Group 1 - Wuling Motors (00305) announced that it received a notification from its indirect controlling shareholder, Guangxi Automobile Group Co., Ltd. (Guangxi Automobile), regarding a significant restructuring [1] - The restructuring involves the transfer of 80% equity held by the Guangxi State-owned Assets Supervision and Administration Commission (Guangxi SASAC) in Guangxi Automobile to Guangxi State Capital Operation Group Co., Ltd. (Guangxi State Capital) at zero consideration [1] - Guangxi State Capital, a wholly-owned company of Guangxi SASAC, will assume the role of the investor on behalf of the state, aiming to optimize the layout of state-owned capital [1] Group 2 - After the completion of the restructuring, Guangxi State Capital will hold 80% of Guangxi Automobile's equity, while Guangxi Automobile will remain the controlling shareholder of Wuling Motors, holding approximately 56.54% of the issued share capital of the company [1]

Group 1 - Wuling Motors (00305) announced that its indirect controlling shareholder, Guangxi Automobile Group Co., Ltd., will transfer 80% of its shares to Guangxi Guokong Capital Operation Group Co., Ltd. at zero consideration [1] - Guangxi Guokong is a wholly-owned company of the Guangxi State-owned Assets Supervision and Administration Commission, acting as a state capital investment and operation company [1] - The purpose of this restructuring is to optimize the layout of state-owned capital [1] Group 2 - After the completion of the restructuring, Guangxi Guokong will hold 80% of Guangxi Automobile, while Guangxi Automobile will remain the controlling shareholder of Wuling Motors, holding approximately 56.54% of the issued share capital [1]

[Corporate Profile and Group Structure](index=2&type=section&id=CORPORATE%20PROFILE) The Group specializes in manufacturing and selling automotive components, power systems, and commercial vehicles, with facilities across China, India, and Indonesia - The Group's main businesses cover the sales and manufacturing of automotive components, vehicle power supply systems, and commercial vehicles[5](index=5&type=chunk)[6](index=6&type=chunk) - Major manufacturing facilities are located in Liuzhou, Qingdao, Chongqing, Jingmen, Nanning, India, and Indonesia, with key subsidiaries recognized as high-tech enterprises in China[5](index=5&type=chunk)[6](index=6&type=chunk) [Messages from the Board of Directors](index=4&type=section&id=MESSAGES%20FROM%20THE%20BOARD%20OF%20DIRECTORS) The Board's message outlines the Group's H1 2025 performance and strategy amidst a challenging market, achieving moderate revenue growth and significant net profit increase - The Group adhered to a "stable growth, improved efficiency, and new opportunities" strategy amidst intensifying market competition and economic downturn[13](index=13&type=chunk)[16](index=16&type=chunk) - 2025 H1 Key Financial Indicators (Year-on-Year) | Indicator | 2025 H1 (RMB yuan) | 2024 H1 (RMB yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 4,025,400,000 | 3,946,324,000 | +2% | | Gross Profit | 483,347,000 | 425,824,000 | +13.5% | | Gross Profit Margin | 12% | 10.8% | +1.2 percentage points | | Net Profit | 85,809,000 | 21,125,000 | +306% | | Profit Attributable to Owners of the Company | 39,416,000 | 1,586,000 | Significant improvement | [Preface](index=4&type=section&id=PREFACE) This section summarizes Wuling Motors Holdings Limited's unaudited H1 2025 results, highlighting moderate revenue growth and significant net profit improvement through strategic adjustments and cost control in a challenging market - The Group adhered to a "stable growth, improved efficiency, and new opportunities" operating strategy amidst intensifying market competition and economic downturn[13](index=13&type=chunk)[16](index=16&type=chunk) - The rebound in the automotive components and other industrial services segment, along with new customer contributions, offset the adverse economic impact on the vehicle power supply systems and commercial vehicles segments[14](index=14&type=chunk)[16](index=16&type=chunk) [I. Major Tasks in the First Half of 2025](index=5&type=section&id=I.%20MAJOR%20TASKS%20IN%20THE%20FIRST%20HALF%20OF%202025) This section details the Group's H1 2025 progress across business segments, including new customer acquisition, market expansion, technological upgrades, and efficiency initiatives - The component and part business secured **125 project nominations** from **46 customers** in H1, and established new manufacturing bases and an R&D center in Shandong Rizhao and Shanghai respectively[21](index=21&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - The commercial vehicles assembly business focused on four major categories of specialized vehicles, with strong performance in off-road vehicles domestically and internationally, and secured an order for **100 smart charging robots**[27](index=27&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk)[32](index=32&type=chunk) - The vehicle power supply systems business sold approximately **77,000 engines** in H1, with casting sales increasing by **24.5%**, and secured a strategic project in Vietnam[34](index=34&type=chunk)[35](index=35&type=chunk) - New energy vehicle sales reached approximately **8,640 units**, a **9% year-on-year increase**, with market penetration expected to rise from **30% to 60%** through product optimization and market expansion[36](index=36&type=chunk)[37](index=37&type=chunk) - The Group continues to refine its "one enterprise, one policy" strategy for loss reduction, aiming for a **dual decline** in the number and amount of loss-making subsidiaries within three years[39](index=39&type=chunk)[40](index=40&type=chunk) - Refined management initiatives include continuous "cost reduction and efficiency enhancement" and "three reductions" efforts to control structural and labor costs and revitalize idle assets[41](index=41&type=chunk)[42](index=42&type=chunk)[45](index=45&type=chunk) [Component and Part Business](index=5&type=section&id=1.%20The%20component%20and%20part%20business%20seized%20the%20opportune%20moment%20to%20embark%20on%20a%20new%20journey%20of%20advancement) The component and part business adopted a "stabilize existing, capture incremental, expand variable" strategy in H1, securing 125 project nominations, expanding into new and overseas markets, and establishing new manufacturing and R&D centers, leading to a 5.2% revenue increase - In H1, the component and part business secured **125 project nominations** from **46 customers**[21](index=21&type=chunk)[24](index=24&type=chunk) - Successfully expanded into new markets including SAIC Passenger Vehicle, Zhengzhou Yutong, and Weichai New Energy, and secured projects for rear axles and battery covers in overseas markets like VINFAST Vietnam, Indonesia, and Turkey[25](index=25&type=chunk) - Established a new manufacturing base in Rizhao, Shandong, and leveraged the Shanghai Technology R&D Foresight Center to deepen its product layout in "traditional energy technology upgrades + new energy component integrated development"[25](index=25&type=chunk) - Component and Part Business Revenue | Indicator | 2025 H1 (RMB yuan) | 2024 H1 (RMB yuan) | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | 2,839,699,000 | - | 5.2% | [Commercial Vehicles Assembly Business](index=6&type=section&id=2.%20The%20commercial%20vehicles%20assembly%20business%20move%20towards%20new%20stage%20with%20steady%20progress) The commercial vehicles assembly business focused on four categories of specialized vehicles—civilian, official, off-road, and intelligent driving—achieving significant progress in niche markets, particularly strong performance in off-road vehicles domestically and internationally, and securing smart charging robot orders, despite a slight revenue decrease - The business focuses on developing specialized vehicles in four major categories: civilian, official, off-road, and intelligent driving[29](index=29&type=chunk) - Off-road vehicles achieved strong performance in domestic and international markets, with **1,093 units sold domestically** (including **160 units** for Shandong Nanshan International Golf Carts) and **552 units sold overseas**[30](index=30&type=chunk)[32](index=32&type=chunk) - The intelligent driving business secured a single batch order for **100 smart charging robots**[30](index=30&type=chunk)[32](index=32&type=chunk) - Commercial Vehicles Assembly Business Revenue | Indicator | 2025 H1 (RMB yuan) | 2024 H1 (RMB yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 312,918,000 | - | Slight decrease | [Vehicles' Power Supply Systems Business](index=8&type=section&id=3.%20The%20vehicles'%20power%20supply%20systems%20business%20segment%20forged%20a%20new%20path%20with%20surging%20momentum) The vehicle power supply systems business pursued a dual-engine strategy of "engine technology upgrades and new energy integrated applications," selling approximately 77,000 engines in H1, with casting sales growing by 24.5%, and achieving new progress in domestic and international markets, including HEV hybrid projects and a strategic project in Vietnam - Adhered to a dual-engine strategy of "engine technology upgrades and new energy integrated applications"[34](index=34&type=chunk)[35](index=35&type=chunk) - H1 engine sales were approximately **77,000 units**, with casting business sales increasing by **24.5%** year-on-year[34](index=34&type=chunk)[35](index=35&type=chunk) - Domestic market sales increased to new customers like BAIC Foton, SAIC Maxus, and JAC, while promoting H15TD-DHT hybrid and H16B projects[35](index=35&type=chunk) - Secured a strategic project nomination in Vietnam and efficiently advanced production line construction for flat wire stators in overseas markets[35](index=35&type=chunk) [New Energy Vehicle Business](index=9&type=section&id=4.%20The%20new%20energy%20vehicle%20business%20gained%20momentum%20to%20strengthen%20foundations) The new energy vehicle business optimized technology and products, expanded its product matrix, launched new models, and actively developed domestic and international markets, collaborating with leading enterprises and covering 39 countries and regions with overseas sales channels, achieving a 9% sales increase in H1 - Joint venture Wuling New Energy is building a diversified vehicle system through R&D and product innovation, aiming to increase its market participation in segmented markets from **30% to 60%**[36](index=36&type=chunk)[37](index=37&type=chunk) - Developed large-space G230B and G230V "Golden Cabin" models, offering **15% more loading space** than comparable products[37](index=37&type=chunk) - Collaborated with leading enterprises such as Huolala, SF Express, and Meituan, with overseas sales channels reaching **33 partners** covering **39 countries and regions**[37](index=37&type=chunk) - New Energy Vehicle Sales | Indicator | 2025 H1 (units) | YoY Growth | | :--- | :--- | :--- | | Sales | 8,640 | 9% | [Loss Reduction and Efficiency Enhancement](index=10&type=section&id=1.%20Loss%20reduction%20efforts%20to%20achieve%20a%20%22dual%20decline%22%20in%20losses) The Group continues to refine its "one enterprise, one policy" strategy for loss reduction based on a three-year governance plan for loss-making enterprises, focusing on major loss-making subsidiaries and developing operating strategies for strategic emerging businesses, aiming for a dual decline in the number and amount of loss-making subsidiaries within three years - Continuously improved "one enterprise, one policy" strategies for loss reduction, intensifying governance efforts and focusing on subsidiaries with significant losses[39](index=39&type=chunk)[40](index=40&type=chunk) - Formulated relevant operating strategies for strategic emerging businesses to enhance corporate operational quality and efficiency[40](index=40&type=chunk) - Strives to achieve a **dual decline** in the number and amount of loss-making subsidiaries year-on-year within three years[40](index=40&type=chunk) [Refined Management](index=10&type=section&id=2.%20Implementing%20fine%20management%20to%20enhance%20corporate%20efficiency%20and%20effectiveness) In 2025, the Group continues to refine work measures in market development, expense control, policy utilization, financial management, and labor cost optimization, including ongoing "cost reduction and efficiency enhancement" efforts, strict control of structural and labor costs, and revitalizing idle assets through "three reductions" initiatives to improve asset returns - Continuously implemented "cost reduction and efficiency enhancement" initiatives, setting structural cost control targets and strictly controlling structural cost increases[41](index=41&type=chunk) - Strictly enforced the mechanism linking total wages to economic benefits, reducing labor costs through rational allocation of personnel[42](index=42&type=chunk)[45](index=45&type=chunk) - Continuously carried out "three reductions" initiatives, reviewing asset conditions, revitalizing idle assets, and improving asset returns[42](index=42&type=chunk)[45](index=45&type=chunk) [II. Work Plan and Major Initiatives for the Second Half of 2025](index=11&type=section&id=II.%20WORK%20PLAN%20AND%20MAJOR%20INITIATIVES%20FOR%20THE%20SECOND%20HALF%20OF%202025) In H2 2025, the Group will deepen transformation and upgrading, adjusting product structures, expanding into mid-to-high-end markets, enhancing brand competitiveness, focusing on R&D for high-efficiency engines and hybrid systems, and expanding the new energy vehicle business, while intensifying loss governance and refined internal management - The component and part business will leverage advantageous products to support more new energy vehicle models, enhance product added value, and actively expand into the mid-to-high-end customer market of the top 10 domestic brands[43](index=43&type=chunk)[46](index=46&type=chunk) - The automotive services and sales business will focus on brand synergy, integrating service and sales resources to enhance customer loyalty and brand effect[44](index=44&type=chunk)[47](index=47&type=chunk) - The vehicle power supply systems business will concentrate on R&D for high-efficiency engines and hybrid power systems, accelerating the industrialization of technological achievements[48](index=48&type=chunk)[49](index=49&type=chunk) - The new energy vehicle business will continue to optimize its product matrix, strengthen marketing, promote new models like the medium-range "Golden Mini-Truck" and "Golden Cabin," and expand into high-potential overseas markets such as Japan, South Korea, and Italy[50](index=50&type=chunk) - The Group will strictly implement the "Company-Specific Policy" to intensify loss governance, aiming to achieve the goal of a **dual decline** in the number and amount of loss-making subsidiaries year-on-year[51](index=51&type=chunk)[53](index=53&type=chunk) - Refined internal management will be further promoted through continuous "three reductions" initiatives, strengthening "two funds" control, and establishing special task forces to address non-performing inventory, overdue accounts receivable, and idle asset revitalization[52](index=52&type=chunk)[54](index=54&type=chunk) [Transformation and Upgrading of Component and Part Business](index=11&type=section&id=(i)%20Accelerating%20the%20transformation%20and%20upgrading%20of%20the%20component%20and%20part%20business%20through%20continuous%20adjustment%20of%20product%20portfolio) In H2, the component and part business will continue to adjust its product structure, leveraging advantageous products to support more new energy vehicle models and enhance added value, while actively expanding into mid-to-high-end customer markets of top 10 domestic brands and accelerating the application and industrialization of new products/processes like hydroforming, 3-in-1 electric drive axles, and magnesium-aluminum alloy die-casting - Leveraging advantageous products such as chassis, light-duty electric drives, and energy-saving hybrid systems to actively support more new energy vehicle models and enhance product added value[43](index=43&type=chunk)[46](index=46&type=chunk) - Vigorously expanding into mid-to-high-end customer markets of top 10 domestic brands like Chery, Geely, BYD, and SAIC to increase external market share[43](index=43&type=chunk)[46](index=46&type=chunk) - Accelerating the application and industrialization of new products/processes such as hydroforming, 3-in-1 electric drive axles, and magnesium-aluminum alloy die-casting[43](index=43&type=chunk)[46](index=46&type=chunk) [Synergies in Automotive Services and Sales](index=11&type=section&id=(ii)%20Strengthening%20synergies%20in%20automotive%20services%20and%20sales%20to%20enhance%20brand%20competitiveness) The Group will leverage brand synergy to integrate service and sales resources, creating a unified brand image, accelerating capital turnover, increasing the application of new models, and optimizing resource allocation to enhance customer loyalty, brand effect, and promote sales growth - Leveraging brand synergy as a breakthrough, integrating service and sales resources to form a联动 advantage and create a unified brand image[44](index=44&type=chunk)[47](index=47&type=chunk) - Accelerating capital turnover efficiency, increasing the application of new models, optimizing resource allocation, enhancing customer loyalty and brand effect, and promoting brand sales growth[44](index=44&type=chunk)[47](index=47&type=chunk) [Enhancing Core Competitiveness of Vehicles' Power Supply Systems Business](index=12&type=section&id=(iii)%20Accelerating%20transformation%20and%20upgrading%20to%20drive%20core%20competitiveness%20in%20the%20vehicles'%20power%20supply%20systems%20business) The vehicle power supply systems business will accelerate its transformation and upgrading, focusing on R&D for high-efficiency engines and hybrid power system assemblies, establishing collaborative development mechanisms with vehicle projects, accelerating the industrialization of technological achievements, and actively expanding external markets through precise market research and customer profiling to create new growth poles - Focusing on R&D for high-efficiency engines and hybrid power system assemblies, establishing collaborative development mechanisms with vehicle projects, and accelerating the industrialization of technological achievements[48](index=48&type=chunk)[49](index=49&type=chunk) - Identifying high-quality potential customers through precise market research and customer profiling to create new growth poles for the power system business[49](index=49&type=chunk) [Expansion of New Energy Vehicle Business](index=12&type=section&id=(iv)%20Seizing%20domestic%20and%20international%20market%20opportunities%20to%20expand%20the%20new%20energy%20vehicle%20business) The new energy vehicle business will continue to optimize its product matrix, strengthen marketing, focusing on promoting new products like medium-range "Golden Mini-Trucks," "Golden Trucks," "Golden Cabins," and double-row mini-trucks to increase market share; simultaneously accelerating the launch of cost-reduced G050 platform models and right-hand drive "Golden Cabin" models, expanding into high-potential overseas markets such as Japan, South Korea, and Italy, and actively broadening collaborations with major clients - Continuously optimizing the product matrix and strengthening marketing, with a focus on promoting new products such as medium-range "Golden Mini-Trucks," "Golden Trucks," "Golden Cabins," and double-row mini-trucks to increase market share[50](index=50&type=chunk) - Accelerating the launch of cost-reduced G050 platform models and right-hand drive "Golden Cabin" models, expanding into high-potential overseas markets such as Japan, South Korea, and Italy[50](index=50&type=chunk) - Actively expanding collaborations with major clients, partnering with leading enterprises like Huolala, Didi, SF Express, and Meituan to build an efficient market-oriented operating mechanism[50](index=50&type=chunk) [Loss Governance](index=13&type=section&id=(v)%20Strictly%20implementing%20the%20%22Company-Specific%20Policy%22%20approach%20to%20further%20intensify%20loss%20governance) The Group will strictly implement the "one enterprise, one policy" approach to further intensify loss governance, striving to achieve the goal set by the Autonomous Region State-owned Assets Supervision and Administration Commission of a "dual decline in the number and amount of loss-making subsidiaries year-on-year by 2025," through technical optimization, commercial control, and continuous cleanup efforts for non-performing enterprises - Intensifying governance efforts to achieve the goal set by the Autonomous Region State-owned Assets Supervision and Administration Commission of a "dual decline in the number and amount of loss-making subsidiaries year-on-year by 2025"[51](index=51&type=chunk)[53](index=53&type=chunk) - For new energy strategic emerging enterprises, reducing production costs and procurement expenses through technical optimization and commercial control to achieve cost reduction and efficiency enhancement[53](index=53&type=chunk) - For enterprises unable to achieve profitability through their own development, strictly controlling expenses and continuously carrying out various cleanup efforts[53](index=53&type=chunk) [Further Promoting Refined Internal Management](index=13&type=section&id=(vi)%20Further%20promoting%20refined%20internal%20management%20to%20enhance%20asset%20efficiency) The Group will deeply advance refined internal management, continuously implementing "three reductions" initiatives, strengthening "two funds" control, and promoting the establishment of special task forces across its enterprises to specifically address non-performing inventory, overdue accounts receivable, and idle asset revitalization to enhance asset efficiency - Continuously advancing "three reductions" initiatives and strengthening "two funds" control[52](index=52&type=chunk)[54](index=54&type=chunk) - Promoting the establishment of special task forces across Group enterprises to specifically address non-performing inventory, overdue accounts receivable, and idle asset revitalization[54](index=54&type=chunk) [Conclusion](index=14&type=section&id=Conclusion) Management is confident in the Group's long-term business potential in the automotive supply chain industry and believes in a bright future with continued support from its ultimate controlling shareholder and customers - Management believes the Group's long-term business potential in the automotive supply chain industry will continue to strengthen[55](index=55&type=chunk)[56](index=56&type=chunk) - With the continuous support of its ultimate controlling shareholder and joint venture partner, Guangxi Automobile, and its customers, the Group's business prospects are bright and will generate returns for shareholders in the future[55](index=55&type=chunk)[56](index=56&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) This section reviews the Group's H1 2025 operating and financial performance, highlighting moderate revenue growth, significant net profit increase, progress in all major business segments, especially in new energy, and a stable financial position with ample liquidity - The Group's total revenue for H1 2025 was **RMB 4,025,400,000**, a **2% year-on-year increase**[164](index=164&type=chunk)[166](index=166&type=chunk) - Net profit was **RMB 85,809,000**, a **306% year-on-year increase**, with profit attributable to owners of the Company at **RMB 39,416,000**, representing significant improvement[169](index=169&type=chunk)[172](index=172&type=chunk) - Improved business volume and cost control measures in the automotive components and other industrial services segment were key drivers of enhanced profitability[168](index=168&type=chunk)[172](index=172&type=chunk) - R&D expenses significantly increased by **42.6%** to **RMB 184,154,000**, primarily for new products and development projects in the automotive components and other industrial services segment[182](index=182&type=chunk)[187](index=187&type=chunk) - The Group's net current assets were **RMB 557,144,000**, a further improvement from the end of 2024[192](index=192&type=chunk)[195](index=195&type=chunk) [Operation Review — By Main Business Segments](index=15&type=section&id=OPERATION%20REVIEW%20—%20BY%20MAIN%20BUSINESS%20SEGMENTS) This section reviews the H1 2025 operating performance of the Group's three main business segments: vehicle power supply systems, automotive components and other industrial services, and commercial vehicles, highlighting the power system's return to profitability, component's moderate growth, and commercial vehicle's stable sales and profit despite market weakness, with all segments actively pursuing technological upgrades and market expansion - The vehicle power supply systems segment successfully **returned to profitability**, recording an operating profit of **RMB 6,609,000**, an improvement from an operating loss of **RMB 17,112,000** in the same period of 2024[64](index=64&type=chunk)[67](index=67&type=chunk) - The automotive components and other industrial services segment's total revenue moderately increased by **5.2%** to **RMB 2,839,699,000**, with operating profit increasing by approximately **2.6%** to **RMB 77,874,000**[89](index=89&type=chunk)[90](index=90&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) - Despite a slight decrease in revenue, the commercial vehicles assembly segment's operating profit moderately increased by approximately **6.2%** to **RMB 27,970,000**, driven by stable business volume and cost control[121](index=121&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) - All business segments are actively transitioning towards new energy, with the power system completing its "traditional power technology upgrade + new energy power integrated development" product layout, automotive components expanding new energy vehicle support, and commercial vehicles developing low-speed intelligent driving products[70](index=70&type=chunk)[73](index=73&type=chunk)[117](index=117&type=chunk)[119](index=119&type=chunk)[129](index=129&type=chunk)[131](index=131&type=chunk) [Vehicles' Power Supply Systems](index=15&type=section&id=Vehicles'%20Power%20Supply%20Systems) The vehicle power supply systems segment's total revenue decreased by 4.8% in H1 2025, but it successfully returned to profitability with an operating profit of RMB 6,609,000 due to cost control; strong casting product sales grew by 24.5%, mitigating adverse market factors, as the segment actively transforms into a multi-dimensional power system supplier, integrating new energy development and achieving breakthroughs in high-efficiency engines and HEV hybrid solutions - Vehicle Power Supply Systems Segment Key Financial Data | Indicator | 2025 H1 (RMB yuan) | 2024 H1 (RMB yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 858,640,000 | 902,113,000 | -4.8% | | Engine Sales Volume | Approx. 77,000 units | - | Approx. -8.3% | | Casting Product Sales Revenue | 257,138,000 | - | Approx. +24.5% | | Operating Profit/(Loss) | 6,609,000 | (17,112,000) | Returned to profitability | | Sales to SGMW | 426,588,000 | - | Approx. +10% | - The segment has completed its product layout for "traditional power technology upgrades + new energy power integrated development," aiming to become a leading national enterprise in small and medium displacement energy-saving hybrid power systems[70](index=70&type=chunk)[73](index=73&type=chunk) - Successfully developed a new generation of H-series ultra-efficient engines, methanol engines, and hydrogen internal combustion engines, recognized as pioneering in their domestic categories[75](index=75&type=chunk)[79](index=79&type=chunk) - The launch of HEV hybrid power solutions made the Group the first supplier in the Guangxi region with comprehensive hybrid capabilities, capable of saving over **30% in fuel consumption**[78](index=78&type=chunk)[80](index=80&type=chunk)[82](index=82&type=chunk)[86](index=86&type=chunk) [Automotive Components and Other Industrial Services](index=20&type=section&id=Automotive%20Components%20and%20Other%20Industrial%20Services) The automotive components and other industrial services segment achieved total revenue of RMB 2,839,699,000 in H1 2025, a 5.2% year-on-year increase, with operating profit growing by 2.6%, driven by a rebound in major customer business and new client contributions; the segment actively expanded domestic and international markets, established new production bases, and made significant progress in developing axles, frames, hydroformed products, and core components, moving towards lightweight, integrated, intelligent, and high-end solutions - Automotive Components and Other Industrial Services Segment Key Financial Data | Indicator | 2025 H1 (RMB yuan) | 2024 H1 (RMB yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 2,839,699,000 | 2,698,094,000 | +5.2% | | Operating Profit | 77,874,000 | 75,883,000 | +2.6% | | Sales to SGMW | 1,606,971,000 | 1,486,464,000 | +8.1% | | Sales to Expanded Customers | 1,159,301,000 | - | Significant growth | | Sales to Wuling New Energy | 73,427,000 | - | Gradually increasing | - Established new production bases in Jingmen, Hubei, and Rizhao, Shandong, enhancing industrial reach and market competitiveness[97](index=97&type=chunk)[100](index=100&type=chunk) - In axles, cumulative production and sales of micro electric drive axles exceeded **2,000,000 units**, coaxial electric drive axles were first commercialized domestically, and integrated products like 3-in-1 electric drive axles were developed[103](index=103&type=chunk)[105](index=105&type=chunk) - Non-load-bearing frames and other lightweight integrated body products were awarded "Guangxi Manufacturing Single Champion," widely applied in SUV, pickup, commercial, special, and new energy vehicle sectors[104](index=104&type=chunk)[106](index=106&type=chunk) - Hydroforming technology successfully reduced high-strength steel tube wall thickness to **1.2 millimeters**, achieving over **30% weight reduction** and material utilization exceeding **90%**, with a second production line expanded[108](index=108&type=chunk)[111](index=111&type=chunk) - Possesses full-process, independent development capabilities for spiral bevel gears, and has begun undertaking spiral bevel gear products for BYD FinDreams Power[110](index=110&type=chunk)[113](index=113&type=chunk) [Commercial Vehicles Assembly](index=25&type=section&id=Commercial%20Vehicles%20Assembly) The commercial vehicles assembly segment's revenue decreased by 5.4% in H1 2025, but sales increased by 6%, achieving an operating profit of RMB 27,970,000, a 6.2% increase, attributed to stable business volume, lower raw material costs, and cost control measures; the segment focuses on specialized vehicle production and low-speed intelligent driving product development, and has transferred its new energy vehicle assembly business to its associate, Wuling New Energy, to optimize its business structure - Commercial Vehicles Assembly Segment Key Financial Data | Indicator | 2025 H1 (RMB yuan) | 2024 H1 (RMB yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 312,918,000 | - | Approx. -5.4% | | Sales Volume | Approx. 3,870 vehicles | - | +6% | | Operating Profit | 27,970,000 | - | Approx. +6.2% | - Business volume was affected by adverse economic conditions, the transfer of new energy vehicle assembly business to Wuling New Energy, and a repositioning strategy for modified vehicles[122](index=122&type=chunk)[125](index=125&type=chunk) - The segment is capable of producing various specialized vehicles such as sightseeing cars, golf carts, refrigerated trucks, fire trucks, and electric logistics vehicles, sold under the "Wuling" brand[127](index=127&type=chunk)[128](index=128&type=chunk)[130](index=130&type=chunk) - Independently developed core chassis components like front and rear axles, EPB, EHB, vehicle-grade steer-by-wire chassis, and the Lingyu intelligent driving system, and launched low-speed intelligent driving products such as smart charging robots and unmanned patrol vehicles[129](index=129&type=chunk)[131](index=131&type=chunk)[133](index=133&type=chunk)[136](index=136&type=chunk) - New energy vehicle business was restructured, transferring assembly operations to associate Wuling New Energy, which became a core technology partner and customer[135](index=135&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk) [Performance of Joint Ventures and Associates](index=29&type=section&id=PERFORMANCE%20OF%20JOINT%20VENTURES%20AND%20ASSOCIATES) This section evaluates the H1 2025 performance of the Group's key joint ventures and associates; Wuling New Energy, the primary new energy vehicle entity, saw revenue growth but remained in a loss-making phase with 9.4% sales growth, while other entities like Guangxi Weixiang and Faurecia Interior Systems maintained profitable growth, and Faurecia Seating and Faurecia Exhaust narrowed losses or returned to profitability amidst revenue growth or stability - Wuling New Energy, as the Group's primary new energy vehicle business entity, achieved total revenue of **RMB 565,487,000** in H1, but incurred a net operating loss of **RMB 211,348,000** due to its initial development stage[147](index=147&type=chunk)[150](index=150&type=chunk) - Wuling New Energy sold approximately **8,640 new energy vehicles**, a **9.4% year-on-year increase**, primarily driven by the launch of new models[151](index=151&type=chunk) - Guangxi Weixiang Machinery Co Ltd's total revenue increased by **42%** year-on-year to **RMB 391,428,000**, with net operating profit growing by **60%** to **RMB 7,606,000**[157](index=157&type=chunk)[160](index=160&type=chunk) - Faurecia (Liuzhou) Automotive Seating Co Ltd's revenue increased by **44%** year-on-year to **RMB 265,835,000**, with a significant narrowing of its net operating loss[158](index=158&type=chunk)[161](index=161&type=chunk) - Faurecia (Liuzhou) Automotive Interior Systems Co Ltd's revenue increased by **30%** year-on-year to **RMB 191,860,000**, with net operating profit further increasing to **RMB 21,509,000**[159](index=159&type=chunk)[162](index=162&type=chunk) - Faurecia (Liuzhou) Exhaust Control Technology Co Ltd successfully **returned to profitability** with a net operating profit of **RMB 2,406,000**, driven by improved gross profit margin[163](index=163&type=chunk)[165](index=165&type=chunk) [Wuling New Energy](index=29&type=section&id=Wuling%20New%20Energy) Wuling New Energy, the Group's primary new energy vehicle entity, achieved total revenue of RMB 565,487,000 in H1 2025 but recorded an operating loss due to its initial development stage; despite intense market competition, its new energy vehicle sales grew by 9.4%, with plans to launch more "Ling Shi" brand new models in H2 and continue expanding overseas markets, aiming to become a leader in the light-duty new energy commercial vehicle market - Wuling New Energy Key Financial Data | Indicator | 2025 H1 (RMB yuan) | 2024 H1 (RMB yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 565,487,000 | - | - | | Net Operating Loss | (211,348,000) | - | - | | Loss Attributable to the Group | (54,316,000) | - | Slight increase | | New Energy Vehicle Sales Volume | 8,640 vehicles | - | +9.4% | - Business performance continues to be affected by intense competition in the Chinese market, declining electric vehicle prices, and uncertainties in domestic insurance policies and overseas import regulations[148](index=148&type=chunk)[150](index=150&type=chunk) - Plans are in place to launch multiple new models under the "Ling Shi" brand in 2025, with the pure electric "Golden Truck" already promoted in H1[152](index=152&type=chunk)[155](index=155&type=chunk) - Continuously expanding overseas markets, further developing Southeast Asia and South America while maintaining presence in Japan, the US, South Korea, and Europe[153](index=153&type=chunk)[155](index=155&type=chunk) [Other Material Joint Ventures and Associates](index=31&type=section&id=Other%20Material%20Joint%20Ventures%20and%20Associates) The Group's other material joint ventures and associates showed varied performance in H1 2025; Guangxi Weixiang maintained profitability with growth in both revenue and profit, Faurecia Seating saw significant revenue growth but remained loss-making, Faurecia Interior Systems improved both revenue and profit, and Faurecia Exhaust successfully returned to profitability with stable revenue, demonstrating the Group's diversified market presence and operational resilience - Other Material Joint Ventures and Associates Key Financial Data | Company Name | Business Type | 2025 H1 Total Revenue (RMB yuan) | YoY Change | 2025 H1 Net Operating Profit/(Loss) (RMB yuan) | Profit/(Loss) Attributable to the Group (RMB yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Guangxi Weixiang Machinery Co Ltd | Engineering machinery and industrial vehicles | 391,428,000 | +42% | 7,606,000 | 3,803,000 | | Faurecia (Liuzhou) Automotive Seating Co Ltd | Automotive seating products | 265,835,000 | +44% | (7,356,000) | (3,678,000) | | Faurecia (Liuzhou) Automotive Interior Systems Co Ltd | Automotive interior systems | 191,860,000 | +30% | 21,509,000 | 10,755,000 | | Faurecia (Liuzhou) Exhaust Control Technology Co Ltd | Automotive exhaust control systems | 137,016,000 | Stable | 2,406,000 | 1,203,000 | [Financial Review](index=32&type=section&id=FINANCIAL%20REVIEW) This section provides a comprehensive review of the Group's H1 2025 financial performance, including profit or loss, financial position, liquidity, and capital structure, noting growth in total revenue and net profit, improved gross margin, increased net current assets, and sufficient liquidity, while actively managing financial risks in a complex market environment - The Group's total revenue was **RMB 4,025,400,000**, a slight increase of **2%** compared to the same period in 2024[164](index=164&type=chunk)[166](index=166&type=chunk) - Gross profit was **RMB 483,347,000**, an increase of **13.5%**, with gross profit margin improving from **10.8% to 12%**[168](index=168&type=chunk)[172](index=172&type=chunk) - Net profit was **RMB 85,809,000**, a substantial increase of **306%** compared to the same period in 2024[169](index=169&type=chunk)[172](index=172&type=chunk) - R&D expenses significantly increased by **42.6%** to **RMB 184,154,000**, primarily for new products and development projects in the automotive components and other industrial services segment[182](index=182&type=chunk)[187](index=187&type=chunk) - As of June 30, 2025, the Group recorded net current assets of **RMB 557,144,000**, a further improvement from December 31, 2024[192](index=192&type=chunk)[195](index=195&type=chunk) - Total bank borrowings increased by **36.5%** to **RMB 4,068,396,000**, while advances drawn on bills receivable discounted with recourse decreased by **21.1%** to **RMB 1,932,109,000**[200](index=200&type=chunk)[204](index=204&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=32&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section analyzes the Group's H1 2025 profit or loss and other comprehensive income, showing a moderate 2% increase in total revenue, improved gross profit and margin, and a significant 306% rise in net profit; R&D expenses increased substantially, while selling and distribution costs, general and administrative expenses, and finance costs decreased, with associates still reporting a net loss but joint ventures achieving a net profit - 2025 H1 Condensed Consolidated Statement of Profit or Loss Key Data | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 4,025,400 | 3,946,324 | +2% | | Gross Profit | 483,347 | 425,824 | +13.5% | | Net Profit | 85,809 | 21,125 | +306% | | Profit Attributable to Owners of the Company | 39,416 | 1,586 | Significant improvement | | Basic Earnings Per Share | 1.20 cents | 0.05 cents | Significant improvement | | Other Income | 99,297 | 136,879 | -27.5% | | Other Gains and Losses | 6,770 | (22,603) | Returned to profitability | | Selling and Distribution Costs | (38,854) | (52,696) | -26.3% | | General and Administrative Expenses | (177,610) | (212,483) | -16.4% | | R&D Expenses | (184,154) | (129,117) | +42.6% | | Finance Costs | (50,532) | (59,858) | -15.6% | - Share of results of associates recorded a total net loss of **RMB 39,871,000**, primarily from Wuling New Energy and Faurecia Seating[175](index=175&type=chunk)[179](index=179&type=chunk) - Share of results of joint ventures recorded a total net profit of **RMB 5,763,000**, mainly attributable to the contribution from Guangxi Weixiang[176](index=176&type=chunk)[180](index=180&type=chunk) [Condensed Consolidated Statement of Financial Position](index=35&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were RMB 14,447,828,000, and total liabilities were RMB 11,362,586,000; net current assets significantly improved to RMB 557,144,000, with non-current liabilities primarily consisting of bank borrowings, indicating a stable financial position - 2025 June 30 Condensed Consolidated Statement of Financial Position Key Data | Indicator | 2025 June 30 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Total Assets | 14,447,828 | - | | Total Liabilities | 11,362,586 | - | | Non-current Assets | 4,029,991 | 4,162,391 | | Current Assets | 10,417,837 | 9,606,525 | | Current Liabilities | 9,860,693 | 9,532,503 | | Net Current Assets | 557,144 | 74,022 | | Non-current Liabilities | 1,501,893 | 1,195,363 | | Equity Attributable to Owners of the Company | 1,992,026 | 1,973,393 | - Total capital expenditure for the acquisition of property, plant, and equipment was **RMB 133,727,000**[185](index=185&type=chunk)[189](index=189&type=chunk) - Amounts due from SAIC-GM-Wuling, an associate and major customer, totaled **RMB 1,049,607,000**[190](index=190&type=chunk) [Liquidity and Capital Structure](index=36&type=section&id=Liquidity%20and%20Capital%20Structure) The Group manages its capital by balancing debt and equity to ensure continued operation and maximize shareholder returns; as of June 30, 2025, total bank borrowings increased by 36.5%, while advances drawn on bills receivable discounted with recourse decreased by 21.1%, maintaining relatively high bank cash balances, with the Board confident in the current robust financial position to withstand market risks and challenges - The Group's capital structure comprises debt (advances drawn on bills receivable discounted with recourse and bank borrowings) and equity attributable to owners of the Company[194](index=194&type=chunk)[197](index=197&type=chunk) - Liquidity and Capital Structure Key Data | Indicator | 2025 June 30 (RMB thousand) | 2024 December 31 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Total Bank Borrowings | 4,068,396 | 2,980,139 | +36.5% | | Outstanding Advances Drawn on Bills Receivable Discounted with Recourse | 1,932,109 | 2,448,817 | -21.1% | | Total Bills Receivable Discounted | 3,131,157 | - | - | | Bank Cash Balances (including pledged deposits) | 5,195,075 | - | Slight increase | | Total Equity Attributable to Company Shareholders | 1,992,026 | - | - | | Net Asset Value Per Share | 60.4 cents | - | - | - The Directors believe that the Group's current financial position will enable it to withstand the risks and challenges of the current market environment[203](index=203&type=chunk)[205](index=205&type=chunk) [Seasonality or Cyclicality of Interim Operations](index=38&type=section&id=Seasonality%20or%20Cyclicality%20of%20Interim%20Operations) The Group's three main business segments typically experience higher product demand in the second half of the year, consistent with automotive industry practices, driven by exhibitions and promotional activities in September and October; consequently, the Group usually reports higher revenue and segment results in H2, though revenue for the 12 months ended June 30, 2025, decreased due to adverse market conditions and the repositioning of the commercial vehicles segment - Product demand for the Group's three main business segments is typically higher in the second half of the year, consistent with automotive industry practice[207](index=207&type=chunk)[210](index=210&type=chunk) - For the 12 months ended June 30, 2025, the Group's three main reportable segments generated revenue of **RMB 7,997,074,000**, a decrease from the same period in 2024, primarily due to adverse market conditions and the repositioning strategy of the commercial vehicles segment[208](index=208&type=chunk)[210](index=210&type=chunk) [Pledge of Assets](index=38&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group's bank deposits of RMB 636,042,000 and bills receivable discounted with recourse of RMB 1,929,774,000 were pledged to banks, primarily as collateral for bank, bills payable, and bills discounting financing - 2025 June 30 Asset Pledge Situation | Pledged Asset Type | Amount (RMB yuan) | Purpose of Pledge | | :--- | :--- | :--- | | Bank Deposits | 636,042,000 | Collateral for bank, bills payable, and bills discounting financing | | Bills Receivable Discounted with Recourse (undue) | 1,929,774,000 | Collateral for bank, bills payable, and bills discounting financing | [Exposure to Fluctuation in Exchange Rates](index=39&type=section&id=Exposure%20to%20Fluctuation%20in%20Exchange%20Rates) As of June 30, 2025, the Group held bank deposits and trade and other receivables equivalent to RMB 14,965,000 in HKD, USD, and EUR; the Group considers its exposure to exchange rate fluctuations reasonable compared to its RMB-denominated assets, liabilities, and major transactions, and will continue to monitor and formulate appropriate strategies - As of June 30, 2025, the Group held bank deposits, trade receivables, and other receivables equivalent to **RMB 14,965,000** in HKD, USD, and EUR[213](index=213&type=chunk)[216](index=216&type=chunk) - The Group considers its exposure to exchange rate and currency fluctuations reasonable and will continue to monitor foreign exchange risks and formulate appropriate strategies[213](index=213&type=chunk)[216](index=216&type=chunk) [Commitments](index=39&type=section&id=Commitments) As of June 30, 2025, the Group had outstanding capital commitments of RMB 95,027,000 for the acquisition of property, plant, and equipment, which were contracted but not yet provided for in the financial statements - 2025 June 30 Capital Commitments | Commitment Type | Amount (RMB yuan) | | :--- | :--- | | Acquisition of property, plant and equipment | 95,027,000 | [Contingent Liabilities](index=39&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[215](index=215&type=chunk)[218](index=218&type=chunk) [Disclosure of Interests](index=40&type=section&id=DISCLOSURE%20OF%20INTERESTS) This section discloses the interests of the Company's directors, chief executive, and substantial shareholders in the Company's shares and underlying shares as of June 30, 2025, noting that several directors hold shares, and key shareholders include Dragon Hill, Ms. Guan Duoyan, Wuling (Hong Kong) Holdings Limited, Wuling Motors (Hong Kong) Company Limited, and Guangxi Automobile Group Co Ltd; additionally, all unexercised share options under the share option scheme lapsed due to unmet performance targets - As of June 30, 2025, several directors and the chief executive held shares in the Company, with Mr. Yuan Zhijun holding **3,000,000 shares (0.09%)**[220](index=220&type=chunk) - Substantial shareholders include Dragon Hill Development Limited (**10.81%**), Ms. Guan Duoyan (**11.03%**), Wuling (Hong Kong) Holdings Limited (**56.54%**), Wuling Motors (Hong Kong) Company Limited (**56.54%**), and Guangxi Automobile Group Co Ltd (**56.54%**)[228](index=228&type=chunk) - All unexercised share options under the share option scheme lapsed on December 31, 2024, as the Group failed to meet the stipulated performance targets[236](index=236&type=chunk)[237](index=237&type=chunk) [Directors' and Chief Executive's Interests in Shares, Underlying Shares and Debentures](index=40&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVE'S%20INTERESTS%20IN%20SHARES,%20UNDERLYING%20SHARES%20AND%20DEBENTURES) As of June 30, 2025, the Company's directors and chief executive held shares in the Company, with Mr. Yuan Zhijun holding 3,000,000 shares, Mr. Ye Xiang holding 1,030,300 shares, Mr. Wei Mingfeng holding 270,000 shares, and Mr. Yang Jie holding 390,000 shares - Directors' and Chief Executive's Shareholdings | Name | Capacity | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Yuan Zhijun | Beneficial owner | 3,000,000 | 0.09% | | Mr. Ye Xiang | Beneficial owner | 1,030,300 | 0.03% | | Mr. Wei Mingfeng | Beneficial owner | 270,000 | 0.01% | | Mr. Yang Jie | Beneficial owner | 390,000 | 0.01% | [Directors' Rights to Acquire Shares and Debentures](index=41&type=section&id=DIRECTORS'%20RIGHTS%20TO%20ACQUIRE%20SHARES%20AND%20DEBENTURES) During the six months ended June 30, 2025, neither the Company nor its subsidiaries, fellow subsidiaries, or holding company entered into any arrangements enabling directors to benefit from acquiring shares or debentures of the Company or any other entity - During the six months ended June 30, 2025, neither the Company nor its related parties entered into any arrangements enabling directors to benefit from acquiring shares or debentures of the Company or any other entity[224](index=224&type=chunk)[226](index=226&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company](index=41&type=section&id=SUBSTANTIAL%20SHAREHOLDERS'%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20SHARES%20AND%20UNDERLYING%20SHARES%20OF%20THE%20COMPANY) As of June 30, 2025, the Company's substantial shareholders included Dragon Hill Development Limited, Ms. Guan Duoyan, Wuling (Hong Kong) Holdings Limited, Wuling Motors (Hong Kong) Company Limited, and Guangxi Automobile Group Co Ltd, with Guangxi Automobile Group Co Ltd indirectly holding 56.54% of the Company's shares through its wholly-owned subsidiaries - Substantial Shareholders' Shareholdings | Shareholder Name/Entity | Capacity | Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Dragon Hill Development Limited | Beneficial owner | Corporate | 356,622,914 | 10.81% | | Ms. Guan Duoyan | Interest in controlled corporation/Beneficial owner/Interest of spouse | Corporate/Individual/Family | 363,731,984 | 11.03% | | Wuling (Hong Kong) Holdings Limited | Beneficial owner | Corporate | 1,864,698,780 | 56.54% | | Wuling Motors (Hong Kong) Company Limited | Interest in controlled corporation | Corporate | 1,864,698,780 | 56.54% | | Guangxi Automobile Holdings Limited | Interest in controlled corporation | Corporate | 1,864,698,780 | 56.54% | - Guangxi Automobile Group Co Ltd is deemed to have an interest in the shares held by Wuling (Hong Kong) Holdings Limited through its wholly-owned subsidiaries, Wuling Motors (Hong Kong) Company Limited and Wuling (Hong Kong) Holdings Limited[235](index=235&type=chunk) [Share Option Scheme](index=43&type=section&id=SHARE%20OPTION%20SCHEME) The Company's share option scheme, adopted on November 10, 2021, aimed to recognize employee contributions, incentivize performance, and establish a profit-sharing mechanism; however, all unexercised share options under the scheme lapsed on December 31, 2024, as the Group failed to meet the stipulated performance targets - The share option scheme aimed to recognize and reward participants' contributions, encourage optimal performance and efficiency, and establish a mechanism for shared benefits and risks[233](index=233&type=chunk)[236](index=236&type=chunk) - All unexercised share options lapsed on December 31, 2024, as the Group failed to meet the performance targets stipulated by the share option scheme[236](index=236&type=chunk)[237](index=237&type=chunk) [Other Information](index=45&type=section&id=OTHER%20INFORMATION) This section covers other significant information for the Company in H1 2025, including the Board's decision not to declare an interim dividend, no purchases, redemptions, or sales of listed securities by the Company or its subsidiaries, full compliance with the Corporate Governance Code, and disclosures regarding the Audit and Remuneration Committees, human resources and remuneration policies, and changes in the Chief Executive Officer - The Board does not recommend the declaration of an interim dividend for the six months ended June 30, 2025[239](index=239&type=chunk)[243](index=243&type=chunk) - Neither the Company nor any of its subsidiaries purchased, redeemed, or sold any listed securities of the Company during the six months ended June 30, 2025[240](index=240&type=chunk)[244](index=244&type=chunk) - The Company confirms full compliance with all code provisions of the Corporate Governance Code as set out in Appendix 14 of the Listing Rules of the Stock Exchange[241](index=241&type=chunk)[245](index=245&type=chunk) - Mr. Song Wei resigned as the Chief Executive Officer due to a management rotation plan by the parent company, effective February 18, 2025, and was succeeded by the current Chief Executive Officer, Mr. Yang Jie[255](index=255&type=chunk)[258](index=258&type=chunk) [Interim Dividend](index=45&type=section&id=INTERIM%20DIVIDEND) The Board does not recommend the declaration of an interim dividend for the six months ended June 30, 2025, consistent with the same period in 2024 - The Board does not recommend the declaration of an interim dividend for the six months ended June 30, 2025 (2024: nil)[239](index=239&type=chunk)[243](index=243&type=chunk) [Purchase, Redemption and Sale of Listed Securities of the Company](index=45&type=section&id=PURCHASE,%20REDEMPTION%20AND%20SALE%20OF%20LISTED%20SECURITIES%20OF%20THE%20COMPANY) During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any listed securities of the Company, consistent with the same period in 2024 - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any listed securities of the Company (2024: nil)[240](index=240&type=chunk)[244](index=244&type=chunk) [Corporate Governance](index=45&type=section&id=CORPORATE%20GOVERNANCE) The Company recognizes the importance of good corporate governance and confirms full compliance with all code provisions of the Corporate Governance Code as set out in Appendix 14 of the Listing Rules of the Stock Exchange for the six months ended June 30, 2025 - The Company confirms full compliance with all code provisions of the Corporate Governance Code as set out in Appendix 14 of the Listing Rules of the Stock Exchange[241](index=241&type=chunk)[245](index=245&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=45&type=section&id=COMPLIANCE%20WITH%20MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) The Company has adopted a code of conduct for directors' securities transactions no less stringent than the Model Code, and all directors have confirmed compliance with both the Company's code and the Model Code for the six months ended June 30, 2025 - The Company has adopted its own code of conduct for directors' securities transactions, with terms no less stringent than the Model Code[242](index=242&type=chunk)[246](index=246&type=chunk) - All Directors confirmed compliance with both the Company's code and the Model Code for the six months ended June 30, 2025[242](index=242&type=chunk)[246](index=246&type=chunk) [Audit Committee](index=46&type=section&id=AUDIT%20COMMITTEE) The Company's Audit Committee, comprising three independent non-executive directors and one non-executive director, is responsible for reviewing and overseeing the Group's financial reporting, internal control, and risk management systems; the unaudited interim financial information for the six months ended June 30, 2025, has been reviewed by KPMG and the Audit Committee - The Audit Committee comprises three independent non-executive directors (with Mr. Ye Xiang as Chairman) and one non-executive director[247](index=247&type=chunk)[250](index=250&type=chunk) - The Audit Committee is responsible for reviewing and monitoring the Group's financial reporting, internal control, and risk management systems[247](index=247&type=chunk)[250](index=250&type=chunk) - The unaudited interim financial information for the six months ended June 30, 2025, has been reviewed by KPMG and the Audit Committee[248](index=248&type=chunk)[250](index=250&type=chunk) [Human Resources and Remuneration Policy](index=46&type=section&id=HUMAN%20RESOURCES%20AND%20REMUNERATION%20POLICY) As of June 30, 2025, the Group had approximately 7,700 employees, with total staff costs decreasing by 9.1% year-on-year; the Group prioritizes human resource management, maintaining comprehensive policies covering remuneration structure, training, and employee development, with remuneration policies reviewed annually by the Remuneration Committee - As of June 30, 2025, the Group had approximately **7,700 employees**[249](index=249&type=chunk)[251](index=251&type=chunk) - Staff Costs | Indicator | 2025 H1 (RMB yuan) | 2024 H1 (RMB yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Total Staff Costs | 353,558,000 | 388,864,000 | -9.1% | - The Remuneration Committee proposes and approves remuneration policies, structures, and packages for executive directors and senior management[253](index=253&type=chunk)[257](index=257&type=chunk) [Change of Chief Executive Officer](index=47&type=section&id=CHANGE%20OF%20CHIEF%20EXECUTIVE%20OFFICER) Mr. Song Wei resigned as the Company's Chief Executive Officer, effective February 18, 2025, due to a management rotation plan implemented by the parent company, and was succeeded by the current Chief Executive Officer, Mr. Yang Jie - Mr. Song Wei resigned as the Company's Chief Executive Officer, effective **February 18, 2025**, due to a management rotation plan by the parent company[255](index=255&type=chunk)[258](index=258&type=chunk) - His position was succeeded by the current Chief Executive Officer, Mr. Yang Jie[255](index=255&type=chunk)[258](index=258&type=chunk) [Approval of Interim Report](index=47&type=section&id=APPROVAL%20OF%20INTERIM%20REPORT) This interim report and the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, were approved and authorized for issue by the Board on August 26, 2025 - This interim report and the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, were approved and authorized for issue by the Board on **August 26, 2025**[256](index=256&type=chunk)[259](index=259&type=chunk) [Report on Review of Condensed Consolidated Financial Statements](index=48&type=section&id=REPORT%20ON%20REVIEW%20OF%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) KPMG conducted a review of Wuling Motors Holdings Limited's condensed consolidated financial statements for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410; the review concluded that nothing came to their attention to suggest that the interim financial report is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 - KPMG has reviewed this interim financial report in accordance with Hong Kong Standard on Review Engagements 2410[260](index=260&type=chunk)[264](index=264&type=chunk)[262](index=262&type=chunk)[266](index=266&type=chunk) - The review concluded that nothing came to their attention to suggest that the interim financial report is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[265](index=265&type=chunk)[267](index=267&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=50&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS) This condensed consolidated statement of profit or loss presents Wuling Motors Holdings Limited's unaudited financial results for the six months ended June 30, 2025, with total revenue of RMB 4,025,400,000, gross profit of RMB 483,347,000, profit for the period of RMB 85,809,000, and basic earnings per share of RMB 1.20 cents - Condensed Consolidated Statement of Profit or Loss Summary (Six Months Ended June 30, 2025) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 4,025,400 | 3,946,324 | | Cost of Sales and Services | (3,542,053) | (3,520,500) | | Gross Profit | 483,347 | 425,824 | | Other Income | 99,297 | 136,879 | | Other Gains and Losses | 6,770 | (22,603) | | Selling and Distribution Costs | (38,854) | (52,696) | | General and Administrative Expenses | (177,610) | (212,483) | | R&D Expenses | (184,154) | (129,117) | | Share of Results of Associates | (39,871) | (59,928) | | Share of Results of Joint Ventures | 5,763 | (1,283) | | Finance Costs | (50,532) | (59,858) | | Profit Before Taxation | 97,583 | 22,397 | | Income Tax Expense | (11,774) | (1,272) | | Profit for the Period | 85,809 | 21,125 | | Profit Attributable to Owners of the Company | 39,416 | 1,586 | | Non-controlling Interests | 46,393 | 19,539 | | Basic Earnings Per Share | RMB 1.20 cents | RMB 0.05 cents | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=51&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS%20AND%20OTHER%20COMPREHENSIVE%20INCOME) This condensed consolidated statement of profit or loss and other comprehensive income presents Wuling Motors Holdings Limited's financial performance for the six months ended June 30, 2025, with a profit for the period of RMB 85,809,000 and net other comprehensive expenses of RMB 6,118,000, resulting in a total comprehensive income for the period of RMB 79,691,000 - Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (Six Months Ended June 30, 2025) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 85,809 | 21,125 | | Revaluation Surplus Arising from Change in Property, Plant and Equipment and Right-of-Use Assets to Investment Properties | 3,513 | 7,337 | | Equity Investments at Fair Value Through Other Comprehensive Income — Net Change in Fair Value Reserve | (6,001) | – | | Exchange Differences Arising from Translation of Operations Outside Mainland China | (4,680) | (793) | | Bills Receivable at Fair Value Through Other Comprehensive Income — Net Change in Fair Value Reserve | 1,050 | 11,071 | | Other Comprehensive (Expenses) Income for the Period | (6,118) | 17,615 | | Total Comprehensive Income for the Period | 79,691 | 38,740 | | Attributable to Owners of the Company | 33,861 | 12,003 | | Non-controlling Interests | 45,830 | 26,737 | [Condensed Consolidated Statement of Financial Position](index=52&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) This condensed consolidated statement of financial position presents Wuling Motors Holdings Limited's unaudited financial position as of June 30, 2025, with total assets of RMB 14,447,828,000, primarily comprising current assets; net current assets significantly improved to RMB 557,144,000 from year-end 2024, total liabilities were RMB 11,362,586,000, and equity attributable to owners of the Company was RMB 1,992,026,000 - Condensed Consolidated Statement of Financial Position Summary (As of June 30, 2025) | Indicator | 2025 June 30 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 4,029,991 | 4,162,391 | | Current Assets | 10,417,837 | 9,606,525 | | Current Liabilities | 9,860,693 | 9,532,503 | | Net Current Assets | 557,144 | 74,022 | | Non-current Liabilities | 1,501,893 | 1,195,363 | | Net Assets | 3,085,242 | 3,041,050 | | Equity Attributable to Owners of the Company | 1,992,026 | 1,973,393 | | Non-controlling Interests | 1,093,216 | 1,067,657 | [Condensed Consolidated Statement of Changes in Equity](index=54&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) This condensed consolidated statement of changes in equity illustrates Wuling Motors Holdings Limited's equity movements for the six months ended June 30, 2025, showing a profit attributable to owners of the Company of RMB 39,416,000 and net other comprehensive expenses resulting in a total comprehensive income of RMB 33,861,000, alongside changes from dividends paid to non-controlling interests and declared dividends - Condensed Consolidated Statement of Changes in Equity Summary (Six Months Ended June 30, 2025) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Balance at January 1 (Attributable to Owners of the Company) | 1,973,393 | 1,934,858 | | Profit for the Period (Attributable to Owners of the Company) | 39,416 | 1,586 | | Other Comprehensive (Expenses) Income for the Period (Attributable to Owners of the Company) | (5,555) | 10,417 | | Total Comprehensive Income for the Period (Attributable to Owners of the Company) | 33,861 | 12,003 | | Dividends Recognized as Distributed to Non-controlling Interests | (20,271) | (17,317) | | Dividends Declared | (15,228) | (15,057) | | Balance at June 30 (Attributable to Owners of the Company) | 1,992,026 | 1,922,528 |

該重組完成後，廣西汽車之 80%股權將由廣西國控持有，而廣西汽車仍保持 為本公司控股股東，持有本公司已發行股本約 56.54%。 自願性公告 關於本公司間接控股股東之股東持股比例變動 本公佈乃五菱汽車集團控股有限公司（「本公司」）自願作出。 本公司接獲本公司間接控股股東—廣西汽車集團有限公司（「廣西汽車」） 通知，根據廣西壯族自治區黨委及廣西壯族自治區人民政府相關政策，廣西 壯族自治區人民政府國有資產監督管理委員會（「廣西國資委」）將其持有 廣西汽車之 80%股權，將以零對價方式劃轉至廣西國控資本運營集團有限公 司（「廣西國控」）（「該重組」）。 廣西國控乃廣西國資委全資擁有公司，廣西國控作為自治區層面國有資本投 資運營公司，受廣西國資委委託履行出資人之職責。經本次國有股權無償劃 轉，廣西國控將承接廣西國資委持有廣西汽車之 80%股權，其目的為優化國 有資本佈局。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容而產生或因倚賴該等內容而引致的任 何損失承擔任何責任。 於本公佈日期，董事會包括執行董事袁智軍 ...

Group 1 - SAIC-GM-Wuling and Huawei have upgraded their strategic partnership to deepen cooperation in areas of assisted driving, intelligent cockpit, and smart manufacturing [1] - The collaboration aims to jointly develop new models equipped with Huawei's advanced intelligent technologies, promoting high-quality development in the automotive industry's intelligence and connectivity [1] Group 2 - FAW Hongqi has officially partnered with Huawei, planning to launch models utilizing Huawei's full-stack solutions by 2026, starting with the Hongqi 9 series [3] - This partnership indicates that major state-owned automotive groups in China are joining Huawei's ecosystem, enhancing their competitive edge in the market [3] Group 3 - Traditional automakers possess mature supply chain systems and extensive vehicle development experience, but struggle to adapt to the fast-evolving demands of software-defined vehicles [4] - Huawei's strengths lie in its robust ICT technology foundation, including chips, computing power, operating systems, communication, and AI algorithms, enabling rapid software ecosystem development and iteration [5] Group 4 - The collaboration with Huawei is seen as a pragmatic choice for automakers in the current competitive environment, as failing to partner with a strong technology provider could lead to losing market share [5] - The long-term strategy regarding self-developed intelligent driving and cockpit technologies will depend on each automaker's strategic positioning and technological commitment [5]

Core Viewpoint - Wuling Motors reported a total revenue of approximately 4.025 billion RMB for the first half of 2025, representing a year-on-year increase of 2% [1][2]. Financial Performance - Gross profit for the same period was approximately 483.3 million RMB, reflecting a year-on-year increase of about 13.5% [1][2]. - The gross margin improved from 10.8% in the same period last year to 12% [1]. - Net profit for the first half of 2025 reached approximately 85.8 million RMB, a significant increase of 306% compared to the previous year [4]. Revenue Breakdown - The automotive parts business generated approximately 2.84 billion RMB in revenue, a year-on-year growth of 5.2% [4]. - The automotive power systems segment reported total revenue of about 859 million RMB, a decrease of 4.8% year-on-year [4]. - The commercial vehicle segment achieved total revenue of approximately 313 million RMB [4]. Client Acquisition and Market Expansion - Wuling Motors secured 46 clients and a total of 125 project designations in the first half of 2025 [4]. - New clients acquired include SAIC Passenger Cars, Yutong, and Weichai New Energy, in addition to existing clients such as SGMW, Great Wall, and BAIC Foton [4]. - The company leveraged its overseas bases to win projects in markets such as Vietnam, Indonesia, and Turkey [4].

Core Viewpoint - The Chinese automotive industry is experiencing a strong production and sales performance, but profit margins are under pressure, making core technology, brand competitiveness, and global layout crucial for companies to navigate industry challenges [1] Financial Performance - Wuling Motors reported a revenue of 4.025 billion yuan in the first half of the year, a year-on-year increase of 2.0%, with gross profit rising by 13.5% to 483 million yuan, leading to an increase in gross margin from 10.8% to 12.0% [3] - The net profit for the first half of the year was 85.81 million yuan, a year-on-year increase of 306%, with attributable net profit reaching 39.42 million yuan [3] - The company effectively controlled costs, reducing SG&A expenses by 18.37%, which now account for 5.38% of revenue, while maintaining stable R&D investment at 4.57% of revenue, an increase of 1.3 percentage points [3] Short-term Catalysts - The overall industry fundamentals are improving, with policies aimed at boosting domestic demand and optimizing supply, which are expected to enhance profit margins for downstream automakers [6] - Wuling Motors is positioned to benefit directly from these trends, with the recent financial results indicating a potential bottoming out of performance and expectations for improved profitability [6] Mid-term Growth - Wuling Motors is focusing on high-end and international breakthroughs in its auto parts business, having secured 46 customers and 125 project contracts in the first half of the year [7] - The company has successfully developed high-value products and is expanding its market presence with significant growth in overseas revenue, which increased by 350% to 238 million yuan, now accounting for 5.9% of total revenue [7][8] Long-term Ecological Value - Wuling Motors is evolving from merely providing technical support to becoming a builder of industrial ecosystems, with a focus on smart driving products and diverse solutions [9] - The company is tapping into the trillion-level smart connected market, which is expected to reshape its competitiveness and long-term growth potential [9] Strategic Achievements - Wuling Motors has achieved significant results through its strategy of "stabilizing growth, improving efficiency, and opening new avenues," leading to a recovery in gross margins and flexible profit growth [10] - Backed by Guangxi Automobile Group, the company is accelerating its strategic transformation, with expectations for technology to convert into increased orders and performance [10]

Group 1 - The core point of the article is that Wuling is launching the Bingguo S electric vehicle at a competitive price range of 68,800 to 81,800 yuan, aiming to strengthen its position in the entry-level electric vehicle market, which is becoming increasingly competitive due to price-cutting strategies from various brands [2][3] - The entry-level electric vehicle market under 100,000 yuan is seeing intensified competition, with several brands like Geely, BYD, and Jihu introducing models priced below this threshold, driven by the continuation of the new energy vehicle tax exemption policy post-2024 [2][3] - Wuling is focusing on enhancing the cost-performance ratio of its Bingguo series, which includes Bingguo, Bingguo S, and Bingguo PLUS, with the Bingguo S priced lower than the higher-positioned Bingguo PLUS while maintaining similar product capabilities [2] Group 2 - Wuling has appointed Chinese actress Meng Ziyi as the global ambassador for the Bingguo family, targeting the young female demographic, which is projected to account for over 45% of car purchases by 2025 in the new energy vehicle market [3] - The Bingguo S features user-friendly attributes for pet owners, such as a no-sense entry function and a dedicated pet mode, which enhances its appeal to consumers [3] - The Bingguo series has achieved sales of 550,000 units in two years, with the Bingguo S aiming to become the next million-unit product for Wuling [3] Group 3 - Challenges exist in the small car market, which is a limited segment, and Wuling must carefully manage product positioning and pricing strategies to avoid internal competition among its own models [4]

Core Viewpoint - Wuling Motors (00305) reported a mid-year performance for 2025, showing a modest revenue growth despite challenging economic conditions and strategic repositioning in its commercial vehicle segment [1] Financial Performance - Total revenue was approximately 4.025 billion, representing a year-on-year increase of 2% [1] - Gross profit reached around 483 million, reflecting a year-on-year increase of 13.5% [1] - Profit attributable to shareholders was 39.416 million, marking a significant year-on-year increase of approximately 23.85 times [1] - Earnings per share stood at 1.2 cents [1] Business Segments - The automotive power system and commercial vehicle segments faced adverse impacts due to the economic environment and strategic changes [1] - However, the automotive parts and other industrial services segments benefited from a rebound in business from major clients and contributions from new clients, leading to overall revenue growth [1]

Core Viewpoint - Wuling Motors reported a revenue increase of 2.0% year-on-year for the first half of 2025, driven by improved gross margins and effective management strategies [1] Financial Performance - Total revenue for the first half of 2025 reached approximately 4.03 billion RMB, with a gross profit of about 480 million RMB, reflecting a 13.5% increase year-on-year [1] - The gross margin improved from 10.8% in the previous year to 12.0% [1] - Net profit surged by 306.2% to 85.81 million RMB, attributed to enhanced gross margins and reduced operational costs [1] Business Segments - The automotive parts and other industrial services segment generated approximately 2.84 billion RMB in revenue, a 5.2% increase year-on-year, with an operating profit of about 77.87 million RMB, up 2.6% [1][2] - The power system division achieved revenue of approximately 860 million RMB, while the commercial vehicle segment reported total revenue of about 310 million RMB [1] Customer Acquisition and Market Expansion - In the first half of 2025, the automotive parts and services division secured 46 new customers and a total of 125 project allocations, expanding its market presence [2] - The company successfully entered new markets, including partnerships with major brands like SAIC Motor and Zhengzhou Yutong, and established a manufacturing base in Rizhao, Shandong [2] Product Development and Innovation - The company has achieved significant production milestones, with over 2 million sets of micro electric drive axles sold and a second production line for thermal expansion products established [3] - The power system division produced approximately 77,000 engines, with casting revenue increasing by 24.5% year-on-year [3] Future Initiatives - Wuling Motors plans to establish an independent company focused on the development and operation of autonomous driving technology, which is expected to become a significant growth area [4] - The company aims to continue adjusting its product structure, enhance brand competitiveness, and expand its presence in both domestic and international markets [4]