乐舱物流(02490) - 2025 - 中期业绩

Financial and Operating Summary This section highlights the company's interim financial and operating performance, showcasing significant growth in key metrics for the period Interim Performance Highlights For the six months ended June 30, 2025, Locang Logistics Co., Ltd. reported significant growth in revenue and profit attributable to shareholders, a substantial increase in basic earnings per share, and a notable rise in container throughput for cross-border logistics services Key Financial and Operating Data for H1 2025 | Metric | For the six months ended June 30, 2025 (RMB millions) | | :--- | :--- | | Revenue | 905.0 | | Profit attributable to shareholders | 127.8 | | Basic earnings per share | RMB0.19 | | Cross-border logistics service container throughput (TEUs) | 197,195 | Interim Condensed Consolidated Financial Statements This section presents the company's interim condensed consolidated financial statements, including the statement of profit or loss and other comprehensive income, and the statement of financial position Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the company achieved substantial growth in revenue and profit for the period, primarily driven by a significant increase in other income and gains, leading to a substantial rise in basic earnings per share Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Metric | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 904,984 | 754,238 | 20.0% | | Gross profit | 82,397 | 68,104 | 21.0% | | Other income and gains | 91,126 | 5,021 | 1715.0% | | Profit before tax | 128,051 | 13,005 | 884.6% | | Profit for the period | 127,813 | 12,806 | 898.1% | | Profit attributable to owners of the parent | 111,300 | 9,393 | 1085.9% | | Basic earnings per share | RMB0.19 | RMB0.02 | 850.0% | - Total comprehensive income for the period significantly increased from RMB22,242 thousand in the same period of 2024 to RMB122,513 thousand in 2025, representing a 450% growth[5] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total non-current assets increased, while total current assets slightly decreased, and total current liabilities significantly rose, resulting in a reduction in net current assets, though total equity and net assets maintained stable growth Condensed Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 1,039,417 | 916,889 | 13.4% | | Total current assets | 969,814 | 1,006,675 | -3.7% | | Total current liabilities | 393,101 | 293,083 | 34.1% | | Net current assets | 576,713 | 713,592 | -19.1% | | Net assets | 1,557,897 | 1,551,635 | 0.4% | | Total equity | 1,557,897 | 1,551,635 | 0.4% | - Investment in an associate significantly increased from RMB626 thousand as of December 31, 2024, to RMB29,043 thousand as of June 30, 2025[6] - Trade receivables increased from RMB107,605 thousand as of December 31, 2024, to RMB143,096 thousand as of June 30, 2025, representing a 33% increase[6] Notes to the Financial Statements This section provides detailed explanations of the company's accounting policies, segment information, revenue breakdown, and other financial statement components Company Information Locang Logistics Co., Ltd. was incorporated in the Cayman Islands, listed on the Main Board of the Hong Kong Stock Exchange on September 25, 2023, primarily provides integrated cross-border logistics services, and is ultimately controlled by Mr. Xu Xin, Ms. Li Yan, and Ms. Liu Quanxiang - The company is an investment holding company, with its subsidiaries primarily engaged in providing integrated cross-border logistics services[8] - The ultimate controlling shareholders are Mr. Xu Xin, Ms. Li Yan, and Ms. Liu Quanxiang[9] Basis of Preparation and Accounting Policies The interim condensed consolidated financial information is prepared in accordance with IAS 34 and consistent with the accounting policies adopted for the annual consolidated financial statements for the year ended December 31, 2024, with the initial adoption of amended IFRS 21 having no material impact on the Group - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 Interim Financial Reporting and should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024[10] - The initial adoption of amended IFRS 21 (Amendments) "Lack of Exchangeability" had no impact on the interim condensed consolidated financial information, as the Group's transactional and functional currencies are convertible[11][12] Operating Segment Information The Group organizes its business units by products and services, with only one reportable operating segment, deriving revenue primarily from mainland China, and no single major customer accounts for more than 10% of revenue - The Group has only one reportable operating segment, and management monitors overall results to make decisions on resource allocation and performance assessment[13] Revenue from External Customers (by Geographical Location) | Region | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Mainland China | 746,820 | 697,642 | | Others | 158,164 | 56,596 | | Total | 904,984 | 754,238 | - For the six months ended June 30, 2025, no single major customer accounted for 10% or more of the Group's revenue[16] Revenue Analysis The Group's revenue primarily stems from contracts with customers, with vessel chartering income also being a significant component, both of which have achieved growth Revenue Source Analysis | Revenue Source | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue from contracts with customers | 861,156 | 713,895 | | Vessel chartering income | 43,828 | 40,343 | | Total | 904,984 | 754,238 | Components of Profit Before Tax The composition of profit before tax indicates that cost of services, depreciation, and amortization are major expenses, while interest income and gains from disposal of property, plant and equipment significantly contribute to profit Key Items in Profit Before Tax Composition | Item | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of services provided | 783,924 | 641,769 | | Depreciation of property, plant and equipment | 29,639 | 22,906 | | Depreciation of right-of-use assets | 15,776 | 15,085 | | Interest income | (13,635) | (3,295) | | Gain/(loss) on disposal of property, plant and equipment | (61,483) | 5,115 | - Net impairment loss on financial assets changed from a RMB4,205 thousand reversal in 2024 to a RMB2,370 thousand net impairment loss on trade receivables and a RMB10,998 thousand reversal on other receivables in 2025[18] Finance Costs Finance costs increased during the period, primarily comprising interest on bank and other borrowings and interest on lease liabilities Finance Costs Analysis | Item | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 2,929 | 1,509 | | Interest on lease liabilities | 2,274 | 2,689 | | Total | 5,203 | 4,198 | Income Tax Expense The Group's income tax expense primarily originates from mainland China, with no assessable profits in Hong Kong, and certain mainland Chinese subsidiaries benefiting from preferential tax rates for small and micro-enterprises - The company is not subject to income tax in the Cayman Islands, and Hong Kong subsidiaries are subject to profits tax at a rate of 16.5%[21] - Mainland China subsidiaries are subject to corporate income tax at a statutory rate of 25%, with some small and micro-enterprises enjoying a 75% reduction on the first RMB1,000,000 of annual assessable income[21] Total Income Tax Expense | Item | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax: Mainland China | 226 | 87 | | Deferred | 12 | 112 | | Total tax expense for the period | 238 | 199 | Dividends The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[23] Earnings Per Share Basic earnings per share significantly increased, primarily due to a substantial rise in profit attributable to ordinary equity holders of the parent company, with retrospective adjustments made for the share split effective July 28, 2025 - Basic earnings per share is calculated based on the profit attributable to ordinary equity holders of the parent company for the period and the weighted average number of 572,538,312 ordinary shares outstanding during the period[24] - On July 28, 2025, the company conducted a 1-for-2 share split, and the calculation of basic and diluted earnings per share for all presented periods has been retrospectively adjusted[24] Basic Earnings Per Share Calculation Details | Item | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent for basic EPS calculation | 111,300 | 9,393 | | Weighted average number of ordinary shares outstanding for basic EPS calculation | 572,538,312 | 572,538,312 | Trade Receivables As of June 30, 2025, total trade receivables increased, with the majority concentrated in the 1 to 3-month aging bracket Trade Receivables Aging Analysis | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 month | 67,719 | 62,696 | | 1 to 3 months | 55,371 | 31,657 | | 3 to 6 months | 13,262 | 7,887 | | 6 to 12 months | 6,744 | 5,365 | | Total | 143,096 | 107,605 | Trade Payables As of June 30, 2025, total trade payables decreased, primarily settled within one year and non-interest bearing Trade Payables Aging Analysis | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 95,107 | 123,969 | | Over 1 year | 15,811 | 11,469 | | Total | 110,918 | 135,438 | - Trade payables are non-interest bearing and generally settled within 30 to 60 days[28] Business Review This section provides an overview of the Group's business segments, operational performance, and strategic outlook, focusing on cross-border logistics and vessel chartering services Business Segments Overview The Group primarily operates two business segments: cross-border logistics services and vessel chartering services, with the flexibility to adjust strategies for allocating transportation resources - The Group primarily operates two business segments: cross-border logistics services and vessel chartering services[29] - The Group's management team can timely adjust service supply strategies and business focus, flexibly allocating transportation resources between the two business segments[30] Cross-border Logistics Services During the period, cross-border logistics service volume significantly grew, primarily provided through third-party shipping companies, with expanded overseas warehousing services, though average prices decreased due to falling market freight rates - Self-operated cross-border logistics services accounted for approximately 4.7% of cross-border logistics service revenue, primarily for bulk and general cargo transportation between China and Africa, with a service volume of 50,733 freight tons and an average price of RMB836.5 per freight ton[30] - Cross-border ocean freight services provided by third parties amounted to 197,195 TEUs, higher than 138,335 TEUs in the same period of 2024, mainly due to business expansion[30] - The average price per TEU for cross-border ocean freight provided by third parties decreased from approximately RMB4,129.8 in the same period of 2024 to approximately RMB3,774.9 in the current period, primarily due to falling market freight rates[30] - The Group provided overseas warehousing services during the period to expand its capabilities in cargo collection, warehousing and sorting, customs clearance, warehousing transshipment, and last-mile delivery[30] Vessel Chartering Services Vessel chartering service revenue remained stable during the period, with the average daily charter rate increasing due to the disposal of lower-rate vessels, though charter rates are subject to market supply and demand fluctuations - During the period, the Group chartered out three vessels and generated revenue of RMB43.8 million[31] - The average daily charter rate for the period was approximately RMB101,262.7, higher than approximately RMB81,865.7 in the same period of 2024, mainly due to the disposal of two lower daily charter rate vessels in 2024[31] Outlook and Strategy Facing a global economic slowdown, the company will focus on 'Belt and Road' infrastructure, cross-border e-commerce, and overseas warehouse expansion, while optimizing fleet operations and cost control to achieve steady growth and leading profitability - In market expansion, the company will deepen its presence in "Belt and Road" infrastructure projects, focusing on developing the African engineering logistics market[32] - The company will expand its cross-border e-commerce business, building a "sea freight + warehousing + distribution" full-chain logistics ecosystem, and accelerate its overseas warehouse布局[32] - In operational upgrades, the company will optimize the operating efficiency of its self-owned bulk and container fleet and implement refined cost control to enhance asset utilization[32] - Revenue is expected to grow steadily in the second half of 2025, with profitability maintained at a relatively leading industry level through differentiated operations and efficiency optimization[32] Financial Review This section provides a detailed analysis of the Group's financial performance, including revenue, cost of sales, gross profit, other income, and various expenses, highlighting key drivers of profitability Revenue Total revenue for the period increased by 20.0% year-on-year, primarily driven by significant growth in cross-border logistics service revenue, particularly due to increased service volume and the development of overseas warehousing business, while import cargo trading was suspended Revenue Breakdown by Business Segment | Revenue Source | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | Percentage Change | | :--- | :--- | :--- | :--- | | Cross-border logistics services | 861,156 | 689,020 | 25.0% | | Vessel chartering services | 43,828 | 40,343 | 8.6% | | Others | – | 24,875 | -100.0% | | Total | 904,984 | 754,238 | 20.0% | - The increase in cross-border logistics service revenue was primarily attributable to an increase in service volume from 140,355 TEUs to 197,195 TEUs, and the growth of overseas warehousing business[34] - The company suspended import cargo trading under supply chain solution services in 2025[34] Cost of Sales Cost of sales increased by 19.9% year-on-year, primarily due to higher costs associated with cross-border logistics services, such as freight and port charges - Cost of sales increased by approximately 19.9% from RMB686.1 million to RMB822.6 million[35] - The increase was primarily due to higher costs associated with the Group's cross-border logistics services, including freight and port charges[35] Gross Profit and Gross Profit Margin Gross profit increased by 21.0% year-on-year, with the gross profit margin remaining relatively stable and slightly improving - Gross profit increased by approximately 21.0% from RMB68.1 million to RMB82.4 million[36] - Gross profit margin remained relatively stable at 9.0% (2024) and 9.1% (2025)[36] Other Income and Gains Other income and gains surged by 1,722.0%, primarily benefiting from non-recurring gains on disposal of vessels resulting from asset optimization - Other income and gains increased by approximately 1,722.0% from RMB5.0 million to RMB91.1 million[37] - This was primarily due to non-recurring gains of approximately RMB62.6 million from asset optimization, including the optimization of vessel asset investment strategy[37] Selling and Distribution Expenses Selling and distribution expenses increased by 33.0% year-on-year, primarily due to higher staff salaries and welfare expenses - Selling and distribution expenses increased by approximately 33.0% from RMB9.1 million to RMB12.1 million[38] - This was primarily due to an increase in staff salaries and welfare expenses[38] Administrative Expenses Administrative expenses decreased by 21.9% year-on-year, primarily attributable to reduced consulting fees - Administrative expenses decreased by approximately 21.9% from RMB45.7 million to RMB35.7 million[39] - This was primarily due to a reduction in consulting fees[39] Other Expenses Other expenses significantly decreased by 84.9% year-on-year, primarily due to reduced losses on disposal of non-current assets related to the sale of containers - Other expenses decreased by approximately 84.9% from RMB5.3 million to RMB0.8 million[40] - This was primarily due to a reduction in losses on disposal of non-current assets related to the sale of the Group's containers[40] Finance Costs Finance costs increased year-on-year, primarily due to a higher average monthly borrowing balance during the period - Finance costs increased from RMB4.2 million to RMB5.2 million[41] - This was primarily due to an increase in the average monthly borrowing balance during the period[41] Net Reversal of Impairment Loss on Financial Assets The period recorded a net reversal of impairment loss on financial assets, primarily due to the recovery of long-outstanding trade receivables - The period recorded a net reversal of impairment loss on financial assets of RMB8.6 million (compared to RMB4.2 million in the same period of 2024)[42] - This was primarily due to the recovery of long-outstanding trade receivables during the period[42] Share of Loss of Associates The period recorded a share of loss of associates, primarily related to Locangwang International Logistics (Wuxi) Co., Ltd. and Locang (Shanghai) Investment Management Co., Ltd. - The Group recorded a share of loss of associates of RMB0.2 million during the period[43] - The loss is related to Locangwang International Logistics (Wuxi) Co., Ltd. and Locang (Shanghai) Investment Management Co., Ltd., in which the Group holds approximately 40.0% equity interest[43] Profit Before Tax Profit before tax surged by 885.4% year-on-year, primarily due to the combined effects of revenue growth, a significant increase in other income and gains, and a reduction in certain expenses - Profit before tax increased by approximately 885.4% from RMB13.0 million to RMB128.1 million[44] Income Tax Expense Income tax expense remained stable, primarily comprising PRC corporate income tax and Hong Kong profits tax - Income tax expense remained stable at RMB0.2 million for the current period, similar to RMB0.2 million in the same period of 2024[45] Profit for the Period Profit for the period significantly increased by 898.4% year-on-year, reflecting a substantial improvement in the company's overall profitability - Profit for the period increased by approximately 898.4% from RMB12.8 million to RMB127.8 million[46] Liquidity, Financial and Capital Resources This section details the Group's funding sources, liquidity position, borrowing activities, asset pledges, and financial risk management strategies Sources and Uses of Funds The Group primarily meets its working capital and capital expenditure needs through proceeds from its listing and cash generated from operations, with plans to secure additional bank borrowings - The Group meets its working capital, capital expenditure, and other capital needs through proceeds from its listing on the Hong Kong Stock Exchange and cash generated from operations[47] - The Group plans to obtain additional bank and other borrowings for working capital purposes and will continue to evaluate potential financing opportunities[47] Net Current Assets As of June 30, 2025, the Group's net current assets decreased, primarily due to a decline in total current assets and an increase in total current liabilities - As of June 30, 2025, the Group's net current assets were RMB576.7 million (December 31, 2024: RMB713.6 million), a 19.1% decrease[48] - Total current assets decreased by approximately 3.7% to RMB969.8 million, while total current liabilities increased by approximately 34.1% to RMB393.1 million[48] Cash Position As of June 30, 2025, the Group's cash and bank balances decreased, primarily denominated in US dollars - As of June 30, 2025, the Group's cash and bank balances were RMB572.0 million (December 31, 2024: RMB779.6 million), a 26.7% decrease[49] Cash and Bank Balances by Currency | Currency | June 30, 2025 (RMB thousands) | | :--- | :--- | | Denominated in RMB | 50,152 | | Denominated in USD | 502,630 | | Others | 19,297 | | Total | 572,005 | Borrowings As of June 30, 2025, the Group's total borrowings decreased, primarily denominated in RMB and USD, and bearing interest at fixed rates - As of June 30, 2025, the Group's borrowings were RMB68.1 million (December 31, 2024: RMB84.7 million), a 19.6% decrease[50] Maturity Profile of Interest-bearing Bank and Other Borrowings | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank loans and overdrafts repayable: within one year | 32,952 | 41,595 | | Other borrowings repayable: within one year | 15,481 | 15,856 | | Other borrowings repayable: over one year | 19,640 | 27,204 | | Total | 68,073 | 84,655 | - Except for RMB35.1 million of borrowings denominated in USD, all other borrowings are denominated in RMB and bear interest at fixed rates ranging from 2.85% to 7.16%[51] Borrowing Costs Interest on bank and other borrowings increased during the period, primarily due to a higher average monthly borrowing balance - Interest on bank and other borrowings increased from RMB1.5 million to RMB2.9 million[52] - This was primarily due to an increase in the average monthly borrowing balance[52] Pledge of Assets The Group has pledged certain container vessels and deposits to secure bank and other borrowings and bank payment guarantees - As of June 30, 2025, the Group pledged container vessels with a carrying amount of RMB53.5 million to secure bank and other borrowings of RMB35.1 million[53] - Pledged deposits of RMB11.2 million served as collateral for bank payment guarantees[53] Financial Instruments and Risk Management The Group's primary financial instruments include receivables, cash, and borrowings, facing interest rate, foreign currency, credit, and liquidity risks, managed with a conservative strategy that avoids derivative hedging - The Group's primary financial instruments include trade receivables, bills receivable, financial assets included in prepayments and other receivables, amounts due from related parties, cash and cash equivalents, and other payables and accrued expenses, interest-bearing other borrowings[54] - The main risks are interest rate risk, foreign currency risk, credit risk, and liquidity risk, managed with a conservative risk management strategy that does not use derivative instruments for hedging[54] Interest Rate Risk The Group's interest rate risk primarily relates to other borrowings, with interest costs managed through fixed rates and no use of derivative financial instruments for hedging - The Group's exposure to the risk of changes in market interest rates primarily relates to its other borrowings[55] - The Group manages its interest costs by using fixed rates and does not use derivative financial instruments to hedge interest rate risk[55] Foreign Currency Risk The Group's transactional currency risk is minimal, with foreign exchange risk managed through close monitoring of exchange rate fluctuations - The Group's transactional currency risk is minimal as most of its operating units' sales and purchases are denominated in their respective functional currencies[56] - The Group manages foreign exchange risk by closely monitoring exchange rate movements[56] Credit Risk The Group's credit risk primarily arises from trade receivables, amounts due from related parties, and cash, but is expected to be low due to diversified customers, continuous monitoring, and deposits held with major banks - The Group is exposed to credit risk in relation to its trade receivables, bills receivable, financial assets included in prepayments and other receivables, amounts due from related parties, and cash and cash equivalents[57] - No significant concentration of credit risk is expected due to cash being deposited with state-owned banks and other large and medium-sized listed banks, and a diversified customer base for trade receivables[57] Liquidity Risk The Group aims to balance funding continuity and flexibility by utilizing interest-bearing other borrowings, with cash flows continuously monitored - The Group aims to maintain a balance between funding continuity and flexibility by utilizing interest-bearing other borrowings[58] - Cash flows are continuously monitored[58] Current Ratio and Gearing Ratio During the period, the current ratio decreased, and the gearing ratio increased, primarily due to a higher balance of amounts payable to a related party - As of June 30, 2025, the Group's current ratio was 2.5 times (December 31, 2024: 3.4 times)[59] - As of June 30, 2025, the Group's gearing ratio was 6.1% (December 31, 2024: 5.5%), with the increase primarily attributable to a higher balance of amounts payable to a related party[59] 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[60] Commitments As of June 30, 2025, the Group's capital commitments primarily relate to the purchase of container vessels - As of June 30, 2025, the Group's capital commitments were RMB1,554.8 million (December 31, 2024: RMB1,721.2 million)[61] - The amount relates to the purchase of container vessels[61] Investments and Capital Assets This section outlines the Group's significant acquisition and disposal activities, major investments, future investment plans, and the utilization of proceeds from its listing Significant Acquisitions and Disposals During the period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures - During the period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures[62] Significant Investments During the period, the Group did not hold any significant investments - During the period, the Group did not hold any significant investments[63] Future Investment Plans The Group intends to utilize the net proceeds from its listing as per the prospectus, with no other significant future investment or capital asset plans beyond those disclosed - The Group intends to utilize the net proceeds from its listing as per the "Future Plans and Use of Proceeds" section in the prospectus[64] - As of June 30, 2025, the company had no other significant future investment or capital asset plans[64] Use of Proceeds from Listing As of June 30, 2025, net proceeds from the listing have been partially used for establishing logistics facilities, digital technology upgrades, and strategic investments, with a portion remaining unutilized - The net proceeds from the listing totaled approximately HKD95.1 million, after deducting listing-related expenses[65] Use of Proceeds from Listing and Utilization Status | Purpose | Percentage of Net Proceeds as per Prospectus | Net Proceeds as of December 31, 2024, including partial exercise of over-allotment option (HKD millions) | Actual Use of Net Proceeds from January 1, 2025, to June 30, 2025 (HKD millions) | Unutilized Net Proceeds as of June 30, 2025 (HKD millions) | | :--- | :--- | :--- | :--- | :--- | | Establishing logistics facilities, including warehouses, container yards, purchasing trailers, and investing in warehouse, order, and transportation management software systems | 52.0% | 9.7 | 4.1 | 5.6 | | Expanding business coverage and global network | 4.0% | – | – | – | | Adopting digital technology and upgrading internet service systems to provide integrated cross-border logistics services | 7.0% | 5.2 | 1.2 | 4.0 | | Strategic investments and/or acquisitions of businesses or assets complementary to the Group's business | 20.0% | 3.5 | – | 3.5 | | Establishing a trailer transportation service matching platform | 7.0% | 6.7 | – | 6.7 | | General corporate purposes and working capital requirements | 10.0% | – | – | – | | Total | 100.0% | 25.1 | 5.3 | 19.8 | Employees and Remuneration Policy As of June 30, 2025, the Group had 367 full-time employees, with staff costs recognized as RMB34.6 million, offering competitive remuneration, mandatory social insurance, and enhancing employee skills through training and mentorship programs - As of June 30, 2025, the Group had 367 full-time employees, with staff costs recognized as an expense of RMB34.6 million[67] - Remuneration packages include fixed salaries, allowances, and performance bonuses, determined based on qualifications, experience, capabilities, and market remuneration levels[67] - The Group contributes to mandatory social insurance and housing provident funds for employees and provides induction training, mentorship programs, and regular training sessions to enhance employee skills[67] Events After Reporting Period This section describes significant corporate actions that occurred after the reporting period, including a share split and changes in board lot size Share Split The company implemented a 1-for-2 share split on July 28, 2025, where each existing share with a par value of US$0.0001 was split into two subdivided shares with a par value of US$0.00005 each - The share split became effective on July 28, 2025, where each existing share with a par value of US$0.0001 was split into two (2) subdivided shares with a par value of US$0.00005 each[68] Change in Board Lot Size Effective July 28, 2025, the board lot size for trading on the Stock Exchange changed from 200 existing shares to 300 subdivided shares - The board lot size for trading on the Stock Exchange changed from 200 existing shares to 300 subdivided shares, effective July 28, 2025[69] Corporate Governance and Other Information This section covers the company's compliance with corporate governance codes, securities dealing standards, audit committee review, and publication of interim results Purchase, Sale or Redemption of Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period, and no treasury shares were held at period-end - Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[70] - As of June 30, 2025, the company did not hold any treasury shares[70] Interim Dividend The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[71] Compliance with Corporate Governance Code The company has adopted the Corporate Governance Code of the Hong Kong Stock Exchange, explaining that the Chairman and CEO roles are held by the same person, which is deemed beneficial for strategic execution and efficiency - The company has adopted the Corporate Governance Code set out in Appendix C1 Part 2 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as its own corporate governance code[72] - Mr. Xu Xin holds both the Chairman of the Board and Chief Executive Officer positions, which the Board believes facilitates faster and more efficient formulation and execution of business strategies, with the Board's operations sufficient to maintain a balance of power[72] - Except as disclosed, the Board believes that the company has complied with all applicable code provisions set out in the Corporate Governance Code during the period[73] Compliance with Model Code for Securities Transactions The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, with all directors and relevant employees confirming compliance with the required standards during the period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as a guide for directors' dealings in the company's securities[74] - All directors and relevant employees have confirmed their compliance with the required standards set out in the Model Code during the period[74] Review by Audit Committee The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and concurred with management - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[75] - The Audit Committee and the company's management have also reviewed and concurred with the accounting principles and practices adopted by the Group[75] Publication of Interim Results and Report This interim results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the company, with the interim report to be dispatched to shareholders and posted on the aforementioned websites in due course - This interim results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the company (www.lcang.com)[76](index=76&type=chunk) - The company's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be dispatched to shareholders and posted on the aforementioned websites in due course[76]