Financial Performance - Revenue for the first half of 2024 reached RMB 180,139,000, representing a 69.2% increase compared to RMB 106,487,000 in the same period of 2023[6]. - Gross profit for the first half of 2024 was RMB 90,075,000, with a gross margin of 50.0%, compared to RMB 19,358,000 and a gross margin of 18.2% in the first half of 2023, marking a 365.3% increase[6]. - The company reported a profit of RMB 1,104,767,000 for the first half of 2024, a significant turnaround from a loss of RMB 3,729,144,000 in the same period of 2023[6]. - Adjusted net loss for the first half of 2024 was RMB (602,301,000), a slight increase from RMB (567,583,000) in the same period of 2023, reflecting a 6.1% deterioration[6]. - The company recorded a profit of RMB 1,104.8 million for the six months ended June 30, 2024, compared to a loss of RMB 3,729.1 million for the same period in 2023[36]. - The net profit for the first half of 2024 was RMB 1,104,767,000, compared to a net loss of RMB (3,729,144,000) in the same period of 2023[38]. - Basic earnings per share improved to RMB 15.1, compared to a loss of RMB 52.5 per share in the previous year[54]. - The company reported a net loss attributable to equity holders of RMB (827,025) thousand for the first half of 2024, a significant improvement from the loss of RMB (3,729,144) thousand in the same period of 2023[100]. Research and Development - R&D expenses accounted for 67% of total operating expenses in the first half of 2024, with the R&D team comprising 85% of the workforce[12]. - The company is developing the Huashan A2000 SoC, which is expected to achieve over 250 TOPS of design computing power, making it one of the highest-performing automotive-grade SoCs globally[12]. - Research and development expenses increased by 21.8% from RMB 564.4 million to RMB 687.3 million, mainly due to ongoing commercialization of the C1200 and development of the higher-performance A2000 chip[28]. - The company is actively exploring the application of AIGC and large models in imaging algorithms, proposing specific products and technical roadmaps for terminal-side deployment[17]. - Research and development expenses for the six months ended June 30, 2024, were RMB 105,121,000, up from RMB 91,285,000 in the same period of 2023, reflecting an increase of approximately 15.1%[170]. Product Development and Market Expansion - The A1000 high-performance chip has been mass-produced and supports L2 to L3 autonomous driving functions, with NoA functionality covering 13 provinces in China as of June 30, 2024[8]. - The launch of the Wudang C1200 series chip aims to integrate multiple domains, enhancing cost efficiency and user experience through a single SoC solution[8]. - The company is actively expanding its market presence in intelligent transportation, with multiple vehicle-road-cloud integration projects underway in Hubei, Shenzhen, and Luoyang[10]. - The commercialization of autonomous driving algorithms is expected to drive revenue growth and improve profit margins for the company[8]. - The company plans to launch the next-generation Huashan A2000 chip in Q4 2024, supporting L3 and above autonomous driving functions[17]. - The company is focusing on deepening collaborations with existing clients while actively seeking new high-quality clients in the intelligent imaging solutions sector[9]. - The company is expanding its product line and solutions to cover various applications, including passenger cars, commercial vehicles, and autonomous taxis[18]. Financial Position and Cash Flow - Cash and cash equivalents as of June 30, 2024, were RMB 920.0 million, down from RMB 1,306.6 million as of December 31, 2023[39]. - Net cash used in operating activities for the first half of 2024 was RMB (559,149,000), slightly improved from RMB (586,646,000) in the first half of 2023[39]. - Total borrowings as of June 30, 2024, amounted to RMB 232,040,000, while financial instruments issued to investors were RMB 10,726,924,000, down from RMB 12,589,493,000 at the end of 2023[40]. - The company's debt-to-equity ratio was 2.4% as of June 30, 2024, compared to 0% at the end of 2023[44]. - The net cash inflow from financing activities for the first half of 2024 was RMB 205,175,000, a decrease from RMB 819,171,000 in the same period of 2023[39]. - The company reported a significant increase in share-based payment expenses, rising to RMB 224,724 thousand in 2024 from RMB 161,853 thousand in 2023, an increase of approximately 39%[173]. Shareholder Information - The company was listed on the Hong Kong Stock Exchange on August 8, 2024, with a total of 569,169,253 shares issued[188][195]. - Mr. Dan holds a total of 70,976,255 shares, representing approximately 12.47% of the company's issued share capital[188][190]. - Ms. Pan directly holds 8,300,160 shares, accounting for 1.46% of the total issued share capital[194][195]. - Northern Light Venture Capital IV, Ltd. holds 55,700,778 shares, which is about 9.79% of the company's issued share capital[194][196]. - The company has a diverse shareholder base, with significant stakes held by various investment funds and trusts[194][196]. Risks and Liabilities - The company is exposed to various financial risks, including market risk, credit risk, and liquidity risk, and has not made significant changes to its risk management policies during the reporting period[71]. - The total liabilities increased to RMB 339,180,000 as of June 30, 2024, compared to RMB 296,451,000 as of December 31, 2023, indicating a growth of about 14.4%[160]. - The total current liabilities increased to RMB 325,895,000 as of June 30, 2024, from RMB 239,526,000 as of December 31, 2023, representing an increase of approximately 36%[160]. - The company has no significant contingent liabilities or major lawsuits as of June 30, 2024[45].

Financial Performance - For the six months ended June 30, 2024, total revenue reached RMB 180,139,000, representing a 69.2% increase compared to RMB 106,487,000 for the same period in 2023[2]. - Gross profit for the same period was RMB 90,075,000, which is 50.0% of total revenue, compared to RMB 19,358,000, or 18.2% of total revenue, in the previous year, marking a significant increase of 365.3%[2]. - The company reported a net profit attributable to equity holders of RMB 1,104,767,000 for the six months ended June 30, 2024, compared to a loss of RMB 3,729,144,000 in the same period in 2023[79]. - The basic earnings per share for the six months ended June 30, 2024, was RMB 15.1, a significant recovery from a loss of RMB 52.5 in 2023[53]. - Revenue increased by 69.2% from RMB 106.5 million for the six months ended June 30, 2023, to RMB 180.1 million for the six months ended June 30, 2024, primarily due to increased sales of autonomous driving products and solutions[23]. - Overall gross profit increased by 365.3% from RMB 19.4 million to RMB 90.1 million, with the overall gross margin rising from 18.2% to 50.0%[29]. - Revenue from autonomous driving products and solutions rose by 85.5% from RMB 90.2 million to RMB 167.3 million during the same period, driven by a richer product portfolio and larger customer engagements[24]. Research and Development - R&D expenses accounted for 67% of total operating expenses in the first half of 2024, with the R&D team comprising 85% of the workforce[10]. - Research and development expenses increased by 21.8% from RMB 564.4 million to RMB 687.3 million, primarily due to ongoing commercialization of the C1200 and development of the higher-performance A2000 chip[30]. - The company is actively exploring applications of AIGC and large models in imaging algorithms, aiming to enhance product offerings and technical roadmaps[19]. - The company is developing the Huashan A2000 SoC, which is expected to achieve over 250 TOPS of computing power, making it one of the highest-performing automotive-grade SoCs globally[10]. Product Development and Market Expansion - The A1000 high-performance chip has been mass-produced and supports L2 to L3 level autonomous driving functions, with deployment in 13 provinces in China[6]. - The company achieved a substantial increase in order backlog, indicating accelerated commercialization progress in the autonomous driving chip sector[5]. - The launch of the Wudang C1200 series chips aims to integrate smart driving and cockpit functions, enhancing cost efficiency and reducing communication latency[7]. - The company is actively expanding its business in intelligent transportation, leveraging policies that promote the application of autonomous driving technology[8]. - The company is accelerating the commercialization of the C1200 series products, optimizing systems to meet specific customer needs[17]. - The company plans to launch the next-generation A2000 chip in Q4 2024, supporting L3 and above autonomous driving functions[17]. - The company aims to expand its product line and solutions to meet the growing market demand for L2-L3 level autonomous driving[16]. Financial Position and Cash Flow - Cash and cash equivalents as of June 30, 2024, were RMB 920 million, down from RMB 1,306.6 million as of December 31, 2023[42]. - Total liabilities as of June 30, 2024, amounted to RMB 11,013.6 million, compared to RMB 12,644.9 million as of December 31, 2023[43]. - The company reported a net cash outflow from operating activities of RMB (559,149) thousand for the six months ended June 30, 2024, compared to RMB (586,646) thousand for the same period in 2023[60]. - The company anticipates that its expected cash flows from operations and existing financial resources will be sufficient to meet its financial obligations for at least the next twelve months[65]. Corporate Governance - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independence in governance[99]. - The company is committed to maintaining high standards of corporate governance and will regularly review its governance practices to ensure compliance[100]. - The audit committee, comprising three independent non-executive directors, has reviewed the unaudited interim financial information for the reporting period and believes it complies with applicable accounting standards[103]. - The company is listed on the Hong Kong Stock Exchange as of August 8, 2024, and will continue to comply with the corporate governance code[99]. Other Financial Metrics - Employee benefits expenses increased to RMB 634,819 thousand for the six months ended June 30, 2024, from RMB 521,017 thousand in 2023, reflecting a rise of 21.8%[74]. - General and administrative expenses increased by 38.8% from RMB 1,315 million for the six months ended June 30, 2023, to RMB 1,825 million for the six months ending June 30, 2024, mainly due to increased share-based compensation expenses for administrative personnel[32]. - Financial income increased by 146.9% from RMB 63 million for the six months ended June 30, 2023, to RMB 157 million for the six months ending June 30, 2024, primarily due to increased interest income from bank deposits[36]. - The company has no significant events that could impact the group since the end of the reporting period[97].