Company Information This section provides an overview of the company's corporate governance structure and essential administrative details [Board of Directors and Corporate Governance Structure](index=3&type=section&id=Board%20of%20Directors%20and%20Corporate%20Governance%20Structure) This section lists the company's board members, supervisory board members, and the composition of various committees, showcasing the company's governance structure - The Board of Directors consists of executive, non-executive, and independent non-executive directors, with **Dr. Liu Guoqing** serving as Chairman and General Manager[4](index=4&type=chunk) - The company has established audit, remuneration and appraisal, nomination, and strategy committees to ensure effective corporate governance[4](index=4&type=chunk) [Company Basic Information](index=4&type=section&id=Company%20Basic%20Information) This section provides fundamental company details, including registered office, website, stock code, listing date, and changes in key personnel - The company website is **www.minieye.cc**, stock code **2431**, and listing date is **December 27, 2024**[5](index=5&type=chunk) - The auditor has changed from PricewaterhouseCoopers to Rongcheng (Hong Kong) Certified Public Accountants Limited, effective **August 13, 2025**[6](index=6&type=chunk) - Changes occurred in joint company secretaries and authorized representatives, with Ms. Luo Xiwen and Ms. Tan Xiaojun appointed[6](index=6&type=chunk) Financial Highlights The Group's unaudited consolidated interim results for the six months ended June 30, 2025, show strong revenue growth of 46.1% year-on-year and gross profit growth of 54.8%, but loss for the period expanded by 44.8% due to increased technology investment | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 345,719 | 236,675 | 46.1% | | Gross Profit | 51,751 | 33,421 | 54.8% | | Gross Margin | 15.0% | 14.1% | +0.9 pp | | Operating Loss | (162,389) | (109,935) | 47.7% | | Loss for the Period | (162,287) | (112,048) | 44.8% | | Loss for the Period Attributable to Owners of the Company | (151,558) | (108,135) | 40.2% | Management Discussion and Analysis This section provides a comprehensive review of the Group's business performance, financial results, liquidity, and risk management strategies for the reporting period [Business Review and Outlook](index=6&type=section&id=Business%20Review%20and%20Outlook) The Group maintained strong business growth in H1 2025, driven by national policies and market demand, especially in intelligent driving and smart cockpit, while expanding its global market presence - In H1 2025, the Group's overall business maintained strong growth, supported by national policies for AI and intelligent driving industry chain development[10](index=10&type=chunk) - Total company revenue reached **RMB 345.7 million**, a **46.1% year-on-year increase**; gross margin improved to **15.0%**[11](index=11&type=chunk) - Due to increased investment in advanced assisted driving and L4 autonomous driving technologies, loss for the period was **RMB 162.3 million**[11](index=11&type=chunk) - The company launched iPilot 4 Plus and iPilot 4 Pro intelligent driving solutions, with the latter securing platform-level project nominations from OEMs, expected for mass production in H1 2026[13](index=13&type=chunk) - L4 autonomous mini-bus business achieved commercial deployment in Suzhou and operates in over **10 projects** across multiple provinces and cities nationwide[14](index=14&type=chunk) - The smart cockpit business launched a new large cockpit model solution "Smart Butler BamBam" and the DMS all-in-one machine iCabin Lite[15](index=15&type=chunk) - The company adopts "driving-cockpit integration" as its core strategy, building an integrated technical architecture, and secured **18 new project nominations** from OEMs and Tier-1 suppliers, with mass production for a cumulative **42 automotive OEMs**[16](index=16&type=chunk)[17](index=17&type=chunk) - Actively advancing its overseas development strategy, solutions have been adopted by multiple export models from various OEMs, covering markets such as the EU, Australia, and Singapore, and a subsidiary was established in Singapore[18](index=18&type=chunk) [Intelligent Driving Solutions](index=9&type=section&id=Intelligent%20Driving%20Solutions) Intelligent driving solutions revenue grew by 32.4% year-on-year, accounting for 69.8% of total revenue, with breakthroughs in L4 autonomous driving applications | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Growth | | :--- | :--- | :--- | :--- | | Intelligent Driving Solutions Revenue | 241.4 | 182.3 | 32.4% | | % of Total Revenue | 69.8% | 77.0% | -7.2 pp | - The iSafety series (L0-L2) solutions have secured AEBS project nominations from several mainstream domestic commercial vehicle manufacturers and continue to receive new passenger vehicle project nominations[22](index=22&type=chunk) - The iPilot series (L2+ level) added **4 new advanced assisted driving project nominations**, including **2 platform-level project nominations from Changan Automobile**, benefiting from the "Intelligent Driving for All" strategy[23](index=23&type=chunk) - The L4 autonomous driving iRobo unmanned mini-bus project has been commercially deployed in multiple locations nationwide, accumulating **over 10 projects**; unmanned logistics vehicles have entered open road testing, with delivery expected in Q4 this year[24](index=24&type=chunk) [Smart Cockpit Solutions](index=11&type=section&id=Smart%20Cockpit%20Solutions) Smart cockpit solutions revenue grew by 99.0% year-on-year, accounting for 17.6% of total revenue, with market penetration expected to accelerate due to regulatory compliance | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Growth | | :--- | :--- | :--- | :--- | | Smart Cockpit Solutions Revenue | 60.8 | 30.5 | 99.0% | | % of Total Revenue | 17.6% | 12.9% | +4.7 pp | - The DMS driver monitoring project successfully passed Automotive SPICE (ASPICE) V4.0 CL3 international assessment, marking the **first domestic case** to pass ML-SPICE assessment[27](index=27&type=chunk) - Products comply with EU ADDW and DDAW regulations, assisting OEMs in achieving E-NCAP five-star ratings, highly favored by export models[27](index=27&type=chunk) - The EU has mandated DMS functionality, and domestic regulations are being refined, anticipating an accelerated development period for the DMS market[28](index=28&type=chunk) [Vehicle-Road Coordination](index=12&type=section&id=Vehicle-Road%20Coordination) Vehicle-road coordination business revenue grew by 63.4% year-on-year, accounting for 11.2% of total revenue, enhancing traffic safety and efficiency | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Growth | | :--- | :--- | :--- | :--- | | Vehicle-Road Coordination Business Revenue | 38.6 | 23.6 | 63.4% | | % of Total Revenue | 11.2% | 10.0% | +1.2 pp | - Vehicle-road coordination solutions integrate sensor equipment such as radar and cameras, self-developed algorithms, and V2X technology, applied in highway, intersection traffic analysis, and industrial park management[29](index=29&type=chunk) [Business Outlook](index=12&type=section&id=Business%20Outlook) The company will continue to focus on intelligent driving and smart cockpit as core businesses, emphasizing technological innovation, global market expansion, and strategic partnerships - The company will focus on technological innovation and solution optimization, expanding its global market footprint, and seeking cooperation opportunities to implement new business models[30](index=30&type=chunk) - No material adverse changes in financial or trading position or prospects occurred from June 30, 2025, to the date of this report[30](index=30&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) The Group achieved significant revenue growth in H1 2025, but increased operating expenses led to an expanded loss for the period, with adjusted net loss reflecting non-cash impacts Revenue Breakdown by Business Line | Business Line | 2025 (RMB '000) | 2025 (%) | 2024 (RMB '000) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Intelligent Driving Solutions | 241,392 | 69.8 | 182,279 | 77.0 | | iSafety Solutions | 193,269 | 55.9 | 152,867 | 64.6 | | iPilot Solutions | 38,064 | 11.0 | 29,412 | 12.4 | | iRobo Solutions | 10,058 | 2.9 | – | – | | Smart Cockpit Solutions | 60,784 | 17.6 | 30,540 | 12.9 | | Vehicle-Road Coordination | 38,599 | 11.2 | 23,626 | 10.0 | | Others | 4,944 | 1.4 | 230 | 0.1 | | **Total** | **345,719** | **100.0** | **236,675** | **100.0** | - Cost of sales increased by **44.6% year-on-year to RMB 294.0 million**, primarily due to increased solution delivery volume[34](index=34&type=chunk) - Gross profit increased by **54.8% year-on-year to RMB 51.8 million**, with gross margin rising **0.9 percentage points to 15.0%**, mainly benefiting from economies of scale and the contribution of high-margin intelligent driving solutions[35](index=35&type=chunk) - Selling expenses, general and administrative expenses, and R&D expenses all showed significant growth, with R&D expenses increasing by **50.2% to RMB 95.1 million**, primarily due to increased R&D personnel and project investment[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) - Loss for the period increased by **44.8% from RMB 112.0 million** in the same period of 2024 to **RMB 162.3 million** in 2025[44](index=44&type=chunk) Non-IFRS Measures (Adjusted Net Loss) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Loss for the Period | (162,287) | (112,048) | | Add: Share-based payment expenses | 19,737 | 15,311 | | Add: Listing expenses | – | 14,298 | | **Adjusted Net Loss** | **(142,550)** | **(82,439)** | [Liquidity and Capital Resources](index=16&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company's total cash and cash equivalents, restricted cash, and time deposits decreased, while net cash outflow from operating activities and total borrowings increased - As of June 30, 2025, cash and cash equivalents, restricted cash, and time deposits were **RMB 635.3 million**, a decrease from **RMB 798.8 million** as of December 31, 2024[46](index=46&type=chunk) - Net cash outflow from operating activities was **RMB 159.3 million**, an increase from **RMB 84.6 million** in the same period of 2024[46](index=46&type=chunk) - Total borrowings increased to **RMB 289.2 million** (end of 2024: **RMB 191.5 million**), primarily due to increased cash demand for business expansion[47](index=47&type=chunk) Key Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 2.9 times | 3.14 times | | Debt-to-Asset Ratio | 2.8 times | 3.14 times | | Gearing Ratio | 29.85% | 18.78% | - As of June 30, 2025, a loan of **RMB 30.0 million** was obtained by pledging certain non-core patents[50](index=50&type=chunk) [Capital Expenditure and Capital Commitments](index=17&type=section&id=Capital%20Expenditure%20and%20Capital%20Commitments) During the reporting period, the company's capital expenditure decreased, while capital commitments, mainly related to property, plant and equipment, and intangible assets, significantly increased - Capital expenditure decreased from **RMB 59.7 million** in the same period of 2024 to **RMB 24.0 million** in the reporting period[52](index=52&type=chunk) - Capital commitments increased from **RMB 3.5 million** as of December 31, 2024, to **RMB 14.9 million** as of June 30, 2025[52](index=52&type=chunk) [Contingent Liabilities](index=17&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no material contingent liabilities - As of June 30, 2025, the company had no material contingent liabilities[53](index=53&type=chunk) [Financial Risk Management](index=17&type=section&id=Financial%20Risk%20Management) The company faces market, credit, and liquidity risks, which are managed by the finance department according to Board-approved policies to identify, assess, and hedge financial risks - The company's business activities are exposed to market risks (foreign exchange risk, cash flow and fair value interest rate risk, and price risk), credit risk, and liquidity risk[54](index=54&type=chunk) - Risk management is controlled by the finance department in accordance with Board-approved policies, working closely with operating units[54](index=54&type=chunk) [Material Investments and Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=17&type=section&id=Material%20Investments%20and%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) For the six months ended June 30, 2025, the company had no material investments and/or material acquisitions or disposals of subsidiaries, associates, and joint ventures - For the six months ended June 30, 2025, the company had no material investments and/or material acquisitions or disposals of subsidiaries, associates, and joint ventures[55](index=55&type=chunk) [Human Resources](index=17&type=section&id=Human%20Resources) As of June 30, 2025, the company had 686 full-time employees, offering competitive compensation, performance bonuses, long-term incentive plans, and employee benefits, with a focus on training and development - As of June 30, 2025, the company had **686 full-time employees**, all located in China[56](index=56&type=chunk) - The company offers competitive compensation packages, including performance-based bonuses, long-term incentive plans, and employee welfare programs[56](index=56&type=chunk) - The company values employee training and development, providing onboarding and continuous training programs to enhance employee skills and overall performance[56](index=56&type=chunk) Corporate Governance and Other Information This section details the company's adherence to corporate governance standards, use of proceeds, and other relevant administrative and financial disclosures [Compliance with Corporate Governance Code](index=17&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company is committed to high standards of corporate governance and has adopted the Corporate Governance Code, with compliance noted except for the combined roles of Chairman and CEO - The company has adopted corporate governance practices based on the principles and code provisions set out in the Corporate Governance Code[57](index=57&type=chunk) - During the reporting period, the company complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules, except for code provision C.2.1 (segregation of duties between Chairman and Chief Executive Officer)[57](index=57&type=chunk) - The roles of Chairman and General Manager are combined and held by Dr. Liu Guoqing, as the Board believes this arrangement provides strong and consistent leadership for the Group with sufficient checks and balances[58](index=58&type=chunk) [Compliance with Model Code](index=18&type=section&id=Compliance%20with%20Model%20Code) The company has adopted the Model Code for securities transactions by directors, supervisors, and employees with inside information, with all directors and supervisors confirming compliance during the reporting period - The company has adopted the Model Code as a code of conduct governing securities transactions by directors, supervisors, and employees with inside information[59](index=59&type=chunk) - During the reporting period, all directors and supervisors confirmed compliance with the Model Code provisions[60](index=60&type=chunk) [Use of Proceeds from Global Offering](index=19&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The company's H-shares were listed on December 27, 2024, raising net proceeds of approximately HKD 619.0 million from the global offering, primarily for R&D, production, sales, and working capital - Net proceeds of approximately **HKD 619.0 million** were raised from the global offering and partial exercise of the over-allotment option[62](index=62&type=chunk) Intended Use of Net Proceeds from Global Offering | Use | Approximate % of Net Proceeds | Allocated Amount (HKD million) | Amount Utilized During Reporting Period (HKD million) | Unutilized Amount (HKD million) | Expected Timeline for Full Utilization | | :--- | :--- | :--- | :--- | :--- | :--- | | Enhance R&D capabilities and recruit/retain R&D talent | 40% | 247.6 | 100 | 147.6 | By end of 2027 | | Enhance production efficiency and solution competitiveness | 30% | 185.7 | 2.8 | 182.9 | By end of 2027 | | Strengthen sales and marketing capabilities | 20% | 123.8 | 20.7 | 103.1 | By end of 2027 | | Working capital and general corporate purposes | 10% | 61.9 | 17.9 | 44 | By end of 2027 | - As of the latest practicable date, there were no changes to the intended use of net proceeds and the expected implementation timeline[63](index=63&type=chunk) [Use of Proceeds from July 2025 Placing](index=20&type=section&id=Use%20of%20Proceeds%20from%20July%202025%20Placing) The company completed a placing in July 2025, raising net proceeds of approximately HKD 155.11 million from 6,800,000 new H-shares, which remain unutilized for future disclosed purposes - On **July 9, 2025**, the company completed the placing of **6,800,000 new H-shares**, with net proceeds of approximately **HKD 155.11 million**[65](index=65&type=chunk) - The placing price was **HKD 23.26 per share**, representing a discount of approximately **14.80%** to the closing price on July 2, 2025[64](index=64&type=chunk) - As of the latest practicable date, the net proceeds remain unutilized and are intended for purposes disclosed in the announcement over the next two years[66](index=66&type=chunk) [Interim Dividend](index=20&type=section&id=Interim%20Dividend) The Board does not recommend the distribution of any interim dividend for the reporting period - The Board does not recommend the distribution of any interim dividend for the reporting period[67](index=67&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and no treasury shares were held as of June 30, 2025 - During the reporting period and up to the date of this report, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities on the Stock Exchange[69](index=69&type=chunk) - As of June 30, 2025, the company held no treasury shares[69](index=69&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or its Associated Corporations](index=21&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20its%20Associated%20Corporations) As of June 30, 2025, several directors held long positions in the company's unlisted shares and H-shares, including beneficial interests, jointly held interests, or interests in controlled corporations Directors' Long Positions in the Company's Ordinary Shares (as of June 30, 2025) | Name of Director | Type of Shares | Capacity/Nature of Interest | Number of Shares Held (L) | Approximate % of Relevant Class of Shares | Approximate % of Total Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | | Dr. Liu Guoqing | Unlisted Shares | Beneficial Interest | 17,141,751 | 19.13% | 4.28% | | | | Interest held jointly with others | 26,697,145 | 29.80% | 6.67% | | | | Interest in controlled corporation | 10,554,540 | 11.78% | 2.63% | | | H-shares | Beneficial Interest | 17,141,752 | 5.52% | 4.28% | | | | Interest held jointly with others | 26,697,147 | 8.60% | 6.67% | | | | Interest in controlled corporation | 10,554,542 | 3.40% | 2.63% | | Mr. Yang Guang | Unlisted Shares | Beneficial Interest | 7,464,254 | 8.33% | 1.86% | | | | Interest held jointly with others | 36,374,642 | 40.60% | 9.09% | | | H-shares | Beneficial Interest | 7,464,254 | 2.40% | 1.86% | | | | Interest held jointly with others | 36,374,645 | 11.72% | 9.09% | | Mr. Zhou Xiang | Unlisted Shares | Beneficial Interest | 7,464,254 | 8.33% | 1.86% | | | | Interest held jointly with others | 36,374,642 | 40.60% | 9.09% | | | H-shares | Beneficial Interest | 7,464,254 | 2.40% | 1.86% | | | | Interest held jointly with others | 36,374,645 | 11.72% | 9.09% | | Mr. Wang Qicheng | Unlisted Shares | Beneficial Interest | 6,674,095 | 7.45% | 1.66% | | | | Interest held jointly with others | 37,164,801 | 41.48% | 9.29% | | | H-shares | Beneficial Interest | 6,674,096 | 2.15% | 1.66% | | | | Interest held jointly with others | 37,164,803 | 11.97% | 9.29% | - Several directors are deemed to have interests in shares held by each other pursuant to the amended acting-in-concert agreement[74](index=74&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=23&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, various entities and individuals, beyond directors and chief executives, held significant interests or short positions in the company's shares or underlying shares Substantial Shareholders' Interests in the Company's Shares or Underlying Shares (as of June 30, 2025) | Name of Shareholder/Entity | Type of Shares | Capacity/Nature of Interest | Number of Shares Held (L/S) | Approximate % of Relevant Class of Shares | Approximate % of Total Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Yan Shengye | Unlisted Shares | Beneficial Interest | 2,996,735 | 3.34% | 0.74% | | | | Interest held jointly with others | 40,842,161 | 45.59% | 10.21% | | | H-shares | Beneficial Interest | 2,996,735 | 0.96% | 0.74% | | | | Interest held jointly with others | 40,842,164 | 13.15% | 10.21% | | Mr. Wu Jianxin | Unlisted Shares | Beneficial Interest | 2,097,807 | 2.34% | 0.52% | | | | Interest held jointly with others | 41,741,089 | 46.59% | 10.43% | | | H-shares | Beneficial Interest | 2,097,808 | 0.67% | 0.52% | | | | Interest held jointly with others | 41,741,091 | 13.44% | 10.43% | | Youjia Qingcheng | Unlisted Shares | Beneficial Interest | 6,193,090 | 6.91% | 1.54% | | Beijing Siwei Hulian Fund Management Center (L.P.) | H-shares | Beneficial Interest | 32,611,320 | 10.50% | 8.15% | | Shenzhen Zeyu Semiconductor Investment Partnership (L.P.) | H-shares | Beneficial Interest | 21,421,719 | 6.90% | 5.35% | | CDB Manufacturing Transformation and Upgrade Fund (L.P.) | Unlisted Shares | Beneficial Interest | 20,548,643 | 22.93% | 5.13% | | China International Capital Corporation Limited | H-shares | Interest in controlled corporation | 21,481,705 | 6.92% | 5.37% | | | H-shares | Interest in controlled corporation (S) | 776,800 | 0.24% | 0.19% | | Shenzhen Kangchengheng Capital Management Group Co., Ltd. | H-shares | Interest in controlled corporation | 45,520,095 | 14.66% | 11.38% | - Several substantial shareholders are deemed to have interests in shares held by each other due to acting-in-concert agreements or interests in controlled corporations[80](index=80&type=chunk)[82](index=82&type=chunk) [Employee Incentive Schemes](index=27&type=section&id=Employee%20Incentive%20Schemes) The company adopted employee incentive schemes through three holding entities to attract and retain talent, with no dilutive effect on issued shares - The company adopted employee incentive schemes through the establishment of three employee shareholding plan holding entities: Youjia Qingcheng, Youjia Zhongcheng, and Youjia Licheng[83](index=83&type=chunk) - The employee incentive schemes are not subject to the provisions of Chapter 17 of the Listing Rules and will not have any dilutive effect on the issued shares[83](index=83&type=chunk) [Equity-linked Agreements](index=27&type=section&id=Equity-linked%20Agreements) Except for the employee incentive schemes, the company had not entered into any equity-linked agreements for the period ended June 30, 2025 - Except for the employee incentive schemes, the company had not entered into any equity-linked agreements for the period ended June 30, 2025[84](index=84&type=chunk) [Changes in Information of Directors, Supervisors or Chief Executive](index=27&type=section&id=Changes%20in%20Information%20of%20Directors,%20Supervisors%20or%20Chief%20Executive) From the date of the company's most recently published annual report to the date of this report, there were no changes in the information of the company's directors, supervisors, and chief executive requiring disclosure - From the date of the company's most recently published annual report to the date of this report, there were no changes in the information of the company's directors, supervisors, and chief executive requiring disclosure[85](index=85&type=chunk) [Change of Auditors](index=28&type=section&id=Change%20of%20Auditors) The term of PricewaterhouseCoopers as the company's auditor has expired, and Rongcheng (Hong Kong) Certified Public Accountants Limited was appointed as the new auditor, approved by shareholders on August 13, 2025 - The term of PricewaterhouseCoopers has expired, and the company decided not to re-engage them[86](index=86&type=chunk) - The Board recommended appointing Rongcheng (Hong Kong) Certified Public Accountants Limited as the new auditor, which was approved by shareholders on **August 13, 2025**[86](index=86&type=chunk) [Review of Interim Results and Interim Report](index=28&type=section&id=Review%20of%20Interim%20Results%20and%20Interim%20Report) The Group's condensed consolidated interim financial statements for the six months ended June 30, 2025, have been reviewed by the Audit Committee, which deemed them prepared in accordance with applicable accounting standards and regulations - The Group's interim financial information has been reviewed by the Audit Committee, which deemed it prepared in accordance with applicable accounting standards, rules, and regulations with appropriate disclosures[87](index=87&type=chunk) [Events After Reporting Period](index=28&type=section&id=Events%20After%20Reporting%20Period) Except as disclosed in this report, the company is not aware of any material events after the reporting period from the end of the reporting period to the date of this report - Except as disclosed in this report, the company is not aware of any material events after the reporting period from the end of the reporting period to the date of this report[88](index=88&type=chunk) [Changes to Constitutional Documents](index=28&type=section&id=Changes%20to%20Constitutional%20Documents) Due to the completion of the July 2025 placing, the company's registered share capital and total issued shares increased, leading to Board-recommended amendments to the articles of association, approved by shareholders on August 13, 2025 - Due to the completion of the July 2025 placing, the company's registered share capital increased from **RMB 399,946,400** to **RMB 406,746,000**, and the total number of issued shares increased from **399,946,400** to **406,746,000**[89](index=89&type=chunk) - The Board recommended amendments to the company's articles of association to reflect the changes in share capital structure, which were approved by shareholders on **August 13, 2025**[89](index=89&type=chunk) Condensed Consolidated Statement of Comprehensive Loss This condensed consolidated statement of comprehensive loss shows that for the six months ended June 30, 2025, the company's revenue grew by 46.1% year-on-year, but due to increased cost of sales and various expenses, loss for the period expanded by 44.8% to RMB 162.3 million, with basic and diluted loss per share of RMB (0.38) Condensed Consolidated Statement of Comprehensive Loss (for the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 345,719 | 236,675 | | Cost of sales | (293,968) | (203,254) | | Gross profit | 51,751 | 33,421 | | Selling expenses | (53,382) | (32,015) | | General and administrative expenses | (58,936) | (50,196) | | Research and development expenses | (95,110) | (63,310) | | Operating loss | (162,389) | (109,935) | | Loss for the period | (162,287) | (112,048) | | Loss for the period attributable to owners of the Company | (151,558) | (108,135) | | Basic and diluted loss per share (RMB) | (0.38) | (0.31) | Condensed Consolidated Statement of Financial Position This condensed consolidated statement of financial position shows that as of June 30, 2025, the company's total assets decreased, current assets decreased, while both non-current and current liabilities increased, leading to an 11.2% reduction in total equity Condensed Consolidated Statement of Financial Position (as of June 30, 2025) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 141,097 | 139,193 | | Current assets | 1,437,522 | 1,539,097 | | **Total assets** | **1,578,619** | **1,678,290** | | **Liabilities** | | | | Non-current liabilities | 69,374 | 45,359 | | Current liabilities | 494,579 | 489,806 | | **Total liabilities** | **563,953** | **535,165** | | **Total equity** | **1,014,666** | **1,143,125** | - Cash and cash equivalents decreased from **RMB 793.9 million** at the end of 2024 to **RMB 566.3 million** as of June 30, 2025[95](index=95&type=chunk) - Trade and bills receivables slightly decreased from **RMB 506.5 million** to **RMB 505.2 million**[95](index=95&type=chunk) Condensed Consolidated Statement of Changes in Equity This condensed consolidated statement of changes in equity shows that for the six months ended June 30, 2025, the company's total equity decreased from RMB 1,143.1 million to RMB 1,014.7 million, primarily impacted by loss for the period and share-based payment expenses Condensed Consolidated Statement of Changes in Equity (for the six months ended June 30) | Indicator | January 1, 2025 (RMB '000) | Loss for the period (RMB '000) | Share-based payment expenses (RMB '000) | Issuance of ordinary shares after global offering (RMB '000) | June 30, 2025 (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Share capital | 399,190 | – | – | 756 | 399,946 | | Reserves | 1,359,274 | – | 19,737 | 10,898 | 1,389,909 | | Accumulated losses | (623,662) | (151,558) | – | – | (775,210) | | **Total equity attributable to owners of the Company** | **1,134,802** | **(151,558)** | **19,737** | **11,654** | **1,014,645** | | Non-controlling interests | 8,323 | (10,726) | – | 2 | 21 | | **Total equity** | **1,143,125** | **(162,287)** | **19,737** | **11,656** | **1,014,666** | - Loss for the period attributable to owners of the Company was **RMB 151.6 million**, leading to an increase in accumulated losses[100](index=100&type=chunk) - Share-based payment expenses were **RMB 19.7 million**, recognized in reserves[100](index=100&type=chunk) Condensed Consolidated Statement of Cash Flows This condensed consolidated statement of cash flows shows that for the six months ended June 30, 2025, both operating and investing activities resulted in net cash outflows, leading to a net decrease in cash and cash equivalents of RMB 222.7 million, with an ending balance of RMB 566.3 million Condensed Consolidated Statement of Cash Flows (for the six months ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net cash used in operating activities | (159,315) | (84,579) | | Net cash (used in)/generated from investing activities | (142,594) | 32,653 | | Net cash generated from financing activities | 79,247 | 74,105 | | **Net (decrease)/increase in cash and cash equivalents** | **(222,662)** | **22,179** | | Cash and cash equivalents at beginning of period | 793,943 | 197,934 | | Cash and cash equivalents at end of period | 566,271 | 220,125 | - Net cash used in operating activities increased by **88.4% year-on-year**, reflecting increased working capital requirements[101](index=101&type=chunk) - Investing activities shifted from net cash inflow in the same period of 2024 to net cash outflow in H1 2025, primarily due to the purchase of financial assets measured at fair value and time deposits[101](index=101&type=chunk) - Net cash generated from financing activities slightly increased, mainly from proceeds from bank borrowings[101](index=101&type=chunk) Notes to the Condensed Consolidated Interim Financial Statements This section provides detailed notes to the condensed consolidated interim financial statements, covering accounting policies, financial risks, and specific asset and liability breakdowns [1. General Information](index=35&type=section&id=1.%20General%20Information) This note outlines the basic information of Shenzhen Minieye Innovation Technology Co., Ltd., including its establishment, conversion to a joint stock company, principal business activities, and listing status - The Company was incorporated in Shenzhen on **December 10, 2014**, and converted into a joint stock company on **June 7, 2023**[103](index=103&type=chunk) - The Group is principally engaged in the development, manufacturing, and sale of intelligent driving products and solutions in China[104](index=104&type=chunk) - The Company was successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited on **December 27, 2024**[105](index=105&type=chunk) [2. Basis of Preparation and Changes in Accounting Policies](index=35&type=section&id=2.%20Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) This condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34, with consistent accounting policies and no material impact from newly adopted or unadopted standards - The condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[108](index=108&type=chunk) - The accounting policies adopted are consistent with those applied in the previous financial year and the corresponding interim reporting period, and newly adopted amended standards have no material impact on financial position or operating results[109](index=109&type=chunk)[110](index=110&type=chunk) - The Group has commenced assessing the impact of new and amended standards not yet adopted, and preliminarily believes no material impact on financial performance and position is expected[111](index=111&type=chunk) [3. Financial Risk Management](index=37&type=section&id=3.%20Financial%20Risk%20Management) The Group faces market, credit, and liquidity risks, managed through regular monitoring and maintaining sufficient cash, with detailed disclosures on financial liabilities and fair value estimation - The Group's activities are exposed to various financial risks: market risk (including foreign exchange risk, fair value interest rate risk, and cash flow interest rate risk), credit risk, and liquidity risk[113](index=113&type=chunk) - The liquidity risk management policy involves regular monitoring of liquidity risk and maintaining sufficient cash and cash equivalents[115](index=115&type=chunk) Maturity Analysis of Financial Liabilities (as of June 30, 2025) | Category | Less than one year (RMB '000) | One to two years (RMB '000) | Two to five years (RMB '000) | Total (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Borrowings (including interest payable) | 231,713 | 64,645 | – | 296,358 | | Trade payables | 186,775 | – | – | 186,775 | | Other payables and accrued expenses | 26,478 | – | – | 26,478 | | Lease liabilities | 13,130 | 793 | – | 13,923 | | **Total** | **458,096** | **65,438** | **–** | **523,534** | - Fair value measurements are categorized into three levels; Level 3 financial instruments include financial assets measured at fair value through other comprehensive income (bills receivable) and financial assets measured at fair value through profit or loss (structured deposits and wealth management products)[121](index=121&type=chunk)[122](index=122&type=chunk) [4. Critical Accounting Estimates and Judgements](index=43&type=section&id=4.%20Critical%20Accounting%20Estimates%20and%20Judgements) Preparing interim financial statements requires management to make judgments, estimates, and assumptions, with significant judgments and key sources of estimation uncertainty consistent with the previous financial year - The preparation of interim financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses[132](index=132&type=chunk) - In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are the same as those applied in the previous financial year and the corresponding interim reporting period[132](index=132&type=chunk) [5. Revenue and Segment Information](index=43&type=section&id=5.%20Revenue%20and%20Segment%20Information) The Group is primarily engaged in the development, production, and sale of intelligent driving products and solutions, considered a single operating segment, with all revenue recognized at a point in time - The Group is engaged in the development, production, and sale of intelligent driving products and solutions, which is considered a single operating segment[133](index=133&type=chunk) Revenue Breakdown for the Period (for the six months ended June 30) | Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Product sales | 225,195 | 199,958 | | Services and vehicle-road coordination | 115,580 | 36,487 | | Others | 4,944 | 230 | | **Total** | **345,719** | **236,675** | - All of the Group's revenue is recognized at a point in time[135](index=135&type=chunk) [6. Expenses by Nature](index=44&type=section&id=6.%20Expenses%20by%20Nature) This note details the composition of cost of sales, selling expenses, general and administrative expenses, and R&D expenses, with total expenses significantly increasing year-on-year Expenses by Nature Breakdown (for the six months ended June 30) | Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Raw materials and consumables used | 261,441 | 160,660 | | Employee benefit expenses | 111,818 | 86,751 | | Service fees | 53,248 | 18,940 | | Share-based payment expenses | 19,737 | 15,311 | | Total research and development expenses | 95,110 | 63,310 | | **Total expenses** | **501,396** | **348,775** | - Impairment provision for inventories decreased from **RMB 9.1 million** in 2024 to **RMB 2.2 million** in 2025[137](index=137&type=chunk) [7. Other Income](index=44&type=section&id=7.%20Other%20Income) The Group's other income primarily comprises government grants and VAT refunds, increasing by 33.6% year-on-year to RMB 8.4 million for the six months ended June 30, 2025 Other Income Breakdown (for the six months ended June 30) | Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Government grants | 4,729 | 3,214 | | VAT refunds | 3,633 | 3,045 | | **Total** | **8,362** | **6,259** | - Government grants primarily include local government financial subsidies and amortization of deferred government grants, with no unfulfilled conditions for recognized grants[138](index=138&type=chunk) [8. Other (Losses)/Gains, Net](index=45&type=section&id=8.%20Other%20(Losses)%2FGains,%20Net) Other gains, net for the period shifted from a gain of RMB 2.5 million in 2024 to a loss of RMB 5.1 million, primarily due to increased net foreign exchange losses Other (Losses)/Gains, Net Breakdown (for the six months ended June 30) | Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net fair value gains on financial assets at fair value through profit or loss | 3,545 | 2,385 | | Net foreign exchange losses | (6,300) | (204) | | Net gains on disposal of property, plant and equipment, intangible assets and right-of-use assets | 15 | (54) | | Others | (2,376) | 375 | | Late payment charges | (22) | (1) | | **Total** | **(5,138)** | **2,501** | - Net foreign exchange losses significantly increased from **RMB 204 thousand** in 2024 to **RMB 6,300 thousand** in 2025[139](index=139&type=chunk) [9. Net Finance Costs](index=45&type=section&id=9.%20Net%20Finance%20Costs) Net finance costs for the period shifted from a loss of RMB 2.1 million in 2024 to a gain of RMB 0.1 million, primarily due to increased interest income from bank deposits Net Finance Costs Breakdown (for the six months ended June 30) | Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Interest income from bank deposits | 5,092 | 1,606 | | Interest expense on bank borrowings | (4,568) | (3,039) | | Interest expense on lease liabilities | (422) | (743) | | **Net finance costs** | **102** | **(2,113)** | - Interest income from bank deposits increased from **RMB 1.6 million** in 2024 to **RMB 5.1 million** in 2025[140](index=140&type=chunk) [10. Income Tax Expense](index=46&type=section&id=10.%20Income%20Tax%20Expense) The Group's income tax expense for the six months ended June 30, 2025, and 2024 was zero, benefiting from preferential tax rates and R&D expense super deduction policies due to high-tech enterprise and small-profit enterprise qualifications - Income tax expense for the six months ended June 30, 2025, and 2024 was **zero**[141](index=141&type=chunk) - The Company and its subsidiary, Nanjing Minieye Technology Co., Ltd., enjoy a **preferential income tax rate of 15%** due to their high-tech enterprise qualification[142](index=142&type=chunk) - Enterprises engaged in R&D activities are entitled to claim additional tax deductions for qualified R&D expenses, at a rate of **75% or 100%**[142](index=142&type=chunk) - Certain PRC subsidiaries qualify as "small-profit enterprises" and enjoy a **preferential income tax rate of 20%**[143](index=143&type=chunk) [11. Loss Per Share](index=47&type=section&id=11.%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic loss per share attributable to owners of the Company was RMB (0.38), an increase from RMB (0.31) in the same period of 2024, with diluted loss per share being the same due to the loss incurred Basic Loss Per Share (for the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (RMB '000) | (151,558) | (108,135) | | Weighted average number of ordinary shares in issue (thousand shares) | 399,858 | 351,277 | | **Basic loss per share (RMB per share)** | **(0.38)** | **(0.31)** | - As the Group incurred losses for the six months ended June 30, 2025, and 2024, the inclusion of any potential ordinary shares in the calculation of diluted loss per share would be anti-dilutive; therefore, diluted loss per share is the same as basic loss per share[146](index=146&type=chunk) [12. Property, Plant and Equipment](index=48&type=section&id=12.%20Property,%20Plant%20and%20Equipment) As of June 30, 2025, the net book value of property, plant and equipment was RMB 52.7 million, an increase from the end of 2024, reflecting new acquisitions, disposals, and depreciation Net Book Value of Property, Plant and Equipment (as of June 30, 2025) | Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Machinery and models | 35,866 | 31,207 | | Transportation | 2,458 | 2,768 | | Computer and electronic equipment | 8,834 | 2,264 | | Other equipment | 957 | 552 | | Leasehold improvements | 888 | 2,513 | | Construction in progress | 3,660 | 4,579 | | **Total** | **52,663** | **43,883** | - Additions to property, plant and equipment totaled **RMB 17.3 million** during the period[147](index=147&type=chunk) - Depreciation expense was **RMB 6.9 million**[147](index=147&type=chunk) [13. Leases](index=50&type=section&id=13.%20Leases) As of June 30, 2025, total right-of-use assets amounted to RMB 54.0 million, and total lease liabilities were RMB 13.7 million, primarily related to offices, factories, and land use rights Lease Assets and Liabilities (as of June 30, 2025) | Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | **Right-of-use assets** | | | | Offices and factories | 12,328 | 19,007 | | Land use rights | 41,696 | 42,094 | | **Total right-of-use assets** | **54,024** | **61,101** | | **Lease liabilities** | | | | Current | 12,908 | 15,479 | | Non-current | 781 | 5,558 | | **Total lease liabilities** | **13,689** | **21,037** | [14. Intangible Assets](index=51&type=section&id=14.%20Intangible%20Assets) As of June 30, 2025, the net book value of intangible assets (primarily software) was RMB 19.6 million, a slight increase from the end of 2024, reflecting new additions and amortization expenses Net Book Value of Intangible Assets (as of June 30, 2025) | Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Software | 19,619 | 18,926 | | **Total** | **19,619** | **18,926** | - Additions to intangible assets were **RMB 1.6 million**, and amortization expense was **RMB 1.3 million** during the period[150](index=150&type=chunk) [15. Investment Properties](index=52&type=section&id=15.%20Investment%20Properties) As of June 30, 2025, the net book value of investment properties was RMB 4.4 million, slightly lower than the end of 2024, stated at cost less depreciation and impairment, with fair value approximating book value Net Book Value of Investment Properties (as of June 30, 2025) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Net book value at end of period | 4,408 | 4,529 | | Depreciation expense | (121) | (121) | - Investment properties are stated at cost less depreciation and impairment (if any), with fair value approximating book value[151](index=151&type=chunk)[152](index=152&type=chunk) [16. Goodwill](index=52&type=section&id=16.%20Goodwill) As of June 30, 2025, the company recognized goodwill of RMB 3.7 million from the acquisition of a subsidiary Goodwill (as of June 30, 2025) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Beginning of period | – | – | | Acquisition of a subsidiary | 3,734 | – | | **End of period** | **3,734** | **–** | [17. Other Non-current Assets](index=53&type=section&id=17.%20Other%20Non-current%20Assets) As of June 30, 2025, total other non-current assets amounted to RMB 6.5 million, a decrease from the end of 2024, primarily comprising non-current lease deposits and prepayments for property, plant and equipment Other Non-current Assets (as of June 30, 2025) | Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Long-term receivables | – | 1,113 | | Non-current lease deposits | 3,658 | 7,663 | | Prepayments for purchase of property, plant and equipment | 2,815 | 1,978 | | **Total** | **6,473** | **10,754** | [18. Inventories](index=53&type=section&id=18.%20Inventories) As of June 30, 2025, total inventories amounted to RMB 121.9 million, slightly lower than the end of 2024, primarily comprising raw materials, work-in-progress, finished goods, and contract costs, with inventory provisions recognized Inventories (as of June 30, 2025) | Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Raw materials | 54,685 | 62,364 | | Work-in-progress | 13,275 | 9,990 | | Finished goods | 45,924 | 45,508 | | Contract costs | 26,782 | 22,936 | | Less: Provision for inventories | (18,753) | (16,637) | | **Total** | **121,913** | **124,161** | [19. Trade and Bills Receivables](index=54&type=section&id=19.%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables amounted to RMB 505.2 million, largely consistent with the end of 2024, with bills receivable decreasing and trade receivables slightly increasing, and provisions for credit losses recognized Trade and Bills Receivables (as of June 30, 2025) | Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Bills receivable | 22,867 | 49,681 | | Trade receivables (net) | 482,310 | 456,809 | | **Total** | **505,177** | **506,490** | Ageing Analysis of Trade and Bills Receivables (as of June 30, 2025) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 year | 434,145 | 459,444 | | 1 to 2 years | 66,113 | 65,479 | | 2 to 3 years | 20,893 | 9,109 | | Over 3 years | 18,743 | 5,428 | | **Total** | **539,894** | **539,460** | [20. Other Current Assets](index=55&type=section&id=20.%20Other%20Current%20Assets) As of June 30, 2025, total other current assets amounted to RMB 88.9 million, an increase from the end of 2024, primarily comprising other receivables, prepayments, and deductible VAT Other Current Assets (as of June 30, 2025) | Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Other receivables (net) | 24,476 | 6,048 | | Prepayments | 41,818 | 52,699 | | Deductible VAT | 22,579 | 17,451 | | Others | – | 3,558 | | **Total** | **88,873** | **79,756** | - Other receivables (net) significantly increased from **RMB 6.0 million** at the end of 2024 to **RMB 24.5 million** as of June 30, 2025[157](index=157&type=chunk) [21. Financial Assets at Fair Value Through Other Comprehensive Income](index=56&type=section&id=21.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) The Group's financial assets at fair value through other comprehensive income primarily consist of bills receivable, amounting to RMB 30.6 million as of June 30, 2025, with all bills receivable aged within one year Financial Assets at Fair Value Through Other Comprehensive Income (as of June 30, 2025) | Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Bills receivable | 30,627 | 29,105 | | **Total** | **30,627** | **29,105** | - All bills receivable are aged within one year[159](index=159&type=chunk) [22. Financial Assets at Fair Value Through Profit or Loss](index=56&type=section&id=22.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) The Group's financial assets at fair value through profit or loss primarily consist of investments in structured deposits and wealth management products issued by banks, amounting to RMB 55.7 million as of June 30, 2025, a significant increase from the end of 2024 Financial Assets at Fair Value Through Profit or Loss (as of June 30, 2025) | Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Investments in structured deposits and wealth management products issued by banks | 55,659 | 800 | | **Total** | **55,659** | **800** | - The principal and returns of private equity funds, structured deposits, and wealth management products are not guaranteed, thus they are measured at fair value through profit or loss[160](index=160&type=chunk) [23. Cash and Cash Equivalents](index=57&type=section&id=23.%20Cash%20and%20Cash%20Equivalents) As of June 30, 2025, cash and cash equivalents amounted to RMB 566.3 million, a decrease from the end of 2024, primarily denominated in RMB, HKD, and USD, including restricted cash and time deposits Cash and Cash Equivalents (as of June 30, 2025) | Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Cash at bank | 635,273 | 798,785 | | Less: Restricted cash | (4,021) | (4,842) | | Less: Time deposits | (64,981) | – | | **Cash and cash equivalents** | **566,271** | **793,943** | Cash and Cash Equivalents by Currency (as of June 30, 2025) | Currency | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | RMB | 130,237 | 202,349 | | HKD | 256,853 | 591,115 | | USD | 179,025 | 426 | | SGD | 61 | 53 | | EUR | 95 | – | | **Total** | **566,271** | **793,943** | - Restricted cash is primarily used for electronic toll collection and frozen funds for litigation[161](index=161&type=chunk) [24. Share Capital](index=58&type=section&id=24.%20Share%20Capital) As of June 30, 2025, the company's share capital was RMB 399.9 million, an increase from the end of 2024, primarily due to the issuance of ordinary shares after the global offering Summary of Changes in Share Capital (as of June 30, 2025) | Indicator | Number of shares | Share capital (RMB '000) | | :--- | :--- | :--- | | As of January 1, 2025 and December 31, 2024 | 399,190,000 | 399,190 | | Issuance of ordinary shares after global offering | 756,000 | 756 | | **As of June 30, 2025** | **399,946,000** | **399,946** | [25. Reserves](index=58&type=section&id=25.%20Reserves) As of June 30, 2025, total reserves amounted to RMB 1,389.9 million, primarily comprising share premium and share-based payment reserve, increasing during the period due to the issuance of ordinary shares after the global offering and share-based payment expenses Reserves Breakdown and Changes (as of June 30, 2025) | Category | Share premium (RMB '000) | Share-based payment reserve (RMB '000) | Total (RMB '000) | | :--- | :--- | :--- | :--- | | As of January 1, 2025 | 1,265,229 | 94,045 | 1,359,274 | | Issuance of ordinary shares after global offering | 10,898 | – | 10,898 | | Share-based payment expenses | – | 19,737 | 19,737 | | **As of June 30, 2025** | **1,276,127** | **113,782** | **1,389,909** | [26. Share-based Payment Expenses](index=59&type=section&id=26.%20Share-based%20Payment%20Expenses) The Group granted restricted shares to executives and employees through Employee Shareholding Scheme A and B to attract and retain talent, with total share-based payment expenses of RMB 19.7 million recognized during the period - Employee Shareholding Scheme A was approved in **March 2016**, aiming to grant incentive shares to certain executives and employees[166](index=166&type=chunk) - Employee Shareholding Scheme B was approved in **March 2022**, aiming to grant incentive shares to certain executives and employees in the form of capital increase[168](index=168&type=chunk) - All granted restricted shares are subject to vesting conditions, typically linked to service periods, and may be forfeited upon employee departure[167](index=167&type=chunk)[169](index=169&type=chunk)[172](index=172&type=chunk) Expenses Arising from Share-based Payment Transactions (for the six months ended June 30) | Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Share-based payment expenses | 19,737 | 15,311 | [27. Borrowings](index=62&type=section&id=27.%20Borrowings) As of June 30, 2025, the Group's total borrowings amounted to RMB 289.2 million, an increase from the end of 2024, primarily bank loans, some unsecured but guaranteed, and some secured by non-core patents Borrowings Breakdown (as of June 30, 2025) | Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Bank borrowings included in non-current liabilities | 64,100 | 32,100 | | Bank borrowings included in current liabilities | 225,054 | 159,408 | | **Total borrowings** | **289,154** | **191,508** | - Unsecured long-term loans of **RMB 33.4 million** are guaranteed by the subsidiary Hubei Minieye Technology Co., Ltd[175](index=175&type=chunk) - Short-term loans of **RMB 30.0 million** are secured by certain non-core patents[175](index=175&type=chunk) [28. Deferred Income](index=63&type=section&id=28.%20Deferred%20Income) As of June 30, 2025, deferred income amounted to RMB 4.5 million, a decrease from the end of 2024, primarily comprising government grants recognized in profit or loss based on the progress of subsidy utilization Deferred Income (as of June 30, 2025) | Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Government grants | 4,493 | 7,701 | | **Total** | **4,493** | **7,701** | - Government grants are recognized as deferred income and credited to profit or loss based on the progress of subsidy utilization[177](index=177&type=chunk) [29. Trade Payables](index=63&type=section&id=29.%20Trade%20Payables) As of June 30, 2025, trade payables amounted to RMB 186.8 million, a decrease from the end of 2024, primarily comprising payables for raw material purchases, with carrying value approximating fair value Trade Payables (as of June 30, 2025) | Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Payables for purchase of raw materials | 186,775 | 226,341 | | **Total** | **186,775** | **226,341** | Ageing Analysis of Trade Payables (as of June 30, 2025) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 year | 159,426 | 181,829 | | 1 to 2 years | 7,636 | 23,787 | | Over 2 years | 19,713 | 20,725 | | **Total** | **186,775** | **226,341** | [30. Other Payables and Accrued Expenses](index=64&type=section&id=30.%20Other%20Payables%20and%20Accrued%20Expenses) As of June 30, 2025, total other payables and accrued expenses amounted to RMB 68.4 million, a decrease from the end of 2024, primarily comprising payables for salaries and benefits, warranty provisions, and accrued expenses Other Payables and Accrued Expenses (as of June 30, 2025) | Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Payables for salaries and benefits | 23,541 | 22,860 | | Accrued listing expenses | – | 16,654 | | Warranty provisions | 15,480 | 13,292 | | Accrued expenses | 9,001 | 11,237 | | Payables for long-term assets | 9,246 | 10,801 | | VAT and other taxes payable | 2,860 | 2,659 | | Endorsed bills receivable not yet derecognized and not yet due | 6,505 | 2,182 | | Others | 1,726 | 1,169 | | **Total** | **68,359** | **80,854** | [31. Business Combination](index=65&type=section&id=31.%20Business%20Combination) On April 15, 2025, the company invested RMB 10.0 million to acquire a 75% equity interest in Shenzhen Pengchi Zhixing Technology Co., Ltd., recognizing goodwill of RMB 3.7 million, with an additional contractual capital contribution of RMB 10.0 million - On **April 15, 2025**, the company invested **RMB 10.0 million** to acquire a **75% equity interest** in Shenzhen Pengchi Zhixing Technology Co., Ltd[182](index=182&type=chunk) - The company has a contractual obligation to make an additional capital contribution of **RMB 10.0 million** to Pengchi Group by **March 31, 2026**[182](index=182&type=chunk) Details of Business Combination | Category | Amount (RMB '000) | | :--- | :--- | | Cash paid | 10,000 | | Unpaid consideration | 10,000 | | **Total purchase consideration** | **20,000** | | Net identifiable assets acquired | 18,688 | | Less: Non-controlling interests | 2,422 | | Add: Goodwill | 3,734 | | **Total** | **20,000** | [32. Disposal of a Subsidiary](index=66&type=section&id=32.%20Disposal%20of%20a%20Subsidiary) On June 20, 2025, the company disposed of its 51% controlling interest in Hunan Youxiang Wanglian Intelligent Technology Co., Ltd., receiving total cash consideration of RMB 184,000 and generating a gain on disposal of RMB 1.9 million - On **June 20, 2025**, the company disposed of its **51% controlling interest** in Hunan Youxiang Wanglian Intelligent Technology Co., Ltd., receiving total cash consideration of **RMB 184,000**[184](index=184&type=chunk) Details of Disposal of a Subsidiary | Category | Amount (RMB '000) | | :--- | :--- | | Net assets disposed of | (1,517) | | Gain on disposal of a subsidiary | 1,877 | | Less: Fair value of remaining interest | 176 | | **Consideration received in cash** | **184** | | Net cash and cash equivalents outflow relating to disposal of a subsidiary | 98 | [33. Related Party Transactions](index=67&type=section&id=33.%20Related%20Party%20Transactions) The Group engaged in significant transactions with multiple related parties during the reporting period, including sales of goods or services, resulting in trade and other receivables balances, all conducted on normal business terms - The Group conducted transactions with related parties including Huashe Design Group Co., Ltd., Zhongyan Zhike Data Technology (Shanghai) Co., Ltd., Shanghai Tianqu Information Technology Co., Ltd., Zhonghuan Satellite Navigation Communication Co., Ltd., Jiangsu Xintong Intelligent Transportation Technology Development Co., Ltd., Hunan Youxiang Wanglian Intelligent Technology Co., Ltd., and Dr. Liu Guoqing[190](index=190&type=chunk) Transactions with Related Parties (for the six months ended June 30) | Related Party | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Zhonghuan Satellite Navigation Communication Co., Ltd. | 4,580 | 2,588 | | Huashe Design Group Co., Ltd. | – | 1,370 | | Shanghai Tianqu Information Technology Co., Ltd. | 150 | – | | Hunan Youxiang Wanglian Intelligent Technology Co., Ltd. | 145 | – | | **Total** | **4,875** | **3,958** | Trade and Bills Receivables Balances with Related Parties (as of June 30, 2025) | Related Party | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Jiangsu Xintong Intelligent Transportation Technology Development Co., Ltd. | 6,049 | 10,796 | | Huashe Design Group Co., Ltd. | 8,183 | 9,158 | | Zhonghuan Satellite Navigation Communication Co., Ltd. | 10,442 | 7,510 | | Zhongyan Zhike Data Technology (Shanghai) Co., Ltd. | 3,693 | 3,764 | | Shanghai Tianqu Information Technology Co., Ltd. | 412 | 761 | | Hunan Youxiang Wanglian Intelligent Technology Co., Ltd. | 21,964 | – | | **Total** | **50,743** | **31,989** | Key Management Personnel Compensation (for the six months ended June 30) | Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Salaries, wages and bonuses | 2,292 | 2,625 | | Pension, housing provident fund, medical insurance and other social insurance | 224 | 161 | | Share-based payment expenses | 5,978 | 3,324 | | **Total** | **8,494** | **6,110** | [34. Commitments](index=70&type=section&id=34.%20Commitments) As of June 30, 2025, the Group's significant capital expenditures contracted but not recognized as liabilities amounted to RMB 14.9 million, primarily related to property, plant and equipment, intangible assets, and equity investment contributions Capital Commitments (as of June 30, 2025) | Category | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Property, plant and equipment | 4,688 | 3,348 | | Intangible assets | 246 | 176 | | Equity investment contributions | 10,000 | – | | **Total** | **14,934** | **3,524** | [35. Dividends](index=70&type=section&id=35.%20Dividends) For the six months ended June 30, 2025, and 2024, the company neither paid nor declared any dividends - For the six months ended June 30, 2025, and 2024, the company neither paid nor declared any dividends[198](index=198&type=chunk) Definitions This section provides definitions for key terms and abbreviations used in this interim report, ensuring readers have a clear and consistent understanding of the report's content - This section defines key terms used in the report, such as "Artificial Intelligence," "Articles of Association," "Board," "H Shares," "IFRS," "LiDAR," "Listing Rules," "OEM," "RMB," "R&D," and "SFO"[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk)

Core Viewpoint - The company announced changes in the composition of its nomination committee effective from September 19, 2025, indicating a shift in governance structure [1] Group 1 - Dr. Liu Guoqing, the chairman and executive director, will no longer serve as a member of the nomination committee [1] - Ms. Liu Yiran, a non-executive director, has been appointed as a member of the nomination committee [1] - Following these changes, the nomination committee will consist of three members: Dr. Xiang Yang (Chairman), Dr. Tan Mingkui, and Ms. Liu Yiran [1]

Core Viewpoint - The company, Youjia Innovation (02431), announced changes in the composition of its nomination committee effective from September 19, 2025 [1] Group 1 - Dr. Liu Guoqing, the chairman and executive director, will no longer serve as a member of the nomination committee [1] - Ms. Liu Yiran, a non-executive director, has been appointed as a member of the nomination committee [1] - Following these changes, the nomination committee will consist of three members: Dr. Xiang Yang (Chairman), Dr. Tan Mingkui, and Ms. Liu Yiran [1]

Group 1 - The company Youjia Innovation (02431.HK) announced changes to its board of directors' nomination committee effective September 19, 2025 [1] - The chairman and executive director Liu Guoqing will no longer serve as a member of the nomination committee [1] - Non-executive director Liu Yiran has been appointed as a member of the nomination committee [1]

Minieye Technology Co., Ltd （於中華人民共和國註冊成立的股份有限公司） 深圳佑駕創新科技股份有限公司 （股份代號： 2431） 董事名單與其角色及職能 執行董事 劉國清博士 （董 事 長） 楊廣先生 周翔先生 王啟程先生 非執行董事 畢壘先生 劉怡然女士 獨立非執行董事 項陽博士 譚開國先生 譚明奎博士 深 圳 佑 駕 創 新 科 技 股 份 有 限 公 司（「本公司」）董 事（「董 事」）會（「董事會」）成 員 列 載 如 下： 董 事 會 設 立 四 個 委 員 會。下 表 提 供 各 董 事 於 該 等 委 員 會 中 擔 任 的 職 位。 | 董 事 | | 薪酬與考核 | 董事委員會 | | | --- | --- | --- | --- | --- | | | 審計委員會 | 委員會 | 提名委員會 | 戰略委員會 | | 劉國清博士 | | | | C | | 楊廣先生 | | | | M | | 周翔先生 | | | | | | 王啟程先生 | | | | | | 畢壘先生 | | | | | | 劉怡然女士 | | | M | | | 項陽博士 | M | M | ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 Minieye Technology Co., Ltd （於中華人民共和國註冊成立的股份有限公司） 深圳佑駕創新科技股份有限公司 （股份代號： 2431） 提名委員會組成變動 深 圳 佑 駕 創 新 科 技 股 份 有 限 公 司（「本公司」）董 事（「董 事」）會（「董事會」）宣 佈，自 二 零 二 五 年 九 月 十 九 日 起 本 公 司 董 事 會 提 名 委 員 會（「提名委員會」）之 組 成 有 以 下 變 動： (i) 董 事 會 主 席 兼 執 行 董 事 劉 國 清 博 士 不 再 擔 任 提 名 委 員 會 委 員； (ii) 非 執 行 董 事 劉 怡 然 女 士 獲 委 任 為 提 名 委 員 會 委 員。 作 出 上 述 變 動 後，提 名 委 員 會 由 三 名 成 員 組 成，分 別 為 項 陽 博 士（主 席）、譚 ...

Group 1 - The Hong Kong stock market saw a rise in autonomous driving concept stocks on September 18, with notable increases in share prices for several companies [1] - Black Sesame Technologies (02533.HK) experienced a significant increase of 9.04%, reaching HKD 20.86 [1] - Horizon Robotics-W (09660.HK) rose by 7.18%, trading at HKD 11.19 [1] - Suda Technology (02498.HK) saw a gain of 6.33%, with shares priced at HKD 45.26 [1] - Youjia Innovation (02431.HK) increased by 5.9%, with a share price of HKD 27.64 [1]

Core Viewpoint - The smart driving concept stocks have risen significantly following the announcement of a new national standard for intelligent connected vehicle auxiliary systems, indicating a positive outlook for the automotive smart technology sector [1] Group 1: Stock Performance - Stocks of several companies in the smart driving sector have seen notable increases: - Hezhima (000716) up 9.04% to HKD 20.86 - Horizon Robotics-W (09660) up 7.18% to HKD 11.19 - Suton Juchuang (02498) up 6.33% to HKD 45.26 - Youjia Innovation (02431) up 5.9% to HKD 27.64 [1] Group 2: Regulatory Developments - On September 17, the Ministry of Industry and Information Technology publicly solicited opinions on the mandatory national standard for "Safety Requirements for Intelligent Connected Vehicle Combination Driving Assistance Systems" - Data shows that the installation rate of Level 2 combination driving assistance technology in new energy vehicles has exceeded 50%, with expectations for continued growth in installation rates [1] Group 3: Industry Insights - A representative from the Ministry of Industry and Information Technology stated that this standard fills a safety baseline gap for combination driving assistance systems in China, providing critical technical support for industry access, quality supervision, and post-event traceability - This development is expected to enhance overall product safety levels in the industry [1] Group 4: Investment Recommendations - CITIC Securities suggests that the automotive smart technology supply chain is likely to benefit from the gradual improvement of industry regulations, recommending investment in: 1) Leading manufacturers in smart driving research and development 2) Leading suppliers of laser radar 3) Leading companies in intelligent connected vehicle testing and simulation services 4) Other leading suppliers of smart driving components [1] - Aijian Securities anticipates that the current period until next year will be a breakthrough window for advanced smart driving technology, policy regulations, user acceptance, and business models, advising a focus on automotive intelligence [1]

Core Viewpoint - The smart driving concept stocks have seen significant gains following the announcement of a new national standard for intelligent connected vehicle combination driving assistance systems, indicating a positive outlook for the industry [1] Group 1: Stock Performance - Black Sesame Intelligence (02533) increased by 9.04%, reaching HKD 20.86 [1] - Horizon Robotics-W (09660) rose by 7.18%, reaching HKD 11.19 [1] - Suton Juchuang (02498) climbed by 6.33%, reaching HKD 45.26 [1] - Youjia Innovation (02431) grew by 5.9%, reaching HKD 27.64 [1] Group 2: Regulatory Developments - On September 17, the Ministry of Industry and Information Technology publicly solicited opinions on the mandatory national standard for intelligent connected vehicle combination driving assistance systems [1] - Data indicates that the installation rate of L2-level combination driving assistance technology in new energy vehicles has exceeded 50%, with expectations for continued growth in installation rates [1] - The new standard addresses the safety baseline gap for combination driving assistance systems, providing essential technical support for industry access, quality supervision, and post-event traceability [1] Group 3: Investment Recommendations - CITIC Securities suggests that the automotive intelligentization industry chain is likely to benefit from improving regulatory frameworks, recommending investment in: 1. Leading manufacturers in smart driving research and development [1] 2. Top suppliers of lidar technology [1] 3. Leading companies in intelligent connected vehicle testing and simulation services [1] 4. Other leading suppliers of smart driving components [1] - Aijian Securities anticipates that the current period until next year will be a breakthrough window for the maturity of advanced smart driving technologies, policy regulations, user acceptance, and business models, advising a focus on automotive intelligentization [1]

Industry Overview - The Ministry of Industry and Information Technology has released a draft for mandatory national standards on "Safety Requirements for Intelligent Connected Vehicle Combination Driving Assistance Systems," aiming to establish a safety baseline for intelligent connected vehicles [1] - The draft emphasizes that systems can only be activated under their designed operating conditions and sets comprehensive safety technical requirements, including human-machine interaction, functional safety, information security, and data recording, creating a "triple safety guarantee" [1] - The standard is expected to drive technological upgrades and accelerate the implementation of advanced intelligent driving, facilitating smoother international expansion for the industry [1][2] Market Trends - The penetration rate of combination driving assistance systems in new passenger cars in China reached 62.58% in the first seven months of this year, with sales of such vehicles amounting to 7.76 million units, a year-on-year increase of 21.31% [2] - By mid-2025, the installation rate of L2-level and above driving assistance functions in new energy passenger vehicles is projected to reach 82.6% [2] - The current period until next year is seen as a critical window for breakthroughs in the maturity of advanced intelligent driving technology, policy regulations, user acceptance, and business models [2] Company Developments - Horizon Robotics is a leading player in the advanced driving assistance solutions market, providing both chips and algorithms, with products like J6P and HorizonCell offering 1120 TOPS computing power [4] - Black Sesame Intelligence has developed the A1000Pro chip with 106 TOPS performance and is collaborating with major automotive OEMs, enhancing its product matrix with the A2000 chip [4] - SUTENG Juchuang has achieved mass production of its high-line count LiDAR products, which are now featured in new models from various automakers [5] - Youjia Innovation has secured multiple contracts in the intelligent driving sector and is investing in high-level driving assistance and L4 autonomous driving solutions [5][6]