Important Notes, Table of Contents, and Definitions [Important Notes](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's management guarantees the authenticity and completeness of the report and has approved a semi-annual profit distribution plan - The Board of Directors, Supervisory Committee, and senior management guarantee the truthfulness, accuracy, and completeness of the report and assume legal responsibility[4](index=4&type=chunk) - Forward-looking statements in the report do not constitute profit forecasts and are subject to uncertainties, so investors should be aware of the risks[5](index=5&type=chunk) Profit Distribution Plan | Item | Details | | :--- | :--- | | Distribution Base | 1,039,516,992 shares | | Cash Dividend per 10 Shares | 1.5 Yuan (tax inclusive) | | Bonus Shares per 10 Shares | 0 shares (tax inclusive) | | Capitalization of Capital Reserve | No capitalization | [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) This section lists the nine main chapters of the report and their corresponding page numbers, providing navigation for investors - The report comprises nine main sections, covering important notes, company profile, MD&A, governance, significant events, share changes, bonds, financial reports, and other data[7](index=7&type=chunk) [List of Documents for Inspection](index=4&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6%E7%9B%AE%E5%BD%95) This section specifies the types and storage location of the company's inspection documents during the reporting period - Documents available for inspection include signed financial statements, original public disclosures, and the original semi-annual report signed by the Chairman[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) - All inspection documents are complete and stored at the Investment Securities Department at the company's headquarters[12](index=12&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section provides definitions for commonly used terms in the report to ensure clear understanding of the content - "The Company" or "Dongguan Holding" refers to Dongguan Development (Holdings) Co, Ltd[13](index=13&type=chunk) - Key subsidiaries (e.g, JinXin Capital, DongNeng Company, Rongtong Leasing, Hongtong Factoring) and associate companies (e.g, Humen Bridge Company, Dongguan Securities) are defined[13](index=13&type=chunk) - The start and end points and lengths of major expressway sections (e.g, Guanshen Expressway, Longlin Expressway, Huichang Expressway Dongguan Section) are explained[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) This section presents the company's basic identification information, including stock ticker, listing exchange, and legal representative Company Basic Information | Item | Details | | :--- | :--- | | Stock Ticker | Dongguan Holding | | Stock Code | 000828 | | Listing Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | 东莞发展控股股份有限公司 | | Legal Representative | Wang Chong'en | [Contacts and Contact Methods](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) This section provides contact details for the company's Board Secretary and Securities Affairs Representative for investor communication Board Secretary and Securities Affairs Representative Contact Information | Position | Name | Contact Address | Telephone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Lin Yongsen | 38/F, Rail Transit Building, Nancheng Street, Dongguan, Guangdong | 0769-88999292 | 0769-88999292 | lys@dgholdings.cn | | Securities Affairs Representative | Zhou Xiaomin | 38/F, Rail Transit Building, Nancheng Street, Dongguan, Guangdong | 0769-88999292 | 0769-88999292 | zxm@dgholdings.cn | [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) This section states that the company's contact information, disclosure channels, and document storage locations remained unchanged during the reporting period - The company's registered address, office address, website, and email address remained unchanged during the reporting period[17](index=17&type=chunk) - Information disclosure websites, media names, and report storage locations remained unchanged during the reporting period[18](index=18&type=chunk) [Key Accounting Data and Financial Indicators](index=6&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) The company's semi-annual financial data shows decreased revenue but significant growth in net profits and a substantial turnaround in operating cash flow Key Accounting Data and Financial Indicators (H1 2025 vs Prior Year Period/End) | Indicator | Current Period/End (Yuan) | Prior Year Period/End (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 765,647,980.25 | 837,423,242.33 | -8.57% | | Net Profit Attributable to Shareholders | 532,409,012.90 | 441,794,650.99 | 20.51% | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) | 528,652,008.67 | 317,964,893.04 | 66.26% | | Net Cash Flow from Operating Activities | 931,196,200.85 | -400,097,300.88 | 332.74% | | Basic Earnings Per Share (Yuan/share) | 0.5122 | 0.4149 | 23.45% | | Diluted Earnings Per Share (Yuan/share) | 0.5122 | 0.4149 | 23.45% | | Weighted Average Return on Equity | 5.33% | 4.54% | 0.79% | | Total Assets | 16,128,106,498.58 | 17,369,370,373.16 | -7.15% | | Net Assets Attributable to Shareholders | 10,028,369,755.99 | 9,836,596,276.60 | 1.95% | [Differences in Accounting Data under Domestic and Foreign 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 reports no discrepancies in net profit or net assets between Chinese accounting standards and international or foreign accounting standards - There were no differences in net profit or net assets under domestic and foreign accounting standards during the reporting period[21](index=21&type=chunk)[22](index=22&type=chunk) [Non-recurring Profit and Loss Items 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) This section lists non-recurring profit and loss items for the period, totaling RMB 3,757,004.23 Non-recurring Profit and Loss Items and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 931,172.76 | | Government Grants Recognized in Current Profit/Loss (excluding those closely related to normal business operations) | 4,945,576.36 | | Fair Value Gains/Losses from Financial Assets/Liabilities Held by Non-financial Enterprises | -1,219,348.08 | | Other Non-operating Income and Expenses | 2,603,765.48 | | Less: Income Tax Impact | 1,277,314.53 | | Minority Interest Impact (after tax) | 2,226,847.76 | | **Total** | **3,757,004.23** | - The company did not reclassify any non-recurring profit and loss items as recurring[25](index=25&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's core businesses span expressway operations, EV charging services, and financial investments, with varied performance across segments - The company's core businesses focus on **expressway operation management**, **new energy vehicle charging services**, and **financial investment**[27](index=27&type=chunk) H1 2025 Key Financial and Business Data | Indicator | Amount (hundred million Yuan) | YoY Change | Key Reason | | :--- | :--- | :--- | :--- | | Operating Revenue | 7.66 | -8.57% | Decrease in the scale of quasi-financial business | | Net Profit Attributable to Parent | 5.32 | +20.51% | Reversal of bad debt provision for Dongguan Trust equity disposal proceeds | | Total Assets | 161.28 | -7.15% | Reduction in loan scale | | Net Assets Attributable to Parent | 100.28 | +1.95% | - | Operating Revenue Composition | Business Type | Revenue Share | | :--- | :--- | | Expressway Toll Fees | 81.86% | | Finance Leasing and Commercial Factoring | 10.60% | | New Energy Vehicle Charging | 5.45% | [Expressway Operation and Management](index=9&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E9%AB%98%E9%80%9F%E5%85%AC%E8%B7%AF%E7%BB%8F%E8%90%A5%E7%AE%A1%E7%90%86) The company operates two expressways and is undertaking a major reconstruction and expansion project to extend their operational life - The company operates the Guanshen and Longlin Expressways, totaling **55.66 km**, with toll rights until June 30, 2027[29](index=29&type=chunk) - The Guanshen Expressway reconstruction project has commenced, with a cumulative investment of **RMB 3.536 billion**, and is expected to be completed by December 2028[29](index=29&type=chunk) Guanshen Expressway H1 2025 Operational Data | Indicator | H1 2025 | YoY Change | | :--- | :--- | :--- | | Mixed Traffic Volume | 60.0858 million vehicles | -0.26% | | Toll Revenue | 627 million Yuan | -0.37% | [New Energy Vehicle Charging Business](index=9&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E6%96%B0%E8%83%BD%E6%BA%90%E6%B1%BD%E8%BD%A6%E5%85%85%E6%8D%A2%E7%94%B5%E4%B8%9A%E5%8A%A1) The EV charging business is expanding its network with a focus on supercharging stations, though it remains in a development phase with narrowing losses - As of the end of June, the company operated **148 charging stations** with over **540,000 users**[31](index=31&type=chunk) - **40 supercharging stations** have been deployed in key districts like Nancheng, Dongcheng, and Houjie[31](index=31&type=chunk) - The new energy vehicle charging business recorded a net loss of **RMB 15.0387 million**, a **9.93% reduction** year-on-year[31](index=31&type=chunk) [Financial Investment Business](index=9&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E9%87%91%E8%9E%8D%E6%8A%95%E8%B5%84%E4%B8%9A%E5%8A%A1) The financial investment segment includes leasing, factoring, and investment management, showing positive profit contributions and strategic equity increases - Finance leasing and commercial factoring services are provided by subsidiaries Rongtong Leasing and Hongtong Factoring[32](index=32&type=chunk) Finance Leasing and Commercial Factoring Financial Data (H1 2025) | Company Name | Operating Revenue (ten thousand Yuan) | Net Profit (ten thousand Yuan) | | :--- | :--- | :--- | | Rongtong Leasing | 1,045.30 | 823.97 | | Hongtong Factoring | 7,128.50 | 1,829.02 | - The investment management business recognized **RMB 111 million** in investment income from associates and joint ventures, a **26.22% increase** year-on-year[33](index=33&type=chunk) - The company completed the acquisition of a **7.1% stake in Dongguan Securities**, increasing its shareholding to **27.1%**[33](index=33&type=chunk) [Core Competitiveness Analysis](index=10&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's core strengths lie in its prime expressway assets and the strong resource support from its controlling shareholder - The company holds the concession for the Guanshen Expressway, a key transportation artery in the Guangdong-Hong Kong-Macao Greater Bay Area[34](index=34&type=chunk) - The ongoing reconstruction and expansion of the Guanshen Expressway aims to enhance capacity and extend the asset's operating life[34](index=34&type=chunk) - The controlling shareholder, Dongguan Communications Investment, is an **AAA-rated state-owned enterprise**, providing strong financial and resource advantages[35](index=35&type=chunk) [Main Business Analysis](index=10&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 main business saw a revenue decline due to the quasi-financial segment, while cash flow improved significantly and certain expenses decreased Key Financial Data YoY Changes (H1 2025 vs H1 2024) | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | YoY Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 765,647,980.25 | 837,423,242.33 | -8.57% | Decrease in revenue from the quasi-financial business due to reduced scale | | Operating Costs | 237,839,252.45 | 273,034,584.50 | -12.89% | Decrease in financing costs corresponding to the reduced scale of the quasi-financial business | | Finance Expenses | -11,355,982.19 | 36,055,286.36 | -131.50% | Decrease in interest expense and increase in interest income | | Net Cash Flow from Operating Activities | 931,196,200.85 | -400,097,300.88 | 332.74% | Decrease in net investment in quasi-financial projects | | Net Cash Flow from Investing Activities | -450,835,527.77 | 3,720,934,652.28 | -112.12% | Prior period included proceeds from capital reduction of Dongguan Rail Transit Line 1 Co | | Net Cash Flow from Financing Activities | -1,978,748,900.38 | -1,046,301,763.78 | -89.12% | Reduction in borrowing scale | | Investment Income | 112,969,196.02 | 296,882,833.60 | -61.95% | Prior period included investment income from the exit of Dongguan Rail Transit Line 1 Co | | Credit Impairment Loss | 63,453,818.04 | -173,730,186.64 | 136.52% | Reversal of bad debt provision upon collection of Dongguan Trust disposal proceeds | Operating Revenue Composition (by Industry/Product/Region) | Category | Item | Current Period Amount (Yuan) | % of Operating Revenue | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | **By Industry** | Transportation Support Services | 626,726,171.39 | 81.86% | -0.37% | | | Finance Leasing | 9,844,702.25 | 1.29% | -71.52% | | | Commercial Factoring | 71,284,985.65 | 9.31% | -40.66% | | | New Energy Vehicle Charging | 41,722,958.85 | 5.45% | 10.86% | | **By Region** | Guangdong Province | 755,025,254.71 | 98.61% | -7.60% | Performance of Segments Accounting for Over 10% of Revenue or Profit | Category | Item | Operating Revenue (Yuan) | Gross Margin (%) | Revenue YoY Change (%) | Gross Margin YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | Transportation Support Services | 626,726,171.39 | 75.58% | -0.37% | 1.53% | | **By Product** | Toll Fee Income | 626,726,171.39 | 75.58% | -0.37% | 1.53% | | **By Region** | Guangdong Province | 755,025,254.71 | 69.31% | -7.60% | 1.37% | [Non-core Business Analysis](index=11&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 business activities include sustainable investment income and a non-sustainable reversal of credit impairment loss Non-core Business Items and Sustainability | Item | Amount (Yuan) | % of Total Profit | Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 112,969,196.02 | 16.87% | Primarily long-term equity investment income under the equity method | Yes | | Fair Value Change Gains/Losses | -1,219,348.08 | -0.18% | Fair value changes of trading financial assets | Yes | | Non-operating Income | 2,638,440.21 | 0.39% | Primarily compensation for expressway asset claims and other default penalties | Yes | | Other Income | 5,152,294.46 | 0.77% | Primarily government grants | Yes | | Credit Impairment Loss | 63,453,818.04 | 9.47% | Reversal of bad debt provision upon collection of equity disposal proceeds | No | [Analysis of Assets and Liabilities](index=12&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 decreased due to loan scale reduction, while long-term equity investments and construction in progress increased significantly Significant Changes in Asset Composition (Period-end vs Year-end) | Item | Period-end Amount (Yuan) | % of Total Assets | Year-end Amount (Yuan) | % of Total Assets | Change in Share (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,774,831,453.68 | 17.20% | 4,372,780,182.62 | 25.18% | -7.98% | Decrease in borrowing scale and increase in investment expenditure | | Long-term Equity Investments | 3,766,268,443.12 | 23.35% | 2,951,685,170.86 | 16.99% | 6.36% | Acquisition of Dongguan Securities equity | | Construction in Progress | 2,871,048,543.28 | 17.80% | 2,245,055,892.74 | 12.93% | 4.87% | Increased investment in the Guanshen Expressway reconstruction project | | Short-term Borrowings | 271,361,182.42 | 1.68% | 1,667,149,438.24 | 9.60% | -7.92% | Reduction in short-term borrowing scale | | Other Receivables | 71,180,238.50 | 0.44% | 968,889,904.01 | 5.58% | -5.14% | Collection of equity disposal proceeds | Major Overseas Assets | Asset Description | Asset Scale (Yuan) | Location | Income (Yuan) | % of Company's Net Assets | | :--- | :--- | :--- | :--- | :--- | | Rongtong Investment | 102,048,614.50 | Hong Kong | 549,474.09 | 1.02% | Assets and Liabilities Measured at Fair Value (Period-end) | Item | Period-end Amount (Yuan) | | :--- | :--- | | Trading Financial Assets | 49,451,338.80 | | Other Equity Instrument Investments | 28,033,888.74 | | Other Non-current Financial Assets | 45,795,000.00 | | **Total** | **123,280,227.54** | - Restricted assets primarily consist of factoring receivables and charging service receivables pledged for financing[51](index=51&type=chunk) [Investment Status Analysis](index=13&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) Investment amount surged due to the acquisition of a 7.1% stake in Dongguan Securities, while the expressway expansion project continued as planned Investment Amount During the Reporting Period | Indicator | Investment Amount (Yuan) | Prior Year Investment Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Investment | 811,522,741.00 | 36,255,000.00 | 2,138.37% | - The increase in investment was mainly for the acquisition of a **7.1% stake in Dongguan Securities** for **RMB 806 million**[52](index=52&type=chunk) Major Equity Investments | Investee Company | Investment Amount (Yuan) | Shareholding Ratio (Post-transaction) | Source of Funds | | :--- | :--- | :--- | :--- | | Dongguan Securities | 806,472,741.00 | 27.10% | Own funds | Major Non-equity Investments (Guanshen Expressway Reconstruction Project) | Project Name | Investment in Current Period (Yuan) | Cumulative Investment to Date (Yuan) | Project Progress (%) | | :--- | :--- | :--- | :--- | | Guanshen Expressway (incl. Longlin) Reconstruction Project | 863,057,243.14 | 3,536,037,567.58 | 20.11% | Securities Investments (Trading Financial Assets) | Security Name | Opening Book Value (Yuan) | Fair Value Change in Current Period (Yuan) | Closing Book Value (Yuan) | | :--- | :--- | :--- | :--- | | Hongchuan Smart | 50,670,686.88 | -1,219,348.08 | 49,451,338.80 | [Disposal of Significant Assets and Equity](index=15&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 sell any significant assets or equity stakes during the reporting period - No significant assets were sold during the reporting period[64](index=64&type=chunk) - No significant equity stakes were sold during the reporting period[65](index=65&type=chunk) [Analysis of Major Subsidiaries and Investees](index=15&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) Subsidiaries in leasing and factoring saw revenue declines, with Hongtong Factoring's profit impacted by a significant impairment charge in the prior year Financials of Major Subsidiaries and Investees (Unaudited) | Company Name | Type | Registered Capital | Operating Revenue (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Rongtong Leasing | Wholly-owned Subsidiary | USD165,000,000 | 10,453,048.03 | 8,239,735.15 | | Hongtong Factoring | Holding Subsidiary | RMB1,000,000,000 | 71,284,985.65 | 18,290,204.23 | | Dongguan Securities | Associate Company | RMB1,500,000,000 | 1,441,545,786.06 | 498,577,689.38 | - The revenue decline at Rongtong Leasing and Hongtong Factoring was mainly due to a reduction in business scale[67](index=67&type=chunk) - Hongtong Factoring's large profit variance was due to a **RMB 109 million impairment** on a factoring business in H1 2024, which resulted in a net loss in that period[67](index=67&type=chunk) [Structured Entities Controlled by the Company](index=16&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[68](index=68&type=chunk) [Risks and Countermeasures](index=16&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 faces risks from toll policies, concession expiration, and credit risks in its financial services, with countermeasures in place - The expressway business faces risks from **toll policy changes** and **concession expiration**, which the company is addressing by applying to extend the toll period through reconstruction projects[68](index=68&type=chunk) - The finance leasing and commercial factoring businesses face **intense market competition** and **asset quality risks** from macroeconomic impacts[68](index=68&type=chunk) - The company mitigates financial business risks through **strict business compliance**, **credit risk control**, and a **classified project tracking mechanism**[68](index=68&type=chunk) [Market Value Management System and Value Enhancement Plan](index=16&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 established a market value management system or disclosed a value enhancement plan - The company has not formulated a market value management system[69](index=69&type=chunk) - The company has not disclosed a value enhancement plan[69](index=69&type=chunk) [Implementation of the "Dual Improvement in Quality and Returns" Action Plan](index=16&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 has disclosed its "Dual Improvement in Quality and Returns" action plan on the designated information disclosure website - The company disclosed its "Action Plan for Dual Improvement in Quality and Returns" on February 11, 2025[69](index=69&type=chunk) Corporate Governance, Environment, and Society [Changes in Directors, Supervisors, and Senior Management](index=17&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%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) Two senior management members, the Chief Engineer and a Vice President, resigned due to work reassignments during the period Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Chen Wen | Chief Engineer | Resignation | 2025-01-15 | Work reassignment | | Ye Zilong | Vice President | Resignation | 2025-06-24 | Work reassignment | [Profit Distribution and Capitalization of Capital Reserve](index=17&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 proposes a cash dividend of RMB 1.5 per 10 shares for H1 2025, with no bonus shares or capitalization of reserves Profit Distribution Plan Details | Indicator | Details | | :--- | :--- | | Bonus Shares per 10 Shares | 0 shares | | Cash Dividend per 10 Shares (tax inclusive) | 1.5 Yuan | | Shares from Capital Reserve per 10 Shares | 0 shares | | Share Base for Distribution Plan | 1,039,516,992.00 shares | | Cash Dividend Amount (tax inclusive) | 155,927,548.80 Yuan | | Parent Company's Distributable Profit | 5,987,017,667.89 Yuan | - The cash dividend accounts for **100%** of the total profit distribution[72](index=72&type=chunk) [Implementation of Equity Incentive Plans or Other Employee Incentives](index=17&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 had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[73](index=73&type=chunk) [Environmental Information Disclosure](index=17&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 main subsidiaries are not listed as enterprises required to disclose environmental information by law - The company and its main subsidiaries are not included in the list of enterprises required to disclose environmental information by law[74](index=74&type=chunk) [Social Responsibility](index=17&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 social responsibilities through employee care, community feedback, and various public welfare projects - Internally, the company invested over **RMB 670,000** in employee care and assistance programs[74](index=74&type=chunk) - Externally, the company supports rural revitalization through **donations, targeted procurement, and public welfare collaborations**[74](index=74&type=chunk)[75](index=75&type=chunk) - The company launched distinctive public welfare projects such as "Escorting the College Entrance Exam" and "Helping the Homeless Return Home"[75](index=75&type=chunk) Significant Events [Fulfillment of Commitments](index=19&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) There were no commitments that were fulfilled or overdue by the company's related parties during the reporting period - There were no overdue unfulfilled commitments during the reporting period[77](index=77&type=chunk) [Non-operating Fund Occupation by Controlling Shareholders and Other Affiliates](index=19&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 was no non-operating fund occupation by the controlling shareholder or other related parties during the reporting period - The company reports no non-operating fund occupation by its controlling shareholder or other related parties during the reporting period[78](index=78&type=chunk) [Irregular External Guarantees](index=19&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[79](index=79&type=chunk) [Appointment and Dismissal of Accounting Firm](index=19&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 has not been audited - The company's semi-annual financial report is unaudited[80](index=80&type=chunk) [Explanation on "Non-standard Audit Report" by the Board and Supervisory Committee](index=19&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%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) There was no non-standard audit report during the reporting period - The company did not receive a non-standard audit report during the reporting period[81](index=81&type=chunk) [Board's Explanation on "Non-standard Audit Report" from the Previous Year](index=19&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) There was no non-standard audit report in the previous year - The company did not receive a non-standard audit report in the previous year[81](index=81&type=chunk) [Bankruptcy and Reorganization Matters](index=19&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 was not involved in any bankruptcy or reorganization matters during the reporting period - No bankruptcy or reorganization matters occurred during the reporting period[81](index=81&type=chunk) [Litigation Matters](index=19&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 major litigation, but its subsidiary is involved in several lawsuits related to its finance leasing business - The company had no major litigation or arbitration matters during the reporting period[82](index=82&type=chunk) - As of the period-end, the total amount involved in various cases for the company and its subsidiaries was **RMB 96.8 million**, primarily related to finance leasing lawsuits initiated by Rongtong Leasing[82](index=82&type=chunk) [Penalties and Rectifications](index=20&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 was not subject to any penalties or rectifications during the reporting period - No penalties or rectifications occurred during the reporting period[83](index=83&type=chunk) [Integrity of the Company, its Controlling Shareholder, and Actual Controller](index=20&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) There were no integrity issues concerning the company, its controlling shareholder, or its actual controller during the reporting period - No integrity issues were reported for the company or its controlling parties during the period[84](index=84&type=chunk) [Major Related-Party Transactions](index=20&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 had no major operational related-party transactions but did transfer a large-value certificate of deposit to a related party - No major related-party transactions related to daily operations, asset acquisitions, or joint investments occurred during the reporting period[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) - There were no related-party creditor's rights, debt dealings, or transactions with related financial companies[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - The company transferred a **RMB 200 million** large-value certificate of deposit to the related party Dongguan Road & Bridge Investment Construction Co, Ltd[90](index=90&type=chunk) [Major Contracts and Their Performance](index=21&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 several ongoing major financing and factoring contracts, while no major custody, contracting, or leasing matters occurred - The company had no major custody, contracting, leasing, guarantee, or wealth management matters during the reporting period[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) Other Major Contracts | Contracting Party | Contract Subject | Contract Amount (Approved Credit Line) | Performance Status as of Period-end | | :--- | :--- | :--- | :--- | | Rongtong Leasing | Finance leasing services (water supply facilities) | 1,600,000 thousand Yuan | Contract amount signed is RMB 1.552 billion, with RMB 1.168 billion fulfilled. The outstanding lease principal is RMB 568 million, and the project is proceeding normally. | | Hongtong Factoring | Commercial factoring financing (Jiaotou Real Estate receivables) | 1,860,000 thousand Yuan | Contract amount signed is RMB 1.86 billion, with RMB 1.065 billion fulfilled. The outstanding factoring principal is RMB 1.065 billion, and the project is proceeding normally. | | Hongtong Factoring | Commercial factoring financing (Ruiying Hotel receivables) | 1,200,000 thousand Yuan | Contract amount signed is RMB 1.2 billion, with RMB 794 million fulfilled. The outstanding factoring principal is RMB 762 million. Due to project default, Hongtong Factoring has made an impairment provision. | [Other Significant Matters](index=22&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) There were no other significant matters to report for the period - The company has no other significant matters to disclose for the reporting period[100](index=100&type=chunk) [Significant Matters of Subsidiaries](index=22&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) A subsidiary's commercial factoring business with a client has defaulted, leading to a pre-reorganization application to the court - A commercial factoring business between subsidiary Hongtong Factoring and Dongguan Ruiying Hotel Investment Co, Ltd has defaulted[100](index=100&type=chunk) - Hongtong Factoring has applied to the court for the pre-reorganization of Ruiying Company, and the court has appointed an administrator to proceed[100](index=100&type=chunk) Share Capital Changes and Shareholder Information [Changes in Share Capital](index=23&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) The company's total share capital remained unchanged during the reporting period, with nearly all shares being unrestricted Share Capital Structure (Period-end) | Share Type | Quantity (shares) | Percentage (%) | | :--- | :--- | :--- | | I. Restricted Shares | 1,350 | 0.00% | | Of which: Domestic individual holdings | 1,350 | 0.00% | | II. Unrestricted Shares | 1,039,515,642 | 100.00% | | Of which: RMB ordinary shares | 1,039,515,642 | 100.00% | | **III. Total Shares** | **1,039,516,992** | **100.00%** | - Information regarding reasons for share changes, approvals, transfers, and share repurchases is not applicable for the reporting period[103](index=103&type=chunk) [Securities Issuance and Listing](index=24&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 did not issue or list any new securities during the reporting period - No securities were issued or listed by the company during the reporting period[104](index=104&type=chunk) [Number of Shareholders and Shareholdings](index=24&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) The company had 27,699 ordinary shareholders at the end of the period, with the top three shareholders being related parties acting in concert - The total number of ordinary shareholders was **27,699** at the end of the reporting period[105](index=105&type=chunk) Top 10 Shareholders (Excerpt) | Shareholder Name | Shareholder Type | Shareholding Ratio (%) | Shares Held at Period-end (shares) | | :--- | :--- | :--- | :--- | | Dongguan Communications Investment Holding Group Co, Ltd | State-owned legal person | 41.81% | 434,671,714.00 | | Fumin Development Co, Ltd | State-owned legal person | 25.00% | 259,879,247.00 | | Dongguan Fumin Group Company | State-owned legal person | 3.01% | 31,291,633.00 | | Hong Kong Securities Clearing Company Ltd | Foreign legal person | 1.13% | 11,766,165.00 | - Dongguan Communications Investment Holding Group, Dongguan Fumin Group, and Fumin Development are related parties and act in concert[105](index=105&type=chunk) - Some individual shareholders hold company shares through margin trading and securities lending accounts[106](index=106&type=chunk) [Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=25&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) There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period - The shareholdings of directors, supervisors, and senior management did not change during the reporting period[108](index=108&type=chunk) [Changes in Controlling Shareholder or Actual Controller](index=26&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 did not change during the reporting period[109](index=109&type=chunk) - The company's actual controller did not change during the reporting period[109](index=109&type=chunk) [Preference Shares Information](index=26&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 has no preference shares - The company had no preference shares during the reporting period[110](index=110&type=chunk) Bond-related Information The company has no bond-related matters to report for the period - The company had no bond-related matters during the reporting period[112](index=112&type=chunk) Financial Report [Audit Report](index=28&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 has not been audited - The company's semi-annual financial report is unaudited[114](index=114&type=chunk) [Financial Statements](index=28&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's consolidated and parent company financial statements for the first half of 2025 - This section provides the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity[115](index=115&type=chunk)[118](index=118&type=chunk)[122](index=122&type=chunk)[126](index=126&type=chunk)[129](index=129&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk)[145](index=145&type=chunk) [Consolidated Balance Sheet](index=28&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 decreased by 7.15% to RMB 16.13 billion, with notable shifts in asset and liability composition Consolidated Balance Sheet Key Data (Period-end vs Beginning of Period) | Item | Closing Balance (Yuan) | Opening Balance (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 16,128,106,498.58 | 17,369,370,373.16 | -7.15% | | Cash and Cash Equivalents | 2,774,831,453.68 | 4,372,780,182.62 | -36.54% | | Other Receivables | 71,180,238.50 | 968,889,904.01 | -92.65% | | Long-term Equity Investments | 3,766,268,443.12 | 2,951,685,170.86 | +27.59% | | Construction in Progress | 2,871,048,543.28 | 2,245,055,892.74 | +27.89% | | Short-term Borrowings | 271,361,182.42 | 1,667,149,438.24 | -83.73% | | Total Liabilities | 5,985,790,498.29 | 7,409,105,250.22 | -19.21% | | Total Equity | 10,142,316,000.29 | 9,960,265,122.94 | +1.83% | [Parent Company Balance Sheet](index=30&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) The parent company's total assets decreased by 6.80% to RMB 13.54 billion, driven by reductions in cash and short-term borrowings Parent Company Balance Sheet Key Data (Period-end vs Beginning of Period) | Item | Closing Balance (Yuan) | Opening Balance (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 13,534,972,904.36 | 14,522,054,746.23 | -6.80% | | Cash and Cash Equivalents | 2,591,790,325.30 | 4,201,872,238.54 | -38.32% | | Other Receivables | 343,370,227.84 | 1,336,282,835.89 | -74.39% | | Long-term Equity Investments | 5,704,409,433.87 | 4,827,755,808.36 | +18.16% | | Construction in Progress | 2,871,010,313.19 | 2,244,780,165.85 | +27.89% | | Short-term Borrowings | 50,031,527.78 | 1,314,036,669.45 | -96.19% | | Total Liabilities | 4,056,081,776.34 | 5,212,715,299.15 | -22.19% | | Total Equity | 9,478,891,128.02 | 9,309,339,447.08 | +1.82% | [Consolidated Income Statement](index=32&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) For H1 2025, net profit attributable to parent company shareholders grew 20.51% to RMB 532 million despite an 8.57% decline in revenue Consolidated Income Statement Key Data (H1 2025 vs H1 2024) | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 765,647,980.25 | 837,423,242.33 | -8.57% | | Total Operating Costs | 279,798,377.04 | 368,174,964.79 | -24.00% | | Finance Expenses | -11,355,982.19 | 36,055,286.36 | -131.50% | | Operating Profit | 667,150,449.63 | 566,603,909.79 | +17.75% | | Net Profit Attributable to Parent Shareholders | 532,409,012.90 | 441,794,650.99 | +20.51% | | Minority Interest Income/Loss | -9,232,602.04 | -12,161,624.68 | +24.08% | | Basic Earnings Per Share (Yuan/share) | 0.5122 | 0.4149 | +23.45% | [Parent Company Income Statement](index=34&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) The parent company's net profit increased by 7.78% to RMB 510 million in H1 2025, with revenue remaining stable Parent Company Income Statement Key Data (H1 2025 vs H1 2024) | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 640,381,007.55 | 641,066,706.92 | -0.11% | | Finance Expenses | -22,122,854.14 | 45,431,072.88 | -148.69% | | Credit Impairment Loss | 62,437,960.90 | -61,856,444.84 | +201.09% | | Net Profit | 510,187,214.45 | 473,375,455.40 | +7.78% | | Basic Earnings Per Share (Yuan/share) | 0.4908 | 0.4452 | +10.24% | [Consolidated Cash Flow Statement](index=35&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) Operating cash flow saw a significant positive turnaround to RMB 931 million, while investing and financing activities resulted in net outflows Consolidated Cash Flow Statement Key Data (H1 2025 vs H1 2024) | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 931,196,200.85 | -400,097,300.88 | +332.74% | | Net Cash Flow from Investing Activities | -450,835,527.77 | 3,720,934,652.28 | -112.12% | | Net Cash Flow from Financing Activities | -1,978,748,900.38 | -1,046,301,763.78 | -89.12% | | Net Increase in Cash and Cash Equivalents | -1,498,388,801.96 | 2,274,536,760.18 | -165.88% | [Parent Company Cash Flow Statement](index=36&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) The parent company's operating cash flow increased by 65.67%, while net cash outflows from investing and financing activities were substantial Parent Company Cash Flow Statement Key Data (H1 2025 vs H1 2024) | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 564,929,994.50 | 340,999,730.39 | +65.67% | | Net Cash Flow from Investing Activities | -380,544,434.19 | 4,089,598,083.36 | -109.30% | | Net Cash Flow from Financing Activities | -1,694,467,546.57 | -1,605,671,598.15 | -5.53% | | Net Increase in Cash and Cash Equivalents | -1,510,081,986.26 | 2,824,926,215.60 | -153.46% | [Consolidated Statement of Changes in Equity](index=37&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) Total equity attributable to parent company shareholders increased by RMB 192 million, driven by net profit growth offset by dividend payments Consolidated Statement of Changes in Equity (H1 2025) | Item | Equity Attributable to Parent Shareholders (Yuan) | Minority Interest (Yuan) | Total Equity (Yuan) | | :--- | :--- | :--- | :--- | | Opening Balance | 9,836,596,276.60 | 123,668,846.34 | 9,960,265,122.94 | | Net Change for the Period | 191,773,479.39 | -9,722,602.04 | 182,050,877.35 | | Closing Balance | 10,028,369,755.99 | 113,946,244.30 | 10,142,316,000.29 | - Total comprehensive income for the period was **RMB 520 million**, with **RMB 529 million** attributable to parent company shareholders[136](index=136&type=chunk) - The company distributed cash dividends totaling **RMB 338 million** to all shareholders during the period[136](index=136&type=chunk) [Parent Company Statement of Changes in Equity](index=41&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) The parent company's total equity increased by RMB 170 million, reflecting the impact of net profit and dividend distributions Parent Company Statement of Changes in Equity (H1 2025) | Item | Total Equity (Yuan) | | :--- | :--- | | Opening Balance | 9,309,339,447.08 | | Net Change for the Period | 169,551,680.94 | | Closing Balance | 9,478,891,128.02 | - Total comprehensive income for the period was **RMB 507 million**[146](index=146&type=chunk) - The company distributed cash dividends totaling **RMB 338 million** to all shareholders during the period[146](index=146&type=chunk) [Company Basic Information](index=44&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) This section outlines the company's history, capital structure, and controlling entities, tracing its transformation into an expressway operator - The company, formerly Guangdong Fodi Technology Co, Ltd, transitioned from CRT manufacturing to expressway operations via a major asset swap in 2003[152](index=152&type=chunk) - The registered capital is **1,039,516,992 shares** following the non-tradable share reform[153](index=153&type=chunk) - The company's registered and head office address is in Dongguan, Guangdong Province[153](index=153&type=chunk) - The parent company is Dongguan Communications Investment Holding Group Co, Ltd, and the ultimate controller is the Dongguan State-owned Assets Supervision and Administration Commission[153](index=153&type=chunk) [Business Nature and Main Operating Activities](index=44&type=section&id=2%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%9A%E5%8A%A1%E6%80%A7%E8%B4%A8%E5%92%8C%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%B4%BB%E5%8A%A8) The company operates in transportation support, finance leasing, commercial factoring, and new energy vehicle charging industries - The company's business sectors include transportation support, finance leasing, commercial factoring, and new energy vehicle charging[154](index=154&type=chunk) - Main activities include investment, construction, and operation of expressways; finance leasing; commercial factoring; and new energy vehicle charging services[154](index=154&type=chunk) [Approval and Issuance of Financial Statements](index=44&type=section&id=3%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E6%89%B9%E5%87%86%E6%8A%A5%E5%87%BA) The financial statements and their notes were approved for issuance by the Board of Directors on August 25, 2025 - The financial statements and notes were approved for issuance by the Board of Directors on August 25, 2025[155](index=155&type=chunk) [Basis of Preparation for Financial Statements](index=44&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 in accordance with PRC Accounting Standards for Business Enterprises and relevant CSRC disclosure rules - The financial statements are prepared in accordance with PRC Accounting Standards and CSRC information disclosure rules[156](index=156&type=chunk) - The statements are based on the going concern assumption, using the accrual basis of accounting and historical cost measurement[156](index=156&type=chunk) [Significant Accounting Policies and Estimates](index=45&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 key accounting policies and estimates applied in preparing the financial statements across various financial reporting areas - The financial statements are declared to comply with PRC Accounting Standards, providing a true and fair view of the company's financial position[158](index=158&type=chunk) - The accounting period is the calendar year, the operating cycle is 12 months, and the functional currency is RMB[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) - Accounting treatments for business combinations under common and non-common control are detailed[163](index=163&type=chunk)[165](index=165&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) - The methodology for preparing consolidated financial statements, including the criteria for determining control, is explained[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk) - Policies for financial instrument recognition, classification, measurement, and impairment, including the expected credit loss model, are defined[184](index=184&type=chunk)[188](index=188&type=chunk)[194](index=194&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk) - Methods for recognition, measurement, depreciation/amortization, and impairment testing of fixed assets, intangible assets, and construction in progress are specified[237](index=237&type=chunk)[239](index=239&type=chunk)[244](index=244&type=chunk)[252](index=252&type=chunk)[256](index=256&type=chunk) - Revenue recognition principles are detailed for vehicle tolls, finance leasing, factoring, operating leases, and EV charging fees[274](index=274&type=chunk)[282](index=282&type=chunk)[283](index=283&type=chunk)[285](index=285&type=chunk)[286](index=286&type=chunk)[288](index=288&type=chunk) - The recognition, measurement, and accounting treatment of government grants are described[289](index=289&type=chunk)[290](index=290&type=chunk)[291](index=291&type=chunk) - Accounting treatments for leases, including identification and methods for lessees and lessors, are detailed[297](index=297&type=chunk)[298](index=298&type=chunk)[309](index=309&type=chunk)[313](index=313&type=chunk)[314](index=314&type=chunk) - There were no significant changes in accounting policies or estimates during the reporting period[315](index=315&type=chunk)[316](index=316&type=chunk) [Taxes](index=65&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) This section discloses the company's main taxes and rates, including various tax incentives for which it and its subsidiaries are eligible Main Taxes and Tax Rates | Tax Type | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 3%, 5%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | 7%, 5% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Corporate Income Tax | 25%, 20%, 16.5%, 15% | Corporate Income Tax Rates for Different Entities | Taxpayer Name | Income Tax Rate | | :--- | :--- | | The Company | 25% | | Rongtong Investment Co, Ltd | 16.5% | | Dongguan Kangyi Innovation Energy Technology Co, Ltd | 15% | | Small and micro enterprises like Dongguan Huitong Car Rental Co, Ltd | 20% | - Guangdong Rongtong Finance Leasing Co, Ltd enjoys a VAT refund for the portion of its tax burden exceeding 3%[319](index=319&type=chunk) - Dongguan Kangyi Innovation Energy Technology Co, Ltd is eligible for a reduced **15% corporate income tax rate** as a high-tech enterprise[320](index=320&type=chunk) - Certain subsidiaries qualify as small and micro enterprises, benefiting from a reduced corporate income tax rate of **20%** on 25% of their taxable income[322](index=322&type=chunk) - Rongtong Investment Co, Ltd is subject to the Hong Kong corporate profits tax rate of **16.5%**[323](index=323&type=chunk) [Notes to Consolidated Financial Statements](index=67&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 the main items of the consolidated financial statements, offering further breakdowns and explanations - Cash and cash equivalents at period-end were **RMB 2.775 billion**, with restricted cash of RMB 3.1168 million[325](index=325&type=chunk) - Accounts receivable at period-end were **RMB 36.47 million**, with a bad debt provision of RMB 2.3284 million[330](index=330&type=chunk) - Other receivables at period-end were **RMB 71.18 million**, a significant decrease due to the collection of equity disposal proceeds[337](index=337&type=chunk)[349](index=349&type=chunk) - Long-term equity investments at period-end were **RMB 3.766 billion**, an increase due to the acquisition of Dongguan Securities equity[377](index=377&type=chunk) - The carrying amounts of fixed assets and construction in progress at period-end were **RMB 816 million** and **RMB 2.871 billion**, respectively[385](index=385&type=chunk)[392](index=392&type=chunk) - Short-term borrowings at period-end were **RMB 271 million**, a significant decrease from the beginning of the year[423](index=423&type=chunk) - Long-term borrowings at period-end were **RMB 4.056 billion**[453](index=453&type=chunk) - Operating revenue was **RMB 766 million**, and operating cost was **RMB 238 million**[477](index=477&type=chunk) - Finance expenses were **-RMB 11.356 million**, a significant decrease from the prior period[485](index=485&type=chunk) - Credit impairment loss was **RMB 63.4538 million**, a significant positive reversal from the prior period[492](index=492&type=chunk) - Net cash flow from operating activities was **RMB 931 million**[516](index=516&type=chunk) [Research and Development Expenses](index=97&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) All R&D expenses during the period were expensed, totaling RMB 2.21 million, primarily from the subsidiary Kangyi Innovation R&D Expenditure | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | | :--- | :--- | :--- | | R&D expenses of Kangyi Innovation | 2,210,915.53 | 2,216,930.55 | | Of which: Expensed R&D | 2,210,915.53 | 2,216,930.55 | - The company has no R&D projects eligible for capitalization and no significant externally acquired ongoing R&D projects[532](index=532&type=chunk) [Changes in Consolidation Scope](index=97&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) The consolidation scope changed due to the establishment of a new subsidiary, with no other types of business combinations or disposals - The establishment of Huizhou Kangyi Innovation Energy Technology Co, Ltd led to a change in the consolidation scope[532](index=532&type=chunk) - There were no business combinations under non-common or common control, reverse acquisitions, or disposals of subsidiaries[532](index=532&type=chunk) [Interests in Other Entities](index=97&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 its subsidiaries, joint ventures, and associate companies, including key financial information - The company has several holding subsidiaries in commercial factoring, finance leasing, expressway management, and EV charging[533](index=533&type=chunk) - Control over certain subsidiaries is achieved through concert party agreements or articles of association[535](index=535&type=chunk) Significant Non-wholly Owned Subsidiary (Tianjin Hongtong Commercial Factoring Co, Ltd) | Subsidiary Name | Minority Interest Ratio | Net Profit/Loss Attributable to Minority Interest (Yuan) | Minority Interest Balance at Period-end (Yuan) | | :--- | :--- | :--- | :--- | | Tianjin Hongtong Commercial Factoring Co, Ltd | 2.50% | 457,255.11 | 32,577,354.97 | - The company's significant joint venture is Guangdong Humen Bridge Co, Ltd, and significant associates include Dongguan Securities Co, Ltd[543](index=543&type=chunk) - The company holds an **11.11% stake** in Guangdong Humen Bridge Co, Ltd but exercises significant influence through board representation and accounts for it using the equity method[544](index=544&type=chunk) [Government Grants](index=102&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) The company recognized RMB 4.95 million in government grants in the current period, with a remaining deferred income balance of RMB 37.32 million Liabilities Related to Government Grants (Deferred Income) | Account | Opening Balance (Yuan) | New Grants (Yuan) | Recognized in Other Income (Yuan) | Closing Balance (Yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 41,544,965.53 | 48,000.00 | 4,272,346.11 | 37,320,619.42 | Asset-related | Government Grants Recognized in Current Profit/Loss | Item | Current Period Amount (Yuan) | | :--- | :--- | | Charging pile construction subsidies | 3,161,376.36 | | Guanshen Expressway Shangtun Interchange project grant | 784,200.00 | | Tianjin municipal government subsidy | 1,000,000.00 | | **Total** | **4,945,576.36** | [Risks Related to Financial Instruments](index=103&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 credit, liquidity, and market risks through systematic policies, including credit assessment and maintaining sufficient cash reserves - The company's main financial instruments include cash, receivables, and borrowings[556](index=556&type=chunk) - The company faces **credit risk, liquidity risk, and market risk**, which are managed through established risk management policies[556](index=556&type=chunk) - **Credit risk** is controlled by assessing customer creditworthiness, monitoring credit records, and purchasing credit guarantee insurance[558](index=558&type=chunk) - **Liquidity risk** is managed by maintaining sufficient cash and cash equivalents and securing backup credit facilities[559](index=559&type=chunk) - **Market risk**, primarily interest rate risk, is closely monitored, though no interest rate hedging policies are currently in place[561](index=561&type=chunk)[562](index=562&type=chunk) Interest-bearing Financial Instruments (Period-end vs Year-end) | Item | Period-end (ten thousand Yuan) | Year-end (ten thousand Yuan) | | :--- | :--- | :--- | | Short-term Borrowings | 27,123.46 | 166,578.00 | | Long-term Borrowings | 492,044.59 | 500,788.66 | | **Total** | **519,168.05** | **667,366.66** | [Fair Value Disclosure](index=105&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) The company's assets measured at fair value total RMB 123 million, categorized into Level 1 and Level 3 of the fair value hierarchy Fair Value of Assets and Liabilities at Period-end | Item | Level 1 Fair Value (Yuan) | Level 3 Fair Value (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | | Equity Instrument Investments | 49,451,338.80 | - | 49,451,338.80 | | Other Equity Instrument Investments | - | 28,033,888.74 | 28,033,888.74 | | Other Non-current Financial Assets | - | 45,795,000.00 | 45,795,000.00 | | **Total Assets Continuously Measured at Fair Value** | **49,451,338.80** | **73,828,888.74** | **123,280,227.54** | - Level 1 fair value items are determined based on quoted prices in active markets[566](index=566&type=chunk) - Level 3 fair value items are estimated based on their investment cost[567](index=567&type=chunk) [Related Parties and Related-Party Transactions](index=106&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 related parties and transactions, with the controlling shareholder committed to maintaining corporate independence - The parent company is Dongguan Communications Investment Holding Group, and the ultimate controller is the Dongguan SASAC[568](index=568&type=chunk)[569](index=569&type=chunk) - The company engages in related-party transactions for services such as expressway maintenance, IT system operation, and site leasing[574](index=574&type=chunk)[575](index=575&type=chunk)[576](index=576&type=chunk) - The controlling shareholder has committed to ensuring the company's independence, standardizing related-party transactions, and avoiding competition[589](index=589&type=chunk)[590](index=590&type=chunk)[592](index=592&type=chunk)[593](index=593&type=chunk) Related-Party Receivables (Excerpt) | Item | Related Party | Closing Balance (Yuan) | Opening Balance (Yuan) | | :--- | :--- | :--- | :--- | | Accounts Receivable | Dongguan Bus Co, Ltd East Branch | 5,374,894.31 | 5,129,774.81 | | Other Receivables | Dongguan Road & Bridge Investment Construction Co, Ltd | 8,121.00 | 999,366,721.00 | | Long-term Receivables | Dongguan Binhaiwan Public Transport Co, Ltd | 133,178,063.94 | 157,911,690.51 | Related-Party Payables (Excerpt) | Item | Related Party | Closing Balance (Yuan) | Opening Balance (Yuan) | | :--- | :--- | :--- | :--- | | Accounts Payable | Dongguan Guangye New Energy Technology Co, Ltd | 2,714,571.39 | - | | Other Payables | Dongguan Jingwei Highway Engineering Co, Ltd | 8,599,188.52 | 11,371,726.69 | | Dividends Payable | Fumin Development Co, Ltd | - | 38,981,887.05 | [Share-based Payment](index=113&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98) The company had no share-based payment arrangements during the reporting period - The company had no share-based payment matters during the reporting period[596](index=596&type=chunk) [Commitments and Contingencies](index=113&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) The company has committed to a minimum annual cash dividend for the next three years and has no significant contingencies - The company has committed to an annual cumulative cash dividend of no less than **RMB 0.475 per share** for the three years from 2025 to 2027[596](index=596&type=chunk) - The company had no significant contingencies at the end of the reporting period[597](index=597&type=chunk) [Post-Balance Sheet Events](index=113&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E6%97%A5%E5%90%8E%E4%BA%8B%E9%A1%B9) Subsequent to the reporting period, the company has proposed a profit distribution plan of RMB 1.5 per 10 shares Profit Distribution (Proposed) | Indicator | Details | | :--- |

[Part I Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Part%20I%20Important%20Notice%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section covers the report's foundational elements, including key assurances, structural overview, and essential terminology [Important Notice](index=2&type=section&id=Important%20Notice) The Board, Supervisory Board, and senior management guarantee the semi-annual report's truthfulness, accuracy, and completeness - Company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content, bearing individual and joint legal responsibility[4](index=4&type=chunk) - Company head Xia Lurong, chief accountant Luo Guilin, and accounting manager Fang Hailong declare the financial report in this semi-annual report is true, accurate, and complete[4](index=4&type=chunk) - Company plans no cash dividends, no bonus shares, and no capital reserve conversion to share capital[6](index=6&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This section outlines the report's nine main chapters, from company overview to financial data and reference documents - Report contains nine main chapters, from important notice to other submitted data, comprehensively covering company operations and financial information[8](index=8&type=chunk) - Reference documents include the chairman-signed report, financial reports signed by legal representative, original copies of publicly disclosed documents, available for investor review at the company's securities department[10](index=10&type=chunk)[11](index=11&type=chunk) [Definitions](index=5&type=section&id=Definitions) This section defines key terms used in the report, ensuring clarity for financial periods, company names, and subsidiaries - Reporting period refers to **January 1, 2025 to June 30, 2025**, and the prior year period refers to **January 1, 2024 to June 30, 2024**[12](index=12&type=chunk) - Mingke Jingji, the Company, and this Company all refer to Mingke Jingji Holdings Co., Ltd[12](index=12&type=chunk) - Lists names of multiple subsidiaries including Qingyuan Mingke, Wuhan Mingke, Suzhou Shengan, Dalian Maosheng, Chongqing Mingke, Shanghai Shengan, Xiangyang Mingke, Dongguan Zhusheng, Shanghai Qishuo, Guangdong Zengtian Shengan, Zhejiang Shengan, Zhejiang Granges, Suqian Mingke, Anhui Ruike, Mingke Jingji (Hong Kong), Maosheng Industrial (Hong Kong), Shengan Precision (Hong Kong), Zhutian Shengan (Hong Kong), Zhutian Shengan (Thailand)[12](index=12&type=chunk) [Part II Company Profile and Key Financial Indicators](index=7&type=section&id=Part%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company's basic information and highlights its key financial performance metrics [1. Company Profile](index=7&type=section&id=1.%20Company%20Profile) Mingke Jingji Holdings Co., Ltd. is listed on Shenzhen Stock Exchange (001319), with Xia Lurong as legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Mingke Jingji | | Stock Code | 001319 | | Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | 铭科精技控股股份有限公司 | | Legal Representative | Xia Lurong | [2. Contact Persons and Information](index=7&type=section&id=2.%20Contact%20Persons%20and%20Information) Company's Board Secretary and Securities Affairs Representative are Cai Lingli and Zhang Yao, located in Dongguan Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Cai Lingli | No. 180 Tianxin Road, Tangxia Town, Dongguan City | 0769-38899778-8888 | 0769-38899778-8828 | ll_cai@winstechfield.com | | Securities Affairs Representative | Zhang Yao | No. 180 Tianxin Road, Tangxia Town, Dongguan City | 0769-38899778-8888 | 0769-38899778-8828 | winstech_19@winstechfield.com | [3. Other Information](index=7&type=section&id=3.%20Other%20Information) No changes occurred in company contact, disclosure, or other relevant information during the reporting period - Company's registered address, office address, website, email, and other contact information remained unchanged during the reporting period[18](index=18&type=chunk) - Company's designated securities exchange website and media for semi-annual report disclosure, and the location for report availability, remained unchanged during the reporting period[19](index=19&type=chunk) [4. Key Accounting Data and Financial Indicators](index=8&type=section&id=4.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2025, revenue grew **13.05%** to **514.17 million yuan**, with net profit attributable to shareholders up **25.56%** Key Accounting Data and Financial Indicators (Current Period vs. Prior Year Period) | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 514,169,020.44 | 454,813,878.34 | 13.05% | | Net Profit Attributable to Shareholders of Listed Company | 56,751,864.29 | 45,198,876.01 | 25.56% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains and Losses) | 54,271,121.58 | 39,742,137.39 | 36.56% | | Net Cash Flow from Operating Activities | 59,697,140.16 | 11,974,650.88 | 398.53% | | Basic Earnings Per Share (Yuan/share) | 0.4014 | 0.3197 | 25.56% | | Diluted Earnings Per Share (Yuan/share) | 0.4014 | 0.3197 | 25.56% | | Weighted Average Return on Net Assets | 4.28% | 3.60% | 0.68% | | Total Assets (Period-end) | 1,705,016,063.95 | 1,699,644,667.61 | 0.32% | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 1,297,825,138.94 | 1,298,351,496.54 | -0.04% | [5. Differences in Accounting Data Under Domestic and International Accounting Standards](index=8&type=section&id=5.%20Differences%20in%20Accounting%20Data%20Under%20Domestic%20and%20International%20Accounting%20Standards) The company reported no differences in net profit and net assets between domestic and international accounting standards - Company had 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) - Company had 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) [6. Non-recurring Gains and Losses and Amounts](index=8&type=section&id=6.%20Non-recurring%20Gains%20and%20Losses%20and%20Amounts) Total non-recurring gains and losses were **2.48 million yuan**, mainly from government subsidies and fair value changes Non-recurring Gains and Losses and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -154,780.40 | | Government subsidies recognized in current profit or loss | 943,354.03 | | Gains and losses from changes in fair value of financial assets and liabilities and disposal gains and losses | 1,862,371.66 | | Other non-operating income and expenses apart from the above | 235,419.47 | | Other gains and losses meeting the definition of non-recurring gains and losses | 107,086.84 | | Less: Income tax impact | 435,494.61 | | Minority interest impact (after tax) | 77,214.28 | | Total | 2,480,742.71 | - Other gains and losses meeting the definition of non-recurring gains and losses primarily refer to refunds for withholding individual income tax handling fees, amounting to **107,086.84 yuan**[26](index=26&type=chunk) [Part III Management Discussion and Analysis](index=10&type=section&id=Part%20III%20Management%20Discussion%20and%20Analysis) This section analyzes the company's main business, core competencies, financial performance, and risks during the period [1. Company's Main Business During the Reporting Period](index=10&type=section&id=1.%20Company%27s%20Main%20Business%20During%20the%20Reporting%20Period) The company specializes in metal structural parts and molds for automotive, 3C, energy storage, and robotics [(I) Industry Development During the Reporting Period](index=10&type=section&id=(I)%20Industry%20Development%20During%20the%20Reporting%20Period) China's new energy vehicle market grew significantly in H1 2025, driven by product innovation and infrastructure policies China New Energy Vehicle Production and Sales Data (2020-H1 2025) | Year | New Energy Passenger Vehicle Sales (10,000 units) | YoY Growth | Market Penetration (%) | | :--- | :--- | :--- | :--- | | 2020 | 120.37 | – | 5.8 | | 2021 | 332.27 | +176.0% | 13.4 | | 2022 | 688.7 | +107.3% | 27.6 | | 2023 | 958.7 | +39.2% | 31.6 | | 2024 | 1286.6 | +34.2% | 36.7 | | 2025年1-6月 | 693.7 | +40.3% | 44.3 | - In the first half of 2025, China's new energy vehicle exports reached **1.06 million units**, a **75.2% year-on-year increase**, accounting for over **34% of total automobile exports**, with overseas markets becoming a significant growth driver[31](index=31&type=chunk) - Power battery raw material prices fell to a low of **75,000 yuan/ton** in Q4 2024, then rebounded to **108,000 yuan/ton** by April 2025; total power battery installed capacity reached **178.6 GWh** in H1, a **31.5% year-on-year increase**, with average single-vehicle battery cost decreasing by **4.7%** year-on-year[34](index=34&type=chunk) - Intelligence has become a core competitive dimension for new energy vehicles, with urban NOA function adoption reaching **18.6%** in H1 2025, a **7 percentage point increase** from H1 2023; average in-vehicle computing power of mainstream car manufacturers reached **508 TOPS**, significantly higher than the international average of approximately **320 TOPS**[35](index=35&type=chunk) - Policy guidance shifted from "price stimulation" to "quality regulation," with central "trade-in" policies driving new energy vehicle sales over **800,000 units**, stimulating direct consumption exceeding **180 billion yuan**; many local governments fully withdrew purchase financial subsidies, instead supporting infrastructure and regulatory system construction[36](index=36&type=chunk) [(II) Company's Main Business During the Reporting Period](index=12&type=section&id=(II)%20Company%27s%20Main%20Business%20During%20the%20Reporting%20Period) The company specializes in metal stamping molds and precision metal structural parts for automotive, 3C, energy storage, and robotics - Company's main business includes metal stamping molds and precision metal structural parts stamping, welding, and assembly, serving automotive manufacturing, 3C electronics, energy storage (lithium, hydrogen), and robotics[36](index=36&type=chunk) - Company products primarily focus on automotive parts, covering multiple core systems such as chassis, dashboard, seating, exhaust, and power battery systems[37](index=37&type=chunk) - Company is one of the few in the industry to master full-chain services including mold process design, stamping, welding assembly, and delivery, all with mass production capabilities[37](index=37&type=chunk)[38](index=38&type=chunk) - Company operates multiple manufacturing bases domestically, fully covering China's six major automotive industry clusters, and has established a production base in Thailand[39](index=39&type=chunk)[40](index=40&type=chunk) - Company's main products are non-standard customized products, adopting an "order-to-production, quality-first" operating strategy; automotive parts projects typically have a cycle of **10-16 months** from mold order to final product delivery, and a **3-5 year** cycle from project designation to upgrade; during the reporting period, the company had sufficient orders and maintained high capacity utilization[41](index=41&type=chunk) [2. Company's Business Model](index=13&type=section&id=2.%20Company%27s%20Business%20Model) The company employs a two-tier procurement, OEM sales, and demand-driven production model with strict quality control - Procurement model adopts a two-tier decentralized management system (headquarters and subsidiaries), divided into market procurement (company independently selects suppliers) and customer-designated procurement (OEM-specified suppliers)[43](index=43&type=chunk) - Sales model is OEM factory-based, involving bidding, quoting, and contract signing based on OEM's new vehicle development plans to provide products to customers[44](index=44&type=chunk) - Production model involves scheduling based on customer production volumes, analyzing capacity, and arranging production; quality department conducts spot checks or full inspections to ensure product quality[45](index=45&type=chunk) [2. Analysis of Core Competencies](index=14&type=section&id=2.%20Analysis%20of%20Core%20Competencies) The company leverages its digital R&D platform, global layout, strong brand, stable team, and full-chain capabilities [1. Technological Advantage Supported by Product Forming Process Design and Digital Mold R&D Platform](index=14&type=section&id=1.%20Technological%20Advantage%20Supported%20by%20Product%20Forming%20Process%20Design%20and%20Digital%20Mold%20R%26D%20Platform) The company's digital mold R&D platform, integrating CAD 3D, CAE, and databases, enhances design quality and reduces costs - Company established a product design and digital mold R&D platform centered on CAD 3D design system, CAE simulation analysis system, databases, and precision testing laboratories[46](index=46&type=chunk) - This platform accurately predicts material deformation limits, structural stability, and stamping springback in metal structural parts process design, and independently developed the WinstechTool auxiliary development platform for modular product design, automatic drawing breakdown, and cost estimation[46](index=46&type=chunk)[47](index=47&type=chunk) - Company has formed a rich system of standard parts/modules/typical mold structures and a material performance parameter database, significantly improving mold design quality, shortening delivery cycles, and reducing design and manufacturing costs[47](index=47&type=chunk) [2. Rational Strategic Layout and Service Support Advantage](index=15&type=section&id=2.%20Rational%20Strategic%20Layout%20and%20Service%20Support%20Advantage) The company's extensive domestic and international production bases ensure timely customer response and cost efficiency - Company proactively promoted the layout and construction of production bases, having built facilities in 8 cities including Dongguan, Guangzhou, Chongqing, Wuhan, Xiangyang, Dalian, Shanghai, and Suzhou[49](index=49&type=chunk) - In recent years, the company rapidly added new energy industrial bases in 4 cities, including Qingyuan, Jiaxing, Suqian, and Anqing, ultimately achieving comprehensive capacity coverage across China's six major automotive industry clusters[49](index=49&type=chunk) - To expand into overseas markets, the company also established a production base in Thailand, enabling timely response to customer needs and reducing transportation costs, thereby enhancing customer order acquisition capabilities[49](index=49&type=chunk) [3. Brand and Customer Resource Advantage](index=15&type=section&id=3.%20Brand%20and%20Customer%20Resource%20Advantage) The company's R&D and quality commitment earned recognition from global Tier-1 suppliers and major automotive brands - Company gained recognition from globally renowned Tier-1 automotive parts suppliers including Marelli, Gestamp, Hiroshima Technical, Faurecia, Adient, and Lingyun Industrial[50](index=50&type=chunk) - Company provides precision automotive stamping molds and automotive parts to brands such as Xpeng, Seres, Chery, BYD, Nissan, FAW Group, Great Wall, BMW, Mercedes-Benz, Audi, Honda, Toyota, and General Motors[50](index=50&type=chunk) - Company was recognized by the China Die & Mould Industry Association as a "Key Backbone Enterprise for China's Automotive Parts Stamping Molds" and a "Key Enterprise for Mold Exports 2024-2027"[51](index=51&type=chunk) [4. Stable and Focused Management Team Advantage](index=16&type=section&id=4.%20Stable%20and%20Focused%20Management%20Team%20Advantage) The company benefits from a stable, experienced management and technical team, supported by talent and equity incentives - Company's management and core technical teams have remained stable since its establishment, focusing on automotive body manufacturing technology and equipment industry[52](index=52&type=chunk) - Company has established a relatively complete talent pipeline, building

[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) This section provides essential preliminary information, including the board's responsibility statement, a detailed table of contents, and definitions of key terms used throughout the report [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, assuming legal responsibility - The company's Board of Directors and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions, and assume legal responsibility[3](index=3&type=chunk) - Company head Wang Laichun, chief accountant Wu Tiansong, and head of accounting department Chen Huiyong declare the financial report is true, accurate, and complete[3](index=3&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=%E7%9B%AE%E5%BD%95) The report's table of contents clearly lists nine main chapters and their starting page numbers, covering company profile, financial indicators, MD&A, corporate governance, significant events, share changes, bond information, financial reports, and other submitted data - The report's table of contents includes nine main chapters, such as Company Profile, Management Discussion and Analysis, and Financial Report[6](index=6&type=chunk) [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 financial statements signed by the company head and chief accountant, originals of all publicly disclosed company documents and announcements during the reporting period, and other relevant materials - Reference documents include financial statements signed and sealed by the company head and chief accountant[8](index=8&type=chunk) - Originals of all company documents and announcements publicly disclosed on the website designated by the China Securities Regulatory Commission during the reporting period[9](index=9&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8A%E4%B9%89) This section provides definitions for common terms used in the report, including full and abbreviated names of the company, major subsidiaries, and affiliated companies, ensuring accurate understanding of the report's content - "Company" or "Luxshare Precision" refers to Luxshare Precision Industry Co., Ltd[11](index=11&type=chunk) - Lists full and abbreviated names of multiple subsidiaries and affiliated companies, such as Luxshare Limited, Luxshare-ICT Co., Ltd., etc[11](index=11&type=chunk)[13](index=13&type=chunk) [Part II Company Profile and Key Financial Indicators](index=7&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section outlines the company's fundamental information, contact details, and presents a comprehensive overview of its key accounting data and financial performance indicators [Company Profile](index=7&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Introduces basic information such as the company's stock abbreviation, code, listing exchange, Chinese and English names, and legal representative - Stock Abbreviation: **Luxshare Precision**, Stock Code: **002475**, Listing Exchange: **Shenzhen Stock Exchange**[15](index=15&type=chunk) - Company Legal Representative: **Wang Laichun**[15](index=15&type=chunk) [Contact Persons and Information](index=7&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) Provides detailed contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, fax, and email - Board Secretary: **Xiao Yunxi**, Securities Affairs Representative: **Chen Weihang**[16](index=16&type=chunk) - Contact Number: **0769-87892475**, Email: **Yui.Hsiao@luxshare-ict.com** (Board Secretary)[16](index=16&type=chunk) [Other Information](index=7&type=section&id=%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) No changes in the company's contact information, information disclosure, or document storage locations during the reporting period, referring to the 2024 annual report for details - No changes in the company's registered address, office address, website, or email during the reporting period[17](index=17&type=chunk) - No changes in information disclosure and document storage locations during the reporting period[18](index=18&type=chunk) [Key Accounting Data and Financial Indicators](index=8&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) During the reporting period, the company's operating revenue increased by 20.18% year-on-year, and net profit attributable to shareholders increased by 23.13%, but net cash flow from operating activities decreased by 169.05%. Total assets and net assets attributable to shareholders both increased Key Accounting Data and Financial Indicators | Indicator | This Reporting Period (RMB) | Prior Year Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 124,503,174,115.60 | 103,597,974,358.37 | 20.18% | | Net Profit Attributable to Shareholders | 6,644,272,049.46 | 5,396,162,858.61 | 23.13% | | Net Cash Flow from Operating Activities | -1,657,810,282.39 | 2,400,779,434.55 | -169.05% | | Basic Earnings Per Share | 0.92 | 0.75 | 22.67% | | Total Assets | 244,354,584,895.23 | 223,827,584,433.26 | 9.17% | | Net Assets Attributable to Shareholders | 74,722,987,506.85 | 69,327,010,925.99 | 7.78% | [Differences in Accounting Data Under Domestic and Overseas Accounting Standards](index=8&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) During the reporting period, there were no differences in net profit and net assets between financial reports prepared under International Accounting Standards or overseas accounting standards and Chinese Accounting Standards - No differences in net profit and net assets between financial reports disclosed under International Accounting Standards and Chinese Accounting Standards during the reporting period[21](index=21&type=chunk) - No differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese Accounting Standards during the reporting period[22](index=22&type=chunk) [Non-Recurring Gains and Losses and Amounts](index=8&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) During the reporting period, the company's total non-recurring gains and losses amounted to RMB 1.045 billion, primarily from government subsidies, fair value changes in financial assets, and entrusted investment income, after deducting income tax and minority interest impacts Non-Recurring Gains and Losses and Amounts | Item | Amount (RMB) | | :--- | :--- | | Disposal gains and losses of non-current assets | -4,183,555.74 | | Government subsidies recognized in current profit or loss | 374,721,088.12 | | Gains and losses from changes in fair value of financial assets and liabilities and their disposal | 507,725,961.32 | | Gains and losses from entrusted investment or asset management | 795,612,151.60 | | Other non-operating income and expenses apart from the above | -10,907,054.04 | | Other non-recurring gains and losses as defined | -157,495,638.34 | | Less: Income tax impact | 200,799,631.83 | | Minority interest impact (after tax) | 259,834,771.20 | | Total | 1,044,838,549.89 | - Other non-recurring gains and losses primarily represent investment income recognized from early termination of financial assets[25](index=25&type=chunk) [Part III Management Discussion and Analysis](index=10&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides an in-depth analysis of the company's main business operations, core competencies, financial performance, asset and liability status, investment activities, and significant risks during the reporting period [Main Businesses During the Reporting Period](index=10&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's main businesses remained unchanged, focusing on consumer electronics, communication and data centers, and automotive sectors, leveraging AI-driven opportunities and strengthening vertical integration and smart manufacturing capabilities - The company's main businesses remained unchanged during the reporting period, as detailed in the "2024 Annual Report"[27](index=27&type=chunk) - The AI-centric technological revolution is reshaping the industry landscape, presenting structural development opportunities for high-end manufacturing enterprises[27](index=27&type=chunk) - The company continues to strengthen vertical integration and intelligent manufacturing capabilities, promoting balanced and healthy development across its three major business segments: consumer electronics, communication and data centers, and automotive[27](index=27&type=chunk) [Consumer Electronics Business](index=10&type=section&id=1%E3%80%81%E6%B6%88%E8%B4%B9%E7%94%B5%E5%AD%90%E4%B8%9A%E5%8A%A1) The consumer electronics industry is entering an AI-driven innovation cycle, with the company maintaining stable performance through deep cooperation with core clients, increased investment in new materials and technologies, and expanded collaboration in emerging areas like AR/VR and robotics - The consumer electronics industry is entering a new AI-driven innovation cycle, with accelerated adoption of AI PCs, AI phones, smart acoustics, and smart wearables[28](index=28&type=chunk) - The company continuously increases investment in the integrated development of new materials, technologies, processes, and manufacturing methods, possessing rapid mass production capabilities[28](index=28&type=chunk) - During the reporting period, the company's consumer electronics business performed steadily, successfully introducing multiple new product projects and deepening cooperation in emerging fields such as AR/VR, consumer 3D printing, and robotics[28](index=28&type=chunk) [Communication and Data Center Business](index=10&type=section&id=2%E3%80%81%E9%80%9A%E4%BF%A1%E4%B8%8E%E6%95%B0%E6%8D%AE%E4%B8%AD%E5%BF%83%E4%B8%9A%E5%8A%A1) The explosive growth of AI applications is driving data center upgrades, and the company is capitalizing on AI computing infrastructure opportunities by offering integrated "copper, optical, electrical, and thermal" solutions, with high-speed, high-value-added products already in mass delivery and increasing market share - Artificial intelligence applications' explosive growth drives generational upgrades in global data center construction and network architecture, leading to a surge in AI computing demand[29](index=29&type=chunk) - The company provides integrated "copper, optical, electrical, and thermal" solutions, ranging from high-speed copper cable connections and high-speed backplane connectors to high-speed optical modules, server power supplies, and thermal management systems[29](index=29&type=chunk) - The company's share among global leading cloud service providers and AI server clients continues to increase, with multiple high-speed, high-value-added products already in mass delivery[29](index=29&type=chunk) [Automotive Business](index=10&type=section&id=3%E3%80%81%E6%B1%BD%E8%BD%A6%E4%B8%9A%E5%8A%A1) As the global automotive industry deepens its electrification, intelligence, and connectivity, the company's automotive business focuses on core areas, developing vertical integration capabilities, continuously securing new project nominations from mainstream domestic and international automakers, and becoming a key driver for the company's second growth curve - The global automotive industry's electrification, intelligence, and connectivity processes continue to deepen, with software-defined vehicles driving E/E architecture evolution[30](index=30&type=chunk) - The company's automotive business focuses on core areas such as vehicle "vascular and nervous" systems, intelligent cockpit and driving assistance systems, intelligent chassis systems, and powertrain systems, forming vertical integration capabilities[30](index=30&type=chunk) - During the reporting period, the company's automotive Tier 1 business continued to secure new project nominations from multiple mainstream domestic and international automakers, serving as a key driver for the company's second growth curve[30](index=30&type=chunk) [Analysis of Core Competencies](index=10&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's core competencies remained unchanged during the reporting period, with details available in the 2024 annual report - The company's core competencies remained unchanged during the reporting period, as detailed in the "2024 Annual Report"[31](index=31&type=chunk) [Analysis of Main Business](index=11&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 revenue increased by 20.18% year-on-year, primarily due to business mergers and increased product shipments. Automotive interconnect products and precision components, and communication interconnect products and precision components businesses saw significant growth, while consumer electronics remained the primary revenue source Year-on-Year Changes in Key Financial Data | Indicator | This Reporting Period (RMB) | Prior Year Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 124,503,174,115.60 | 103,597,974,358.37 | 20.18% | Increase due to business mergers and product shipments | | Operating Cost | 110,047,863,704.95 | 91,471,769,355.30 | 20.31% | Increase in shipments | | Selling Expenses | 563,980,503.79 | 438,835,653.56 | 28.52% | Increase in personnel salaries and benefits, and business expansion investments | | Administrative Expenses | 3,155,670,978.40 | 2,583,403,240.37 | 22.15% | Increase in personnel and salaries, office expenses, and material consumption | | Financial Expenses | -160,284,969.21 | -121,089,850.37 | -32.37% | Increase in exchange gains due to exchange rate fluctuations, partially offset by increased interest expenses | | Income Tax Expense | 841,924,446.73 | 399,166,917.03 | 110.92% | Increase in total profit and recognized deferred income tax expense | | R&D Investment | 4,593,537,528.74 | 4,219,509,106.10 | 8.86% | Increase in personnel and salaries, molds, material costs, and certification fees | | Net Cash Flow from Operating Activities | -1,657,810,282.39 | 2,400,779,434.55 | -169.05% | Primarily due to payments to suppliers for due invoices | | Net Cash Flow from Investing Activities | -15,832,056,511.79 | -17,265,928,518.63 | 8.30% | Primarily due to investment in wealth management products | | Net Cash Flow from Financing Activities | 26,161,616,069.88 | 22,533,990,010.87 | 16.10% | Primarily due to increased financing | | Net Increase in Cash and Cash Equivalents | 9,218,027,626.05 | 7,621,484,782.07 | 20.95% | Primarily due to increased financing activities, partially offset by operating expenditures | Operating Revenue Composition (by Industry/Product) | Industry/Product Segment | Amount This Period (RMB) | % of Operating Revenue | Amount Prior Year (RMB) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Computer Interconnect Products and Precision Components | 4,889,404,143.43 | 3.93% | 4,378,729,696.34 | 4.23% | 11.66% | | Automotive Interconnect Products and Precision Components | 8,658,405,441.06 | 6.96% | 4,755,589,128.13 | 4.59% | 82.07% | | Communication Interconnect Products and Precision Components | 11,097,738,351.52 | 8.91% | 7,465,480,875.24 | 7.21% | 48.65% | | Consumer Electronics | 97,798,777,919.92 | 78.55% | 85,547,840,770.73 | 82.57% | 14.32% | | Other Connectors and Other Businesses | 2,058,848,259.67 | 1.65% | 1,450,333,887.93 | 1.40% | 41.96% | - Consumer electronics business remains the company's primary revenue source, accounting for **78.55% of operating revenue**, with a **14.32% year-on-year increase**[34](index=34&type=chunk) - Automotive interconnect products and precision components business grew by **82.07% year-on-year**, and communication interconnect products and precision components business grew by **48.65% year-on-year**[34](index=34&type=chunk) [Analysis of Non-Core Business](index=12&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) During the reporting period, non-core businesses significantly contributed to total profit, with investment income accounting for 37.08%, mainly from financial asset investments and wealth management products. Fair value changes and asset impairment negatively impacted total profit Impact of Non-Core Business on Total Profit | Item | Amount (RMB) | % of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 3,017,958,132.60 | 37.08% | Investment income from financial assets measured at fair value and whose changes are recognized in current profit or loss, wealth management product income, share of profits from associates and joint ventures calculated based on shareholding, and gains from derecognition of financial assets | No | | Fair Value Change Gains/Losses | -641,461,754.44 | -7.88% | Unrealized gains and losses from financial assets measured at fair value and whose changes are recognized in current profit or loss | No | | Asset Impairment | -548,539,056.07 | -6.74% | Inventory write-downs and impairment of fixed assets | No | | Other Income | 420,689,958.43 | 5.17% | Government subsidies | No | [Analysis of Assets and Liabilities](index=12&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) At the end of the reporting period, the company's total assets and net assets attributable to shareholders both increased. Cash and cash equivalents, short-term borrowings, and trading financial assets saw significant increases, while accounts payable and long-term borrowings decreased. Restricted assets primarily relate to deposits, mortgages, and pledged financing - Total assets at the end of the reporting period were **RMB 244.35 billion**, an increase of **9.17%** from the end of the previous year[20](index=20&type=chunk) - Net assets attributable to shareholders were **RMB 74.72 billion**, an increase of **7.78%** from the end of the previous year[20](index=20&type=chunk) [Significant Changes in Asset Composition](index=12&type=section&id=1%E3%80%81%E8%B5%84%E4%BA%A7%E6%9E%84%E6%88%90%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Cash and cash equivalents increased by 2.36% at period-end, mainly due to increased performance ensuring normal payments. Short-term borrowings significantly increased by 7.07% to supplement working capital. Accounts payable decreased by 8.53% due to business seasonality and payments to suppliers for due invoices Significant Changes in Asset Composition | Item | Amount at End of This Period (RMB) | % of Total Assets | Amount at End of Prior Year (RMB) | % of Total Assets | % Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 58,564,722,555.56 | 23.97% | 48,359,655,992.93 | 21.61% | 2.36% | Increased performance ensuring normal payments | | Accounts Receivable | 30,881,042,757.71 | 12.64% | 32,561,098,916.58 | 14.55% | -1.91% | Seasonal fluctuations and collection of due accounts | | Inventories | 34,137,067,620.91 | 13.97% | 31,702,675,549.03 | 14.16% | -0.19% | Increased performance | | Long-term Equity Investments | 8,955,737,250.99 | 3.67% | 7,488,295,934.01 | 3.35% | 0.32% | Primarily due to increased investment income recognized under equity method | | Short-term Borrowings | 55,844,304,206.80 | 22.85% | 35,313,128,924.26 | 15.78% | 7.07% | To supplement working capital needs | | Accounts Payable | 50,223,664,318.79 | 20.55% | 65,087,993,138.64 | 29.08% | -8.53% | Business seasonal fluctuations and payments to suppliers for due invoices | | Non-current Liabilities Due Within One Year | 11,717,003,483.42 | 4.80% | 2,256,471,507.26 | 1.01% | 3.79% | Long-term borrowings and lease liabilities due within one year | | Trading Financial Assets | 4,827,848,697.35 | 1.98% | 1,403,110,810.03 | 0.63% | 1.35% | Investments in forward foreign exchange and wealth management products | [Major Overseas Assets](index=14&type=section&id=2%E3%80%81%E4%B8%BB%E8%A6%81%E5%A2%83%E5%A4%96%E8%B5%84%E4%BA%A7%E6%83%85%E5%86%B5) The company had no major overseas assets requiring disclosure during the reporting period - The company had no major overseas assets during the reporting period[43](index=43&type=chunk) [Assets and Liabilities Measured at Fair Value](index=14&type=section&id=3%E3%80%81%E4%BB%A5%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E8%AE%A1%E9%87%8F%E7%9A%84%E8%B5%84%E4%BA%A7%E5%92%8C%E8%B4%9F%E5%80%BA) At the end of the reporting period, the company's financial assets measured at fair value totaled RMB 6.918 billion, with trading financial assets of RMB 4.758 billion primarily consisting of bank wealth management products. Financial liabilities totaled RMB 439 million, mainly derivative financial liabilities Assets and Liabilities Measured at Fair Value | Item | Beginning Balance (RMB) | Fair Value Change Gains/Losses This Period (RMB) | Ending Balance (RMB) | | :--- | :--- | :--- | :--- | | Subtotal of Financial Assets | 1,555,187,386.63 | -289,908,559.08 | 5,018,976,486.33 | | Accounts Receivable Financing | 1,106,284,192.29 | | 1,898,532,305.54 | | Total Above | 2,661,471,578.92 | -289,908,559.08 | 6,917,508,791.87 | | Financial Liabilities | 155,278,918.84 | -283,252,855.73 | 438,531,774.57 | - No significant changes occurred in the measurement attributes of the company's major assets during the reporting period[45](index=45&type=chunk) [Asset Restrictions as of the End of the Reporting Period](index=15&type=section&id=4%E3%80%81%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E8%B5%84%E4%BA%A7%E6%9D%83%E5%88%A9%E5%8F%97%E9%99%90%E6%83%85%E5%86%B5) At the end of the reporting period, the company's restricted assets totaled RMB 21.278 billion, primarily including cash and cash equivalents, other current assets, and other non-current assets restricted for issuing bills and letters of credit, as well as fixed assets for mortgage financing and intangible assets for pledge financing Asset Restrictions as of the End of the Reporting Period | Item | Ending Book Value (RMB) | Type of Restriction | Description of Restriction | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,079,591,923.13 | Deposit | Restricted for issuing bills and letters of credit | | Fixed Assets | 2,865,505,662.54 | Mortgage | Fixed asset mortgage financing | | Intangible Assets | 605,831,508.94 | Pledge | Land use rights pledge financing | | Other Current Assets | 14,623,980,373.01 | Pledge | Restricted for issuing bills and letters of credit | | Other Non-current Assets | 1,103,566,997.83 | Pledge | Restricted for issuing bills and letters of credit | | Total | 21,278,476,465.45 | | | [Analysis of Investment Status](index=16&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 amount decreased by 32.54% year-on-year. Significant equity investments included the acquisition of shares in some WINGTECH Technology subsidiaries. Financial asset investments primarily comprised securities investments and derivatives for hedging purposes. The company had no use of raised funds - Investment amount during the reporting period was **RMB 1.612 billion**, a **32.54% decrease** compared to the same period last year[46](index=46&type=chunk) - The company had no use of raised funds during the reporting period[56](index=56&type=chunk) [Overall Situation](index=16&type=section&id=1%E3%80%81%E6%80%BB%E4%BD%93%E6%83%85%E5%86%B5) During the reporting period, the company's investment amount was RMB 1.612 billion, a 32.54% decrease compared to the same period last year Overall Investment Situation | Indicator | Amount (RMB) | | :--- | :--- | | Investment Amount This Period | 1,612,226,801.50 | | Investment Amount Prior Year Period | 2,390,006,442.22 | | Change Percentage | -32.54% | [Significant Equity Investments Acquired During the Reporting Period](index=16&type=section&id=2%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%8E%B7%E5%8F%96%E7%9A%84%E9%87%8D%E5%A4%A7%E7%9A%84%E8%82%A1%E6%9D%83%E6%8A%95%E8%B5%84%E6%83%85%E5%86%B5) During the reporting period, the company acquired shares in a WINGTECH Technology subsidiary, with an investment amount of RMB 4.389 billion and a 100% shareholding, in the business type of consumer electronics system integration Significant Equity Investments Acquired During the Reporting Period | Investee Company Name | Business | Investment Method | Investment Amount (RMB) | Shareholding Ratio | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | | WINGTECH Technology Subsidiary Shares | Consumer Electronics System Integration | Acquisition | 4,389,460,864.79 | 100.00% | Own Funds | [Significant Non-Equity Investments in Progress During the Reporting Period](index=16&type=section&id=3%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%AD%A3%E5%9C%A8%E8%BF%9B%E8%A1%8C%E7%9A%84%E9%87%8D%E5%A4%A7%E7%9A%84%E9%9D%9E%E8%82%A1%E6%9D%83%E6%8A%95%E8%B5%84%E6%83%85%E5%86%B5) The company had no significant non-equity investments in progress during the reporting period - The company had no significant non-equity investments in progress during the reporting period[49](index=49&type=chunk) [Financial Asset Investments](index=16&type=section&id=4%E3%80%81%E9%87%91%E8%9E%8D%E8%B5%84%E4%BA%A7%E6%8A%95%E8%B5%84) The company's financial asset investments include securities investments and derivative investments. Securities investments had a total book value of RMB 102 million at period-end. Derivative investments, primarily for hedging, had an investment amount of RMB 199 million at period-end, with a profit/loss of RMB 50.7726 million recognized during the reporting period Securities Investment Status | Type | Investment Cost (RMB) | Ending Book Value (RMB) | Ending Fair Value (RMB) | | :--- | :--- | :--- | :--- | | Domestic and Overseas Stocks | 94,420,138.94 | 65,001,637.56 | 66,036,823.37 | | Total | 94,420,138.94 | 65,001,637.56 | 66,036,823.37 | Derivative Investment Status (for Hedging Purposes) | Derivative Investment Type | Initial Investment Amount (RMB 10k) | Ending Investment Amount (RMB 10k) | Fair Value Change Gains/Losses This Period (RMB 10k) | % of Company's Net Assets at Period-End | | :--- | :--- | :--- | :--- | :--- | | Forward Contracts | 0 | 0 | 33,482.26 | 0.00% | | Options | 158,144.8 | 199,724.94 | 17,290.34 | 2.67% | | Total | 158,144.8 | 199,724.94 | 50,772.60 | 2.67% | - The company conducts foreign exchange derivative transactions following principles of legality, prudence, safety, and effectiveness, avoiding speculative or arbitrage trading, with overall controllable risks[53](index=53&type=chunk)[54](index=54&type=chunk) - The company had no derivative investments for speculative purposes during the reporting period[55](index=55&type=chunk) [Use of Raised Funds](index=18&type=section&id=5%E3%80%81%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E6%83%85%E5%86%B5) The company had no use of raised funds during the reporting period - The company had no use of raised funds during the reporting period[56](index=56&type=chunk) [Significant Asset and Equity Sales](index=18&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 sell any significant assets or equity during the reporting period - The company did not sell any significant assets during the reporting period[57](index=57&type=chunk) - The company did not sell any significant equity during the reporting period[58](index=58&type=chunk) [Analysis of Major Holding and Participating Companies](index=18&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) The company's major subsidiaries include Luxshare Precision Limited and Luxshare-ICT Co., Ltd., with businesses covering electronic product sales, cable assemblies, precision connector sales and services, and computer peripheral manufacturing. During the reporting period, the company established and acquired several new subsidiaries while deregistering two, but these had no significant impact on overall operations or performance Major Subsidiaries and Associates with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Registered Capital | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Luxshare Precision Limited | Subsidiary | USD 5 million | 178,810,598,916.99 | 16,087,383,977.97 | 114,633,812,371.81 | 1,928,417,792.99 | | Luxshare-ICT Co., Ltd. | Subsidiary | USD 153.2903 million | 114,463,792,402.23 | 8,094,860,213.68 | 34,192,788,809.73 | 542,399,873.88 | | Kunshan Luxshare-ICT Co., Ltd. | Subsidiary | RMB 2.32 billion | 35,258,329,754.81 | 8,312,498,788.05 | 11,548,579,186.02 | 306,538,394.33 | | Luxshare-ICT Precision Technology (Yancheng) Co., Ltd. | Subsidiary | RMB 6.264312296 billion | 49,026,952,545.58 | 17,401,943,313.78 | 34,475,941,780.37 | 806,761,341.69 | | Dongguan Luxshare Technology Co., Ltd. | Subsidiary | RMB 613.4058 million | 16,596,640,435.37 | 5,478,371,517.66 | 6,545,666,822.74 | 824,583,776.59 | - During the reporting period, the company established **10 new subsidiaries**, acquired **7 subsidiaries**, and deregistered **2 subsidiaries**, but these had no significant impact on overall operations or performance[60](index=60&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 had no controlled structured entities during the reporting period - The company had no controlled structured entities during the reporting period[63](index=63&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 risks faced by the company and its countermeasures remained unchanged during the reporting period, as detailed in the 2024 annual report - The risks faced by the company and its countermeasures remained unchanged during the reporting period, as detailed in the "2024 Annual Report"[63](index=63&type=chunk) [Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=20&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 formulated and approved a "Market Value Management System" by the Board of Directors to regulate market value management, protect investor interests, and enhance core competitiveness. The company has not disclosed a valuation enhancement plan - The company has formulated the "Market Value Management System," which was approved by the 7th meeting of the 6th Board of Directors[64](index=64&type=chunk) - The "Market Value Management System" aims to regulate market value management, protect the legitimate rights and interests of investors, establish the company's integrity image, and enhance core competitiveness[64](index=64&type=chunk) - The company has not disclosed a valuation enhancement plan[64](index=64&type=chunk) [Implementation of "Dual Improvement in Quality and Returns" Action Plan](index=20&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 has disclosed its "Dual Improvement in Quality and Returns" action plan, which includes five major initiatives: focusing on core business, continuous innovation, standardized operations, enhanced information disclosure, and shared achievements, aiming to improve operational quality and shareholder returns. Controlling shareholder Mr. Wang Laisheng continues to increase his shareholding, demonstrating confidence in the company's future development - The company disclosed the "Announcement on the 'Dual Improvement in Quality and Returns' Action Plan" on February 18, 2024[65](index=65&type=chunk) - The action plan includes five major initiatives: focusing on core business, continuous innovation, standardized operations, enhanced information disclosure, and shared achievements[65](index=65&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) - The company's cumulative R&D investment over the past three years totaled **RMB 25.192 billion**, holding **7,164 invention patents**[67](index=67&type=chunk) - The company's cumulative dividends over the past three years totaled **RMB 4.53 billion**, with cumulative dividends since listing reaching **RMB 7.652 billion**[69](index=69&type=chunk) - Mr. Wang Laisheng, one of the company's actual controllers and Vice Chairman, plans to increase his shareholding in the company within 6 months from April 8, 2025, with an amount not less than **RMB 200 million** and not exceeding **RMB 300 million**[70](index=70&type=chunk) [Part IV Corporate Governance, Environment, and Society](index=23&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) This section details changes in the company's governance structure, profit distribution plans, employee incentive programs, environmental information disclosures, and social responsibility initiatives [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) There were no changes in the company's directors, supervisors, and senior management during the reporting period, with details available in the 2024 annual report - No changes occurred in the company's directors, supervisors, and senior management during the reporting period[72](index=72&type=chunk) [Profit Distribution and Capital Reserve Conversion to Share Capital During 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 not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[73](index=73&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) During the reporting period, the company continued to implement multiple stock option incentive plans (2019, 2021, 2022, and 2025), exercising or granting options to eligible grantees to motivate employees - The fifth exercise period for the 2019 stock option incentive plan's reserved grant became exercisable, with 207 grantees expected to exercise **3,249,094 stock options** at an exercise price of **RMB 13.05 per share**[74](index=74&type=chunk) - The second exercise period for the 2021 stock option incentive plan's reserved grant became exercisable, with 303 grantees eligible to exercise **2,089,224 stock options** at an exercise price of **RMB 35.33 per share**[75](index=75&type=chunk) - The second exercise period for the 2022 stock option incentive plan became exercisable, with 3,076 grantees expected to exercise **30,117,800 stock options** at an exercise price of **RMB 29.92 per share**[77](index=77&type=chunk) - The 2025 stock option incentive plan initially granted **176.63174 million stock options** to 3,106 grantees at an exercise price of **RMB 25.35 per option**[77](index=77&type=chunk)[78](index=78&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 10 of its major subsidiaries are included in the list of enterprises required to disclose environmental information by law, with provided inquiry indexes for each subsidiary's environmental information disclosure report - The company and **10 of its major subsidiaries** are included in the list of enterprises required to disclose environmental information by law[79](index=79&type=chunk) - Inquiry indexes for the environmental information disclosure reports of each listed enterprise are provided[79](index=79&type=chunk)[80](index=80&type=chunk) [Social Responsibility](index=25&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 disclosed its "2024 Annual Sustainable Development Report" on April 26, 2025, detailing its fulfillment of social responsibilities - The company's "2024 Annual Sustainable Development Report" was published on Juchao Information Network on April 26, 2025[81](index=81&type=chunk) [Part V Significant Matters](index=26&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section covers critical events and disclosures, including commitments, related party transactions, litigation, and other material issues impacting the company during the reporting period [Commitments](index=26&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%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) During the reporting period, there were no unfulfilled commitments by the company's actual controllers, shareholders, related parties, acquirers, or the company itself that were overdue at the end of the reporting period - No unfulfilled commitments by the company's actual controllers, shareholders, related parties, acquirers, or the company itself that were overdue at the end of the reporting period[83](index=83&type=chunk) [Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties](index=26&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 were no non-operating funds occupied by controlling shareholders and other related parties from the listed company - No non-operating funds occupied by controlling shareholders and other related parties from the listed company during the reporting period[84](index=84&type=chunk) [Illegal External Guarantees](index=26&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 illegal external guarantees during the reporting period - The company had no illegal external guarantees during the reporting period[85](index=85&type=chunk) [Appointment and Dismissal of Accounting Firms](index=26&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 report was unaudited - The company's semi-annual report was unaudited[86](index=86&type=chunk) [Board of Directors' and Supervisory Board's Explanation on "Non-Standard Audit Report" for This Period](index=26&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) There was no non-standard audit report for the company during the reporting period - No non-standard audit report for the company during the reporting period[87](index=87&type=chunk) [Board of Directors' Explanation on "Non-Standard Audit Report" for the Previous Year](index=26&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) There was no non-standard audit report for the company during the reporting period - No non-standard audit report for the company during the reporting period[87](index=87&type=chunk) [Bankruptcy and Reorganization Matters](index=26&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[87](index=87&type=chunk) [Litigation Matters](index=26&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. Other litigation and arbitration matters involved a total amount of RMB 66.9654 million, some of which have been concluded or are in progress, not expected to have a significant impact on the company - The company had no significant litigation or arbitration matters during this reporting period[88](index=88&type=chunk) - Other litigation (arbitration) matters involved a total amount of **RMB 66.9654 million**, some of which have been concluded or are in progress, not expected to have a significant impact on the company[89](index=89&type=chunk) [Penalties and Rectification](index=27&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 penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[90](index=90&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controllers](index=27&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 controllers maintain good integrity, with no unfulfilled effective court judgments or large overdue debts - The company, its controlling shareholder, and actual controllers maintain good integrity, with no unfulfilled effective court judgments or large overdue debts[91](index=91&type=chunk) [Significant Related Party Transactions](index=27&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 ordinary operations, primarily involving the purchase of goods and services from, and sale of products to, related parties, with transaction prices adhering to market principles. The company had no other significant related party transactions such as asset or equity acquisitions/disposals, joint external investments, or related party creditor-debtor relationships Related Party Transactions Related to Ordinary Operations (Purchases) | Related Party | Related Transaction Content | Amount This Period (RMB 10k) | % of Similar Transactions | Approved Transaction Limit (RMB 10k) | | :--- | :--- | :--- | :--- | :--- | | Suzhou Luxshare | Purchase of goods, services | 113.76 | 0.00% | 1,000 | | BCS Romania | Purchase of goods, services | 2,193.93 | 0.02% | 7,000 | | BCS USA | Purchase of goods, services | 483.6 | 0.00% | 1,000 | | Dongguan Cowell | Purchase of goods, services | 770.39 | 0.01% | 3,500 | | Luxshare Investment | Purchase of fixed assets, lease fees, utilities | 1,131.89 | 0.01% | 8,000 | | Hong Kong Luxshare | Purchase of goods, services | 28,760.58 | 0.30% | 150,000 | Related Party Transactions Related to Ordinary Operations (Sales) | Related Party | Related Transaction Content | Amount This Period (RMB 10k) | % of Similar Transactions | Approved Transaction Limit (RMB 10k) | | :--- | :--- | :--- | :--- | :--- | | Suzhou Luxshare | Sale of goods, services | 14,227.78 | 0.11% | 60,000 | | BCS USA | Sale of goods, services | 2,694.42 | 0.02% | 6,000 | | BCS Romania | Sale of goods, services | 166.82 | 0.00% | 1,000 | | Luxshare Investment | Sale of fixed assets, services | 25.71 | 0.00% | 1,000 | | Hong Kong Luxshare | Sale of goods, services | 74,285.37 | 0.60% | 150,000 | | Luxshare Equipment | Sale of goods, materials, fixed assets, services | 4,065.02 | 0.03% | 30,000 | | Chery New Energy | Sale of goods, services | 3,161.24 | 0.03% | 40,000 | | Anhui Ruijing | Sale of goods, services | 85,674.33 | 0.69% | 400,000 | | Hong Kong Cowell | Sale of goods, services | 50,217.43 | 0.40% | 280,000 | | Dongguan Cowell | Sale of fixed assets, services | 2,261.92 | 0.02% | 15,000 | - The company had no related party transactions involving asset or equity acquisitions/disposals during the reporting period[95](index=95&type=chunk) - The company had no related party transactions involving joint external investments during the reporting period[96](index=96&type=chunk) - The company had no related party creditor-debtor relationships during the reporting period[97](index=97&type=chunk) [Significant Contracts and Their Performance](index=30&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) During the reporting period, the company had no entrustment, contracting, or leasing matters. The company provided guarantees for its subsidiaries, with an actual guarantee balance totaling RMB 70.8701 million. Entrusted wealth management products had an ending balance of RMB 476 million, with no overdue unrecovered amounts - The company had no entrustment, contracting, or leasing situations during the reporting period[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) [Significant Guarantees](index=30&type=section&id=2%E3%80%81%E9%87%8D%E5%A4%A7%E6%8B%85%E4%BF%9D) At the end of the reporting period, the company's actual guarantee balance for its subsidiaries totaled RMB 70.8701 million, primarily for joint liability guarantees to LUXSHARE PRECISION LIMITED. The total guarantee amount accounted for 0.00% of the company's net assets Company Guarantees for Subsidiaries | Guaranteed Party Name | Guarantee Limit (RMB 10k) | Actual Guarantee Amount (RMB 10k) | Guarantee Type | Guarantee Period | Fulfilled | Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | LUXSHARE PRECISION LIMITED | 70,870.14 | 70,870.14 | Joint Liability Guarantee | Five years | No | Yes | - At the end of the reporting period, the total approved guarantee limit for subsidiaries was **RMB 830.3302 million**, with an actual guarantee balance of **RMB 0.7809 million**[107](index=107&type=chunk) - The total actual guarantee amount accounted for **0.00%** of the company's net assets[107](index=107&type=chunk) [Entrusted Wealth Management](index=33&type=section&id=3%E3%80%81%E5%A7%94%E6%89%98%E7%90%86%E8%B4%A2) During the reporting period, the company's entrusted wealth management amount and outstanding balance were both RMB 476 million, primarily bank wealth management products, with no overdue unrecovered amounts Entrusted Wealth Management Status | Specific Type | Amount of Entrusted Wealth Management (RMB 10k) | Outstanding Balance (RMB 10k) | Overdue Unrecovered Amount (RMB 10k) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | 475,806.28 | 475,806.28 | 0 | | Total | 475,806.28 | 475,806.28 | 0 | [Other Significant Contracts](index=33&type=section&id=4%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C) The company had no other significant contracts during the reporting period - The company had no other significant contracts during the reporting period[109](index=109&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[110](index=110&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) The company's subsidiaries had no significant matters during the reporting period - The company's subsidiaries had no significant matters[111](index=111&type=chunk) [Part VI Share Changes and Shareholder Information](index=34&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details changes in the company's share capital, securities issuance, shareholder structure, and shareholdings of directors, supervisors, and senior management [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) During the reporting period, the company's total shares increased by 13,580,200 shares, mainly due to 13,579,867 new shares from stock option exercise and 333 shares from convertible bond conversion. Restricted shares decreased, while unrestricted shares increased Share Change Status | Share Category | Number Before This Change (shares) | Increase/Decrease in This Change (shares) | Number After This Change (shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 17,991,987 | -4,847,557 | 13,144,430 | | II. Unrestricted Shares | 7,219,824,257 | 18,427,757 | 7,238,252,014 | | III. Total Shares | 7,237,816,244 | 13,580,200 | 7,251,396,444 | - During the reporting period, the company's shares increased by **13,579,867 shares** due to independent exercise of stock options by grantees under the stock option incentive plan[114](index=114&type=chunk) - During the convertible bond conversion period, the cumulative number of converted shares was **333 shares**[115](index=115&type=chunk) [Changes in Restricted Shares](index=35&type=section&id=2%E3%80%81%E9%99%90%E5%94%AE%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 restricted shares decreased by 5,221,348 shares, mainly due to the release of restrictions on some senior management shares Changes in Restricted Shares | Shareholder Name | Restricted Shares at Beginning of Period (shares) | Restricted Shares Released This Period (shares) | Restricted Shares Increased This Period (shares) | Restricted Shares at End of Period (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Qian Jiwen | 193,500 | 0 | 253,494 | 446,994 | Senior Management Restricted Shares | | Wang Laisheng | 11,579,735 | 0 | 0 | 11,579,735 | Senior Management Restricted Shares | | Li Wei | 1,889,963 | 1,889,963 | 0 | 0 | Senior Management Restricted Shares | | Wang Tao | 2,132,910 | 2,132,910 | 0 | 0 | Senior Management Restricted Shares | | Huang Dawei | 1,198,475 | 1,198,475 | 0 | 0 | Senior Management Restricted Shares | | Total | 17,991,987.00 | 5,221,348.00 | 373,791.00 | 13,144,430.00 | | [Securities Issuance and Listing](index=36&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[121](index=121&type=chunk) [Number of Shareholders and Shareholding Status](index=36&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) At the end of the reporting period, the total number of ordinary shareholders was 399,568. The controlling shareholder, Luxshare Limited, held 37.67% of shares, with some shares pledged. Hong Kong Securities Clearing Company Limited was the second largest shareholder, holding 4.73% - The total number of ordinary shareholders at the end of the reporting period was **399,568**[122](index=122&type=chunk) Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held at End of Reporting Period (shares) | Pledge, Mark, or Freeze Status | | :--- | :--- | :--- | :--- | :--- | | Luxshare Limited | Overseas Legal Person | 37.67% | 2,731,537,636 | Pledged 1,046,300,000 shares | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 4.73% | 343,116,366 | Not applicable | | Industrial and Commercial Bank of China Co., Ltd. - Huatai-PineBridge CSI 300 ETF | Other | 1.24% | 90,104,524 | Not applicable | | China Securities Finance Corporation Limited | Domestic Non-State-Owned Legal Person | 1.16% | 84,428,888 | Not applicable | | China Construction Bank Corporation - E Fund CSI 300 ETF Initiated Fund | Other | 0.89% | 64,422,297 | Not applicable | | Central Huijin Asset Management Co., Ltd. | State-Owned Legal Person | 0.80% | 58,041,012 | Not applicable | | Industrial and Commercial Bank of China Co., Ltd. - ChinaAMC CSI 300 ETF | Other | 0.65% | 47,242,344 | Not applicable | | Bank of China Limited - Harvest CSI 300 ETF | Other | 0.56% | 40,715,285 | Not applicable | | E Fund Management - Agricultural Bank of China - E Fund China Securities Financial Asset Management Plan | Other | 0.53% | 38,656,343 | Not applicable | | ChinaAMC - Agricultural Bank of China - ChinaAMC China Securities Financial Asset Management Plan | Other | 0.53% | 38,576,831 | Not applicable | - Luxshare Limited is the controlling shareholder of the company[123](index=123&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) During the reporting period, some directors and senior management increased their shareholdings, including Vice General Managers Hao Jie and Qian Jiwen, and Chief Financial Officer Wu Tiansong. Chairman Wang Laichun and Vice Chairman Wang Laisheng's shareholdings remained unchanged Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Shares Held at Beginning of Period (shares) | Shares Increased This Period (shares) | Shares Held at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Wang Laichun | Chairman | 0 | 0 | 0 | | Wang Laisheng | Vice Chairman | 15,439,647 | 0 | 15,439,647 | | Hao Jie | Director, Vice General Manager | 0 | 135,197 | 135,197 | | Qian Jiwen | Director, Vice General Manager | 258,000 | 337,992 | 595,992 | | Wu Tiansong | Chief Financial Officer | 1,329,873 | 25,197 | 1,355,070 | | Total | | 17,027,520 | 498,386 | 17,525,906 | [Changes in Controlling Shareholder or Actual Controller](index=38&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 - No changes in the company's controlling shareholder during the reporting period[126](index=126&type=chunk) - No changes in the company's actual controller during the reporting period[126](index=126&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[127](index=127&type=chunk) [Part VII Bond-Related Information](index=39&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section provides comprehensive details on the company's outstanding debt instruments, including non-financial enterprise debt financing tools and convertible corporate bonds, along with relevant financial indicators [Enterprise Bonds](index=39&type=section&id=%E4%B8%80%E3%80%81%E4%BC%81%E4%B8%9A%E5%80%BA%E5%88%B8) The company had no enterprise bonds during the reporting period - The company had no enterprise bonds during the reporting period[129](index=129&type=chunk) [Corporate Bonds](index=39&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8) The company had no corporate bonds during the reporting period - The company had no corporate bonds during the reporting period[130](index=130&type=chunk) [Non-Financial Enterprise Debt Financing Instruments](index=39&type=section&id=%E4%B8%89%E3%80%81%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 issued multiple tranches of short-term financing bills and medium-term notes, with a total outstanding balance of RMB 520 million, interest rates ranging from 1.65% to 2.2%, traded on the interbank market clearing house. The company had no overdue unpaid bonds Basic Information on Non-Financial Enterprise Debt Financing Instruments | Bond Name | Bond Abbreviation | Bond Code | Issue Date | Maturity Date | Bond Balance (RMB 10k) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Luxshare Precision Industry Co., Ltd. 2025 First Tranche Sci-Tech Innovation Bond | 25 Luxshare Precision SCP001 (Sci-Tech Bond) | 012581124 | May 05, 2025 | December 02, 2026 | 100,000 | 0.0171 | | Luxshare Precision Industry Co., Ltd. 2025 Second Tranche Sci-Tech Innovation Bond | 25 Luxshare Precision SCP002 (Sci-Tech Bond) | 012581299 | June 06, 2025 | December 06, 2025 | 120,000 | 0.0165 | | Luxshare Precision Industry Co., Ltd. 2025 First Tranche Medium-Term Note | Luxshare 25 Precision MTN001 | 102580164 | January 09, 2025 | January 13, 2028 | 150,000 | 0.0209 | | Luxshare Precision Industry Co., Ltd. 2025 Second Tranche Medium-Term Note | Luxshare 25 Precision MTN002 | 102580624 | February 17, 2025 | February 19, 2028 | 150,000 | 0.022 | - The company had no overdue unpaid bonds[132](index=132&type=chunk) [Convertible Corporate Bonds](index=40&type=section&id=%E5%9B%9B%E3%80%81%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8) The company issued RMB 3 billion convertible corporate bonds (Luxshare Convertible Bonds) in 2020, with a conversion period from May 10, 2021, to November 2, 2026. During the reporting period, the cumulative number of converted shares was 333, and the conversion price was adjusted multiple times, standing at RMB 56.47 per share at the end of the reporting period. The company's long-term credit rating is AA+, with a stable outlook - The company publicly issued **RMB 3 billion** convertible corporate bonds on November 3, 2020, with the bond abbreviation "Luxshare Convertible Bonds" and bond code "128136"[133](index=133&type=chunk) - The conversion period for "Luxshare Convertible Bonds" is from May 10, 2021, to November 2, 2026[134](index=134&type=chunk) - As of June 30, 2024, the company's convertible bond conversion price was **RMB 56.47 per share**, with a cumulative conversion of **333 shares** during the reporting period[134](index=134&type=chunk)[139](index=139&type=chunk) Convertible Bond Changes During the Reporting Period | Convertible Corporate Bond Name | Amount Before This Change (RMB) | Increase/Decrease in This Change (RMB) | Amount After This Change (RMB) | | :--- | :--- | :--- | :--- | | Luxshare Convertible Bonds | 2,998,986,600.00 | -19,000.00 | 2,998,966,500.00 | - According to the rating by Lianhe Credit Rating Co., Ltd., the company's long-term credit rating is **AA+**, and the convertible bond credit rating is **AA+**, with a stable outlook[143](index=143&type=chunk) [Consolidated Statement Scope Loss Exceeding 10% of Net Assets at End of Prior Year](index=43&type=section&id=%E4%BA%94%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%90%88%E5%B9%B6%E6%8A%A5%E8%A1%A8%E8%8C%83%E5%9B%B4%E4%BA%8F%E6%8D%9F%E8%B6%85%E8%BF%87%E4%B8%8A%E5%B9%B4%E6%9C%AB%E5%87%80%E8%B5%84%E4%BA%A710%25) During the reporting period, the company's consolidated statement scope loss did not exceed 10% of net assets at the end of the prior year - The company's consolidated statement scope loss did not exceed **10% of net assets** at the end of the prior year during the reporting period[144](index=144&type=chunk) [Key Accounting Data and Financial Indicators for the Company's Last Two Years as of the End of the Reporting Period](index=43&type=section&id=%E5%85%AD%E3%80%81%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%AB%E5%85%AC%E5%8F%B8%E8%BF%91%E4%B8%A4%E5%B9%B4%E7%9A%84%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) At the end of the reporting period, the company's current ratio and quick ratio slightly improved, while the asset-liability ratio slightly increased. Net profit after deducting non-recurring gains and losses increased by 12.90% year-on-year, and both interest coverage ratio and EBITDA interest coverage ratio improved Key Accounting Data and Financial Indicators for the Company's Last Two Years as of the End of the Reporting Period | Item | End of This Reporting Period | End of Prior Year | % Change from End of Prior Year | | :--- | :--- | :--- | :--- | | Current Ratio | 1.2223 | 1.2166 | 0.47% | | Asset-Liability Ratio | 62.87% | 62.16% | 0.71% | | Quick Ratio | 0.9545 | 0.9382 | 1.74% | | Net Profit After Deducting Non-Recurring Gains and Losses | RMB 5,599.4335 million | RMB 4,959.5584 million | 12.90% | | Interest Coverage Ratio | 10.57 | 9.23 | 14.52% | | Cash Interest Coverage Ratio | 1.20 | 6.26 | -80.83% | | EBITDA Interest Coverage Ratio | 17.80 | 16.53 | 7.68% | | Loan Repayment Rate | 100.00% | 100.00% | 0.00% | | Interest Payment Rate | 100.00% | 100.00% | 0.00% | [Part VIII Financial Report](index=44&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the company's unaudited semi-annual financial statements, including balance sheets, income statements, cash flow statements, and detailed notes on significant accounting policies, taxation, and financial statement items [Audit Report](index=44&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 unaudited - The company's semi-annual financial report was unaudited[147](in

[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 chapter defines key terms used in the report, including regulatory bodies, company entities, and important project names, ensuring clear understanding of the content - China Securities Regulatory Commission (CSRC) refers to the China Securities Regulatory Commission[17](index=17&type=chunk) - The Company, this Company, Lingyun Co., Ltd. refers to Lingyun Industrial Co., Ltd[17](index=17&type=chunk) - Controlling Shareholder, Lingyun Group refers to North Lingyun Industrial Group Co., Ltd[17](index=17&type=chunk) [Company Profile and Key Financial Indicators](index=4&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) [I. Company Information](index=4&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This chapter provides the company's basic identification information, including its Chinese name, abbreviation, foreign name, and legal representative - The company's Chinese name is Lingyun Industrial Co., Ltd[14](index=14&type=chunk) - The company's Chinese abbreviation is Lingyun Co., Ltd[14](index=14&type=chunk) - The company's legal representative is Luo Kaiquan[14](index=14&type=chunk) [II. Contact Person and Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This chapter lists the names, contact addresses, telephone numbers, fax numbers, and email addresses of the company's Board Secretary and Securities Affairs Representative - The Board Secretary's name is Li Chao, and the Securities Affairs Representative's name is Wang Haixia[15](index=15&type=chunk) - The contact telephone number is 0312-3951002, and the fax number is 0312-3951234[15](index=15&type=chunk) - The email addresses are lichao@lygf.com and wanghaixia@lygf.com, respectively[15](index=15&type=chunk) [III. Brief Introduction to Changes in Basic Information](index=4&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E5%8F%98%E6%9B%B4%E7%AE%80%E4%BB%8B) This chapter introduces the company's registered address, office address, and website, confirming no changes in basic information during the reporting period - The company's registered and office addresses are both located in Songlindian Town, Zhuozhou City, Hebei Province[16](index=16&type=chunk) - The company's website is http://www.lingyun.com.cn[16](index=16&type=chunk) - No changes occurred in the company's basic information during the reporting period[16](index=16&type=chunk) [IV. Brief Introduction to Changes in Information Disclosure and Document Custody Locations](index=5&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) This chapter specifies the designated newspapers and website for company information disclosure, as well as the location for the semi-annual report, noting no changes during the reporting period - The company's selected newspapers for information disclosure are "China Securities Journal" and "Shanghai Securities News"[18](index=18&type=chunk) - The website address for publishing the semi-annual report is www.sse.com.cn[18](index=18&type=chunk) - No changes occurred in the company's information disclosure or document custody locations during the reporting period[18](index=18&type=chunk) [V. Company Stock Overview](index=5&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) This chapter provides information on the company's A-share listing exchange, stock abbreviation, and stock code - The company's stock type is A-shares, listed on the Shanghai Stock Exchange[19](index=19&type=chunk) - The stock abbreviation is Lingyun Co., Ltd., and the stock code is 600480[19](index=19&type=chunk) [VII. Key Accounting Data and Financial Indicators](index=5&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This chapter presents the company's key accounting data and financial indicators for the first half of 2025, comparing them with the same period last year and explaining the adjustment of earnings per share due to capital reserve capitalization Key Accounting Data (January-June 2025 vs. Same Period Last Year) | Indicator | Current Reporting Period (Jan-Jun) | Same Period Last Year | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 9.26 billion Yuan | 8.94 billion Yuan | 3.61 | | Total Profit | 669.69 million Yuan | 614.67 million Yuan | 8.95 | | Net Profit Attributable to Shareholders of Listed Company | 432.97 million Yuan | 399.19 million Yuan | 8.46 | | Net Cash Flow from Operating Activities | 70.71 million Yuan | 555.95 million Yuan | -87.28 | | Net Assets Attributable to Shareholders of Listed Company (Period-end) | 7.76 billion Yuan | 7.47 billion Yuan | 3.91 | | Total Assets (Period-end) | 19.90 billion Yuan | 19.38 billion Yuan | 2.69 | Key Financial Indicators (January-June 2025 vs. Same Period Last Year) | Indicator | Current Reporting Period (Jan-Jun) | Same Period Last Year | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.36 | 0.33 | 9.09 | | Diluted Earnings Per Share (Yuan/share) | 0.36 | 0.33 | 9.09 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (Yuan/share) | 0.31 | 0.29 | 6.90 | | Weighted Average Return on Net Assets (%) | 5.58 | 5.50 | Increase of 0.08 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 4.82 | 4.85 | Decrease of 0.03 percentage points | - During the reporting period, the company implemented a capital reserve capitalization plan, converting 3 shares for every 10 shares, increasing the total share capital to **1,222,360,477 shares**, leading to a recalculation of last year's earnings per share based on the adjusted share count[21](index=21&type=chunk) [IX. Non-Recurring Gains and Losses Items and Amounts](index=6&type=section&id=%E4%B9%9D%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) This chapter details the non-recurring gains and losses items and their amounts during the reporting period, totaling **59.29 million Yuan** Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -1,535,973.30 | | Government grants recognized in current profit or loss | 80,139,063.27 | | Gains or losses from changes in fair value and disposal of financial assets and liabilities | 139,961.84 | | Gains or losses from debt restructuring | -249,136.91 | | Other non-operating income and expenses apart from the above | 10,455,043.04 | | Other gains and losses that meet the definition of non-recurring gains and losses | 1,100,296.90 | | Less: Income tax impact | 10,026,865.45 | | Impact on minority interests (after tax) | 20,730,866.64 | | **Total** | **59,291,522.75** | [X. Companies with Equity Incentive or Employee Stock Ownership Plans May Choose to Disclose Net Profit After Deducting Share-Based Payment Impact](index=7&type=section&id=%E5%8D%81%E3%80%81%E5%AD%98%E5%9C%A8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E7%9A%84%E5%85%AC%E5%8F%B8%E5%8F%AF%E9%80%89%E6%8B%A9%E6%8A%AB%E9%9C%B2%E6%89%A3%E9%99%A4%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98%E5%BD%B1%E5%93%8D%E5%90%8E%E7%9A%84%E5%87%80%E5%88%A9%E6%B6%A6) This chapter discloses the net profit after deducting the impact of share-based payments, showing a **6.18% increase** in the current reporting period compared to the same period last year Net Profit After Deducting Share-Based Payment Impact | Key Accounting Data | Current Reporting Period (Jan-Jun) | Same Period Last Year | Current Period vs. Same Period Last Year Change (%) | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Share-Based Payment Impact | 575.41 million Yuan | 541.91 million Yuan | 6.18 | [Management Discussion and Analysis](index=7&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) [I. Description of the Company's Industry and Main Business During the Reporting Period](index=7&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) This chapter elaborates on the company's main business, product uses, operating model, performance drivers, major clients, and the latest developments and trends in the automotive and municipal pipeline industries [1. Main Business](index=7&type=section&id=1.%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company and its subsidiaries primarily engage in the production and sale of automotive parts and plastic pipeline systems, with no significant changes in main business during the reporting period - The company and its subsidiaries primarily engage in the production and sale of automotive parts and plastic pipeline systems[28](index=28&type=chunk) - During the reporting period, there were no significant changes in the company's main business or products[28](index=28&type=chunk) [2. Main Products and Uses](index=7&type=section&id=2.%E4%B8%BB%E8%A6%81%E4%BA%A7%E5%93%81%E5%8F%8A%E7%94%A8%E9%80%94) The company's main products include metal and non-metal automotive parts for vehicle structures and piping systems, as well as municipal plastic pipes widely used in urban water supply, drainage, and gas networks - Automotive parts primarily cover two categories: metal parts and non-metal parts, used for supporting vehicle body structures, piping systems, and other automotive components[29](index=29&type=chunk) - Plastic pipes are an important component of municipal pipelines, offering advantages such as corrosion resistance and anti-aging, widely used in urban water supply, drainage, and gas pipeline networks[29](index=29&type=chunk) [3. Business Model](index=7&type=section&id=3.%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company has established a comprehensive supply chain management system, adopts a "production-to-order" model, primarily uses direct sales for automotive parts to OEMs, and secures plastic pipeline orders through bidding - The company has established a comprehensive supply chain management system, implementing effective selection, dynamic assessment, and continuous optimization management for suppliers to control procurement costs and quality[30](index=30&type=chunk) - The company's self-produced products adopt a "production-to-order" model, primarily formulating production plans based on orders[30](index=30&type=chunk) - The company's automotive parts and plastic pipes are primarily sold through direct sales, with automotive parts mainly supplied to domestic and international OEMs, and plastic pipes orders secured through bidding[30](index=30&type=chunk) [4. Key Performance Drivers](index=7&type=section&id=4.%E4%B8%BB%E8%A6%81%E4%B8%9A%E7%BB%A9%E9%A9%B1%E5%8A%A8%E5%9B%A0%E7%B4%A0) The company's performance is primarily driven by innovation, market expansion, and strengthened internal management, enhancing competitiveness through technological innovation, major client management, and digital and intelligent construction - Adhering to innovation-driven development, focusing on collaborative innovation and research in new composite materials, new energy battery casings, and high-strength lightweight safety anti-collision systems[31](index=31&type=chunk)[32](index=32&type=chunk) - Concentrating on market expansion, guided by a major client management model, strengthening group-wide control, optimizing product structure, and improving profitability[33](index=33&type=chunk) - Strengthening internal management, promoting systematization, standardization, digitalization, and intelligent construction to improve operational quality and enhance production and operational decision-making efficiency[34](index=34&type=chunk) [5. Major Clients](index=8&type=section&id=5.%20%E4%B8%BB%E8%A6%81%E5%AE%A2%E6%88%B7) The company's major clients include mainstream domestic and international automotive manufacturers, new energy vehicle battery manufacturers, and group and key local clients in municipal gas and water supply sectors - Major clients for automotive metal and plastic parts include BMW, Mercedes-Benz, Audi, BYD, CATL, and other mainstream domestic and international automakers and new energy vehicle battery manufacturers[35](index=35&type=chunk) - Clients for plastic pipeline systems include China Resources Gas, Towngas, Capital Environmental Protection, Beijing Enterprises Water Group, and other important clients in the gas and water supply sectors[35](index=35&type=chunk) [6. Industry Development Status](index=8&type=section&id=6.%E8%A1%8C%E4%B8%9A%E5%8F%91%E5%B1%95%E6%83%85%E5%86%B5) In the first half of 2025, China's automotive production and sales achieved double-digit growth, with a significant increase in new energy vehicle market share, while the municipal pipeline market, driven by urbanization, is transitioning towards functionalization and high-end development - From January to June 2025, China's automotive production and sales reached **15.621 million units** and **15.653 million units**, respectively, representing year-on-year increases of **12.5%** and **11.4%**[36](index=36&type=chunk) - From January to June 2025, new energy vehicle production and sales reached **6.968 million units** and **6.937 million units**, respectively, representing year-on-year increases of **41.4%** and **40.3%**, with sales accounting for **44.3%** of total automotive sales[37](index=37&type=chunk) - The municipal pipeline industry is vast with stable market demand, requiring close alignment with national urbanization trends, increased technological R&D, and transformation towards functionalization, systematization, high-end, and intelligent upgrades[39](index=39&type=chunk) [II. Discussion and Analysis of Operations](index=9&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In the first half of 2025, the company's operating revenue and profit both grew, primarily due to the transformation and upgrading of automotive parts, optimization of global layout, deepening of state-owned enterprise reform, and active promotion of quality and efficiency improvement initiatives - In the first half of 2025, the company achieved operating revenue of **9.26 billion Yuan**, a **3.61% increase** year-on-year; total profit of **669.69 million Yuan**, an **8.95% increase** year-on-year; and net profit attributable to the parent company of **432.97 million Yuan**, an **8.46% increase** year-on-year[40](index=40&type=chunk) [(I) Actively Promoting Transformation and Upgrading of Automotive Parts, Continuously Enhancing Market Position and Industry Competitiveness](index=9&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E7%A7%AF%E6%9E%81%E6%8E%A8%E8%BF%9B%E6%B1%BD%E8%BD%A6%E9%9B%B6%E9%83%A8%E4%BB%B6%E8%BD%AC%E5%9E%8B%E5%8D%87%E7%BA%A7%EF%BC%8C%E6%8C%81%E7%BB%AD%E6%8F%90%E5%8D%87%E5%B8%82%E5%9C%BA%E5%9C%B0%E4%BD%8D%E5%92%8C%E8%A1%8C%E4%B8%9A%E7%AB%9E%E4%BA%89%E5%8A%9B) The company significantly enhanced its market position and competitiveness by optimizing client and product structures, increasing R&D investment, and making positive progress in new energy vehicle thermal management, robot sensors, and automotive steer-by-wire transformation projects - In the first half, a total of **526 new projects** were designated, including **161 automotive metal projects** with **86.99%** from high-quality clients, and **365 automotive piping system projects**[40](index=40&type=chunk) - In the first half, the company invested **395 million Yuan** in R&D expenses, a **11.67% increase** year-on-year, actively promoting the re-evaluation of the national enterprise technology center and the application for high-tech enterprise status[41](index=41&type=chunk) - Transformation and upgrading projects such as new energy vehicle thermal management systems, robot sensor projects, and automotive steer-by-wire systems achieved positive progress, with some products entering mass production preparation or sample delivery stages[41](index=41&type=chunk) [(II) Actively Responding to Overseas Risks and Challenges, Promoting Optimization of Global Layout and Improvement of Overseas Enterprise Operations](index=9&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E7%A7%AF%E6%9E%81%E5%BA%94%E5%AF%B9%E5%A2%83%E5%A4%96%E9%A3%8E%E9%99%A9%E6%8C%91%E6%88%98%EF%BC%8C%E6%8E%A8%E5%8A%A8%E5%85%A8%E7%90%83%E5%B8%83%E5%B1%80%E4%BC%98%E5%8C%96%E5%92%8C%E5%A2%83%E5%A4%96%E4%BC%81%E4%B8%9A%E8%BF%90%E8%90%A5%E6%94%B9%E5%96%84) The company effectively improved the operations of WAG in Germany and WAM in Mexico through deepened collaboration between headquarters and overseas teams and personalized KPI assessment and incentive schemes, while steadily advancing the Morocco plant project to optimize its global layout - Deepened the collaborative linkage mechanism between headquarters and expatriate management teams, implementing personalized KPI assessment and incentive schemes for WAG in Germany and WAM in Mexico[42](index=42&type=chunk) - WAG in Germany continued to improve its operational quality, significantly reducing labor costs year-on-year, and received Porsche A-level supplier status for two consecutive years[42](index=42&type=chunk) - The Morocco plant project is steadily progressing, with commercial registration, company name approval, and plant site selection completed[43](index=43&type=chunk) [(III) Comprehensively Deepening State-Owned Enterprise Reform, Continuously Enhancing Governance Capability and Management Level](index=10&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E5%85%A8%E9%9D%A2%E6%B7%B1%E5%8C%96%E5%9B%BD%E6%9C%89%E4%BC%81%E4%B8%9A%E6%94%B9%E9%9D%A9%EF%BC%8C%E6%8C%81%E7%BB%AD%E6%8F%90%E5%8D%87%E6%B2%BB%E7%90%86%E8%83%BD%E5%8A%9B%E5%92%8C%E7%AE%A1%E7%90%86%E6%B0%B4%E5%B9%B3) The company steadily advanced state-owned enterprise reform, completing board elections and articles of association revisions, strengthening shareholder returns, and successfully unlocking equity incentive restricted shares, thereby effectively enhancing governance and management capabilities - Completed the re-election of the board of directors to ensure corporate governance compliance; revised the company's articles of association, with the audit committee assuming the supervisory board's functions as stipulated by the Company Law[44](index=44&type=chunk) - Completed the 2024 annual profit distribution and capitalization plan, distributing a total of **282 million Yuan** in cash dividends and **282 million shares** through capitalization[44](index=44&type=chunk) - The first tranche of restricted shares under the equity incentive plan was unlocked as scheduled, and the performance targets for the second restricted period were fully met, stimulating the vitality of core talent[44](index=44&type=chunk) [(IV) Enhancing Value Creation, Steadily Advancing Quality and Efficiency Improvement Initiatives](index=10&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E5%A2%9E%E5%BC%BA%E4%BB%B7%E5%80%BC%E5%88%9B%E9%80%A0%E6%B0%B4%E5%B9%B3%EF%BC%8C%E6%89%8E%E5%AE%9E%E6%8E%A8%E8%BF%9B%E6%8F%90%E8%B4%A8%E5%A2%9E%E6%95%88%E4%B8%93%E9%A1%B9%E8%A1%8C%E5%8A%A8) The company continuously promotes quality and efficiency improvement and the standardization of four major business processes, enhancing technological and cost advantages through various methods such as procurement cost reduction and financing cost savings, thereby increasing value creation - Continuously promoting quality and efficiency improvement and the standardization of four major business processes, achieving cost reduction and efficiency enhancement through various methods such as procurement cost reduction, financing cost savings, and tax refunds/exemptions[45](index=45&type=chunk) - Continuously optimizing procurement supply chain management processes, forming a mechanism for continuous improvement, and expanding the standardization of planning management processes and resource management processes[45](index=45&type=chunk) [III. Analysis of Core Competitiveness During the Reporting Period](index=10&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness lies in its extensive global presence, strong innovation and R&D capabilities, advanced intelligent production lines, high-end client resources, and a comprehensive 1+7 product innovation platform system and regional operating structure - Lingyun Co., Ltd. is a specialized automotive parts listed company under North Lingyun Industrial Group Co., Ltd., with **37 wholly-owned and controlling subsidiaries** and **3 associate companies** located in Germany, Mexico, Indonesia, and over 30 provinces and cities in China[46](index=46&type=chunk) - Leveraging its national-level technology center's innovation and R&D advantages and leading intelligent and digital production lines, the company successfully promoted independent R&D of core products such as high-strength lightweight safety anti-collision systems and hot-formed structural parts[47](index=47&type=chunk) - Lingyun Co., Ltd. possesses core technologies for high-strength, lightweight automotive parts and global high-end client resources, establishing strategic partnerships with international premium brands such as Porsche, BMW, Mercedes-Benz, and Audi[48](index=48&type=chunk) - A "1+7" product innovation platform system has been formed, with Lingyun Central Research Institute as the main body and Wuhan Automotive Engineering Technology Research Institute as a branch, boasting **1 national-level** and **20 provincial-level enterprise technology centers**[48](index=48&type=chunk)[49](index=49&type=chunk) - The company optimized resource allocation, forming three specialized companies for automotive piping, new energy products, and hot-formed products, complemented by five regional operating structures (North China, Northeast, East China, Central China, Southwest) to strengthen specialized operations and regional integrated control[49](index=49&type=chunk) [IV. Major Operating Conditions During the Reporting Period](index=11&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) This chapter analyzes the changes in financial statement items, detailing the variations and primary reasons for operating revenue, costs, various expenses, and net cash flow during the reporting period [(I) Analysis of Main Business](index=11&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) This chapter provides a detailed analysis of changes in operating revenue, costs, selling expenses, administrative expenses, financial expenses, R&D expenses, and net cash flows from operating, investing, and financing activities, explaining the main reasons for these changes Financial Statement Related Item Fluctuation Analysis Table (January-June 2025 vs. Same Period Last Year) | Item | Current Period Amount (Yuan) | Same Period Last Year Amount (Yuan) | Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 9,260,607,500.33 | 8,937,844,503.17 | 3.61 | Actively expanding markets, securing orders, and continuous growth in sales scale[51](index=51&type=chunk) | | Operating Cost | 7,723,995,883.83 | 7,364,047,714.57 | 4.89 | Increase in operating revenue led to a corresponding increase in operating cost[52](index=52&type=chunk) | | Selling Expenses | 173,083,872.07 | 165,905,067.87 | 4.33 | Year-on-year increase in warehousing and storage fees[52](index=52&type=chunk) | | Administrative Expenses | 426,952,457.35 | 456,402,616.32 | -6.45 | Year-on-year decrease in employee compensation, consulting fees, and share-based payment expenses[52](index=52&type=chunk) | | Financial Expenses | -52,237,090.04 | 53,792,468.86 | -197.11 | Exchange rate fluctuations led to a year-on-year decrease in exchange gains/losses[52](index=52&type=chunk) | | R&D Expenses | 395,186,584.85 | 353,895,491.06 | 11.67 | Continued increase in R&D investment for new energy vehicle products, hot-formed products, and high-strength lightweight automotive products[52](index=52&type=chunk) | | Net Cash Flow from Operating Activities | 70,705,881.43 | 555,949,660.12 | -87.28 | Year-on-year decrease in cash received from sales of goods and provision of services[53](index=53&type=chunk) | | Net Cash Flow from Investing Activities | -249,981,028.84 | -243,828,197.25 | -2.52 | Year-on-year decrease in cash received from investment income[54](index=54&type=chunk) | | Net Cash Flow from Financing Activities | -265,924,140.29 | -442,853,767.29 | 39.95 | Year-on-year increase in cash received from borrowings[54](index=54&type=chunk) | [(III) Analysis of Assets and Liabilities](index=12&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%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) This chapter provides a detailed analysis of the composition and changes in the company's period-end assets and liabilities, explaining the reasons for changes in major items such as contract assets, investment properties, short-term borrowings, and non-current liabilities due within one year Assets and Liabilities Status (Period-end vs. Previous Year-end) | Item Name | Current Period-end Amount (Yuan) | Current Period-end % of Total Assets | Previous Year-end Amount (Yuan) | Previous Year-end % of Total Assets | Current Period-end vs. Previous Year-end Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,985,220,345.81 | 15.00 | 3,447,068,831.14 | 17.79 | -13.40 | | Accounts Receivable | 5,371,005,158.77 | 26.99 | 4,748,994,277.36 | 24.51 | 13.10 | | Inventories | 2,374,085,837.39 | 11.93 | 2,072,730,359.68 | 10.70 | 14.54 | | Contract Assets | 92,772,792.33 | 0.47 | 147,912,678.35 | 0.76 | -37.28 | | Investment Properties | 2,234,747.65 | 0.01 | 7,087,903.81 | 0.04 | -68.47 | | Short-Term Borrowings | 1,605,851,781.38 | 8.07 | 816,662,314.36 | 4.21 | 96.64 | | Non-Current Liabilities Due Within One Year | 160,330,752.70 | 0.81 | 813,546,371.51 | 4.20 | -80.29 | - The period-end balance of contract assets was **92.77 million Yuan**, a **37.28% decrease** from the beginning of the year, primarily due to a reduction in the company's quality assurance deposits[56](index=56&type=chunk) - The period-end balance of short-term borrowings was **1.61 billion Yuan**, a **96.64% increase** from the beginning of the year, primarily due to the company increasing short-term borrowings to supplement working capital during the current reporting period[57](index=57&type=chunk) - Overseas assets amounted to **3.14 billion Yuan**, accounting for **15.79%** of total assets[58](index=58&type=chunk) Major Asset Restrictions at Period-end | Item | Period-end Book Value (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Cash Equivalents | 266,521,149.52 | Acceptance bill deposits, letter of guarantee deposits, etc | | Notes Receivable | 4,211,372.49 | Pledged notes | | Accounts Receivable Financing | 41,961,192.83 | Pledged notes | [(IV) Analysis of Investment Status](index=13&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%20%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) This chapter analyzes the company's external equity investments during the reporting period, showing a significant increase in investment amount, and discloses a major capital increase in its Mexican subsidiary Overall Analysis of External Equity Investments | Indicator | Amount (million Yuan) | | :--- | :--- | | Investment Amount During Reporting Period | 109.32 | | Increase in Investment Amount | 67.52 | | Investment Amount in Same Period Last Year | 41.80 | | Percentage Change in Investment Amount (%) | 161.52 | Significant Equity Investments | Investee Company Name | Main Business | Investment Method | Investment Amount (million Yuan) | Shareholding Ratio (%) | Consolidated | Financial Statement Item | Source of Funds | Impact on Current Period Profit/Loss (million Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Waldaschaff Automotive Mexico S.de R.L.de C.V. | Automotive parts production and sales | Capital increase | 109.32 | 76.54 | Yes | Long-term equity investment | Self-raised | 17.50 | [(VI) Analysis of Major Holding and Participating Companies](index=15&type=section&id=%EF%BC%88%E5%85%AD%EF%BC%89%20%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This chapter lists the financial overview of the company's major holding and participating subsidiaries, including total assets, net assets, operating revenue, operating profit, and net profit, reflecting their operational scale and profitability Major Subsidiary Financial Data (Unit: million Yuan) | Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hebei Yada Automotive Plastic Products Co., Ltd. | Subsidiary | Automotive parts | 8 million USD | 2,011.84 | 1,372.70 | 890.76 | 105.91 | 110.91 | | Changchun Yada Automotive Parts Manufacturing Co., Ltd. | Subsidiary | Automotive parts | 10.00 | 1,000.99 | 655.23 | 464.89 | 58.28 | 52.66 | | Shanghai Yada Automotive Plastic Products Co., Ltd. | Subsidiary | Automotive parts | 5.5 million USD | 2,151.96 | 928.48 | 1,335.92 | 68.16 | 49.58 | | Lingyun Genes Technology Co., Ltd. | Subsidiary | Automotive parts | 369.44 | 2,468.69 | 987.80 | 1,363.00 | 116.86 | 99.27 | | Waldaschaff Automotive GmbH | Subsidiary | Automotive parts | 179.5 million EUR | 2,026.09 | 445.82 | 638.08 | -68.84 | -68.84 | [V. Other Disclosure Matters](index=16&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) This chapter identifies and analyzes the industry, market, financial, and international operating risks faced by the company, and proposes corresponding countermeasures to ensure its continuous and stable development [(I) Potential Risks](index=16&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%AF%B9%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces multiple risks including automotive industry transformation, intensified market competition, exchange rate fluctuations, and geopolitical conflicts, with management having developed strategies to address these challenges through technological innovation, market expansion, and risk prevention - **Industry Risks**: The automotive parts industry is transforming towards intelligence and greening, with new energy vehicles driving demand, but global automotive sales growth has stagnated, pure electric vehicle penetration rates are lower than expected, China's economic growth is slowing, market competition is intensifying, making it harder for companies to secure orders; geopolitical tensions are raising global trade barriers, hindering corporate exports and overseas expansion; electrification and intelligence are increasing software costs; fluctuating upstream raw material prices and downstream vehicle price wars are compressing corporate profit margins, making profitability difficult, and some less competitive companies face survival crises[66](index=66&type=chunk) - **Market Risks**: Global political instability, geopolitical conflicts, and other risks persist, market competition such as automotive industry globalization of supply chains is intensifying, and risks like exchange rate fluctuations and deflation still exist. Domestic automotive market competition is escalating, with prices continuously falling, further compressing profit margins for parts companies[68](index=68&type=chunk) - **Financial Risks**: Global economic development faces immense challenges, and the complex and volatile political and economic environment may exacerbate exchange rate market fluctuations; as financial regulatory systems become stricter, policies for domestic guarantees for overseas loans are tightening, and bank approval procedures are complex and time-consuming, leading to pressure on overseas enterprise project funding gaps and renewal of domestic guarantees for overseas loans[69](index=69&type=chunk) - **International Operation Risks**: Intensified geopolitical conflicts, rising trade protectionism, increased market volatility, and heightened risks in overseas operations[70](index=70&type=chunk) [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) [I. Changes in Company Directors and Senior Management](index=17&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) This chapter discloses the company's board re-election, with Ma Chaosong and Zheng Yuanwu no longer serving as independent directors, and Song Yanheng and Cai Chengwei elected as new independent directors, forming the ninth board of directors - Ma Chaosong and Zheng Yuanwu no longer serve as company directors[72](index=72&type=chunk) - Song Yanheng and Cai Chengwei were elected as independent directors, joining existing directors Luo Kaiquan, Zheng Yingjun, Wei Kai, Li Yanbo, and Wang Zidong to form the company's ninth board of directors[72](index=72&type=chunk) [II. Profit Distribution or Capital Reserve to Share Capital Increase 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 board of directors approved the 2025 semi-annual profit distribution plan, proposing a cash dividend of **1.00 Yuan (tax inclusive)** per 10 shares to all shareholders, totaling **122.24 million Yuan**, subject to shareholder approval - The second meeting of the ninth board of directors approved the 2025 semi-annual profit distribution plan, agreeing to distribute a cash dividend of **1.00 Yuan (tax inclusive)** per 10 shares to all shareholders based on the total share capital registered on the equity distribution record date[73](index=73&type=chunk) - The total estimated cash dividend distribution is **122.24 million Yuan (tax inclusive)**[73](index=73&type=chunk) - This plan still requires approval from the general meeting of shareholders[73](index=73&type=chunk) [III. Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=17&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92%E3%80%81%E5%91%98%E5%B7%A5%E6%8C%81%E8%82%A1%E8%AE%A1%E5%88%92%E6%88%96%E5%85%B6%E4%BB%96%E5%91%98%E5%B7%A5%E6%BF%80%E5%8A%B1%E6%8E%AA%E6%96%BD%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D) This chapter outlines the progress of the company's equity incentive plan, including the repurchase and cancellation of restricted shares, the lifting of restrictions for the first vesting period of initially granted shares, and the achievement of conditions for the first vesting period of reserved granted shares, with performance targets for the second vesting period also fully met - The company has disclosed an announcement on the implementation of the repurchase and cancellation of restricted shares under the equity incentive plan[74](index=74&type=chunk) - The conditions for lifting restrictions for the first vesting period of initially granted shares under the equity incentive plan have been met[74](index=74&type=chunk) - The conditions for lifting restrictions for the first vesting period of reserved granted shares under the equity incentive plan have been met[74](index=74&type=chunk) - The company's performance targets for the second vesting period of the equity incentive plan have been fully met[75](index=75&type=chunk) [IV. Environmental Information of Listed Companies and Their Major Subsidiaries Included in the List of Enterprises Required to Disclose Environmental Information by Law](index=18&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%81%AF%E6%83%85%E5%86%B5) This chapter lists the company and three subsidiaries included in the list of enterprises required to disclose environmental information by law, and provides an index for accessing the reports - The number of enterprises included in the list of enterprises required to disclose environmental information by law is **4**[76](index=76&type=chunk) - These include Lingyun Industrial Co., Ltd., Kordan Lingyun Automotive Hose Co., Ltd., and Beijing Shidong Lingyun Automotive Technology Co., Ltd[76](index=76&type=chunk) [V. Specific Progress in Consolidating Poverty Alleviation Achievements 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) This chapter reports on the company's contributions to social responsibility, specifically a **10,000 Yuan donation** by its subsidiary Tianjin Lingyun Gaoxin Automotive Technology Co., Ltd. to Xiaozhan Town, Jinnan District, Tianjin City, for charitable activities - As of June 30, 2025, Tianjin Lingyun Gaoxin Automotive Technology Co., Ltd. donated **10,000 Yuan** to Xiaozhan Town, Jinnan District, Tianjin City, for the "5.28" brand charity event[76](index=76&type=chunk) [Significant Matters](index=18&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [I. Fulfillment of Commitments](index=18&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) This chapter discloses the fulfillment of commitments by the company's actual controller, shareholders, and related parties during or continuing into the reporting period, primarily concerning financial business, fund security, and measures to mitigate the dilution of immediate returns from non-public stock issuance, with all commitments strictly fulfilled - Lingyun Group committed to ensuring the financial business and fund security between the company and Binggong Finance, with the commitment made on November 19, 2018, for a long-term period, and has been strictly fulfilled[79](index=79&type=chunk) - Lingyun Group committed to ensuring the effective implementation of measures to mitigate the dilution of immediate returns from non-public stock issuance, with the commitment made on July 15, 2021, for a long-term period, and has been strictly fulfilled[79](index=79&type=chunk) - Norinco Group also made similar commitments, which have been strictly fulfilled[79](index=79&type=chunk) [IX. Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period](index=20&type=section&id=%E4%B9%9D%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%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%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) This chapter states that during the reporting period, the company, its controlling shareholder, and actual controller had no unfulfilled effective court judgments or large overdue debts, indicating a good integrity status - During the reporting period, the company, its controlling shareholder, and actual controller had no unfulfilled effective court judgments or large overdue debts[80](index=80&type=chunk) [X. Significant Related Party Transactions](index=20&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) This chapter details the company's significant daily transactions with related parties, including commodity procurement and sales, labor services, leasing, and financial business dealings with related financial companies, covering transaction amounts and their proportion of similar transactions [(I) Related Party Transactions Related to Daily Operations](index=20&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%20%E4%B8%8E%E6%97%A5%E5%B8%B8%E7%BB%8F%E8%90%A5%E7%9B%B8%E5%85%B3%E7%9A%84%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engages in various daily related party transactions, including raw material procurement, labor services, engineering, equipment, fuel and power, automotive parts sales, plastic pipeline sales, energy supply, trademark usage fees, leasing, and deposit, loan, and bill businesses with related parties Procurement of Goods and Acceptance of Services (Unit: million Yuan) | Related Party Transaction Category | Further Breakdown by Product or Service | Related Party | Related Party Transaction Amount | % of Similar Transaction Amount | | :--- | :--- | :--- | :--- | :--- | | Procurement of Goods and Acceptance of Services | Raw Materials | Shanghai George Fischer Yada Plastic Pipe Fittings Co., Ltd. | 44.27 | 0.65 | | Procurement of Goods and Acceptance of Services | Raw Materials | Norinco Group and its affiliated enterprises | 269.46 | 3.98 | | Procurement of Goods and Acceptance of Services | Labor and Service Fees | Lingyun Group and its affiliated enterprises | 5.01 | 1.20 | | Procurement of Goods and Acceptance of Services | Engineering Fees | Norinco Group and its affiliated enterprises | 5.49 | 22.56 | Sales of Goods and Energy Supply (Unit: million Yuan) | Related Party Transaction Category | Further Breakdown by Product or Service | Related Party | Related Party Transaction Amount | % of Similar Transaction Amount | | :--- | :--- | :--- | :--- | :--- | | Sales of Goods and Energy Supply | Automotive parts, plastic pipeline systems, and other products | Norinco Group and its affiliated enterprises | 11.23 | 0.13 | | Sales of Goods and Energy Supply | Fuel and Power | Nexteer Lingyun Drive System (Zhuozhou) Co., Ltd. | 8.13 | 83.63 | Deposit, Loan, and Bill Business (Unit: million Yuan) | Related Party Transaction Category | Further Breakdown by Product or Service | Related Party | Related Party Transaction Amount | % of Similar Transaction Amount | | :--- | :--- | :--- | :--- | :--- | | Deposit, Loan, and Bill Business | Loans | Binggong Finance Co., Ltd. | 250.00 | 23.82 | | Deposit, Loan, and Bill Business | Deposits | Binggong Finance Co., Ltd. | 2,296.58 | 76.95 | | Deposit, Loan, and Bill Business | Entrusted Loans | Binggong Finance Co., Ltd. | 85.00 | 100.00 | [(V) Financial Business Between the Company and Related Financial Companies, and Between the Company's Controlled Financial Company and Related Parties](index=22&type=section&id=%EF%BC%88%E4%BA%94%EF%BC%89%20%E5%85%AC%E5%8F%B8%E4%B8%8E%E5%AD%98%E5%9C%A8%E5%85%B3%E8%81%94%E5%85%B3%E7%B3%BB%E7%9A%84%E8%B4%A2%E5%8A%A1%E5%85%AC%E5%8F%B8%E3%80%81%E5%85%AC%E5%8F%B8%E6%8E%A7%E8%82%A1%E8%B4%A2%E5%8A%A1%E5%85%AC%E5%8F%B8%E4%B8%8E%E5%85%B3%E8%81%94%E6%96%B9%E4%B9%8B%E9%97%B4%E7%9A%84%E9%87%91%E8%9E%8D%E4%B8%9A%E5%8A%A1) The company has deposit and loan businesses with Binggong Finance Co., Ltd., with a period-end deposit balance of **2.30 billion Yuan** and a loan balance of **500 million Yuan** Deposit Business (Unit: Yuan) | Related Party | Related Relationship | Maximum Daily Deposit Limit | Deposit Interest Rate Range | Beginning Balance | Total Deposits This Period | Total Withdrawals This Period | Period-end Balance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Binggong Finance Co., Ltd. | Controlled by the same ultimate controlling party | 2,500,000,000.00 | 0.15%-0.75% | 2,296,075,428.69 | 15,055,269,349.63 | 15,054,767,364.36 | 2,296,577,413.96 | Loan Business (Unit: Yuan) | Related Party | Related Relationship | Loan Limit | Loan Interest Rate Range | Beginning Balance | Total Loans This Period | Total Repayments This Period | Period-end Balance | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Binggong Finance Co., Ltd. | Controlled by the same ultimate controlling party | 3,000,000,000.00 | 2.3%-2.8% | 260,000,000.00 | 250,000,000.00 | 10,000,000.00 | 500,000,000.00 | [XI. Significant Contracts and Their Fulfillment](index=23&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) This chapter discloses the company's significant guarantees during the reporting period, primarily for its subsidiaries, with the total guarantee amount accounting for **7.32%** of the company's net assets Company's Total Guarantee Amount | Indicator | Amount (Yuan) | | :--- | :--- | | Total Guarantees Provided to Subsidiaries During Reporting Period | 336,096,000.00 | | Total Guarantees Provided to Subsidiaries at Period-end (B) | 568,002,240.00 | | Total Guarantees (A+B) | 568,002,240.00 | | Total Guarantees as % of Company's Net Assets | 7.32 | | Debt Guarantees Provided Directly or Indirectly to Guaranteed Parties with Debt-to-Asset Ratio Exceeding 70% (D) | 568,002,240.00 | | Total of the Above Three Guarantee Amounts (C+D+E) | 568,002,240.00 | Other Significant Contracts | Related Party | Related Relationship | Business Type | Total Amount (Yuan) | Actual Amount Incurred (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Binggong Finance Co., Ltd. | Controlled by the same ultimate controlling party | Group Credit Line | 3,500,000,000.00 | 885,219,082.48 | [XII. Explanation of Progress in Use of Raised Funds](index=24&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E8%BF%9B%E5%B1%95%E8%AF%B4%E6%98%8E) This chapter details the company's overall use of raised funds, specific investment projects, changes or termination of projects during the reporting period, and temporary use of idle raised funds to supplement working capital [(I) Overall Use of Raised Funds](index=24&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E6%95%B4%E4%BD%93%E4%BD%BF%E7%94%A8%E6%83%85%E5%86%B5) The company raised funds through a non-public offering of shares, with a cumulative investment of **1.14 billion Yuan** as of the end of the reporting period, representing a cumulative investment progress of **83.58%** Details of Raised Funds Usage (Unit: million Yuan) | Source of Raised Funds | Date Funds Received | Total Raised Funds | Net Raised Funds | Total Committed Investment in Prospectus or Offering Document | Cumulative Raised Funds Invested as of Period-end | Cumulative Raised Funds Investment Progress (%) as of Period-end | Amount Invested This Year | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Non-public Offering of Shares | March 8, 2022 | 138.00 | 1,366.39 | 1,366.39 | 1,141.97 | 83.58 | 28.56 | [(III) Changes or Termination of Raised Fund Investment Projects During the Reporting Period](index=26&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%8B%9F%E6%8A%95%E5%8F%98%E6%9B%B4%E6%88%96%E7%BB%88%E6%AD%A2%E6%83%85%E5%86%B5) The Wuhan New Energy Automotive Parts Project was terminated due to lower-than-expected customer orders, and its remaining raised funds of **55.91 million Yuan** were fully reallocated to the Hot-Formed Lightweight Automotive Structural Parts Expansion Project (Phase III) - The Wuhan New Energy Automotive Parts Project was terminated because customer order volume was lower than expected, and the invested amount could meet customer demand, making further investment not cost-effective[95](index=95&type=chunk) - The remaining raised funds of **55.91 million Yuan** were entirely reallocated to the new project, "Hot-Formed Lightweight Automotive Structural Parts Expansion Project (Phase III)"[95](index=95&type=chunk) [(IV) Other Circumstances Regarding the Use of Raised Funds During the Reporting Period](index=26&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E7%9A%84%E5%85%B6%E4%BB%96%E6%83%85%E5%86%B5) The company used **150 million Yuan** of idle raised funds to temporarily supplement working capital on August 26, 2024, which was fully returned to the dedicated raised funds account by July 24, 2025 - The company's board of directors approved the use of **150 million Yuan** of idle raised funds to temporarily supplement working capital at a meeting on August 26, 2024[96](index=96&type=chunk) - As of July 24, 2025, the company had fully returned the **150 million Yuan** used for temporary working capital supplementation to the respective dedicated raised funds accounts[96](index=96&type=chunk) [Share Changes and Shareholder Information](index=27&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 Capital Changes](index=27&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) This chapter details the company's share capital changes during the reporting period, primarily including the repurchase and cancellation of restricted shares, the lifting of restrictions on equity incentive shares, and the capitalization of capital reserves, resulting in a total share count of **1,222,360,477 shares** Share Capital Change Table (Unit: shares) | Category | Quantity Before This Change | % Before This Change | Capitalization from Reserves | Other | Subtotal | Quantity After This Change | % After This Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 23,533,000 | 2.50 | 4,199,652 | -9,534,160 | -5,334,508 | 18,198,492 | 1.49 | | II. Unrestricted Tradable Shares | 916,965,410 | 97.50 | 277,883,535 | 9,313,040 | 287,196,575 | 1,204,161,985 | 98.51 | | III. Total Shares | 940,498,410 | 100.00 | 282,083,187 | -221,120 | 281,862,067 | 1,222,360,477 | 100.00 | - During the reporting period, the company repurchased and canceled **221,120 restricted shares** held by **2 equity incentive recipients**[99](index=99&type=chunk) - The first vesting period of the equity incentive plan expired, and a total of **9,313,040 shares** were unlocked[99](index=99&type=chunk) - The capital reserve capitalization plan was implemented, converting a total of **282,083,187 shares** to all shareholders[99](index=99&type=chunk) Restricted Share Change Table (Unit: shares) | Category | Restricted Shares at Beginning of Period | Restricted Shares Unlocked This Period | Restricted Shares Increased This Period | Restricted Shares at End of Period | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Equity Incentive Plan Grantees | 23,533,000 | 9,313,040 | 4,199,652 | 18,198,492 | Restricted shares still within lock-up period | [II. Shareholder Information](index=28&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This chapter provides the total number of shareholders, the shareholding status of the top ten shareholders and top ten unrestricted tradable share shareholders as of the end of the reporting period, and explains the related party relationships among major shareholders - As of the end of the reporting period, the total number of common shareholders was **46,355**[103](index=103&type=chunk) Top Ten Shareholders' Shareholding Status (Unit: shares) | Shareholder Name | Change During Reporting Period | Shares Held at Period-end | % | Number of Restricted Shares Held | Share Status | Shareholder Nature | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | North Lingyun Industrial Group Co., Ltd. | 92,025,385 | 387,117,487 | 31.67 | 0 | Unrestricted | State-owned legal person | | China Ordnance Investment Management Co., Ltd. | 64,314,318 | 148,695,378 | 12.16 | 0 | Unrestricted | State-owned legal person | | China Construction Bank Co., Ltd. - Yongying Advanced Manufacturing Smart Selection Mixed Initiated Securities Investment Fund | 57,734,129 | 57,734,129 | 4.72 | 0 | Unrestricted | Unknown | - North Lingyun Industrial Group Co., Ltd. and China Ordnance Investment Management Co., Ltd. are both subsidiaries of China North Industries Group Corporation Limited, the actual controller of the company[106](index=106&type=chunk) Top Ten Restricted Shareholders' Shareholding and Restriction Conditions (Unit: shares) | No. | Restricted Shareholder Name | Number of Restricted Shares Held | Date Available for Trading | Restriction Conditions | | :--- | :--- | :--- | :--- | :--- | | 1 | Luo Kaiquan | 228,228 | March 24, 2025 | Restricted shares still within lock-up period | | 9 | Other Grantees | 16,575,468 | March 24, 2025/June 8, 2025 | Restricted shares still within lock-up period | - During the reporting period, the first vesting period of the company's 2022 restricted stock incentive plan expired, with **40%** of the initially granted and reserved granted shares unlocked on March 24, 2025, and June 9, 2025, respectively, totaling **9,313,040 shares**[109](index=109&type=chunk) [Bond-Related Information](index=31&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This chapter states that the company had no corporate bonds, non-financial enterprise debt financing instruments, or convertible corporate bonds during the reporting period - Corporate bonds (including enterprise bonds) and non-financial enterprise debt financing instruments: Not applicable[112](index=112&type=chunk) - Convertible corporate bonds: Not applicable[112](index=112&type=chunk) [Financial Report](index=31&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=31&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This chapter explicitly states that this semi-annual report has not been audited - This semi-annual report has not been audited[5](index=5&type=chunk) [II. Financial Statements](index=32&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This chapter includes the company's consolidated and parent company financial statements for the first half of 2025, comprising the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, comprehensively reflecting the company's financial position and operating results [Consolidated Balance Sheet](index=32&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) This chapter presents the company's consolidated balance sheet as of June 30, 2025, detailing the composition of current assets, non-current assets, current liabilities, non-current liabilities, and owners' equity [Parent Company Balance Sheet](index=34&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) This chapter presents the company's parent company balance sheet as of June 30, 2025, detailing the parent company's assets, liabilities, and owners' equity [Consolidated Income Statement](index=36&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) This chapter presents the company's consolidated income statement for January-June 2025, reflecting key operating results such as total operating revenue, total operating costs, total profit, net profit, and earnings per share [Parent Company Income Statement](index=38&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) This chapter presents the company's parent company income statement for January-June 2025, reflecting the parent company's operating revenue, operating costs, total profit, and net profit [Consolidated Cash Flow Statement](index=39&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This chapter presents the company's consolidated cash flow statement for January-June 2025, detailing net cash flows from operating, investing, and financing activities [Parent Company Cash Flow Statement](index=41&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) This chapter presents the company's parent company cash flow statement for January-June 2025, reflecting the parent company's cash flows from operating, investing, and financing activities [Consolidated Statement of Changes in Owners' Equity](index=42&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) This chapter presents the company's consolidated statement of changes in owners' equity for January-June 2025, detailing changes in paid-in capital, capital reserves, other comprehensive income, special reserves, surplus reserves, and undistributed profits [Parent Company Statement of Changes in Owners' Equity](index=46&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) This chapter presents the company's parent company statement of changes in owners' equity for January-June 2025, reflecting changes in equity items such as share capital, capital reserves, special reserves, surplus reserves, and undistributed profits [III. Company Basic Information](index=48&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) This chapter provides comprehensive information on the company's historical evolution, share capital changes, equity incentive plans, main business nature, and scope of operations, as well as the approval status of financial statements, offering a complete background for understanding the company - Lingyun Industrial Co., Ltd. was formerly Lingyun Automotive Parts Co., Ltd., established in April 1995[139](index=139&type=chunk) - In June 2003, the company publicly issued **68 million RMB ordinary shares** and was listed on the Shanghai Stock Exchange in August 2003[140](index=140&type=chunk) - On April 25, 2025, the company approved the "2024 Annual Profit Distribution and Capital Reserve to Share Capital Increase Plan," after which the company's total share capital became **1,222,360,477 shares**[154](index=154&type=chunk) - The company and its subsidiaries' business nature and main operating activities involve the production and sale of automotive metal and plastic parts, plastic pipeline systems, and other products[155](index=155&type=chunk) [IV. Basis of Financial Statement Preparation](index=51&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) This chapter clarifies that the company's financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and relevant regulations of the China Securities Regulatory Commission, and measured at historical cost - The company's financial statements are prepared on a going concern basis[156](index=156&type=chunk) - These financial statements are prepared in accordance with the "Enterprise Accounting Standards" issued by the Ministry of Finance and the relevant provisions of "Information Disclosure Rules for Companies Issuing Securities to the Public No. 15 - General Provisions for Financial Reports" by the China Securities Regulatory Commission[156](index=156&type=chunk) - The company's accounting is based on the accrual basis, and except for certain financial instruments, these financial statements are measured at historical cost[157](index=157&type=chunk) [V. Significant Accounting Policies and Estimates](index=51&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 chapter details the company's key accounting policies and significant accounting estimates regarding financial instruments, fixed asset depreciation, intangible asset amortization, R&D expense capitalization, revenue recognition, leases, and government grants, also explaining materiality standards and significant accounting judgments [1. Statement of Compliance with Enterprise Accounting Standards](index=51&type=section&id=1.%E9%81%B5%E5%BE%AA%E4%BC%81%E4%B8%9A%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E7%9A%84%E5%A3%B0%E6%98%8E) The company declares that its financial statements comply with enterprise accounting standards, accurately and completely reflecting the company's financial position, operating results, changes in shareholders' equity, and cash flows - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, truly and completely reflecting the company's financial position, operating results, changes in shareholders' equity, and cash flows[159](index=159&type=chunk) [5. Methods and Basis for Determining and Selecting Materiality Standards](index=51&type=section&id=5.%E9%87%8D%E8%A6%81%E6%80%A7%E6%A0%87%E5%87%86%E7%A1%AE%E5%AE%9A%E6%96%B9%E6%B3%95%E5%92%8C%E9%80%89%E6%8B%A9%E4%BE%9D%E6%8D%AE) The company determines materiality based on specific criteria, such as construction in progress budgets exceeding **10 million Yuan**, and non-wholly-owned subsidiaries whose net assets and net profit exceed **10%** of the consolidated financial statements - Significant construction in progress: Individual project budget greater than **10.00 million Yuan**[163](index=163&type=chunk) - Significant non-wholly-owned subsidiaries: Non-wholly-owned subsidiaries whose net assets account for more than **10%** of the consolidated net assets attributable to the parent company, and whose net profit accounts for more than **10%** of the consolidated net profit attributable to the parent company's shareholders[163](index=163&type=chunk)[164](index=164&type=chunk) [11. Financial Instruments](index=54&type=section&id=11.%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7) The company classifies financial assets into three categories and financial liabilities into two categories based on business models and contractual cash flow characteristics, detailing the expected credit loss measurement method, criteria for significant increase in credit risk, and accounting treatment for financial asset transfers and offsetting - The company classifies financial assets into three categories: 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 current profit or loss[180](index=180&type=chunk) - The company classifies financial liabilities into two categories: those measured at fair value with changes recognized in current profit or loss, and those measured at amortized cost[184](index=184&type=chunk) - The company performs impairment accounting for financial assets measured at amortized cost, debt investments measured at fair value with changes recognized in other comprehensive income, and other items, based on expected credit losses[188](index=188&type=chunk) - The company assesses whether credit risk has significantly increased by comparing the risk of default on the financial instrument at the balance sheet date with the risk of default at initial recognition[193](index=193&type=chunk) [21. Fixed Assets](index=64&type=section&id=21.%E5%9B%BA%E5%AE%9A%E8%B5%84%E4%BA%A7) The company initially measures fixed assets at actual cost, depreciates them using the straight-line method, determines depreciation rates based on category, estimated useful life, and residual value rate, and clarifies the recognition and depreciation methods for fixed assets acquired through finance leases - The company's fixed assets refer to tangible assets held for the production of goods, provision of services, rental, or operational management, with a useful life exceeding one accounting year[219](index=219&type=chunk) Annual Depreciation Rates for Various Fixed Assets | Category | Depreciation Method | Useful Life (Years) | Residual Value Rate | Annual Depreciation Rate | | :--- | :--- | :--- | :--- | :--- | | Buildings and Structures | Straight-line method | 20-40 | 5.00 | 4.75-2.38 | | Machinery and Equipment | Straight-line method |

安徽迎驾贡酒股份有限公司2025 年半年度报告 一、 本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实性、准确 性、完整性，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 公司全体董事出席董事会会议。 三、 本半年度报告未经审计。 四、 公司负责人倪永培、主管会计工作负责人王亚及会计机构负责人（会计主管人员）王亚声 明：保证半年度报告中财务报告的真实、准确、完整。 五、 董事会决议通过的本报告期利润分配预案或公积金转增股本预案 无 公司代码：603198 公司简称：迎驾贡酒 安徽迎驾贡酒股份有限公司 2025 年半年度报告 1 / 157 安徽迎驾贡酒股份有限公司2025 年半年度报告 重要提示 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告涉及未来计划等前瞻性描述，该陈述不构成公司对投资者的实质承诺，请投资者注意 投资风险。 七、 是否存在被控股股东及其他关联方非经营性占用资金情况 否 八、 是否存在违反规定决策程序对外提供担保的情况 否 九、 是否存在半数以上董事无法保证公司所披露半年度报告的真实性、准确性和完整性 否 十、 重大风险提示 公司已在本半 ...

中船科技股份有限公司2025 年半年度报告 公司代码：600072 公司简称：中船科技 中船科技股份有限公司 2025 年半年度报告 1/ 258 中船科技股份有限公司2025 年半年度报告 重要提示 一、 本公司董事会及董事、高级管理人员保证半年度报告内容的真实性、准确性、完整性，不 存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 √适用 □不适用 本报告包含若干公司对未来发展战略、业务规划、经营计划、财务状况等前瞻性陈述。这些 陈述系基于当前能够掌握的信息与数据对未来所做出的估计或预测，不构成公司对投资者的实质 承诺，敬请投资者注意投资风险。 七、 是否存在被控股股东及其他关联方非经营性占用资金情况 否 八、 是否存在违反规定决策程序对外提供担保的情况 二、 公司全体董事出席董事会会议。 三、 本半年度报告未经审计。 四、 公司负责人吴兴旺、主管会计工作负责人常荣华及会计机构负责人（会计主管人员）高明 声明：保证半年度报告中财务报告的真实、准确、完整。 五、 董事会决议通过的本报告期利润分配预案或公积金转增股本预案 无 六、 前瞻性陈述的风险声明 否 九、 是否存在半数以上董事无法保证公 ...

新大陆数字技术股份有限公司 2025 年半年度报告 2025 年 8 月 新大陆数字技术股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 一、公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实、准 确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 二、公司负责人王晶、主管会计工作负责人及会计机构负责人徐志凌声明：保证本半年 度报告中财务报告的真实、准确、完整。 三、所有董事均已出席了审议本次半年报的董事会会议。 四、本半年度报告中涉及未来计划等前瞻性陈述，不构成公司对投资者的实质承诺，投 资者及相关人士均应当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。 五、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， 详细描述了公司经营中可能存在的风险，敬请投资者关注相关内容。 六、公司计划不派发现金红利，不送红股，不以公积金转增股本。 1 | 第一节 | 重要提示、目录和释义 | 1 | | --- | --- | --- | | 第二节 | 公司简介和主要财务指标 | 6 | | 第三节 | 管理 ...

厦门港务发展股份有限公司 2025 年半年度报告全文 厦门港务发展股份有限公司 2025 年半年度报告 2025 年 8 月 1 公司经本次董事会审议通过的利润分配方案为：以总股本 741,809,597 股为基数，向 全体股东每 10 股派发现金红利 0.55 元（含税），送红股 0 股（含税），不以公积金转增 股本。 厦门港务发展股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实、准确、 完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 公司负责人陈朝辉、主管会计工作负责人胡煜斌及会计机构负责人(会计主管人员)何 碧茜声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 公司已在本报告中详细描述可能存在的相关风险，敬请查阅"第三节 管理层讨论与 分析"之"十、公司面临的风险和应对措施"。 2 | 第一节 | 重要提示、目录和释义 | | 1 | | --- | --- | --- | --- | | 第二节 | 公司简介和主要财务指标 | | ...

深圳市雄韬电源科技股份有限公司 2025 年半年度报告全文 深圳市雄韬电源科技股份有限公司 2025 年半年度报告 2025-034 2025 年 8 月 1 深圳市雄韬电源科技股份有限公司 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。 公司负责人唐涛、主管会计工作负责人孙彩平及会计机构负责人(会计主 管人员)孙彩平声明：保证本半年度报告中财务报告的真实、准确、完整。 所有董事均已出席了审议本次半年报的董事会会议。 公司已在本报告中详细描述未来将面临的主要风险及应对措施，详情请 查阅本报告"第三节管理层讨论与分析"之"十、"公司面临的主要风险及 应对措施"部分，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。 2 | | | | 第一节 | 重要提示、目录和释义 | 2 | | | --- | --- | --- | --- | | 第二节 | 公司简介和主要财务指标 | | 6 | | 第三节 | 管理层讨论与分 ...

南通江山农药化工股份有限公司2025 年半年度报告 公司代码：600389 公司简称：江山股份 南通江山农药化工股份有限公司 2025 年半年度报告 1 / 172 南通江山农药化工股份有限公司2025 年半年度报告 重要提示 一、 本公司董事会及董事、高级管理人员保证半年度报告内容的真实性、准确性、完整性，不 存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 公司全体董事出席董事会会议。 三、 本半年度报告未经审计。 四、 公司负责人王利、主管会计工作负责人黄海及会计机构负责人（会计主管人员）黄海声明： 保证半年度报告中财务报告的真实、准确、完整。 五、 董事会决议通过的本报告期利润分配预案或公积金转增股本预案 公司2025年半年度拟以实施权益分派股权登记日登记的总股本为基数分配利润。本次利润分 配预案如下：公司拟向全体股东每10股派发现金红利4.50元（含税）。截至2025年6月30日，公司 总股本为430,650,000股，以此计算合计拟派发现金红利193,792,500.00元（含税），占2025年6 月30日合并报表中归属于上市公司普通股股东的净利润比例为57.25%。 如在本 ...