悦达国际控股(00629) - 2025 - 中期财报

Company Information This section details the company's governance structure, including its board and committees, along with essential registration and operational details Board of Directors and Committee Composition The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, supported by audit, remuneration, and nomination committees to ensure robust corporate governance - The Board members include Mr. Ji Hulin (Chairman), Mr. Wu Yinghua (resigned), Mr. Xue Zhicheng, Mr. Pan Mingfeng, Dr. Teng Songsong (appointed), and Mr. Wu Shengquan (resigned) as executive directors[5] - The Audit Committee is chaired by Mr. Zhang Tingji, the Remuneration Committee by Ms. Zhang Yan, and the Nomination Committee by Mr. Ji Hulin[5] Registration and Operational Information The company is registered in the Cayman Islands, with its principal place of business in Hong Kong, and its shares are listed on the Main Board of the Hong Kong Stock Exchange under stock code 00629 - The company's registered office is in the Cayman Islands, and its principal place of business is in Shun Tak Centre, Sheung Wan, Hong Kong[6] - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited under stock code 00629[6] Condensed Consolidated Financial Statements This section presents the company's financial performance, position, equity changes, and cash flows for the reporting period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, total revenue was 32,256 thousand RMB, a decrease from 38,299 thousand RMB in the prior period, with profit and total comprehensive income for the period at 15,353 thousand RMB, down 16.3% year-on-year Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 32,256 | 38,299 | -15.8 | | Other gains and (losses), net | (1,090) | 2,404 | -145.3 | | Net reversal of expected credit losses | 1,137 | 2,069 | -45.0 | | Finance costs | (2,280) | (6,269) | -63.6 | | Profit before tax | 23,921 | 26,198 | -8.7 | | Income tax expense | (8,568) | (7,856) | 9.1 | | Profit and total comprehensive income for the period | 15,353 | 18,342 | -16.3 | | Basic earnings per share | RMB 1.31 cents | RMB 1.57 cents | -16.6 | - The decrease in revenue was primarily due to reduced income from telecommunication factoring business, despite growth in traditional factoring business[8] Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets less current liabilities were 469,849 thousand RMB, an increase from 457,642 thousand RMB at December 31, 2024, with factoring receivables and other assets slightly decreasing overall but significantly increasing in the non-current portion Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | ASSETS | | | | | Non-current assets | 185,491 | 59,781 | 210.3 | | Current assets | 597,301 | 685,625 | -12.9 | | Factoring receivables and other assets (non-current) | 182,161 | 56,274 | 223.7 | | Factoring receivables and other assets (current) | 518,473 | 659,207 | -21.4 | | Cash and cash equivalents | 68,965 | 16,947 | 306.9 | | LIABILITIES | | | | | Current liabilities | 312,943 | 287,764 | 8.7 | | Bank and other borrowings | 120,000 | 80,000 | 50.0 | | Non-current liabilities | 15,835 | 14,055 | 12.7 | | EQUITY | | | | | Equity attributable to owners of the Company | 454,014 | 443,587 | 2.4 | | Total assets less current liabilities | 469,849 | 457,642 | 2.7 | - Factoring receivables and other assets within non-current assets significantly increased, while the current portion decreased, indicating an adjustment in asset structure[9] - Cash and cash equivalents significantly increased, and bank and other borrowings within current liabilities also rose[9] Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, equity attributable to owners of the Company increased from 443,587 thousand RMB at the beginning of the period to 454,014 thousand RMB, primarily driven by profit for the period despite dividend payments Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Equity attributable to owners of the Company at beginning of period | 443,587 | 431,698 | | Dividends paid | (4,926) | (4,569) | | Profit and total comprehensive income for the period | 15,353 | 18,342 | | Equity attributable to owners of the Company at end of period | 454,014 | 445,471 | - Profit and total comprehensive income for the period was the primary driver of equity growth, though dividends paid had a negative impact on equity[11] Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash from operating activities shifted from a net outflow to a net inflow year-on-year, net cash from financing activities decreased, and cash and cash equivalents at period-end significantly increased Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Net cash generated from (used in) operating activities | 30,533 | (65,759) | | Net cash used in investing activities | (449) | (382) | | Net cash generated from financing activities | 21,934 | 36,118 | | Net increase (decrease) in cash and cash equivalents | 52,018 | (30,023) | | Cash and cash equivalents at end of period | 68,965 | 11,038 | - Operating cash flow turned positive from negative, indicating improved cash generation from the company's core operations[13] - Significantly increased new bank and other borrowings, coupled with increased repayment of amounts due to related parties, led to a decrease in net cash from financing activities[13] Notes to the Condensed Consolidated Financial Statements This section provides detailed explanations and breakdowns of the figures presented in the condensed consolidated financial statements 1. Basis of Preparation and Principal Accounting Policies The condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, using the historical cost convention, with new HKFRS amendments applied for the first time this period having no material impact on financial position or performance - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[14] - The application of amendments to Hong Kong Financial Reporting Standards during this interim period, such as the amendment to HKAS 21 'Lack of Exchangeability', has not had a material impact on the Group's financial position or performance[16] 3. Revenue and Segment Information The company's revenue primarily stems from traditional and telecommunication factoring businesses, with total revenue for the period at 32,256 thousand RMB, a 15.8% year-on-year decrease, driven by growth in traditional factoring but a significant decline in telecommunication factoring income Revenue Composition (For the six months ended June 30) | Revenue Source | 2025 (thousand RMB) | 2024 (thousand RMB) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Traditional factoring business | 25,578 | 21,990 | 16.3 | | Telecommunication factoring business | 6,678 | 16,309 | -59.0 | | Total Revenue | 32,256 | 38,299 | -15.8 | - Traditional factoring business revenue grew by 16.3%, while telecommunication factoring business revenue decreased by 59.0%, leading to a reduction in total revenue[18] 4. Other Gains and (Losses), Net Other gains and losses, net, for the period amounted to (1,090) thousand RMB, a significant decrease from 2,404 thousand RMB in the prior period, primarily due to reduced fair value gains on financial assets at fair value through profit or loss Other Gains and (Losses), Net (For the six months ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Net exchange losses | (86) | (439) | | Loss on remeasurement of financial guarantee contracts | (1,004) | (1,429) | | Fair value gains on financial assets at fair value through profit or loss | – | 4,291 | | Loss on disposal of property, plant and equipment | – | (19) | | Total | (1,090) | 2,404 | - The prior period included 4,291 thousand RMB in fair value gains on financial assets, which was zero this period, significantly contributing to the overall decrease[20] 5. Finance Costs For the six months ended June 30, 2025, finance costs were 2,280 thousand RMB, a significant decrease from 6,269 thousand RMB in the prior period, primarily due to reduced interest incurred from asset-backed financing arrangements Finance Costs (For the six months ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 2,245 | 2,886 | | Interest incurred from asset-backed financing arrangements | – | 3,338 | | Interest on lease liabilities | 35 | 45 | | Total | 2,280 | 6,269 | - There was no interest incurred from asset-backed financing arrangements this period, compared to 3,338 thousand RMB in the prior period, which is the main reason for the decrease in finance costs[22] 6. Income Tax Expense For the six months ended June 30, 2025, income tax expense was 8,568 thousand RMB, an increase from 7,856 thousand RMB in the prior period, primarily due to changes in deferred tax Income Tax Expense (For the six months ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Current tax | 6,443 | 7,880 | | Deferred tax | 2,125 | (24) | | Total | 8,568 | 7,856 | - The applicable income tax rate for the Group's PRC subsidiaries is 25%[23] 8. Dividends The Company's directors have determined that no dividends will be paid for the six months ended June 30, 2025, with the 2024 final dividend of 4,926 thousand RMB recognized as a distribution during the period Dividends (For the six months ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Dividends recognized as distribution to owners of the Company during the period | 4,926 | 4,569 | - The Board does not recommend the payment of an interim dividend for the first half of 2025[26] 9. Earnings Per Share For the six months ended June 30, 2025, basic earnings per share decreased to RMB 1.31 cents from RMB 1.57 cents in the prior period, with no diluted earnings presented due to the absence of potential ordinary shares Earnings Per Share Calculation (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (thousand RMB) | 15,353 | 18,342 | | Weighted average number of ordinary shares (shares) | 1,168,626,516 | 1,168,626,516 | | Basic earnings per share | RMB 1.31 cents | RMB 1.57 cents | - The decrease in basic earnings per share is consistent with the downward trend in profit for the period[28] 10. Movements in Property, Plant and Equipment and Right-of-Use Assets For the six months ended June 30, 2025, the Group made no acquisitions of property, plant and equipment, but recognized 467 thousand RMB in right-of-use assets and lease liabilities from a new staff dormitory lease agreement - The amount of property, plant and equipment acquired this period was zero, compared to 6 thousand RMB in the prior period[29] - Due to a new lease agreement, 467 thousand RMB in right-of-use assets and 467 thousand RMB in lease liabilities were recognized[29] 11. Factoring Receivables and Other Assets As of June 30, 2025, total factoring receivables were 697,889 thousand RMB, a slight decrease from 711,242 thousand RMB at December 31, 2024, with a significant increase in the non-current portion and a decrease in the current portion Factoring Receivables and Other Assets (As of June 30) | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Traditional factoring business | 667,389 | 649,620 | | Telecommunication factoring business | 30,500 | 61,622 | | Total factoring receivables | 697,889 | 711,242 | | Current portion | 518,473 | 659,207 | | Non-current portion | 182,161 | 56,274 | - Telecommunication factoring receivables significantly decreased, while traditional factoring receivables increased[30] - Non-current factoring receivables increased from 56,274 thousand RMB to 182,161 thousand RMB, indicating a higher proportion of long-term receivables[30] 12. Amounts Due from/to Related Parties As of June 30, 2025, amounts due from related parties were 9,863 thousand RMB, and amounts due to related parties were 182,176 thousand RMB, all of which are unsecured, interest-free, and repayable on demand Amounts Due from Related Parties (As of June 30) | Name of Related Party | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Yueda Mining Co., Ltd. | 4,153 | 4,170 | | Yueda Capital (Hong Kong) Co., Limited | 5,710 | 5,301 | | Total | 9,863 | 9,471 | Amounts Due to Related Parties (As of June 30) | Name of Related Party | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Yueda Capital Co., Ltd. | 106,600 | 117,000 | | Yueda Capital (Hong Kong) | 71,202 | 71,313 | | Yueda Group (Hong Kong) Co., Limited | 4,374 | 4,440 | | Total | 182,176 | 192,753 | - Amounts due to related parties decreased, primarily from Yueda Capital Co., Ltd[32] 13. Other Payables and Liabilities As of June 30, 2025, total other payables and liabilities were 7,583 thousand RMB, a decrease from 13,350 thousand RMB at December 31, 2024, mainly due to reduced accrued staff costs and other payables Other Payables and Liabilities (As of June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Accrued staff costs | 866 | 2,343 | | Other payables and accrued expenses | 6,717 | 11,007 | | Total | 7,583 | 13,350 | - Both accrued staff costs and other payables significantly decreased[33] 14. Bank and Other Borrowings As of June 30, 2025, total bank and other borrowings repayable within one year were 120,000 thousand RMB, an increase from 80,000 thousand RMB at December 31, 2024, primarily due to new other loans Bank and Other Borrowings (As of June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Secured bank loans | 50,000 | 80,000 | | Other loans | 70,000 | – | | Total | 120,000 | 80,000 | - Total new borrowings obtained this period amounted to 140,000 thousand RMB, compared to 100,000 thousand RMB in the prior period[34] - Bank loans are secured by the Group's factoring receivables and guaranteed by Jiangsu Yueda Group Co., Ltd[35] 15. Share Capital As of June 30, 2025, the company's issued and fully paid share capital remained unchanged at 1,168,626,516 shares, amounting to 105,965 thousand RMB, consistent with the prior period and year-end Share Capital Information (As of June 30) | Item | Number of Shares | Amount (thousand HKD) | Amount (thousand RMB) | | :--- | :--- | :--- | :--- | | Authorised share capital (par value HKD 0.10 per share) | 2,000,000,000 | 200,000 | Not applicable | | Issued and fully paid share capital (par value HKD 0.10 per share) | 1,168,626,516 | 116,863 | 105,965 | - The share capital structure remained unchanged during the period[36] 16. Related Party Disclosures The Group, ultimately controlled by the Chinese government, engaged in various related party transactions with Jiangsu Yueda Group subsidiaries, primarily involving traditional factoring business revenue and receivables, while key management personnel compensation decreased - The Company is ultimately controlled by the Chinese government, with its ultimate parent company being Jiangsu Yueda Group Co., Ltd., which is controlled by Yancheng Municipal People's Government[37] Related Party Transactions with Jiangsu Yueda Subsidiaries (For the six months ended June 30) | Name of Related Party | Nature of Transaction | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | :--- | | Jiangsu Yueda Green Building Technology Co., Ltd. | Revenue from traditional factoring business | 54 | 3,033 | | Jiangsu Yueda Saifu Energy Saving Technology Co., Ltd. | Revenue from traditional factoring business | 12 | 126 | - Revenue from traditional factoring business with related parties significantly decreased[39] Key Management Personnel Compensation (For the six months ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Short-term benefits | 1,257 | 1,548 | | Post-employment benefits | 224 | 155 | | Total | 1,481 | 1,703 | Management Discussion and Analysis This section provides an overview of the Group's financial performance, business operations, future plans, and financial resources, along with corporate governance and employee policies Financial Performance and Interim Dividends For the six months ended June 30, 2025, the Group's operating revenue was 32,256 thousand RMB, profit and total comprehensive income for the period was 15,353 thousand RMB, and basic earnings per share was RMB 1.31 cents, all decreasing year-on-year, with the Board not recommending an interim dividend Key Financial Indicators (For the six months ended June 30) | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Operating revenue | 32,256 | 38,299 | -15.8 | | Profit and total comprehensive income for the period | 15,353 | 18,342 | -16.3 | | Basic earnings per share | RMB 1.31 cents | RMB 1.57 cents | -16.6 | - The decrease in operating revenue was mainly due to a weaker-than-expected recovery in China's consumer market and the Group's business rebalancing, leading to reduced income from telecommunication factoring business[44] - The Board does not recommend the payment of an interim dividend for the period[45] Review of Commercial Factoring Business The Group primarily engages in commercial factoring, encompassing traditional and telecommunication factoring, with traditional factoring revenue growing by serving state-owned enterprise clients under stringent risk control, while telecommunication factoring revenue significantly declined but mitigated risk through AI and manual assessment - Commercial factoring business recorded operating revenue of 32,256 thousand RMB for the period, a year-on-year decrease[47] - Traditional factoring business had a total principal amount of financing receivables of approximately 667,000 thousand RMB, with interest income of approximately 25,503 thousand RMB, primarily serving large state-owned enterprises[48] - Telecommunication factoring business service fee income was approximately 6,678 thousand RMB, with both the number of end customers and total outstanding amount significantly decreasing[54] - Telecommunication factoring business conducts credit assessments using AI systems and manual evaluation, and collaborates with professional technical service companies to share factoring financing losses, thereby mitigating risk[56][57] Traditional Factoring Business Traditional factoring business financing receivables principal increased to 667,000 thousand RMB, with significant growth in interest income, primarily serving state-owned enterprise clients in the Yangtze River Delta region through stringent due diligence and risk assessment processes Traditional Factoring Business Financing Receivables Principal and Number of Clients (As of June 30) | Industry | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | June 30, 2025 (Number of Clients) | December 31, 2024 (Number of Clients) | | :--- | :--- | :--- | :--- | :--- | | Grain Sales | 50,000 | 50,000 | 1 | 1 | | Power Facilities | – | 45,000 | – | 1 | | Metal Material Trading | 45,000 | 45,000 | 1 | 1 | | Bulk Commodity Trading | 20,000 | 50,000 | 1 | 1 | | Building Materials Wholesale | 50,000 | – | 1 | – | | Engineering Construction | 502,000 | 460,060 | 11 | 12 | | Total | 667,000 | 650,060 | 15 | 16 | - The engineering construction industry accounted for 75.3% of the total principal amount of traditional factoring business financing receivables, making it the primary source of business[52] - All traditional factoring receivables are secured by amounts due from customers and are not overdue[52] Telecommunication Factoring Business Telecommunication factoring business service fee income significantly decreased to 6,678 thousand RMB, with fewer end customers, while the company effectively manages end-customer default risk through AI and manual credit assessment, and debt collection measures in collaboration with third-party payment institutions - The number of end customers decreased from 225,000 to 145,000, and the total outstanding amount decreased from 63,564 thousand RMB to 31,332 thousand RMB[54] - The Group has established cooperation arrangements with China's three major telecommunication operators, conducting business through third-party payment platforms[55] - Risk control measures include supplier identity verification, AI system assessment of default probability, manual contact with emergency contacts, and debt collectors for overdue payments[56][57] Aging Analysis and Impairment of Traditional and Telecommunication Factoring Businesses As of June 30, 2025, all outstanding financing receivables for traditional factoring were within one year and not overdue, while telecommunication factoring receivables were primarily over one year, with the Group using an expected credit loss model for impairment assessment, resulting in a net reversal of impairment losses of (1,137) thousand RMB for the period Aging Analysis of Outstanding Financing Receivables Principal (As of June 30) | Aging | Traditional Factoring Business (2025, thousand RMB) | Telecommunication Factoring Business (2025, thousand RMB) | Total (2025, thousand RMB) | | :--- | :--- | :--- | :--- | | Within 1 year | 667,000 | – | 667,000 | | Over 1 year but within 2 years | – | 9,974 | 9,974 | | Over 2 years | – | 21,358 | 21,358 | | Total | 667,000 | 31,332 | 698,332 | Movements in Impairment Provisions for Factoring Receivables (As of June 30) | Item | Traditional Factoring Business (thousand RMB) | Telecommunication Factoring Business (thousand RMB) | Total (thousand RMB) | | :--- | :--- | :--- | :--- | | As at December 31, 2024 | 1,507 | 1,942 | 3,449 | | Net reversal of impairment losses | (27) | (1,110) | (1,137) | | As at June 30, 2025 | 1,480 | 832 | 2,312 | - Traditional factoring business uses an individual assessment approach with an expected loss rate of approximately 0.22%, while telecommunication factoring business uses a collective assessment approach, adjusting loss rates based on internal credit ratings and forward-looking information[61][62] Business Plan and Prospects The Group plans to further develop its existing factoring financial services and telecommunication factoring businesses, actively exploring potential investment opportunities, including the possible acquisition of Chengdu Nuoyide Medical Laboratory Co., Ltd., and will focus on factoring and seek diversified development in the second half of the year - The Group will continue to expand its traditional factoring business through its network of state-owned enterprises in China and conduct more stringent due diligence on potential new clients[67] - Telecommunication factoring services have a higher revenue rate than traditional factoring, and the Group has established cooperation arrangements with China's three major telecommunication operators[68] - The company intends to acquire a 30% equity interest in Chengdu Nuoyide Medical Laboratory Co., Ltd. (with an investment of 30,000 thousand RMB) and a 22% equity interest (for a consideration of 22,000 thousand RMB), making it a non-wholly owned subsidiary[69] - The directors are committed to seeking more business opportunities in other industries, such as the financial sector, to diversify the Group's business and enhance long-term shareholder value[72] Liquidity and Financial Resources As of June 30, 2025, the Group's current assets were 597,301 thousand RMB, with a significant increase in cash and cash equivalents, a 2.4% growth in net assets, and a gearing ratio of approximately 42.0%, and the Group will continue to utilize internal resources, bank, and other borrowings for business development Liquidity and Financial Resources Overview (As of June 30) | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Current assets | 597,301 | 685,625 | | Cash and cash equivalents | 68,965 | 16,947 | | Net assets | 454,014 | 443,587 | | Gearing ratio | 42.0% | 40.5% | | Bank and other borrowings | 120,000 | 80,000 | - The Group's monetary assets, liabilities, and transactions are primarily denominated in RMB and HKD, with no hedging against exchange rate risk[75] - The Group's credit facilities are secured by total factoring receivables of 147,000 thousand RMB, a significant increase from 50,000 thousand RMB at the end of last year[78] Employees and Remuneration Policy As of June 30, 2025, the Group employed 20 staff across Hong Kong and mainland China, with remuneration policies regularly reviewed and employees provided with social insurance, MPF, and training courses, experiencing no significant recruitment difficulties or staff turnover during the period - The Group employed 20 staff in management, administration, and commercial factoring-related businesses across Hong Kong and mainland China[79] - Remuneration policies are regularly reviewed based on employee performance, experience, and industry practice, providing social insurance, MPF, and training courses[79] Corporate Governance The Group has complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, except for one non-executive director's absence from the AGM, with all directors confirming compliance with the Model Code for Securities Transactions, and the audit, remuneration, and nomination committees operating effectively - The Group has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules, except for Mr. Li Biao, an executive director, who was unable to attend the annual general meeting[81] - All directors have confirmed their compliance with the Model Code for Securities Transactions by Directors of Listed Issuers throughout the period[82] - The Audit Committee, Remuneration Committee, and Nomination Committee have all been established and fulfilled their duties, including reviewing financial statements, internal controls, remuneration policies, and board composition[83][84][85] Other Information This section covers details regarding directors' and major shareholders' interests, the share option scheme, and the current board composition Directors' and Major Shareholders' Interests As of June 30, 2025, certain directors held shares in the Company, with Mr. Ji Hulin, Mr. Hu Huaimin, and Mr. Li Biao as beneficial owners, and Mr. Xue Zhicheng deemed to own shares held by his spouse, while major shareholder Jiangsu Yueda Group Co., Ltd. and its subsidiaries collectively held 69.94% of the Company's issued share capital Directors' Interests in the Company's Ordinary Shares (As of June 30) | Name | Capacity | Number of Shares | Approximate Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | | Mr. Ji Hulin | Beneficial owner | 166,666 | 0.01% | | Mr. Xue Zhicheng | Deemed interest | 650,000 | 0.06% | | Mr. Hu Huaimin | Beneficial owner | 2,424,666 | 0.21% | | Mr. Li Biao | Beneficial owner | 690,640 | 0.06% | Major Shareholders' Interests in the Company's Ordinary Shares (As of June 30) | Name of Shareholder | Capacity | Number of Shares | Approximate Percentage of Total Issued Share Capital of the Company | | :--- | :--- | :--- | :--- | | Yueda Capital (Hong Kong) Co., Limited | Beneficial owner | 608,311,000 | 52.05% | | Yueda Group (Hong Kong) Co., Limited | Beneficial owner | 208,979,333 | 17.88% | | Yueda Capital Co., Ltd. | Interest in controlled corporation | 608,311,000 | 52.05% | | Jiangsu Yueda Group Co., Ltd. | Interest in controlled corporation | 817,290,333 | 69.94% | - Jiangsu Yueda Group Co., Ltd. indirectly controls the majority of the Company's equity through its subsidiaries[88] Share Option Scheme The Company adopted a share option scheme on May 20, 2021, to encourage and reward participants contributing to the Group, with no outstanding share options under the scheme as of June 30, 2025 - The primary purpose of the Share Option Scheme is to provide incentives or rewards to selected participants who have contributed to the Group[89] - As of June 30, 2025, and December 31, 2024, there were no outstanding share options under the Share Option Scheme[89] Board Composition As of the reporting date, the Board comprises four executive directors, two non-executive directors, and three independent non-executive directors, ensuring diversity and independence Board Members List (As of Reporting Date) | Executive Directors | Non-executive Directors | Independent Non-executive Directors | | :--- | :--- | :--- | | Ji Hulin | Li Biao | Liu Yongping | | Xue Zhicheng | Hu Huaimin | Zhang Tingji | | Pan Mingfeng | | Zhang Yan | | Teng Songsong | | |