Financial Performance - The company's revenue for the reporting period was approximately RMB 759.6 million, a decrease of about 8.9% compared to RMB 834.0 million in the same period last year[3]. - Gross profit for the reporting period was approximately RMB 239.6 million, an increase of about 2.5% from RMB 233.8 million in the previous year[3]. - Profit attributable to the owners of the company was approximately RMB 111.7 million, a decrease of about 0.5% from RMB 112.3 million in the same period last year[3]. - Revenue for the six months ended June 30, 2025, was approximately RMB 759.6 million, a decrease of 8.9% from RMB 833.9 million for the same period in 2024[20]. - Gross profit for the same period was approximately RMB 239.6 million, an increase of 2.5% from RMB 233.8 million in 2024, with a gross margin of 31.5% compared to 28.0% in the previous year[26][27]. - Operating profit decreased to approximately RMB 184.3 million from RMB 199.2 million, reflecting a decline of 7.5%[20]. - Net profit for the period was approximately RMB 148.7 million, a decrease of 3.9% from RMB 154.7 million in the previous year[34]. - Total revenue for the six months ended June 30, 2025, was RMB 759,571,000, down from RMB 833,999,000 in 2024, reflecting a decrease of 8.9%[51]. - The company reported a net profit attributable to owners of RMB 117,741,000 for the six months ended June 30, 2025, compared to RMB 112,287,000 in 2024, an increase of 4.1%[60]. - Basic earnings per share remained stable at RMB 0.37 for both 2025 and 2024[60]. Revenue Sources - Revenue from heating services was approximately RMB 723.2 million, up from RMB 696.5 million in the same period last year, driven by the increase in heating area[10]. - Revenue from heating-related engineering construction services was approximately RMB 23.3 million, a significant decrease of 80.9% from RMB 122.2 million in the previous year due to reduced construction projects[14]. - Revenue from other businesses was RMB 11.6 million, a decrease of 15.9% from RMB 13.8 million in the previous year, primarily due to a decline in income from heat transmission services[17]. - Customer contract revenue for heating and thermal distribution increased to RMB 665,502,000 in 2025 from RMB 643,893,000 in 2024, representing a growth of 3.4%[51]. Assets and Liabilities - Total assets as of June 30, 2025, were RMB 5,519,318,000, a decrease from RMB 5,966,668,000 at the end of 2024[39]. - Total liabilities decreased to RMB 3,991,268,000 from RMB 4,537,820,000 at the end of 2024[40]. - The company's cash and cash equivalents were RMB 309,090,000, down from RMB 645,680,000 at the end of 2024[39]. - Trade receivables from third parties increased to RMB 637,909,000 as of June 30, 2025, compared to RMB 623,927,000 as of December 31, 2024, reflecting a growth of 2.4%[66]. - The provision for impairment of trade receivables and lease receivables increased to RMB 88,564,000 as of June 30, 2025, up from RMB 69,709,000 as of December 31, 2024, representing a rise of 27%[67]. - Trade payables to third parties increased to RMB 483,609,000 as of June 30, 2025, compared to RMB 480,665,000 as of December 31, 2024, showing a slight increase of 0.4%[69]. - The total liabilities decreased to RMB 900,485,000 as of June 30, 2025, from RMB 1,005,402,000 as of December 31, 2024, indicating a reduction of 10.4%[69]. Operational Developments - The total actual heating service area increased to approximately 50.2 million square meters, a growth of 3.5% from 48.5 million square meters in the previous year[9]. - The company operates a primary distribution network with a total length of approximately 737.6 kilometers, an increase from 698.9 kilometers in the previous year[13]. - The company plans to expand its heating services, focusing on the Bohai Economic Rim and key provinces in North China, while also exploring pilot projects in other cities[36]. - A new R&D team has been established to enhance the digital heating service platform, aiming for optimized management and safety improvements[36]. - The company plans to continue its research in renewable heating technologies to support market expansion in heating services[37]. Financial Management - Financial income decreased by approximately 25.7% to RMB 7.5 million, while financial costs decreased by 21.0% to RMB 18.4 million[32]. - Income tax expense decreased by approximately 24.0% to RMB 27.3 million due to a decline in pre-tax profit[33]. - The administrative expenses increased by 3.1% to approximately RMB 72.4 million, primarily due to higher employee welfare costs[28]. - Total expenses for the six months ended June 30, 2025, were RMB 592,432,000, compared to RMB 670,434,000 in 2024, a reduction of 11.6%[55]. - The average effective tax rate for the six months ended June 30, 2025, was estimated at 15%, down from 19% in 2024[59]. Project Updates - The Baotou project has completed approximately 70% of its pipeline construction as of January 1, 2025, with a significant payment milestone approaching[73]. - The total completion date for the Baotou project has been postponed to around December 2025 due to land requisition issues[73]. - The company plans to reallocate the unused net proceeds from the Xinmi heating preparation and expansion project to the Baotou project, which is deemed more appropriate given the urgent payment timeline[75]. - As of June 30, 2025, approximately RMB 20.7 million has been paid for the Xinmi project, with RMB 18.7 million sourced from the net proceeds[76]. - The remaining budget of RMB 18.2 million for the Xinmi project will be funded through local bank financing and fees generated from the heating service starting December 2023[76]. Governance and Compliance - The audit committee has reviewed the unaudited interim results and confirmed compliance with applicable accounting standards[83]. - The board is not aware of any significant events affecting the financial condition or operations of the group after the reporting period[85]. - The company did not declare or pay any interim dividends during the reporting period[78]. - The company has a total of 301,600,000 H-shares outstanding[89]. - The board of directors includes both executive and non-executive members, ensuring diverse oversight[90].
慧居科技(02481) - 2025 - 中期业绩