Revenue and Profit Performance - Revenue for the six months ended June 30, 2024, increased by 9.6% to RMB 658.651 million compared to RMB 601.001 million in the same period last year[3] - Gross profit rose by 6.1% to RMB 209.260 million from RMB 197.291 million year-on-year[3] - Profit before tax decreased significantly by 58.5% to RMB 27.064 million from RMB 65.159 million in the previous year[3] - Net profit for the period dropped by 68.7% to RMB 19.479 million compared to RMB 62.254 million in 2023[3] - Adjusted net profit (non-IFRS) increased by 7.8% to RMB 23.874 million from RMB 22.145 million[3] - Adjusted net profit (non-IFRS) for the reporting period was RMB 23.9 million, a 7.8% increase from RMB 22.1 million in the same period last year[12] - Total revenue for the six months ended June 30, 2024, increased by 9.6% to RMB 658.7 million, up from RMB 601.0 million in the same period in 2023[13] - Revenue for the six months ended June 30, 2024, reached RMB 658.651 million, a 9.6% increase compared to RMB 601.001 million in the same period in 2023[61] - Gross profit for the period was RMB 209.260 million, up 6.1% from RMB 197.291 million in 2023[61] - Net profit attributable to the company's owners was RMB 19.685 million, a significant decrease from RMB 62.402 million in the same period last year[61] - Basic earnings per share for the period were RMB 3.82 cents, down from RMB 18.40 cents in 2023[62] - Net profit margin for the six months ended June 30, 2024, was 3.0%, down from 10.4% in the same period in 2023[29] - 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[73] - Basic earnings per share for the six months ended June 30, 2024, were RMB 0.0382, down from RMB 0.1840 in the same period in 2023[73] - Diluted earnings per share for the six months ended June 30, 2024, were RMB 0.0364, compared to RMB 0.0390 in the same period in 2023[73] Auto Financing and Leasing Business - New car sales under the auto financing leasing business grew by 17.2% year-on-year, indicating strong market demand[8] - The company is exploring automobile financing lease export business to provide flexible purchasing options for international consumers[9] - The company's direct financing lease model includes vehicles newly purchased from dealers and those repossessed due to customer defaults[14] - The average actual interest rate for newly established financing lease agreements in 2024 was 18.7%, consistent with 2023, while the average return rate on financing lease receivables decreased slightly from 19.8% in 2023 to 18.6% in 2024 due to the completion of higher-yielding agreements from earlier years[15][17] - The number of financing lease contracts increased by 4.4% to 26,605 as of June 30, 2024, compared to 25,487 as of December 31, 2023, with net financing lease receivables slightly increasing to RMB 1,672.6 million[31] - The proportion of financing lease receivables due within one year remained stable at 41.7% as of June 30, 2024, compared to 41.8% as of December 31, 2023[33] - The top five customers accounted for 1.5% of the company's net financing lease receivables as of June 30, 2024, down from 1.7% as of December 31, 2023[33] - The net amount of finance lease receivables as of June 30, 2024, was RMB 1,672,557 thousand, showing a slight increase from RMB 1,670,900 thousand as of December 31, 2023, and a significant rise from RMB 1,483,627 thousand as of December 31, 2022[34] - The provision ratio for finance lease receivables as of June 30, 2024, was 0.8%, slightly lower than 0.9% as of December 31, 2023, and December 31, 2022[34] - The overdue ratio for finance lease receivables over three months as of June 30, 2024, was 0.7%, consistent with the ratios as of December 31, 2023, and December 31, 2022[34] - The coverage ratio for overdue finance lease receivables over three months as of June 30, 2024, was 116.9%, slightly lower than 121.0% as of December 31, 2023, but higher than 127.5% as of December 31, 2022[34] - The company maintains a low overdue ratio, with overdue ratios for more than three months, six months, and one year all below 1% as of June 30, 2024, December 31, 2023, and December 31, 2022[36] - The company uses a simplified method under IFRS 9 to recognize impairment losses on finance lease receivables, with expected lifetime losses recognized at initial recognition[36] - Revenue from financing lease sales of cars reached RMB 411,239 thousand in the first half of 2024, up from RMB 384,710 thousand in the same period of 2023[68] - Financing lease income grew to RMB 154,369 thousand in H1 2024, compared to RMB 148,191 thousand in H1 2023[68] - Total finance lease receivables as of June 30, 2024, were RMB 2,100,745 thousand, slightly down from RMB 2,109,522 thousand as of December 31, 2023[79] - Unearned finance income as of June 30, 2024, was RMB 428,188 thousand, compared to RMB 438,622 thousand as of December 31, 2023[79] - The company's finance lease receivables were predominantly current, with RMB 915,227 thousand due within one year as of June 30, 2024[79] - The company's financing lease receivables used as collateral increased to RMB 1,645,586 thousand as of June 30, 2024, from RMB 1,621,112 thousand as of December 31, 2023[86] Digital Transformation and Innovation - The company has embraced digital transformation, utilizing low-code platforms, intelligent decision-making, and AI-driven customer service to enhance operational efficiency[8] - The company is actively expanding in the new energy vehicle sector through product innovation and technological applications[8] Macroeconomic and Market Environment - China's GDP for the first half of 2024 grew by 5.0% year-on-year, reaching RMB 61.6836 trillion, providing a stable macroeconomic environment[5] - The domestic auto market saw a 6.1% increase in sales to 14.0 million units in the first half of 2024, with new energy vehicle production and sales continuing to grow rapidly[6] - China's automobile exports reached 5.221 million units in 2023, a 57.4% increase compared to 3.317 million units in 2022, making China the world's largest automobile exporter[9] Business Expansion and Strategy - The company officially launched automobile export sales in 2024, marking an innovative and promising business expansion[9] - The company emphasizes green and low-carbon production as part of its sustainable development strategy[9] - The company's self-operated sales outlets increased from 67 in 2022 to 80 in 2024, with 47 outlets dedicated to passenger cars, 13 to ride-hailing services, and 20 offering both[17] - Revenue from the East China region accounted for 33.4% of total revenue in 2024, down from 37.7% in 2023, while the North China and Northwest China regions saw increased revenue shares due to enhanced sales capabilities[18] - The company's shares were listed on the Main Board of the Hong Kong Stock Exchange on November 9, 2023[88] - The reporting period for the financial results is from January 1, 2024, to June 30, 2024[88] - The company adopted a pre-IPO share option plan on October 9, 2023, which became effective on the listing date[89] - The company's indirect wholly-owned subsidiary, XFX Financial Leasing Group Co., Ltd., is incorporated under Chinese law[89] - The company's board of directors includes three executive directors, two non-executive directors, and three independent non-executive directors[89] Expenses and Costs - Sales and marketing expenses rose by 13.1% from RMB 44.1 million in 2023 to RMB 49.9 million in 2024, driven by expanded sales efforts and increased employee benefits[22] - Administrative expenses decreased by 1.8% from RMB 56.9 million in 2023 to RMB 55.9 million in 2024, primarily due to the absence of listing fees and increased option expenses[23] - R&D expenses for the six months ended June 30, 2024, amounted to RMB 0.5 million, similar to the RMB 0.3 million recorded in the same period in 2023[24] - Net finance costs decreased by 1.7% from RMB 82.0 million in the six months ended June 30, 2023, to RMB 80.6 million in the same period in 2024, primarily due to lower average loan funding costs in the auto retail and financing business[25] - Income tax expense increased from RMB 2.9 million in the six months ended June 30, 2023, to RMB 7.6 million in the same period in 2024, mainly due to higher taxable profits[27] - Research and development expenses increased to RMB 450,000, up from RMB 273,000 in the same period last year[61] - Net financial costs decreased to RMB 80,614 thousand in H1 2024, down from RMB 82,033 thousand in H1 2023[71] - Income tax expense for the six months ended June 30, 2024, was RMB 7,585 thousand, compared to RMB 2,905 thousand for the same period in 2023, with an applicable tax rate of 25%[72] Financial Position and Assets - Inventory decreased by RMB 35.8 million to RMB 134.2 million as of June 30, 2024, compared to RMB 170.0 million as of December 31, 2023, due to reduced new car procurement[30] - The company's gross profit increased by 6.1% from RMB 197.3 million in 2023 to RMB 209.3 million in 2024, with gross margins at 31.8% and 32.8% respectively[21] - The fair value gain on redeemable ordinary shares decreased from RMB 46.3 million in the six months ended June 30, 2023, to RMB 0 in the same period in 2024, as the redeemable ordinary shares were converted to ordinary shares upon listing[26] - Profit for the six months ended June 30, 2024, decreased to RMB 19.5 million from RMB 62.3 million in the same period in 2023, primarily due to the absence of fair value changes in redeemable ordinary shares and increased share option expenses[28] - The company's asset-liability ratio increased from 67.4% as of December 31, 2023, to 68.6% as of June 30, 2024, primarily due to an increase in net debt[45] - Net current assets increased from RMB 267.0 million as of December 31, 2023, to RMB 285.7 million as of June 30, 2024, mainly due to a decrease in trade payables and other current liabilities[47] - Total capital expenditure decreased by 25.1% from RMB 232.3 million for the six months ended June 30, 2023, to RMB 174.0 million for the six months ended June 30, 2024, primarily due to reduced spending on property, plant, and equipment, as well as intangible assets[49] - The company's total borrowing increased from RMB 1,865.7 million as of December 31, 2023, to RMB 1,990.6 million as of June 30, 2024, while lease liabilities decreased from RMB 14.9 million to RMB 13.6 million during the same period[44] - The company's inventory decreased from RMB 169.98 million as of December 31, 2023, to RMB 134.18 million as of June 30, 2024[46] - The company's total equity increased from RMB 781.45 million as of December 31, 2023, to RMB 803.80 million as of June 30, 2024[44] - The company's total capital increased from RMB 2,394.27 million as of December 31, 2023, to RMB 2,559.66 million as of June 30, 2024[44] - The company's total current liabilities decreased from RMB 1,181.79 million as of December 31, 2023, to RMB 1,096.61 million as of June 30, 2024[46] - The company's total current assets decreased from RMB 1,448.82 million as of December 31, 2023, to RMB 1,382.28 million as of June 30, 2024[46] - The company's total borrowing secured by collateral increased from RMB 2,144.1 million as of December 31, 2023, to RMB 2,225.0 million as of June 30, 2024[50] - Total assets increased to RMB 2,943,289 thousand as of June 30, 2024, compared to RMB 2,920,886 thousand as of December 31, 2023[63] - Inventory decreased to RMB 134,179 thousand as of June 30, 2024, from RMB 169,976 thousand as of December 31, 2023[63] - Cash and cash equivalents stood at RMB 248,344 thousand as of June 30, 2024, down from RMB 267,733 thousand as of December 31, 2023[63] - Total equity increased to RMB 803,800 thousand as of June 30, 2024, compared to RMB 781,450 thousand as of December 31, 2023[64] - Total liabilities remained stable at RMB 2,139,489 thousand as of June 30, 2024, compared to RMB 2,139,436 thousand as of December 31, 2023[64] - Property, plant, and equipment additions for the six months ended June 30, 2024, amounted to RMB 167,039 thousand, compared to RMB 224,050 thousand in the same period in 2023[77] - The company invested RMB 23,030 thousand in an associate, Fujian Xidun Automobile Service Co., Ltd., during the six months ended June 30, 2024[78] - Trade receivables (net of impairment allowance) increased to RMB 10,560 thousand as of June 30, 2024, compared to RMB 9,928 thousand as of December 31, 2023[82] - Trade payables decreased significantly to RMB 54,248 thousand as of June 30, 2024, from RMB 135,520 thousand as of December 31, 2023[83] - The weighted average effective interest rate for secured bank loans decreased to 5.89% as of June 30, 2024, from 6.94% as of December 31, 2023[86] - The company's total borrowings amounted to RMB 1,990,633 thousand as of June 30, 2024, compared to RMB 1,865,655 thousand as of December 31, 2023[85] - The company's property and equipment used as collateral increased to RMB 420,675 thousand as of June 30, 2024, from RMB 369,645 thousand as of December 31, 2023[86] - The company's inventory used as collateral slightly increased to RMB 107,340 thousand as of June 30, 2024, from RMB 105,016 thousand as of December 31, 2023[86] - The company's trade receivables aged within 3 months increased to RMB 9,169 thousand as of June 30, 2024, from RMB 8,444 thousand as of December 31, 2023[82] - The company's trade payables aged within 3 months decreased to RMB 50,184 thousand as of June 30, 2024, from RMB 128,830 thousand as of December 31, 2023[83] - The company's total collateralized assets amounted to RMB 2,225,021 thousand as of June 30, 2024, compared to RMB 2,144,075 thousand as of December 31, 2023[86] Risk Management and Internal Controls - The company has implemented a risk management and internal control system tailored to the characteristics of its auto finance lease business[37] - The credit risk management system includes pre-lease and post-lease credit risk management, with pre-lease assessments considering both qualitative and quantitative factors[38][39] - The company requires potential finance lease customers to meet initial requirements, including valid Chinese ID, driving license, and age between 18 and 60 years[40] - Post-lease, the company monitors customer payments and vehicle activities using pre-installed GPS tracking devices and its auto monitoring platform[41] IPO and Capital Utilization - The company utilized RMB 17.366 million (HKD 17.449 million) of the IPO proceeds for vehicle purchases, leaving RMB 75,000 (HKD 83,000) unused[55] - Only RMB 747,000 (HKD 689,000) of the RMB

Fundraising and Financial Allocation - The company successfully raised approximately HKD 28.8 million from its global offering after deducting underwriting commissions and expenses[5] - 60.6% of the net proceeds from the global offering, amounting to HKD 17,449,000, is allocated for purchasing vehicles, with HKD 13,955,000 already utilized[6] - 39.4% of the net proceeds, amounting to HKD 11,326,000, is designated for expanding the sales network, with no funds utilized yet[6] - The total net proceeds of HKD 28,775,000 have been fully accounted for, with HKD 13,955,000 already used and HKD 14,819,000 remaining[6] - The company plans to utilize the remaining proceeds for purposes disclosed in the prospectus, with expected timelines for unutilized funds based on future market conditions[6] Shareholding Structure - Major shareholders include Huang Wei with a controlled interest of 128,610,355 shares, representing 24.94% of the total shares[11] - Other significant shareholders include Mingzhu Capital with 63,543,294 shares (12.32%) and Precious Luck with 35,158,485 shares (6.82%)[11] - Liu Yonghui holds a 95.52% stake in Shenghui, indicating significant ownership concentration[18] - Teng Yongxiong owns 75% of Tengxin Investment, which fully owns Ideal Stand[16] - The largest shareholder, Mr. Huang Wei, holds 128,610,355 shares, representing 24.94% of the company[32] - Mr. Huang Wei also has beneficial ownership of 3,819,900 shares, accounting for 0.74%[32] - Mr. Ye Fuwai holds 954,529 shares through controlled corporations and 3,809,100 shares beneficially, both totaling 0.19% and 0.74% respectively[32] Corporate Governance and Management - The company’s board of directors maintains responsibility insurance to protect directors in the performance of their duties[3] - The company has no management or administrative contracts related to significant portions of its business during the reporting period[22] - The company has not reported any significant changes in shareholdings or interests as of December 31, 2023[21] - The ownership structure of Brown Oak Holdings Limited shows complex control with multiple entities involved[19] - Charming Tulip Holdings Limited is fully owned by Shanghai Xuan Te, with key individuals holding 47.18% and 32.27% stakes[20] - The company is subject to the Securities and Futures Ordinance regarding the disclosure of shareholdings and interests[21] - The company has a strong management team with over 18 years of experience in financial management, including previous roles in publicly listed companies[177] Employee Incentives and Stock Options - The company approved a pre-IPO share option plan on October 9, 2023, aimed at incentivizing employees and directors[7] - The maximum number of shares involved in the pre-IPO stock option plan is 38,671,875 shares[25] - The total number of stock options granted as of January 1, 2023, is 38,199,000, with 36,389,000 options remaining unexercised as of December 31, 2023[26] - The company has granted 26,020,000 stock options to 205 employees, with 1,810,000 options canceled[26] - The stock options granted will vest over five years, with 20% vesting each year based on specific conditions[28] Business Operations and Market Strategy - The group focuses on providing over 50 non-luxury car brands to meet customer demand primarily in China's second and third-tier cities[45] - The penetration rate of new and used car financing leasing services in China is expected to reach approximately 5.4% by 2027, indicating strong growth potential[46] - The group operates 77 sales sites across 25 provinces and municipalities in China, enhancing its sales network coverage[46] - The group emphasizes a customer-centric service philosophy to enhance customer experience and satisfaction[48] - The group continues to develop proprietary algorithms and data analysis capabilities in its risk management system to improve operational management[49] - For 2024, the group aims to maintain a stable growth approach while focusing on core business and enhancing brand value and influence[53] - The group plans to provide more comprehensive, high-quality, and professional vehicle services to a larger user base across the country[53] - The group has established a solid foundation in the automotive financing leasing business since 2017, including a dedicated service platform for new energy vehicles[46] Financial Performance - Revenue for the year ended December 31, 2023, was RMB 1,304,341 thousand, representing a 14.3% increase from RMB 1,141,526 thousand in 2022[74] - Gross profit for the same period was RMB 419,012 thousand, up 11.9% from RMB 374,447 thousand in 2022[74] - Profit before tax increased by 41.5% to RMB 129,850 thousand from RMB 91,773 thousand in the previous year[74] - The annual profit attributable to owners of the company rose by 39.7% to RMB 110,254 thousand compared to RMB 78,913 thousand in 2022[74] - The group’s financing lease receivables increased to RMB 689,221 thousand from RMB 560,061 thousand, indicating growth in the financing business[97] - Total capital expenditure for the year was approximately RMB 288.4 million, up from RMB 224.9 million in 2022, primarily for purchasing properties and equipment[98] - The net financial costs increased by 12.9% to RMB 161.5 million due to an increase in average loan balances[88] - The fair value gain on redeemable ordinary shares rose to RMB 96.4 million from RMB 47.3 million, reflecting a revaluation of the company's equity value[89] Expansion and Market Presence - The company has established multiple subsidiaries across various provinces, including Anhui, Chongqing, and Guangdong, enhancing its regional presence[195] - The company launched new subsidiaries in 2023, such as Putian Xidi Ride-Hailing Service Co., Ltd., indicating ongoing expansion efforts[195] - The company has a significant presence in Eastern China, with multiple branches in Fujian and Jiangsu provinces, contributing to its market share[195] - The company operates in both second and third-tier cities, which may provide growth opportunities in less saturated markets[195] - The establishment of subsidiaries in key regions like Guangxi and Gansu reflects the company's strategy to penetrate diverse markets[195] - The company is focusing on enhancing its operational footprint by establishing branches in strategic locations to capture market demand[195] - The company is committed to continuous growth and expansion, as evidenced by its recent openings and strategic positioning in various provinces[196] Social Responsibility and Community Engagement - The company actively engages in social responsibility initiatives to contribute to rural revitalization and societal development[72] - The company has received recognition for its contributions during the COVID-19 pandemic, highlighting its commitment to social responsibility[172] - The company was honored as a "2022 Taxpayer" by the Jin'an District Committee and Government, receiving public recognition for its contributions[192]

Financial Performance - The group's revenue for the year ended December 31, 2023, was RMB 1,304,341 thousand, representing an increase of 14.3% compared to RMB 1,141,526 thousand for the year ended December 31, 2022[3]. - Gross profit for the year ended December 31, 2023, was RMB 419,012 thousand, up from RMB 374,447 thousand in the previous year, reflecting a gross margin improvement[3]. - Operating profit increased to RMB 291,344 thousand for the year ended December 31, 2023, compared to RMB 234,791 thousand for the year ended December 31, 2022, marking a growth of 24.0%[3]. - The annual profit attributable to the owners of the company was RMB 110,254 thousand, a significant increase from RMB 78,913 thousand in the previous year, representing a growth of 39.9%[3]. - The total comprehensive income for the year ended December 31, 2023, was RMB 107,868 thousand, compared to RMB 63,102 thousand in the previous year, representing a growth of 71.0%[5]. - Profit before tax rose significantly by 41.5% to RMB 129,850 thousand, compared to RMB 91,773 thousand in 2022[17]. - Net profit reached RMB 109.8 million, representing a 42.5% increase compared to RMB 77.1 million in 2022[119]. Assets and Equity - Total assets as of December 31, 2023, amounted to RMB 2,920,886 thousand, an increase from RMB 2,598,757 thousand as of December 31, 2022[7]. - The company reported a total equity of RMB 781,450 thousand as of December 31, 2023, compared to RMB 506,614 thousand in the previous year, indicating a growth of 54.2%[9]. - The company’s cash and cash equivalents increased to RMB 267,733 thousand as of December 31, 2023, compared to RMB 201,078 thousand in the previous year, showing a growth of 33.0%[7]. - The group’s total current assets amounted to RMB 1,448.8 million as of December 31, 2023, an increase from RMB 1,241.3 million in the previous year[168]. - The group’s total liabilities decreased slightly to RMB 1,181.8 million as of December 31, 2023, from RMB 1,199.5 million in 2022[168]. - The asset-liability ratio improved to 67.4%, down from 75.1% in the previous year, reflecting better financial health[138]. Financing and Lease Income - The financing lease income for the year ended December 31, 2023, was RMB 294,220 thousand, up from RMB 262,498 thousand in the previous year, reflecting a growth of 12.1%[15]. - The total financing lease receivables amounted to RMB 1,656,601 thousand as of December 31, 2023, compared to RMB 1,470,331 thousand in 2022[45]. - The net amount of financing lease receivables increased to RMB 1,670,900 million from RMB 1,483,627 million, reflecting a growth of 12.6%[101]. - The financing lease receivables rose to RMB 1,621.1 million in 2023, up from RMB 1,358.2 million in 2022[114]. Expenses and Costs - The company’s total expenses for the year were RMB 1,117,699 thousand, an increase from RMB 964,043 thousand in 2022[32]. - The company’s financial costs increased to RMB 161,494 thousand, compared to RMB 143,018 thousand in the previous year[35]. - Sales and marketing expenses increased by 21.7% to RMB 98.7 million, driven by expanded sales efforts and increased employee benefits[161]. - Other income decreased by 14.1% to RMB 12.8 million, mainly due to a reduction in tax incentives and changes in fair value of investments[161]. Market and Operational Strategy - The company primarily operates in the automotive retail sector, providing vehicle financing leasing services in China[86]. - The company aims to focus on non-luxury vehicle models to meet the needs of customers in second and third-tier cities[91]. - The company plans to enhance its sales network coverage and deepen its market presence[91]. - The company is focused on exploring potential markets and enhancing brand value and influence in the automotive service industry[96]. - The penetration rate of new and used car financing leasing services in China is expected to reach approximately 5.4% by 2027, indicating strong growth potential[121]. Corporate Governance and Compliance - The company has complied with all applicable corporate governance codes since its listing date until December 31, 2023[192]. - The audit committee reviewed the accounting principles and policies adopted by the company and recommended the board to approve the audited consolidated financial statements for the year ended December 31, 2023[196]. - The company confirmed it has maintained the public float required by the listing rules as of the announcement date[198]. Employee and Workforce - As of December 31, 2023, the group employed 1,152 full-time employees, with 1,149 in China and 3 in Hong Kong[188].