佑驾创新(02431) - 2025 - 中期业绩

Financial Highlights The company reported increased revenue and gross profit in H1 2025, but also a widened operating and net loss due to strategic investments Financial Highlights (RMB thousands, except percentages) | Financial Highlights | 2025 (Unaudited) | 2024 (Audited) | | :--- | :--- | :--- | | Revenue | 345,719 | 236,675 | | Gross Profit | 51,751 | 33,421 | | Gross Margin | 15.0% | 14.1% | | Operating Loss | (162,389) | (109,935) | | Loss for the Period | (162,287) | (112,048) | | Loss for the Period Attributable to Owners of the Company | (151,558) | (108,135) | | Loss for the Period Attributable to Non-controlling Interests | (10,729) | (3,913) | Business Review and Outlook The company achieved strong growth in H1 2025, driven by policy and market demand, with significant product iterations and market expansion Business Highlights In H1 2025, the company achieved strong business growth, particularly benefiting from policy-driven intelligent driving and smart cockpit market penetration - National policies are driving the development of the intelligent driving and smart cockpit industries, with AEBS mandatory installation expanding to passenger cars and light commercial vehicles, and DMS penetration expected to accelerate[4] Key Financial Indicators (RMB millions) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Total Revenue | 345.7 | 236.7 | 46.1% | | Gross Profit | 51.8 | 33.4 | 54.8% | | Gross Margin | 15.0% | 14.1% | +0.9 percentage points | | Loss for the Period | (162.3) | (112.0) | 44.8% | | Adjusted Loss for the Period | (142.6) | (82.4) | 73.0% | Intelligent Driving Product Iteration The company continuously iterates intelligent driving solutions, launching iPilot 4 Plus and iPilot 4 Pro, enhancing capabilities and securing OEM platform nominations - iPilot 4 Plus was launched in February 2025, based on Horizon Journey 6M chip, supporting multi-sensor fusion for full-scenario navigation assistance across urban, highway, and parking environments[6] - iPilot 4 Pro, launched in June 2025, utilizes a higher computing power chip (256 TOPS) to enhance decision-making in complex scenarios, extreme weather, and intricate intersections, securing OEM platform-level project nominations with mass production expected in H1 2026[6] L4 Autonomous Driving Business Breakthrough L4 autonomous mini-bus operations achieved commercial deployment in Suzhou and are expanding, with unmanned logistics vehicles expected for Q4 delivery - L4 autonomous mini-bus business achieved commercial deployment in Suzhou in February 2025, and has expanded operations to multiple provinces and cities including Heilongjiang, Shanghai, and Hangzhou, securing over 10 project orders[7] - The company is actively exploring cargo scenarios such as unmanned logistics, with the first generation of unmanned logistics vehicles designed for 5.5 cubic meters capacity and over 1 ton maximum load, expected for formal delivery in Q4 2025[7] Smart Cockpit Business Innovation Smart cockpit business achieved dual breakthroughs, launching a large model solution and a full-stack self-developed DMS all-in-one machine, aligning with integration trends - The new "Smart Butler BamBam" large model solution for cockpits was launched, deeply integrating multi-modal large model capabilities to enhance feature extraction and logical reasoning performance[8] - The full-stack self-developed iCabin Lite smart cockpit DMS all-in-one machine was released, highly integrating DMS cameras and controllers, meeting automakers' demands for development efficiency, cost control, and multi-model adaptation[9] Driving-Cockpit Integration Strategy The company's core strategy is "driving-cockpit integration," building a unified technical architecture to connect intelligent driving and cockpit data chains for closed-loop synergy - The core strategy of "driving-cockpit integration" involves building an integrated technical architecture covering perception, decision-making, and interaction layers[10] - This strategy aims to establish a closed-loop collaborative capability from environmental perception to human-machine interaction by connecting the data links of intelligent driving and smart cockpit functions[10] Customer Expansion and Platform Nominations The company expanded its customer ecosystem, securing new nominations from global joint ventures, luxury brands, and NEV manufacturers, enhancing expected production scale - During the reporting period, new customer nominations were secured from a global renowned automaker's joint venture and luxury brand, and a new energy vehicle manufacturer[11] - As of June 30, 2025, the company has mass-produced for 42 automotive original equipment manufacturers (OEMs), with 18 new project nominations from OEMs and Tier-1 suppliers[11] - The company secured model platform nominations from Great Wall Motor and a global renowned automaker, totaling 6 model platform projects from 4 OEM customers, expected to lead to higher mass production scale and operational efficiency[11] Overseas Development Strategy The company actively pursues overseas expansion, with products in multiple export models, collaborating with joint ventures and international Tier-1 suppliers, and establishing a Singapore subsidiary - Products have been applied in multiple export models, covering target markets including the EU, Australia, Singapore, Malaysia, India, South Korea, Dubai, Turkey, and Mexico[12] - The company has secured nomination collaborations with several joint venture automakers and entered the supply chains of international Tier-1 automotive parts enterprises through partnerships[12] - A subsidiary was established in Singapore, focusing on technical services and customer expansion, laying the foundation for broader overseas market cooperation[12] Business Review The company's H1 2025 performance shows significant revenue growth across intelligent driving, smart cockpit, and vehicle-road coordination solutions I. Intelligent Driving Solutions Intelligent driving solutions revenue increased by 32.4% to RMB 241.4 million, accounting for 69.8% of total revenue, offering comprehensive L0 to L4 solutions Intelligent Driving Solutions Revenue (RMB thousands) | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | % of Total (2025) | % of Total (2024) | | :--- | :--- | :--- | :--- | :--- | | Intelligent Driving Solutions Revenue | 241,392 | 182,279 | 69.8% | 77.0% | | iSafety Solutions | 193,269 | 152,867 | 55.9% | 64.6% | | iPilot Solutions | 38,064 | 29,412 | 11.0% | 12.4% | | iRobo Solutions | 10,058 | – | 2.9% | – | - Intelligent driving solutions revenue increased by 32.4% from RMB 182.3 million for the six months ended June 30, 2024, to RMB 241.4 million for the six months ended June 30, 2025[14][25] iSafety Solutions iSafety series offers L0 to L2 intelligent driving functions focused on enhancing vehicle safety, securing AEBS project nominations with expected mass production scale increase - iSafety solutions focus on L0 to L2 intelligent driving functions, highly compatible with mainstream single-chip system platforms, implementing functions based on low-computing power ECUs[15] - The company secured AEBS project nominations from multiple domestic mainstream commercial vehicle manufacturers, with mass production scale expected to further increase next year as new industry standards are implemented[15] iPilot Solutions iPilot series focuses on L2+ functions like NOA and HAVP, experiencing rapid market growth, with 4 new advanced driving assistance project nominations - iPilot series focuses on L2+ functions, offering Navigation on Autopilot (NOA), Home Area View Parking (HAVP), and Automated Parking Assist (APA), with the market experiencing rapid growth driven by the "Intelligent Driving for All" strategy, and NOA pre-installation increasing by 134.68% year-on-year[16] - 4 new advanced driving assistance project nominations were secured, covering multiple vehicle platforms from various OEMs, including 2 platform-level project nominations from Great Wall Motor[16] iRobo Solutions iRobo L4 autonomous driving business achieved commercial deployment of unmanned mini-buses in Suzhou, securing over 10 project orders, and is actively exploring unmanned logistics - iRobo L4 autonomous driving business achieved its first commercial deployment of unmanned mini-buses in Suzhou in February 2025, accumulating over 10 project orders[17] - The company is actively exploring cargo scenarios such as unmanned logistics, with the first generation of unmanned logistics vehicles now in open road testing, expected for formal delivery in Q4 2025[17] II. Smart Cockpit Solutions Smart cockpit solutions revenue increased by 99.0% to RMB 60.8 million, representing 17.6% of total revenue, with DMS projects achieving ASPICE V4.0 CL3 international assessment Smart Cockpit Solutions Revenue (RMB thousands) | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | % of Total (2025) | % of Total (2024) | | :--- | :--- | :--- | :--- | :--- | | Smart Cockpit Solutions Revenue | 60,784 | 30,540 | 17.6% | 12.9% | - Smart cockpit solutions revenue increased by 99.0% from RMB 30.5 million for the six months ended June 30, 2024, to RMB 60.8 million for the six months ended June 30, 2025[18][26] - The DMS driver monitoring project successfully passed the Automotive SPICE (ASPICE) V4.0 CL3 international assessment, marking the first domestic case to pass the in-vehicle machine learning model ML-SPICE assessment[19] - Products fully comply with EU ADDW (Advanced Driver Distraction Warning) and DDAW (Driver Drowsiness and Attention Warning System) regulations, contributing to OEMs achieving E-NCAP five-star ratings, demonstrating rich experience in overseas deployment[20] - EU GSR regulations mandate DDAW for all new passenger and commercial vehicles from July 2024, upgrading to ADDW by July 2026; domestic DMS installation rate is only 22.4%, with policy implementation expected to accelerate market development[21] - During the reporting period, the company continued to secure multiple project nominations, covering domestic brands, joint venture brands, and international Tier-1 suppliers, spanning commercial to passenger vehicles[22] III. Vehicle-Road Coordination Vehicle-road coordination revenue increased by 63.4% to RMB 38.6 million, accounting for 11.2% of total revenue, expanding application scenarios and enhancing traffic safety Vehicle-Road Coordination Revenue (RMB thousands) | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | % of Total (2025) | % of Total (2024) | | :--- | :--- | :--- | :--- | :--- | | Vehicle-Road Coordination Revenue | 38,599 | 23,626 | 11.2% | 10.0% | - Vehicle-road coordination revenue increased by 63.4% from RMB 23.6 million for the six months ended June 30, 2024, to RMB 38.6 million for the six months ended June 30, 2025[23][26] - Solutions integrate self-developed sensor equipment like radar and cameras, proprietary algorithms, and V2X technology, applied in highway and intersection traffic analysis, and industrial park access management[23] Business Outlook The company will focus on intelligent driving and smart cockpit as core businesses, emphasizing innovation, solution optimization, global market expansion, and strategic partnerships - The company will focus on intelligent driving and smart cockpit as core businesses, emphasizing technological innovation, solution optimization, global market expansion, and seeking cooperation opportunities to drive the development of the autonomous driving industry[24] - No material adverse changes in financial or trading position or prospects have occurred from June 30, 2025, to the date of this announcement[24] Management Discussion and Analysis The company's H1 2025 financial performance shows significant revenue and gross profit growth, alongside increased losses due to strategic R&D investments Financial Review During the reporting period, total revenue increased by 46.1% to RMB 345.7 million, gross profit grew by 54.8%, but loss for the period expanded by 44.8% Financial Performance Summary (RMB thousands) | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change | Change Rate | Primary Reason | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 345,719 | 236,675 | +109,044 | +46.1% | Increase in solution deliveries | | Cost of Sales | 293,968 | 203,254 | +90,714 | +44.6% | Increase in deliveries | | Gross Profit | 51,751 | 33,421 | +18,330 | +54.8% | Business growth and improved gross margin | | Gross Margin | 15.0% | 14.1% | +0.9% | - | Scale effect and increased iPilot revenue | | Selling Expenses | 53,382 | 32,015 | +21,367 | +66.7% | Consistent with revenue growth | | General and Administrative Expenses | 58,936 | 50,196 | +8,740 | +17.4% | Increase in management personnel salaries and recruitment | | Research and Development Expenses | 95,110 | 63,310 | +31,800 | +50.2% | Increase in R&D personnel and project investment | | Net Impairment Loss on Financial Assets | 9,936 | 6,595 | +3,341 | +50.7% | Increase in provisions for trade and other receivables | | Other Income | 8,362 | 6,259 | +2,103 | +33.6% | Amortization of deferred income and VAT refunds | | Other Gains/(Losses), Net | (5,138) | 2,501 | -7,639 | -305.4% | Foreign exchange loss due to HKD settlement increase | | Net Finance Costs | 102 | (2,113) | +2,215 | -104.8% | Increase in interest income from time deposits | | Loss for the Period | (162,287) | (112,048) | +50,239 | +44.8% | Increased investment in advanced assisted driving and L4 technologies | Non-IFRS Measures The company uses adjusted net loss as a non-IFRS measure to exclude non-cash expenses, facilitating comparable operational performance analysis Reconciliation of Loss for the Period to Adjusted Net Loss (RMB thousands) | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period | (162,287) | (112,048) | | Add: Share-based Payment Expenses | 19,737 | 15,311 | | Add: Listing Expenses | – | 14,298 | | Adjusted Net Loss | (142,550) | (82,439) | Liquidity and Capital Resources As of June 30, 2025, total cash and equivalents decreased, with increased net cash outflow from operations and higher total borrowings due to business expansion Liquidity and Capital Resources (RMB millions) | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents, Restricted Cash, and Time Deposits | 635.3 | 798.8 | -163.5 | | Net Cash Outflow from Operating Activities | 159.3 | 84.6 | +74.7 | | Total Borrowings | 289.2 | 191.5 | +97.7 | | Total Lease Liabilities | 13.7 | 21.0 | -7.3 | - The current ratio decreased from 3.14 times at year-end 2024 to 2.9 times as of June 30, 2025, and the debt-to-asset ratio decreased from 3.14 times to 2.8 times, primarily due to reduced cash and increased bank borrowings[42] Pledged Assets As of June 30, 2025, the company secured RMB 30.0 million in loans by pledging certain non-core patents - As of June 30, 2025, the company obtained RMB 30.0 million in loans by pledging certain non-core patents[43] Capital Expenditure and Commitments Capital expenditure decreased to RMB 24.0 million, while capital commitments, mainly for property, plant, and equipment, increased to RMB 14.9 million Capital Expenditure and Commitments (RMB millions) | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Capital Expenditure | 24.0 | 59.7 | -35.7 | | Capital Commitments | 14.9 (June 30, 2025) | 3.5 (Dec 31, 2024) | +11.4 | Contingent Liabilities As of June 30, 2025, the company had no significant contingent liabilities - As of June 30, 2025, the company had no significant contingent liabilities[45] Financial Risk Management The company's finance department manages market, credit, and liquidity risks according to board-approved policies to identify, assess, and hedge financial risks - Business activities are exposed to market risks (including foreign exchange risk, cash flow and fair value interest rate risk, and price risk), credit risk, and liquidity risk[46] - Risk management is primarily controlled by the finance department in accordance with policies approved by the Board, covering foreign exchange risk, interest rate risk, and credit risk[46] Significant Investments and Acquisitions/Disposals of Subsidiaries, Associates, and Joint Ventures For the six months ended June 30, 2025, the company had no significant investments or major acquisitions/disposals of subsidiaries, associates, and joint ventures - For the six months ended June 30, 2025, the company had no significant investments and/or major acquisitions or disposals of subsidiaries, associates, and joint ventures[47] Human Resources As of June 30, 2025, the company had 686 full-time employees, offering competitive compensation, long-term incentive plans, and prioritizing staff training and development - As of June 30, 2025, the company had 686 full-time employees, all located in China[48] - The company offers competitive compensation packages, including performance-based bonuses, long-term incentive plans (e.g., employee incentive plans for selected managers, high-potential talents, and key technical professionals), and employee benefit programs[48] - The company emphasizes employee training and development, providing onboarding training for new employees and tailored continuous training courses to enhance their skills[49] Condensed Consolidated Financial Statements This section presents the company's condensed consolidated financial statements, including the statement of comprehensive loss and statement of financial position Condensed Consolidated Statement of Comprehensive Loss For the six months ended June 30, 2025, the company's loss for the period expanded to RMB 162,287 thousand, primarily due to increased operating expenses Condensed Consolidated Statement of Comprehensive Loss (RMB thousands) | Indicator (RMB thousands) | H1 2025 (Unaudited) | H1 2024 (Audited) | | :--- | :--- | :--- | | Revenue | 345,719 | 236,675 | | Cost of Sales | (293,968) | (203,254) | | Gross Profit | 51,751 | 33,421 | | Operating Loss | (162,389) | (109,935) | | Net Finance Costs | 102 | (2,113) | | Loss for the Period | (162,287) | (112,048) | | Loss for the Period Attributable to Owners of the Company | (151,558) | (108,135) | | Basic and Diluted Loss Per Share (RMB yuan) | (0.38) | (0.31) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets decreased to RMB 1,578,619 thousand, while total liabilities increased to RMB 563,953 thousand Condensed Consolidated Statement of Financial Position (RMB thousands) | Indicator (RMB thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 141,097 | 139,193 | | Current Assets | 1,437,522 | 1,539,097 | | Total Assets | 1,578,619 | 1,678,290 | | Equity | | | | Equity Attributable to Owners of the Company | 1,014,645 | 1,134,802 | | Non-controlling Interests | 21 | 8,323 | | Total Equity | 1,014,666 | 1,143,125 | | Liabilities | | | | Non-current Liabilities | 69,374 | 45,359 | | Current Liabilities | 494,579 | 489,806 | | Total Liabilities | 563,953 | 535,165 | | Total Equity and Liabilities | 1,578,619 | 1,678,290 | Notes to the Financial Statements This section provides detailed notes to the condensed consolidated financial statements, covering general information, accounting policies, and specific financial line items 1. General Information Shenzhen iDriverPlus Technology Co., Ltd., established in 2014 and listed on the HKEX in 2024, primarily develops, manufactures, and sells intelligent driving solutions in China - The company was incorporated in Shenzhen on December 10, 2014, and restructured into a joint stock company on June 7, 2023[54] - The company successfully listed on the Main Board of the Stock Exchange of Hong Kong on December 27, 2024[55] - The Group is primarily engaged in the development, manufacturing, and sale of intelligent driving products and solutions in China[54] 2. Basis of Preparation and Changes in Accounting Policies The condensed consolidated interim financial information is prepared under IAS 34, with no significant impact from new or amended standards adopted during the period - The condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[58] - New and amended standards adopted during the reporting period (e.g., amendments to IAS 21) had no significant impact on the Group's financial position or operating results[60] - New or amended accounting standards issued but not yet effective (e.g., IFRS 18, IFRS 19) are not expected to have a significant impact on the Group's financial performance and position[60] 5. Revenue and Segment Information The Group operates as a single segment, primarily generating revenue from product sales (RMB 225,195 thousand) and service/vehicle-road coordination (RMB 115,580 thousand) in China - The Group considers its business as a single operating segment, with its primary market and revenue sources originating from mainland China[61][62] Revenue by Type (RMB thousands) | Revenue Type (RMB thousands) | H1 2025 (Unaudited) | H1 2024 (Audited) | | :--- | :--- | :--- | | Product Sales | 225,195 | 199,958 | | Services and Vehicle-Road Coordination | 115,580 | 36,487 | | Others | 4,944 | 230 | | Total | 345,719 | 236,675 | 4. Expenses by Nature Total expenses increased to RMB 501,396 thousand, driven by higher raw materials, employee benefits, service fees, and share-based payment expenses Expenses by Nature (RMB thousands) | Expense Type (RMB thousands) | H1 2025 (Unaudited) | H1 2024 (Audited) | | :--- | :--- | :--- | | Raw Materials and Consumables Used | 261,441 | 160,660 | | Employee Benefit Expenses | 111,818 | 86,751 | | Service Fees | 53,248 | 18,940 | | Share-based Payment Expenses | 19,737 | 15,311 | | Office and Travel Expenses | 13,108 | 7,562 | | Depreciation and Amortization | 8,387 | 7,121 | | Advertising and Promotion Expenses | 5,379 | 1,029 | | Inventory Impairment Provision | 2,247 | 9,119 | | Listing Expenses | – | 14,298 | | Total | 501,396 | 348,775 | 5. Other Income Other income, primarily government grants and VAT refunds, totaled RMB 8,362 thousand during the period, representing a 33.6% year-on-year increase Other Income (RMB thousands) | Income Type (RMB thousands) | H1 2025 (Unaudited) | H1 2024 (Audited) | | :--- | :--- | :--- | | Government Grants | 4,729 | 3,214 | | VAT Refunds | 3,633 | 3,045 | | Total | 8,362 | 6,259 | 6. Other (Losses) / Gains, Net Other gains, net, shifted from a RMB 2,501 thousand gain in the prior year to a RMB 5,138 thousand loss, primarily due to a significant increase in net foreign exchange losses Other (Losses) / Gains, Net (RMB thousands) | Indicator (RMB thousands) | H1 2025 (Unaudited) | H1 2024 (Audited) | | :--- | :--- | :--- | | Net Fair Value Gains on Financial Assets | 3,545 | 2,385 | | Net Foreign Exchange Losses | (6,300) | (204) | | Total | (5,138) | 2,501 | 7. Net Finance Costs Net finance costs shifted from a RMB 2,113 thousand loss in the prior year to a RMB 102 thousand gain, primarily driven by a significant increase in interest income from bank deposits Net Finance Costs (RMB thousands) | Indicator (RMB thousands) | H1 2025 (Unaudited) | H1 2024 (Audited) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 5,092 | 1,606 | | Interest Expense on Bank Borrowings | (4,568) | (3,039) | | Interest Expense on Lease Liabilities | (422) | (743) | | Net Finance Costs | 102 | (2,113) | 8. Income Tax Expense Income tax expense for the period was zero, benefiting from preferential tax rates for high-tech and small low-profit enterprises, and R&D expense super deduction policies - Income tax expense for the reporting period was zero[69] - The company and its subsidiaries, such as Nanjing iDriverPlus Technology, have obtained High-Tech Enterprise qualifications, enjoying a preferential income tax rate of 15%[70] - Certain mainland China subsidiaries qualify as "small low-profit enterprises," enjoying a preferential income tax rate of 20% and benefiting from R&D expense super deduction policies[71] 9. Loss Per Share Basic and diluted loss per share expanded to RMB 0.38 from RMB 0.31 in the prior year, with potential ordinary shares having an anti-dilutive effect due to the loss Loss Per Share (RMB yuan) | Indicator | H1 2025 (Unaudited) | H1 2024 (Audited) | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (RMB thousands) | (151,558) | (108,135) | | Weighted Average Number of Ordinary Shares in Issue (thousands) | 399,858 | 351,277 | | Basic and Diluted Loss Per Share (RMB yuan) | (0.38) | (0.31) | - As the Group incurred losses for the six months ended June 30, 2025, and 2024, the inclusion of any potential ordinary shares in the calculation of diluted loss per share would have an anti-dilutive effect; therefore, diluted loss per share is the same as basic loss per share for each period[74] 10. Inventories Total inventories amounted to RMB 140,666 thousand, with a net value of RMB 121,913 thousand after inventory provision, a slight decrease from year-end 2024 Inventories (RMB thousands) | Inventory Type (RMB thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Raw Materials | 54,685 | 62,364 | | Work-in-Progress | 13,275 | 9,990 | | Finished Goods | 45,924 | 45,508 | | Contract Fulfillment Costs | 26,782 | 22,936 | | Total | 140,666 | 140,798 | | Less: Provision for Inventories | (18,753) | (16,637) | | Net Value | 121,913 | 124,161 | 11. Trade and Bills Receivables Net trade and bills receivables totaled RMB 505,177 thousand, largely consistent with year-end 2024, including RMB 517,027 thousand due from third parties Trade and Bills Receivables (RMB thousands) | Indicator (RMB thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Bills Receivable | 22,867 | 49,681 | | Trade Receivables (Due from Third Parties) | 517,027 | 489,779 | | Less: Provision for Credit Losses | (34,717) | (32,970) | | Net Amount | 505,177 | 506,490 | Ageing Analysis of Trade Receivables (RMB thousands) | Ageing (RMB thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 1 year | 434,145 | 459,444 | | 1 to 2 years | 66,113 | 65,479 | | 2 to 3 years | 20,893 | 9,109 | | Over 3 years | 18,743 | 5,428 | | Total | 539,894 | 539,460 | 12. Borrowings Total borrowings significantly increased to RMB 289,154 thousand (non-current RMB 64,100 thousand, current RMB 225,054 thousand) from RMB 191,508 thousand at year-end 2024, primarily for business expansion Borrowings (RMB thousands) | Borrowing Type (RMB thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Non-current Liabilities | | | | Bank Borrowings (Unsecured and Unguaranteed) | 68,100 | 53,500 | | Bank Borrowings (Unsecured but Guaranteed) | 33,362 | 39,796 | | Less: Long-term Borrowings Due Within One Year | (37,362) | (61,196) | | Total Non-current Borrowings | 64,100 | 32,100 | | Current Liabilities | | | | Long-term Borrowings Due Within One Year (Unsecured and Unguaranteed) | 4,000 | 21,400 | | Long-term Borrowings Due Within One Year (Unsecured but Guaranteed) | 33,362 | 39,796 | | Bank Borrowings (Unsecured and Unguaranteed) | 157,692 | 78,212 | | Bank Borrowings (Unsecured but Pledged) | 30,000 | 20,000 | | Total Current Borrowings | 225,054 | 159,408 | | Total Borrowings | 289,154 | 191,508 | - As of June 30, 2025, the effective annual interest rate for guaranteed long-term loans ranged from 3.45% to 3.5%, and the annualized interest rate for short-term loans was 3.9%, secured by certain non-core patents[76] 13. Trade Payables Trade payables amounted to RMB 186,775 thousand, primarily for raw material purchases, representing a decrease from year-end 2024 Trade Payables Ageing Analysis (RMB thousands) | Ageing (RMB thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Within 1 year | 159,426 | 181,829 | | 1 to 2 years | 7,636 | 23,787 | | Over 2 years | 19,713 | 20,725 | | Total | 186,775 | 226,341 | 14. Other Payables and Accruals Total other payables and accruals were RMB 68,359 thousand, mainly comprising wages and welfare payables, warranty provisions, and payables for long-term assets Other Payables and Accruals (RMB thousands) | Type (RMB thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Wages and Welfare Payables | 23,541 | 22,860 | | Warranty Provisions | 15,480 | 13,292 | | Accrued Listing Expenses | – | 16,654 | | Payables for Long-term Assets | 9,246 | 10,801 | | Total | 68,359 | 80,854 | 15. Dividends For the six months ended June 30, 2025, the company neither paid, declared, nor proposed any dividends, and the Board does not recommend an interim dividend - For the six months ended June 30, 2025, the company neither paid, declared, nor proposed any dividends[79][81] Events After the Reporting Period Key events after the reporting period include a share placement agreement with CITIC CLSA and resolutions passed at an EGM regarding auditor appointment and charter amendments - On July 2, 2025, the company entered into a placing agreement with CITIC CLSA to place up to 6,800,000 new shares at HKD 23.26 per share, representing approximately 1.67% of the enlarged issued shares[83] - On August 13, 2025, the company held an extraordinary general meeting, passing resolutions to appoint Rongcheng (Hong Kong) Certified Public Accountants as auditor and to amend the company's articles of association[84] Corporate Governance The company adheres to corporate governance principles, including compliance with the Corporate Governance Code and Model Code for securities transactions Compliance with Corporate Governance Code The company complied with all applicable Corporate Governance Code provisions, with the Chairman and CEO roles concurrently held by Dr. Liu Guoqing, an arrangement deemed beneficial - The company has adopted corporate governance practices based on the principles and code provisions set out in the Corporate Governance Code and complied with all applicable code provisions during the reporting period[85] - The roles of Chairman and Chief Executive Officer are concurrently held by Dr. Liu Guoqing, deviating from Code Provision C.2.1, an arrangement the Board considers appropriate and beneficial to the company's business development and prospects[86] Compliance with Model Code The company adopted the Model Code for securities transactions by directors, supervisors, and employees with inside information, with all confirming compliance during the period - The company has adopted the Model Code as a code of conduct for securities transactions by its directors, supervisors, and employees with inside information regarding the Group or the company's securities[87] - All directors and supervisors confirmed that they have complied with the provisions of the Model Code during the reporting period[87] Review of Interim Financial Information The Group's unaudited condensed consolidated interim financial statements for H1 2025 have been reviewed by the company's Audit Committee - The Group's condensed consolidated interim financial statements for the six months ended June 30, 2025, are unaudited but have been reviewed by the company's Audit Committee[88] Audit Committee The Audit Committee, comprising three independent non-executive directors, reviewed the unaudited interim financial statements and deemed them compliant with applicable standards - The Audit Committee currently comprises Dr. Xiang Yang, Mr. Tan Kaiguo, and Dr. Tan Mingkui, all independent non-executive directors, with Mr. Tan Kaiguo serving as Chairman of the Audit Committee[89] - The Audit Committee has reviewed the Group's unaudited condensed interim consolidated financial statements for the reporting period and considers them to be prepared in accordance with applicable accounting standards, rules, and regulations, with appropriate disclosures made[89] Publication of Interim Report This interim results announcement has been published on the HKEX and the company's website, with the interim report to be published in due course - This interim results announcement has been published on the HKEX website and the company's website[90] - The company's interim report for the six months ended June 30, 2025, will be published on the HKEX and the company's aforementioned website in due course[90] Definitions This section provides definitions for key terms used throughout the report, including "the Group," "H Shares," "AI," "Board," and "IFRS" - This section provides definitions for key terms used in the report, including "the Group," "H Shares," "Artificial Intelligence," "Board," and "International Financial Reporting Standards"[91][92][93][94][95]