Core Points - The company has established accounting policies to standardize accounting practices and ensure accurate financial reporting in compliance with relevant laws and regulations [1][2][3] - The accounting policies apply to the company and its subsidiaries, focusing on the recognition, measurement, and reporting of accounting elements [1][2] - The company adopts a historical cost basis for measuring accounting elements, with specific guidelines for foreign currency transactions and financial instruments [2][3][4] - The company recognizes revenue based on the completion of property sales and the provision of services, ensuring that economic benefits can flow into the company [32][33] Accounting Policies - The company uses the accrual basis for accounting, ensuring that transactions are recognized when they occur, regardless of cash flow [1][2] - The company measures financial assets and liabilities at fair value or amortized cost, depending on the classification of the financial instruments [4][5][6] - The company applies specific methods for inventory valuation, including cost and net realizable value, to determine any necessary write-downs [13][14] Financial Instruments - Financial assets are classified into categories such as fair value through profit or loss, held-to-maturity investments, loans and receivables, and available-for-sale financial assets [5][6] - The company recognizes financial liabilities at fair value upon initial recognition, with subsequent measurement based on their classification [6][7] - The company assesses financial assets for impairment, ensuring that any losses are recognized in a timely manner [9][10] Revenue Recognition - Revenue from property sales is recognized when the property is completed and accepted, while service revenue is recognized when the service is provided [32][33] - Government grants are recognized when conditions are met, and the company can receive the benefits [27][28] Lease Accounting - The company recognizes right-of-use assets and lease liabilities for leases, excluding short-term and low-value leases, measuring them at present value [29][30] - The company applies straight-line depreciation for right-of-use assets over the lease term [30][31] Employee Benefits - The company accounts for employee benefits, including salaries and social security contributions, based on statutory requirements and historical data [31][32] Investment Accounting - Long-term equity investments are accounted for using the cost method or equity method, depending on the level of control or influence [14][15] - Investment properties are measured at cost or fair value, with any subsequent expenditures capitalized if they enhance the asset's value [19][20]

Financial Performance - The company reported a total revenue of 619 million yuan for the first half of 2025, representing an increase of 18.74% year-on-year [1] - The net profit attributable to shareholders reached 30.31 million yuan, a significant increase of 235.4% compared to the previous year [1] - The gross profit margin improved to 15.23%, up 85.4% year-on-year, while the net profit margin turned positive at 4.58%, reflecting a 200.12% increase [1] Quarterly Analysis - In Q2 2025, the total revenue was 297 million yuan, showing a year-on-year growth of 14.81% [1] - The net profit for Q2 was 13.94 million yuan, which is a 221.43% increase compared to the same quarter last year [1] Cost and Expenses - Total selling, administrative, and financial expenses amounted to 38.25 million yuan, accounting for 6.18% of revenue, a decrease of 19.55% year-on-year [1] - The company experienced a significant increase in financial expenses, up 194.83%, attributed to a decrease in interest from time deposits [3] Cash Flow and Assets - The net cash flow from operating activities decreased by 85.12%, primarily due to increased cash payments for goods [4] - The company’s cash and cash equivalents decreased by 32.21% year-on-year, indicating a reduction in liquidity [2] Debt and Liabilities - Interest-bearing liabilities increased by 19.20% to 613 million yuan, raising concerns about the company's debt levels [1] - The company’s debt ratio reached 21.89%, suggesting a need for careful monitoring of its debt situation [4] Investment and Returns - The company’s return on invested capital (ROIC) has been historically variable, with a median ROIC of 13.44% since its listing [4] - The company has recorded two years of losses since its IPO, indicating potential weaknesses in its business model [4]

Group 1 - The company reported a year-end balance of loaned funds at 3.887 billion yuan, an increase of 11% year-on-year, while interest income from loaned funds decreased by 13.79% to 221 million yuan [1][2] - The company maintained a collateral ratio of 274.13%, down 29.29% year-on-year, with a provision for impairment at 0.15%, up 0.03 percentage points year-on-year [1][2] - The company has 18,611 credit accounts, with a significant portion of collateral being securities, including stocks, bonds, and funds [2][3] Group 2 - The company acquired an additional 5.01% of Beijing Siter Technology Co., Ltd., bringing its total ownership to 20.94%, and recognized goodwill of 460 million yuan [1][8] - Siter's revenue for 2022 to 2024 was 834 million yuan, 870 million yuan, and 761 million yuan respectively, with net profits of 17.23 million yuan, 22.02 million yuan, and a loss of 51.11 million yuan in 2024 [1][8] - The decline in Siter's performance was attributed to a decrease in gross margin from 37.68% to 29.31% due to increased costs and a rise in negative gross margin projects [8][9] Group 3 - The company reported a year-end balance of long-term equity investments at 244 million yuan, with a loss of 19.72 million yuan recognized under the equity method [1][19] - The company added nine new long-term equity investments during the reporting period, primarily in technology and AI sectors, with a focus on synergy with its main business [19][20] - The company confirmed that the investment losses were mainly due to losses from Siter and other associated companies [20]