格隆汇8月21日丨新晨动力(01148.HK)发布公告，2025年上半年，集团录得未经审核收益总额约人民币 28.04亿元，较去年同期约人民币26.2亿元增加约7.06%，主要源于期内增程汽油发动机的交易额增加。 发动机的销量由2024年上半年约21万台增加约12.38%至2025年上半年约23.6万台，主要源于增程汽油发 动机的交易额增加。发动机业务分部方面，集团的分部收益录得约9.98%的增幅，由2024年上半年约人 民币22.21亿元增加至2025年上半年约人民币24.43亿元，主要源于增程汽油发动机的交易额增加。集团 于2025年上半年录得公司拥有人应占未经审核溢利约人民币1649万元，较2024年同期约人民币2213万元 减少约25.49%。 ...

[Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's profit and basic EPS decreased despite revenue growth, primarily due to reduced impairment loss reversals and increased administrative and R&D expenses Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,804,434 | 2,619,532 | +7.06% | | Cost of sales | (2,672,046) | (2,509,663) | +6.47% | | Gross profit | 132,388 | 109,869 | +20.49% | | Other income | 27,264 | 26,748 | +1.93% | | Net impairment losses | (166) | 49,117 | -100.34% | | Other gains and losses | (1,809) | (588) | +207.65% | | Selling and distribution expenses | (14,257) | (16,559) | -13.90% | | Administrative expenses | (89,856) | (81,803) | +9.84% | | Finance costs | (19,774) | (27,714) | -28.65% | | Profit before tax | 17,747 | 23,811 | -25.47% | | Income tax expense | (1,254) | (1,686) | -25.62% | | Profit for the period | 16,493 | 22,125 | -25.49% | | Basic earnings per share (RMB) | 0.013 | 0.017 | -23.53% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets decreased while net assets slightly increased, with net current assets turning positive due to reduced trade and other receivables and controlled current liabilities Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current assets | 2,122,531 | 2,248,001 | -5.60% | | Current assets | 2,930,417 | 3,229,708 | -9.26% | | **Total assets** | **5,052,948** | **5,477,709** | **-7.76%** | | **Liabilities** | | | | | Current liabilities | 2,919,842 | 3,293,002 | -11.33% | | Non-current liabilities | 362,423 | 430,553 | -15.82% | | **Net assets** | **1,770,683** | **1,754,154** | **+0.94%** | | Net current assets/(liabilities) | 10,575 | (63,294) | Turned positive | | Bank balances and cash | 92,457 | 85,570 | +8.05% | | Trade and other receivables | 2,110,207 | 2,528,579 | -16.54% | | Trade and other payables | 611,642 | 566,350 | +7.99% | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, accounting policies, segment information, and specific changes in assets and liabilities, providing supplementary information for understanding the Group's financial position and operating results [1. Basis of Preparation](index=5&type=section&id=1.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules, presented in RMB - Financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules[8](index=8&type=chunk) - All financial data are presented in RMB[9](index=9&type=chunk) [2. Principal Accounting Policies](index=5&type=section&id=2.%20Principal%20Accounting%20Policies) The financial statements are prepared on a historical cost basis, with new HKAS 21 (Revised) having no significant impact, and future standards not expected to cause material effects - Financial statements are prepared on a historical cost basis, with certain financial instruments measured at fair value[10](index=10&type=chunk) - The adoption of HKAS 21 (Revised) "Lack of Exchangeability" has no significant impact on the financial statements[11](index=11&type=chunk) - Newly issued and amended HKFRSs not yet effective are not expected to have a significant impact on the financial statements[12](index=12&type=chunk) [3. Revenue and Segment Information](index=5&type=section&id=3.%20Revenue%20and%20Segment%20Information) Group revenue primarily from gasoline and diesel engines and engine components, with all external customer revenue from China, and operating results reviewed by product type [3.1 Segment Revenue and Segment Results](index=6&type=section&id=3.1%20Segment%20Revenue%20and%20Segment%20Results) Gasoline engine segment revenue and results grew significantly, diesel engine segment turned profitable, while engine components revenue and results declined due to changing customer demand Segment Revenue and Results Analysis | Segment | June 30, 2025 Revenue (RMB '000) | June 30, 2024 Revenue (RMB '000) | Revenue YoY Change (%) | June 30, 2025 Results (RMB '000) | June 30, 2024 Results (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Gasoline Engines | 2,389,029 | 2,174,521 | +9.86% | 74,051 | 30,439 | | Diesel Engines | 53,832 | 46,652 | +15.39% | 5,929 | (2,150) | | Engine Components | 361,573 | 398,359 | -9.23% | 52,408 | 81,580 | | **Total Segment and Consolidated** | **2,804,434** | **2,619,532** | **+7.06%** | **132,388** | **109,869** | - No inter-segment sales occurred during the period[14](index=14&type=chunk) [3.2 Segment Assets and Liabilities](index=7&type=section&id=3.2%20Segment%20Assets%20and%20Liabilities) Total assets and liabilities by reportable operating segment are not presented as the Board reviews them on a consolidated basis - Detailed financial information on segment assets and liabilities is not presented[17](index=17&type=chunk) [3.3 Geographical Information](index=7&type=section&id=3.3%20Geographical%20Information) The Group's majority operations and non-current assets are located in China, where all external customer revenue is generated - The Group's principal operations and non-current assets are located in China[18](index=18&type=chunk) - All external customer revenue is generated from China[18](index=18&type=chunk) [4. Other Income](index=7&type=section&id=4.%20Other%20Income) Other income slightly increased, driven by significant growth in bad debts recovered and compensation income, offsetting reduced government grants and recoverable VAT Other Income Components | Item | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Bank interest income | 1,125 | 966 | | Bad debts recovered | 5,412 | – | | Additional recoverable VAT granted by local tax bureau | 4,034 | 6,379 | | Compensation income | 5,700 | – | | Government grants | 3,883 | 11,226 | | Imputed interest income from loan to a shareholder | 558 | 535 | | Rental income under operating leases | 4,349 | 4,560 | | Utility income | 2,203 | 3,082 | | **Total** | **27,264** | **26,748** | - Other income increased slightly by **1.93%** year-on-year[47](index=47&type=chunk) [5. Net Impairment Losses / Reversals of Impairment Losses](index=7&type=section&id=5.%20Net%20Impairment%20Losses%20%2F%20Reversals%20of%20Impairment%20Losses) Net impairment losses were recognized this period, a stark contrast to last year's large reversals, primarily impacting trade and other receivables and amounts due from related companies Net Impairment Losses | Item | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade and other receivables | (166) | 11,779 | | Amounts due from related companies | – | 37,338 | | **Total** | **(166)** | **49,117** | - Impairment loss reversals significantly decreased, turning from a reversal of approximately **RMB 49.12 million** in the first half of 2024 to an impairment loss of approximately **RMB 0.20 million** recognized in the first half of 2025[48](index=48&type=chunk) [6. Other Gains and Losses](index=7&type=section&id=6.%20Other%20Gains%20and%20Losses) This period recorded a larger loss in other gains and losses, mainly due to increased losses from the disposal of property, plant, and equipment Other Gains and Losses Components | Item | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Net foreign exchange gains | 7 | – | | Gains on disposal of other materials | 2,418 | 2,120 | | Losses on disposal of property, plant and equipment | (3,577) | (1,308) | | Net losses from receivables measured at fair value through other comprehensive income | (657) | (1,400) | | **Total** | **(1,809)** | **(588)** | - Other gains and losses increased from a loss of **RMB 0.59 million** in the first half of 2024 to a loss of **RMB 1.81 million** in the first half of 2025, primarily due to losses on disposal of fixed assets[48](index=48&type=chunk) [7. Profit Before Tax](index=8&type=section&id=7.%20Profit%20Before%20Tax) Profit before tax decreased by 25.47%, influenced by reduced impairment reversals and increased administrative and R&D expenses, while employee benefits and depreciation remained stable Profit Before Tax Components | Item | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Total staff costs | 66,044 | 62,663 | | Total depreciation and amortisation | 131,851 | 130,908 | | **Profit before tax** | **17,747** | **23,811** | - Profit before tax decreased by **25.47%**, mainly due to reduced impairment reversals and increased administrative and R&D expenses[49](index=49&type=chunk) [8. Income Tax Expense](index=8&type=section&id=8.%20Income%20Tax%20Expense) Income tax expense decreased by 26.04%, mainly due to reduced deferred tax credits from increased intangible asset amortization, with some subsidiaries enjoying preferential tax rates Income Tax Expense Components | Item | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | PRC corporate income tax – current tax | 1,977 | 662 | | PRC corporate income tax – deferred tax | (723) | 1,024 | | **Total** | **1,254** | **1,686** | - Mianyang Xinchen is eligible for a reduced corporate income tax rate of **15%** from 2021 to 2030[22](index=22&type=chunk) - Xinchen Power Machinery (Shenyang) Co., Ltd., as a high-tech enterprise, enjoys a preferential corporate income tax rate of **15%**[23](index=23&type=chunk) [9. Dividends](index=9&type=section&id=9.%20Dividends) The Company neither paid nor declared any dividends for the periods ended June 30, 2025 and 2024, with no proposed dividends since the reporting period end - The Company did not pay or declare any interim dividends during the reporting period[25](index=25&type=chunk)[66](index=66&type=chunk) [10. Earnings Per Share](index=9&type=section&id=10.%20Earnings%20Per%20Share) Basic earnings per share decreased due to lower profit for the period, with no diluted earnings per share presented as there were no potential dilutive ordinary shares Basis for Earnings Per Share Calculation | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (RMB '000) | 16,493 | 22,125 | | Weighted average number of ordinary shares | 1,282,211,794 | 1,282,211,794 | | **Basic earnings per share (RMB)** | **0.013** | **0.017** | - Diluted earnings per share are not presented due to the absence of potential dilutive ordinary shares[26](index=26&type=chunk) [11. Movements in Property, Plant and Equipment and Intangible Assets](index=9&type=section&id=11.%20Movements%20in%20Property%2C%20Plant%20and%20Equipment%20and%20Intangible%20Assets) The Group invested in property, plant and equipment to enhance capacity and capitalized R&D costs for new engine technologies, while disposals of assets led to increased losses - Acquisitions of property, plant and equipment amounted to approximately **RMB 689 thousand** (2024: RMB 984 thousand) for capacity enhancement[27](index=27&type=chunk) - Losses on disposal of certain plant and equipment amounted to approximately **RMB 3,577 thousand** (2024: RMB 1,308 thousand)[27](index=27&type=chunk) - Additions to construction in progress amounted to approximately **RMB 11,799 thousand** (2024: RMB 14,211 thousand), primarily for expanding production facilities and capacity[27](index=27&type=chunk) - Development costs for new automobile engine technology knowledge of approximately **RMB 9,592 thousand** (2024: RMB 8,841 thousand) were capitalized to expand the range of gasoline and diesel engine products[28](index=28&type=chunk) [12. Trade and Other Receivables](index=10&type=section&id=12.%20Trade%20and%20Other%20Receivables) Total trade and other receivables significantly decreased, with a reduction in trade receivables due within one month, while credit loss provisions remained stable Trade and Other Receivables Components | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables, net | 1,890,844 | 2,354,559 | | Bills receivable | 176,886 | 122,114 | | Prepayments for raw materials and engine components | 32,930 | 29,820 | | Other receivables | 9,547 | 22,086 | | **Total** | **2,110,207** | **2,528,579** | Ageing Analysis of Trade Receivables (Net of Expected Credit Loss Provision) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 month | 1,780,334 | 2,297,558 | | Over 1 month but within 2 months | 100,842 | 38,965 | | Over 2 months but within 3 months | 5,693 | 5,055 | | Over 3 months but within 6 months | 2,693 | 12,235 | | Over 6 months but within 1 year | 587 | 104 | | Over 1 year | 695 | 642 | | **Total** | **1,890,844** | **2,354,559** | - The provision for expected credit losses on trade receivables was **RMB 294,573 thousand** as of June 30, 2025, largely consistent with **RMB 294,407 thousand** as of December 31, 2024[30](index=30&type=chunk) [13. Amounts Due from Related Companies](index=12&type=section&id=13.%20Amounts%20Due%20from%20Related%20Companies) Amounts due from related companies significantly increased, primarily from Wuliangye Group for trade-related items, with expected credit loss provisions remaining unchanged Analysis of Amounts Due from Related Companies | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-trade related | 648 | 26 | | Trade related | 51,661 | 22,369 | | **Total** | **52,309** | **22,395** | - Trade-related amounts due from Mianyang Xinhua Internal Combustion Engine (Wuliangye Group) increased from zero at the end of 2024 to **RMB 39,015 thousand** as of June 30, 2025[32](index=32&type=chunk) - The provision for expected credit losses on amounts due from related companies was **RMB 267,211 thousand** as of June 30, 2025, consistent with December 31, 2024[32](index=32&type=chunk)[34](index=34&type=chunk) [14. Trade and Other Payables](index=13&type=section&id=14.%20Trade%20and%20Other%20Payables) Total trade and other payables increased, mainly due to growth in trade payables and bills payable, with customer advances (contract liabilities) also rising Trade and Other Payables Components | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade payables | 282,617 | 246,313 | | Bills payable | 254,773 | 242,557 | | Accrued construction costs | 9,029 | 7,688 | | Accrued salaries and welfare | 13,940 | 21,992 | | Customer advances (contract liabilities) | 18,445 | 12,999 | | Warranty provision | 13,671 | 12,307 | | Retention money | 10,594 | 10,552 | | Provision for operating expenses | 5,003 | 4,500 | | Other payables | 3,570 | 7,442 | | **Total** | **611,642** | **566,350** | - The credit period for trade payables and bills payable is generally within **3 months** and **3 to 6 months**, respectively[37](index=37&type=chunk) - Customer advances represent contract liabilities, with the opening balance fully recognized as revenue from goods sold[36](index=36&type=chunk) [15. Amounts Due to Related Companies](index=14&type=section&id=15.%20Amounts%20Due%20to%20Related%20Companies) Total amounts due to related companies increased, driven by a significant rise in trade-related payables to Jinbei (Shenyang) Automobile Co., Ltd. under Brilliance China Group, while Wuliangye Group's trade payables decreased Analysis of Amounts Due to Related Companies | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Brilliance Group trade related | 30,008 | 7,309 | | Wuliangye Group trade related | 28,077 | 38,487 | | Brilliance China Group non-trade related | 1,083 | 1,616 | | **Total** | **59,778** | **48,022** | - Trade-related amounts due to Jinbei (Shenyang) Automobile Co., Ltd. increased from zero at the end of 2024 to **RMB 21,859 thousand** as of June 30, 2025[39](index=39&type=chunk) - Trade-related amounts are interest-free, unsecured, with a credit period of **3 to 6 months**; non-trade related amounts are interest-free, unsecured, and repayable on demand[41](index=41&type=chunk)[42](index=42&type=chunk) [16. Lease Liabilities](index=16&type=section&id=16.%20Lease%20Liabilities) Total lease liabilities decreased, with reductions in amounts due within one year and between two to five years Lease Liabilities Maturity Analysis | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Due within 1 year | 148,582 | 152,270 | | Due in 2nd to 5th year | 203,204 | 275,681 | | **Total minimum lease payments** | **351,786** | **427,951** | | Future finance charges on lease liabilities | (19,455) | (28,009) | | **Present value of lease liabilities** | **332,331** | **399,942** | [17. Share Capital](index=17&type=section&id=17.%20Share%20Capital) The Company's authorized and issued and fully paid share capital remained unchanged during the reporting period - Authorized share capital is **8,000,000,000 shares** with a par value of **HKD 0.01** each[44](index=44&type=chunk) - Issued and fully paid share capital is **1,282,211,794 shares**, presented as **RMB 10,457 thousand** in the condensed consolidated statement of financial position[44](index=44&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's operating results, liquidity, and future strategies, including growth in range-extended gasoline engines, challenges in engine components, and exploration of low-altitude economy and in-house range extender R&D [Business Review](index=18&type=section&id=Business%20Review) First-half revenue growth was driven by range-extended gasoline engines, but engine component revenue declined, with improved gross margin offset by reduced impairment reversals and increased administrative expenses, leading to lower profit - Unaudited total revenue was approximately **RMB 2,804,440 thousand**, a year-on-year increase of approximately **7.06%**, primarily due to increased transaction volume of range-extended gasoline engines[45](index=45&type=chunk) - Engine sales increased by approximately **12.38%** to approximately **236,000 units**, mainly driven by range-extended gasoline engines[45](index=45&type=chunk) - Revenue from the engine components segment decreased by approximately **9.23%**, mainly due to customer demand shifting from traditional engine models to pure electric models[46](index=46&type=chunk) - Gross profit margin increased from approximately **4.19%** in the first half of 2024 to approximately **4.72%** in the first half of 2025, mainly due to higher sales of traditional gasoline and diesel engines with slightly higher gross margins[47](index=47&type=chunk) - Profit for the period decreased by approximately **25.49%** to **RMB 16,490 thousand**, primarily due to reduced impairment reversals and increased administrative and R&D expenses[49](index=49&type=chunk)[50](index=50&type=chunk) [Liquidity and Financial Resources](index=20&type=section&id=Liquidity%20and%20Financial%20Resources) Bank balances and cash increased, as did pledged/restricted bank deposits, with the debt-to-equity ratio decreasing and the gearing ratio slightly rising due to increased bank borrowings Liquidity and Financial Resources Key Data | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Bank balances and cash | 92,457 | 85,570 | | Pledged/restricted bank deposits | 122,258 | 101,422 | | Trade and other payables | 585,060 | 566,350 | | Borrowings due within one year | 484,336 | 446,153 | | Borrowings due after one year | 157,500 | 156,751 | [Pledge of Assets](index=20&type=section&id=Pledge%20of%20Assets) The Group pledged land use rights, buildings, plant and machinery, and bank deposits to secure credit facilities and other borrowings - Land use rights, buildings, plant and machinery with a total value of approximately **RMB 392,510 thousand** (2024 year-end: RMB 290,890 thousand) were pledged to banks[52](index=52&type=chunk) - Bank deposits of approximately **RMB 115,780 thousand** (2024 year-end: RMB 100,590 thousand) were pledged to banks[52](index=52&type=chunk) - No trade receivables were pledged to obtain general bank financing[52](index=52&type=chunk) [Gearing Ratio](index=20&type=section&id=Gearing%20Ratio) The debt-to-equity ratio decreased due to reduced amounts payable to an associate, while the gearing ratio slightly increased due to higher total bank borrowings - The debt-to-equity ratio was approximately **1.85** (2024 year-end: 2.12), with the decrease mainly due to reduced amounts payable to an associate[53](index=53&type=chunk) - The gearing ratio was approximately **36.25%** (2023 year-end: 34.37%), with the slight increase mainly due to higher total bank borrowings during the period[53](index=53&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) The Group has contingent liabilities related to endorsed and discounted bills receivable, but default risk is considered very low as bills are issued and guaranteed by reputable PRC banks - The Group endorsed and discounted certain bills receivable to settle trade and other payables or raise cash[54](index=54&type=chunk) - The default risk is very low as the bills are issued and guaranteed by reputable banks in the PRC[54](index=54&type=chunk) [Capital Commitments](index=21&type=section&id=Capital%20Commitments) The Group's capital commitments remained stable, primarily for acquiring property, plant and equipment, capital injection into an associate, and developing new engines - Total capital commitments amounted to approximately **RMB 125,490 thousand** (2024 year-end: RMB 125,490 thousand)[55](index=55&type=chunk) - Contracted capital commitments of approximately **RMB 90,030 thousand** (2024 year-end: RMB 90,060 thousand) were mainly related to capital expenditures for acquiring property, plant and equipment, capital injection into an associate, and developing new engines[55](index=55&type=chunk) [Foreign Exchange Risk](index=21&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign currency translation risk as some assets and liabilities are denominated in USD and HKD, and will continue to monitor and potentially hedge this risk - The Group's functional currency is RMB, but some assets and liabilities are denominated in USD and HKD, exposing it to foreign currency translation risk[56](index=56&type=chunk) - The Group will continue to monitor foreign exchange risk and may consider hedging when necessary[57](index=57&type=chunk) [Employees and Remuneration Policies](index=21&type=section&id=Employees%20and%20Remuneration%20Policies) Both employee headcount and costs increased, with the Group committed to competitive remuneration based on performance and industry practices - As of June 30, 2025, the Group employed approximately **1,004 employees** (2024: 935 employees)[58](index=58&type=chunk) - Employee costs for the six months ended June 30, 2025, were approximately **RMB 66,040 thousand** (2024: RMB 62,660 thousand)[58](index=58&type=chunk) - Employee remuneration is determined based on performance and is in line with industry practices and market conditions[58](index=58&type=chunk) [Outlook](index=21&type=section&id=Outlook) China's economy and automotive market show positive growth, especially in NEVs and passenger vehicles, with the Group expecting continued growth in range-extended gasoline engines, exploring new NEV component business, low-altitude economy, and in-house range extender R&D - China's GDP grew by **5.3%** in real terms in the first half of 2025, with significant contributions from the automotive manufacturing industry[59](index=59&type=chunk) - Passenger vehicle sales increased by **13.0%** year-on-year, and New Energy Vehicle (NEV) sales rose by **40.3%** year-on-year, accounting for approximately **44.3%** of total sales[60](index=60&type=chunk) - Range-extended electric vehicles (EREVs) continue to be favored in the NEV market, and the Group's joint venture with Li Auto will continue to provide high-quality and stable supply of range-extended gasoline engines[61](index=61&type=chunk) - Engine component business sales declined, and the Group is exploring other new customers and new NEV component businesses[62](index=62&type=chunk) - China's full-year automobile sales for 2025 are projected to grow by **5.0%** year-on-year to **34.04 million units**, primarily driven by NEVs and passenger vehicles[64](index=64&type=chunk) - The Company is exploring new investment opportunities to expand its product portfolio and diversify revenue sources, including the application of range extenders in intercity pure electric light logistics vehicles[64](index=64&type=chunk) - A research team has been established to focus on the low-altitude economy, exploring business transformation potential, and has developed its own new range extender, expected to reduce reliance on third-party technology in the future[65](index=65&type=chunk) [Other Information](index=23&type=section&id=Other%20Information) This section covers corporate governance, including interim dividend policy, trading of listed securities, compliance with corporate governance code, financial statement review, and Board composition [Interim Dividend](index=23&type=section&id=Interim%20Dividend) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend[66](index=66&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=Purchase%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - Neither the Company nor its subsidiaries engaged in the purchase, sale, or redemption of listed securities during the reporting period[67](index=67&type=chunk) [Compliance with Corporate Governance Code](index=23&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules for the six months ended June 30, 2025 - The Company has complied with all code provisions of the Corporate Governance Code[68](index=68&type=chunk) [Review of Financial Statements](index=24&type=section&id=Review%20of%20Financial%20Statements) The Audit Committee, with management, reviewed the Group's accounting principles, audit, internal controls, and financial reporting, including these interim financial statements - The Audit Committee has reviewed the Group's accounting principles, audit, internal controls, and financial reporting matters[69](index=69&type=chunk) - The Audit Committee members include Mr. Chi Kwok Wa (Chairman), Mr. Wang Jun, and Ms. Dong Yan, all of whom are independent non-executive directors[69](index=69&type=chunk) [Board of Directors](index=24&type=section&id=Board%20of%20Directors) The Company's Board of Directors comprises two executive directors, one non-executive director, and three independent non-executive directors - The Board of Directors includes two executive directors: Mr. Zhang Wei (Chairman) and Mr. Deng Han (Chief Executive Officer)[70](index=70&type=chunk) - The Board of Directors includes one non-executive director: Mr. Yang Ming[70](index=70&type=chunk) - The Board of Directors includes three independent non-executive directors: Mr. Chi Kwok Wa, Mr. Wang Jun, and Ms. Dong Yan[70](index=70&type=chunk)

董事會會議通知 新 晨 中 國 動 力 控 股 有 限 公 司（「本公司」）董 事 會（「董事會」）謹 此 宣 佈，將 於 二 零 二 五 年 八 月 二 十 一 日（ 星 期 四 ）在 香 港 中 環 美 利 道2號 The Henderson 33樓 3303室 舉 行 董 事 會 會 議，藉 以（ 其 中 包 括 ）考 慮 及 批 准 本 公 司 及 其 附 屬 公 司 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 之 未 經 審 核 綜 合 中 期 財 務 業 績。 承董事會命 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。 XINCHEN CHINA POWER HOLDINGS LIMITED 新晨中國動力控股有限公 司 （於開曼群島註冊成立的有限公 司） （股份代 號：1148） 於 本 公 佈 日 期，董 事 會 成 員 包 括 兩 位 執 行 董 事：張 巍 先 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 新晨中國動力控股有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01148 | 說明 | | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 1,282,211,794 | | 0 | | 1,282,211,794 | | 增加 / 減少 (-) | | | | | | | | | | 本月底結存 | | | | 1,282,211,794 | | 0 | | 1,282,211,794 | 第 2 頁 共 10 ...

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 6,082,391 thousand, representing a 13.9% increase from RMB 5,340,830 thousand in 2023[7]. - The net profit attributable to shareholders for the year was RMB 38,135 thousand, compared to RMB 41,093 thousand in the previous year, indicating a slight decrease of 4.8%[7]. - In 2024, the company recorded total sales of approximately RMB 6.08239 billion, an increase of about 13.88% compared to RMB 5.34083 billion in 2023, primarily driven by increased sales of range extenders[13]. - The group recorded a profit attributable to shareholders of approximately RMB 38.17 million for the year ended December 31, 2024, compared to RMB 41.07 million for the year ended December 31, 2023, representing a decrease of about 7.0%[25]. - The group's pre-tax profit for 2024 was approximately RMB 42.38 million, down from RMB 48.52 million in 2023, indicating a decline of about 12.5%[24]. - Income tax expenses decreased by approximately 43.48% from RMB 7.44 million in 2023 to RMB 4.21 million in 2024 due to a reduction in deferred tax items recognized during the reporting period[25]. - The gross profit margin decreased from approximately 3.29% in 2023 to about 3.02% in 2024, primarily due to the increased proportion of lower-margin range extender sales[19]. - The total sales cost for 2024 was approximately RMB 5.89883 billion, an increase of about 14.21% from RMB 5.16496 billion in 2023, attributed to the rise in range extender sales[18]. Market Trends and Demand - The total sales volume of NEVs (New Energy Vehicles) in China increased by 35.5% to 12.87 million units, accounting for approximately 40.9% of total vehicle sales in 2024[8]. - The demand for plug-in hybrid vehicles surged by 83.3% to 5.14 million units, with their market share within NEVs rising to 40%[10]. - The market for commercial vehicles in 2024 is estimated to be around 4 million units, with new energy commercial vehicles accounting for approximately 15% to 20%, or 600,000 to 800,000 units[11]. - In 2024, China's automobile production and sales exceeded 31 million units, setting a new historical high, with NEV sales reaching 12.88 million units, a year-on-year increase of 34.4%[51]. Strategic Plans and Growth - The company plans to expand its presence in the NEV market through acquisitions and strategic partnerships, leveraging the growth momentum in the sector[9]. - The company is actively exploring potential mergers and acquisitions to expand its product portfolio and strengthen core competitiveness[15]. - The company aims to expand its product portfolio and strengthen market share through technological enhancements and new product development[51]. - The company is focused on developing high-performance engines and powertrains to meet existing customer demands and explore potential new markets[51]. Assets and Liabilities - Non-current assets decreased to RMB 2,248,001 thousand from RMB 2,488,630 thousand in 2023, reflecting a decline of 9.7%[7]. - Current assets increased to RMB 3,229,708 thousand, up from RMB 3,012,473 thousand in 2023, marking a growth of 7.2%[7]. - The total liabilities of the company slightly decreased, with current liabilities at RMB 3,293,002 thousand compared to RMB 3,308,163 thousand in 2023[7]. - The total assets of the group as of December 31, 2024, were approximately RMB 5.47771 billion, a slight decrease from RMB 5.50110 billion as of December 31, 2023[27]. - The debt-to-equity ratio as of December 31, 2024, was approximately 2.12, down from 2.21 as of December 31, 2023, indicating a reduction in lease liabilities during the reporting period[30]. Employee and Management - The group employed approximately 1,002 employees as of December 31, 2024, an increase from approximately 964 employees as of December 31, 2023[33]. - The company emphasizes the importance of employee development through tailored talent development plans and a performance-oriented compensation system[56]. - The company has a strong management team with extensive experience in finance and automotive industries, enhancing its operational capabilities[44][45]. Governance and Compliance - The company has complied with all relevant laws and regulations in China and Hong Kong as of December 31, 2024[55]. - The company has maintained compliance with all provisions of the Corporate Governance Code during the fiscal year ending December 31, 2024[113]. - The board of directors is responsible for the strategic direction and oversight of the company, aiming to enhance shareholder value[115]. - The company has established internal control procedures that are deemed effective by the independent non-executive directors[105]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules, ensuring compliance with governance standards[123]. Environmental and Social Responsibility - The environmental, social, and governance report covers operations from January 1, 2024, to December 31, 2024, with a focus on sustainable development[187]. - The company has complied with all relevant laws and regulations related to health, safety, and the environment[188]. - The company reported a total of 26,317.86 tons of carbon dioxide (CO2) equivalent greenhouse gas emissions for the year 2024, with a density of 1.49 tons of CO2 equivalent per unit of production[193]. - The total hazardous waste generated by the company was 53.23 tons, equating to 0.003 tons per unit of production[194]. - The company aims to meet national environmental protection standards for air, wastewater, and noise pollutants, with measures in place to reduce emissions by 95% for certain pollutants[195]. Shareholder Information - The company has proposed a final dividend of HKD 0.97 per share for the year ending December 31, 2024, compared to no dividend for the previous year[61]. - Major shareholders include Huachen Investment Holdings, Xin Hua Investment Holdings, and Pusch Group, each holding 400,000,000 shares, representing approximately 31.20% of the total issued shares as of December 31, 2024[77][81]. - The company will hold its annual general meeting on June 20, 2024, and a special general meeting on December 20, 2024, to address shareholder inquiries[178]. Risk Management - The company has identified financial risks related to interest rates and liquidity, but does not face foreign currency exchange risks due to the absence of foreign currency loans[50]. - The company has established risk management policies to assess and manage potential risks affecting its operations[149]. - The company has implemented a whistleblowing policy to enhance oversight and management effectiveness[160].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 6,082,391,000, an increase of 13.9% from RMB 5,340,830,000 in 2023[2] - Gross profit for the same period was RMB 183,557,000, reflecting a growth of 4.8% compared to RMB 175,866,000 in the previous year[2] - The net profit for the year was RMB 38,171,000, down 7.0% from RMB 41,071,000 in 2023[2] - The company reported a total comprehensive income of RMB 38,135,000 for the year, compared to RMB 41,093,000 in the previous year[4] - The basic and diluted earnings per share for the year were RMB 0.030, down from RMB 0.032 in 2023[4] - The pre-tax profit for 2024 was RMB 42,378,000, down from RMB 48,515,000 in 2023, indicating a decrease of about 12.5%[34] - The group recorded a pre-tax profit of approximately RMB 42.38 million in 2024, down from RMB 48.52 million in 2023[69] Assets and Liabilities - The company’s total assets as of December 31, 2024, were RMB 5,413,715,000, a slight decrease from RMB 5,500,803,000 in 2023[6] - Current liabilities amounted to RMB 3,293,002,000, compared to RMB 3,308,163,000 in the previous year, indicating a reduction in short-term obligations[8] - The group’s total liabilities have increased from RMB 1,083,000,000 in 2023 to RMB 1,200,000,000 in 2024, representing a growth of approximately 10.8%[48] - The company’s total borrowings, including bank and other loans, amount to RMB 602,904,000 in 2024, compared to RMB 550,824,000 in 2023, indicating an increase of about 9.5%[48] - The company’s lease liabilities have decreased from RMB 537,834,000 in 2023 to RMB 399,942,000 in 2024, indicating a decline of approximately 25.7%[47] - The debt-to-equity ratio is approximately 2.12, down from 2.21 as of December 31, 2023, primarily due to a reduction in lease liabilities[75] - The asset-liability ratio is approximately 34.37% as of December 31, 2024, compared to 35.01% as of December 31, 2023, mainly due to an increase in equity attributable to the owners[75] Cash Flow and Liquidity - The company’s cash and cash equivalents increased to RMB 85,570,000 from RMB 23,839,000 in 2023, showing improved liquidity[6] - The company believes it has sufficient financial resources to meet its financial obligations for the foreseeable future, based on cash flow forecasts covering a one-year period from the date of approval of the financial statements[16] - The company plans to monitor production activities to meet forecasted output and sales, implement cost control measures, and seek other feasible financial arrangements to improve liquidity[17] - The income tax expense for 2024 was RMB 4,207,000, a decrease from RMB 7,444,000 in 2023, indicating a reduction of approximately 43%[34] Revenue Breakdown - The total revenue from external customers for the year ended December 31, 2024, was RMB 6,082,391,000, with gasoline engines contributing RMB 5,281,673,000, diesel engines RMB 114,640,000, and engine parts RMB 686,078,000[19] - Major customer revenue for 2024 includes Customer A at RMB 5,046,531,000, a significant increase from RMB 1,392,114,000 in 2023[26] - The engine business segment saw a revenue increase of approximately 16.02%, rising from RMB 46.5114 billion in 2023 to RMB 53.9631 billion in 2024, with engine sales increasing by about 24.46% to approximately 519,000 units[64] Expenses and Costs - The total sales and distribution expenses for the year were RMB 20,290,000, reflecting the company's cost management efforts[20] - The financing costs decreased to RMB 47,749,000 in 2024 from RMB 57,309,000 in 2023, indicating a reduction of approximately 16%[30] - Total employee costs increased to RMB 145,763,000 in 2024 from RMB 138,173,000 in 2023, representing a rise of approximately 5.5%[35] - The total depreciation and amortization expenses for the year were RMB 277,781,000, compared to RMB 265,278,000 in the previous year, marking an increase of about 4.7%[35] Market Outlook - In 2024, the total vehicle sales in China are projected to reach approximately 31.4 million units, representing a year-on-year growth of 4.5%[52] - New Energy Vehicle (NEV) sales are anticipated to rise by 35.5% to 12.87 million units, accounting for approximately 40.9% of total vehicle sales in 2024[52] - The NEV market is expected to continue its rapid growth, with projections indicating that NEV sales could account for half of total vehicle sales by 2025 or earlier[53] - The commercial vehicle market is projected to have total sales of around 4 million units in 2024, with new energy commercial vehicles expected to account for 15% to 20% of that, representing a significant growth opportunity[57] Strategic Initiatives - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming fiscal year[2] - The company has allocated resources towards research and development for new technologies to drive future growth[2] - The company aims to capture growth opportunities through acquisitions or collaborations within the automotive industry[53] - The group plans to continue exploring potential acquisition opportunities and partnerships to enhance its product portfolio and core competitiveness[62] Corporate Governance - The company has maintained compliance with all corporate governance codes as of December 31, 2024[89] - The auditors have agreed that the preliminary announcement aligns with the consolidated financial statements for the year ending December 31, 2024[91] - The audit committee has reviewed the accounting principles and practices used by the group, discussing matters related to auditing, internal controls, and financial reporting for the year ending December 31, 2024[92]

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 2,619,532,000, an increase of 4.4% compared to RMB 2,509,663,000 for the same period in 2023[2] - Gross profit for the same period was RMB 109,869,000, slightly up from RMB 107,160,000, reflecting a gross margin improvement[2] - Other income increased significantly to RMB 26,748,000 from RMB 11,508,000, indicating a growth of 132.5%[2] - The company recorded a net profit of RMB 22,125,000 for the period, compared to RMB 21,742,000 in the previous year, representing a year-on-year increase of 1.8%[3] - The company reported a decrease in pre-tax profit to RMB 23,811,000 for the six months ended June 30, 2024, down from RMB 25,267,000 in the same period of 2023, reflecting a decline of 5.8%[9] - The company recorded an unaudited total revenue of approximately RMB 2.61953 billion in the first half of 2024, an increase of about 16.43% compared to RMB 2.24981 billion in the same period last year[52] - The unaudited pre-tax profit decreased by approximately 5.76% to RMB 23.81 million in the first half of 2024 from RMB 25.27 million in the same period last year[53] Assets and Liabilities - Total assets decreased to RMB 5,081,466,000 as of June 30, 2024, down from RMB 5,501,103,000 at the end of 2023, a decline of 7.6%[4] - Current liabilities were reported at RMB 2,963,860,000, a decrease from RMB 3,308,163,000, indicating a reduction of 10.4%[6] - The company's total liabilities as of June 30, 2024, included a net current liability of approximately RMB 240,428,000, which raises concerns about liquidity[11] - The company's financial assets at amortized cost decreased to RMB 2,228,551,000 as of June 30, 2024, down from RMB 2,510,085,000 as of December 31, 2023, reflecting a decline of about 11.2%[44] - The total lease liabilities as of June 30, 2024, were RMB 468,619,000, compared to RMB 537,834,000 as of December 31, 2023, indicating a decrease of approximately 13.0%[42] Cash Flow and Investments - The operating cash flow before changes in working capital for the six months ended June 30, 2024, was RMB 151,039,000, a decrease of 8.4% from RMB 164,899,000 in the same period of 2023[9] - The net cash used in investing activities for the six months ended June 30, 2024, was RMB 102,136,000, compared to RMB 9,320,000 in the same period of 2023, indicating a significant increase in investment outflows[10] - The net cash used in financing activities for the six months ended June 30, 2024, was RMB 22,339,000, a decrease from a net cash inflow of RMB 26,504,000 in the same period of 2023[10] - Cash and cash equivalents increased by RMB 17,530,000, reaching RMB 41,369,000 as of June 30, 2024, compared to RMB 43,710,000 at the end of the previous year[10] Operational Efficiency and Strategy - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[2] - The company aims to enhance operational efficiency and explore strategic partnerships to drive future growth[2] - The company is exploring new investment opportunities to expand its product portfolio and diversify revenue sources to maintain core competitiveness[64] - The company is actively seeking new customers and NEV component business opportunities due to a decline in demand for certain engine components[63] Market and Economic Outlook - The company expects to maintain its operational focus in China, where most of its revenue is generated, indicating a strategic emphasis on the domestic market[16] - The company anticipates that the overall automotive sales in China will achieve approximately 3% year-on-year growth in 2024, reaching a new normal of 30 million units sold[64] - In the first half of 2024, China's GDP grew by 5% year-on-year, with the automotive manufacturing sector contributing to this growth, despite signs of economic slowdown due to ongoing challenges in the real estate sector[62] Corporate Governance and Shareholder Information - The company did not declare any interim dividend for the six months ending June 30, 2024, consistent with the previous year[65] - Major shareholders, including Huachen Investment and Xin Hua Investment, each hold 400,000,000 shares, representing approximately 31.20% of the issued shares as of June 30, 2024[69] - The total number of issued shares as of June 30, 2024, is 1,282,211,794 shares[70] - The company has complied with all provisions of the corporate governance code during the six months ending June 30, 2024[74] Employee and Operational Metrics - The total employee costs amounted to RMB 62,663,000 for the six months ended June 30, 2023, compared to RMB 62,048,000 for the same period in 2022, reflecting an increase of approximately 1%[20] - The group employed approximately 935 employees as of June 30, 2024, with employee costs for the six months ending June 30, 2024, amounting to RMB 62.66 million, slightly up from RMB 62.05 million in the same period of 2023[61] Future Initiatives and Innovations - The company is exploring innovative solutions to improve operational efficiency and customer satisfaction[77] - There is a strong focus on sustainability and corporate responsibility in the company's future initiatives[77] - Future outlook includes plans for new product development and technological advancements to drive growth[77]

Financial Performance - For the six months ended June 30, 2024, the total revenue was RMB 2,619,532,000, an increase from RMB 2,249,808,000 in the same period of 2023, representing a growth of approximately 16.4%[1] - The gross profit for the same period was RMB 109,869,000, compared to RMB 107,160,000 in the previous year, indicating a slight increase of about 2.5%[1] - The net profit for the period was RMB 22,125,000, up from RMB 21,742,000 year-on-year, reflecting a growth of approximately 1.8%[2] - The total comprehensive income for the period was RMB 22,125,000, compared to RMB 21,764,000 in the previous year, indicating a slight increase of about 1.7%[2] - The net profit before tax for the six months ended June 30, 2024, was RMB 23,811 thousand, compared to RMB 25,267 thousand for the same period in 2023, showing a decline of 5.8%[11] - The group recorded an unaudited profit attributable to the owners of the company of approximately RMB 22.13 million in the first half of 2024, an increase of about 1.79% compared to RMB 21.74 million in the same period last year[46] - The group's unaudited pre-tax profit decreased by approximately 5.76% from RMB 25.27 million in the first half of 2023 to RMB 23.81 million in the first half of 2024, primarily due to increased selling and distribution expenses, administrative expenses, and research and development costs[45] Revenue Breakdown - The revenue from gasoline engines was RMB 2,174,521 thousand, up from RMB 1,809,884 thousand, reflecting a growth of 20.2% year-over-year[11] - Diesel engine revenue increased to RMB 46,652 thousand from RMB 40,215 thousand, marking a growth of 15.4%[11] - The revenue from engine parts was RMB 398,359 thousand, slightly down from RMB 399,709 thousand, indicating a decrease of 0.3%[11] - Other income for the six months ended June 30, 2024, was RMB 26,748 thousand, compared to RMB 11,508 thousand for the same period in 2023, reflecting a substantial increase of 132.5%[11] - Total revenue from government subsidies increased to RMB 11,226,000, up from RMB 2,954,000 year-over-year, representing a growth of 278%[16] Assets and Liabilities - Total assets decreased to RMB 5,081,466,000 as of June 30, 2024, down from RMB 5,501,103,000 at the end of 2023, a decline of about 7.6%[3] - Current liabilities decreased to RMB 2,963,860,000 from RMB 3,308,163,000, showing a reduction of approximately 10.4%[4] - The company reported a net current liability of RMB 240,428,000, improving from RMB 295,690,000 in the previous period[5] - The company’s total assets related to right-of-use assets were approximately RMB 355,752,000 as of June 30, 2024, down from RMB 406,574,000 as of December 31, 2023[24] - As of June 30, 2024, net trade receivables amounted to RMB 1,920,653 thousand, a decrease from RMB 2,281,122 thousand as of December 31, 2023, representing a decline of approximately 15.8%[25] - The total trade receivables, net of expected credit losses, were RMB 2,012,011 thousand as of June 30, 2024, compared to RMB 2,369,834 thousand as of December 31, 2023, reflecting a decrease of about 15.1%[25] Cash Flow and Financing - The company anticipates sufficient cash resources to meet operational funding and financial obligations for the next 12 months, contingent on generating adequate financing and operational cash flow[6] - The company is currently negotiating with financial institutions for the renewal of short-term bank loans and new financing options to improve liquidity[5] - As of June 30, 2024, the group's bank balances and cash amounted to approximately RMB 41.37 million, an increase from RMB 23.84 million as of December 31, 2023[47] Cost Management - The company is implementing cost control measures to manage production costs and expenses effectively[5] - Employee costs totaled RMB 62,663,000, slightly up from RMB 62,048,000 in the previous year, indicating a 1% increase[18] - The company’s total depreciation and amortization expenses were RMB 130,908,000, up from RMB 124,840,000 year-over-year, marking a 4.3% increase[18] Shareholder and Governance - The major shareholder, Brilliance China Automotive Holdings Limited, has committed to providing ongoing financial support for the next 12 months[5] - The board does not recommend any interim dividend for the six months ending June 30, 2024, consistent with no interim dividend for the six months ending June 30, 2023[57] - The company has adhered to all provisions of the Corporate Governance Code as of June 30, 2024[58] - The Audit Committee has reviewed the accounting principles and practices adopted by the group, discussing matters related to audit, internal controls, and financial reporting for the six months ending June 30, 2024[59] - The board consists of two executive directors, two non-executive directors, and three independent non-executive directors as of the announcement date[60] Market Trends - In the first half of 2024, China's GDP grew by 5% year-on-year, driven by strong industrial output and service sector indicators[54] - Sales in the passenger vehicle segment of the Chinese automotive sector increased by 6.3% year-on-year, while commercial vehicle sales grew by 4.9%[54] - The total sales of new energy vehicles (NEVs) reached 4.94 million units, representing a year-on-year increase of 31.7%, accounting for approximately 35.2% of total sales in the first half of 2024[54] - The group anticipates that the joint venture will continue to serve as a long-term strategic platform for providing quality and stable incremental gasoline engine supply in the coming years[55] - The automotive market in China is expected to achieve approximately 3% year-on-year growth in 2024, reaching a new sales volume of 30 million vehicles[56]

Financial Performance - The company recorded a profit before tax of approximately RMB 48.52 million in 2023, compared to a loss of approximately RMB 110.73 million in 2022[13]. - The net profit attributable to the owners of the company for 2023 was approximately RMB 41.07 million, a significant improvement from a net loss of approximately RMB 115.83 million in 2022[14]. - Basic earnings per share for 2023 were approximately RMB 0.032, compared to a basic loss per share of approximately RMB 0.09 in 2022[14]. - The overall cost of sales for 2023 was approximately RMB 5.16496 billion, a 233.20% increase from about RMB 1.55009 billion in 2022, attributed to increased sales of range extenders[80]. - The company recorded a total consolidated sales of approximately RMB 5.34083 billion in 2023, an increase of about 223.20% compared to RMB 1.65248 billion in 2022, primarily due to increased sales of range extenders[80]. Assets and Liabilities - As of December 31, 2023, the total assets of the group were approximately RMB 5.5011 billion, an increase from RMB 4.1561 billion as of December 31, 2022[16]. - The group's cash and cash equivalents as of December 31, 2023, were approximately RMB 23.84 million, down from RMB 59.06 million as of December 31, 2022[15]. - The debt-to-equity ratio as of December 31, 2023, was approximately 2.21, up from 1.48 as of December 31, 2022, primarily due to increased payables related to the purchase of enhancers[20]. - The capital commitments of the group as of December 31, 2023, were approximately RMB 127.28 million, a decrease from RMB 350.73 million as of December 31, 2022[24]. Workforce and Employment - The group employed approximately 964 employees as of December 31, 2023, down from approximately 998 employees as of December 31, 2022[23]. Leadership and Governance - The company has over 29 years of experience in the automotive industry, focusing on overall strategic planning and business development[27]. - The new CEO has over 23 years of experience in the automotive sector, previously serving as General Manager of a subsidiary[28]. - The company has appointed a new non-executive director with extensive experience in the aviation and automotive industries[29]. - The independent non-executive director has been involved in various academic and professional roles, contributing to financial management and auditing[31]. - The company is actively expanding its leadership team with experienced professionals to enhance strategic direction and operational efficiency[27][28][29]. Research and Development - The company has a strong focus on research and development in new technologies to drive future growth[31]. - The company is investing $50 million in R&D for new technologies aimed at enhancing product efficiency and sustainability[41]. - The company is committed to enhancing R&D capabilities and broadening product models to keep pace with automotive market advancements[54]. Market Expansion and Strategy - The company is exploring market expansion opportunities to increase its competitive edge in the automotive sector[28]. - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[35]. - Market expansion plans include entering three new international markets by the end of the fiscal year, targeting a 10% increase in global market share[43]. - The company has completed a strategic acquisition of a competitor, which is expected to increase annual revenue by approximately $20 million[42]. - New product lines are set to launch in Q3 2024, with anticipated sales contributing an additional 5% to overall revenue[40]. Customer and Product Performance - Customer satisfaction ratings improved to 90%, reflecting the success of recent quality management initiatives[38]. - The company achieved a 30% increase in production efficiency through recent operational improvements[39]. - The engine business segment recorded a revenue increase of approximately 358.17%, rising from about RMB 1.01515 billion in 2022 to approximately RMB 4.65114 billion in 2023[75]. - Engine sales increased by approximately 382.08%, from about 86,500 units in 2022 to approximately 417,000 units in 2023, primarily due to increased sales of range extenders[75]. Compliance and Regulations - The company has complied with all relevant environmental protection laws and regulations, establishing necessary facilities for waste disposal and environmental protection[57]. - The company has maintained compliance with all relevant laws and regulations in China and Hong Kong as of December 31, 2023[58]. - The independent non-executive directors confirmed that the internal control procedures are effective and that the related party transactions are fair and reasonable[140]. - The company has complied with the disclosure requirements under Chapter 14A of the Listing Rules[143]. Related Party Transactions - The actual monetary value of related party transactions for the fiscal year ending December 31, 2023, includes procurement of engine components from Huachen China and its subsidiaries amounting to RMB 2,784,000[126]. - Sales of engines and engine components to Huachen China and its subsidiaries totaled RMB 27,000 for the same fiscal year[126]. - The procurement from Wuliangye and its subsidiaries, including Xinhua Internal Combustion Engine, amounted to RMB 55,618,000[126]. Corporate Governance - The company has established corporate governance practices to align with the corporate governance code[149]. - The board consists of eight members: two executive directors, two non-executive directors, and four independent non-executive directors, meeting the minimum requirements under listing rules[159]. - The average attendance rate of the board of directors was 98% in 2023, with all independent non-executive directors achieving 100% attendance[156]. - The company held five board meetings in 2023, with several matters approved through written resolutions[156].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of RMB 5,340,830,000, a significant increase from RMB 1,652,481,000 in the previous year, representing a growth of approximately 223%[11] - The gross profit for the same period was RMB 175,866,000, compared to RMB 102,392,000 in the prior year, indicating a year-over-year increase of about 72%[11] - The company recorded a net profit of RMB 41,071,000 for the year, a recovery from a net loss of RMB 115,829,000 in the previous year[11] - Other income rose to RMB 50,591,000, up from RMB 24,978,000, reflecting an increase of approximately 103%[11] - The total comprehensive income for the year was RMB 41,093,000, compared to a loss of RMB 115,690,000 in the previous year, marking a significant turnaround[12] - The company reported a pre-tax profit of RMB 48,515,000 in 2023, a significant improvement from a loss of RMB 110,731,000 in 2022[79] - The profit attributable to the owners of the company for 2023 was approximately RMB 41.07 million, while the net loss for the year ended December 31, 2022, was approximately RMB 115.83 million[134] Revenue Breakdown - Total revenue from external customers reached RMB 5,340,830 thousand, with segment revenue contributions of RMB 4,556,025 thousand from gasoline engines, RMB 95,117 thousand from diesel engines, and RMB 689,688 thousand from engine components[25] - Customer A generated revenue of RMB 2,926,932 thousand in 2023, a significant increase from RMB 724,135 thousand in 2022[31] - Revenue from the engine components segment increased by approximately 8.22% from RMB 637.33 million in 2022 to RMB 689.69 million in 2023, primarily due to increased production and supply of Bx8 crankshafts and connecting rods to BMW Brilliance[129] - The engine business segment recorded a revenue increase of approximately 358.17%, rising from about RMB 1.015 billion in 2022 to approximately RMB 4.651 billion in 2023[154] Costs and Expenses - The company reported a total of RMB 5,100,978,000 in cost of goods sold for the year, a significant increase from RMB 1,498,723,000 in the previous year[80] - The sales cost for 2023 was approximately RMB 5.16496 billion, representing an increase of about 233.20% from approximately RMB 1.55009 billion in 2022, attributed to the rise in range extender sales[102] - Sales and distribution expenses rose by approximately 64.03% from RMB 12.37 million in 2022 to RMB 20.29 million in 2023, accounting for approximately 0.75% and 0.38% of revenue in 2022 and 2023, respectively[131] - Other expenses increased significantly by approximately 332.94% from RMB 12.61 million in 2022 to RMB 54.49 million in 2023, mainly due to increased general research expenses[132] Assets and Liabilities - The total assets minus current liabilities amounted to RMB 2,192,940 thousand in 2023, compared to RMB 2,340,466 thousand in 2022[35] - Non-current assets were valued at RMB 2,488,630 thousand in 2023, down from RMB 2,668,042 thousand in 2022[34] - The company’s net current liabilities decreased to RMB 295,690 thousand in 2023 from RMB 327,576 thousand in 2022[35] - The total liabilities were approximately RMB 378.50 million as of December 31, 2023, up 52.5% from RMB 248.12 million on December 31, 2022[162] - The debt-to-equity ratio increased to 2.21 as of December 31, 2023, compared to 1.48 on December 31, 2022, primarily due to increased payables related to trading[164] Governance and Compliance - The company maintained compliance with all corporate governance codes as of December 31, 2023, ensuring adherence to high standards of corporate governance[2] - The board of directors includes two executive directors and four independent non-executive directors, ensuring a balanced governance structure[5] Market and Industry Trends - The demand for plug-in hybrid vehicles grew by 85% to 2.81 million units, while pure electric vehicle sales increased by 25% to 6.68 million units, reflecting the robust growth of the NEV market in China[98] - The company is optimistic about the automotive industry's future, with NEV sales expected to rise to over 50% of total vehicle sales by 2035[125] - The sales of new energy vehicles (NEVs) increased by 37.9% year-on-year to 9.49 million units, accounting for about 31.5% of the total national sales in 2023[150] Research and Development - Research and development costs recognized as other expenses surged to RMB 34,248,000 in 2023, compared to RMB 9,718,000 in 2022, indicating a growth of 252.5%[80] - The company has developed NEV-compatible CE engines for the new generation of NEV range extenders, addressing the challenges of charging infrastructure[126] Financial Management - The company had available and undrawn bank financing of RMB 193,048,000 as of December 31, 2023, indicating strong liquidity support for future operations[20] - The company is actively engaging with financial institutions for refinancing and new borrowings, demonstrating proactive financial management strategies[20] - Major shareholder Brilliance China has committed to providing ongoing financial support to the group for a period of 12 months from the date of board approval of the consolidated financial statements[41] Shareholder Returns - The company has not declared or paid any dividends for the years ended December 31, 2023, and 2022[58] - The group does not recommend any dividend distribution for the year ended December 31, 2023[170]