[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]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 INTRON TECHNOLOGY HOLDINGS LIMITED 1760 根據上市規則第13.18條作出的公告 本公告乃英恒科技控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）根據香港聯 合交易所有限公司證券上市規則（「上市規則」）第13.18條作出。 於二零二五年八月二十二日，本公司（作為借款人）及本公司之直接全資附屬公司英恒科 技（中國）有限公司（作為擔保人）（「擔保人」），與由恒生銀行有限公司（作為代理行、委任 牽頭安排行及簿記行）及其他作為貸款人的銀團（統稱為「貸款人」）訂立一份融資協議（「融 資協議」），將按照融資協議所載的條款及條件獲得一筆本金總額90,000,000美元，並有一 項彈性增減選擇權將該本金總額增加至總共不超過120,000,000美元的銀團貸款（「融 資」）。融資的最後還款日期為首次提款日期起計屆滿36個月的日期。融資的目的是(i)本 公司於二零二三年二月十四日 ...

Group 1 - The company, 英恒科技 (01760.HK), announced that its board meeting will be held on August 26, 2025, to consider and approve the interim results for the period ending June 30, 2025, along with the potential declaration of an interim dividend [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 INTRON TECHNOLOGY HOLDINGS LIMITED 董事會會議通告 英恒科技控股有限公司（「本公司」）董事會（「董事會」）謹此宣佈，董事會會議將於二零二 五年八月二十六日（星期二）舉行，藉以（其中包括）考慮及批准本公司及其附屬公司截至 二零二五年六月三十日止中期業績及其發佈，並考慮建議派發中期股息（如有）。 承董事會命 英恒科技控股有限公司 主席兼執行董事 陸穎鳴 香港，二零二五年八月十四日 於本公告日期，本公司執行董事為陸穎鳴先生、陳長藝先生、陳銘先生及黃晞華先生； 以及本公司獨立非執行董事為江永瑋先生、徐容國先生及韓舒婷女士。 1760 ...

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 截至月份: 2025年7月31日 狀態: 新提交 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 呈交日期: 2025年8月6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 | II. 已發行股份及 ...

Financial Performance - The company's revenue for 2024 reached RMB 6,693.1 million, a 15.3% increase from RMB 5,802.3 million in 2023[6] - Gross profit for 2024 was RMB 968.6 million, with a gross margin of 14.5%, down from 18.7% in 2023[6] - Profit attributable to equity holders of the parent company decreased to RMB 208.6 million, a decline of 34.3% compared to RMB 317.4 million in 2023[6] - Total assets increased to RMB 6,110.3 million, up 10.2% from RMB 5,543.4 million in 2023[7] - The total liabilities rose to RMB 3,629.0 million, reflecting an increase of 13.9% from RMB 3,184.7 million in 2023[7] - The group's net profit attributable to shareholders was RMB 208.6 million, resulting in a net profit margin of 3.1% for 2024[32] - Net profit for the year decreased by 35% to RMB 204.2 million, down from RMB 312.5 million in 2023[63] - Other income and gains fell by 44% to RMB 46.4 million, primarily due to a decrease in fair value gains on financial assets[57] - Selling and distribution expenses decreased by 3% to RMB 110.2 million, attributed to cost control measures[58] - Administrative expenses totaled RMB 561.4 million, a 6% decrease from 2023, with R&D expenses accounting for RMB 493.1 million, representing 7.4% of revenue[59] Business Segments and Growth - The company's new energy vehicle business grew by 24% in 2024, continuing to be a major growth driver[15] - The smart driving and networking solutions segment saw a revenue increase of 27%, rising from 7% of total revenue in 2023 to 8% in 2024[17] - In 2024, the overall revenue of the company increased by approximately 15% to RMB 6.7 billion, driven by growth in the new energy vehicle and intelligent driving sectors[30] - The new energy vehicle segment recorded a revenue increase of over 24%, raising its contribution to total revenue from 48% to 52%[30] - The intelligent driving business saw a significant revenue increase of 27%, accounting for 8% of total revenue[30] - The body system business recorded an 11% year-on-year growth to RMB 1,035.3 million, driven primarily by the application of domain controllers[36] - The intelligent driving and networking business generated RMB 513.9 million in revenue, a 27% increase year-on-year, representing 8% of total revenue[37] - Revenue from the new energy vehicle segment increased by 24% year-on-year to RMB 3,462.0 million, accounting for 52% of total revenue[33] - The power system solutions revenue decreased by 11%, accounting for 6% of total revenue, reflecting cyclical fluctuations in traditional power systems[36] Research and Development - Research and development expenses decreased by 5.2% year-on-year, with the number of R&D personnel reduced by 15% to 921, representing 70.4% of total employees[17] - The group's R&D expenses accounted for 7.4% of total revenue, totaling RMB 493.1 million, aimed at maintaining market leadership and technological advantages[32] - The group employed 921 full-time R&D personnel, representing 70.4% of the total workforce, and held 358 patents and 327 software copyrights, an increase of 90 patents and 110 software copyrights from the previous year[42] - The R&D testing center handled nearly 650 testing requests, indicating strong demand for R&D testing services[42] - The company has significantly expanded its R&D capabilities and shifted focus towards rapidly growing sectors such as new energy solutions[160] - The company established a dedicated engineering function to develop automotive electronic solutions for original equipment manufacturers (OEMs)[160] Market Outlook and Strategy - The overall market for new energy vehicles in China is expected to maintain steady growth, with a penetration rate projected to further increase in 2025[17] - The company plans to expand its market share in the electric drive sector, anticipating significant growth opportunities in the next one to two years[19] - The company aims to continue developing its smart driving and networking business to achieve healthy growth in the coming years[17] - The company is actively seeking acquisition and strategic alliance opportunities to enhance its business foundation and market share for long-term growth[21] - The company aims to accelerate international business expansion, leveraging its technological advantages while maintaining a strong domestic market presence[52] - The company anticipates a recovery in demand for body electronics and safety systems as the automotive industry rebounds, with a focus on developing competitive products for emerging market needs[47] Corporate Governance - The board consists of four executive directors and three independent non-executive directors, with the chairman also serving as co-CEO, which the board believes enhances decision-making efficiency[86] - The group has adopted corporate governance principles to enhance stakeholder expectations and comply with regulatory requirements, ensuring high standards of corporate governance[78] - The board regularly reviews its governance structure and practices to ensure they meet the company's needs and stakeholder expectations[79] - The board consists of seven directors, with three being independent non-executive directors, ensuring a balance of power and governance[89] - The company has established a comprehensive internal control and risk management system, overseen by the board and its committees[94] - The board is collectively responsible for guiding and supervising the company's affairs, including strategy formulation and performance monitoring[94] Environmental and Social Responsibility - The company has initiated a series of specific goals aimed at reducing carbon emissions, marking a significant step in environmental responsibility[18] - The company has maintained compliance with relevant environmental and occupational health and safety laws and regulations, with no significant incidents reported during the reporting period[182] - The company emphasizes the importance of risk management and has established appropriate mechanisms for operational, financial, and regulatory risks[189] - The company has a strong relationship with stakeholders, including employees, customers, suppliers, and shareholders, to achieve sustainable development[184] Employee Relations and Diversity - The group employs 1,308 staff as of December 31, 2024, down from 1,539 in 2023, with total employee costs amounting to RMB 584.9 million, representing 8.7% of the group's revenue[74] - The employee gender ratio is 71% male and 29% female, with 2 senior management positions held by males and 0 by females[118] - The company aims to enhance gender diversity among its employees and maintain an appropriate balance[118] - The company is committed to attracting and retaining qualified R&D professionals, as this is essential for its growth and future prospects[189] Shareholder Communication and Dividends - The company emphasizes effective communication with shareholders to strengthen investor relations and understanding of business performance and strategies[156] - The company has reviewed the effectiveness of its shareholder communication policy and found it to be effective for the year ending December 31, 2024[157] - The proposed final dividend for the year ending December 31, 2024, is HKD 0.063 per share, subject to shareholder approval at the annual general meeting on May 26, 2025[190] - The company aims to maximize shareholder returns while focusing on sustainable profit growth and considering business development needs and financial stability before declaring dividends[185]

Core Insights - Wuhan government emphasizes boosting consumption and expanding domestic demand, with a focus on developing the "first store economy" [1] - In Q1 2025, Wuhan introduced 49 first stores across various sectors, marking a significant growth in the "first store economy" [1] - The majority of new stores are localized, with 63.3% being city-level first stores [1] Group 1: Restaurant Sector - The restaurant sector remains a dominant player, accounting for 53.1% of new first stores with 26 brands introduced [4][6] - There is a notable rise in niche dining experiences, with 9 international cuisine restaurants and various local specialties opening [6][8] - Popular dining trends include "mountain wild hot pot" and "sour soup hot pot," indicating a shift towards unique culinary experiences [8] Group 2: Retail Sector - The retail sector saw the introduction of 14 first stores, with clothing brands leading the charge [9][11] - Outdoor sports apparel is gaining traction, with brands like The North Face and Decathlon opening new stores [11] - Emerging trends in beauty and accessories include the launch of niche brands like Côte Noire and CASETiFY, reflecting a shift towards personalized shopping experiences [11][20] Group 3: Commercial Districts - Jianghan and Jiang'an districts lead in first store openings, each with 11 new stores, as part of a broader strategy to enhance commercial activity [12][16] - Street corner and CBD districts are becoming key areas for new store introductions, with a focus on improving consumer experiences [12][16] - The overall strategy aims to establish Wuhan as an international consumption center by enhancing the quality and diversity of shopping experiences [12][16]

Revenue and Growth - Total revenue for the year ended December 31, 2024, was RMB 6,693.1 million, representing a 15% year-on-year increase[3]. - Revenue from the new energy segment increased by 24% to RMB 3,462.0 million, contributing 52% to total revenue[3][10]. - The intelligent driving and networking segment saw a significant revenue growth of 27%, accounting for 8% of total revenue[10]. - The overall automotive market in China grew by 4.5% in 2024, with new energy vehicle sales increasing by 35.5% and achieving a market share of 40.9%[7]. - The group's revenue from the new energy sector increased by 24% year-on-year to RMB 3,462.0 million, accounting for 52% of total revenue as of December 31, 2024[12]. - The body system business recorded an 11% growth to RMB 1,035.3 million, representing 15% of total revenue, driven primarily by domain controller applications[14]. - The intelligent driving and networking business revenue grew by 27% year-on-year to RMB 513.9 million, accounting for 8% of total revenue, supported by rising OEM assembly rates[15]. - Revenue for the year ended December 31, 2024, increased to RMB 6,693,118 thousand, representing a growth of 15.4% compared to RMB 5,802,330 thousand in 2023[60]. - Revenue from mainland China was RMB 6,419,743 thousand, up from RMB 5,623,425 thousand in 2023, reflecting a growth of 14.2%[69]. Profitability and Margins - Gross profit was RMB 968.6 million, with a gross margin of 14.5%, down 4.2 percentage points from the previous year[11]. - Net profit attributable to shareholders was RMB 208.6 million, a decrease of 34% compared to RMB 317.4 million in the previous year, resulting in a net profit margin of 3.1%[11]. - Basic and diluted earnings per share were both RMB 19.18, reflecting a 34% decline from the previous year[3]. - The gross profit decreased by 11% to RMB 968.6 million, with the gross margin dropping from 18.7% in 2023 to 14.5% in 2024[29]. - Net profit decreased by 35% to RMB 204.2 million from RMB 312.5 million in the previous year, attributed to lower gross margins[36]. - Other income and gains fell by 44% to RMB 46.4 million, primarily due to a decrease in fair value gains on financial assets[30]. - The group reported a pre-tax profit of RMB 492,441 thousand for 2024, down from RMB 531,950 thousand in 2023, a decrease of 7.4%[78]. Research and Development - The company maintained R&D expenses at 7.4% of total revenue, amounting to RMB 493.1 million[11]. - R&D expenses for the year were RMB 493.1 million, a decrease of 5.2% year-on-year, representing approximately 7.4% of total revenue[19]. - The company has achieved significant advancements in R&D capabilities, including the establishment of a new testing system compliant with IEC61000-4-4/5 and GB/T17626.4/5 standards[20]. - The Nantong R&D base, covering over 13,000 square meters, has commenced trial operations for electric control power modules and is set to expand its capacity by 2026[21]. - The company plans to continue high R&D investment, maintaining a "light asset, heavy R&D" strategy to enhance research efficiency and product quality[24]. Financial Position and Costs - Financial costs increased by 11% year-on-year due to higher loan amounts associated with business expansion[11]. - Administrative expenses for the year amounted to RMB 561.4 million, a decrease of 6% compared to 2023, with R&D expenses totaling RMB 493.1 million, representing 7.4% of revenue, down 5% year-over-year[32]. - Financing costs increased by 11% to RMB 110.8 million due to increased bank borrowings to support business development and ensure sufficient working capital[34]. - As of December 31, 2024, cash and cash equivalents totaled RMB 916.2 million, up from RMB 517.0 million in 2023, with net current assets valued at RMB 1,716.4 million[37]. - The company’s net debt-to-equity ratio improved to 50% from 51% in the previous year, with outstanding bank loans increasing to RMB 2,038.4 million[37]. - The total current tax expense for mainland China in 2024 is RMB 91,000, a decrease from RMB 123,000 in 2023[83]. Employee and Corporate Governance - As of December 31, 2024, the group employed 1,308 employees, a decrease from 1,539 employees as of December 31, 2023[45]. - The total employee cost amounted to RMB 584.9 million, representing 8.7% of the group's revenue for the year, compared to RMB 597.7 million in 2023[45]. - The board proposed a final dividend of HKD 0.063 per share for the year ended December 31, 2024, down from HKD 0.098 per share in 2023[55]. - The company has maintained a public float of at least 25% of its issued share capital as required by listing rules[58]. - The company has complied with all applicable corporate governance code provisions, except for the separation of the roles of Chairman and CEO[48]. Market and Strategic Initiatives - The company is focusing on enhancing its market share and cost control through increased production and diversified solutions[11]. - The group aims to deepen cooperation with leading AI chip manufacturers to enhance domestic technology applications and innovations[17]. - The group has established long-term partnerships with international leading component suppliers for intelligent driving development projects, aiding in international market expansion[16]. - The intelligent driving network solutions business is expected to grow, with collaborations with semiconductor partners like Infineon and Horizon yielding results[23]. - The company anticipates adding over 150 new mass production projects, focusing on export markets and international business expansion[25]. Other Financial Information - The total assets as of December 31, 2024, amounted to RMB 6,110,273 thousand, an increase from RMB 5,543,352 thousand in 2023[62]. - Current assets increased to RMB 5,037,226 thousand, up from RMB 4,570,992 thousand in the previous year, indicating a growth of 10.2%[62]. - Non-current liabilities totaled RMB 308,219 thousand, up from RMB 285,885 thousand in 2023, reflecting an increase of 7.8%[63]. - The total equity attributable to the parent company owners increased to RMB 2,479,826 thousand from RMB 2,352,790 thousand in 2023, a growth of 5.4%[63]. - The group recognized contract liabilities of RMB 48,433 thousand in 2024, down from RMB 81,787 thousand in 2023, a decrease of 40.7%[73]. - The group received government grants totaling RMB 12,777 thousand in 2024, compared to RMB 11,531 thousand in 2023, an increase of 10.8%[77].