泰林科建(06193) - 2025 - 中期业绩

Interim Results Announcement Condensed Consolidated Interim Financial Statements This section presents the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, with comparative data Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the company's revenue significantly increased, gross profit grew, and net profit was achieved, reversing the prior year's loss | Metric | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 127,456 | 69,090 | +84.5% | | Cost of Sales | (104,537) | (62,765) | +66.6% | | Gross Profit | 22,919 | 6,325 | +262.4% | | Operating Profit/(Loss) | 6,488 | (3,855) | N/A (Turned from loss to profit) | | Profit/(Loss) for the Period | 6,448 | (4,184) | N/A (Turned from loss to profit) | | Earnings/(Loss) Per Share | 0.016 | (0.010) | N/A (Turned from loss to profit) | Condensed Consolidated Interim Statement of Financial Position As of June 30, 2025, total assets increased by 14.8% to RMB 322,132 thousand, driven by current assets and a significant rise in cash and cash equivalents | Metric | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 322,132 | 280,530 | +14.8% | | Non-current Assets | 123,623 | 126,855 | -2.5% | | Current Assets | 198,509 | 153,675 | +29.2% | | Total Equity | 202,560 | 195,947 | +3.4% | | Total Liabilities | 119,572 | 84,583 | +41.4% | | Current Liabilities | 114,998 | 79,583 | +44.5% | | Cash and Cash Equivalents | 23,228 | 6,003 | +286.9% | Condensed Consolidated Interim Statement of Changes in Equity For the six months ended June 30, 2025, total equity increased to RMB 202,560 thousand, primarily due to profit for the period and foreign currency translation differences | Metric | As of June 30, 2025 (RMB '000) | As of January 1, 2024 (RMB '000) | | :--- | :--- | :--- | | Total Equity at Period End | 202,560 | 207,060 | | Profit/(Loss) for the Period | 6,448 | (4,184) | | Other Comprehensive Income/(Expense) | 165 | (15) | | Total Comprehensive Income/(Expense) | 6,613 | (4,199) | Condensed Consolidated Interim Statement of Cash Flows For the six months ended June 30, 2025, operating activities resulted in a cash outflow, while financing activities generated significant cash inflow from bank borrowings, leading to a net increase in cash | Metric | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Net Cash From/(Used in) Operating Activities | (30,599) | 3,678 | | Net Cash Used in Investing Activities | (1,256) | (15,530) | | Net Cash From/(Used in) Financing Activities | 49,080 | (5,223) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 17,225 | (17,075) | | Cash and Cash Equivalents at Period End | 23,228 | 27,096 | Notes to the Condensed Consolidated Interim Financial Statements This section provides detailed notes to the condensed consolidated interim financial statements, covering accounting policies, fair value measurements, segment reporting, and key financial item details General Information The company, incorporated in the Cayman Islands, primarily manufactures and sells concrete products in China, with Ms Wang Xianyu as the ultimate controlling shareholder - The company primarily engages in the manufacturing and sale of PHC pipe piles, ceramsite concrete slabs, and commercial concrete in China[10] - Ms Wang Xianyu is the ultimate controlling shareholder of the company[11] Basis of Preparation The unaudited condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, and have been reviewed by the Audit Committee - The unaudited condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the HKICPA and the applicable disclosure requirements of the Listing Rules[12] - The condensed consolidated interim financial statements have not been audited or reviewed by the company's external auditors, but have been reviewed by the Audit Committee[12] Summary of Significant Accounting Policies The financial statements are prepared on a historical cost basis, adopting new and revised HKFRSs effective January 1, 2025, with no material impact from HKAS 21 (Amendment) - The condensed consolidated interim financial statements have been prepared on a historical cost basis[13] - The adoption of HKAS 21 (Amendment) 'Lack of Exchangeability' had no impact on the Group's interim condensed consolidated financial information[15] Fair Value Measurement The Group's financial assets and liabilities have fair values similar to their carrying amounts, with fair value measurements categorized into three levels, primarily including listed and unlisted equity securities - The carrying amounts of the Group's financial assets and financial liabilities approximate their respective fair values[18] - Level 1 instruments primarily include investments in listed securities, classified as financial assets at fair value through profit or loss[24] - Level 3 instruments primarily include investments in unlisted equity securities (Zhejiang Erge) and bank and commercial acceptance bills, whose fair values are determined using applicable valuation techniques (including the comparable company method)[25][26] Segment Reporting The Group operates as a single segment, manufacturing and selling concrete products in China, with all revenue and most non-current assets originating from China - The Group primarily engages in the manufacturing and sale of commercial concrete, PHC pipe piles, and ceramsite concrete slabs in China, with management reviewing the business as a single operating segment[27] - All of the Group's revenue is derived from China, and non-current assets are primarily located in China (RMB 113,507 thousand)[27][28] Revenue For the six months ended June 30, 2025, total revenue increased by 84.5% to RMB 127,456 thousand, driven by significant growth in PHC pipe piles and commercial concrete sales | Product | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | PHC Pipe Piles | 79,099 | 41,414 | +91.0% | | Commercial Concrete | 48,351 | 26,115 | +85.1% | | Ceramsite Concrete Slabs | 6 | 1,561 | -99.6% | | Total | 127,456 | 69,090 | +84.5% | - Contract liabilities increased from RMB 1,108 thousand as of December 31, 2024, to RMB 2,331 thousand as of June 30, 2025[31] - In the first half of 2025, Customer A contributed RMB 18,241 thousand in revenue, becoming a major customer[32] Expenses by Nature For the six months ended June 30, 2025, raw materials and consumables expenses significantly increased by 90.7%, employee benefit expenses rose, while depreciation of property, plant and equipment decreased | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Raw Materials and Consumables Used | 86,793 | 45,505 | +90.7% | | Employee Benefit Expenses | 7,219 | 6,535 | +10.5% | | Depreciation of Property, Plant and Equipment | 5,085 | 6,142 | -17.2% | | Total Expenses | 122,101 | 73,814 | +65.4% | Other Income, Other Costs and Net Other Gains For the six months ended June 30, 2025, net other income, costs, and gains increased by 29.9% to RMB 1,133 thousand, primarily from rental income and fair value gains on financial assets | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 1,379 | – | N/A | | Other Costs | (1,215) | – | N/A | | Net Other Gains | 969 | 872 | +11.1% | | Total | 1,133 | 872 | +29.9% | Net Finance (Costs)/Income For the six months ended June 30, 2025, the company recorded net finance costs of RMB 171 thousand, reversing the prior year's net finance income, mainly due to increased bank borrowing interest expenses | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Finance Income | 136 | 298 | | Finance Costs | (307) | (96) | | Net Finance (Costs)/Income | (171) | 202 | Income Tax (Credit)/Expense For the six months ended June 30, 2025, the company recorded an income tax credit of RMB 131 thousand, with PRC subsidiaries subject to a 25% corporate income tax rate, and high-tech enterprises enjoying a 15% preferential rate | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Current Income Tax | 432 | 16 | | Deferred Income Tax | (563) | 515 | | Income Tax (Credit)/Expense | (131) | 531 | - The applicable corporate income tax rate for PRC subsidiaries is 25%, with high-tech enterprises enjoying a preferential rate of 15%[36] - The additional tax deduction for qualified R&D expenses of manufacturing enterprises has increased to 200% since 2021[37] Dividends For the six months ended June 30, 2025, the company neither paid nor declared any dividends, consistent with the prior year - The Board does not recommend paying any interim dividend for the period (six months ended June 30, 2024: nil)[39] Earnings Per Share For the six months ended June 30, 2025, basic earnings per share was RMB 0.016, reflecting improved performance from a loss of RMB 0.010 per share in the prior year | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Equity Holders of the Company (RMB thousand) | 6,448 | (4,181) | | Weighted Average Number of Shares in Issue (thousand shares) | 400,000 | 400,000 | | Basic Earnings Per Share (RMB) | 0.016 | (0.010) | - During the period and for the six months ended June 30, 2025, the company had no outstanding potential ordinary shares, thus diluted earnings per share equals basic earnings per share[41] Property, Plant and Equipment For the six months ended June 30, 2025, the Group's purchases of property, plant and equipment significantly increased to approximately RMB 2,164 thousand, indicating substantial capital expenditure growth - The Group purchased property, plant and equipment at a total cost of approximately RMB 2,164 thousand, a significant increase from RMB 51 thousand in the prior year[42] Financial Assets at Fair Value Through Profit or Loss As of June 30, 2025, financial assets at fair value through profit or loss totaled RMB 17,295 thousand, remaining stable and primarily comprising investments in unlisted and PRC listed equity securities | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Investment in Unlisted Equity Securities | 15,814 | 15,578 | | Investment in Hong Kong Listed Equity Securities | – | 949 | | Investment in PRC Listed Equity Securities | 1,481 | 772 | | Total | 17,295 | 17,299 | Trade, Prepayments and Other Receivables As of June 30, 2025, trade, prepayments, and other receivables increased by 24.9% to RMB 134,932 thousand, with trade receivables growing by 19.9% | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables (Net) | 112,856 | 94,143 | +19.9% | | Other Receivables (Net) | 2,828 | 1,701 | +66.3% | | Prepayments for Raw Materials | 19,248 | 12,177 | +58.1% | | Total | 134,932 | 108,021 | +24.9% | | Aging of Trade Receivables | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 month | 50,154 | 26,536 | | 1 to 6 months | 42,556 | 41,906 | | 6 months to 1 year | 17,566 | 16,583 | | 1 to 2 years | 9,593 | 14,961 | | Over 2 years | 5,842 | 7,276 | | Total | 125,711 | 107,262 | Restricted Cash As of June 30, 2025, restricted cash amounted to RMB 6,941 thousand, primarily serving as collateral for bank acceptance bills, a decrease from the prior year-end - Restricted cash, primarily collateral for bank acceptance bills, was RMB 6,941 thousand as of June 30, 2025 (December 31, 2024: RMB 9,646 thousand)[46][5] Share Capital As of June 30, 2025, the company's issued and fully paid share capital remained unchanged at 400,000,000 ordinary shares, with a share capital amount of RMB 3,584 thousand | Item | Number of Shares | Share Capital (RMB '000) | | :--- | :--- | :--- | | Issued and Fully Paid Share Capital (As of June 30, 2025 and As of December 31, 2024) | 400,000,000 | 3,584 | Trade and Other Payables As of June 30, 2025, trade and other payables decreased by 20.5% to RMB 60,372 thousand, with trade payables declining by 18% | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 50,645 | 61,746 | -18.0% | | Bills Payable | 6,717 | 9,163 | -26.7% | | Accrued Wages | 1,104 | 1,292 | -14.5% | | Other Taxes Payable | 1,585 | 919 | +72.5% | | Other Payables | 321 | 2,834 | -88.7% | | Total | 60,372 | 75,954 | -20.5% | | Aging of Trade Payables | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 month | 24,933 | 38,042 | | 1 to 6 months | 10,360 | 12,189 | | 6 months to 1 year | 7,459 | 8,772 | | 1 to 2 years | 5,242 | 2,046 | | Over 2 years | 2,651 | 697 | | Total | 50,645 | 61,746 | Borrowings As of June 30, 2025, the Group incurred new short-term bank borrowings of RMB 49,500 thousand, all denominated in RMB and secured by buildings and land use rights | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Short-term Bank Borrowings | 49,500 | – | - The Group's short-term bank borrowings of approximately RMB 49,500 thousand are secured by buildings with a net book value of approximately RMB 12,207 thousand and land use rights of approximately RMB 10,614 thousand[56] Related Party Transactions For the six months ended June 30, 2025, key management personnel compensation was approximately RMB 1,383 thousand, a decrease from the prior year - For the six months ended June 30, 2025, key management personnel compensation was approximately RMB 1,383 thousand (six months ended June 30, 2024: RMB 2,247 thousand)[49] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[51] Events After Reporting Period As of the announcement date, no significant post-reporting period events have materially impacted the Group's business and financial performance - As of the announcement date, no significant post-reporting period events have materially impacted the Group's business and financial performance[52] Restatement The Group restated comparative information for the six months ended June 30, 2024, reclassifying certain listed and unlisted equity securities to financial assets at fair value through profit or loss due to a change in investment strategy and accounting standards - The Group reclassified certain listed equity securities as financial assets at fair value through profit or loss, reflecting a change in investment strategy to actively trade for short-term gains[54] - Investments in unlisted equity securities with put options were reclassified as financial assets at fair value through profit or loss, as they do not meet the definition of equity instruments under HKAS 32[55] Impact on Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30, 2024 | Item | Previously Reported (RMB '000) | Prior Period Adjustment (RMB '000) | Restated (RMB '000) | | :--- | :--- | :--- | :--- | | Other Income, Other Costs and Net Other Gains | 872 | (3) | 869 | | Operating Loss | (3,852) | (3) | (3,855) | | Loss for the Period | (4,181) | (3) | (4,184) | | Other Comprehensive Expense for the Period | (18) | 3 | (15) | Impact on Condensed Consolidated Interim Statement of Cash Flows for the Six Months Ended June 30, 2024 | Item | Previously Reported (RMB '000) | Prior Period Adjustment (RMB '000) | Restated (RMB '000) | | :--- | :--- | :--- | :--- | | Purchase of Financial Assets at Fair Value Through Other Comprehensive Income | (15,416) | 15,416 | – | | Purchase of Financial Assets at Fair Value Through Profit or Loss | – | (15,416) | (15,416) | Management Discussion and Analysis This section reviews the Group's business and financial performance for the first half of 2025, highlighting revenue growth, strategic initiatives, future outlook, and key financial risks Business Review For the first half of 2025, the Group achieved robust financial performance with revenue of RMB 127.5 million, an 84.5% increase, and an improved gross profit margin of 18.0%, driven by infrastructure demand and strategic partnerships - The Group achieved revenue of RMB 127.5 million in the first half of 2025, an increase of 84.5% compared to the corresponding period[58] - Gross profit margin increased from 9.2% in the corresponding period to 18.0% in the current period, primarily due to economies of scale and strategic cost management[58] - Established a strategic partnership with Anhui Conch Cement Company Limited to ensure a continuous and stable supply of core production materials[59] Financial Review The Group's revenue significantly increased by 84.5% to RMB 127.5 million, gross profit grew by 263.5%, and a net profit of RMB 6.4 million was recorded, with new bank borrowings of RMB 49.5 million - Revenue significantly increased by approximately RMB 58.4 million or 84.5% to approximately RMB 127.5 million for the period, primarily due to accelerated regional infrastructure development and a recovery in construction activities[61] - Gross profit significantly increased by approximately RMB 16.6 million, a 263.5% growth, with gross profit margin improving from 9.2% to 18.0%, primarily due to enhanced production capacity, strategic procurement, and prudent project selection[62] - Administrative expenses increased by 24.4% to RMB 16.3 million, mainly due to the resumption of normal business operations and strategic investments in administrative support projects[64] - Net profit of approximately RMB 6.4 million was recorded for the period, compared to a net loss of approximately RMB 4.2 million in the corresponding period[65] - Bank borrowings as of June 30, 2025, amounted to approximately RMB 49.5 million, an increase from December 31, 2024[66] Prospects The Group will capitalize on infrastructure demand in Nantong, focusing on large-scale projects, leveraging strategic partnerships for stable raw material supply and cost optimization, and implementing smart manufacturing solutions to enhance efficiency and cash flow - The Group will continue to leverage the recovering infrastructure demand in Nantong and surrounding areas, focusing on large-scale transportation and urban renewal projects[67] - Leveraging the strategic partnership with Conch Cement to ensure stable raw material supply and cost optimization, aiming to further enhance gross profit margins while expanding production capacity[67] - Will implement smart manufacturing solutions to improve operational efficiency, strictly manage working capital, and maintain healthy cash flow[67] Employment and Remuneration Policy As of June 30, 2025, the Group employed approximately 46 full-time employees and 150 outsourced workers, with total staff costs of RMB 7.2 million, and provides compensation based on roles, responsibilities, and performance - As of June 30, 2025, the Group employed approximately 46 full-time employees and 150 outsourced workers, with total staff costs of approximately RMB 7.2 million[68] - Remuneration is determined based on job scope, responsibilities, and performance, with discretionary bonuses and employer's liability insurance provided[69] - Employees and outsourced workers receive internal training on quality control, environmental protection, health, and workplace safety policies[71] Liquidity and Financial Resources As of June 30, 2025, the Group had cash and cash equivalents of RMB 23.2 million, borrowings of RMB 49.5 million, a gearing ratio of 24.4%, a current ratio of 1.7 times, and net current assets of RMB 83.5 million | Metric | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents (RMB million) | 23.2 | 6.0 | | Borrowings (RMB million) | 49.5 | – | | Gearing Ratio | 24.4% | 0% | | Current Ratio | 1.7 times | 1.9 times | | Net Current Assets (RMB million) | 83.5 | 74.1 | Market Risk The Group faces market risks from changes in exchange rates, interest rates, and stock prices that could affect profitability, which management actively manages and monitors - Market risk is the risk that changes in market prices (such as exchange rates, interest rates, and equity prices) will affect the Group's profitability or its ability to achieve its business objectives[75] Exchange Rate Risk The Group's operations primarily use RMB and HKD, with non-RMB denominated assets and liabilities mainly in HKD, and while there is no hedging policy, directors deem exchange rate risk not significant - The Group's operations primarily use RMB and HKD, with non-RMB denominated assets and liabilities mainly comprising HKD-denominated cash and cash equivalents and other payables[76] - The Group currently has no foreign currency hedging policy but closely monitors relevant foreign currency exchange rates to manage its foreign currency risk, and the Directors consider exchange rate risk not significant[77] Material Investments, Acquisitions and Disposals In January 2024, the Group acquired a 5% equity interest in Zhejiang Erge Technology Co., Ltd for RMB 15,107,500, with its fair value at RMB 15,814,000 as of June 30, 2025 - On January 18, 2024, the Group acquired a 5% equity interest in Zhejiang Erge Technology Co., Ltd for RMB 15,107,500, a company primarily engaged in cooling systems for renewable energy generation equipment[78] - As of June 30, 2025, the fair value of the Group's interest in Zhejiang Erge was approximately RMB 15,814,000, representing approximately 4.9% of the Group's total assets[79] Pledge of Assets As of June 30, 2025, buildings valued at approximately RMB 12,207 thousand and land use rights of approximately RMB 10,614 thousand were pledged as collateral for the Group's borrowings - As of June 30, 2025, buildings of approximately RMB 12,207,000 and land use rights of approximately RMB 10,614,000 were pledged as collateral for the Group's borrowings[81] Other Information This section provides other important information, including interim dividends, corporate governance practices, directors' securities dealings, and audit committee review Interim Dividends The Board does not recommend paying any interim dividend for the period, consistent with the prior year - The Board does not recommend paying any interim dividend for the period (six months ended June 30, 2024: nil)[83] Purchase, Redemption or Sale 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 period, and held no treasury shares as of June 30, 2025 - Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[84] Code on Corporate Governance Practices The company has adopted and complied with the Corporate Governance Code, except for the separation of Chairman and CEO roles, which the Board believes is adequately safeguarded - The company has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the period, except for Code Provision C.2.1 (separation of the roles of Chairman and Chief Executive Officer)[85][86] - Ms Wang Xianyu serves as both the Chairperson of the Board and the Chief Executive Officer of the Group, an arrangement the Board believes is in the Group's best interests and adequately safeguarded to balance power[86] Model Code for Securities Transactions by Directors The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all Directors have confirmed compliance with the Code during the period[87] Audit Committee The Audit Committee, comprising three independent non-executive directors, reviews and monitors financial reporting, risk management, and internal controls, and has reviewed the financial information in this interim results announcement - The Audit Committee comprises three independent non-executive Directors, whose primary responsibilities include reviewing and monitoring the Group's financial reporting process, risk management, and internal control systems[88] - The financial information in this interim results announcement has not been audited by the company's external auditors but has been reviewed by the Audit Committee[89] Publication of Unaudited Interim Report The company's 2025 interim report will be published in due course on the HKEXnews website and the company's website - The company's 2025 interim report will be published in due course on the HKEXnews website www.hkexnews.hk and the company's website www.tailamgroup.com[90](index=90&type=chunk) Acknowledgement The Board extends its sincere gratitude to shareholders, management, all employees, customers, and business partners, acknowledging them as the cornerstone of the company's success - The Board extends its sincere gratitude to shareholders, management, all employees, customers, and business partners, acknowledging them as the cornerstone of the company's success[91] Board of Directors Information As of the announcement date, the Board comprises Executive Directors Ms Wang Xianyu (Chairperson and CEO), Mr Wang Chaowei, and Ms Jiang Yin Juan; Non-executive Director Mr Wang Liangyou; and Independent Non-executive Directors Ms Huang Xiaoyan, Mr Li Zhenyu, and Mr Cui Yushu - Executive Directors are Ms Wang Xianyu (Chairperson and CEO), Mr Wang Chaowei, and Ms Jiang Yin Juan; Non-executive Director is Mr Wang Liangyou; Independent Non-executive Directors are Ms Huang Xiaoyan, Mr Li Zhenyu, and Mr Cui Yushu[93]