FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: Luyuan Group Holding (Cayman) Limited 綠源集團控股(開曼)有限公司* 呈交日期: 2025年9月3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) | 02451 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | USD | | 0.0001 USD | | 100,000 | | 增加 / 減少 (-) | | | | | | USD | | | | 本月底結存 | | | 1,000,000,000 | USD | | 0.0001 ...

Core Viewpoint - The company achieved significant growth in H1 2025, with revenue reaching 3.096 billion yuan (up 22.17% year-on-year) and net profit of 110 million yuan (up 66.87%), driven by product upgrades, innovative retail models, and expansion of store numbers [1] Group 1: Financial Performance - In H1 2025, the company reported a total revenue of 3.096 billion yuan, with a net profit of 110 million yuan, reflecting strong growth in both metrics [1] - The company maintains profit forecasts for 2025-2027, expecting net profits of 184 million yuan, 267 million yuan, and 347 million yuan, with corresponding EPS of 0.4, 0.6, and 0.8 yuan [1] - The gross margin is projected to rise to 13.56% in H1 2025, an increase of 1.60 percentage points, benefiting from a higher proportion of high-end products and cost reductions from scaled production [2] Group 2: Revenue Breakdown - Revenue from electric two-wheelers totaled 2.351 billion yuan (up 24.34%), accounting for 92.78% of total revenue, with electric bicycles contributing 1.997 billion yuan (up 29.19%) [1] - Battery revenue reached 597 million yuan (up 16.50%), while electric two-wheeler components generated 130 million yuan (up 18.73%) [1] Group 3: Industry Outlook - The industry is expected to see double-digit growth in overall shipments in 2025, driven by government initiatives such as trade-in programs [3] - The company is well-positioned to benefit from industry consolidation, leveraging its technological reserves and differentiated positioning [3] - The company is focusing on developing its high-end brand "LYVA" and expanding into the Asia-Pacific and European markets, promoting a smart and low-carbon brand image [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][6][15] Core Views - The company achieved significant growth in H1 2025, with revenue reaching 3.096 billion yuan (up 22.17% year-on-year) and net profit of 110 million yuan (up 66.87%), driven by product upgrades, innovative retail models, and expansion of store numbers [6][9] - The company maintains its profit forecast, expecting net profits of 184 million, 267 million, and 347 million yuan for 2025-2027, with corresponding EPS of 0.4, 0.6, and 0.8 yuan [6][11] Revenue Breakdown - All product categories saw year-on-year revenue growth, with electric bicycle revenue increasing by over 29%. The total revenue from electric two-wheelers was 2.351 billion yuan (up 24.34%), accounting for 92.78% of total revenue [7][8] - Electric bicycle revenue totaled 1.997 billion yuan (up 29.19%), while battery revenue reached 597 million yuan (up 16.50%) [7] Profitability - The company's gross margin improved to 13.56% (up 1.60 percentage points) in H1 2025, benefiting from a higher proportion of high-end products and cost reductions from scaled production [8] - The net profit margin for H1 2025 was 3.56% (up 0.95 percentage points), driven by revenue scale expansion and effective cost control [8] Outlook - The industry is expected to see double-digit growth in overall shipments in 2025, driven by policies encouraging trade-ins. The company is well-positioned to benefit from industry consolidation due to its technological reserves and differentiated positioning [9] - The company is focusing on developing its high-end brand "LYVA" and expanding into the Asia-Pacific and European markets, promoting an intelligent and low-carbon brand image [9]

Group 1 - Hong Kong automotive stocks collectively rose, with Li Auto up over 6%, BYD up nearly 5%, Great Wall Motors and NIO up over 3%, and XPeng Motors and Leap Motor up over 2% [1] - Recent earnings reports show Li Auto's Q2 revenue at 30.2 billion yuan, a quarter-on-quarter increase of 16.7%, with an operating profit of 827 million yuan, a year-on-year increase of 76.7% and a quarter-on-quarter surge of 204.4% [1] - Leap Motor achieved Q2 revenue of 14.23 billion yuan, with a gross margin of 13.6% and a net profit of 160 million yuan, marking a profitable quarter that exceeded expectations [1] Group 2 - XPeng Motors reported a net profit of -66.05 million USD for the second fiscal quarter of FY2025, an increase of 62.68% year-on-year [1] - BYD is expected to announce its Q2 results on August 30, forecasting a net profit between 10.5 billion to 12.914 billion yuan, representing a year-on-year growth of 15.9% to 42.5% [1] - Analysts suggest that Chinese automotive brands have gained the capability to compete with global traditional giants in design, technology, and experience, particularly in electrification and intelligence [1]

Group 1 - Hong Kong automotive stocks collectively rose, with Li Auto up over 6%, BYD up nearly 5%, Great Wall Motors and NIO up over 3%, and XPeng Motors and Leap Motor up over 2% [1] - Li Auto reported Q2 revenue of 30.2 billion yuan, a quarter-on-quarter increase of 16.7%, with an operating profit of 827 million yuan, a year-on-year increase of 76.7% and a quarter-on-quarter increase of 204.4% [1] - Leap Motor achieved Q2 revenue of 14.23 billion yuan, with a gross margin of 13.6% and a net profit of 160 million yuan, marking a profitable quarter that exceeded expectations [1] Group 2 - XPeng Motors reported a net profit of -66.05 million USD for the second fiscal quarter of FY2025, an increase of 62.68% year-on-year [1] - BYD is expected to announce its Q2 results on August 30, predicting a net profit of 10.5 to 12.914 billion yuan, a year-on-year increase of 15.9% to 42.5% [1] - Analysts suggest that Chinese automotive brands have the capability to compete with global traditional giants, particularly in electrification and intelligence, and are actively entering developed markets such as Europe and Australia, while positioning Mexico as a gateway to the North American market [1]

Core Insights - The company reported a revenue of 3.096 billion yuan for the first half of 2025, representing a year-on-year growth of 22.2%, and a net profit of 110 million yuan, up 66.9% year-on-year [1] - The gross margin reached 13.6%, an increase of 1.6 percentage points compared to the previous year, showcasing the company's strong fundamentals in a complex electric bicycle market [1] Group 1: Technological Advancements - The company emphasizes a technology-driven approach, continuously investing in R&D to maintain its leading position in "liquid-cooled motors" [2] - A digital battery management system was introduced to address battery durability issues, ensuring safety and longevity, with a reputation for lasting "10 years" [2] - The braking system features high-strength ceramic brake pads, enhancing durability by five times compared to standard drum brakes, achieving upgrades in both safety and longevity [2] Group 2: Diverse Business Model - The company offers a comprehensive product line, having launched over 21 new models by June 30, 2025, including industry-leading products like K50 and MS95 [3] - It has established over 14,000 offline retail stores and innovated its marketing strategy by launching online stores on major e-commerce platforms, successfully driving nearly 300,000 electric two-wheelers to stores in the past year [3] - The company was recognized as one of "China's 500 Most Valuable Brands" by the World Brand Lab, indicating strong brand value [3] Group 3: High-End Brand Development - The launch of the LYVA brand targets urban middle-class consumers seeking high-quality, tech-driven electric bicycles, entering the high-end market segment [4] - LYVA features an "AI mid-mounted motor + intelligent riding algorithm," enabling real-time interaction based on road conditions and user status, transitioning from "functional travel" to "smart companion" [4] Group 4: Comprehensive Service Ecosystem - The company focuses on a "full-scenario light travel solution," integrating hardware, software, and services to meet diverse user needs [5] - It has established a "3-kilometer service circle" with 14,000 smart stores nationwide, offering rental, on-site maintenance, and battery swapping services, creating a closed-loop business model [5] - This transition from product sales to ecosystem services positions the company as a comprehensive solution provider in the light travel sector [5] Group 5: Market Positioning and Growth Potential - The new national standard for electric bicycles will be implemented on September 1, 2025, which may lead to the exit of many smaller, less compliant companies, benefiting leading firms with strong compliance and brand influence [6] - The company is positioned for accelerated growth through technological innovation, high-end brand development, and comprehensive service offerings, aiming to redefine the standards in the light travel industry [6]

Core Viewpoint - Green Source Group Holdings (02451.HK) reported a significant increase in revenue and profit for the six months ending June 30, 2025, driven by product upgrades and retail innovations [1] Financial Performance - Revenue for the period reached approximately RMB 3.096 billion, representing a year-on-year growth of about 22.2% [1] - Profit for the period was RMB 110 million, showing a year-on-year increase of approximately 66.9% [1] - Basic earnings per share were RMB 0.29, reflecting a year-on-year growth of about 81.3% [1] - Gross profit margin stood at 13.6%, an increase of 1.6 percentage points year-on-year [1] Revenue Drivers - The revenue increase was primarily attributed to technology-driven product upgrades, innovations in the new retail model, steady progress in single-store efficiency improvement plans, and further expansion of store numbers [1] - Revenue from electric scooter sales remained stable, with RMB 345 million for the six months ending June 30, 2024, and RMB 354 million for the same period in 2025 [1] - Revenue from battery sales increased from RMB 510 million for the six months ending June 30, 2024, to RMB 596 million for the same period in 2025, marking a growth of approximately 16.5% [1]

Group 1 - The company reported an unaudited interim performance for the six months ending June 30, 2025, with revenue of 3.096 billion RMB, representing a year-on-year increase of 22.17% [1] - Shareholders' profit attributable to the company was 110 million RMB, showing a significant year-on-year increase of 66.87% [1] - The basic earnings per share were 0.29 RMB [1]

[Financial Highlights](index=1&type=section&id=I.%20Financial%20Highlights) This section provides a concise overview of the company's key financial performance indicators for the period [Key Financial Indicators](index=1&type=section&id=1.1%20Key%20Financial%20Indicators) For the six months ended June 30, 2025, Green Source Group's revenue increased by 22.2% year-on-year to RMB 3,095.7 million, profit for the period increased by 66.9% to RMB 110.1 million, basic earnings per share grew by 81.3% to RMB 0.29, and gross profit margin improved by 1.6 percentage points to 13.6% | Indicator | For the six months ended June 30, 2025 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | | Revenue | 3,095.7 | 22.2% | | Profit for the period | 110.1 | 66.9% | | Basic earnings per share (RMB) | 0.29 | 81.3% | | Gross profit margin | 13.6% | 1.6 percentage points | [Condensed Consolidated Financial Statements](index=2&type=section&id=II.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position [Consolidated Statement of Profit or Loss](index=2&type=section&id=2.1%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company's revenue increased to RMB 3,095,669 thousand, gross profit increased to RMB 419,720 thousand, operating profit significantly grew to RMB 118,110 thousand, and profit for the period reached RMB 110,116 thousand | Indicator | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 3,095,669 | 2,533,904 | | Cost of sales | (2,675,949) | (2,230,962) | | Gross profit | 419,720 | 302,942 | | Operating profit | 118,110 | 54,362 | | Profit for the period | 110,116 | 65,988 | | Basic earnings per share (RMB) | 0.29 | 0.16 | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=2.2%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's profit for the period was RMB 110,116 thousand, with total comprehensive income of RMB 109,291 thousand, primarily influenced by exchange differences from overseas operations and the company's own exchange differences | Indicator | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 110,116 | 65,988 | | Exchange differences arising from translation of overseas operations | 7,803 | (4,024) | | Exchange differences from translation of the Company | (8,471) | 4,912 | | Total comprehensive income for the period | 109,291 | 66,876 | [Consolidated Statement of Financial Position](index=4&type=section&id=2.3%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets increased to RMB 5,384,029 thousand, net current assets increased to RMB 302,291 thousand, total equity was RMB 1,580,138 thousand, and total liabilities were RMB 3,803,891 thousand | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total assets | 5,384,029 | 4,324,343 | | Net current assets | 302,291 | 151,123 | | Total equity | 1,580,138 | 1,497,732 | | Total liabilities | 3,803,891 | 2,826,611 | [Notes to the Financial Statements](index=6&type=section&id=III.%20Notes%20to%20the%20Financial%20Statements) This section provides detailed notes and explanations supporting the condensed consolidated financial statements [General Information](index=6&type=section&id=3.1%20General%20Information) The company was incorporated in the Cayman Islands in 2009, primarily engaged in the electric vehicle business in China, with Mr. Ni Jie and Ms. Hu Jihong as ultimate controlling shareholders. The condensed interim consolidated financial information is unaudited and presented in RMB thousand - The company was incorporated as an exempted company in the Cayman Islands on February 18, 2009[9](index=9&type=chunk) - The Group is principally engaged in the electric vehicle business in the People's Republic of China[10](index=10&type=chunk) - This condensed consolidated interim financial information has not been audited or reviewed[11](index=11&type=chunk) [Accounting Policies](index=6&type=section&id=3.2%20Accounting%20Policies) This interim financial information is prepared in accordance with HKAS 34 and follows the accounting policies adopted in the 2024 annual financial statements, except for changes expected to be reflected in the 2025 annual financial statements. Several new or revised standards effective January 1, 2025, have no significant impact on the Group's financial position and operating results - The interim financial information is prepared using the same accounting policies adopted in the 2024 annual financial statements, except for changes in accounting policies expected to be reflected in the 2025 annual financial statements[12](index=12&type=chunk) - The adoption of new or revised HKFRSs effective January 1, 2025, has no significant impact on the Group's financial position and operating results and requires no retrospective adjustments[14](index=14&type=chunk) - HKFRS 18 (Presentation and Disclosure in Financial Statements) is expected to primarily affect the presentation of the consolidated statement of comprehensive income, and the Group is still assessing its impact[14](index=14&type=chunk) [Basis of Preparation](index=6&type=section&id=3.2.1%20Basis%20of%20Preparation) This interim financial information is prepared in accordance with the applicable disclosure provisions of the Listing Rules of The Stock Exchange of Hong Kong Limited and HKAS 34 issued by the Hong Kong Institute of Certified Public Accountants, and should be read in conjunction with the 2024 annual financial statements - This interim financial information is prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with Hong Kong Accounting Standard 34 – Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants[12](index=12&type=chunk) - The condensed consolidated interim financial information and related notes do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual financial statements for the year ended December 31, 2024, prepared in accordance with Hong Kong Financial Reporting Standards[13](index=13&type=chunk) [Changes in Accounting Policies and Disclosures](index=7&type=section&id=3.2.2%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) Several new or revised standards effective January 1, 2025, have no significant impact on the Group's financial position and operating results. HKFRS 18 (Presentation and Disclosure in Financial Statements) may primarily affect the presentation of the consolidated statement of comprehensive income, and the Group is still assessing its impact - Several new or revised standards are applicable to this reporting period; the adoption of these new standards and amendments has no significant impact on the Group’s financial position and operating results and requires no retrospective adjustments[14](index=14&type=chunk) - Based on the preliminary assessment made by the Directors, these standards and amendments are not expected to have a significant impact on the Group’s financial performance and position, except for HKFRS 18, which may primarily affect the presentation of the consolidated statement of comprehensive income, and the Group is still assessing its impact[14](index=14&type=chunk) [Revenue and Segment Reporting](index=8&type=section&id=3.3%20Revenue%20and%20Segment%20Reporting) For the six months ended June 30, 2025, the company's revenue primarily derived from goods sales, with a smaller proportion from service revenue. The Group has no single customer accounting for more than 10% of revenue and operates only one reportable operating segment, primarily engaged in the development, manufacturing, and sales of electric vehicles and related accessories in China | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of goods | 3,077,791 | 2,512,539 | | Revenue from services | 17,878 | 21,365 | | **Total Revenue** | **3,095,669** | **2,533,904** | - For the six months ended June 30, 2024 and 2025, no single customer accounted for more than 10% of the Group's revenue[18](index=18&type=chunk) - The Group has only one reportable operating segment, responsible for the development, manufacturing, and sales of electric vehicles and related accessories[19](index=19&type=chunk) [Disaggregation of Revenue from Contracts with Customers](index=8&type=section&id=3.3.1%20Disaggregation%20of%20Revenue%20from%20Contracts%20with%20Customers) For the six months ended June 30, 2025, revenue from sales of goods was RMB 3,077,791 thousand, and revenue from services was RMB 17,878 thousand, with the vast majority of revenue recognized at a point in time | Revenue Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of goods | 3,077,791 | 2,512,539 | | Revenue from services | 17,878 | 21,365 | | **Total Revenue** | **3,095,669** | **2,533,904** | | Revenue recognized at a point in time | 3,077,791 | 2,512,539 | | Revenue recognized over a period of time | 17,878 | 21,365 | [Segment Information and Geographical Information](index=8&type=section&id=3.3.2%20Segment%20Information%20and%20Geographical%20Information) The Group has only one reportable operating segment, which is the development, manufacturing, and sales of electric vehicles and related accessories. Geographical information is not presented as over 90% of revenue, operating profit, non-current assets, and liabilities are derived from China - The Group has only one reportable operating segment, responsible for the development, manufacturing, and sales of electric vehicles and related accessories[19](index=19&type=chunk) - As over 90% of the Group's revenue and operating profit are derived from electric vehicle sales in China, and over 90% of the Group's non-current assets and liabilities are located in China, no geographical information is presented in accordance with HKFRS 8 Operating Segments[20](index=20&type=chunk) [Other Income and Expenses](index=9&type=section&id=3.4%20Other%20Income%20and%20Expenses) For the six months ended June 30, 2025, other income was RMB 37,150 thousand, primarily comprising government grants and interest income from time deposits, showing a slight year-on-year decrease. Other expenses were RMB (3,591) thousand, a year-on-year decrease | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | **Other Income** | | | | Government grants | 23,237 | 27,149 | | Interest income from time deposits | 4,508 | 871 | | Total other income | 37,150 | 38,103 | | **Other Expenses** | | | | Cost of obsolete materials and work-in-progress | (2,025) | (2,461) | | Total other expenses | (3,591) | (4,761) | - Government grants mainly include general support from local governments, employment stabilization subsidies, tax refunds, and other subsidies[21](index=21&type=chunk) [Other Gains – Net](index=9&type=section&id=3.5%20Other%20Gains%20–%20Net) For the six months ended June 30, 2025, other gains – net was RMB 2,658 thousand, a significant decrease from RMB 13,676 thousand in the prior period, primarily due to reduced fair value changes of financial assets at fair value through profit or loss and lower exchange gains | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Exchange (losses) / gains | (332) | 5,005 | | Fair value changes of financial assets at fair value through profit or loss | 8,225 | 11,806 | | Loss on disposal of financial assets at fair value through other comprehensive income | (3,706) | (3,217) | | **Other Gains – Net** | **2,658** | **13,676** | [Expenses by Nature](index=10&type=section&id=3.6%20Expenses%20by%20Nature) For the six months ended June 30, 2025, total cost of sales, selling and marketing expenses, administrative expenses, and research and development costs amounted to RMB 3,018,830 thousand, primarily comprising raw materials and consumables used, employee benefit expenses, and advertising expenses | Expense Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw materials and consumables used | 2,498,573 | 2,067,992 | | Employee benefit expenses | 192,355 | 179,455 | | Advertising expenses | 61,613 | 51,835 | | Research and development costs | 104,213 | 91,969 | | **Total Expenses** | **3,018,830** | **2,526,086** | [Finance Income – Net](index=10&type=section&id=3.7%20Finance%20Income%20–%20Net) For the six months ended June 30, 2025, net finance income was RMB 314 thousand, a significant decrease from RMB 12,520 thousand in the prior period, primarily due to reduced interest income from bank deposits | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total finance costs | (10,095) | (11,412) | | Interest income from bank deposits | 10,409 | 23,932 | | **Net Finance Income** | **314** | **12,520** | [Income Tax Expense](index=11&type=section&id=3.8%20Income%20Tax%20Expense) For the six months ended June 30, 2025, total income tax expense was RMB 7,108 thousand, a significant increase from RMB 716 thousand in the prior period, consistent with the growth in profit for the period. China's corporate income tax rate is generally 25%, with some subsidiaries enjoying a 15% or small-profit enterprise preferential tax rate | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | China corporate income tax | 19,272 | 11,872 | | Deferred income tax | (12,164) | (11,156) | | **Total Income Tax Expense** | **7,108** | **716** | - The general China corporate income tax rate is 25%, except for two subsidiaries applying a 15% income tax rate with high-tech enterprise certificates and two subsidiaries enjoying preferential income tax rates for small-profit enterprises[24](index=24&type=chunk) - As of June 30, 2025, deferred tax expense of **RMB 2,344,000** and corresponding deferred tax liabilities have been recognized for withholding tax payable on retained earnings of the Group's Chinese subsidiaries[25](index=25&type=chunk) [Earnings Per Share](index=11&type=section&id=3.9%20Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share was RMB 0.29, and diluted earnings per share was RMB 0.28, both showing an increase compared to the prior period | Indicator | For the six months ended June 30, 2025 (RMB) | For the six months ended June 30, 2024 (RMB) | | :--- | :--- | :--- | | Basic earnings per share | 0.29 | 0.16 | | Diluted earnings per share | 0.28 | 0.16 | [Basic Earnings Per Share](index=11&type=section&id=3.9.1%20Basic%20Earnings%20Per%20Share) Basic earnings per share is calculated by dividing the profit for the period attributable to equity holders of the company by the weighted average number of ordinary shares outstanding during each period. For the six months ended June 30, 2025, basic earnings per share was RMB 0.29 | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (RMB thousand) | 110,116 | 65,988 | | Weighted average number of ordinary shares outstanding (thousand shares) | 379,215 | 407,352 | | Basic earnings per share (RMB) | 0.29 | 0.16 | [Diluted Earnings Per Share](index=12&type=section&id=3.9.2%20Diluted%20Earnings%20Per%20Share) Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding, assuming conversion of all potential dilutive ordinary shares. For the six months ended June 30, 2025, diluted earnings per share was RMB 0.28 | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (RMB thousand) | 110,116 | 65,988 | | Weighted average number of ordinary shares for diluted EPS (thousand shares) | 394,046 | 414,239 | | Diluted earnings per share (RMB) | 0.28 | 0.16 | [Inventories](index=12&type=section&id=3.10%20Inventories) As of June 30, 2025, the company's total inventories amounted to RMB 304,611 thousand, a slight increase from RMB 303,068 thousand as of December 31, 2024, primarily consisting of finished goods. No inventory provision was made during the reporting period | Inventory Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw materials | 75,840 | 83,885 | | Work-in-progress | 24,183 | 22,057 | | Finished goods | 203,890 | 196,611 | | Goods in transit | 698 | 515 | | **Total Inventories** | **304,611** | **303,068** | - No provision for inventories was made for the six months ended June 30, 2024 and 2025[31](index=31&type=chunk) [Trade and Bills Receivables](index=13&type=section&id=3.11%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables amounted to RMB 442,583 thousand, an increase from RMB 360,302 thousand as of December 31, 2024. The majority of trade and bills receivables are denominated in RMB | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current trade receivables (net of impairment allowance) | 396,671 | 312,216 | | Bills receivables (net of impairment allowance) | 45,912 | 48,086 | | **Total** | **442,583** | **360,302** | - The majority of the Group's trade and bills receivables are denominated in RMB[33](index=33&type=chunk) [Current Trade and Bills Receivables](index=13&type=section&id=3.11.1%20Current%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, current trade receivables were RMB 396,671 thousand (net of impairment allowance), and bills receivables were RMB 45,912 thousand (net of impairment allowance). The majority of current trade receivables are due within one year | Aging of Current Trade Receivables | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 395,764 | 294,930 | | One to two years | 7,892 | 5,392 | | Two to three years | 4,274 | 29,196 | | Over three years | 20,000 | 8,045 | | **Total** | **427,930** | **337,563** | [Non-current Trade Receivables](index=14&type=section&id=3.11.2%20Non-current%20Trade%20Receivables) As of June 30, 2025, non-current trade receivables decreased to zero, compared to RMB 486 thousand (net of impairment allowance) as of December 31, 2024 | Non-current Trade Receivables | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current trade receivables | – | 499 | | Less: Impairment allowance for receivables – non-current | – | (13) | | **Total** | **–** | **486** | [Other Receivables and Prepayments](index=15&type=section&id=3.12%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, total other receivables and prepayments amounted to RMB 473,666 thousand, an increase from RMB 415,338 thousand as of December 31, 2024, primarily due to increased prepayments for raw materials | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current | 188,738 | 177,373 | | Total current | 284,928 | 237,965 | | **Total** | **473,666** | **415,338** | - Current prepayments for raw materials increased from RMB 24,829 thousand as of December 31, 2024, to **RMB 90,957 thousand** as of June 30, 2025[34](index=34&type=chunk) [Dividends](index=15&type=section&id=3.13%20Dividends) For the six months ended June 30, 2025, the company declared a final dividend of RMB 56,628 thousand for the year ended December 31, 2024, at HKD 0.15 per fully paid share | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Final dividend for the year ended December 31, 2024 (HKD 0.15 per share) | 56,628 | – | [Trade and Bills Payables and Other Payables](index=16&type=section&id=3.14%20Trade%20and%20Bills%20Payables%20and%20Other%20Payables) As of June 30, 2025, total trade and bills payables and other payables amounted to RMB 2,280,616 thousand, a significant increase from RMB 1,655,711 thousand as of December 31, 2024, primarily due to increased procurement volume in line with sales growth | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 901,141 | 483,294 | | Bills payables | 1,204,300 | 929,145 | | Other taxes payable | 34,442 | 46,074 | | **Total** | **2,280,616** | **1,655,711** | - The majority of trade payables are due within one year, increasing from RMB 463,807 thousand as of December 31, 2024, to **RMB 883,281 thousand** as of June 30, 2025[35](index=35&type=chunk) [Borrowings](index=17&type=section&id=3.15%20Borrowings) As of June 30, 2025, total borrowings amounted to RMB 1,261,923 thousand, an increase from RMB 1,002,333 thousand as of December 31, 2024. Current borrowings were RMB 924,223 thousand, and non-current borrowings were RMB 337,700 thousand | Borrowing Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current borrowings | 337,700 | 259,460 | | Total current borrowings | 924,223 | 742,873 | | **Total Borrowings** | **1,261,923** | **1,002,333** | - Among current borrowings, other borrowings (**RMB 513,908 thousand**) and unsecured bank loans (**RMB 261,000 thousand**) account for a larger proportion[37](index=37&type=chunk) [Business Review and Outlook](index=18&type=section&id=IV.%20Business%20Review%20and%20Outlook) This section provides an overview of the company's business performance during the period and its strategic outlook [Business Review](index=18&type=section&id=4.1%20Business%20Review) As of June 30, 2025, the electric two-wheeler market showed considerable growth potential driven by new national standards, trade-in policies, and advancements in smart technology. The Group achieved a significant 66.9% increase in net profit through technological strength, product innovation, and improved channel efficiency - The electric two-wheeler market shows considerable growth potential, driven by new national standard policies, natural replacement cycles, trade-in policies, and advancements in smart technology[38](index=38&type=chunk) - The Group's net profit increased by approximately **66.9%** from RMB 66.0 million for the six months ended June 30, 2024, to **RMB 110.1 million** for the same period in 2025, primarily due to product upgrades driving higher gross profit and improved channel efficiency leading to increased product sales[38](index=38&type=chunk) [Research and Development](index=18&type=section&id=4.1.1%20Research%20and%20Development) The Group is committed to the forefront of technological development in the electric two-wheeler industry, holding 912 patents as of June 30, 2025. R&D focuses on vehicle durability, safety, battery life, and smart features, with continuous investment in five core systems: liquid-cooled motors, solid-state electrical systems, digital battery maintenance, safe driving, and intelligent connectivity. R&D costs increased by 13.3% in the first half of 2025, with 222 new patent applications and 183 new patent grants, while actively developing key components for robotics - As of June 30, 2025, the Group held a total of **912 patents**, leading the industry in invention patents[39](index=39&type=chunk) - The Group continuously invests in five core systems, namely liquid-cooled motor system, solid-state electrical system, digital battery maintenance system, safe driving system, and intelligent connectivity system[39](index=39&type=chunk) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | R&D costs | 104.2 | 92.0 | 13.3% | - In the first half of 2025, the Group filed **222 new patent applications** and obtained **183 new patent grants**[40](index=40&type=chunk) - The Group is also actively developing key components for robotics, establishing the Jinhua Economic Development Zone Robotics Industry Alliance as a co-leading unit[41](index=41&type=chunk) [Products](index=19&type=section&id=4.1.2%20Products) The Group continues to strengthen its diversified product portfolio, covering entry-level, mid-range, and high-end models, strategically emphasizing growth in the mid-to-high-end segments. During the reporting period, over 20 new models were launched, and the Group became one of the first domestic enterprises to obtain certification under the new "Mandatory Product Certification Implementation Rules for Electric Bicycles" - The Group continues to strengthen its diversified product portfolio, with a comprehensive product line covering entry-level, mid-range, and high-end models, strategically emphasizing growth in the mid-to-high-end segments[42](index=42&type=chunk) - As of June 30, 2025, we launched **over 20 new models**, including industry-leading products such as K50, MS95, and Moda50D[42](index=42&type=chunk) - The Group's products have successfully obtained certification under the new "Mandatory Product Certification Implementation Rules for Electric Bicycles", becoming one of the first domestic enterprises to receive this new national standard certification[42](index=42&type=chunk) [Production](index=19&type=section&id=4.1.3%20Production) The Group is committed to enhancing manufacturing and quality control capabilities through standardized, automated, and intelligent production systems, actively participating in the national electric two-wheeler safety improvement initiative. The Chongqing intelligent production factory officially commenced operations in February 2025, improving production efficiency and product quality through organizational changes and hardware upgrades - The Group actively participates in the national electric two-wheeler safety improvement initiative by strictly adhering to national technical standards and continuously promoting standardized, automated, and intelligent production systems[43](index=43&type=chunk) - Our Chongqing intelligent production factory officially commenced operations in February 2025, with a clear vision to become a leading enterprise in full-chain intelligent manufacturing[43](index=43&type=chunk) - The Group further innovated its production efficiency, reflected in accelerated organizational changes, including the establishment of a manufacturing business unit to promote resource sharing among different production bases and enhance product consistency and quality[43](index=43&type=chunk) [Customers and Sales Channels](index=20&type=section&id=4.1.4%20Customers%20and%20Sales%20Channels) The Group continues to improve its multi-dimensional channel layout, strengthening online-offline synergy and enhancing end-to-end retail capabilities. As of June 30, 2025, its offline distribution network covered 336 cities across 31 provincial-level administrative regions in mainland China, with over 14,000 offline retail stores. Simultaneously, it actively expanded online e-commerce platforms, established strategic partnerships with enterprises and institutional clients such as HelloBike, Didi Qingju, and Meituan, and expanded international business into 3 new countries - As of June 30, 2025, the Group's offline distribution network covered **336 cities** across **31 provincial-level administrative regions** in mainland China, with **over 14,000 offline retail stores**[45](index=45&type=chunk) - The Group has opened online stores on mainstream e-commerce platforms such as Tmall, JD.com, Pinduoduo, and Douyin, promoting a new retail model of online ordering with physical store test rides or pick-ups[46](index=46&type=chunk) - The Group deepened its cooperation with HelloBike, jointly developing new national standard products; became a major supplier of Didi Qingju electric two-wheelers; and established a partnership with Meituan, which became the Group's fastest-growing supplier[48](index=48&type=chunk) - During the reporting period, the Group expanded its international business, entering **3 new countries**, and actively planning to enter European and American markets[49](index=49&type=chunk) [Marketing](index=21&type=section&id=4.1.5%20Marketing) The Group, centered on the differentiated marketing theme "One Vehicle for Ten Years," enhanced brand awareness and market penetration through cross-media collaborations, celebrity endorsements, IP co-branding, community interaction, and live-streaming sales. During the reporting period, online sales exceeded RMB 500 million, total sales on the Douyin platform increased by 72.7%, and the Group was recognized as one of "China's 500 Most Valuable Brands" - The Group closely focused on the differentiated marketing theme "One Vehicle for Ten Years," strengthening deep interaction with consumers and utilizing various marketing methods across traditional and new media to enhance the "Luyuan" brand's awareness and recognition[50](index=50&type=chunk) - The Group partnered with the well-known IP "ZANMANG LOOPY" to launch a co-developed product line, increasing market penetration into the ACGN culture[50](index=50&type=chunk) - In a multi-anchor joint live-streaming project launched with Wuyou Media, the Group's content exposure exceeded **1 billion views**, with online sales surpassing **RMB 500 million**, and total sales on the Douyin platform increasing by **72.7%**[50](index=50&type=chunk) - The Group was recognized as one of "China's 500 Most Valuable Brands" by the World Brand Lab during the reporting period[50](index=50&type=chunk) [Green Development and Social Responsibility](index=22&type=section&id=4.1.6%20Green%20Development%20and%20Social%20Responsibility) Adhering to green development principles, the Group actively fulfills its low-carbon environmental social responsibility, conducting "National Safety Public Welfare Campaign" activities to promote battery safety knowledge. Through its three core technologies—liquid-cooled motors, digital battery systems, and solid-state electrical systems—it enhances product energy efficiency and safety, promotes resource conservation and recycling, and plans to construct the new Chongqing intelligent production factory strictly according to "green factory" standards, exploring carbon neutrality practices throughout the product lifecycle - The Group conducted a series of "National Safety Public Welfare Campaign" activities in cities such as Nanjing, Zhengzhou, Tianshui, Shanghai, and Hefei, focusing on promoting electric two-wheeler battery safety knowledge and preventive measures[51](index=51&type=chunk) - The Group relies on its three core technologies—liquid-cooled motor, digital battery system, and solid-state electrical system—to continuously enhance product energy efficiency and safety, promoting resource conservation and recycling[52](index=52&type=chunk) - The Group's newly built Chongqing intelligent production factory will strictly adhere to "green factory" standards, actively exploring carbon neutrality practices throughout the product lifecycle[52](index=52&type=chunk) [Outlook](index=23&type=section&id=4.2%20Outlook) The Group anticipates strong growth opportunities in the electric two-wheeler market, particularly driven by new national standards and trade-in programs. The company will prioritize the development of high-end electric-assist bicycles and strategically expand into electric mobility ecosystem services, including battery swapping infrastructure, shared mobility solutions, and enhanced after-sales services, to consolidate its market leadership - In 2025, the Chinese electric bicycle market is expected to experience strong growth, driven by policies such as the trade-in program and the transition to new national standards[54](index=54&type=chunk) - The Group prioritizes the development of high-end electric-assist bicycles in 2025 and strategically expands into electric mobility ecosystem services, including battery swapping infrastructure, shared mobility solutions, and enhanced after-sales services[53](index=53&type=chunk) [Market Opportunities and Competitive Landscape](index=23&type=section&id=4.2.1%20Market%20Opportunities%20and%20Competitive%20Landscape) The Chinese electric bicycle market is projected to experience strong growth, with new national standards accelerating industry consolidation and shifting competition from price to quality-driven differentiation, particularly in the mid-to-high-end market. The Group will leverage its core technological advantages and superior product quality to consolidate its market-leading position - With the full implementation of updated national standards and increased industry-wide compliance efforts, non-compliant manufacturers will be systematically phased out, accelerating market share consolidation among industry leaders[54](index=54&type=chunk) - As inferior products gradually exit the market, market competition is expected to shift from a price-centric competition to a quality-driven differentiation[54](index=54&type=chunk) - The mid-to-high-end market will accelerate its development, driven by continuous technological advancements and performance upgrades[54](index=54&type=chunk) [Growth Strategies](index=23&type=section&id=4.2.2%20Growth%20Strategies) The Group will enhance its core competitiveness by continuously consolidating technological barriers, strategically transforming into intelligent manufacturing, and actively cultivating market demand, particularly expanding into overseas high-end markets and the electric-assist bicycle market - The Group will continue to enhance its core competitiveness through the following growth strategies: continuously consolidating technological barriers, strategic intelligent manufacturing transformation, and actively cultivating market demand[54](index=54&type=chunk) [Continuously Consolidate Technological Barriers](index=23&type=section&id=4.2.2.1%20Continuously%20Consolidate%20Technological%20Barriers) The Group is committed to enhancing its core technological strength, consolidating its leading position in proprietary technologies such as liquid-cooled motor systems, and plans to further strengthen its digital battery management system by improving thermal management and low-temperature performance to extend battery life and address safety concerns. Simultaneously, it will establish a unified R&D platform to accelerate technology commercialization - The Group is committed to enhancing its core technological strength, consolidating its leading position in proprietary technologies such as liquid-cooled motor systems, while planning to further strengthen its digital battery management system by improving thermal management and low-temperature performance[55](index=55&type=chunk) - To accelerate technology commercialization, the Group has established a unified R&D platform to standardize modular design protocols and streamline development processes[55](index=55&type=chunk) [Strategic Intelligent Manufacturing Transformation](index=24&type=section&id=4.2.2.2%20Strategic%20Intelligent%20Manufacturing%20Transformation) The Group plans a strategic intelligent manufacturing transformation, including implementing automation, industrial internet connectivity, introducing digital twin technology and artificial intelligence, developing standardized and modular component systems, and building demonstration intelligent factories, aiming for national recognition by 2026 to significantly improve quality consistency and reduce production costs - The Group is planning a strategic intelligent manufacturing transformation, including implementing automation and industrial internet connectivity, and introducing digital twin technology and artificial intelligence into the manufacturing process[56](index=56&type=chunk) - The Group expects that once this transformation is implemented, it will significantly improve quality consistency while reducing production costs, providing investors with a clear technology roadmap[56](index=56&type=chunk) [Actively Cultivate Market Demand](index=24&type=section&id=4.2.2.3%20Actively%20Cultivate%20Market%20Demand) The Group will consolidate its position in the mainstream mass market by enhancing product durability and explore overseas opportunities with a smart, fashionable, and low-carbon brand image, targeting international high-end markets. The global electric-assist bicycle market value is projected to grow from USD 35 billion in 2024 to USD 62 billion in 2030, with a CAGR of nearly 10% - The Group will continue to consolidate its position in the mainstream mass market by enhancing product durability and other competitive advantages[57](index=57&type=chunk) - The Group will strategically explore overseas opportunities with a smart, fashionable, and low-carbon brand image, targeting international high-end markets, with global sustainable development as its goal[57](index=57&type=chunk) - The electric-assist bicycle market value is projected to grow from **USD 35 billion** in 2024 to **USD 62 billion** in 2030, with a compound annual growth rate of nearly **10%**[57](index=57&type=chunk) [LYVA Brand Development](index=25&type=section&id=4.2.3%20LYVA%20Brand%20Development) The Group foresees significant growth opportunities in the high-end electric-assist bicycle market, successfully launching the "LYVA" brand and opening its first self-operated store by Hangzhou West Lake. LYVA brand electric-assist bicycles integrate advanced sensing technology and AI algorithms to provide personalized power assistance, enhancing brand influence through global events, academic collaborations, flagship experience stores, and carbon reduction awareness activities - The Group foresees significant growth opportunities in the high-end electric-assist bicycle segment, successfully launching the "LYVA" brand and opening its first self-operated store by the renowned cultural landmark, Hangzhou West Lake[58](index=58&type=chunk) - LYVA brand electric-assist bicycles integrate sensing technologies, including torque, speed, acceleration, resistance, gradient, and heart rate monitoring systems, combined with artificial intelligence algorithms to provide personalized power assistance[59](index=59&type=chunk) - The LYVA brand continuously showcases advanced AI riding algorithms and mid-drive motor systems in global events, and collaborates with top universities to develop personalized "exercise prescriptions"[60](index=60&type=chunk) [Ecosystem Services Expansion](index=26&type=section&id=4.2.4%20Ecosystem%20Services%20Expansion) The Group is actively developing three complementary business lines: battery swapping services (strategic investment in a startup to expand the network), multi-functional rental services (for scenic areas, campus commuting, and urban transport, integrated with platforms like Meituan), and after-sales services (retrofitting existing vehicles with smart devices to comply with new national standards). These services create multiple revenue streams beyond traditional sales and address consumer pain points - The Group has made a strategic investment in a startup that has received policy support from local governments (especially in Shenzhen) to expand its battery swapping network[61](index=61&type=chunk) - The second business line focuses on rental services customized for scenic areas, campus commuting, and urban transport, integrated with platforms like Meituan for convenient customer acquisition[61](index=61&type=chunk) - The third business line includes after-sales services, providing smart device retrofits for existing vehicles to comply with new national standards, addressing the market demand of approximately **400 million electric vehicles** currently on the market[61](index=61&type=chunk) [Management Discussion and Analysis of Financial Performance](index=27&type=section&id=V.%20Management%20Discussion%20and%20Analysis%20of%20Financial%20Performance) This section provides management's discussion and analysis of the company's financial performance during the reporting period [Revenue](index=27&type=section&id=5.1%20Revenue) For the six months ended June 30, 2025, the Group's revenue was RMB 3,095.7 million, a year-on-year increase of 22.2%, primarily driven by technology-driven product upgrades, new retail model innovations, improved single-store efficiency, and expansion of store count. Revenue from electric bicycles and battery sales grew significantly | Product Category | 2025 (RMB thousand) | Share (%) | 2024 (RMB thousand) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Electric bicycles | 1,996,788 | 64.5 | 1,545,677 | 61.0 | | Electric scooters | 354,128 | 11.4 | 345,017 | 13.6 | | Batteries | 596,523 | 19.3 | 512,052 | 20.2 | | Electric two-wheeler components | 106,815 | 3.5 | 103,955 | 4.1 | | Other products | 23,537 | 0.8 | 5,838 | 0.2 | | **Subtotal Product Sales** | **3,077,791** | **99.4** | **2,512,539** | **99.2** | | Subtotal Service Types | 17,878 | 0.6 | 21,365 | 0.8 | | **Total** | **3,095,669** | **100.0** | **2,533,904** | **100.0** | - Revenue from electric bicycle sales increased by approximately **29.2%** to **RMB 1,996.8 million**, primarily due to product upgrades under widely integrated smart systems greatly satisfying consumer demand and continuously increasing market share in the commercial market[65](index=65&type=chunk) - Revenue from battery sales increased by approximately **16.5%** to **RMB 596.5 million**, primarily due to product upgrades under widely integrated smart systems greatly satisfying consumer demand and continuously increasing market share in the commercial market[65](index=65&type=chunk) [Cost of Sales](index=28&type=section&id=5.2%20Cost%20of%20Sales) For the six months ended June 30, 2025, cost of sales was RMB 2,675.9 million, a year-on-year increase of 19.9%, consistent with the revenue growth trend | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Cost of sales | 2,675.9 | 2,231.0 | 19.9% | [Gross Profit and Gross Profit Margin](index=28&type=section&id=5.3%20Gross%20Profit%20and%20Gross%20Profit%20Margin) For the six months ended June 30, 2025, gross profit was RMB 419.7 million, a year-on-year increase of 38.5%. Gross profit margin improved from 12.0% to 13.6%, an increase of 1.6 percentage points | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Gross profit | 419.7 | 302.9 | 38.5% | | Gross profit margin | 13.6% | 12.0% | 1.6 percentage points | [Selling and Marketing Expenses](index=28&type=section&id=5.4%20Selling%20and%20Marketing%20Expenses) For the six months ended June 30, 2025, selling and marketing expenses were RMB 182.0 million, a year-on-year increase of 20.7%, primarily due to expanded brand building activities, upgraded new retail systems, and increased share-based payments | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Selling and marketing expenses | 182.0 | 150.8 | 20.7% | - The increase in selling and marketing expenses was primarily attributable to expanded brand building activities targeting specific groups, including cross-media cooperation projects, which enhanced the effectiveness of social media operations, upgrades to new retail systems, and increased share-based payments[69](index=69&type=chunk) [Administrative Expenses](index=29&type=section&id=5.5%20Administrative%20Expenses) For the six months ended June 30, 2025, administrative expenses were RMB 56.6 million, a year-on-year increase of 8.2%, primarily due to increased year-end bonuses paid to employees | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 56.6 | 52.3 | 8.2% | - The increase in administrative expenses was primarily attributable to increased year-end bonuses paid to the Group's employees[70](index=70&type=chunk) [Research and Development Costs](index=29&type=section&id=5.6%20Research%20and%20Development%20Costs) For the six months ended June 30, 2025, research and development costs were RMB 104.2 million, a year-on-year increase of 13.3%, primarily due to increased investment in new product development | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Research and development costs | 104.2 | 92.0 | 13.3% | - The increase in research and development costs was primarily due to increased investment in new product development[71](index=71&type=chunk) [Reversal of / (Provision for) Impairment Losses on Financial Assets](index=29&type=section&id=5.7%20Reversal%20of%20%2F%20%28Provision%20for%29%20Impairment%20Losses%20on%20Financial%20Assets) During the reporting period, the Group recognized a reversal of impairment losses on financial assets of RMB 5.1 million, compared to an impairment provision of RMB 0.5 million in the prior period, primarily due to the recovery of historical bad debts | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Reversal of / (Provision for) impairment losses on financial assets | 5.1 | (0.5) | - The reversal of impairment losses on financial assets was primarily attributable to the recovery of historical bad debts[72](index=72&type=chunk) [Other Income](index=29&type=section&id=5.8%20Other%20Income) For the six months ended June 30, 2025, other income was RMB 37.2 million, remaining relatively stable compared to RMB 38.1 million in the prior period | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Other income | 37.2 | 38.1 | [Other Expenses](index=29&type=section&id=5.9%20Other%20Expenses) For the six months ended June 30, 2025, other expenses were RMB 3.6 million, a year-on-year decrease of 24.6%, primarily due to reduced electricity and depreciation expenses resulting from a decrease in the scale of leased assets | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year decrease (%) | | :--- | :--- | :--- | :--- | | Other expenses | 3.6 | 4.8 | 24.6% | - The decrease in other expenses was primarily attributable to a decrease in the scale of the Group's leased assets, leading to reduced electricity and depreciation expenses[74](index=74&type=chunk) [Other Gains – Net](index=29&type=section&id=5.10%20Other%20Gains%20–%20Net) For the six months ended June 30, 2025, other gains – net was RMB 2.7 million, a year-on-year decrease of 80.6%, primarily due to reduced fair value changes of financial assets at fair value through profit or loss from decreased investments in large-denomination certificates of deposit and lower exchange gains | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year decrease (%) | | :--- | :--- | :--- | :--- | | Other gains – net | 2.7 | 13.7 | 80.6% | - The decrease in other gains – net was primarily due to a decrease in the Group's investments in large-denomination certificates of deposit, leading to reduced fair value changes of financial assets at fair value through profit or loss during the period; and a decrease in the Group's exchange gains[75](index=75&type=chunk) [Finance Income – Net](index=30&type=section&id=5.11%20Finance%20Income%20–%20Net) For the six months ended June 30, 2025, net finance income was RMB 0.3 million, a year-on-year decrease of 97.5%, primarily due to reduced interest income from bank deposits after utilizing the proceeds from the global offering | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year decrease (%) | | :--- | :--- | :--- | :--- | | Net finance income | 0.3 | 12.5 | 97.5% | - The decrease in net finance income was primarily due to reduced interest income from bank deposits after utilizing the proceeds from the global offering[76](index=76&type=chunk) [Income Tax Expense](index=30&type=section&id=5.12%20Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was RMB 7.1 million, a significant year-on-year increase of 892.7%, consistent with the Group's profit growth for the period | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Income tax expense | 7.1 | 0.7 | 892.7% | - The increase in income tax expense was consistent with the Group's profit growth for the period[77](index=77&type=chunk) [Profit for the Period](index=30&type=section&id=5.13%20Profit%20for%20the%20Period) For the six months ended June 30, 2025, profit for the period was RMB 110.1 million, a year-on-year increase of 66.9%, primarily due to the combined effect of the aforementioned factors | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 110.1 | 66.0 | 66.9% | [Management Discussion and Analysis of Financial Position](index=30&type=section&id=VI.%20Management%20Discussion%20and%20Analysis%20of%20Financial%20Position) This section provides management's discussion and analysis of the company's financial position during the reporting period [Inventories](index=30&type=section&id=6.1%20Inventories) As of June 30, 2025, the Group's inventories were RMB 304.6 million, remaining relatively stable compared to RMB 303.1 million as of December 31, 2024 | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Inventories | 304.6 | 303.1 | [Trade Receivables](index=30&type=section&id=6.2%20Trade%20Receivables) As of June 30, 2025, the Group's trade receivables were RMB 396.7 million, an increase of 26.9% from RMB 312.7 million as of December 31, 2024, primarily due to increased credit sales to corporate and institutional customers | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 396.7 | 312.7 | 26.9% | - The increase in trade receivables was primarily due to increased credit sales resulting from synchronized orders from corporate and institutional customers[80](index=80&type=chunk) [Other Receivables and Prepayments](index=30&type=section&id=6.3%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, the Group's other receivables and prepayments were RMB 473.7 million, an increase of 14.0% from RMB 415.3 million as of December 31, 2024, primarily due to increased prepayments for raw materials for strategic reserves | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Other receivables and prepayments | 473.7 | 415.3 | 14.0% | - The increase in other receivables and prepayments was primarily due to increased prepayments for raw materials for strategic reserves[81](index=81&type=chunk) [Property, Plant and Equipment](index=31&type=section&id=6.4%20Property,%20Plant%20and%20Equipment) As of June 30, 2025, the Group's property, plant and equipment amounted to RMB 1,273.5 million, an increase of 1.4% from RMB 1,255.3 million as of December 31, 2024, primarily due to increased machinery and equipment at new production bases | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Property, plant and equipment | 1,273.5 | 1,255.3 | 1.4% | - The increase in property, plant and equipment was primarily due to increased machinery and equipment at new production bases[83](index=83&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=31&type=section&id=6.5%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, the Group's financial assets at fair value through profit or loss amounted to RMB 692.3 million, an increase of 40.8% from RMB 491.7 million as of December 31, 2024, primarily attributable to an increase in large-denomination certificates of deposit | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | 692.3 | 491.7 | 40.8% | - The increase in financial assets at fair value through profit or loss was primarily attributable to an increase in large-denomination certificates of deposit[84](index=84&type=chunk) [Trade Payables](index=31&type=section&id=6.6%20Trade%20Payables) As of June 30, 2025, the Group's trade payables amounted to RMB 901.1 million, an increase of 86.5% from RMB 483.3 million as of December 31, 2024, primarily due to increased procurement volume in line with sales growth | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Trade payables | 901.1 | 483.3 | 86.5% | - The increase in trade payables was primarily due to increased procurement volume as sales grew[85](index=85&type=chunk) [Capital Structure and Liquidity](index=31&type=section&id=VII.%20Capital%20Structure%20and%20Liquidity) This section discusses the company's capital structure, liquidity, and financial resources [Capital Structure](index=31&type=section&id=7.1%20Capital%20Structure) As of June 30, 2025, the Group's total assets were RMB 5,384.0 million, and total liabilities were RMB 3,803.9 million. The total debt-to-asset ratio increased from 65.4% to 70.7%, and the current ratio increased from 1.06 times to 1.09 times | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 5,384.0 | 4,324.3 | 24.5% | | Total liabilities | 3,803.9 | 2,826.6 | 34.6% | | Total debt-to-asset ratio | 70.7% | 65.4% | 5.3 percentage points | | Current ratio | 1.09 times | 1.06 times | 0.03 times | [Liquidity, Financial Resources and Gearing Ratio](index=32&type=section&id=7.2%20Liquidity,%20Financial%20Resources%20and%20Gearing%20Ratio) The Group adopts a stable and prudent funding and treasury policy. As of June 30, 2025, cash and cash equivalents increased to RMB 1,060.2 million, a year-on-year increase of 91.2%, primarily due to increased net cash flow from operating activities driven by sales growth. The gearing ratio increased to 81.5%, primarily due to the need to establish new production bases and increased bank loans | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 1,060.2 | 554.5 | 91.2% | | Interest-bearing bank and other borrowings | 1,261.9 | 1,002.3 | 25.9% | | Gearing ratio | 81.5% | 68.1% | 13.4 percentage points | - The increase in cash and cash equivalents was primarily attributable to increased net cash flow from operating activities driven by sales growth during the reporting period[88](index=88&type=chunk) - The increase in gearing ratio was primarily due to the need to establish new production bases and increased bank loans[88](index=88&type=chunk) - As of June 30, 2025, the Group's total bank facilities amounted to **RMB 3,736.0 million**, of which **RMB 2,485.9 million** had been utilized[90](index=90&type=chunk) [Capital Expenditure](index=33&type=section&id=7.3%20Capital%20Expenditure) For the six months ended June 30, 2025, capital expenditure was RMB 150.3 million, a year-on-year increase of 7.6%, primarily used for expanding production capacity, including constructing additional production facilities and upgrading existing machinery and equipment | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-year growth (%) | | :--- | :--- | :--- | :--- | | Capital expenditure | 150.3 | 139.6 | 7.6% | - The Group's capital expenditure was primarily used for expanding its production capacity, including constructing additional production facilities and upgrading existing machinery and equipment[91](index=91&type=chunk) [Foreign Exchange Risk and Hedging](index=33&type=section&id=7.4%20Foreign%20Exchange%20Risk%20and%20Hedging) The Group primarily operates in China, with most transactions settled in RMB, and faces foreign exchange risks mainly involving USD and HKD. As of the date of this announcement, the Group has not hedged its foreign exchange risk but closely monitors it and may enter into forward currency contracts if necessary to manage the risk - The Group operates its business in China, with most transactions settled in RMB. The Group's foreign exchange risk primarily involves USD and HKD[92](index=92&type=chunk) - As of the date of this announcement, the Group has not hedged its foreign exchange risk but closely manages it through regular reviews of its net foreign exchange exposure and may enter into forward currency contracts (if necessary) to manage its foreign exchange risk[92](index=92&type=chunk) [Human Resources and Share Incentive Schemes](index=33&type=section&id=VIII.%20Human%20Resources%20and%20Share%20Incentive%20Schemes) This section provides information on the company's human resources and share incentive schemes [Human Resources](index=33&type=section&id=8.1%20Human%20Resources) As of June 30, 2025, the Group had 2,986 employees. Total staff costs were RMB 273.8 million, a year-on-year increase of 11.7%, primarily due to increased share-based payments and business growth. The company provides diversified training and offers remuneration and rewards based on performance | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of employees | 2,986 | - | | Total staff costs (RMB million) | 273.8 | 245.1 | | Year-on-year growth (%) | 11.7% | - | - The increase in total staff costs was primarily due to increased share-based payments and the impact of business growth[93](index=93&type=chunk) - The Group regularly provides training for various operational functions, including new employee onboarding, technical training, product training, management training, and work safety training[94](index=94&type=chunk) [Pre-IPO Share Scheme](index=34&type=section&id=8.2%20Pre-IPO%20Share%20Scheme) The company adopted the Pre-IPO Share Scheme on July 20, 2023, to attract, incentivize, and retain eligible employees. As of June 30, 2025, share options corresponding to a total of 16,736,000 underlying shares had been granted to 108 eligible participants, of which 15,073,035 remained unexercised. No share options were granted under this scheme during the reporting period - The company adopted the Pre-IPO Share Scheme on July 20, 2023, to attract, reward, incentivize, retain, compensate, and/or provide benefits to eligible employees[95](index=95&type=chunk) - As of June 30, 2025, share options corresponding to a total of **16,736,000 underlying shares** had been granted to **108 eligible participants**, of which **15,073,035** remained unexercised[96](index=96&type=chunk)[98](index=98&type=chunk) - No share options were granted under the Pre-IPO Share Scheme during the reporting period, as no further share options will be granted after October 12, 2023 (the Listing Date)[100](index=100&type=chunk) [Post-IPO Share Scheme](index=37&type=section&id=8.3%20Post-IPO%20Share%20Scheme) The company conditionally adopted the Post-IPO Share Scheme on August 21, 2023. As of June 30, 2025, 8,316,500 Post-IPO Share Awards had been granted to 158 eligible participants, of which 8,291,000 remained unvested. No share options were granted under this scheme during the reporting period, and all awards are paid from existing shares held by the trustee - The company conditionally adopted the Post-IPO Share Scheme on August 21, 2023[95](index=95&type=chunk) - As of June 30, 2025, **8,316,500 Post-IPO Share Awards** had been granted to **158 eligible participants**, of which **8,291,000** remained unvested[97](index=97&type=chunk)[102](index=102&type=chunk) - All Post-IPO Awards granted under the Post-IPO Share Scheme during the reporting period have been/will be paid from existing shares held by the trustee[108](index=108&type=chunk) [Other Significant Matters](index=39&type=section&id=IX.%20Other%20Significant%20Matters) This section covers other important matters not discussed elsewhere in the report [Contingent Liabilities](index=39&type=section&id=9.1%20Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[110](index=110&type=chunk) [Pledge of Assets](index=40&type=section&id=9.2%20Pledge%20of%20Assets) As of June 30, 2025, the Group had pledged property, plant and equipment and right-of-use assets with net book values of RMB 383.6 million and RMB 46.1 million, respectively, as collateral for borrowings. Additionally, RMB 635.0 million in certificates of deposit were pledged as security for bills payable, and 100% equity interest in Guangxi Luyuan Electric Vehicle Co., Ltd. and certain patents were pledged for bank borrowings - As of June 30, 2025, the Group had pledged property, plant and equipment and right-of-use assets with net book values of **RMB 383.6 million** and **RMB 46.1 million**, respectively, as collateral for the Group's borrowings[111](index=111&type=chunk) - As of June 30, 2025, the Group had pledged certificates of deposit of **RMB 635.0 million** (December 31, 2024: RMB 467.1 million) as security for the Group's bills payable[111](index=111&type=chunk) - As of June 30, 2025, the Group had pledged 100% equity interest in Guangxi Luyuan Electric Vehicle Co., Ltd., a wholly-owned subsidiary of the Company, and certain patents of the Group as collateral for the Group's bank borrowings[111](index=111&type=chunk) [Material Investments, Acquisitions and Disposals](index=40&type=section&id=9.3%20Material%20Investments,%20Acquisitions%20and%20Disposals) As of June 30, 2025, the Group held no material investments and did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period. The Board has also not authorized specific plans for other material investments or acquisitions of capital assets - As of June 30, 2025, the Group held no material investments[113](index=113&type=chunk) - The Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[113](index=113&type=chunk) [Use of Proceeds](index=40&type=section&id=9.4%20Use%20of%20Proceeds) The net proceeds from the company's global offering were approximately HKD 706.4 million. The Board resolved to reallocate a portion of the unutilized net proceeds to acquire land use rights and construct production infrastructure for a new production facility (Chongqing factory) in Southwest China, to address market uncertainties and enhance production capacity. As of June 30, 2025, most of the net proceeds had been utilized, with the remaining HKD 16.7 million expected to be fully utilized by the end of 2025 - The net proceeds from the global offering, after deducting related expenses, were approximately **HKD 706.4 million**[114](index=114&type=chunk) - The Board resolved to reallocate **HKD 42.0 million** of the unutilized net proceeds originally intended for the Shandong plant capacity expansion plan to acquire land use rights and construct production infrastructure for a new production facility (Chongqing factory) in Southwest China[115](index=115&type=chunk) | Intended Use | Net Proceeds from IPO (HKD million) | Utilized as of June 30, 2025 (HKD million) | Unutilized as of June 30, 2025 (HKD million) | Timeline for Utilization of Unutilized Balance | | :--- | :--- | :--- | :--- | :--- | | Enhance R&D capabilities | 211.9 | 197.6 | 14.3 | End of 2025 | | Strengthen sales and distribution channels | 211.9 | 209.5 | 2.5 | End of 2025 | | Enhance production capacity | 211.9 | 211.9 | – | End of June 2025 | | Working capital and other general corporate purposes | 70.6 | 70.6 | – | – | | **Total** | **706.4** | **689.7** | **16.7** | **End of 2025** | [Purchase, Sale or Redemption of the Company’s Listed Securities](index=44&type=section&id=9.5%20Purchase,%20Sale%20or%20Redemption%20of%20the%20Company%E2%80%99s%20Listed%20Securities) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed

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