Core Insights - The report highlights significant changes in the stock holdings of various companies under the Hong Kong Stock Connect program, with notable increases and decreases in ownership percentages [1][2]. Group 1: Companies with Increased Holdings - China Merchants Energy (中远海能, 01138) saw the largest increase in holdings, up by 3.98% to a total holding of 64.59% [2]. - Country Garden (碧桂园, 02007) experienced a 1.24% increase, bringing its holding to 11.93% [2]. - Chifeng Jilong Gold Mining (赤峰黄金, 06693) increased by 1.09%, with a current holding of 45.70% [2]. - Other notable increases include Zhongxin Innovation (中创新航, 03931) at +1.07% and Horizon Robotics (地平线机器人-W, 09660) at +0.96% [2]. Group 2: Companies with Decreased Holdings - Yisou Technology (宜搜科技, 02550) experienced the largest decrease, down by 5.42% to a holding of 41.47% [2]. - Zhixing Technology (知行科技, 01274) saw a reduction of 3.19%, now holding 25.37% [2]. - Meizhong Jiahe (美中嘉和, 02453) decreased by 3.07%, with a current holding of 35.63% [2]. - Other significant decreases include Haotian International Construction Investment (昊天国际建投, 01341) at -2.57% and Guancheng Watch Jewelry (冠城鐘錶珠宝, 00256) at -2.04% [2]. Group 3: Five-Day Changes - Over the last five trading days, China Merchants Energy (中远海能, 01138) had the highest increase of 6.88%, reaching a holding of 64.59% [3]. - Yangtze Optical Fibre and Cable (长飞光纤光缆, 06869) increased by 6.31%, now at 61.31% [3]. - Ganfeng Lithium (赣锋鋰业, 01772) rose by 3.49%, with a holding of 36.23% [3]. - Significant decreases included Yisou Technology (宜搜科技, 02550) at -6.57% and Longpan Technology (龙蟠科技, 02465) at -4.63% [3]. Group 4: Twenty-Day Changes - In the last twenty days, Anjuke Food (安井食品, 02648) saw the largest increase of 12.18%, with a holding of 19.34% [4]. - Bluefocus Communication Group (蓝思科技, 06613) increased by 10.54%, now holding 14.86% [4]. - Longfly Optical Fibre and Cable (长飞光纤光缆, 06869) rose by 7.52%, reaching a holding of 61.31% [4]. - The largest decrease was seen in Hong Kong Broadband (香港宽频, 01310) at -9.74%, with a holding of 0.33% [4].

（於中華人民共和國註冊成立的股份有限公司） （股份代號：1274） 完成註冊地址變更 茲提述知行汽車科技（蘇州）股份有限公司（「本公司」）日期為2025年5月29日的通 函，內容有關（其中包括）變更本公司註冊地址。 本公司已於2025年9月8日取得蘇州市市場監督管理局換發的更新營業執照，及本 公司的註冊地址已由「蘇州工業園區金雞湖大道88號G2-190119022002」正式變更 為「蘇州工業園區迎前路28號」。 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告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告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。 iMotion Automotive Technology (Suzhou) Co., Ltd. 知行汽車科技（蘇州）股份有限公司 香港，2025年9月8日 於本公告日期，董事會包括董事長兼執行董事宋陽先生；執行董事盧玉坤先生、 李雙江先生、蔣京芳女士及劉芳女士；以及獨立非執行董事張為公博士、劉勇先 生及薛睿女士。 承董事會命 知行汽車科技（蘇州）股份有限公司 董事長兼執行董事 宋陽 ...

Core Viewpoint - The company reported a revenue of 366 million yuan for the first half of 2025, a year-on-year decline of 42.47%, and a net profit attributable to shareholders of -178 million yuan, compared to a profit of 98.61 million yuan in the same period last year [1] Financial Performance - The gross margin for the first half of the year was 4.7%, a decrease of 2.4 percentage points year-on-year [1] - The selling expense ratio increased to 2.9%, up 1.0 percentage points year-on-year [1] - The management expense ratio rose to 8.6%, an increase of 4.9 percentage points year-on-year [1] - The R&D expense ratio was 42.8%, up 27.1 percentage points year-on-year [1] R&D and Business Development - The company made significant progress in R&D and is actively expanding its embodied intelligence business [1] - The self-developed iDC500 combination auxiliary domain driving controller has officially entered mass production [1] - The company’s combination driving auxiliary domain controller, equipped with Horizon Journey 6 series, is expected to achieve mass production in multiple leading Chinese automotive groups' main models in the second half of the year [1] - The company established Aimo Star Robotics, focusing on the R&D and commercialization of embodied intelligence technology [1] - A share transfer framework agreement was signed with "Little Craftsman" to quickly layout key components in the embodied intelligence field [1] Investment Outlook - The company is expected to achieve net profits attributable to shareholders of -158 million yuan, 63 million yuan, and 163 million yuan for 2025-2027 [1] - The corresponding price-to-earnings ratios for 2026 and 2027 are projected to be 47.59 times and 18.52 times, respectively [1] - The investment rating is maintained at "Accumulate" [1]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company reported a significant decline in revenue for the first half of 2025, with a revenue of 366 million yuan, down 42.47% year-on-year, and a net profit attributable to shareholders of -178 million yuan, compared to a profit of 98.61 million yuan in the same period last year [8] - The gross margin decreased year-on-year, while the expense ratios increased, with a gross margin of 4.7%, down 2.4 percentage points, and an increase in sales expense ratio to 2.9%, up 1.0 percentage points [8] - The company is making rapid progress in research and development, particularly in embodied intelligence, with the launch of the iDC500 combination auxiliary domain driving controller and plans for mass production in collaboration with major Chinese automotive groups [8] - The company expects to achieve net profits of -158 million yuan, 63 million yuan, and 163 million yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 47.59 and 18.52 for 2026 and 2027 [8] Financial Performance Summary - The company’s revenue forecast for 2023A, 2024A, 2025E, 2026E, and 2027E is 1,216 million, 1,248 million, 1,710 million, 2,439 million, and 3,369 million yuan respectively, with growth rates of -8.27%, 2.58%, 37.02%, 42.68%, and 38.12% [7] - The net profit attributable to shareholders is forecasted to be -195 million, -288 million, -158 million, 63 million, and 163 million yuan for the same years, with a significant growth rate of 156.92% in 2027 [7] - The company’s cash flow from operating activities is projected to improve from -262 million yuan in 2023A to 249 million yuan in 2027E [9]

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8月31日 狀態: 新提交 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 H | | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01274 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 257,442,540 | RMB | | 1 | RMB | | 257,442,540 | | 增加 / 減少 (-) | | | | 0 | | | RMB | | 0 | | 本月底結存 | | | 257,442,540 | RMB | | 1 | RMB | | 257,442,540 | 本月底法定/註冊股本總額： RMB 257,442,540 FF301 第 1 頁 共 10 頁 v 1.1.1 致：香港交易及 ...

Core Viewpoint - The performance report for the first half of 2025 indicates a significant decline in revenue and profit for the company, with a notable increase in pre-tax losses compared to the same period in 2024 [2][3]. Financial Performance - Revenue for the first half of 2025 was 365.99 million RMB, a decrease of 42.47% compared to 636.16 million RMB in the same period of 2024 [2][3]. - Gross profit was 17.07 million RMB, down 61.93% from 44.85 million RMB in 2024, resulting in a gross margin of 4.67% compared to 7.05% in 2024 [2][3]. - Pre-tax losses increased by 80.39% to 177.86 million RMB, up from 98.60 million RMB in 2024 [2][3]. - The company's net loss attributable to equity holders rose by 80.38% to 177.88 million RMB from 98.61 million RMB in the previous year [2][3]. Inventory and Costs - The cost of sales for the first half of 2025 was approximately 348.92 million RMB, compared to 591.31 million RMB in 2024 [3]. - Inventory impairment provisions were approximately 4.05 million RMB for 2025, compared to 0.27 million RMB in 2024 [2][3]. Business Operations - The company delivered over 116,000 sets of integrated driving assistance solutions and products, representing a 20.8% increase year-on-year [4]. - The majority of revenue came from sales of integrated driving assistance solutions and products to OEMs, totaling approximately 327.5 million RMB, a decline of 46.6% from 613.26 million RMB in 2024 [4]. - Revenue from the sales of integrated driving assistance domain controllers was approximately 294.40 million RMB, down 50.76% from 597.94 million RMB in 2024, primarily due to a significant drop in Supervision orders from customers [4]. Growth in Self-Developed Products - Revenue from the self-developed iDC series integrated driving assistance domain controllers was approximately 74.38 million RMB, an increase of 115.66% from 34.49 million RMB in 2024 [5]. - Revenue from sales of intelligent front-view cameras was approximately 33.09 million RMB, up 115.99% from 15.32 million RMB in 2024, driven by new customer models entering mass production [5].

Core Viewpoint - Zhixing Technology reported a significant decline in revenue and profit margins for the first half of 2025, indicating financial challenges and increased losses compared to the previous year [1] Financial Performance - The company recorded revenue of RMB 365.99 million, a year-on-year decrease of 42.47% [1] - Gross profit was RMB 17.07 million, down 61.93% year-on-year [1] - Gross margin fell to 4.67%, compared to 7.05% in the same period of 2024 [1] Losses - The pre-tax loss increased by 80.39% to RMB 177.86 million year-on-year [1] - The loss attributable to equity holders of the company also rose by 80.38% to RMB 177.88 million [1]

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) [Financial Summary](index=1&type=section&id=Financial%20Summary) The company reported a significant decline in revenue and gross profit for H1 2025, with increased losses and no interim dividend recommendation H1 2025 Key Financial Indicators (YoY) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 365.99 | 636.16 | -42.47% | | Gross Profit | 17.07 | 44.85 | -61.93% | | Gross Profit Margin | 4.67% | 7.05% | -2.38 percentage points | | Loss Before Income Tax | (177.86) | (98.60) | +80.39% | | Loss Attributable to Equity Holders of the Company | (177.88) | (98.61) | +80.38% | | Basic and Diluted Loss Per Share | (0.75) | (0.44) | +70.45% | - The Board does not recommend an **interim dividend** for the reporting period, consistent with H1 2024[3](index=3&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, detailing the company's financial performance, position, equity changes, and cash flows [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement details the company's revenues, costs, gross profit, operating loss, and net loss for the six months ended June 30, 2025 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 365,993 | 636,157 | | Cost of Sales | (348,919) | (591,305) | | Gross Profit | 17,074 | 44,852 | | Operating Loss | (182,240) | (100,063) | | Loss Before Income Tax | (177,861) | (98,600) | | Loss for the Period | (177,946) | (98,629) | | Loss and Total Comprehensive Loss for the Period Attributable to Equity Holders of the Company | (177,882) | (98,613) | | Basic and Diluted Loss Per Share (RMB) | (0.75) | (0.44) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the company's assets, equity, and liabilities as of June 30, 2025, reflecting its financial structure and solvency Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **ASSETS** | | | | Total Non-current Assets | 493,870 | 411,668 | | Total Current Assets | 1,092,996 | 1,149,254 | | **TOTAL ASSETS** | **1,586,866** | **1,560,922** | | **EQUITY** | | | | Share Capital | 241,948 | 230,757 | | Reserves | 1,352,677 | 1,181,008 | | Accumulated Losses | (686,687) | (508,741) | | **TOTAL EQUITY** | **907,938** | **903,024** | | **LIABILITIES** | | | | Total Non-current Liabilities | 247,649 | 181,770 | | Total Current Liabilities | 431,279 | 476,128 | | **TOTAL LIABILITIES** | **678,928** | **657,898** | | **TOTAL EQUITY AND LIABILITIES** | **1,586,866** | **1,560,922** | | Net Current Assets | 661,717 | 673,126 | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement outlines the changes in the company's equity components, including share capital, reserves, and accumulated losses, for the period ended June 30, 2025 Condensed Consolidated Statement of Changes in Equity (As of June 30, 2025) | Indicator | Share Capital (RMB thousand) | Reserves (RMB thousand) | Accumulated Losses (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 | 230,757 | 1,181,008 | (508,741) | 903,024 | | Loss for the period | – | – | (177,946) | (177,946) | | Other comprehensive loss | – | (64) | – | (64) | | Placing of new shares | 11,191 | 198,991 | – | 210,182 | | Purchase of shares for share award scheme | – | (27,258) | – | (27,258) | | As of June 30, 2025 | 241,948 | 1,352,677 | (686,687) | 907,938 | [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the company's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (97,507) | (406,911) | | Net cash generated from/(used in) investing activities | 65,709 | (168,734) | | Net cash generated from financing activities | 230,084 | 65,374 | | Net increase/(decrease) in cash and cash equivalents | 198,286 | (510,271) | | Cash and cash equivalents at end of period | 378,622 | 212,390 | [Notes to the Unaudited Interim Financial Report](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Report) This section provides detailed notes to the interim financial report, covering general information, basis of preparation, accounting policy changes, revenue, expenses, tax, loss per share, inventories, receivables, borrowings, payables, and dividend policy [General Information](index=7&type=section&id=General%20Information) This section provides fundamental details about the company, including its establishment date, registration location, and primary business activities - ZhiXing Automotive Technology (Suzhou) Co., Ltd. was incorporated in Suzhou on December 27, 2016, primarily engaged in the development, manufacturing, and sales of **combined driving assistance solutions and products**[9](index=9&type=chunk) - The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on **December 20, 2023**[9](index=9&type=chunk) [Basis of Preparation](index=7&type=section&id=Basis%20of%20Preparation) This section outlines the accounting standards and disclosure provisions used in preparing the interim financial report - This interim financial report is prepared in accordance with the disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and **International Accounting Standard 34 'Interim Financial Reporting'**[10](index=10&type=chunk) - This interim financial report is unaudited, but financial information for the year ended December 31, 2024, is extracted from the published annual financial statements with an **unqualified opinion**[11](index=11&type=chunk) [Changes in Accounting Policies](index=8&type=section&id=Changes%20in%20Accounting%20Policies) This section details the application of new accounting standards and interpretations, noting their impact on the interim financial report - The Group has applied amendments to **IAS 21 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability'**, which had no significant impact on this interim report due to the absence of relevant foreign currency transactions[12](index=12&type=chunk) - The Group has not applied any new standards or interpretations that are **not yet effective** for the current accounting period[13](index=13&type=chunk) [Revenue and Segment Information](index=8&type=section&id=Revenue%20and%20Segment%20Information) This section provides an overview of the company's revenue streams and confirms its operation as a single business segment primarily in China - The Group primarily engages in the production, R&D, and sales of **combined driving assistance solutions and products** in China, operating as a single business segment[14](index=14&type=chunk) Revenue Analysis by Category (For the six months ended June 30) | Revenue Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Combined driving assistance solutions and products | 327,495 | 613,257 | | Autonomous driving related R&D services | 25,790 | 19,610 | | Sales of PCBA products | 12,708 | 3,290 | | **Total Revenue** | **365,993** | **636,157** | - For the six months ended June 30, 2025, impairment provisions for contract costs recognized significantly increased to approximately **RMB 1,475,000**, up from RMB 77,000 in the same period of 2024[18](index=18&type=chunk) [Other Income](index=10&type=section&id=Other%20Income) This section details the company's other income streams, primarily focusing on government subsidies received during the reporting period Other Income (For the six months ended June 30) | Income Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government grants | 2,904 | 2,198 | - Government grants are primarily utilized for **R&D expenses** and the construction of advanced industrial bases, with no unfulfilled conditions or contingent matters attached[22](index=22&type=chunk) [Other Losses – Net](index=11&type=section&id=Other%20Losses%20%E2%80%93%20Net) This section presents the net other losses, including fair value changes of financial instruments and exchange losses, for the six months ended June 30, 2025 Other Losses – Net (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net fair value gain on derivative financial instruments | – | 626 | | Net gain/(loss) on disposal of property, plant and equipment and intangible assets | 1 | (1) | | Net fair value gain/(loss) on financial assets at fair value through profit or loss | 1,280 | (5,708) | | Net exchange losses | (3,732) | (6,026) | | Others | 7 | 32 | | **Total** | **(2,444)** | **(11,077)** | [Loss Before Income Tax](index=11&type=section&id=Loss%20Before%20Income%20Tax) This section details the components contributing to the company's loss before income tax, including financial income and costs, and other operating expenses Finance Income and Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income from bank balances | 6,215 | 3,655 | | Interest on bank and other borrowings | (4,471) | (2,714) | | Interest on lease liabilities | (48) | (80) | | Less: Interest expenses capitalized into construction in progress | 2,683 | 602 | | **Net Finance Income** | **4,379** | **1,463** | Other Items of Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories | 339,370 | 567,442 | | Depreciation: Property, plant and equipment | 7,033 | 5,243 | | Depreciation: Right-of-use assets | 2,530 | 1,784 | | Research and development expenses | 156,526 | 99,587 | | Amortization of intangible assets | 5,055 | 2,942 | - Staff costs and depreciation expenses within R&D expenses amounted to **RMB 117,097,000** (2024: RMB 77,187,000) respectively[26](index=26&type=chunk) [Income Tax Expense](index=12&type=section&id=Income%20Tax%20Expense) This section details the company's income tax expenses and the preferential tax policies it benefits from as a high-tech enterprise Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax expense | 85 | 29 | | Deferred income tax expense | – | – | | **Income Tax Expense** | **85** | **29** | - As a high-tech enterprise, the company enjoys a **preferential corporate income tax rate of 15%**, with its qualification renewed until 2025[28](index=28&type=chunk) - Subsidiaries qualifying as small and micro enterprises benefit from a policy allowing their annual taxable income to be calculated at **25% and taxed at a 20% rate**, extended until December 31, 2027[28](index=28&type=chunk) - Enterprises engaged in R&D activities can deduct **200% of their R&D expenses** for tax purposes (super deduction)[29](index=29&type=chunk) [Loss Per Share](index=13&type=section&id=Loss%20Per%20Share) This section details the calculation of basic and diluted loss per share for the reporting period, considering the weighted average number of ordinary shares outstanding Basic Loss Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to ordinary equity holders of the Company (RMB thousand) | (177,946) | (98,629) | | Weighted average number of ordinary shares in issue (thousand shares) | 236,775 | 226,330 | | Basic loss per share (RMB) | (0.75) | (0.44) | - Diluted loss per share is **identical to basic loss per share**, as there were no potential dilutive ordinary shares outstanding during the period[32](index=32&type=chunk) [Inventories](index=13&type=section&id=Inventories) This section provides a breakdown of the company's inventory composition and the associated impairment provisions as of June 30, 2025 Inventory Composition (As of June 30, 2025) | Inventory Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw materials | 105,131 | 145,526 | | Work in progress | 15,559 | 9,840 | | Finished goods | 162,217 | 146,283 | | Less: Impairment provision | (2,892) | (2,706) | | **Total** | **280,015** | **298,943** | - For the six months ended June 30, 2025, recognized inventory impairment provisions significantly increased to approximately **RMB 4,048,000**, up from RMB 266,000 in the same period of 2024[35](index=35&type=chunk) [Trade and Other Receivables](index=14&type=section&id=Trade%20and%20Other%20Receivables) This section presents the company's trade receivables, including loss provisions and an aging analysis, as of June 30, 2025 Trade and Other Receivables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 273,987 | 227,360 | | Loss allowance | (6,980) | (5,239) | | **Total** | **267,007** | **222,121** | Aging Analysis of Trade Receivables (As of June 30, 2025) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 216,285 | 206,577 | | 3 to 6 months | 32,138 | 7,132 | | 6 to 12 months | 17,433 | 658 | | Over 12 months | 8,131 | 12,993 | [Borrowings](index=15&type=section&id=Borrowings) This section details the company's borrowing structure, including secured and unsecured bank loans and other loans, as of June 30, 2025 Borrowings Composition (As of June 30, 2025) | Borrowing Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current liabilities: Secured bank borrowings | 240,399 | 170,173 | | Current liabilities: Secured bank borrowings | 15,933 | – | | Current liabilities: Unsecured bank borrowings | 80,000 | 114,500 | | Current liabilities: Other loans | 30,000 | 30,000 | | Current liabilities: Interest payable | 187 | 225 | | **Total Borrowings** | **366,519** | **314,898** | - The Group pledged land use rights with a carrying amount of approximately **RMB 29,957,000** to banks as collateral for long-term bank borrowings of RMB 256,332,000[37](index=37&type=chunk) - The Group's borrowings are subject to interest rate changes and contract repricing or maturity dates, with **RMB 100,000,000** of borrowings maturing within six months[38](index=38&type=chunk) [Trade and Other Payables](index=16&type=section&id=Trade%20and%20Other%20Payables) This section provides a breakdown of the company's trade payables, other payables, and accrued expenses as of June 30, 2025 Trade Payables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Payables for materials | 136,932 | 114,918 | Other Payables and Accrued Expenses (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Payables for purchase of property, plant and equipment | 62,834 | 82,816 | | Salaries and welfare payables | 15,435 | 36,797 | | Accrued expenses | 30,948 | 39,019 | | Other tax payables | 2,389 | 2,762 | | Others | 34,503 | 25,161 | | **Total** | **146,109** | **186,555** | - Service fees for autonomous driving products collected from customers but not yet paid to suppliers amounted to approximately **RMB 30,559,000**[40](index=40&type=chunk) [Dividends](index=17&type=section&id=Dividends) This section confirms the company's dividend policy and the absence of any interim dividend payments or declarations during the reporting period - For the six months ended June 30, 2025 and 2024, the company **neither paid nor declared any dividends**[41](index=41&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews H1 2025 market conditions, business performance, financial position, liquidity, and capital sources, outlining future strategies despite market competition and revenue decline [Market Review](index=18&type=section&id=Market%20Review) This section reviews the H1 2025 automotive market in China, highlighting growth in production, sales, new energy vehicles, and the increasing penetration of intelligent driving systems - In H1 2025, China's auto production and sales grew by **12.5% and 11.4%** respectively, with new energy vehicle production and sales increasing by **41.4% and 40.3%**, achieving a market share of **44.3%**[43](index=43&type=chunk) - The market share of Chinese brand passenger vehicles reached **68.4%**, an increase of **6.5%** compared to the same period last year[43](index=43&type=chunk) - Chinese government departments introduced multiple policies to promote and regulate the intelligent driving industry, including making **Automatic Emergency Braking (AEB)** a mandatory standard and incorporating combined driving assistance systems and OTA into mandatory regulatory frameworks[44](index=44&type=chunk) - The penetration rate of **combined driving assistance systems** continues to increase, particularly rapidly in vehicle models priced below **RMB 200,000**[45](index=45&type=chunk) - Autonomous driving algorithm models are continuously upgrading, evolving from 'perception-decision' end-to-end large models to 'understanding-reasoning' **VLM/VLA large models**, enhancing generalization capabilities and scene understanding[46](index=46&type=chunk) [Business Review](index=19&type=section&id=Business%20Review) This section reviews the company's business performance, product deliveries, new OEM partnerships, and strategic advancements in autonomous driving and embodied AI - The Group is a Chinese intelligent driving solutions provider, offering **L2 to L2+ combined driving assistance solutions** and developing L3 to L4 autonomous driving solutions[47](index=47&type=chunk) - During the reporting period, the company delivered over **116,000 sets of combined driving assistance solutions and products**, representing a **20.8% year-on-year increase**[47](index=47&type=chunk) Revenue by Major Business Line (For the six months ended June 30) | Business Line | 2025 (RMB million) | 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Combined driving assistance solutions and products | 327.50 | 613.26 | -46.60% | | Intelligent driving related R&D services | 25.79 | 19.61 | +31.51% | | Sales of PCBA products | 12.71 | 3.29 | +286.26% | - Revenue from self-developed **iDC series combined driving assistance domain controllers** increased by **115.66%** year-on-year, and intelligent front-view camera revenue increased by **115.99%**, primarily due to mass production and delivery of new vehicle models[49](index=49&type=chunk) - During the reporting period, the company secured **19 nomination letters** from renowned OEM clients such as Chery Automobile, Geely Automobile, and Dongfeng Motor, with production expected in 2025 and 2026[52](index=52&type=chunk) - The **full-stack self-developed iDC500 combined driving assistance domain controller** officially entered mass production, and a strategic cooperation agreement was signed with Horizon Robotics to advance mass production based on the Journey 6 series[53](index=53&type=chunk) - The company is actively expanding into the **embodied AI** sector, establishing a wholly-owned subsidiary, Aimoxing Robotics (Suzhou) Co., Ltd., and signing an equity restructuring framework agreement with Suzhou Xiaogongjiang Robotics Co., Ltd[54](index=54&type=chunk) - The company is actively pursuing **overseas expansion** by forming a joint venture with Delloyd Technology Berhad in Malaysia to penetrate the Southeast Asian market[55](index=55&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) This section provides a detailed financial review, analyzing revenue, cost of sales, gross profit margin, R&D expenses, finance income, and net loss for the reporting period Revenue Breakdown and Proportion (For the six months ended June 30) | Revenue Category | 2025 (RMB thousand) | Proportion (%) | 2024 (RMB thousand) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Combined driving assistance domain controller solutions | 294,402 | 80.44% | 597,939 | 93.99% | | Intelligent front-view cameras | 33,093 | 9.04% | 15,318 | 2.41% | | Intelligent driving related R&D services | 25,790 | 7.05% | 19,610 | 3.08% | | Sales of PCBA products | 12,708 | 3.47% | 3,290 | 0.52% | | **Total** | **365,993** | **100.00%** | **636,157** | **100.00%** | - Revenue decreased by **42.47%**, primarily due to reduced demand from OEM clients, with a decline in Supervision product sales offset by an increase in **iDC series product sales**[56](index=56&type=chunk) - Cost of sales and services decreased by **40.99%** year-on-year to **RMB 348.92 million**, consistent with the revenue decline[59](index=59&type=chunk) - Gross profit margin decreased from **7.05%** in H1 2024 to **4.67%**, mainly due to strategic price reductions for certain iDC and iFC products to expand market share and maintain customer loyalty[60](index=60&type=chunk) - R&D expenses increased by **57.18%** year-on-year to **RMB 156.53 million**, with the percentage of revenue rising from 15.65% to 42.77%, primarily due to increased investment in self-developed new products and intelligent driving technologies[65](index=65&type=chunk) - Finance income increased by **RMB 2.56 million** year-on-year to **RMB 6.22 million**, mainly due to increased cash from the completion of a placing in February 2025[66](index=66&type=chunk) - Loss for the period increased by **80.42%** year-on-year to **RMB 177.95 million**, and loss attributable to owners of the parent increased by **80.38%** to **RMB 177.88 million**[68](index=68&type=chunk)[69](index=69&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) This section analyzes the company's cash flow from operating, investing, and financing activities, along with changes in net current assets, inventories, borrowings, and capital expenditure - Net cash outflow from operating activities decreased from **RMB 406.91 million** in H1 2024 to **RMB 97.51 million** in the current reporting period, primarily due to reduced raw material purchases[70](index=70&type=chunk) - Net cash inflow from investing activities was **RMB 65.71 million**, compared to a net outflow of RMB 168.73 million in H1 2024, mainly due to higher redemptions of financial assets at fair value through profit or loss[70](index=70&type=chunk) - Net cash inflow from financing activities significantly increased to **RMB 230.08 million**, up from RMB 65.37 million in H1 2024, primarily due to investment proceeds from a placing completed in February 2025[71](index=71&type=chunk) - Net current assets were **RMB 661.72 million** as of June 30, 2025, slightly lower than RMB 673.13 million as of December 31, 2024[72](index=72&type=chunk) - Inventories decreased by **6.33%** to **RMB 280.02 million**, but average inventory turnover days increased from 92 to 149, mainly due to advance stock-piling for headquarters relocation[73](index=73&type=chunk) - Total borrowings increased by **16.39%** to **RMB 366.52 million**[74](index=74&type=chunk)[77](index=77&type=chunk) - The gearing ratio increased from **29.20%** as of June 30, 2024, to **40.37%** as of June 30, 2025[78](index=78&type=chunk) - Total capital expenditure increased by **51.29%** to **RMB 124.43 million**, primarily for new plant infrastructure and equipment purchases[80](index=80&type=chunk) - Staff costs increased by **31.87%** to **RMB 127.07 million**, mainly due to higher labor costs for R&D and management personnel, with total employees rising to 559[84](index=84&type=chunk) [Significant Investments](index=28&type=section&id=Significant%20Investments) This section confirms the absence of any significant investments during the reporting period, apart from the utilization of proceeds from global offerings and placings - As of June 30, 2025, the Group had **no significant investments** or other future major investment and capital asset plans, apart from utilizing the remaining net proceeds from global offerings and placings[85](index=85&type=chunk) [Significant Acquisitions and Disposals](index=28&type=section&id=Significant%20Acquisitions%20and%20Disposals) This section confirms that the company did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - During the reporting period, the Group had **no significant acquisitions or disposals** of subsidiaries, associates, or joint ventures[86](index=86&type=chunk) [Future Strategies and Outlook](index=28&type=section&id=Future%20Strategies%20and%20Outlook) This section outlines the company's strategic direction, focusing on product optimization, R&D investment, market expansion, value chain integration, and diversification into embodied AI - 2025 is expected to be the inaugural year for widespread intelligent driving, with a significant increase in penetration, and the company will offer **cost-effective solutions** to meet diverse vehicle demands[87](index=87&type=chunk) - China's auto exports reached new highs, intelligent driving features are increasingly crucial in new energy vehicles, and the **embodied AI industry** is rapidly developing with clear synergistic trends with intelligent driving technology[88](index=88&type=chunk) - The company will continuously optimize existing product lines, expand **in-house manufacturing capabilities**, provide more cost-effective solutions through technological advancements and supply chain optimization, and enhance supply chain and manufacturing digitalization[89](index=89&type=chunk) - Increased R&D investment will deepen **VLA large model deployment**, improve the full-link data closed-loop system, optimize self-developed software middleware, and strengthen cooperation with Horizon Robotics to build integrated cockpit-driving and central vehicle computing platforms[90](index=90&type=chunk) - The company will deepen cooperation with existing clients, expand into more vehicle models, increase the size of its sales and marketing teams, and collaborate with strategic partners to **enlarge its OEM client base**[91](index=91&type=chunk) - Enhancing value chain integration involves collaborating with top international SoC suppliers and Horizon Robotics, deepening partnerships with sensor suppliers, and planning to strengthen **vertical integration capabilities** through investments or M&A[92](index=92&type=chunk) - A firm **overseas expansion strategy** includes supporting Chinese OEM outbound businesses, actively developing international clients, planning a global sales and service network, and leveraging strategic overseas shareholder resources to establish international alliances[93](index=93&type=chunk) - Actively exploring diversified business models involves promoting domain controllers in **unmanned logistics** and increasing investment in embodied AI, exploring cooperation opportunities in main controllers, key components, and algorithms[94](index=94&type=chunk) [Corporate Governance and Other Information](index=31&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's corporate governance practices, including code compliance, securities dealing standards, interim dividend policy, use of proceeds from offerings, post-reporting events, and financial statement review [Corporate Governance Code](index=31&type=section&id=Corporate%20Governance%20Code) This section outlines the company's adherence to the Corporate Governance Code, noting an exception regarding the combined roles of Chairman and CEO - The company has complied with all applicable code provisions of the **Corporate Governance Code**, with the exception of code provision C.2.1[95](index=95&type=chunk) - The roles of Chairman and Chief Executive Officer are held by the same individual (Mr. Song Yang), an arrangement the Board believes facilitates **unified leadership and effective executive function**, with the Board's structure ensuring a balance of power[95](index=95&type=chunk) [Standard Code for Securities Transactions](index=31&type=section&id=Standard%20Code%20for%20Securities%20Transactions) This section confirms the company's adoption and compliance with the Standard Code for Securities Transactions by its directors and supervisors - The company has adopted the **Standard Code for Securities Transactions by Directors of Listed Issuers**, and all directors and supervisors confirmed compliance during the reporting period[96](index=96&type=chunk) [Interim Dividend](index=31&type=section&id=Interim%20Dividend) This section reiterates the Board's decision not to recommend an interim dividend for the reporting period, consistent with the prior year - The Board does not recommend an **interim dividend** for the reporting period, consistent with H1 2024[97](index=97&type=chunk) [Use of Proceeds from Global Offering](index=32&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) This section details the allocation and utilization of net proceeds from the global offering, including amounts used for R&D, capital expenditure, and sales network expansion - The net proceeds from the global offering amounted to approximately **RMB 575.83 million**[98](index=98&type=chunk) Use of Proceeds from Global Offering (As of June 30, 2025) | Purpose | Proportion (%) | Net Proceeds (RMB million) | Unutilized as of Jan 1, 2025 (RMB million) | Actual Use during Period (RMB million) | Unutilized as of June 30, 2025 (RMB million) | Expected Time for Full Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Enhance R&D for autonomous driving solutions and products | 45.0% | 259.12 | 43.88 | 43.88 | 0 | Fully utilized | | Capital expenditure for R&D headquarters, production plants, and new production lines | 35.0% | 201.54 | 18.43 | 18.43 | 0 | Fully utilized | | Expand sales and service network | 10.0% | 57.58 | 44.03 | 5.60 | 38.43 | Before end of 2026 | | Working capital and general corporate purposes | 10.0% | 57.58 | 0 | – | – | Fully utilized | | **Total** | **100.0%** | **575.83** | **106.34** | **67.91** | **38.43** | | - As of June 30, 2025, approximately **RMB 38.43 million** of net proceeds from the global offering remained unutilized, expected to be fully utilized before the end of 2026[99](index=99&type=chunk) [Use of Proceeds from 2024 Placing of New H Shares](index=33&type=section&id=Use%20of%20Proceeds%20from%202024%20Placing%20of%20New%20H%20Shares) This section details the allocation and utilization of net proceeds from the 2024 placing of new H shares, including amounts for R&D, capital expenditure, and overseas expansion - The net proceeds from the 2024 placing amounted to approximately **HKD 73.28 million**[100](index=100&type=chunk) Use of Proceeds from 2024 Placing (As of June 30, 2025) | Purpose | Proportion (%) | Net Proceeds (HKD million) | Unutilized as of Jan 1, 2025 (HKD million) | Actual Use during Period (HKD million) | Unutilized as of June 30, 2025 (HKD million) | Expected Time for Full Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Enhance R&D for advanced intelligent driving, cockpit-driving integrated solutions and products | 40.0% | 29.30 | 8.26 | 8.26 | 0 | Fully utilized | | Enhance capital expenditure for R&D and production facilities | 20.0% | 14.66 | 0 | – | – | Fully utilized | | Expand overseas sales and service network | 20.0% | 14.66 | 12.36 | 1.28 | 11.08 | Before end of 2026 | | Working capital and general corporate purposes | 20.0% | 14.66 | 5.31 | 5.31 | 0 | Fully utilized | | **Total** | **100.0%** | **73.28** | **25.93** | **14.85** | **11.08** | | - As of June 30, 2025, approximately **HKD 11.08 million** of net proceeds from the 2024 placing remained unutilized, expected to be fully utilized before the end of 2026[101](index=101&type=chunk) [Use of Proceeds from 2025 Placing of New H Shares](index=34&type=section&id=Placing%20of%20New%20H%20Shares%20under%20General%20Mandate%20during%20the%20Reporting%20Period) This section details the allocation and utilization of net proceeds from the 2025 placing of new H shares, including amounts for R&D, capital expenditure, and working capital - The company completed the placing of **11,190,200 new H shares** in February 2025, with net proceeds amounting to approximately **HKD 228.37 million**[102](index=102&type=chunk) Use of Proceeds from 2025 Placing (As of June 30, 2025) | Purpose | Proportion (%) | Net Proceeds (HKD million) | Actual Use during Period (HKD million) | Unutilized as of June 30, 2025 (HKD million) | Expected Time for Full Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Enhance R&D for advanced intelligent driving, cockpit-driving integrated solutions and products | 60.0% | 137.02 | 76.27 | 60.75 | Before end of 2025 | | Enhance capital expenditure for R&D and production facilities | 10.0% | 22.84 | 5.53 | 17.31 | Before end of 2025 | | Expand overseas sales and service network | 5.0% | 11.42 | 0 | 11.42 | Before end of 2026 | | Working capital and general corporate purposes | 25.0% | 57.09 | 57.09 | 0 | Fully utilized | | **Total** | **100.0%** | **228.37** | **138.89** | **89.48** | | - As of June 30, 2025, approximately **HKD 89.48 million** of net proceeds from the 2025 placing remained unutilized, with most expected to be fully utilized before the end of 2025[104](index=104&type=chunk) [Purchase, Redemption or Sale of Listed Securities](index=35&type=section&id=Purchase%2C%20Redemption%20or%20Sale%20of%20Listed%20Securities) This section reports on the company's transactions involving its own listed securities, specifically noting purchases for a share award scheme - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, except for the trustee of the first H share award scheme purchasing **2,104,000 H shares** for a total consideration of **HKD 29.52 million**[105](index=105&type=chunk) - As of June 30, 2025, the company **held no treasury shares**[106](index=106&type=chunk) [Review of Financial Statements by Audit Committee](index=35&type=section&id=Review%20of%20Financial%20Statements%20by%20Audit%20Committee) This section confirms the Audit Committee's review of the unaudited interim financial statements and its satisfaction with their preparation and disclosure - The Audit Committee has reviewed the Group's unaudited consolidated financial statements and interim results for the six months ended June 30, 2025, deeming them prepared in accordance with **applicable accounting standards, laws, and regulations**, with appropriate disclosures[107](index=107&type=chunk) [Significant Events After Reporting Period](index=35&type=section&id=Significant%20Events%20After%20Reporting%20Period) This section discloses significant events occurring after the reporting period, including a subsequent placing of new H shares and its intended use of proceeds - In July 2025, the company completed a second placing, allotting and issuing **15,495,000 new H shares** with net proceeds of approximately **HKD 230.7 million**[108](index=108&type=chunk) - Net proceeds from the second 2025 placing will be used to enhance R&D for **advanced intelligent driving and cockpit-driving integrated solutions**, boost capital expenditure for R&D and production facilities, fund R&D, M&A for the company's robotics business, and for working capital and general corporate purposes[108](index=108&type=chunk) - Aside from the aforementioned disclosures, as of the announcement date, there were **no other significant events** materially impacting the Group's operations and financial performance[109](index=109&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=36&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This section informs stakeholders about the availability of the interim results announcement on the Stock Exchange and company websites, with the interim report to follow - This announcement has been published on the **Stock Exchange website and the company's website**, with the interim report to be dispatched to shareholders requesting printed copies and posted on the aforementioned websites in due course[110](index=110&type=chunk)

Core Viewpoint - The automotive industry is on the brink of a revolution driven by smart technology, with 2025 expected to be a pivotal year for the adoption of Level 3 (L3) automation, particularly in urban environments [1][2]. Group 1: Automotive Smart Technology - L3 automation is anticipated to significantly influence consumer purchasing decisions, becoming one of the top three considerations when buying a car [1]. - The penetration rate of L3 automation is projected to increase from 10% in 2025 to over 80% by 2027, indicating a rapid adoption phase [1]. - The future automotive landscape is expected to be categorized into three types of companies: B-end Robotaxi operators, C-end personalized brands, and high-end vehicle manufacturers [2]. Group 2: Market Trends and Developments - In August, the penetration rate of urban NOA (Navigation on Autopilot) reached 23.2%, reflecting a month-on-month increase of 0.9 percentage points [3]. - Companies like Li Auto and XPeng are leading in smart technology adoption, with XPeng's smart technology penetration exceeding 70% and Li Auto's at 59.4%, despite a slight decline [3]. - The introduction of next-generation driving architectures, such as VLA, is being implemented in new models, enhancing the capabilities of smart driving systems [3]. Group 3: Investment Recommendations - The report suggests a focus on smart vehicles and related components, highlighting companies in both Hong Kong and A-share markets, such as XPeng Motors, Li Auto, BYD, and SAIC Motor [4]. - Investment opportunities are identified in AI chips, domain controllers, and electronic components, with specific companies recommended for each category [4].

Core Insights - Zhixing Technology has signed a strategic cooperation agreement with Fourier Intelligent Technology to promote innovation in embodied intelligence and automation industries [1] - The collaboration will focus on key components of embodied intelligence, such as robot main controllers, and scene robots through technology cooperation, joint development, and resource synergy [1] Group 1: Collaboration Details - The partnership aims to develop a new generation of main controllers that are high real-time, cost-effective, and flexible to meet the industry's mass production needs [1] - Joint experimental development will be conducted on existing scene robot structures to leverage both companies' technical capabilities and industrial resources [1] - The collaboration will enhance robot capabilities in environmental perception, task understanding, human-machine interaction, and scene decision-making through deep technical communication and cooperation on algorithms and data sets [1] Group 2: Company Strengths - Zhixing Technology has a strong technical foundation in high-performance domain controller design and manufacturing, as well as in auxiliary driving perception decision algorithms, which supports its transition into the embodied intelligence field [2] - Fourier is recognized as a leading global enterprise in general robotics, with significant advantages in robot system development, scene applications, and market promotion, being one of the few companies capable of commercial mass production in the robotics industry [2]