新晨动力(01148) - 2025 - 中期业绩

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's profit and basic EPS decreased despite revenue growth, primarily due to reduced impairment loss reversals and increased administrative and R&D expenses Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,804,434 | 2,619,532 | +7.06% | | Cost of sales | (2,672,046) | (2,509,663) | +6.47% | | Gross profit | 132,388 | 109,869 | +20.49% | | Other income | 27,264 | 26,748 | +1.93% | | Net impairment losses | (166) | 49,117 | -100.34% | | Other gains and losses | (1,809) | (588) | +207.65% | | Selling and distribution expenses | (14,257) | (16,559) | -13.90% | | Administrative expenses | (89,856) | (81,803) | +9.84% | | Finance costs | (19,774) | (27,714) | -28.65% | | Profit before tax | 17,747 | 23,811 | -25.47% | | Income tax expense | (1,254) | (1,686) | -25.62% | | Profit for the period | 16,493 | 22,125 | -25.49% | | Basic earnings per share (RMB) | 0.013 | 0.017 | -23.53% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets decreased while net assets slightly increased, with net current assets turning positive due to reduced trade and other receivables and controlled current liabilities Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Assets | | | | | Non-current assets | 2,122,531 | 2,248,001 | -5.60% | | Current assets | 2,930,417 | 3,229,708 | -9.26% | | Total assets | 5,052,948 | 5,477,709 | -7.76% | | Liabilities | | | | | Current liabilities | 2,919,842 | 3,293,002 | -11.33% | | Non-current liabilities | 362,423 | 430,553 | -15.82% | | Net assets | 1,770,683 | 1,754,154 | +0.94% | | Net current assets/(liabilities) | 10,575 | (63,294) | Turned positive | | Bank balances and cash | 92,457 | 85,570 | +8.05% | | Trade and other receivables | 2,110,207 | 2,528,579 | -16.54% | | Trade and other payables | 611,642 | 566,350 | +7.99% | Notes to the Condensed Consolidated Financial Statements This section details the basis of preparation, accounting policies, segment information, and specific changes in assets and liabilities, providing supplementary information for understanding the Group's financial position and operating results 1. Basis of Preparation The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules, presented in RMB - Financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules[8] - All financial data are presented in RMB[9] 2. Principal Accounting Policies The financial statements are prepared on a historical cost basis, with new HKAS 21 (Revised) having no significant impact, and future standards not expected to cause material effects - Financial statements are prepared on a historical cost basis, with certain financial instruments measured at fair value[10] - The adoption of HKAS 21 (Revised) "Lack of Exchangeability" has no significant impact on the financial statements[11] - Newly issued and amended HKFRSs not yet effective are not expected to have a significant impact on the financial statements[12] 3. Revenue and Segment Information Group revenue primarily from gasoline and diesel engines and engine components, with all external customer revenue from China, and operating results reviewed by product type 3.1 Segment Revenue and Segment Results Gasoline engine segment revenue and results grew significantly, diesel engine segment turned profitable, while engine components revenue and results declined due to changing customer demand Segment Revenue and Results Analysis | Segment | June 30, 2025 Revenue (RMB '000) | June 30, 2024 Revenue (RMB '000) | Revenue YoY Change (%) | June 30, 2025 Results (RMB '000) | June 30, 2024 Results (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Gasoline Engines | 2,389,029 | 2,174,521 | +9.86% | 74,051 | 30,439 | | Diesel Engines | 53,832 | 46,652 | +15.39% | 5,929 | (2,150) | | Engine Components | 361,573 | 398,359 | -9.23% | 52,408 | 81,580 | | Total Segment and Consolidated | 2,804,434 | 2,619,532 | +7.06% | 132,388 | 109,869 | - No inter-segment sales occurred during the period[14] 3.2 Segment Assets and Liabilities Total assets and liabilities by reportable operating segment are not presented as the Board reviews them on a consolidated basis - Detailed financial information on segment assets and liabilities is not presented[17] 3.3 Geographical Information The Group's majority operations and non-current assets are located in China, where all external customer revenue is generated - The Group's principal operations and non-current assets are located in China[18] - All external customer revenue is generated from China[18] 4. Other Income Other income slightly increased, driven by significant growth in bad debts recovered and compensation income, offsetting reduced government grants and recoverable VAT Other Income Components | Item | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Bank interest income | 1,125 | 966 | | Bad debts recovered | 5,412 | – | | Additional recoverable VAT granted by local tax bureau | 4,034 | 6,379 | | Compensation income | 5,700 | – | | Government grants | 3,883 | 11,226 | | Imputed interest income from loan to a shareholder | 558 | 535 | | Rental income under operating leases | 4,349 | 4,560 | | Utility income | 2,203 | 3,082 | | Total | 27,264 | 26,748 | - Other income increased slightly by 1.93% year-on-year[47] 5. Net Impairment Losses / Reversals of Impairment Losses Net impairment losses were recognized this period, a stark contrast to last year's large reversals, primarily impacting trade and other receivables and amounts due from related companies Net Impairment Losses | Item | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade and other receivables | (166) | 11,779 | | Amounts due from related companies | – | 37,338 | | Total | (166) | 49,117 | - Impairment loss reversals significantly decreased, turning from a reversal of approximately RMB 49.12 million in the first half of 2024 to an impairment loss of approximately RMB 0.20 million recognized in the first half of 2025[48] 6. Other Gains and Losses This period recorded a larger loss in other gains and losses, mainly due to increased losses from the disposal of property, plant, and equipment Other Gains and Losses Components | Item | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Net foreign exchange gains | 7 | – | | Gains on disposal of other materials | 2,418 | 2,120 | | Losses on disposal of property, plant and equipment | (3,577) | (1,308) | | Net losses from receivables measured at fair value through other comprehensive income | (657) | (1,400) | | Total | (1,809) | (588) | - Other gains and losses increased from a loss of RMB 0.59 million in the first half of 2024 to a loss of RMB 1.81 million in the first half of 2025, primarily due to losses on disposal of fixed assets[48] 7. Profit Before Tax Profit before tax decreased by 25.47%, influenced by reduced impairment reversals and increased administrative and R&D expenses, while employee benefits and depreciation remained stable Profit Before Tax Components | Item | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Total staff costs | 66,044 | 62,663 | | Total depreciation and amortisation | 131,851 | 130,908 | | Profit before tax | 17,747 | 23,811 | - Profit before tax decreased by 25.47%, mainly due to reduced impairment reversals and increased administrative and R&D expenses[49] 8. Income Tax Expense Income tax expense decreased by 26.04%, mainly due to reduced deferred tax credits from increased intangible asset amortization, with some subsidiaries enjoying preferential tax rates Income Tax Expense Components | Item | June 30, 2025 (RMB '000) | June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | PRC corporate income tax – current tax | 1,977 | 662 | | PRC corporate income tax – deferred tax | (723) | 1,024 | | Total | 1,254 | 1,686 | - Mianyang Xinchen is eligible for a reduced corporate income tax rate of 15% from 2021 to 2030[22] - Xinchen Power Machinery (Shenyang) Co., Ltd., as a high-tech enterprise, enjoys a preferential corporate income tax rate of 15%[23] 9. Dividends The Company neither paid nor declared any dividends for the periods ended June 30, 2025 and 2024, with no proposed dividends since the reporting period end - The Company did not pay or declare any interim dividends during the reporting period[25][66] 10. Earnings Per Share Basic earnings per share decreased due to lower profit for the period, with no diluted earnings per share presented as there were no potential dilutive ordinary shares Basis for Earnings Per Share Calculation | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (RMB '000) | 16,493 | 22,125 | | Weighted average number of ordinary shares | 1,282,211,794 | 1,282,211,794 | | Basic earnings per share (RMB) | 0.013 | 0.017 | - Diluted earnings per share are not presented due to the absence of potential dilutive ordinary shares[26] 11. Movements in Property, Plant and Equipment and Intangible Assets The Group invested in property, plant and equipment to enhance capacity and capitalized R&D costs for new engine technologies, while disposals of assets led to increased losses - Acquisitions of property, plant and equipment amounted to approximately RMB 689 thousand (2024: RMB 984 thousand) for capacity enhancement[27] - Losses on disposal of certain plant and equipment amounted to approximately RMB 3,577 thousand (2024: RMB 1,308 thousand)[27] - Additions to construction in progress amounted to approximately RMB 11,799 thousand (2024: RMB 14,211 thousand), primarily for expanding production facilities and capacity[27] - Development costs for new automobile engine technology knowledge of approximately RMB 9,592 thousand (2024: RMB 8,841 thousand) were capitalized to expand the range of gasoline and diesel engine products[28] 12. Trade and Other Receivables Total trade and other receivables significantly decreased, with a reduction in trade receivables due within one month, while credit loss provisions remained stable Trade and Other Receivables Components | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables, net | 1,890,844 | 2,354,559 | | Bills receivable | 176,886 | 122,114 | | Prepayments for raw materials and engine components | 32,930 | 29,820 | | Other receivables | 9,547 | 22,086 | | Total | 2,110,207 | 2,528,579 | Ageing Analysis of Trade Receivables (Net of Expected Credit Loss Provision) | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 month | 1,780,334 | 2,297,558 | | Over 1 month but within 2 months | 100,842 | 38,965 | | Over 2 months but within 3 months | 5,693 | 5,055 | | Over 3 months but within 6 months | 2,693 | 12,235 | | Over 6 months but within 1 year | 587 | 104 | | Over 1 year | 695 | 642 | | Total | 1,890,844 | 2,354,559 | - The provision for expected credit losses on trade receivables was RMB 294,573 thousand as of June 30, 2025, largely consistent with RMB 294,407 thousand as of December 31, 2024[30] 13. Amounts Due from Related Companies Amounts due from related companies significantly increased, primarily from Wuliangye Group for trade-related items, with expected credit loss provisions remaining unchanged Analysis of Amounts Due from Related Companies | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-trade related | 648 | 26 | | Trade related | 51,661 | 22,369 | | Total | 52,309 | 22,395 | - Trade-related amounts due from Mianyang Xinhua Internal Combustion Engine (Wuliangye Group) increased from zero at the end of 2024 to RMB 39,015 thousand as of June 30, 2025[32] - The provision for expected credit losses on amounts due from related companies was RMB 267,211 thousand as of June 30, 2025, consistent with December 31, 2024[32][34] 14. Trade and Other Payables Total trade and other payables increased, mainly due to growth in trade payables and bills payable, with customer advances (contract liabilities) also rising Trade and Other Payables Components | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade payables | 282,617 | 246,313 | | Bills payable | 254,773 | 242,557 | | Accrued construction costs | 9,029 | 7,688 | | Accrued salaries and welfare | 13,940 | 21,992 | | Customer advances (contract liabilities) | 18,445 | 12,999 | | Warranty provision | 13,671 | 12,307 | | Retention money | 10,594 | 10,552 | | Provision for operating expenses | 5,003 | 4,500 | | Other payables | 3,570 | 7,442 | | Total | 611,642 | 566,350 | - The credit period for trade payables and bills payable is generally within 3 months and 3 to 6 months, respectively[37] - Customer advances represent contract liabilities, with the opening balance fully recognized as revenue from goods sold[36] 15. Amounts Due to Related Companies Total amounts due to related companies increased, driven by a significant rise in trade-related payables to Jinbei (Shenyang) Automobile Co., Ltd. under Brilliance China Group, while Wuliangye Group's trade payables decreased Analysis of Amounts Due to Related Companies | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Brilliance Group trade related | 30,008 | 7,309 | | Wuliangye Group trade related | 28,077 | 38,487 | | Brilliance China Group non-trade related | 1,083 | 1,616 | | Total | 59,778 | 48,022 | - Trade-related amounts due to Jinbei (Shenyang) Automobile Co., Ltd. increased from zero at the end of 2024 to RMB 21,859 thousand as of June 30, 2025[39] - Trade-related amounts are interest-free, unsecured, with a credit period of 3 to 6 months; non-trade related amounts are interest-free, unsecured, and repayable on demand[41][42] 16. Lease Liabilities Total lease liabilities decreased, with reductions in amounts due within one year and between two to five years Lease Liabilities Maturity Analysis | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Due within 1 year | 148,582 | 152,270 | | Due in 2nd to 5th year | 203,204 | 275,681 | | Total minimum lease payments | 351,786 | 427,951 | | Future finance charges on lease liabilities | (19,455) | (28,009) | | Present value of lease liabilities | 332,331 | 399,942 | 17. Share Capital The Company's authorized and issued and fully paid share capital remained unchanged during the reporting period - Authorized share capital is 8,000,000,000 shares with a par value of HKD 0.01 each[44] - Issued and fully paid share capital is 1,282,211,794 shares, presented as RMB 10,457 thousand in the condensed consolidated statement of financial position[44] Management Discussion and Analysis This section reviews the Group's operating results, liquidity, and future strategies, including growth in range-extended gasoline engines, challenges in engine components, and exploration of low-altitude economy and in-house range extender R&D Business Review First-half revenue growth was driven by range-extended gasoline engines, but engine component revenue declined, with improved gross margin offset by reduced impairment reversals and increased administrative expenses, leading to lower profit - Unaudited total revenue was approximately RMB 2,804,440 thousand, a year-on-year increase of approximately 7.06%, primarily due to increased transaction volume of range-extended gasoline engines[45] - Engine sales increased by approximately 12.38% to approximately 236,000 units, mainly driven by range-extended gasoline engines[45] - Revenue from the engine components segment decreased by approximately 9.23%, mainly due to customer demand shifting from traditional engine models to pure electric models[46] - Gross profit margin increased from approximately 4.19% in the first half of 2024 to approximately 4.72% in the first half of 2025, mainly due to higher sales of traditional gasoline and diesel engines with slightly higher gross margins[47] - Profit for the period decreased by approximately 25.49% to RMB 16,490 thousand, primarily due to reduced impairment reversals and increased administrative and R&D expenses[49][50] Liquidity and Financial Resources Bank balances and cash increased, as did pledged/restricted bank deposits, with the debt-to-equity ratio decreasing and the gearing ratio slightly rising due to increased bank borrowings Liquidity and Financial Resources Key Data | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Bank balances and cash | 92,457 | 85,570 | | Pledged/restricted bank deposits | 122,258 | 101,422 | | Trade and other payables | 585,060 | 566,350 | | Borrowings due within one year | 484,336 | 446,153 | | Borrowings due after one year | 157,500 | 156,751 | Pledge of Assets The Group pledged land use rights, buildings, plant and machinery, and bank deposits to secure credit facilities and other borrowings - Land use rights, buildings, plant and machinery with a total value of approximately RMB 392,510 thousand (2024 year-end: RMB 290,890 thousand) were pledged to banks[52] - Bank deposits of approximately RMB 115,780 thousand (2024 year-end: RMB 100,590 thousand) were pledged to banks[52] - No trade receivables were pledged to obtain general bank financing[52] Gearing Ratio The debt-to-equity ratio decreased due to reduced amounts payable to an associate, while the gearing ratio slightly increased due to higher total bank borrowings - The debt-to-equity ratio was approximately 1.85 (2024 year-end: 2.12), with the decrease mainly due to reduced amounts payable to an associate[53] - The gearing ratio was approximately 36.25% (2023 year-end: 34.37%), with the slight increase mainly due to higher total bank borrowings during the period[53] Contingent Liabilities The Group has contingent liabilities related to endorsed and discounted bills receivable, but default risk is considered very low as bills are issued and guaranteed by reputable PRC banks - The Group endorsed and discounted certain bills receivable to settle trade and other payables or raise cash[54] - The default risk is very low as the bills are issued and guaranteed by reputable banks in the PRC[54] Capital Commitments The Group's capital commitments remained stable, primarily for acquiring property, plant and equipment, capital injection into an associate, and developing new engines - Total capital commitments amounted to approximately RMB 125,490 thousand (2024 year-end: RMB 125,490 thousand)[55] - Contracted capital commitments of approximately RMB 90,030 thousand (2024 year-end: RMB 90,060 thousand) were mainly related to capital expenditures for acquiring property, plant and equipment, capital injection into an associate, and developing new engines[55] Foreign Exchange Risk The Group faces foreign currency translation risk as some assets and liabilities are denominated in USD and HKD, and will continue to monitor and potentially hedge this risk - The Group's functional currency is RMB, but some assets and liabilities are denominated in USD and HKD, exposing it to foreign currency translation risk[56] - The Group will continue to monitor foreign exchange risk and may consider hedging when necessary[57] Employees and Remuneration Policies Both employee headcount and costs increased, with the Group committed to competitive remuneration based on performance and industry practices - As of June 30, 2025, the Group employed approximately 1,004 employees (2024: 935 employees)[58] - Employee costs for the six months ended June 30, 2025, were approximately RMB 66,040 thousand (2024: RMB 62,660 thousand)[58] - Employee remuneration is determined based on performance and is in line with industry practices and market conditions[58] Outlook China's economy and automotive market show positive growth, especially in NEVs and passenger vehicles, with the Group expecting continued growth in range-extended gasoline engines, exploring new NEV component business, low-altitude economy, and in-house range extender R&D - China's GDP grew by 5.3% in real terms in the first half of 2025, with significant contributions from the automotive manufacturing industry[59] - Passenger vehicle sales increased by 13.0% year-on-year, and New Energy Vehicle (NEV) sales rose by 40.3% year-on-year, accounting for approximately 44.3% of total sales[60] - Range-extended electric vehicles (EREVs) continue to be favored in the NEV market, and the Group's joint venture with Li Auto will continue to provide high-quality and stable supply of range-extended gasoline engines[61] - Engine component business sales declined, and the Group is exploring other new customers and new NEV component businesses[62] - China's full-year automobile sales for 2025 are projected to grow by 5.0% year-on-year to 34.04 million units, primarily driven by NEVs and passenger vehicles[64] - The Company is exploring new investment opportunities to expand its product portfolio and diversify revenue sources, including the application of range extenders in intercity pure electric light logistics vehicles[64] - A research team has been established to focus on the low-altitude economy, exploring business transformation potential, and has developed its own new range extender, expected to reduce reliance on third-party technology in the future[65] Other Information This section covers corporate governance, including interim dividend policy, trading of listed securities, compliance with corporate governance code, financial statement review, and Board composition Interim Dividend The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend[66] Purchase, Sale or Redemption of the Company's Listed Securities Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - Neither the Company nor its subsidiaries engaged in the purchase, sale, or redemption of listed securities during the reporting period[67] Compliance with Corporate Governance Code The Company has complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules for the six months ended June 30, 2025 - The Company has complied with all code provisions of the Corporate Governance Code[68] Review of Financial Statements The Audit Committee, with management, reviewed the Group's accounting principles, audit, internal controls, and financial reporting, including these interim financial statements - The Audit Committee has reviewed the Group's accounting principles, audit, internal controls, and financial reporting matters[69] - The Audit Committee members include Mr. Chi Kwok Wa (Chairman), Mr. Wang Jun, and Ms. Dong Yan, all of whom are independent non-executive directors[69] Board of Directors The Company's Board of Directors comprises two executive directors, one non-executive director, and three independent non-executive directors - The Board of Directors includes two executive directors: Mr. Zhang Wei (Chairman) and Mr. Deng Han (Chief Executive Officer)[70] - The Board of Directors includes one non-executive director: Mr. Yang Ming[70] - The Board of Directors includes three independent non-executive directors: Mr. Chi Kwok Wa, Mr. Wang Jun, and Ms. Dong Yan[70]