Group 1 - The core viewpoint of the article is that Xixiangfeng Group (02473) reported a significant increase in both revenue and profit for the six months ending June 30, 2025, indicating strong business performance [1] - The company's revenue reached 769 million yuan, representing a year-on-year increase of 16.78% [1] - Shareholders' profit attributable to the company was 22.486 million yuan, which is a 14.23% increase compared to the previous year [1] - The basic earnings per share were reported at 1.45 cents [1] Group 2 - The increase in revenue is attributed to two main factors: a high year-on-year growth in the automotive direct retail business and the expansion of the self-operated sales network [1] - The company has strengthened its sales capabilities, contributing to the increase in sales performance [1]

Financial Summary [Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section provides key financial data for the first half of 2025, highlighting revenue, gross profit, profit before income tax, and profit for the period 2025 H1 Key Financial Data | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 769,151 | 658,651 | 16.8% | | Gross Profit | 230,874 | 209,260 | 10.3% | | Profit Before Income Tax | 27,920 | 27,064 | 3.2% | | Profit for the Period | 22,570 | 19,479 | 15.9% | Management Discussion and Analysis [Introduction](index=2&type=section&id=%E7%B7%92%E8%A8%80) Xixiangfeng Group is a renowned automotive retailer primarily offering auto finance leasing services in China, encompassing auto retail and financing, auto-related businesses, and direct auto retail - The company's main businesses include: (i) auto retail and financing (selling most non-luxury cars through direct finance leases); (ii) auto-related businesses (primarily providing auto operating lease services and other auto-related services); and (iii) direct auto retail (selling cars through one-time sales)[5](index=5&type=chunk) [Macroeconomic and Industry Analysis](index=2&type=section&id=%E5%AE%8F%E8%A7%80%E7%B6%93%E6%BF%9F%E8%88%87%E8%A1%8C%E6%A5%AD%E5%88%86%E6%9E%90) In H1 2025, global economic growth slowed, while China's economy maintained stable growth at **5.3%** GDP year-on-year under counter-cyclical adjustments, with the automotive market experiencing high growth driven by new energy vehicles and accelerating compliance in the ride-hailing sector, supported by various government policies [Macroeconomic Environment](index=2&type=section&id=%E5%AE%8F%E8%A7%80%E7%B6%93%E6%BF%9F%E7%92%B0%E5%A2%83) Global economic growth continued to slow in the first half of 2025, with the World Bank lowering its global GDP growth forecast to **2.3%** - Global economic growth continued to slow in the first half of 2025, with the World Bank lowering its global GDP growth forecast to **2.3%**[6](index=6&type=chunk) - China's economy operated steadily overall, with GDP reaching **RMB 66.05 trillion** in H1 2025, a year-on-year increase of **5.3%**[6](index=6&type=chunk) - The tertiary industry's value added grew by **5.5%**, contributing **59.1%** to economic growth; industrial value added above designated size increased by **6.4%** year-on-year[6](index=6&type=chunk) [China's Automotive Market](index=2&type=section&id=%E4%B8%AD%E5%9C%8B%E6%B1%BD%E8%BB%8A%E5%B8%82%E5%A0%B4) China's automotive market saw significant increases in passenger car production, sales, and exports in H1 2025, particularly in new energy vehicles, while the ride-hailing industry accelerated its compliance process 2025 H1 China Passenger Car Production, Sales, and Export Data | Indicator | H1 2025 (ten thousand units) | Year-on-Year Growth | | :--- | :--- | :--- | | Passenger Car Production | 1,352.2 | 13.8% | | Passenger Car Sales | 1,353.1 | 13.0% | | Domestic Passenger Car Sales | 1,095 | 13.6% | | Passenger Car Exports | 258.1 | 10.3% | | New Energy Passenger Car Exports | 101.1 | 71.3% | - The ride-hailing industry's compliance process accelerated, with over **20 provinces** intensively introducing new policies to promote its transformation towards standardization and transparency[8](index=8&type=chunk) [Policy Support](index=3&type=section&id=%E6%94%BF%E7%AD%96%E6%94%AF%E6%8C%81) The government introduced multiple policies in H1 2025 to support automotive consumption and the financial market, including online export permit applications, "trade-in" subsidies, targeted reserve requirement ratio cuts, and relaxed new energy vehicle loan limits - In January 2025, the Ministry of Commerce launched online application for auto export permits, improving efficiency for enterprises[9](index=9&type=chunk) - In January 2025, the National Development and Reform Commission and the Ministry of Finance issued "trade-in" subsidy policies, expanding the scope of scrapped vehicle models and adjusting subsidy standards, effectively stimulating consumer car purchase demand[9](index=9&type=chunk) - In May 2025, the People's Bank of China implemented a targeted reserve requirement ratio cut of **5 percentage points**, releasing approximately **RMB 1.2 trillion** in long-term funds and activating the auto finance leasing market[9](index=9&type=chunk) - In June 2025, the central bank and six other departments removed the **85%** cap on new energy vehicle loans and simultaneously relaxed loan ratios for fuel vehicles, providing more flexible business space for the auto finance industry[10](index=10&type=chunk) [Business Strategy and Operational Performance](index=4&type=section&id=%E6%A5%AD%E5%8B%99%E7%AD%96%E7%95%A5%E8%88%87%E7%87%9F%E9%81%8B%E8%A1%A8%E7%8F%BE) In H1 2025, Xixiangfeng Group implemented three core strategies: deepening channel penetration, expanding global markets, and digital transformation, driving a **16.8%** year-on-year increase in operating revenue to **RMB 769.2 million** and a **15.9%** increase in profit for the period to **RMB 22.6 million** [Deepening Channel Penetration Strategy and Service Upgrades](index=4&type=section&id=%E6%B7%B1%E5%8C%96%E6%B8%A0%E9%81%93%E4%B8%8B%E6%B2%89%E6%88%B0%E7%95%A5%E5%8F%8A%E6%9C%8D%E5%8B%99%E5%8D%87%E7%B4%9A) The group expanded its self-operated sales network and deepened strategic cooperation to enhance service accessibility and quality - The self-operated sales network expanded from **89 branches** as of December 31, 2024, to **110 branches** as of June 30, 2025, with **19 new self-operated ride-hailing service outlets** in East and South China[11](index=11&type=chunk) - Strategic cooperation with Tuhu Car Care deepened, with over **7,000 cooperative service outlets** providing more convenient and high-quality one-stop car maintenance experiences[11](index=11&type=chunk) 2025 H1 Main Business Revenue and Growth | Business Segment | H1 2025 Revenue (RMB millions) | Year-on-Year Growth | | :--- | :--- | :--- | | Auto Retail and Financing | 606.6 | 7.2% | | Auto-Related Businesses | 103.6 | 16.6% | | Auto Operating Lease (including ride-hailing) | 96.6 | 19.4% | [Expanding Global Market Presence](index=5&type=section&id=%E6%8B%93%E5%B1%95%E5%85%A8%E7%90%83%E5%B8%82%E5%A0%B4%E4%BD%88%E5%B1%80) The group enhanced its international service capacity and established its first overseas direct operation system, expanding its export business across multiple regions - In May 2025, the wholly-owned subsidiary Horgos subsidiary was upgraded, enhancing service capacity and quality for the Central Asian market[13](index=13&type=chunk) - In May 2025, a wholly-owned subsidiary was established in Tashkent, Uzbekistan, successfully executing **48 vehicle purchases** and serving over **300 customers**, marking the establishment of its first overseas direct operation system[14](index=14&type=chunk) - During the reporting period, export revenue reached **RMB 38.0 million**, with business covering Southeast Asia, the Middle East, Central Asia, Africa, and South America[13](index=13&type=chunk) [Digital and Intelligent Transformation](index=5&type=section&id=%E6%95%B8%E5%AD%97%E5%8C%96%E8%88%87%E6%99%BA%E8%83%BD%E5%8C%96%E8%BD%89%E5%9E%8B) The group built AI and big data platforms, expanding digital employee deployment and applying AI models to enhance operational efficiency and risk management - Built an Artificial Intelligence (AI) mid-platform and big data platform, expanding the digital employee workforce to **139 individuals**, covering **39 key positions**[15](index=15&type=chunk) - Deepened the application of large AI models in scenarios such as risk control and customer service, achieving an artificial replacement rate of over **60%**, enhancing operational efficiency and asset security management levels[15](index=15&type=chunk) - Partnered with Baiwang Co., Ltd. to build a smart tax platform, realizing intelligent full-process invoicing and certification, comprehensively upgrading efficiency and risk control[15](index=15&type=chunk) [Future Outlook](index=6&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) Looking ahead to H2 2025, the group will continue to deepen its presence in domestic lower-tier markets, seize opportunities in auto exports for accelerated global expansion, continuously improve business efficiency and customer experience through intelligent algorithms, and actively explore the low-altitude economy sector - For domestic business, the group will further combine market demand, continue to deeply cultivate customer needs in lower-tier markets, and promote sustained and stable growth of domestic business[16](index=16&type=chunk) - For overseas business expansion, the group will continue to seize opportunities in auto exports, accelerate the layout and construction of other comprehensive service networks abroad, and accelerate global expansion[16](index=16&type=chunk) - In terms of technology empowerment, the group will continue to simplify business processes through intelligent algorithms, expand the deployment of "digital employees," and achieve intelligent upgrades in sales, risk control, and other processes to reduce operating costs[16](index=16&type=chunk) - For innovative businesses, the group has established a wholly-owned subsidiary related to the low-altitude economy and obtained the "Civil Unmanned Aircraft Operator Certificate," and will actively explore businesses in the low-altitude economy sector in the future[16](index=16&type=chunk) Non-IFRS Measures [Non-IFRS Measures](index=6&type=section&id=%E9%9D%9E%E5%9C%8B%E9%9A%9B%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E8%A8%88%E9%87%8F%E6%96%B9%E6%B3%95) The company uses unaudited adjusted net profit (a non-IFRS measure) as an additional financial metric to eliminate the potential impact of items management deems non-indicative of operating performance, such as share option expenses - The company uses unaudited adjusted net profit (a non-IFRS measure) as an additional financial metric to eliminate the potential impact of items management deems non-indicative of operating performance (such as share option expenses)[17](index=17&type=chunk) Adjusted Net Profit Reconciliation | Indicator | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 22,570 | 19,479 | | Add: Share Option Expenses | 1,756 | 4,395 | | Adjusted Net Profit (Non-IFRS Measure) | 24,326 | 23,874 | - During the reporting period, the Group's adjusted net profit was **RMB 24.3 million**, an increase of **1.9%** compared to **RMB 23.9 million** in the same period last year, primarily due to increased sales revenue[19](index=19&type=chunk) Financial Performance Review [Revenue Analysis](index=8&type=section&id=%E6%94%B6%E7%9B%8A%E5%88%86%E6%9E%90) Total revenue for H1 2025 increased by **16.8%** year-on-year to **RMB 769.2 million**, primarily driven by significant growth in direct auto retail business and sales network expansion, with auto retail and financing revenue growing **7.2%** and auto-related business revenue growing **16.6%**, including a **19.4%** increase in auto operating lease revenue [Total Revenue](index=8&type=section&id=%E7%B8%BD%E6%94%B6%E7%9B%8A) Total revenue increased by **16.8%** year-on-year to **RMB 769.2 million**, mainly due to higher growth in direct auto retail business and expansion of the self-operated sales network Revenue Composition and Year-on-Year Change | Revenue Category | Six Months Ended June 30, 2025 (RMB thousands) | Share | Six Months Ended June 30, 2024 (RMB thousands) | Share | | :--- | :--- | :--- | :--- | :--- | | Auto Retail and Financing | 606,571 | 78.9% | 565,608 | 85.9% | | Auto-Related Businesses | 103,604 | 13.5% | 88,885 | 13.5% | | Direct Auto Retail Business | 58,976 | 7.6% | 4,158 | 0.6% | | Total | 769,151 | 100.0% | 658,651 | 100.0% | - Total revenue increased by **16.8%** year-on-year to **RMB 769.2 million**, primarily due to higher year-on-year growth in direct auto retail business and expansion of the self-operated sales network[20](index=20&type=chunk) - As of June 30, 2025, the Group's number of self-operated sales outlets was **110**[21](index=21&type=chunk) [Auto Retail and Financing Business](index=9&type=section&id=%E6%B1%BD%E8%BB%8A%E9%9B%B6%E5%94%AE%E5%8F%8A%E8%9E%8D%E8%B3%87%E6%A5%AD%E5%8B%99) Revenue from auto retail and financing business increased by **7.2%** to **RMB 606.6 million**, driven by higher car sales, while average effective interest rates and return rates on finance lease receivables slightly decreased due to lower financing costs - Revenue from auto retail and financing business increased by **7.2%** year-on-year to **RMB 606.6 million**, primarily due to increased car sales[22](index=22&type=chunk) Auto Retail and Financing Business Operational Data | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Year Ended December 31, 2024 | | :--- | :--- | :--- | :--- | | Average Principal of New Finance Lease Agreements (RMB thousands) | 84.8 | 89.4 | 88.3 | | Average Effective Interest Rate on New Finance Lease Agreements | 17.5% | 18.7% | 17.4% | | Average Return Rate on Finance Lease Receivables | 17.3% | 18.6% | 17.2% | - The average effective interest rate on new finance lease agreements and the average return rate on finance lease receivables slightly decreased, mainly due to lower new financing costs and corresponding product pricing adjustments[24](index=24&type=chunk) - Revenue in East China, South China, Northwest China, and Northeast China all slightly increased compared to the same period last year, primarily due to strengthened sales network construction in the respective regions[27](index=27&type=chunk) [Auto-Related Businesses](index=10&type=section&id=%E6%B1%BD%E8%BB%8A%E7%9B%B8%E9%97%9C%E6%A5%AD%E5%8B%99) Revenue from auto-related businesses increased by **16.6%** to **RMB 103.6 million**, mainly driven by higher auto operating lease revenue - Revenue from auto-related businesses increased by **16.6%** year-on-year to **RMB 103.6 million**, primarily due to increased auto operating lease revenue[28](index=28&type=chunk) [Direct Auto Retail Business](index=10&type=section&id=%E6%B1%BD%E8%BB%8A%E7%9B%B4%E6%8E%A5%E9%9B%B6%E5%94%AE%E6%A5%AD%E5%8B%99) Direct auto retail business revenue significantly increased from **RMB 4.2 million** to **RMB 59.0 million**, mainly due to the gradual maturity of the business model and increased sales volume - Direct auto retail business revenue significantly increased from **RMB 4.2 million** to **RMB 59.0 million**, primarily due to the gradual maturity of the business model and increased sales volume[29](index=29&type=chunk) [Costs and Gross Profit](index=10&type=section&id=%E6%88%90%E6%9C%AC%E8%88%87%E6%AF%9B%E5%88%A9) Cost of sales increased by **19.8%** to **RMB 538.3 million** due to higher sales volume, while gross profit grew **10.3%** to **RMB 230.9 million**, but the overall gross profit margin decreased from **31.8%** to **30.0%** due to the rapid growth of the lower-margin direct auto retail business [Cost of Sales](index=10&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales increased by **19.8%** to **RMB 538.3 million**, primarily due to increased sales volume - Cost of sales increased by **19.8%** year-on-year to **RMB 538.3 million**, primarily due to increased sales volume[30](index=30&type=chunk) [Gross Profit](index=11&type=section&id=%E6%AF%9B%E5%88%A9) Gross profit increased by **10.3%** to **RMB 230.9 million**, mainly driven by the auto retail and financing segment, but the overall gross profit margin slightly decreased to **30.0%** due to the rapid growth of the lower-margin direct auto retail business Gross Profit and Gross Profit Margin by Business Segment | Business Segment | 2025 Gross Profit (RMB thousands) | 2025 Gross Profit Margin | 2024 Gross Profit (RMB thousands) | 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Auto Retail and Financing | 208,697 | 34.4% | 193,085 | 34.1% | | Auto-Related Businesses | 20,429 | 19.7% | 16,083 | 18.1% | | Direct Auto Retail Business | 1,748 | 3.0% | 92 | 2.2% | | Total | 230,874 | 30.0% | 209,260 | 31.8% | - Gross profit increased by **10.3%** year-on-year to **RMB 230.9 million**, primarily due to increased gross profit under auto retail and financing[31](index=31&type=chunk) - The overall gross profit margin slightly decreased from **31.8%** to **30.0%**, mainly due to the faster growth in revenue from the direct auto retail business, which has a lower gross profit margin[32](index=32&type=chunk) [Operating Expenses](index=11&type=section&id=%E7%B6%93%E7%87%9F%E8%B2%BB%E7%94%A8) Selling and marketing expenses increased by **16.0%** to **RMB 57.9 million** due to expanded sales efforts and increased headcount, while administrative expenses rose **8.4%** to **RMB 60.6 million** primarily from higher legal and professional fees, and R&D expenses remained stable [Selling and Marketing Expenses](index=11&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E7%87%9F%E9%8A%B7%E8%B2%BB%E7%94%A8) Selling and marketing expenses increased by **16.0%** to **RMB 57.9 million**, driven by expanded sales efforts, higher employee benefits due to increased headcount, and increased vehicle expenses from higher sales volume and revenue - Selling and marketing expenses increased by **16.0%** year-on-year to **RMB 57.9 million**, primarily due to expanded sales efforts, increased employee benefits expenses from higher headcount, and increased vehicle expenses from higher sales volume and revenue[33](index=33&type=chunk) [Administrative Expenses](index=11&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses increased by **8.4%** year-on-year to **RMB 60.6 million**, mainly due to increased legal and professional expenses - Administrative expenses increased by **8.4%** year-on-year to **RMB 60.6 million**, primarily due to increased legal and professional expenses[34](index=34&type=chunk) [Research and Development Expenses](index=11&type=section&id=%E7%A0%94%E7%99%BC%E9%96%8B%E6%94%AF) Research and development expenses remained stable at **RMB 0.4 million**, similar to the **RMB 0.5 million** in the prior year - Research and development expenses were **RMB 0.4 million**, largely consistent with **RMB 0.5 million** in the same period last year[35](index=35&type=chunk) [Other Income and Losses](index=12&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E8%88%87%E虧%E6%90%8D) Net other income/losses increased by **7.9%** to **RMB 6.4 million**, primarily due to higher gains from asset disposals - Net other income/losses increased by **7.9%** year-on-year to **RMB 6.4 million**, primarily due to increased gains from asset disposals[36](index=36&type=chunk) [Finance Costs](index=12&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Net finance costs increased by **7.7%** to **RMB 86.8 million**, mainly due to the growth in the scale of borrowed financing - Net finance costs increased by **7.7%** year-on-year to **RMB 86.8 million**, primarily due to the growth in the scale of borrowed financing[37](index=37&type=chunk) [Income Tax Expense](index=12&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) Income tax expense decreased to **RMB 5.4 million** from **RMB 7.6 million** in the prior year, mainly because the group qualified for national tax preferential policies, applying a lower corporate income tax rate - Income tax expense was **RMB 5.4 million**, a decrease from **RMB 7.6 million** in the same period last year, primarily because the Group qualified for relevant national tax preferential policies, applying a lower corporate income tax rate[38](index=38&type=chunk) [Profit for the Period](index=12&type=section&id=%E6%9C%9F%E9%96%93%E5%88%A9%E6%BD%A4) Profit for the period increased by **15.9%** to **RMB 22.6 million**, mainly driven by increased sales revenue, with profit attributable to owners of the company growing **14.2%** to **RMB 22.5 million** - Profit for the period increased by **15.9%** year-on-year to **RMB 22.6 million**, primarily due to increased sales revenue[39](index=39&type=chunk) - Profit for the period attributable to owners of the company increased by **14.2%** year-on-year to **RMB 22.5 million**[40](index=40&type=chunk) Balance Sheet Items Analysis [Inventory Management](index=12&type=section&id=%E5%AD%98%E8%B2%A8%E7%AE%A1%E7%90%86) As of June 30, 2025, net inventory decreased by **RMB 19.0 million** to approximately **RMB 153.1 million** compared to December 31, 2024, mainly due to reduced new car procurement for stock, with the group monitoring inventory through IT systems and regular counts - As of June 30, 2025, the Group's net inventory was approximately **RMB 153.1 million**, a decrease of **RMB 19.0 million** from **RMB 172.1 million** as of December 31, 2024, primarily due to reduced new car procurement for stock[41](index=41&type=chunk) - The Group conducts daily checks of actual inventory conditions and monthly counts to ensure accurate inventory records[41](index=41&type=chunk) [Finance Lease Receivables](index=13&type=section&id=%E8%9E%8D%E8%B3%87%E7%A7%9F%E8%B3%83%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, net finance lease receivables slightly increased to **RMB 1,850.8 million**, involving **29,845 contracts**, with overdue rates for over three, six, and twelve months all below **1%**, indicating good collection management, and the impairment provision ratio remaining stable at **0.9%** [Overall Receivables Situation](index=13&type=section&id=%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E7%B8%BD%E9%AB%94%E6%83%85%E6%B3%81) Net finance lease receivables slightly increased to **RMB 1,850.8 million** as of June 30, 2025, involving **29,845 contracts**, with the proportion of net finance lease receivables due within one year remaining at **42.1%** - As of June 30, 2025, net finance lease receivables were **RMB 1,850.8 million**, a slight increase compared to December 31, 2024[43](index=43&type=chunk) - Involving **29,845 contracts**, the proportion of net finance lease receivables due within one year remained at **42.1%**[43](index=43&type=chunk) Net Finance Lease Receivables Term Distribution | Term | Net Amount as of June 30, 2025 (RMB thousands) | Share | Net Amount as of December 31, 2024 (RMB thousands) | Share | | :--- | :--- | :--- | :--- | :--- | | Within 1 year | 778,589 | 42.1% | 767,998 | 42.1% | | 1 to 2 years | 541,425 | 29.3% | 527,552 | 28.9% | | 2 to 5 years | 530,784 | 28.6% | 527,671 | 29.0% | | Total | 1,850,798 | 100.0% | 1,823,221 | 100.0% | [Geographical Segmentation](index=14&type=section&id=%E5%9C%B0%E5%9F%9F%E5%8A%83%E5%88%86) The geographical distribution of net finance lease receivables shows East China as the largest region, with other regions also contributing significantly Net Finance Lease Receivables Geographical Distribution | Customer Location | Net Amount as of June 30, 2025 (RMB thousands) | Share | Net Amount as of December 31, 2024 (RMB thousands) | Share | | :--- | :--- | :--- | :--- | :--- | | East China | 842,738 | 45.5% | 778,979 | 42.7% | | South China | 247,182 | 13.4% | 258,715 | 14.2% | | Southwest China | 184,857 | 10.0% | 194,104 | 10.6% | | Central China | 149,158 | 8.1% | 165,717 | 9.1% | | North China | 183,194 | 9.9% | 187,645 | 10.3% | | Northwest China | 167,900 | 9.1% | 164,885 | 9.0% | | Northeast China | 75,769 | 4.0% | 73,176 | 4.1% | | Total | 1,850,798 | 100.0% | 1,823,221 | 100.0% | [Overdue Status and Impairment Provisions](index=15&type=section&id=%E9%80%BE%E6%9C%9F%E6%83%85%E6%B3%81%E8%88%87%E6%B8%9B%E5%80%BC%E6%92%A5%E5%82%99) Overdue rates for finance lease receivables exceeding three, six, and twelve months remained below **1%**, while overdue coverage ratios for over three, six, and twelve months slightly decreased due to active monitoring and improved loss recovery measures Finance Lease Receivables Overdue and Impairment Status | Indicator | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Finance Lease Receivables | 1,850,798 | 1,823,221 | | Impairment Provision for Finance Lease Receivables | 17,183 | 16,625 | | Net Finance Lease Receivables Provision Ratio | 0.9% | 0.9% | | **Net Overdue Finance Lease Receivables** | | | | Over 1 month | 33,956 | 34,425 | | Over 3 months | 14,715 | 13,451 | | Over 6 months | 6,308 | 5,873 | | Over 1 year | 2,719 | 2,563 | | **Overdue Ratio** | | | | Over 1 month | 1.8% | 1.9% | | Over 3 months | 0.8% | 0.7% | | Over 6 months | 0.3% | 0.3% | | Over 1 year | 0.1% | 0.1% | | **Overdue Coverage Ratio** | | | | Over 1 month | 50.6% | 48.3% | | Over 3 months | 116.8% | 123.6% | | Over 6 months | 272.4% | 283.1% | | Over 1 year | 632.0% | 648.7% | - As of June 30, 2025, the overdue ratio for over three months, over six months, and over one year were all below **1%**[46](index=46&type=chunk) - Overdue coverage ratios for over three months slightly decreased, and for over six months and over one year decreased, mainly due to active monitoring and continuous improvement of loss recovery measures[46](index=46&type=chunk) [Current Assets and Liabilities](index=19&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2%E8%88%87%E8%B2%A0%E5%82%B5) As of June 30, 2025, net current assets increased from **RMB 323.2 million** to **RMB 398.6 million**, primarily due to increases in current assets such as finance lease receivables, prepayments, deposits, and other receivables, as well as a decrease in current liabilities like trade payables Current Assets and Current Liabilities Status | Indicator | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Current Assets | 1,690,783 | 1,664,937 | | Total Current Liabilities | 1,292,190 | 1,341,772 | | Net Current Assets | 398,593 | 323,165 | - The increase in net current assets was primarily due to increases in current assets such as finance lease receivables, prepayments, deposits, and other receivables, and a decrease in current liabilities such as trade payables[56](index=56&type=chunk) [Capital Expenditures](index=20&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Capital expenditures increased by **12.1%** year-on-year to **RMB 195.2 million**, primarily for the purchase of property and equipment and additions to intangible assets - Capital expenditures increased by **12.1%** year-on-year to **RMB 195.2 million**, primarily due to increased expenditures for the purchase of property and equipment and additions to intangible assets[58](index=58&type=chunk) [Asset Pledges](index=20&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the total pledged assets for borrowings increased to **RMB 2,350.6 million**, with increases in pledged property and equipment and finance lease receivables, and decreases in pledged loan deposits and inventory - As of June 30, 2025, the Group's pledged assets for borrowings increased from **RMB 2,249.2 million** as of December 31, 2024, to **RMB 2,350.6 million**[59](index=59&type=chunk) Composition of Pledged Assets | Pledged Asset Category | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Property and Equipment | 467,005 | 376,789 | | Loan Deposits | 51,514 | 57,489 | | Inventory | 79,591 | 103,020 | | Finance Lease Receivables | 1,752,513 | 1,711,893 | Risk Management and Internal Control [Internal Control System](index=16&type=section&id=%E5%85%A7%E9%83%A8%E6%8E%A7%E5%88%B6%E7%B3%BB%E7%B5%B1) The group has established a risk management and internal control system to effectively manage risks, with specific risk management policies tailored to the characteristics of the auto finance leasing business - The Group has established a risk management and internal control system to manage the risks it is exposed to, and has formulated corresponding risk management policies in accordance with the management characteristics of the auto finance leasing business[47](index=47&type=chunk) [Credit Risk Management Policy](index=16&type=section&id=%E4%BF%A1%E7%94%A8%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E6%94%BF%E7%AD%96) The group's credit risk management system is divided into pre-lease assessment and post-lease management, involving strict approval based on qualitative and quantitative factors and database checks, followed by regular monitoring of customer payments and vehicle activities using GPS tracking to maintain low overdue rates [Pre-Lease Credit Assessment and Approval Process](index=16&type=section&id=%E7%A7%9F%E8%B3%83%E5%89%8D%E4%BF%A1%E7%94%A8%E8%A9%95%E4%BC%B0%E5%92%8C%E5%AF%A9%E6%89%B9%E6%B5%81%E7%A8%8B) The credit assessment and approval process considers both qualitative and quantitative factors, including age, location, driving penalty records, credit history, litigation records, proposed principal, personal asset value, and income level - The credit assessment and approval process considers both qualitative factors (such as age, location, driving penalty records, credit history, and litigation records) and quantitative factors (such as proposed principal, personal asset value, and personal income level)[49](index=49&type=chunk) - Potential customers must meet initial requirements (such as valid Chinese ID card, driving license, age restrictions) and undergo credit assessment through self-built and third-party databases[50](index=50&type=chunk) - Before signing the agreement, an interview is conducted with the customer to verify identity and ensure understanding of the terms and conditions, after which the customer is required to make an initial payment[50](index=50&type=chunk) [Post-Lease Credit Risk Management](index=17&type=section&id=%E7%A7%9F%E8%B3%83%E5%BE%8C%E4%BF%A1%E7%94%A8%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) After vehicle handover, the group regularly monitors customer payments and vehicle activities, utilizing pre-installed GPS tracking devices and a vehicle monitoring platform to manage credit risk and maintain low overdue rates - After vehicle handover, the Group regularly monitors customer payments and vehicle activities, and monitors the status of leased vehicles through pre-installed GPS tracking devices and a vehicle monitoring platform[52](index=52&type=chunk) - The customer service department typically sends SMS reminders to customers three to five days before payment due dates[52](index=52&type=chunk) - If any amount is overdue for more than **35 days** or abnormal activity is detected, the Group may exercise its right to directly repossess the vehicle and implement other necessary legal measures[53](index=53&type=chunk) Capital Management [Capital Management](index=18&type=section&id=%E8%B3%87%E6%9C%AC%E7%AE%A1%E7%90%86) The group regularly reviews and manages its capital structure to balance debt and equity financing, adjusting it in response to changes in economic conditions, with the gearing ratio increasing to **71.3%** due to higher net debt - The Group regularly reviews and manages its capital structure to achieve a balance between debt and equity financing, and adjusts its capital structure in response to changes in economic conditions[54](index=54&type=chunk) Capital Structure and Gearing Ratio | Indicator | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Borrowings | 2,441,445 | 2,281,558 | | Lease Liabilities | 14,137 | 11,195 | | Less: Cash and Cash Equivalents | (333,771) | (340,598) | | Net Debt | 2,121,811 | 1,952,155 | | Total Equity | 852,272 | 827,846 | | Total Capital | 2,974,083 | 2,780,001 | | Gearing Ratio | 71.3% | 70.2% | - As of June 30, 2025, the gearing ratio increased from **70.2%** as of December 31, 2024, to **71.3%**, primarily due to an increase in net debt[55](index=55&type=chunk) Other Corporate Information [Foreign Exchange Risk](index=20&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The group's subsidiaries primarily operate in China, with most revenues and expenses denominated in RMB, and did not encounter significant foreign exchange risk or require hedging during the reporting period - The Group's subsidiaries primarily operate in China, with most revenues and expenses denominated in RMB, and did not encounter significant foreign exchange risk or require hedging for any foreign exchange fluctuations during the reporting period[57](index=57&type=chunk) [Employees and Remuneration Policy](index=21&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the group employed **1,270 full-time employees**, with employee benefits expenses increasing to **RMB 76.5 million**, offering salaries, year-end bonuses, performance bonuses, and share awards, supported by a structured training system - As of June 30, 2025, the Group employed **1,270 full-time employees**, with **1,267** in mainland China and **3** in Hong Kong, China[64](index=64&type=chunk) - For the six months ended June 30, 2025, the Group's employee benefits expenses (including directors' emoluments) were

董事會會議日期 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，並表明概不就因本公告全部或任何部分內容而產生或依賴該等內 容而引致的任何損失承擔任何責任。 XXF GROUP HOLDINGS LIMITED 喜相逢集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2473） 喜相逢集團控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）之董事 （「董事」）會（「董事會」）謹此宣佈，董事會會議將訂於2025年8月20日（星期三）舉 行，藉以（其中包括）考慮及批准本集團截至2025年6月30日止六個月之中期業績 及其發佈，以及處理其他事項。 承董事會命 喜相逢集團控股有限公司 主席 黃偉先生 香港，2025年8月8日 於本公告日期，執行董事為黃偉先生、葉富偉先生及張景花女士；非執行董事為 劉偉先生；及獨立非執行董事為吳飛先生、馮志偉先生及陳碩先生。 ...

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7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: 喜相逢集團控股有限公司 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02473 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 12,000,000,000 | HKD | 0.003333333333 | HKD | | 40,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 12,000,000,000 | HKD | 0.003333333333 | HKD | | 40,000,000 | 本月底法定 ...

Core Viewpoint - The opening of the first overseas store by Xixiangfeng Group in Tashkent, Uzbekistan, marks a significant step in the company's globalization strategy and demonstrates its commitment to expanding into international markets [1][3]. Group 1: Market Entry and Strategy - Xixiangfeng's Tashkent store is located in the core commercial area, covering over 1,000 square meters and introducing a smart service system that aligns with the evolving automotive consumption market in Uzbekistan [3]. - The automotive market in Uzbekistan is experiencing a dual growth trend of traditional fuel vehicles and electric vehicles, with total vehicle sales surpassing 482,000 units in 2024, and electric vehicle sales increasing by 17% year-on-year [3]. - The Uzbek government's structural reforms have resulted in a GDP growth of 6.5% in 2024, reaching $115 billion, and a real increase in per capita disposable income of 8.1%, creating a favorable environment for automotive financial services [3]. Group 2: Competitive Landscape - The Uzbek automotive market is characterized by local brands dominating and foreign investments accelerating penetration, with companies like BYD rapidly gaining market share, contributing 4.3% in 2024 [3]. - Xixiangfeng's entry into the market coincides with a diversification transformation period, offering installment purchase plans that cater to a wide range of consumer needs, potentially igniting a new wave of vehicle purchases [3]. Group 3: Technological Integration - Xixiangfeng Group has been a leader in digital and AI technology applications, successfully deploying the DeepSeek-R1 intelligent risk control model domestically, which enhances operational efficiency and customer experience [4]. - The new store in Tashkent incorporates targeted optimizations in smart risk control, vehicle management, and customer service systems to ensure efficient and precise execution of business operations [4]. Group 4: Future Expansion Plans - The opening of the Tashkent store is a key milestone in Xixiangfeng's global strategy, serving as a model for exporting Chinese automotive service models abroad [4]. - The company plans to leverage its extensive experience in the Chinese automotive service market while focusing on localized innovations to adapt to the unique characteristics of different regional markets [4].

Core Insights - Xixiangfeng Group Holdings Limited has officially entered the low-altitude economy sector with the establishment of its wholly-owned subsidiary, Xixiangfeng Low Altitude Integrated Services (Fujian) Co., Ltd, which obtained its business license in April 2025 [1][3] - The low-altitude economy encompasses various economic activities conducted in airspace below 1,000 meters, including logistics, agricultural protection, emergency rescue, and urban transportation [3][4] - The low-altitude economy in China is experiencing rapid growth, with the total output value reaching approximately 506 billion RMB in 2023, a year-on-year increase of 33.8% [3][4] Industry Overview - As of the first quarter of 2025, there are 82,400 existing low-altitude economy-related enterprises in China, with 5,934 new registrations in the same period, representing a year-on-year growth of 224% [3][4] - The market size of the low-altitude economy is projected to reach 859.17 billion RMB by 2025, with some institutions predicting it may exceed 1 trillion RMB [3][4] - By 2030, the industry scale is expected to surpass 3 trillion RMB, and by 2035, it is anticipated to reach 3.5 trillion RMB [3][4] Policy and Market Dynamics - The low-altitude economy has been incorporated into national strategy, with 30 provinces including it in their development plans [3][4] - Major cities such as Shenzhen, Hangzhou, Hefei, Suzhou, Chengdu, and Chongqing have been designated as pilot cities for operations below 600 meters [3][4] - The capital market is increasingly focused on the low-altitude economy, with 101 financing cases and a total financing amount exceeding 6 billion RMB from Q1 2024 to Q1 2025 [4] Company Strategy - Xixiangfeng Group aims to leverage its extensive experience in financing leasing and customer resources to introduce a mature leasing model into the drone business, helping clients reduce upfront procurement costs and improve equipment utilization [4][5] - The company plans to invest in high-quality drone-related enterprises to enhance its competitive edge in the low-altitude economy [4][5] - Industry analysts believe that the low-altitude economy is in a window of policy benefits and market expansion, positioning it as a potential trillion-level industry [5]

喜相逢集团公告，本集团全资附属公司喜相逢低空综合服务(福建)有限公司于2025年4月在中国注册成 立并取得营业执照，计划开展低空经济相关综合服务业务、无人机销售及租赁服务，以及低空经济有关 投资业务。董事会认为，低空经济行业具有庞大的市场潜力，"无人机+"应用逐渐落地，在物流、清 洗、植保、救援、航测、巡检等应用领域有著广阔的市场需求。本集团将提供无人机销售业务、无人机 短期、长期租赁服务等多样化的供应链服务解决方案，以满足"无人机+"各应用领域用户的需求。此 外，本集团将适时投资优质的无人机相关企业，战略性布局无人机产业链。本集团将以上述无人机业务 为切入点积极进军低空经济领域。 ...

Financial Performance - The group's revenue for the year reached RMB 1,464.1 million, an increase of 12.2% compared to RMB 1,304.3 million in the previous year[9] - Gross profit amounted to RMB 438.4 million, reflecting a growth of 4.6% from RMB 419.0 million year-on-year[9] - Adjusted net profit was RMB 48.0 million, up 3.1% from RMB 46.5 million in the previous year[9] - Profit before tax decreased significantly by 58.9% to RMB 53,368 thousand from RMB 129,850 thousand in 2023[15] - The annual profit for 2024 was RMB 39,729 thousand, down 63.8% from RMB 109,834 thousand in 2023[15] - The gross profit margin for 2024 was 29.9%, down from 32.1% in 2023[16] - The net profit margin for 2024 was 2.7%, a decrease from 8.4% in 2023[16] - The group's automotive-related business revenue for the reporting period was RMB 1,917 million, an increase of 15.8% compared to RMB 1,656 million in the same period last year[45] - The automotive direct retail business generated revenue of RMB 795 million, significantly up from RMB 36 million in the previous year, driven by growth in domestic direct sales and exports[46] Revenue Sources - The automotive retail and financing leasing business generated sales revenue of RMB 1,192.9 million, a growth of 5.1% year-on-year[10] - Revenue from automotive-related services reached RMB 191.7 million, representing a year-on-year increase of 15.8%[10] - The company generated revenue of RMB 38.3 million from direct automotive retail, supplementing its financing leasing sales model[30] - Internationally, the company established partnerships with overseas dealers, achieving revenue of RMB 41.1 million from automotive exports, covering Central Asia, Southeast Asia, and the Middle East[30] Operational Efficiency - The company has integrated artificial intelligence (AI) into its main business systems to enhance operational efficiency and user experience[11] - Nearly 100 "digital employees" were deployed to automate processes such as data entry and analysis, significantly improving operational efficiency[31] - The financing costs for newly accessed financial resources decreased by over 1% compared to the previous year[11] - The average actual interest rate for newly signed financing lease agreements decreased to 17.4% in 2024 from 18.8% in 2023, reflecting a reduction in financing costs[41] - The average return rate on financing lease receivables also declined to 17.2% in 2024 from 18.8% in 2023, attributed to adjustments in product pricing[42] Market Expansion - The company plans to deepen its sales network in lower-tier cities to ensure steady growth and sustainable development[11] - The company focused on expanding its market presence in the domestic market, particularly in the northeastern, northern, and northwestern regions of China[27] - The company expanded its self-operated sales network from 77 to 89 locations by the end of 2024, enhancing coverage in second and third-tier cities[27] - The company is actively exploring new business areas and accelerating its globalization process, with plans to replicate its domestic business model in international markets[30] Financial Position - The total value of non-current assets increased to RMB 1,644,795 thousand in 2024 from RMB 1,472,064 thousand in 2023[16] - The total equity increased to RMB 827,846 thousand in 2024 from RMB 781,450 thousand in 2023[16] - As of December 31, 2024, the company's net debt increased to RMB 1,952.2 million from RMB 1,612.8 million in 2023, resulting in a debt-to-equity ratio of 70.2%, up from 67.4%[72] - The company's current assets increased to RMB 1,664.9 million in 2024, compared to RMB 1,448.8 million in 2023, primarily due to increases in finance lease receivables and cash and cash equivalents[74] Risk Management - The company has implemented a risk management system tailored to the characteristics of the automotive financing lease business, enhancing its ability to monitor and manage risks effectively[64] - The company utilizes a proprietary data analysis system to improve credit risk assessment and approval processes, ensuring competitive advantage in the market[67] - The company actively monitors customer payments and vehicle activities post-lease, utilizing GPS tracking devices to manage credit risk effectively[69] - The impairment provision for financing lease receivables was RMB 16,625 thousand in 2024, compared to RMB 14,299 thousand in 2023, reflecting a proactive approach to managing credit risk[62] Corporate Governance - The company has maintained a focus on independent oversight through its board members, enhancing corporate governance and accountability[121][123] - The independent non-executive directors have confirmed their independence in accordance with the listing rules[145] - The board members have diverse backgrounds in finance, technology, and management, contributing to a well-rounded leadership team[126][127] - The company has no disclosed interests in any competing businesses as of the last practicable date, ensuring compliance with listing rules[128] Employee and Director Information - The group had a total of 1,194 full-time employees as of December 31, 2024, with 1,189 located in China and 5 in Hong Kong[156] - The total employee benefit expenses, including director remuneration, amounted to RMB 156.4 million, compared to RMB 138.3 million for the year ended December 31, 2023[158] - The company has established a structured training system, including an e-learning platform and internal seminars, to enhance employee skills[158] Shareholder Information - As of December 31, 2024, Mr. Huang Wei holds 385,831,065 shares, representing 24.94% of the company's equity[163] - Major shareholder Mingzhu Capital, fully owned by Mr. Huang Wei, holds 190,629,882 shares, which is 12.32% of the total[166] - The company has not entered into any management or administrative contracts during the reporting period[169] Strategic Partnerships - The strategic cooperation agreement with Beijing Automotive was officially announced, focusing on exploring new paths for automotive innovation and industry development[99] - A strategic partnership was established with Tuhu Car Maintenance, aiming to leverage over 100 million registered users for resource sharing and optimizing service delivery in the automotive service sector[104] - A strategic cooperation agreement was signed with Hubei Jin Kong Financing Leasing Co., focusing on exploring new paths for public credit, supply chain finance, and retail financial services in response to automotive consumption demands[108]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of RMB 1,464,084,000, representing a year-on-year increase of 12.2% compared to RMB 1,304,341,000 in 2023[4] - The company's gross profit for the same period was RMB 438,351,000, which is a 4.6% increase from RMB 419,012,000 in the previous year[4] - The pre-tax profit decreased significantly by 58.9% to RMB 53,368,000 from RMB 129,850,000 in 2023[4] - The annual profit also saw a decline of 63.8%, amounting to RMB 39,729,000 compared to RMB 109,834,000 in the prior year[4] - Adjusted net profit, calculated using non-IFRS measures, increased by 3.1% to RMB 48,002,000 from RMB 46,544,000 in 2023[4] - Total revenue increased by 12.2% to RMB 1,464.1 million from RMB 1,304.3 million, driven by the growth in direct automotive retail and the expansion of the self-operated sales network[26] - The company reported a net profit attributable to owners of the company of RMB 39,970 thousand for 2024, a decrease of 63.7% compared to RMB 110,254 thousand in 2023[103] - Basic earnings per share decreased to RMB 2.58 from RMB 10.08, reflecting a significant decline in profitability[89] Market and Economic Environment - In 2024, China's GDP growth reached 5.0%, with the total GDP surpassing RMB 130 trillion, indicating a stable economic environment[7] - The total production and sales of passenger vehicles in China reached 27.48 million and 27.56 million units respectively, with year-on-year growth of 5.2% and 5.8%[8] - The penetration rate of automotive finance in China increased to 58% in 2024, up by 2% from the previous year, reflecting a growing trend in automotive financing[9] - The ride-hailing market in China achieved a business scale of RMB 317.6 billion, marking a year-on-year growth of 24.5%[9] Business Expansion and Strategy - The company is actively expanding its overseas market presence while enhancing risk management and competitive strategies in response to market challenges[13] - The company expanded its self-operated sales network from 77 to 89 locations by the end of 2024, focusing on second and third-tier cities in China[14] - The company plans to deepen its core business advantages by further exploring the market potential in lower-tier cities[20] - The company aims to enhance its global presence through strategic overseas export business expansion[20] - The company will continue to leverage digital transformation to optimize business processes and improve operational efficiency[20] Operational Efficiency - The company deployed nearly 100 "digital employees" to automate processes, significantly improving operational efficiency and reducing costs[17] - Selling and marketing expenses increased by 11.2% to RMB 109.8 million from RMB 98.7 million, driven by expanded sales efforts and increased employee benefits[35] - Administrative expenses decreased by 7.8% from RMB 133.2 million for the year ended December 31, 2023, to RMB 122.9 million for the year ending December 31, 2024, primarily due to reduced listing expenses[36] Financial Position and Assets - Total assets increased to RMB 3,309,732,000 in 2024 from RMB 2,920,886,000 in 2023, representing a growth of 13.3%[90] - Total liabilities rose to RMB 2,481,886,000 in 2024, compared to RMB 2,139,436,000 in 2023, marking an increase of 16%[92] - The company's current assets increased to RMB 1,664.9 million in 2024 from RMB 1,448.8 million in 2023, primarily due to increases in finance lease receivables and cash and cash equivalents[62] - The company’s total equity increased to RMB 827.8 million in 2024 from RMB 781.5 million in 2023, showing a positive trend in shareholder value[60] Financing and Costs - The average actual interest rate for newly signed financing leasing agreements decreased to 17.4% from 18.8% in the previous year, reflecting a reduction in financing costs[28] - The financing costs for new financial resources decreased by over 1% year-on-year, enhancing the company's resource support for business growth[18] - The company's borrowings secured by assets increased to RMB 2,249.2 million as of December 31, 2024, from RMB 2,144.1 million in 2023[65] - The weighted average interest rate for secured bank loans decreased to 5.39% in 2024 from 6.94% in 2023, indicating a reduction in borrowing costs[121] Employee and Corporate Governance - As of December 31, 2024, the company had 1,194 full-time employees, with 1,189 in China and 5 in Hong Kong[70] - Employee benefit expenses, including director remuneration, were approximately RMB 156.4 million for the year ended December 31, 2024, compared to RMB 138.3 million for the year ended December 31, 2023, representing an increase of 13.8%[71] - The company has established a structured training system, including an e-learning platform and internal seminars, to enhance employee skills[71] - The audit committee has reviewed the consolidated financial statements for the year ended December 31, 2024, and found them compliant with applicable accounting standards[79] Dividends and Shareholder Returns - The company did not recommend a final dividend for the year ended December 31, 2024, consistent with the previous year[72] - The company has not declared any dividends for the years ended December 31, 2024, and 2023[106] Other Financial Metrics - The company incurred a net loss of RMB (9,918) thousand from other losses, compared to RMB (8,031) thousand in 2023, indicating increased losses[100] - Government grants received amounted to RMB 17,234 thousand, down from RMB 20,518 thousand in 2023, reflecting a reduction in financial support[99] - The impairment provision for financing lease receivables increased to RMB 16,625 thousand in 2024 from RMB 14,299 thousand in 2023, reflecting a rise of approximately 16.2%[111]

Automotive Business and Market Performance - The company's main business includes car retail and financing, with most non-luxury cars sold through direct financing leases, and car-related services such as operating leases[17] - From January to June 2024, China's automobile production and sales were 13.9 million and 14.0 million units, respectively, with year-on-year growth of 4.9% and 6.1%[19] - By the end of June 2024, the cumulative production and sales of domestic new energy vehicles exceeded 30 million units, with Chinese brand passenger cars accounting for over 60% of the market share[19] - The company's new car sales in the auto finance leasing business increased by 17.2% year-on-year during the reporting period[21] - The company officially launched auto sales export business in 2024, marking an innovative and promising venture[23] - China's auto exports reached 5.221 million units in 2023, a 57.4% increase from 3.317 million units in 2022[23] - The company is focusing on the new energy vehicle sector through product innovation, intelligent risk control, technology application, and asset management[21] - The company's auto finance leasing business offers flexible rental payment methods and comprehensive after-sales services, improving customer satisfaction and loyalty[21] - The company is strategically expanding its market presence by deepening its existing market layout and gradually opening new outlets[21] - The company expanded its self-operated sales outlets to 80 by June 30, 2024, with 47 outlets dedicated to passenger cars, 13 to ride-hailing vehicles, and 20 offering both[31] - Revenue from the East China region accounted for 33.4% of total automotive retail and financing revenue in the first half of 2024, while the North China and Northwest China regions saw increased revenue shares due to enhanced sales capabilities[31] - The top five customers contributed only 1.3% of total revenue in the first half of 2024, indicating a diversified customer base with no significant reliance on major clients[31] - Sales cost increased by 11.3% to RMB 449.4 million in the first half of 2024, driven by higher car sales in the auto retail and financing business[34] - Gross profit rose by 6.1% to RMB 209.3 million, with gross margin at 31.8% in 2024 compared to 32.8% in 2023[35] - Sales and marketing expenses increased by 13.1% to RMB 49.9 million due to expanded sales efforts and higher employee benefits[36] - Inventory decreased by RMB 35.8 million to RMB 134.2 million as of June 30, 2024, due to reduced new car procurement[47] - The company's financing lease receivables involved 25,487 contracts (24,610 borrowers) as of December 31, 2023, a 15.8% increase from 22,001 contracts (21,292 borrowers) as of December 31, 2022[49] - The net financing lease receivables amounted to RMB 1,670.9 million as of December 31, 2023, a 12.6% increase compared to December 31, 2022[49] - The proportion of net financing lease receivables due within one year was 41.8% as of December 31, 2023, slightly higher than the previous year, driven by an increase in the number of financing lease agreements[49] - The top five clients accounted for 1.5%, 1.7%, and 2.4% of the company's net financing lease receivables as of June 30, 2024, December 31, 2023, and December 31, 2022, respectively[49] - The net financing lease receivables in East China accounted for 38.3% of the total as of June 30, 2024, up from 35.7% as of December 31, 2023[49] - The net financing lease receivables in Northwest China increased to 8.7% as of June 30, 2024, compared to 7.9% as of December 31, 2023[49] - The overdue financing lease receivables ratio for more than three months remained below 1% as of June 30, 2024, December 31, 2023, and December 31, 2022[52] - The provision ratio for net financing lease receivables was 0.8% as of June 30, 2024, compared to 0.9% as of December 31, 2023 and 2022[50] - The coverage ratio for overdue financing lease receivables exceeding six months was 293.2% as of June 30, 2024, compared to 307.4% as of December 31, 2023[50] - The company's credit risk management system includes pre-lease and post-lease credit risk management, with specific requirements for potential financing lease clients[54][55] - Total finance lease receivables stood at RMB 2,100,745 thousand as of June 30, 2024, slightly down from RMB 2,109,522 thousand at the end of 2023[139] - Net finance lease receivables amounted to RMB 1,672,557 thousand as of June 30, 2024, with RMB 698,221 thousand due within one year[139] - Non-performing finance lease receivables (overdue) totaled RMB 96,786 thousand as of June 30, 2024[141] - The impairment provision for finance lease receivables decreased to RMB 14,205 thousand as of June 30, 2024, compared to RMB 12,853 thousand as of June 30, 2023[142] - Inventory decreased to RMB 134,179 thousand as of June 30, 2024, from RMB 169,976 thousand as of December 31, 2023, primarily due to a reduction in car inventory[146] Financial Performance and Metrics - The company's adjusted net profit for the reporting period was RMB 23.9 million, an increase of 7.8% compared to RMB 22.1 million in the same period last year[26] - Revenue increased by 9.6% to RMB 658.7 million in the first half of 2024 compared to RMB 601.0 million in the same period of 2023, driven by enhanced sales and marketing efforts[27] - Automotive retail and financing accounted for 85.9% of total revenue, with financing lease sales contributing RMB 411.2 million (62.5%) and financing lease income contributing RMB 154.4 million (23.4%)[27] - Automotive-related business revenue grew to RMB 93.0 million (14.1% of total revenue), with automotive operating leases contributing RMB 80.9 million (12.3%)[27] - The average actual interest rate for newly established financing lease agreements remained stable at 18.7% in the first half of 2024, consistent with the same period in 2023[29] - The average return rate on financing lease receivables decreased to 18.6% in the first half of 2024 from 19.8% in the same period of 2023, due to the completion of higher-yielding agreements from earlier years[30] - Administrative expenses decreased by 1.8% to RMB 55.9 million, mainly due to the absence of listing fees[38] - R&D expenses remained minimal at RMB 0.5 million, similar to the previous year[39] - Net finance costs decreased by 1.7% to RMB 80.6 million, driven by lower average loan costs in the auto retail and financing business[40] - Profit for the period dropped to RMB 19.5 million from RMB 62.3 million, impacted by the absence of fair value gains on redeemable ordinary shares and increased option expenses[43] - Net profit attributable to owners was RMB 19.7 million with a net profit margin of 3.0%, down from 10.4% in 2023[44] - Revenue for the six months ended June 30, 2024, increased to RMB 658,651 thousand, up 9.6% from RMB 601,001 thousand in the same period in 2023[108] - Gross profit for the six months ended June 30, 2024, was RMB 209,260 thousand, compared to RMB 197,291 thousand in the same period in 2023[108] - Net profit attributable to the company's owners for the six months ended June 30, 2024, was RMB 19,685 thousand, a significant decrease from RMB 62,402 thousand in the same period in 2023[108] - Total assets as of June 30, 2024, were RMB 2,943,289 thousand, slightly up from RMB 2,920,886 thousand as of December 31, 2023[110] - Total liabilities as of June 30, 2024, were RMB 2,139,489 thousand, compared to RMB 2,139,436 thousand as of December 31, 2023[111] - Property, plant, and equipment increased to RMB 497,657 thousand as of June 30, 2024, from RMB 428,067 thousand as of December 31, 2023[110] - Research and development expenses for the six months ended June 30, 2024, were RMB 450 thousand, up from RMB 273 thousand in the same period in 2023[108] - The company's total equity as of June 30, 2024, was RMB 803,800 thousand, compared to RMB 781,450 thousand as of December 31, 2023[110] - Basic earnings per share for the six months ended June 30, 2024, were RMB 3.82 cents, down from RMB 18.40 cents in the same period in 2023[109] - Total equity as of June 30, 2024, increased to RMB 803,800 thousand, up from RMB 781,450 thousand at the beginning of the year[112] - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB 7,648 thousand, compared to RMB 7,244 thousand in the same period last year[113] - Net cash used in investing activities for the six months ended June 30, 2024, was RMB 143,501 thousand, compared to RMB 130,093 thousand in the same period last year[113] - Net cash generated from financing activities for the six months ended June 30, 2024, was RMB 116,208 thousand, compared to RMB 135,240 thousand in the same period last year[113] - The company's cash and cash equivalents decreased by RMB 19,645 thousand during the six months ended June 30, 2024, compared to an increase of RMB 12,391 thousand in the same period last year[113] - The company's total comprehensive income for the six months ended June 30, 2024, was RMB 18,151 thousand, compared to RMB 58,908 thousand in the same period last year[112] - The company's profit for the six months ended June 30, 2024, was RMB 19,685 thousand, compared to RMB 62,402 thousand in the same period last year[112] - The company's exchange differences on translation of foreign operations resulted in a loss of RMB 1,534 thousand for the six months ended June 30, 2024[112] - The company's share-based payments amounted to RMB 4,395 thousand for the six months ended June 30, 2024[112] - The company's total assets as of June 30, 2024, were RMB 798,039 thousand, compared to RMB 559,145 thousand as of June 30, 2023[112] - The fair value of financial assets and liabilities is categorized into three levels based on observable inputs, with Level 1 being quoted prices in active markets, Level 2 being observable inputs other than Level 1, and Level 3 being unobservable inputs[119] - The third-level financial instruments showed a decrease from RMB 20,024 thousand to RMB 13,016 thousand during the reporting period, primarily due to disposals of RMB 7,000 thousand and a loss of RMB 8 thousand recognized in profit or loss[121] - The company's revenue for the six months ended June 30, 2024, increased to RMB 658,651 thousand from RMB 601,001 thousand in the same period of 2023, driven by growth in car sales under finance leases (RMB 411,239 thousand), finance lease income (RMB 154,369 thousand), and operating lease income (RMB 80,859 thousand)[123] - Total expenses for the six months ended June 30, 2024, rose to RMB 555,603 thousand from RMB 504,965 thousand in 2023, with significant increases in inventory costs (RMB 341,213 thousand), employee benefits (RMB 70,140 thousand), and depreciation (RMB 65,748 thousand)[124] - Net finance costs for the six months ended June 30, 2024, decreased slightly to RMB 80,614 thousand from RMB 82,033 thousand in 2023, mainly due to a reduction in interest expenses on other borrowings (RMB 5,300 thousand)[125] - Income tax expense for the six months ended June 30, 2024, increased to RMB 7,585 thousand from RMB 2,905 thousand in 2023, with current tax expense rising to RMB 8,150 thousand and deferred tax decreasing to RMB 565 thousand[126] - Net profit attributable to the company's owners decreased to RMB 19,685 thousand in the first half of 2024, compared to RMB 62,402 thousand in the same period in 2023[127] - Basic earnings per share (EPS) dropped to RMB 3.82 cents in H1 2024 from RMB 18.40 cents in H1 2023[127] - Diluted EPS decreased slightly to RMB 3.64 cents in H1 2024 from RMB 3.90 cents in H1 2023[127] - The company did not declare an interim dividend for the six months ended June 30, 2024[131] - Property, plant, and equipment increased to RMB 484,227 thousand as of June 30, 2024, up from RMB 413,041 thousand at the beginning of the period[133] - The company invested RMB 23,030 thousand in an associate, Fujian Xidun Automobile Service Co., Ltd., in which it holds a 47% stake[137][138] - Trade receivables (net of impairment provision) increased to RMB 10,560 thousand as of June 30, 2024, from RMB 9,928 thousand as of December 31, 2023[143] - The majority of trade receivables (86.8%) were aged within 3 months as of June 30, 2024, totaling RMB 9,169 thousand[144] - Trade payables decreased significantly to RMB 54,248 thousand as of June 30, 2024, from RMB 135,520 thousand as of December 31, 2023[147] - Total borrowings increased to RMB 1,990,633 thousand as of June 30, 2024, compared to RMB 1,865,655 thousand as of December 31, 2023[149] - The weighted average interest rate for secured bank loans decreased to 5.89% as of June 30, 2024, from 6.94% as of December 31, 2023[151] - The company's total collateral amounted to RMB 2,225,021 thousand as of June 30, 2024, with finance lease receivables making up the largest portion at RMB 1,645,586 thousand[151] Digital Transformation and Innovation - The company is actively embracing digital transformation, utilizing low-code platforms, intelligent decision-making through internal data warehouses, and AI-powered customer service robots to enhance operational efficiency[22] Environmental and Social Responsibility - The company is committed to green and low-carbon production, reducing environmental impact, and actively participating in social welfare activities[23] Shareholder and Equity Information - Huang Wei holds 24.94% of the company's shares through controlled entities[72][75] - Ye Fuwei holds 0.19% of the company's shares through controlled entities[72] - Zhang Jinghua holds 0.19% of the company's shares as a beneficial owner[72] - Major shareholders include Mingzhu Capital Resources Limited (12.32%) and Ideal Stand Ventures Management Limited (10.49%)[75] - Brown Oak Holdings Limited holds 45,215,840 shares, representing 8.77% of the total shares[77] - Charming Tulip Holdings Limited holds 41,495,497 shares, representing 8.05% of the total shares[77] - Happy Gain Business Developments Limited directly holds 19,090,580 shares[79] - Southern Fortune Enterprises Management Limited directly holds 10,817,995 shares[79] - Brown Oak Holdings Limited is wholly owned by Shanghai Jili Enterprise Management Partnership (Limited Partnership)[80] - Charming Tulip Holdings Limited is wholly owned by Shanghai Xuan Te Enterprise Management Co., Ltd[81] - Shanghai Xuan Te Enterprise Management Co., Ltd is owned 47.18% by Ms. Qiu Hui and 32.27% by Mr. Lin Dachun[81] - Brown Oak Holdings Limited is controlled by Zhuhai Wanhe Jinhua Asset Management Co., Ltd[80] - Zhuhai Wanhe Jinhua Asset Management Co., Ltd is wholly owned by Guotong Wanhe Private Fund Management Co., Ltd[80] - Guotong Wanhe Private Fund Management Co., Ltd is controlled 45% by Guotai Kangxin Trust Co., Ltd and 35% by Beijing Dong'an Weiye Investment Management Co., Ltd[80] Capital and Funding Utilization - The net proceeds from the global offering amounted to approximately HKD 28.8 million, with HKD 17.449 million allocated for car purchases and HKD 11.326 million for sales network expansion[83] - As of June 30, 2024, HKD 17.366 million (RMB 16.409 million) of the funds allocated for car purchases had been utilized, leaving HKD 83,000 (RMB 75,000) unused[83] - For sales network expansion, only HKD 747,000 (RMB 689,000) had been utilized by June 30, 2024, with HKD 10.579 million (RMB 10.011 million) remaining unused[83] - The total utilized funds as of June 30, 2024, were