贝克微(02149) - 2025 - 中期业绩

Company Information and Financial Summary This section provides an overview of the company's basic information, financial performance, and interim dividend policy for the first half of 2025 Company Basic Information This report presents the unaudited interim results announcement of Suzhou BaTeLab Co., Ltd. for the six months ended June 30, 2025 - Company name: Suzhou BaTeLab Co., Ltd. (Stock Code: 2149)[2] - Reporting period: Six months ended June 30, 2025[2] Financial Summary The company achieved moderate revenue and profit growth with a slight increase in gross margin in the first half of 2025, demonstrating stable operating performance 2025 First Half Financial Summary | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 291,701 | 290,554 | 0.4 | | Gross Profit | 150,970 | 148,959 | 1.4 | | Profit Before Tax | 77,148 | 67,116 | 14.9 | | Profit for the Period | 77,148 | 67,116 | 14.9 | - Gross margin increased from 51.3% in the first half of 2024 to 51.8% in the first half of 2025[4] Interim Dividend The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[6] Unaudited Interim Financial Statements This section presents the company's detailed unaudited financial statements, including the statement of profit or loss, financial position, and explanatory notes Statement of Profit or Loss and Other Comprehensive Income The company achieved growth in revenue and profit during the reporting period, with significant increases in operating profit and profit before tax, leading to a corresponding rise in earnings per share Summary of Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 291,701 | 290,554 | | Gross Profit | 150,970 | 148,959 | | Operating Profit | 82,294 | 70,496 | | Profit Before Tax | 77,148 | 67,116 | | Profit and Total Comprehensive Income for the Period | 77,148 | 67,116 | | Basic Earnings Per Share (RMB) | 1.274 | 1.119 | | Diluted Earnings Per Share (RMB) | 1.266 | 1.119 | - Operating profit increased by 16.7% year-on-year to RMB 82,294 thousand[8] - Finance costs increased from RMB 3,380 thousand in the first half of 2024 to RMB 5,146 thousand in the first half of 2025[8] Statement of Financial Position As of June 30, 2025, the company's total assets and net assets both increased, with a significant rise in net current assets, maintaining a healthy capital structure Summary of Statement of Financial Position | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-Current Assets | 128,532 | 157,839 | | Current Assets | 1,686,592 | 1,450,973 | | Current Liabilities | 623,632 | 601,826 | | Net Current Assets | 1,062,960 | 849,147 | | Net Assets | 1,190,049 | 1,005,004 | | Share Capital | 63,000 | 60,000 | | Reserves | 1,127,049 | 945,004 | | Total Equity | 1,190,049 | 1,005,004 | - Net current assets increased from RMB 849,147 thousand as of December 31, 2024, to RMB 1,062,960 thousand as of June 30, 2025[9] - Share capital increased by RMB 3,000 thousand due to the placement of shares[10][42] Notes to the Interim Financial Statements This section details the basis of preparation, significant accounting policies, and the composition and changes of various financial statement items, providing context for understanding the financial data 1 General Information This section provides an overview of the company's establishment, listing, and principal business activities - The company was incorporated on November 12, 2010, in Suzhou, Jiangsu Province, China, restructured into a joint stock company in November 2021, and listed on the Main Board of the Hong Kong Stock Exchange on December 28, 2023[11] - The company primarily engages in the research, development, and sales of high-performance analog integrated circuit design products[12] 2 Basis of Preparation and 3 Significant Accounting Policies This section outlines the accounting standards and principles used for preparing the interim financial statements, including new accounting standard amendments - The interim 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 Listing Rules of the Stock Exchange[15] - Amendments to Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants were first applied in this period, with no significant impact on financial performance and position[17][18] 4 Revenue and Segment Reporting This section details the company's revenue breakdown by product category and confirms its single operating segment Revenue from Contracts with Customers by Product Category | Product Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Sales of Analog IC Patterned Wafers | 291,701 | 290,554 | - The company has only one operating segment, the sale of analog IC patterned wafers, with all revenue derived from Mainland China[22][23] 5 Other Income, Gains and Losses This section provides a breakdown of other income, gains, and losses, highlighting the components such as interest income and government grants Details of Other Income, Gains and Losses | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Interest Income | 6,456 | 8,045 | | Government Grants | 5,817 | 6,338 | | Rental Income | 373 | 387 | | Net Exchange (Loss)/Gain | (5,812) | 2,312 | | Total | 6,834 | 17,082 | - Government grants are primarily for encouraging the IC industry and high-tech R&D projects, listing incentives, and additional input VAT deductions[25] 6 Profit Before Tax This section details the components deducted in calculating profit before tax, including finance costs, staff costs, and R&D expenses Deductions from Profit Before Tax | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Total Finance Costs | 5,146 | 3,380 | | Total Staff Costs | 20,389 | 21,831 | | Cost of Inventories | 181,825 | 197,327 | | Total Depreciation | 4,596 | 3,849 | | Impairment Loss on Trade and Other Receivables | 1,084 | 3,517 | | Research and Development Expenses | 56,364 | 70,812 | | Amortisation of Intangible Assets | 44 | 26 | - Defined contribution retirement scheme contributions within staff costs significantly increased from RMB 585 thousand to RMB 3,186 thousand[26] - Research and development expenses include staff costs of RMB 10,048 thousand and depreciation of RMB 1,271 thousand[27] 7 Income Tax This section explains the company's income tax rates and the tax incentives it enjoys, including exemptions and R&D expense deductions - The company's corporate income tax rate is 25%, but it enjoys tax exemption benefits under relevant policies[28] - The company entered its first assessable year in 2023, enjoying tax exemption from 2024 to 2027, and will subsequently be taxed at a preferential rate of 10%[29] - The company is entitled to a 100% super deduction for eligible research and development expenses[29] 8 Earnings Per Share This section presents the basic and diluted earnings per share, explaining the factors contributing to their changes Earnings Per Share Data | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic Earnings Per Share | 1.274 | 1.119 | | Diluted Earnings Per Share | 1.266 | 1.119 | - Both basic and diluted earnings per share increased, primarily due to higher profit for the period[30][31] - Diluted earnings have been adjusted for the potential ordinary share impact under the company's employee restricted share unit scheme[31] 9 Right-of-Use Assets This section reports the changes in right-of-use assets, specifically noting a deduction due to lease agreement modifications - For the six months ended June 30, 2025, the company recognized a deduction of RMB 1,067 thousand in right-of-use assets due to modifications in lease agreements[32] 10 Financial Assets at Fair Value Through Other Comprehensive Income This section describes the company's strategic investment in a limited partnership, which is measured at fair value through other comprehensive income - The company holds a 29.4% limited partnership interest in a limited partnership, a strategic investment with a fair value maintained at RMB 30,000 thousand[33][34] - No dividends were received from this investment during the reporting period[34] 11 Other Non-Current Assets This section details the composition and changes in other non-current assets, including prepayments for property, plant, and equipment, and investment deposits Details of Other Non-Current Assets | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Prepayments for Construction and Property, Plant and Equipment | 35,193 | 36,548 | | Investment Deposits | – | 24,525 | | Total | 35,193 | 61,073 | - Investment deposits (for semiconductor manufacturing projects) were reduced to zero as of June 30, 2025[35] 12 Trade and Other Receivables This section provides a breakdown and aging analysis of trade and other receivables, noting an increase primarily due to extended credit terms for customers Details of Trade and Other Receivables | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Receivables and Bills Receivable | 71,140 | 50,541 | | Other Receivables and Deposits | 958 | 962 | | Total | 72,098 | 51,503 | Aging Analysis of Trade Receivables and Bills Receivable | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 month | 49,667 | 20,482 | | 1 to 2 months | 5,964 | 20,132 | | 2 to 3 months | 3,602 | 9,415 | | Over 3 months | 11,907 | 512 | - Trade receivables and bills receivable significantly increased, primarily due to appropriately extended credit terms for customers with good credit standing[36] 13 Prepayments This section details the increase in prepayments, primarily driven by increased raw material purchases to support business expansion Details of Prepayments | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Prepayments to Suppliers | 535,907 | 396,053 | | Others | 396 | 238 | | Total | 536,303 | 396,291 | - Prepayments significantly increased, primarily for purchasing raw materials to meet the demands of expanding business operations[37] 14 Pledged Bank Deposits This section reports the amount of bank deposits pledged as security for bank acceptance bills Pledged Bank Deposits | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Pledged Bank Deposits | 60,166 | 51,757 | - Bank deposits are pledged as security for the issuance of bank acceptance bills and will be released upon settlement[39] 15 Trade and Other Payables This section details the composition and aging analysis of trade and other payables, noting a decrease primarily due to reduced contract liabilities Details of Trade and Other Payables | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Payables and Bills Payable | 247,547 | 216,563 | | Contract Liabilities | 1,281 | 40,138 | | Other Payables and Accruals | 10,863 | 20,966 | | Total | 259,691 | 277,667 | Aging Analysis of Trade Payables and Bills Payable | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 3 months | 195,133 | 110,802 | | 3 to 6 months | 52,414 | 105,761 | | Total | 247,547 | 216,563 | - Total trade and other payables decreased, primarily due to a reduction in contract liabilities for output VAT to be transferred as of December 31, 2024[40][91] 16 Capital, Reserves and Dividends This section outlines the changes in share capital and share premium due to share placement and confirms no dividends were paid or declared Changes in Share Capital | Item | Number of Ordinary Shares (thousand shares) | Share Capital (RMB '000) | Share Premium (RMB '000) | Total (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | January 1, 2024 / June 30, 2024 / December 31, 2024 | 60,000 | 60,000 | 530,648 | 590,648 | | Placement of Shares | 3,000 | 3,000 | 104,072 | 107,072 | | June 30, 2025 | 63,000 | 63,000 | 634,720 | 697,720 | - The company placed 3,000,000 H shares on May 28, 2025, with net proceeds totaling RMB 107,072 thousand[42] - The company did not pay or declare any dividends during the reporting period[44] Management Discussion and Analysis This section provides a comprehensive review of the company's business performance, financial results, risk factors, and future outlook Business Review and Outlook In the first half of 2025, the company continued to focus on the high-end industrial analog IC market, strengthening its competitive advantages through technological innovation and business expansion, while also outlining future market opportunities and challenges Market Overview This section provides an overview of the global analog IC industry's recovery, demand drivers, and the impact of external trade environment on the Chinese market - The global analog IC industry continued its recovery trend in the first half of 2025, with leading companies experiencing revenue rebound[45] - The electrification and intelligent development of global manufacturing, along with emerging applications, continue to drive demand for high-performance analog chips[45] - Fluctuations in the external trade environment increase risks for China's analog chip industry but are expected to accelerate the import substitution process[45] Business Overview This section highlights the company's focus on high-end industrial analog ICs, its strategic optimizations, and key financial achievements during the reporting period - The company continues to focus on the high-end industrial analog IC patterned wafer market, maintaining its performance advantage through core product, business, and technological competitiveness[46] - During the reporting period, the company optimized its machine learning-based semi-automated chip design methods and actively launched new industrial products, solidifying its differentiated competitive advantage[46] - Revenue for the reporting period reached approximately RMB 291.7 million, a year-on-year increase of 0.4%, with a gross margin of approximately 51.8%[46] Principal Businesses and Products This section describes the company's position as a leading industrial analog IC provider, its product portfolio, and its extensive intellectual property and application range - The company is one of China's leading industrial analog IC patterned wafer providers, with products based on self-developed EDA and IP libraries[47] - The company possesses a product matrix centered on power management and signal chain, extending to a full range of industrial analog chips, with over 850 product models sold[47] - As of June 30, 2025, the company holds 123 accumulated invention patents, has developed over 600 IP modules, and expanded its diversified end-application scope to include industrial, automotive, and communication sectors[48] Future Outlook This section outlines the company's expectations for continued domestic demand in key sectors and its strategy to enhance competitiveness and supply chain resilience - Domestic demand in new energy vehicles, data centers, and green energy management is expected to deepen, but external competition and changes in the trade environment will pose challenges[49] - The company will be market-oriented, enhancing product coverage and competitiveness, and strengthening its full industry chain layout capabilities to address supply chain challenges[49] Financial Review This section provides a detailed analysis of the company's financial performance during the reporting period, including revenue composition, cost control, profit changes, and various expenses, revealing the impact of improved operational efficiency and market strategy adjustments on financial results Revenue This section analyzes the company's revenue growth, breakdown by product line and sales channel, and the strategic shift towards direct sales Revenue by Business Line | Business Line | 2025 (RMB '000) | Share (%) | 2024 (RMB '000) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Sales of Power Management Products | 263,108 | 90.2 | 256,504 | 88.3 | | Sales of Signal Chain Products | 28,593 | 9.8 | 34,050 | 11.7 | | Total | 291,701 | 100.0 | 290,554 | 100.0 | Revenue by Sales Channel | Sales Channel | 2025 (RMB '000) | Share (%) | 2024 (RMB '000) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Sales to Distributors | 225,100 | 77.2 | 261,423 | 90.0 | | Direct Sales | 66,601 | 22.8 | 29,131 | 10.0 | | Total | 291,701 | 100.0 | 290,554 | 100.0 | - Total revenue increased by 0.4% year-on-year to RMB 291.7 million, primarily driven by the launch of new industrial products, expansion with key customers, and new client acquisition[51] - Revenue from power management products grew by 2.6%, while signal chain product revenue decreased by 16.1% due to changes in customer demand[52] - Direct sales revenue significantly increased by 128.9% to RMB 66.6 million, while sales to distributors decreased by 13.9%, reflecting the company's strategic shift towards a direct sales model[52][53] Cost of Sales This section notes a slight decrease in the cost of sales during the reporting period - Cost of sales decreased by 0.6% year-on-year to RMB 140.7 million, showing minimal change[54] Gross Profit and Gross Margin This section analyzes the increase in gross profit and gross margin, with a detailed breakdown by business line - Gross profit increased by 1.3% year-on-year to RMB 151.0 million, with gross margin rising from 51.3% to 51.8%[55] Gross Profit and Gross Margin by Business Line | Business Line | 2025 Gross Profit (RMB '000) | 2025 Gross Margin (%) | 2024 Gross Profit (RMB '000) | 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Sales of Power Management Products | 135,067 | 51.3 | 129,803 | 50.6 | | Sales of Signal Chain Products | 15,908 | 55.6 | 19,156 | 56.3 | | Total | 150,975 | 51.8 | 148,959 | 51.3 | - Gross profit from power management products increased by 4.1%, with gross margin improving by 0.7 percentage points; gross profit from signal chain products decreased by 16.7%, with gross margin declining by 0.7 percentage points[56][57] Other Income, Gains and Losses This section reports a significant decrease in other income, gains, and losses, primarily attributed to lower interest income - Other income, gains, and losses decreased by 60.2% year-on-year to RMB 6.8 million, mainly due to reduced interest income from lower HKD deposit rates[58] Distribution Costs This section notes an increase in distribution costs, reflecting the company's efforts to expand its direct sales customer base - Distribution costs increased by 33.3% year-on-year to RMB 4.0 million, primarily due to the company's efforts to expand direct sales customers[59] Administrative Expenses This section reports a decrease in administrative expenses, mainly due to reduced intermediary and consulting fees post-listing - Administrative expenses decreased by 30.3% year-on-year to RMB 15.2 million, mainly due to reduced intermediary, consulting, and agency fees following the company's stable operation post-listing[60] Research and Development Expenses This section details a decrease in R&D expenses, attributed to improved efficiency and changes in remuneration policies - Research and development expenses decreased by 20.3% year-on-year to RMB 56.4 million, primarily due to reduced material costs (-26.0%) from improved R&D efficiency and lower staff remuneration (-16.0%) due to changes in the remuneration system[61] Finance Costs This section reports an increase in finance costs, mainly due to a rise in short-term bank loans - Finance costs increased by 50.0% year-on-year to RMB 5.1 million, primarily due to an increase in short-term bank loans[62] Profit Before Tax This section highlights the increase in profit before tax, driven by enhanced management efficiency and reduced administrative and R&D expenses - Profit before tax increased by 14.9% year-on-year to RMB 77.1 million, primarily benefiting from improved management efficiency and reduced administrative and R&D expenses[63] Income Tax This section explains the zero income tax expense during the reporting period, attributed to tax incentives and R&D expense deductions - Income tax expense for the reporting period was zero, primarily due to the company enjoying income tax incentives and R&D expense super deductions[64] Profit for the Period This section reports the increase in profit for the period, consistent with the growth in profit before tax - Profit for the period increased by 14.9% year-on-year to RMB 77.1 million, consistent with the reasons for the increase in profit before tax[65] Non-HKFRS Measures The company uses adjusted net profit as a supplementary financial measure to eliminate the potential impact of listing expenses and share-based payments, thereby better comparing operating performance across different periods - Adjusted net profit is defined as profit for the period plus listing expenses and share-based payments[67] Reconciliation of Adjusted Net Profit | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit for the Period | 77,148 | 67,116 | | Add: Listing Expenses | – | – | | Add: Share-based Payments | 878 | – | | Adjusted Net Profit | 78,026 | 67,116 | Risk Factors The company faces various risks including market, operational, investment, human resources, financial, and foreign exchange risks, which are mitigated through established risk management procedures, though not entirely eliminated Market Risk This section defines market risk as the potential for adverse impact on profitability due to market price changes, which the company's management actively monitors - Market risk refers to the risk of profitability being adversely affected or business objectives being impacted by changes in market prices, which the company's management actively manages and monitors[69] Operational Risk This section defines operational risk as potential losses from inadequate internal processes, personnel, or systems, or external events, managed by various functional departments - Operational risk refers to the risk of losses arising from inadequate or failed internal processes, people, and systems, or from external events, managed by various functional divisions and departments[70] Investment Risk This section describes investment risk as the possibility of losses relative to expected returns, managed through authorization systems and detailed analysis - Investment risk refers to the possibility of any investment incurring losses relative to its expected returns, managed by the company through authorization systems and detailed analysis[71] Risk of Human Resources Supply and Retention This section addresses the risk of failing to attract and retain key personnel with necessary skills and experience, which the company mitigates through attractive remuneration - The company faces the risk of being unable to attract and retain key personnel with the required skills, experience, and talent, and will offer attractive remuneration packages[72] Financial Risk This section identifies various financial risks, including interest rate, credit, and liquidity risks, which the company manages through established risk management procedures - The company faces financial risks such as interest rate risk, credit risk, and liquidity risk, and has established risk management procedures to mitigate these risks[73] Foreign Exchange Risk This section explains that the company's financial statements are presented in RMB, and exchange rate fluctuations may impact financial performance, with no current hedging policy - The company's financial statements are presented in RMB, and exchange rate fluctuations may affect its financial position and operating results; currently, there is no foreign currency hedging policy, but it is regularly reviewed[74] Capital Management The company is committed to ensuring its ability to continue as a going concern and maintaining a healthy capital ratio to support business development and maximize shareholder value, managed through its capital gearing ratio - The objectives of capital management are to ensure the ability to continue as a going concern, maintain a healthy capital ratio, support business development, and maximize shareholder value[75] - The company manages capital using the capital gearing ratio, which was 30.6% as of June 30, 2025 (June 30, 2024: 32.4%)[76] Liquidity and Financial Resources The company maintained a strong financial position and ample liquidity during the reporting period, with a significant increase in current assets, though cash and cash equivalents slightly decreased - Current assets as of June 30, 2025, were RMB 1,686.6 million, an increase of 16.2% from December 31, 2024, primarily due to increases in inventories, prepayments, and cash and cash equivalents[77] - Cash and cash equivalents slightly decreased by 0.4% to RMB 633.7 million, mainly due to increased prepayments resulting from business expansion[77] - Bank loans as of June 30, 2025, amounted to RMB 362.1 million, all repayable within one year[77] Capital Expenditure The company's capital expenditure significantly decreased during the reporting period but is expected to increase with business growth, funded primarily by operating cash flow, bank borrowings, and net proceeds from the listing - As of June 30, 2025, capital expenditure was RMB 1.0 million, a significant decrease from RMB 32.0 million in the same period of 2024[78] - Future capital expenditure is expected to increase with business growth, funded by cash generated from operations, bank borrowings, and net proceeds from the listing[79] Capital Commitments The company's capital commitments at the end of the reporting period primarily relate to contracted but unprovided additions to property, plant, and equipment, with a slight decrease in amount - As of June 30, 2025, capital commitments amounted to RMB 65.9 million, a slight decrease from RMB 66.4 million as of December 31, 2024[80] Pledged Assets As of the end of the reporting period, some of the company's bank deposits were pledged as security for bank acceptance bills, with no other assets pledged - As of June 30, 2025, RMB 60.2 million in bank deposits were pledged as security for the issuance of bank acceptance bills[81] Loans and Borrowings The company's total outstanding bank loans increased, primarily to meet working capital needs for daily operations, with all borrowings maturing within one year - Total outstanding bank loans increased from RMB 320.2 million as of December 31, 2024, to RMB 362.1 million as of June 30, 2025[82] - All interest-bearing borrowings are unsecured and unpledged, with effective interest rates ranging from 2.60% to 3.45% per annum, and all borrowings are due within one year[82] - As of June 30, 2025, the company had unutilized bank facilities of RMB 695.1 million[83] Contingent Liabilities As of the end of the reporting period, the company had no contingent liabilities - As of June 30, 2025, the company had no contingent liabilities[84] Property, Plant and Equipment The company's total property, plant, and equipment slightly decreased, primarily comprising equipment and machinery, motor vehicles, office equipment and furniture, construction in progress, and leasehold improvements - Total property, plant, and equipment decreased from RMB 62.1 million as of December 31, 2024, to RMB 61.1 million as of June 30, 2025[85] - Construction in progress primarily includes purchased R&D equipment (awaiting installation) and the renovation of the Suzhou R&D center[85] Right-of-Use Assets The company's right-of-use assets decreased, primarily due to reduced rental payments and increased accumulated depreciation - Right-of-use assets decreased from RMB 4.0 million as of December 31, 2024, to RMB 1.7 million as of June 30, 2025[86] Financial Assets at Fair Value Through Other Comprehensive Income The company's financial assets at fair value through other comprehensive income remained stable, primarily representing strategic investments - These financial assets remained at RMB 30,000 thousand, primarily representing the company's 29.4% interest as a limited partner in a limited liability partnership[87] Inventories The company's inventories significantly increased to meet customer demand and market expectations - Inventories increased from RMB 315.4 million as of December 31, 2024, to RMB 381.6 million as of June 30, 2025, primarily stocked based on customer demand and market assessment[88] Trade and Other Receivables Trade receivables increased, primarily due to the company appropriately extending credit terms for customers with good credit to boost order volumes - Trade receivables increased from RMB 50.5 million as of December 31, 2024, to RMB 71.1 million as of June 30, 2025[89] - The increase was primarily due to appropriately extended credit terms for customers with good credit, enhancing customer willingness to place orders and increasing order volumes[89] Prepayments Prepayments significantly increased, reflecting the growing demand for raw material procurement due to the company's expanding business scale - Prepayments increased from RMB 396.3 million as of December 31, 2024, to RMB 536.3 million as of June 30, 2025[90] - The increase was primarily due to expanding business scale and growing demand for raw material procurement[90] Trade and Other Payables Total trade and other payables decreased, primarily influenced by a reduction in contract liabilities for output VAT to be transferred - Trade and other payables decreased from RMB 277.7 million as of December 31, 2024, to RMB 259.7 million as of June 30, 2025[91] - The decrease was primarily due to contract liabilities for output VAT to be transferred, recognized as RMB 5.3 million as of December 31, 2024[91] Employees and Remuneration Policy The company maintains a stable employee team, attracting and retaining talent through a robust R&D system, training mechanisms, and competitive remuneration and welfare policies - As of June 30, 2025, the company had 112 full-time employees, with 68 R&D personnel, accounting for over 60%[92] - The company builds its R&D system and training mechanisms through a full-stack design platform, offering competitive salaries, performance bonuses, and other incentives[92][93] Compliance with Relevant Laws and Regulations The company strictly adheres to Chinese laws and regulations concerning the IC industry, cybersecurity, data protection, intellectual property, labor, and product liability, with no material non-compliance during the reporting period - The company strictly adheres to Chinese laws and regulations concerning the IC industry, cybersecurity, data protection, intellectual property, labor, and product liability[94] - During the reporting period, the company had no material breaches or non-compliance with applicable laws and regulations[95] Future Plans for Material Investments and Capital Assets As of the end of the reporting period, the company had no future plans for material investments and capital assets other than those disclosed in the prospectus - As of June 30, 2025, the company had no other plans for material investments and capital assets, except for those disclosed in the prospectus[96] Material Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures During the reporting period, the company had no material investments, acquisitions, or disposals concerning subsidiaries, associates, or joint ventures - During the reporting period, the company had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[97] Corporate Governance and Other Information This section covers the company's adherence to corporate governance standards, audit committee review, and other relevant corporate information Compliance with Corporate Governance Code The company has adopted and complied with the Corporate Governance Code, with a deviation where the roles of Chairman and Chief Executive Officer are combined, which the Board believes is in the company's overall best interest - The company has adopted and complied with the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules[98] - There is a deviation from Code Provision C.2.1, where the roles of Chairman of the Board and Chief Executive Officer are combined and held by Mr. Zhang Guangping[98] - The Board believes this combined role facilitates unified leadership and effective execution of administrative functions within the company, serving the overall interests of the company and its shareholders[98] Compliance with Model Code The company's directors and supervisors have confirmed compliance with the Model Code for Securities Transactions set out in Appendix C3 of the Listing Rules during the reporting period - The company's directors and supervisors have confirmed compliance with the Model Code for Securities Transactions set out in Appendix C3 of the Listing Rules during the reporting period[100] Audit Committee Review of Interim Results The Audit Committee has reviewed the company's interim results and believes the relevant statements comply with applicable accounting standards, Listing Rules, and legal requirements - The Audit Committee has reviewed the company's interim results and discussed accounting principles, risk management, internal controls, and financial reporting matters with management and auditors[101] - The Audit Committee believes the statements comply with applicable accounting standards, Listing Rules, and legal requirements, and appropriate disclosures have been made[101] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, the company did not purchase, sell, or redeem any of its listed securities, nor did it hold any treasury shares - During the reporting period, the company did not purchase, sell, or redeem any of its listed securities, nor did it hold any treasury shares[102] Material Events After the Reporting Period As of the date of this announcement, no material events affecting the company have occurred after the reporting period - As of the date of this announcement, no material events affecting the company have occurred after the reporting period[103] Interim Dividend The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[104] Publication of Interim Results and Interim Report This interim results announcement has been published on the company's website and the Stock Exchange's website, and the interim report will be dispatched to shareholders and published on the websites in due course - This interim results announcement has been published on the company's website (www.batelab.com) and the Stock Exchange's website (**www.hkexnews.hk**)[105](index=105&type=chunk) - The interim report will be dispatched to shareholders who have requested printed copies and published on the aforementioned websites in due course[105] Board of Directors As of the announcement date, the Board of Directors comprises three executive directors, one non-executive director, and four independent non-executive directors - The Board of Directors includes Executive Directors Mr. Zhang Guangping, Mr. Li Zhen, and Mr. Li Yi; Non-executive Director Mr. Kong Jianhua; and Independent Non-executive Directors Mr. Zhao Heming, Mr. Wen Chengge, Mr. Ma Ming, and Ms. Kang Yuanshu[107]