第 1 頁 共 10 頁 v 1.1.1 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9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 英恒科技控股有限公司 呈交日期: 2025年10月8日 I. 法定/註冊股本變動 | 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) | 01760 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,400,000,000 | HKD | | 0.01 | HKD | | 24,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 2,400,000,000 | HKD | | 0.01 | HKD | | 2 ...

[Company Information](index=3&type=section&id=Company%20Information) [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The company's board comprises executive and independent non-executive directors, supported by audit, remuneration, nomination, and ESG committees to ensure effective corporate governance - Executive directors include Mr. Lu Yingming (Chairman and Co-CEO), Mr. Chen Changyi (Co-CEO), Mr. Chen Ming, and Mr. Huang Xihua[3](index=3&type=chunk) - Independent non-executive directors include Mr. Jiang Yongwei (Chairman of Remuneration Committee), Mr. Xu Rongguo (Chairman of Audit Committee), and Ms. Han Shuting[3](index=3&type=chunk) - The company has four main committees: Audit, Remuneration, Nomination, and Environmental, Social and Governance, with board members serving in these roles[3](index=3&type=chunk) [Company Basic Information](index=3&type=section&id=Company%20Basic%20Information) The company is registered in the Cayman Islands, with its principal place of business in Hong Kong Science Park, maintaining relationships with major banks like Bank of China and Shanghai Bank, and its stock code is 1760 - Registered office in the Cayman Islands, with Hong Kong head office and principal place of business in Hong Kong Science Park, Pak Shek Kok, Shatin, New Territories[3](index=3&type=chunk) - Major bankers include Bank of China, Shanghai Bank, Bank of China (Hong Kong) Limited, BNP Paribas, Hang Seng Bank Limited, and The Hongkong and Shanghai Banking Corporation Limited[4](index=4&type=chunk) - The company's stock code is 1760, and its official website is www.intron-tech.com[4](index=4&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) [Overview](index=4&type=section&id=Overview) In H1 2025, China's auto market saw 11.4% sales growth, driven by "trade-in" policies and NEV demand, despite intensified price wars impacting profit margins, while the Group achieved 5% revenue growth and launched the GRC1.0 high-performance controller for robotics - In H1 2025, China's automobile sales reached **15.653 million units**, a **year-on-year increase of 11.4%**; new energy vehicle sales reached **6.937 million units**, a **year-on-year increase of 40.3%**, accounting for **44.3% of total new car sales**[6](index=6&type=chunk) - Intensified price competition in the automotive industry led to a profit margin of **4.3% in 2024**, further declining to **3.9% in Q1 2025**[6](index=6&type=chunk) - The Group's revenue increased by **5% year-on-year**, achieving a breakthrough in the robotics industry with the launch of the GRC1.0 high-performance controller solution, integrating automotive electronics experience into robotics[6](index=6&type=chunk)[7](index=7&type=chunk)[9](index=9&type=chunk) [Business Review](index=5&type=section&id=Business%20Review) In H1 2025, despite a weak and competitive automotive electronics market, the Group achieved robust business growth with total revenue up 5% to RMB 2.97 billion, driven by strong performance in safety systems and cloud servers, though gross margin declined to 13.5% due to price wars, resulting in a 50% decrease in net profit to RMB 49.7 million 2025 H1 Revenue Breakdown by Product Category | Product Category | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | Year-on-year Change (%) | | :------- | :--------------------- | :--------------------- | :----------- | | New Energy | 1,437,848 | 1,452,608 | -1% | | Body Systems | 314,404 | 422,691 | -26% | | Safety Systems | 451,568 | 355,382 | 27% | | Powertrain Systems | 185,189 | 161,112 | 15% | | Intelligent Driving & Connectivity | 230,548 | 229,860 | 0% | | Cloud Servers | 255,444 | 108,783 | 135% | | Services & Others | 91,321 | 104,595 | -13% | | **Total** | **2,966,322** | **2,835,031** | **5%** | 2025 H1 Gross Profit and Gross Margin | Metric | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Year-on-year Change (%) | | :----- | :-------------------------- | :-------------------------- | :----------- | | Gross Profit | 401.0 | 452.0 | -11% | | Gross Margin | 13.5% | 15.9% | -2.4 ppts | - Profit attributable to shareholders for the period was **RMB 49.7 million**, compared to RMB 97.7 million in the same period last year, with a net profit margin of **1.6%**[15](index=15&type=chunk) - Added **112 new mass production projects**, including **10 involving export models or overseas clients**, expanding client base to major Japanese and European automakers and Tier 1 suppliers[15](index=15&type=chunk) [Core Solutions for New Energy Vehicles](index=7&type=section&id=Core%20Solutions%20for%20New%20Energy%20Vehicles) New energy sector revenue remained flat at RMB 1.438 billion, accounting for 48.5% of total revenue, with continued growth in MCU and BMS, and the "motor controller power brick" achieving industry-leading levels, with ongoing efforts to enhance mass production and develop higher power density solutions - New energy business revenue was **RMB 1,437.8 million**, accounting for **48.5% of total revenue**, similar to the same period last year[17](index=17&type=chunk) - The core component "motor controller power brick" has reached industry-leading levels in key indicators such as power density, integration, and reliability, with mass production in the ramp-up phase[17](index=17&type=chunk) - The Group will continue to develop higher power density solutions, including cost-effective hybrid solutions combining silicon carbide and silicon[17](index=17&type=chunk) [Body/Safety/Powertrain System Solutions](index=7&type=section&id=Body%2FSafety%2FPowertrain%20System%20Solutions) Body system revenue decreased by 26% to RMB 314 million due to market competition and strategic choices, while powertrain solutions grew 15% benefiting from commercial vehicle electrification, and safety system solutions increased 27% driven by active suspension and new braking/steering projects, with increased R&D planned for synergy with intelligent driving systems - Body system business revenue decreased by **26% to RMB 314.4 million**, accounting for **10.6% of total revenue**, primarily due to market competition and the Group's strategic choices regarding low-margin businesses[18](index=18&type=chunk) - Powertrain system solutions grew by **15%**, accounting for **6.2% of the Group's total revenue**, benefiting from the growth in the commercial vehicle market and electrification progress[18](index=18&type=chunk) - Safety system solutions recorded a **27% increase in revenue**, accounting for **15.2% of the Group's total revenue**, mainly driven by increased adoption of active suspension systems and mass production of new braking and steering projects[18](index=18&type=chunk) [Intelligent Driving and Connectivity Solutions](index=8&type=section&id=Intelligent%20Driving%20and%20Connectivity%20Solutions) Intelligent driving and connectivity business revenue remained flat at RMB 231 million, accounting for 7.8% of total revenue, with the Group launching its first L3-capable system solution, actively developing Horizon Journey® 6 related solutions, releasing pre-fusion perception solutions, and introducing the MADC4.0 next-generation system-level domain controller based on Journey® 6E/M platforms to enhance intelligent driving technology and market competitiveness - Intelligent driving and connectivity business revenue was **RMB 230.5 million**, accounting for **7.8% of total revenue**, consistent with the same period last year[20](index=20&type=chunk) - The Group has launched its first L3-capable system solution and plans to optimize its cost-effectiveness for lower-cost vehicle models[20](index=20&type=chunk) - Actively investing in the development of Horizon Journey® 6 related solutions, releasing pre-fusion perception solutions based on Journey® 6, and introducing the MADC4.0 next-generation system-level domain controller solution, supporting L2+ advanced driving assistance functions[20](index=20&type=chunk)[21](index=21&type=chunk) [Cloud Server Related Solutions](index=8&type=section&id=Cloud%20Server%20Related%20Solutions) Cloud server related solutions business revenue increased by 135% to RMB 255 million, primarily driven by growing customer demand for AI services and private server/cloud infrastructure, with the Group continuing to strengthen R&D investment in core cloud computing technologies - Cloud server related business revenue increased by **135% to RMB 255.4 million**[22](index=22&type=chunk) - The main growth drivers are customer demand for AI services and the establishment of private servers and private clouds[22](index=22&type=chunk) [Research and Development and Group Development](index=9&type=section&id=Research%20and%20Development%20and%20Group%20Development) R&D is central to the Group's strategy, with H1 2025 R&D expenses at RMB 220 million (7.4% of revenue) and 950 R&D personnel (70.9% of total staff), as the Group collaborates with eSOL to enhance automotive electronics testing, secures multiple awards in chassis and safety systems, and achieves a breakthrough in robotics with the GRC1.0 high-performance controller, anticipating high growth in robotics solutions revenue - In H1 2025, R&D expenses were **RMB 219.9 million**, accounting for approximately **7.4% of the Group's revenue**, with **950 R&D personnel**, representing **70.9% of the total workforce**[23](index=23&type=chunk) - The Group holds **394 patents and 329 software copyrights**, with an additional **267 patents pending**[23](index=23&type=chunk) - The Group continues to advance its ESG initiatives, setting greenhouse gas emission reduction targets and maintaining stable performance across multiple ESG rating agencies[24](index=24&type=chunk) [R&D Progress in Automotive Sector](index=9&type=section&id=R%26D%20Progress%20in%20Automotive%20Sector) The Group partnered with eSOL Co., Ltd. to integrate its high-security RTOS platform into automotive electronics, enhanced testing capabilities through CNAS re-accreditation, secured multiple project awards in chassis and safety systems, and completed the second phase of the Nantong R&D base to boost power brick product prototyping and small-batch delivery, targeting million-unit scale delivery by 2027 - Established a strategic partnership with eSOL Co., Ltd. to integrate its high-security and scalable Real-Time Operating System (RTOS) platform products into the Group's automotive electronics and software solutions[25](index=25&type=chunk) - The testing and validation center passed the re-assessment by the China National Accreditation Service for Conformity Assessment (CNAS), possessing various testing capabilities including electromagnetic compatibility, electrical performance, and environmental reliability[27](index=27&type=chunk) - The second phase of the Nantong R&D base renovation was completed, adding approximately **3,000 square meters** of usable area, establishing complete prototyping and small-batch delivery capabilities for power brick products, targeting million-unit scale delivery of inverter bricks and power modules by **2027**[28](index=28&type=chunk) [R&D Progress in Robotics Sector](index=10&type=section&id=R%26D%20Progress%20in%20Robotics%20Sector) The Group strategically advanced its robotics initiatives, with the Hong Kong R&D center accelerating solution deployment and international expansion, achieving breakthroughs in multi-modal perception, fusion localization, and joint module drive control, and successfully developing the GRC1.0 high-performance controller based on the Digua Robot RDK S100 platform in H1 2025, which is expected to drive high growth in robotics-related solutions revenue - The Hong Kong R&D center is accelerating the deployment of robotics solutions and international business expansion, achieving significant research and development results in multi-modal perception, fusion localization, and joint module drive and control[29](index=29&type=chunk) - Successfully developed the GRC1.0 high-performance controller solution, designed for embodied intelligent robots and industrial automation scenarios, featuring a high-reliability system architecture, powerful real-time control capabilities, integration of advanced technologies, and mass production-friendly design[29](index=29&type=chunk)[33](index=33&type=chunk) - The introduction of the GRC1.0 controller significantly lowers R&D barriers and supply chain management costs for robot manufacturers, with robotics-related solutions expected to maintain high growth in the Group's revenue going forward[31](index=31&type=chunk) [Outlook](index=11&type=section&id=Outlook) In the second half, China's NEV market will continue to grow, with emerging markets offering opportunities for Chinese automakers to expand globally, as the Group commits to technological innovation, increased investment in NEV and autonomous driving technologies, and the integration of AI with cloud server technologies, anticipating over 100 new mass production projects across various domains, including R&D for export markets, to solidify its domestic position and accelerate international expansion for long-term sustainable growth - In the second half, China's new energy vehicle penetration rate is expected to further increase, with emerging markets such as Southeast Asia and Latin America providing growth opportunities for Chinese automakers expanding overseas[32](index=32&type=chunk) - The Group will increase investment in new energy vehicles and autonomous driving technologies, and collaborate with chip manufacturers and cloud service providers to build comprehensive solutions, accelerating service upgrades and transformation[32](index=32&type=chunk) - The number of new mass production projects is expected to exceed **100**, covering chassis systems, ADAS, MCU, BMS, thermal management technology, in-car wireless charging units, and electronic and electrical architecture (EEA), with some projects developed for export markets or overseas customer needs[37](index=37&type=chunk)[38](index=38&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) In H1 2025, the Group's total revenue grew 5% year-on-year to RMB 2.966 billion, driven by strong performance in safety systems and cloud servers, while gross profit decreased 11% to RMB 401 million, with gross margin falling to 13.5% due to price competition, and other income/gains increased 55% to RMB 19.2 million, primarily from government grants, resulting in a 50% decrease in profit for the period to RMB 48.0 million, impacted by lower gross profit and increased exchange losses, though finance costs decreased 5% due to loan structure adjustments 2025 H1 Revenue, Gross Profit and Gross Margin | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Year-on-year Change (%) | | :----- | :-------------------------- | :-------------------------- | :----------- | | Total Revenue | 2,966,322 | 2,835,031 | 5% | | Gross Profit | 401,046 | 451,966 | -11% | | Gross Margin | 13.5% | 15.9% | -2.4 ppts | 2025 H1 Other Income and Gains | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Year-on-year Change (%) | | :----------- | :-------------------------- | :-------------------------- | :----------- | | Other Income and Gains | 19,177 | 12,340 | 55% | 2025 H1 Finance Costs and Profit for the Period | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Year-on-year Change (%) | | :------- | :-------------------------- | :-------------------------- | :----------- | | Finance Costs | 53,841 | 56,932 | -5% | | Profit for the Period | 47,975 | 95,093 | -50% | [Liquidity and Financial Resources](index=15&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group maintained a sound liquidity position with cash and cash equivalents of RMB 679 million and net current assets of RMB 1.376 billion, while the net debt-to-equity ratio decreased to 47%, with capital expenditures primarily allocated to R&D equipment and infrastructure 2025 H1 Liquidity Position | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--------------- | :----------------------------- | :------------------------------ | | Cash and Cash Equivalents | 678.5 | 916.2 | | Net Current Assets | 1,375.6 | 1,716.4 | | Net Debt-to-Equity Ratio | 47% | 50% | - Capital expenditure for the first half of the year was **RMB 36.2 million**, mainly for increasing R&D equipment and improving R&D infrastructure[53](index=53&type=chunk) - Outstanding bank loans amounted to **RMB 1,636.3 million**, with pledged deposits of **RMB 129.6 million** as collateral[54](index=54&type=chunk) [Interim Dividend](index=15&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the review period - The Directors do not recommend the payment of a dividend for the review period (six months ended June 30, 2024: nil)[55](index=55&type=chunk) [Material Events After Reporting Period](index=15&type=section&id=Material%20Events%20After%20Reporting%20Period) The Group had no material events requiring disclosure after the reporting period - The Group had no material events after the reporting period requiring disclosure[56](index=56&type=chunk) [Capital Commitments](index=16&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital commitments amounted to RMB 23.9 million, primarily for patents, plant, and machinery Capital Commitments | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :------------- | :----------------------------- | :------------------------------ | | Contracted but not provided for | 23.9 | 7.2 | [Significant Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=16&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) During the review period, the Group did not undertake any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the review period, the Group did not undertake any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[59](index=59&type=chunk) [Contingent Liabilities](index=16&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[60](index=60&type=chunk) [Exchange Rate Risk](index=16&type=section&id=Exchange%20Rate%20Risk) Operating primarily in China, the Group faces foreign exchange risk from RMB fluctuations against other currencies, which it manages by reducing net foreign currency positions, adjusting customer prices, and considering forward foreign exchange contracts - The Group primarily operates in China and is exposed to foreign exchange risk arising from fluctuations in exchange rates between RMB and other currencies used for business transactions[61](index=61&type=chunk) - The Group manages and mitigates losses from foreign currency exchange rate fluctuations by reducing net foreign currency positions, adjusting customer prices to transfer costs, and considering the use of forward foreign exchange contracts when necessary[61](index=61&type=chunk) [Employees and Remuneration Policy](index=16&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group employed 1,340 staff with total employee costs of RMB 252.4 million (8.5% of revenue), offering competitive remuneration including basic salary plus performance bonuses, specialized training, and a share option scheme for incentives, along with retirement benefit plans for Hong Kong and mainland China employees - As of June 30, 2025, the Group employed **1,340 staff**, with total employee costs of **RMB 252.4 million**, accounting for **8.5% of the period's revenue**[62](index=62&type=chunk) - The Group offers competitive basic salaries, annual performance bonuses, and specialized training, and incentivizes employees through a share option scheme[62](index=62&type=chunk)[64](index=64&type=chunk) - As of June 30, 2025, **70,621,550 share options** were outstanding under the share option scheme[64](index=64&type=chunk) [Use of Proceeds from Global Offering](index=17&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The company's 2018 global offering yielded net proceeds of HKD 767 million (approximately RMB 655 million), with most funds utilized as planned for R&D expansion, infrastructure, and general working capital, and the remaining RMB 47.0 million for "acquiring R&D capabilities" is expected to be fully utilized by the end of 2026 - Net proceeds from the global offering amounted to **HKD 766.7 million** (equivalent to **RMB 655.4 million**)[65](index=65&type=chunk) Use of Proceeds from Global Offering and Utilization Status | Use of Proceeds | Planned Use (RMB million) | % of Total Net Proceeds | Actual Utilization as of June 30, 2025 (RMB million) | Unutilized Net Proceeds as of June 30, 2025 (RMB million) | Expected Timeline for Utilizing Remaining Unutilized Net Proceeds | | :----------- | :---------------------- | :--------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------------------------------------- | | Expanding R&D capabilities | 196.6 | 30 | 196.6 | 0 | Not applicable | | Strengthening R&D infrastructure | 196.6 | 30 | 196.6 | 0 | Not applicable | | Acquiring R&D capabilities | 196.6 | 30 | 149.6 | 47.0 | Expected to be fully utilized by end of 2026 | | General working capital | 65.6 | 10 | 65.6 | 0 | Not applicable | | **Total** | **655.4** | **100** | **608.4** | **47.0** | | [Purchase, Sale or Redemption of the Company's Listed Securities](index=18&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) The company or its subsidiaries did not purchase, sell, or redeem any of its listed securities during the review period - The company or its subsidiaries did not purchase, sell, or redeem any of its listed securities during the review period[68](index=68&type=chunk) [Disclosure of Interests](index=19&type=section&id=Disclosure%20of%20Interests) [Interests and Short Positions of Substantial Shareholders in Shares and Underlying Shares](index=19&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, Magnate Era Limited, Treasure Map Ventures Limited, Heroic Mind Limited, and Zenith Benefit Investments Limited were corporate controlling shareholders, holding varying percentages of long positions in the company's shares, with Mr. Lu Yingming and Mr. Chen Changyi indirectly holding shares through these controlled corporations Interests of Substantial Shareholders in Shares | Shareholder Name | Nature of Interest | Number of Securities Held (L) | Approximate Percentage of Shareholding (%) | | :----------------------- | :------- | :--------------- | :------------------- | | Magnate Era Limited | Beneficial owner | 525,000,000 | 48.26% | | Treasure Map Ventures Limited | Beneficial owner | 75,000,000 | 6.89% | | Heroic Mind Limited | Beneficial owner | 75,000,000 | 6.89% | | Zenith Benefit Investments Limited | Beneficial owner | 43,970,000 | 4.04% | - Mr. Lu Yingming and Mr. Chen Changyi each beneficially own **50% of the shares** in Magnate Era and Zenith Benefit, respectively, while Mr. Lu also beneficially owns **100% of Treasure Map**, and Mr. Chen beneficially owns **100% of Heroic Mind**[71](index=71&type=chunk) [Interests and Short Positions of Directors and Chief Executive in Shares, Underlying Shares and Debentures of the Company or its Associated Corporations](index=20&type=section&id=Interests%20and%20Short%20Positions%20of%20Directors%20and%20Chief%20Executive%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20its%20Associated%20Corporations) As of June 30, 2025, Mr. Lu Yingming and Mr. Chen Changyi, along with their spouses, indirectly held 59.20% long positions in the company's ordinary shares through controlled corporations, while Mr. Chen Ming, Mr. Huang Xihua, Mr. Xu Rongguo, and Mr. Jiang Yongwei held minor beneficial shareholdings, and several directors held share options to subscribe for company shares Directors' and Chief Executive's Long Positions in Ordinary Shares | Shareholder Name | Nature of Interest | Number of Shares Held (L) | Approximate Percentage (%) | | :------- | :--------- | :--------------- | :------------- | | Mr. Lu | Interest in controlled corporation | 643,970,000 | 59.20% | | Mr. Chen | Interest in controlled corporation | 643,970,000 | 59.20% | | Ms. Zhang Dan | Spouse's interest | 643,970,000 | 59.20% | | Ms. Zhang Hui | Spouse's interest | 643,970,000 | 59.20% | | Mr. Chen Ming | Beneficial owner | 4,750,000 | 0.44% | | Mr. Huang Xihua | Beneficial owner | 3,760,000 | 0.35% | | Mr. Xu Rongguo | Beneficial owner | 90,000 | 0.01% | | Mr. Jiang Yongwei | Beneficial owner | 90,000 | 0.01% | Share Options Held by Directors | Name | Grant Date | Exercise Period | Balance as of June 30, 2025 (shares) | Exercise Price per Share (HKD) | | :------- | :----------- | :----------------- | :----------------------- | :---------------- | | Mr. Chen Ming | January 21, 2019 | January 1, 2020 to December 31, 2025 | 1,550,000 | 2.662 | | | May 18, 2021 | June 1, 2022 to May 31, 2028 | 200,000 | 4.25 | | Mr. Huang Xihua | January 21, 2019 | January 1, 2020 to December 31, 2025 | 1,500,000 | 2.662 | | | May 18, 2021 | June 1, 2022 to May 31, 2028 | 160,000 | 4.25 | | Mr. Jiang Yongwei | January 21, 2019 | January 1, 2020 to December 31, 2025 | 50,000 | 2.662 | | | May 18, 2021 | June 1, 2022 to May 31, 2028 | 40,000 | 4.25 | | Mr. Xu Rongguo | January 21, 2019 | January 1, 2020 to December 31, 2025 | 50,000 | 2.662 | | | May 18, 2021 | June 1, 2022 to May 31, 2028 | 40,000 | 4.25 | [Share Option Scheme](index=22&type=section&id=Share%20Option%20Scheme) The company's 2018 share option scheme terminated on May 27, 2024, with 70,621,550 unexercised options remaining, while a new 2024 share scheme was approved on May 27, 2024, under which no options or awards have been granted as of June 30, 2025, but 108,783,840 shares are available for grant - The 2018 Share Option Scheme terminated on **May 27, 2024**, but as of June 30, 2025, **70,621,550 share options** remained unexercised[78](index=78&type=chunk) - The 2024 Share Scheme was approved by shareholders on **May 27, 2024**, and as of June 30, 2025, no share options or awards have been granted under this scheme[79](index=79&type=chunk) - Under the 2024 Share Scheme, the number of share options and awards available for grant at the beginning and end of the period was **108,783,840**[79](index=79&type=chunk) Details of Unexercised Share Options under 2018 Share Option Scheme | Category | Grant Date | Exercise Period | Balance as of January 1, 2025 (shares) | Lapsed/Forfeited during the Period (shares) | Balance as of June 30, 2025 (shares) | Exercise Price per Share (HKD) | | :------------- | :----------- | :----------------- | :---------------------- | :-------------------- | :----------------------- | :---------------- | | Executive Directors | January 21, 2019 | January 1, 2020 to December 31, 2025 | 3,050,000 | – | 3,050,000 | 2.662 | | | May 18, 2021 | June 1, 2022 to May 31, 2028 | 360,000 | – | 360,000 | 4.25 | | Independent Non-executive Directors | January 21, 2019 | January 1, 2020 to December 31, 2025 | 100,000 | – | 100,000 | 2.662 | | | May 18, 2021 | June 1, 2022 to May 31, 2028 | 80,000 | – | 80,000 | 4.25 | | Employees | January 21, 2019 | January 1, 2020 to December 31, 2025 | 18,596,550 | 25,000 | 18,571,550 | 2.662 | | | September 30, 2020 | October 1, 2021 to September 30, 2027 | 2,925,000 | 75,000 | 2,850,000 | 2.810 | | | May 18, 2021 | June 1, 2022 to May 31, 2028 | 19,425,000 | 200,000 | 19,225,000 | 4.25 | | | November 25, 2022 | December 1, 2023 to May 30, 2029 | 11,240,000 | 900,000 | 10,340,000 | 4.324 | | | September 20, 2023 | October 1, 2024 to September 30, 2030 | 16,425,000 | 380,000 | 16,045,000 | 3.364 | | **Total** | | | **72,201,550** | **1,580,000** | **70,621,550** | | [Other Information](index=24&type=section&id=Other%20Information) [Corporate Governance Practices](index=24&type=section&id=Corporate%20Governance%20Practices) The company is committed to high corporate governance standards and has adopted the Corporate Governance Code, with the Board believing that the Chairman also serving as Co-CEO enhances decision-making efficiency, despite deviating from Code Provision C.2.1, due to appropriate checks and balances from independent non-executive directors - The company has adopted the code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules[85](index=85&type=chunk) - Mr. Lu Yingming serves as both the Chairman and Co-Chief Executive Officer of the company, which deviates from Code Provision C.2.1 of the Corporate Governance Code, but the Board believes this arrangement enhances decision-making and execution efficiency, with appropriate checks and balances in place[85](index=85&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=24&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted written guidelines no less exacting than the Model Code under the Listing Rules, and all directors confirmed compliance with both the code and guidelines during the review period and up to the report date - The company has adopted written guidelines on terms no less exacting than the Model Code set out in Appendix C3 to the Listing Rules[87](index=87&type=chunk) - All Directors have confirmed their compliance with the Model Code and the written guidelines throughout the review period and up to the date of this report[87](index=87&type=chunk) [Specific Performance Obligations of Controlling Shareholders under Financing Agreements](index=24&type=section&id=Specific%20Performance%20Obligations%20of%20Controlling%20Shareholders%20under%20Financing%20Agreements) The company entered into two financing agreements (Financing I and Financing II) with a syndicate for up to USD 180 million, which stipulate that lenders can cancel commitments and demand immediate repayment if ultimate controlling shareholders Mr. Lu Yingming and Mr. Chen Changyi collectively cease to beneficially own or control at least 51% of the company's or guarantor's issued share capital, an obligation that remains in effect as of the report date, with the two ultimate controlling shareholders jointly owning approximately 66% of the company's issued share capital - The company entered into Financing Agreement I (up to **USD 60 million**) and Financing Agreement II (up to **USD 120 million**) with a syndicate, with one purpose of Financing II being to refinance Financing Agreement I[88](index=88&type=chunk)[90](index=90&type=chunk) - The financing agreements stipulate that if the ultimate controlling shareholders, Mr. Lu Yingming and Mr. Chen Changyi, collectively cease to directly or indirectly beneficially own or control at least **51% of the issued share capital** or control of the company or the guarantor, the lenders may cancel the loan commitments and demand immediate repayment of all outstanding amounts[88](index=88&type=chunk)[90](index=90&type=chunk) - As of the date of this report, Mr. Lu Yingming and Mr. Chen Changyi jointly own approximately **66% of the company's issued share capital**, and this specific performance obligation remains in effect[92](index=92&type=chunk)[93](index=93&type=chunk) [Review by Audit Committee](index=25&type=section&id=Review%20by%20Audit%20Committee) The Audit Committee, composed of three independent non-executive directors with Mr. Xu Rongguo as chairman possessing financial expertise, has reviewed the Group's accounting principles, internal controls, and unaudited condensed consolidated interim financial statements, deeming them compliant with relevant accounting standards, rules, and regulations - The Audit Committee comprises three independent non-executive directors, with Mr. Xu Rongguo serving as chairman, possessing financial professional qualifications and experience in compliance with the Listing Rules[94](index=94&type=chunk) - The Committee has reviewed the Group's accounting principles, internal controls, and the unaudited condensed consolidated interim financial statements, deeming them compliant with relevant accounting standards, rules, and regulations[94](index=94&type=chunk) [Appointment of New Director](index=25&type=section&id=Appointment%20of%20New%20Director) Ms. Han Shuting was appointed as an independent non-executive director of the company, effective December 1, 2024, and has confirmed her understanding of her responsibilities as a director - Ms. Han Shuting was appointed as an independent non-executive director of the company, effective **December 1, 2024**[95](index=95&type=chunk) - Ms. Han Shuting has confirmed her understanding of her responsibilities as a director of the company[95](index=95&type=chunk) [Consolidated Statement of Profit or Loss](index=26&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group's revenue was RMB 2.966 billion, a 5% year-on-year increase, while gross profit was RMB 401 million, down 11%, and profit for the period significantly decreased by 50% to RMB 47.98 million, with basic and diluted earnings per share both at RMB 4.57 cents Key Data from Consolidated Statement of Profit or Loss | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :------------- | :-------------------------- | :-------------------------- | :------- | | Revenue | 2,966,322 | 2,835,031 | 5% | | Cost of sales | (2,565,276) | (2,383,065) | 7.6% | | Gross profit | 401,046 | 451,966 | -11.3% | | Other income and gains | 19,177 | 12,340 | 55.4% | | Selling and distribution expenses | (47,995) | (47,971) | 0.05% | | Administrative expenses | (256,328) | (248,806) | 3.0% | | Other expenses | (30,674) | (29,212) | 5.0% | | Finance costs | (53,841) | (56,932) | -5.4% | | Profit before tax | 31,441 | 81,693 | -61.5% | | Income tax credit | 16,534 | 13,400 | 23.4% | | Profit for the period | 47,975 | 95,093 | -49.5% | | Attributable to owners of the parent | 49,740 | 97,678 | -49.1% | | Non-controlling interests | (1,765) | (2,585) | -31.7% | | Basic earnings per share | RMB 4.57 cents | RMB 8.98 cents | -49.1% | | Diluted earnings per share | RMB 4.57 cents | RMB 8.98 cents | -49.1% | [Consolidated Statement of Comprehensive Income](index=27&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's profit for the period was RMB 47.98 million, with net other comprehensive income of RMB 5.80 million, primarily from exchange differences on translating foreign operations (RMB 17.50 million) partially offset by exchange differences on translating the company's accounts (RMB -11.70 million), resulting in total comprehensive income of RMB 53.77 million, a 42.3% year-on-year decrease Key Data from Consolidated Statement of Comprehensive Income | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--------------- | :-------------------------- | :-------------------------- | :------- | | Profit for the period | 47,975 | 95,093 | -49.5% | | Net other comprehensive income | 5,796 | (1,894) | N/A | | - Exchange differences on translating foreign operations | 17,499 | (7,918) | N/A | | - Exchange differences on translating the company's accounts | (11,703) | 6,024 | N/A | | Total comprehensive income for the period | 53,771 | 93,199 | -42.3% | | Attributable to owners of the parent | 55,536 | 95,784 | -42.0% | | Non-controlling interests | (1,765) | (2,585) | -31.7% | [Consolidated Statement of Financial Position](index=28&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total non-current assets were RMB 1.113 billion, and total current assets were RMB 4.488 billion, including inventories of RMB 1.326 billion and trade and bills receivables of RMB 1.686 billion, while total current liabilities were RMB 3.113 billion, primarily comprising interest-bearing bank and other borrowings of RMB 1.636 billion, resulting in net assets of RMB 2.476 billion and equity attributable to owners of the parent of RMB 2.476 billion Key Data from Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--------------- | :-------------------------- | :-------------------------- | :------- | | Total non-current assets | 1,113,067 | 1,073,047 | 3.7% | | Total current assets | 4,488,321 | 5,037,226 | -10.9% | | - Inventories | 1,325,650 | 1,332,966 | -0.5% | | - Trade and bills receivables | 1,685,814 | 2,352,870 | -28.3% | | - Cash and cash equivalents | 678,485 | 916,208 | -25.9% | | Total current liabilities | 3,112,763 | 3,320,788 | -6.2% | | - Interest-bearing bank and other borrowings | 1,636,264 | 1,742,945 | -6.1% | | Net current assets | 1,375,558 | 1,716,438 | -19.9% | | Net assets | 2,476,023 | 2,481,266 | -0.2% | | Equity attributable to owners of the parent | 2,476,334 | 2,479,826 | -0.1% | [Consolidated Statement of Changes in Equity](index=30&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the Group's total equity slightly decreased from RMB 2.481 billion at the beginning of the period to RMB 2.476 billion, with profit for the period at RMB 49.74 million and other comprehensive income at RMB 5.80 million, but a net reduction in equity due to declared and approved final dividends of RMB 62.84 million and transactions with non-controlling interests of RMB 0.49 million Key Data from Consolidated Statement of Changes in Equity | Metric | As of January 1, 2025 (RMB thousand) | Profit for the Period (RMB thousand) | Other Comprehensive Income for the Period (RMB thousand) | Final Dividend Declared and Approved (RMB thousand) | As of June 30, 2025 (RMB thousand) | | :--------------- | :-------------------------- | :-------------------- | :---------------------------- | :------------------------------------ | :-------------------------- | | Equity attributable to owners of the parent | 2,479,826 | 49,740 | 5,796 | (62,839) | 2,476,334 | | Non-controlling interests | 1,440 | (1,765) | – | – | (311) | | **Total Equity** | **2,481,266** | **47,975** | **5,796** | **(62,839)** | **2,476,023** | [Condensed Consolidated Statement of Cash Flows](index=31&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group's net cash flow from operating activities significantly increased to RMB 199 million, while net cash flow used in investing activities was RMB 66 million, and net cash flow used in financing activities was RMB 372 million, primarily due to a net decrease in bank and other borrowings, resulting in cash and cash equivalents of RMB 678 million at period-end, a decrease of RMB 239 million from the beginning of the period Key Data from Condensed Consolidated Statement of Cash Flows | Metric | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :------------------- | :-------------------------- | :-------------------------- | :------- | | Net cash flows from operating activities | 198,711 | 82,813 | 140.0% | | Net cash flows used in investing activities | (65,534) | (93,715) | -30.1% | | Net cash flows (used in)/from financing activities | (371,791) | 224,736 | N/A | | Net (decrease)/increase in cash and cash equivalents | (238,614) | 213,834 | N/A | | Cash and cash equivalents at end of period | 678,485 | 732,486 | -7.3% | [Notes to the Financial Statements](index=32&type=section&id=Notes%20to%20the%20Financial%20Statements) [General Information](index=32&type=section&id=General%20Information) The Group (Intron Technology Holdings Limited and its subsidiaries) specializes in developing automotive component engineering solutions for major Chinese automakers, with the company incorporated in the Cayman Islands on January 3, 2017 - The Group specializes in developing automotive component engineering solutions for major Chinese automobile manufacturers[108](index=108&type=chunk) - The company was incorporated as a limited liability company in the Cayman Islands on **January 3, 2017**[108](index=108&type=chunk) [Basis of Presentation](index=32&type=section&id=Basis%20of%20Presentation) These financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and Appendix D2 of the Listing Rules, using the historical cost convention and presented in RMB, with all values rounded to the nearest thousand - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Listing Rules[109](index=109&type=chunk) - The financial statements are prepared under the historical cost convention and presented in RMB, with all values rounded to the nearest thousand[109](index=109&type=chunk) [Changes in Accounting Policies and Disclosures](index=32&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) The accounting policies adopted for these financial statements are consistent with those applied in the 2024 annual consolidated financial statements, with the only change being the initial adoption of new and revised Hong Kong Financial Reporting Standards issued by the HKICPA, among which the amendment to HKAS 21 "Lack of Exchangeability" had no significant financial impact on the financial statements - The accounting policies adopted for these financial statements are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended **December 31, 2024**[110](index=110&type=chunk) - The amendment to HKAS 21 "Lack of Exchangeability" had no significant financial impact on these financial statements[111](index=111&type=chunk) [Operating Segment Information](index=33&type=section&id=Operating%20Segment%20Information) The Group has only one reportable operating segment, with management monitoring its overall operating results, and in H1 2025, external customer revenue from mainland China was the largest contributor at RMB 2.757 billion, while non-current assets are primarily concentrated in mainland China - The Group does not disaggregate its business units by product and has only one reportable operating segment[113](index=113&type=chunk) External Customer Revenue by Customer Location | Region | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :----------- | :-------------------------- | :-------------------------- | | Hong Kong | 197,777 | 115,311 | | Mainland China | 2,756,785 | 2,698,257 | | Other Countries/Regions | 11,760 | 21,463 | | **Total** | **2,966,322** | **2,835,031** | Non-current Assets by Asset Location | Region | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :----------- | :-------------------------- | :-------------------------- | | Hong Kong | 98,449 | 100,865 | | Mainland China | 807,683 | 802,633 | | Other Countries/Regions | 1,064 | 1,458 | | **Total** | **907,196** | **904,956** | [Revenue, Other Income and Gains](index=34&type=section&id=Revenue%2C%20Other%20Income%20and%20Gains) In H1 2025, the Group's revenue from contracts with customers was RMB 2.966 billion, primarily from product sales, while total other income and gains increased by 55.4% to RMB 19.18 million, driven mainly by government grants (RMB 7.66 million) and bank interest income (RMB 6.14 million) Revenue, Other Income and Gains Analysis | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Revenue from contracts with customers | 2,966,322 | 2,835,031 | | - Sales of products | 2,932,332 | 2,785,967 | | - Provision of consulting services | 33,990 | 49,064 | | Total other income | 14,996 | 7,835 | | - Government grants | 7,664 | 2,167 | | - Bank interest income | 6,135 | 3,090 | | Gains | 4,181 | 4,505 | | **Total Other Income and Gains** | **19,177** | **12,340** | [Profit Before Tax](index=35&type=section&id=Profit%20Before%20Tax) The Group's H1 2025 profit before tax was impacted by various expenses, including cost of inventories sold of RMB 2.539 billion, total R&D costs of RMB 220 million (with RMB 193 million expensed during the period), and employee benefit expenses of RMB 220 million, alongside a net exchange loss of RMB 30.40 million and inventory write-down to net realizable value of RMB 30.68 million Major Deductions/(Credits) in Profit Before Tax | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :------------------- | :-------------------------- | :-------------------------- | | Cost of inventories sold | 2,539,342 | 2,360,660 | | Total R&D costs | 219,869 | 215,043 | | - Expensed during the period | 193,128 | 188,302 | | Net exchange loss | 30,401 | 29,121 | | Employee benefit expenses (excluding directors' and co-chief executive officers' emoluments) | 220,050 | 209,250 | | Write-down of inventories to net realizable value | 30,683 | 7,582 | [Finance Costs](index=36&type=section&id=Finance%20Costs) In H1 2025, the Group's finance costs were RMB 53.84 million, a 5.4% decrease from the prior year, primarily comprising interest on bank borrowings (RMB 40.47 million) and interest on discounted bills receivable (RMB 12.81 million) Finance Costs Analysis | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--------------- | :-------------------------- | :-------------------------- | | Interest on bank borrowings | 40,465 | 43,812 | | Interest on discounted bills receivable | 12,807 | 12,508 | | Interest on lease liabilities | 569 | 612 | | **Total** | **53,841** | **56,932** | [Income Tax](index=36&type=section&id=Income%20Tax) The Group is subject to income tax on profits in each jurisdiction, with Hong Kong profits tax at 16.5% and mainland China's statutory rate at 25%, while certain Chinese subsidiaries enjoy preferential rates of 15% for high-tech enterprises or 5% to 25% for small-scale enterprises, resulting in a total income tax credit of RMB 16.53 million for H1 2025 - Hong Kong profits tax rate is **16.5%**, and the statutory enterprise income tax rate in mainland China is **25%**[125](index=125&type=chunk) - Shanghai Intron Electronic Co., Ltd. and other subsidiaries qualify as high-tech enterprises, enjoying a preferential income tax rate of **15%**; certain subsidiaries qualify as small-scale enterprises, enjoying preferential tax rates ranging from **5% to 25%**[126](index=126&type=chunk) Total Income Tax Credit | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Current - Mainland China | 350 | 38 | | Current - Other regions | 20,896 | 27,134 | | Deferred tax | (37,780) | (40,572) | | **Total Income Tax Credit for the Period** | **(16,534)** | **(13,400)** | [Dividends](index=37&type=section&id=Dividends) The Directors do not recommend an interim dividend for the six months ended June 30, 2025, while the 2024 final dividend of HKD 6.3 cents per ordinary share (approximately RMB 62.84 million) was approved by shareholders on May 26, 2025, and paid in July 2025 - The Directors do not recommend the payment of a dividend for the six months ended **June 30, 2025**[129](index=129&type=chunk) - The final dividend for the year ended **December 31, 2024**, of **HKD 6.3 cents per ordinary share** (equivalent to **RMB 62,839,000**) was approved by shareholders and paid in **July 2025**[129](index=129&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=37&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to ordinary equity holders of the parent both significantly decreased to RMB 4.57 cents, down from RMB 8.98 cents in the prior period, calculated based on a weighted average of 1,087,838,400 ordinary shares outstanding during the period Earnings Per Share Calculation | Metric | 2025 H1 | 2024 H1 | | :------------- | :----------- | :----------- | | Profit attributable to ordinary equity holders of the parent (RMB thousand) | 49,740 | 97,678 | | Weighted average number of ordinary shares in issue during the period (shares) | 1,087,838,400 | 1,087,838,400 | | Basic and diluted earnings per share (RMB cents) | 4.57 | 8.98 | - No adjustment was made to the basic earnings per share amount presented for dilution during the period, as the exercise price of the company's outstanding share options was higher than the average market price of the shares during the period[130](index=130&type=chunk) [Property, Plant and Equipment](index=38&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group's cost of purchasing property, plant, and equipment items was RMB 27.96 million, a decrease from RMB 45.93 million in the prior period Purchase Cost of Property, Plant and Equipment | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Purchase cost | 27,958 | 45,929 | [Other Intangible Assets](index=39&type=section&id=Other%20Intangible%20Assets) As of June 30, 2025, the Group's net book value of other intangible assets increased to RMB 445 million from RMB 425 million at the beginning of the year, with internal development additions of RMB 44.92 million and amortization of RMB 32.85 million during the period Changes in Other Intangible Assets | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Net book value at end of period/year | 445,029 | 424,697 | | Additions - internally developed | 44,920 | 120,992 | | Amortization | (32,854) | (64,366) | [Inventories](index=39&type=section&id=Inventories) As of June 30, 2025, the Group's inventories, primarily semiconductor devices and electronic components, amounted to RMB 1.326 billion, remaining largely consistent with the end of 2024 Inventories Composition | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Semiconductor devices and electronic components | 1,325,650 | 1,332,966 | [Trade and Bills Receivables](index=40&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, the Group's total trade and bills receivables significantly decreased by 28.3% to RMB 1.686 billion from RMB 2.353 billion at the end of 2024, comprising trade receivables of RMB 1.546 billion and bills receivable of RMB 157 million, with credit terms generally within three months and strict controls on overdue amounts Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Trade receivables | 1,545,994 | 2,311,500 | | Bills receivable | 157,091 | 54,144 | | Impairment | (17,271) | (12,774) | | **Total** | **1,685,814** | **2,352,870** | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--------- | :-------------------------- | :-------------------------- | | Within 3 months | 1,401,989 | 2,194,563 | | 3 to 6 months | 76,184 | 54,997 | | 6 to 12 months | 18,752 | 31,526 | | 1 to 2 years | 26,647 | 15,940 | | Over 2 years | 5,151 | 1,700 | | **Total** | **1,528,723** | **2,298,726** | [Prepayments, Other Receivables and Other Assets](index=41&type=section&id=Prepayments%2C%20Other%20Receivables%20and%20Other%20Assets) As of June 30, 2025, the Group's total prepayments, other receivables, and other assets significantly increased to RMB 669 million from RMB 269 million at the end of 2024, with prepayments accounting for RMB 632 million Prepayments, Other Receivables and Other Assets | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Prepayments | 631,749 | 231,235 | | Prepaid expenses | 7,101 | 7,711 | | Interest receivable | 675 | 695 | | Other recoverable taxes | 8,272 | 8,913 | | Deposits and other receivables | 25,937 | 25,241 | | Impairment allowance | (4,915) | (4,538) | | **Total** | **668,819** | **269,257** | [Cash and Cash Equivalents and Pledged Deposits](index=42&type=section&id=Cash%20and%20Cash%20Equivalents%20and%20Pledged%20Deposits) As of June 30, 2025, the Group's cash and bank balances were RMB 678 million, with pledged deposits of RMB 130 million, primarily serving as collateral for bank borrowings, bills payable, and letters of credit Cash and Cash Equivalents and Pledged Deposits | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Cash and bank balances | 678,485 | 916,208 | | Pledged deposits | 129,553 | 165,520 | | **Subtotal** | **808,038** | **1,081,728** | | Less: Pledged deposits | | | | - Pledged for bank borrowings | (68,679) | (68,308) | | - Pledged for bills payable | (10,874) | (4,892) | | - Pledged for letters of credit | (50,000) | (92,320) | | **Cash and Cash Equivalents** | **678,485** | **916,208** | [Trade and Bills Payables](index=42&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, the Group's total trade and bills payables increased to RMB 611 million from RMB 575 million at the end of 2024, comprising trade payables of RMB 425 million and bills payable of RMB 186 million, with trade payables being interest-free and generally settled within three months Trade and Bills Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Trade payables | 425,250 | 502,664 | | Bills payable | 185,874 | 72,283 | | **Total** | **611,124** | **574,947** | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--------- | :-------------------------- | :-------------------------- | | Within 3 months | 359,951 | 295,605 | | 3 to 6 months | 59,440 | 155,584 | | 6 to 12 months | 549 | 46,982 | | 1 to 2 years | 1,785 | 4,328 | | Over 2 years | 3,525 | 165 | | **Total** | **425,250** | **502,664** | [Other Payables and Accruals](index=43&type=section&id=Other%20Payables%20and%20Accruals) As of June 30, 2025, the Group's total other payables and accruals decreased to RMB 785 million from RMB 938 million at the end of 2024, primarily including other payables of RMB 558 million, dividends payable of RMB 63 million, and salaries and welfare payable of RMB 50 million Other Payables and Accruals | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Other payables | 558,449 | 687,968 | | Dividends payable | 62,503 | – | | Taxes payable other than enterprise income tax | 62,636 | 80,822 | | Salaries and welfare payable | 50,128 | 112,000 | | Contract liabilities | 49,683 | 54,765 | | Payables for purchase of property, plant, equipment and other intangible assets | 1,960 | 2,394 | | **Total** | **785,359** | **937,949** | [Interest-bearing Bank and Other Borrowings](index=44&type=section&id=Interest-bearing%20Bank%20and%20Other%20Borrowings) As of June 30, 2025, the Group's total interest-bearing bank and other borrowings amounted to RMB 1.636 billion, all repayable within one year or on demand, with some bank loans secured by the Group's pledged deposits Repayment Period of Interest-bearing Bank and Other Borrowings | Repayment Period | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :----------- | :-------------------------- | :-------------------------- | | Within 1 year or on demand | 1,636,264 | 1,742,945 | | Within 1 to 2 years | – | 295,443 | | **Total** | **1,636,264** | **2,038,388** | - As of June 30, 2025, certain bank loans of the Group were secured by pledged deposits amounting to **RMB 68,679,000**[150](index=150&type=chunk) [Government Grants](index=44&type=section&id=Government%20Grants) As of June 30, 2025, the Group's non-current government grants amounted to RMB 3.04 million, related to subsidies received from the government to compensate for expenses incurred in specific project R&D and improvements to production facilities Government Grants | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------- | :-------------------------- | :-------------------------- | | Non-current | 3,040 | 1,260 | - The grants relate to subsidies received from the government to compensate for expenses incurred in certain specific project R&D and improvements to production facilities[151](index=151&type=chunk) [Share Capital](index=45&type=section&id=Share%20Capital) As of June 30, 2025, the company's authorized share capital comprised 2,400,000,000 ordinary shares of HKD 0.01 each, with 1,087,838,400 shares issued and fully paid, having a par value of RMB 9.25 million Share Capital Details | Item | Number of Shares | Par Value (HKD thousand/RMB thousand) | | :------------- | :------------- | :----------------------- | | Authorized share capital | 2,400,000,000 | 24,000 (HKD) | | Issued and fully paid share capital | 1,087,838,400 | 9,249 (RMB) | [Pledged Assets](index=45&type=section&id=Pledged%20Assets) The Group has pledged assets as collateral for bank and other borrowings, with details disclosed in Note 19 to the financial statements - Details of the Group's assets pledged for bank and other borrowings are set out in Note 19 to these financial statements[154](index=154&type=chunk) [Commitments](index=45&type=section&id=Commitments) As of June 30, 2025, the Group's contracted but unprovided capital commitments amounted to RMB 23.98 million, primarily for patents, plant, and machinery Capital Commitments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Contracted but not provided for | 23,975 | 7,243 | [Significant Related Party Transactions](index=46&type=section&id=Significant%20Related%20Party%20Transactions) In H1 2025, the Group engaged in sales of products and services to related parties, including RMB 7.35 million to Momenta (Shanghai) Technology Co., Ltd., with total key management personnel compensation amounting to RMB 9.96 million Sales of Products and Services to Related Parties | Related Party | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :----------------- | :-------------------------- | :-------------------------- | | Wuxi Sheng Bang Electronics Co., Ltd. | – | 19,354 | | Momenta (Shanghai) Technology Co., Ltd. | 7,350 | 466 | Key Management Personnel Compensation | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :------------- | :-------------------------- | :-------------------------- | | Salaries, allowances and benefits in kind | 9,762 | 10,669 | | Contributions to retirement benefit schemes | 164 | 162 | | Equity-settled share option and award expenses | 36 | 95 | | **Total** | **9,962** | **10,926** | [Fair Value of Financial Instruments and Fair Value Hierarchy](index=47&type=section&id=Fair%20Value%20of%20Financial%20Instruments%20and%20Fair%20Value%20Hierarchy) The carrying amounts of the Group's financial instruments approximate their fair values, with derivative financial instruments measured at present value and fair values of unlisted equity investments estimated using market-based and discounted cash flow valuation techniques, and as of June 30, 2025, total assets measured at fair value amounted to RMB 298 million, including bills receivable of RMB 157 million (Level 2) and financial assets designated at fair value through profit or loss of RMB 136 million (Level 3), while liabilities measured at fair value primarily comprised derivative financial instruments of RMB 0.30 million (Level 2) - All carrying amounts of the Group's financial instruments approximate their fair values[161](index=161&type=chunk) - Derivative financial instruments are measured at present value using valuation techniques similar to forward pricing models, and fair values of unlisted equity investments are estimated using market-based valuation techniques and discounted cash flow valuation techniques[161](index=161&type=chunk) Assets Measured at Fair Value (June 30, 2025) | Item | Level 1 (RMB thousand) | Level 2 (RMB thousand) | Level 3 (RMB thousand) | Total (RMB thousand) | | :------------- | :----------------- | :----------------- | :----------------- | :---------------- | | Bills receivable | – | 157,091 | – | 157,091 | | Equity investments designated at fair value through other comprehensive income | – | – | 4,410 | 4,410 | | Financial assets at fair value through profit or loss | – | – | 136,394 | 136,394 | | **Total** | **–** | **157,091** | **140,804** | **297,895** | Liabilities Measured at Fair Value (June 30, 2025) | Item | Level 1 (RMB thousand) | Level 2 (RMB thousand) | Level 3 (RMB thousand) | Total (RMB thousand) | | :------------- | :----------------- | :----------------- | :----------------- | :---------------- | | Derivative financial instruments | – | 299 | – | 299 |

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 致：香港交易及結算所有限公司 公司名稱: 英恒科技控股有限公司 呈交日期: 2025年9月4日 I. 法定/註冊股本變動 | 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) | 01760 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,400,000,000 | HKD | | 0.01 | HKD | | 24,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 2,400,000,000 | HKD | | 0.01 | HKD | | 24,000,000 | 本月底法定/註冊股本 ...

Core Viewpoint - Yingheng Technology (01760) experienced a decline of over 10%, with a current drop of 9.64%, trading at HKD 1.5, with a transaction volume of HKD 10.26 million [1] Financial Performance - For the first half of 2025, Yingheng Technology reported total revenue of RMB 2.966 billion, representing a year-on-year increase of 5% [1] - The profit attributable to the parent company was RMB 49.74 million, showing a year-on-year decrease of 49% [1] Market Context - The automotive electronics market is currently facing a weak overall trend, with intensified competition [1] - Despite market challenges, the company demonstrated resilient growth due to its deep engagement in the domestic automotive electronics sector, innovative technology, and excellent service [1] Competitive Position - The performance highlights the company's strong core competitiveness and leading position in the automotive electronics field, showcasing its extraordinary resilience and sustainable growth potential [1]

Core Viewpoint - The overall performance of the company remains stable in the first half of 2025, with a revenue increase of approximately 5% year-on-year to RMB 2.97 billion, driven by growth in the security systems, power systems, and cloud server segments [1] Revenue Breakdown - The security systems segment saw a revenue increase of 27% - The power systems segment experienced a 15% revenue growth - The new energy vehicle segment continues to be the largest contributor to total revenue, accounting for 48.5% - The body systems, security systems, and power systems segments contributed 10.6%, 15.2%, and 6.2% to total revenue, respectively - The intelligent driving and connected business revenue remained similar to last year, making up 7.8% of total revenue - The cloud server segment revenue surged by 135% year-on-year, accounting for 8.6% of total revenue due to the growing demand for AI servers [1][1][1] Profitability - The profit attributable to shareholders for the year was RMB 49.7 million, down from RMB 97.7 million in the same period last year - The net profit margin for the first half of 2025 stands at 1.6% [1][1] Project Development - The company secured 112 new mass production projects in the first half of 2025, with 10 projects involving export models or overseas clients - The projects include key areas such as chassis and ADAS - The customer base has expanded beyond domestic major automakers to include major Japanese and European automakers and Tier 1 suppliers, providing strong support for future growth [1][1][1]

Core Viewpoint - Yingheng Technology (01760) reported a total revenue of RMB 2.966 billion for the six months ending June 30, 2025, representing a year-on-year increase of 5% [1] - The profit attributable to the parent company was RMB 49.74 million, a decrease of 49% year-on-year, with earnings per share at 4.57 cents [1] Group 1: Financial Performance - Total revenue reached RMB 2.966 billion, marking a 5% increase compared to the previous year [1] - Profit attributable to the parent company decreased to RMB 49.74 million, down 49% year-on-year [1] - Earnings per share were reported at 4.57 cents [1] Group 2: Market Position and Resilience - Despite a weak automotive electronics market and intensified competition, the company demonstrated robust growth due to its deep local presence, innovative technology, and excellent service [1] - The performance highlights the company's strong core competitiveness and leading position in the automotive electronics sector [1]

Core Viewpoint - The company reported a total revenue of RMB 2.966 billion for the six months ending June 30, 2025, representing a year-on-year increase of 5%. However, the profit attributable to the parent company decreased by 49% to RMB 49.74 million, with earnings per share at 4.57 cents [1]. Group 1: Financial Performance - Total revenue reached RMB 2.966 billion, marking a 5% increase year-on-year [1]. - Profit attributable to the parent company was RMB 49.74 million, reflecting a significant decrease of 49% compared to the previous year [1]. - Earnings per share stood at 4.57 cents [1]. Group 2: Market Position and Resilience - Despite a weak overall automotive electronics market and intensified competition, the company demonstrated robust growth due to its deep engagement in the domestic automotive electronics sector, innovative technology, and excellent service [1]. - The performance highlights the company's strong core competitiveness and leading position in the automotive electronics field, showcasing its remarkable resilience and sustainable growth potential [1].

[Financial Summary](index=1&type=section&id=Financial%20Summary) The Group's H1 2025 financial performance shows a 5% revenue increase, but a significant 50% drop in net profit and earnings per share, primarily due to reduced gross profit margins H1 2025 Financial Summary (RMB thousand) | Financial Data | June 30, 2025 (Unaudited) | June 30, 2024 (Unaudited) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,966,322 | 2,835,031 | 5% | | Gross Profit | 401,046 | 451,966 | -11% | | Net Profit | 47,975 | 95,093 | -50% | | Profit Attributable to Owners of the Parent | 49,740 | 97,678 | -49% | | Basic Earnings Per Share (RMB cents) | 4.57 | 8.98 | -49% | | Diluted Earnings Per Share (RMB cents) | 4.57 | 8.98 | -49% | | **Financial Ratios (as % of Total Revenue)** | | | **Percentage Point Change** | | Gross Profit | 13.5% | 15.9% | -2.4 | | R&D Costs | 7.4% | 7.6% | -0.2 | | Net Profit | 1.6% | 3.4% | -1.8 | H1 2025 Revenue Breakdown (RMB thousand) | Revenue Details | June 30, 2025 (Unaudited) | June 30, 2024 (Unaudited) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | New Energy | 1,437,848 | 1,452,608 | -1% | | Body Systems | 314,404 | 422,691 | -26% | | Safety Systems | 451,568 | 355,382 | 27% | | Powertrain Systems | 185,189 | 161,112 | 15% | | Intelligent Driving & Connectivity | 230,548 | 229,860 | 0% | | Cloud Servers | 255,444 | 108,783 | 135% | | Services & Others | 91,321 | 104,595 | -13% | [Management Discussion & Analysis](index=2&type=section&id=Management%20Discussion%20%26%20Analysis) [Overview](index=2&type=section&id=Overview) In H1 2025, China's auto market saw 11.4% sales growth, driven by 'trade-in' policies and NEV demand, with NEV sales up 40.3%, while the Group achieved 5% revenue growth despite industry price competition - H1 2025 China's auto sales reached **15.653 million units**, a **11.4% year-on-year increase**, with new energy vehicle sales growing **40.3% to 6.937 million units**, accounting for **44.3% of total sales**[6](index=6&type=chunk) - China's automotive industry profitability continued to decline, reaching **4.3% in 2024** and further dropping to **3.9% in Q1 2025**[6](index=6&type=chunk) - The Group's revenue increased **5% year-on-year**, and it launched the GRC1.0 high-performance controller solution based on the Digua Robot RDK S100 series intelligent computing platform, entering the embodied intelligent robotics field[6](index=6&type=chunk)[7](index=7&type=chunk) [Business Overview & Strategy](index=3&type=section&id=Business%20Overview%20%26%20Strategy) As a leading automotive electronics and robotics solution provider, the Group leverages strong R&D, semiconductor application technology, and industrialization capabilities to achieve continuous growth in NEVs and intelligent driving, while applying its mature automotive electronics experience to robotics [Automotive Electronics & Semiconductors](index=3&type=section&id=Automotive%20Electronics%20%26%20Semiconductors) The Group excels in NEV R&D and automotive semiconductor application technology, enabling cost-effective mass production solutions for OEMs, with NEV and intelligent driving as key growth drivers - The Group leverages its NEV R&D capabilities and automotive semiconductor application technology to help OEMs achieve **cost-effective mass production solutions**, enhancing business penetration[8](index=8&type=chunk) - The new energy sector and intelligent driving business are the primary drivers for the Group's **long-term revenue and profit growth**[8](index=8&type=chunk) - The Group maintains solid cooperation with global chip leaders and empowers the application and development of **domestic chips in the Chinese automotive market**[8](index=8&type=chunk) [Robotics Business Layout](index=3&type=section&id=Robotics%20Business%20Layout) Addressing standardization, high customization costs, and yield challenges in intelligent robot core controllers, the Group applies its high reliability, safety, and mass production experience from automotive electronics to robotics, offering industrial-grade controller products - The intelligent robotics industry faces challenges in core controller standardization, high customization costs, and product consistency and yield[9](index=9&type=chunk) - The Group injects its technological accumulation and mass production experience from automotive electronics (new energy, autonomous driving) into the robotics sector, providing **standardized robot controller products**[9](index=9&type=chunk) [R&D & Operating Model](index=3&type=section&id=R%26D%20%26%20Operating%20Model) R&D is the cornerstone of the Group's long-term development, providing optimized solutions through deep client collaboration, while adhering to a 'light-asset, heavy-R&D' model with continuous investment and a high-caliber talent team - R&D is the cornerstone of the Group's long-term business development, providing optimized solutions through **deep collaboration with clients**[10](index=10&type=chunk) - The Group adheres to a **"light-asset, heavy-R&D" operating model**, continuously investing in R&D and maintaining a high-caliber team of scientific and technological talents[10](index=10&type=chunk) [H1 2025 Business Performance](index=4&type=section&id=H1%202025%20Business%20Performance) Despite a weak automotive electronics market and intensified competition, the Group's H1 2025 total revenue grew 5% to RMB 2.97 billion, driven by safety systems, powertrain systems, and cloud servers, though gross margin declined to 13.5% due to price competition [Total Revenue & Gross Profit](index=4&type=section&id=Total%20Revenue%20%26%20Gross%20Profit) The Group's H1 2025 total revenue increased 5% to RMB 2.97 billion, driven by safety systems, powertrain systems, and cloud servers, but gross profit decreased to RMB 401.0 million, with gross margin falling 2.4 percentage points to 13.5% due to intensified price competition - H1 2025 total revenue increased **5% year-on-year to RMB 2.97 billion**[11](index=11&type=chunk) - Gross profit was **RMB 401.0 million**, with a gross margin of **13.5%**, a **2.4 percentage point decrease** from the prior year, primarily due to intensified price competition among automotive OEMs[13](index=13&type=chunk) - The Group maintained total R&D expenses at **7.4% of total revenue**, amounting to **RMB 219.9 million**[13](index=13&type=chunk) [Segment Revenue Analysis](index=4&type=section&id=Segment%20Revenue%20Analysis) The New Energy segment remains the largest contributor (48.5%) with stable revenue, while Safety Systems and Powertrain Systems saw 27% and 15% growth respectively, and Cloud Servers surged 135% due to AI demand [New Energy](index=4&type=section&id=New%20Energy) The New Energy segment's revenue remained stable at RMB 1,437.8 million, accounting for 48.5% of total revenue, with growth in MCU, BMS, in-vehicle charging, and PTC, and strong new project acquisition - New Energy segment revenue was **RMB 1,437.8 million**, stable year-on-year, accounting for **48.5% of total revenue**[11](index=11&type=chunk)[15](index=15&type=chunk) - This business saw growth in **Motor Control Units (MCU), Battery Management Systems (BMS), in-vehicle charging, and PTC**[15](index=15&type=chunk) - The Group's self-developed "motor controller power brick" has achieved **industry-leading levels** in power density, integration, and reliability, with continued R&D into high-power density solutions combining silicon carbide and silicon[15](index=15&type=chunk) [Body, Safety & Powertrain Systems](index=4&type=section&id=Body%2C%20Safety%20%26%20Powertrain%20Systems) Body Systems revenue decreased 26% to RMB 314.4 million due to strategic divestment of low-margin businesses, while Powertrain Systems grew 15% and Safety Systems increased 27% driven by active suspension and new project mass production - Body Systems business revenue decreased **26% to RMB 314.4 million**, accounting for **10.6% of total revenue**, primarily due to the Group's strategic divestment of some low-margin businesses[11](index=11&type=chunk)[16](index=16&type=chunk) - Powertrain Systems solutions grew **15%**, accounting for **6.2% of total revenue**, benefiting from commercial vehicle market growth and accelerated electrification[11](index=11&type=chunk)[16](index=16&type=chunk) - Safety Systems solutions revenue increased **27%**, accounting for **15.2% of total revenue**, primarily driven by increased adoption of active suspension systems and mass production of new projects in braking and steering applications[11](index=11&type=chunk)[16](index=16&type=chunk) [Intelligent Driving & Connectivity](index=4&type=section&id=Intelligent%20Driving%20%26%20Connectivity) Intelligent Driving & Connectivity revenue remained stable at RMB 230.5 million, with the Group launching its first L3-capable system solution and actively developing solutions based on Horizon Journey® 6, including a new generation domain controller MADC4.0 for L2+ ADAS - Intelligent Driving & Connectivity business revenue was **RMB 230.5 million**, stable year-on-year, accounting for **7.8% of total revenue**[11](index=11&type=chunk)[17](index=17&type=chunk) - The Group has launched its **first-generation L3-capable system solution** and plans to optimize its cost-effectiveness for broader market applicability[17](index=17&type=chunk) - The Group is actively developing solutions related to **Horizon Journey® 6**, including a front-fusion perception solution and the new generation system-level domain controller solution **MADC4.0** based on the Journey® 6E/M platform, supporting L2+ advanced driving assistance functions[17](index=17&type=chunk)[18](index=18&type=chunk) [Cloud Servers](index=4&type=section&id=Cloud%20Servers) Cloud Servers business revenue surged 135% to RMB 255.4 million, driven by strong customer demand for AI services, leading many clients to increase investment in private servers and private clouds - Cloud Servers business revenue increased **135% to RMB 255.4 million**, accounting for **8.6% of the Group's revenue**[11](index=11&type=chunk)[19](index=19&type=chunk) - The primary growth driver is customer demand for **AI services**, which has boosted the need for cloud servers, with many clients increasing investment in establishing private servers and private clouds[19](index=19&type=chunk) [Services & Others](index=4&type=section&id=Services%20%26%20Others) Revenue from Services & Others accounted for 3.1% of total revenue, with the Group securing more client mass production project development mandates and nominations during the period - Revenue from Services & Others accounted for **3.1% of total revenue**, with the Group securing more client mass production project development mandates and nominations during the period[11](index=11&type=chunk) [Clients & Market Expansion](index=5&type=section&id=Clients%20%26%20Market%20Expansion) OEMs and their Tier 1 suppliers remain the Group's primary end-customers, including China's top ten NEV passenger car brands, with 112 new mass production nominations, 10 of which involve export models or overseas clients, expanding reach to Japanese and European automakers - OEMs and their Tier 1 suppliers are the Group's primary end-customers, including **China's top ten well-known new energy passenger vehicle brands**[14](index=14&type=chunk) - The Group secured **112 new mass production nomination projects**, with **10 involving export models or overseas client projects**, expanding its client base to major Japanese and European automakers and Tier 1 suppliers[14](index=14&type=chunk) [R&D & Group Development](index=8&type=section&id=R%26D%20%26%20Group%20Development) R&D is central to the Group's strategy, with H1 2025 R&D expenses at RMB 219.9 million, 7.4% of revenue, supported by 950 R&D personnel and extensive intellectual property, while ESG efforts continue, and the Nantong R&D base enhances power brick production [R&D Investment & Achievements](index=8&type=section&id=R%26D%20Investment%20%26%20Achievements) H1 2025 R&D expenses were RMB 219.9 million, 7.4% of revenue, with 950 R&D personnel, and the Group added 36 patents and 2 software copyrights, accumulating 394 patents and 329 software copyrights - H1 2025 R&D expenses were **RMB 219.9 million**, representing approximately **7.4% of the Group's revenue**[20](index=20&type=chunk) - As of June 30, 2025, the Group had **950 full-time R&D technical personnel**, accounting for **70.9% of its total workforce**[20](index=20&type=chunk) - During the period, **36 new patents and 2 software copyrights** were added, bringing the cumulative total to **394 patents and 329 software copyrights**, with an additional **267 patents pending**[20](index=20&type=chunk) [ESG Practices](index=8&type=section&id=ESG%20Practices) The Group actively advances its ESG initiatives, setting GHG emission reduction targets, collaborating on green logistics, and enhancing product quality and safety through technological innovation to support a greener, safer, and smarter mobility ecosystem - The Group actively sets **Greenhouse Gas (GHG) emission reduction targets** (Scope 1 and Scope 2) and energy consumption reduction targets, collaborating with logistics providers to explore green mobility pilot projects[21](index=21&type=chunk) - Through intelligent driving solutions, energy-efficient autonomous driving systems, and AI-driven safety technologies, the Group enhances product quality and safety standards, supporting a **greener, safer, and smarter mobility ecosystem**[21](index=21&type=chunk) - The Group demonstrates **stable performance** in various ESG rating agencies, including QuantData (A), China Securities Index (BBB), China Chengxin Green Finance (BB), and MioTech (BB)[21](index=21&type=chunk) [Collaboration & Testing Validation](index=9&type=section&id=Collaboration%20%26%20Testing%20Validation) The Group partnered with eSOL Co., Ltd. to integrate its high-security RTOS platform into automotive electronics solutions, while its testing and validation center achieved CNAS re-accreditation and multiple project awards in chassis and safety systems - The Group partnered with **eSOL Co., Ltd.** to integrate its high-security and scalable Real-Time Operating System (RTOS) platform products into its automotive electronics and software solutions[22](index=22&type=chunk) - The testing and validation center passed the **China National Accreditation Service for Conformity Assessment (CNAS) re-assessment**, possessing capabilities for electromagnetic compatibility (EMC), electrical performance, and environmental reliability testing[22](index=22&type=chunk) - The chassis and safety systems segment received **multiple project awards**, with solutions covering steer-by-wire, air suspension, and chassis domain controllers, demonstrating technical advantages in high-voltage electronic control and functional safety[23](index=23&type=chunk) [Nantong R&D Base](index=9&type=section&id=Nantong%20R%26D%20Base) The Nantong R&D base completed its Phase II renovation, adding 3,000 square meters, and establishing full power brick prototyping and small-batch delivery capabilities, aiming for million-unit scale inverter brick and power module delivery by 2027 - The Nantong R&D base completed its **Phase II renovation**, adding approximately **3,000 square meters** of usable area, bringing the total building area to **16,000 square meters**[24](index=24&type=chunk) - The base has established complete capabilities for **power brick product prototyping and small-batch delivery**, including laser cleaning, welding, EOL test lines, and AVI workstations[24](index=24&type=chunk) - The Nantong R&D base will support the Group in achieving **million-unit scale delivery of inverter bricks and power modules by 2027**, enhancing its competitiveness in the new energy vehicle business[24](index=24&type=chunk) [Robotics Business](index=10&type=section&id=Robotics%20Business) Leveraging electrification and intelligent technology, the Group strategically entered robotics, developing the GRC1.0 high-performance controller solution based on the Digua Robot RDK S100 platform for embodied intelligent robots and industrial automation, anticipating rapid revenue growth - The Group successfully developed the **GRC1.0 high-performance controller solution** based on the Digua Robot RDK S100 intelligent computing platform, designed for embodied intelligent robots and industrial automation scenarios[25](index=25&type=chunk) - The GRC1.0 controller features core advantages such as a **highly reliable system architecture, powerful real-time control capabilities, integration of advanced technologies (e.g., SLAM), and mass production-friendly design**[25](index=25&type=chunk)[26](index=26&type=chunk) - With the rapid development of the embodied intelligence industry, the proportion of **robotics-related solutions in the Group's revenue is expected to maintain high growth**[25](index=25&type=chunk) [Outlook](index=11&type=section&id=Outlook) In H2, the global NEV market will be driven by China's leadership and emerging market vitality, prompting increased investment in NEV and autonomous driving technologies, while AI and cloud server integration will create opportunities across core businesses [Market Trends & Business Strategy](index=11&type=section&id=Market%20Trends%20%26%20Business%20Strategy) The H2 global NEV market will be driven by China's leadership and emerging market vitality, with domestic policies and supply chain advantages boosting NEV penetration, while AI and cloud server integration will create transformative opportunities for the Group's core businesses - In H2, the global new energy vehicle market will be driven by **China's leading position and the vitality of emerging markets**, with domestic policies and supply chain advantages further increasing NEV penetration[27](index=27&type=chunk) - The Group will steadfastly pursue technological innovation, continuously increasing investment in **new energy vehicles and autonomous driving technologies**[27](index=27&type=chunk) - The integration of **Artificial Intelligence and cloud server technologies** will create transformative opportunities for body control, safety systems, powertrain, and new energy vehicle businesses, with the Group collaborating with chip manufacturers and cloud service providers to build comprehensive solutions[27](index=27&type=chunk) [R&D & International Expansion](index=11&type=section&id=R%26D%20%26%20International%20Expansion) Intelligent driving and connectivity solutions are a long-term growth highlight, with the Group launching advanced domain control platforms for L3+ autonomous driving, deepening robotics collaboration, and anticipating over 100 new mass production nominations while accelerating international expansion - Intelligent Driving & Connectivity solutions are a **long-term growth highlight** for the Group, which is expected to secure more collaborations in L2+ advanced driving assistance domain controllers based on its prior technological accumulation and project experience[28](index=28&type=chunk) - The Group will launch **advanced intelligent driving domain control platforms** for L3 and above autonomous driving systems, further solidifying its business opportunities in the high-end market[28](index=28&type=chunk) - The Group anticipates over **100 new mass production nomination projects**, covering chassis systems, Advanced Driver-Assistance Systems (ADAS), Motor Control Units (MCU), and Battery Management Systems (BMS), while accelerating its international expansion to support localized overseas supply chains[30](index=30&type=chunk)[31](index=31&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) [Income Statement Analysis](index=13&type=section&id=Income%20Statement%20Analysis) The Group's H1 2025 total revenue grew 5% to RMB 2,966.3 million, driven by safety systems and cloud servers, but gross profit decreased 11% to RMB 401.0 million, with profit for the period falling 50% to RMB 48.0 million [Revenue](index=13&type=section&id=Revenue) For the six months ended June 30, 2025, the Group's total revenue increased 5% year-on-year to RMB 2,966.3 million, primarily driven by strong performance in the safety systems and cloud servers segments - Total revenue increased **5% year-on-year to RMB 2,966.3 million**[32](index=32&type=chunk) - The main growth drivers were the **Safety Systems segment (+27%) and Cloud Servers segment (+135%)**[33](index=33&type=chunk) [Gross Profit](index=14&type=section&id=Gross%20Profit) For the six months ended June 30, 2025, gross profit decreased 11% year-on-year to RMB 401.0 million, with the overall gross margin falling 2.4 percentage points to 13.5% from 15.9% in the prior year - Gross profit decreased **11% to RMB 401.0 million**[34](index=34&type=chunk) - The overall gross margin was **13.5%**, a **2.4 percentage point decrease** from 15.9% in the prior year[34](index=34&type=chunk) [Other Income & Gains](index=14&type=section&id=Other%20Income%20%26%20Gains) Other income and gains increased 55% to RMB 19.2 million, primarily due to earlier receipt of government grants in the first half of the year compared to the prior period - Other income and gains increased **55% to RMB 19.2 million**[35](index=35&type=chunk) - This was primarily due to **earlier receipt of government grants** in the first half of the year compared to the prior period[35](index=35&type=chunk) [Selling & Distribution Expenses](index=14&type=section&id=Selling%20%26%20Distribution%20Expenses) Selling and distribution expenses remained stable at RMB 48.0 million compared to the same period in 2024 - Selling and distribution expenses were **RMB 48.0 million**, remaining stable compared to the same period in 2024[36](index=36&type=chunk) [Administrative Expenses](index=14&type=section&id=Administrative%20Expenses) Administrative expenses increased 3% to RMB 256.3 million, with total R&D expenses at RMB 219.9 million, representing 7.4% of revenue, primarily due to a slight increase in R&D personnel salaries - Administrative expenses were **RMB 256.3 million**, an increase of **3%** compared to the same period in 2024[37](index=37&type=chunk) - Total R&D expenses were **RMB 219.9 million**, representing **7.4% of revenue**, an increase of **2%** compared to the same period in 2024, primarily due to a slight increase in R&D personnel salaries[37](index=37&type=chunk) [Other Expenses](index=15&type=section&id=Other%20Expenses) Other expenses increased 5% to RMB 30.7 million, primarily due to increased exchange losses - Other expenses were **RMB 30.7 million**, an increase of **5%** compared to the prior year, primarily due to increased exchange losses[38](index=38&type=chunk) [Finance Costs](index=15&type=section&id=Finance%20Costs) Finance costs decreased 5% to RMB 53.8 million, mainly due to a higher proportion of RMB loans in the Group's borrowings, reducing overall interest expenses - Finance costs were **RMB 53.8 million**, a **5% decrease** compared to the same period in 2024[39](index=39&type=chunk) - This was primarily due to an **increased proportion of RMB loans** in the Group's borrowings, reducing overall interest expenses[39](index=39&type=chunk) [Income Tax Credit](index=15&type=section&id=Income%20Tax%20Credit) Income tax credit increased 23% to RMB 16.5 million, mainly due to a decrease in profit before tax compared to the prior period while deferred tax recognition remained stable - Income tax credit was **RMB 16.5 million**, an increase of **23%** compared to the same period in 2024[40](index=40&type=chunk) - This was primarily due to a **decrease in profit before tax** compared to the same period in 2024, while deferred tax recognition remained stable[40](index=40&type=chunk) [Profit for the Period](index=15&type=section&id=Profit%20for%20the%20Period) The Group's profit for the period decreased 50% from RMB 95.0 million for the six months ended June 30, 2024, to RMB 48.0 million for the six months ended June 30, 2025 - Profit for the period decreased **50% to RMB 48.0 million**[41](index=41&type=chunk) [Liquidity & Financial Resources](index=15&type=section&id=Liquidity%20%26%20Financial%20Resources) As of June 30, 2025, the Group's cash and cash equivalents were RMB 678.5 million, with net current assets of RMB 1,375.6 million, a net debt-to-equity ratio of 47%, and outstanding bank loans of RMB 1,636.3 million - As of June 30, 2025, cash and cash equivalents were **RMB 678.5 million** (December 31, 2024: RMB 916.2 million)[42](index=42&type=chunk) - Net current assets were **RMB 1,375.6 million** (December 31, 2024: RMB 1,716.4 million)[42](index=42&type=chunk) - The net debt-to-equity ratio was **47%** (December 31, 2024: 50%), with outstanding bank loans of **RMB 1,636.3 million** (December 31, 2024: RMB 2,038.4 million)[42](index=42&type=chunk) [Dividends](index=16&type=section&id=Dividends) The Directors do not recommend the payment of an interim dividend for the review period - The Directors do not recommend the payment of a dividend for the review period[44](index=44&type=chunk) [Other Financial Matters](index=16&type=section&id=Other%20Financial%20Matters) The Group had no significant post-balance sheet events, major investments, acquisitions, or disposals, nor significant contingent liabilities during the review period, with capital commitments increasing to RMB 23.9 million, and exchange rate risk managed through various strategies [Capital Commitments](index=16&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital commitments amounted to RMB 23.9 million, an increase from RMB 7.2 million as of December 31, 2024 - As of June 30, 2025, contracted but unprovided capital commitments were **RMB 23.9 million** (December 31, 2024: RMB 7.2 million)[46](index=46&type=chunk) [Major Investments, Acquisitions & Disposals](index=16&type=section&id=Major%20Investments%2C%20Acquisitions%20%26%20Disposals) During the review period, the Group did not undertake any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the review period, the Group did not undertake any **significant investments, major acquisitions, or disposals of subsidiaries, associates, or joint ventures**[47](index=47&type=chunk) [Contingent Liabilities](index=16&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had **no significant contingent liabilities**[48](index=48&type=chunk) [Exchange Rate Risk](index=16&type=section&id=Exchange%20Rate%20Risk) The Group operates primarily in China and faces foreign exchange risk from RMB fluctuations against other currencies, which it manages by reducing net foreign currency positions and adjusting customer prices - The Group faces foreign exchange risk arising from fluctuations in exchange rates between the **RMB and other currencies** used in its operations[49](index=49&type=chunk) - The Group mitigates losses from foreign currency exchange rate fluctuations by **reducing net foreign currency positions, adjusting customer prices**, and considering foreign exchange forward contracts when necessary[49](index=49&type=chunk) [Use of Proceeds from Global Offering](index=17&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The net proceeds from the global offering were HKD 766.7 million (approx. RMB 655.4 million), with RMB 608.4 million utilized by June 30, 2025, and RMB 47.0 million for acquiring R&D capabilities expected to be fully used by end of 2026 - The net proceeds from the global offering were **HKD 766.7 million** (equivalent to **RMB 655.4 million**)[52](index=52&type=chunk) Use of Proceeds from Global Offering (RMB million) | Use of Proceeds | Planned Use | % of Total Net Proceeds | Actual Utilization as of June 30, 2025 | Unutilized Net Proceeds as of June 30, 2025 | Expected Timeline for Utilizing Remaining Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Expanding R&D Capabilities | 196.6 | 30 | 196.6 | 0 | Not applicable | | Strengthening R&D Infrastructure | 196.6 | 30 | 196.6 | 0 | Not applicable | | Acquiring R&D Capabilities | 196.6 | 30 | 149.6 | 47.0 | Expected to be fully utilized by end of 2026* | | General Working Capital | 65.6 | 10 | 65.6 | 0 | Not applicable | | **Total** | **655.4** | **100** | **608.4** | **47.0** | | - The timeline for acquiring R&D capabilities has been extended to **end of 2026** due to the need for more time to identify and select suitable potential investment targets[53](index=53&type=chunk) [Corporate Governance & Other Information](index=17&type=section&id=Corporate%20Governance%20%26%20Other%20Information) [Employees & Remuneration Policy](index=17&type=section&id=Employees%20%26%20Remuneration%20Policy) As of June 30, 2025, the Group employed 1,340 staff, with total employee costs of RMB 252.4 million, representing 8.5% of revenue, offering competitive remuneration and training, and providing share options to eligible employees - As of June 30, 2025, the Group employed **1,340 staff** (June 30, 2024: 1,373 staff)[50](index=50&type=chunk) - Total employee costs were **RMB 252.4 million**, accounting for **8.5% of the Group's revenue** for the period[50](index=50&type=chunk) - The Group granted **70,621,550 outstanding share options** to eligible employees to enhance the attractiveness of remuneration packages[50](index=50&type=chunk) [Corporate Governance Practices](index=19&type=section&id=Corporate%20Governance%20Practices) The Company is committed to high corporate governance standards, adopting the Listing Rules' Corporate Governance Code, and despite the Chairman and Co-CEO roles being combined, the Board ensures effective checks and balances - The Company has adopted the **Code Provisions of the Corporate Governance Code** set out in Appendix C1 of the Listing Rules[55](index=55&type=chunk) - The roles of Chairman and Co-Chief Executive Officer are held by Mr. Lu Yingming, deviating from Code Provision C.2.1, but the Board believes this arrangement enhances decision-making and execution efficiency, with appropriate checks and balances implemented through the Board and independent non-executive directors[55](index=55&type=chunk) - All Directors complied with the **Model Code for Securities Transactions by Directors of Listed Issuers** and written guidelines during the review period and up to the date of this report[57](index=57&type=chunk) [Audit Committee](index=20&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors chaired by Mr. Xu Rongguo, reviews and oversees the Group's financial reporting and internal controls, having approved the unaudited condensed consolidated interim financial statements - The Audit Committee comprises **three independent non-executive directors**, with Mr. Xu Rongguo as Chairman, possessing the financial expertise and experience required by the Listing Rules[58](index=58&type=chunk) - The Committee has reviewed the Group's **unaudited condensed consolidated interim financial statements** for the review period and deemed them compliant with relevant accounting standards, rules, and regulations[58](index=58&type=chunk) [Publication of Information](index=20&type=section&id=Publication%20of%20Information) This results announcement will be published on the HKEX and Company websites, with the interim report to be dispatched to shareholders in due course - This results announcement and the interim report will be published on the **HKEX website (www.hkexnews.hk) and the Company's website (www.intron-tech.com)**[59](index=59&type=chunk) [Condensed Consolidated Financial Statements](index=21&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Consolidated Income Statement](index=21&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the Group reported revenue of RMB 2,966,322 thousand and gross profit of RMB 401,046 thousand, with profit for the period decreasing 50% to RMB 47,975 thousand, and basic and diluted EPS at RMB 4.57 cents Consolidated Income Statement Key Data (RMB thousand) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Revenue | 2,966,322 | 2,835,031 | | Gross Profit | 401,046 | 451,966 | | Profit Before Tax | 31,441 | 81,693 | | Income Tax Credit | 16,534 | 13,400 | | Profit for the Period | 47,975 | 95,093 | | Profit Attributable to Owners of the Parent | 49,740 | 97,678 | | Basic Earnings Per Share (RMB cents) | 4.57 | 8.98 | | Diluted Earnings Per Share (RMB cents) | 4.57 | 8.98 | [Consolidated Statement of Comprehensive Income](index=22&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's profit for the period was RMB 47,975 thousand, with net other comprehensive income of RMB 5,796 thousand, resulting in total comprehensive income of RMB 53,771 thousand Consolidated Statement of Comprehensive Income Key Data (RMB thousand) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Profit for the Period | 47,975 | 95,093 | | Exchange differences on translating foreign operations | 17,499 | (7,918) | | Exchange differences on translating the Company's accounts | (11,703) | 6,024 | | Other comprehensive income for the period, net of tax | 5,796 | (1,894) | | Total comprehensive income for the period | 53,771 | 93,199 | | Attributable to owners of the parent | 55,536 | 95,784 | [Consolidated Statement of Financial Position](index=23&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group reported total non-current assets of RMB 1,113,067 thousand, total current assets of RMB 4,488,321 thousand, and net current assets of RMB 1,375,558 thousand, with net assets totaling RMB 2,476,023 thousand Consolidated Statement of Financial Position Key Data (RMB thousand) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Total Non-current Assets | 1,113,067 | 1,073,047 | | Total Current Assets | 4,488,321 | 5,037,226 | | Total Current Liabilities | 3,112,763 | 3,320,788 | | Net Current Assets | 1,375,558 | 1,716,438 | | Net Assets | 2,476,023 | 2,481,266 | | Equity Attributable to Owners of the Parent | 2,476,334 | 2,479,826 | [Notes to the Financial Statements](index=25&type=section&id=Notes%20to%20the%20Financial%20Statements) [General Information & Basis of Presentation](index=25&type=section&id=General%20Information%20%26%20Basis%20of%20Presentation) The Group develops automotive component engineering solutions for major Chinese car manufacturers, with financial statements prepared under HKAS 34 and Listing Rules Appendix D2, presented at historical cost in RMB - The Group focuses on developing **automotive component engineering solutions** for major Chinese car manufacturers[64](index=64&type=chunk) - The financial statements are prepared in accordance with **HKAS 34 'Interim Financial Reporting'** issued by the HKICPA and **Appendix D2 of the Listing Rules**[65](index=65&type=chunk) - The financial statements are prepared under the **historical cost convention** and presented in **RMB**[65](index=65&type=chunk) [Changes in Accounting Policies](index=25&type=section&id=Changes%20in%20Accounting%20Policies) The accounting policies adopted are consistent with the 2024 annual consolidated financial statements, except for the initial adoption of HKAS 21 amendments 'Lack of Exchangeability', which had no significant financial impact - The accounting policies adopted for these financial statements are consistent with those applied in the 2024 annual consolidated financial statements, except for the initial adoption of **HKAS 21 amendments 'Lack of Exchangeability'** issued by the HKICPA for the current period's financial information[66](index=66&type=chunk)[67](index=67&type=chunk) - The new and revised standards have **no significant financial impact** on these financial statements[67](index=67&type=chunk) [Operating Segments & Geographical Information](index=26&type=section&id=Operating%20Segments%20%26%20Geographical%20Information) The Group operates as a single reportable segment, with the vast majority of H1 2025 revenue (RMB 2,756,785 thousand) and non-current assets (RMB 807,683 thousand) originating from Mainland China - The Group has **only one reportable operating segment**[68](index=68&type=chunk) External Customer Revenue by Customer Location (RMB thousand) | Region | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Hong Kong | 197,777 | 115,311 | | Mainland China | 2,756,785 | 2,698,257 | | Other Countries/Regions | 11,760 | 21,463 | | **Total** | **2,966,322** | **2,835,031** | Non-current Assets by Asset Location (RMB thousand) | Region | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Hong Kong | 98,449 | 100,865 | | Mainland China | 807,683 | 802,633 | | Other Countries/Regions | 1,064 | 1,458 | | **Total** | **907,196** | **904,956** | - No single customer's revenue accounted for **10% or more of the Group's revenue** during the period, thus no corresponding revenue is disclosed for such customers[72](index=72&type=chunk) [Details of Revenue, Other Income & Gains](index=27&type=section&id=Details%20of%20Revenue%2C%20Other%20Income%20%26%20Gains) The Group's revenue primarily consists of product sales (RMB 2,932,332 thousand) and consulting services (RMB 33,990 thousand), with other income mainly from government grants and bank interest, and gains from fair value derivatives Revenue, Other Income & Gains Analysis (RMB thousand) | Category | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Revenue from contracts with customers** | | | | －Sales of products | 2,932,332 | 2,785,967 | | －Rendering of consulting services | 33,990 | 49,064 | | **Total other income** | **14,996** | **7,835** | | Government grants | 7,664 | 2,167 | | Bank interest income | 6,135 | 3,090 | | **Gains** | | | | Gains on derivative financial instruments at fair value through profit or loss | 4,181 | 4,505 | | **Total other income and gains** | **19,177** | **12,340** | [Components of Profit Before Tax](index=28&type=section&id=Components%20of%20Profit%20Before%20Tax) Profit before tax is presented after deducting cost of inventories sold (RMB 2,539,342 thousand), depreciation of property, plant and equipment (RMB 29,418 thousand), and right-of-use assets (RMB 11,447 thousand), with total R&D costs of RMB 219,869 thousand Profit Before Tax Deductions/(Credits) (RMB thousand) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 2,539,342 | 2,360,660 | | Depreciation of property, plant and equipment | 29,418 | 30,309 | | Depreciation of right-of-use assets | 11,447 | 12,676 | | Total R&D costs | 219,869 | 215,043 | | Employee benefit expenses (excluding directors' and co-CEOs' emoluments) | 220,050 | 209,250 | | Write-down of inventories to net realizable value | 30,683 | 7,582 | | Government grants | (7,664) | (2,167) | | Bank interest income | (6,135) | (3,090) | | Net exchange losses | 30,401 | 29,121 | [Income Tax Details](index=29&type=section&id=Income%20Tax%20Details) The Group is subject to income tax in various jurisdictions, with Hong Kong profits tax at 16.5% and Mainland China corporate income tax at 25%, with preferential rates for high-tech and small/micro enterprises, resulting in a total tax credit of RMB 16,534 thousand for the period - Hong Kong profits tax is provided at a rate of **16.5%**, with some subsidiaries applying a two-tiered profits tax system[74](index=74&type=chunk) - Mainland China corporate income tax has a statutory rate of **25%**, with high-tech enterprises enjoying a preferential rate of **15%**, and small and micro-enterprises enjoying preferential rates from **5% to 25%**[74](index=74&type=chunk)[75](index=75&type=chunk) Total Income Tax Credit (RMB thousand) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Current - Mainland China tax for the period | 350 | 38 | | Current - Other regions tax for the period | 20,896 | 27,134 | | Deferred tax | (37,780) | (40,572) | | **Total tax credit for the period** | **(16,534)** | **(13,400)** | [Earnings Per Share Calculation](index=30&type=section&id=Earnings%20Per%20Share%20Calculation) Basic and diluted earnings per share were both RMB 4.57 cents, calculated based on profit attributable to ordinary equity holders of RMB 49,740 thousand and 1,087,838,400 weighted average ordinary shares outstanding, with no dilution adjustment due to share option exercise price - Basic and diluted earnings per share were both **RMB 4.57 cents**[79](index=79&type=chunk) - The calculation is based on profit attributable to ordinary equity holders of the parent of **RMB 49,740 thousand** and a weighted average number of ordinary shares outstanding of **1,087,838,400 shares** during the period[79](index=79&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) - No adjustment was made for diluted basic earnings per share as the **exercise price of outstanding share options was higher than the average market price** of the shares during the period[79](index=79&type=chunk) [Trade & Bills Receivables](index=31&type=section&id=Trade%20%26%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables were RMB 1,685,814 thousand, including trade receivables of RMB 1,545,994 thousand and bills receivables of RMB 157,091 thousand, with credit terms generally within three months and strict control over overdue amounts Trade & Bills Receivables (RMB thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade receivables | 1,545,994 | 2,311,500 | | Bills receivables | 157,091 | 54,144 | | Impairment | (17,271) | (12,774) | | **Total** | **1,685,814** | **2,352,870** | - Credit terms are generally **within three months**, and the Group maintains strict control over overdue amounts[83](index=83&type=chunk) - Trade receivables include amounts due from related parties of **RMB 12,831 thousand**[84](index=84&type=chunk) [Trade & Bills Payables](index=32&type=section&id=Trade%20%26%20Bills%20Payables) As of June 30, 2025, total trade and bills payables were RMB 611,124 thousand, comprising trade payables of RMB 425,250 thousand and bills payables of RMB 185,874 thousand, which are interest-free and generally repayable within three months Trade & Bills Payables (RMB thousand) | Item | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Trade payables | 425,250 | 502,664 | | Bills payables | 185,874 | 72,283 | | **Total** | **611,124** | **574,947** | - Trade payables are **interest-free** and generally repayable **within three months**[86](index=86&type=chunk) [Share Capital](index=33&type=section&id=Share%20Capital) As of June 30, 2025, the Company's authorized share capital was 2,400,000,000 ordinary shares of HKD 0.01 each, with issued and fully paid share capital of 1,087,838,400 ordinary shares, totaling RMB 9,249 thousand - Authorized share capital was **2,400,000,000 ordinary shares of HKD 0.01 each**, with a par value of **HKD 24,000 thousand**[87](index=87&type=chunk) - Issued and fully paid share capital was **1,087,838,400 ordinary shares of HKD 0.01 each**, totaling **RMB 9,249 thousand**[87](index=87&type=chunk)

Group 1 - The company, Yingheng Technology (01760), announced a financing agreement to obtain a total principal amount of 90 million USD, with an option to increase it to a maximum of 120 million USD [1] - The financing agreement involves Yingheng Technology as the borrower and its wholly-owned subsidiary, Yingheng Technology (China) Co., Ltd., as the guarantor, with Hang Seng Bank Limited acting as the agent and lead arranger [1] - The purpose of the financing is to refinance the existing syndicated loan that is due in March 2026 and to provide funds for the group's general working capital needs [1]

Group 1 - The company announced a financing agreement to obtain a total principal amount of $90 million [1] - The financing agreement includes an option to increase the total principal amount to a maximum of $120 million [1] - The financing is arranged by Hang Seng Bank as the agent and lead arranger [1]