%86%B5) The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[85](index=85&type=chunk) [X. Risks Faced by the Company and Countermeasures](index=26&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The risks faced by the company remained unchanged during the reporting period, with specific risks and countermeasures detailed in the Important Notice section - The risks faced by the company remained unchanged during the reporting period; please refer to Part I Important Notice for details[85](index=85&type=chunk) [XI. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=26&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E5%B8%82%E5%80%BC%E7%AE%A1%E7%90%86%E5%88%B6%E5%BA%A6%E5%92%8C%E4%BC%B0%E5%80%BC%E6%8F%90%E5%8D%87%E8%AE%A1%E5%88%92%E7%9A%84%E5%88%B6%E5%AE%9A%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company has not formulated a market value management system nor disclosed a valuation enhancement plan - The company has not formulated a market value management system[86](index=86&type=chunk) - The company has not disclosed a valuation enhancement plan[86](index=86&type=chunk) [XII. Implementation of ‘Quality and Return Dual Enhancement’ Action Plan](index=26&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E2%80%9C%E8%B4%A8%E9%87%8F%E5%9B%9E%E6%8A%A5%E5%8F%8C%E6%8F%90%E5%8D%87%E2%80%9D%E8%A1%8C%E5%8A%A8%E6%96%B9%E6%A1%88%E8%B4%AF%E5%BD%BB%E8%90%BD%E5%AE%9E%E6%83%85%E5%86%B5) The company actively implements the 'Quality and Return Dual Enhancement' action plan through various measures, including focusing on main business development, adhering to innovation-driven strategies, implementing a global industrial layout, strengthening corporate governance, emphasizing investor returns, and deepening investor relations management, to enhance company value and investor confidence - In the first half of 2025, the company's operating revenue and profit both reached historical highs, with R&D investment of **RMB 321.5 million**, a **7.54% year-on-year increase**, and a cumulative total of **4,427 patent applications**[86](index=86&type=chunk) - The company actively promotes its global industrial layout, establishing subsidiaries and production bases in multiple countries, and initiating the construction of its Indiana, USA factory to optimize resource allocation and respond to changes in the international trade environment[87](index=87&type=chunk)[88](index=88&type=chunk) - The company revised its Articles of Association to abolish the Board of Supervisors, strengthened the functions of the Audit Committee, and organized training for directors, supervisors, and senior management to solidify corporate governance[88](index=88&type=chunk) - The company implemented its 2024 equity distribution plan, distributing a cash dividend of **RMB 1.3** (tax inclusive) per **10 shares** to all shareholders, with a cumulative distribution of **RMB 316 million**; as of June 30, 2025, the company had cumulatively repurchased **10.667 million shares**, with a total transaction amount of **RMB 64.9813 million**[89](index=89&type=chunk) - The company deepens investor relations management and efficiently communicates company value through diversified channels, including online performance briefings, graphic reports, on-site investigations, telephone consultations, the Interactive Easy platform, and broker strategy conferences[89](index=89&type=chunk)[90](index=90&type=chunk) [Part IV Corporate Governance, Environment, and Society](index=28&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) [I. Changes in Directors, Supervisors, and Senior Management](index=28&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's independent directors, chairman of the board of supervisors, and supervisors resigned due to term expiration or charter revisions, and new independent directors were elected. Additionally, the company appointed a new Chief Financial Officer and Vice President, and Board Secretary - Independent Directors Liu Yihua, Hou Yu, and Zheng Fuli resigned upon term expiration, and Zhang Chengning, Zhang Yongde, and Chen Liang were elected as new independent directors[92](index=92&type=chunk) - Chairman of the Board of Supervisors Wang Zhenbiao, and Supervisors Bing Liming and Peng Weiwen resigned upon term expiration due to the company's revision of its Articles of Association to abolish the Board of Supervisors[93](index=93&type=chunk) - Mr. Wu Xiaoyun was appointed as the company's Chief Financial Officer and Vice President, and Mr. Xiao Liangman was appointed as the company's Board Secretary[93](index=93&type=chunk) [II. Profit Distribution and Capital Reserve to Share Capital Conversion for the Current Period](index=28&type=section&id=%E4%BA%8C%E3%80%81%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E5%8F%8A%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E8%82%A1%E6%9C%AC%E6%83%85%E5%86%B5) The company's board of directors approved the 2025 semi-annual profit distribution plan, proposing a cash dividend of **RMB 1.0** (tax inclusive) per **10 shares** to all shareholders, with no bonus shares or capital reserve to share capital conversion - The company's 2025 semi-annual profit distribution plan proposes to distribute a cash dividend of **RMB 1.0** (tax inclusive) per **10 shares** to all shareholders, based on the total share capital registered on the equity distribution record date, after deducting shares held in the repurchase special securities account[94](index=94&type=chunk) - The total cash dividend (tax inclusive) for this period is **RMB 243 million**, and the total cash dividend (including other methods) accounts for **100%** of the total profit distribution[94](index=94&type=chunk) [III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=29&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) During the reporting period, the company adjusted the exercise prices of its 2020-2024 multi-period stock option incentive plans and canceled some stock options. Additionally, it disclosed the shareholding status and funding sources of several employee stock ownership plans, as well as changes in shareholdings of directors, supervisors, and senior management in these plans - The company adjusted the exercise prices of its 2020, 2022, 2023, and 2024 stock option incentive plans and canceled some reserved stock options granted under the 2020 and 2021 stock option incentive plans[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) Status of All Effective Employee Stock Ownership Plans During the Reporting Period | Scope of Employees | Number of Employees | Total Shares Held (shares) | Proportion of Listed Company's Total Share Capital | Funding Source for the Plan | | :--- | :--- | :--- | :--- | :--- | | Core R&D personnel of the company's new energy vehicle electric drive powertrain system and hydrogen fuel cell system businesses | 122 | 3,412,250 | 0.14% | Company's accrued special R&D bonuses | | Non-independent directors, supervisors, senior management, and core personnel of the company (including subsidiaries) | 92 | 30,000 | 0.00% | Employees' legal compensation, self-raised funds, etc. | | Core R&D personnel of the company's new energy vehicle electric drive powertrain system and hydrogen fuel cell system businesses | 147 | 3,268,750 | 0.13% | Company's accrued special R&D bonuses | | Non-independent directors, supervisors, senior management, and core personnel of the company (including subsidiaries) | 72 | 5,862,500 | 0.24% | Employees' legal compensation, self-raised funds, etc. | | Non-independent directors, supervisors, senior management, and core personnel of the company (including subsidiaries) | 139 | 3,980,800 | 0.16% | Employees' legal compensation, self-raised funds, etc. | - The lock-up period for the company's 'Head Wolf Plan Phase II' employee stock ownership plan expired, and **2,849,000 shares** of the company were sold through centralized bidding transactions in the secondary market during the reporting period[101](index=101&type=chunk) [IV. Environmental Information Disclosure](index=30&type=section&id=%E5%9B%9B%E3%80%81%E7%8E%AF%E5%A2%83%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E6%83%85%E5%86%B5) The company and two of its major subsidiaries are included in the list of enterprises required to disclose environmental information by law, with inquiry indexes provided - The company and **2 major subsidiaries** (Zhongshan Dayang Electric Co., Ltd. and Zhongshan Yibisi Technology Co., Ltd.) are included in the list of enterprises required to disclose environmental information by law[102](index=102&type=chunk) [V. Social Responsibility](index=31&type=section&id=%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company actively fulfills its corporate social responsibility, committing to environmental protection and social welfare, and engaging in rural revitalization efforts, with external donations totaling **RMB 3.305 million** during the reporting period - The company actively fulfills its corporate social responsibility, dedicating itself to environmental protection and social welfare, and carrying out industrial revitalization and educational revitalization in conjunction with rural revitalization efforts[104](index=104&type=chunk) - During the reporting period, the company made total external donations of **RMB 3.305 million**[104](index=104&type=chunk) [Part V Significant Matters](index=32&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) [I. Commitments Fulfilled and Overdue Unfulfilled Commitments by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and Other Related Parties During the Reporting Period and as of the End of the Reporting Period](index=32&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) The company's equity incentive commitments were fulfilled on time during the reporting period, with no overdue unfulfilled commitments - The company committed not to provide loans or any other form of financial assistance to the grantees of the 2021 stock option incentive plan for exercising stock options under this plan, and this commitment has been fulfilled[106](index=106&type=chunk) [II. Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties](index=32&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company - During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company[107](index=107&type=chunk) [III. Irregular External Guarantees](index=32&type=section&id=%E4%B8%89%E3%80%81%E8%BF%9D%E8%A7%84%E5%AF%B9%E5%A4%96%E6%8B%85%E4%BF%9D%E6%83%85%E5%86%B5) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[108](index=108&type=chunk) [IV. Appointment and Dismissal of Accounting Firms](index=32&type=section&id=%E5%9B%9B%E3%80%81%E8%81%98%E4%BB%BB%E3%80%81%E8%A7%A3%E8%81%98%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%83%85%E5%86%B5) The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[109](index=109&type=chunk) [V. Board of Directors' and Board of Supervisors' Explanations on ‘Non-Standard Audit Report’ for the Current Period](index=32&type=section&id=%E4%BA%94%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9A%84%E8%AF%B4%E6%98%8E) The company had no non-standard audit report during the reporting period, thus the Board of Directors and Board of Supervisors do not need to provide explanations - The company had no non-standard audit report during the reporting period[110](index=110&type=chunk) [VI. Board of Directors' Explanations on ‘Non-Standard Audit Report’ for the Prior Year](index=32&type=section&id=%E5%85%AD%E3%80%81%E8%91%A3%E4%BA%8B%E4%BC%9A%E5%AF%B9%E4%B8%8A%E5%B9%B4%E5%BA%A6%E2%80%9C%E9%9D%9E%E6%A0%87%E5%87%86%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A%E2%80%9D%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) The company had no non-standard audit report for the prior year, thus the Board of Directors does not need to provide explanations - The company had no non-standard audit report for the prior year during the reporting period[110](index=110&type=chunk) [VII. Bankruptcy and Reorganization Matters](index=32&type=section&id=%E4%B8%83%E3%80%81%E7%A0%B4%E4%BA%A7%E9%87%8D%E6%95%B4%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[110](index=110&type=chunk) [VIII. Litigation Matters](index=33&type=section&id=%E5%85%AB%E3%80%81%E8%AF%89%E8%AE%BC%E4%BA%8B%E9%A1%B9) The company had no significant litigation or arbitration matters during the reporting period, but there were other ongoing litigation matters involving **RMB 30.6493 million** - The company had no significant litigation or arbitration matters during the current reporting period[111](index=111&type=chunk) - The company has other litigation matters with an involved amount of **RMB 30.6493 million** that do not meet the disclosure threshold for significant litigation, which are currently under trial and not yet concluded[111](index=111&type=chunk) [IX. Penalties and Rectification](index=33&type=section&id=%E4%B9%9D%E3%80%81%E7%BD%9A%E7%BD%9A%E5%8F%8A%E6%95%B4%E6%94%B9%E6%83%85%E5%86%B5) The company had no penalties or rectification matters during the reporting period - The company had no penalties or rectification matters during the reporting period[112](index=112&type=chunk) [X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=33&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) During the reporting period, there were no issues regarding the integrity status of the company, its controlling shareholder, or actual controller - During the reporting period, there were no issues regarding the integrity status of the company, its controlling shareholder, or actual controller[113](index=113&type=chunk) [XI. Significant Related Party Transactions](index=33&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) During the reporting period, the company engaged in related party transactions related to its daily operations, including purchasing raw materials from Zhongshan Qunlixing Plastic Hardware Electronic Products Co., Ltd. and a joint external investment with Guangzhou Wanwuji Industrial Internet Technology Co., Ltd Related Party Transactions for Purchase and Sale of Goods, Provision and Acceptance of Services | Related Party | Related Transaction Content | Current Period Amount (RMB 10,000) | Approved Transaction Limit (RMB 10,000) | Exceeded Transaction Limit | | :--- | :--- | :--- | :--- | :--- | | Zhongshan Qunlixing Plastic Hardware Electronic Products Co., Ltd. | Purchase of lead wire components for motor production | 1,017.92 | 4,646.35 | No | Related Party Transactions for Joint External Investment | Joint Investor | Related Party Relationship | Name of Investee Company | Main Business of Investee Company | Registered Capital of Investee Company (RMB) | | :--- | :--- | :--- | :--- | :--- | | Baiao Hexiang No. 1 (Hainan) Investment Partnership (Limited Partnership) | Enterprise controlled by related natural person | Guangzhou Wanwuji Industrial Internet Technology Co., Ltd. | Providing one-stop sales for equipment maintenance, repair, and operations (MRO) | 59,088,923.00 | [XII. Significant Contracts and Their Performance](index=34&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company had no trusteeship or contracting situations during the reporting period. In terms of leasing, the company earned **RMB 15.902 million** from leasing out factory buildings and paid **RMB 24.4315 million** for leasing in factory buildings. The company provided a joint and several liability guarantee of **RMB 171.8 million** for its wholly-owned subsidiary, Dayang Electric Hong Kong. The company also engaged in entrusted wealth management for bank wealth management products totaling **RMB 7.5759 million** - The company had no trusteeship situations during the reporting period[120](index=120&type=chunk) - The company had no contracting situations during the reporting period[121](index=121&type=chunk) - During the reporting period, the company leased out factory buildings with a cumulative area of **171,900 square meters**, generating rental income of **RMB 15.902 million**; it leased in factory buildings with a cumulative area of **149,400 square meters**, incurring rental expenses of **RMB 24.4315 million**[122](index=122&type=chunk) - The company provided a joint and several liability guarantee of **RMB 171.8 million** for its wholly-owned subsidiary, Dayang Electric Hong Kong, with a guarantee period of **3 years**, and no guaranteed borrowings occurred as of the end of the reporting period[125](index=125&type=chunk)[156](index=156&type=chunk) - The company's entrusted wealth management primarily consists of bank wealth management products, with both the amount incurred and the outstanding balance being **RMB 7.5759 million**, and no overdue unrecovered amounts[128](index=128&type=chunk) [XIII. Explanation of Other Significant Matters](index=36&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) The company is planning an overseas H-share issuance and listing on The Stock Exchange of Hong Kong Limited, aiming to deepen its global strategic layout, enhance international competitiveness and overseas financing capabilities, and improve corporate governance transparency - The company is planning an overseas H-share issuance and listing on The Stock Exchange of Hong Kong Limited[129](index=129&type=chunk) - This H-share issuance and listing aims to deepen the company's global strategic layout, enhance the localization of manufacturing and supply chain capabilities for overseas businesses, improve overall international market competitiveness, and build an international capital operation platform to strengthen overseas financing capabilities[129](index=129&type=chunk) - This H-share issuance and listing will not result in a change in the company's controlling shareholder or actual controller[129](index=129&type=chunk) [XIV. Significant Matters of Company Subsidiaries](index=37&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) The company had no significant subsidiary matters during the reporting period - The company had no significant subsidiary matters during the reporting period[130](index=130&type=chunk) [Part VI Share Changes and Shareholder Information](index=38&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) [I. Share Change Information](index=38&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's total share capital changed due to stock option exercises and share repurchase cancellations, ultimately decreasing by **2,001,844 shares**. The company continued to advance its share repurchase plan and disclosed changes in restricted shares held by directors, supervisors, senior management, and other shareholders - During the reporting period, the company's total share capital changed from **2,443,811,976 shares** to **2,441,810,132 shares**, primarily due to an increase of **11,349,154 shares** from stock option exercises and the cancellation of **13,350,998 repurchased shares**[132](index=132&type=chunk)[133](index=133&type=chunk) - The exercise conditions for the company's multi-period stock option incentive plans (2020, 2021, 2022, 2023) have been met, and grantees can exercise their options[134](index=134&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk) - As of June 30, 2025, the company had cumulatively repurchased **10,667,000 shares** through its repurchase special securities account, accounting for **0.44%** of the total share capital, with a total transaction amount of **RMB 64.9813 million**; the repurchase plan has not yet been fully implemented[139](index=139&type=chunk) Changes in Restricted Shares (Selected Directors, Supervisors, Senior Management) | Shareholder Name | Beginning Restricted Shares (shares) | Increase in Restricted Shares This Period (shares) | Ending Restricted Shares (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | | Liu Ziwen | 743,557 | 325,739 | 1,069,296 | Senior management restricted shares, new shares from stock option exercise | | Liu Bo | 431,685 | 259,911 | 691,596 | Senior management restricted shares, new shares from stock option exercise | | Wu Xiaoyun | 760,672 | 176,474 | 937,146 | Senior management restricted shares, new shares from stock option exercise | | Xiao Liangman | 0 | 93,262 | 93,262 | Senior management restricted shares, appointed as Board Secretary for the 7th Board of Directors | [II. Securities Issuance and Listing Information](index=41&type=section&id=%E4%BA%8C%E3%80%81%E8%AF%81%E5%88%B8%E5%8F%91%E8%A1%8C%E4%B8%8E%E4%B8%8A%E5%B8%82%E6%83%85%E5%86%B5) The company had no securities issuance or listing during the reporting period - The company had no securities issuance or listing during the reporting period[141](index=141&type=chunk) [III. Number of Shareholders and Shareholding Information](index=41&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **110,250** common shareholders. Lu Chuping is the largest shareholder, holding **25.13%** of the shares. Among the top ten shareholders, Lu Chuping, Xu Haiming, Peng Hui, Xiong Jieming, and Lu Sanping are parties acting in concert - The total number of common shareholders at the end of the reporting period was **110,250**[142](index=142&type=chunk) Top Ten Shareholders' Shareholding Information | Shareholder Name | Shareholding Proportion | Shareholder Nature | Shares Held at Period-End (shares) | Restricted Shares Held (shares) | Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Lu Chuping | 25.13% | Domestic Natural Person | 613,591,916 | 460,193,937 | 153,397,979 | | Xu Haiming | 5.72% | Domestic Natural Person | 139,687,320 | 104,765,490 | 34,921,830 | | Hong Kong Securities Clearing Company Limited | 4.75% | Overseas Legal Person | 115,902,408 | 0 | 115,902,408 | | Peng Hui | 1.97% | Domestic Natural Person | 48,090,000 | 36,067,500 | 12,022,500 | | Gong Jun | 1.13% | Domestic Natural Person | 27,701,800 | 0 | 27,701,800 | | Shihezi Pangde Dayang Equity Investment Partnership (Limited Partnership) | 1.02% | Domestic Non-State-Owned Legal Person | 25,006,800 | 0 | 25,006,800 | | Ping An Fund - SPD Bank - Ping An Dahua SPD Guangzhou Huiyin Aofeng No. 8 Specific Client Asset Management Plan | 0.90% | Other | 21,991,575 | 0 | 21,991,575 | | Xiong Jieming | 0.83% | Domestic Natural Person | 20,376,870 | 0 | 20,376,870 | | Cheng Jianhua | 0.75% | Domestic Natural Person | 18,325,000 | 0 | 18,325,000 | | China Merchants Bank Co., Ltd. - Southern CSI 1000 Exchange Traded Fund | 0.65% | Other | 15,778,100 | 0 | 15,778,100 | - Mr. Lu Chuping and Ms. Peng Hui are spouses; Mr. Lu Chuping, Ms. Peng Hui, and Mr. Xiong Jieming are parties acting in concert[142](index=142&type=chunk) [IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=42&type=section&id=%E5%9B%9B%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) During the reporting period, the shareholdings of some of the company's directors and senior management increased, primarily through the exercise of stock options Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Beginning Shares Held (shares) | Shares Increased This Period (shares) | Ending Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | | Liu Ziwen | Director, Executive Vice President | 991,410 | 434,320 | 1,425,730 | | Liu Bo | Director, Vice President | 575,580 | 346,550 | 922,130 | | Wu Xiaoyun | Vice President, Chief Financial Officer | 1,014,230 | 235,300 | 1,249,530 | [V. Changes in Controlling Shareholder or Actual Controller](index=42&type=section&id=%E4%BA%94%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[145](index=145&type=chunk) - The company's actual controller remained unchanged during the reporting period[145](index=145&type=chunk) [VI. Preferred Share Information](index=43&type=section&id=%E5%85%AD%E3%80%81%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[146](index=146&type=chunk) [Part VII Bond-Related Information](index=44&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) [Bond-Related Information](index=44&type=section&id=%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[148](index=148&type=chunk) [Part VIII Financial Report](index=45&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) [I. Audit Report](index=45&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[150](index=150&type=chunk) [II. Financial Statements](index=45&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 owners' equity for the first half of 2025, comprehensively reflecting the financial position at the end of the reporting period and the operating results and cash flows during the reporting period [Consolidated Balance Sheet](index=45&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the company's consolidated total assets were **RMB 18.326 billion**, with total current assets of **RMB 10.743 billion** and total non-current assets of **RMB 7.583 billion**. Total liabilities were **RMB 8.607 billion**, and total owners' equity was **RMB 9.720 billion** - As of June 30, 2025, consolidated total assets were **RMB 18.326 billion**, an increase of **2.15%** from the beginning of the period[152](index=152&type=chunk)[26](index=26&type=chunk) - Total current assets at period-end were **RMB 10.743 billion**, and total non-current assets were **RMB 7.583 billion**[152](index=152&type=chunk)[153](index=153&type=chunk) - Total liabilities at period-end were **RMB 8.607 billion**, and total owners' equity was **RMB 9.720 billion**[154](index=154&type=chunk) [Parent Company Balance Sheet](index=47&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the parent company's total assets were **RMB 14.584 billion**, with total current assets of **RMB 5.923 billion** and total non-current assets of **RMB 8.662 billion**. Total liabilities were **RMB 5.255 billion**, and total owners' equity was **RMB 9.330 billion** - As of June 30, 2025, the parent company's total assets were **RMB 14.584 billion**[157](index=157&type=chunk) - Total current assets at period-end were **RMB 5.923 billion**, and total non-current assets were **RMB 8.662 billion**[157](index=157&type=chunk) - Total liabilities at period-end were **RMB 5.255 billion**, and total owners' equity was **RMB 9.330 billion**[158](index=158&type=chunk) [Consolidated Income Statement](index=49&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) For the first half of 2025, the company's consolidated total operating revenue was **RMB 6.241 billion**, a **7.66%** year-on-year increase. Net profit attributable to parent company shareholders was **RMB 602 million**, a **34.41%** year-on-year increase - For the first half of 2025, consolidated total operating revenue was **RMB 6.241 billion**, a **7.66% year-on-year increase**[160](index=160&type=chunk) - Net profit attributable to parent company shareholders was **RMB 601.73 million**, a **34.41% year-on-year increase**[160](index=160&type=chunk) - Operating profit was **RMB 761.83 million**, and total profit was **RMB 755.10 million**[160](index=160&type=chunk) [Parent Company Income Statement](index=51&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) For the first half of 2025, the parent company's operating revenue was **RMB 3.363 billion**, a **14.37%** year-on-year increase. Net profit was **RMB 314 million**, a **120.55%** year-on-year increase - For the first half of 2025, parent company operating revenue was **RMB 3.363 billion**, a **14.37% year-on-year increase**[163](index=163&type=chunk) - Parent company net profit was **RMB 313.89 million**, a **120.55% year-on-year increase**[164](index=164&type=chunk) [Consolidated Cash Flow Statement](index=52&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 the first half of 2025, the company's net cash flow from operating activities was **RMB 971 million**, a **19.30%** year-on-year decrease. Cash outflow from investing activities significantly increased, resulting in net cash flow from investing activities of **RMB -1.465 billion** - Net cash flow from operating activities was **RMB 971.34 million**, a **19.30% year-on-year decrease**[166](index=166&type=chunk) - Net cash flow from investing activities was **RMB -1.465 billion**, primarily due to increased cash paid for debt investments[166](index=166&type=chunk) - Net cash flow from financing activities was **RMB -343.35 million**, primarily due to increased cash paid for dividend distribution and increased cash paid for bill deposits[166](index=166&type=chunk) [Parent Company Cash Flow Statement](index=53&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 the first half of 2025, the parent company's net cash flow from operating activities was **RMB 1.295 billion**, a **163.95%** year-on-year increase. Net cash flow from investing activities was **RMB -823 million**, primarily due to increased cash paid for investments - Net cash flow from operating activities was **RMB 1.295 billion**, a **163.95% year-on-year increase**[167](index=167&type=chunk) - Net cash flow from investing activities was **RMB -823.34 million**, primarily due to increased cash paid for investments[168](index=168&type=chunk) - Net cash flow from financing activities was **RMB -280.18 million**, primarily due to increased cash paid for dividend distribution and increased cash paid for bill deposits[168](index=168&type=chunk) [Consolidated Statement of Changes in Owners' Equity](index=55&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 the first half of 2025, the company's consolidated total owners' equity was **RMB 9.720 billion**, an increase of **3.13%** from the beginning of the period. Key changes included an increase in net profit, a decrease in share capital (due to stock option exercises and repurchase cancellations), a decrease in capital reserve, a decrease in other comprehensive income, and adjustments to surplus reserve and undistributed profits - Total consolidated owners' equity at period-end was **RMB 9.720 billion**, an increase of **RMB 295 million** from the beginning of the period[172](index=172&type=chunk) - Net profit attributable to parent company owners for the current period was **RMB 602 million**, with other comprehensive income decreasing by **RMB 48.6524 million**[170](index=170&type=chunk) - Share capital changed due to an increase from stock option exercises and a decrease from repurchase cancellations, while capital reserve changed due to share-based payments and cancellation of treasury shares[170](index=170&type=chunk) [Parent Company Statement of Changes in Owners' Equity](index=59&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 the first half of 2025, the parent company's total owners' equity was **RMB 9.330 billion**, a slight decrease from the beginning of the period. Key changes included an increase in net profit, a decrease in share capital, a decrease in capital reserve, an increase in other comprehensive income, and adjustments to surplus reserve and undistributed profits - Total parent company owners' equity at period-end was **RMB 9.330 billion**, a decrease of **RMB 1.6573 million** from the beginning of the period[182](index=182&type=chunk) - Net profit for the current period was **RMB 314 million**, with other comprehensive income increasing by **RMB 0.3345 million**[181](index=181&type=chunk) - Share capital changed due to an increase from stock option exercises and a decrease from repurchase cancellations, while capital reserve changed due to share-based payments and cancellation of treasury shares[181](index=181&type=chunk) [III. Company Basic Information](index=63&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 was established in 2000 with a registered capital of **RMB 2.4418 billion**, primarily engaged in electrical machinery and equipment manufacturing, comprising two major business segments: BHM and EVBG. Lu Chuping is the controlling shareholder. As of the end of the reporting period, the company's consolidated scope included **69 subsidiaries**, with **4 new establishments** and **3 deregistrations/liquidations** during the period - The company was established on October 23, 2000, with its registered address at No. 1 Guangfeng Industrial Avenue, Xiqu, Zhongshan City, etc.; the controlling shareholder and legal representative is Lu Chuping[186](index=186&type=chunk) - As of June 30, 2025, the company's cumulative share capital was **RMB 2.441810132 billion**[186](index=186&type=chunk) - The company belongs to the electrical machinery and equipment manufacturing industry, having formed two major business segments: the BHM business unit, primarily focusing on building ventilation and home appliance motor products, and the Vehicle Business Group (EVBG), primarily focusing on key automotive components[186](index=186&type=chunk) - As of June 30, 2025, the company's consolidated scope included a total of **69 subsidiaries**, with **4 new establishments**, **2 deregistrations**, and **1 liquidation** during the current period[187](index=187&type=chunk)[189](index=189&type=chunk) [IV. Basis of Financial Statement Preparation](index=65&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) These financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards, their application guidelines, interpretations, and other relevant regulations, truly and completely reflecting the company's financial position, operating results, and cash flows - These financial statements are prepared on a going concern basis, in accordance with relevant provisions of enterprise accounting standards, based on actual transactions[190](index=190&type=chunk) - The Group has the ability to continue as a going concern for at least 12 months from the end of the reporting period, with no significant matters affecting its going concern ability[191](index=191&type=chunk) [V. Significant Accounting Policies and Accounting Estimates](index=65&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 significant accounting policies and estimates followed in preparing the financial statements, including recognition and measurement of financial instruments, impairment provisions for receivables, inventory valuation, fixed asset depreciation, intangible asset amortization, share-based payments, revenue recognition, government grants, deferred income tax, and leases, ensuring accuracy and comparability of financial information - The company's financial assets are classified as those measured at amortized cost, those measured at fair value with changes recognized in other comprehensive income, and those measured at fair value with changes recognized in profit or loss for the current period[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk) - The company applies the simplified model for expected credit losses to accounts receivable, always measuring loss provisions at an amount equal to the expected credit losses over the entire lifetime[215](index=215&type=chunk)[224](index=224&type=chunk)[226](index=226&type=chunk) - The company's revenue recognition princ

[Current Period Performance Forecast](index=1&type=section&id=%E4%B8%80%E3%80%81%E6%9C%AC%E6%9C%9F%E4%B8%9A%E7%BB%A9%E9%A2%84%E8%AE%A1%E6%83%85%E5%86%B5) [Performance Forecast from Year Start to End of Reporting Period](index=1&type=section&id=(1)%202025%20%E5%B9%B4%E5%B9%B4%E5%88%9D%E8%87%B3%E6%9C%AC%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%EF%BC%881%20%E6%9C%88%201%20%E6%97%A5%E8%87%B3%209%20%E6%9C%88%2030%20%E6%97%A5%EF%BC%89%E4%B8%9A%E7%BB%A9%E9%A2%84%E8%AE%A1%E6%83%85%E5%86%B5) The company forecasts a 20% to 25% year-on-year increase in net profit attributable to shareholders and a 13.28% to 21.95% increase in non-recurring net profit for January 1 to September 30, 2025 2025 Year-to-Date Performance Forecast (January 1 to September 30) | Metric | Year-to-Date 2025 (Forecast) | Year-to-Date 2024 (Prior Period) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Shareholders (billion RMB) | 10.89 – 11.34 | 9.07 | 20% – 25% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) (billion RMB) | 9.20 – 9.90 | 8.12 | 13.28% – 21.95% | | Basic Earnings Per Share (RMB/share) | 1.50 – 1.57 | 1.26 | - | [Third Quarter Performance Forecast](index=1&type=section&id=(2)%202025%20%E5%B9%B4%E7%AC%AC%E4%B8%89%E5%AD%A3%E5%BA%A6%EF%BC%887%20%E6%9C%88%201%20%E6%97%A5%E8%87%B3%209%20%E6%9C%88%2030%20%E6%97%A5%EF%BC%89%E4%B8%9A%E7%BB%A9%E9%A2%84%E8%AE%A1%E6%83%85%E5%86%B5) The company anticipates a 15.41% to 27.74% year-on-year growth in net profit attributable to shareholders and a 13.86% to 36.15% growth in non-recurring net profit for Q3 2025 2025 Third Quarter Performance Forecast (July 1 to September 30) | Metric | Q3 2025 (Forecast) | Q3 2024 (Prior Period) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Shareholders (billion RMB) | 4.25 – 4.70 | 3.68 | 15.41% – 27.74% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) (billion RMB) | 3.60 – 4.30 | 3.16 | 13.86% – 36.15% | | Basic Earnings Per Share (RMB/share) | 0.58 – 0.65 | 0.51 | - | [Communication with Accounting Firm](index=2&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%8E%E4%BC%9A%E8%AE%A1%E5%B8%88%E4%BA%8B%E5%8A%A1%E6%89%80%E6%B2%9F%E9%80%9A%E6%83%85%E5%86%B5) [Communication Outcome](index=2&type=section&id=%E6%B2%9F%E9%80%9A%E7%BB%93%E6%9E%9C) The company has preliminarily communicated with its annual audit accounting firm regarding the performance forecast, with no discrepancies on financial data, though the forecast remains unaudited - The financial data in this performance forecast has not been audited by a certified public accountant[5](index=5&type=chunk) - The company has conducted preliminary communication with its annual audit accounting firm regarding the performance forecast, and there are no discrepancies between the parties[5](index=5&type=chunk) [Explanation of Performance Changes](index=2&type=section&id=%E4%B8%89%E3%80%81%E4%B8%9A%E7%BB%A9%E5%8F%98%E5%8A%A8%E5%8E%9F%E5%9B%A0%E8%AF%B4%E6%98%8E) [Core Driving Factors and Strategic Layout](index=2&type=section&id=%E6%A0%B8%E5%BF%83%E9%A9%B1%E5%8A%A8%E5%9B%A0%E7%B4%A0%E4%B8%8E%E6%88%98%E7%95%A5%E5%B8%83%E5%B1%80) The company's performance growth is driven by strong technological foundation and global presence, demonstrating resilience in a complex economic environment, with future strategies focused on innovation, internal growth, external expansion, smart manufacturing, and core technology - Leveraging its profound technological accumulation and global strategic layout, the company continues to demonstrate strong development resilience in navigating complex global economic environments and supply chain restructuring challenges[6](index=6&type=chunk) - The company will adhere to an innovation-driven development philosophy, strengthening organic growth and actively pursuing external expansion, fully leveraging its global manufacturing advantages with 105 production bases across 29 countries[6](index=6&type=chunk) - The company will be driven by "smart manufacturing upgrades" and "underlying technology innovation" to comprehensively enhance operational efficiency and cost control capabilities across the entire industry chain[6](index=6&type=chunk) - The company will accelerate its diversified business strategic layout, continuously increasing R&D investment and market penetration in cutting-edge fields such as AI intelligent terminals, optoelectronic high-speed interconnect products, and automotive intelligent electronic appliances, to continuously enhance its core competitiveness[6](index=6&type=chunk) [Other Relevant Information](index=2&type=section&id=%E5%9B%9B%E3%80%81%E5%85%B6%E4%BB%96%E7%9B%B8%E5%85%B3%E8%AF%B4%E6%98%8E) [Risk Warning and Final Report](index=2&type=section&id=%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA%E4%B8%8E%E6%9C%80%E7%BB%88%E6%8A%A5%E5%91%8A) This performance forecast is a preliminary estimate by the company's finance department, with final financial data subject to the official Q3 2025 Report, urging investors to exercise caution - This performance forecast represents preliminary estimates by the company's finance department, and the definitive financial data will be based on the company's disclosed "2025 Third Quarter Report"[7](index=7&type=chunk) - Investors are advised to make prudent decisions and be aware of investment risks[7](index=7&type=chunk)